Gold is back above $1,500 after Friday’s weakness to begin the month of July…as of 8:30 am Pacific, the yellow metal is $13 higher at $1,509…Silver has shot up 84 cents to $34.99…combined large and speculative net long positions in Silver, as shown by the COT report, have dropped to an historically low level while commercial short positions have also fallen to a low level – very bullish signs for the Silver market…(one of our favorite Silver plays, Great Panther Silver – GPR, TSX – is looking strong with a 50-day moving average – SMA – that’s ready to reverse to the upside)…Copper hit a two-month high yesterday, an encouraging sign, and is currently unchanged at $4.29 a pound…what the action in Copper seems to be suggesting is that there is indeed going to be a pick-up in global economic growth over the final half of the year…Crude Oil is up $1.49 at $96.43 while the U.S. Dollar Index has gained one-quarter of a point to 74.53…a survey of 80 central bank reserve managers shows that the most significant change in their reserves over the next 10 years is expected to be the addition of more Gold, as reported over the weekend by U.S. Global Investors…furthermore, respondents predicted that Gold will be the best performing asset class over the next year, citing sovereign debt defaults as the principal risk to the global economic landscape….the big economic number investors are waiting for this week is Friday’s U.S. June employment report, expected to show that just 100,000 new jobs were added for the month…other data includes the ADP private sector jobs report and ISM non-manufacturing survey tomorrow…chain stores report monthly sales on Thursday….China’s GDP for the second quarter is due on July 15…Colombia’s GDP in the first quarter grew by 5.1% versus an expected 4.8%…mining was the driver of growth, up 9.4%…the Dow, Nasdaq and S&P each enjoyed their best week last week since 2009…the Dow was up 5.4%, the S&P increased 5.6% while the Nasdaq jumped 6.2%…the CDNX continues to show signs of having bottomed out and we can’t help but think this market is going to enjoy a terrific final two quarters of 2011…the Index has gained 56 points or 3% over the last three trading sessions and is up another 8 points as of 8:30 am Pacific to 1930…Currie Rose Resources (CUI, TSX-V) is about to begin the fourth hole of its 10,000 metre drill program in Tanzania…the company is starting at its Mabale Hills Project with the RC rig initially at Sisu River before it shifts over to Mwamazengo…a significant near-surface expression was outlined in a first-pass drill program late last year at Sisu River which is open both to the north and the south and at depth…reading between the lines of this morning’s news, geologists may have liked what they saw in the first three holes (506 samples were sent in for assay) as the rig is staying there for now for additional holes…at Mwamazengo, the company will be testing a geochemical anomaly traced over a few hundred metres that runs parallel to the west of a previously reported discovery that included notable high-grade intercepts such as 34 metres grading 3.60 g/t Au, 12 metres grading 9.11 g/t Au, 63 metres grading 2.59 g/t Au and 31 metres of 5.97 g/t Au…Dhahabu, a few kilometres northeast of Sisu River, will also be drilled…field work continues at the Sekenke Project which includes some highly prospective ground that Currie Rose will be drilling for the first time ever this summer…we have two new situations to share with our readers this morning for their due diligence…we’ll be keeping a close eye on each of them…Azimut Exploration (AZM, TSX-V) holds one of the largest (if not the largest) mineral exploration portfolios in Quebec…AZM closed yesterday at $1.29, just four pennies above its rising 100-day moving average (SMA)…the company, which has only 33 million shares outstanding, completed a $5.8 million financing in March, most of which was hard cash at 90 cents…another situation we find very interesting is Camino Minerals (COR, TSX-V), which technically doesn’t look that strong at the moment but we like the story and the fundamentals…Camino Minerals is well-funded and was formed in connection with Goldcorp’s (G, TSX) $300-million acquisition of Canplats Resources…Camino is led by Canplats‘ former management and is focused on precious and base metal projects located in Mexico…the company started a 6,500 metre drill program at its promising Rodeo Gold Project just a few days ago…from 2004 to 2007, Canplats drilled 3,500 metres at Rodeo but tested only 600 metres of a five-kilometre long epithermal system with only two holes exceeding 200 metres’ depth…COR is currently up a penny at 35 cents on light volume…one of our favorite plays for the summer is Silver Quest Resources (SQI, TSX-V) which is came out with more news this morning and is active on a number of fronts with quality projects in the White Gold District of the Yukon and British Columbia…John updates the chart this morning on SQI which is currently up 3 pennies to $1.18…
Silver Quest will be drilling 15,000 metres in the Yukon this summer…it holds 17 properties in the White Gold District covering 85,000 hectares…more money will be spent on Gold exploration in the Yukon this summer (approximately $400 million by about 80 different companies) than ever before…Atac Resources (ATAC, TSX-V), which is aiming for a Carlin-scale deposit, is up 21 cents to $7.42 this morning…Kaminak Gold (KAM, TSX-V) is 16 cents higher at $3.85 while Golden Predator (GPD, TSX-V), another Yukon play we like, is off a penny at 95 cents…we’ll be focusing a lot on northwest Quebec in the near future, from west, north and south of Rouyn-Noranda down the Golden Highway to the east…after a difficult few months, Visible Gold Mines (VGD, TSX-V) is looking a lot healthier and its Joutel and Cadillac/Lucky Break Projects could trigger a major reversal very soon…VGD is currently up half a penny to 22 cents…the market has yet to catch on to the significance of what’s unfolding at Richmont Mines‘ (RIC, TSX) growing Wasamac deposit which is going to have major positive implications for the area in our view…
Regarding SQI, i would suggest we will not see a significant
increase in share price until the financing closes on or around
July 19th. The flow through shares are priced at $1.15 & after
touching $1.23 recently, they slowly but surely found a way
to move it back to $1.15…. I would suggest that after the
closing, we will see $1.25. I have had positions in stocks
similar to SQI, lots of news, lots of anticipation, lots of
excitement. As always, i will not be there at the end, but
for now, i am holding. Good luck to anyone, who are fortunate
enough to have a position. R !
