Calibre Mining Corp (CVE:CXB) (PINK:CXBMF) is still holding the inflated price after the company announced to have hit gold in their first drilling hole on the Riscos De Oro property.
10.25 g/t gold and 288.25 g/t silver mineralization zones reach 5.4 meters in length in the first hole drilled under 2011 exploration program. These results were for the lower zone only – middle and upper zones returned lower values.
The company will be testing the composition of the deposit with further drilling. The most recent hole was drilled in the vicinity of historical drill hole which had proven records of gold and silver mineralization.
Share price jumped nearly 23% since the announcement, struggling to sustain the appreciation, but holding the gains pretty solidly. Trading volume was noticeably lower today though. The price is keeping above a couple strong support zones. The next couple day will be decisive in where the price will end up.
There are tested support levels at 18 and 19 cents. Even though the stock currently trades above these, it has not retested the levels during the rally and those might prove weaker than they appear. The next resistance is at 22 cents. Historical price action points out the stock tends to stick to channels and the recent breakout might be the lead to the formation of one.
