It’s not often you see a stock double in value in a single day.
That’s exactly what Alliance Resources Ltd [ASX:AGS] has managed to do though. As of time of writing, the AGS share price is up 111%.
A stellar gain for this junior gold miner.
AGS Drilling success
The reason for the stunning share price surge is a major drilling result.
Alliance has found more gold at their Weednanna project in South Australia. It looks as though mineralisation of the deposit is even better than first thought.
That includes one incredible intersection which has 166 grams of gold per tonne.
This result will now set the stage for further drilling to come. A sign that Alliance may be on to a winner. No doubt bolstering their chances for the commercial viability of the site. As they note:
‘Metallurgical studies on gold ore from the Weednanna Deposit is ongoing to optimise the ore processing flowsheet for the deposit.
‘Alliance intends to upgrade the gold and iron ore mineral resource estimates for the Weednanna Deposit during H2 2020 and commence feasibility study level assessment of the commercial viability of the deposit.’
So, while there is still work to be done, today is a landmark achievement. One that solidifies Alliance’s chances of becoming a genuine producer.
Plus, at the same time, Alliance had some promising news on their Nepean project as well. Another gold site in WA.
Although it was only early soil sampling, traces of gold were found. Hinting at the potential for another great find for this junior miner.
Betting on the shiny stuff
For investors, it is a perfect example of the potential within the gold sector right now. Especially if the price of the yellow metal keeps climbing.
If you’re more of a speculative punter, then small miners like Alliance may be right up your alley. But remember, they’re not for everyone.
It takes a high level of risk tolerance to take a chance on a stock like this.
But, as for gold in general, well you certainly have plenty of options. Which is why you should check out Jim Rickards’ latest report on why he believes more people should invest in gold. Get your free copy, right here.
For The Daily Reckoning Australia