Gold fell as low as $1,544 this morning before rebounding dramatically when U.S. job report numbers came in much weaker than expected (69,000 vs. an estimated 150,000)…as of 6:00 am Pacific, the yellow metal is up $21 an ounce at $1,581 after climbing as high as $1,591…Silver is up 15 cents at $27.86…Copper is off 3 pennies at $3.34…Crude Oil is $3.63 lower at $82.90 while the U.S. Dollar Index is up one-fifth of a point to 83.31..
Today’s Markets
European markets are down sharply, thanks in part to weak economic data out of the euro zone, while stock index futures in New York as of 6:00 am Pacific are pointing toward a significant sell-off on Wall Street after an already dismal May, the worst month in two years…
John’s latest chart on the CRB Index certainly confirms an economic slowdown, and the U.S. jobs report this morning – combined with the situation in Europe – may very well convince the Fed to embark on more “quantitative easing” or other creative measures…globally, expect central banks to move aggressively as we have been speculating for a while now…this could have a major impact on Gold and lead to a reversal in commodities…
China’s PMI Falls In May
Data released on Friday show that China’s manufacturing sector has weakened sharply, adding to the pressure on the government to take more decisive action to support the flagging economy…the official purchasing managers’ index for manufacturing fell to 50.4 in May, its lowest in five months, from 53.3 in April…although it was the Chinese PMI’s sixth straight month above the 50 level, which signals an expansion of activity, the fall in the index highlighted a clear slowing of growth momentum…not surprisingly, Chinese premier Wen Jiabao has reiterated that growth is now the top priority for the country, and in recent days the NDRC (National Development and Reform Commission) has approved a series of projects as China is now fast-tracking approvals for infrastructure investment…the government, however, has so far ruled out the possibility of implementing anything close to the 4-trillion-yuan ($628 billion) package it committed to in 2008…the next 60-90 days will be critical for the Chinese economy to see if monetary easing measures introduced in recent months will begin to start taking effect…
Rainbow Resources (RBW, TSX-V) – West Kootenay Game-Changer
Rainbow Resources (RBW, TSX-V) continues to make impressive progress on the ground with the company releasing an update yesterday on its Jewel Ridge Property in Nevada, and a plan that could generate significant revenue from its Referendum Property in the West Kootenays…President David W. Johnston brought up the idea of a bulk sample at the Referendum in a recent BMR interview, and this was confirmed in yesterday’s news along with historical data that showed a 1980’s mini-bulk sample produced an average grade of 4.5 g/t Au and 24.9 g/t Ag…the eastern side of the Referendum features a zone measuring 700 metres x 150 metres that is open in all directions and features hydrothermally altered rock with very low sulphide content…this makes it ideal for surface mining through a bulk sample – the rock is “soft” which makes it much easier and more cost-effective to handle – and the low sulphide content should make it environmentally benign, which will help with the permitting process…here’s the kicker…if RBW were to do a 10,000 tonne bulk sample with similar grades to what was done historically, this would result in about 1,300 ounces of Gold and 8,600 ounces of Silver for total revenue at current prices of approximately $2.5 million…the Referendum could certainly be a game-changer for Rainbow, and on the other side of the property – the western section – the company will be investigating a potential Gold-copper porphyry system…the Referendum could be the source of a major “heat engine” in this particular area of the Nelson Gold Camp…between the Referendum, the International, Gold Viking and Ottawa properties, Rainbow has a terrific chance of making a significant discovery…
At Jewel Ridge, RBW has reported encouraging assays from chip sampling that demonstrate the economic potential of the property…a 2,000 metre Phase 1 drill program is planned for the third quarter to test a primary mineralized structure that runs for at least 3 kilometres toward Barrick’s Ruby Hill Mine…there are several past producing shallow open-pits at Jewel Ridge, and extending those at depth by drilling along the north-south geological contact could produce some impressive intersections…one only has to look at the numbers Cadillac Mining (CQX, TSX-V) released from its Utah Project in February to get a good understanding of what RBW could come up with – there are some geological similarities between the two…
Rainbow also announced yesterday that drill permits for Gold Viking and the International are “imminent” which means drilling could be just around the corner as the month of June begins to unfold…
Cadillac Mining (CQX, TSX-V)
Speaking of Cadillac, it is still very much on our radar screen…as of about 10 days ago, as the company reported, Phase 2 drilling at the Goldstrike Project in southwestern Utah was on the 6th hole and all holes drilled to date have intersected the prospective southern graben-bounding structure…Cadillac will be drilling approximately 15 holes in this phase, ranging in depth from 60 metres to 150 metres on up to seven cross-sections…this is expected to define the relationship between mineralization, structural controls and stratigraphic constraints in a complex graben-bounded environment…Cadillac ran as high as 50 cents in late February on results from the first phase of drilling at Goldstrike, and recent overall market weakness has driven the stock down into the low teens for a very modest market cap of $4 million…an independent geologist we spoke to at PDAC regarding this project is very confident of more good results (remember GQC, everyone?)- below is an updated chart from John on CQX…
Note: John and Jon hold positions in RBW (Terry does not). John, Jon and Terry do not hold positions in CQX.
