ASX-listed nickel hopeful, Estrella Resources enjoyed a stellar ride on the bourse in the wake of arguably one of the most exciting base metals discoveries last year at its Carr Boyd nickel project about 80 kilometres north-north-east of Kalgoorlie.
Results from the Perth-based company’s diamond drill program lit a fire under its share price placing the stock amongst the best performing small caps of 2020. Estrella shares posted gains of more than 2,000 per cent during last year and an open letter to shareholders by its Chairman Les Pereira suggests the company has more good news flow to look forward to in 2021.
Mr Pereira said: “We are very much looking forward to 2021 to continue building on the fantastic results. We will be shortly starting a new drilling program at T5 and aim to have two drill rigs operating on site to assist in unlocking the source of massive nickel and copper sulphides thus far discovered. While the second half of 2020 was rewarding, we firmly believe the best is yet to come. The upcoming six months is looking very exciting.”
Just before Christmas, Estrella caused pulses to quicken with an impressive nickel sulphide diamond drill hit of 20.1 metres averaging a grade of 1.02 per cent nickel and 0.65 per cent copper from 368.5m down-hole from one of the follow-up holes.
Within that wide intercept was a higher-grade core of 2.45m going 1.64 per cent nickel and 1.97 per cent copper, 5.88m at 1.38 per cent nickel and 0.64 per cent copper, 0.78m at 5.45 per cent copper and 1.17 per cent nickel, and 2.45m at 1.64 per cent nickel and 1.97 per cent copper.
Two other diamond core holes intersected a zone of 24.68m of nickel and copper sulphide mineralisation about 100m down-dip from the discovery diamond hole at T5 and a zone of 16.5m of sulphide mineralisation about 30m south of and 90m below it.
Estrella’s shareholders are now waiting with bated breath for the nickel and copper assays from those handful of diamond drill holes. The latest program is following up on the deep T5 massive nickel sulphide discovery diamond hole three months ago that sent Estrella’s share price skyrocketing from just above $0.01 to around $0.08 in one day.
The slew of diamond drill hits underpinned a remarkable ride for Estrella shareholders, from sub-1¢ to a high of 25¢ within the space of a year. While some profit-taking tempered what was a turbocharged upswing, a growing body of evidence suggests there may be more solid news flow to come from this 2020 market darling.
Taking a look back at the first significant diamond drill hole discovery posted by Estrella, the T5 prospect returned a compelling intersection of 13.9m grading 1.07 per cent nickel and 0.39 per cent copper from 431.6m down-hole. It contained higher-grade, massive sulphide sections assaying 2.5m at 3.66 per cent nickel and 0.46 per cent copper, and 3.7m at 2.85 per cent nickel and 0.65 per cent copper.
Understandably, Estrella has made quick plans to kick off a further diamond drilling campaign which is expected to commence next week.
With $3.2 million in cash as at December 31 and an assortment of lucky or smart investors converting in-the-money company options, Estrella is well set for an intensive exploration push at Carr Boyd that potentially may culminate in a resource target this year.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
