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Venture Update - BullMarketRun.com

May 11, 2017

Venture Update

Venture support levels have been holding up as expected and the Index is now showing signs of gaining new traction to the upside after a 3-week slump that closely mirrored the weakness in March.

Investors should have learned by now that every Venture pullback since the start of the bull market early last year has been a time to get excited, not discouraged, just like you’d be thrilled if Costco suddenly decided to roll back prices across the board an average of 10% to 15%, with even better deals on certain products, for a limited period.  Would you stop visiting Costco until they raised prices again?

Investors who understand this truism are the ones who make the most money in the market, especially during bull phases when dips to key support areas are classic low-risk opportunities.

Nervous nellies sell into the weakness they don’t understand and are fearful of; sophisticated investors understand the weakness and its limits.  Unlike the nervous nellies, they aren’t controlled by the market or their own emotions.  They are astute traders and investors.

Venture 6-Month Daily Chart

With investors’ worst fears about the B.C. election not materializing, and commodities starting to firm up again, the Venture has posted back-to-back winning sessions to once again get above what has been a key Fib. level going back to last year – 784.

  • RSI(14) has bounced off support at 30%, forming a bullish “W”
  • Today the Index closed at 788 and above its short-term downtrend line and the EMA(8)
  • Venture will accelerate to the upside once the EMA(8) and EMA(20) have both been cleared and reverse higher
  • Notable short-term resistance around 800 which held for 33 straight sessions and is just 3 points above the current EMA(20)
  • Short-term bearish trend (ADX indicator) is weakening
  • It’s quite possible the last half of May will be much stronger than most investors were anticipating just days ago

The Venture since last August has been consolidating from a massive 80% gain over just 7 months.   The stage is being set for another major upside move that will crystalize during the 2nd half of 2017.

8 Comments

  1. Wonder if they will still be hell bent on raising rates, not good numbers out of the us.with the dems vowing to stall everything, going to take a long time to improve.

    Comment by Laddy — May 12, 2017 @ 5:57 am

  2. The Fed seems determined to raise rates as quickly as possible, Laddy, so they have a cushion for any potential unexpected downside in the economy. You’re right about the Democrats—still in a temper tantrum over November and won’t cooperate on anything as they continue with the “resistance”. Maybe they’ll finally learn after a wipe out in the mid-terms.

    Comment by Jon - BMR — May 12, 2017 @ 6:25 am

  3. Oh ya I’m for them raising rates Jon, also heard some analysts saying if yellen raises, trump will fire her, what the heck hey, he’s on a firing streak.. It’s really becoming quite the joke down there. Won’t end anytime soon.

    Comment by Laddy — May 12, 2017 @ 7:41 am

  4. Many more need to be canned, Laddy…all part of draining the swamp…wholesale changes required in Canada as well…the ball is bouncing, we’ll see where it lands…the big battle of our times that’s shaping up is over how government should operate…it’s going to make for a very fascinating few years…

    Comment by Jon - BMR — May 12, 2017 @ 7:48 am

  5. Yup , should be interesting and a little entertaining as well, ha!!

    Comment by Laddy — May 12, 2017 @ 7:54 am

  6. Mr. Adam Travis reports

    COLORADO EARNS INITIAL 51% IN KSP AND ALLOCATES $4M TO EXPAND INEL ZONE AND ACHIEVE 80% OWNERSHIP

    Colorado Resources Ltd. has made the final cash payment of $150,000 and completed the initial exploration expenditures of $6-million at KSP, more than six months ahead of schedule. This will satisfy its agreement with SnipGold Corp. (a wholly owned subsidiary of Seabridge Gold Inc.) to earn its initial 51-per-cent interest in the KSP property.

    Colorado has also completed its detailed review of the 2016 exploration drill results in the context of updated geological, geochemical and geophysical data. As a result, the board has approved a 2017 exploration budget of $4-million to complete approximately 7,500 metres of drilling, expected to commence in early, July. This exploration program is anticipated to satisfy the $4-million in exploration expenditures required to earn an additional 29 per cent, bringing Colorado’s interest in KSP to 80 per cent.

    A review of the 2016 geochemical data when referenced to last year’s drill program has shown that there are at least 10 soil geochemical anomalies of similar size and strength in the Inel-Khyber area (see news release dated Dec. 19, 2016), of which only one was tested by Colorado’s 2016 drill program to shallow depths of approximately 125 metres.

