Gold continues to struggle with the $1,350 area…as of 8:15 am Pacific, bullion is down $13 an ounce at $1,337…Silver is off 25 cents at $21.16…Copper is up 3 pennies at $3.22…Crude Oil is off $1.61 a barrel to $103.61 while the U.S. Dollar Index is up one-tenth of a point to 80.17…
Gold has retreated this morning from 4-month highs on a perceived easing of tensions in Ukraine…Russian troops taking part in military exercises close to the border with the Ukraine have apparently been called back to their bases, and there are reports that cabinet ministers from Ukraine and Russia are talking…speaking at a news conference outside his residence in Moscow this morning, Russian President Vladimir Putin said there was “no need yet” for Russia to exercise its authority, adding that he was not considering the annexation of Crimea and any force used would be a last resort…Russia, however, reserved the right to use all options in Ukraine to protect its compatriots there who were living in “terror”, he added…Putin’s comments lifted Russian markets after a panic sell-off yesterday, which may have caused him to reassess strategy (markets may constrain his actions more effectively than any Western government can)…while he said sanctions being considered against Russia would be counter-productive, a senior U.S. official said Washington was ready to impose them in days rather than weeks…
“We are not going to meddle,” Putin stated. “But we think all Ukraine’s citizens, no matter where they live, should have the same rights to … determine the future of their country.”
Not to downplay the situation in the Ukraine, because Putin simply can’t be trusted and the events of recent days will certainly have implications for relations between Russia and the West, but it’s important to point out that Ukraine’s GDP is less than one-tenth of that of Greece and is not part of any global supply chain…that’s what the markets are focusing on right now at least…
Today’s Markets
Asia
China’s Shanghai Composite was stable overnight, falling 4 points to close at 2071…China’s National People’s Congress – with nearly 3,000 members it’s the largest parliamentary body in the world – begins its annual spring session today to review past policies and present future plans for the country…however, it is still reckoned as a rubber-stamp for decisions already made by the state’s executive organs and the Community Party of China…
Japan’s Nikkei average was up modestly overnight…
Europe
European markets have rebounded strongly on a less hawkish tone out of Russia…Eurostat, the European Union’s statistics office, estimated today that consumer prices in the 18 countries sharing the euro rose 0.8% year-on-year this month, a sign of stability that cooled expectations that the ECB might ease monetary policy as early as next week…ECB President Mario Draghi said the direct impact of the Ukraine crisis on the continent’s economy would be relatively limited…still, he added, “the geopolitical dimensions” of the crisis could have effects that “go beyond the actual links.”
North America
The Dow has surged 203 points as of 7:30 am Pacific…the TSX has gained 77 points while the Venture is up 3 points at 1021…
CRB Index Updated Chart
Significantly, the CRB Index has broken out above a downsloping wedge and also out of a bearish RSI(14) range (between 20% and 60%) that it was trapped in since April, 2011, based on this 4-year weekly chart…this is clearly bullish in terms of the “big picture” outlook for the Venture in 2014…the CRB Index closed at 306 yesterday…a minor near-term pullback after such a strong move since late December is certainly possible, but next major resistance is 320…
Alberta Ranks Third Overall, Quebec Given The Boot Out Of The Top 20 Mining Jurisdictions
Alberta remains the most attractive jurisdiction for mining investment in Canada, according to the yearly global survey of mining executives released by the Fraser Institute…for the second consecutive year, Alberta ranked first in Canada and third worldwide in the survey, which is based on input from 690 mineral exploration and development company executives…this year’s survey spotlighted 112 jurisdictions worldwide…
“Miners praise Alberta for its transparent and productive approach to mining policy. The province offers competitive taxation regimes, sound legal systems, and relatively low uncertainty around land claims. That’s what miners look for,” said Kenneth Green, Fraser Institute senior director of energy and natural resources and director of the Survey of Mining Companies 2013…
Three Canadian jurisdictions – Alberta (3), New Brunswick (7), and Newfoundland and Labrador (9) – ranked in the top ten worldwide, followed by Saskatchewan (12), Yukon (19), Quebec (21), Manitoba (26), Ontario (28), Nova Scotia (29), British Columbia (32), Nunavut (44), and the Northwest Territories (47)…from 2007 to 2009, Quebec topped the survey, then dropped to fifth position in 2011, 11th position in 2012 and finally 21st worldwide in 2013, owing in part to amendments to Quebec’s Mining Act and recent tax policy changes…
“If Quebec wants to renew confidence in the global mining sector, it should reduce red tape, minimise the risk associated with policy changes and tax increases, and respect negotiated contracts,” Green said.
