Great Boulder Resources Share Price Higher on 3.7km Extension
Junior gold and base metals explorer Great Boulder Resources Ltd [ASX:GBR] announced it has extended its Side Well gold project in WA to 3.7 kilometres today, pushing its share price higher.
The explorer’s primary focus is on the exploration, discovery and delineation of nickel-copper-cobalt and gold resources within the Eastern Goldfields region of WA.
The GBR share price has struggled over the past 12 months — a time when many gold explorers experienced big growth in share prices.
GBR shares skyrocketed in early October upon drilling commencing at the Whiteheads Gold Project, but has since given back most of those gains.
At time of writing the GBR share price is 1.92% higher to trade at 5.3 cents per share.
Is GBR’s progress going unnoticed?
GBR announced today that gold has now been identified over more than 3.7 kilometres of strike, and mineralisation remains open to the north and south at its Side Well gold project.
Its latest results extend the Mulga Bill prospect by 650 metres to the south, highlights include:
- 6m at 2.04 grams of gold per tonne (g/t) from 81m
- 4m 2.33g/t from 44m
- 7m 1.13g/t from 80m
Not a bad result, but it’s where the project is situated that is probably of the most interest.
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Side Well is adjacent to Westgold Resources Ltd’s [ASX:WGX] Murchison Gold operations and south of Silver Lake Resources Ltd’s [ASX:SLR] Andy Well gold mine.
In total the area has produced nearly four million ounces of gold, with over 2.7 million ounces remaining in current resources.
Source: Great Boulder Resources
Although today’s announcement is a nice little addition to the project overall, it’s not ground-breaking stuff.
But, given the scope of Side Well, is the current share price a fair reflection of GBR’s potential?
If you ask GBR, I’d bet they’d say no.
GBR’s Managing Director Andrew Paterson said:
‘Our exploration program at Side Well is progressing nicely, with these excellent air-core results at Mulga Bill plus the auger anomalies in a new prospect to the east. The Great Boulder technical team believes that this eastern target has significant potential.’
What’s a fair outlook for GBR?
GBR listed on the ASX in late 2016, with its share price peaking around 40 cents per share in 2018.
In mineral exploration, the share price of a company can sometimes drop off and lay dormant during what is called the orphan period.
This is a period when excitement over a project has died off and investors are waiting for more tangible signs that the project will reach development.
GBR bills Side Well as an advanced exploration project, so in my opinion once we begin to get signs development could occur we might see more action in the share price.
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For The Daily Reckoning Australia