Gold has surged higher today, following yesterday’s intra-day reversal when the Fed modestly exceeded market expectations regarding its fresh quantitative easing program…if there was any doubt concerning Helicopter Ben’s strategy, he has made it abundantly clear in a Washington Post opinion piece…the Fed Chairman defended the central bank’s decision to buy $600 billion in government bonds and noted that this strategy “eased financial conditions in the past and, so far, looks to be effective again”…the Central Bank Chairman noted that stock prices rose and long-term interest rates fell in anticipation of Wednesday’s decision…”Lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending,” he said…those are stunning words from a Fed Chairman who seems determined to put the pedal to the metal and drive the U.S. Dollar even lower to help prevent a Japanese-style deflationary scenario…meanwhile, the new dynamics in Congress after Tuesday’s elections are likely to make economic growth through stimulative tax measures the #1 priority…the anti-business, tax “the rich” agenda of the Obama administration is out the window and this is very market bullish, but there will be enough gridlock in Washington to prevent any substantive progress in terms of reducing American government debt…that’s a very positive recipe for Gold which is $31 higher as of 8:00 am Pacific at $1,380…Silver is up 76 cents to $25.60 while the U.S. Dollar Index has plummeted to 75.74, a drop of two-thirds of a point…the CDNX has climbed 39 points to 1987 and appears certain to blast through 2000…we’re preparing a major report on Currie Rose Resources (CUI, TSX-V) which we’re convinced has enormous blue sky potential with its large land package in northwest Tanzania where the company is very active and will be ramping up its exploration efforts…CUI is up a penny at 20 cents and a breakout through this resistance area appears imminent…BMR will be interviewing CUI President and CEO Harold Smith again tomorrow…GoldQuest Mining (GQC, TSX-V) is looking very strong technically at the moment as John pointed out in a recent GQC chart update…the fundamentals with this company are far better than they were in 2007 when GQC rocketed to $1.80 a share at a time when the CDNX was also on fire…GoldQuest is currently up another 2 cents to 27 cents…Greencastle Resources (VGN, TSX-V) is becoming much more aggressive in the Gold exploration space and its 200-day moving average is just starting to reverse to the upside…given VGN’s history of sudden and dramatic spikes to the upside, this is a highly attractive opportunity at 20 cents as Greencastle’s market cap of $9 million is only $3 million above the company’s cash value…Gold Bullion Development (GBB, TSX-V) is quiet at 60 cents, up 2 pennies, but our gut feeling is that we’re witnessing the lull before the storm…the Granada Gold Property has consistently delivered good news all year long…our boots have been on the ground in the LONG Bars Zone and we’re as comfortable as we’ve ever been with GBB…in the type of environment we’re in for Gold and junior mining stocks, an advanced project with multi-million ounce potential such as Granada is going to garner an immense amount of investor interest…
November 4, 2010
11 Comments
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Hi Jon! BMR needs to come up with some good silver plays- outperforming gold lately!
Comment by dave — November 4, 2010 @ 7:52 am
SQI is great. Coffine Brothers, Grandich both like it. Has been preforming well.Andrea
Comment by andrea — November 4, 2010 @ 8:21 am
Thanks, Dave. You are correct and we’ve been looking for the right silver play for a while (in our current portfolio, GoldQuest does offer some silver exposure which makes GQC even more interesting). But we are searching for a silver-focused situation that offers major potential. Among current producers, Great Panther (GPR, TSX-V) is certainly worthy of consideration with excellent leverage to higher silver prices.
Comment by Jon - BMR — November 4, 2010 @ 8:26 am
Hello Jon,
Any up dates on SFF……and SD……
Comment by Eric Benson — November 4, 2010 @ 8:35 am
All’s quiet from SFF and SD, but it’s reasonable to expect exploration news from both very soon…..we’re comfortable things are progressing well on the ground for both SFF and SD…….it’ll be nice to get some fresh news…..
Comment by Jon - BMR — November 4, 2010 @ 8:41 am
Andrea,are you referring to silver re SQI? My understanding is (despite the name) its primarily a gold stock! Could be wrong! GPR I have,just wish I hada lot more!:-)
Comment by dave — November 4, 2010 @ 9:10 am
Regarding SQI you are correct. Jon I waa wondering if you had an uranium pick. It is projected to due well over the next while.
Thanks as always,Andrea
Comment by andrea — November 4, 2010 @ 10:55 am
Hi ya Jon, just in case you didnt know, GBB also has a huge silver mine ( Castle ) in their portfolio which is relatively quiet right now. With silver on a tear lately, I m expecting big things from GBB on the gold front and silver at a later date!
Comment by alec — November 4, 2010 @ 11:04 am
This is true and thanks for pointing that out. It also contains very high grade silver, a former producer. We haven’t heard anything from GBB regarding the Castle Property but I suspect something could be in the works. GBB’s focus is obviously on the LONG Bars Zone.
Comment by Jon - BMR — November 4, 2010 @ 11:14 am
GBB: Breaking News
…………………………..
Gold Bullion Development has closed an $8 million
financing and a 50,000 metre Phase 3 drill program
is now underway at the Granada Gold Property in
northwestern Quebec. The company looks forward
to providing a detailed update in the near future as
this large project continues to advance.
On September 9, Gold Bullion reported the best
near-surface assay result yet from its drilling at
Granada. GR-10-53, collared 88 metres southeast of
GR-10-41 and near Pit #2 East, intersected 68.3 metres
of 2.16 g/t Au within a wider near-surface interval
of 110.5 metres (3.5 metres to 114 metres) grading
1.34 g/t Au. The hole was drilled perpendicular to
Vein #2 and is believed to closely approximate true
width. GR-10-53 is inside the LONG Bars Zone
Preliminary Block Model which was outlined in
detail by Gold Bullion in its April 22, 2010, news
release. Meanwhile, the LONG Bars Zone Eastern
Extension, outside the Preliminary Block Model,
continues to be an area of extreme interest. GENIVAR,
Gold Bullion’s geological consultant, reports that
visible gold and disseminated sulphides, along with
large alteration zones, have been observed within
feldspar porphyry in numerous holes drilled since
July in all directions (north, south, east and west)
surrounding Phase 1 discovery hole GR-10-17.
Assay results are still pending for these holes where
mineralization was encountered near-surface and at
depth. The fact that porphyry is hosting gold is an
interesting development historically for Granada as
a 2006 Technical Report on the property stated that
all economic mineralization at Granada was related
to quartz veining. Of significant new interest is the
southernmost hole drilled to date in the LONG Bars
Zone, GR-10-86 in the Eastern Extension, which
intersected strong alteration and intrusive zones
along with visible gold in two sections (a brecciated
quartz vein and also in feldspar porphyry) at different
depths. Assays are pending on this hole which is
interpreted to be a possible extension of Vein #2,
250 metres to the northwest.
Comment by Forb — November 4, 2010 @ 11:50 am
Hi Dave,
Have a look at Arian Silver AGQ. Just starting production on a resource which is just 10% of their land package. Big drill program coming up and could be of interest. Also Southern Siver SSV could be interesting. Way down the silver food chain but has some interesting properties.
Comment by patrick — November 4, 2010 @ 1:10 pm