Great Boulder points to 3rd party newsletter for trading spike; drill hits see sell-off

Great Boulder Resources (ASX:GBR) has responded to a please explain notice from the ASX received last week which essentially asked the company whether news of gold hits leaked early.

“Is GBR aware of any information … not announced to the market which, if known by some in the market, could explain the recent trading in its securities?,” the ASX put to GBR on Friday.

The company has pointed to a gold investors’ newsletter produced by one Brian Chu, founder of the Australian Gold Fund, released on Thursday 24 September.

All in all? That newsletter product reportedly included GBR as its free gold stock pick for investors. A cursory scan of HotCopper users’ comments on recent GBR posts might suggest a bit of a sentiment gap in between HC users and readers of the newsletter.

As for whether the company’s a leaky ship, GBR was more direct in dismissing that quasi-accusation on Tuesday.

“The Company … has received drill results from its Side Well Gold Project … results have not been made available to anyone outside the Company, and the Company maintains confidentiality of all assay results which are only seen by Company geologists,” GBR wrote.

At the same time, the company has announced drilling results on Tuesday alongside its response to the ASX letter; HotCopper does not intend to suggest an imputation of criminality.

The company’s Mulga Bull East target has now been grown to 1.5km as per the existing geological models informing resource estimates on-site; but a raft of intersections <5m appear to have failed to excite.

GBR shares were down over -7% in the second hour of trade down to 9.5cps; 1Y returns remain up over +25% for relatively long-term investors. Volumes were significantly higher than the 4wavg as at 11.15am AEST; 9.65M shares had traded hands versus a 4wavg of 2.44M.

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