Rover Twins Historic Holes
I’m of mixed emotions about where we stand in the gold and silver resource market. Traditionally we have two tradable lows a year, one in the summer and the other at the end of tax loss silly season in December. I was spot on when calling for a correction but I have been hoping it would extend to a DSI of 10 or below. While the DSI on gold hit a low of 16 on October 29th and silver hit a low of 17 on the 28th we are some distance from my goal. That said, it sort of feels like a tradable bottom to me.
On the other hand, the stock market seems to have just rolled over and should it extend into a full crash mode as I suspect may happen it will take gold, silver and resource stocks with it. But when the unwashed mob discovers what hyperinflation and banks closing really means, we are going to have a gold rush greater than any in history.
So now that I have both possibilities well covered, I can pretend I got it exactly right in the next six weeks no matter what the markets do. I feel relieved.
The companies that will go up the most in terms of percentage moves are the tiny juniors selling for sub-five million. There aren’t that many around now, many have made nice moves. One of the companies I follow just released results from a drill program designed to twin historic holes. That company is named Rover Metals (ROVR-V) and they just announced assays from the first few holes of a nine-hole program.
Hole CL-20-01 from their Cabin Lake project in the Northwest Territory of Canada reported 7.94 g/t Au over 22.01 meters. Hole 02 was a miss. Hole CL-20-03 showed 14.75 meters of 6.45 g/t Au. Six more holes have been drilled and the assays will be released as they are returned from the lab. The entire program was but 550 meters of drilling and intended to verify historic results and to determine the structure of the mineralized zone.
The opportunity in buying tiny juniors with low market caps is that they can shoot higher on any news or any interest from the public. The danger of course is that they blow their share structure sky high before they locate something interesting.
Rover is an advertiser. I participated in the private placement that makes me biased. Do your own due diligence.
Rover Metals Corp