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Canamex investors take profits after 290% leap

7/19/2012 3:06:51 PM | Elizabeth Walters

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The junior’s Chief Financial Officer told Stockhouse that results for the six-hole drill program are expected at intervals of one per a week.

After Wednesday’s 290% stock market leap, investors in Canamex Resources Corp. (TSX:V.CSQ, Stock Forum) took some profits off the table Thursday, sending the stock down 8% in late morning trading.

Shares of the Vancouver-based company jumped to 39 cents this week after Canamex released drill results from its Bruner Gold project in Nevada.

Investors were impressed by a 1.6-metre intercept in a single drill hole that returned 135.2 grams per tonne of gold.

In an interview with Stockhouse, Canamex’s Chief Financial Officer, Robert Kramer said the company is expecting to release all of the results from an initial drill program before the end of August.

The Bruner project is comprised of 2100 acres in central Nevada. Currently, Canamex is in the exploration phase on the property, having just completed a six-hole drill program.

“The next step is to obtain the results from all six holes, so that way we’re in a position to interpret what we have and then plan accordingly from there,” Kramer said. “We certainly anticipate that there will be more drilling on the property.”

As for the stock pop Kramer said “the market does what the market does.”

He said the share price rally, is in part due to Nevada’s long history as a significant gold producer and “I think a lot of the investors are pulling back from some of the other areas where there is the potential for geopolitical risk, which is not present in Nevada.”

Once the results are available from the remaining five holes the company plans to “move as quickly as possible”.

“We are in a position on the property, from a permitting stand point, to move aggressively,” Kramer said.

Canamex is a mineral exploration company with a focus on world class deposits. The company’s gold exploration projects include Arkanka North Gold Project, Guyana, South America and Bruner Gold Project, Nevada, United States.

On Thursday, Canamex was trading for $0.36 a share. The company has a market cap of $24 million, based on 66 million shares outstanding. The 52-week high and low was $0.39 and $0.07 respectively.

ABOUT THE AUTHOR

Elizabeth Walters

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