Rincon Resources Addresses ASX Price Query and Provides Drilling Updates
RINCON RESOURCES LIMITED (RCR) Share Update July 2024 Tuesday 30th
Rincon Resources Responds to ASX Price Query Amid Drilling Updates
Rincon Resources Limited (ASX: RCR) has responded to a price query from the Australian Securities Exchange (ASX) following significant trading activity and has provided updates on its drilling program at the West Arunta Project.
Instant Summary:
- Rincon Resources completed a drilling program at the West Arunta Project.
- Final assay results for all holes were received on 23 July 2024.
- RCR requested a trading halt to finalize and review the announcement.
- Increased investor interest due to potential niobium mineralization.
- Current drilling program is near completion with updates expected soon.
Background and Response to ASX Query
On 29 July 2024, Rincon Resources Limited (RCR) responded to a price query from the ASX regarding a notable change in the price and trading volume of its securities. The ASX noted a price drop from $0.105 to $0.075 and a significant increase in trading volume.
RCR confirmed that it was not aware of any undisclosed information that could explain the recent trading activity. However, the company highlighted that it had completed a drilling program at the West Arunta Project – Pokali prospect, with final assay results received on 23 July 2024.
Drilling Program and Assay Results
The completion of the reverse circulation and diamond drilling at the West Arunta Project was initially announced on 29 May 2024. The final assay results were subject to review, analysis, and quality assurance/quality control (QAQC) processes, which concluded on 26 July 2024. RCR was finalizing the announcement, including seeking an independent Competent Person review, at the time of the ASX price query.
RCR stated that it relied on Listing Rule 3.1A not to disclose the assay results before 29 July 2024 and requested a trading halt to finalize the announcement. The company emphasized that there was no reason to believe that the confidentiality of the assay results had been compromised.
Potential Reasons for Trading Activity
RCR provided several potential explanations for the recent trading activity. On 24 April 2024, the company announced the discovery of a new 'bullseye' gravity target, referred to as 'Avalon,' at the West Arunta Project. This target may represent a potential IOCG-style copper-gold system or a carbonatite-related niobium system, sparking significant investor interest.
Additionally, RCR commenced drilling at the Avalon target on 15 July 2024, which may have led investors to anticipate an update on the drilling progress. The current drilling program is near completion, with updates expected within the next 1-2 weeks and assay results anticipated from late September onwards.
Compliance and Authorization
RCR confirmed that it is complying with the ASX Listing Rules, particularly Listing Rule 3.1, and that its responses to the ASX's questions were authorized and approved under its continuous disclosure policy.
The response from Rincon Resources and the updates on the drilling program are likely to have a mixed impact on the company's stock. While the completion of the drilling program and the potential for niobium mineralization are positive developments, the recent price drop and increased trading volume may cause some investor uncertainty.
Investor Reaction:
Analysts may have mixed reactions to RCR's response and drilling updates. Some investors might be optimistic about the potential for niobium mineralization, while others may remain cautious due to the recent trading activity and price drop.
Conclusion:
Investors should monitor Rincon Resources' upcoming announcements regarding the drilling program and assay results. The company's strategic response and further updates will be crucial in maintaining investor confidence and assessing the long-term impact on their portfolios.