Gold hit a new record high again this morning of $1,297.40…as of 8 am Pacific, though, the yellow metal has backed off to $1,290, a $3 gain for the day…Gold staged an impressive intraday reversal yesterday after comments by the Fed that it “is prepared to provide additional accomodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate“…that’s all the Gold bugs needed to hear…more quantitative easing by the Fed is going to put additional downward pressure on the U.S. Dollar which is suffering this morning, breaking below 80 on the Index…the outlook for the U.S. Dollar is not good which bodes well for Gold…the CDNX hit a new 52-week high with a strong start this morning…the Index got as high as 1702 and is currently at 1693, up 12 points…the CDNX showed signs of exhaustion yesterday and we’ll see if today’s early advance can hold…at some point, we’re not sure when, there will be a healthy pullback of 5% or so in the CDNX but that’s all it will be, a healthy pullback to at least partially unwind overbought conditions…BMR is convinced we’re in the midst of a move in the CDNX of historic proportions…Gold Bullion Development (GBB, TSX-V) hit 60 cents this morning on follow-through from yesterday’s advance out of oversold conditions…GBB is currently up a penny to 58 cents…Sidon International Resources (SD, TSX-V) has received quick CDNX approval on its $1.3 million financing at 10 cents…with that out of the way, and a stronger treasury, we now expect Sidon to start to make things happen with its Morogoro East Property in Tanzania…at 8 am Pacific, Sidon is down half a penny at 14 cents…another company we like a lot with projects in Tanzania (and Sudbury) is Currie Rose Resources (CUI, TSX-V) which is up 1.5 cents to 12 cents…Currie Rose has a terrific looking chart and unlike many other companies right now it’s not overbought technically – in fact, it’s just coming out of a nice consolidation…we believe they’ll be starting a drill program shortly in Tanzania…Excel Gold Mining Inc. (EGM, TSX-V) is up half a penny to 16.5 cents…Excel announced yesterday, not surprisingly, that Frank Basa of Gold Bullion has joined its board of directors…we were first alerted to Excel last June when it was announced that Basa’s private company was awarded stock options in Excel…as BMR readers know, we visited Excel’s Montauban Mining Camp project earlier this month…we’re still continuing our due diligence with Excel but we’re very comfortable with its potential…we believe Basa is making Excel see the bigger picture with Montauban which is immense – Montauban is a former producer (gold, silver and base metals) and Excel has assembled a huge land package around it…the geologist we spoke to earlier this month at the property is tremendously excited about the regional prospects for Montauban…mineralization is near-surface at the former mine and there’s also untested depth potential below 200 metres…Montauban has historical reserves, which Excel is trying to quantify, and there’s a good chance there are extensions to the mineralized structures…
September 22, 2010
3 Comments
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I would hear your comments on the continous delay to receive assays results.
First it’s supposed to be end of June, after end of July with note results will be receive any time soon, after end of August with note results soon and now we are near end of September and we are still waiting results.
I know we received results for 18 holes but it’s really a lot below investors expectations. We have more than 90 holes completed and just few holes received.
Drilling has started beginning of May, so it’s running for near 5 months. I am beleiver in GBB but that situation like strange.
I’am waiting your comments.
Thanks
Comment by Alain Forest — September 22, 2010 @ 7:29 am
Alain, thank you for your comment – we appreciate and value all feedback. I’m not here to defend the company, that’s not my job. But from one observer of the market to another, here is my response: First, GENIVAR is running GBB’s exploration program. They are a worldwide company with integrity and highly regarded credentials. Rest assured that every drill result that has been received from the labs to date has been made public. And just like you, GENIVAR is anxious to see results as quickly as possible which is why they got a third lab involved, ALS Chemex, which has a very good reputation. I know that Frank stated in a BMR interview in June that he expected initial results by the end of June and that didn’t happen – the labs were too optimistic. Initial results came out at the end of July. At the end of August the company announced they expected to release more results in early September which is exactly what they did. This is a process, Alain, and results can never come fast enough for investors. GENIVAR, to their credit, has given all of us a good idea of what upcoming drill results may look like based on visuals which is a difficult thing to do. But we all should have a very good feel for how the program is going (and it’s going extremely well in BMR’s view) for those who understand even some very basics of geology. The process of getting assay results is quite involved and begins with the logging of core which takes time. Quite often what happens as well is that some results on a hole will come back from a lab and they are incomplete in some way, so more time is required for a final result. The results then have to be reviewed, as quickly as possible, and interpreted for dissemination to the market. This is not an easy or a simple process and it takes time. Drilling started within the Block Model in early May. Drilling did not start in the Eastern Extension until early June. Personally, I think 18 complete holes to this point is pretty good. The flow has started and should pick up moving forward. Alain, one of the most important lessons I’ve learned in life just over the past five years – I’m now 46, so it took me a long time to really appreciate this – is how critical it is to be patient with ALL things in our lives. We make a lot of mistakes when we become impatient.
Comment by Jon - BMR — September 22, 2010 @ 8:32 am
Jon, Thanks you very much for your answer and all your explanations, well appreciated.
Also thanks a lot for all your work, comments and analyses on different stocks. I read those with interet.
Bye
Alain
Comment by Alain Forest — September 22, 2010 @ 12:11 pm