Heavy Minerals Ltd (ASX: HVY) shares are catching the eye of investors on Monday.
At one stage today, the ASX mining share was up a whopping 250% to a 52-week high of 39 cents.
The Heavy Minerals share price has pulled back since then but remains up 150% to 27.5 cents.
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Why is this ASX mining share rocketing higher?
Firstly, it is important to note that Heavy Minerals is a micro-cap, therefore it doesn't take a lot to move the needle when a big announcement is made.
Which is exactly what has happened on Monday, with the ASX mining share releasing a new mineral resource estimate (MRE) for the Port Gregory Garnet Project.
According to the release, the updated JORC MRE is 166Mt at 4.0% total heavy minerals (THM).
The completed MRE includes 5.9 Mt of contained garnet, which represents approximately five years of current global demand. The release also reveals that 5.4 Mt of the contained THM is within the measured and indicated JORC category.
The good news is that management sees upside potential in the mineral resource. It notes that the mineralisation is open to the south and north within its tenure.
Work will now commence on pit optimisation and mine planning to produce mining inventory to feed into its upcoming pre-feasibility study (PFS).
Heavy Minerals' CEO, Andrew Taplin, said:
The Company was confident that there would be a significant increase to the size and quality of the resource following the most recent infill and extension aircore drilling program with the Company meeting all expectations.
The updated Mineral Resource estimate now credibly positions HVY to be the next potential garnet producer in the Port Gregory region. The updated Mineral Resource estimate will inform the Port Gregory Project PreFeasibility Study that is scheduled to commence imminently and is expected to contribute further value to the already strong financial metrics. The Company remains of the view that its Port Gregory Garnet Project is a world-class asset.
