Luna Gold Corp. (CVE:LGC) (PINK:LGCUF) saw another price rally on significant volume, but the news-driven appreciation currently remains within the limits of general volatility.
LGC price slit up another 1.6% during Monday’s trading session, but bounced the resistance at the 200-day moving average, limiting the rally for the day. The trading volume was more than twice the average of 425 thousand. 1.25 million shares were traded during the session.
The heavy trading activity is a result of recent news announcements. The historical price performance shows the stock is prone of large scale breakouts, although the current news might not be enough to trigger one. The last two times LGC broke out it hit 80-85 cents levels.
Last Tuesday, Luna Gold announced results from eight new holes drilled at Piaba Gold deposit in Arizona. Drilling showed some significant mineralization zones:
• 32 meters of 2.78 g/t gold;
• 44 meters of 4.94 g/t;
• 17 meters of 5.18 g/t.
The drilling results were spiced up by an annual information report that came out the next day, causing a significant increase in the share price over the last couple of days of the week. The report described the general situation of the business at the financial year end – December 31, 2010. It didn’t contain any new financial figures though.
