The announcement of drill results from a mining company can often prove to be a trigger for either a sharp rise or a sharp fall in the stock and a case in point from yesterday was the Sun Summit Minerals Corp (OTCMKTS:SMREF) stock.
Trading Data
On Wednesday, SMREF stock decreased 11.73% to $0.4545 with more than 244K shares, compared to its average volume of 19k shares. The stock has moved within a range of $0.4315 – 0.4993 after opening trade at $0.4984.
Key Details
Yesterday, the stock had been in the news after it announced that the initial drilling results from the fall 2021 exploration initiative at the Buck Property. The highlights from the results did not seem to result in any optimism for the Sun Summit Minerals stock yesterday. The stock tanked by as much as 12% yesterday after the announcement.
In the report, the company reported a total of 8 assays from as many as 32 drill holes that had been completed by Sun Summit Minerals. The company noted that high grade vein hosted gold mineralisation had been intersected in many of the drill holes. It is clear to see that it was a major development but it seems that it was not particularly impressive for investors. Despite the fall in the stock price, it could now be a good move for investors to track the Sun Summit Minerals stock.
Key Quote
Bob Willis, Sun Summit’s CEO, stated: “This first batch of results from our 32 hole program across the Buck Main area, continues to demonstrate the growing scale of the system as every hole hit varying styles and grades of gold and silver mineralization from top to bottom. The presence of broad zones of near surface disseminated bulk-tonnage style mineralization together with local high-grade zones provide significant encouragement to support an aggressive 2022 drilling campaign. These higher grade zones should contribute favourably to future mineral resource and economic studies. The Buck Main mineralized system remains open in all directions.”
Technical Data
SMREF stock is trading above the 20-Day and 50-Day Moving averages of $0.3992 and $0.40 respectively. However, the stock is trading below the 200-Day moving average of $0.5080.
