Magma Metals Shares Rise to Record After Platinum Discovery
By Yuko Narushima
Dec. 27 (Bloomberg) -- Shares in Magma Metals Ltd., an Australian metals explorer, rose to a record after it said it found platinum in north-west Ontario, Canada.
Shares in the Perth-based company surged almost sevenfold in the six days before today, before it released a statement confirming the discovery of platinum, copper and nickel in drilling at its Thunder Bay North and Beaver Lake projects.
The company began announcing preliminary results from the drilling program Dec. 18. It didn't give results of assays on the results until today.
Magma shares rose 5 cents, or 6 percent, to close at 89 cents in Sydney. The stock has almost quadrupled in value since it began trading on the exchange in June.
Magma`s shares rose 6% on the news Australian mining and exploration company Magma Metals announced today that it had made a major platinum discovery in Canada, driving its share price to new highs.
Shares in the Perth-based company had surged after preliminary results from its Thunder Bay North and Beaver Lake projects in north-west Ontario, Canada suggested that it had discovered a lode of platinum, copper and nickel before this was confirmed by the company in today`s statement.
The projects are located about 50 km northeast of the city of Thunder Bay and 50 km southeast of the large Lac des Iles palladium-platinum mine and concentrator.
"Geophysical modelling of the anomaly indicates a shallow steep dipping tabular intrusion which is interpreted to be the source of palladium-platinum and silver-copper mineralised boulders found on the western and eastern shores of the lake," the company said in a statement.
Geophysical modelling indicates that the anomaly reflects a vertical pipe-like structure some 450 m across, the top of which is about 30 m below the surface. Final assay results are expected to be available in January 2007.
Shares in Magma rose 6% to close at A$0.89/share - almost quadruple its price when it floated on the ASX in June. (December 27)
MMB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
