There's an exception to every rule and while many mineral explorers and miners have been beaten down in the last couple years, such is not the case for Kerr Mines Inc. (TSX:KER), with the stock rising over 1,000% since a January 2016 low of 2 cents. Shares even hit a multi-year high at 26.5 cents in June before consolidating back to a low of 19 cents yesterday.
Shares are rebounding on Tuesday from that low, positioning Kerr as a top performing TSX-listed stock on news that the Toronto-based company initiated the first phase of the underground drill access mine at its Copperstone Mine project along the Walker Lane in Arizona. In this phase, Kerr plans to complete about 1,200 feet of new exploration drift, a general mining term for a passageway following a vein of ore. Once completed, the drift will give Kerr the opportunity to better define and likely add to the resources as it prepares a pre-feasibility study.
Access to the new drift will utilize existing mine workings between the so-called Footwall and Copperstone zones and extend mine access to the southeast, along the Copperstone Zone's strike. Kerr is looking to prove the upside exploration potential for its 12,000-acre project that has historic production of 500,000 ounces of gold.
The strategic placement of the access serves multiple purposes, including to build upon promising drill results in the Footwall Zone, increase confidence in the Copperstone Zone along strike while increasing its down dip extension and providing access for potential mining in the future.
Bay Street players are apparently liking the news, driving shares up by 2.5 cents, or 13.2%, to 21.5 cents with a couple hours left in the trading day after hitting a high of 22 cents in early trading. Technical traders will surely take note that the range from 21.5 cents - 22 cents has been a tough area of resistance, followed immediately by the 50 day moving average at 22.5 cents. A move through those points just may signal this stock is ready for the next leg up in its long-standing uptrend.
