BullMarketRun.ca

Welcome to our site, or at least the initial version of it!  BMR has been online for two years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus very much on the Gold market and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on small and undiscovered junior resource companies, mostly in the Gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Gold traded as high as $1,887 overnight but turned decidedly lower shortly after 3:00 am Pacific…as of 7:45 am Pacific, the yellow metal is down $25 an ounce at $1,845 after hitting a low of $1,822…Silver is off 75 cents at $41.59, Copper has retreated 11 cents to $4.03, Crude Oil is $2.48 lower at $86.57 while the U.S. Dollar Index continues to show strength and has pushed decisively through the 76 barrier…it’s up two-thirds of a point at 76.88…President Obama’s American Jobs Act speech last night contained no new bold ideas to stimulate the economy…it was essentially a 2012 campaign kick-off address and a re-packaging of “Obama’s Greatest Hits” which certainly haven’t worked up to this point…a small number of measures, including payroll tax cuts, make sense and deserve bi-partisan support but the bottom line is that this is a President who has a love affair with the sound of his own voice and has failed miserably on the economic front…he has simply lost credibility on the jobs issue…he made one statement last night, though, that we do agree with 100%…”Some of you have a different theory on how to grow the economy“…Obama made this much-anticipated jobs speech last night but never even mentioned the word “entrepreneur” once during the first half of that speech (he referred to “entrepreneurs” twice in the last half)…the United States has a growth deficit as much as a fiscal deficit…the key to creating growth is to appeal to the incredible inherent entrepreneurial spirit and genius of the American people that goes back to the founding of this great nation…Ronald Reagan, undeniably one of the greatest Presidents in American history, understood and exemplified that entrepreneurial spirit and was able to inspire the country out of a deep economic crisis in 1981 and 1982…even Bill Clinton, a moderate Democrat, appreciated the need to deregulate and get government off the backs of American business…Obama, who comes from the far left of the Democratic Party, almost seems like a foreigner who doesn’t really understand America…his speech last night was more like a lecture that was telling Americans that government is the solution, that government is “your partner”…he has had a Democratic Congress for 24 out of 32 months in office, so he certainly can’t complain about an “obstructionist” Congress – he had his chance during 2009 and 2010 and made the pitch that by bringing in large “stimulus” measures and expanding the role of government, he could could get unemployment to 8% or lower…he has engaged in class warfare, prompting him to even say last night that “this isn’t class warfare”…groups on his target list include the “wealthiest” of Americans (those making $250,000 or more per year) and the oil and gas industry, just to name two…American businesses aren’t hiring, in part, because they face numerous burdens including an uncertain regulatory environment…now, compare Obama’s speech last night to Reagan’s Inaugural Address January 20, 1981…some of Reagan’s remarks were as follows (emphasis is ours):

“In this present crisis, government is not the solution to our problem; government is the problem. From time to time we’ve been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price.”

“It’s not my intention to do away with government. It is rather to make it work – work with us, not over us; to stand by our side, not ride on our back. Government can and must provide opportunity, not smother it; foster productivity, not stifle it.”

“Those who do work are denied a fair return for their labor by a tax system which penalizes successful achievement and keeps us from maintaining full productivity.”

“The crisis we are facing today does not require of us the kind of sacrifice that Martin Treptow and so many thousands of others were called upon to make. It does require, however, our best effort and our willingness to believe in ourselves and to believe in our capacity to perform great deeds, to believe that together with God’s help we can and will resolve the problems which now confront us.”

– President Ronald Reagan, January 20, 1981

Obama is in Richmond, Virginia, today, pitching his American Jobs Act on Day 2 of his unofficial re-election campaign…next year, when unemployment remains at 9% or gets even worse, he’ll blame Congress for not enacting his American Jobs Act…he stated last night that “millions of Americans watching right now don’t care about politics”…unfortunately, last night was all about politics for this President…if “Obama” were a stock, it would be a great short right now…one big advantage of having this President in office, however, is that Gold will ultimately blast through $2,000 an ounce and take many Gold stocks with it…

