It wasn’t a great start to the trading week for the Canada based mining firm Gold Basin Resources Corporation (OTCMKTS:GXXFF) as it saw its stock come under significant selling pressure and thereby ended up with a decline of as much as 4.5%. That being said, it is perhaps also necessary for investors to keep in mind that on Monday the company actually made a key announcement.
Market Action
On Friday, GXXFF stock fell 4.51% to $0.1862 with 300 shares, compared to its average volume of 2k shares. The stock has moved within a range of $0.1862 – 0.1862 after opening trade at $0.1862.
New Drilling Program Commences at Gold Basin Project
The company announced that the 10,000 metres drilling initiative at its Gold Basin oxide gold project had commenced. The project, which is owned in its entirety by the company, is located in the north western part of Arizona.
It goes without saying that it was a major announcement from the company but it did not lead to much enthusiasm among investors and that possibly led to the selloff in the stock. However, at the same time, it should be noted that the company had already identified gold at the site last year and the results from its drilling activities are going to be interesting.
However, it does remain to be seen if the stock can make a recovery of sorts in the coming days and wipe out the decline that it recorded yesterday.
Key Quote
Michael Povey CEO commented:
“We are excited by the potential of the new drill program, especially with the inclusion of the Stealth and PLM deposits. The 2021 exploration program provided a better understanding of the mineralisation at Cyclopic, which in turn showed us how that correlated with what we can see in the historic drilling results at these nearby deposits. Consequently, we are of the opinion that Stealth and PLM have excellent potential to add significant mineralisation to what is being identified at Cyclopic.
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