Well folks, something is brewing at GTT, and it is not Tim Hortons coffee. Hard to put my finger on what is happening, as things have been very quiet since the latest drill results. The honest analyst does not like long breaks in news flow (last assay release Oct 10), and frankly, most CEO’s should realize “going quiet” will sink your stock. Furthermore, putting out a release titled “GT Gold Completes 2018 Exploration Drilling Program at Saddle” is not the ideal way to attract investment (hence the stock price drop recently). Very frustrating to see this, especially from a company with such potential. Anyway, what is happening at GTT that requires a trading halt? Let’s look at the possibilities:
- Assays from one or more of the pending drill holes
- Earn-in deal with a Major or
- A significant investment (5 – 9.99%) by a Major, similar to BHP with SolGold
So, what are we most likely to learn this week?
- New drill assays would be well received; most of us expect the next set of assays to be very good. What would high grade assays mean for GTT? It could be a game changer for GTT’s valuation / market cap (see Honest Analysts previous blog on GTT).
- Earn in deal? Unlikely at this point. Most Majors are slow to react to a new copper discovery like Saddle, Majors tend to get involved late in the game (i.e. after a resource update, and at higher valuations).
- Perhaps a significant investment by a major? Possible, but a bit early for this as well. I would expect GTT to hold off for a better valuation.
At this point, I point my money on new assay results. However, not even the Honest Analyst is right every time… Or am I?