Gold has surged to a 6-month high as it threatens to stage a critical breakout above $1,350 resistance…a “confirmed” breakout from a technical standpoint is what we’re looking for, so how bullion behaves tomorrow and Friday will be also be key…as of 8:30 am Pacific, Gold is up $15 an ounce at $1,364…Silver is 24 cents higher at $21.13…Copper hit a 3+ year low of $2.90 this morning but has since recovered…it’s currently up 2 pennies at $2.97…a hard sell-off since Friday has occurred due to China-related factors and likely some forced selling from Chinese companies who have been importing Copper not for industrial production but for loan collateral…BMO views Copper’s decline below $3 a pound as “overdone” based on forecasts for a still-tight market this year…BMO says it expects that any inventory that comes to market would be eventually absorbed by real demand, supporting Copper prices on average through the year. “China’s demand from the power, transport, and consumer goods sectors are expected to remain strong, particularly given the state grid’s commitment to increase spending by 13% in 2014,” BMO stated…Crude Oil is down $1.72 a barrel to $98.31 while the U.S. Dollar Index is off one-tenth of a point at 79.67…
Russian forces, who’ve already seized control of the Crimean peninsula, continue to be deployed along Ukraine’s eastern border and are “constantly increasing their presence,” according to Ukraine’s First Deputy Prime Minister Vitaliy Yarema…Gold is obviously attracting safe-haven demand from heightened concerns in this area, and money may also be flowing into bullion from base metals…
The leaders of the G-7 nations said this morning they will not recognize the results of a coming referendum on Crimea’s status…“Any such referendum would have no legal effect. Given the lack of adequate preparation and the intimidating presence of Russian troops, it would also be a deeply flawed process which would have no moral force,” they said in a statement…
Gold is now up 13% this year after a 28% drop in 2013…a breakout through $1,350 increases the likelihood of a near-term push to the next major resistance level which is $1,400…
Gold-backed ETP’s saw inflows of $500 million in February, a reversal from 17 consecutive months of outflows according to Blackrock…
Today’s Markets
Asia
China’s Shanghai Composite dipped 3 points overnight to close at 1998 while Japan’s Nikkei tumbled nearly 400 points (2.6%) to finish at 14830…
Europe
European markets were generally down about 1% today…
North America
The Dow is up 11 points as of 8:30 am Pacific…the TSX has added 23 points while the Venture is 1 point higher at 1044…Doubleview Capital Corp. (DBV, TSX-V) is quieter so far today after yesterday’s news, but consider this the lull before the storm as the company gears up to recommence drilling at its Hat Property Cu-Au porphyry discovery in the Sheslay Valley…a confirmed technical breakout has occurred in DBV…it’s unchanged at 31 cents as of 8:30 am Pacific…
Kalt Industries Becomes Third Largest Player In Sheslay Valley District
As the saying goes, follow the money…Ryan Kalt, Chairman of privately-held Kalt Industries, is a very successful Canadian entrepreneur who has educated himself about the Sheslay Valley region of northwest British Columbia…he is a smart operator and plays to win…his track record when it comes to getting involved early in important Canadian discoveries is highly impressive, one prime example being the Athabasca Basin…his call on that was bang-on…we suspect his call on the Sheslay Valley will also be bang-on…Kalt has so far staked 230 sq. km in the Sheslay Valley, putting him behind only Teck Resources Ltd. (TCK.B, TSX-V) and Garibaldi Resources Corp. (GGI, TSX-V) with 600 sq. km and 262 sq. km, respectively…upstart Alix Resources Corp. (AIX, TSX-V) is getting very aggressive and announced the acquisition of more claims this morning, contiguous to Doubleview’s Hat Property, giving them a total of 89.5 sq. km – the second-largest position among junior exploration companies…
Below is Kalt Industries‘ updated Sheslay Valley map that BMR has been given the permission to publish…
Largest landholders in the Sheslay Valley currently are: Teck Resources (600 sq. km); Garibaldi Resources (262 sq. km); Kalt Industriess (230 sq. km), and Alix Resources (89 sq. km). Prosper Gold and Doubleview Resources have made important discoveries on the Sheslay and Hat properties, respectively, with Doubleview ready to become the first company to drill in 2014.
