Yesterday CGFIA share price jumped another 56.52% up and closed at a new 52-week high at $0.0025. The 428 million share volume was also spectacular and unseen in the entire trading history of the stock. In the last two months, the stock showed almost no reaction to the latest CGFIA press releases from the series “Gold Dynamics in the News”, which attempted again to proclaim gold as an excellent investment idea and to convince traders that gold stocks are underperforming the price of gold.
Maybe the main reason is that Colorado Goldfield have no gold yet for their share price to surge up. Though, CGFIA performance this week overcomes the mentioned by the company 2% weekly return of gold. It seems like the buying pressure has started to arise already on Friday evening, when a message appeared on an online message board, saying that the company’s mill in Silverton is ready to go and the needed permit is coming any moment.
CGFIA have not issued any news in that regard since the end of June. According to the filed in July quarter report, the final decision for the Reclamation permit should have been issued by now. Further, the company stated to have received preliminary purchase orders for $9.2 million for custom gold ore milling and at the time the report was prepared the management was expecting profits from operation within this month.
The only relevant news recently was that the company has increased the number of its authorized shares of common stock to five billion, which together with the cash resources of around $8,000 at the end of May looks like a clear signal that equity financing may follow soon.
