Gold has gained some strength over the last 30 minutes…as of 8:30 am Pacific, the yellow metal is up $6 an ounce at $1,544…Silver is 50 cents higher at $37.30 while crude oil remains firm after yesterday’s failed OPEC talks…it’s up 56 cents a barrel at $101.30 as supply concerns mount…the U.S. Dollar Index is up one-third of a point to 74.17…the U.S. trade deficit narrowed unexpectedly in April due in part to a record $3 billion drop in imports from Japan which underscores the economic impact of the triple disaster in that country in March…the European Central Bank has kept interest rates on hold at 1.25% but warned it will remain “strongly vigilant” regarding inflationary pressures, signalling an interest rate rise is probably only a month away…“On balance risks to the outlook for price stability are on the upside, accordingly strong vigilance is warranted,” stated ECB President Jean-Claude Trichet…”On the basis of our assessment we will act in a firm and timely manner”…markets have stabilized this morning…the Venture Exchange is up for the first time in nine sessions while the senior TSX is up for the first time in eight sessions…the CDNX touched yesterday’s low of 1948 and is currently 4 points higher at 1956…as John’s chart showed yesterday, there is a strong support band on the CDNX between 1900 and 1950…given this week’s nasty 100-point reversal after the Index was showing so much promise last week, a drop to or slightly below the 300-day SMA of 1887 can’t be ruled out (the Index bottomed last July just below the 300-day and this has to be regarded as the “line in the sand”)…however, given all the negative sentiment we can’t help but believe this is a fabulous time for patient investors (and savvy traders) to be accumulating positions in quality companies…the outlook for the CRB Index is still positive, given John’s chart below, and that’s a positive factor for the CDNX…
One of our favorite small producers is Richmont Mines (RIC, TSX) which was down for the ninth consecutive session this morning, hitting a low of $6.70 which is just above its rising 100-day SMA…Richmont is headed for another solid quarter of earnings (Q1 earnings were 28 cents per share) and the long-term outlook for this company is exceedingly positive given the Francoeur operation which is coming on stream in about six months and developments at Wasamac which is a property we have been very bullish about for many months…it has the potential of taking Richmont to a 200,000 ounce per-year producer (RIC should produce 80,000 ounces in 2011)…technically, RIC is oversold…it’s currently up a dime at $7.00…with regard to the juniors, Currie Rose Resources (CUI, TSX-V) released an exploration update this morning with satellite imagery providing additional evidence that its Sekenke Project in the Lake Victoria Greenstone Belt of Tanzania is a first-rate geological target and part of the same northwest trending structure that hosts Canaco’s (CAN, TSX-V) Handeni Project…satellite imagery has also shown that the structures at Sekenke are coincident with a strong alteration envelope…what’s unique about Currie Rose’s Sekenke Project is that it surrounds and runs in between two former high grade Gold mines including Tanzania’s original producer…this greatly increases the chances of a discovery as it’s unlikely the former mines were fully exploited or explored as techniques a century ago in this industry obviously weren’t what they are today…CUI has a terrific chance to hit it big at Sekenke and we also wouldn’t be surprised if the company takes a shot at acquiring the former Sekenke Mine…that’s speculation on our part but it makes sense from a strategic point of view… Currie Rose will be drilling its Sekenke Project for the first time this summer…pre-drilling exploration work continues there to ground truth targets and in the meantime the company will begin drilling at its Mwamazengo discovery at Mabale Hills…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of the discovery where previous drill results included notable high-grade intercepts such as 34 metres grading 3.60 grams per tonne gold, 12 metres grading 9.11 g/t Au, 63 metres grading 2.59 g/t Au and 31 metres grading 5.97 g/t Au…CUI also has two other important targets at Mabale Hills, Sisu River and Dhahabu…as of 8:30 am Pacific, CUI is up a penny at 17.5 cents…Adventure Gold (AGE, TSX-V) is holding up very well and has firmed up nicely after finding support in the mid-40’s yesterday…AGE is currently up 6.5 cents at 55 cents…look for a potential reversal in the 20-day SMA which has been in decline since the beginning of May…this is a solid company with some valuable projects…Silver Quest Resources (SQI, TSX-V) is up a penny at 93 cents…the stock’s overbought technical condition has eased considerably in recent days after dropping as low as 88 cents in yesterday’s CDNX sell-off…it’s another quality opportunity…keep Romios Gold (RG, TSX-V) on your radar screen…for technical reasons it could drop a little further but the long-term uptrend is intact and the company’s Trek, Dirk and Newmont Lake properties in northwestern British Columbia have excellent geological potential…this is a company Lawrence Roulston spoke about briefly at the Resource Conference in Vancouver and it’s certainly worth our readers’ due diligence…Gold Bullion Development (GBB, TSX-V) is quiet and off half a penny at 45 cents…Gold Canyon Resources (GCU, TSX-V) has been under pressure recently and it’s 50-day SMA has started to decline for the first time since the stock started its climb from 25 cents last summer…this company is developing a multi-million ounce deposit with its Springpole Project in Ontario, approximately 110 kilometres northeast of the Red Lake Mining Camp…the stock is oversold based on RSI and Stochastics indicators but potentially could test its 200-day SMA around $2.25, just above its March low, before reversing…GCU is currently off 3 pennies at $2.59…
Jon, are you still intending to post the VGD interview? Any comments on ABI’s nr? Thanks 🙂
Comment by Andrew — June 9, 2011 @ 8:13 am
John is it possible to contact Tony at VGN? I dont see an email listed. This company should just start paying out a Dividend until they find suitable projects
Comment by Garrett Genest — June 9, 2011 @ 9:13 am
John is it possible to contact Tony at VGN? I dont see an email listed. This company should just start paying out a Dividend until they find suitable projects
Comment by Adam P E T E R S O N — June 9, 2011 @ 10:26 am
Try these two numbers…..416-367-4571 or 416-367-5269
Comment by Jon - BMR — June 9, 2011 @ 1:21 pm
Jon/John… the CDNX basically double bottomed at 1957…. and sits there now.. the previous low was 1902 in Nov. while the crystal ball is murky I’m sure, is it an educated and informed statement to say that we ‘shouldn’t’ go much lower??? The HUI is close to the bottom as well..
