When Will Red River Resources’ Share Price Turn Positive? (ASX:RVR)

When Will Red River Resources’ Share Price Turn Positive? (ASX:RVR)

The Red River Resources Ltd [ASX:RVR] share price is up slightly today on new drill results from its Hillgrove gold project in New South Wales.

Since the market crash, numerous gold stocks have gone on to climb well past their pre-COVID levels.

This has largely been fuelled by the historic gold price.

RVR is not one of those stocks.

Even though RVR is mere months away from becoming a fully fledged gold producer, its share price is still down ~3% on the past 12 months.

Today the market has been hesitant to react to its latest news.

RVR shares bounced up and down by half a cent this morning.

At the time of writing, the RVR share price is up 0.5 cents, or 3.57%, to trade at 14.5 cents per share.

ASX RVR Share Price Chart - Red River Resources

Source: TradingView


RVR’s share price struggles close to restart

If you missed our coverage of the De Grey Mining Ltd [ASX:DEG] share price, I suggest you give it a read (you can get it here).

Though these two gold stocks have little in common when it comes to operations and strategy, their share prices do share a similar story.

That is, they’ve both been met with resistance leading up to important milestones.

As we’ve also discussed with DEG, the share price may change very little regardless of how positive the news seems.

In cases like this, the market may have anticipated the results, thus already pricing it into the share price.

In my books, that’s what we could be seeing with the RVR share price today.

Without being too cynical, RVR’s announcement today could have easily read, ‘Gold explorer finds gold at gold mine’.

This is not to say the announcement is pointless — it isn’t.

It is actually quite positive.

Aussie gold miner stocks: Free report reveals why Australia is set to become the next ‘gold epicentre’ — which could result in a HUGE spike in Aussie gold stock prices. Click here to learn more.

But it changes very little at present.

With the first stage of the Hillgrove gold mine just months away, we may not see any significant move in the share price until then.

Unless there is a reasonable resource upgrade in the interim.

Gold visions

Today’s results have returned broad intervals of mineralisation with gold visible in some assays.

Highlights include:

  • 6 metres at 2.1 grams of gold per tonne (g/t) from 41.4 metres, including 4.0 metres at 4.0 g/t from 51.0 metres
  • 6 metres at 3.2 g/t from 62.4 metres, including 3.7 metres at 4.6 g/t from 63.7 metres

Though not overly significant, the results confirm the presence of high-grade gold in areas not historically mined.

According to RVR, these areas represent potential mining fronts close to surface and the existing Hillgrove processing plant.

With operations at Hillgrove set to kick off later this year, the current resource stands at 5.0 metres at 4.3 g/t for a total of 686,000 ounces of gold.

With the boom in Aussie gold stocks recently, Australia could surpass China as the undisputed global leader in gold exploration, mining and production.

Our gold expert, Shae Russell, breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.

Kind regards,

Lachlann Tierney,

For The Daily Reckoning Australia