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December 11, 2013

BMR Morning Market Musings…

Gold has traded between $1,253 and $1,265 so far today after yesterday’s impressive move through $1,250…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,259…Silver is off 2 cents at $20.41…Copper is up a penny at $3.26…Crude Oil is down 50 cents at $98.01 while the U.S. Dollar Index is off slightly at 79.90…

So it appears there won’t be another U.S. government shutdown early in the New Year which is a good thing for Gold…during the last 16-day shutdown in October, bullion lost 3.5% as investors shunned the metal’s safe haven appeal…Gold seems to prefer a U.S. government in full motion that ignores its debt and spending problems…budget negotiators last night struck a bi-partisan deal (requires House and Senate approval) to set spending limits until 2015, breaking a fiscal logjam (the debt ceiling limit, however, will still be an issue in February or March)…the proposal would restore about $63 billion in funding that had been cut by the so-called sequester…officials said the increases would be offset by a variety of spending reductions and increased fees elsewhere in the budget totaling about $85 billion over a decade, leaving enough for a largely symbolic deficit cut of $23 billion over the next decade…fiscal conservatives warned that lawmakers were simply trading increased spending now for “promises” of cuts sometime in the future…the deal sets discretionary spending levels at just over $1 trillion, which is higher than the hard-fought level of $967 billion set in a 2011 budget pact…

Updated Gold Chart

Will Gold limp or sprint across the 2013 finish line?…it has been a tough year for the yellow metal, destined for its first annual decline in 13 years…but indications are that Gold will show some strength in the closing days of 2013…critical support around $1,200 has held…now it’ll be interesting to see how Gold handles a resistance band between $1,260 and $1,280…two factors are in Gold’s favor as 2013 winds down – hedge funds are the least bullish on the yellow metal since 2007 when it averaged $700 an ounce, and the U.S. Dollar Index continues to look weak and vulnerable…

Below is an updated 6-month daily Gold chart from John…


In a commentary yesterday, respected technical analyst and Kitco contributor Jim Wyckoff stated, “From a longer-term chart perspective, the Gold market bulls will need to push nearby futures prices back above strong technical resistance at $1,450 to suggest the longer-term price decline has ended, and that prices can embark upon a longer-term uptrend.  While the Gold market bears are presently enjoying the firm technical advantage, this bear market run is very mature and trader/investor/analyst attitudes have become very bearish. Those are early clues from a cyclical and human psychology perspective that the Gold market is close to a price bottom. There’s an old bit of trading wisdom that says markets are the most very bullish at the very top, and markets are the most very bearish at the very bottom. Also remember that the monthly Gold chart shows two uptrend lines still intact.”

The Collapsing Greenback

Many investors and the mainstream media haven’t picked up on this yet, but the U.S. Dollar Index is in trouble from a technical perspective…in September, we pointed out that the Dollar Index had broken below a 2-year uptrend line on the weekly chart…soon after that occurred, the Index tested strong support at 79 and then staged a rally that met resistance, as expected, around 81…now it looks as if the Index will once again test support at 79 but whether that support will hold this time is a big “if”…a declining 200-day moving average (SMA) is applying downward pressure…other indicators are negative…next week’s Fed policy meeting will either rescue the greenback or sink it…


CRB Index Updated Chart

The CRB Index is firming up going into year-end, and broke above a downtrend line yesterday on the 1-year weekly chart…given the usual strong correlation between the CRB Index and the Venture, this is additional evidence that the Venture will hold critical support and finish the year with some positive energy…


Today’s Markets

Asia

China’s Shanghai Composite closed at its lowest level in two weeks, losing 33 points to close at 2204, as nervous investors awaited updates from the government’s annual Central Economic Work Conference (CEWC) which began yesterday…the meeting is expected to draw a detailed reform road map for the country’s economic development in 2014…

Japan’s Nikkei slipped 96 points overnight to finish at 15515…

Europe

European shares are mostly slightly higher in late trading overseas…finance ministers have reached the basis of an agreement to wind down failing banks and share the costs after a marathon bargaining session in Brussels…

North America

The Dow is down 33 points through the first 30 minutes of trading…the TSX has lost 74 points while the Venture is down 1 point at 903…

Starcore International Mines Ltd. (SAM, TSX) this morning reported net income for its first quarter of fiscal 2014 (ending Oct. 31) of $2.3 million or 2 cents per share, thanks to improved recoveries and grades at its San Martin Mine in Mexico…SAM is up 2.5 cents to 18.5 cents as of 7:00 am Pacific

Fission Uranium Corp. (FCU, TSX-V)

