Gold is pushing higher today as it edges closer to a new all-time high…as of 8:40 am Pacific, the yellow metal is ahead $14 an ounce at $1,425…Silver has hit a new 31-year high and is currently ahead 41 cents to $34.39 while the U.S. Dollar Index is unchanged at 76.85…figures released today show inflation in the Eurozone in February rose to its highest level (2.4%) since October, 2008…meanwhile, new statistics show that costs for Chinese and Indian factories jumped in February…robust economic growth continues in those two emerging markets but inflationary pressures are not abating, despite higher interest rates, with factories blaming rising raw material and fuel prices which are being passed on to customers…India’s economy expanded at a brisk rate of 8.2% in the fourth quarter but tens of thousands of people protested in the Indian capital last Wednesday against surging prices (India suffers from the highest inflation of any major Asian economy), adding to pressure on the embattled government…these worldwide inflationary fires provide a positive backdrop for Gold while the continuing unrest in the Middle East is also bullish for the yellow metal…Federal Reserve Chairman Ben Bernanke, testifying before the Senate Banking Committee today, said downside risks to growth in the U.S. have “diminished”…while saying for the first time that the risk of deflation was now “negligible”, Bernanke also stated that the Fed expects inflation to remain low and that long-term inflation expectations appear contained, both according to market indicators and surveys of consumers…”The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation,” Bernanke said…he gave no hint he was considering cutting short the Fed’s stimulus program (QE2)…the CDNX jumped as high as 2409 in early trading today but has since pulled back slightly to 2399, a gain of 7 points from yesterday…Manitou Gold (MTU, TSX-V), a company we first wrote about last spring though the stock had little liquidity at the time, enjoyed a spectacular day yesterday and is up again today…Manitou delivered an incredible assay result (1,566 ounces per tonne over a 0.55 metre core length) from an ongoing drill program at its Kenwest Property in the Gold Rock mining camp of northwestern Ontario…MTU hit a high of $1.13 this morning and is currently trading at $1.01, a gain of 22 cents…the stock rocketed 45 cents higher yesterday to close at 79 cents…we suggest investors check out the impressive core on Manitou’s home page…the Gold Rock Mining Camp has been very much under-explored, so Manitou’s aggressive exploration approach since becoming a publicly traded company last spring may eventually pay off in a big way…yesterday’s news has finally given the stock some much needed liquidity…Gold Bullion Development (GBB, TSX-V) came out with more details this morning on its drill program at the Castle Silver Mine near Gowganda, Ontario…this is a property with interesting potential for Silver, nickel and cobalt but the market’s focus remains squarely on Granada…GBB is off 3 pennies at 54 cents…Abcourt Mines (ABI, TSX-V) is unchanged at 19.5 cents…the company announced yesterday the acquisition of some claims from Xstrata covering the Vendome Property which is approximately 13 kilometres south of the Abcourt-Barvue Silver-Zinc deposit near Val d’Or…President and CEO Renaud Hinse told us this morning he has been talking with Noranda/Falconbridge/Xstrata for 15 years to get this piece of land and he’s very pleased he has now secured it…Vendome, which has an historical non-compliant resource, has plenty of exploration upside and the economics of the Abcourt-Barvue Project would improve even more if production from Vendome could be added in…Cadillac Mining (CQX, TSX-V) is up half a penny at 31 cents…we’ll have much more on CQX as the week progresses as well as Visible Gold (VGD, TSX-V) which has announced a 9,000 metre drill program over CQX ground west of Rouyn-Noranda…Visible Gold is emerging as one of the most aggressive exploration companies on the Cadillac Trend and its senior geologist, Robert Sansfacon, who spent 12 years as project manager for Lac Minerals, played an important role in the discovery of Osisko’s Canadian Malartic Deposit…VGD is unchanged at 40 cents…the company is armed with approximately $8 million in cash and is also currently drilling its Silidor Property which is a former producer…we suggest investors do their due diligence on VGD as it is definitely an up-and-comer in the hunt for Gold in northwestern Quebec…Great Panther Silver (GPR, TSX), one of our favorite Silver stocks, roared to a new 52-week high of $4.53 this morning…it fell as low as $1.79 in late January during the weakness in precious metals which shows how important it is to buy when everyone else is panicking and selling…
March 1, 2011
14 Comments
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Hi Jon, I guess you noticed the relatively low volume of shares trading on GQC this week. I would think with news pending thie volume would be much higher on anticipation of results before the PDAC. What are the chances of results before the PDAC?
