And the message is:
Do not waste your money by drilling your properties.
On Tuesday morning Precipitate Gold (PRG.v) gave us this news release on initial drilling results from its property in Dominican Republic. It included this table of results…
…and as I’ve scribbled on the thing, that hole 5 is a bona fide, real live classic discovery hole which announces the arrival of a new mineralized body of gold to the world. And the market’s reaction to this news?
It couldn’t give a flying fig. The type of news that would have shot a $7m market cap company such as PRG a mile higher just a couple of years ago is completely ignored by the world. So, dear and loving junior exploration stage mining company CEOs, why bother drilling your site? In the world of 2014, not only do you run the risk of ruining your best prospect by finding out the truth, but even if you get lucky and hit something in the style of PRG the reaction will be plain fat zero.
Meanwhile for the rest of us: Contrary bullish signal? Oh yes, you know it’s true.
Disclosure: No position in PRG.v. Never had one, either. That may change.