HUI:Gold has tanked and bottomed as well . almost an outside reversal … all suggesting that we are close..
can you please comment on my somewhat gumshoe TA:)??? TIA guys.. Happy Thursday!
Comment by Jeremy — June 9, 2011 @ 1:22 pm
Hi Jeremy
Thank you for your comment. If you don’t mind I would like to add a few pointers of my own in my reply.
There is a great tendency for EVERYONE at some time or other to tell the chart what it is going to do. One can look at a chart and say it can’t go down any further, and then the next day it does go down. Looking at the CDNX daily chart we see a small white candle for today and a long red one for yesterday. This does not constitute a bottom even though it bounced up off the resis. band between 1900 and 1950 and appears as a double bottom with the previous low. Look at the Slow Stochastics(14) it is still pointing straight down. Also there are no bullish candle reversing patterns such as Bullish Engulfing, Evening Star or even a Hammer.
Yes, a double bottom is a recognized reversal pattern but let there be comfirmation from other indicators as well to cut down the risk factor. In using TA we attempt to cut out the guesswork. TA is not infallible, yes it does fail sometimes but the laws of probability are on the side of the user.
On my desk I have a sign.It is the definition of “A Guess”
“A guess is a conclusion drawn up with insufficient facts”.
That is a good reminder to double check my conclusions.
In order to determine if this is indeed a bottom we must wait for the chart to tell us.
I hope this helps Jeremy.
Comment by John - BMR — June 9, 2011 @ 6:28 pm
Hi Adam
If you get through to Mr Roodenburg, please relay any news. We would all like to speak to Tony!
Comment by Hugh — June 10, 2011 @ 2:21 am
Would still be interested to know if you intend to post the VGD interview or perhaps I missed it? I think 13 assays are pending from April, so seem overdue and share price is under pressure so the interview may help investors determine whether to hold on or bail in the light of the market conditions – as things are, with no further drill results and if the correction continues the share price outlook for VGD would not appear to be good? Thanks.
Comment by Andrew — June 10, 2011 @ 4:16 am
Thx John .. helps for sure…. and of course more confirmations are always a better sign.. gotta learn more about the candle stuff… on stockcharts:)
thx mate… and as you are saying a day a trend doesn’t make… so we patiently wait for some confirmations either + or – 🙂 thx mate
Comment by Jeremy — June 10, 2011 @ 5:37 am
It seems SD has been dumped over 1.5 million shares at 4 cents… 3.5 cents. It will hit 3 cents or lower soon…..It will come to historic low 2.5 cents soon…
Comment by Theodore — June 10, 2011 @ 7:28 pm
theodore what about the big news
Comment by jimmy — June 11, 2011 @ 5:20 am
Sometimes, no news do not mean good news… in this case, there are so hold up in the permit and the results of the drill…. The company has not given an indication which is not a good sign… Anyways, keep watching, you may see more dumping in the near future. There are still a lot of loose shares which people may cut loss with price approaching zero everyday….
Comment by Theodore — June 11, 2011 @ 7:04 am
well a few days ago you were making it seem like SD was getting ready to break out, and now you do a 180
?
Comment by jimmy — June 11, 2011 @ 8:32 am
I agree with you. I do not want to say too much here as the news from other resources are not as good as I originally think…. The resources seem to be true … if this is the case, it will go down further…. when it goes down another 30%, I will cut my loss…. Think about the logic… who will dump $1 million shares at 4 cents if the news are not there…. another one a few days later at 3 – 3.5 cents. The same investor.
Comment by Theodore — June 11, 2011 @ 9:21 am
Thanks Theodore and Jimmy for the comments on SD. If there were good odds of a positive nr then one would think the sp would hold or increase. However as you know we have had an exciting week and I’m sure many investors bailed to go to cash positions to pick up good opportunities when it looks as if the CDNX has stabilised or ready to rebound. Then again it seems that more often than not that the lack / delay of news is not good. BMR haven’t had anything new to report on SD but perhaps there is little downside from here depending on the direction of the markets. One reason I’ve been looking forward to the BMR / VGD interview but I don’t know if that is going to be available or if I missed it? I’m also concerned that the outstanding drill results from April seem to be overdue? The stock is thinly traded so it makes it difficult to use stop losses. Anyway for now we may as well have a positive outlook and assume no news is good news! Have a good weekend.
Comment by Andrew — June 11, 2011 @ 11:28 am
most of the time no news is bad news on tsx-v, it seem like it any way.
Comment by jimmy — June 11, 2011 @ 11:34 am