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Province Resources (ASX:PRL) share price slides despite hitting next project milestone

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The Province Resources Ltd (ASX: PRL) share price left the market scratching its head after surging 450% from 2.5 cents to 14.5 cents on 17 February.

This was followed by significant profit-taking as its shares tanked almost 50% in value the next day to 7.5 cents. 

More than one month on, shares in the gold and nickel exploration company have found their way back up to record territory. Even though it’s down 9.6% at the time of writing, the Province share price is trading at 14.5 cents.

What did Province announce today?

In this morning’s release, Province advised that it had started collecting wind and solar data at its HyEnergy Zero Carbon Hydrogen Project. 

The HyEnergy project is in Western Australia’s Gascoyne Region and covers a flat-lying arid landscape. This region possesses significant solar and wind potential. The company previously noted that its annual mean wind speed of 25.5 km/h ranked it as the 4th windiest location in the state. The region also averages 211 sunny days per year, making it a very rich solar resource with low competing land use. 

The company said collecting wind and solar data involved the installation of a Fulcrum3D SODAR (sonic detection and ranging) weather monitoring station on site. This will assess the wind and solar resource potential for the area. 

Fulcrum3D’s flagship SODAR system is one of only 5 remote sensing instruments globally. The data collected will enable the proposed wind turbines and solar array network to be optimised before the final project scope and scale decision point. 

Words from management

Commenting on the progress, Province managing director David Frances said:

It is great to be able to hit the ground running on the exciting HyEnergy green hydrogen project, I look forward to progressing the feasibility studies as quickly as possible.

One of the company’s objectives over the next 12 to 18 months includes starting feasibility studies for renewable power generation and green hydrogen production. This will allow the company to build the foundations for a pilot trial of green hydrogen and green ammonia production. 

Despite the good news, the Province share price found itself 6.45% lower on Monday. Some of the weakness may be attributed to the sell-off in small-cap shares, with the ASX Small Ordinaries index down 0.85% this afternoon. 

Early days for Province Resources share price

Province is in its early days, having made the transformational acquisition just one month ago. 

The company believes that green hydrogen produced from renewable sources such as wind and solar energy looks set to play a significant role in navigating society towards a decarbonised future and meeting the global aim of net-zero emissions by 2050. 

The overall scope of the HyEnergy project is to generate 1 gigawatt of renewable energy for the large scale production of approximately 60,000 tonnes of green hydrogen or up to 3000,000 tonnes of green ammonia for domestic and export markets.

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Motley Fool contributor Kerry Sun 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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