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Kaoko Metals (ASX: KAO) has been slapped with a speeding ticket by the ASX after shares surged +140% on Wednesday morning following two broad drilling intersections speckled with visible copper in Namibia.
On the back of a diamond drill run, the company’s reported on Wednesday one section over 60m in length with 32.3m of “strong visible mineralisation” from 60m depth.
A second intersection came in at a total width of 52m with just over 17m of “strong visible mineralisation” from 58m depth, suggesting there could be an economic deposit in that area around the 60m depth mark. Geotechs – and investors – are seeing added confidence in the fact numerous classic coincident minerals were discovered including malachite.
Assays are due back in 4-6 weeks after being fast-tracked by the company, and the intensity of action there is reflected in the intensity of the market’s reaction to the news on Wednesday,
So intense, in fact, that the ASX has stepped in and spoiled the fun – as its wont to do – after KAO’s share price hit $1.80/sh in the first hour of trades after closing at 74cps on Tuesday.
All in all, that brings KAO investors 1Y returns of +800%, at least at the time of the trading halt being issued early on the Wednesday session.
The results were pulled from drillholes sunk on-site the company’s Namibia-based Chalkos project, on the radar for its potential to copper exposure – the metal behind BHP’s generation run – and also reflecting the first modern drilling on-site.
“While it is still early in the program and we are waiting for results of the initial assays, we are pleased to have observed broad zones of copper mineralisation in the first two holes at Otniel,” KAO MD Gerard O’Donovan said.
“DDOT002 intersected over 60m of predominantly malachite-chalcocite mineralisation, including a 32m zone of strong visible mineralisation, while DDOT001 returned over 51m of visible mineralisation including 17m of strong visible mineralisation.”
Investors will be closely watching for the delivery of assays in the coming months.
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