Noront Resources Ltd. (CVE:NOT) (PINK:NOSOF) is favoring bulls lately – the stock price is actively breaking up as a result of technical line-up and promising news.
NOT stock price spiked up another 5.1% on Thursday in a rally lasting for over a week now. The day was significant because of the trading volume which was nearly 4.8 million. That was the heaviest trading volume recorded over a one year period and was way above the average 486 thousand per day.
The stock has been very active since it broke above the resistance at 54 cents per share. This breakout was further fueled by promising update on one of the deposits at McFaulds Lake project.
On November 1st, the company announced additional chromite results from McFaulds. 16 holes drilled on Blackbird deposit which.revealed grades up to 42.81% chromium oxide at lengths in tens of meters.
The discoveries also allowed to expand the deposit further north and bodes well for a future increase of underlying resource estimates. The Noront plans to complete their preliminary assessment on the property by Q2 2012.
The results are promising but it is not clear how much the resource estimates will actually improve when the program is finished. This means the share price increase is likely to be temporary as there is no actual material improvement yet.
