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Gold has traded in a range of $1,602 to $1,621 so far today…as of 9:00 am Pacific, the yellow metal is recovering from some mild profit-taking and is now down just $2 an ounce at $1,612…Silver is off 53 cents at $39.71…Copper is up 2 pennies at $4.44, Crude Oil is 45 cents higher at $97.85 while the U.S. Dollar Index is up nearly one-fifth of a point at 74.26…the U.S. Congress is still grappling with the debt ceiling/debt reduction issue and a House vote is expected today that Democrats say has no chance of passing the Senate…the U.S. political process can often be messy, and it’s easily misunderstood by foreigners (even Canadians), but it does work and a compromise agreement of some sort is likely to be forged within a matter of days…President Obama quoted President Reagan in his televised address to the nation the other day but unfortunately Obama is no Ronald Reagan…however, the U.S. bond market hasn’t flinched and that’s a positive sign…what we find particularly encouraging is that the Venture Exchange (CDNX) has enjoyed a strong month of July despite weakness over the last few days which we’re certain is just a healthy pullback within a powerful ongoing new uptrend…in fact, the CDNX has out-performed all the major markets this month and that’s an extremely encouraging sign – if the sky were about to fall next month, as some of the fear mongers and idiots in the media are suggesting, the CDNX would not have shown the strength in July that it has…still, too many investors unfortunately are driven by fear and emotion and make investment decisions without even considering the big picture…that’s the only way to explain, for example, why $30 million or approximately 12% was knocked off the value of Richmont Mines (RIC, TSX) since last Friday despite the fact this company, by any reasonable calculation, is about to report blockbuster earnings for the second quarter…sorry to say this, but the individuals who sold Richmont down to $7.19 this morning need to have their heads examined…not only could this company be trading at just 8 times potential 2011 earnings, but Richmont’s Gold sales should jump 40% from current levels by Q1 2012 thanks to the start-up of commercial operations at Francoeur…Wasamac, meanwhile, is shaping up to be a substantial deposit that easily could add another 100,000 ounces+ per year to Richmont’s production by 2014/2015…the company also has other opportunities to expand production over the next year or two…it has no debt and is sitting on about $50 million in cash…some sanity returned to the RIC market after the first hour and the stock is now up 3 cents at $7.49…the major point here is that not just Richmont but many quality Gold stocks are simply hugely undervalued at the moment…Agnico-Eagle (AEM, TSX-V) understands that…AEM has announced a $70 million investment in Rubicon Minerals (RMX, TSX) by purchasing nearly 22 million shares at a price of $3.23 per share…Rubicon is up 81 cents on the news this morning to $3.87…speaking of Angico-Eagle, which has reported second quarter earnings of 41 cents per share, CEO Sean Boyd was interviewed by Pimm Fox of Bloomberg Television’s “Taking Stock” this morning and made the following comments concerning Gold…

“There are major fundamental issues around the size of debt, the inability to control spending at the government level…there’s really an ongoing debasement of paper currency which is forcing people to start to look at Gold, and we think that investment case is just starting as people realize that one of the ways out of this debt situation is to inflate your way out, and continue to debase your currency…I think we’re going to see that as we move forward…people are starting to realize that and are starting to move toward Gold.” – Sean Boyd, Agnico-Eagle CEO

Visible Gold Mines (VGD, TSX-V) has a partnership with Agnico-Eagle on the Joutel Project in northwest Quebec, which is just one reason we’re very excited about VGD as the eastern part of that past producing property was very under-explored…the limited work that was carried out some 20 years ago showed that this “Eastern Extension” exhibits similar geological signatures to the previously mined Telbel, Eagle and Eagle West deposits at Joutel which gave birth to Agnico-Eagle…VGD has identified numerous promising drill targets and will soon commence a major program there while drilling continues at its Lucky Break Project where the company is concentrating on its Wasa Creek Property…VGD is currently off a penny at 31 cents…Pacific Ridge Exploration (PEX, TSX-V) has drilled 38.9 metres grading 2.44 g/t Au at its Mariposa Project in the Yukon’s White Gold District…that encouraging result was from the Skookum Jim Main area and was the first hole drilled…results from 2 other holes were also reported this morning and returned near-surface intercepts of 19.8 metres grading 1.13 g/t Au (hole #5) and 45.3 metres grading 0.63 g/t Au (hole #6)…not a bad start for PEX which has climbed from 37.5 cents since we highlighted it July 15…approximately 3,300 metres have been drilled in 21 holes at Mariposa so far, testing the Skookum Jim (12 holes), Maisy May (4 holes), Gertie (3 holes) and Hackly (2 holes) targets…holes have been drilled to lengths ranging between 76 metres and 238 metres…based on early exploration results, the company has increased its initial 4,000-metre drilling program to 6,000 metres…the expanded program will continue to focus on untested Gold anomalies within the Skookum Jim target…PEX climbed as high as 64 cents on this morning’s news but has since pulled back to 57 cents, a drop of a nickel from yesterday…Golden Predator (GPD, TSX-V) released good results from Brewery Creek yesterday and the stock enjoyed its biggest volume day ever, jumping 20 cents to $1.26 on a total of over 8 million shares (CDNX, Alpha, etc.)…Brewery Creek has excellent potential and it”ll be interesting to watch that project develop over the summer…GPD is currently up 4 pennies at $1.30…elsewhere in the Yukon, other favorites we’re following closely are Kaminak Gold (KAM, TSX-V), Silver Quest Resources (SQI, TSX-V), Ethos Capital (ECC, TSX-V), Northern Tiger Resources (NTR, TSX-V) and of course ATAC Resources (ATC, TSX-V) which everyone is watching…a less-known opportunity we suggest our readers investigate is Dawson Gold (DYU, TSX-V) which could be a “sleeper”…it’s currently trading at only a dime…the company is in the process of completing a financing…its major asset is the drill-ready Toro Property located in the southern end of the White Gold District…DYU has an option to earn a 100% interest in the Toro property from Northern Freegold Resources (NFR, TSX-V)…Spanish Mountain Gold (SPA, TSX-V) released numerous assay results this morning from its promising property in central British Columbia…if you’re a believer in higher Gold prices, which we are, it’s hard not to see a lot of potential in SPA with its low grade but high tonnage deposit…we’ll comment more on SPA tomorrow…it’s currently up 2 pennies on light volume at 63 cents…