This year’s survey recorded improved perceptions of British Columbia’s political stability and availability of labour and skills…the top 10 most attractive jurisdictions for investment worldwide include (from the top) Sweden, Finland, Alberta, Ireland, Wyoming, Western Australia, New Brunswick, Nevada, Newfoundland & Labrador, and Norway…
NexGen Energy Ltd. (NXE, TSX-V) Update
NexGen Energy (NXE, TSX-V) has shown strong support in the 40’s, coinciding with Fib. levels between 39 and 49 cents, as the company continues to drill at its Rook 1 discovery in the southwestern Athabasca basin…John has an updated chart below…
Several significant zones of high radioactivity were encountered in the first hole at NXE’s Arrow prospect…one hole is currently being drilled from the same collar as discovery hole RK-14-21, but at a shallower angle…if they can nail the breccia zone where it intersects with the unconformity, this hole could have superb potential…meanwhile, another hole is being drilled about 30 m along strike to the northeast…NXE is off 2 pennies at 50 cents as of 8:15 am Pacific…
Azincourt Uranium Inc. (AAZ, TSX-V)
Azincourt Uranium (AAZ, TSX-V) continues to pick up steam and has gained another 3 cents to 32 cents on strong volume as of 8:15 am Pacific…we’ll have an updated chart tomorrow on AAZ…
GoldQuest Mining Corp. (GQC, TSX-V) Update
GoldQuest Mining (GQC, TSX-V) continues to look very strong from a technical standpoint as the company gears up for more drilling in the DR to test promising areas in the district around the multi-million ounce AuEq Romero discovery…last month, the company commenced an important heli-borne ZTEM geophysical survey covering its entire 100%-owned Tireo concessions which will allow GQC to quickly evaluate the complete area to depths beyond 1 km in order to identify potential new hydrothermal systems…the 60-km strike length of the Tireo concessions has been unexamined to date…great potential for new drilling discoveries by GoldQuest this year in our view…
Below is a 2.5-year weekly GQC chart…the stock has excellent support in the low 30’s in the immediate vicinity of the 50 and 200-day SMA’s…a strong resistance band exists between 40 and 48.5 cents…GQC is unchanged at 36 cents as of 8:15 am Pacific…
Wellgreen Platinum Ltd. (WG, TSX-V)
Interesting results this morning from Wellgreen Platinum (WG, TSX-V), though the stock is down slightly on the news…Wellgreen will be releasing an updated Preliminary Economic Assessment on its Wellgreen deposit in southwest Yukon during the second quarter which will evaluate a combination of open-pit mining and selective bulk underground mining of higher-grade material at a reduced capital spending level…
As the company reported this morning, new drilling data and assay results from historic drill core that was previously only selectively sampled have led to a new interpretation of the Central zone at Wellgreen that indicates that wide bands of higher-grade mineralization, like those seen in the previously released Far East zone, occur well away from the sediment-contact-related zones that were the historic focus at Wellgreen…we’re bullish on Platinum and this will be an interesting story to follow in 2014…Wellgreen is one of the largest undeveloped PGM deposits in the world – one of the very few with open-pit potential – and if they can make the economics of this viable, WG could perform exceedingly well…this morning’s news is certainly encouraging…
For the past six weeks, WG has been trading between 75 cents and $1 after breaking out of a 10-month horizontal channel…the rising 50-day SMA is in the upper 70’s and has been providing excellent support since the beginning of the year…below is a 2.5-year weekly chart from John…note that the RSI(14) is moving up from a bullish “W”…WG is down 6 cents at 88 cents as of 8:15 am Pacific…as always, perform your own due diligence…
Precious metals coming back.. A bit.. from todays open!!
