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Reed Resources Earns ASX Speeding Ticket On 40% Share Price Rise

Reed Resources (ASX: RDR) has been issued a price and volume query from the ASX after shares reached an intra-day high of A$0.245 today, a 40% increase over the closing price of $0.175 on Wednesday 19 September.

The company responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.

However, Reed did note that the timetable for recommissioning of its flagship Meekatharra Gold Project plant has been scheduled for the latter part of 2012.

Reed has ticked a number of boxes on the path to development at the Meekatharra Project, which hosts a 3.6 million ounce resource and 752,000 ounce reserve.

The company reached a decision to mine earlier this year and has since completed a $40 million underwritten entitlement offer and secured a $20 million debt facility with Barclays Bank.

Reed is set to begin mining in October 2012, ahead of commissioning in December.

In its response to the ASX price and volume query, the company also made reference to the recent continued uplift in the Australian dollar gold price and increased interest in Australian gold projects that are approaching production.

Australia's largest tin producer Metals X (ASX: MLX) previously made its interest clear by becoming a substantial shareholder with a 5.17% stake in Reed.

The company produces about 2.5% of the global supply of tin from its Mt Bischoff and Renison mines and processing plant in Tasmania.

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