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Traders see gold in Taseko Mines

Taseko Mines has been falling for the last 10 months, but Friday marked a potential shift in sentiment.

The main concerns has centered on whether development could proceed at its New Prosperity property in British Columbia. The deposit is believed to contain 13.3 million ounces of gold and 5.3 billion pounds of copper, but faced opposition by regulators.

The company is now willing to spending $300 million to protect a local lake, and now the government is willing to accept the project's proposal. Investors interpreted the announcement as evidence that the operations will now proceed.

TGB started moving almost immediately and ended the session up 17 percent to $3.86. Heat Seeker also lit up with heavy buying in the September 4 calls, first for $0.10, but then for as much as $0.45. Volume surged to 7,610 -- more than 35 times open interest.

Some 1,200 September 4 puts were sold for $0.35, which reflects a belief that the stock will hold its ground or push higher into expiration. See our Education Section for more.

Overall options volume was 21 times greater than average in the session, with calls outnumbering puts by 6 to 1.

(A version of this post appeared on InsideOptions yesterday.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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