Luna Gold Corp. (CVE:LGC) (PINK:LGCUF) stock price continued to gain value supported by the recent update on the drilling program at Aurizon gold mine.
LGC share price added another 3.7% on Monday extending the existing uptrend close to important resistances. The accompanying trading volume was very significant with 2.5 million shares, more than five times the average of 430 thousand.
This increase in trading activity was caused by updated findings on Aurizon mine in Brazil. Luna extended the strike length and mineralization on the Piaba gold deposit.
The company has reported assay results from a recently completed drilling program. Significant intercepts from 22 holes yielded 2.46 to 3.87 g/t over lengths of 50 to 60 meters and one hole even returned 33.63 g/t over 13 meters.
The company expects these new findings will help to significantly increase their resource estimates which will be renewed during Q4 2011. Samples from another 40 holes are still waiting to be assayed. Results should be available within 15 days from now.
The news strengthened the uptrend lasting from mid-October, but it has already approached several resistance zones which might put a stop to further appreciation. Passing above 57 and 58 cents per share will be crucial for bulls.
