Volt Resources Share Price Charges up on Exploration Update (ASX:VRC)
Africa focused graphite come gold explorer Volt Resources Ltd [ASX:VRC] has watched its share price climb today with drilling set to kick off at its Guinea-based gold projects.
Since we last visited the VRC share price, the explorer has been on a steady decline.
After reaching its 52-week high in late July, VRC’s shares have shed ~63% as enthusiasm for the explorer’s projects waned.
VRC has lacked in good news over the past few months, most notably when the company backed out of acquiring a gold project in Zambia, shedding around 23% in one day.
At time of writing VRC shares are up 11.11% to trade at 1-cent per share.
Can Guinea project lift the share price?
VRC today provided an update on its Guinea gold projects.
The explorer said its exploration team had mobilised the site to prepare for the upcoming drilling programs for the Kouroussa, Nzima and Konsolon permits.
With tracks currently being created to provide access to site, VRC said it expects drilling to commence next month.
So, why is the market reacting positively so seemingly trivial news?
Due to the speculative nature of small-cap gold stocks, share price action can often occur in anticipation of further results.
VRC plans on drilling 759 holes for a total of 11,385 metres across all three permits, which is no small task.
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Moreover, it should give us a pretty good idea about the geology at its projects.
Previously announced assay results from these permits include:
- Konsolon — 20.25 grams per tonne of gold (g/t), 12.87g/t, 5.12g/t, 4.97g/t and 3.21g/t from soil samples
- Nzima — 14.5 g/t, 2.93 g/t, 1.54 g/t & 0.86 g/t from grab samples
- Kouroussa — 1.02 g/t, 0.77 g/t, 0.46 g/t from grab samples
Could this spell a return in share price for Volt Resources?
It has been slow going for VRC and though they’ve had some disappointing results, we’ve seen little information relating to their geological prospects, in my opinion at least.
Which is why we have seen this steady decline in share price.
However, when drilling finally commences and results begin to roll in, I think we’ll see some meaningful share price action.
That doesn’t mean the share price will begin to track upwards — the results might be horrible — but at least we’ll have something to go off.
If you’re looking to get into gold, one way to get exposure is to buy stocks like VRC. However, these types of stocks are inherently risky. Another is to buy physical gold. For a step-by-step guide on how to buy physical gold, you can check out Shae Russell’s ‘Best Way to Buy, Sell, and Store Gold’ here for free.
For The Daily Reckoning Australia