Nikolay Tomov
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Apogee Minerals Ltd. (CVE:APE), (PINK:AGEEF) Jumps Up on New Assay Results

by Nikolay Tomov Jan 19, 2011
During last session, the stock of Apogee Minerals Ltd. (CVE:APE), (PINK:AGEEF) jumped to new heights upon a fresh company announcement. The disclosed assay results from six diamond drill holes at the Pulacayo deposit in Bolivia simply rushed the shares up. The triumph of the stock was complete with a record trading volume.

Apogee_-_Chart.pngLittle doubt, the 6.28M turnover made APE among the most demanded items on the TSX Venture Exchange (CVE) yesterday. This was not the only remarkable achievement of the stock. During the session, the price went over 13% up, climbing to a new for the last two years high of $0.385 per share. Similar surge was witnessed on the American OTC market too.

Apogee Minerals owns two projects, but most of the company's efforts are presently focused on the development of the Pulacayo-Paca Property, where an intensive diamond drill campaign is going on.

As known from science, diamond drilling is used in mining to probe the contents of known ore or metal deposits and potential sites. During the process, a small-diameter core of rock is extracted and is examined on the surface. Thus, geologists can conduct structural and mineralogical studies of the rock and analyse it by chemical assay.

Apogee_-_Logo.pngIt is risky to foretell the future behaviour of APE shares on the market. Maybe stock researchers need to implement something similar to "diamond drilling" if they want to be more accurate in their predictions. The financial state of Apogee, however, shows that APE will perhaps have a tough time on the market.

The company recorded a negative net income of $286K during the three months ended Sep. 30, 2010, a loss 40% heavier than the one for the same period of 2009. Certainly the $6.5M offering closed at the beginning of December makes the situation much better. Still, Apogee Minerals Ltd. will need more capital to continue the successful development of its key projects.

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