After a slightly difficult week, the FTSE 100 managed to hold above the key 6,850 support zone by some distance. The situation was helped by the US market recovering its composure in the wake of the President Biden CGT threat – it goes with voting for a Democrat, and Bitcoin more or less holding the $50,000 zone.
AIM listed metals exploration and development company Power Metal Resources (POW) delivered an exploration update in respect of Red Rock Australasia, a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields. POW shares the project with Red Rock Resources (RRR). Further to the Company’s announcement of 3 February 2021 announcing the commencement of exploration on recently granted exploration licences a sampling and mapping programme has been undertaken. Sample analysis results are expected to be received in the coming weeks. Shares of POW rose 8%.
Sometimes traders are happy to look a gift horse in the mouth, a point which has been well illustrated with reference to Landore Resources (LND). Here, even though the company literally is enjoying a bonanza, it would appear that short term flippers are still heading for the exit. Nevertheless, the shares did end the week up 5% in the wake of reporting Bonanza grade gold at 432.0 grams/tonne gold over 0.32 metres earlier in the week. Perhaps the company’s message has not been clearly delivered to date.
Another stock where the bulls have been struggling to make headway continues to be Bitcoin app specialist Mode Global (MODE). Here the shares continue to be one of the few recent IPOs to be underwater, despite apparently bumper percentage data regarding the company’s progress, and even the appointment of a Chief Investment Relations Officer at the end of last month. It will be interesting to see what good work Ariane Murphy can deliver to get Mode shares on the front foot versus 47p currently.
Although Professor Whitty and friends have managed to string the pandemic along as much as possible, and may be counting on the appearance of the Indian variant /mutant to keep them in the public eye a bit longer, the strong April sunshine has so far kept COVID-19 at bay in the UK. Nevertheless, our health and safety / Project Fear culture which was rampant even before the pandemic has managed to keep COVID tester Novacyte (NCYT) in business, and is likely to for the foreseeable future. This point was underlined by the near 20% rebound in the shares as the company announced an update on the progress of its near-term COVID-19 research and development (R&D) programmes. Novacyte said it was expanding its UK commercial infrastructure and had been included in a Public Health England National Framework Agreement.
Wishbone Gold’s (WSBN) maiden drilling programme at Red Setter, Paterson Range was initiated as the company said that a Programme of Works has now been formally submitted by its consultants Terra Search to the Western Australian Government’s Department of Mines for up to 100 drill holes to depths of 300 metres for a total of up to 30,000 metre of drilling over a 48 month period. The drilling is targeting multiple highly prospective magnetic targets spanning an area covering a 3km x 1km area. Wishbone said the prospectivity of Red Setter for gold and copper was greatly improved with its recently flown high-resolution magnetic survey, as the strength and size of the magnetic targets far exceeded its original expectations in terms of the understanding of the gold/copper target’s geometry and prospectivity.
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