BullMarketRun   BullMarketRun.ca

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets
 

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

April 5, 2011

BMR Morning Market Musings…

Gold is making a major move today and has hit a new all-time high…as of 8:45 am Pacific, the yellow metal is up $13 an ounce at $1,448…it got as high as $1,452 and a close above $1,450 would be hugely bullish…Silver fell as low as nearly $38 this morning but has also reversed sharply and is now up 34 cents at $38.93…light crude is down 8 cents at $108.39…contrarians will like this…a recent Reuters’ survey of analysts’ Gold price forecasts showed fewer than 1 in 10 believed Gold would end the second quarter more than 5% above current levels…at BMR, we’re not the only ones wondering what Ben Bernanke has been mixing into his morning coffee but he’s helped us all make money over the past year so we shouldn’t be too critical…Bernanke was interviewed after giving a speech in Atlanta last night and stated that the recent increase in U.S. inflation is driven primarily by rising commodity prices globally and is unlikely to persist…”I think the increase in inflation will be transitory,” Bernanke stated…”Our expectation at this point is that in the medium term inflation, if anything, will be a bit low…We will monitor inflation and inflation expectations very closely”…Bernanke argued that supply and demand factors are driving energy and commodity costs higher but that these should eventually stabilize, allowing the United States to avoid any inflation troubles…of course this is the same individual who declared on July 1, 2005, that the U.S. was not experiencing a housing bubble…he stated, “I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit”…Bernanke’s comments last night suggest the Fed Chairman is committed to maintaining historically low interest rates and completing a $600 billion stimulus program as scheduled in June, despite calls from some of his colleagues to consider cutting the stimulus effort short and perhaps raising rates beginning in the fourth quarter in light of an improving economy and rising inflation…meanwhile, China’s central bank raised interest rates today for the fourth time since October in a bid to bring stubbornly high inflation under control…the tightening of monetary policy in China adds to six official increases in bank reserves over the same period and follows a declaration by China’s top leaders that controlling inflation was their most important task this year…benchmark one-year deposit rates will be lifted by 25 basis points to 3.25 percent and one-year lending rates will be raised by 25 basis points to 6.31 percent…China still has a negative real interest rate, however, which is bullish for Gold…after an impressive 25-point jump yesterday, fueled in part by New Gold Inc.’s (NGD, TSX) planned takeover of Richfield Ventures (RVC, TSX-V), the CDNX gave back a few points in early trading but has since reversed with the jump in precious metals…the CDNX is currently up 7 points at 2331 and if it’s able to close above 2330 on strong volume, the near-term technical picture will improve dramatically…the next few days will be interesting…Richfield is up 15 cents at $10.07…the stock has gained 739% since we added it to the BMR model portfolio in December, 2009, at $1.20… we’re very excited about our newest addition, Visible Gold Mines (VGD, TSX-V), which is unchanged at 42.5 cents…not only has Visible Gold Mines assembled an impressive land package in the Rouyn-Noranda region of northwestern Quebec but the company is armed with a strong treasury (nearly $9 million or 20 cents per share) and a powerful team of people with an ideal mix of business, geological and marketing expertise…VGD’s senior geologist is Robert Sansfacon, highly respected within Quebec geological circles…Sansfacon honed his skills for many years with Lac Minerals and was also instrumental in the discovery of Osisko’s (OSK, TSX) Canadian Malartic Deposit…technically, a reversal in VGD‘s 50-day moving average (SMA) appears imminent – a favorable entry point…we suggest investors,, particularly those with very speculative appetites, perform some immediate due diligence on White Tiger Mining (WTC, TSX-V) which came out with a very interesting news release this morning from its Phase 2 drill program at its Marshall Lake Property near Thunder Bay…the company appears to have intersected significant zones of chalcopyrite mineralization with assays pending…this play could get very interesting…White Tiger has just 15 million shares outstanding after raising $1.3 million in February in hard cash at 30 cents..the President and CEO is Ron Coombes (chairman is Doug Mason) who have both enjoyed previous success in the market…White Tiger is up 16 cents at 51 cents on 2.8 million shares…Seafield Resources (SFF, TSX-V) gave an update on its Quinchia exploration program in Colombia this morning…10 holes have been completed at Dos Quebradas with drilling continuing there and assays pending…drilling has also started at the promising Santa Sofia anomaly just one kilometre north of Dos Quebradas…Seafield is currently off a penny at 32.5 cents…