WE WILL OVERCOME SOME DAY !!!!!
A good report on RBW, my confidence in it is returning. R !
Comment by Bert — June 1, 2012 @ 5:13 am
WCU had some great news today! Gold up over $40!
Comment by STEVEN — June 1, 2012 @ 5:41 am
Interesting……yes, Gold is having a powerful day and the gold stocks have telegraphed this move over the last couple of weeks……Gold could take a serious run this month……
Comment by Jon - BMR — June 1, 2012 @ 5:47 am
Hey Bmr seems no nr has moved Rbw shares,so whats the next nr or catalyst me im thinkin the permit announcement and investors mentioned by David.
Comment by Gerry — June 1, 2012 @ 7:03 am
Although i don’t consider myself as being a good chart reader, i do have an idea, but
one thing is for sure, in this environment, you can throw the charts out through the
window. To get a good indication of what is going on, take a look around us & you will
see what to expect from the venture. The Venture is also being played by the money
pockets, who play to make a dollar, one way or another, as they resort to machines,
to outdo the lowly folk, who depend on each other to try to make a dollar. We are always
one step behind the folks, who with money, who with machines, are able to manipulate, are
able to be braver, because they are cozy with the companies we invest in & as a result,
are privy to information, that we have to guess at. This world is so unfair, so one sided,
that i shudder to think about the folks, that are one step below us, because i consider
we are still fortunate, to be able to participate & try to make a dollar from this game,
which i consider gambling. Lord please forgive those, who have no consideration for folks
less fortunate. R !
Comment by Bert — June 1, 2012 @ 7:53 am
Visible Gold Mines – Termination of investor relations agreements
ROUYN-NORANDA, QC, June 1, 2012 /CNW Telbec/ – Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) announces that, due to market conditions, it has terminated its investor relations agreement with Euroswiss Capital Partners effective on December 4, 2011, as well as its investor relations agreement with Axino AG effective on December 29, 2011.
About Visible Gold Mines
Visible Gold Mines Inc. is a dynamic company aggressively searching for the next important gold deposit in northwestern Québec, an area consistently ranked as one of the world’s best jurisdictions for mining and exploration. The Corporation has no debt and its current cash liquidity is approximately $1.4 million.
Comment by Bert — June 1, 2012 @ 8:07 am
One positive thing today, ATC up 0.47.. Aren’t they in the Yukon ? yes my friends & i have
stated it before & i will state it again, the Yukon will lead the way for the Venture. Better
days ahead !!! R !
Comment by Bert — June 1, 2012 @ 8:11 am
Mentioned ityesterday and ill mention it again today…AOX is moving. It will be above 40 before you.know it…
Comment by db — June 1, 2012 @ 8:24 am
BMR
Speaking of the Yukon, Bert, has anyone been paying attention to TAKU GOLD, they have an impressive land package over 66000 hectares, 3.5 million cap, and getting ready to finally start some exploration work on their sulphur property, could be one to watch?
Comment by Greg — June 1, 2012 @ 8:36 am
Greg
I have shares in TAK., it’s been a disappointment, but what company hasn’t ? It may bounce
back, but it needs good results. I know the people well behind this play & if i hear anything,
i will bring it forward. R !
Comment by Bert — June 1, 2012 @ 8:44 am
Bert
I used to own it at 35-40 cents, it is one of the only ones that I got out of before they all tanked, it could be another gqc or cqx, like the small cap and they do have some potentially great Shawn Ryan properties. Thanks Bert.
