Currie Rose Resources Inc. (CVE:CUI) (PINK:CUIRF) picked up increased volume once again as the stock price struggles to stay above the 29-cents support level.The stock has been struggling since hitting the 52-week high in early December. Previous attempt to get back on the uptrend on increased trading volume failed on the third day and the chances are that it will do the same thing again.
The rally ignited when the company commenced drilling on its Sisu River property in Tanzania on October 23, 2010. Another update from November 17 stated the company is actively exploring the prolific Lake Victoria Greenstone Belt of northwest Tanzania and will be concentrating on Mabale Hills and Sekenke Gold Projects.[BANNER]
In mid-November, the company had drilled halfway the 3,000 meter drilling target at the Sisu River. The drill results are still pending and will likely become the driving force behind the stock price once they are announced.
The current market valuation depends on the ongoing drilling process and the fundamentals of the business. Since the company generates no income, the inflated price-to-book ratio of 3.75 shows there is hardly any space for further share price appreciation under the current circumstances. The stock will likely stay in consolidation until updates on the drilling results are provided.
