The Centaurus Metals Limited (ASX: CTM) share price is up more than 6% after the company announced positive drilling results at its Jaguar deposit in Brazil.
What was in the announcement?
Centaurus Metals said it had identified significant thick semi-massive to massive nickel sulphide intercepts in recent drilling at the Jaguar Central deposit.
The company identified 33.7 metres at 2.23% nickel from 45.6 metres, 15 metres at 2.42% nickel and 8.2 metres at 1.22% nickel at the deposit.
New drilling at the Jaguar North deposit had also intersected semi-massive sulphides 100m beyond the current limits of the existing mineral resource, with assays currently pending.
Centaurus Metals said the company's recent $25.5 million capital raising would accelerate drilling work significantly. At the time of the announcement, Centaurus Metals had a cash position of around $28 million.
How good is that?
Centaurus Metals managing director Darren Gordon said the latest results included "some of the best drilling results generated from the Jaguar Project to date".
Mr Gordon said the results boosted confidence in the company's potential to grow the mineral resource in line with a plan to establish a sustainable high-margin nickel sulphide mine in Brazil within the next 3-4 years.
"These results are now building on the impressive maiden resource estimate we announced in June, which already contains more than 500,000 tonnes of nickel at an average grade of over 1.0% nickel," he said.
About the Centaurus Metals share price
Centaurus Metals is an exploration company with a focus on the Jaguar nickel project in Brazil.
In the quarter to June 30, 2020, Centaurus Metals used $2,536,000 cash in operating activities. The company had cash at June 30 of $4,996,000, this was down from $7,539,000 at the end of the previous quarter.
In July, the company announced a $25.5 million capital raising at $0.42 cents per share, including a cornerstone investment from Canadian-based Dundee Goodman Merchant Partners. The funds are allocated for drilling, a scoping study and a pre-feasability study for the Jaguar project.
The Centaurus Metals share price has skyrocketed 647% from its 52-week low of $0.075 cents. It has returned 211% since the beginning of the year. The Centaurus Metals share price is up more than 6% at the time of writing to $0.52 cents.
