- In a letter to shareholders, Estrella Resources’ (ESR) Chairman says 2022 will be an exciting time, despite a lacklustre share price
- ESR shares have dropped almost 75 per cent over the last 12 months, and Les Pereira said the price is not representative of the value and growth prospects for 2022
- After raising $11 million the company continued drilling across its Carr Boyd nickel project in WA where it discovered potential for further discoveries
- In 2022, work will focus on extensions to the T5 prospect and the company chairman said he hopes to see some “interesting” results soon
- Shares in Estrella Resources remain steady at 2.3 cents each as of 3:47 pm AEDT
In a letter to shareholders, Estrella Resources’ (ESR) Chairman said 2022 will be an exciting time, despite a lacklustre share price.
Les Pereira shared the Board’s “obvious dissatisfaction” with the company’s share price, which has dropped almost 75 per cent over the last 12 months and which Mr Pereira said is not representative of the value and growth prospects for 2022.
He blamed the expiration of the June 2021 listed five cent options and the capital that could be raised from the options being converted, saying it was always going to be a potential influence on the share price.
“I would like to note that looking at recent register movements it appears this downwards pressure is mostly behind us,” Mr Pereira said.
After raising $11 million, ESR was able to continue drilling at the Carr Boyd nickel project where in November it received it’s best results to date, with 12.8 metres at 0.96 per cent nickel and 0.79 per cent copper with 0.85 grams per tonne platinum group elements.
Most of the diamond drilling in 2021 was focused around the T5 prospect and after identifying potential for further discoveries, the prospect remains a high priority for further exploration for this year.
In particular, a reverse circulation drilling program was undertaken in October at a newly identified prospect named Broonhill, which is a direct extension of the T5 basal contact.
Drilling discovered nickel-copper sulphides at several locations which are scheduled for follow-up diamond drilling and downhole geophysics to target further massive sulphide discoveries similar to T5. This work is set to begin once all reverse circulation assays have been received and incorporated into a revised geological model.
In addition to Broonhill, Estrella’s geological team identified two other target areas named Mossgiel and Gossan Hill. Exploration commenced late last year and is also set to continue in 2022.
A diamond rig is working continuously and a RC rig is operating on single shift and as such Mr Pereira said the company hopes to start seeing some “interesting results” soon.
With the increasing price of nickel and an expected lack of supply due to strong demand for battery materials, Mr Pereira said it is an exciting time to be a shareholder of a “strongly funded” nickel explorer.
Shares in Estrella Resources remain steady at 2.3 cents each as of 3:47 pm AEDT.