24 Comments

  1. On a day like this no trading in Sidon shares. Is there an important reason for that or an NR pending today. Some news on the way on the TSX approval on the Handeni property or news leak? Does anyone have more info? Just sended an e-mail to Sidon for a info request on todays situation. There has to be an important reason for this. Have a good evening…

    Comment by Arjan — April 5, 2011 @ 9:23 am

  2. Gold is now $1452 and Silver has cleared $39 at $39.19. Seems they want to go a lot higher and there are all the usual factors to get them there. I added some more ABI today after waiting a couple of weeks to see which way this would pan out (no pun intended). All Silver juniors seem to be catching a bid and hopefully the Gold ones will follow soon. It will be interesting to see John’s technical analysis but it seems to me we might have turned the corner with our much underapreciated companies.

    Comment by Patrick — April 5, 2011 @ 9:28 am

  3. Hello Arjan, I think it’s just a low volume day for SD as well as many others. If you put in a bid at .07 you would get the ball rolling! ABI just has too much insider trading to do much for a while in my opinion – I’ve seen this pattern time and time again with Consolidated. SFF is relatively low volume despite the news release which didn’t tell us much (except that it took a long time for the drill rig to get from Bogata to Santa Sofia :))but at least there was some communication from the company!

    Comment by Andrew — April 5, 2011 @ 9:51 am

  4. Just noticed that there is trading activity as of yet. Till now it did look like the trading was pending. Even no bid and ask prices. On more then one site. But now it seems trading is commenced for the day…

    Comment by Arjan — April 5, 2011 @ 9:58 am

  5. Hi Jon,
    I know you guys are extremely busy. I made a comment a few days ago regarding a silver chart to your site.
    Any comments. Silver has outpreformed this past year.

    Correct me if I am wrong. In your interview with Trueclaim -TRM, and President John Carter, but did you touch on hs
    emmense experience on the production side. In his own company MPE International in a 32 year period John installed
    the fabrication equipment, and processing equipment for 200 + mines globally. Investors should take note of this
    fact, because that makes Trueclaim very unique in terms of a junior mining exploration company. Takes time, but the
    foundation is very solid. Scadding is advancing and the Arizona silver property is a real wildcard in term of potential.
    The company is seeking a 3rd near term production property………………..price is very attractive at this stage of the companies development

    Comment by George Pesut — April 5, 2011 @ 10:03 am

  6. Hi George, thank you for your comment and you must have been reading my mind….believe it or not I was just looking at TRM on the charts, and a few minutes later I see your comment…I like this play a lot and the stock is currently at a nice support level….more results should be coming out very soon from Scadding….you’re right about John’s experience on the production side and he mentioned that in the first interview we did……regarding a silver chart, yes, we’re looking at that, thank you for the reminder…….

    Comment by Jon - BMR — April 5, 2011 @ 10:09 am

  7. Yes, I agree that TRM has both Gold and Silver and should be do very well going into this month and next month. Jon, I really enjoyed the interviews too. Also, the Venture is now up over 20 pts today too! I hope things have reversed and we get things going upwards!

    Comment by STEVE — April 5, 2011 @ 10:23 am

  8. Hello Jon, are you still anticipating producing a “roll back shopping list” before things start to move too much? Thanks

    Comment by Andrew — April 5, 2011 @ 10:46 am

  9. So, the gold and silver bulls are back in the running, we ve breached the 2330 level nicely? Or have we?
    Comments anyone?

