Auroch Minerals making rapid progress with first drillhole at Alcoutim
Published on: | by Trevor Hoey
Confirmation on Monday morning by Auroch Minerals (ASX: AOU) that the group had made rapid progress with its first deep diamond drill hole at the Alcoutim copper zinc project in Portugal prompted a share price spike of more than 5%.
AOU has the right to acquire 75% of the base and precious metals project located in south-eastern Portugal along strike from the supergiant Neves Corvo mine situated in the Western half of the world famous Iberian pyrite belt.
The Alcoutim project covers 576 square kilometres and lies immediately east and down plunge of Neves Corvo. Previous geophysical exploration has highlighted 22 targets that are characterised by coincident gravity and magnetic anomalies, and modelling of the data suggests target depths of between 700 metres and 1000 metres.
Consequently, this is a crucial drilling campaign for AOU. The current hole is the first of a five hole program which will be conducted over the next six months. The company is well funded to progress the campaign with $7.7 million in cash, receivables and loans to Bolt Resources (holder of Alcoutim copper zinc license).
The target zone should be intercepted in coming weeks, and the collection of downhole geophysical data will provide an indication of what may lie ahead.
Since drilling commenced ahead of schedule on May 15 the company’s shares have traded as high as 20 cents, and a break above this level could interest technical analysts.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.