Markets are recovering this morning after yesterday’s major sell-off and some knee-jerk immediate selling at the opening bell today…Gold has hovered between $1,404 and $1,420 so far today…as of 8:20 am Pacific, the yellow metal is up $3 an ounce at $1,414…Silver is off 16 cents to $35.12 while the U.S. Dollar Index has declined nearly one-quarter of a point to 77.00…markets don’t like uncertainty and the devastating earthquake in Japan this morning is just one more factor to throw into the mix…our thoughts and prayers are with the people of Japan this morning and in other areas impacted by tsunamis…the earthquake forced port closings and shutdowns of oil refineries and metal plants in the world’s third-biggest economy today, rattling commodity and energy markets as participants weighed how quickly activity could return to normal…China’s inflation and industrial production exceeded forecasts in February…consumer prices rose at an annual 4.9% pace in February while producer prices climbed 7.2%, the most since September, 2008…inflationary pressures have been building throughout Asia…South Korea, Thailand and Vietnam have all increased interest rates this week…further monetary tightening can be expected in China but continued negative real interest rates and economic growth in China are bullish for Gold…U.S. economic data was mixed this morning…the University of Michigan reading on consumer sentiment fell to 68.2 in March, from a revised 77.5 in February, which was weaker than expected…the CDNX, which yesterday fell below its 50-day moving average (SMA) for the first time since its huge run started last summer, is holding support at 2200, another critical area…if 2200 is breached, there is a band of support between 2100 and 2150…technically, what we’re looking for with the CDNX is a “hammer” reversal…it’s very possible we could see that today as the market gapped down to 2198, fell as low as 2192, and is now back above 2200 at 2226 for a loss of only 14 points…bargain hunters are jumping in…given the oversold conditions, there is clearly the potential for a bounce to the upside but this could be a “bear trap” so traders and investors should be careful…while the overall CDNX bull market remains firmly intact, the possibility of a 20%+ correction from the 2465 high cannot be ruled out which would wipe away about half the gains since July…this would be a very normal and healthy pullback within the context of an ongoing bull market and would present some incredible buying opportunities…Gold Bullion Development (GBB, TSX-V) is down another 3 pennies to 38 cents…while the fundamentals of Granada have not changed – the multi-million ounce potential of the LONG Bars Zone is still very much intact – the market’s perception of the play has changed due in part to some perceived strategic errors on the part of GBB…the fact there are still just two drill rigs on the property since late last spring is a disappointment for the market which is also concerned about GBB’s dwindling cash position (approximately $6 million at the moment)…having said that, this is still a company sitting on potentially a lot of Gold…a company that has executed a flawless game plan is Richfield Ventures (RVC, TSX-V) which has pulled back just modestly from its all-time high of $6.15…Richfield is sitting on $17 million in cash and has already outlined 4 million ounces (total 43-101 indicated and inferred) at its Blackwater deposit in central British Columbia…RVC is currently up 15 cents at $5.55…an emerging up-and-comer we really like along the Cadillac Trend is Visible Gold Mines (VGD, TSX-V) which currently has about $9 million in the bank and is taking a very aggressive but focused approach to its exploration…VGD is actually unchanged for the week at 40 cents as it has held up extremely well during this market turmoil…the market sell-off has taken GoldQuest (GQC, TSX-V) down to the low 30’s…GQC is one of our favorites for 2011 with an outstanding pipeline of projects in the DR as well as a total of three deposits with 43-101 resource estimates…the company continues to be busy drilling in the DR and initial results from its flagship Escandalosa Property are expected soon…GQC is currently off 2 cents at 32.5 cents after a market sell-order hit GQC at the opening bell this morning, driving it down to 31 cents – fear makes people do foolish things…Currie Rose Resources (CUI, TSX-V), which is gearing up for more drilling starting this spring in Tanzania, is off a penny at 15.5 cents…this is where CUI has tremendous technical support as demonstrated in January…Currie Rose’s Scadding Gold Property near Sudbury may also start to enter into the valuation equation for the company…CUI has optioned that property to Trueclaim Exploration (TRM, TSX-V) which has been getting some very encouraging drill results…
March 11, 2011
12 Comments
Sorry, the comment form is closed at this time.