Bert
Comment by Bert — July 5, 2011 @ 7:53 am
The way SQI is trading today, i would suggest we will see $1.50
after financing closes not $1.25 as mentioned previous comment.
By the way, i am right some of the time.
R !
Bert
Comment by bert — July 5, 2011 @ 8:22 am
Perhaps look into sgc.v. It has a ton of copper and lots of gold. It is by Nevsun and looks outstandingly promising, especially with copper hitting new highs and gold looking like it would like to, in the near future.
Comment by andrea — July 5, 2011 @ 8:31 am
In addition to my above comment… Peter Grandich picked sqi-v at .33 and look at it now. Sgc.v is one of his top recommendations currently!!!A very reliable, knowledgable mining specialist.
Comment by andrea — July 5, 2011 @ 8:34 am
Looks like VGN is trying to have a little break out, albeit on small volume. Perhaps Tony and friends do not want to let it ride quite yet, but are accumulating shares in anticipation of the preveious news release stating that they, will in fact try to acquire something substantial, and advanced and already permitted. Any technical anlysts out there? Whats the next resistance level for VGN?
Comment by john — July 5, 2011 @ 9:21 am
Reference comment # 5, Johnny you scoundrel !
Comment by bert — July 5, 2011 @ 9:25 am
Hello Andrea
I also have a position in SGC, but the location Eritrea, may be holding
the market back somewhat. Anyway, NSU a producer, is also in the same
area & as i type, they are finalizing a purchase agreement by the Eritrean
National Mining Company to purchase 30% of NSU. This agreement by the
government arm, will change any negativity the market may have about the
country & add to the prospects for SGC & no doubt, will add to the share
price. No doubt, SGC has the goods & a shot in the arm is all it needs. By
the way, i have delved into that country & feel quite confident my investment
is quite secure.
R !
Bert
Comment by bert — July 5, 2011 @ 9:40 am
John – the next resistance level for VGN is all the way up to……….. 0.19! 🙂
Comment by Andrew — July 5, 2011 @ 9:59 am
Holes T11-05 and T11-12 were also pretty good – from ABI NR… ia this considered good grammar and word selection for a NR..?? just asking:)
Comment by Jeremy — July 5, 2011 @ 10:00 am
Thanks for the info on SGC, Bert – I was concerned about it’s operations locations from a political standpoint. Thanks for mentioning it, Andrea!
Comment by Andrew — July 5, 2011 @ 10:03 am
Hello Jeremy, I doubt that it is accepted as useful terminology! “Excellent results from the four best holes” – not spectacular results as far as I can determine and the information on the “other” holes is meaningless. I posted a question about a prior ABI nr last week. Hopefully, Jon will be able to address your question, my question from last week and give his interpretation from this latest nr.
Comment by Andrew — July 5, 2011 @ 10:27 am
Hi Bert and Jeremy,
Grandich is speaking with Sprott, Sinclair,Embry and Mursphy at the beginning of August at the GTA gold rush show in England. I would think he would promote it to many Europeans there as they are his top “one” to own as well as his clients. Currently they look as if they could be bigger than Nevsun. Ideal to either be bought over by the Chinese or for the Gov. to partner with.
glta,
Andrea
Comment by andrea — July 5, 2011 @ 10:39 am
Well, the ABI nr has, so far, had zero, zip, zilch impact!:)
Comment by Andrew — July 5, 2011 @ 11:13 am
John when do you think the assay results of visible golds drilling on Cadillac break property will be published.How long does it normally take to get results after a sample has been sent in for an assay.
