Gold is trying to bounce back after some profit-taking this morning which took the yellow metal to a low of $1,422.50…as of 8:45 am Pacific, Gold is off just $3 an ounce at $1,428…Silver is essentially unchanged at $35.88 while the U.S. Dollar has gained one-quarter of a point to 76.78…Chinese Gold demand is on the increase…it has exceeded 200 tonnes in the first two months of this year…just a couple of months ago, China reported its Gold imports for the first ten months of 2010 totaled 209 tonnes…if the 2011 pace were to continue, China would purchase what would total close to half of this year’s world mine production…the world’s biggest commodities trader, Glencore International, is bullish on the outlook for the asset class, expecting last year’s buoyant trends based on growth in emerging nations such as China to persist this year…the CDNX, which hit a new two-and-a-half-year high of 2465 yesterday before retreating, is down another 29 points this morning to 2395…this pullback, however, is consistent with others we’ve seen in recent months, so we see no reason for alarm…the rising 10 and 20-day moving averages (SMA’s) are resting just below 2400 while the supporting 50-day SMA is at 2325…there is plenty of technical support…these occasional minor pullbacks in the CDNX have consistently presented good buying opportunities…successful investors will buy into weakness when the overall trend is up…a case in point this morning is Gold Bullion Development (GBB, TSX-V) which closed below support at 50 cents yesterday with weakness carrying over into today…the stock dropped as low as 43 cents this morning in trading that was reminiscent of early July last year when the stock also became heavily oversold and touched a low of 43.5 cents before recovering…within two months GBB climbed to a new 52-week high of 79 cents…as our report outlined this morning, the fundamentals of Granada are completely intact and a major Gold deposit is in the works…in addition, a very promising area in the Eastern Extension (Aukeko) is being drill-tested soon which has the potential of taking this project to a whole new level…GBB is currently at 46 cents which gives the company a market cap of only $73 million…we say “only” because if Gold Bullion is able to prove up several million ounces in the LONG Bars Zone, which seems very possible given results to date and so much ground that has yet to be drilled, this stock will be at much higher levels…yes, we’d like to see the company ramp up exploration at Granada but a substantial Phase 3 drill program (50,000 metres) is in progress with results on many holes still to come in…we expect Adventure Gold (AGE, TSX-V) to start drilling its Granada Extension Property soon which can only be positive for the Granada play as a whole…AGE is currently off 2 pennies at 67 cents, right near its rising 10-day SMA which has provided impressive support since the beginning of February…strength is building in Visible Gold Mines (VGD, TSX-V) which is up another 2 pennies this morning at 42.5 cents…VGD is taking a very aggressive approach to exploration along the Cadillac Trend…the company is sitting on approximately $9 million in working capital and is about to commence a drill program at a second property, immediately adjacent to Vantex’s (VAX, TSX-V) Galloway Project and its Moriss Zone Discovery…VGD only has 48 million shares outstanding and the chart is looking much more favorable after the stock recently appeared to bottom out in the mid-30’s…we suggest investors do their DD…Visible Gold Mines could emerge as a major player on the Gold exploration and development scene in northwestern Quebec…Manitou Gold (MTU, TSX-V), which got as high as $1.13 last week on a spectacular drill result, has pulled back into the 60’s where there seems to be strong technical support…MTU fell as low as 62 cents this morning but has since recovered to 66 cents, a loss of 2 pennies for the day…
March 8, 2011
22 Comments
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Press "Reload" for fresh quote
Hey Guys
just wondering when the 2nd part of the interview with Victor from CQX will be posted?
thx greg
Comment by GREG H — March 8, 2011 @ 8:51 am
Anyone know the history behind Anglo and Quinchia – they drilled at Miraflores and Dosquebradas and Seafield re-drilled the “spectacular” Miraflores hole and in yesterday’s news release they mention that they re-drilled another hole deeper than Anglo. Did Anglo own the claims to Quinchia at the time, is there a reason they did not continue their exploration etc.? Thanks for any input.
Comment by Andrew — March 8, 2011 @ 10:57 am
Jon .. any view or comment or thoughts on why VGN hasnt traded this day.. besides the obvious of course:)
Comment by Jeremy — March 8, 2011 @ 11:02 am
Jeremy
be glad it has not traded today, I wish none of my stocks were trading today,lol, this is ugly.
Comment by GREG — March 8, 2011 @ 11:30 am
We are do for a Market correction . Maybe 10 % For major markets but 20-30 % for juniors and penny stocks. Not to happy about it but c’est la vie.
Comment by Andre — March 8, 2011 @ 11:41 am
Haha, that’s funny Greg, at least we find out where the support levels are. 🙂 I sold some SFF and bought back at a lower price – SFF has me in a bind and I didn’t see any alternative to try to turn it around a little. Brent Cook was asked about SFF on BNN last night – he is not impressed with management.
Comment by Andrew — March 8, 2011 @ 11:45 am
Now that Sidon (SD) has released their latest drill results do you think you will be able to get that interview?
