Pershing Gold (OTC: PGLC), a new company focused on gold exploration and development, saw its stock drop today even after recent news of the company completing its work commitments on the mining claims and private land next to Relief Canyon Mine in Nevada. In April 2012, the company acquired a lease agreement with Newman USA. Since then, the company has drilled 23 holes to perform geophysical surveys. The company’s work commitment helped advance the Relief Canyon Mine toward production, as well as make new discoveries on the land surrounding the mine. Pershing Gold has spent $3.3 million on these properties so far this year.
Of the 23 holes the company drilled, results were received on 12 of the holes on July 12, 2012. The results were positive, showing extension of a mineralized zone and showing thick gold zone intercepts. The results of the 11 remaining holes should be available later in the year.
After closing at $0.37 last night, the stock opened at the same price this morning. It dropped down to $0.33 and settled at that price at closing time. It posted a $0.04, or 10.8%, loss. The stock has been on a downward trend since Wednesday. The company saw a 52-week high on March 28, 2012, when the stock price peaked at $0.9190. Within days, it quickly plummeted to $0.49. On April 4, 2012, the stock climbed up a bit to $0.5750 and has not reached that high since then.
Despite the loss, volume was more than double the daily average. More than 906,000 shares were traded today, beating the daily average volume of 349,109 shares. Volume peaked on March 28, 2012, with more than 7.3 million shares traded. Volume exceeded seven million shares the next day as well, and then dropped below one million shares. The last trading day to reach one million shares was on May 10, 2012.
An article posted on July 12, 2012 touts Pershing Gold as a mining industry all-star. Although relatively new, the company has already made significant gains in the area of gold exploration. There are claims that the stock could grow significantly in the future. The company saw a lot of buzz from the penny stock newsletters in late March 2012 after the stock gained 30% in one day. One newsletter touted Pershing Gold’s stock as a “rocket ship.” Can this stock rocket back up to its 52-week high, or perhaps set a new high?
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