Eromanga rockets as EM surveys take off Paul Garvey Monday, 7 May 2007
EROMANGA Uranium managing director Kevin Lines says a "combination of factors" is responsible for this morning's stunning 49.5% rise in his company's share price.
Shares in Eromanga had put on 24c in trade today to sit at 72.5c just after midday.
Last Friday, the company announced it was set to begin two airborne electromagnetic surveys later this week.
In addition, Eromanga said it had signed contracts for the drilling of two deep diamond drillholes into the Billa Kalina project in South Australia.
Eromanga's shares put on 6c to 48.5c in late trading following that announcement.
Speaking to MiningNews.net this morning, Lines said the share price movement represented a "justified re-rating" of the explorer.
"As the announcement says, we've got two big EM surveys about to start, and that will generate a lot of targets for us," Lines said.
In addition, Lines said the market was interested in the outcome of drilling at the Billa Kalina gravity anomaly, which sits near the Olympic Dam and Prominent Hill copper-gold mines, as well as Teck Cominco's recent Carrapateena discovery.
"After that magnificent intersection at Carrapateena that left us all gobsmacked, people want exposure to that area," Lines said.
Meanwhile, the two EM surveys are expected to start on Wednesday. The surveys will cover around 12,000 line kilometres of the Billa Kalina and Abminga projects. Lines said the surveys would cost around $1.2 million.
Lines said the EM surveys would use the same system that defined an as-yet undrilled paleochannel uranium target at Eromanga's Marree project.
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