Marquee Resources Ltd (ASX:MQR) shares hit a high of $0.44 yesterday in intraday trading representing an increase of nearly 80% on the previous day’s close of $0.25.
While they closed at $0.36 this still represented a gain of 44% driven by news that it intended to acquire three Canadian exploration projects prospective for cobalt.
Subject to due diligence, the three assets which are being acquired by way of a share purchase agreement are Werner Lake, Werner Lake East/West and Skeleton Lake.
The Werner Lake property is located within the Kenora Mining District, 85 kilometres from Ontario.
Prior mining history featuring impressive grades bodes well for exploration program
This property was mined in the 1940's, producing 143,386 pounds of cobalt grading circa 2.2%.
While Canmine Resources carried out extensive exploration and development work between 1995 and 2002, a JORC 2012 resource wasn’t established.
Marquee Resources plans to use previous exploration data to assist in developing a diamond drilling program which should include at least 13 holes over 3500 metres.
Profit taking evident after rerating
Marquee Resources shares fell circa 17% to hit a low of $0.30 in mid-morning trading on Wednesday, seemingly the impact of profit-taking following the previous day's strong run.