Spanish Mountain Gold Ltd. (CVE:SPA) (PINK:SPAZF) saw an interesting spike in trading activity by the end of the last week, possibly in reaction to the updated drilling results. The price action only kicked in today though.
SPA got some serious attention from traders last Friday, causing the stock to run higher this week due to order accumulation over the weekend. Over the last session of the previous week the trading volume was nearly 750 thousand, more than three times the average of 213 thousand.
The price action for SPA is generally volatile though, so one intense trading day doesn’t really mean that much. The share price continues to waywardly swing between 60 and 66 cents, still holding to the vague uptrend.
The only news the company had before the breakout in trading activity was an interim drilling report for activities on the Main and North zones of Spanish Mountain gold project in British Columbia.
The company is running the drilling course to upgrade their inferred resources to measured and indicated. Thus far the company has results for 60% of the drilling done under 2011 drilling program. Results for the remaining part are expected within eight weeks. Since the program has already been completed, traders are only waiting to hear these final results.
Thus far the grades found weren’t very impressive, but are good enough for confirmation of underlying resources. An average 0.43 g/t found on the Main zone and 0.57 g/t found on the North zone.
