Sandspring Resources Ltd. (CVE:SSP) (PINK:SSPXF) attracted investors’ attention after their stock price action went volatile and the recent news screamed of success.
The trading volume on Thursday was 3.1 million, nearly ten times heavier than the average of 315 thousand. SSP stock price rallied up 15.8% under the buying pressure. The rally was a retracement on the previous four days price decline which eventually had hit a new 52-week low at $1.14 per share.
A similar price level was last seen around two years ago and worked well as a support. The price proceeded to go higher after bouncing it thus this time it should be troublesome for bears to push below as well.
The stock price got volatile over the recent week so its hard to say whether the news had any significant influence or not, but Sandspring did have a promising announcement.
On January 30 the company stated they have significantly increased the measured and indicated resources on Toroparu project in Guyana. The new estimates now total 6 million ounces of gold at an average fresh rock head grade of 1.2 g/t. The property also contains around 0.18% purity copper ore. Both grades would decrease after around 5 years of mining.
From this project the company expects to pull in a cash flow of $750 million while having invested on $482 million.
