Metals Creek Resources Corp. (CVE:MEK) (PINK:MCREF) gaped up after the company announced to have encountered significant gold mineralization zones on their targeted property.
MEK gaped up and ended the Wednesday’s session with 35% gain on the stock price, although the intraday trend was negative the whole time. The trading volume was 12.6 million, around 22 times heavier than the 90 day average of 559 thousand. This was the most active trading day that MEK had over the past year. The stock even got listed among the heaviest traded stocks on the exchange.
The gap up came at a seemingly right time to save the day, just when the preceding uptrend was beginning to fade. However, it might not recreate the trend. In this case it sprung too far from the general body of the uptrend which means an imminent correction.
The news that drove the price up were very promising though. Metal Creek announced on Wednesday, February 15, that they have intersected 1.92 g/t of gold over 94 meters at the Thomas Ogden Zone in Timmins, Ontario. The intersection even contained two higher grade intervals.
Metal Creek aims to earn 50% interest in the project by incurring $3.1 million in expenditures over a period of four year. Additional payments in cash and stock will also be required and total $460 thousand.
