The Tasman Resources Ltd (ASX: TAS) share price surged an incredible 85.2% this morning before the company entered a trading halt around midday.
By the time the ASX approved Tasman's request for a trading suspension, the Tasman share price was swapping hands for 10 cents each – up 4.6 cents on yesterday's close. At one point today, its share price hit a 52-week high of 12 cents.
Tasman Resources Ltd is a Perth-based Australian exploration company focusing on exploration projects with the potential to deposit a wide range of precious and base metals, including gold, silver, copper, zinc, lead, nickel, and uranium. Its projects are Lake Torrens Project, Pernatty Project, Parkinson Dam Epithermal Gold-Silver (Lead-Zinc) Project, and Vulcan prospect.
Let's take a closer look.
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Why is the Tasman share price rocketing?
In an announcement to the ASX this morning, Tasman Resources declared it had struck "massive" amounts of iron ore at its Lake Torrens site in South Australia.
The site exploration is in partnership with Fortescue Metals Group Limited (ASX: FMG). Fortescue drilled the holes at the site, located 30km north of BHP Group Ltd's (ASX: BHP) Olympic Dam mine.
In one drilling spot, Tasman discovered rock comprising 70-100% iron ore near the surface. Deeper exploration led to the discovery of rock consisting of 40-70% iron ore.
At the second drill spot, the company advised it had again found "massive" iron ore amounts.
Trading Economics says iron ore is at its highest price in at least 5 years. As of writing, one tonne was selling in the commodities market for USD 175. In June 2016, the mineral was trading at around USD 50 a tonne – a 250% increase. Yet, many analysts are predicting the price of iron ore to fall for the foreseeable future.
Investors seem to believe Tasman has struck the proverbial gold mine.
Tasman share price snapshot
Tasman Resources share price has gone from strength to strength. This time last year, shares in the mining company were trading at a low of 2.1 cents each. That's an eye-watering 400% increase over the period.
The company's market capitalisation is $33 million.
