Rouyn, Noranda, Quebec, 11:30 am Eastern
Gold got as high as $1,388 this morning but has since backed off somewhat…as of 11:30 am Eastern, the yellow metal is up $3 an ounce at $1,379…Silver is 49 cents higher at $29.58 while the U.S. Dollar Index is ahead slightly at 80.84…the CDNX continues to show technical strength after last week’s pullback…the Index is currently up 24 points at 2256…based on how the CDNX is performing so far in January, given some weakness in Gold, the possibility of Gold dropping below key technical support at $1,350 appears very remote…the uptrend in the CDNX, an extremely reliable leading indicator for the precious metals market, is clearly intact…we are continuing our research on the Cadillac Trend in a significant radius around Rouyn-Noranda with several important meetings today and tomorrow…we’re then returning to the area in the very near future…BMR has added Abcourt Mines (ABI, TSX-V) to its model portfolio…fundamentally and technically, Abcourt looks very promising and could become a producer again by sometime next year…its Elder-Tagami Gold Project just north of Rouyn-Noranda is generating good results with excellent potential to substantially increase 43-101 resources…north of Val d’Or, ABI’s Abcourt-Barvue Silver-Zinc Property contains almost 20 million ounces of silver and nearly 300,000 tonnes of zinc (43-101, all categories, reserves and resources)…a feasibility study by GENIVAR shows robust economics for a mostly open-pit situation at $15 silver, 88 cents zinc and a production rate of 1,800 tonnes per day…the company is currently drilling this property with the goal of upgrading reserves and resources and justifying an increase in the size of the proposed mill from 650,000 tonnes to one million tonnes per year…this would reduce the unit mining costs by treating a larger volume of ore annually, further enhancing the economics of the project…Abcourt appears to be getting much more aggressive in telling its story as it aims to get back into production…Abcourt is currently 1.5 cents higher at 23 cents…Alexis Minerals (AMC, TSX), a large landholder along the Cadillac Trend and hoping to turn its fortunes around, has appointed Francois Perron this morning as its new President and CEO… Perron is also a director with Yorbeau Resources (YRB.A, TSX) which is showing signs of waking up and coming out of its doldrums…bottomfishers may wish to do some fresh due diligence on Yorbeau which is trading around 20 cents…Gold Bullion Development (GBB, TSX-V) is quiet and unchanged at 81 cents…we have more to report on GBB later this week but all is looking good…same with Cadillac Mining (CQX, TSX-V) which has pulled back into an attractive area at 36 cents…Kent Exploration (KEX, TSX-V), which used to be in the BMR model portfolio, is once again looking interesting both technically and fundamentally…the stock is up half a penny this morning at 13.5 cents…Kent has struggled since May last year but is clearly on the rebound…the company has fixed itself up financially and the Archean Star Resources spin-off is very close at hand…the financing on Archean Star has been completed and a listing on the Venture Exchange is imminent…Kent shareholders will receive a “dividend” in the form of one Archean Star share for every four shares held in Kent…drilling is ongoing at Kent’s (Archean’s) Gnaweeda Gold Property in Western Australia with initial assay results from this Phase 2 program expected very soon…last but certainly not least, Currie Rose Resources (CUI, TSX-V) is stabilizing in the low 20’s after drill results were announced yesterday from its Sisu River Gold Property in northwest Tanzania…in our view the market over-reacted to the downside yesterday, pushing CUI 31% lower for the day at 23.5 cents…there were several bits of very encouraging information in the news issued by Currie Rose yesterday which is why we tracked down President and CEO Harold Smith this morning for an interview…that very interesting discussion will be posted shortly on our site…Currie Rose is currently off 1.5 cents to 22 cents, its 100-day rising moving average…
