Investors continue to wind up the commodity trade in 2022
The post Guess which ASX mining share just exploded 50% on a ‘substantial discovery’ appeared first on The Motley Fool Australia. –
Shares of Lion One Metals Ltd (ASX: LLO) have surged to more than 48% higher in trade on Tuesday after a key company update.
Investors have rallied the stock to $2.06 at the time of writing, a shade off the intraday high of $2.45 in early trade.
The price action also marks a 52-week high for the company whose share price had flatlined up until today’s announcement.
What did Lion One release?
The company announced the discovery of a major new feeder structure at its Tuvatu Alkaline Gold Project in Fiji.
Specifically, Hole TUG-141 has encountered the longest high-grade intercept yet recorded at Tuvatu. The company was targeting a complex network of high-grade structures called the 500 Zone at the site.
It intersected 20.86 g/t Au over 75.9m, including 43.62 g/t Au over 30.0m which includes 90.35 g/t Au over 7.2m.
“The new discovery is located at depth beneath the current resource fully within the permit boundaries of the Tuvatu mining lease,” it remarked.
The company’s CEO, Walter Berukoff, said the find “represents a substantial discovery for Lion One”.
I have long encouraged our team to find that “gold room” at Tuvatu, and hole TUG-141 leads me to believe they have found it. We have only to look at other notable large alkaline Au deposits as direct
analogues to better understand what this latest discovery tells us, and it is clear that the discovery of a major high-grade feeder such as this should be viewed as very promising.
I am confident that Tuvatu will one day fall in the ranks of notable multi-million ounce Au deposits such as Porgera and Vatukoula.
The company says that further drilling is required to better understand the results, and that hole TUG-141 is still being drilled. Other mineralised structures are yet to be assayed.
Its immediate priority is to follow up with additional drilling in the Tuvatu system.
The post Guess which ASX mining share just exploded 50% on a ‘substantial discovery’ appeared first on The Motley Fool Australia.
Should you invest $1,000 in Lion One Metals right now?
Before you consider Lion One Metals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lion One Metals wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
Down 13% in a month, fundie says Xero share price is ‘very reasonable’
Why Core Lithium, Perenti, Strandline, and Yancoal shares are pushing higher
Is the Vanguard Australian Shares High Yield ETF a good investment for dividends?
Why is the Strike Energy share price popping on Tuesday?