Regards & Thanks,
Dan
Comment by Dan — March 1, 2011 @ 9:13 am
I’ve noticed that too….the volume yesterday was the lowest in quite some time. I wouldn’t read anything into that, good or bad, and I’ve learned never to predict when drill results from a company may come. Fisher promised strong news flow when we did the interview with him in early February…..and I’m sure there will be. Espaillat officially started as President/CEO yesterday. I’m sure the plan has been to try and put news out prior to PDAC or during the show as they will be displaying some core there. We’ll see what happens. Assay labs aren’t concerned about PDAC dates. Of course there’s also Toral, and a 43-101 resource estimate on that should come soon as well. I believe in GoldQuest a lot and I’m looking forward to March and the rest of the year – they’ve really only scratched the surface at Escandalosa. I’m expecting some nice numbers from there.
Comment by Jon - BMR — March 1, 2011 @ 9:34 am
Hi Jon,
sometimes I don’t understand the market. CUI had much better results than MTU but because one of the core results was 53kg/t the sp was shot up like a rocket. Can only one core result from 0,55 m depth actually mean that there are alot of gold in the ground?
Brgds
/ Peyman
Comment by Peyman from Sweden — March 1, 2011 @ 9:42 am
Thanks Jon for the response.
Comment by Dan — March 1, 2011 @ 10:07 am
There was quite a bit in the Manitou news release yesterday, showing they could be on to something at Kenwest. It’s funny how the market works. This is a company we liked a lot last year but the problem was, trading was almost by appointment only as the company wasn’t doing anything on the IR front to improve liquidity and make people aware of the opportunity. They have a nice land position and I became familiar with the story because they have property very close to Seafield’s Elora Property. The Gold Rock Mining Camp has been under-explored and has good potential. The news yesterday finally brought a whole bunch of new eyes to the play. We’ll see what happens. I don’t own any and I’m not going to chase it, but it’s certainly worth keeping an eye on. It was a good buy at the open yesterday. The narrow high-grade intersection of half a metre near-surface is interesting – much more drilling will be required though to get a handle on this system. A bonanza shoot is very nice but going forward the market will be looking for additional evidence of more widespread mineralization.
Comment by Jon - BMR — March 1, 2011 @ 10:57 am
Hello BMR!
ABI have been standing still for a while, what kind of news can make ABI move pass 0,23 cad. Gold and silver at ATH and ABI is standing still??
Comment by Carl — March 1, 2011 @ 12:29 pm
Thanks Jon for the response, much appreciated.
Comment by Peyman — March 1, 2011 @ 12:53 pm
Hello guys,
Any news why GBB is reversing back.
Comment by Eric Benson — March 1, 2011 @ 1:23 pm
Maybe because of the 16 milions shares from the last financing are now free to be traded.
Comment by Andre — March 1, 2011 @ 1:29 pm
Gents – I keep touting Brookemont Capital (BKT) maybe b/c I’m biased and I’m a shareholder, but there was an article in the Globe and Mail indicating that Canaco (CAN) maybe a takeover target with some analysts having a price target around $9/share. Canaco also has a massive drill program and raised over 100 million in a bought deal financing to prove their resource. This will have a huge impact on surrounding companies potential including BKT and SD if they can prove up their resource. Some predict a 5 Million ounce deposit or larger for Canaco.
Since BKT has an adjacent 64km2 lease to the North East of Canaco, I think you can do the math on where BKT stock is headed. Today there was huge volume and has been increasing over the week. BKT has been working on their mapping and survey in order to expedite their drilling program. With only 30 million shares outstanding I think this stock definitely has some legs. Do your own DD, but I recently picked up some additional shares.
Comment by Andrew M — March 1, 2011 @ 1:59 pm
Hi Carl, yes, it’s a bit strange that ABI is sitting where it is given the move in silver. The chart is looking good, though, so investor patience is all that’s required here I think.
Comment by Jon - BMR — March 1, 2011 @ 2:19 pm
Most of the juniors, silver,gold,copper are staying still even the spot prices racing. They will catch up, if u sittin on good companies that will say.
Comment by J.C. — March 1, 2011 @ 2:51 pm
Is CUU on your guys radar at all?
Comment by Mike Lee — March 1, 2011 @ 8:49 pm
Hi Mike, yes, well aware of Copper Fox. It has done well. It just doesn’t fit what we normally focus on.
Comment by Jon - BMR — March 1, 2011 @ 9:05 pm