What was it that sparked the spike in interest in shares in Alien Metals Ltd (LON:UFO) this week? With junior miners it’s often hard to know for sure, but in the absence of specific news from alien one likely contender is a report that was released outlining the potential of a development likely to be undertaken by Teck next door to Alien’s Donovan 2 project in Mexico.
A new pre-feasibility study for Teck’s San Nicolas copper-gold project in Zacatecas state is due in the first half of the current year. If the results are favourable it will mark an end to years of uncertainty about the potential for development or otherwise of a project that looks likely to open up the whole district to significant investment.
Alien’s nearby Donovan 2 project is the subject of a recently commissioned induced polarisation survey. The project has already been the subject of earlier geophysical work, and it’s expected that following the latest round drill targets will be identified.
But what was perhaps more interesting for markets was a cryptic allusion to “a major base metals company” in the announcement of the new round of IP work. Alien said that it had confirmed the value of doing IP work on its ground in discussions with a company that regards it as “an effective tool” to use in the region.
Trading volumes in Alien shares jumped to nearly 74mln on 19 February as investors began to wake up to the implications of the proximity of Donavan 2 to San Nicolas.
As a result the shares jumped to as high as 0.28p, although they settled later at 0.21p.
The current price is 0.23p, which is more than double where the shares were trading at six months ago.