Calibre Mining Corp (CVE:CXB) (PINK:CXBMF) stock price tanked after the company posted results of their latest drill program.
CXB had dropped 44.2% amid the session. The trading volume was around 7.2 million which was 5 times heavier than average of 1.3 million.
Calibre’s share price tanked after the company announced additional drill results at Primavera Gold/Copper Porphyry joint venture project in Nicaragua. The results were generally positive. The company completed a total of eight drill holes on the property, totaling nearly 3.2 thousand meters drilled. The best of significant intercepts was 146.5 meters of 0.65 g/t gold and 0.27% copper. Somewhat smaller grades and lengths were found in three different holes.
It looks like most traders were simply expecting higher grades on Primavera. Moreover, the initial dip in price caused a cascading panic selling joined by momentum traders hunting an easy buck.
The stock was clearly dumped by those who expected very high grade findings, because the property is a productive mining zone, and played this gold stock more as a lottery. The company has only done initial testing and further drilling will should be carried out without second guessing seeing how the latest report lacked any substantial bad news that could obstruct Calibre’s plans.
