Up over 100% last week, down 30% today! What's going on with this ASX mining stock?

This mineral exploration company's shares have been on a rollercoaster ride in recent sessions.

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It has been an extremely volatile time for Rincon Resources Ltd (ASX: RCR) shares.

The small-cap ASX mining stock was on fire last week but is now dropping sharply lower.

Let's dig a little deeper into what has been happening with this mineral exploration company.

Why is this ASX mining stock bouncing around?

Last week, Rincon Resources shares rocketed 110% over the five sessions. This was despite there being no news out of the company for the first half of the week.

In fact, the gains were so strong on no news that the ASX mining stock received a price query from the Australian stock exchange.

When quizzed about its share price gain, it suggested the reason could be the following:

RCR refers to its announcement of 22 April 2024 titled "New Bullseye Gravity Target at West Arunta", which detailed the results of a completed gravity survey program at the Company's West Arunta Project in Western Australia. The gravity survey identified multiple new targets, including the Avalon 'Bullseye' Gravity Target'. Based on an ASX Announcement released by WA1 Resources Ltd (ASX: WA1) on the 7th March 2023, the size and geometry of the Avalon gravity anomaly is comparable to the WA1 Luni carbonatite which contains high grade Nb and REE mineralisation.

As a reminder, WA1 Resources Ltd (ASX: WA1) shares are up almost 500% since this time last year thanks to excitement around the Luni carbonatite.

Shortly after that, it announced the arrival of the reverse circulation (RC) drilling rig and the commencement of its initial 2,000 metres drilling program. This is testing "four very prospective targets, particularly the new Dune gravity target, which was recently enhanced and elevated in priority following the ground gravity survey completed last month."

What about today's decline?

The Rincon Resources share price is down 30% on Monday following the release of drilling results from the second Pokali diamond hole at West Arunta.

Management revealed that it has intersected multiple zones of moderate to intense magnetite alteration with quartz and sulphide mineral veining containing copper sulphide and other minerals.

The ASX mining stock's managing director, Gary Harvey, said:

Identification of magnetically altered core from hole 24WADD002 containing copper sulphide veinlets, native copper and visible gold confirms our long-standing belief in the highly anomalous historical copper, gold and related pathfinder element results from RC drilling and surface sampling at Pokali being related to a large IOCG mineral system. The preliminary observations from the diamond core also explains strong IP chargeability, gravity and magnetic anomalism at Pokali, providing a major leap forward in the understanding of Pokali for Rincon's West Arunta Project, which also has strong potential for REE plus niobium mineralisation.

Judging by the share price reaction, it seems that investors were expecting more from the small-cap ASX mining stock's drilling results. In addition, there could be some profit-taking happening today, locking in last week's mega gains.

Motley Fool contributor James Mickleboro 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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