Gold came under pressure this morning but found support on fresh concerns regarding Ukraine…reports within the last hour are that Ukraine forces have engaged a Russian armored column on Ukrainian soil…bullion, which up until this morning was in its narrowest weekly range since August 2007, traded as high as $1,316 overnight before plunging to $1,292…as of 8:30 am Pacific, it’s down $8 an ounce at $1,305…Silver has fallen 18 cents to $19.71…Copper is flat at $3.13…Crude Oil has rallied $1.13 a barrel to $96.71 while the U.S. Dollar Index is down more than one-tenth of a point at 81.46…
The Financial Times is reporting that European foreign ministers attending an emergency meeting in Brussels today expressed concern that the “aid” convoy of Russian trucks waiting at the frontier with eastern Ukraine had been a diversion while Russian vehicles and arms crossed the border elsewhere…all this while Vladimir Putin declared on a visit to Crimea, “We will do everything in our power so that this conflict is ended as soon as possible, so that the blood can stop flowing in Ukraine.”
Hedge fund Paulson & Co maintained its stake in the world’s biggest Gold-backed exchange-traded fund, SPDR Gold Trust, in the second quarter, while Soros Fund Management LLC sharply boosted its investment in Gold mining stocks…legendary investor George Soros nearly doubled his ownership in Market Vectors Gold Miners ETF and initiated new stakes in certain producers, suggesting the big names in hedge funds continue to have confidence in the yellow metal…
Franco-Nevada Corp.’s (FNV, TSX, NYSE) $500 million bought deal announced late Wednesday, to fund additional royalty and streaming acquisitions, is certainly a positive sign for the sector…Franco-Nevada has been one of the best performing major mining stocks in the Gold space this year, recording a gain of nearly 50%…the FNV offering at $63.38 CDN was priced aggressively, just 1.8% below the closing price that day…
The 117-year-old London method to set a price for Silver, known as the “fix,” is coming to an end on Friday, replaced by a new electronic pricing mechanism that regulators hope will bring more transparency to the system…
Today’s Equity Markets
Asia
China’s Shanghai Composite rebounded after two sessions in the red and gained 20 points overnight to close the week at 2227…Japan’s Nikkei was relatively unchanged at 15318…
Europe
European stock markets were modestly higher for most of today, despite disappointing economic data yesterday, but reversed to the downside late in the session on news out of Ukraine…
The gloomy economic numbers out of the euro zone – whose roughly $13 trillion economy accounts for 17% of the world’s gross domestic product – join a litany of similarly sour reports this week from Asia, all pointing to signs of sudden weakness among many major economies…the downturns in Europe and Asia come as the U.S. flashes signs of increasing economic vigor after a brief chill earlier this year, but the American strength is fragile and would undoubtedly weaken in Q4 if the global economy were to suffer some unexpected shocks…
North America
The Dow is down 36 points as of 8:30 am Pacific…U.S. industrial production edged higher in July (0.4%, slightly above expectations) according to data released by the Federal Reserve this morning…
Below is an updated 6-month Dow daily chart from John…support at the rising 200-day moving average (SMA) held earlier this month, as expected, (the same has occurred with the Venture), and RSI(14) is showing strong up momentum, pushing above its SMA(25)…
The TSX is off 84 points through the first two hours of trading while the Venture has shed 7 points to 989, about 5 points above its rising 200-day SMA…
Garibaldi Resources Corp. (GGI, TSX-V) Update
“We’re going to get aggressive” – those were the first words from Garibaldi Resources Corp. (GGI, TSX-V) President & CEO Steve Reogci in reference to drilling at the Rodadero North Project in central Sonora State where GGI has made a significant high-grade discovery at the Silver Eagle target…there appears to be a strong association between mineralization and silicified structures at Silver Eagle and throughout Rodadero, so GGI is on a trail that has a very good chance of leading them to new drilling discoveries over a broad area…
Click on the arrow to view Part 2 of our discussion with Regoci…more next week on both Rodadero and the Sheslay district…
Discovery Ventures Inc. (DVN, TSX-V) Update
Discovery Ventures (DVN, TSX-V) continues to look very solid…since a confirmed technical breakout above 23 cents in early June, that level has held as important new support with DVN showing an uptick in momentum this week…Discovery has an asset package that we find very compelling – a high-grade Gold-Copper deposit in southeastern B.C. (the Willa) along with impressive mill facilities less than 100 miles away that can process Willa material and accommodate other potential mill feed from the area…much more needs to be done to pull all the pieces of this project together, but the Discovery team has been making steady progress and we see plenty of reasons for interest in this play to remain high…
DVN is off a penny at 26 cents as of 8:30 am Pacific…below is an updated 2.5-year weekly chart….
