Is the idea of ‘nearology’ just a myth or is there enough evidence to support the theory?

Nearology puts a spotlight on any explorer that holds ground near a huge, company-making mineral discovery.

It’s a strategy that often attracts investor attention, but is there any truth to it?

Earlier this month, E2 Metals’ (ASX:E2M) share price hit a 10-month highs after the explorer found super high-grade surface samples from a gold and silver project in Argentina.

It was located just 20km from the mammoth Cerro Vanguardia mine owned by AngloGold Ashanti.

But it doesn’t always pan out.

A group of miners and explorers searching for iron-oxide copper-gold deposits right next door to BHP’s big copper find in South Australia saw their share prices fly as nearology fever took hold.

In one day, the Aeris Resources (ASX:AIS) share price was up 27 per cent, and Argonaut Resources (ASX:ARE) and Cohiba(ASX:CHK) both got “please explain” notices from the ASX after their share prices jumped 41 per cent and 100 per cent, respectively, for what looked like no reason at all.

Read the full story about E2  plus, why some experts say nearology is a load of rubbish.