One of the most higgledy piggledy shares, in terms of radical price swings, on the TSX jumped to a near 52-week high Thursday, just a month after dropping to a near 52-week low, as Erdene Resource Development (
TSX:T.ERD,
Stock Forum) announced multiple high-grade gold and silver strikes at its Altan Nar project.
The Halifax, Nova Scotia-based polymetallic explorer received final assay results for its southwest Mongolia-based project and liked what it saw.
Peter Akerley, President and CEO of Erdene, stated he was, "
extremely pleased with the results generated from this program.”
“We have discovered multiple new zones, broad areas of mineralization, confirmed that the potential for new discoveries extends over the 5.5 kilometre strike length, and have identified high-grade mineralized shoots," said Akerley. "There is little question that Altan Nar not only has the potential for multiple, bulk mineable open pits with high grade shoots, but now represents one of the most significant metal discoveries in Mongolia since Oyu Tolgoi in the mid-1990's. We will now accelerate our efforts for the 2014 exploration season and move this very exciting project towards early development."
According to the company news release, “Union North results confirm minimum 150m strike, open in both directions and centered on high grade mineralized shoots with up to 19m of 8.9 g/t gold, 66 g/t silver, 7.7% lead and 2.5% zinc including 7m of 20.2 g/t gold, 138 g/t silver, 17% lead and 5% zinc. ANT-24 (Union South) returns 10m of 4.5 g/t gold, 9 g/t silver, and 2.2% lead opening up >500m of strike length between the Union North and South Zones. Riverside results indicate intensifying mineralization in north with 14m of 1.4 g/t gold and potentially forming a structural intersection with Union North.”
It continued, “Altan Nar now hosts five large, distinct, well mineralized structures in Union North & South, Discovery Zone, Riverside, Maggie, Northbow and Southbow, with multiple areas requiring additional exploration.”
This contrasts wildly with
previous results in December, which saw 38 metres of 1.6 g/t of gold, and yet saw shares in the company drop 21%. A month earlier, early stage testing saw the
stock jump 55% on good results.
Shares in T.ERD jumped 40.7% on Thursday trading, jumping $0.055 to $0.19. The company has a market cap of $13.0 million on 68.6 million shares outstanding.