Unsurprisingly, Empire Resources has come out with a positive statement about its copper-gold project. Less desirable is a capital raising...however... in a rising copper-gold price market, who cares. I'd throw money at it in this type of market. The resource to date is 1Mt at 1.78% copper and 0.78g/t gold. I would have been satisfied if they were running just 1%Cu, so this is high grade, high value material. The prospect of drilling up to 21 conductors offering similar grades is appealing, so I see a lot of potential in this stock, which based on Google Finance's listing of 94mil shares, gives them a market capex of just $7mil. That is very low for a future mine.
I alluded to the prospect in my last post that it might be a heap leach operation...that is not correct I think unless its a bioleach. We'll see. My memory did not serve me well.
In the current market I think this stock is going to capture the imagination of traders, so I would not be surprised to see a move in the stock, despite its capital raising. Of course, it will depend on strong copper prices and the nature of the issue. Technically, they look like breaking the 7.5c resistance, and I suspect they will build support at that level, with the issue around 7c. They might even thrown in an option...let's wait and see.
The prospect of exciting drilling results ought to capture the imagination of the market, so I can see the stock returning to its old highs of 12c. See Google Finance for chart. See also this latest news.
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