Expect Increased Volatility Next WeekSince June 1st, the stock has traded in a box between $1.91 and $2.45 with the Friday close at $2.19. During this time, daily volume has ranged from 87K to 425K, averaging about 272K. The latest short position has shown a marked decrease of almost 70K. Brokerage firms hiding under the name "Anonymous" have been on both sides of the market (manipulators?) but overall have sold almost 800K more shares than they have purchased. On February 26, the Company completed a $6 million flow through financing at $2.45 (2.45m shares) which is subject to a four month hold (next Friday, June 26).
Over the next couple of weeks, the Company is expected to release an update on the Elmer property program which would probably entail drilling progress and hopefully some assay results. There is little doubt that the stock will be halted before assay results are released. Investors, speculators, analysts, etc. will be comparing results to drill hole ELM 19-002 which assayed 3.15 g/t over 102m. Then all the number crunchers will start looking at dimensions and overall grades to determine a preliinary speculative resource figure, depending on the amount of information released. Of additional interest will be the extent of any gold mineralization located on the ELM 2-5 target anomalies.
When the results of the first seven holes were released in January, the volume spiked to more that 7.5m shares and the stock tripled in price. Therefore, look for higher than average volumes and price fluctuations. At the moment, both the short and long term moving averages are moving up in anticipation of positive results and the price of gold continues to hold between $1,680 and $1,750/oz.