Comment by Greg J. — March 4, 2014 @ 11:52 am
Someone def slowly getting out of ggi. Jon where is support at?
Comment by John s. — March 4, 2014 @ 11:55 am
Also..Aix , more active today !!
Comment by Greg J. — March 4, 2014 @ 11:55 am
I’m not sure what your agenda is John s., but the pattern and content of your comments is very strange, not to mention of course your personal remarks aimed at another poster. I’m surprised Terry has had so much patience with this. Anyway, with regard to your statement and your question, the very fact you would even have to ask that question invalidates your statement. The answer is simple – look at the chart yourself and see where the 50-day rising moving average is. That’s why I bought 14,000 more GGI myself today. Where there is a seller, there is a buyer. So it’s just as true that some investors (more than just me) are gradually adding to their positions on weakness which is how you make money in this business. GGI also hit RSI(14) support today and RSI(2) is very oversold. Get the message? In case you need to see a picture of this, we’ll provide it in the morning with a chart.
History repeats itself. We went thru the same thing in January when GGI pulled back to its 50-day SMA, and the nervous neillies were quivering. Those who bought then doubled their money in just 2-3 weeks. If someone wants to get out because they’re impatient and want to chase another stock, like perhaps Wolverton and Scotia who dumped yesterday, that’s good – provides highly favorable accumulation opportunities. What GGI does on a day-to-day basis doesn’t concern me a whole lot because I’m looking at a much bigger picture of a very bullish overall trend and how this is going to play out in the context of the Sheslay Valley moving forward. A few pennies don’t excite me. Multiples on this stock is what I’m in for, and the same with DBV, PGX, ABR, AIX and some others.
Comment by Jon - BMR — March 4, 2014 @ 7:16 pm
NXE announces bought $10M financing! Lots of money returning to the markets! Uranium in this particular case. I heard PDAC was very busy with lots of people.
Comment by STEVEN1 — March 4, 2014 @ 7:45 pm
Steven, I spoke with a broker friend in Saskatchewan the other day who’s a former geologist and a big player in the market (serves high net worth investors) and who liked NXE from the very start. I should have listened to him earlier. He’s more bullish than ever on it now, and believes they are on to something big. Dundee wouldn’t jump in like that unless they had a pretty good idea of what’s shaping up (by the way, that broker/geologist also holds GGI and loves what he sees developing in the Sheslay Valley). You’re right, lots of money returning to the markets – for the right deals.
Comment by Jon - BMR — March 4, 2014 @ 7:49 pm
Hi Jon
what do you think of the mananagement of ABR, I really like their land position next to DBV, do they have the skills to take advantage of what is in front of them? It seems to me that they and GGI and AIX can really benefit by what Propser and DBV have already discovered?
Thanks
Comment by Greg — March 4, 2014 @ 8:25 pm
Greg, the answer is yes. I actually met today in Vancouver with one of ABR’s geologists. He is very much on top of the Sheslay situation, so they are in excellent hands with him (and others). And they are fired up for an assault on the Hackett, as well as AIX’s North Cap and South Fork projects. I’m now expecting big things out of both those companies, and we’ll explain in more detail why in the next few days. ABR also has an excellent team including “High Grade Harris” on their very interesting Yukon PGM projects right next to the Wellgreen deposit. This will come into play as well in a big way I’m sure for ABR. Mike England got Geo Minerals taken out for $23 million at Blackwater – at 5.5 and 3 cents, ABR and AIX are superb accumulation opportunities right now. By the time the masses wake up and step in, these could be much, much higher. We said that about GGI at a nickel, don ‘t miss the boat on these.
