Luna Gold Corp. (CVE:LGC) (PINK:LGCUF) stock price rally appears to be settling despite the recently updated resource estimates.
Trading volume topped 4 million on Thursday, which now seems to have been the last kick of the short-term price uptrend. The volume has ever since diminished and the price appears to be going into consolidation. Monday’s trading volume was significantly above the average of 491 thousand, but the price action merely confirmed the support at 65 cents per share and didn’t give any reasons to expect any further price climb.
The price action had been exhibiting increased volatility over the past week and seems to have established itself in a narrow channel between 65 and 70 cents per share. The last two times it went into consolidation it took nearly a month to break further up.
As for the reason behind the last jump in volume – traders had been excited about a significant mineral resource update at the Aurizona Mine which the company announced last Wednesday, December 7.
The newly calculated measured and indicated gold resources now total 78 million tons at 1.26 g/t gold and 15.2 million tons at 1.47 g/t gold. That represents increases of 250% and 79%, respectively, from the previous mineral resource estimate published in January 2009.
