The downtrending share price of Argentex Mining Corporation (CVE:ATX) (PINK:AGXMF) continued to roll down another 1.3% today.
However, ATX seems to be hesitating to pass below 70 cents. Psychological pressure might be kicking in here as the drop had stopped and consolidated every 20 cents during the current downtrend. Traders should have in mind that these consolidation periods last only around a week.
The recent news didn’t bring in much positive changes either. Argentex announced on June 27, 2011, the company got a new trading symbol on the American OTC tier exchange and will trade under the symbol AGXMF. That puts it in line with many other Canadian companies that trade on two exchanges. It doesn’t make it a better stock though.
ATX has been crashing down since the beginning of May when the company released additional drilling results from 2011 exploration program at Pinguino project.
Although they have found some very high values of silver mineralization along short lengths, the report lacked more substantial results considering the extend of the drilling program which included 17 thousand meters of drilling and 12 thousand meters of trenching. The company found some gold as well, but the mineralization levels were comparatively low.
ATX later posted extended results, from 12 more holes, on June 2, 2011, but those weren’t too encouraging either considering the length to mineralization ratios. Approximately 70% of the drilling data is still in the lab, waiting evaluation.
On June 15 the company also canceled a would be private placement deal because they raised $2 million through exercise of warrants. The management believes they are currently sufficiently financed for 2011.
