The Regis Resources Limited (ASX: RRL) share price is falling on Monday morning.
At the time of writing, the gold miner’s shares are down 2% to $2.09.
Why is the Regis Resources share price falling?
The fall by the Regis Resources share price on Monday appears to have been driven by weakness in the gold price offsetting an upbeat exploration update from the Duketon Belt and Albany Fraser Belt (Tropicana).
In respect to its update, according to the release, recent drilling activities have delivered strong results at Duketon and Tropicana.
Highlights from Duketon include exceptionally high-grade intervals at Rosemont, thick, high-grade intersections at Ben Hur, and further strong mineralisation at Garden Well. Management notes that the latter demonstrate the potential for establishing a new underground resource and potentially an additional underground production area.
As for Tropicana, management revealed that strong results at Boston Shaker continue to demonstrate down-plunge growth potential up to 200 metres below the current resource envelope and promising regional drilling has identified the prospective Tropicana mine geological sequence in areas previously not recognised.
Management commentary
Regis Resources’ Managing Director, Jim Beyer, was pleased with the results from the company’s drilling campaign.
He commented: “Our investment in organic growth continues to return positive results at both Duketon and Tropicana. This supports our view that these operations will have mine lives well in excess of the current reserves.”
“Regional exploration continues to advance early stage projects, showing the potential for further discoveries in the belts. Drill testing of target areas is identifying strong vectors to economic mineralisation and increasing the geological understanding in new highly prospective but poorly explored areas,” he added.
The Regis Resources share price has been out of form this year. The company’s shares are down 45% from $3.76 since the start of the year.
The post Regis Resources (ASX:RRL) share price falls despite upbeat exploration update appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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