Comment by Greg — June 1, 2012 @ 9:13 am
@ BMR. What are your thoughts on the Venture turning green today, despite every other markets bleeding profusely?
Comment by TonyT — June 1, 2012 @ 9:16 am
GTA Resources and Mining Inc
GTA stock ready to pop . News should be out next week on phase 2 drilling
Comment by Joe — June 1, 2012 @ 9:23 am
No offence but why don’t you start pushing some real juniors instead of RBW? It will take a looong time before they even have a chance to show something meaningful. And that is also a BIG if.
There are so many high quality juniors beaten down out there that are in production or near production. Why take the enormous risk in a company like RBW??
Comment by Don — June 1, 2012 @ 9:47 am
Jon – RBW, just wondering if you have had an opportunity to discuss the chip sampling from Jewel Ridge with Moose Mountain? Did it meet your expectations, I understand that it will be an Autumn and Winter drill campaign so that will keep news flowing when the Kootenays are in hibernation but I’m just curious as to how meaningful the chip results are for defining drill targets. Do you think they used the backpack drill to assist in defining targets – I’m assuming not because that wouldn’t equate to chip samples. Thanks!
Comment by Andrew — June 1, 2012 @ 10:08 am
Bmr is in a position now that they are using this platform for personal gain. Chances are they really don’t care about anyone else. They now by now that if they start mentioning a very small cap stock that there will be enough followers from this site that will buy the stock causing a bump in price. Actually when you think about, kinda a nice situation to be in.
Rbw at this point is only spewing out historical data that they are hoping to catch the markets eye with which is not really happening. They have limited funds (meaning dilution probably soon) and chances are drill results are long ways off yet
Comment by Clint — June 1, 2012 @ 10:26 am
Geologically, Don, the structures are there for RBW to hit at the International and elsewhere. As simple as that. It would take just one hole for RBW to explode. A lot of due diligence has gone into this and that’s why we’re so confident with it. Obviously in this business there are never any guarantees, but geologically RBW has some terrific targets in the Kootenays which give it that 10-bagger potential or better on a hit.
Comment by Jon - BMR — June 1, 2012 @ 10:39 am
The sampling, Andrew, just confirms the economic mineralization in the area. In speaking with David, Moose Mountain has an excellent idea how they’re going to approach the drilling at Jewel Ridge and they essentially already have their targets. The feeling is that in some of the historical drilling at Jewel Ridge, they drilled above the primary structure by drilling into east-west structures as opposed to north-south. Very good chance of seeing some nice intersections in the Phase 1 drilling given how Moose Mountain is going to tackle this.
Comment by Jon - BMR — June 1, 2012 @ 10:43 am
If we didn’t care about anyone, Clint, we wouldn’t be doing this site – as simple as that. We stated late last year we were going to identify one company that was on no one else’s radar screen that we felt had the ingredients to be a big success story, and we would follow that company closely. RBW has made a lot of progress this year, especially considering the challenging market environment. If for whatever reason you don’t like the play, fine, just say so.
Comment by Jon - BMR — June 1, 2012 @ 10:50 am
Jon – thank you very much, as always, it’s great to have some additional insight and knowledgeable input – much appreciated. 🙂
Comment by Andrew — June 1, 2012 @ 11:24 am
“RBW is only spewing out historical data” – simply not true, Clint, since they’ve run extensive airborne surveys, geochem surveys, and sampling to back up historical data……limited funds? They’ve shown the ability to raise money – they have people involved with very deep pockets, much deeper than yours or mine……GQC was getting low on dollars when they hit in the DR…..CQX virtually had nothing in the bank when they hit in Utah and the stock in one day went from 8 cents to 50………anything can happen when the drills start turning, and they’re going to be turning very soon for RBW….
Comment by Jon - BMR — June 1, 2012 @ 11:42 am
Question of objectivity – does BMR receive any fee or commission from RBW for promoting the company? Knowing this would help to establish credibility.
Thanks, Al
Comment by Al — June 1, 2012 @ 12:54 pm
I bought some RBW on my profits from GQC (still have some left Bert) and the only reason I did this is because I did my own DD on their properties and I decided they are in an excellent position for a major move forward on a number of fronts. All BMR are doing is presenting interesting situations and they gave a list of over twenty companies to be watched. Look guys if you are loosing your shirt blame yourself first and stop looking for scapegoats. This comes from tough personal experience. This is all about personal responsibility and being adult enough to take responsibility for your own financial decisions. You should have listened to your broker and lumped on Facebook?
