Gold is showing some softness this morning and trading over the last several sessions suggests it may wish to test the $1,500 level again…as of 8:00 am Pacific, the yellow metal is down $7 an ounce at $1,525…Silver is 75 cents lower at $35.45…crude oil has slipped another 62 cents to $98.67 while the U.S. Dollar Index is off one-quarter of a point at 74.67…Chinese banks extended fewer new loans than expected in May, showing that tightening measures are biting, while broad money supply growth hit a 30-month low as the government kept its foot on the credit brakes in a bid to tame persistent inflation…when adding in all the future liabilities in entitlement programs, the U.S. is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC this morning…the CDNX is off to a positive start to the week after a 6% plunge last week that took the Index to a new yearly low of 1925…this market has major support around 1900 as John’s chart below outlines…while a dip slightly below the rising 300-day moving average (SMA) is possible – this occurred last summer and marked the bottom of the correction then – now continues to be the time in our view to be shopping for bargains…the CDNX is currently up 12 points at 1947…
It’s shaping to be an extremely busy summer of exploration in the Yukon where some 80 companies are expected to spend in the neighborhood of $500 million…Atac Resources (ATC, TSX-V) is off to a good start with news this morning that it has made a significant silver-lead-zinc discovery within the Rau trend (Ocelot target) in the western portion of its 100% owned Rackla Gold Project in the Keno Hill Mining District…results included 145 g/t Ag, 3.36% lead and 11.65% zinc across 41.72 metres in OC-11-09…another hole (OC-11-10) returned 63.44 metres grading 73.81 g/t Ag, 2.44% lead and 8.18% zinc…the primary focus of Atac’s 2011 exploration and 40,000 metre diamond drilling program remains the identification and expansion of Carlin-type Gold occurrences throughout the company’s 185 km long Rackla Gold Belt…the $25 million program is utilizing eight drill rigs…as of 8:00 am Pacific, ATC is up 93 cents to $7.02 on strong volume…more companies reporting stellar drill results such as ATC delivered this morning will give excellent support to the CDNX over the summer…another company active in the Yukon that investors should keep an eye on is Golden Predator (GPD, TSX-V)…GPD has tripled its 2011 budget to $6 million for its 187-square-kilometre Brewery Creek Project due to encouraging winter drilling results…a third rig was expected to be added by the middle of this month…GPD, which hit an all-time high of $1.38 in late April, is currently off 1 penny at 99 cents…Silver Quest Resources (SQI, TSX-V), which has projects in the Yukon as well as a valuable 25% interest in the Blackwater deposit now controlled by New Gold Inc. (NGD, TSX), is looking much better on the charts after some unwinding of its recent overbought condition…it’s currently unchanged at 95 cents…one of our favorite plays under 20 cents continues to be Currie Rose Resources (CUI, TSX-V) which is starting a 10,000 metre drill program during the last half of this month at its properties in the Lake Victoria Greenstone Belt of Tanzania…due to so many potential targets at its flagship Sekenke Project, which CUI will be drilling for the first time this summer, the company will begin drilling at Mabale Hills while additional groundwork pinpoints the most highly prospective targets at Sekenke which surrounds and runs in between two former high grade producing Gold mines…CUI has three major properties at Mabale Hills (Mwamazengo, Sisu River and Dhahabu) and each has the potential of delivering impressive drill results…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of the Mwamazengo discovery where previous drill results 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 grading 5.97 g/t Au…CUI’s chart is looking very promising as the company enters its busiest summer of exploration ever…a key technical development is a potential imminent reversal in the stock’s 100-day SMA which has flattened out after being in decline since January…CUI is off a penny at 17.5 cents on light volume through the first hour-and-a-half of trading…
Hi Jon, in the Weekend Review of VGN you mentioned the fact the oil revenues were down significantly. Is this do to the fact that the operator has decreased production? Or are the wells drying up? Or an entirely different reason?
Comment by john — June 13, 2011 @ 7:22 am
Also, I truely believe NOW that IF the oil wells are depleting fater than anticipated Mr. Rottenberg will MOST CERTAINLY start to make something happen with that cash pile, as the oil revenues are his CASH COW, and now that rev’s are lower, the writing is on the wall for Tony to do SOMETHING with the gold assetts.I believe we spin out the OIL and concentrate on the gold now. Still patiently waiting for this SUPPOSED Advanced stage gold Acquistion somewhere in the Americas to develop.
Comment by john — June 13, 2011 @ 7:38 am