Often it is impossible to work out the rhyme and reason of the markets.
As I discussed in my previous post, North American specialists are now aware of XAM and have participated in the recent CR. It seems like there was a lot more demand than supply.
For retail investors, they can now see a pathway for more drill holes given the $15m CR, at a good price, and this reduces risk of a dormant investment over the ST until funds were found.
Likewise, the project itself seems to have advanced considerably in the last couple of weeks in terms of confirming depth extensions and thus potential analogues and comparisons with Cascavel and Wafi Golpu .... the size of the potential prize is very big.
The fact that the deposit is from surface, has a mining permit, has water rights and has no NIMBY issues must also be attractive.
And Cu is now trending up and a key metal for the "electrification of the world" theme along with other green metals ... and of course gold is always attractive.
The apparently very tight register means that when a story starts to get out (and Beaver Creek will have contributed to that) the SP can gap higher as there is no supply to meet demand.
But ... there is no rhyme or reason why the market 'discovered' XAM only recently whilst you were smart enough to work that out some time ago
The trick is to see if this move has follow through ...
Cheers
John
XAM Price at posting:
27.5¢ Sentiment: None Disclosure: Held
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