Estrella Resources’ Share Price has Soared 2,000% in Oct, Here’s Why

Estrella Resources’ Share Price has Soared 2,000% in Oct, Here’s Why

Shares in small-cap gold and nickel explorer Estrella Resources Ltd [ASX:ESR] have continued to rocket today thanks to results from the historic Carr Boyd Nickel Mine.

The ESR share price had been soaring when we were first given a glimpse of the project’s potential at the beginning of October, climbing ~640% in one day.

Today, the good news appears to be continuing with surveying results complementing drilling results received at the beginning of the month.

ASX ESR Share Price Chart

Source: Tradingview

At time of writing the ESR share price is up 46.45% or 7.2 cents to trade at 23 cents per share, setting a five-year record high.

In October, the share price has returned nearly 2,000%.

Estrella Resources lays to rest ‘concerns about scale’

Earlier in the month, ESR received drill results from its Carr Boyd Mine that returned a significant drill intersection of massive Ni-Cu (plus platinum group elements) bearing sulphides.

According to ESR, the project is located in a Tier 1 jurisdiction approximately 80 kilometres northeast of Kalgoorlie, Western Australia.

It was discovered in the late 1960s and produced 202,110 tonnes of ore at an average grade of 1.43% Ni and 0.46% Cu between 1973 and 1977.

REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.

Company CEO Chris Daws said:

Our work has resulted in this thick intersection of primary magmatic nickel sulphides, and Carr Boyd can now join an elite list of recent Western Australian nickel discoveries including the Golden Swan, Julimar and Mawson discoveries.’

We have covered Chalice Gold Mines Ltd’s [ASX:CHN] Julimar Project extensively here at The Daily Reckoning Australia, and if Carr Boyd is similar there could be huge upside for ESR.

Today, ESR announced follow-up electro-magnetic (EM) survey results.

Mr Daws commented on the results:

The results of the DHTEM have put to rest any of my concerns about scale [of Carr Boyd] and we are now eagerly awaiting the assay results to get a clear understanding of the potential of this discovery.

The EM results related modelling shows a discrete related body, which may be open in all directions, this can be seen below.

ASX ESR Carr Boyd Rocks Cross Section

Source: Estrella Resources

What’s with the ESR share price?

Essentially, ESR has now identified a promising exploration target just one kilometre north of a historic producing Ni-Cu mine.

The recent results have now given ESR some confidence that there could be a relatively large ore body contained in their tenements — which has been reflected in the share price.

A second stage of drilling has been planned and will comprise 8–10 holes for ~5,000 metres.

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Kind regards,

Lachlan Tierney

For The Daily Reckoning Australia