Gold traded as high as $1,342 this morning but has since pulled back…as of 9:25 am Pacific, the yellow metal is up $2 an ounce at $1,335…Silver has been jumping around and is now 28 cents higher at $28.29…the U.S. Dollar Index is off half a point at 77.17…political dynamics are clearing changing in the Middle East…the King of Jordan has sacked his government this morning and appointed a new prime minister…this comes amid even more unrest in Egypt as Mubarak’s days there appear to be numbered…for the moment this political upheaval has had minimal impact on oil and Gold prices but that of course could change…the CDNX has started February on a strong note…the Index is up 19 points at 2294 as of 9:25 am Pacific…the CDNX is technically better positioned now than at any time over the past few weeks to finally bust through resistance just above 2300…after hitting an all-time high of $5.17 yesterday, and testing that level again this morning, Richfield Ventures (RVC, TSX-V) has backed off slightly…RVC is currently off 13 cents at $4.90…Richfield’s Blackwater Project is now garnering even more attention…a major new mining camp is emerging in that part of central British Columbia and there are two other companies we follow with strategic land packages in the immediate vicinity of Blackwater – Troymet Exploration (TYE, TSX-V) and Greencastle Resources (VGN, TSX-V)…Troymet, up a penny at 25.5 cents this morning, starts drilling shortly…Greencastle is off half a penny at 24 cents…John is working on a couple of revealing VGN charts which we’ll be posting later today…Gold Bullion Development (GBB, TSX-V) is down 1 penny at 73 cents on relatively light volume…Cadillac Mining (CQX, TSX-V) is off 3 pennies at 24 cents…Cadillac has the lowest market cap of any company we follow (only $6 million) and the drop in half from 50 cents represents a unique opportunity as the underlying fundamentals with this situation are actually even better now than they were a month ago at a much higher share price…a turnaround has started with Currie Rose Resources (CUI, TSX-V) which is up 2.5 cents at 19 cents…CUI is coming out of deeply oversold conditions which underscores the importance of buying into weakness and being patient…Currie Rose has a terrific land package in Tanzania which is being worked on more than ever this year…as February begins, one of the best opportunities we see for this month is GoldQuest Mining (GQC, TSX-V)…drilling started at its La Escandalosa Project in the Dominican Republic six weeks ago and we’re expecting an update sometime this month…the company is drilling 30 to 40 holes in this phase at La Escandalosa…the probability of expanding the current resource is very high – the 43-101 last November was based on a limited amount of drilling over a very small portion of the two kilometre strike length of this very interesting property which has the potential to be a company-maker for GoldQuest…the fact that the very well respected Bill Fisher has agreed to be Chairman of GQC is very telling, in our view, of what is unfolding here which is a powerful geological success story…technically, GoldQuest is sitting on very strong support in the mid-30’s…we believe it’s just a matter of time before the resistance in the low 40’s is overcome…GoldQuest is currently up a penny at 36.5 cents…
February 1, 2011
12 Comments
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Hello!
Is there any triggers in the near future for ABI?
Comment by Carl — February 1, 2011 @ 9:53 am
Any news on SD?
Comment by Eric Benson — February 1, 2011 @ 10:05 am
When is the Sidon interview? FFIO
Comment by Adam P E T E R S O N — February 1, 2011 @ 10:21 am
Any thoughts on Seafield Resources (SFF, TSX-V) continued sell off now heading for oversold territory? Could the news release be delayed because of politics – environment and licensing etc. problems affecting SFF’s plans? Miraflores assays should be known by now and probably DQ’s too? Even if the results are good the market seems to have lost confidence and I wonder how much it can recover from this point 42.5 cents and still heading down?
Comment by Andrew — February 1, 2011 @ 10:38 am
Hey BMR,
I recall you mentioned you guys are looking into some new companies to add to your portfolio; is that still in consideration?
Thanks,
Trevor
Comment by Trevor — February 1, 2011 @ 11:53 am
It always is—–we’re always looking to find interesting and unique new opportunities to uncover.
Comment by Jon - BMR — February 1, 2011 @ 12:00 pm
A lot of people made a HUGE mistake by not being patient with Seafield in the weeks leading up to the news in early December. This time is no different. All you’re seeing in the market at the moment is impatience. That’s it. The Quinchia Project is first-rate.
Comment by Jon - BMR — February 1, 2011 @ 12:04 pm
We’re trying to nail down the exact timing of this within the next day or two. Coming soon.
Comment by Jon - BMR — February 1, 2011 @ 12:05 pm
Absolutely—–they have major drill programs ongoing at two properties which are looking fantastic. A sharp move to the upside in the price of silver, which we expect could be underway now, will put more eyes on the Abcourt-Barvue Property. The technicals for ABI continue to be impressive..
Comment by Jon - BMR — February 1, 2011 @ 12:07 pm
Thanks for your input! 🙂
Comment by Andrew — February 1, 2011 @ 12:12 pm
What your opinion on CQX’s decline right now? Will we need news to reverse the decline and move up through 0.40-0.50cad again or is it possible without any news when the gold wakes up again? I’m aware of its incredible run in december and surely it does need to rest for a while. But just wonder if news is the only way to reverse the current trend or if the TA is looking good at the moment? Thanks for great job and interesting reading.
Comment by J.C. — February 1, 2011 @ 5:55 pm
Hi J.C., CQX’s weakness at the moment does not concern me because I know the strength of the fundamentals of this situation and the potential the company has. If some of the “momentum” players choose to jump ship and move onto something else, so be it…..that’s obviously what has been occurring to an extent and it gives everyone an opportunity to acquire stock at very favorable prices….look what happened with Currie Rose for example. Technically, the primary trend with CQX remains up……it’s going through a very normal pullback after such a powerful run over a short time.
Comment by Jon - BMR — February 2, 2011 @ 6:51 am