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The good news? Grades above 20g/t gold. What could perhaps be interpreted as, if not bad news, than less-than-compelling? It’s based on a single 8m intercept taken not from recent drilling but a review of historical data.
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It’s the kind of mineralisation discovery quite common on the junior explorer side of the ASX lately, and by reviewing data someone else collected, it’s an easy way for companies to get the market’s attention without spending much.
But it works, perhaps a surprising amount of the time – and that’s evident in the share price of ~$10M market cap company Bubalus Resources (ASX:BUS) on Wednesday, which reported the above and saw shares jump just over +30% in morning trades. This is, above all else, a show of conviction in risk-tolerant investors who have woken up to the fact the exploration sector feels like ‘it’s back’ – which is possibly further supported by the fact Invictus shares are currently over 20cps.
Looking closer at Bubalus’s Wednesday disclosure, there are other factors at play outside the 8m intercept at nearly 24g/t gold – even if the company added in its release “as Bubalus has not independently validated the historical Mineral Resources and Exploration Targets… [they are] not to be regarded as reporting, adopting or endorsing these Mineral Resources and Exploration Targets.”
The company’s Wilson’s Hill project was described as ‘structurally similar’ to the Bendigo Goldfield, and perhaps of most interest is Wilson’s Hill displays the same kind of geological faulting present in that latter region, which can be the ideal place for gold deposits to become ‘trapped’ over geological time.
Bubalus also cited previous drilling by private Western Mining Corporation, which it reported identified a “new saddle-reef style horizon at 250m depth.”
“Planning [is] underway for exploration programs to further evaluate the potential of the Project,” the company added.
BUS last traded at 15cps.
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