On no official news from Dutch Gold since the filing of their last quarter report in the middle of August, on Friday the share price of their stock jumped up by 169.84% and closed at 0.017, breaking up the upper trading band and the 50-day moving average. Heavily shorted throughout the whole last week, in the last trading session again more than one third of the 67.8 million share volume was made up by shorters.
Such a volume is also a remarkable value, considering one of the latest messages that appeared yesterday evening on DGRI online message board. A forum user claims to have spoken on the phone with the CEO of the company about the Basin Gulch Project. The CEO has supposedly confirmed that the gold is there and can be extracted, but maybe the more important for traders information is that the CEO “confirmed float of 65-70M and OS of 195M”, meaning that the entire public float must have turned over of Friday. A promotional video about the Benton Mine has also been provided a couple of hours earlier.
Despite all the broad online discussions, it seems that the company has not made any substantial progress this year, and had at the end of June around $16,500 in cash to do this. The Basin Gulch Project was acquired in 2006 and since then Dutch Gold have not commenced any mining operations. According to the latest quarter report, the company expected to file for a preliminary permit to start testing, drilling and developing the property by the end of this September. Still nothing has been heard on that issue.
As for the Benton mine, it has not produced any gold since 2008, was at the time of the latest report in “Care and Maintenance mode” and the dispute with the owner about the amount of royalties was still running.