Comment by gil — July 5, 2011 @ 3:18 pm
Hello Bert, may I ask if you have any thoughts/insight on GZZ and Sierra Leone? Thanks!
Comment by Andrew — July 5, 2011 @ 4:34 pm
Andrew
Sorry, i can’t help you with that one, but at a glance, i came up with this :
Country profile: Sierra Leone
Sierra Leone, in West Africa, emerged from a decade of civil war in 2002, with the help of Britain, the former colonial power, and a large United Nations peacekeeping mission.
More than 17,000 foreign troops disarmed tens of thousands of rebels and militia fighters. Several years on, the country still faces the challenge of reconstruction.
Overview
A lasting feature of the war, in which tens of thousands died, was the atrocities committed by the rebels, whose trademark was to hack off the hands or feet of their victims.
AT-A-GLANCE
Amputees play football
Politics: Sierra Leone is recovering from a 10-year civil war which ended in 2002; war centred around a power struggle and had a regional dimension
Economics: Substantial growth in recent years, but Sierra Leone remains bottom of UN’s league for human development
Timeline
A UN-backed war crimes court was set up to try those, from both sides, who bear the greatest responsibility for the brutalities. It completed its work at the end of 2009. Its remaining case, the trial of Charles Taylor, continues in The Hague.
Sierra Leone has experienced substantial economic growth in recent years, although poverty and unemployment remain major challenges.
In September 2010, the UN Security Council lifted the last remaining sanctions against Sierra Leone saying the government had fully re-established control over its territory, and former rebel fighters had been disarmed and demobilised.
Economic recovery has been slow partly because the reconstruction needs are so great. Around half of government revenue comes from donors.
The restoration of peace was expected to aid the the country’s promotion as a tourist destination in the long term. Sierra Leone boasts miles of unspoilt beaches along its Atlantic coast, and hopes to emulate its neighbour Gambia in attracting tourists.
Sierra Leone is also rich in diamonds and other minerals. The trade in illicit gems, known as “blood diamonds” for their role in funding conflicts, perpetuated the civil war. The government has attempted to crack down on cross-border diamond trafficking.
Sierra Leone has a special significance in the history of the transatlantic slave trade. It was the departure point for thousands of west African captives. The capital, Freetown, was founded as a home for repatriated former slaves in 1787.
R !
Bert
Comment by Bert — July 5, 2011 @ 4:55 pm
SD has been extremely quiet these days but there is no big lot dumping. This is a good sign and a lot of small investors in the line up for 3 cents. The 3.5 cents lot is about 10% of the 3 cents buying lot. July seems to be a ‘News’ month for this company and large lot buys may happen before news announcement. For sure, you will see some activities before end of July. I am patiently waiting for the drill results….
Comment by Theodore — July 5, 2011 @ 5:40 pm
Theodore,
Each time you post a projection higher for either SD or GBB; they fall and as we’ve seen they both still haven’t recovered.
Comment by Paul — July 5, 2011 @ 6:15 pm
Thank you very much, Bert – your time and input is much appreciated! 🙂
Comment by Andrew — July 6, 2011 @ 4:24 am
You are quite right Paul but the overall penny stock market has been weak. Someone is buying over 180,000 SD shares at 3.5 cents today. The volume is so low recently and you do not see large volume dumping these days. I am very positive about this stock and this price will not stay long. As for GBB, the volume is also low even though it accumulates about 20% raise in recent trading. Also waiting for news …. Both stocks, I am holding some nice porfolio.
Comment by Theodore — July 6, 2011 @ 12:44 pm
Theodore, you may find it interesting to look through the archives. Try March 2010 for SD. For anyone interested in SFF try October 2009 when it was heading for $1 – $3. Kent is also discussed in detail and it was downhill from that point to the current low.
Comment by Andrew — July 6, 2011 @ 3:45 pm
Thanks Andrew for directing me to the archive page. Frankly speaking, I invest in penny stocks for fun and only 3 stock I had bought GBB, SFF and SD. Currently, I am holding SD and GBB. GBB was the first stock I bought when it was 7 cents and I realized my profits at different prices 73 cents and 55 cents. I am still positive about this stock as it may go back to the 50s shortly provided drill results are not bad. For SD, I only bought recently and therefore, I was not in the wave between 7 – 26 cents. Penny stocks are high risks as most of them cannot survive over 40 cents. If the real players are not there, nothing will happen and the stock will stay at a nominal value. If the result of SD is not good again, it will go back to 1.5 – 2 cents and a consolidation of stocks are quite likely…. 10 shares to one share…. to put back the stock to 15 cents – 20 cents. However, I do believe that the result this time will be more positive by the end of July. SFF I missed the big wave but I manage to get some profits before it came down to below 30 cents. Still a winner….
Comment by Theodore — July 6, 2011 @ 4:30 pm