Lucky 13 Sends Altura Mining’s Share Price Higher (ASX:AJM)
The share price of lithium producer Altura Mining Ltd [ASX:AJM] has moved higher today on the news of gold being discovered at its Lucky 13 Prospect.
The AJM share price was flat last week despite the release of its quarterly activities report.
With the gold fever that seems to be sweeping across the ASX, AJM’s share price is up 3.23% to 6.4 cents per share.
The AJM share price has rebounded softly since the market crash in June.
Potentially weighed down by a weak lithium price.
Altura lines up for potential gold play
Today’s announcement could be the first of a series of gold related announcements from AJM.
The lithium producer said it had recently recovered 37 gold nuggets at its Lucky 13 Prospect.
Collectively, the nuggets weighed 25 grams.
Unlike gold explorers, who usually seek out mineralisation via geological survey and drilling, AJM appears to have come across the gold by happenstance.
AJM said its exploration team had discovered the gold nuggets in or beside a set of creek beds.
Perhaps what is more interesting is the geology of the surrounding area.
AJM say the gold find is located within a favourable geological and structural corridor.
Which lends its self to a fully-fledged gold exploration project, according to the company.
The nuggets were identified at three newly discovered gold prospects on AJM tenements.
The tenements are located approximately 4.5km south-southeast of the Altura lithium mine at Pilgangoora in Western Australia’s Pilbara region.
An area famed for its gold production.
The area is located near the mineralised Lynas and Cleopatra-Hazelby Faults.
The Lynas fault was identified by Lynas Corporation Ltd [ASX:LYC] in in the mid-1990s.
The Cleopatra-Hazelby Fault was recently mapped by Altura.
This mapping turned up two more gold prospects, Venta and Khasanah.
Lithium to gold
With soaring price of gold, it seems that more and more miners are making a play for gold.
While AJM did not explicitly state it was making a direct play for gold, it did say it planned to explore the prospects further.
Altura said it plans to complete a systematic soil-sampling program along the Cleopatra-Hazelby corridor.
The program will target the areas that indicate gold mineralisation at the Lucky 13, Khasanah and Venta Prospects as well as the previously defined Lynas Prospects.
Though its very early days for AJM, their gold discovery is just another example of how the Aussie gold scene is heating up.
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For The Daily Reckoning Australia