Gold is moving higher for the second straight day but for now will likely face resistance around $1,725…as of 6:00 am Pacific, the yellow metal is up $11 an ounce at $1,695…Silver has jumped 30 cents to $33.73…Copper has gained a nickel to $3.81…Crude Oil is 38 cents higher at $106.54 while the U.S. Dollar Index is off half a point to 79.30…Asian physical demand is apparently helping the Gold market while the Wall St. Journal reported yesterday that the Federal Reserve was considering “sterilized” bond purchases…under this new approach, the Fed would buy long-term mortgage or Treasury bonds but tie up the money by borrowing it back for short periods at low rates…the Fed will use every trick in the book to inject liquidity into the financial system and try to stimulate growth, and attempt to disguise it as something other than QE3….that’s why we’re so bullish on the markets…central banks around the world are in “full-on expansion mode”…continually low interest rates and strong demand will keep Gold in an extended bull market…
An interesting report in the Financial Times this morning…China intends to extend renminbi loans to other Brics nations in another step toward the internationalization of its currency…the China Development Bank will sign a memorandum of understanding in New Delhi with its Brazilian, Russian, Indian and South African counterparts on March 29, say people familiar with their talks…the initiative aims to boost trade between the five nations and promote use of the renminbi, rather than U.S. dollar, for international trade and cross-border lending…under 13% of China’s Asia trade is transacted in renminbi, according to Helen Qiao, chief Asia economist for Morgan Stanley…HSBC estimates that the currency’s share of regional trade could swell to up to 50% by 2015…
China sees the big picture and is acting aggressively on the economic front in many ways…a geologist we spoke to at PDAC yesterday gave a startling statistic related to the mining industry – China is graduating thousands upon thousands of mining engineers every year now while the United States graduated just 150 last year…
Today’s Markets
Asian markets were strong overnight…China’s Shanghai Index seems to have found support at 2400 which the charts suggested it would…it closed up 1% today at 2420…European markets are very strong today while stock futures point to a higher open on Wall Street…new U.S. claims for unemployment benefits unexpectedly rose last week, a government report showed this morning, but not enough to change perceptions that the labor market was strengthening…U.S. non-farm payroll data will be released tomorrow…
The TSX Venture Exchange will attempt to follow-through on yesterday’s 17-point gain…volume was very light yesterday, however, which hopefully was related to so many market participants traveling home from PDAC…the Index closed at 1622…the rising 50 and 100-day moving averages (SMA’s) are providing strong support directly underneath…we’re convinced this recent sell-off has been a Golden buying opportunity…
We’ll be reviewing our “Strong Play”, “Watch” and “Sleeper” lists over the weekend for posting on Monday morning with some minor tinkering possible following PDAC…Rainbow Resources (RBW, TSX-V), as our favorite, continues to look as strong as ever in every way…President David Johnston has promised strong news flow for the month of March and he adheres to the “Cowboy Code” so his word is his bond…investors are patiently waiting for the technical report on all of Rainbow’s West Kootenay properties and that should really help in terms of putting some meat on the bones of this story…from a technical perspective, the chart continues to look bullish and suggests another attempt at a breakout through 30 cents is in the cards…John updates the Rainbow chart below after yesterday’s 27-cent close…
Note: John and Jon hold positions in RBW (Terry does not).
Richmont Mines (RIC, TSX) is one of our favorite producers with its share price currently in the “sweet spot”, technically heavily oversold after falling as low as $8.74 Tuesday…it closed at $9.17 yesterday which is only around 11 times 2011 earnings of 81 cents per share…this is a solid and profitable company that should do extremely well in 2012 with increased production and a growing resource at Wasamac…John’s chart below is a classic example of how to make money in the markets (near-term and longer-term)…when you see such obvious oversold conditions, it’s time to go against the crowd and pile in…this one’s a “no-brainer” at current levels for technical and fundamental reasons…
Note: John, Jon and Terry do not hold positions in RIC.
We’ve had some readers inquiries about Cadillac Mining (CQX, TSX-V) which gained a penny-and-a-half yesterday to close at 27 cents…Cadillac’s near-term focus is on completing a financing in order to proceed with a 5,000 metre drill program at its promising Goldstrike Project in Utah…one independent and experienced geologist we spoke to at PDAC, quite familiar with the general area, is very bullish on Goldstrike and has taken a position in CQX…the key for Cadillac right now is to complete a financing quickly and on the most favorable terms as possible…hopefully management can execute in that regard…we say “hopefully” because the market is not their area of expertise…anyway, we believe there will be strong interest in a CQX financing…the stock is likely range-bound for a while, however, while this is all worked out…John updates the chart below…
Note: John, Jon and Terry do not hold positions in CQX.
any comment on CUI? The chart looks like it turned positive in the last few days with big volume yesterday.
M.
Comment by M. — March 8, 2012 @ 6:35 am
Hopefully the curse of the PDAC is behind us. I feel the market
will move up as the day progresses & the PDAC participants,
return to their offices & start unwinding, after feeling so
cranky from their ordeals.
Comment by Bert — March 8, 2012 @ 6:59 am
Now, that’s funny, Bert! 🙂
Comment by Andrew — March 8, 2012 @ 7:13 am
Obviously some accumulation going on….impossible to say when it will move, but historically CUI is a steal at 4 cents……
Comment by Jon - BMR — March 8, 2012 @ 7:15 am
….CQX HAS broken out this morning and looks strong.
Comment by John - BMR — March 8, 2012 @ 7:30 am
I had just been looking at the chart, John and noticed the break out – back into the .30s.
Comment by Andrew — March 8, 2012 @ 7:37 am
Rainbow Expands Big Strike Project In Southeast British Columbia With Acquisition Of Referendum And Whitewater Properties
Comment by Andrew — March 8, 2012 @ 7:59 am
DATED 8 March. Meanwhile, Rainbow Resources anticipates receipt of a technical report by early next week from Moose Mountain Technical Services, the Company`s resource consultant, covering the International, Tin City, President, Gold Viking, Ottawa and Rhea properties
Comment by Alexandre — March 8, 2012 @ 8:08 am
Not what everyone was expecting im sure but there is a paragraph in there saying they are expecting MMR early next week…
Comment by db — March 8, 2012 @ 8:09 am
Financing Update for Rainbow Resources, dated 8 march.
There was an error in the Company’s news release February 15, 2012, announcing completion of its private placement of units and flow-through units. The Company issued 6,762,001 units, not 6,612,001 units as disclosed in the news release, resulting in total gross proceeds of $1,134,300.15. The disclosure in the original news release with regard to the flow-through units was correct
Comment by Alexandre — March 8, 2012 @ 8:11 am
This is not meant to be all negative, but today’s impression
is that this company seems to be floundering, off in every
direction. Delays in issuing news, not getting the promised
news & once we get the news, there is an error. Oh well,
better days ahead, hopefully. R !
Comment by Bert — March 8, 2012 @ 8:50 am
Bert – The error is a non-event, who cares about 6.7 or 6.6?
Also they are saying they haven’t got the technical report yet – that means it’s out of their hand. They had probably been promised the report from MM for a couple of weeks ago.
Anyway, now it looks like it is coming early next week. Who cares about a couple of days.
Comment by Steve — March 8, 2012 @ 8:58 am
Around 250k shares traded. Any ideas?
Comment by Alexandre — March 8, 2012 @ 9:02 am
Hold on to your hats sirs and mams, someone just took a big piece of the pie. More to come…
Comment by Steve — March 8, 2012 @ 9:06 am
Steve
It doesn’t really matter now, i have made a decision, because they
did not fulfill on their promise to submit the mmr, i have just sold
40K at 0.265. I have 10K left, which gives me a reason to keep talking.
I will live with the decision. R !
Comment by Bert — March 8, 2012 @ 9:07 am
“their promise”?
You mean Moose Mountain…
BIG diffrence
Comment by Steve — March 8, 2012 @ 9:10 am
Alexandre – it was just a By-Pass Trade with Anon
Comment by Andrew — March 8, 2012 @ 9:11 am
ANON bjust bought 265000 shares…i think ill hold my shares till the MMR at least.
Trades for C:RBW on 20120308 – 16 trades displayed
Time ET Ex Price Change Volume Buyer Seller Markers
12:00:57 V 0.27 80,000 1 Anonymous 1 Anonymous KW
12:00:57 V 0.27 184,000 1 Anonymous 1 Anonymous KW
12:00:57 V 0.265 -0.005 1,000 1 Anonymous 9 BMO Nesbitt KW
Comment by db — March 8, 2012 @ 9:18 am
Bert, I may have picked up some of your stock as I added another 30,000 or more so far this morning after the news. I’m a little confused by what you’re stating. I’ve never seen RBW promise the 43-101 by a specific date. In fact, all they said was sometime in the first quarter and that’s what they are delivering on – so I have no idea what you’re referring to there. They’ve added some more ground and now they’re giving guidance on exactly when they expect to see the technical report. So all’s good in my view. We’re doing some research into that ground they acquired and there could be more than meets the eye. Anyway, the big news will be the technical report on these other properties. I believe you’ve jumped ship way too early, Bert. I’m holding because this thing is going to go crazy when they start drilling into those high grade structures at the International.
Comment by Jon - BMR — March 8, 2012 @ 9:31 am
There is good looking chart on RBW at SH
Comment by Steve — March 8, 2012 @ 9:39 am
The “error” in the financing update, I think, just results in a little more hard cash, so actually good news?
Comment by Andrew — March 8, 2012 @ 9:39 am
Jon
Remember Doris Day, the future is not ours to see. Anyway, i made
a decision & like the marriage vows, for better or for worse, i have
to live with it. I made 2K on the deal & that will make living with
it easier & living, much better.
Comment by Bert — March 8, 2012 @ 9:48 am
This is all ive been able to dig up on Referendum property so far. it was previously owned by anglo swiss resources…
Properties – Referendum Gold
The Referendum gold property consists of 19 contiguous staked mineral claims covering 1,381 hectares. The Referendum gold property is situated on the southern borders of our Kenville gold mine property, including the recently optioned Ron gold property, located 10 kilometres from Nelson, B.C.
Comment by db — March 8, 2012 @ 9:49 am
had a little better luck with whitewater…heres bthe link
http://minfile.gov.bc.ca/Summary.aspx?minfilno=082KSW033
Comment by db — March 8, 2012 @ 9:57 am
This report mentions Whitewater and Referendum and also has some interesting photos (unrelated to the properties). The pages that mention the two properties and one includes a map are 21, 24 & 27 or just do a “find”. There’s also mention of the “optioner” Tom Cherry, he was a prospector. 🙂 :
“In the Nelson area a number of old mines have re-pened or are being
prepared t3 re-open. The BAYONNE MINE (62) was operated during the
summer by GOLDRICH RESOURCES. The REFERENDUM MINE ( 6 3 ) dump was
processed successfully for its s i l i c a content by prospect3r Tom Cherry of
Nelson. He has also dismvered a 3-metre-wide vein with v i s i b l e gold on
his adjacent claim TECGOLD.”
and “The WHITEWATER and LITTLE TIM mines have recently been re-opened with
limited production. The DICKENSON MINE. EAYONNE MINE, MOYIE MINING,
BLACK PRINCE and TWO FRIENDS, and the REFERENDUM are closed for the
winter mnths.”
empr.gov.bc.ca/Mining/Geoscience/PublicationsCatalogue/MineralExplorationReview/Documents/Ex-Review_83.pdf
Comment by Andrew — March 8, 2012 @ 10:04 am
Also this one for interest (not sure if its the same as db’s link?): empr.gov.bc.ca/MINING/GEOSCIENCE/MINFILE/PRODUCTSDOWNLOADS/PUBLICATIONSLIST/Pages/082KSW.aspx
Comment by Andrew — March 8, 2012 @ 10:16 am
Going for record volume today in RBW?
I think we will close at 29 cents or above.
Comment by Steve — March 8, 2012 @ 10:27 am
Jon
As for not understanding me, don’t feel bad, i don’t understand myself
at times. Since becoming involved with RBW, i have found them somewhat
tardy, thus part of the reason for selling my shares today. I have had
my say & will try to refrain from posting negative on RBW in the coming
days. It would be unfair to my cybre friends to do so. R !
Comment by Bert — March 8, 2012 @ 10:27 am
Andrew and Db thanks fore all of the dd you guys are sharing.
Greg
Comment by Greg — March 8, 2012 @ 10:30 am
Steve – not sure that RBW will make record volume today but I hope so. It hasn’t traded in nearly an hour and the majority of today’s volume was the Anon cross-trade. If it doesn’t trade another share and closes at .28 I’ll be more than happy. 🙂 Next week should see more action!
Comment by Andrew — March 8, 2012 @ 10:36 am
You’re welcome Greg, it’s good fun doing research into history. We should ask Tom Cherry to share some stories. 🙂
Comment by Andrew — March 8, 2012 @ 10:41 am
Andrew – Yea good time to accumulate now before news next week. I think the report on the International will be stunning.
Comment by Steve — March 8, 2012 @ 10:52 am
We always enjoy your feedback, Bert, but I was perplexed as I don’t recall RBW ever giving a
specific date for release of the MM report on the properties. I’ve added 40,000 shares today and I’m happier than a pig in mud. As Andrew stated, I think we’re looking at some impressive numbers coming out of the International Property next week……plus everything else.
Comment by Jon - BMR — March 8, 2012 @ 12:33 pm
“I’m happier than a pig in mud”
LOL
Comment by Steve — March 8, 2012 @ 12:47 pm
Weird that RBW is likely going to close below 27 today…
oh well get the sellers out of the way now…
keep the consolidation going
next week is a new week.
Comment by Alex — March 8, 2012 @ 12:52 pm
Good close. Half million shares trading (yea I know the large trade). Shaping up for a run on 30 c tomorrow. Have a good evening guys.
Comment by Steve — March 8, 2012 @ 1:01 pm
I’ll take that one back – 28 is a lovely close
Comment by Alex — March 8, 2012 @ 1:03 pm
Jon
If you are happy that’s great, i actually hope you do well. If i am going to error,
i will error on the side of my bank account. In this market, even the producers are
struggling, so i dare not chance my lot on historic information. It’s not the first
time i have seen enthusiasm on a site, but i can’t make decisions based on enthusiasm.
By the way, i appreciate this site, but i don’t depend on it for all of my information.
I didn’t intend to post in a negative manner on RBW, but i have to answer anything
directed my way. I still have 10K shares left & i will be watching. Good luck with
your shares, donated by your buddy Bert.
Comment by Bert — March 8, 2012 @ 1:12 pm
I had to sleep through most of todays trading as Im on graveyard shift right now. Anyone wish to comment on todays trading on RBW and what they thought of it. Wish I was up to pick up some 25.5s or 26s…oh well. Strong close which is nice. It will be interesting to see if we have buying pressure tomorrow going into the weekend…
Comment by db — March 8, 2012 @ 1:46 pm
CQX=Buyout
http://tsxbuyoutrumours.blogspot.com/2012/03/western-quebec-gold-play-is-strong.html?m=1
GLTA
Comment by Peyman — March 8, 2012 @ 3:09 pm
Massive take-up of Greece bond swap offer – maybe a ‘risk-on’ day to end the week?
Comment by Andrew — March 8, 2012 @ 4:17 pm
In first paragraph of Whitewater property writeup it mentions “A total of 471,063 tonnes of ore mined is recorded for this past producer spanning a period from 1892 to 1980. Records indicate about 108 tonnes silver, 54 kilograms gold, 23,132 tonnes zinc, 13,942 tonnes lead , 39 tonnes cadmium and 45 kilograms copper were recovered.”
Im aware that we dont know what the average grade is on these totals but my question is,
Is this good paydirt or is this average from that amount of ore mined?
Comment by db — March 8, 2012 @ 6:53 pm
What page do u see this write-up on?
What I’m looking into tonight is something a little more current and relevant to this particular moment….something is up because RBW is paying a good price for these claims (nearly half a million over a maximum of 5 years if they exercise the option, plus 1 million RBW shares and a $3 million NSR deal) and the agreement has occurred at an interesting time because a drill program by Anglo Swiss is ongoing in the immediate area (Kenville system) with initial results expected by mid-March according to ASW’s most recent news release (Feb. 1)….I find it very curious that RBW did not refer to the ASW drilling in their NR….surely they must know but they’re going low-key and that’s usually a sign in this business that something is afoot…a source I checked with tonight said ASW had to give up some strategic claims a while back for financial reasons and Referendum and Whitewater were among them….my gut tells me there’s more to the story here and that RBW has swooped in, and/ or is about to swoop in, on some ground very close to Kenville which is striking to the south and at depth….there’s a map on the Anglo Swiss site (corporate presentation) but we don’t know the exact claim boundaries…in December, RBW added to their Rhea Property package and now they’ve added ground further north in the direction of Kenville…….I’ve seen this kind of thing before……Anglo Swiss could potentially report initial results next week and RBW could turn around and surprise with some strategically acquired ground…..an interesting thought….coincidence or shrewd operators? I like the geological description of Referendum…..potential stockwork system and tourmaline which is an excellent gold indicator…..
Comment by Jon - BMR — March 8, 2012 @ 7:31 pm
TGIF. The Greek situation appears to be coming to a positive
conclusion, but there’s still some harping to be done. The
futures & European markets are flat, leading me to believe that
it ain’t over til it’s over (Yogi Berra). Also, the markets are
waiting for the jobs report, due out 830 a,m, et.
Regarding the above post by John, i will quote some partial
sentences of his & at the same time, wonder if he knows more than
it appears or is he, like us, somewhat in the dark.
Quote
I find it curious
Surely they must know
My gut tells me
But we don’t know
Could turn around & surprise
—————————
Jon, you do have a way with words & getting your points across,
but this morning, i am tormenting, because it’s my nature to be
just that, a tormentor. Some soul out there took my shares, but
was good enough to allow me to keep the profit, therefore i will
be watching today & if RBW moves down, i may buy again, if not,
i remain happy with my allotment, which is more than i had before
i bought a single share.. Have a good day everyone ! R !
Comment by Bert — March 9, 2012 @ 4:23 am
I don’t want to steal BMR’s thunder, but the jobs report looks
very good, especially since the weather didn’t co-operate.
Comment by Bert — March 9, 2012 @ 5:33 am
Jon – db’s quote is from this link and in paragraphs 12 and 13 (quote from report:” Mining has been important in the Nakusp map area since silver was discovered in the late 1800s in the Slocan area. Significant silver, lead and zinc has been produced from polymetallic silver-lead-zinc veins and from polymetallic silver-lead-zinc “replacement” deposits hosted in limestone of the Slocan Group. Polymetallic veins have been classified into “wet ore” or “dry ore” types by Cairnes (1934) and others. The wet ore types are the most important type in this area. They typically have abundant galena and sphalerite associated with silver-rich sulphide minerals. Gangue minerals, consisting chiefly of quartz and siderite, are vertically zoned as exemplified in such past producers as the Payne (082KSW006) and the Whitewater (082KSW033). Galena is typically abundant in the upper portions while sphalerite is associated with the siderite-rich zone. The lower quartz-rich zone is usually barren. The Silver Glance (082KSW028) and Panama (082KSW055) are examples of the “dry ore” type which are rich in quartz; the silver-bearing minerals including argentite, tetrahedrite, pyrargyrite, jamesonite and native silver are relatively abundant with galena and sphalerite of minor importance. The limestone-hosted “replacement” deposits are typically rich in sphalerite and low in silver. Quartz is the predominant gangue mineral and is more abundant than ore minerals. Controls on ore deposition are enigmatic. However, the following factors are thought to be important: (1) favourability of competent wallrock lithologies, (2) cross-fractures consisting of joints, conjugate shear planes, tension cracks or linking fractures and (3) the absence of strong gouge (Hedley, 1952). Larger orebodies tend to be oriented oblique to the main direction of fault movement.
Significant past producers include the Payne, Whitewater and Lucky Jim (082KSW023). The Payne produced 110,604 tonnes of ore intermittently over 21 years from 1893 to 1939, with about 116 tonnes of silver, 17,376 tonnes of lead and 1024 tonnes of zinc recovered. Several past producers, such as the Whitewater, have features of both vein and “replacement” deposit types. A total of about 108 tonnes of silver, 54 kilograms of gold, 23,132 tonnes of zinc, 13,942 tonnes of lead, 39 tonnes of cadmium and 45 kilograms of copper were recovered from 471,063 tonnes of ore at the Whitewater. The Lucky Jim, a polymetallic silver-lead-zinc limestone “replacement” deposit, was one of the most significant zinc producers in the Slocan mining camp, with about 79,798 tonnes of zinc, 18 tonnes of silver, 2 kilograms of gold, 3697 tonnes of lead and 194 tonnes of cadmium recovered from the 1,065,798 tonnes mined.”)
empr.gov.bc.ca/MINING/GEOSCIENCE/MINFILE/PRODUCTSDOWNLOADS/PUBLICATIONSLIST/Pages/082KSW.aspx
Comment by Andrew — March 9, 2012 @ 5:33 am
Disappointing reaction from European markets.
Comment by Andrew — March 9, 2012 @ 5:37 am
Jobs report seems to be good for the market, but it may be bad
for gold. one step forward & one back.
Comment by Bert — March 9, 2012 @ 5:38 am
Andrew – Disappointing reaction from European markets.
Bert – The majority of the European markets were down before
the jobs report, but are now up–
FTSE + 13.47
DAX + 44.98
CAC + 16.78
Comment by Bert — March 9, 2012 @ 5:42 am