21/05/2008 - 10:33

Epsilon soars on 1bn tonne iron target

21/05/2008 - 10:33

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Epsilon Energy has entered a trading halt as shares in the Subiaco-based explorer skyrocketed by as much as 411 per cent in trade today, after an exploration target of 1 billion tonnes of iron ore was revealed for its Mardie project in the Pilbara.

Epsilon soars on 1bn tonne iron target

Epsilon Energy has entered a trading halt as shares in the Subiaco-based explorer skyrocketed by as much as 411 per cent in trade today, after an exploration target of 1 billion tonnes of iron ore was revealed for its Mardie project in the Pilbara.

Following yesterday's closing price of 17c, the company's share price soared to a high of 87c at around lunchtime today with over 6 million shares trading hands, well above the past week's trading average of around 25,000 shares.

In an investor briefing the company outlined the project's geology was comparable in size to the nearby Australasian Resources Balmoral South deposit, which has a defined resource of 1.1 billion tonnes.

An independent report also suggested the project's iron ore quality was similar to that of the Balmoral magnetite iron deposits and there was also potential for hematite iron, which can be directly shipped to customers.

Adding to the project's favour is its close proximity to port site options, the north-west gas field and access to water, while nearby towns of Dampier, Karratha and Port Hedland means the project has potential access to labour and services.

Shortly after releasing the investor presentation on the stock market, Epsilon went into a trading halt pending further clarification over the 1bt iron ore exploration target.

The company is predominately a uranium explorer however it has diversified into other commodities including mineral sands.

Epsilon's share price last traded at 68c, giving the company a market capitalisation of $26.5 million.

 

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