Why the Golden Mile Resources Ltd share price is going gangbusters  

The Golden Mile Resources Ltd (ASX: G88) share price is up 42% today and 581% over the past month after the nickel miner boasted of positive drilling results at its Western Australian Quicksilver nickel-cobalt-scandium project.

In total the company that was only formed in 2016 now has two nickel tenements in WA and a number of gold mining projects near Leonora. The mining explorer did not provide any guidance as to the kind of cash flows these deposits could generate if commercialised, although that does not appear to have put off speculators sending the share price up to 60% higher today.

Golden Mile currently has 51.83 million shares on issue (alongside 8.5 million unlisted options) and with shares changing hands for $1 it now boasts an on-market cap more than $50 million.

For the quarter ending September 30 2017 it generated nothing in the way of revenues and spent $374,000 on staff, admin and exploration costs. For the quarter ending December 31 2017 it’s forecasting cash outflows of $511,000. It currently has cash on hand of $3.8 million, which it’ll need to ramp up its mining activities.

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Motley Fool contributor Tom Richardson has no financial interest in any company mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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