An exploration-stage company, Source Gold Corp(OTC:SRGL) has just announced that an exploration program for one of its projects has begun. Nothing special, just good news at hand. On the contrary – it is a special PR, and it is a special promotion that tends to follow it. 
The press release came out too late last Friday to have any impact on the stock market whatsoever. A bit over 85k shares exchanged hands, making up for a 5% increase in the stock price, the session closing at $0.37 per share. The point is – it is questionable whether there would be any effect at all. The same logic applies for the Sunday promotion, and there is a simple reason for this.
It was 4 months ago when Source Gold issued a press release. An announcement that was again supported by paid promotions. The interesting part comes when one realizes that what the company announced last Friday was not so different than what it announced on Feb 17th this year:
- Feb 14, 2011 -Source Gold Corp. (OTC.BB:SRGL-News) is pleased to announce it has begun its 2011 exploration program on its U.S. Property, Source’s wholly owned Vulture Peak claims in Maricopa County near the town of Wickenburg, Arizona.
- June 17, 2011 – Source Gold Corp.(OTCBB:SRGL) is pleased to announce the initiation of the Phase 1 Exploration Program on its 23 wholly owned Vulture Peak mineral claims offsetting the historically famous Vulture Mine. [BANNER]
So, the question that comes to mind is – did operations begin back then, or are they really to begin now? Let alone, if indeed, the February announcement remained just an announcement with no actions following it, what is the guarantee that another press release is not to follow around October, proudly stating that Source Gold initiates its Phase 1 exploration program?
On the other hand, it is possible that there have been obstacles which delayed the start of the exploration program. After all, it is the results to follow that would determine where this stock is heading. Yet, using old news over an over again is hardly something that could inspire confidence in investors.
