Shares for Tao Commodities Ltd [ASX:TAO] have spiked 102.5% today. At time of writing, TAO’s share price was trading at $0.081, up from $0.04 the day before.
TAO is a metals exploration company with a market cap of $1.26 million.
The company has their headquarters in Western Australia, and holds a 100% interest in the Milford Base Metals Project in Utah, US. The project is located 6km west from Milford, in the Beaver County, with access to gravel roads and a railroad.
Why did Tao shares spike higher?
Tao announced the results for their initial rock sampling in their Milford Project. The goal of the project at this early stage was to test the potential for gold at two priority areas in the project.
Tao collected a total of 27 rock samples in two areas: Moccasin and Captain Jack. You can see both locations in the diagram below:
Source: Tao Commodities
According to the company, the tests returned high grade results.
For the Captain Jack area, the sample returned 17.4 grams per tonne in gold, 1.71% copper and 8760 grams per tonne in silver. Moccasin yielded also ‘significant’ results of 4.03 g/t Au, 1.98% Cu and 1560 g/t Ag.
The program also included the collection of 209 soil geochemical samples at Captain Jack (600m by 900m) and Moccasin (700m by 700m). These samples are now at the lab, and the company expects the results in the next weeks.
What could happen next?
While the share price has jumped over 100%, it’s still trading lower than at the beginning of the year, when the share price was at around $0.10.
It’s likely due to the fact that investors have concerns on if the company has enough cash to keep going with no profits to show for it.
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