Dundas Minerals’ share price climbs from 20c to $1.15 in under three weeks

The latest nickel drilling results from Dundas Minerals (ASX:DUN) has pushed the company’s share price up to $1.15, no small feat, given under three weeks ago, it sat at 20c. 

Year to date returns for Dundas shareholders are currently up 475%. 

One month returns, meanwhile, sit up 521%. 

What’s driving today’s gains? 

Dundas has finished drilling its latest downhole asset, 22CEDD001, a diamond drill rig operation that produced 423m of core from the Albany-Fraser Orogen polymetals project north of Esperance. 

This latest drill run probed the ‘Central’ target on-site.

Dundas notes that visible sulphide mineralisation defines the lion’s share of it, at 358m containing the visible characteristics. Sulphide mineralisation is often coincident with nickel and gold mineralisation proper (as well as other metals,) pending assay tests will determine this. 

At some points of the core samples, sulphide mineralisation makes up over 80% of the core material. 

Extremely rewarding: management

“While we were always confident of the data modelling, to see [sulphides] is extremely rewarding for the small team, it’s an outstanding result,” Dundas Minerals MD Shane Volk said. 

“We now very much look forward to receiving the assay results and to move to the drilling of our second hole at Central, which will be almost vertical.” 

“Hole 2 is targeting an anomaly to a depth of more than 500m…given today’s results, we’d expect to intercept sulphides again.” 

The company notes assay results for today’s pull may take up to two months to come back to the company. 

Battery Metal potential

Dundas shares are trading up today, which is perhaps no surprise when one considers nickel’s role as an emerging battery metal, with BloombergNEF forecasting solid demand for at least the next decade.

Nickel is a major constituent of lithium-ion batteries, both those used in Electric Vehicles (EVs), and also grid-scale battery assets used in BESS operations—like Tesla’s ‘Megapack’ products. 

While lithium is the most obvious constituent of a lithium-ion battery, there is still a huge need for both copper and nickel.

Sentiment for copper’s future in the battery supply chain is equally bullish. 

The Australian Chief Economist, alongside BloombergNEF, predicts copper prices to continue experiencing a rally well into the 2030s.

Hoo boy: a look at Dundas' three month charts

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Dundas was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.