Why has the Rumble Resources (ASX:RTR) share price rallied 25% in a week?

Key points

• The Rumble Resources share price is up more than 25% in the past week
• It follows further mineral discoveries at the company’s Western Australian sites
• The Rumble Resources share price has jumped more than 200% in the past year

The Rumble Resources Ltd (ASX: RTR) share price has had an impressive week, gaining more than 25%.

During that time, the miner has delivered a wealth of news — including a discovery at its Western Australia project and a trading halt before the release of its activities report for the latest quarter.

Today, the Rumble Resources share price closed at 47 cents, a rise of 4.44% on the day.

So what’s been behind the recent performance of the Australian-based miner and exploration company. Let’s dive straight in.

Discovery at project

On Monday, Rumble Resources announced it had intercepted “high-grade sulphide mineralisation” within its Earaheedy Project, around 110km northeast of Wiluna, Western Australia.

The Earaheedy prospect is Rumble Resources’ most prominent. The company is working to extract zinc-lead-sulphide from the “world-class” site.

The recent discovery of zinc and lead (Zn-Pb) was made at the Kalitan Feeder Zone within the Chinook Zn-Pb-Ag-Cu Prospect of the site.

A drill hole has returned 51m @ 4.76% Zn + Pb, 5.81 grams per tonne (g/t) Ag from 82m.

Further, this measurement includes 20m @ 8.78% Zn + Pb, 11.65 (g/t) Ag from 98m (and 8m @ 14.61% Zn + Pb, 17.7 g/t Ag from 104m and 8m @ 5.53% Zn + Pb, 5.08 g/t Ag from 124m).

The miner’s exploration target for the site is gaged between 100 to 120 million tonnes, at a grade ranging between 3.5% Zn-Pb to 4.5% Zn-Pb Sulphide.

Further drilling is expected to continue over the next 12 months.

Business snapshot

Last Thursday, Rumble Resources entered into a trading halt, just before releasing its activities and cash flow statement for the latest quarter (ending 31 December 2021).

In it, the company reported a number of further developments at its Western Australian sites and tenements, including:

• Earaheedy: drill program completed with 50% assays pending, zones intersected and results obtained
• Munarra Gully: assays pending with a Cu mineralisation anticipated to correlate with Au-Ag
• Lamil Au-Cu Project: drill program completed with assays pending
• Wardawarra: Ni defined over 1.7km of the strike, with other untested sites

The company also reported:

• A cash position of $27.3 million (at end of quarter)
• $770,000 expected in research and development return (not included in the cash position)

Since exiting the trading halt, the Rumble Resources share price has shot up 11%.

Rumble Resources share price snapshot

Over the last 12 months, the Rumble Resources share price has skyrocketed by more than 203%. Its shares were trading as low as 10 cents in April 2021, around the time the company gave a drilling update on its zinc-lead-silver project.

About a month later, the miner’s stock hit a 52-week-high, with its shares reaching 76 cents apiece.

Currently, the company has a market capitalisation of around $291 million with more 620 million shares issued.

The post Why has the Rumble Resources (ASX:RTR) share price rallied 25% in a week? appeared first on The Motley Fool Australia.

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