Fancamp Exploration Ltd (CVE:FNC) (PINK:FNCJF) stock price action on Tuesday showed that traders are still watching the stock vigilantly and welcome the positive news, but there was no lasting effect.
FNC stock price gained 10.2% on Tuesday, carrying along a trading volume of 2.2 million. This was one of the heaviest volumes recorded over the past year and was significantly above the average turnover of 178 thousand.
With this move, the stock price bounced the support at 24 cents per share. It still remains within the short-term downtrend though and the news that caused the buying pressure aren’t the kind to create long lasting buying pressure.
News published on December 13 declared the company had intersected high grade iron formation when drilling on Oil Can project in Quebec. The results were obtained from four drill holes. Fancamp holds a 17.5% ownership of Oil Can, which is continuous with their other 17.5% owned Fire Lake north project.
The news stacked upon the previous announcement made on December 12 in which Fancamp disclosed assay results from three holes drilled on Lac Lamelee south deposit. High grade magnetite and hematite iron formations were encountered when drilling with the most noteworthy intersection carrying a 38.5% grade iron ore over 41.4 meters. Further drilling is planned for 2012 which should finally allow to define inferred and indicated resources on the property.
