Gold traded in a narrow range overnight but has strengthened over the past hour…as of 6:00 am Pacific, the yellow metal is up $8 an ounce at $1,664 and appears to be forming a bullish pennant on the charts ahead of Ben Bernanke’s important Jackson Hole speech tomorrow…Silver has jumped 12 cents to $30.85…Copper is up 4 pennies to $3.46…Crude Oil is off slightly at $95.38 while the U.S. Dollar Index is off one-tenth of a point at 81.44…
Commodity Super Cycle Still Intact – Rogers
The commodity super cycle still has legs as supplies remain constrained, according to renowned analyst Jim Rogers…asked on Mineweb.com’s Gold Weekly podcast if the recent slowdown in many metal prices and a number of high profile comments about the end of the bull market, Rogers said, “this is nothing more than a blip…the bull market will continue until a lot of supply comes on stream and the problems since 2008 ensure not a lot of supply is coming on stream”…Rogers said, usually after eight or nine years of a bull market, companies begin to bring new sources of supply online…but, this time around, those that were beginning to think about new supply in 2008 were hit by the financial crisis and many such plans were shelved…this has continued into 2012 where a number of the world’s top miners, including the likes of BHP Billiton, are slowing expansion plans…”All these guys are delaying or suspending or cancelling new supply which is bullish…until the supply comes we’re not going to have an end to the bull market and, certainly in agriculture, my goodness, inventories are near historic lows, we have serious shortages of everything in agriculture developing, including farmers”…
Loonie Continues Bullish Advance
Rogers’ comments make perfect sense when one examines the commodity-sensitive Canadian dollar…the recent strength of the loonie has been overlooked…interestingly, the loonie’s 200-day moving average (SMA) has reversed to the upside since being in decline since last fall – the previous such reversal came in mid-2009 and ushered in a powerful advance in equities (there has been a close correlation between the loonie and the Venture Exchange)…below is an updated chart from John that shows a strengthening bullish trend which supports the case for weakness in the U.S. Dollar…
Today’s Markets
Asian markets were weak overnight, though China’s Shanghai Composite recovered from a 20-point loss to close unchanged at 2053…European markets have recovered slightly from their lows after a successful Italian bond auction…stock index futures in New York as of 6:00 am Pacific, meanwhile, are pointing toward a mildly lower open in New York…the U.S. economy grew “gradually” last month, as improving retail and other service-sector activity was weighed down by softening activity in manufacturing, according to a collection of anecdotes released by the Federal Reserve yesterday…the so-called Beige Book said activity expanded gradually in July and early August across most regions and sectors, compared to the previous assessment of “modest to moderate” growth…the report, based on information collected on or before August 20, showed 6 of the 12 Fed districts with “modest” growth and 3 with “moderate” growth…the previous Beige Book showed 3 districts growing at a “modest” pace and 5 growing at a “moderate” pace…
Some fresh U.S. economic data just came in at 5:30 am Pacific…jobless claims were unchanged last week, holding at a seasonally adjusted 374,000, according to the Labor Department…economists polled by Reuters had forecast claims dipping to 370,000 last week…the four-week moving average for new claims rose 1,500 to 370,250…meanwhile, the Commerce Department reported that consumer spending gained 0.4% in July, climbing by the most in five months but in line with expectations, while income increased 0.3%…
Republican Convention – Romney Delivers Acceptance Speech Tonight
Paul Ryan launched a powerful attack on Barack Obama in his first major address as the Republican vice-presidential nominee last night, charging the president with abdicating responsibility for the economy and taking the nation on an “adventureless journey from one entitlement to the next . . . where everything is free but us”…Ryan’s speech included consistent references to hard work, initiative, and maintaining the American dream while he also skillfully managed to soften his image…his selection heralds the emergence of a new generation of Republican leaders willing to reshape the main pillars of a social safety net that has been in place since the 1960’s…Mitt Romney, meanwhile, delivers the most important speech of his career this evening as the Republican nominee for President, and it’ll be critical for Romney to connect with the American people in a way he has not been able to up to this point…
Obama Will Win Re-Election – Sorrell
