Why the Rumble Resources (ASX:RTR) share price is surging 28% today

The Rumble Resources (ASX: RTR) share price is surging today as the company starts drilling at its Earaheedy mine in WA.
The post Why the Rumble Resources (ASX:RTR) share price is surging 28% today appeared first on The Motley Fool Australia. –

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The Rumble Resources Ltd (ASX: RTR) share price is surging today as the company starts drilling at its Earaheedy Zinc-Lead-Silver Project.

The Rumble Resources share price is up 28.5% at the time of writing, trading at $13.50 per share. 

Rumble Resources is a Perth-based mining company, focused on the acquisition, exploration and evaluation of base and precious metal projects. It’s currently exploring zinc, lead and silver deposits in Earaheedy, near Lake Carnegie in Western Australia.

Rumble Resources’ Earaheedy mine kicks off

Rumble Resources began reverse circulation (RC) drilling at its Earaheedy mine nearly one week ago today and its share price has been booming since. It’s targeting large tonnage, flat lying, near surface (open-pittable) sandstone-hosted zinc and lead deposits.

Shallow, open-pit mining generally produces the highest-grade results. Rumble Resources will know just how lucrative its current venture is in another two weeks’ time, when its current drilling program is scheduled for completion.

The drilling results will then be sent for assays (studies) and a more accurate lead, silver and zinc content of the mine will be known.

Rumble own 75% of the project area and 100% of the exploration licence. Initial exploration in Earaheedy has shown promising results over the mine’s two major prospects, called Chinook and Magazine.

Shallow drilling and high grade hopes

The Chinook exploration shows “significant” shallow zinc and lead deposits over 200 metres horizontal width and up to 12 metres vertical true thickness. Rumble says the prospect shows “a strong association” with higher-grade zinc and lead mineralisation.

Its results indicate a potential sandstone channel and facies zone, which is conducive to developing higher-grade zinc and lead minerals due to favorable porosity and litho-geochemical conditions. This is partly why speculative investors are already sending the Rumble Resources share price surging.

The company’s Magazine prospect is similar. Rumble says it has intercepted shallow flat lying higher-grade zinc and lead mineralisation in two holes, which highlights the potential for significant sandstone hosted channels and facies zones. 

Rumble’s exploration target is between 40 to 100 million tonnes at a grade ranging between 3.5% zinc and lead, to 4.5%. It’s operating at a shallow depth of 80 metres, and more than 40 kilometres of open prospective strike has been defined.

Rumble Resources share price snapshot

The Rumble Resources share price is one of today’s biggest movers and its also up 28% this week, 35% this month and 17% this calendar year. Its returned 114% this past year, up 64% against the basic materials sector.

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The post Why the Rumble Resources (ASX:RTR) share price is surging 28% today appeared first on The Motley Fool Australia.

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