Bid/Ask On The Close

The bid/ask on the close is showing some signs that any average amount of volume moving into the 36¢ price level will kick off the rally as sell-side brokers close off their positions. 407,000 shares are not actually for sale, they are just a stuffed quote laid on by the computer programmes that trade the shares.

Any amount of buying clears out the fog, and the ask crumbles. The very same thing occurred at the breakout from ~25¢ over a year ago. In the same rally, we had Sprott finance the project with a gold based financing in the summer a year ago. We also had a hedge fund 'lose it' and sell their shares. We have permitting issues with Environment Canada that need to be resolved, and the expansion of the project to 700tpd. (the mill processes 400tpd at present.)

Very likely the sell-side brokers doubling down their bet on the short side, not believing in the advance of the gold price, will be faced with the same routine of having to settle their bets before the year is out.