‘We are thrilled’: Why this ASX mining share is flying 22% higher today

Rumble share price A satisfield miner stands in front of a drilling rig, indicating a share price rise in ASX mining companiesRumble share price A satisfield miner stands in front of a drilling rig, indicating a share price rise in ASX mining companies

The American West Metals Ltd (ASX: AW1) share price is soaring today amid a new discovery.

After surging to a high of 27 cents in early trading today, the company’s share price has retreated to 19 cents at the time of writing, up 22%. In comparison, the  S&P/ASX 200 Index (ASX: XJO) is climbing 0.34% today.

Let’s take a look at what could be impacting the American West share price today.

Zinc and copper intersected

Investors are buying up ASX mining share American West after the company reported its “best assay results to date”.

The mineral explorer reported high grade zinc, copper, silver and indium results at the fourth drill hole at West Desert. This project is located 160km southwest of Salt Lake City, in the US state of Utah.

Assay results showed more than 105m of zinc and copper was intersected at drill site WD22-03 within four major intervals.

This included:

  • 10.82 metres (m) at 1.41% copper, 1.51% zinc, 0.23 grams per tonne (g/t) gold, 59.41g/t silver and 40.63 g/t indium from 224.63m
  • 47.4m at 4.3% zinc, 0.08% copper, 0.04 g/t gold, 12 g/t silver and 34.75 g/t indium from 234.07m
  • 26.52m at 8.46% zinc, 0.17% copper, 0.11g/t gold, 10.61 g/t silver and 55.63g/t indium from 313.47m
  • 18.59m at 13.24% zinc, 140.96g/t indium from 367.88m.

The results will help the company provide a maiden 2012 JORC resource estimate for the West Desert project.

American West plans to report further results from more drill holes in future weeks.

What did management say?

Commenting on the news, managing director Dave O’Neill said:

We are thrilled to share the diamond drill results from WD22-03, as the program continues to define high-grade mineralisation at West Desert, substantially enhancing the resource potential.

The intersections within WD22-03 display outstanding thicknesses and grade which continue to highlight the significant scale and quality of the West Desert Deposit.

The assay results and drill hole location are strategically favourable and provide further support for potential future underground development.

Share price snapshot

The American West share price has soared 31% in the past 12 months, and has rocketed 52% in the year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed around 2% in a year.

American West has a market capitalisation of almost $15 million based on its current share price.

The post ‘We are thrilled’: Why this ASX mining share is flying 22% higher today 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 Scott Phillips.

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