SHARES in junior explorer Epsilon Energy were catapulted over 400% this afternoon after the company brazenly announced a 1 billion tonne iron ore exploration target at the Mardie project in the Pilbara.
The market was impressed with the company’s corporate update and sent Epsilon’s shares from 17c to 87c before it entered a trading halt over “further clarification” of the 1Bt figure.
The company's shares had cooled to 68c by the time it entered the halt.
The Perth-based junior has recently shifted its focus from uranium – which was its target commodity when it listed last year – to iron ore and mineral sands, with its two key projects in the Pilbara and the Eucla Basin.
Epsilon acquired the Mardie project last month, and the company said after geophysical data analysis it had identified an extensive banded iron formation anomaly which it believes is part of the Brockman formation.
The 224-square-kilometre prospect could also host sandstone-type rollfront uranium deposits, Epsilon said in April.
The project area is southwest of Australasian Resources’ and CITIC Pacific’s Balmoral resource and in the same area as Rio Tinto’s Mesa A mine.
The company said it plans to conduct both a ground gravity and an electromagnetic survey over the target area and would follow up with drilling.
EPS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
