Gold has traded between $1,112 and $1,222 so far today…as of 10:00 am Pacific, bullion is off $2 an ounce at $1,113…Silver has also reversed lower, falling 17 cents to $15.25…Copper is flat at $2.33…Crude Oil is 24 cents higher at $42.47 while the U.S. Dollar Index is up slightly at 96.41…
Yet another surprise from China this morning after what has already been a tumultuous week in that country with a currency devaluation, amid other developments…the world’s largest producer and consumer of bullion said that it now owns about 1,677.4 metric tons of the metal…what’s surprising is that this is the 2nd update in a month after China had been silent on the size of its hoard for nearly 6 years…most analysts expected the next report would not come until about 2020…instead, it happened in just 29 days…will they start reporting now on a monthly basis?…
China increased its Gold reserves by 1.1% in July, or about 19 tons, according to data from the central bank today…on July 17, the central bank said it owned 1,658 tons, roughly 600 tons more than what was reported in 2009…so the central bank accumulated 600 tons in 6 years (an average of 8 tons per month) and then 19 tons just last month?…is it doubling its rate of Gold buying?…
34-Year Gold Monthly Chart
Gold declined 44% from its summer 2011 all-time high to the recent low around $1,070…in historical terms, that’s an entirely normal correction – as recently as 2008, bullion tumbled 33% over a very short period…from 1996 to 1999, the drop was approximately 40%…
While no one can say for certain that Gold has officially hit bottom just yet – a test of the $1,000 level can’t be ruled out – decreasing global mine supply (it was down 5% in Q2 according to the World Gold Council), currency instability and a host of other factors could yet produce a powerful “Wave 5” move over the next 2–3 years as John has outlined in the chart below…
TSX Gold Index Updated Chart
A significant rally is clearly underway in the TSX Gold Index, despite some weakness for a 2nd straight day, as shown in this 5-year weekly chart…we can state that based on the increasing up momentum in the RSI(14), out of very oversold conditions similar to last fall and the spring of 2013, plus the position of the Slow Stochastics after it landed at previous support…the +DI indicator is also increasing rapidly which could lead to a bullish +DI/-DI cross in the near term…
Nearest key resistance is 135…the Gold Index is now down 2 points at 130, after climbing as high as 134, as of 10:00 am Pacific…
Copper Update
Copper is so far holding critical support, but a fresh concern is that Chinese importers using bonded Copper stocks as collateral for short-term dollar loans face rising costs after the unexpected depreciation of the yuan earlier this week, potentially forcing smaller firms to give up the metal to banks for resale in the coming quarter…that is bad news for firms using Copper-backed financing to raise funds in China, still a common practice due to restrictions on bank credit and despite greater scrutiny by authorities after a major metals financing scam last year…
Some industry observers say the risk of Copper being dumped could hit future imports, piling more pressure on international markets already grappling with oversupply and slowing economic growth in China, the world’s top metals consumer…
Copper 20-Year Monthly Chart
Copper has touched the bottom of a downsloping flag as well as a long-term uptrend support line…the metal is resting at strong support and could either rally significantly from current levels or potentially break down…sell pressure remains strong…where Copper goes from here will depend on developments in China…
Today’s Equity Markets
Asia
Asian markets were relatively quiet overnight…China’s Shanghai Composite edged 11 points higher to close the week at 3965…
Europe
European markets were down slightly today…the euro zone’s modest economic recovery suffered a setback last quarter as France stagnated and Germany posted a tepid expansion, underscoring deep-rooted fragility in the region that could threaten the global recovery…
The figures, released this morning, came amid heightened concerns in financial markets about China’s economy, which has been an engine of growth for global activity over the past decade…they put greater pressure on the U.S. to generate output for both itself and its trading partners, and suggest that the ECB will keep its aggressive stimulus measures in place through at least next autumn as planned…
GDP growth in the euro zone slowed to 0.3% from 0.4% in the 1st quarter, the European Union’s statistical agency reported today, falling short of economists’ forecasts of a 0.4% gain…GDP grew 1.3% on an annualized basis, Eurostat said…
North America
The Dow is up 29 points as of 10:00 am Pacific…in Toronto, the TSX is 13 points higher while the Venture is off a point at 575…a late-day rally in the works, perhaps, to finish the week?…
Garibaldi Resources Corp. (GGI, TSX-V) Update
Garibaldi Resources (GGI, TSX-V) is one of the Venture’s volume leaders and top gainers today after reporting encouraging news out of both Mexico and British Columbia…
The logjam appears to have cleared in the prolific Sheslay district where Doubleview Resources (DBV, TSX-V) and Garibaldi are the most active…GGI is sending in crews to the Grizzly over the next few days to commence an immediate surface exploration program to define final drill targets at the 270 sq. km project…they’ll be focusing their efforts on Grizzly Central and the newly-acquired Golden Bear claims adjoining the Grizzly southern boundary where a high-grade Gold showing (150+ g/t Au) was discovered during construction of the Golden Bear mine access road in the 1980‘s…that area was never systematically followed up…
Meanwhile, in Mexico, assays are pending from 7 drill holes at GGI‘s La Patilla Property where metallurgical testing has also returned an impressive Gold recovery rate of 95% from a flotation test from a sample of high-grade material…this suggests that the quartz vein mineralization in the La Patilla system is very “clean” and amenable to a flotation system used at a nearby processing center…
More on the Sheslay district by Monday…this morning’s news is clearly highly encouraging for both Garibaldi, Doubleview and other players in the area…keep in mind, Doubleview drill hole HAT-25 was in a zone of Gold-Copper porphyry mineralization at a depth of 275 m on a dramatic 1-km step-out when the controversial Tahltan blockade temporarily shut down the drilling last month…
GGI is up a penny at 6 cents on total volume (all exchanges) of 3 million shares as of 10:00 am Pacific, while DBV has gained a penny to 10.5 cents…
Equitas Resources Corp. (EQT, TSX-V) Update
It has been an active week for Equitas Resources Corp. (EQT, TSX-V) in both the market and on the ground…the company is carrying out final ground exploration prior to commencing a 4,000-m drill program at its Garland Nickel Project near the Voisey Bay’s mine in Labrador, and by Monday we’ll have more from our recent interview with President Kyler Hardy…
Technically, EQT staged a confirmed breakout this week above previous stiff resistance at 10 cents…this 2-year weekly chart shows several promising patterns, and there’s little doubt in our view that this company will continue to draw a lot of attention over the immediate to near-term – leading up to and during the drilling process…
EQT is up half a penny at 11.5 cents as of 10:00 am Pacific…
Integra Gold Corp. (ICG, TSX-V) Update
Integra Gold Corp. (ICG, TSX-V), which has been a strong market out-performer this year, has made significant progress with its high-grade Lamaque South Gold Project in Val-d’Or…the pace of activity is impressive…since the beginning of the year through mid-July, Integra had completed 50,000 m of diamond drilling in 113 holes with up to 8 drill rigs operating on several key targets…the company has expanded its 2015 drilling plans from 50,000 m to 75,000 m, and activity is expected to ramp up again next month…
ICG was able to hold critical base support (15 to 17 cents) late last year when markets were getting pulverized…it broke out into the mid-30‘s earlier this summer before the recent plunge in both Gold and the Venture took it down very close to the 21-cent Fib. support level…
A sustained recovery from the August 7 intra-day low of 22.5 cents appears to be underway…a band of resistance exists between 27 and 30 cents, so expect that to be tested given the bullish “W” that has formed in the RSI(14)…ICG also has a rising 200-day moving average (SMA) at 27 cents…
ICG is unchanged at 26.5 cents as of 10:00 am Pacific…
RoxGold Inc (ROG, TSX-V) Update
Roxgold (ROG, TSX-V) has been firming up recently given Gold’s rebound above $1,100 an ounce…the company is aiming to put its high-grade (>10 g/t) Yaramoko Gold Project in Burkina Faso, West Africa, into production by the middle of next year…check out the company’s latest update 10 days ago…
Roxgold’s 55 Zone was fully permitted for construction in January of this year…a positive Feasibility Study was released a year ago and envisions an underground mining operation with an initial life of mine of over 7 years, and production of 100,000 ounces per year…
Technically, Roxgold is challenging resistance in the mid-70’s…note that the 50-day SMA crossed above the 200-day in late May, while RSI(14) is now showing strong up momentum after briefly falling below its uptrend line last month when most Gold stocks took a beating…
ROG is up a penny at 73 cents as of 10:00 am Pacific…
Note: John and Jon both hold share positions in GGI and DBV. John also holds a share position in EQT.
My plans got canceled, but I will wait till market close to comment on GGI and EQT.
Volume will pick up again next week on EQT, time is running out soon on this one to get a position.
