Another Explorer: Great Drill Results, Worrisome Timing
Be excited AND cautious with this one
With gold/silver explorers, timing is a minefield. It’s easy to succumb to fear of missing out (FOMO) after some great drill results cause a previously unknown explorer’s price to spike. But that can be a bad time to buy because the initial enthusiasm is frequently followed by a long stretch of profit-taking/consolidation that reclaims much of the initial spike. Here’s the chart for Dolly Varden Silver: Note the late 2022/early 2023 run, due mostly to a series of good drill reports. Then note that — despite continued exploration success — the stock fell by nearly half and has languished in a trading range ever since. Buying towards the end of that initial run was clearly a bad move.
So it’s with a bit of anxiety that I add this explorer to our list. Its recent drill/sampling results have been so good and its stock price so strong that, yes, I’m afraid of missing out.