Download now: How To Invest in the Coming Bitcoin Boom

Shares of Junior Miner Explode After Rare Earth Discovery

Investors Gain Nearly 180%

Written by Luke Burgess
Posted January 23, 2010 at 3:31AM

Share prices of First Gold Exploration Inc. (TSX-V: EFG) skyrocketed as much as 180% after the company announced a new high-grade discovery of rare earth elements and lithium at its Éléonore Property in Northern Québec.

The company reported that recent grab samples from an area between two of First Gold's previous lithium and rare earth element discoveries - contained very high grades of lithium, rubidium, tantalum, beryllium, niobium, and gallium.

The announcement of the new discovery sent the stock soaring from $0.34 to a high of $0.95. Share prices cooled off by the end of the day to close at $0.68 - a 113% gain.

2010_first_gold_exploration_efg_chart_quote.jpg

The news even sparked near-panic buying. Investors traded 9.3 million EFG shares by the end of the day - a whopping 4,000% increase over the stock's 3-month average daily volume.

First Gold's press release stated the company was compiling the results of the drill hole that should be released in the coming days.

As the price for rare earth elements and lithium continues to march higher, new discoveries — like those being made First Gold's Québec property or the $273 billion in rare earth elements found in Greenland — will continue to pay off for investors

Luke Burgess
Investment Director, Hard Money Millionaire

Comments

Buffett's Envy: 50% Annual Returns, Guaranteed