Two days ago the company announced that they are abandoning their Barranco de Loba project, the quality of this ore body apparently was below expectations. There will be some write-offs as a result but on the other side the company will not have to put down another $600.000 to exercise the option that they hold. This project was where the gold might be. At 3967 hectares it is much larger in surface area than the 1287 hectares of the Santa Elena copper project.
What is worrisome is that the stock dropped to a low of 42 cents on relatively high volume. There are clearly motivated sellers coming out of the woodwork. Nevertheless the stock may be getting close to a low.