Gold is off $2 an ounce at $1,660 as of 5:55 am Pacific…Silver is down 9 cents to $31.83…Copper is 2 pennies lower at $3.77…Crude Oil has lost 51 cents to $104.90 while the U.S. Dollar Index is up slightly at 79.25…
Citing data from the International Monetary Fund, HSBC notes some emerging market central banks turned net sellers of Gold in February…Mexico, Tajikistan, Turkey, and Russia reduced holdings by 0.1 ton, 0.2 ton, 1.3 ton and 3.8 tons, respectively, while Kazakhstan increased Gold reserves by 2.2 tons…the bank stated, “Central banks have been an important source of demand for bullion recently as lower prices tend to increase buying interests…although net sellers in February, we maintain our view that they will be net buyers of Gold in 2012″…
Recent economic data suggest the U.S. economy will power ahead of Europe in the first half of 2012, with consumers growing increasingly confident and boosting activity in the former while more reforms are needed in the latter to boost growth, the Organization for Economic Cooperation and Development (OECD) said in a report today…
Efforts by some of the world’s biggest oil buyers to co-ordinate the possible release of emergency reserves and an intervention by Saudi Arabia sent crude prices tumbling yesterday, raising the prospect of relief for Europe’s flagging economies and American motorists facing pump prices of almost $4 a gallon…as France’s energy minister, Eric Besson, confirmed his country was in talks with the US, UK and Japan to release billions of barrels of oil on to the market, Saudi Arabia’s influential oil minister said Riyadh would do all it could to bring prices down…
Today’s Markets
Asian markets were down overnight with China’s Shanghai Index, which was over 2400 recently, slipping to 2252…European markets are lower while futures in New York suggest a slightly negative open on Wall Street…the Venture Exchange closed at 1550 yesterday, just 12 points off its March low of 1538 set on the 22nd…it has been a shaky month with the Index down 7.3% entering the final two trading days of the quarter…
Rainbow Resources (RBW, TSX-V) Confirms Grades At International
Rainbow Resources (RBW, TSX-V) has come out with news during the last half hour, detailing a potentially robust system at its International Property in the Kootenays…RBW’s geological consultant, Moose Mountain Technical Services, has confirmed historical high-grade assays from the International with rock samples as high as 1,148 g/t Silver and 68% lead…what’s particularly interesting is that the International is now being viewed as a potential “epigenetic polymetallic” deposit containing Silver, lead, zinc and possibly Gold which is the first time we’ve heard Gold brought up regarding the International…President David Johnston states, “We are eagerly anticipating an aggressive drill program to test this system for continuity and possible extensions in all directions…given our strong knowledge of the area and Rainbow’s focus on defining a deposit, this is going to be a very exciting spring and summer for us…the Duncan Lake district has produced numerous silver-lead-zinc deposits and we believe the geological conditions are ideal for the discovery of a substantial deposit at the International”…the Tin City Property could turn out to be an extension of the International deposit, while it’s also interesting that beryllium – a rare earth element – has also been noted at that property…Rainbow has clearly put together a stellar land package and now the task at hand is to drill it…eight properties in total…the company is holding an event for investors in Calgary this afternoon, in advance of the start of the Cambridge Show there, and Johnston has granted our request for a short interview following that meeting…so we’ll have more to report on Rainbow tomorrow…this is a company with a determination to charge forward and make things happen, and that’s refreshing to see…RBW closed yesterday at 27 cents and continues to have one of the strongest charts on the CDNX…
Gold Bullion Development (GBB, TSX-V)
Gold Bullion Development (GBB, TSX-V) has recovered somewhat from a low of 11 cents the other day, but John’s chart below shows the challenges GBB still faces in the market…SGS Canada is handling an interesting drill program for GBB in the northern part of the Eastern Extension, and results from that will be critical in terms of GBB gaining fresh momentum to break out of a downtrend that has been in place for over a year…John updates the chart below…
Note: John and Jon do not hold positions in GBB (Terry does).
CMC Metals (CMB, TSX-V)
CMC Metals (CMB, TSX-V), which is on our “Sleeper” list, was one of the few bright spots in the market yesterday as it gained 3 pennies to close at 20 cents…this is a company worth doing some due diligence on…John’s 6-month daily chart below show a bullish RSI “w” formation, strong technical support between 16 and 17 cents, and the next major resistance level at 23 cents…
Note: John, Jon and Terry do not hold positions in CMB.
Jon – Did the RBW news release meet your expectations for the main event of March? I guess they are limited because the information is historical? The next news will be the heli-borne survey reports and then a drill programme. Perhaps we cannot expect much until drilling is underway with the current market conditions, unless there is a surprise later today and prior to the Roundup event in regard to the other property for year-round drilling?
Comment by Andrew — March 29, 2012 @ 7:06 am
Price movement has nothing to do with the news.
