The Resources & Energy Group Ltd (ASX: REZ) share price has dropped more than 7% so far today, after pumping 21.28% higher yesterday on the back of a positive drilling announcement at one of its prospects.
At the time of writing, the Resources & Energy Group share price is sitting at 5.3 cents per share
‘Significant’ gold system confirmed at Gigante Grande
Yesterday morning, the company announced the success of its November 2020 drilling program at its Gigante Grande prospect in Western Australia. Commenting on the results, Resources & Energy Group stated:
The results confirm that Gigante Grande prospect, on the eastern side of the East Menzies Gold field project, is a significant and large gold mineralised system. REZ will continue exploration with a view to expand the prospect and advance towards resource generation.
Among additional highlights, Resources & Energy Group acknowledged over 70 significant intersections of gold mineralisation to date and commencement of the third drill program at Gigante Grande.
Looking forward, a total of 14 holes are planned for the January 2021 program. The program will focus on a combination of shallow and deep holes between the Moriarty Shear Zone and the Gigante Granodiorite.
The current resource estimate totals are 129,000 ounces of gold and 862,000 ounces of sliver.
The Resources & Energy Group project portfolio
Resources & Energy Group has projects in Western Australia and Queensland. The company’s East Menzies Gold Project is located 137 kilometres north of Kalgoorlie Western Australia. The project covers 90 kilometres squared and consists of three mining leases, 28 prospecting leases, one exploration lease and 14 prospecting lease applications.
Located 250 kilometres north/west of Rockhampton, Queensland is the Mount Mackenzie Gold/Silver Project with an estimated 100,000 ounces of gold at a grade of around 1.3 grams/tonne. The company owns two parcels of land within the mining leases for the site.
The company was formed in 2005 and has operated as a gold exploration and development company since 2015.
Resources & Energy Group share price snapshot
Over the past 12 months, the Resources & Energy Group share price has boomed over 200%.
That said, the company also experienced some massive dives during the period. Like back in November 2020 when they released disappointing drilling results.
The Resources & Energy share price has been particularly volatile over the past three months, reaching 11 cents at its higher point for the period and slumping to 3 cents at the lowest.