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July 14, 2011

BMR Morning Market Musings…

Gold has hit another record high this morning, $1,596, and is currently up $6 an ounce at $1,589 as of 7:00 am Pacific…another Perfect Storm seems to have arrived for the yellow metal…strong hints of more stimulus measures from the Federal Reserve and a Moody’s warning that the United States may lose its top-notch credit rating hurt the greenback yesterday and triggered fresh buying of precious metals…concerns over euro zone debt levels of course are also front and centre…as John’s 2-year weekly Gold charted illustrated last night, $1,675 appears to be the next major target area…Silver had a big day yesterday and is up another 98 cents this morning to $39.21…Crude Oil is 64 cents higher at $98.69 while the U.S. Dollar Index has recovered one-fifth of a point to 74.89…the CDNX has hit the 2000 level, a gain of 11 points through the first 30 minutes of trading…last weekend, we issued an alert regarding the CDNX that the March 7 to June 28 correction was over and that a major new uptrend had started…momentum should continue to build over the summer with the 10 and 20-day moving averages (SMA) providing support on any dips as witnessed early this week…we suggest investors stay focused at the moment on the advanced plays, specifically those companies with strong cash positions, favorable charts, and aggressive exploration programs…small to mid-sized producers on the TSX should perform exceptionally well in this environment – Richmont Mines (RIC, TSX) being a classic example, and others like it…Richmont’s chart, as John shows below, is a textbook case of technical indicators to look for…RIC gapped up this morning and is currently 24 cents higher at $8.28..

Northwest Quebec is hot and we’ll be visiting that area again next month with detailed updates and fresh opportunities for our readers…we see potential breakouts over the summer not just in Richmont Mines but also in Adventure Gold (AGE, TSX-V), Visible Gold Mines (VGD, TSX-V), Gold Bullion Development (GBB, TSX-V), Focus Metals (FMS, TSX-V), Mazorro Resources (MZO, TSX-V), Azimut Exploration (AZM, TSX-V) and others, while Abcourt Mines (ABI, TSX-V) is looking healthier now from a technical standpoint…readers should perform fresh due diligence on all of the above situations…the Yukon is going to continue to be hot and we have our ears to the ground up there with research going into some undiscovered opportunities in that region…ATAC Resources (ATC, TSX-V), of course, is the leader of the pack which also means it has big expectations to meet…ATC broke out to a new all-time high of $9.15 yesterday…Golden Predator (GPD, TSX-V), with its Brewery Creek Project, is on the move while we also remain extremely bullish on Silver Quest Resources (SQI, TSX-V)…not only is SQI active in the White Gold District but it holds a strategic and valuable 25% interest in the northern portion of New Gold’s (NGD, TSX) Blackwater deposit in central British Columbia, and NGD is drilling that area aggressively over the summer…Kaminak Gold (KAM, TSX-V) and Ethos Capital (ECC, TSX-V) are both looking very strong…exploration is also intense in central and northern British Columbia and Romios Gold (RG, TSX-V), which we’ve mentioned before, is a quality opportunity worthy of consideration…the company announced this morning that it has added a third drill rig at its highly prospective properties in the Galore Creek area…Spanish Mountain Gold (SPA) is an exciting opportunity and the company announced yesterday the closing of a $20 million financing…SPA has a substantial low-grade deposit which in central B.C. which is all the more attractive at current Gold prices…the stock is down a penny at 62 cents through the first half hour of trading…on another part of the planet, Canaco Resources (CAN, TSX-V) has a world class deposit shaping up at its Handeni Project in Tanzania…CAN released more drill results yesterday including 20.3 metres grading 6.93 g/t Au…a total of 56,000 metres of diamond drilling has now been completed at Magambazi from 240 holes…Canaco is well off from its $6.45 all-time high and seems to have found support in the vicinity of its rising 300-day moving average (SMA)…John updates the Canaco chart below…CAN is up 2 pennies as of 7:00 am Pacific at $3.57…

