CADILLAC MINING CORP (CVE:CQX) (PINK:CQXFF) became one of the most wanted stock on the exchange on Tuesday after the company declared significant gold findings.
CQX tripled in value on Tuesday. The stock gained 241.2% to be precise under the trading volume of a massive 8.4 million which cannot even compare to the usual daily average of 241 thousand.
The reason for such a massive demand for CQX stock lies in their recently announced gold findings. The company said on February 21 their drill program at Goldstrike project in Utah, returned 1.25 g/t mineralization zones over 82 meters. That automatically attracted the big capital to play with the stock since the ratio of grams per tone times the length exceeded 100.
The results were comprised from findings on three holes, which covered only a minor portion of the property. This means a much larger mineralized system might lie underneath, herein the interest in the stock.
Naturally the initial price run-up was followed by some profit taking and was going down for the most of the trading session. This doesn’t mean it can’t go back up, the initial pace of gains simple was too extreme.
The situation seems rather safe for bulls to step up. The new gold findings with a promise for even more good news have set a strong precedent for the increase in market value of CQX.
