Alderan continues remarkable run

SHARES in base metals newcomer Alderan Resources hit a fresh high today, tipping the company’s market capitalisation over A$200 million just three months after listing.
Alderan continues remarkable run Alderan continues remarkable run Alderan continues remarkable run Alderan continues remarkable run Alderan continues remarkable run

The historical Cactus mine at Frisco.

Kristie Batten

The company jumped another 25.2% today, closing at $1.99 after shares peaked at $2 intraday.

Alderan listed in June after a heavily oversubscribed $8.5 million initial public offering, and closed its first day at 90% above the 20c per share issue price.

Today’s closing price represents an 895% rise for Alderan since the start of its listed life, making it by far the best performing resources IPO of 2017.

The company’s listing coincided with the start of a rally in base metals, with copper reaching close to a three-year high last week, while zinc sits at 10-year highs.

Alderan owns the Frisco project in Utah, a historical base metals project which is underexplored in modern times due to fragmented ownership.

The company considers Frisco to be a single, connected and preserved copper porphyry system with large associated copper-gold-silver breccia pipes and copper-zinc/lead-silver-zinc skarns.

Today Alderan said an induced polarisation survey at the Cactus Canyon prospect had identified a large anomaly coincident with a large circular magnetic anomaly, surface alteration and geochemical surface anomalism.

The company said the large 5km by 3km chargeability anomaly wrapped around a 2km by 1.5km resistivity anomaly, consistent with a large porphyry copper system.

The IP survey is continuing ahead of the maiden drilling program, which will focus on the 1000m corridor comprising the Cactus, Comet and New Year mines – the first at Cactus in nearly 30 years.

Alderan CEO Christopher Wanless presented at the Melbourne Mining Club this afternoon.

Also contributing to Alderan’s rise today could be a report by The Australian yesterday that said Deutsche Bank was backing the company’s current East Coast roadshow.

Chairman Nicolaus Heinen’s Belgrave Capital Management is the company’s largest shareholder with a 28.5% stake, while former Syrah Resources boss Tolga Kumova holds 11.8%.

Joining Wanless and Heinen on the board is geologist Don Smith (also chief operating officer) and fellow Syrah founder Tom Eadie.