Cedar Mountain Exploration Inc. (CVE:CED) (PINK:CDRMF) stock had an outstanding trading session as buyers poured in lured by intriguing news on gold findings.
On Friday, CED stock had the highest trading volume for the past four years. The share price finally bounced its multi-year low of 6 cents per share and ended the session with a 7.7% increase in value.
The news helped to elevate the stock price which was dwelling near an ultimate support and had barely traded in a lethargic consolidation for the past 1.5 months.
On Friday, November 18, Cedar announced to have identified new gold targets on Kelly Creek project in Alaska, the only property they own.
This was part of oil sampling done in 2011. The drilling was done on South Fox prospect on the project and identified broad zones of gold mineralization. Additionally, two gold-in-soil targets, on Moose and Jaeger prospects, were identified for further exploration.
The results suggest that a large scale gold mineralization area should be present at Kelly Creek, but the company still needs to do a lot of work to confirm it. To date, 45 holes were drilled on Kelly’s property totaling 4.8 thousand meters.
The company has $3.15 million in working capital and is well prepared to continue exploration efforts. The recent news might have a lasting positive effect on the share price since the current market cap of $3.3 million is below their book value of $5.65 million.
