The Volt Resources Ltd Share Price Gets a 25% Boost (ASX:VRC)
The Volt Resources Ltd [ASX:VRC] share price is up 25% today. At time of writing, VRC shares were trading at 2.5 cents, up from two cents the day before.
Volt Resources is a natural graphite exploration and development company listed on the ASX. Their main focus is their Bunyu Graphite Project in Tanzania.
Back in mid-May, the company announced it was getting into gold mining by acquiring Gold Republic, a gold company based in Guinea, Africa. You can read the details here.
Only a few days later, the company revealed it had also entered into a binding term sheet to acquire Luiri Hills Gold Project in Zambia. Luiri Hills Gold Project is an advanced gold project located approximately 120km northwest of Lusaka, Zambia’s capital.
Volt agreed to take an 85% stake in exchange for $4 million.
As you can see below, shares went wild after both pieces of news. So far, Volt’s shares have increased by 127% since the beginning of the year.
What happened today for VRC?
The company announced the mineral resource estimate for Luiri Hill Gold Project: 10.2 million tonnes at 2.6 grams per tonne for 851,000 ounces of gold.
Volt’s Managing Director, Trevor Matthews, had this to say:
‘This is a significant step forward for Volt’s gold business strategy with this updated Mineral Resource estimate confirming Luiri Hills as a quality gold project with outstanding economic potential.
‘Combined with the numerous gold bearing stockpiles and local exploration potential, the Mineral Resource estimate provides the platform for early gold production based on the significant amount of study work already conducted for the Luiri Hill Gold Project.’
With a total area of close to 32km squared, the Luiri Hill Gold project has a large-scale exploration licence and a mineral-processing licence.
What will happen next?
The company plans to continue developing its Bunyu Graphite Project in Tanzania at the same time it progresses its new gold business.
For the Luiri Hill Gold Project agreement to be finalised, Volt needs satisfactory competition of due diligence and the approval of shareholders. The shareholder meeting is scheduled for 20 July.
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