Right Resources (ASX:RRE) has opened Thursday morning some -50% weaker in market value, despite telling shareholders it’s “highly encouraged” by the results it has hauled in at the undrilled Pilot Project in New South Wales.
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All that’s well and good for Right to flag, of course, but – it’s a “duster, by all accounts,” according to HotCopper users already looking to get out.
You, dear reader, be the judge, with these results: The first hole reached a total depth of 699.4 metres, intersecting a primary porphyry storkwork target at 338 metres and returning 42 metres at 0.2g/t gold. Drilling also identified the “Western Target Zone,” a new corridor of quartz-sulphide veins.
Beyond that, Right pointed out hole two, drilled as a 220-metre step-out to the south to test system continuity, saw an extension of the primary target, a second Western Target Zone intersection, and the rediscovery of unrecorded 19th-century workings. All this was from visual logging, not testing.
It’s all interesting, to be sure, but the Oz market didn’t like things at all. By 10:30am Sydney time, just half-an-hour post-open, Right had plummeted to 17cps – a dive that wiped as much as $15 million from its market cap.
Right’s bosses stay positive, though, saying they’re “highly encouraged.”
“These first drill results at Pilot… represent a genuine greenfields discovery of a large-scale mineralised system,” managing director Graham Howard said.
“The two holes show strong geological similarities to the shallow, early-stage drilling at major porphyry systems such as Cadia Ridgeway and Boda, with a side-by-side comparison included in this announcement.”
At time of writing, RRE is sitting at 17c/ea.
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