Black Canyon Limited has clarified that its recent share price and volume spike is linked to the upcoming second phase of drilling at its Wandanya manganese project, with no undisclosed information influencing trading.
- No undisclosed material information behind recent trading activity
- Share price rose from $0.061 to $0.079 amid increased volume
- Trading attributed to planned second phase RC drilling at Wandanya
- Company confirms full compliance with ASX continuous disclosure rules
- Response approved under company’s continuous disclosure policy
Background to the Price Query
On 3 June 2025, Black Canyon Limited (ASX, BCA), a manganese exploration company, responded to an ASX price query following a notable jump in its share price and trading volume. The stock surged from a low of $0.061 on 2 June to a high of $0.079 on 3 June, accompanied by a significant increase in trading activity. The ASX sought clarification to ensure there was no undisclosed material information influencing the market.
Company’s Explanation
Black Canyon confirmed that it is not aware of any new information that has not been publicly announced which could explain the recent trading. Instead, the company pointed to the planned commencement of the second phase of reverse circulation (RC) drilling at its Wandanya high-grade manganese discovery. This drilling program had been previously disclosed in the March Quarterly report and further updated in an ASX release on 1 May 2025, which announced the awarding of an Exploration Incentive Scheme (EIS) grant to support the upcoming manganese and iron drill program.
Compliance and Market Confidence
Black Canyon reaffirmed its compliance with ASX Listing Rule 3.1, which governs continuous disclosure obligations. The company’s response was authorised and approved in line with its continuous disclosure policy, ensuring transparency and regulatory adherence. This confirmation is critical in maintaining investor confidence, particularly in a sector where exploration results can significantly impact share prices.
Implications for Investors
The clarification that no undisclosed material information exists means that the recent price movement is likely driven by market anticipation of the upcoming drilling results rather than any surprise developments. Investors should watch closely for the outcomes of the second phase drilling at Wandanya, as these results could materially influence the company’s valuation and future share price trajectory.
Looking Ahead
While the company has provided reassurance regarding its disclosure practices, the market will be keen to see tangible results from the drilling program. The next announcements from Black Canyon will be pivotal in either validating the current market optimism or prompting a reassessment of the company’s prospects.
Bottom Line?
Black Canyon’s share price surge reflects drilling anticipation, but investors await concrete results to confirm value.
Questions in the middle?
- When will Black Canyon release results from the second phase RC drilling at Wandanya?
- Could upcoming drilling outcomes trigger a significant re-rating of the company’s shares?
- How will Black Canyon manage market expectations if drilling results fall short of forecasts?