At the time of writing, shares of Great Boulder Resources Ltd [ASX:GBR] are up by 24.36%, to 48.5 cents per share. Great Boulder is a nickel-copper explorer, with tenements across Western Australia.
Why did Great Boulder Resources Ltd shares do this?
The company announced that it hit thick, massive sulphide mineralisation at the Eastern Mafic complex, within its Mt Venn project today.
What now for Great Boulder Resources Ltd?
Great Boulder Resources could reignite the resources sector this year. I don’t say this lightly, mind you. I’ve got 12 years of experience analysing resource companies and trading financial markets.
Let me be clear: very few companies tap thick massive sulphides.
Here are the numbers:
Source: Great Boulder Resources
We’re seeing a lot of disseminated sulphides, which aren’t worth much. But there’s also some decent intersections of semi-massive, matrix and massive sulphides. In other words, even if these drill holes don’t prove the mother lode, the company could have hit an extension of the ‘big one’.
Now, while the story sounds good, the market won’t get excited until it sees the assay results. If they don’t deliver, the share price could fall sharply.
That tends to happen in the junior end of the market.
But, don’t write this stock off…it could be on the verge of something big.
Who knows, it could have already tapped the ‘juice’ on this drilling program!
The bottom line: I like where the company is going. If it announces thick and high-grade nickel-copper sulphides soon, the share price could explode and reignite the resources sector this year!
Resources Analyst, Markets & Money
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