The Resources & Energy Group Ltd (ASX: REZ) share price has dropped more than 7% so far today, after pumping 21.28% higher yesterday on the back of a positive drilling announcement at one of its prospects.

At the time of writing, the Resources & Energy Group share price is sitting at 5.3 cents per share

'Significant' gold system confirmed at Gigante Grande

Yesterday morning, the company announced the success of its November 2020 drilling program at its Gigante Grande prospect in Western Australia. Commenting on the results, Resources & Energy Group stated: 

The results confirm that Gigante Grande prospect, on the eastern side of the East Menzies Gold field project, is a significant and large gold mineralised system. REZ will continue exploration with a view to expand the prospect and advance towards resource generation.

Among additional highlights, Resources & Energy Group acknowledged over 70 significant intersections of gold mineralisation to date and commencement of the third drill program at Gigante Grande.

Looking forward, a total of 14 holes are planned for the January 2021 program. The program will focus on a combination of shallow and deep holes between the Moriarty Shear Zone and the Gigante Granodiorite.

The current resource estimate totals are 129,000 ounces of gold and 862,000 ounces of sliver.

The Resources & Energy Group project portfolio

Resources & Energy Group has projects in Western Australia and Queensland. The company's East Menzies Gold Project is located 137 kilometres north of Kalgoorlie Western Australia. The project covers 90 kilometres squared and consists of three mining leases, 28 prospecting leases, one exploration lease and 14 prospecting lease applications.

Located 250 kilometres north/west of Rockhampton, Queensland is the Mount Mackenzie Gold/Silver Project with an estimated 100,000 ounces of gold at a grade of around 1.3 grams/tonne. The company owns two parcels of land within the mining leases for the site.

The company was formed in 2005 and has operated as a gold exploration and development company since 2015.

Resources & Energy Group share price snapshot

Over the past 12 months, the Resources & Energy Group share price has boomed over 200%.

That said, the company also experienced some massive dives during the period. Like back in November 2020 when they released disappointing drilling results. 

The Resources & Energy share price has been particularly volatile over the past three months, reaching 11 cents at its higher point for the period and slumping to 3 cents at the lowest.

The post Resources & Energy Group (ASX:REZ) share price sinks 7% appeared first on The Motley Fool Australia.

The Resources & Energy Group Ltd (ASX: REZ) share price took a 33% dive on open following its drill results this morning. 

Let's take a look.

About the company 

Resources & Energy is a gold explorer, developer and producer with projects in Western Australia and Queensland. 

In Western Australia, the company's flagship site is the East Menzies Gold Project, situated 130km north of Kalgoorlie. The site represents a 112sq km package of contiguous mining, exploration and prospecting licenses. 

In Queensland, the company has a 12sq km mineral development licence over the Mount Mackenzie Mineral Resource. An initial scoping study for the project shows a positive net $63 million of free cash. 

Resources & Energy share price surge in October

The Resources & Energy share price surged more than 200% on 20 October following the discovery of a new high-grade zone of gold mineralisation with a peak result of 76.4 gt/au. This was at the Gigante Grande Prospect situated at its East Menzies Gold Project.

Resources & Energy executive director Richard Poole said the results supported "the overwhelming evidence that the East Menzies Gold Field is one of Australia's best and most overlooked exploration target areas". 

Drill results

The gold miner announced its drilling results from its Gigante Grande prospect today. They showed the drill holes, which were targeting a potential continuation of mineralisation, resulted in a peak assay of 3.85 gt/au.

As a result, the Resources & Energy share price opened 33% lower and is currently trading near its intraday lows, down 29.5% at 7.4 cents. The bar may have been set too high after its previous high-grade zone discovery or its share price may have been pumped too high. Nonetheless, investors were clearly far from impressed with today's drill results. 

Resources & Energy has previously delivered an announcement under similar circumstances where the market was not impressed. On 3 November, the company announced a resource upgrade at its Goodenough Project located within the central west part of the East Menzies Gold Project. In what appears to be a positive announcement, the Resources & Energy share price slipped 5% lower on the day. 

The post The Resources & Energy (ASX:REZ) share price dived 33% on open today. Here's why. appeared first on The Motley Fool Australia.