Yesterday, DLKM jumped 13.02% and closed the market at $0.712, the new highest value for the past year. The trading volume again reached almost 390,000 million shares, but the technical indicators remain still positive, implying that there is even more potential for the stable rise.
Without any news since the end of November, it looks like the provided then estimates of the gold mineralization on the company’s latest project were satisfactory enough to support the appreciation, although the company has not announced any planned or completed funding events to provide the missing cash for the drilling program.
Two message board posts from last Wednesday also brought in bullish mood. One of the posts linked to an article in which the strategic location of DLKM Handeni Project in Tanzania has been pointed out, along with the company’s improved access to financial resources due to its new Chairman of the Board. The second one delivered the drilling results of Canaco Resources Inc. (CVE:CAN), (PINK:CANWF) from its Magambazi gold discovery, located also in the Handeni region in Tanzania and obviously being also in favor of DKLM share price.
In such cases, traders might be expecting some pending news that could support the further appreciation. As the exploration stage company with yet no proven reserves is still in the “Discovery Speculation” phase of the chart from the above mentioned article both in regard of its reserves and its potential sources of funds, the high risk may not attract long-term holders soon.
