It appears to be short covering.  Look at how thinly the warrants are traded.  Those who shorted the warrants when they were over 1.50 are still making a killing covering at this price.  If I held those warrants I would be selling into every bid out there because the warrants are so incredible over-priced it is stupid.  Even if the sp goes to $2 in the next three months, there will be no time premium and these will be selling 1.10 when the sp is at $2.  I can not see any realistic benifit of buying those warrants at that price when the sp is where it is at, but the increased risk of owning the warrants is approaching infinite.

A lot of you act as if this is a no brainer, it clearly is not.  They still have not ever generated as much cash in a quarter as they have spent...new debt and private placements have kept this afloat since 2009.  Q2 will be the key for this company.  Like I posted yesterday there is still a chance they can make it out of the mess they are in.  If they hit production goals and stated cash costs then it will come down to how much of a role negative settlements have on reducing the top line.  Need to see at least 8 million in free cash flow.  Just look at their balance sheet and required minimum cash balance under the terms of their new debt agreement, compare that to payments due on their debt.  If they can not make that money from their mine, they have few alternatives- IMO that is why the sp is where it is at.