G7 nations are meeting in France over the weekend…France has called for a coordinated response from the Group of Seven nations after anxiety in the markets over Europe’s debt crisis, though differences between the economic problems facing the United States, Britain and euro zone states are complicating the task…Federal Reserve Chairman Ben Bernanke yesterday warned that quick deficit reduction may hurt the U.S. recovery and reiterated that the central bank later this month will consider steps to bolster growth and spur hiring….the FMOC meets September 20 and 21 and there seems little doubt it will introduce new stimulus measures after bringing “QE2” to an end in June…analysts say it’s most likely the Fed will shuffle the duration of the securities it holds, replacing shorter duration holdings with longer duration Treasurys…

The CDNX, as of 7:45 am Pacific, is off 3 points at 1801…being a Friday, news is scarce today but things should heat up next week…a lot of exploration news is expected over the next several weeks and that has the potential of giving the CDNX a nice lift…the TSX Gold Index touched a new all-time high of 455 this morning, a 29% increase from the June 16 low…Richmont Mines (RIC, TSX), one of our favorites among producers, hit a record high of $12.10 this morning – just 6 cents shy of John’s $12.16 Fibonacci target which he gave quite a while ago…he’ll do an updated chart on RIC in the near future…RIC has gained a whopping 71% in just one month…much of the reason for that increase has to do with continued positive exploration news out of Wasamac, which is why we’re also so bullish on Visible Gold Mines (VGD, TSX-V) – the most active company in the Wasamac area besides Richmont…next week, during our visit to northwest Quebec and Rouyn-Noranda, we’ll be explaining the geological importance of what’s developing at Wasamac and in the immediate area where VGD is getting positive early results from Wasa Creek as well as Wasa East, two promising land packages on either side of Richmont’s Wasamac Property…in our view, the likelihood of another significant deposit in the general area between Wasamac and Francoeur has to be considered strong given this rich geological environment that has clearly gone under-explored over the years…Wasamac has become much bigger than even Richmont probably expected, and that has to force geologists to come to the conclusion that the potential of this general area is a lot greater than previously thought…to its credit, Visible Gold Mines has become very aggressive around Wasamac as they seem to “get” the big picture that IS unfolding there…the chance of a discovery for VGD is very real, just like it was for GBB at Granada when we first introduced that play in late 2009…meanwhile, we’re also bullish on Cadillac Mining (CQX, TSX-V) which of course has the Wasa Creek/Wasa East/Lucky Break and Cadillac Break option with VGD in addition to its strategic 100% owned 7 claims adjoining the northern boundary of the north-dipping Wasamac deposit…Cadillac’s very modest market cap of $4 million gives it strong upside potential (near-term as well as long-term) and those 7 claims are going to come into play for this company in one way or another…the CQX chart shows the stock is on the cusp of a breakout and given the action in VGD and the bullish fundamentals of the overall Wasamac situation, the greater probability in our view is that CQX will break out in the very near future…it’s currently down half a penny at 14.5 cents…below is John’s chart update for CQX…

Adventure Gold (AGE, TSX-V) is unchanged at 57 cents…it holds another property we like a lot in northwest Quebec that the market hasn’t fully appreciated yet – Pascalis-Colombiere which is immediately adjacent to Richmont’s Beaufor Mine just east of Val-d’Or…Richmont has made no secret of the fact it’s looking for another potential producing property in the general area and it seems Pascalis would be a nice fit, though RIC will certainly wait until AGE’s 43-101 resource estimate on Pascalis is released later this year…based on strong Phase 1 drill results (initial Phase 2 results are pending), it’s our belief Pascalis is a classic situation where a former producer was overlooked…Pascalis includes the past producing L.C. Beliveau Mine that Cambior extracted nearly 170,000 ounces from between 1989 and 1993…we’ll be looking at Pascalis in some detail next week…we suggest our readers perform due diligence on Cascadero Copper (CCD, TSX-V)…more on CCD next week…

Gold is bouncing back after yesterday’s sharp drop…as of 9:00 am Pacific, the yellow metal is up $42 an ounce at $1,859…Silver has gained 94 cents to $42.49, Copper is up 2 pennies to $4.15, Crude Oil is ahead 61 cents at $89.95 while the U.S. Dollar Index has gained half a point and is now at resistance at 76.00…what was impressive yesterday was how well the Gold stocks held up as the metal dropped below $1,800 intra-day…the TSX Gold Index was down as much as 15 points yesterday but recovered all of its losses while the Venture Exchange erased a minor intra-day 8-point loss…reports from Tripoli this morning stated that Libya’s central bank sold 29 tons of Gold in the spring so Moammar Gadhafi could pay salaries…that’s about $1.4-billion U.S. and about 20% of Libya’s Gold reserves, according to Reuters and The Associated Press…Qassim Azzuz, Libya’s new central bank chief, said the regime sold the bullion to Libyan traders during the uprising that toppled the government…