Comment by Patrick — June 1, 2012 @ 1:17 pm
Well written Patrick!
Comment by Kalkan - Sweden — June 1, 2012 @ 1:19 pm
None whatsoever, Al – or from any company for that matter. So we maintain our independence. If RBW does something stupid, we’ll say so. We’ve done it before with companies. I do hold a share position in RBW, so keep that in mind, and John holds one too. When this thing takes off in a big way over the summer as we believe it will, we won’t be shy about letting people know it may be a good time to take some money off the table……..
Comment by Jon - BMR — June 1, 2012 @ 1:27 pm
OK Al… now that you have opened up the box …. when I was talking to the IR guy from somewhere… a guys that was talking up RBW… he said something to the effect of …. “bmr is working with these guys’, after I ASKED/COMMENTED that Jon (could have been John) said that ….. he said who?? I said ‘J’ from BMR.. he then said his last name, and then said what he said….
I emailed ‘J’ and asked him that same thing… and gave specifics…. enuff said that BMR is working at ‘arms length’ ….
They are involved with different companies as well as different people.. they have to be to do some of the DD they do, and get involved because of their nature, intelligence, passion, and/or knowledge…
and seemingly… thats it!! nothing more nothing less…. I have the original emails if anyone is interested…
Comment by Jeremy — June 1, 2012 @ 1:34 pm
and secondly …. watching BNN this aft .. gold is still in a bear market … so this is a bear market rally … just repeating.. and they talked about Westcast… hmmmm so this is the ending list of higher value companies at the close
so where was the dialog on the HUI, et al…???? all gold and they talk about a manifold vendor…. a company which I have done work for BTW:) its only because of my software they are making dough!!!:)
Royal Gold, Inc. RGL 77.710 7.710 11.01% 71.570 25,899
PowerShares DB Gold Double Long Exchange Traded Notes DGU 51.930 3.910 8.14% 50.690 2,900
Agnico-Eagle Mines Ltd. AEM 42.260 3.600 9.31% 39.710 2,107,962
Goldcorp Inc. G 40.930 3.230 8.57% 38.810 6,203,064
Barrick Gold Corporation ABX 43.650 3.060 7.54% 41.830 6,398,081
Central GoldTrust GTU.UN 62.500 2.960 4.97% 61.030 1,680
Franco-Nevada Corporation FNV 46.170 2.740 6.31% 43.970 978,394
Allied Nevada Gold Corp. ANV 28.920 2.220 8.31% 27.900 399,515
Wescast Industries Inc. WCS.A 7.640 2.040 36.43% 8.940 79,189
Comment by Jeremy — June 1, 2012 @ 1:36 pm
Jeremy, you’re exactly right…..any company we report on in a significant way we are always in discussions with, and maintain very close contact. Nothing wrong with that but BMR maintains its independence, so we can say anything we want. That’s not the case with many others, for example, like Jay Taylor. A company pays Jay Taylor $5,000 and they’ll get his attention, though Taylor doesn’t hide that. BMR takes no money, no options, nothing. But we have very good access to some of the companies we cover. And I’ll even give a few of these companies some free advice (not all of them listen though).
Comment by Jon - BMR — June 1, 2012 @ 1:42 pm
Most wont listen for their own reasons…. I write for automation magazines… my biz is automation software …. mags need advertising… they take articles and spew crap over paper to forward the ‘needs’ of their advertisers…. the one in CHicago I write for does not take vendor supplied crap… thus we can be ‘independent’ …. ad revenues come in still because they know we are respected… hmmmm
helps when the mag was one of the top 10 mags in the US in any category (hope I have that right!!) close to the top.. and of COURSE its all due to my literary skills… (flunked english in Gr 12/13 and 1st yr uni… had to be passed… maths were in the 80/90’s) go figure eh!!!!
once you get paid by a vendor, your opinion totally changes, and is fundamentally biased… you cant help it!!!
Comment by Jeremy — June 1, 2012 @ 1:56 pm
BMR have already stated sometime ago, that they were not being paid for
supporting companies & i take them at their word. Why would they want
to lie to us & by the way, if they started being compensated for services
rendered , it would not necessarily make them less honest. Honesty is a
quality instilled in one’s mind & lives with most forever. Amen !
