We have recently been accumulating a position in a tiny nickel explorer Aldoro Resources (ASX: ARN).
We just increased our position off the back of ARN securing Dr Minlu Fu, an internationally renowned geologist coming on board as a strategic investor and technical advisor.
Dr Fu has an envious track record, having been heavily involved in a number of nickel, copper, and gold discoveries, delivering maiden exploration success for a number of companies.
Following a $2M strategic placement, Dr Fu’s entity will be one of ARN’s biggest holders.
ARN is capped at just $16M and now holds over $4M in cash – this is a fraction of other WA nickel explorers.
ASX: ARN
Dr Fu has obviously seen something he likes in ARN’s exploration ground.
ARN has a ‘whole of play’ position, with 100% of a 306km2 land package across the Narndee Complex – the largest layered mafic-ultramafic complex in Australia, and in the Top 10 globally with respect to size.
Mafic-ultramafic complexes have unique geology and are the right places to host large nickel-PGE deposits.
Nickel-PGE exploration can deliver spectacular returns, just look at Chalice Gold Mines.
Chalice Mines discovered the world class Julimar PGE-Ni-Cu-Co-Au discovery in WA in 2020. This was Australia’s first major palladium discovery and opened up an entirely new minerals province.
On the back of this discovery, Chalice went from 20c to $5.31 – that’s over 25 x return. It is now capped at $1.8BN…
ARN is currently doing technical work to build up a list of drill targets that it expects to drill in April/May.
Whilst it is very early days for ARN holders, we think:
With less than 80 million shares on issues we believe the share price will react well to positive news.
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