Cadan Resources Corp (CVE:CXD) (PINK:CADAF) stock bounced the bottom shortly after the company released an upgrade to the development on their T’Boli gold and silver mine.
New samples returned up to 26.2 g/t gold mineralization findings over small lengths, reaching up to 2.5 meters. Earlier essay results from driving of the 398N Lode show a 13.08g/t average mineralization of gold. The company is yet to announce a full scale assay results of further samplings.
Share price struggled to keep the upward momentum today. Roughly 3% loss was recorded shortly into trading session, partly as a result of profit taking from the previous day. The trading volume was comparatively light, neither bears nor bulls were clearly dominant.
The bouncing share price has established a noticeable support level at 54 cents, providing short sellers a clear short term price target.
The company’s update on mine exploration can only be regarded as a short term catalyst.
The fact that Cadan owns a promising gold mine has been known for a while and thus the announcements stating that the gold veins were proved to be slightly larger than though, don’t make that much of a difference.
As most development stage companies, Cadan raises most of the working capital through stock issuance and dilutes shareholders. The effect is clearly seen on the stock price chart which was dominated by downtrends and consolidation periods over the past year.