It’s market rut – we’re going through a pretty steep correction and RBW has held up very well if you haven’t noticed. Come on people, 34000 shares traded and this is down 2.5 cents? You really think these games will last if they keep pumping out pretty solid news like this? If so, then put your market order in and take a hike.
These guys have serious properties and a laughable market cap – give it another month or 2 until they have all their drill targets and announcements that drilling has commenced.
We should be around $0.40
BMR care to add anything else here?
Comment by alex — March 29, 2012 @ 8:00 am
Alex – I didn’t mention anything about “price movement”. There’s a sell off and profit taking today across most indices due to economic data. That’s the way it goes 🙂
Comment by Andrew — March 29, 2012 @ 8:19 am
Why should rbw be 40 cents? Seems like they are rehashing old news. I think the glow will come rbw while investors wait month after months for actually drilling results.
Comment by Moosey — March 29, 2012 @ 8:43 am
I thought there may be another nr:
Rainbow Adds Nevada Gold Property to Gold-Silver Exploration Portfolio
Comment by Andrew — March 29, 2012 @ 9:06 am
Possibly adding a second Nevada property. Immediate exploration plans with MMT. Roodenburg and Pirie must be in shock and awe – they don’t know what an aggressive approach to exploration is! 🙂
“Combined with our flagship Big Strike Project in the West Kootenay region of southeast British Columbia, this strategic entry into Nevada gives Rainbow year-round drilling capability and exciting additional opportunities to build value for our shareholders,” stated Rainbow President David W. Johnston. “Gold mineralization at Jewel Ridge is present in a variety of styles over a wide area and we look forward to unlocking the value of this asset. We’re also continuing our due diligence with respect to possibly adding a second Nevada property to our package.”
“We are delighted to enter into this agreement with Rainbow,” explained Greencastle CEO Anthony Roodenburg. “They have a strong technical team and an aggressive approach to exploration. We’re looking forward to this partnership on Jewel Ridge.”
Rainbow can earn a 60% interest in the Jewel Ridge Property by paying Greencastle $250,000 cash, issuing 1,500,000 shares of Rainbow and spending $4.5 million over 4 years. On earning a 60% interest in the property, Rainbow can elect to increase its interest to 75% by advancing the property to the stage of a bankable feasibility study. A finder’s fee may be payable in connection with this transaction.
Rainbow looks forward to releasing more details regarding Jewel Ridge and its immediate exploration plans for the property upon further review by Moose Mountain Technical Services, Rainbow’s resource consultant
Comment by Andrew — March 29, 2012 @ 9:13 am
there are many stocks running huge today even though market is red. RBW is clearly in a downtrend judging by the chart.
Comment by dave — March 29, 2012 @ 9:28 am
Andrew.did you take advantage of rgx sell off to get in rgx up big time again today
Comment by gil — March 29, 2012 @ 9:35 am
Gil – not yet; I watched RGX hit the new 52 week high and its still got room to go up before reaching the same rsi as the other day. Maybe early next week, I’ll just have to be patient but I need to sell a stock to switch and waiting on news to do that.
Comment by Andrew — March 29, 2012 @ 9:59 am
dave
“RBW is clearly in a downtrend judging by the chart.”
RBW broke a flag formation last friday and is in an uptrend
Comment by Steve — March 29, 2012 @ 10:14 am
And one more thing
“there are many stocks running huge today”
Where the hell are you looking???
All my list is red and it’s a HUGE list
Comment by Steve — March 29, 2012 @ 10:16 am
i wouldnt say theres lots running HUGE but there are a few….ZEN+10.5 ONL+5.5 GXY+4.5 just to name a couple
Comment by db — March 29, 2012 @ 10:25 am
Why are some readers assuming the news is out in all quarters…..why do you think the Co. is have this big presentation in Calgary today?
Getting the word out is far more than issuing an NR. Be patient.
Comment by John - BMR — March 29, 2012 @ 11:01 am
Nice reversal in gold and Toronto today- Heavy volume in the big boys like CNQ,Encana,Cameco,Suncore,Power Corp. etc.- Let’s hope it’s the start of an uptrend
Comment by Richard — March 29, 2012 @ 12:21 pm
John – I agree that promotion and visibility is so important. A booth at PDAC and Calgary Cambridge Show may have been good for the shareholders current and potential. I think the RBW trading patterns show that the majority of shareholders are patient and looking at the horizon/long term. On the other hand keeping a low profile until now may have been a smart move and in the interest of shareholders? Either way looks like a good company is unfolding. 🙂
Comment by Andrew — March 29, 2012 @ 12:27 pm
GBB’s chart – not exactly a picture of beauty is it Jon?
Comment by Hugh — March 29, 2012 @ 1:35 pm
I have a feeling that GBB will go back to a 6 cent stock…. too many cheap stocks and people are dumping…. will hit the 11 cents mark soooooooooon..
Comment by Theodore — March 29, 2012 @ 5:38 pm
Steve – open your eyes, rbw is in downward motion. There were many running today. Use some resources to find them.
Comment by dave — March 29, 2012 @ 7:16 pm