The rolling down stock price of Orko Silver Corp. (CVE:OK) (PINK:OKOFF) finally found some bullish support, but considering the recent news a small price spike up might not be able to overturn the depressive mood.
OK stock price action began to show the sings of bulls trying to use the most recent drop to their advantage. Although trading volume was very strong when the price went down over the past two session, it still opened 9.5% higher today, which might set the bulls in the mood for a bounce play.
The share price slid down after the company announced on April 5 to have regained 100% ownership of La Preciosa. However Orko regained their rights at a costs. Pan American Silver Corp., a joint venture partner of Orko, failed to deliver a feasibility study and decided to drop their rights to earn a 55% interest in the property altogether.
Pan American has invested more than $18 million in exploration and development of the property. Their decision to drop the project was based on the results derived from the last three years of work. The project apparently can’t generate a rate of return high enough to be economically profitable for Pan American.
Orko on the other hands anticipates a resource estimate anytime and had AMEC Amecricas Ltd. to provide a preliminary economic assessment, which should be delivered in July this year.
