Why did this ASX mining share surge 14% today?

Shareholders drove the price up on this ASX mining share today after the company announced some good results.

| More on:
A little boy holds up a barbell with big silver weights at each end.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • This ASX miner's share price surged 14% today
  • At one point, Thomson Resources' shares rocketed 18% 
  • This morning the company provided some data estimates at a key silver project 

ASX mining shares struggled across the board today. The S&P/ASX 200 Materials Index (ASX: XMJ) has closed Wednesday down 1.68%.

But one ASX mining share was on fire amid an update from the company's silver project.

The Thomson Resources Ltd (ASX: TMZ) share price surged 18% to 5.4 cents in earlier trade, only to retreat after midday. Still, it was an impressive result for Thomson Resources, posting a 14.29% gain at close of trade. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.5% on Wednesday.

So why was this ASX mining share so red hot today?

'Outstanding' silver and base metal intersections

Thomson advised that the mineral resource estimate (MRE) for the Webbs silver deposit is now well advanced. This project, located in northern New South Wales, is said to be one of the highest grade undeveloped silver projects in Australia.

The company reported "outstanding" silver and base metal intersections and positive metallurgy at the project.

Thomson provided silver and base metal intersection estimates from a newly validated historic drill hole database.

Highlights at the 30 grams per tonne AgEq (silver equivalent) cut off included:

  • 6.33 metres (m) at 735 grams per tonne (g/t) AgEq
  • 6.62 m at 793 g/t AgEq
  • 7.79 m at 613 g/t AgEq

At the 150 gram per tonne AgEq:

  • 1.86 m at 2,152 g/t AgEq
  • 2.97 m at 1,326 g/t AgEq
  • 1.81 m at 2,078 g/t AgEq

And boy, did investors want to share in this ASX mining company's good tidings.

Comment from management

Executive chairman David Williams said:

We have not just rubber stamped previous published resources. We have gone through from scratch, gone through all of the available historic information, and added in new data and studies where there have been gaps.

What we will end up with is an MRE that we will have a lot of confidence in. Our better understanding of the geological setting again throws up clear target areas for exploration drilling to expand and extend the resource.

Of particular importance is the very favorable metallurgy that integrates with our own work from the Texas district and will support integration of the Webbs high-grade silver and base metal project into the Company's central processing strategy.

The company plans to deliver the mineral resource estimate in the second quarter of 2022.

Share price snapshot

The Thomson Resources share price has crashed nearly 56% in the past year, while it has fallen 28% in the year to date.

The company's shares have slid 12% in a month, but they are up nearly 9% in the past week.

For perspective, the benchmark ASX 200 has returned nearly 9% over the past year.

The ASX mining share has a market capitalisation of $26.96 million based on its current share price.

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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »