White Cliff Minerals Share Price Jumps with Newly Expanded Footprint
The share price of White Cliff Minerals Ltd [ASX:WCN] has made another upwards leap today thanks to news that the gold explorer has increased its footprint at the Reedy South Gold Project.
When we last covered WCN, the share price had climbed more than 35% in one day when the small-cap explorer released historical results from the project.
There’s good reason some investors are excited.
The Reedy South Gold Project is situated in the fabled Cue goldfields of Western Australia, close to Westgold Resources Ltd’s [ASX:WGX] 100–110,000 ounce per annum Cue Gold Operation.
At time of writing the WCN share price is up 13.79% to trade at 3.3 cents per share.
White Cliff Resources doubles down
In today’s announcement, WCN announced it has acquired the Cracker Jack gold project, which adjoins the Reedy South Gold Project.
The new 16km2 tenements were acquired for a consideration of $30,000.
The project is located ~10km south of the Reedy Gold Mine, owned by WGX, and has previous anomalous drilling results.
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Source: White Cliff Resources
According to WCN, gold mineralisation within the project area can be seen by numerous historical small prospecting pits.
Though the area remains largely underexplored, with the explorer set to commence a historical data review.
Historic drilling results conducted between 1993 and 2000 by St Barbara Ltd [ASX:SBM] and Gold Mines of Australia are currently under review.
Does this signal confidence in the area?
From its two latest tenement acquisitions, WCN appears to be betting on uncovering decent gold mineralisation around the Reedy Shear Zone.
In addition to the Cracker Jack acquisition, the explorer has also applied for a new license to further expand its footprint around the Reedy Shear Zone and the company’s Reedy South Gold Project.
Which would bring the total project size to 272km2.
Concurrently with the upcoming drilling program at the Reedy South Gold Project, WCN has commenced a detailed review of historical information covering the Cracker Jack project.
However, surface area does not always equal more gold.
When WCN released it maiden resource estimate last month the share price tanked.
The initial estimate returned 779,000 tonnes at 1.7 grams of gold per tonne for 42,400 ounces.
Judging from the share price action that day investors were expecting better.
However, as drilling is set to begin interest in the share price has begun to return.
Here at The Daily Reckoning Australia we closely follow the happenings of the Aussie gold miners and explorers. Our resident gold expert Shae Russell has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes in Aussie gold stock prices. If you want to learn more, download your free report here.
For The Daily Reckoning Australia