Results of June drilling could be major catalyst for Mandrake
2 minute read
Mandrake Resources Ltd (ASX:MAN) has commenced drilling at the company’s promising Newleyine PGE-nickel-copper prospect.
This is a much-anticipated program, with interest spurred on by Chalice Mining's (ASX: CHN) success at its nearby Julimar PGE-nickel-copper discovery.
Since January last year, Chalice’s share price has increased some 5000% with most of that gain being attributable to the Julimar discovery and subsequent drilling.
The Newleyine prospect lies within Mandrake’s Jimperding Project and is located 30 kilometres east of Chalice’s Julimar PGE-nickel-copper discovery in the same geological terrane.
Mandrake has identified multiple similarities to Julimar at Newleyine, including the presence of several large electromagnetic (EM) conductor plates.
Investors are expecting big things of Mandrake with its shares having increased three-fold since management announced in February that the company had been granted land access to Newleyine, as well as the negotiation of a binding purchase option.
This provides Mandrake with the option to purchase the property and associated mineral rights outright in the event of a commercial discovery, substantially de-risking any potential future development of a mining operation.
The land agreement alone triggered a doubling in the group’s share price so one can only imagine that drilling success will have a profound impact.
Indeed, when management announced only a matter of weeks ago that drilling was due to commence shortly the company’s shares spiked approximately 50%.
Share price retracement may present buying opportunity
It would appear that some profit-taking last week resulted in a slight retracement with the group’s shares pulling back from a 12 month high of 25 cents to about 21 cents.
This may represent a buying opportunity, particularly given drilling is in progress, the results of which could be a prominent share price catalyst.
The initial phase of diamond drilling includes three holes, each targeting one of the three electromagnetic (EM) conductor plates identified by the ground-based fixed loop EM (FLEM) survey conducted in 2020.
Once complete, drill holes will be cased ahead of a down-hole EM (DHEM) survey designed to identify any off-hole EM conductors.
Drill holes will be approximately 300 metres total depth, with the initial drilling phase scheduled to take around 3-4 weeks.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.