Estrella Resources (ASX:ESR) share price jumps 19% on massive nickel discovery

The company's shares are on the move today…

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The Estrella Resources Ltd (ASX: ESR) share price is rocketing after the company announced the discovery of massive nickel-copper sulphides.

At the time of writing, the junior exploration company's shares are fetching for 4.3 cents, up 19.44%.

A miner reacts to a positive company report mobile phone representing rising iron ore price

Image source: Getty Images

Estrella hails nickel-copper sulphides discovery

According to its announcement, Estrella advised that it has intersected a new zone of massive nickel-copper sulphides at Broonhill in Western Australia. This follows the discovery of a 12-metre zone of nickel-copper sulphides including 2-metres of basal massive sulphides.

Estrella stated that reverse circulation (RC) drill hole CBP076 bears all the hallmarks of the 2019 RC hole CBP043. The latter recorded 8 metres of 1.11% of nickel and 0.36% of copper, which led to the T5 Discovery (1.4 kilometres north of Broonhill).

As a result of the latest findings, CBP076 will be cased for downhole geophysics and ahead of diamond drilling. This is expected to commence once the downhole geophysical results have been interpreted.

It's worth noting that the RC program still has another 2 kilometres of highly prospective basal contact yet to explore. The area has had no historical drilling specifically targeting sulphides on the basal contact.

Estrella managing director Chris Daws commented:

We are extremely excited with the CBP076 intersection of massive nickel-copper sulphides on the contact, which is reminiscent of the intersection achieved by CBP043 in 2019.

It was this historic hole that led the Company to drill and locate the T5 massive sulphides at depth, so we are particularly encouraged by what may come of this find.

In addition, the intersection of further nickel-copper sulphides in an area which already hosts the historic Carr Boyd mine and our T5 Discovery illustrates the significant potential of this region for discoveries.

About the Estrella share price

It has been a disappointing 12 months for Estrella shares, plummeting by more than 71% for the period. Year-to-date, its share price has lost 35%.

Estrella presides a market capitalisation of roughly $50 million and has approximately 1.16 billion shares on its books.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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