Day Trader’s Weekend Aftermarket Lounge 18-20 Sep 2020

Originally posted by chuk: ↑

On the subject of gold explorers;
TTM will come out of trading halt on Monday with news that will surprise the market. First a quick note that Canaccord initiated reseach mid week with a 25c valuation based on $114/ resource ounce industry ave valuation guide on their Dynasty project with a very respectful 2.1mill oz at 4.5 g/t. That resource is very high grade being mostly from surface to 100ms so at that grade $114/oz might be too conservative. Its only to Canadian standards yet so the conversion to JORC later this quarter might boost the valuation. Current sp pre-trading halt was only 12.5c for a market cap of $130mill. Plenty of cash on hand and drilling about to begin with big expectations for resource growth through large areas of high grade outcropping veins yet to be drilled and the deposit open and continous at depth below 100ms. My expectations are it will grow with time to over 4mill ounces with ease.
However, the big news and more interesting part for this week is that they haven't previously said anything about another asset they had a 100% interest in - their Jerusalem deposit. They never mentioned it when they took over the assets of a Canadian company recently because it was under a legal dispute and they wanted to make sure they won it back before letting the market know about it.
My strong expectation is that the trading halt was placed to give them time to prepare the news that they have won back that asset and seeing that they have never mentioned it before, I'd expect a bit of a presentation on it.
It will contain 1.2 mill ounces of gold at between 10 and 14 g/t with silver credits at around 100g/t. A potential company maker on its own. It also contains zinc and some lead from my own research.
That will boost their total resources by just over 50% overnight to 3.3mill ounces of gold and increase their average grade to around 6 or 7g/t.
That is a big, very high grade resource for a $130mill market cap.
I can't be sure that is the news about to be released but if anyone read the Canaccord research report as far as around page 23, they would have seen a mention there and I'm pretty sure the company will come to market with it on Monday. It will take the market and almost all of its own investors by surprise so should be a big mover this week. Yes I bought quite a few more late this week after reading the Canaccord report although I had no idea when the company might come to market with that news and nor did Iknow if they would ever win the asset back. The Canaccord report only said it looked promising. I liked the other assets enough not to worry too much about whether or not they would win back the Jerusalem deposit. The wording in the trading halt has me confident that the halt is about this new asset being reinstated.
Should be a very big week for this stock if I'm right. One to watch.

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I'm an investor and short term trader with a few occasional day trades. I've seen a lot of stocks do crazy one day and one week moves lately, sometimes on no news. So I'm interested to hear thoughts from current full time day traders on what a gold stock like TTM might do if it releases unexpected significant news like I described in the post above when it comes out of trading halt, probably tomorrow. Its probably very much guess work and not sure if charts matter on unexpected news but any thoughts would be appreciated.