Nikolay Tomov
7 Vote 0

BonTerra Resources Inc. (CVE:BTR), (PINK:BONXF) Stock Keeps Surging on High Volumes

by Nikolay Tomov Jan 10, 2011
BonTerra_-_Chart.pngFor twenty days now BonTerra Resources Inc. stock (CVE:BTR), (PINK:BONXF) has been steadily advancing on the TSX Venture Exchange. During the last two sessions, this movement has become even more noticeable. Only yesterday BTR gained 16% in value, which was also accompanied by a trading volume beating two times the average.

This surge does not come surprisingly. Last Thursday, BonTerra disclosed an update of its second phase drilling program on the Eastern Extension property. It confirms the high potential of the project. The company's President even manifested how "enthusiastic" BonTerra feels "about continuing to extend the high grade gold zone" on the Eastern property.

Investors seemed impressed by the news and quickly rushed the share price up. The progress was really huge - within half a month BTR has jumped up by 48% and has gone closer to its 52-week high at $0.710.

The surge was driven mostly by developments regarding the fore-mentioned Eastern project, where the extensive drilling is continuing at full speed. In early December, the company announced complete assay results for the already finalized Phase One drilling and commenced Phase Two. BonTerra is currently developing a model for the third phase of the drilling campaign. The company also expects to get a NI 43-101 technical report any minute.

According to the legislation, the NI 43-101 is a strict guideline for how public companies can disclose scientific and technical data about their mineral projects as required by the Canadian Securities Administrators. It is a codified set of rules for reporting and displaying information related to mineral properties.
The future changes in the share price are not easy to predict, but judging by BonTerra's financials the company's managers must put more efforts to secure additional cash.

In the end of August, BonTerra had only $0.37M in cash and $19K in working capital. Although these figures show improvement from the previous quarter, they are far from impressive. The company will need more funds to operate its five properties in Quebec and British Columbia successfully.

Comments (0)

Type the characters that you see in the box (5 characters).

This is a captcha-picture.