Gold has softened today on profit-taking and a stronger U.S. Dollar…the yellow metal has traded within a range of $1,311 to $1,321 and is currently down $4 an ounce (as of 9:05 am Pacific) to $1,314…Silver slipped slightly below $22 an ounce but is now at $22.03…the CDNX is also taking a breather…the Venture got as high as 1748 in early trading but has since retreated to 1737, a 8-point loss for the day…the successful strategy with precious metals and the CDNX over the last 2+ months has been to buy into any dips or pullbacks and we don’t see that changing anytime soon…Gold Bullion Development (GBB, TSX-V) is unchanged at 57 cents…volume has lightened up in GBB the last few trading sessions, typical of a consolidation…Bayfield Ventures (BYV, TSX-V), the subject of John’s “Technically Speaking” feature this morning, is off 8 cents to $1.09…Bayfield has been getting some impressive drill results recently from its property in the Rainy River district of northwestern Ontario…it has a very interesting chart as John described and could be one of the stocks that helps lead the CDNX sharply higher this month and quarter…its current market cap is approximately $50 million…GoldQuest Mining (GQC, TSX-V) is up another penny this morning to 22 cents…we added GQC to the BMR Portfolio last week at 19.5 cents and we believe this has the potential to deliver massive gains…GoldQuest has been active in the Dominican Republic (home of one of the world’s largest gold deposits, Pueblo Viejo) for nearly a decade and they have several advanced-staged exploration projects there including Las Tres Palmas (very good recent drill results) and Las Animas which has a 43-101 indicated and inferred resource of 129,000 ounces of Gold, 2.5 million ounces of silver, 106 million pounds of copper and 130 million pounds of zinc with potential for considerable expansion…the company also holds the Toral zinc-lead-silver deposit in northwest Spain which has an historical non-compliant resource estimate of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…a 43-101 is currently being prepared on Toral which remains open along strike and downdip…GoldQuest has also secured a second polymetallic project a short distance from Toral and with similar characteristics…further details on this will be announced by GoldQuest after full title has been received from the Spanish authorities…GoldQuest recently broke out of a 2-year consolidation and the next major resistance on the stock is at 50 cents…we normally focus on the lesser known juniors with much smaller market caps, but we suggest investors keep an eye on Noront Resources (NOT, TSX-V) which appeared to bottom out recently at $1.10 when we last mentioned it at BMR…Noront has a history of sudden, sharp moves and its 100-day moving average is very close to a turnaround…from a fundamental standpoint, Noront is our view is significantly undervalued given the size and potential economics of its Ni-Cu-PGM deposit at Eagle’s Nest…looking out over the next 6 months, Noront has an excellent chance to be a very strong performer as the technicals continue to improve on the stock and a greater appreciation of its value sets in with investors…its risk-reward ratio is currently very attractive…Noront is currently off 4 cents at $1.28…
October 4, 2010
5 Comments
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Hello,
I have been following your “musings” for some time now and I find it odd that you never seem to have anything negative to say…….everything is always rosy. Were you commenting during the Bri-X brouhaha? If a stock goes up it is obviously good but when it retreats it is always good (in your eyes) too. Never do I see the slightest indication that you think it may be time to bail. I wonder why?
Bear
Comment by Black Bear — October 4, 2010 @ 9:37 am
Black Bear, thank you for the feedback. I guess the best answer to that is that we take a long-term approach, and right now this is one of the best times in history to be invested in quality junior gold stocks (and resource stocks in general). If you don’t believe that, then the train is leaving the station without you. In certain situations we have come out with some “not so rosy” statements on a particular stock at a particular time or the market as a whole at a specific time. But yes, generally, we have been consistently upbeat for the past year and that strategy has been successful. In fact, the BMR Portfolio (on a simple hold strategy) is up more than 150% over the past year vs. about 20% for the CDNX. This is an incredible bull market. And we get especially excited when the market pulls back a little bit like today. I’m sorry, but if you’re a bear on this market going forward, the bulls are going to stampede right over you.
Comment by Jon - BMR — October 4, 2010 @ 10:13 am
The other day Theodore asked about Seafield Resources. Have you given his question any thought?
Thank you,
Jim
Comment by Jim — October 4, 2010 @ 10:23 am
Yes, Jim, thank you for reminding me. Theodore did ask about that and my apologies to him for not responding sooner. The stock enjoyed a strong September, up nearly 30%, and you’ll notice that on Friday it tested its rising 200-day SMA just above 21 cents. Previously, the 200-day was resistance, so what we saw Friday was normal and healthy from a technical view. The stock then closed Friday at 25 cents and is a little weak today but on low volume. The recent overbought condition has now pretty much cleansed itself. So I would say the stock is consolidating nicely at current levels, looking for a catalyst to drive it higher. I believe that catalyst will be news from Quinchia—–they have three very good properties there, each of them capable of taking Seafield to a significantly higher valuation. We were hoping to see an update on Quinchia by the end of September but that didn’t happen. We’re hopeful it’s coming soon. The risk-reward ratio at the current price of 22.5 is really quite attractive and interest is returning to the various plays in Colombia. It should be an interesting October for this stock. The company is in a good cash position and has all that it needs to carry out aggressive exploration at Quinchia through the rest of the year.
Comment by Jon - BMR — October 4, 2010 @ 10:56 am
It’s nice to see some bantering for once. At least I am not the only one reading and it’s nice to know that BMR can defend it’s position on solid reasoning regardless of being right or wrong and lends credence to the claim of not being a pumper.
Comment by MJJP — October 5, 2010 @ 8:01 am