Alix Resources Corp. (AIX, TSX-V) Updated Chart
Alix Resources (AIX, TSX-V) is pushing hard in the Sheslay Valley and the market is rewarding it…after acquiring an 8-km wide stretch of claims across the entire northern border of Prosper’s Sheslay, and another 8 km wide land package capping the northwestern border of Garibaldi’s Grizzly – two key strategic areas – Alix announced this morning that it has acquired 460 hectares of claims contiguous to the eastern border of Doubleview’s Hat Property…rest assured, the Sheslay Valley is not a “closeology” play for AIX – our due diligence gives us great confidence that AIX is rapidly moving toward the goal of defining high-priority drill targets, and that there will be plenty of action on their extensive landholdings in the coming months…President Mike England, whose Geo Minerals was taken out by New Gold Inc. (NGD, TSX) in the Blackwater play in 2011, is turning AIX around with this early and significant foray into the Sheslay Valley…
The surge in volume in AIX in recent days is a key indicator of positive things in the works…note on this 4-year weekly chart from John how RSI(14) is climbing an uptrend, sell pressure is diminishing rapidly, and the 100-day moving average (SMA) has reversed to the upside…technically, AIX appears to be in the early stages of a major move…as always, perform your own due diligence…AIX is up half a penny at a nickel as of 8:30 am Pacific…
Midland Minerals Corp. (MEX, TSX-V)
Speaking of volume, Midland Minerals Corp. (MEX, TSX) has been extremely active over the last week, trading in excess of 25 million shares…on January 9, Midland announced that it had signed an LOI with Reservoir Minerals Inc. (RMC, TSX-V) granting it an option to earn up to a 75% interest in RMC’s Parlozi Lead-Zinc-Silver project in Serbia…MEX has nearly 200 million shares outstanding but reported $3.5 million in cash in its most recent financials (ending September 30), so this one is certainly worthy of our readers’ due diligence…
Below is a 4-year weekly chart from John…what the chart tells us is that intense sell pressure witnessed most of last year has dissipated…strong support now exists at 2.5 cents where MEX is trading (on light volume) as of 8:30 am Pacific…
Probe Mines Ltd. (PRB, TSX-V)
Legitimate discoveries bring incredible opportunities, no matter what overall market conditions might be, and one of our favorite situations over the past year that amazingly has been overlooked (at least until recently) by most investors is Probe Mines (PRB, TSX-V) with its multi-million ounce Borden Lake Gold discovery in northeastern Ontario…this started out as a high tonnage, lower grade open-pit scenario, but then Probe discovered a high-grade zone trending to the southeast…drilling continues…
John’s 2.5-year weekly PRB chart shows steady progress toward the next Fib. measured resistance…it’s incredible that PRB was trading at just above a dollar last spring, even AFTER Agnico Eagle Mines Ltd. (AEM, TSX) took a 9.9% position in the company on a financing that was well above market…PRB is up 7 cents at $3.77 as of 8:30 am Pacific…
Updated Platinum Chart
Below is an updated long-term Platinum chart…note the strong RSI(14) support at 40%…if Platinum breaks above the downtrend line, watch out…Platinum is up about $10 an ounce this morning to $1,469…
Note: John and Jon hold share positions in GGI, DBV and AIX.
Guys, thanks for great work you’re doing in this area
really appreciate the Kalt map!!! but I notice they are on the “outside”
AIX.v sewed up 1 of the major inside pieces
according to my “eye” there are 2 inside pieces available
wonder who will get them
any ideas?
Comment by ChartTrader — March 12, 2014 @ 8:31 am
to my untrained eye
AIX.v has broken thru 5 yr down trendline
chart resistance lines shown
http://scharts.co/1cR67AG
most indicators are +ve or turning
bwtfdik
Comment by ChartTrader — March 12, 2014 @ 8:42 am
Any updates on CQX?
Comment by John — March 12, 2014 @ 8:52 am
Good question, ChartTrader…it may appear at this moment that Kalt is on the “outside”, but what if the “inside” starts to expand? There are parallel structures cutting NW/SE through this whole district…..you say AIX has “1” of the inside pieces but North Cap East and North Cap West are right on trend…imagine this scenario…..GGI starts drilling at Grizzly West where they have a very interesting porphyry target, and they hit and it’s obvious that mineralization keeps trending to the NW…….lands right onto AIX’s ground….Prosper starts drilling and makes a step-out discovery going toward the north……….if you look at the map closely, you can project that the NW part of North Cap East should have showings and should be a prime target area…….
Comment by Jon - BMR — March 12, 2014 @ 8:52 am
Jon no doubt AIX.v is in the cat’s bird seat !!!
keep up the GREAT work
Comment by ChartTrader — March 12, 2014 @ 8:56 am
John, CQX has had a pick-up in trading activity recently which is curious. Looking into it.
Comment by Jon - BMR — March 12, 2014 @ 9:06 am
The map above is not showing the AIX addition of all the grey area between Grizzly West and Kalt …AIX also has added a good piece abutting NE of Double View .It’s the grey area in the map above …..
Comment by Fred — March 12, 2014 @ 9:38 am
Is it safe to say gold has conquered 1350 resistance?
Comment by Dave s — March 12, 2014 @ 9:39 am
The AIX piece abutting DBV is called Hacket North Project …..Looks to be very focal in view of DBV hitting the ground very soon drilling ….Seems Cannacord has been interested in AIX last few days since the additions AIX has made …
Comment by Fred — March 12, 2014 @ 9:44 am
My gest is that AIX will come up with more claims staking before long. This morning was a good one base on the ip signature.
Comment by Martin — March 12, 2014 @ 10:39 am
John or anyone else that can read charts. Can you have a look at fnc.v 2.5 year weekly chart. Would it be safe to assume there is a “cup and handle” formation happening right now?
Thanks in advance.
Comment by Tony T — March 12, 2014 @ 12:14 pm
Hi Jon,
Have you looked at V.NCG? They have 1.5mil oz gold grading 5,6 g/t. They look very intresting. Can you look into it and publish a technical chart?
Comment by Sebastian — March 12, 2014 @ 2:00 pm
It’S snowing in Montreal, it would be a great evening to read about shelay valley :-p
Comment by Martin — March 12, 2014 @ 6:02 pm
@ Tony
Certainly looks like a CwH pattern with the base Support at 5c. Handle is now being formed with the top of the cup Resistance at 12.5c. If there is a breakout above the Cup the measured Resis. level is 20c. The Handle should not close lower than 7.5c or the pattern is suspect.
Hope this helps.
Comment by John BMR — March 12, 2014 @ 7:39 pm