Here’s why the Carnaby Resources (ASX:CNB) share price has exploded 114% in a week

Businessman taking off in rocket-fuelled office chair

The Carnaby Resources Ltd (ASX: CNB) share price has more than doubled in just a week.

The copper miner’s share price has soared from 29 cents at last Thursday’s close to 62 cents at the time of writing, up 113.8%. Earlier today it rose as high as 70 cents before retreating.

Let’s look into what might be impacting a surge in investor confidence in the explorer.

Digging in December

The Carnaby Resources share price has exploded twice over the past week. The first major bounce came on Friday on the back of a “spectacular” copper find.

The exploration company told the market its drilling program at the Nil Desperandum prospect intersected a 24m zone of semi-massive copper sulphide mineralisation.

The discovery at the Greater Duchess copper-gold project in Queensland is the largest copper find from the company to date.

This announcement led to shares skyrocketing 55%, up from 29 cents to 45 cents at Friday’s close.

The second eruption of the Carnaby Resources share price took place on Wednesday after the company emerged from a trading halt.

The shares were temporarily put on ice while the company re-released two exploration statements from December 13 and December 17.

Both these statements confirmed significant copper mineralisation at the Greater Duchess copper-gold project.

While the news in these re-releases didn’t change, they provided more detail on the drill holes. This may have provided investors with more confidence in the previously announced results from the company.

After emerging from the trading halt on Wednesday, the shares surged from 44 cents apiece to 62 cents at the close. That’s a 41% gain.

Carnaby Resources share price recap

The Carnaby Resources share price has skyrocketed by around 85% in the past 12 months and 55% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned more than 11% over the past year.

The company’s shares have gained 135% in the past month.

The company has a market capitalisation of roughly $73.2 billion based on its current share price.

The post Here’s why the Carnaby Resources (ASX:CNB) share price has exploded 114% in a week appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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