Drilling along the Nadaleen Trend (ATAC's Osiris discovery), a 25-km long belt in the central Yukon.
Gold has started the new week on a positive note…as of 7:50 am Pacific, the yellow metal is up $6 an ounce at $1,550 despite a stronger greenback…Silver is 67 cents lower at $36.04…Crude Oil has softened to $95.42 while the U.S. Dollar Index has gained three-quarters of a point to 76.08…Republicans appear to have given up hope of striking a large debt reduction deal with Democrats due to concerns about the rift between the two U.S. parties…House Speaker John Boehner announced over the weekend he was lowering his expectations about the size of the deficit reduction package that Congress would be able to pass due to Democrats’ insistence on revenue increases through tax hikes for the “wealthiest” of Americans…the American government doesn’t have a revenue problem – it has a spending problem, and starving this money-sucking monster is the only strategy that will bring sanity and fiscal discipline back to Washington…the debt talks continue with President Obama holding a news conference this morning…a scaled-down deal on the debt issue should be bullish for Gold…it appears Americans won’t be able to properly address their financial mess until after the 2012 elections…China released data over the weekend showing its Consumer Price Index (CPI) accelerated to 6.4% for June, putting inflation at a three-year high in that country…the June number was slightly above expectations and considerably higher than May’s 5.5% rate…the PBOC jacked up rates by 25 basis points last week for a fifth time since October 2010 in a bid to tame the country’s stubbornly high inflation…most analysts, however, believe inflation has peaked for the time being in China and that authorities there will be able to negotiate a “soft landing” for the world’s second largest economy…investors need to cut out the daily noise from CNN and CNBC and focus on the big picture which is the fact that the growth story continues in the emerging markets…one of our favorite analysts with regard to that is Frank Holmes of U.S. Global Investors…readers should bookmark his site (www.usfunds.com) and check it out on a regular basis…India’s largest Gold bullion supplier and the biggest trading arm of the government, MMTC Limited, expects to import around 275 tonnes of Gold in 2011-12…this is compared to the 245 tonnes that it imported a year ago…Silver imports are expected to jump by around 30% to 1,200+ tonnes during the same period…MMTC plans to increase its jewelry outlets from 15 to 55 by the end of 2012…the company also aims to increase its jewelry franchise base from 75 at present to 200 by the end of next year…strong physical demand for Gold in emerging markets and in parts of the Middle East are helping to underpin prices…the CDNX gained 81 points or 4.25% last week, and a close examination of the Venture’s 3-year weekly chart speaks volumes about where this market is likely headed over the final half of the year…the Index appears to be in the beginning stages of a very bullish move with John’s Fibonacci target – no timeline given – being 2853…we suggest readers check out our alert posted Saturday morning but for the benefit of those who haven’t yet viewed this chart, here it is again…
As of 7:50 am Pacific, the CDNX is down 20 points at 1965 in sympathy with the broader markets but that’s normal trading behavior within the context of the bullish new phase we believe is underway and will gather steam as the summer progresses…we view any weakness in the CDNX at the moment as an opportunity to accumulate quality plays…the picture in the top left corner of our post this morning is from one of our geological contacts in the Yukon…a summer of strong exploration results out of the Yukon would certainly provide some high-octane fuel for the CDNX…ATAC Resources (ATC, TSX-V), searching for a Carlin-scale discovery, and Kaminak Gold (KAM, TSX-V) are two of the leaders who have already come out with encouraging results recently…ATAC, which already has a healthy market cap of nearly $850 million, has to meet high expectations but we wouldn’t want to bet against that happening…ATC is challenging its November 2010 all-time high of $9 per share…technically, it’s overbought at the moment based on various indicators including RSI(14)…that doesn’t mean it can’t become even more overbought in the immediate future but at some point soon it may need to pause and catch its breath…ATC is currently up a penny at $8.71…Kaminak, after breaking through resistance at $4 last week, is looking very strong technically as John detailed…$4 should now be the new support for KAM which is off a penny at the moment at $4.17…Silver Quest Resources (SQI, TSX-V) has increased its 2011 field season exploration budget for its properties in the White Gold District to $7-million…the budget increase will expand the company’s previously announced