Loncor Gold Encounters Positive Drilling Amid Modest Price Dip
2/3/2026, 5:02:17 PM | United States | Africa | Canada
Loncor Gold (TSE:LN) recently reported encouraging deep drilling results at its Adumbi deposit, contributing to stable market sentiment despite a slight 0.7% share price decline. Short interest dropped 14.8% in January, signaling reduced bearish pressure, while analysts maintain a Buy rating with a C$1.70 target.
Loncor Gold's shares experienced a minor downturn of 0.7% on January 29, 2026, closing at C$1.33 after trading approximately 126,890 shares, which marked a 28% decrease from the average daily volume of 175,169 shares. This subdued trading activity followed a previous close of C$1.34, reflecting limited volatility in a market capitalization of C$241.38 million. The stock's 50-day moving average stands at C$1.33, aligning closely with recent prices, while the 200-day average of C$1.10 indicates longer-term upward momentum.
Recent drilling updates from the company's Adumbi deposit, a key asset with 3.66 million ounces of gold resources, have generated positive buzz. On February 1, 2026, Loncor announced multiple gold intersections from its deep drilling program, reinforcing the potential of this indicated resource of 1.88 million ounces grading 2.08 g/t Au and inferred resources of 1.78 million ounces at 2.65 g/t Au. These results build on prior efforts, including a 2021 Preliminary Economic Assessment highlighting an after-tax NPV of US$624 million at US$1,600/oz gold, bolstering investor confidence in the project's viability near the Kibali Mine in the DRC.
Market sentiment appears cautiously optimistic, supported by a 14.8% decline in short interest for OTCMKTS:LONCF to 181,625 shares as of January 15, 2026, reducing the days-to-cover ratio to 1.3 days on average volume of 143,374 shares. Analyst consensus remains at Buy, with an average price target of C$1.70, implying over 30% upside from recent levels around C$1.29-C$1.33. No major negative catalysts emerged in recent coverage, and AI-generated trading signals for late January suggested neutral to positive dynamics.
In the broader context, gold prices have fluctuated amid global economic uncertainties and U.S. policy shifts following President Trump's 2025 inauguration, influencing junior miners like Loncor. DRC regional stability concerns and commodity market volatility over the past few months likely contributed to price consolidation, yet Loncor's low debt-to-equity ratio of 0.61 and current ratio of 1.73 provide a solid foundation. Ongoing exploration without fresh company website releases underscores steady progress without major disruptions.