Rare Earth Metals Inc (CVE:RA) (PINK:RAREF) stock price rallied after the company announced highly promising sampling findings on their graphite project.
RA stock price rallied 18.75% under a trading volume of 710 thousand, which was already 3.5 times heavier than daily average halfway into the trading session.
The stock price rallied after Rare Earth announced assay results from a recently done prospecting program on the Manitouwadge Graphite Property in Ontario. Six surface samples tested returned values from 0.2% to 6.17% of graphite present. The sampling indentified graphite mineralization along a 900 meter trend.
Additional work still has to be done on the samples to quantify the flake size of the higher grade samples. The company plans to follow up with another exploration program by early May.
The findings in the recent program were good enough to leave an optimistic impression about the whole property. On the other hand, the recent sampling was selective and the company might have gotten lucky with their picks. The average graphite grades on the property could differ substantially, but it’s the problem that further surveys will address.
For now, traders will likely let the speculations drive RA share price as much as possible. However, it’s very likely to be a temporary effect, with enthusiasm expiring after a couple of more serious corrections. Somewhat of an alleviated share price might stick though.
