The Greenvale (ASX:GRV) share price rose 13% today. Here's why

The Greenvale share price is up another 12.9% today as investors continue to back its Georgina Basin Project in the Northern Territory.

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The Greenvale Mining Ltd (ASX: GRV) share price shot up again today as investors continued to back its Georgina Basin Project in the Northern Territory.

The Greenvale share price has risen 12.9% to close at 17.5 cents per share today.

Greenvale is an international energy company focused on the discovery and exploitation of oil shale deposits. The company owns a 99.99% interest in the Alpha oil shale deposit located in Queensland, Australia and, more recently, 100% of the Georgina Basin IOCG Project in the NT. 

Project backed by Geoscience Australia

The Greenvale share price has now risen more than 34% since early March, when the company announced the initial drilling results of its Georgina Basin project enhanced the "prospectivity" of the mine. 

The Australian Government undertook the drilling through its National Drilling Initiative (NDI) program conducted with Geoscience Australia.

"This shows that the East Tennant area is an exciting frontier area for mineral exploration in Australia," said Dr Andrew Heap, the Minerals, Energy and Groundwater Division chief at Geoscience Australia. This government-backed interest in the area has continued to drive up the Greenvale share price. 

Drilling results

The NDI said its preliminary data released from 10 deep diamond holes drilled across the Barkly Tableland, east of Tennant Creek, showed that "the area is set to become one of Australia's most exciting exploration frontiers".

The holes contain mineralogical and geochemical evidence of large-scale gold- and copper-rich mineral deposits. Greenvale's exploration team is currently reviewing the results and will combine this information with data from a recently completed airborne geophysical survey. 

Greenvale says the geology intersected by the drill holes has confirmed the presence of rocks of the right age to host large-scale copper and gold deposits. The company has yet to release the results of those surveys. However, it has since passed resolutions for executive pay increases and incentive-based performance rights.

What Greenvale management said

Greenvale managing director Neil Biddle said the government's initial program had unlocked the potential of the region.

Having high-quality stratigraphic diamond drill holes completed by the government to unlock the potential of this exciting frontier mineral province is a huge leg-up for companies exploring in this area.

The preliminary results of the drilling, based on the photos of the core I have seen are absolutely outstanding and have provided a massive injection of confidence into the district. The holes have provided clear evidence that we are well and truly in the right area to unlock an entirely new generation of IOCG (iron-oxide copper gold) deposits in Australia.

Greenvale share price snapshot

The Greenvale share price is up 34% year-to-date. Its return of more than 1,700% over the past 12 months has beaten both the basic materials sector and the S&P/ASX 200 Index (ASX: XJO) by more than 1,670%.

Motley Fool contributor Lucas Radbourne-Pugh 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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