The CEO of the world’s largest advertising company, Sir Martin Sorrell, told CNBC this morning that while he’s impressed with the Republican ticket, he believes Obama will win re-election in November “I still think President Obama, who is a superb campaigner, will win the election and I’m not sure it will be quite such a tight margin as people are predicting,” the WPP CEO stated…Sorrell said he found Romney’s choice of Paul Ryan as vice presidential running mate “very interesting” and a very positive one for business…cutting government spending and the deficit is the issue that Sorrell says could cost the Republicans the election, however, even though he believes the GOP is right to propose such cuts…“talking about deficit reduction in the way that the Republicans are is not a vote winner, it’s not a vote gatherer,” Sorrel said…
Venture Exchange
The CDNX shed 13 points yesterday to close at 1229 and a test of support at the rising 20-day moving average (SMA) of 1218 has to be considered a strong possibility as John has been indicating in recent charts…
Everton Resources (EVR, TSX-V)
The modest pullback in GoldQuest Mining (GQC, TSX-V), which we view as an accumulation opportunity, has cooled off the other Dominican Republic plays including Everton Resources (EVR, TSX-V) which just announced the other day it has completed a $1.6 million private placement through the issuance of 20 million shares at 8 cents per unit…each unit includes a full warrant for 24 months at 15 cents…while we’d rather have seen less dilution, the fact is that Everton is now in a much better financial position and can immediately proceed with completing its deal with Brigus Gold (BRD, TSX) to purchase Brigus’s remaining 50% interest in the Ampliacion Pueblo Viejo II (APV), Ponton and La Cueva concessions in the Dominican Republic…the market didn’t seem to mind the pricing of the PP as Everton is holding up strong and has superb support around 10 cents in the immediate vicinity of its 200-day moving average (SMA)…we expect Everton to enter into a joint venture agreement, or agreements, in the near future (possibly with a major) to resume exploration at its DR properties…
Precipitate Gold (PRG, TSX-V)
The newest player on the DR stage is Precipitate Gold (PRG, TSX-V) which we were reluctant to chase after first mentioning it a couple of weeks ago around 40 cents…it climbed as high as 62 cents but has since pulled back sharply, and now it’s more interesting again…PRG closed at 38 cents yesterday and it’s likely going to continue to be a volatile play…its recent overbought condition has cleansed itself, however, and PRG now appears to be in a zone of support…in just 6 sessions, as John’s chart points out, the stock moved from a low of 23 cents to a high of 62 cents…in 7 sessions, it has retraced to the Fibonacci 38.2% level…as always, perform your own due diligence but this is a play that could perform very well over the balance of the year…PRG, which has approximately 30 million shares outstanding, completed a $2.2 million IPO at 40 cents and began trading on the Venture at the end of May…
Comstock Metals (CSL, TSX-V)
Comstock, which we’ve been writing about recently, enjoyed a powerful day yesterday – jumping 7.5 cents to close at 32 cents after announcing that it was cancelling a recently proposed $2 million financing at 25 cents “pending the release of new assay results recently received from the company’s follow-up trenching program on its QV claims in the White Gold district of the Yukon”…the news release went on on to state, “The company feels that the preliminary assay results from the QV trenches (released in late July) have changed its view of the project”…whether Comstock can get to the drilling stage in 2012 with this project is a major question mark, but there’s no question the trenching numbers were outstanding…this would be a safer play if there were a guarantee of near-term drilling, but below is an updated chart from John that shows there’s at least a technical case for higher prices…
Note: John, Jon and Terry do not hold positions in PRG or CSL.
Jon the writer – Mitt Romney, meanwhile, delivers the most important speech of his career this evening as the Republican nominee for President, and it’ll be critical for Romney to connect with the American people in a way he has not been able to up to this point…
Bert – I wonder if his ” riding on the car roof DOG”, is still living ?
Comment by Bert — August 30, 2012 @ 5:19 am
Jon
I can understand why you have taken a liking to PRG. The DR deal is not closed yet,
but the Government has permitted them to do whatever they deem necessary with that
land, except drill that is. They also have two other very interesting properties,
one being in the Yukon. A relatively new company with not many shares outstanding &
one which i have taken a liking, has no where to go, but up. R !
Comment by Bert — August 30, 2012 @ 5:26 am
NGM……NEWS Out!. Look at what they intercepted at depth and adding to their already 2 million ounces.
Comment by Dan — August 30, 2012 @ 5:40 am
GQC does not look good this morning. It may drop another 10 cents and I sold my lot at $1.47.
Comment by Theodore — August 30, 2012 @ 5:56 am
GQC
This stock has retracted somewhat, but the trading may indicate, it’s being done
intentionally. Your guess is as good as mine, but i don’t think it would be another
financing, so the alternative could be, to fatten the fat cat’s bank accounts,
that is, to cut themselves some options. Time will tell. R !
