Looks like the fact that the promoter behind DELGF was involved with AKSEF has a lot to do with the plunge today.
03/20 (DJ) =Delgratia Mining - Market -2: More Drill Holes Needed>DELG
Delgratia Mining Corp. (DELGF) announced results of the fourth drill
hole from its Josh gold prospect in Nevada Thursday, which affirmed the
strong finding of the first three drill holes, analysts said.
However, the company has yet to release enough assay information
about the geology of the site between the drill holes to accurately
ascertain the site's reserves and the grades, said independent mining
analyst David Shaw.
Observers also attributed the sell-off in Delgratia's stock to an
article in the Vancouver Sun newspaper published Wednesday. The article
centers on promoter Terry Alexander, Delgratia's former president, and
notes that Alexander was president of Calgary-based Arakis Energy Corp.
(AKSEF), when Arakis' stock first soared on news about an oil project in
Sudan and then plummeted when a financing deal for the project fell
through.
Delgratia spokesman Kyle Washington said Alexander is currently a
consultant for the company working on special projects. He also holds an
unspecified number of Delgratia shares, Washington said.
Alexander, though, isn't involved in the Nevada property, Washington
said.
Shaw cautioned that regardless of Alexander's reputation among
investors, Arakis has a legitimate project in Sudan. Earlier this month,
Arakis and its partners signed a final agreement with the Sudanese
government for a large oil production and export pipeline project, with
capital costs estimated around $l billion.
1:59 PM |