Advanced economies will barely grow in the second half of this year, the OECD (Organization for Economic Co-Operation and Development) predicted today in a significant downward revision to its previous forecasts…presenting updated growth estimates for rich-world countries, Pier Carlo Padoan, the OECD’s chief economist, said that quarterly growth in the second half of 2011 would average less than 0.2% a quarter, an annualized rate below 1%…in its May Economic Outlook, the organization thought second half G7 growth would average just over 0.5%…the Paris-based international organization revised its previous view in favor of interest rate hikes and recommended that central banks should loosen monetary policy further if “signs emerge of the weakness enduring or the economy risks relapsing in recession”…

The Canadian economy is projected to grow at an annualized pace of 1% in the current quarter and 1.9% in the final three months…that compares to 0.4% in the United States, no growth in Japan, 0.4% in France, 0.1% in Italy and 0.3% in Britain…Germany’s economy is projected to contract by 1.4% in the fourth quarter…the outlook for Germany is particularly ominous given that it’s Europe’s biggest economy and has been the major player in the bailouts of its weaker neighbors…

German Finance Minister Wolfgang Schaeuble said today that the situation in Greece was “serious” and the country would not receive new aid until it met the fiscal conditions set out for it by its international lenders…”Ladies and gentlemen, the situation is serious in Greece,” Schaeuble said in a speech in the Bundestag lower house of parliament…”At the moment the troika mission is suspended…there can be no illusions here…as long as this mission cannot confirm that Greece has fulfilled the conditions, then the next aid tranche cannot be paid…there is no wiggle room here”…

U.S. jobless claims rose slightly last week with the less volatile four-week average increasing for the third straight week to 414,750…President Obama delivers a much-anticipated jobs speech to Congress this evening but unfortunately he’s a couple of years late…Obama lacks credibility on the economic front or a bold plan encompassing broad-based tax and regulatory reform that would create a healthier environment for the private sector to do what it can do far better than government ever could – create jobs and wealth…

A survey by the Canadian Payroll Association on the financial health of the country’s workers has found that a majority of Canadian employees are living paycheck to paycheck and would be in financial difficulty if their pay were delayed by even a week…the article was in this morning’s Globe and Mail…the survey also found that 40% of Canadians now report they expect to retire later than they had previously planned, acknowledging they are not saving enough for retirement…the main reason for low savings is that most workers are living “close to the line”, the CPA concluded, with 57% reporting they would be in difficulty if their pay were delayed by even a week…that number jumps to 63% for workers aged 18 to 34 and to 74% for single parents…

The CDNX is up 9 points to 1800 as of 9:00 am Pacific…news flow in this market has picked up significantly today and we’re looking into numerous situations…Spanish Mountain Gold (SPA, TSX-V) was the volume leader in very early trading this morning…SPA has a strong chart (see John’s analysis in Tuesday’s Morning Musings) and a promising Gold deposit (low-grade but high tonnage) in central British Columbia…a respected group is also at the helm of this company, so we believe its prospects are very well – particularly given our view that Gold will push past $2,000 an ounce during the fourth quarter…SPA is currently up a nickel at 85 cents on CDNX volume of 1.5 million shares…

Visible Gold Mines (VGD, TSX-V) enjoyed a powerful day yesterday, climbing through resistance in the upper 30’s on strong volume and closing at 40.5 cents…it’s off 2 pennies through the first two-and-a-half hours of trading this morning but any weakness should be embraced given how bullish the technicals and fundamentals are at the moment…it’s important to emphasize that VGD’s 100-day moving average (SMA), which has been in decline since February, is now beginning to reverse to the upside – just another indication that VGD has really turned the corner…consider it to be technical confirmation that the fundamentals with this company have changed significantly for the better (Wasamac area, Joutel)…the Fibonacci level of 51 cents that John shows is not a price target, as we don’t give price targets at BMR, but merely a theoretical point at which the share price could pause or react over the near-term based on technical analysis…ultimately, VGD could head much higher than 51 cents but where the share price goes of course will depend entirely on exploration news and drill results…the white candle that John refers to in the chart below requires confirmation either today or tomorrow…

