Trading activity of Solomon Resources Limited (CVE:SRB) (PINK:SLMZF) stock increased yesterday after the company published an update on the exploration program for 2011.
The share price of SRB added 41% on Thursday on a significant trading volume of 1.24 million, which was more than 17 times larger than the 90-day average activity.
The company released an update for their 2011 exploration programs, which include the Ten Mile Creek Gold and Southwest Yukon projects. The press release mostly reminded about goals achieved during the 2010 exploration program, as well as described the properties.
A couple of promising geochemically anomalous zones to be trenched early in the 2011 exploration season include The Jack London Zone and The Sourdough Joe Zone on Ten Mile Creek. Trenching these in 2010 returned gold values up to 1.5 g/t over 2 meters.
2011 program on Ten Mile Creek will include 3000 soil geochemical samples, airborne geophysical survey reaching 589 line kilometers, 6000 feet reverse circulation drilling and 1000 meters of diamond drilling. The crew is working on the site since May 1, 2011. Preliminary field exploration program will begin on Southwest Yukon in late July 2011.
The commotion on the stock market caused by this update stands out in terms of a trading volume increase and a larger than usual price swing. However, in the big picture the move appears as yet another volatile price action, meaning there could be no continuation on this rally. Although technically the price has passed above the 15 cents resistance, which has been tested several times in the past and should hold as a solid support from here on, sharp drops shouldn’t occur either.
