Colorado Resources falls to earth
Colorado Resources (CVE:CXO) is down almost a third today after releasing unremarkable drill results.
Last month the junior gained 600% in seven days after releasing drill results for its Northern Rok property, close to the Red Chris mine development. On April 25 the company (CVE:CXO) said its first drill of 242 m showed 0.63 % copper and 0.85 g/t gold.
Today the stock is down to 85 cents, about a 30.59% drop as of mid-day on the TSX after releasing new drill holes not as good as April. Drill hold NR13-003 showed 0.21% copper and 0.55 g/t gold. Drill hole NR13-004 showed 0.40% copper and 0.50 g/t gold. Here’s the table from the company’s news release.
The company maintains it is encouraged by the drill results, cautioning that the exploration program is still early days and planning an expanded drill program.
Inca Kola News puts the results into perspective:
Expect geologists to find these rocks very interesting and full of potential. To be fair, the gold kicker really isn’t that bad. To be doubly fair, this project is by no means dead. To be triple fair, a serious exploration campaign will never hit pure wonderholes all the way through. But still . . . it was a lot of hype for just one hole. Hey, that’s what Canada does.