The Saskatchewan uranium play should attract even greater investor attention in 2014, in particular if the Venture heats up, and the leader of the pack of course is Fission Uranium Corp. (FCU, TSX-V) with its now 100% owned Patterson Lake South Project…technically, Fission has shown tremendous support around the $1 level and appears poised to pick up steam going into the final three weeks of the year…FCU climbed 8 cents yesterday to close at $1.12, and has added another 2 pennies in early trading today…

Below is a 6-month daily chart from John…


True Gold Mining Inc. (TGM, TSX-V) Updated Chart

An impressive support band in the low 30’s has underpinned True Gold Mining (TGM, TSX-V) for the last several months – definitely a play worth keeping on the radar screen going into 2014 as the company continues to develop its Karma Gold Project in West Africa…TGM would clearly benefit from a strengthening Gold price…TGM is unchanged at 36.5 cents as of 7:00 am Pacific

Note: John, Terry and Jon do not hold share positions in SAM, FCU or TGM.

10 Comments

  1. SAM volume impressive to start today’s session…they should have drill results coming this month or next month too.

    Comment by Justin — December 11, 2013 @ 7:22 am

  2. Inca One (v.io) ceo interviewed @ Mines & Money in London England.

    commodity-tv.net/c/mid,21943,Mines_und_Money_London_2013/?v=252892

    Comment by Tony T. — December 11, 2013 @ 11:50 am

  3. Natalie

    If Natalie is your real name & not an alias,
    i thank you my lady. I could not wish for
    anyone stronger with words than you, to side
    with me. Thank you ! R !

    Comment by Bert — December 11, 2013 @ 11:52 am

  4. I am also still in lxv.The concept appears to me to have merit. Richard l

    Comment by Richard l — December 11, 2013 @ 12:49 pm

  5. DBV moving up today on high volume. Speculators starting to get involved in anticipation of pending assays??

    Comment by kdcdoggy — December 11, 2013 @ 1:01 pm

  6. Talk about the Venture exchange moving up the last half
    of December, i am now doubting whether or not it will move
    up in January. The Venture seems to play to the tune of
    every negative sentiment out there & already, it’s
    participants seem to be feeling faint, on the thought that
    the Feds may taper in January & whether the parties in the
    U.S. can come to an agreement, on whatever they argue about
    down there. I see stocks standing at attention all day with,
    would you believe, just half a penny spread, no one wants
    to make a move. Some may mark me as being very negative,
    but i just can’t bring myself to being positive, just for
    the sake of being positive. Give me something to be positive
    about & i will change. I also have noticed DBV priming
    itself for a possible move, but it could be a fake start,
    but i did add to my position today. If i make a penny,
    i will look at it as being a major accomplishment. It may
    appear obvious that i don’t have much to do, but we have
    to support BMR with our posts, after all, they have been
    providing us with their services for an extended period of
    time & if the Venture don’t turn, they may throw in the towel,
    which i am expecting any day now. No one can work without
    compensation forever. Good night ! R !

    Comment by Bert — December 11, 2013 @ 5:14 pm

  7. Did anyone see the NR by GGI this evening?

    Comment by Dan — December 11, 2013 @ 6:47 pm

  8. Garibaldi Announces Gold Grades of 28.4 g/t at La Patilla
    La Patilla channel sampling returns

    strong gold values; Garibaldi to

    commence immediate drill program at

    La Patilla

    TSXV: GGI
    OTC: GGIFF
    Frankfurt: RQM

    VANCOUVER, Dec. 11, 2013 /CNW/ – Garibaldi Resources Corp. (TSX.V: GGI) (the “Company” or “Garibaldi”) is pleased to report that exploration carried out by the Company has returned strong gold values from channel sampling at its recently acquired La Patilla Property, and a drill program is ready to begin. These results include separate sample intervals grading 28.4 g/t Au over 1.3 meters, 7.5 g/t Au over 6.4 m, 6.2 g/t Au over 3.3 m, and 5.8 g/t Au over 7.9 m at the Murcielago breccia, and 13.5 g/t Au over 1.3 m at the La Patilla vein system contiguous to the southeast (sample widths are estimated true widths).

    With its company-owned rig assigned to the Tonichi Project, Garibaldi has contracted a Sinaloa based drilling company for a first-ever diamond drilling program at La Patilla commencing immediately. Drilling at La Patilla will focus on the Murcielago and La Patilla low sulfidation epithermal structures, testing the continuity of mineralization at shallow depths and along strike. To date, highly encouraging surface mineralization has been outlined over a combined strike length of 225 meters and remains open in all directions. The host rocks are silicified rhyolite tuffs underlain by andesite. Property maps showing location, geology, sampling areas with full results, and proposed drill hole locations are available on the Garibaldi web site.

