Riva commences second drill hole at WA gold project
Published on: | by Trevor Hoey
Riva Resources (ASX: RIR) announced on Monday that it had started drilling the second hole at its Tabac cobalt gold project located 30 kilometres west of the Wiluna in Western Australia. This will test for potential cobalt bearing mineralisation within the Bubble Well Member in the western sub-basin.
If last week’s events are a guide, this could be a share price moving event in the making. On May 3, RIR announced that its first hole had intersected substantially altered and brecciated stromatolitic Bubble Well Member, the target horizon with potential cobalt bearing mineralisation of 110 metres in width starting from 148 metres.
This news resulted in the company’s shares increasing 35% from 1.7 cents to 2.3 cents, and since then it has traded as high as 2.6 cents.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
In terms of predicting when this second round of news flow is likely to emerge, the timeframe between the commencement of drilling of the first hole and the announcement of drilling results was 20 days.
From a strategic perspective, the second drill hole is focused on testing the Bubble Well Member for potential cobalt mineralisation on the eastern flank of the western sub-basin.
The Tabac project benefits from existing infrastructure, including the Goldfields Gas Pipeline and associated power generation infrastructure located at the adjacent Paroo Station Mine.
Being relatively close to the port of Geraldton there is the prospect of exporting concentrate through that channel.