Much to the delight of its shareholders, the Alderan Resources Ltd (ASX: AL8) share price has stormed to a new all-time high during trade today.
At the time of writing the metal exploration company's shares are up 18% to $1.88.
Why are its shares higher?
This morning the company significantly upgraded the porphyry copper potential at its Frisco site in Utah, United States, after receiving the preliminary results of its induced polarisation survey.
According to the release, the results of the survey defined a large induced polarisation anomaly coincident with a large circular magnetic anomaly, surface alteration, mineralisation, and geochemical surface copper anomalism at the Cactus Canyon prospect.
The induced polarisation survey, which is a geophysical imaging technique used to identify the electrical chargeability of subsurface materials, found an anomaly that forms a large contiguous 5km by 3km chargeability anomaly which then wraps around a 2km by 1.5km resistivity anomaly.
What does this mean?
What this essentially means is that Alderan has potentially uncovered an extremely large, preserved, and mineralised porphyry copper system at the prospect.
A system of this size would be an extremely lucrative asset for the company to possess and I can't say I'm surprised that investors are getting excited by these results.
Furthermore, it is only one of a number of prospects at the Frisco site.
Should you invest?
Whilst today's news is undoubtedly a huge positive, it is still early days and there's a lot of work to be done.
I feel very confident Alderan has a world-class asset on its hands, but for me it is still a touch too soon to make an investment.
I would suggest investors keep a close eye on Alderan and consider resources shares such as South32 Ltd (ASX: S32) or Galaxy Resources Limited (ASX: GXY) in the meantime.