    La Patilla is located in the municipality of El Rosario in Sinaloa State, Mexico, and was acquired by Garibaldi as a potential near-term exploitation project. Several gold-bearing quartz veins and/or breccia bodies at La Patilla have drawn interest from artisanal miners for many years. The property features easy access, relatively flat terrain at low elevations, and is surrounded by excellent infrastructure in an established mining district. Garibaldi has also negotiated a long-term agreement with the local community to allow for any potential future metal extraction on the property by the Company.

    Importantly, the recent extensive geological mapping, channel and rock sampling completed by Garibaldi at La Patilla has independently validated data compiled since 2010 through surface exploration by ProDeMin, the private Mexican company Garibaldi acquired the property from earlier this year. Garibaldi’s work has also identified additional targets throughout the 100-hectare property that warrant further investigation.

    The tables below include selected channel sample results (length weighted averages) obtained by both Garibaldi and ProDeMin at La Patilla.

    Garibaldi Resources Corp. Channel Sampling

    Murcielago Breccia La Patilla Vein System

    Sample Width (m) Au (g/t) Sample Width (m) Au (g/t)
    26463-65 6.4 7.5 125905 1.1 3.6
    26466-69 7.9 5.8 125907 1.1 5.0
    26470-71 3.3 6.2 125920 0.9 3.6
    26472-74 4.3 4.4 31193 1.3 13.5
    26459-61 4.7 9.4 31197 0.8 8.7
    Includes 26459 1.3 28.4 26598-60 4.9 2.2
    125956-62 11.3 3.4 includes 26598 1.6 3.3
    Includes 56-60 8.1 4.0

    Note: Samples 26463-65 through 26472-74 were taken across structure along an east-west strike of 20 meters.

    ProDeMin Channel Sampling

    Murcielago Breccia La Patilla Vein System

    Sample Width (m) Au (g/t) Sample Width (m) Au (g/t)
    9260 3 6.0 9272-3 3.3 4.7
    9262 2 3.1 Includes 9272 1.7 8.1
    9263 1.9 5.3 9243 & 9266 5.3 8.6
    9264 0.8 2.4 9246-48 5.8 4.7
    9265 0.8 7.9 Includes 9246 2 7.4
    9249 0.5 38.0

    While Garibaldi is very encouraged by the known mineralized structures and the data collected at La Patilla to date, there has been insufficient exploration at the property to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a resource.

    Tonichi Project Update

    Garibaldi is pleased to report that all drill core from MAR-13-03, one of the longest holes (253 meters) completed at the Locust target, has been logged, split and submitted for assaying. MAR-13-03 was drilled with the Company’s own rig to follow up on the discovery of a supergene zone in MAR-13-02 including a 104.6-meter interval grading 0.24 g/t Au and 0.16% Cu as reported by the Company November 7, 2013. To date, 16 diamond drill holes at Locust have outlined a broad envelope of near-surface mineralization that measures at least 5 km along trend and 1-2 km across. The Company is looking forward to results from MAR-13-03 which will guide the next phase of drilling at this important target, the most advanced of several Garibaldi has identified at the large Tonichi Project.

    Live Webinar and Corporate Video

    Garibaldi will be conducting a live investor Webinar Monday, December 16, beginning at 1:15 p.m. Pacific (4:15 pmEastern) through MarketSmart Communications Inc., official investor relations for Garibaldi. Log-in instructions for this presentation can be found on the Garibaldi homepage.

    Garibaldi is also pleased to announce the release of a short corporate presentation (video). You can view the video by going to the Garibaldi Resources Website:

    Investors -> Media -> Why GGI? In 90 Seconds

    Quality Assurance

    Garibaldi samples ranged from about 1.5 kg to more than 4.5 kg and were prepared and analyzed by Acme labs by 2 assay ton fire assay with an AA finish at their facilities in Mexico and Nevada. Samples of ProDeMin were analyzed by Geoquimica de Mexico of Chihuahua by fire assay methods.

    Qualified Person

    Dr. Craig Gibson, Certified Professional Geologist and Director, is the non-arms length Qualified Person for the company’s Mexico Projects and the direct manager of the technical programs operated under contract by Prospeccion Y Desarrollo Minero del Norte (ProDeMin). Dr. Gibson has reviewed and approved the contents of this news release.

    About Garibaldi

    Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions ofMexico and British Columbia.

    We seek safe harbour.

    GARIBALDI RESOURCES CORP.

    per: “Steve Regoci”
    Steve Regoci, President

    Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.

    Read more at StockHouse website…

    Comment by Dan — December 11, 2013 @ 7:11 pm

  9. BERT xme closed at one year high Iam making some coffee money

    Comment by gil — December 11, 2013 @ 7:12 pm

  10. I hope i was wrong & it keeps on going. Even coffee money
    is better than nothing. R !

    Comment by Bert — December 12, 2013 @ 3:44 am

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