Traders who have been keeping a close eye on Greenwood Gold Resources Inc (OTC:GGRI) for the last two quarters know that this stock is able to deliver three-digit price jumps.
Yesterday, GGRI stock made a session to remember. Clocking in at $0.067 per share, it surged a staggering 347%, setting a new four-week high. However, another record was set, too. With 44.5 million shares changing hands, GGRI not only registered a 20-fold improvement over the average volume, but also recorded an all-time record for the company.The giant leap has now triggered a large wave of trade alerts that flooded investors’ mailboxes prior to the forthcoming session.
What served as a prerequisite for yesterday’s huge movement was, as usual, an official press release. The latter informed investors about GGRI’s purchase of 100% working interest option in a 955-hectare property located in British Columbia. The company is expected to explore for copper-gold porphyry deposits.
Ironically enough, the aforementioned news seems to have impressed traders even though the definitive agreement behind it was revealed on Feb. 22 in the form of an 8-K SEC filing. Yet, trade data for GGRI stock for the month of February are nowhere to be found. Nevertheless, GGRI appears to have got things going as a technical report for the site has just surfaced on the company’s corporate website. In a nutshell, while the report confirms the property’s potential for copper-gold porphyry, it also points out that a large area of the property has yet to be explored for the very first time.
As an OTCQB market player, GGRI files with the SEC on a pretty regular basis. The company recently submitted an amended 10-Q report covering Q1 of 2011. As of Mar. 31, 2011, GGRI’s unaudited balance sheet shows:
- zero cash and current assets;
- $614K in deposits on mineral property pointed as the company’s only assets;
- $263K in current liabilities;
- zero revenue and a net loss of $210 thousand.
The option agreement mentioned above is expected to introduce GGRI to the mining and metal industry. So, will the compny’s stint in this business field meet with success? The next couple of quarters will provide the answers. Until then, GGRI stock will most probably continue to amaze some traders while taking others aback.
