Gold Discovery Sends Aruma Resources Ltd Share Price Climbing
It’s been a bumper couple of months for junior gold miners.
The precious metal has had a stellar run given the turbulent economic times. And while much of the world is in lockdown, mining exploration in Australia is still going strong.
Just look at Aruma Resources Ltd [ASX:AAJ].
This tiny mining company announced a promising ‘anomalous’ gold find yesterday. Meaning they uncovered a surprising but welcome intersection of the yellow metal.
And a further clarification on this find has helped lift their shares 25% in trading today.
Jackpot without any digging
The irony of Aruma’s situation is that it didn’t even have to do any drilling to find this gold.
Instead, the result was confirmed via a compilation of historical data. Piecing together a snapshot of what could be a huge discovery. As Aruma notes:
‘These results correspond with the interpreted structure, which is of similar orientation to the mineralised envelope at Paulsens. This structure represents just one of a number of similar sub-parallel, regional-scale structures in the area and presents as a high priority exploration target for structurally-controlled gold mineralisation.’
The challenge for Aruma now is to follow-up on this breakthrough. Finding the means and the cash to start drilling for further confirmation.
Nevertheless, shareholders will still be pleased with this result. Giving them hope for bigger and better news to come, as well as a bump in share price.
For many investors however, this speculative roll of the dice may be asking too much.
While investing in junior gold miners like Aruma can be lucrative, it is also extremely risky. Which is why you should perhaps consider more traditional avenues for investing in gold.
Luckily, we have the perfect report for just that.
Our resident guru, Jim Rickards has outlined in detail his ‘new case for gold’. A look at not only why investing in this precious metal may be a smart move, but also how you can go about it.
Get your copy of Jim’s report, for free, right here.
For The Daily Reckoning Australia