Granted, not all the intercepts were exiting but, as the headline reads, 98m of 3.25 g/t Au. That not at all shabby. Stock is up 7 cents on the day so far at 0.67.
Now Sphere Resources, with their Poker Flats property directly bordering the railroad property (in fact, the border is a mere 75 meters from where GSV drilled these sets of holes), released this today in response to the drill results. Its funny because they released this in response to the last GSV news release on Aug.13 where the company detailed that they are to resume drilling on their Railroad project (funny....I never read that they had stopped drilling). IR team department at its best.
Anyway, the stock has been beating bouncing between 0.03 and 0.035 most of the day. A big gain, especially since less than a month ago shares could be picked up between 0.005 and 0.01.
I've been following this stock for a little while out of curiosity. They have a number of good properties but have never been able to find money to drill them. GSV keeps hitting good grades closer and closer to the Poker Flats border and, after an email correspondence with management, roughly $250,000 more is required to earn their interest. Not a lot of money. In this correspondence, I was told that management has been paying basic fees, which was a main concern of mine.
I have some shares in this, as stated in a previous write up I did, and I sold some off today at 0.03 (using TD) to derisk my position. That being said, I believe, based on a few basic observations, that there is more wind in this movement regardless of any financing news or not. Take a look at this graph.
1. Remember when the guy on BNN touted this stock as a potential large winning trade, well...thats where you see the 10million in volume on the chart, which sets of heavy support at 0.02-0.025. Another 4.7million was traded the following day at the same 0.02-0.025
2. Today, following the GSV news release 4.3million shares have (so far) traded hands between 0.03 and 0.035 (a large block of 411,000 shares crossed at 0.03 early on). Just look at the volume, the comparative volume of the past six months have been nothing compared to these recent trades between 0.02 and 0.035.
3. Sure, there are enough people trading pennys, but I would imagine a healthy chunk of the investors are investing on the hunch that the financing comes though and a drill program can be complete. Don't let the 10 million number fool you, if they could raise even just 500,000 they are off the races (remember the poker flats, the property of interest after todays news release only requires 250k more to earn in).
Will it happen?.....maybe so, probably not. But either way, I'm pretty confident this upswing has more life in it still.
.....On a unremarkable story
Spartan/Sphere/whatever are trying to earn in an initial 51% on the poker flats from currently suspended, soon to be delisted, Mexivada (a company which has been halted and subsequently bumped down to the NEX for not filing financials on their "diamond" project in Africa almost a year ago). Ran, if you could call it that, by Richard Redfern, Mexivada has essentially been a real estate company in the sense that the extent of their corporate activities have been optioning out properties to other penny stock companies and padding their wallets with the initial option payment and whatever shares may be thrown in with the deal. The TMX group gives 12 months after being suspended to file financials. Share-holders haven't heard a peep since the suspension and have been left holding a bag of worthless shares (that they can't even sell)
Now, for Sphere/Spartan to earn an initial 51% they need to spend 500k in exploration, then they can earn in for another 24%. Problem is, they have only 3 months more until the agreement expires. Further, the railroad fault zone can only be drilled until mid november, cutting down their time further.
I was curious, and emailed Malcolm Stevens inquiring about exactly how they plan on continuing as a going concern with only 6k in the bank. He told me that directors and management are paying listing/release fees out of pocket, and that they currently have about 250k in exploration on the Poker Flats. If they could actually raise the money, its quite possible as 150k can go to the CSMAT which only requires 5 days to complete. I actually believe that if they could ever get financing it could be a good project
Some times I'm amazed at exactly how much I know about this story...its funny and depressing at the same time, perhaps time could have been spent better. Maybe I should apply for a IR position at Sphere resources