Comment by dave — August 14, 2015 @ 9:24 am
Sell the house and wife, keep the kids (just being funny), and load up on GGI and EQT. The window of opportunity is narrowing on both.
Comment by dave — August 14, 2015 @ 10:02 am
EQT – I gave ya guys a hint yesterday I would have to be in by today. I was very fortunate to get my fill at .115
Comment by dave — August 14, 2015 @ 10:30 am
Wow, just got back to cell srv out of the back country, nice! All I can say Jon,is it’s about time, moving forward!! Update myself more when I get back to the loops, record volume?
Comment by Tombc — August 14, 2015 @ 10:30 am
Dave. Feel free to share your info. on GGI now that you are back. You have been bang on with EQT to date. Cheers.
Comment by Andrew — August 14, 2015 @ 10:52 am
Andrew – after market, but get some now on GGI, EQT already surging look out Monday.
Comment by dave — August 14, 2015 @ 11:25 am
Not enough time before 4. and I have sometihng going on here. be patient.
Comment by dave — August 14, 2015 @ 11:27 am
GGI; The daily parabolic Sar is now supporting the candle. First time since march its below the candle (instead of being above candle). Glad I bought some today.
Comment by tony T — August 14, 2015 @ 11:31 am
Jon you probably trying to speak with Steve today !
Comment by Guy Delisle — August 14, 2015 @ 11:49 am
I received a response from the IR folks. Tahltan Drilling is expected to conduct the drilling for GGI. The NI43-101 is still being worked on for their BC properties.
Comment by Andrew — August 14, 2015 @ 12:23 pm
Andrew. Did the Ir peeps for GGI give you an eta as to when drilling will commence?
Comment by tony T — August 14, 2015 @ 12:55 pm
Whew what a day. I first want to say that some of my posts here have found their way to SH. I am not happy about this, what I post here I expect to stay here. I will be very careful what I post in the future. As the great Warren Buffet would say: It’s not what you buy but rather when you buy it. You make your money when you buy it and not when you sell it. Some may have to give thought to this statement.
Why GGI:
1. They have 2 projects going on in 2 different parts of the world and involve both silver and gold, along with copper up at the Girzzly.
2. They have advanced drilling with assays pending.
3. They are cheap at .05 and this stock can move quickly.
4. National Bank selling dried up at 10am, and Jon is probably right, they are about done. So the flow through selling could be gone.
5. They have a small market cap, way to small for the projects of merit.
6. Volume usually precedes upward price movement.
7. The last 4 out of 5 daily candles have been positive.
8. Many analysts feel silver will soar with a higher percentage than gold soon.
9. THIS IS THE BIGGEST REASON THOUGH: You would have to know and follow TA to have had a chance to seen this coming. If you look back to July 18, you will see that the daily candles were hammers for about 5 days or so yet the stock kept dropping from .07 to .045 for a low. BUT, the biggest clue a reversal was on its way soon was the Accum/Dist line was rising. In the TA world, that is a serious divergence and spells breakout ahead soon. The news today is what did it. I am sure the 6’s get taken out early next week as this NR is absorbed and GGI is on its way to bigger and better things. I was not liking National Bank still dumping after I bought but when they stopped at 10, I thought how ironic. I look for GGI to have a good week next week.
Why EQT:
1. The spec alone is going to drive this one.
2. It is the greatest story since the greatest mining hit of all time. No, this is not 1995, but it does not have to be.
3. Without being a Geologist, looking at the map with the fault line from Voisey Bay to Garland says a lot. Go to website, click on presentation and scroll down to page 5, Look hard and think hard at it.
4. The chances of them hitting nickel are extremely high, only wonder is what grade.
5. Serious eyes are on this one. Some buy when the drill starts turning, some buy after assays announced. Hence, the chances are good we aint seen nuttin yet folks as far as the share price.
6. The nickel at Voisey Bay did not just show up in that little cluster with nothing around it. There is more, possibly a lot more.
7. The management is WORLD class and that’s what you need to get the job done.
8. So far, the Northern Miner and Jeb in the U.S. have written about EQT, but the big money is on the sidelines just waiting.
I was surprised to see a guy from L.A. i believe who I don’t think is into mining stocks pick up on EQT and do an article. Now, no writer to this point has talked dollars and I said that I would not speculate on a price for EQT. This is the first writer that has and he also mentions the price at .12 and a possible 50 bagger from here. Go to Examiner site “How do you pick the winner?”. Very interesting article.
