Why the Rumble Resources (ASX:RTR) share price fell today

The Rumble Resources share price fell lower today as the company announced new drilling results. We take a closer look.

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The Rumble Resources Ltd (ASX: RTR) share price collapsed today as the company announced a drill expansion. Shares in the company are currently dropping 4.76% lower to a price of 10 cents.

The company is an Australian based mineral explorer that is focusing on gold, silver, and copper.

What Happened

Following today’s announcement of drilling results from its Munarra Gully project in Cue, Western Australia, the Rumble Resources share price is falling.

The results came from the most recent round of reconnaissance drilling, comprised of 20 drill holes. It was designed to extend the amount of mineralisation along the northern edge of the company’s mine. Rumble Resources tested a very broad area in order to maximise its findings.

The company found multiple gold intersections across a 200m wide zone that included:

  • 8m @ 1.06 g/t Au from 80m
  • 4m @ 4.02 g/t Au from 112m
  • 8m @ 0.7 g/t Au from 64m
  • 4m @ 3.39 g/t Au from 119m

It is worth noting that over 15km of the Amaryllis shear zone remains untested.

Moreover, in regards to the company’s copper exploits the drilling returned some positive results. Copper was found within 109 metres of the surface at strong mineralisation.

Management also outlined the promising nature of the finds and their close characteristics with a known large scale gold/copper mine. As such, the report states:

The style of mineralisation has very similar characteristics to known large scale Chibougamau Au-Cu shear vein type deposits located in the eastern part of the Archaean Abitibi Greenstone Belt in Quebec, Canada.

Rumble has now advanced the geological model to aid in predicting potential deposits along the Amaryllis Shear Zone.

About the Rumble Resources share price

Following the initial positive results, the company will now aim to complete a downhole TEM survey. This is to affirm if there is a conductive response from the known mineralisation in order to test the quality of materials.
Moreover, there will also be follow up drilling occurring targeting higher mineralisation. The drilling will hopefully provide increased structural information to the company.
So far this year, the Rumble Resources share price has performed poorly. Despite a stream of recent results, the company has fallen 16.67% since the start of the year.

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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