Buyers temporarily reversed the downtrend of Alexander Nubia International Inc. (CVE:AAN) (PINK:ANLBF) stock price after the company provided a favorable update on their exploration drilling.
AAN stock price bounced 0.04 cents per share and gained 25% influenced by the recent news. The trading volume was 2.85 million upon bounce, far above the average 500 thousand.
This initial move might induce the buying pressure necessary for the price to swing back up to 8 cents per share where resistance defines the limit of a trading channel. Moreover, the price action might end up forming a double bottom pattern as it is supported by the positive news.
On December 5, Alexander announced interim results of ongoing drilling program at Abu Marawat gold-copper-zinc-silver property. Among the numbers reported, the best held at 11.6 m grading 10.8 g/t gold, 185 g/t silver, 0.86% copper and 4.64% zinc, and 5.7 m.
The company plans to complete a full resource estimate in the first quarter of 2012. They still have full or partial assays pending on 19 holes, so more good news could potentially favor the price movement in the near future.
So far Alexander drilled 81 holes totaling 17.9 thousand meters at Abu Marawat. The company operates on two concessions – Abu Marawat and Fatiri in the Eastern Desert of Egypt.
