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Iskut, British Columbia – 7:30 am Pacific

Gold is relatively quiet ahead of the start of the Federal Reserve meeting tomorrow…as of 7:30 am Pacific, the yellow metal is down $9 an ounce at $1,383…Silver is off 23 cents at $21.85…Copper is flat at $3.20…Crude Oil has edged up another 16 cents to $98.01 while the U.S. Dollar Index is up one-tenth of a point to 80.72…

The Reserve Bank of India left interest rates steady today, warning of upside risks to inflation due to the weaker rupee and stressing the need to reduce the country’s bloated current account gap to a sustainable level…India’s trade deficit widened to a 7-month high in May as Gold imports surged, provisional data showed today, but economists expect newly announced measures to dampen demand for the precious metal in coming months and narrow the shortfall…a nearly 90% annual jump in Gold and Silver imports saw the trade deficit rise to $20.14 billion last month from $17.8 billion in April…the rise in Gold import growth was slower than an annual 138% surge in April…robust retail demand for Gold, very much engrained in the Indian culture, has become a major headache for the country’s policymakers who have announced a slew of measures to try to narrow the current account deficit, which hit an all-time high of 6.7% of gross domestic product (GDP) in the December quarter…India, the world’s biggest buyer of the metal, hiked the import duty on Gold to 8% earlier in the month from 6%…the central bank has also sought to curb Gold imports by banks and non-banks…”We expect Gold demand and, hence, imports to be significantly lower in June, and possibly remain low in coming months,” Barclays Capital said in a note after today’s data…”The widening in May might mark a near-term high for the trade deficit, and we think it could narrow significantly in June”…at a news conference on Thursday, Indian Finance Minister Palaniappan Chidambaram said that it was “wrong” to assume that Gold is the “safest” investment…more foolish government talk…of course one of the affects of the Indian government’s actions will be to greatly exacerbate the black market value for physical cash Gold…

Today’s Markets

Asian markets were mostly higher overnight with Japan’s volatile Nikkei average posting a 2.7% gain to close at 13033…China’s Shanghai Composite shed 6 points to finish at 2156…European markets are strong in late trading overseas…in North America, the Dow has soared 171 points through the first hour of trading while the TSX has added 91 points…the Venture is 1 point higher at 935…interestingly, while the Venture was down 2.7% this month through Friday, buy pressure has been increasing while RSI(14) is showing up momentum…key resistance the Venture must overcome to kick into rally mode is 970…

Drilling Ramps Up At Colorado’s North ROK Property

After weeks of carrying out geophysical surveys and other work, Colorado Resources (CXO, TSX-V) is confident it’s focusing on the right targets as a 5,000-metre drill program attempts to build on the hope created by the first 4 holes at the company’s 100% owned North ROK Property adjacent to the village of Iskut where our visit continues…this round of drilling will focus on a continuous and strong magnetic high core that is 300 to 400 metres wide and 1200 metres long, trending southeast from holes #1 and #4…where Colorado has intersected the magnetic high feature in 3 drill holes, the average grade over 694 metres of cumulative length is 0.40% Cu and 0.60 g/t Au…CXO will step out slowly and gradually, a smart strategy, with the goal of staying in strong mineralization (not always easy when attempting to define a porphyry deposit) to keep the market happy in these early stages…when a geologist tries to be a hero by attempting a bold step-out too soon, that’s often a recipe for disaster…ultimately, North ROK is going to require hundreds of drill holes…some will be dusters (like hole #2), others could be home runs…Imperial Metals (III, TSX) missed on 25% of the holes it drilled at Red Chris in 2011 and 2012, but they still have a world class Copper-Gold porphyry deposit with very robust economics that goes into production next year…at Kennecott’s giant Bingham County open-pit Copper Mine in Utah (porphyry), there are barren areas bigger than the size of football fields…that’s just the nature of porphyry deposits…Colorado’s job right now is to smartly start to nail down the geometry, size and grade of what appears at this point to be a potentially large Copper-Gold deposit, and we believe they have the expertise to do just that…a B.C. government geologist we spoke to Friday, who will be coming up to the area next week, believes North ROK is the “real thing” and that the Iskut area could actually host a cluster of these type of deposits…

Colorado closed at 80 cents Friday…as of 7:30 am Pacific, CXO is down a penny at 79 cents on volume of about 200,000 shares…it has very strong technical support in the mid-60’s, as John charts have shown, and from a fundamental standpoint there’s no reason at this point why that support should collapse…at 80 cents, the market cap is still a very modest $32 million – down from a high of nearly $70 million when temporarily overbought conditions set in (typical in the early stages of a discovery)…there has been a healthy unwinding of those overbought conditions over the last couple of weeks…the 50-day moving average (SMA) is currently just under 90 cents and that’s where CXO has encountered resistance since June 7…

Discovery At Telegraph Creek?