Comment by Jon - BMR — March 4, 2014 @ 8:42 pm
Jon. I have no motives or agendas other than to make money and protect my investments. I have only been in the market for a few years now so although I feel I have learned much in the past couple years, I have lots to figure out yet! When I first started the venture was rolling and everything I bought basically went up, some multiples. This most would per curve to be great, however it was my downfall as It at the time led me to believe things were just to easy. Hence why I got greedy and did not sell when I should have. I ended up holding into many as the market turned and was left holding the bag, and still am on many that just simply are not worth selling now. So I wait hoping someday they will at least bounce back to where I can recoup some of my money. Although I don’t have much left to play with I can’t help but think that with everything beaten up so badly that now is the time to get in and try to finally make a coin. I do not read charts at all. From what I have saw to date most venture plays move on news and discoveries not charts. I have watched level two and see the manipulation that goes on daily with most stocks. This could scare one away although my way of thinking is one must just learn to work with the manipulation. The other things that I feel are greatly important that I have picked up on are timing of pps. Share structure, importance of management, timing, etc etc. Most management are just in it to pump and dump and milk it to the end to collect their salaries with no real intention of ever creating or discovering anything of value for shareholders. I could go on and on but I’d hate to bore everyone. This being said my only point with Ggi is that I was wanting badly to buy around ten but didbt have the funds at the time; so I finally bought in the twenties hoping assays would be decent and carry Ggi momentum to a point I woukd comfortably be in the green. So now that I am watching it slide back down I’m once again kicking myself. So forgive me if I seem negative at times. Iv list much and am just to the point where I am quite sensitive to the market at times. I am not a nervous nelly and don’t mind holding long at times and usually try not to watch day to day as a rule, but under the circumstances find myself doing just this very thing now at times. And Jon I feel that your tone and attitude tonight towards myself was somewhat malicious in nature and uncalled for. You were on here boasting great things all then when I asked you a couple of questions over the last few days, simply ignore me! That is all for tonight. Cheers
Comment by John s. — March 4, 2014 @ 11:08 pm
Thanks Jon, Look forward to your upcoming report in the coming days..
Comment by Greg — March 5, 2014 @ 5:31 am
GOLD IS READY IN 10-20 DAYS…. wallstreetwindow.com/gold/darvasboxtarget.htm
Comment by STEVEN1 — March 5, 2014 @ 6:15 am
wallstreetwindow.com/gold/darvasboxtarget.htm
Comment by STEVEN1 — March 5, 2014 @ 6:15 am
Pure Energy Minerals Ltd (C-PE) – News Release
Pure Energy enters MOU with POSCO for Nevada claims
2014-03-05 09:10 ET – News Release
Shares issued 68,996,503
PE Close 2014-03-04 C$ 0.02
Mr. Robert Mintak reports
PURE ENERGY MINERALS ANNOUNCES MOU WITH POSCO ON NEVADA LITHIUM PROJECT
Comment by STEVEN1 — March 5, 2014 @ 6:38 am
john s. good for you ,iv’e followed ggi for a long time now,lucky i’m in at an avg of 09. jon, im like john s. dont read charts,your day averages and your other techical stuff,know little about it ,now , whether you like it or not some people go on your hipe of a company or an area like the shelsy,sometimes to me anyway,you make it sound like buy now or your to late,we’re not pro’s like you,you sit behind the wheel of my rig and i try to explain to you that power is an ixs 475 hp with 370 rear ends and an 18 speed eaton, you won’t care, all you want to do is drive,so you need to cut us ordinary people sum slack.if this doesnt air dont care.
Comment by tom — March 5, 2014 @ 8:03 am
shoot,should have also said have a nice day and keep up the great work.
Comment by tom — March 5, 2014 @ 8:36 am