Back on October 28th, I posted a chart of Chesapeake Gold and posed the question: Ready to Run? Since that time, Chesapeake broke back down into the triangle. This week ended with Chesapeake blasting out of the triangle and on up to the $6 level. The acquisition of American Gold by Chesapeake has been accepted by shareholders and the BC Supreme Court. Approval from the TSX is the final step towards completing the transaction.
The new Chesapeake Gold will have about $40MM in cash, a huge portfolio of properties, two active joint venture projects (Christopher James Gold/La Cucaracha and Pinnacle Mines/La Calavera), the largest undeveloped gold project in Mexico (Metates, at 10MM+ ounces) and a project close to Reno that is attracting interest (Talapoosa).
Notice the resemblance to the XAU daily chart. Bizarre!