Calibre Mining Corp. (CXB, TSX-V) Update
We’ve been keeping a close eye on Calibre Mining (CXB, TSX-V) over the last couple of months, due to technical factors and the strength of its projects in Nicaragua, and the companies it has partnered with…
Significantly, it appears CXB will confirm a breakout this week above resistance at 7.5 cents…note the importance of the move in late June above the 2-year downtrend line…
CXB is unchanged at 9 cents as of 8:30 am Pacific…
Cypress Development Corp. (CYP, TSX-V) Update
Cypress Development (CYP, TSX-V) has a lot of shares outstanding (150 million) but it got highly encouraging results from a Phase 1 drill program at its Gunman Project (Zinc-Silver-Copper) in Nevada, and another round of drilling starts later this month…with some of the high grades CYP has been reporting, from surface sampling and drilling, investor interest in this play could accelerate over the coming weeks…
Below is a 10-year monthly chart that puts the “big picture in perspective – strong new support at 3 cents, resistance at a nickel…between 3 and 3.5 cents appears to be the “sweet spot” as an entry point…as always, perform your own due diligence…
CYP is off half a penny at 3.5 cents through the first two hours of trading…
Constantine Metal Resources Ltd. (CEM, TSX-V) Update
Constantine Metal Resources (CEM, TSX-V), which we first mentioned recently when it was still trading under 20 cents, is worthy of our readers’ close attention as the summer progresses…on July 22 the company released results from the first two holes of a 10,000-m drill program at the Palmer VMS Project in Alaska…initial drilling intersected a thick lens of massive sulphides 150 m down dip of the lower edge of the South Wall zone, a major expansion of the zone to depth…hole CMR14-54 returned 22.1 m grading 2.48% Cu, 4% Zn, 24 g/t Ag and 0.39 g/t Au…if additional holes can return even better grades, then CEM could gain a lot more attention…
The current drilling is part of a $6.2-million (U.S.) budget for 2014 financed by partner Dowa Metals & Mining Co. Ltd. of Japan…Dowa is in the second year of an option agreement in which it can earn 49% in the Palmer project by making aggregate expenditures of $22-million (U.S.) over four years…at this early stage, Palmer hosts a 4.75-million-tonne inferred resource grading 1.84% Cu, 4.6% Zn, 0.28 g/t Au and 29 g/t Ag…
Below is an updated 2.5-year weekly chart from John…CEM is trading at levels not since seen 2011, a very bullish sign…note that there is measured Fib. resistance at 21 cents, followed by 31 cents (not shown on this chart), so the narrow trading range in the low 20’s over the past three weeks is not surprising…the 20-day SMA, currently at 21 cents, has been providing rock-solid support since the beginning of June…good potential as the summer progresses…
CEM is up half a penny at 22.5 cents as of 8:30 am Pacific…
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in DVN.
Jon, have you completed your research on Phoenix Gold “PXA”? Watch it next week, drill results coming out early next week.
Comment by Jeff — August 15, 2014 @ 7:52 am
yes jon i agree, ggi has all the right ingredients to be a huge success,but i must stress like you have repeatedly,”patience” is absolutely key with this company.thx.
