Even though the hype around the previous promotions of Lone Star Gold, Inc. (OTC:LSTG) proved to be largely based on fiction, there are yet new promotional efforts.
Yesterday the company issued a press release claiming the first stage drilling on the La Candelaria gold-silver project would commence that very day. At the end of the session LSTG closed up 10.61% at $0.99 with a volume of 1.3 million shares.[BANNER]
The results from this first stage drilling are expected by mid-December, so for now the objective view remains that LSTG has no proven or probable reserves on the property.
Another fact is that Goldcorp denied the claims of a possible buyout, put forward by previous promoters. Still, in the new promotions such a scenario is mentioned once again.
While long term investments in LSTG at this time could prove a very unsound decision, the liquidity of the stock offers opportunities for short term profits for those who stay objective and know how to play.
Traders should be very careful with their due diligence. The current price of LSTG gives it a market cap of approximately $114 million. Such valuation will be very questionable until LSTG provides some information about the actual reserves on its properties.