Adventure Gold (AGE, TSX-V) has an impressive chart at the moment as well…volume has picked up considerably in AGE and the stock gained 4 pennies yesterday to close at 55 cents…it’s currently unchanged at 55 cents after touching 57 cents this morning…we’re very bullish on the company’s Pascalis-Colombiere Gold Property near Val-d’Or and initial drill results from the Phase 2 program that started in late May are pending…Pascalis is an intriguing property that includes the former producing L.C. Beliveau Mine, and we’ll be reviewing Pascalis in detail during our upcoming visit to northwest Quebec beginning early next week…we posted a chart on AGE just the other day but John saw some significant technical developments yesterday, so below is an updated version…

Currie Rose Resources (CUI, TSX-V) is up a penny at 19.5 cents…Trueclaim Exploration (TRM, TSX-V) came out with a positive update on the Scadding Property this morning, including new drill results, but the value-drivers for CUI at the moment are the Sekenke and Mabale Hills Projects in Tanzania…drilling is underway at Sekenke, a large land package with outstanding potential, while drill results are pending from the Sisu River and Dhahabu properties at Mabale…core visuals were highly encouraging as the company reported August 24…Wildcat Silver (WS, TSX) continues to be a play to keep a close eye on…the company released solid results this morning for 8 additional holes completed at the Hermosa Property in Arizona…an update to the existing resource and preliminary economic assessment is expected to be released sometime during the fourth quarter…WS got as high as $1.87 (its 50-day SMA) following the news but is now unchanged for the day at $1.78…the rising 200-day SMA just above $1.50 is the supporting moving average…a company we’re intrigued about that we’re continuing to explore in more detail is Cascadero Copper (CCD, TSX-V)…we suggest our readers check it out…CCD has a lot on the go including a significant presence in Argentina with some highly prospective ground there…CCD is currently up a penny at 18.5 cents…we’ll have more on CCD by next week…

Gold is taking a hit today, not surprisingly, after failing to push through resistance yesterday…as of 7:45 am Pacific, the yellow metal is down $72 an ounce to $1,802…for an understanding of this, we once again refer our readers to John’s chart that was first posted Sunday in our Week In Review and again Monday in a separate article on Gold…yes, the fundamentals for Gold remain extremely bullish but technically it’s overbought at the moment and this requires a period of consolidation to set the stage for a push to $2,000 and beyond which we believe is likely to occur during the fourth quarter…

Chart Comments: The “Big Picture” of the Gold price shows there has been a lot of volatility during the past 4 weeks since it broke above the inner resistance channel line.  The price reached a new resistance level, retraced and is now  attempting to reach the previous high.

Over the immediate to short-term, I’m cautious with regard to the Gold price.   The RSI shows Gold very overbought and the price gradient since July1 is clearly unsustainable. Last week’s volume dropped slightly and the buying pressure remained constant. The +DI component of the ADX trend indicator peaked at a very high level around 50 and has since retraced and created a divergence with price. This is very significant because +DI measures how strongly the price moves upward. The inner resistance channel line is now support, so if the expected retracement and consolidation breaks below this line the Gold price could easily retrace to the channel support line (green).

– John, Sept. 4

If indeed John’s analysis proves correct, and he has been extremely accurate regarding Gold, then the coming weeks could provide some incredible opportunities with regard to the producers in particular that have jumped significantly since mid-June…we doubt they’ll drop a lot but certainly enough to make them more attractive than ever…overall, the TSX Gold Index is looking very bullish and any move down to about 400 or so (from yesterday’s close of 440) will present a Golden buying opportunity in our view…any weakness is a gift…making big money in the market often requires having the courage to buy when others are selling (and of course vice-versa)…

Silver is off $1.20 to $40.76, Copper is up 8 pennies to $4.13, Crude Oil has added $2.37 to $88.39 while the U.S. Dollar Index is off one-tenth of a point to 75.75…the greenback has strengthened recently but certainly hasn’t broken out in any way, at least not yet…below is a quick chart update from John on the U.S. Dollar Index…

