Batero Gold Corporation (CVE:BAT) (PINK:BELDF) share price tanked after the company said to have found less gold than investors had expected.
BAT tanked a total of 49.2% on Monday when its stock price gradually decreased throughout the session under a trading volume of 6.4 million. With such a trading activity Batero got listed among the most actively traded stocks on the exchange for the day.
The reaction was caused by the latest news release dated February 27. The company announced the first resources estimates for the Batero-Quinchia project. The reported six million ounces of indicated and inferred resources clearly were below the market’s expectations.
Indicated resources totaled 3.5 million ounces at a grade of 0.44 g/t and inferred reached 2.6 million at 0.33 g/t. The Chief Operating Officer Darryl Lindsay commented there might be up to 10 million ounces of mineralized rock around the deposit. The comment was directed to ease the panic on the market, yet the company would still have to prove such expectations and that’s a long term goal.
Given the company still has quite significant gold mineralization proven, the recent price drop should not overextend. Another day of losses is probable but the price already got cut in half so bulls looking for a discount stock might come in anytime.
