Almonty Industries Inc (TSX:AII, OTCQX:ALMTF, ETR:ALI) shares jumped 13% Tuesday after the tungsten producer launched a large-scale drilling program at its Sangdong Molybdenum Project in South Korea.
The campaign aims to confirm mineral reserves ahead of possible production, potentially positioning the company as a key supplier of a strategic metal increasingly in demand.
Molybdenum, when added to steel and specialty alloys, improves heat and corrosion resistance, qualities prized in defense, aerospace, nuclear energy, and petrochemicals.
Demand has also been rising in newer industries such as semiconductors and renewable energy. Prices have climbed about 15% this year to nearly $26 per pound, according to Fastmarkets.
Almonty plans to drill 26 holes, covering roughly 11,700 meters underground, to re-evaluate mineralised structures identified in earlier work.
The stock was up 92 cents at C$8.22 in early afternoon trading.