-
-
-
-
Press "Reload" for fresh quote
Jon.. while I havent kept up with GBB’s results, do they have any more results to come?? or is it dead until they start drilling again.?? thx in advance mate
Comment by Jeremy — March 11, 2011 @ 8:36 am
Jeremy,
they have 2 rigs, which are going 24/7 drilling, they havent stopped drilling! They also have a rig on the castle property drilling as well. You ll have to re read today post?\
alec
Comment by alec — March 11, 2011 @ 8:48 am
Just over 80 holes have been reported….my estimate is that about 225 holes have been completed so far in Phase 2 and Phase 3…..so results on only about one-third of the holes have come in so far…drilling continues around the clock as Alec pointed out….still 2 rigs in total which is something that irks me, but it is what it is….there are many positives with GBB, no question…….and I remain convinced a major deposit is in the works here….the drop in the share price though has had less to do with results than the perception of some strategic errors on the part of GBB…..
Comment by Jon - BMR — March 11, 2011 @ 9:21 am
GBB is being beaten down just like Osisko was before it took off . All of us who are holding on to our shares will be rewarded for doing so. My family and I have over 3 million shares and have not sold a single one because we believe in GBB’s great potential and also because Quebec is the best place for miners (not in East Africa where I had to escape in the 70’s from a crazy dictator).
Comment by Maria — March 11, 2011 @ 9:25 am
Hi Jon
I think Frank said in one of his interviews that once results started that there
would be a steady flow of results; also that they planned to add 2 more drills to
the Long Bars Zone. Not having met these expectations has been a disappointment, however,
I think an announcement of some good intercepts and the addition of 2 drills at this time, would
go a long way in creating an “air” confidence. ……….Bob
Comment by Bob — March 11, 2011 @ 9:31 am
There’s no question GBB is sitting on a lot of Gold – just how much we’ll have a better idea later this year, but the LONG Bars Zone is huge……it’s also important to keep in mind that we’re likely in the midst of a multi-year bull market on the CDNX……pullbacks like we’ve just experienced are going to happen and they present buying opportunities……..not sure if we’ve seen the bottom of this pullback yet, so I’m cautious at the moment in that respect but I strongly suspect we’ll see the CDNX significantly higher later this year than where it’s at now…
Comment by Jon - BMR — March 11, 2011 @ 9:32 am
Thx guys… I didnt mean to sound lazy, but gapped the 24/7 thing from months ago… so if only 30% has been reported then we have things to look forward to!! appreciated!
Comment by Jeremy — March 11, 2011 @ 10:12 am
Hey guys,
Great site here. I enjoyed reading your coverage of Seafield Resources (SFF) and noticed lately that this stock has not been mentioned. I remember reading that you mentioned Dos Quebrados would increase the Stock price but as of writing this the stock remains at its recent lows. Are you still following the stock and if so, would your insight into the potential is appreciated.
Thanks
Comment by Steve — March 11, 2011 @ 11:05 am
Frank Basa mentioned in his recent interview with Jay Taylor that the original non-compliant 2.4M ounze (“low side”) estimate within the Preliminary Block Model has since increased eight-fold. That means, for what its worth, 19.2M ounzes JUST WITHIN THE BLOCK MODEL! If this estimate is only 25% accurate, they still have nearly 5M ozs. My question is, why not strive for an initial 43-101 as soon as possible? The danger here is that they’ll run out of money before the 43-101 and need to do a dilutive financing. This could potentially destroy the entire project. Why not a preliminary 43-101 ASAP!!!!!!!!!!!!!!! Quit diddling.
Comment by Roger — March 11, 2011 @ 1:07 pm
Sooooooooooooooooo Jon…. did we get that hammer reversal??? I thnk so:) a wonderful sight! your continued guidance was very helpful in not joining the herd – thank you!!
Comment by Jeremy — March 11, 2011 @ 1:07 pm
I have been listening to all of the experts for a while now about what would happen when this gold/silver market really got going, all of them said the same thing, VOLATILITY, it will be your friend or your enemy. The last couple of days were the hardest for me in not wanting to just sell everything but I did not do it and I actually purchased more of my favorites. It was really hard to do though.
Comment by GREG — March 11, 2011 @ 1:16 pm
Jon, just seems traders have taken advantage of GBB lately. RVC has 1/4 the float, and trades way less per day compared to GBB, thus harder to manipulate, up or down. This hasnt been the case with GBB, and it seems alot of people are bailing especially those probably who bought the PP and daytraders shorting? I m sure this stock will re group and re build with different players now, hopefully ones with some longer term vision and a bit more patience. They are still drilling and still have lots of results pending. Too early to bail in my opinion. Just like Greg mentioned, hard not to follow the herd, buy when everybody is selling and sell when everybody is buying.
Comment by alec — March 11, 2011 @ 2:00 pm