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Commodities, and Economic & Political Trends Impacting
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August 7, 2014

BMR Morning Market Musings…

Gold has traded between $1,301 and $1,310 so far today after yesterday’s strong rally…as of 7:45 am Pacific, bullion is unchanged at $1,306…Silver is down 9 cents at $19.92…Copper has gained 2 pennies to $3.18…Crude Oil is flat at $96.91 while the U.S. Dollar Index has jumped more than one-tenth of a point to 81.58…

Deutsche Bank’s global head of commodity research, Michael Lewis, summed up the current Gold market quite effectively with this observation yesterday:   “There are a lot of crosswinds going on for Gold.  You have long-term U.S. real yields going down to new lows and geopolitics, which should be supportive, but on the flip side you have dollar strength coming through and equities hitting new highs.”

Russia today banned most food imports from the West – specifically, the U.S., Canada, the European Union, Australia and Norway, in retaliation for sanctions over  Ukraine  – a sweeping move that will cost Western farmers billions of dollars but could also lead to empty shelves in Russian cities…the decision shows that President Vladimir Putin has no intention of bowing to Western pressure over Ukraine…it also demonstrates that the Kremlin is prepared to inflict damage on Russia while pursuing its agenda in Ukraine…

Rio Tinto, he world’s second biggest mining company, reported today a 21% profit increase and a higher dividend for the half-year to June 30, with the promise of more to come…

Today’s Equity Markets

Asia

Asian markets were mostly lower overnight, though Japan’s Nikkei bucked the trend with a gain of 73 points to snap a 5-session losing skid…China’s Shanghai Composite fell 30 points, its worst day since mid-June, to close at 2188…

Europe

European markets are down slightly in late trading overseas…ECB President Mario Draghi today said it’s too early to judge whether Russia’s sanctions on EU exports will have a significant impact on the euro zone’s modest economic recovery…he indicated that unless there’s an escalation in the exchange of sanctions between the bloc and the Kremlin, the recovery is likely to continue… The ECB announced no change today with its monetary policy…Dragi stated that key interest rates will remain at their current level for an extended period of time, adding that the ECB expects a gradual upward movement in inflation toward levels closer to 2%…

North America

The Dow is up 44 points as of 7:45 am Pacific…the TSX is down 17 points while the Venture is up a point at 993…

Source Exploration Corp. (SOP, TSX-V) Update

Strong results reported yesterday by Source Exploration (SOP, TSX-V) from Phase 2 drilling at the Santa Cruz target (Las Minas Project) in Mexico…SOP intersected long near-surface intervals of Gold, Silver and Copper mineralization in four out of six diamond drill holes, including 3.57 g/t AuEq over 99 metres in LM-14-SC-08…that’s the best hole drilled by Source so far at Las Minas…Santa Cruz, one of six priority drill targets at Las Minas, forms part of the El Dorado corridor skarn zone that has been intersected by diamond drilling for approximately 840 metres along strike and 400 metres down dip, with mineralized drill intercepts varying from 20 to 245 metres in length…

Results from other zones are pending, and planning is under way for the next phase of drilling…

Source climbed as high as 15.5 cents intra-day yesterday before closing up a penny at 14 cents on total volume (all exchanges) of 842,000 shares…as expected, powerful support held around 10 cents the last couple of months with Source and the long-term trend remains very bullish…technically, SOP’s immediate challenge is to overcome Fib. resistance at 17 cents…

SOP12

Kaminak Gold Corp. (KAM, TSX-V) Update

The chart for Kaminak Gold (KAM, TSX-V) continues to look highly interesting following a breakout earlier this year above a long-term downtrend line, and the completion of an inverted head and shoulders bottom…

This is almost too obvious – watch for a potential breakout above the neckline…if such a scenario were to unfold, KAM would likely accelerate very quickly to the indicated measured Fib. resistance…

Kaminak recently closed a $13.5 million financing (Ross Beatty was one of two placees) and also commenced a feasibility study for its Coffee Gold Project in the Yukon…results are pending from the 2014 Phase I drill program which has tested some of the greater than 20 kilometres of Gold-in-soil anomalies outside of the current resource area…depending on the numbers from Phase 1, a Phase 2 drill program is possible this quarter…  

KAM4

Niogold Mining Corp. (NOX, TSX-V) Update

Trading at its highest levels since the beginning of 2013, Niogold Mining (NOX, TSX-V) continues to look strong…recently it staged a confirmed breakout above resistance at 27.5 cents following news that Osisko Gold Royalties Ltd. (OR, TSX) will acquire 14 million flow-through shares of NOX through a private placement at 35 cents per share…

As we pointed out in late May, NioGold commenced a 1,400-metre drill program on its recently acquired H zone, now consolidated as part of the company’s Malartic Block Property along the Cadillac Trend…drill results are pending…the Marban Block already has three deposits (Marban, Kierens and Norlartic) which collectively host estimated measured and indicated resources of 1.5 million ounces of Gold (32,127,000 tonnes grading 1.48 g/t Au) plus inferred resources of 600,000 ounces (16,478,000 tonnes grading 1.13 g/t Au)…

NOX3

Richmont Mines (RIC, TSX) Update

Nice to see a turnaround in the fortunes of Richmont Mines (RIC, TSX) – good sign for the sector overall – which is up 24% already this month (through yesterday with more gains this morning) after the company reported better-than-expected Q2 results…those included record quarterly revenues ($39 million) and operational cash flow…net earnings were $4.7 million vs. a net loss of just over $1 million for the same period in 2013…

Technically, RIC appears to be forming a cup-with-handle pattern which means a modest near-term pullback could be in the cards with Fib. support beginning in the high $1.60’s…the primary trend has clearly changed with the 200-day SMA (not indicated on this chart) reversing to the upside after being in decline for more than two years…

RIC3

Note:  John, Jon and Terry do not hold share positions in SOP, KAM, NOX or RIC.

 

 

 

 

 

5 Comments

  1. looking forward too getting all the info GGI today webnair@ 1:15

    Comment by BRIAN — August 7, 2014 @ 7:51 am

  2. it appears to me that there is someone that doesnt want to see ggi gain traction, bid basher,pxa moves higher and over a million shares traded on virtualy no news, and pending results.makes no sense.any opinions..

    Comment by tombc — August 7, 2014 @ 10:32 am

  3. dont get me wrong,good for pxa,but something doesnt seem right.

    Comment by tombc — August 7, 2014 @ 10:49 am

  4. Webinair was pretty poor IMHO. Technical difficulties did not help and no questions taken. Why do it live? A recording would make a better presentation. Hundreds of samples are coming from Grizzly is the only snippet of info that I picked out of the webinair.

    Come on BMR lads, show them how it’s done properly. 🙂

    Comment by Tom — August 7, 2014 @ 12:34 pm

  5. missed webinar computer problems PISSED FOR SURE

    Comment by BRIAN — August 7, 2014 @ 12:47 pm

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