VIDEO: Is ‘Nearology’ fact or fiction?
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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.