Comment by Bert — August 30, 2012 @ 6:34 am
just found this on GBB if anyone is interested, good synopsis
https://d3xhojuwd8vze.cloudfront.net/reports/5010da13b484280200000011.pdf
Comment by Hugh — August 30, 2012 @ 6:51 am
I got my hands on some RBW this morning at 21 cents. I figure this is a good deal. I have been getting phone calls at home and mail about RBW. Anyone else? I have always liked what i have read and heard about this company. I am hoping to increase my holdings as funds become availible.
Comment by Ed — August 30, 2012 @ 6:54 am
I sold my CSL after they had that ill fated PP snuck in after trading closed last friday. But I think that this stock is the most exciting one at present time. It has the potential to shoot very high very fast if drilling this sept. next week will tell the tale, they will give out more trenching results which probably are very good, and will tell whether or not drilling. They have enough time to drill a hole or two before freeze up. Will be a good trade.Lots of people watching this situation. RBW has to come out with very good results in order to attact same interest. I am holding a fairley large position in RBW. It will be interesting to see if any news comes out of RBW this week.PRG is an area play which could become interesting but it is about 20kms from thhe discovery which I dont care for. Just my opinion.
Comment by richard l — August 30, 2012 @ 7:48 am
Richard – pray tell what a ‘fairly large position’ is..??? curious.. and being serious..
John – CDNX chart is now below the 20 day.. know it hasnt closed there.. but the fact that it hanging around underneath it.. just…. is that saying anything????? again curious!!
NGM.. great results, and down 1….. VAX… same thing… the fear is still out there boys and girls…
Comment by Jeremy — August 30, 2012 @ 8:26 am
GBB results….
Gold Bullion announces additional deep hole drill results with high grade gold (8.26 g/t Au over 1.50 metres) at depth
Comment by M. — August 30, 2012 @ 8:31 am
John – stockcharts 20 day ma is 1216 … is this because of the diff between SMA and EMA?? thx in advance mate
Comment by Jeremy — August 30, 2012 @ 8:35 am
Gold Bullion announces additional deep hole drill results with high grade gold (8.26 g/t Au over 1.50 metres) at depth (cnw)
VANCOUVER, Aug. 30, 2012 /CNW/ – Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is pleased to announce additional drill results as a follow up from the Preliminary Deep Hole Preliminary Results released on July 9th, 2012.
The expanded LONG Bars zone deposit on the Granada Gold Property represents potentially one of the largest undeveloped gold deposits along the Cadillac trend in north-western Quebec, located 5 km south of the city of Rouyn-Noranda. The region is home to several significant producing gold mines and world-class multi-million ounce deposits.
The jurisdiction has a long history and is renowned for its culture of mining, numerous economic gold deposits and extensive infrastructure, all of which is evidenced by Quebec consistently ranking in the top five best places to mine globally.
The recent deep drill program to the north and shallow drill program to the west was intended to enlarge the mineralization envelope of the expanded LONG Bars zone. To date, two deep holes and four wedges have been completed with assays. The drill program, which commenced in the spring of 2012, was designed to step out from the known LONG Bars zone resource to the north at depth and near surface to the west. Deep drilling has expanded the mineralization by 650 metres to the north and an additional 600 metres in depth where the mineralization envelope remains wide open for expansion. Results from drilling to the west are still pending.
Highlights from the northern deep drilling including the wedges in deep holes DUP-12-02 and DUP-12-03:
8.18 grams per tonne gold across 1.5 metres from 1218.0 to 1219.5 meters down hole including 4.11 grams per tonne across 3.0 metres from 1218.0 to 1221.0 in hole Dup-12-03W2 — a wedge hole drilled to provide a full cut of the mineralization envelope at depth
8.26 grams per tonne gold across 1.5 metres from 784.5 to 787.0 metres down hole including 4.19 grams per tonne gold across 3.0 metres from 784.5 to 787.5 metres in hole Dup-12-02W1 — a wedge hole drilled to provide a full cut of the mineralization envelope at depth
Down hole core length is close to true thickness and uncut.
These drill results continue to confirm specific high-grade zones at depth with thickness and grade suitable for underground mining.
