Newly-listed Strategic Minerals (LON:SML) saw its share price soar today as it advanced more than 83 per cent.
At one point in afternoon trade, the share price for the AIM-quoted iron ore junior stood at 12.88 pence - an 83.93 per cent increase on yesterday's close.
The firm's shares were admitted to AIM on Wednessday this week when the firm also revealed it had raised £750,000 in a placing.
The surge comes on the back of an announcement today saying the company, focused on Australia, was set to begin drilling at its flagship asset - the Iron Glen iron ore project in Queensland.
Drilling is expected to begin next week and two rigs are already on site, revealed the company.
The firm's aim is to find iron ore from the deposit that can be fed to China's steel markets.
The company's 100 percent subsidiary Iron Glen Ltd has a permit around 40km southwest of Townsville - known as Iron Glen - and the board believes a new iron production hub can be rapidly developed to serve the steel markets in Asia.
The permit covers 2,100 hectares and a licence for mineral exploration was granted in May 2007. The claim and surrounding area are located on a rich belt of deposits.
Strategic Minerals completed a first drill programm in October last year (11 holes) at the site which indicated an economical magnetite deposit and other minerals including silver, trace gold, copper, lead and zinc.
Chairman Steven Sanders told investors today that the firm's admission to AIM two days ago had given it a "robust" platform to continue its exploration.
"We look forward to announcing news on the progress of these exploratory drilling campaigns in the coming months," he had said.
The company also announced that applications had been filed to increase the firm's holdings next to the Iron Glen project and approval from the state government is expected within the next four months.
Historic production was carried out by the firm North Australian Cement Limited. The area covers a known area of magnetite, although, to date, the area has received only superficial investigation.
From 2007 to 2008 magnetic surveys were conducted by Terra Search Pty Limited on an initial area of the tenement covering 123 line kilometres. Geochemical surveys were then carried out by Terra Search between 2009 and 2010.
A team of geologists from Terra Search will now work alongside consultant geologists from I2M Associates LLC to monitor the on-going exploration and drilling activities, said Strategic Minerals today.