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.

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The Wildcat Resources Ltd (ASX: WC8) share price crashed by 19% shortly after the market open on Tuesday.

This follows the release of drilling results at the flagship Tabba Tabba lithium project in Western Australia.

The Wildcat Resources share price is currently 68 cents, down 12.65%.

The stock hit an intraday low of 63 cents shortly after the opening bell, representing an 18.7% spiral from yesterday's closing value of 77.5 cents.

Investors appear to be displeased with the latest update, but it's worth keeping in mind that despite today's fall the ASX lithium share is still up 2,150% over the past 12 months.

Perhaps today's price drop is a case of exuberant investors' expectations being a bit too high.

Let's check out the details of this update.

Miner and company person analysing results of a mining company.

Image source: Getty Images

Wildcat Resources share price crashes 19% on mine update

Wildcat reported results from its 100,000m drill program at Tabba Tabba today.

The latest results are from the Leia pegmatite, including:

  • 119.2m at 1.0% Li2O from 334.3m (TADD010) (estimated true width) including 31m at 1.7% Li2O from 336.0m and 34.5m at 1.2% from 418.5m
  • 62.3m at 1.0% Li2O from 223.2 (TARC162D) (est. true width)
  • 83.4m at 0.8% Li2O from 314.2m (TARC242D) (est. true width) including 22.7m at 1.4% Li2O from 262.4m
  • 84.6m at 0.7% Li2O from 238m (TARC239D) (est. true width) including 9.6m at 1.7% Li2O from 308.4m

Wildcat estimates that the Leia pegmatite is more than 2.2km long with mineralisation extending from the surface to significant depths. The thickest intercept to date is 180m at 1.1% Li2O.

Over the past two months, Wildcat said it has also completed a high-resolution ground gravity and magnetic survey, drone aerial imagery, and a detailed geological map of the tenement package.

What's next at Tabba Tabba?

Wildcat said results are still pending for 27 holes and 3,294 samples.

Meantime, drilling is underway at the Hutt and Han pegmatites to follow up on last year's discovery.

The miner is funded to complete the 100,000m drilling program at Tabba Tabba this year.

Wildcat Resources share price history

Wildcat might be a relatively new name to many investors after gaining attention during the 2022 and 2023 lithium boom. But the company has actually been listed on the ASX since 2005.

The Wildcat Resources share price really exploded in 2023, as the graph below shows.

The stock hit a 15-year high of $1.01 in November following the release of assay results from Tabba Tabba.

The miner completed its acquisition of the project in October.

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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