Comment by Ian — March 8, 2011 @ 11:57 am
Another example of ventur dark side.Sidon SD.V has heavy selling since a week before any news… news comes out at 2:45 PM today and you see the results. That’s the ugly side of investing on the ventur. I hope everyone are learning.
Comment by Andre — March 8, 2011 @ 12:04 pm
Jon!
Have you got an answer when ABI is going to start dewatering the mines??
Comment by Carl — March 8, 2011 @ 12:08 pm
What kind of screwed up NR was that from SD..????? its like we drilled and found nothing and we are happy about it..???? when will these guys learn!!
Comment by Jeremy — March 8, 2011 @ 12:19 pm
André, Sidon`s news release was a long time in coming and when it did it must have been a huge disappointment for patient investors. Was the selling you mention impatient investors or something else? I looked through the news release and it would have persuaded me to sell too had I been a shareholder. I’ve learned that so often investors will sell on news unless it is spectacular, they also sell on lack of news. If the fundamentals and technicals are sound I stick with a stock as long as I can. I’m nervous about this week though, even if it is a normal pull back at present – I do feel something bigger brewing.
Comment by Andrew — March 8, 2011 @ 12:22 pm
gbb closing above its 300 day…. if there is anything positive in this days rodeo…. 🙁
Comment by Jeremy — March 8, 2011 @ 1:01 pm
Hi Jon, GQC is supposed to show off some core at the PDAC today and tomorrow. Will the pics be posted on their website after I wonder? Does anyone know if this core was from previous drilling or current drilling? I am also surprised they haven’t released results yet, unless they are still not received.
Comment by Dan — March 8, 2011 @ 1:33 pm
Hmmmmmm……First CUI gets slaughtered….today it is SD….SFF doing poorly on good results….whens the pain going to end?
Comment by Jake — March 8, 2011 @ 1:41 pm
Yes, they are in the PDAC Core Show which is today and tomorrow…….I assume this core is from last year’s drilling at Escandalosa…I know they would have liked to have had results in time for PDAC but assay labs aren’t too concerned with show schedules……
Comment by Jon - BMR — March 8, 2011 @ 2:04 pm
Not yet, still trying. Hopefully will have something tomorrow.
Comment by Jon - BMR — March 8, 2011 @ 2:05 pm
Hi Andrew, Anglo got some good results from about 8-10 holes and an in-house estimate based on limited drilling revealed a non-compliant estimate of 2-4 million ounces at Dos Quebradas, depending on what cut-off grade was used….since that time the Dos Quebradas Property has been divided up a bit, and Seafield has part of it (I think the best part)……no particular reason why Anglo stepped away from Dos Quebradas…..this type of thing is typical in the industry and it certainly wouldn’t be the first time a major abandoned a project that went on to become a major deposit or a mine….I guess they had other priorities that were higher up the ladder than Dos Quebradas….
Comment by Jon - BMR — March 8, 2011 @ 2:11 pm
Disappointing initial assay results from Sidon but that’s the nature of the exploration business. Doesn’t mean they won’t eventually hit, and these initial results should give them a better idea of the system they’re dealing with. The herd was dumping stock today. Quite often the best strategy is to go against the herd mentality. At 7 cents the market cap on Sidon is about $6 million.
Comment by Jon - BMR — March 8, 2011 @ 2:20 pm
Hi Jon, I would like to commend you for an excellent report on GBB. As you stated it is easy to see that Granada is big and getting bigger. We all would like to see the drilling ramp up at Granada and I am sure Basa will deliver. Remember, he does what he says he is going to do and that is drill, drill, drill. I believe if they hit at Aukeko with some nice grades, then it becomes a whole new ball game. Like you said the eastern extension is already bigger than the preliminary block model and we all know the potential ounces there…and that was only down 70 meters I believe. I also look forward to your top two dozen holes….posted tonight?
Thanks,
Comment by Dan — March 8, 2011 @ 2:42 pm
Jon, thank you very much for your clarification of Anglo; you are a mine of information. 🙂
Comment by Andrew — March 8, 2011 @ 3:04 pm
To BMR team
You guys have been criticized about some of your pics not doing well, like sd,gbb and sff, but i want to thank you for your hard work and dedication to inform. Most of your pics had great gains and opportunities to make a bit of $$$. So I am not sure what people are complaining about.
Thanks again
Comment by vlad — March 9, 2011 @ 6:37 am
Thanks, Vlad…..overall we have done very well. This is the exploration game and there are risks and uncertainties. We’ve had two 10-baggers (GBB and SFF) which have come off from their highs but both still have enormous potential and ultimately could reach new highs. Richfield has developed a world class gold deposit in central British Columbia and has increased 5-fold. Adventure Gold has been a star performer along with Cadillac Mining and even Greencastle. CUI and SD had huge runs. GoldQuest has done exceptionally well and is a double at the moment. So we’ve introduced a powerful list. It’s important for investors to lock in profits along the way.
Comment by Jon - BMR — March 9, 2011 @ 7:18 am