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WA Nickel Explorer ARN Just Identified 2 New Drill Targets


Published 14-APR-2021 11:31 A.M.


2 minute read

Nickel explorer Aldoro Resources (ASX:ARN) has confirmed two high confidence, ‘walk up’ drill targets.

We like to see “walk up drill targets” because it means the geologists are confident the targets can be drilled without any additional field work required.

This means ARN is edging closer to its planned nickel drilling event.

We invested in ARN based on its tight share register, attractive entry price, and leverage to a large nickel discovery.

We increased our position when internationally renowned geologist Dr Minlu Fu invested in ARN and started providing technical advice to the company.

Dr Fu and his associates recently invested $2M into ARN, making his entity one of ARN’s largest shareholders.

Dr Fu has had success in the past, and obviously he has seen something he likes in ARN’s ground.

We are in ARN for an outsized return on a large nickel discovery - but it’s early days in ARN’s exploration journey, and metals exploration is a risky business, with no guarantee of success.

You can read more about what a successful nickel discovery looks like here.

Aside from an outsized return on a discovery, we are also anticipating a flurry of short term market interest in ARN in the lead up to drilling.

Catalyst update - ‘High confidence’ drill targets identified

ARN is currently running a number of surveys across its ground, in order to firm up drill targets and increase its confidence when it comes time to drill test them.

Drilling can be expensive, so this is a prudent approach.

Two very high confidence, walk up drill targets have just been identified.

Additional highlights from ARN’s announcement include:

  • Initial processing of FLEM data has confirmed two walk-up, drill-ready targets
  • One target is a very discrete bedrock conductor
  • Two additional targets have also been confirmed as bedrock conductors and will undergo further definition utilising MLTEM.

If you are interested in the geological details, see ARN’s ASX announcement.

This is another step forward for ARN, and the company remains on track to get the drill bit spinning in the next few months on what is shaping up to be a number of targets.

Our Investment Strategy for ARN

We expect ARN to deliver the following key milestones over the next 3 to 6 months and the share price to appreciate as the market speculates on a drilling outcome:

  • Key Team additions (✅ Dr Minlu Fu)
  • Permits and Land rights (✅ all land rights and permits secured)
  • Drill targets identified ( ✅ some already found, potentially more to come)
  • Geological surveys and prep work (ongoing)
  • Drill rig secured
  • Key Catalyst: Drilling begins

In the lead up to drilling we expect the share price to increase on speculation of a positive result and will aim to take back our initial investment as drilling draws closer.

We plan to retain a significant position into the drilling results which are hopefully positive.

At that point, we will assess our investment strategy based on drilling results.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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