Additional drill results from the backlog of drilling done in 2011 and the recent shallow drilling to the west will be released shortly. These results will further expand the LONG Bars zone on strike with the full implications thereof, in terms of the expansion of the gold resource, to be released in an updated NI-43-101 expected by year-end 2012. There is a vast amount of ground yet to be systematically explored to expand the LONG Bars zone, leaving considerable upside in light of the drilling results that continue to return measurable gold mineralization in over 90% of the drill holes.
Claude Duplessis, Eng. is acting as the qualified person (QP) for Gold Bullion Development Corp. in compliance with National Instrument 43-101 and has reviewed the technical contents of this press release. Accurassay Laboratory conducted the 50-gram fire assay results at their facility in Ontario. Blanks and standards were inserted into the sequence in addition to Laboratory QA/QC.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec. Additional information on the company’s Granada gold property is available by visiting their website at GoldBullionDevelopmentCorp.com and on sedar.com
“Frank J. Basa”
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE: Gold Bullion Development Corp.
Comment by Marc — August 30, 2012 @ 8:53 am
Gbb news out! What do you guys think?
stockhouse.com/financialtools/sn_newsreleases.aspx?qm_symbol=V.GBB&newsid=8602753
Comment by Trevor — August 30, 2012 @ 9:05 am
bought 20000 more shares of rbw at .205 going for broke
Comment by gil — August 30, 2012 @ 9:07 am
gbb news out… don’t know wht to make of it, but as usual the market yawns.
Comment by Mike — August 30, 2012 @ 9:14 am
WTF is going on with GBB?? Like seriously????
Comment by Hugh — August 30, 2012 @ 10:01 am
@ Jeremy
Don’t worry about the intra day fluctuations of the CDNX and the SMA(20). I will update the CDNX Chart for tomorrow morning.
Comment by John - BMR — August 30, 2012 @ 10:09 am
Re: News – Thursday, August 30, 2012
Title: Precipitate Gold Appoints Technical Consultant
Precipitate Gold Corp (TSXV: PRG) (“Precipitate” or the “Company”) is pleased to announce that it has appointed James Campbell Graham as a technical consultant. Mr. Graham stated, “I am excited to return to the Dominican Republic and help advance a large concession covering so much prospective geology. The Tireo Belt is a great exploration address and Precipitate’s team of experienced and well-known geologists is the just the sort of group to tackle this project with.”
Mr. Graham worked continuously in the Dominican Republic from 1996 to 1999, carrying out geophysical surveys on a number of projects with an emphasis on Induced Polarization, a method that has been particularly successful at targeting mineralization in the Tireo Gold Trend. Mr. Graham was integral to the completion of the recent letter agreement whereby the Company will be acquiring two mineral concession applications in the Dominican Republic, including the Juan de Herrera concession application that borders Goldquest Mining Corp’s Tireo Belt holdings. Mr. Graham will consult on an ongoing basis with regards to exploration planning, execution and interpretation. He will call on his high-level contacts in the Dominican Republic to help advance Precipitate’s goal of making discoveries in this exciting new area.
Mr. Graham has been an international mineral exploration consultant for more than 20 years. He has been a key team member in projects ranging from initial exploration through to advanced development for resource companies operating in Canada, United States, Mexico and much of Latin America. Originally qualified in Geophysical Engineering, Mr. Graham holds Bachelor of Science (Honours) and Master of Engineering degrees from the Colorado School of Mines, is a Professional Engineer registered in the Province of British Columbia, and a “Qualified Person” in accordance with the Canadian National Instrument 43-101 – Standards of Mineral Disclosure for Mineral Projects. Mr. Graham is bilingual in English and Spanish.
Precipitate is focused on exploring and developing its gold properties in the Dominican Republic and northwestern Canada. The Company continues to review opportunities in both these and other geological and geopolitically attractive jurisdictions. With a proven management team, a growing portfolio of quality gold assets, including prospective concessions adjacent to GoldQuest’s Tireo holdings in the Dominican Republic, and $1.8 million in working capital, the Company is well positioned for continued growth in 2012.
On Behalf of the Board of Directors
“Darcy Krohman”
President & CEO
Precipitate Gold Corp.
Comment by Bert — August 30, 2012 @ 10:27 am
RBW will probably dip to 0.15-0.17c in the coming days if they don’t release any results soon. It might even dip lower if the results are mediocre. I would be careful buying at these level.
