Gediminas Jasionis
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PMI Gold Corporation (CVE:PMV) (PINK:PMVGF) Stock Is Settling Down

by Gediminas Jasionis Oct 19, 2011
6pmv_chart.pngPMI Gold Corporation (CVE:PMV) (PINK:PMVGF) nearly doubled in price over the past three days and continues to gain more upper ground supported by a recent fundamental improvement.

Initially, PMV stock price shot up 60% on Friday after the company announced their gold resources to have nearly tripled on Obotan Gold Project in Ghana. Following the 270% increase, the company should now have 1.22 million ounces of measured, 2.00 million ounces of indicated and 1.29 million ounces of inferred resources on the property. 76% of resources are found within the main Nkran deposit.The update could allow completing the pre-feasibility study by the end of 2011.

The stock now trades with a 96.5% premium, and experiences only minor fluctuations. The update brought the share price above $1.00 for the first time in 5 years of trading. Friday's trading session is also notable for the trading volume of 14.8 million which was the heaviest recorded in the history of PMV stock trading. The trading has slowed down since, which causes price consolidation in this situation.

pmi_gold_logo.jpgSome of the results were not include in the latest update. The company has made additional 75 holes and drilled 18.7 thousand meters, the results of which should be described in Q1 2012 resource upgrade.

The company retained a cash position of $21.5M as of 30 September 2011, which allows them to proceed with the pre-feasibility study without raising a concern.

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