Comment by Bert — June 1, 2012 @ 2:26 pm
@jeremy. So someone on bnn said gold bear market is still going on. Hmmmm, I didn’t even realize we were in a bear market for gold. But if bnn said so it must be true right. Lol. You keep letting bnn deliver you your opinions and the rest of us will form our own
Comment by Heath — June 1, 2012 @ 6:28 pm
Heath mate.. I am just the messenger:) that what this guy said…. around 4ih…. maybe later.. then the next guy .. mvivey funds or something said the opposite:) kinda like being in grade 4.. she likes you Jake… no she doesn’t!!!!:)
Comment by Jeremy — June 1, 2012 @ 9:07 pm
For the record Jeremy Gold is in a twelve year bull market against every single paper currency. Gains have been from 500%-1000% depending on which currency you compare it with. A consolidation in a bull market does not mean a bear market. Currency debasement will only increase and the Gold bull market will go on and on. These BNN guys are clueless.
Comment by Patrick — June 2, 2012 @ 6:03 am
and Patrick.. I rest my case … thats kinda what I was trying to suggest… but opinions are theirs not mine … (Heath)!! his words were something like Gold is and has been in a bear market ‘for some time now’ …. he must subscribe to Gartman and Nadler:) LOL… if I believed that I wouldnt be 95% invested, and 80% in gold related companies..:)
it IS really funny isnt it!! … and it was obvious that he thought that others thought a lot of what he had to say… older guy with a gray goatee.. didnt get his name
Comment by Jeremy — June 2, 2012 @ 6:55 am
I would not be surprised to see gold hit $3,000 au in due time. It may be 2014 or 2015, but I think its coming.
Comment by dave — June 2, 2012 @ 7:00 am
dave … we may have to wait according to Jack Chan … its always according to someone eh!!
Gold sector is on major sell signal.
Configs are bearish.
Gold cycle has bottomed and we had a huge rally on Friday, resulting in some new set ups. But risks are 10%+ which is much too high in any market conditions. Short term never did get oversold, and until that happens, I remain patient.
Comment by Jeremy — June 2, 2012 @ 8:43 am
Jon, Thanks for the clarification re your relationship with RBW and any other company you cover on your site. To Bert, while honesty may be a matter of character, self-interest will invariably influence opinions – what is said and what is left out. It is best to maintain neutrality in the role BMR is playing, and where that is not the case, full disclosure is essential, so readers can form their own assessment of analyses offered. Al
Comment by Al — June 2, 2012 @ 12:39 pm
If gold prices continue to roar, most of the junior stocks may recover 20-30% …. this may happen in July… . June will be a month of ups and downs… Watch SFF, CUI and SG! GBB is still a stock with lots of selling pressure …. need some serious big investors….
Comment by Theodore — June 2, 2012 @ 4:11 pm
Al
Nice to see you on the board. Of interest are the following words in your post, quote self
interest will invariably influence opinions unquote. BMR have clearly stated they are not
being paid by the companies they bring forward, but because they have bought RBW shares on
the open market, no doubt, do influence how they write & i say why not ? as long as they are
being honest. Their musings do show faith in & excitement for company, ‘Follow the Rainbow’,
and i feel, most would write the same way, if they thought they had a winner. Time will tell
about RBW.. I am not responding to your post, because i feel you have an issue with RBW, not
so, it would actually be none of my business, but i do like to share thoughts & i do feel i
have judged BMR correctly. R !
PS…. I hate being wrong, so please don’t let me down BMR.
Comment by Bert — June 2, 2012 @ 4:20 pm
@ Theodore. Your gbb rants are getting old and as transparent as the vacuum between your ears. Your either tryi g to buy cheaper gbb shares or your are working in the boiler room being paid your minimum wage to basically sell your soul. Either way you really are a disgusting excuse for a human being
Comment by Heath — June 3, 2012 @ 12:16 pm
I gave up GBB long time ago… my buy lot is at 7 cents…. Waiting for the time … my lot will be filled… You can buy now if you think the current price is good… I have no magic to change the fate of this stock … it is not the same ball game for this one now…
Comment by Theodore — June 3, 2012 @ 1:22 pm