Why the Great Boulder (ASX:GBR) share price is plunging 15% today

Investors are having mixed reactions to Great Boulder shares today. Read on to find out more.

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plummeting gold share price

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The Great Boulder Resources Ltd (ASX: GBR) share price has slipped from its all-time high in recent days and now trades at 17.5 cents.

In fact, Great Boulder shares have been on a bumpy ride since we started walking through September, having climbed 105% in a matter of weeks.

Read on for more details.

A quick rundown on Great Boulder Resources

Great Boulder Resources is in the minerals exploration business, with particular niche expertise in nickel, copper, cobalt and gold resources in WA.

The company has its footprint located in Australia and derives all of its revenue from the local market.

At the time of writing, Great Boulder has a market capitalisation of $73 million.

Why is the Great Boulder share price down today?

In order to answer this question, we first have to take a step back and take a look at what led us here in the first place.

On 2 September, Great Boulder announced initial results from the third phase of its reverse circulation (RC) drilling program at its Mulga Bill prospect in WA.

The assay results revealed significant gold grades across 6 holes at the prospect, which are the highest grades ever recorded at the site.

Immediately the Great Boulder share price jumped 108% to 17.5 cents on the day of the announcement.

Since, shares in the mining exploration company have trended sideways, before making another jump on 23 September to reach all-time highs of 20.5 cents apiece.

As of today, the company released another announcement on its Mulga Bill prospect, noting it had found another gold mineralisation at the site.

Final results from the company’s RC drilling program at Mulga Bill “highlight the continuity of significant gold mineralisation on the eastern trend at (the site) over 400 metres in strike”.

Speaking on the results, Great Boulder’s managing director, Andrew Paterson said:

Infill RC drilling continues to define the high-grade zones in the central area of Mulga Bill. We have now completed a fourth round of RC drilling which is continuing to build our confidence in the high grade gold structures.

Investors appear to have wanted more milk from the cow in the Mulga Bill prospect, and have sold Great Boulder shares on the news.

It remains unclear exactly as to why investors are unhappy with the news, but the company did release a response to a query from the ASX regarding its share price and volume today as well. Perhaps this is weighing in some.

Currently, the Great Boulder share price is trading down 18% on the day, back towards its average September price level.

Great Boulder Resources share price snapshot

The Great Boulder share price has gained a mammoth 258% this year to date, extending its gains in the past 12 months to 243%.

Both of these results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% in the last year.

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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.

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