One last thing, keep in mind that Jon brought EQT to the attention of everybody on this board so he deserves the thanks. I just signed up later as a cheerleader as some say. I have done my homework and made the necessary contacts to do so. As for what Bert would say: I think it would be one word, BRAVO.
I agree with Jon on DBV, It’s another winner. Have a good weekend, cheers.
Comment by dave — August 14, 2015 @ 1:07 pm
I decided to go crazy today. After I saw the news release from GGI I couldn’t believe you could still buy shares at .05 so I bought 350,000, of course it’s always a gamble but at .05 I love the risk/reward scenario especially after the news. Thanks to BMR for providing the update otherwise I likely wouldn’t have seen it. Thanks to others (ie. Dan, dave) for providing info on EQT, looks like it’s ready to move. I think next week will be fun.
Comment by Danny — August 14, 2015 @ 2:49 pm
Tony. No timing as to when the GGI drilling will commence. They still have some ground exploration to conduct first to pin point their drill targets. Perhaps someone who is more experienced than I will chime in.
Great write-up Dave and as always, Thanks to BMR for their coverage of the issues.
Comment by Andrew — August 14, 2015 @ 3:17 pm
Andrew, one thing we’ve learned about the Sheslay district is how important geochem is. I suspect, from their work earlier this year and previously, that they’ve honed in on a general area at Grizzly Central and now with some infill sampling and other work, perhaps some wide-spaced IP, they should be able to specifically nail down the best targets, correlating the geochem with the geophysics and geology. Won’t take them long. A very attractive scenario has to be building at the Grizzly and we should hear more soon.
Comment by Jon - BMR — August 14, 2015 @ 3:34 pm
May I also add that I think it is Mexico that sets the sails for GGI in the near term.
Comment by dave — August 14, 2015 @ 4:11 pm
I have positions in both GGI and DBV. But say u had a little extra money, at these prices which would you put that money into? I think Dbv has the best team in the game and is about to hit big but Ggi at 5 cents is hard to pass up.
Comment by Sam — August 14, 2015 @ 5:52 pm
When they start drilling speculation will set in, there will be some big time action. Jon what kind of drill campaign should we expect with the money they need to spend?
nb of hole, depth?
Comment by Martin — August 14, 2015 @ 6:13 pm
Very happy that action resume 🙂
Comment by Martin — August 14, 2015 @ 6:15 pm
Eqt – interesting, stockta showing no resistance levels.
GGI – once the .06 gets out of the way, she should move up faster.
DBV – if she can break that .12 she goes to .14 and then .17 for resistance levels.
Comment by dave — August 14, 2015 @ 6:15 pm
Well hopefully, we will also get an update on GGI’s Rodadero property soon as well. I still think that this one might be sold off to someone at some point.
Comment by Andrew — August 14, 2015 @ 6:32 pm
Tonight I receive an email from DBV :
Good morning, investors. And it’s a very good morning!
Significant news just out regarding the Sheslay District.
Click on the link below as BMR, which has been the leading online media authority for the district, has just published “Breaking News” on the area following information that has just crossed the wire from our neighbor,Garibaldi Resources.
Sheslay District Logjam Clears, GGI Goes Into Grizzly – Can The Hat Be Next?
We will keep our investors updated accordingly on developments regarding the Hat Project.
Regards,
Farshad Shirvani
Comment by Guy Delisle — August 14, 2015 @ 7:15 pm
Imo,the Kaketsa Pluton and the rest of the Grizzly will prove to be another Northern Dynasty Pebble Deposit.We are looking at possibly the greatest mining play in the world today,that is the potential here.And all for .06,but not for long.
I think in the very near future the Grizzly will dwarf the Hat beyond belief.
Comment by jim niles — August 15, 2015 @ 3:08 am
Dave, nice summary on both GGI and EQT.
GGI – When the drill starts to turn on their property at the Grizzly, speculation will certainly drive the share price up as investors/geologist have been waiting with anticpation for over two years.
EQT – With the nine knock your socks off targets about to be drilled, this will be fun to watch especially with no resistance showing at this stage.
Comment by Dan — August 15, 2015 @ 4:11 am
Jon, John and Terry,
A very big thank you from me and I am sure all your readers for your extremely astute, professional and hard work, bringing out the truth surrounding the land claims, and real motive of the Sheslay logjam.
It certainly kept my hopes up and prevented me from selling my GGI shares. I did express frustration at times during the fiasco but every response you replied with, made me sit back and think before acting irrational. Actually lucky to pick up shares at 5 cents just after you posted the breaking news.
