Shares of Power Metal Resources PLC (LON: POW) fell 10.3% today despite the company reporting significant progress from the initial drill programme at its Haneti mine in Tanzania.
The company’s shares have been falling over the past four days despite the miner issuing several positive updates as bullish traders took profits on their positions following the rally from 2p to 3.4p that started in mid-December.
Paul Johnson, Power Metal’s CEO, said: “The Haneti drill programme is progressing well, with approaching 50% of the planned 2,000 metres of rotary air blast drilling now complete,”
Adding:
“Parallel field mapping and ground geophysics have also proceeded well as we seek to build data on the anomalies to drill with follow up diamond drill holes. This drilling on the Haneti project is a highly exciting venture for both Power Metal and Katoro and we look forward to reporting the technical results from this programme over the coming weeks and months,”
Yesterday, Power Metals issued an update on its Molopo Farms project located in Botswana where it is targeting prospective massive nickel sulphide and platinum-group metal mineralisation.
The company revealed that an extensive technical review is currently ongoing following the successful drilling of the first two diamond drill holes to their initial target depth. These positive updates had a muted impact on Power Metals stock price, which continue to fall.
The miner’s shares are currently trading above the 20-day moving average line and could rally higher if the price holds above the MA line.
Traders who missed the initial rally could open new positions above the 2.5-2.6p support level if it holds, however, a break lower would invalidate the trade setup.*
*This is not investment advice.
Power Metal share price
Power Metal shares plunged 10.34% to trade at 2.6p having fallen from Monday’s closing price of 2.9p.