Originally posted on Smart Money Gains
Bullish price action in spot gold and high-grade copper has resulted in an increased appetite for junior exploration issuers from both institutional and retail investors alike. Improving underlying market conditions, coupled with the seasonal nature of junior exploration stocks presents a lucrative entry point for those in search of exposure to alpha returns.
Over the last century, gold has materially outperformed the general market by a ratio of five-to-one. Gold is up 350% over the past 72 quarters, while the S&P 500 realized gains of only 70% in the same timeframe…
The Smart Money Gains commodity desk has initiated coverage on well-financed precious metals explorer; strategically located in British Columbia’s prolific Golden Triangle region. This company is equipped with a seasoned management team, armed with a track record of success.
This Explorer seems poised to capitalize on the looming bull market in precious metals while it expands upon last year’s considerable discoveries…
The End Of The Equity Bull Market Is Nearing…
Various recession indictors are suggesting a major market correction appears imminent. During this critical time it’s crucial for investors to diversify and de-risk their portfolios by positioning at least 10% of their assets in precious metals. Nearly ten years into one of the longest bull markets in history, with the majority of asset classes appearing dangerously overvalued it is imperative that as many investors begin increasing their precious metals exposure as a hedge against future market risk.
The New York Federal Reserve recession probability indicator spiked to 10-year highs on February 7, 2019. Gold has outperformed the S&P in the 12 months post warning 6 out of 8 times this has happened historically.
There are a variety of ways to invest in gold including bullion, miners and ETF’s but the method that offers the greatest possible returns is investing in gold exploration companies that show great potential for major discoveries.
The World’s Premier Exploration District
The Golden Triangle has long been one of the most prominent mineral exploration districts in the world. Spurred by improving market conditions and material discoveries, exploration activity in the area has been sharply increasing in recent years.
Over the past few years, the Golden Triangle has experienced numerous world-class discoveries. Every indication is that this trend will continue through the 2019 field season, as companies continue to deploy exploration capital into the ground.
March Is When Gold Exploration Stocks Catch A Bid
The share prices of explorers situated in the Golden Triangle are inherently cyclical due to the extreme weather conditions during the winter months in the region. Typically, stocks perk up a few months before drilling commences and perform very strongly during the drill season.
Usually the middle of March, shortly after the conclusion of the Prospector Developers Association of Canada (PDAC) Conference is when these stocks start to heat up. PDAC is the largest mining convention and exhibition show in the world and should create a buzz, and with these catalysts in place the right exploration picks have proven to be extremely profitable for investors.
This Golden Triangle Explorer Is Poised For Big Gains In 2019…
One company who will be looking to leverage their success from last year is Golden Ridge Resources. With continued bullish price action in underlying commodity prices, Golden Ridge is again mobilizing on their 100% owned Hank Project.
Golden Ridge Resources
Market Cap: $9,107,000
Shares outstanding: 79,191,834
Treasury: ~C$1,700,000
Chaired by prolific mine finder Larry Nagy, co-credited with the nearby discoveries of the Snip and Eskay Creek mines, and led by young up-and-comer Michael Blady, Golden Ridge has built a team with a history of success in the Golden Triangle and abroad.
Golden Ridge deployed over C$4,000,000 exploring their Hank property since 2015, completing nearly 11,000m of diamond drilling in the process. Golden Ridge also completed several comprehensive geophysical and geochemical surveys on the accompanying ground. In 2018, Golden Ridge was credited with one of the years major discoveries in the Golden Triangle on their 100% owned Hank project.
The Hank Project 2018 Discovery
The Company discovered the makings of a sizable Cu-Au-Ag porphyry headlined by a discovery hole of 327-meters grading 0.31% copper, 0.35 g/t gold and 1.94 g/t silver in drill hole HNK-18-001. Golden Ridge followed it up with an even more impressive 319-meters of 0.34% copper, 0.42 g/t gold and 2.20g/t silver in hole HNK-18-013. This discovery was particularly exciting as it was an original discovery by the company dating back to a geochemical survey completed over the zone during the 2015 field season.
2019 Exploration Campaign
All the assay results and geological data from the 2018 drill program will be paramount as the company looks to expand on their 2018 Williams and Boiling Zone (HNK-18-010: 20.00m of 11.63g/t Au and 13.8g/t Ag) discoveries. With geological similarities to Imperial Metal’s Red Chris deposit and GT Gold’s Saddle North discovery Golden Ridge is looking to advance the project to the next stage.
The Companies geologists believe the broad intervals of intense potassic alteration with strong bornite and chalcopyrite mineralization indicate the presence of a large alkalic Cu-Au-Ag porphyry at depth. IP chargeability data collected in 2018 indicate that only the fringes of the porphyry have been drilled with the system wide open to the North and East.
4 Reasons this stock is primed for growth
Experienced management team with a documented history of success in the Golden Triangle; Two major discoveries made in 2018; positive drill results this summer will again cause a material surge in GLDN’s share price; Catalysts in place for continued price appreciation of gold in 2019; and, The cyclical nature of the Golden Triangle stocks offers a great opportunity for investors that acquire a position early in the cycle.
Bottom Line
Last year GLDN went from a $0.10 to $0.55 on over 200M shares traded during the exploration season. The stock has retreated in recent months following typical seasonal cyclicity trends of Golden Triangle explorers trading at $0.12.
This price range offers an excellent entry point into the stock to take advantage of another exciting summer season of exploration in the Golden Triangle.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.
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