WA Nickel Explorer ARN Just Identified 2 New Drill Targets
Nickel explorer Aldoro Resources (ASX:ARN) has confirmed two high confidence, ‘walk up’ drill targets.
We like to see “walk up drill targets” because it means the geologists are confident the targets can be drilled without any additional field work required.
This means ARN is edging closer to its planned nickel drilling event.
We invested in ARN based on its tight share register, attractive entry price, and leverage to a large nickel discovery.
We increased our position when internationally renowned geologist Dr Minlu Fu invested in ARN and started providing technical advice to the company.
Dr Fu and his associates recently invested $2M into ARN, making his entity one of ARN’s largest shareholders.
Dr Fu has had success in the past, and obviously he has seen something he likes in ARN’s ground.
We are in ARN for an outsized return on a large nickel discovery - but it’s early days in ARN’s exploration journey, and metals exploration is a risky business, with no guarantee of success.
You can read more about what a successful nickel discovery looks like here.
Aside from an outsized return on a discovery, we are also anticipating a flurry of short term market interest in ARN in the lead up to drilling.
Catalyst update - ‘High confidence’ drill targets identified
ARN is currently running a number of surveys across its ground, in order to firm up drill targets and increase its confidence when it comes time to drill test them.
Drilling can be expensive, so this is a prudent approach.
Two very high confidence, walk up drill targets have just been identified.
Additional highlights from ARN’s announcement include:
- Initial processing of FLEM data has confirmed two walk-up, drill-ready targets
- One target is a very discrete bedrock conductor
- Two additional targets have also been confirmed as bedrock conductors and will undergo further definition utilising MLTEM.
If you are interested in the geological details, see ARN’s ASX announcement.
This is another step forward for ARN, and the company remains on track to get the drill bit spinning in the next few months on what is shaping up to be a number of targets.
Our Investment Strategy for ARN
We expect ARN to deliver the following key milestones over the next 3 to 6 months and the share price to appreciate as the market speculates on a drilling outcome:
- Key Team additions (✅ Dr Minlu Fu)
- Permits and Land rights (✅ all land rights and permits secured)
- Drill targets identified ( ✅ some already found, potentially more to come)
- Geological surveys and prep work (ongoing)
- Drill rig secured
- Key Catalyst: Drilling begins
In the lead up to drilling we expect the share price to increase on speculation of a positive result and will aim to take back our initial investment as drilling draws closer.
We plan to retain a significant position into the drilling results which are hopefully positive.
At that point, we will assess our investment strategy based on drilling results.
General Information Only
This material has been prepared by Jason Price. Jason Price is an authorised representative (AR 000296877) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and a Director of S3 Consortium Pty Ltd (trading as StocksDigital).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Jason Price, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, Jason Price, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
