buying a stock based on a drilling result?

The Gold Report: Should investors ever buy a stock based on a drill result?

Andrew Richmond (principal at geological consulting firm Martlet Consultants in Brisbane, Australia): Definitely, but especially if they have a high-risk tolerance. If they want to get the big payoff, buy after even just one drill result. A series of drill results would be safer, but they've probably lost some of the potential upside. Maybe 1 in 20 exploration companies will eventually pay off. But the payoff for getting in early at the initial drill hit could be 50- to 100-fold. There's a reasonable chance of getting a good return on average.

TGR: You're talking about an intercept in excess of maybe 100m and maybe a few grams of gold.

Andrew Richmond: If I saw 100m at 2 g/t on the first drill hole into a project, I'd be buying.

For the full report: http://goldnews.bullionvault.com/gold-mining-ore-grade-071220121