Shares in mineral exploration company Marquee Resources Ltd (ASX: MQR) are charging up with authority today, currently trading at 12 cents apiece.
Shares in the company rallied as much as 13% in early trading before retracing back to their current gain of 9% on the day.
Marquee shares are catching bids as investors respond positively to a company announcement on the West Spargoville Project. Here are the details.
What did Marquee Resources announce?
The company advised that, after recent drilling and geological review of the site, it has identified potential to identify lithium bearing lithium-ceasium-tantalum (LCT) pegmatites within the project area.
Marquee has subsequently received the final results from a 55.5 line-kilometre, Deep Ground Penetrating Radar (DGPR) survey that was recently completed at the site.
DGPR is a contemporary geophysical tool for imaging the earth's subsurface. The company says it works in a comparative manner to the "seismic velocity-depth method, utilizing variable wavelength radar pulses which experience refractions, reflections and diffractions at geological boundaries where the dielectric constant change".
It has gained traction as a preferred method in field studies in recent times due to its rapid acquisition and cost efficiency.
Marquee says the DGPR interpretation provides a "strong basis for favourable structure in the area as well as identifying numerous target features for follow up drill testing".
The Company is also nearing completion of a 3,200 hole auger program. Sampling will be completed within the "coming days", per the release.
Due to the increased demand placed on laboratories during the current quarter, assay results have been delayed, however, first results should be delivered in the second week of December, according to the announcement.
Aside from this, Marquee Resources also announced that the remuneration of the company's Executive Chairman, Charles Thomas, has increased from $150,000 per annum to $240,000 per annum – a 60% increase in yearly salary.
This change in remuneration is to "recognise Mr Thomas's increased workload and also to bring his remuneration into line with industry standards".
Management commentary
Speaking on the announcement, Thomas said:
We are very excited about some of the targets that have come out of the DGPR data. The geophysicists are particularly excited about what have been interpreted as "layered anomalies" which may represent large targets and should be drill tested as soon as possible. This is in addition to multiple pegmatite-like structures that have been mapped throughout the survey area.
Thomas continued:
We are also days away from completion of the auger geochemistry program with results expected imminently, so it has been a busy period of exploration at West Spargoville. During the auger campaign the field crew have also been mapping and sampling numerous outcropping pegmatitesso piece by piece we are unlocking the lithium potential of the Project. The Company is perfectly positioned to drill test some exciting targets first thing in the new year.
Marquee resources has climbed almost 67% in the last 12 months after rallying another 85% this year to date.
In the past month, it has gained more than 4% and is flat on the previous week of trading.
