Seafield Resources Ltd. (CVE:SFF
) (PINK:SRLTF) stock price rallied after the company published an update to their current drilling program.
SFF share price gained 18.5% during Tuesday's trading session carrying a trading volume of 1.9 million, which was significantly heavier than the daily average of only 407 thousand.
On June 19 Seafield announced results of the ongoing drilling program at the Miraflores deposit in Colombia. The infill drilling used to delineate the resources present continues to hit high grade mineralization zones.
Among the top results, one drill hole returned 114.7 meters of 1.89 g/t gold, which was obviously the key reason for the SFF price rally. Another hole confirmed an extension 50 meters below the previously found mineralization zone continuing for 194 meters that held 1.57 g/t gold. The third important hole confirmed an extension of a previously drilled 449 meters length hole that holds 1.29 g/t grade gold. The extension was confirmed 80 meters north of the hole.
These results are very encouraging to the company and might cause a continuing bullish reaction on the market as well. The stock isn't much overvalued either, the market cap is only three times the book value, a decent number for a company with seemingly valuable properties.