I think the market is setting up a bear market trap. We just don’t have volume and tomorrows speak with definitely be pessimistic from Bernenke. There’s going to be one final drop that’s going to hit hard which could quite possible touch the all time low at some point in October.
My advice is to add some cash from this bounce or short the market delicately.
Comment by Andrew M — August 30, 2012 @ 10:55 am
I think the GBB news is solid. They are continuing to expand to Long Bars Zone as well as finding mineralization at depth. I honestly believe that once all the results are tabulated from last year’s drilling and this drilling, we will end up with a nice second Resource Estimate. What I would like to see moving forward, would be for Frank to begin a massive drill campaign of 100,000 metres to really see what we have on the property. There is a very realistic chance that we could be looking at a 10 million ounce + deposit. The problem is, it doesn’t matter if it is a 100 million ounce deposit if the resource isn’t proven up, hence, the need for a huge drilling campaign to fully exploit the property and get GBB to where Osisko was at this stage of the game. Stay tuned, because I think Frank has some interesting tricks up his sleeve for 2013.
Comment by Steven — August 30, 2012 @ 11:30 am
GQC appears to go back $1.20 – $1.30 level … volume will tell its all. With a drop in volume, descending below 2 million shares a day. It will continue to adjust another 10-15%. I sold my lot simply because I want to get it back at a lower price. RBW dropped two cents to 21 but I guess it will recover in tomorrow’s trading. GBB… news out but no support. Really good news ? Or not ! people just too hesitate to buy at this price including me. If tomorrow is still as calm as the dead sea, do not expect too much from it.
Comment by Theodore — August 30, 2012 @ 1:05 pm
Can anyone explain this downward trend in RBW? Is there a leak about not-so-great news? VGD also had potential with the location of their claims, and there are now no buyers not even for 5 cents.
Comment by Alexandre — August 30, 2012 @ 1:15 pm
I wouldn’t call it a downward trend…..the stock is bouncing back and forth between support (19.5-20 cents) and resistance (24-25 cents) which is quite normal behavior…..the SS is getting into oversold territory, RSI is at support and looks like it could put in a bullish “W” formation if tomorrow is a good day to the upside…..need a catalyst or two to push this through the 25 area……let’s hope for a better overall market day tomorrow – the reaction to Bernanke will determine that…..
Comment by Jon - BMR — August 30, 2012 @ 1:38 pm
RBW
Report/news whatever, promised Wednesday, then Thursday, leaves me thinking, i
should have taken Jon’s recent advice & sold. Although he claims he didn’t mean
it literally, it was good advice & the next time i will listen. R !
Comment by Bert — August 30, 2012 @ 1:44 pm
Unfortunately I do not think Bernanke is going to say anything that would ignite the gold and silver market to go higher, he already saw what happened a week or so ago when just the hint of more QE3 may happen, he does not want gold to go higher if he can control it, all in my opinion…
Comment by GREG — August 30, 2012 @ 2:06 pm
about gqc if rbw ever has these kind of gains I will be selling a lot of my holdings in rbw imagine a 40 to 50 times your money gain from 4 cents to almost 2 dollars can you blame the holders of gqc for taking some money off the table.You got to know when to hold them know when fold them know when to walk away know when to run you dont count your money until you sell
Comment by gil — August 30, 2012 @ 2:29 pm
Damn, asks on rbw just keep getting higher. Now sitting at 745000 and most of those are in the 20’s. Not digging how this is trading now. Macd is now below signal line and selling pressure is increasing via the macd histogram. RBW states they are about shareholder value, but which shareholders are they speaking of.. Us retailers or people in the know??
Comment by Tony T. — August 30, 2012 @ 3:15 pm
when it comes to csl it seems the stock market giveth and then taketh away
Comment by gil — August 30, 2012 @ 3:47 pm
The overall market is not that good.. No exceptions for RBW ..is also affected but the volume is deadly low. I will definitely scoop more if it falls below 20 cents. Definitely, a sure winner if you are holding the stock. However, if you have no patience in waiting, better not to hold it. Otherwise, you will be annoyed to see it going down 10% in one day. I am out of GQC now and focus on Rainbow.
Comment by Theodore — August 30, 2012 @ 7:04 pm
I think tomorrow is going to be another one of those buying opportunities for the gold,silver and jr resource stocks, actually the entire sector, man I am getting tired of these buying opportunities and I am running out of money too…Hope for a selling opportunity real soon…
Comment by greg — August 30, 2012 @ 8:45 pm