Gediminas Jasionis
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St. Elias Mines Ltd. (CVE:SLI) (PINK:SELSF) Stock Tries to Recover From a Recent Collapse

by Gediminas Jasionis Jan 13, 2012
4sli_chart.pngSt. Elias Mines Ltd. (CVE:SLI) (PINK:SELSF) stock price hit a 52-week low upon the disappointing announcement. It soon found some support around 75 cents per share which could now results in a short lived bullish rally.

SLI regained 10.7% on Thursday, recovering from a large collapse a couple of days ago. The trading volume remains inflated, meaning many traders are still playing with this and the price could recover some of the big loss with ease if it continues this way.

On Tuesday, the stock collapsed after the company announced unfavorable drilling results at Tesoro Gold Project in Peru. The stock lost a whole 47% after investors jumped off the ship, however, there was plenty of early warning as it trended down significantly during the three sessions before the gap down.

st_elias_mines_logo.jpgWhat disappointed investors were the findings on St. Elias property. Grades greater than 1 g/t were found only over very small lengths, in most holes less than half a meter. The results are available for uncut grades and the management will have to run a resampling program to better evaluate the higher grade intercepts.

This isn't likely to change the results for the better, but gives some hope for those who stayed invested after the news.

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