Indigo Exploration Ltd (CVE:IXI) (PINK:IGXEF) stock price had ran up for a couple of trading sessions after the company announced their intentions to move into the next drilling phase on one of their projects.
IXI share price added another 12% to the previous 20% advance on news. The trading volume faded though, going from 1 million on the initial push on Tuesday to barely above the average turnover of 129 thousand.
The company said in a press release on July 13, 2011 they have started Phase II drilling at Moule gold exploration permit in Burkina Faso. The announced plans are a follow up on the core program.
Among the most notable developments, the Phase I drilling intercepted 29.7 g/t gold over 7 meters and 10.9 g/t over 3 meter at Vein 3. The follow-up program will further test the target as well as drill test Vein 2 for the first time. Indigo will be testing anomalous trends on Vein 3 to trace the actual structure of it.
On preliminary grid soil sampling the company tested an area around the vein, 2000 meters long and 500 meters wide. Another area, 1000 meters long 450 meters wide, around Vein 2 has also underwent grid soil sampling.
While the move onto next phase is a promising development it doesn’t seem like it could make a lasting effect on the market. The news got the stock price out of consolidation range and above one of the closest resistance levels at $0.25 and $0.26, but the lack of trading activity seems troublesome and indicates there’s a larger probability of share price consolidation than sustained uptrending.