    Comment by alec — April 5, 2011 @ 11:56 am

  10. It looks promising to me, Alec. The volume is still light but April has been all uphill on the chart so far and volume has increased slightly (just down a wee bit today, I think). Another couple of good days should bring a lot of confidence back into the CDNX with increasing volume. Have a good evening.

    Comment by Andrew — April 5, 2011 @ 12:17 pm

  11. Anybody know when CQX will announce something? Pretty quiet lately. This is the time with gold exploding today.

    Comment by Dan — April 5, 2011 @ 12:24 pm

  12. GBB just put out a NR on their website with an updated drill map. 72 meters at 1.25g/t. Thoughts anyone?

    Comment by Dan — April 5, 2011 @ 1:25 pm

  13. I like it, its consistent with what we got. MOre importantly it just keeps adding to the total ounces, which I like even more. If you look at the drilling map model, its really starting to fill up……….hmmm bring on the 43-101 please 🙂

    Comment by alec — April 5, 2011 @ 1:30 pm

  14. The first 2 holes are nice intercepts, it would be nice to see more of those 1gm/ton values over 100m, but we must always keep in
    mind they are still drilling to determine the size of the mineralized structure. They seem confident of 1.2km x0.5km., with depth
    to be determined. Sounds positive.

    Comment by Bob — April 5, 2011 @ 1:42 pm

  15. GBB hitting some high grade sections as well….1.5 mters at 29g/t in hole 179 and .88meters at 57g/t in hole 97 only 30 down the hole.

    Comment by Dan — April 5, 2011 @ 1:53 pm

  16. Hi Jon, can you give us your initial thoughts on this latest release by GBB? It is interesting that they are hitting some high grade sections and the fact that mineralization still starts practically at surface which means the deposit can be economically viable at much lower grades. Also the fact that the 2 drills are still on Long Bar Zone 1. I thought one of the drills would be moved to Aukeko by now….must still like what they are seeing.

    Comment by Dan — April 5, 2011 @ 2:10 pm

  17. Hi Dan
    They said drilling continues on the Granada property with 2 rigs. The Aukeko is considered part of the Granada project.

    Comment by Bob — April 5, 2011 @ 2:25 pm

  18. You are correct Bob. I just thought that an announcement would be made if the drill was moved to the Aukeko property.

    Comment by Dan — April 5, 2011 @ 2:32 pm

  19. Hi Bob, not only was there no mention of Aukeko drilling, the latest Genivar drill map dated April 4th shows two holes currently in progress…..hole 254 in the NE Extension and hole 255 in what was called the preliminary block model…..there are only 2 drills on the property.

    Comment by Dan — April 5, 2011 @ 2:41 pm

  20. Hi Dan
    The release was certainly devoid of any corporate update, and I hope they will follow up with one. If not, I will have to get on their case
    regarding Frank doing an interview with Jon- it being (long overdue), and much deserved!!

    Comment by Bob — April 5, 2011 @ 2:57 pm

  21. I agree Bob. An interview is long overdue.

    Comment by Dan — April 5, 2011 @ 3:22 pm

  22. Hi Jon , would be nice to have bmr ‘s comments on gbb’s n-r tomorow , thanks

    Comment by steve — April 5, 2011 @ 3:22 pm

  23. Just reviewing it right now and I’ll have some comments by this evening.

    Comment by Jon - BMR — April 5, 2011 @ 3:30 pm

  24. I am still positive in holding GBB as a medium term. The current price 46.5 cents sounds cheap in terms of great potential in multi million gold deposit. In my opinion, it makes more sense to see the stock at 70 cents level and it is really a bargain at this price. Will not last long once it jumps back to a more reasonable level.

    Comment by Theodore — April 5, 2011 @ 6:23 pm

Sorry, the comment form is closed at this time.

  • All Posts: