Estrella Resources (ASX:ESR) Ballooning on ASX As The Miner Hits Jackpot at Carr Boyd, Stock Up 4.57x

Summary

  • Estrella Resources Limited (ASX:ESR) has zoomed considerably in the past few trading sessions with the stock increase of more than fourfold in value overnight.
  • ESR intersected a massive nickel-copper sulphide mineralisation at the T5 prospect at the flagship Carr Boyd Project.
  • The identified nickel-copper sulphide zone forms unique magmatic nickel sulphide textures, confirming high-grade nature post pXRF testing.

Estrella Resources Limited (ASX:ESR) ballooned on the exchange post announcing a significant nickel sulphide discovery at Carr Boyd on 8 October 2020. The stock skyrocketed from $0.014 to $0.094, that is, up 6.7x post the news was announced on ASX. However, the stock has cooled down in today's trade due to profit booking and closed at $0.064.

On 8 October, the Company notified the drill hole identified as CBDD030 that was drilled 300m south of the original T5 discovery zone intersected a massive nickel-copper bearing sulphide at the flagship Carr Boyd Project.

  • ESR mentioned that the drill hole CBDD030 successfully intersected the basal contact of the layered mafic/ultramafic intrusion, returning ~ 15m wide sulphide mineralisation zone containing a 2.9m thick core zone of a considerable nickel-copper sulphide mineralisation.
  • As per the announcement, the identified nickel-copper sulphide zone forms unique magmatic nickel sulphide textures, confirming high-grade nature post pXRF testing. Moreover, the Company anticipates that apart from nickel and copper, the zone could return gold and platinum-group elements (or PGE).

At present, ESR awaits laboratory analytical results which the Company would disclose once received.

So far, the miner has successfully drilled three holes, namely CBDD028, CBDD0029, and CBDD0030. The fourth drill hole – CBDD0031, that is collared 300m north of the T5 zone and giving deep coverage over a 600m wide window along the intrusions basal contact is currently progressing.

  • In contrast to the historically drilled hole GD124 (140m south of CDBDD030) and GD140 (above the position of CBDD030) returning intersections like 1.83m @ 1.17 per cent nickel and 2.29m @ 0.8 per cent nickel, respectively, CBDD030 intersected the same contact at a depth of 368m, which as per the Company is open in all directions, presenting an opportunity to expand this mineralisation zone.

Furthermore, a DHTEM geophysical surveying is scheduled to further define the extent of this massive sulphide system. ESR has already completed a DHTEM survey at drill holes CBDD028 & CBDD029, which along with the pending completion of the final planned hole CBDD031 would allow the miner to vector into the extents and source of the identified primary magmatic nickel-copper sulphide mineralisation.

The current developments and results are a significant breakthrough in the development of the T5 Prospect at Carr Boyd. Moreover, the miner now plans to rapidly extend the exploration program at the flagship project, including upgrading support infrastructure, increasing number of drilling rigs, and personnel and support.

In the midst of current developments and the awaited assay results for CBDD030, ESR has received laboratory results for CBDD028, sampled through the remobilised and disseminated sulphide zone.

  • The assay results received by the Company are somewhat encouraging with the drill hole CBDD028 returning 0.48 per cent nickel, 0.31 per cent copper, 255 parts per million (or ppm) cobalt, 2.60ppm silver, and 0.634ppm gold plus PGE from 165.2m to 169.0m; including, 1.12 per cent nickel, 1.07 per cent copper, 579 parts per million (or ppm) cobalt, 6.80ppm silver, and 0.930ppm gold plus PGE from 165.2m to 165.6m.
  • Moreover, the same assay has resulted in 0.33 per cent nickel, 0.28 per cent copper, 208 parts per million (or ppm) cobalt, 1.3ppm silver, and 0.144ppm gold plus PGE from 173.6m to 174.0m.

The market seems to be liking the recent progress of the miner around its flagship Carr Boyd Project with the stock of the Company increasing over fourfold in price post the announcement.

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