exploration programs which include soil sampling, geological mapping, airborne geophysical surveying and diamond drilling…we see a lot of value in Silver Quest which of course holds a 25% interest in the northern portion of New Gold Inc.’s (NGD, TSX) very attractive Blackwater deposit in central British Columbia…SQI is currently unchanged at $1.12…from one part of the country to another, we’re of course keeping a close eye on our favorite area – northwest Quebec where we expect things will heat up on several fronts over the summer…Richmont Mines (RIC, TSX), developing its growing Wasamac deposit 15 kilometres west of Rouyn-Noranda, should be reporting its second quarter earnings (ending June 30) in about a month or so and our expectation is that they could come in at better than 20 cents per share given a likely increase of about 15% in Gold production and higher Gold prices during Q2…Richmont is a classic example of how Gold stocks are about the cheapest they’ve been relative to Gold in the last 30 years (the cheapest point obviously having been during the Market Crash of 2008)…Richmont has no debt, $50 million in cash, a rapidly growing production profile thanks to 100,000 metres of drilling this year, and it’s currently trading at likely no more than 10 times potential 2011 earnings…RIC is up 3 cents at $7.46, giving it a market cap of only $236 million…Visible Gold Mines (VGD, TSX-V), which is sniffing around the very interesting Wasamac deposit, came to life last week as it gained 9 cents to close at 31.5 cents…a geologist from another company we spoke to Friday stated Joutel is a “fabulous” project for VGD…Visible Gold Mines is preparing to launch a major drill campaign for Joutel which gave birth to Agnico-Eagle in the early 1970’s…the Eagle, Eagle West and Telbel Mines combined to produce over a million ounces of Gold…the property runs 25 kilometres from west to east and parts of Joutel, in particular the eastern leg of the property, offer the potential of satellite deposits similar to what Agnico-Eagle mined for 20 years…VGD is unchanged at 32 cents…Gold Bullion Development (GBB, TSX-V) has weakened slightly this morning, down 3 pennies to 43 cents…technically, GBB is trading in an area of strong support at the moment that includes the rising 500-day moving average (SMA) at 40 cents…Seafield Resources (SFF, TSX-V) continues to look strong…volume in SFF has really kicked into high gear since early June and the stock is now threatening to push through resistance in the mid-30’s…it’s currently up a penny at 33.5 cents on CDNX volume of nearly 900,000 shares…volume is such a key indicator, so the spike in volume over the last month in Seafield is certainly an encouraging sign…last week the company announced it has hired SRK Consulting to conduct a scoping study on Miraflores which forms just part of Seafield’s attractive land package in the Quinchia district of Colombia…we consider the company’s “blue sky” property there to be Dos Quebradas and more results are pending from there…
Not one comment today. We can’t have that, so here’s a joke.
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A Torontonian, an American and your buddy Bert are involved in a grisly crime and are all sentenced to death.
The executioner told them that they would each get to choose the method by which they would die.
Their choices were: lethal injection, electric chair or by hanging.
The American was afraid of needles and didn’t want to be hanged. The American chose the electric chair.
He sat in the chair and they pulled the switch and nothing happened. The executioner said that if this happens
a second time that he could go free.
They tried a second time and again nothing happened so they set him free.
The guy from Toronto was also afraid of needles and didn’t want to be hanged so he too chose the electric chair.
Once again, the chair didn’t work and he was free.
Next it was my turn to pick how i was to be executed.
I said “I’m afraid of needles, the electric chair won’t work so you’re going to have to hang me”.
Comment by Bert — July 11, 2011 @ 4:53 pm
i keep on bringing to you attention toe (triorigin) and tor(trioriginminerals).toe is onthe venture and tor is tsx. both excellent prices dont miss out on theses two stocks walter
Comment by walter emond — July 12, 2011 @ 2:51 am
My recent comment that the market is immuned to the negativity out there, doesn’t mean that it will be
immuned to future happenings. It appears that we may be in for a rough time, as the talking heads try
to make sense of it all. No doubt, many of us are tormented this morning as to what to do. Some say
sell, some say it’s a buying opportunity, but the truth is, no one knows with certainty what we should
be doing & my opinion, for what it’s worth is, it’s dangerous to be offering advise during those troubling
times. Good luck anyway.
R !
Bert
Comment by Bert — July 12, 2011 @ 3:07 am