Rumble Resources (ASX:RTR) share price slides 13% on project updates

Today was a disappointing day on the ASX for Rumble Resources.

The Rumble Resources Ltd (ASX: RTR) share price has had a disappointing day after the company released assay results from its 75%-owned Earaheedy Project's Chinook zinc-lead discovery.

While the news looks positive, the market sent the metal exploration company's stock tumbling lower.

As at Monday's close, the Rumble Resources share price was trading at 49 cents, 13.27% lower than at end of the Friday's session.

Let's take a closer look at what Rumble Resources announced today.

A sad Carnaby Resources miner holds his head in his hands

Image source: Getty Images

New discoveries at Chinook

The Rumble Resources share price has plunged lower on news the company has extended Chinook discovery's mineralisation envelope by 44% to 4.1km by 1.9km. Additionally, the mineralisation remains open in all directions.

The company noted it found zinc and lead in several drill holes within 50 metres of the main tenement boundary.

The other side of the boundary houses Rumble's pending application. The company imagines the strike extends into the tenement under application, which hosts the Sweetwater zinc-lead prospect.

Rumble Resources also reported gold in the assay results.

Furthermore, the company has found silver at the project for the first time. It identified a silver zone with associated copper and arsenic underneath the zinc-lead-gold mineralisation.

What did management say?

Commenting on the news, Rumble Resources managing director Shane Sikora said:

Based on the drilling results to date, field observations and our developing understanding of the geology of this potential tier 1 sediment hosted zinc-lead system, it is becoming very clear there is potential to delineate multiple shallow, flat lying open pittable zinc-lead deposits throughout the 45 kilometres of strike at Earaheedy.

So far, the company has only received results from around 25% of the completed drilling. The drilling program is ongoing.

Rumble Resources share price snapshot

Despite today's dip, the company's shares are trading 308% higher than they were at the start of 2021.

The Rumble Resources share price has also gained 206% since this time last year.

Motley Fool contributor Brooke Cooper has no position 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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