Gold has traded in a range of $1,422 to $1,437 so far today…as of 9:15 am Pacific, the yellow metal is essentially unchanged at $1,428 an ounce…Silver is 18 cents lower at $35.90 while the U.S. Dollar Index is off one-tenth of a point to 76.74…clearly there are worries in the markets over turmoil in the Middle East which has the potential of spreading into Saudi Arabia…crude oil prices however are holding steady today…the CDNX is showing more weakness, down 44 points at 2341, but this minor pullback that started Monday is likely close to running its course as John’s chart this morning outlined…the CDNX has now retreated into an area of very strong support – the downside from here now appears to be limited based on previous patterns and the support of the rising 50-day moving average (SMA) only about 15 points below current levels…the CDNX has not dropped below its 50-day SMA since the huge run started last summer…Gold Bullion Development (GBB, TSX-V) is off 2.5 cents at 45.5 cents…yesterday’s intra-day low of 43 cents may have been an important bottom…as our two articles pointed out yesterday, Gold Bullion’s fundamentals are solid as the company is clearly sitting on a significant and growing deposit at Granada…we’re in the bull market of a lifetime with Gold and any company that has what GBB has is in an enviable position…Adventure Gold (AGE, TSX-V) is down a penny at 63 cents…there are many areas in the LONG Bars Zone that are showing promise, not the least of which is the far western part of the Preliminary Block Model…mineralization extends outside the Block Model to the west and southwest and onto ground held by AGE…we expect Adventure Gold will be drilling its Granada Extension Property in the near future…AGE also holds a small but strategic slice of land in the LONG Bars Zone Eastern Extension…Sidon International (SD, TSX-V) took a hit yesterday after initial drilling results from its Morogoro East Gold Property in Tanzania fell short of market expectations…Sidon fell to 7 cents yesterday and is off another half penny this morning to 6.5 cents, giving it a market cap of approximately $7 million…the stock has become very oversold technically, not unlike the situation we saw with Currie Rose in January…results from four deeper holes Sidon has drilled at Morogoro are still pending…the property continues to have merit…in the exploration business, many companies have gone on to make significant discoveries after poor or lackluster early assay results…the company is also working on a placer operation at Morogoro and has property near Canaco’s (CAN, TSX-V) discovery as well…so it is not all doom and gloom for Sidon…near-term resistance for the stock will be around 9 to 10 cents, an area of previous strong support…Seafield Resources (SFF, TSX-V) is weak this morning, currently down 2.5 pennies to 34 cents…the fact that Colombia’s mining minister, Carlos Rodado Noriega, stated that Greystar Resources’ (GSL, TSX) environmental study on the Angostura Gold project is not acceptable has temporarily scared some investors away from Colombian plays…the mining sector, though, is an important part of Colombian’s economy and the government there is generally regarded as pro-business…what this does underscore, though, is how difficult it can be these days to put a Gold mine into production…this is actually another bullish factor for the price of Gold as world mine supply is flat while demand for Gold is strong…despite the market weakness since Monday, Visible Gold Mines (VGD, TSX-V) has been a strong performer and is up for the week so far…volume on the stock has also increased…the 20-day moving average (SMA) has swung positive, so something appears to be in the works here…this is a company worth keeping a close eye on as it’s sitting on approximately $9 million in cash and has plans to become a Gold exploration and development leader along the Cadillac Trend in the Rouyn-Noranda region of northwestern Quebec…VGD is currently off 2.5 cents at 42 cents after closing at 44.5 cents yesterday on over a million shares…the company has one drill program in progress (Silidor) and is about to commence drilling on another property which it holds through an exploration partnership with Cadillac Mining (CQX, TSX-V)…
March 9, 2011
7 Comments
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Hello BMR
Your posts are very informative, and your winners are in the majority. I have a question in regards to your research on companies. You have mentioned several times that the drills will tell the truth. Do you place any weight on the past histories of company principals in a company or do you rely soley on the property and its potential merits? For example, Abby, from SD does not seem to have a very good track record and the way his companies acquire property seems somewhat questionable. I believe you even questioned the wisdom of an earlier acquisition he ended up cancelling. There was also controversy with one of the people involved in SFF. Agree with it or not the market speaks clearly when something like that comes to light. I have heard that you should invest in good reputable people and that seems like a very good starting place.
Keep up the good work and it is a reminder that everyone should do their own DD as well.
Comment by Paul — March 9, 2011 @ 9:56 am
I don’t see this as a minor pullback. The chart has completed an “M” or double top formation. 10% to 30% haircut on its way. We are long overdue
Comment by david — March 9, 2011 @ 9:26 pm
Find this today!
Mining MarketWatch Journal just released an article on Abcourt Mines, here is URL http://miningmarketwatch.net/abi.htm
Undervalued & Ripe for Buyout or Spin-Off to Unleash Value
Abcourt Advancing to Reopen Two Past Producers
“Share price is only attributing value to the in-ground zinc resources (valued at <
.04/share per Zn-equivalent lb) at the Abcourt-Barvue project – ignoring its large ~20M oz silver resources, the 215K+ oz gold resources at Elder, other properties and the significant infrastructure the Company possesses from when it was a past producer at the silver-zinc operation and the Elder Gold mine sites."
"The current infrastructure value alone on the 2 quality past producing projects is over $CDN20M; the current market cap of ABI.V is close to its infrastructure valuation alone."
"With only ~110M shares outstanding (151M fully diluted) and trading under CDN
.30 ABI.V is ripe for significant upside revaluation to better reflect the inherent resource value and immense gold, silver, and zinc potential; <$1.00 per share would seem a more appropriately discounted trading price."
Comment by Carl — March 10, 2011 @ 2:55 am
Thanks Carl for the article!
Comment by Marc — March 10, 2011 @ 5:10 am
sentiment wins this battle… will be a big ouch day!
Comment by Jeremy — March 10, 2011 @ 6:35 am
I don’t see this as a normal or “healthy” pullback – there is something bigger at play. It’s been a lousy year so far and the price of gold has reached new highs but it’s not reflected in the market so I think the highs are for the wrong reasons and don’t encourage market confidence.
Comment by Andrew — March 10, 2011 @ 6:52 am
Here is an interesting perspective on the Miners Vs the physical price action:
http://traderdannorcini.blogspot.com/2011/02/hui-gold-ratio-gld-and-ratio-spread.html
Comment by Herb — March 10, 2011 @ 7:20 am