Equitas Up Over 20 Percent After Identifying Nickel-Copper Sulfide Targets At Garland
Equitas Up Over 20 Percent After Identifying Nickel-Copper Sulfide Targets at Garland

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Equitas Resources (TSXV:EQT) only acquired the Garland nickel-cobalt-PGM property in September 2014, but it's already seeing good results.

The company announced Wednesday that a VTEM Plus airborne survey at the property has identified nine areas of conductivity that are prospective for nickel-copper sulfides, and its share price shot up over 20 percent as a result. It was sitting at $0.105, up 23.53 percent, by the end of the day.

The survey was comprised of 645 line kilometers of north-south-oriented flight lines at 300-meter line spacing. Key results include the fact that most responses are either at the very limit of, or significantly deeper than, the detection limits of historic surveys. Furthermore, targets include conductivity trends up to 1 kilometer long, with no previous drilling.

All in all, the company believes that the "overall nature of the anomalies highlights the potential for discovery of buried Voisey's Bay analogues at the Garland Property."

A significant neighbor

Garland is located about 30 kilometers southeast of Vale's (NYSE:VALE) Voisey's Bay mine in Labrador, Canada, so it's perhaps not surprising that Equitas is seeing possible similarities between the two.

It's also definitely not a bad thing that those potential likenesses exist. In its press release about acquiring Garland, Equitas states that Voisey's Bay began production back in 2005, and at that time was said to have reserves of 17.2 million tonnes of ore grading 2.38 percent nickel, 1.34 percent copper and 0.11 percent cobalt. Vale's Q1 2015 results show that the mine put out 13,500 tonnes of nickel during the period, up 6.6 percent from the preceding quarter.