The Dow and the TSX are both higher today but the CDNX has slipped 7 points to 1783 as of 7:45 am Pacific on the drop in Gold…despite the volatile markets recently and the reluctance of many investors to embrace a lot of risk, some of the juniors continue to do extremely well which proves an important point:  There is always money available looking for a home in the best plays in this very selective market…on a bad overall market day yesterday, for example, Visible Gold Mines (VGD, TSX-V) was up 2 pennies to 37.5 cents…it has some great projects on the go and will continue to do very well in our view…another one of many examples is Spanish Mountain Gold (SPA, TSX-V) which hit a new all-time high yesterday of 84 cents…we’ve been following SPA since last year and its Spanish Mountain Gold deposit in central British Columbia is low-grade but has robust economics with Gold at $1,500 or higher…the renowned Dr. Morris Beattie is leading a prefeasibility study for Spanish Mountain which is expected to be completed by the end of the first quarter of next year…if you’re a believer in higher long-term Gold prices, as we are, then Spanish Mountain should be a strong performer over the coming months…the share price has shown slow but steady progress and that trend is likely to continue, though SPA accelerated to the upside yesterday with a “breakaway gap” as it shot through resistance in the low ’70’s…as of 7:45 am Pacific, SPA is up 2 pennies at 80 cents…John updates the chart below based on yesterday’s 78-cent close…

Goldex Resources (GDX, TSX-V) has pulled back 2 pennies to 8.5 cents after releasing results from the remaining five holes of its 12-hole Phase 1 drill program at its El Pato Gold Property in Guatemala…each hole intersected zones of mineralization including an average grade of 15 g/t Au over 4.5 metres in hole #16…nothing spectacular in this morning’s results but the 12-hole program is a good start to proving up historical non-compliant resources at El Pato and potentially increasing them significantly…drilling starts at GDX’s El Arco Property in Mexico, a Gold-Silver target, next month…GDX remains an interesting play for the long-term and its market cap of $8.25 million is quite modest…Adventure Gold (AGE, TSX-V) is up 3 pennies to 54 cents, putting it slightly above its 100-day SMA for the first time since early July…we’re expecting news from two of AGE’s projects in the near future – Pascalis-Colombiere and Dubuisson…Pascalis is our favorite and we’re looking forward to reviewing it in more detail when we’re in northwest Quebec next week…Gold Bullion Development (GBB, TSX-V) is unchanged at 38 cents…what we suggest watching out for technically with GBB is a reversal in both the 50 and 100-day moving averages- that hasn’t occurred yet but it could be getting close (within a few weeks)…Colossus Minerals (CSI, TSX) reported outstanding results this morning from its 75%-owned Serra Pelada Property in Para, a province in northern Brazil, but the market was anticipating good numbers…SPD-113 intersected several ultra high-grade subzones within a continuously mineralized intercept of 74.40 metres at 31.17 g/t Gold, 3.02 g/t platinum and 6.78 g/t palladium in the central mineralized zone (“CMZ”)…these results confirm the continuity of and extend the high-grade CMZ in the first area to be underground bulk sampled in 2012…in addition, SPD-115 returned 11.65 metres grading 57.28 g/t Au, 6.58 g/t platinum and 7.66 g/t palladium…a detailed geochemical program is nearing completion on the entire concession package and new targets have been generated…more assay results are pending…CSI is fighting some technical weakness and went into retreat after touching $6.80 this morning (it has declining 50 and 100-day moving averages just above $7.00)…it’s currently down 3 pennies at $6.39 but this is a stock to keep on one’s radar screen for the long-term as we’ve mentioned before…

Gold inched slightly past its August 23 all-time high overnight, for a new record price of $1,922.20 on the Spot Market, before backing off…as of 8:45 am Pacific, the yellow metal is down $28 an ounce at $1,872…the retreat coincided with technical resistance and the surprising news from the Swiss National Bank that it plans to set a minimum exchange rate for the franc against the euro…the franc, viewed by investors as a safe haven, has soared against the euro in recent months which is not good for Switzerland’s export-based economy…the statement from the SNB was decisive and aggressive…”With immediate effect, it will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20,” it said…”The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities”…the last time the SNB carried out a similar measure, in October 1978 when a floor for the now-defunct deutschmark against the franc was introduced, inflation soared, peaking at over 7% in 1981…the Swiss abandoned the policy in 1982…the move by the Swiss has to be considered long-term bullish for Gold though it has initially declined on the news…if the franc is no longer quite the safe haven it used to be, Gold has to be considered even more of a safe haven…Silver is off 80 cents to $42.07, Copper has declined 7 cents to $4.05, Crude Oil is off $1.94 a barrel to $84.51 while the U.S. Dollar Index has climbed one-third of a point to 75.64…the greenback is obviously still the best of a bad bunch…investors’ attention will be focused this week on growth concerns in the United States and Europe as well as the euro zone’s growing sovereign debt crisis…six out of the 10 biggest economies in the world are expected to show little or no growth during the third quarter…global gross domestic product is around $62 trillion with roughly $28 trillion of that coming from the United States, Japan, Germany, the UK, France and Italy…President Obama, who appears to be on track to eventually join the ranks of the unemployed, delivers a jobs speech to Congress Thursday but this is a President who has clearly lost the confidence of the business community…there won’t be a much-needed broad-based overhaul of the U.S. tax and regulatory system until after the 2012 elections when Obama’s smile and ability to deliver a scripted message, which fooled so many people in 2008, won’t save him…

