Don't Discard Enterprise Metals
Enterprise Metals has given its shareholders a wild ride in the past week. Its share price first doubled - as drill testing of the first of a series of geophysical anomalies at its Vulcan West prospect commenced - then plummeted 60%. It would be premature to extrapolate the market reaction to the company’s report to dismiss the propect’s potential. Importantly, the drill hole confirmed that the Vulcan prospect is in a package of rocks bearing strong similarities to those hosting the nearby Monty discovery. Enterprise reported a sequence of volcano-sedimentary rocks with chlorite-sericite alteration, iron sulphides (pyrite and pyrrhotite) and local red jasper. The red jasper was associated with minor chalcopyrite. The geophysical anomaly was related to the presence of doleritic rocks in the sequence but it is unclear if this unit is part of the volcano-sedimentary sequence or a later intrusive body. Assays are awaited and the hole was prepared for a future down-hole electromagnetic survey. Full assays (including trace elements) of hole VWRC001 should be used as a guide to appraising the merits of the prospect.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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