BullMarketRun   BullMarketRun.ca

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets
 

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

September 5, 2011

Goldex Resources: Breakout Time?

We’ve been following Goldex Resources (GDX, TSX-V) with some interest since mid-July when the stock was trading around 7.5 cents.  The company is working on what seems like a promising Gold property (El Pato) with historical resources in Guatemala, and it also has an interesting drill-ready Gold-Silver project in Mexico (El Arco).  On Friday, GDX was the runaway volume leader on the Venture Exchange with more than 6 million shares changing hands.  It closed up a penny-and-a-half at 10 cents, giving GDX a market cap of $9.75 million.  Since June there has been a lot of volume on this stock which has helped to soak up some of the 50 million shares purchased at a nickel in January’s private placement.

On August 17 Goldex reported an impressive drill result from hole #10 at El Pato – 30.48 metres (from 97.53 to 128.01 metres) grading 5.04 g/t Au with mineralization consistent throughout the length of the hole.  It included a 9.15-metre section grading 12.38 g/t Au.  Holes 8, 9, 12 and 14 also intersected mineralization though to a much lesser degree.  Two exploratory holes (#2 and #17) did not return significant results.  Nonetheless, broadly speaking, Goldex is off to a promising start at El Pato but upcoming results have to be good to propel this stock significantly higher.

Assay results are pending on 5 holes which is giving the market something to speculate about at the moment.   Additional bulk sampling is also taking place at El Pato in an attempt to further demonstrate the nature of available mineralization which includes high-grade surface zones as well as epithermal “pinching and swelling” of deeper veins.  The Cerrito West zone at El Pato has consistently showed high levels of near-surface mineralization with an average bulk sample grade of 28.64 g/t Au as reported by the company May 18th.

The 12-hole drill program was designed to prove up average grades as indicated by the UN and Guatemalan government drill programs in the late 1980′s and 90′s as well as to map and explore the extent of the veins and structures present.  The company reported that hole #10 contained the typically expected mineralization present at El Pato while other holes have allowed for more precise mapping of the vein structures.

From a technical standpoint, Goldex looks promising (this is still a highly speculative stock) but buying pressure must increase and trading volumes need to remain high.  John updates the chart below. Note how the 50-day moving average (SMA) reversed to the upside last month, a positive sign.

Note: Both John and Jon continue to hold positions in Goldex Resources.

6 Comments

  1. During August Jon has stated several times that we expect Sept. to be an interesting month for the stocks in our portfolio and of course for our readers. This is the time to make sure you have a Trading Plan. This should be a Trading Plan developed by you as copying one from another trader does not necessarily work. No two traders think alike. This is proven by reading BMR comments!!!!
    Remember….”It is not which stocks you buy it is how you trade them that counts”.

    Good trading in Setember.

    Comment by John - BMR — September 5, 2011 @ 12:49 pm

  2. Gold is hitting $1900 an oz and this may be a bad sign for the stock market… Euro currency is facing another challenge if the financial arrangement in Europe cannot compromise… this will lead to another adjustment in main stock market…. For junior gold stocks, you probably see little changes but the recent active ones, BER, VGD and TYP I am expecting some adjustments and my buy low concept kicks in … to scoop some at lower price… BER … 18.5 cents, VGD 34 cents and TYP … 85 cents. GBB will be quiet but if it goes back to 35 – 36 cents, it will be a good entry point for me… GDX may go back to 9 – 9.5 cents range… 8.5 cents will be my entry point…. NAR … my buying point remains 15 cents

    Comment by Theodore — September 5, 2011 @ 2:45 pm

  3. I would suggest we can’t win for losing. Why should one root for higher gold, if our
    stocks don’t follow ? Also, a higher gold price usually indicates something is drastically
    wrong, somewhere in the world & if that is the case, the exchanges take a hit. I realize it’s
    a long period between now & the market opening tomorrow, but right now, the Dow futures
    are down 280 pts. I hope it slows down, otherwise ??????????. R !

    Comment by Bert — September 5, 2011 @ 3:16 pm

  4. After releasing my previous comment # 3, i said to myself, self, i didn’t portray
    a very positive feeling to my cyber friends, although i am fairly positive. The
    summer doldrums are over, school starts tomorrow & the money pockets are back to
    work & they won’t survive, unless they trap some of the cash out there in the market,
    so they will be buying. Why then do i feel negative ? maybe i am spending too much
    time at my computer, too much time looking at TV. Anyway, this is the time of year
    my friends, if other years are an indication. The Yukon closes down around the middle
    of October & news from there, should be flowing soon & until December, January & even
    February, according to how busy the labs, are. They say companies can’t with-hold
    news, but you can bet your last dollar that they do, they will find a way to skirt
    the system, as they wait for prime time to highlight their results. Then there’s the
    other mining companies, in other parts of the world, i bet they will also wake up
    from hibernation & all of a sudden, we forget the past, as we concentrate on the
    task at hand, that is, to fatten our bank accounts. R !

    Comment by Bert — September 5, 2011 @ 4:55 pm

  5. Bert,

    I enjoy your comments. I don’t take them as negative or see you as negative, just a realistic assessment of what’s about to happen, or maybe not happen. The markets will likely turn south for a few days and then bounce back, as stocks are cheap and corporate America has cash. Tomorrow at about 9:45AM is a time to buy, but I have no cash, I’m all in right now with RIC, AR, KAM and the venture miners. I have some corporate stuff I wish I had sold, as it will dip tomorrow like FTT.

    Comment by Scotty C — September 5, 2011 @ 7:03 pm

  6. Thanks Scotty

    Although the Dow futures are still well down this morning, the European indices are all
    up & i feel the Dow will bounce back later today, as they start feeding on the possibility
    that President Obama will save them with his jobs’ plan. I have chosen to gamble with my
    speculative stocks, more leverage says me. I strongly believe in SQI, HRC, VGD, DVV & a
    few others, but i need a good market for them to thrive. As far as i am concerned, the
    market is not usually shareholder friendly anyway, you buy & the price moves down, you
    sell & the price goes up, but we struggle along, always thinking about the next big hit.
    I had one big hit & now i can say, i am addicted to gambling, Lord forgive me & maybe he
    will, if i put my winnings to good use. As i mentioned sometime ago, that money is not the
    root of all evil, it’s the misuse of money which causes the evil. I would like to pass
    on my positive feeling about the above stocks of mine: SQI, besides their excellent land
    holdings in the Yukon & Ontario, i firmly believe their 25% jv with NGD on the Davidson
    property in Ontario, will eventually fatten my bank account. HRC, they already have close
    to a million ozs. of gold firmed up & have put forward their 43-101. DVV, only 16 m. shares
    outstanding & they have 2 excellent properties, especially silver in the Yukon. Please note
    at the bottom of their website the name ”Progressive”, & further delving will tell you
    that the CEO & 2 directors of DVV are from progressive & no doubt they have the base to
    quickly spread the word. VGD, what more would i need to tingle my inners besides Jon’s
    instinct. As for DVV, i brought it to your attention at 0.18, Friday it closed at 0.225.
    That’s a winner already at 25 % profit, compared to the banks 1.5 %, but i feel strongly ,
    there’s more to come. Have a good day. R !

    Comment by Bert — September 6, 2011 @ 3:59 am

Sorry, the comment form is closed at this time.

  • All Posts: