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Wishbone Gold shares rally on promising drilling results and new fundraising push
The junior gold explorer saw shares surge over 300% in the past couple of weeks following successful drilling intersections and a £1.5 million capital raise for expanded exploration activities.
Dramatic share price surge follows drilling success
Wishbone Gold saw a notable surge in its share price since the 18th of August as investor optimism mounted around fresh drilling successes at its Red Setter Gold Dome project in Western Australia, coupled with a £1.5 million capital raise earmarked to expand exploration efforts.
The stock leapt from approximately 0.38 pence (p) on 15 August to 0.88p on 18 August - when the company revealed a 'fantastic' mineralised breccia pipe intersected at depths exceeding 520–570 metres - to around 1.50 p following the announcement of the fundraising, marking a gain of more than 300% within days.
This dramatic price movement demonstrates the potential volatility and rewards associated with junior mining exploration stocks when positive results exceed market expectations and provide validation for geological theories.
Significant geological discovery drives investor interest
The momentum began on Monday, 18 August, when Wishbone announced that initial drilling at its Red Setter Gold Dome had intersected a substantial breccia pipe featuring quartz-carbonate veining and sulphide mineralisation - including chalcopyrite and pyrite- over an interval extending more than 130 metres.
Western Australia Director Ed Mead described the finding as 'outstanding', highlighting its resemblance to mineralisation styles seen at nearby flagship deposits such as Telfer and Havieron, both of which represent significant gold mining operations.
The geological significance of this discovery lies in both the scale of the mineralised zone and its similarity to proven deposits in the region, providing validation for Wishbone's exploration model and target identification.
The depth of the intersection, at 520-570 metres, indicates substantial mineralisation that could extend significantly deeper, creating potential for a large-scale discovery if follow-up drilling confirms the initial findings.
Strategic capital raise enables expanded programme
Investor attention intensified further on Wednesday, 27 August, when the company successfully raised £1.5 million through a placing at 1.25p per share to fund an expanded drilling campaign.
The capital boost - equivalent to nearly A$3.1 million, thanks to a favourable GBP/AUD exchange rate - was seen as a strategic enabler that would allow Wishbone to deepen and widen its drilling programme well into the following year.
The successful completion of the capital raise at a premium to recent trading levels demonstrates strong investor appetite for exposure to the exploration programme and confidence in management's ability to deliver results.
Market sentiment reflects exploration potential
These twin catalysts - significant geological findings and meaningful financial backing - have galvanised market sentiment, propelling shares upward. As of this week, the stock has tripled from its ~0.40p level over the past month, underscoring rising investor confidence in the company's exploration potential.
The dramatic share price appreciation reflects the typical risk-reward profile of junior mining exploration, where successful discoveries can generate substantial returns but carry significant execution and geological risks.
The comparison to established deposits like Telfer and Havieron provides important context for investors, as these operations demonstrate the potential scale and economic viability of similar geological systems in Western Australia.
However, investors should recognise that exploration success requires multiple stages of drilling, testing, and development before any commercial viability can be established, making this a high-risk, high-reward investment proposition.
Western Australia mining jurisdiction advantages
The Red Setter project's location in Western Australia provides several advantages for exploration and potential development, including established mining infrastructure, supportive regulatory frameworks, and proximity to existing operations.
Western Australia's position as one of the world's premier mining jurisdictions offers political stability, clear regulatory processes, and established supply chains that reduce development risks compared to many international exploration opportunities.
The region's geological characteristics have produced numerous world-class commodity deposits, providing confidence that significant discoveries are possible with appropriate exploration techniques and sufficient capital investment.
Access to skilled labour, mining services, and processing facilities in the region could accelerate development timelines if exploration results support advancing toward commercial evaluation.
Next steps and timeline considerations
Looking ahead, Wishbone's immediate focus will be completing assays from the current drill hole and initiating step-out drilling both laterally and at depth. Results from these follow-up operations are likely to be closely watched by shareholders and speculators alike.
The assay results will provide crucial information about grade, continuity, and the economic potential of the mineralised zone, determining whether the geological discovery translates into a commercially viable resource.
Step-out drilling will test the extent of mineralisation and help define the scale of the potential deposit, with successful results potentially supporting further share price appreciation and additional exploration funding.
The timeline for receiving assay results and planning follow-up drilling will be important factors for maintaining investor interest and supporting continued exploration momentum through the remainder of 2025.
Wishbone Gold technical analysis and TipRanks score
The Wishbone Gold share price, up a staggering 672% year-to-date, remains on an upward trajectory with the July 2023 high at 4.50p representing the next long-term technical upside target, now that the share price seems to have bottomed out at its 0.09p March low.
Wishbone Gold monthly chart
The steep August uptrend line acted as support this week but may be breached over the coming days. If so, Wednesday’s low at 1.20p may be slipped through as well with perhaps the 18 August high at 1.02p being revisited.
Wishbone Gold daily chart
As long as the 20 August low at 0.70p holds on a daily chart closing basis, the medium-term uptrend is deemed to be intact.
For further upside to be seen, this week’s high at 2p would need to be exceeded.
Wishbone Gold has a TipRanks Smart Score of ‘9 Outperform’.
Wishbone Gold TipRanks Smart Score chart
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