Much to the delight of its shareholders, the Alderan Resources Ltd (ASX: AL8) share price has stormed to a new all-time high during trade today.
At the time of writing the metal exploration company’s shares are up 18% to $1.88.
Why are its shares higher?
This morning the company significantly upgraded the porphyry copper potential at its Frisco site in Utah, United States, after receiving the preliminary results of its induced polarisation survey.
According to the release, the results of the survey defined a large induced polarisation anomaly coincident with a large circular magnetic anomaly, surface alteration, mineralisation, and geochemical surface copper anomalism at the Cactus Canyon prospect.
The induced polarisation survey, which is a geophysical imaging technique used to identify the electrical chargeability of subsurface materials, found an anomaly that forms a large contiguous 5km by 3km chargeability anomaly which then wraps around a 2km by 1.5km resistivity anomaly.
What does this mean?
What this essentially means is that Alderan has potentially uncovered an extremely large, preserved, and mineralised porphyry copper system at the prospect.
A system of this size would be an extremely lucrative asset for the company to possess and I can’t say I’m surprised that investors are getting excited by these results.
Furthermore, it is only one of a number of prospects at the Frisco site.
Should you invest?
Whilst today’s news is undoubtedly a huge positive, it is still early days and there’s a lot of work to be done.
I feel very confident Alderan has a world-class asset on its hands, but for me it is still a touch too soon to make an investment.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Looking for good ASX dividend shares? I would buy these right now – August 4, 2020 5:00pm
- Woolworths provides update on the impact of COVID-19 restrictions – August 4, 2020 4:35pm
- 3 high quality blue chip ASX 200 shares to buy – August 4, 2020 4:30pm