Increasing interest in Mayfield base and precious metals project
It was only last Friday that shares in Capital Mining (ASX: CMY) surged nearly 40% under high volumes in response to the negotiation of an option agreement to acquire the Scotia cobalt-nickel project at the Mayfield base in the eastern goldfields of Western Australia.
While there was some profit-taking following this development, CMY’s shares rallied nearly 15% on Wednesday morning after the company announced that it had increased its equity interest in the Mayfield project located in New South Wales.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
This lies not far to the south-east of Heron Resources’ Woodlawn zinc project, and electromagnetic surveying has been undertaken after reports of high grade zinc and silver from previous drilling.
Having increased its equity interest in the Mayfield project to 75% and acquired a new exploration licence surrounding the existing project area, CMY has opened up opportunities to develop multiple new exploration targets.
Management views the new territory as highly prospective for the mineralisation style found at Mayfield. It is also strategically beneficial in that it now covers an area of 178 square metres, providing the opportunity to tap into potential strike extensions.