Brookemont Capital Inc. (CVE:BKT) (PINK:BKTPF) got traders excited after the company announced to have encountered significant gold mineralization zones and rushed the samples to the lab for exact results.
BKT stock price rallied up 38% on Wednesday, trading volume topped 8.9 million and was far above the average 518 thousand.
This breakout stopped at one of the stronger resistances at 15 cents per share. It now has a 200-day MA below, at 13.7 cents per share, and it could provide some support in case of retracement.
The stock price rallied after Brookemont announced an update on work being done at their Tanzania gold prospect. Four holes have been completed under the recent drilling program. The company rushed the samples of the first two holes to the lab already and expects to see results withing 2 to 6 weeks.
This was done because substantial mineralization zones were hit during the drilling. One of the holes, drilled to a length of 250 meters, was still in mineralization at its end.
The news is encouraging but a further share price rally remains questionable until the specific drilling results are out. That is because Brookemont is already evaluated pretty high and stretching it further seems rather risky at this point.
Currently, the company holds a market cap of $7.95 million. Their book value is only $.2.86 million, thus a whole lot of expectations are already included in the current share price.
