Silver Shield Resources Corp. (CVE:SSR) corrected further down as traders evaluated the latest news more carefully and failed to see short term benefits.
SSR continued to roll down yesterday losing nearly 21.4% throughout the trading session. The share price had jumped up on Tuesday on strong trading volume of nearly 5 million, which was way above the average of 237 thousand, but it failed to stay strong. The momentum of SSR price movement didn’t favor bulls either.
Silver Shield said on Tuesday morning the company discovered previously unknown easterly trending shear at their La Cumbre Silver-Gold project. Initial sampling showed 1.8 g/t gold and 4031 g/t silver mineralization accompanied by 6.18% copper, 0.16% lead and 0.04% zinc over the length of half a meter.
The update was clearly anticipated since the beginning of July as share price merely consolidated in 4 to 5 cents range, ignoring the preceding downtrend.
The new findings appear to be not enough to keep the price afloat though. The constant decline in price observed after the initial spike up suggests the stock will soon be trading in pre-discovery levels. The outcome should’ve been expected though – the grades found were not very impressive considering the short lengths depicted in samples.