About 100 km west of Iskut, several companies are active in an area northwest of Telegraph Creek where Prosper Gold’s (PGX.H, TSX-V) Pete Bernier believes there is “huge potential” for a major discovery…Bernier should know…he and his team, which includes highly respected geologist Dirk Tempelman-Kluit (the two were recipients of the 2011 AME B.C. Award for Excellence in Prospecting and Mineral Exploration), recently optioned the Copper Creek Property from Firesteel Resources (FTR, TSX-V) which will serve as Prosper Gold’s qualifying transaction…the hope is that the QT will be approved by the Exchange by the end of July and drilling can commence in August…tied on to the eastern border of Copper Creek is Doubleview Capital’s (DBV, TSX-V) Hat Property where the 6th hole of a drill program has intersected “sulphide mineralization comprising pyrite and chalcopyrite…from near-surface to current depth of 230 metres” as reported by DBV following Thursday’s market close…the stock powered higher Friday, closing up 37% at 13 cents, and was the Venture’s second most active stock…

The Hat Property has been explored since the 1960’s and has an extensive historic data base of rock chip samples as high as 8.9 g/t Au and 4.8% Cu…its potential at depth, however, has not been tested until now by Doubleview…an extensive MMI soil survey in 2011 outlined a large geochemical anomaly, so there’s no question there are some interesting targets at the Hat and the potential to uncover a deposit…the 6th hole was collared nearly 1 km south of the first 5 holes which intersected altered andesitic volcanic rocks and dioritic intrusive rocks with short intercepts of weak to strong pyrite and chalcopyrite mineralization, but did not fully account for the anomalies (assays pending)…one always has to be cautious about visuals, but the 6th hole may have hit a mineralized system or at least the edge of one…if speculators are in the mood, they could take DBV for a ride this week – so this one will be interesting to watch…we can assure our readers, the news certainly did not go unnoticed by those at Prosper Gold…at the very least, the Hat seems worthy of follow-up drilling and that should keep DBV on investors’ screens throughout the summer…

The DBV chart is looking strong…it cleared resistance at 12 cents Friday which appears will be confirmed today…below is a 2-month daily chart from John…the trend has turned bullish and RSI(14) is showing strong up momentum…as of 7:30 am Pacific, DBV is up 3 pennies at 16 cents on strong volume…its all-time high, reached May 24, is 17 cents…(by the way, a “sleeper” pick that few investors seem to have picked up on so far in the Telegraph Creek area is Garibaldi Resources – GGI, TSX-V – which holds a massive “L” shaped land position contiguous to Copper Creek and the Hat Property)…

Victory Ventures (VVN, TSX-V) Update

If Doubleview can hit, so too can Victory Ventures (VVN, TSX-V) which started its drill program at the Copau Property June 2…Copau is strategically situated between North ROK and the Red Chris Mine, and uniquely lies at the intersection of 2 major regional faults which is a critical fact in understanding the potential of this property…if those faults control mineralization at Copau, then Victory could have a very interesting situation on its hands…the first phase of drilling is testing strong IP and magnetic anomalies, tools that have proven successful for Colorado and perhaps for Doubleview as well…there are other reasons to like Victory…the share structure is tight (26.6 million O/S after the two May financings), the company is cashed up with nearly $1 million in its treasury, they were successful in maintaining one of the lowest burn rates in the industry following their 15-cent IPO in July, 2011, and they were early in the game at Iskut – the first company other than Colorado to be drilling after the announcement of the North ROK discovery…VVN has a management team with proven business success and they’re also determined to expand their footprint in the “Golden Triangle” and use a strong summer to add a winter project to their portfolio…

Technically, VVN is in a strong upsloping channel…support has been tested and the outlook for the near-term is certainly bullish…

Zenyatta Ventures (ZEN, TSX-V) Chart Update

Many of our readers are following Zenyatta Ventures (ZEN, TSX-V), which has clearly been one of the best-performing Venture stocks over the past year as the company continues to have success in advancing its Albany hydrothermal or vein-type graphite deposit in northeastern Ontario…John has been producing regular charts, and below is the latest update…note the projected Fibonacci level..ZEN is off 7 cents at $2.29 through the first hour of trading today…

Macro Enterprises (MCR, TSX-V)

Last month, we introduced a Venture company trading just over $3 a share with powerful earnings momentum (indeed a rarity for a Venture play)…Macro Enterprises is a construction and maintenance provider for the energy and resource industries, and the stock has climbed over 500% since last November…Friday, MCR hit a new all-time high as it jumped 45 cents to close at $3.83 on Venture volume of 1.2 million shares…this one could be volatile but the fundamentals and technicals suggest MCR still has plenty of room to run…as always, perform your own due diligence…below is a 1-year weekly chart update from John…

Updated Silver Charts

Every Monday, as usual, John provides us with a fresh look at Silver which continues to try to form a base around $22 (very positive)…

3-Year Weekly Silver Chart

Long-Term Silver Chart

Note: John and Jon both hold share positions in VVN.  Jon also holds share positions in CXO, DBV and GGI.