Why is the Tempest Minerals share price cratering 38% today?

The Tempest Minerals Ltd (ASX: TEM) share price was sliding deep into the red around midday on Friday.

At the time of writing, the share is trading 38.6% lower at 5.4 cents apiece. It closed the session yesterday at 8.8 cents each.

Sellers are pushing the Tempest share price down following a company announcement made before the open today.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is lifting more than 2% into the green today.

What did Tempest Minerals announce?

The Australian mineral exploration company announced it had completed a downhole electromagnetic (DHEM) survey at the Orion Target in its Meleya Project in Western Australia.

It also advised that it had received initial assay results from drill hole WARDH72 at the Orion Target. The company has previously announced mineralisation at this hole.

DHEM is used to identify and mark out geological formations underground, in the exploration of various sulphide and ore bodies.

Tempest said the DHEM survey was conducted to complement assay results and “further understand the mineral occurrence”.

Additional geophysics and drilling are planned during this quarter to follow up on this target and commence exploring other targets in the newly confirmed mineralised belt.

Tempest advised:

Preliminary results from WARDH72 have confirmed the widespread presence of copper and other metals which support the continuation of further aggressive exploration at the project.

The company noted further assay results were due in August 2022 which would “coincide with further data interpretation and additional drill planning at Orion”.

In the last 12 months, the Tempest Minerals share price has soared more than 139% into the green.

The post Why is the Tempest Minerals share price cratering 38% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. 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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