Great Western Minerals Group LTD. (CVE:GWG) (PINK:GWMGF) continued to roll down on Friday as traders remained shocked by the company’s drilling results, which didn’t find anything worthwhile on the rare earth mineral property.
GWG lost another 1.6% on Friday – the stock still dwelled low after collapsing 14% on Thursday. The trading volume faded and was merely half the 90-day average of 1.93 million, showing bears are no longer in full control.
Although the downwards momentum is weakening, no serious correction should be expected. Limiting the upside, the 200-day average is right at 62.5 cents – the price passed below on the big sell-off and now it works as resistance.
Great Western stock collapsed after the company announced results for the 2010 exploration program at the Douglas River Rare Earth Project in Saskatchewan. None out of 14 holes done on Marline and Helipad showings encountered any significant rare earth elements mineralization zones.
Geological mapping, till, soil and biogeochemical surveys, trenching and core drilling were done on the site. During the work the company has discovered a new showing which was named Helipad. Trenching on Marline South and Helipad showings returned grades of total rare earth oxides up to 2.31%, but only within small ranges (most of them less than 1 meter).
