Yesterday’s session will surely remain as the most memorable one for the managers of Sirios Resources Inc. (CVE:SOI), (PINK:SIREF). The stock managed to jump up into a higher trading range unseen for almost an year and a half and to set new price and volume records on two markets. This came as a consequence of the released results from the surface drilling on the company’s Aquilon project in Quebec. The reported assay values confirm the high grade gold mineralization of the property.

Sirios_-_Chart.pngOn both the Toronto Venture Exchange (CVE) and the American OTC market the shares deposited new 52-week highs on record for the company volumes. On the CVE market, the stock was furiously demanded with the turnover beating 21 times (!) the average one. Yesterday, SOI was the third most actively traded item on the Venture Exchange. The stock climbed to its 2-year high at $0.130 per share and finished 69% above the previous day close.

Actually, over the session SOI formed a long legged Doji, which implies that there is a great amount of indecision on the market despite the relatively high volatility during the day.

The skies, however, do not look so bright for Sirios Resources Inc. The filed with SEDAR quarter reports indicate quite embarrassing data about the financial condition of the company. At the end of September, Sirios has practically no working capital at disposal, has reported a net loss of $116K, and a negative operating cash flow of $287K. It has accumulated a deficit of over $12.4M. As stated in the financial statements, all these conditions “raise doubt regarding the Company’s ability to continue as a going concern”.

Sirios_-_Logo_2.pngThat is why it is very hard and risky to claim that the current surge will last for long, though some indicators such as MACD foresee a bullish sentiment in the near future. Besides, Sirios has more than 10 projects requiring substantial financing, which the company currently does not have at hand.