The Panoramic Resources Ltd (ASX: PAN) share price shot up on Tuesday on the back of a positive drilling update.
The ASX nickel share finished the day at 36.5 cents, a 10.61% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) climbed 0.19% today.
Let’s take a look at why this ASX nickel share had such a stellar day.
‘Standout’ drill results
Panoramic reported promising drill results from the company’s Savannah Nickel Project in Western Australia.
The company said the “standout” drill result was drill hole KUD1891. This returned an upper and lower mineralisation lens intersection of 40.55m at 1.96% Nickel, 0.75% copper, and 0.15% cobalt.
Drill hole KUD1871 returned upper mineralisation lens intersection of 16 metres at 2.08% nickel, 0.8% copper, and 0.16% cobalt. Meanwhile, drill hole 1874 delivered an intersection of 1.93% nickel, 1.01% copper, and 0.14% cobalt.
The company said these intersections were both thicker and higher grade than predicted.
Managing director and CEO Victor Rajasooriar said the results provide strong confidence in the company’s life of the mine plan and the future of the Savannah Nickel Operation. He added:
The continued success of drilling in the new Upper Splay in the Eastern Zone of Savannah North may also add to our mining inventory which is also very pleasing.
We look forward to announcing more drill results from both areas in due course.
Share price snapshot
The Panoramic share price has soared 170% in the past year while it is up 35% year to date.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 10% in the past year.
Panoramic has a market capitalisation of about $748.6 million based on its current share price
The post Why did this ASX nickel share surge 11% today? appeared first on The Motley Fool Australia.
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