The CDNX is faring slightly better than the Dow and the TSX today but is still down 24 points at 1786 as of 8:45 am Pacific…Spanish Mountain Gold (SPA, TSX-V), which has an advanced project we like a lot in central British Columbia, has finally broken through resistance around the 70-cent level…SPA is currently up 8 cents to 79 cents…it climbed as high as 84 cents this morning, a penny better than the previous all-time high where there is clearly some additional resistance…SPA should find new support in the low 70’s and that would likely be an attractive entry point for newcomers…Visible Gold Mines (VGD, TSX-V) is up a penny at 36.5 cents…VGD appears to be garnering much more attention in Europe as volume was 180,000 on the Frankfurt Exchange today with the stock trading up 6% the last time we checked…the average daily volume for VGD this year on Frankfurt has been around only 20,000, so the pick-up in volume recently on this Exchange is interesting and confirms that VGD is attracting fresh interest…John has prepared an updated chart on VGD this morning that is very revealing as his TA shows the stock appears to be preparing for a major move through resistance around 40 cents…

Goldex Resources (GDX, TSX-V) is performing well again this morning…GDX was the most active stock on the CDNX Friday (6+ million shares) and climbed as high as 12 cents this morning where there is resistance…it’s currently up half a penny to 10.5 cents on CDNX volume of 2.6 million shares…more assay results are pending from the company’s El Pato Property in Guatemala…initial results last month included 30.48 metres grading 5.04 g/t Au in hole #10…Adventure Gold (AGE, TSX-V) is up a penny at 52 cents…we’re very bullish on the company’s Pascalis-Colombiere Gold Property near Val-d’Or…it’s also immediately adjacent to Richmont’s (RIC, TSX) Beaufor Mine…Phase 2 drilling at Pascalis started more than three months ago and initial results are pending…Phase 1 drilling was highly encouraging and confirmed the existence of parallel zones with significant mineralization surrounding the former producing L.C. Beliveau Mine…Cambior mined nearly 170,000 ounces at L.C. Beliveau between 1989 and 1993 but missed the bigger picture that seems to exist there…

During our visit to northwest Quebec beginning next week, we’ll be taking a much closer look at Adventure Gold’s (AGE, TSX-V) intriguing and very promising Pascalis-Colombiere Gold Property which covers 637 hectares in the eastern portion of the highly productive Val-d’Or-Malartic Gold district.  This area has produced more than 25 million ounces of Gold.

One of the best ways to pick a successful Gold stock these days is to find a company that’s enjoying exploration success at a significant, under-explored former producing property in a friendly jurisdiction (look, for example, at what Richmont Mines is doing at Wasamac).  Adventure Gold has been getting excellent results from Pascalis and all indications are that this property, which includes the past producing L.C. Beliveau Mine, has much more potential than Cambior realized when it carried out mining operations there between 1989 and 1993 (1.8 million tonnes grading 3.2 g/t Au from surface to 300 meters was mined at L.C. Beliveau for total production of 167,000 ounces).