Again, I will be forever grateful for your tireless effort and due diligence surrounding the whole event.
Kudos!!
Comment by Dan — August 15, 2015 @ 4:32 am
“Where Copper goes from here will depend on developments in China” I’m curious whether China is gonna use its $4 Trillion dollars in foreign exchange reserves & assets to stimulate economic growth beyond the $800 Billion to prop up the Shanghai stock market…
Comment by Concerned Citizen — August 15, 2015 @ 6:14 am
I second that, although I just bought GGI and don’t own DBV yet, I know their efforts have been tiresome.
John, I was wondering if you can look at EQT chart on stockchart and see what resistance or Fib. exist upward. Stockta had resistance at .13 and .14 on Thursday, but it went all green after Friday with Support at .13. Thanks
Comment by dave — August 15, 2015 @ 6:15 am
Yes from me as well a big thank you to the fine BMR folks for the Sheslay coverage.
Comment by Concerned Citizen — August 15, 2015 @ 6:17 am
Jim Niles – Not putting down the Hat at all, I agree with your post #23
Comment by dave — August 15, 2015 @ 6:17 am
Dan, I second your thoughts regarding BMR. The folks here Jon, John and Terry have always displayed utmost professionalism despite the frustration that gets expressed from time to time. It is so nice to be on a forum where people act like adults as opposed to Stockhouse which is such a gong show sometimes. Well done BMR!
Comment by Danny — August 15, 2015 @ 8:25 am
Thank you, Danny, and others. We appreciate the positive feedback, especially since this has been a particularly challenging and time-consuming period given overall market conditions, the need to effectively discern what’s happening on multiple fronts, and of course included in that has been the Sheslay controversy. There are blessings ahead, what’s shaping up will hopefully be very different than the market we witnessed over the final 4 months of last year. At both ends of the country – from the Sheslay district to Labrador – there are opportunities for explosive developments in the weeks ahead that could transform this market. Keep in mind John’s 39-week cycle chart. We are approaching a reversal time.
This site wouldn’t exist and keep growing without our valued readers, you are the ones who are really key. On that note, we’re beginning to receive some interesting iPhone submissions (video) with comments on different aspects of the markets. We encourage everyone to consider a submission, we’re all passionate about something related to the markets. Send to [email protected] (just 2 minutes or less). Have fun and keep it simple.
Another component of this is that we’re also searching for new talent, new contributors as we expand the site in the coming months.
Comment by Jon - BMR — August 15, 2015 @ 9:13 am
Jon, what would be your best guesstimate on the actual GGI public float, what % does management own?
Thanks
Comment by Jeff — August 15, 2015 @ 9:38 am
Jeff, GGI management holds approx. 20%. Sprott is completely out the picture, thankfully, as that reduces a major overhang threat (they held about 20%). All or almost all of the flow-through from last December has now been soaked up. Numerous very loyal American shareholders invested significantly in GGI in previous years, and that stock remains in tight hands but I can’t estimate what that total would be. It is significant, however.
So compared to the situation last year, you still have management with a very strong position (they haven’t sold a single share), little institutional ownership (the biggest change over the past year) which is favorable given the current climate, and a powerful retail base. So liquidity is now much better. Within that retail base you’ll obviously have some “flippers”, but what encourages me about the current share structure is that solid retail component – many Presidents/CEO’s underestimate the importance of a foundational retail base. These retail investors can bring a lot of enthusiasm into a company that shows great promise and is going in the right direction – they are each ambassadors for the company. Volume/liquidity of course are very important. GGI has that now as yesterday demonstrated, and the average daily volume #’s in recent months prove. The downtrend has been broken and the balance of the year should prove exceptionally interesting.
Comment by Jon - BMR — August 15, 2015 @ 10:19 am
Jon, good post #33. – Also, another article to read on EQT if you dare and if you have the time. Yes, Goldie contributed to this article.
It helps to reinforce that EQT is not a P&D, or just another stock play. It will help you get your head out of the venture and its ways, and realize this is a serious spec stock here with an enormous chance of being the next big discovery in the northern hemisphere.
dmec.ca/ex07-dvd/E07/pdfs/45.pdf
Comment by dave — August 15, 2015 @ 10:31 am
Dave, the 2 Measured FIB levels on my chart are 15c and 23c.
Comment by John BMR — August 15, 2015 @ 10:47 am
Thanks John.
Comment by dave — August 15, 2015 @ 11:50 am