Gediminas Jasionis
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Metanor Resources Inc. (CVE:MTO) (PINK:MNNRF) Price Forces Higher with Help of Positive Third Party Reports

by Gediminas Jasionis Aug 31, 2011
mto_chart.pngA couple of third party unpaid reports on Metanor Resources Inc. (CVE:MTO) (PINK:MNNRF) have induced a share price rally that continues to gain strength despite the risk of going to high too quickly.

MTO continues going up on a price uptrend lasting since early August. The rally had one correction amid the month, thus the recent gaps don't look too tense. Nevertheless, such a layout indicates another correction will be coming pretty soon. Furthermore, the stock price will soon hit resistance around 40 cents per share, which might disturb the questionable quality rally.

A catalyst for this extension to the rally were the recently published reports that evaluated Metanor's abilities to pull off gold production targets. Two separate reports were prepared by Industrial Alliance Securities and Market Equities Research Group. Those had the effect of promotional newsletter - one suggested MTO share price of $1.35 when the company enters gold production.

metanor_logo.jpgAs always, traders should be careful when buying based on third party recommendations. The gold sector is currently hot, and that puts a major bias on most stocks related to this precious metal.

Metanor should take a bulk sample in Q4 2011 at its newly refurbished 1200TPD Bachelor Lake Mine & Mill, in Quebec. Production is expected to hit 5 thousand ounces per month by the third quarter of 2012 with expected mine life of up to 10 years.

This all looks promising, but it's still far in the future for the company. The current price rally has little to do with the value of the business in one year and share prices tend to quickly overextend on catalysts, which means it's a risky time to invest.

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