Comment by tombc — August 15, 2014 @ 7:59 am
Jeff, waiting for initial results with interest…
Comment by BMR — August 15, 2014 @ 8:24 am
Patience is the key with any company, Tom, especially when the fundamentals and technicals support a rising trend…that kind of patience of resulted in a gain of nearly 400% in GGI since we first introduced it, and it’s still well shy of where we believe it could go with the three triggers they have at the moment…
Comment by Jon - BMR — August 15, 2014 @ 8:30 am
Keep an eye on Aurcrest Gold on the venture ‘ AGO’ it reminds me of DbV when I was trying to bring it to the attention of BMR when it was trading at .04. AGO is about to start drilling on their initial gold discovery which had some high grade results, currently trading at .05- 06 excellent entry point, just an FYI.
Comment by Paul — August 15, 2014 @ 9:16 am
Jon, Newmont is always waiting with GREAT interest on the PXA 1st hole drill results. I think Newmount will be making a takeover offer around the 5th hole of the 8 hole drilling program. We KNOW there’s mineralization on the Newmont PXA border just need the numbers. Remember, gold doesn’t know “boundaries” !!!?
Comment by Jeff — August 15, 2014 @ 10:03 am
Jeff pxa stock is not trading indicative of any sort of take over, if that was the case the recently announced pp would have been held off until results came in and would have closed on the same day it was announced. A little too much pie in the sky Jeff .
Comment by Jessie — August 15, 2014 @ 11:04 am
The addition of Patrick McAndless to Doubleview’s Senior Advisory board is very significant!
Firstly, Patrick McAndless has vast experience in the region and knows the geology very well! He has 44 years of experience and just finished in June 2014 as VP Exploration for Imperial Metals.
He was part of the team that discovered the Red Chris deposit!
Farshad (CEO/Geo)has been modelling their deposit after the Red Chris deposit because of the similarities. DBV recently hit Red Rock then Black Rock in the drilling just like Imperial Metals did on the Red Chris deposit. Now the most experienced Geo of the region which was part of the team that discovered the Red Chris deposit takes an integral role on DBV’s team. Look what he is currently doing for DBV- “Mr. McAndless has commenced analysis of the data on the Hat Property and will be involved with management geological team in developing extensive and strategic exploration plan for the Hat Property”
Looks like he is taking an active role and interest in being part of a second major find in BC. Not sure what he is doing now as his resume doesn’t say anything after june 2014 when he stopped as VP of Imperial Metals but it looks like he will be very busy with DBV!
Also, kudos to Farshad our CEO and head Geo. He got DBV the most experienced and the best person to help out and it looks like he is not letting his ego (unlike many juniors) stand in the way to see this succeed. It looks like he has handed part of the reigns to him to spear head the drilling program which tells us that Farshad knows what needs to be done. This is not very typical of a CEO/head geo of a junior…..they usually want to do it themselves to get full credit of the discovery and make a name for themselves but this usually leads to failure to find a discovery.
This will give DBV a lot of credibility in the region and I believe it increases the odds of success. There are now many juniors and no land left because of the Sheslay Valley’s potential! They are now on hole 6 of this year’s drilling with a private placement about to close which will provide plenty of money to drill the rest of the year (assuming the warrants are exercised).
The Sheslay Valley is about to heat up with DVB and PGX results due out soon and both will be doing a lot more drilling. Other companies are starting some preliminary work on their properties.
Comment by goldbull636 — August 16, 2014 @ 5:52 am
Your right Jessie at the moment its not trading like its a takeover candidate, however, that could change *IF* drill results show excellent results!! Regardless, PXA will do well watch it this week JessSki!!
Comment by Jeff — August 16, 2014 @ 6:57 am
Thanks Jeff, I’ll be watching it and waiting for the results before I consider buying, there’s been way too much pumping on Stockhouse and on Bmr without actual results
Comment by Jessie — August 16, 2014 @ 8:24 am
OK Jessie, sounds like a plan.I think you’ll see it briefly halted at company’s request pending announcement -;)). Also PR on closing of small PP. Hope you don’t miss this one.
Comment by Jeff — August 16, 2014 @ 9:46 am
Agreed about some posters are pumping it on SH. There’s two guys you should pay attention to because they seem know what their talking about. Calendar and this guy called nitetime2 ;-))).
Comment by Jeff — August 16, 2014 @ 9:56 am
Balmoral reports some outstanding results this morning from Grasset…
Comment by Jon - BMR — August 18, 2014 @ 4:13 am