Same thingHappened to Volta Resources this past 2 weeks.
Today they released a Resource and were up 20% on the open and now still up 10 - 15 % on the day after proving up 3 million ounces M + I plus another 1 million ounces Inferred today.
The market is not giving companies any credit prior to their 43-101 and you could have made a quick 15% on Volta by just buying it yesterday.
While it is frustrating to say the least I think large houses are just trying to average down as much as they can in here while the depth on GBB is still thin. Cannacord dumped 80,000 of the 175,000 shares they picked up yesterday but since I went in at 37 cents the wall has been eaten up and asks are back to 39.
The market is inefficient lately for gold stocks as when retail sees the majors struggling to move it's even less attractive to be bidding up juniors at these prices as for the past 4 months we've been used to a market where gold goes up, stocks go down.
Those short the miners have finally succeeded as they are dragging stocks down to ridiculous prices and still having the opportunity to pick them up as the stink-bids are not there waiting due to the optics of the gold equities as of late.
I'm guilty myself of not picking up more VTR yesterday and should have been as I knew they'd be provinng up at least a double in Resource with the results they've been delivering the past 6 months.
As much as it looks like the market knows what's going on here I fail to believe that in this case due to several other instances like Volta which severely correct to the upside when news does come. You could have picked up Volta at $1.20 - $1.25 the past couple weeks to sell it at $1.60 + this morning which is a nice 20% + move.
I don't think this share price is anything to worry about and is instead a gift at these prices as I didn't intend to ever be able to build the position I have in GBB. My only hope is that if we are bought out after the 43-101 we get a nice premium as I'd much rather see this through to a mine but am happy to take a piece of OSK shares + a cash offer if the value is there.
$65 million dollar market capitalization for being potentially days away from a Resource Estimate is disgustingly cheap for Quebec considering African juniors like Volta and Orezone are currently being valued at $55 - 70 dollars per ounce or triple our value per ounce.
Day to day can be frustrating but the market can't discount things forever and GBB is one of those assets that can only be held down for so long. I wouldn't be surprised to see OSK come in and grab our shares for 65 cents on the dollar if we continue to trade in the 40 - 45 cent range come the 43-101.
$100 million dollars for 3 million ounces in Quebec is a steal with the deposit open in all directions and OSK knows that which is why they moved in next door at Adanac.