Gediminas Jasionis
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Torex Gold Resources Inc. (TSE:TXG) (PINK:TORXF) Operational Update Pushes Stock to Challenge Resistance

by Gediminas Jasionis Nov 3, 2011
5txg_chart.pngTorex Gold Resources Inc. (TSE:TXG) (PINK:TORXF) stock price ended up in the intriguing position after the company published news on drilling operations. Bulls are viewing the stock to see if it can break out above the sturdy resistance it currently challenges.

Price appreciation stopped after touching the 200-day moving average at $1.70. Stock added 9.87% over the last session and has all the chances to break above this resistance.

Trading volumes are gradually increasing over the whole week, finally bursting up significantly over the past two sessions. 6.84 million shares changed hands on Wednesday, which was 5 times the average of 1.33 million - a very positive bullish sign.

The increase in share price directly relates to the recent Torex news on expansion of their main gold deposit.

torex_gol_logo.jpgOn November 1st, the company published update on drilling operations stating they continue to encounter high grade gold mineralization at the El Limon deposit in Mexico. The results are preliminary and will be incorporated in a resources estimate that should be completed by March 2012.

The most significant grades of newly found mineralization zones included averages of 18 g/t over 8 meters, 5.1 g/t over 23 meters and 6.4 g/t over 10.6 meters in three different boreholes.

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