Unigold Inc. (CVE:UGD) (PINK:UGDIF) showed off increased trading action after the company published favorable drilling results this Monday.
UGD price nearly doubled over Monday’s trading session, but profit taking put a stop to the price rally yesterday. The trading volume was a strong 3.57 million, albeit only half of the turnover was recorded when the price went up.
Unigolds stock actually hit a new 52-week high at 33.5 cents per share on Monday, which might have scared traders once the initial buying wave ended. Still a nearly 9% retraction on Tuesday wasn’t that bad and left plenty of space for speculations around the higher prices.
UGD stock shouldn’t quickly return to its previous values because the rally was driven by a news announcement and thus has a strong reasoning behind it.
On Monday, January 16, the company reported additional results from the 2011 drilling program done at the Candelones project Neita property in the Dominican Republic.
Two drill holes returned significant results the best of which showed 73 meters of 2.36 g/t gold and 20 meters of 2.75 g/t. Grade consistency was the key feature of this discovery, and in turn the cause for the doubled stock price.
