Dallas, Texas 12/31/2013 (FINANCIALSTRENDS) – Smart Rally On Back Of Positive Drill Results
During trading yesterday Exeter Resource Corp. (NYSEMKT:XRA) bounced up by an impressive 4 percent to end the day at $0.54 per share. The rebound in the stock of this mining stock happened in addition to 2.08 percent increase in value during trading in the past one week. The reason for this turnaround is directly linked to the announcement by Exeter Resource Corp. (NYSEMKT:XRA) that it has favourable reports coming out of its exploration activities at its “La Buena” mining layout located in Zacatecas state of Mexico.
Exeter Resource Announces The Findings
The operative part of the press release has explained that, “Since mid-September, initial diamond drilling and recently completed gravity surveys have built on previous work that outlined geological, geochemical and geophysical similarities to other mineral deposits in the area. Results from this recent phase of exploration, support a similar model to Peñasquito and Camino Rojo, and has helped us identify additional prospective drill targets”.
Test Drilling Modalities
The new report, based on whose positive findings the investors have started to once more embrace the stock of Exeter Resource Corp. (NYSEMKT:XRA) was conducted across 25 square km and the results have identify new series of targets. On the back of this positive news, the company is all set to take up drilling in these newly identified zones in the first quarter of FY14.
Exeter Resource Corp. (NYSEMKT:XRA) is a Canada based micro cap gold mining firm. It is HQ in Vancouver and boasts of a market cap of $47.8 million and is still in the development and exploration stage. It owns mines in Chile which are known for their proven reserves of high quality gold in the Maricunga gold district.
Stock and Operational Performance
In the past one year, it has managed to post net loss of 55 percent during trading at the stock market. This loss has been manifested even in the medium and short term where in it has shed close
to 12.7 percent in the past one month and by a staggering 30.6 percent in the past 180 days. At these price points, the stock price has been trading just 10.4 percent above its 52 week high price point of $1.49 per share. The stock has been price bound between $0.49 and $1.49 per share in the past year. Post the news of positive results from the drilling tests becoming public, the investors started to pump in investments into the stock, thus pushing up the demand for the stock. This has resulted in the analysts covering this stock raising their price target for this stock to $1.25 per share in the medium term. This development stage firm has managed to post net sales of $0.7 million in the past 12 months and has incurred net loss of $20.4 million in the same time period.
Prior to the news of good tidings coming its way, Exeter Resource Corporation (NYSE MKT:XRA) had announced in September this year that it would be evaluating a novel approach to develop its proven mine reserves of gold and copper at its Caspiche deposit in Chile. As part of the plan, the development stage firm has been exploring options to commence open pit mining at the surface and then resort to underground mining to get its hands on centrally located higher grade deposits.