Silver Spruce Resources Inc (CVE:SSE) (PINK:SSEBF) gained 72.7% over past three sessions but the fun might be coming to an end. The trading volume got significantly smaller over the last session which indicates that the determination of bulls is weakening.
Under the current rally the price is also closing in on a 200 day moving average which is at $0.098 per share. This level is very likely to provide resistance and the choppy price rally might not be enough to break it.
SSE stock value has been increasing since the last couple updates on drilling operations. On December 15 Silver Spruce announced diamond drilling results on the Two Time Uranium Zone and other projects on the Central Mineral Belt JV in Labrador. Silver Spruce holds a 37% interest in these properties. The company found uranium mineralization present to a depth of 500 meters. The highest grade found was 0.15% over half a meter while other findings averaged 0.006% over couple meters.
On December 16 SSE announced updated findings on Pope’s Hill and MRT properties in Labrador. Rare earth element mineralization zones of up to 14.35% were found in three trenches on Pope’s Hill and one trench on MRT.
Silver Spruce will have to restate the results in 2012 as they currently provide percentages of total rare earth elements rather than total rare earth oxides, which is the standard way of presentation in the industry.
Nonetheless, the trenching program has defined significant mineralization zones and identified drill targets to be tested during the winter.
