Greenvale (ASX:GRV) share price slides 6% despite project update

Greenvale shares have slipped into the red during afternoon trade on Monday.

| More on:
Downward red arrow with business man sliding down it signifying falling asx share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Greenvale Mining Ltd (ASX: GRV) share price has slipped into the red on Monday.

Greenvale shares are trading down today despite the company making an announcement on its maiden drilling program in NT.

Let's investigate further.

A quick recap on Greenvale Mining

Greenvale Mining is an international energy company. It is in the business of exploiting oil shale deposits.

The company owns the Alpha oil shale deposit in Qld and the Georgina Basin IOCG project in NT.

At the time of writing, Greenvale has a market capitalisation of $170 million.

What did Greenvale announce?

Greenvale advised that it was "on track" to start its "maiden diamond drilling program" at its Georgina Basin Iron Oxide Copper Gold (IOCG) project" by around 15 September.

The project is located in Australia's "East Tennant district", which was recently labelled as "one of Australia's 'hot spots'" as per the release.

Greenvale also announced that all site preparations are complete, and the field team is now in place.

From its preliminary studies, Greenvale has obtained "encouraging preliminary results" which point to "large-scale" IOCG deposits in a zone known as the "twin peaks".

This twin peaks section will be targeted by Greenvale's "initial phase of drilling". As such, the company has also made significant investment in the specialised mine equipment for drilling and the exploration camp. These factors demonstrate the company's "commitment to being a long-term player in broader East Tennant area", as per the announcement.

In addition to these updates, Greenvale also announced it has an "initial four diamond holes" planned across "Eastern and Western targets" at the site.

This coincides with a "high-resolution 12,168–line kilometre airborne, radiometric and geophysical survey" which Greenvale plans to start in the next few weeks.

Investors haven't bought the news on Monday, and have pushed the Greenvale Mining share price lower on the day.

Greenvale shares are now changing hands at 40.5 cents apiece, an almost 6% drop from the open.

What did management say?

Commenting on the announcement, Greenvale's managing director, Neil Biddle said:

Our initial program will focus on the large-scale magnetic and gravity targets which we call the 'Twin Peaks'. The recently completed ground-based gravity program has helped us to refine these targets, which will be tested initially by four deep diamond holes commencing in the middle of this month.

Greenvale Mining share price snapshot

The Greenvale Mining share price has posted a year to date return of 212%. This extends the previous 12 month's mammoth gain of 820%.

Both of these results have far outpaced the S&P/ASX 200 index (ASX: XJO)'s return of 25% over the past year by a country mile.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Share Fallers

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today

These ASX shares are having a difficult session. But why?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Why are ASX lithium shares like Pilbara Minerals crashing on Tuesday?

Lithium stocks are getting another whack today.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Up 2,150% in a year, why is the Wildcat Resources share price crashing today?

Investors appear displeased with Wildcat's latest update on the Tabba Tabba project.

Read more »

Happy couple enjoying ice cream in retirement.
Share Fallers

2 classic ASX 200 shares you can buy for cheap now to hold for years

Experts reckon these well-known stocks are in a temporary dip that shrewd investors could take advantage of.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Cettire, Fletcher Building, Lake Resources, and Nick Scali shares are falling today

These ASX shares are having a tough time on Monday. But why?

Read more »

Businessman puts hand over eyes on a sinking boat in ocean
Materials Shares

Down 80% in a year why are Lake Resources shares tumbling again today?

ASX lithium stock Lake Resources is under selling pressure again on Monday.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Ampol, Calix, Collins Foods, and Propel shares are tumbling today

These ASX shares are ending the week in the red. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Australian Finance Group, Chalice, DroneShield, and ResMed are sinking today

These ASX shares are having a tough time on Thursday. But why?

Read more »