The majority of the fieldwork in the Golden Triangle takes place over the summer and fall, which leads some investors to believe that there is no news flow over the winter and thus no reason to own shares of the GT companies. Investors who heed that notion risk missing some great opportunities.
For many of these companies, news flow continues through the winter and that news can generate big gains as illustrated in the stock charts.
Even the basic assays from drilling and other fieldwork conducted in September and October are likely to be reported in January and February. Beyond those basic assays, companies are increasingly carrying out further and more sophisticated analytical testing and other evaluations on samples. Those results can also generate news and drive share prices right through the winter. In addition, news at the corporate level can have a big impact on share prices: Acquisitions, mergers, joint ventures, investments from large companies or high-profile investors.
At this time, there is an enormous amount of news that will be flowing from the Golden Triangle over the next few months. First off, a large portion of the basic assays from the summer exploration programs are yet to be reported. Equally importantly, there will be other news. For example, development is already underway at the Premier mine and that work will ramp up with the final signoff on the permits, which is expected shortly. News of another mine headed to production will boost investor interest in companies across the region.
It is also highly probable that there will be further investments from large mining companies. Beyond the direct cash injection, these investments will certainly boost investor confidence in the particular company and will further bolster acceptance of the Golden Triangle within the global mining industry, leading to higher share prices.