King River Copper's (ASX: KRC) bet on tightening its share capital and starting drilling preparations in Western Australia has paid off with its shares rising 100% to the current $0.05 from just three weeks ago.
The company is confident of its exploration plans, after all, previous rock sampling had returned very high grade results of 27.25% copper, 25 ounces per tonne silver and 4.97 grams per tonne gold.
This confidence has flowed towards its move to remove stock overhangs that can inhibit share price growth with share buy backs.
King River has recently 'bought back' 10% of the capital, and has made application to have the flexibility to purchase another 10%, or 13,865,717 shares, over the next 12 months from 23 July.
In theory, this should mean King Road is highly leveraged to any good news from upcoming exploration at its Speewah Dome project.
This appears to have received some validation with the recent share price rise.
King River holds 785 square kilometres of mineral leases covering a unique geological feature in the Eastern Kimberley of Western Australia where the ground breaking sampling results had prompted an independent review of all previously known exploration data, resulting in the development of a new geological model for copper / gold exploration.
Field work has kicked off with a helicopter reconnaissance and sampling survey of numerous previously unexplored, but prospective locations around the Speewah Dome.
Detailed soil and rock sampling has also commenced, targeting three high priority prospects within the Speewah Dome at Greys-Hayden-Eiffler (previous reported surface results of 27.5% copper and 4.97g/t gold), Todhunter (previous reported surface results of 7.3g/t gold and 3.0% copper), and the new untested King-Central prospect.
A 3D geophysical modelling has highlighted the potential for gold/copper mineralisation along north-south and cross linking faults at these prospects, some located under alluvial cover.
An initial RAB drilling program is planned for 2013 on the highest priority defined soil targets.
King River has built a comprehensive dataset at the Grey-Hayden and Eiffler prospects, comprising airborne magnetics, ground based gravity, SAM and IP surveys, surface sampling (soils and rock chips), and some drilling.
Reprocessing of the geophysical datasets and its integration with the geochemical and geological data has now been completed, and several high priority gold/copper targets have been identified associated with the intersection of inferred faults.
With the tighter share capital from the buy backs and drilling preparations underway it would seem further gains can not be ruled out in King River share price.
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