    Reviews of geological and geochemical data along with new geophysical induced polarization (IP) and magnetic data have recently been completed and are showing some very compelling targets at depth and along strike of Colorado’s 2016 drilling. A three-dimensional plot of simplified geology and gold-in-soil anomalies on surface underlain by the IP chargeability model shows the spatial relationships and good correlation between gold intercepts in drilling and the currently interpreted chargeable areas (1).

    Adam Travis, Colorado’s president and chief executive officer, stated: “Colorado was fortunate to option KSP during the exploration downturn in 2013 and is now well positioned to control one of B.C.’s best and largest (greater than 302 square kilometres) exploration projects. Our team has done an impressive job of consolidating this large land package, making new discoveries, completing the collection of nearly 5,000 rock and soil samples, and drilling 65 drill holes over the last three years. Along with government geologists, we have recognized that KSP has strong structural, lithologic and alteration characteristics which are closely analogous to similar features at the KSM (2) and Brucejack camps (2) located 30 kilometres to the east. The KSP property also offers district-scale potential in an area that has newly developed roads, power lines and run-of-river power plants. Although the Inel area covers less than 10 per cent of our KSP property, it is already showing significant potential, with more than half of our 2016 drill holes returning significant gold grades (see [a table available on-line]). Our 2016 drilling also demonstrated that gold mineralization is not only restricted to the volcanic-sediment contact as previously thought, but is also found within the underlying sedimentary rocks, thus opening up a considerably larger target area. The current geological, geochemical data and geophysical models are also suggesting that the known mineralization outlined over a 400-metre-by-600-metre area in our 2016 drilling is perhaps only a small portion of a much larger system.”

    The main area of focus of the 2017 drill program will be a 500-metre-by-750-metre area to the west of the 2016 drilling and a 250-metre-by-500-metre area to the north of the 2016 drilling. Many of the 2016 drill holes ended in mineralization near the margins of these areas and were overlain by very strong gold-in-soil anomalies, were associated with permissive geology, and were also spatially related to magnetic and chargeability features.

    Upon the successful completion of the $4-million KSP exploration program and the exercise of the 29-per-cent additional interest, an 80-20 joint venture agreement between Colorado and Seabridge will be formed.

    Quality assurance/quality control statement on assay results

    The 2016 samples were analyzed by ALS Minerals of Vancouver, B.C. Samples were prepared by the Prep-31b method, which involves crushing the entire sample to 70 per cent passing minus two millimetres, splitting off one kilogram and pulverizing the split to better than 85 per cent passing 75 microns. Base metal assays were first determined using the ME-ICP61 method, which reports results as parts per million. Any samples containing greater than 10,000 ppm zinc were analyzed by the Zn-OG62 method, which reports results as a percentage. Any samples containing greater than 100 ppm silver were analyzed by the Ag-OG62 method, which reports results as ppm. The gold assays were determined using the Au-AA25 fire assay method, which reports results in ppm and is equivalent to grams per tonne. Any samples returning greater than 100 ppm gold were analyzed by the Au-GRA21 fire assay method with a gravimetric finish. The analytical results were verified with the application of industry-standard quality control/quality assurance procedures.

    For more information on the KSP project, the reader is directed to the company’s website.

    Qualified person

    Dr. Jim Oliver, PhD, PGeo, the company’s chief geoscientist, is the qualified person (as defined by National Instrument 43-101) who reviewed the preparation of the technical data in this news release.

    Notes:

    The chargeability anomaly is a reflection of certain petrophysical characteristics of the rocks in the Inel area. These characteristics may be independent of base and precious metal mineralization.
    This news release contains information about adjacent properties on which Colorado has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the company’s properties.

    Comment by Jon - BMR — May 12, 2017 @ 7:57 am

  7. Plays that could firm up smartly on anticipated news sometime next week…GGI…GGM (Granada)…CSR…

    Comment by Jon - BMR — May 12, 2017 @ 11:33 am

  8. Hope so Jon, GGi and CSR down today. Don’t understand the venture. Hopefully we get some good news to light a fire underneath GGI.

    Comment by Dan1 — May 12, 2017 @ 1:13 pm

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