Red River Resources’ Share Price Up as it Moves Closer to Production
The share price of soon to be gold producer Red River Resources Ltd [ASX:RVR] is up slightly today on results from its maiden diamond drilling program at its Hillgrove Gold Project in New South Wales.
When we last covered RVR in late August, the share price looked like it was stalling as the gold price went into correction.
Though higher today, RVR’s share price looks to be finding a lower level.
At the time of writing, shares are higher by one cent or 8% to trade at 13.5 cents per share.
As I’ve said in the past, RVR has unique value and differs a bit from its other gold exploring peers.
But just months out from beginning gold production, where could the share price be headed?
Today’s drilling results are from RVR’s maiden diamond drilling program targeting the Eleanora Lode, located just 200 metres from the Hillgrove processing plant.
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn More Here.
Some of the highlights from today’s results include:
- Seven metres at 2.2 grams of gold per tonne (g/t) and 0.3% antimony (Sb) from 119 metres, including 2.4 metres at 5.2 g/t and 0.9% Sb from 123.6 metres
- 5 metres at 4.1 g/t and 0.6% Sb from 141 metres, including 1.75 metres at 15.6 g/t and 2.7% Sb from 143.8 metres
- 45 metres at 32.3 g/t and 6.9% Sb from 144.4 metres (contained visible gold)
- Eight metres at 2.7 g/t from 45 metres, including five metres at 3.8 g/t from 48 metres down
Essentially, these results confirm the presence of high-grade gold-antimony within the Eleanora vein system and adjacent structures of low- to medium-grade gold mineralisation.
Antimony is lustrous grey metalloid that is commonly used in alloys and in flame retardants.
Source: Red River Resources
RVR said this demonstrates there is still a significant remnant resource present, which it will continue to pursue.
What does this mean for RVR’s share price?
Today’s results seem to have RVR’s share price moving in the right direction again — for now at least.
However, the Eleanora Lode won’t be targeted for mining until sometime next year.
Meaning RVR has time to grow the resource and upgrade its JORC 2012 estimate.
As for the share price, the direction is a little hard to pick right now.
And with this week’s downward momentum in the gold price still lingering, I wouldn’t be confident in tipping the share price action to go either way.
RVR has also started drilling at Curry’s Lode, with first results expected within weeks.
This will tell us more about the remaining resource on the tenements.
With the gold price looking a bit depressed currently, now could be a good time to reconsider the shiny metal. Our resident gold expert, Shae Russell, has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes ahead in Aussie gold stock prices. If you want to learn more, download your free report here.
For The Daily Reckoning Australia