Adventure Gold started a 5,000-metre Phase 2 program at Pascalis more than three months ago and initial results are expected very soon.  Given the numbers from Phase 1 including 33.1 metres grading 4.8 g/t Au (Hole #20) and 16.2 metres grading 6.7 g/t Au (Hole #17), we’re looking forward to seeing what AGE may have discovered in Phase 2.  This round of drilling should give the company a much better understanding of the continuity of grade and structure at Pascalis.  With the discovery of numerous parallel zones, a new model for this deposit is taking shape and it appears to be an exciting one.   A NI-43-101 resource calculation is in progress and should be ready prior to year-end.  The property is adjacent to Richmont’s Beaufor Mine, creating speculation that Pascalis – in the event of a very positive resource estimate – could be a profitable addition to the Richmont portfolio.  Richmont has made no secret of the fact it’s looking to acquire another potential producing property in the general area.

In the current bullish Gold environment, any company that has an advanced project such as Pascalis has a valuable asset on its hands.  Adventure Gold actually has several high quality projects which is one of many reasons we like the company so much.  Pascalis, though, is the star of that group in our view and it could be a significant value-driver for AGE between now and year-end. We encourage readers to perform their own due diligence on this up-and-coming property.

Technically, the stock is looking quite bullish as John shows below.  AGE has out-performed the CDNX this year and closed Friday at 51 cents, just a few pennies below its 100 and 200-day moving averages.

Note: John and Jon hold positions in Adventure Gold (Terry does not).

We’ve been following Goldex Resources (GDX, TSX-V) with some interest since mid-July when the stock was trading around 7.5 cents.  The company is working on what seems like a promising Gold property (El Pato) with historical resources in Guatemala, and it also has an interesting drill-ready Gold-Silver project in Mexico (El Arco).  On Friday, GDX was the runaway volume leader on the Venture Exchange with more than 6 million shares changing hands.  It closed up a penny-and-a-half at 10 cents, giving GDX a market cap of $9.75 million.  Since June there has been a lot of volume on this stock which has helped to soak up some of the 50 million shares purchased at a nickel in January’s private placement.

On August 17 Goldex reported an impressive drill result from hole #10 at El Pato – 30.48 metres (from 97.53 to 128.01 metres) grading 5.04 g/t Au with mineralization consistent throughout the length of the hole.  It included a 9.15-metre section grading 12.38 g/t Au.  Holes 8, 9, 12 and 14 also intersected mineralization though to a much lesser degree.  Two exploratory holes (#2 and #17) did not return significant results.  Nonetheless, broadly speaking, Goldex is off to a promising start at El Pato but upcoming results have to be good to propel this stock significantly higher.

Assay results are pending on 5 holes which is giving the market something to speculate about at the moment.   Additional bulk sampling is also taking place at El Pato in an attempt to further demonstrate the nature of available mineralization which includes high-grade surface zones as well as epithermal “pinching and swelling” of deeper veins.  The Cerrito West zone at El Pato has consistently showed high levels of near-surface mineralization with an average bulk sample grade of 28.64 g/t Au as reported by the company May 18th.

The 12-hole drill program was designed to prove up average grades as indicated by the UN and Guatemalan government drill programs in the late 1980′s and 90′s as well as to map and explore the extent of the veins and structures present.  The company reported that hole #10 contained the typically expected mineralization present at El Pato while other holes have allowed for more precise mapping of the vein structures.

From a technical standpoint, Goldex looks promising (this is still a highly speculative stock) but buying pressure must increase and trading volumes need to remain high.  John updates the chart below. Note how the 50-day moving average (SMA) reversed to the upside last month, a positive sign.

Note: Both John and Jon continue to hold positions in Goldex Resources.

The TSX Gold Index bottomed out at 352 June 16 and has risen 23% over 55 sessions since then.  The Venture Exchange, meanwhile, is down 4% since that time, so clearly the producers are more in favor at the moment.  However, in this kind of Gold environment, some select juniors are doing extremely well and will continue to do so.  Going forward, we’re expecting a wave of mergers, takeovers and property purchases in this industry as cash-rich small, medium and large producers scramble to find ways to increase their production profiles.  We’re in for some exciting times.

An important factor holding back the share prices of many producers over the last few years has been escalating costs due in large part to high oil prices – energy is such a significant part of the cost structure for these companies.  With oil prices down sharply due to a slowdown in economic growth in North America and Europe, and Gold going in the other direction, the earnings outlook for producers has turned extremely bullish.  It’s essential in our view to have exposure in one’s portfolio right now to some of the best producers (small, medium or large) and accumulation on any weakness in these stocks makes sense.

The TSX Gold Index has the potential to post some spectacular gains in the coming months.  John updates the chart below.