While it is true that mining companies have managed to garner attention from investors in recent times in a big way, not all mining stocks have performed well. Yesterday, the mining firm Buscar Company Inc (OTCMKTS:CGLD), which has interests in Nevada and California, saw its stock take a beating as it ended the day with a decline of 10%.
Trading Data
On Tuesday, CGLD stock ended flat at $0.0450 with more than 20K shares, compared to a volume of 19K shares. The stock moved within a range of $0.0378 – 0.0450 after opening trade at $0.0449.
Buscar Company Announces It Has Increased Its Mineral Claim Holdings By Over 800% In Past 12 Months; Expands Into Nevada with Acquisition of New Gold Claim
However, in this regard, it ought to be noted that the company actually made a fairly positive investment. Buscar announced that over the course of the past 12 months it had managed to expand its mineral rights claims by more than 800%.
That was a major new announcement but it did not seem to impress investors one bit and the stock tanked. In addition to that, it was also announced that Buscar managed to boost its mining operations in Nevada by staking 10 more claims in the state.
The 10 claims that Buscar acquired are part of the opening gambit for the company and are a portion of the 3000 acres that it is looking to acquire in the near term. At this point in time, it will be interesting to see if the Buscar stock can make a recovery in the coming days.
Key Quote
Mr. Heathman, the President, explains “These new claims are a step out from our holdings in Northern California, but follow on the exploration methods we use to identify prime targets for further exploration and Nevada provides an easier regulatory framework than in California. To date, limited exploration has been conducted on the property, including Geospatial Data Analyses and soil sampling. Initial soil sampling indicated approximately 16 grams per ton of gold.”
Technical Data
CGLD stock is trading below the 50-Day and 200-Day Moving averages of $0.0448 and $0.0485 respectively. Moreover, the stock is trading below the 20-Day moving average of $0.0918. The company has a total market capitalization of $840K.
