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Prosperity Resources' Shares Up 78% Following Potential Acceleration Of Aceh Open Pit Development

Prosperity Resources (ASX: PSP) has come onto investors' radars recently with a 78% jump in share price to an intra-day high of A$0.064, up from $0.036 a day earlier, prompting the ASX to issue a price and volume query.

The share price rose on the exchange of 18.4 million shares by 2.25pm (AEST) today.

Prosperity responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.

However, the company did say it has been advised that one of its shareholders is transferring their holdings, and expects that this will account for the majority of today's trading volumes.

Prosperity is likely to be closely watched by investors as it works to fast track the development of open pit operations at the Aceh Gold Copper Project in Indonesia, with the recent signing of a breakthrough agreement with local partners.

The agreement ensures the involvement of a strong local partner, Atjeh Investment Consultancy, in developing the project, which is essential to the advancement of mineral projects in the country.

As a result of this agreement, Prosperity will spin out the Aceh open pit operations, including beneficiation and exports, to list on a regional stock exchange.

The spin out is expected to unlock shareholder value in the project, securing open access to all project areas and allowing for development to be expedited.

Prosperity is taking a two-pronged approach to developing the Aceh project, which covers 41,000 hectares of unexplored but highly prospective mineralised belt, along the coast of Southern Aceh.

In the short to medium term, the company is targeting open pit mining accessing the shallower "oxide cap" gold associated with the identified Skarns, in order to generate early cash flow.

In the longer term, Prosperity aims to delineate a number of copper gold porphyry systems below these oxide caps.

Importantly, the deal with Atjeh only covers the shallow material, up to 50 metres depth, at Aceh.

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