Australian minerals exploration company Rumble Resources (ASX:RTR) has been performing well in the last year. Its primary assets are exploration licenses in the Fraser Range in Western Australia. Fraser Range potentially stores the largest nickel sulphide discovery in Australia in the last two decades. The Fraser Range project has six exploration licenses and five exploration license applications. The company holds a 100 per cent equity interest in 10 of the licenses, with a 75 per cent interest in the basement mineral rights of E69/2506 via a joint venture with Blackham Resources. Its exploration strategy consists on the identification and drill testing of electromagnetic targets that could contain sulphide deposits. Rumble Resources listed on the ASX in July 2011 after raising $2.5m at $0.20 per share. Its market capitalisation sits around $17.83m with 187.65m shares.
Rumble Resources is reliant on external capital and the future availability of financing in uncertain. The Big Red drilling project has confirmed the presence of a mineralized conductor, but economic intercepts were not encountered and there is no guarantee that further exploration can yield a base metal deposit. From an investment perspective, the company provides a speculative exposure to the potential for Western Australia’s Fraser Range to become a new nickel mining district. Both the exploration risks and potential value impact of these resources are elevated. RTR is trading up .75c, or 7.9 per cent, at 10.25c per share just before the close on Monday.. RTR is up 115.56 per cent in the last 12 months and 223.33 per cent so far this year.
Author: Simon Herrmann
May 04, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.