The Caspin Resources Ltd (ASX: CPN) share price is plummeting lower this morning despite the company confirming primary sulphide platinum group elements mineralisation at its Yarawindah Brook Project.
Shares in Caspin are currently swapping hands for $1.10. That's 43.59% less than they were trading for at market close on Friday.
The exploration company has an 80% interest in the Yarawindah Brook Project, located 100 kilometres northeast of Perth.
Let's take a look at the news driving the Caspin share price today.
Assay results from Yarawindah Brook Project
The assay results released today are from drill holes at the project's Yarabrook Hill and XC-29 prospects.
Drill holes at the Yarabrook prospect returned broad zones of anomalous platinum group element mineralisation. They also contained narrow intercepts of palladium, platinum, nickel, and copper. Some of the better assay results include:
- 4.4 metres at 0.78 grams of platinum group elements per tonne (0.52 grams of palladium per tonne, 0.26 grams of platinum per tonne), 0.43% nickel and 1.00% copper from only 66.2 metres
- including 0.65 metres at 1.93 grams of platinum group elements per tonne (1.11 grams of palladium per tonne, 0.82 grams of platinum per tonne), 1.46% nickel and 1.60% copper from 67.75 metres.
- 0.2 metres at 4.17 grams of platinum group elements per tonne (0.95 grams of palladium per tonne, 3.22 grams of platinum per tonne), 3.49% nickel and 1.43% copper from 155.97 metres.
- 9.2 metres at 0.74 grams of platinum group elements per tonne (0.35 grams of palladium per tonne, 0.39 grams of platinum per tonne), 0.19% nickel and 0.24% copper from 300.85 metres,
- including 0.7 meters at 4.10 grams of platinum group elements per tonne (0.77 grams of palladium per tonne, 3.33 grams of platinum per tonne), 0.56% nickel and 2.01% copper from 308.5 metres.
According to the company, some mineralisation at the Yarabrook prospect increased downhole. Caspin believes the downhole mineralisation defines a stratigraphic horizon that it plans to focus on in follow-up explorations.
At the XC-29 prospect, drill holes returned anomalous levels of platinum group elements, as well as nickel and copper.
Caspin's next drilling program is set to begin in the coming weeks. It will involve 5,000 metres of reverse circulation drilling.
The company believes its ability to vector towards platinum group element-rich zones will increase as its exploration program continues.
Commentary from management
Caspin's CEO Greg Miles commented on the results:
This is clearly the most advanced exploration prospect in the region outside Chalice Mining's Gonneville Intrusion, with demonstrated basement platinum group element mineralisation and it's still largely unexplored. It's a fantastic opportunity.
Caspin Resources share price snapshot
Despite today's tumble, the Caspin share price is having a good year on the ASX.
Right now, it's 103% higher than it was at the beginning of 2021. It's also gained 139% since this time last year.
The company has a market capitalisation of around $66 million, with approximately 64 million shares outstanding.