Also in Tanzania, we’re keeping a close eye on Currie Rose Resources (CUI, TSX-V) which is in the midst of its most aggressive exploration program ever with the stock trading at 17.5 cents…drilling continues at the company’s Mabale Hills Project (three major properties) in the prolific Lake Victoria Greenstone Belt…drill targets are still being finalized for the company’s flagship Sekenke Project, 200 kilometres to the southeast and along the same structure as Handeni…Sekenke is of particular interest to us as parts of that large land package run in between and surround two former high-grade mines…Currie Rose will be drilling Sekenke for the first time ever this summer and that should prove interesting…from a technical standpoint, Currie Rose remains in a long-term uptrend and a breakout through resistance in the low 20’s anytime over the next month or so is possible…the company is cashed up and can complete all of its exploration this summer and fall without having to do a dilutive financing…

8 Comments

  1. Jon, you forgot to mention Greencastle resources, VGN in your colomn of stocks that WILL break out to higher levels THIS summer. After personally speaking with a few people ” in the KNOW ” I can sleep much easier, knowing that VGN management has a very sound strategy, just about to unfold to substantially enhance share holder value. The small upward movement that VGN has shown lately is a sign of things to come, once VGN gets past .235, the next resistance level would .28, THATS when, I believe, Tony will spring the BIG NEWS on the unsuspecting public, catching them by surprise, and making them chase the stock. Also of note, it is my understanding that Tony is off to familiar haunts in Colombia for ” advanced ” negotiations with very connceted people. For all those who for some reason or other do not believe what I have just stated, pick up the phone and call Tony yourself, he is very easy to to talk to, and always willing to speak with share holders. ( 416 ) 367-4571 ext 231 It is Toronto number.

    Ps: I see that the bid has moved up to .195, and the ask is now at .20 with ONLY 5000 shares available, next stop??? You guessed it…. .235

    Comment by john — July 14, 2011 @ 7:41 am

  2. Bert?? Bert?? BERT!!!! Are you on VGN’s direct e-mailing list?? If not, contact them and sign up. This way, you can get the FIRST HAND information in a more timely manner. While Tony was in Mexico, I understand that he was in Sonora state, visiting the boys over at Evrim Metals. By the sounds of it, they had many long discussions about future plans. Now Tony is about to depart for Colombia, I can’t wait to see/hear what and why he is going down there for. VGN could be in for a few share price moving news releases to the UPSIDE very shortly. Once again the number to reach tony is 416 367-4571 ext. 231

    Comment by john — July 14, 2011 @ 8:22 am

  3. Johnny, Johnny, Johnny – The small upward movement that VGN has shown lately is a sign of things to come,

    Bert – Johnny didn’t you recently post that the small upward movement was
    you buying ? Step up folks, we have a volume of 500 on VGN, could be
    a sign of things to come. You never change Johnny, but i can cope
    with that. R !

    Comment by Bert — July 14, 2011 @ 8:48 am

  4. Bert, I finished my purchases last week, filled my boots at average prices of .175. Also the volume is NOT 500, but rather 11000, nothing significant as for as volume goes, for sure BUT we have seen this performance before with VGN, no volume for weeks on end, then out of NOWHERE an announcement, then 4 PLUS million shares change hands, sending the stock to new HIGHS!! This is EXCATLY what is happening right now, it is deceptive to think that ONLY volume garners attention. Be patient, wait for the BIG NEWS that we all KNOW is coming shortly, but for your own sake, LOAD UP with shares at these low prices, or pay MUCH more in a few weeks.Go back to December 2010, zero volume, then POW BOOM!! Out of the blue the stock flies to new ALL time highs, and we ARE GOING to REPEAT that performance VERY SOON!

    Comment by john — July 14, 2011 @ 10:11 am

  5. Jonn I phoned that number you posted and got a massage parlour, oh and I think I saw Tony in the Yukon.

    Comment by Dan — July 14, 2011 @ 12:05 pm

  6. There are no email alerts available at this time.

    Comment by Herb — July 14, 2011 @ 12:45 pm

  7. Bada Bing!

    Comment by Herb — July 14, 2011 @ 12:45 pm

  8. Hello BMR,

    Can you guys shed some light on above comments of VGN by our fellow John?

    Thanks

    Comment by Eric Benson — July 15, 2011 @ 6:36 am

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