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TSX Venture Exchange and Gold

The CDNX continues to show resilience and the fact it gapped up Friday morning and improved on those gains by the end of the day is a bullish sign entering next week.  With various technical indicators looking positive, including a 50-day moving average that’s now rising for the first time since April, we’re comfortable with the idea that a significant rally in the Index is brewing.  There is evidence of accumulation recently in this market – smart money stepping back in, and that is obviously bullish – at least for the short-term.

Below is an updated CDNX chart that John completed Friday morning, just prior to the market open.  Support at 1500 has held.  The fact this market has had every reason to break support at 1500 recently and hasn’t is a bullish sign.  The increasingly likely scenario now, in our view, is that the CDNX is going to challenge resistance at the November 8 high of 1675 which also happens to be in the immediate vicinity of the declining 100-day moving average (SMA).  At the very least, then, the probability of a profitable rally of just over 8% from current levels appears strong.  A decisive move through the November high and the 1700 area would open the door for a very quick push to 1800 and perhaps higher.  It’ll be important to keep a close eye on volume levels for clues as to how powerful a rally we could see.  It’s much too early to predict the start of another bull market.  Keep in mind, the 100, 200, 300 and 1000-day moving averages are all currently in decline.  The 1000-day, interestingly, is currently sitting at about 1650 and provided resistance at 1675 in November.

For the week, the CDNX finished down just 10 points at 1547 after Friday’s 30-point advance.

Gold

The ongoing euro zone crisis is definitely a major influence on Gold and will continue to be for the foreseeable future.  In other words, the problems in Europe weren’t solved with the Brussels summit and they’re going to continue like re-runs of All In The Family.  We’ll comment more on the euro zone situation in tomorrow’s Morning Musings. The implications of the Brussels summit are significant and will ultimately lead to much higher Gold prices when the European Central Bank finally has to step in and print money faster than Helicopter Ben. At some point, the EU will fail.

For the week, Gold was down $34 an ounce after closing Friday at $1,711.  Support is very strong near current levels as John’s charts have shown.  Silver was off 41 cents to $32.23, Copper was unchanged ($3.57) along with the U.S. Dollar Index (78.59) while Crude Oil fell $2 a barrel to $99.41.

The TSX Gold Index was off 5 points for the week, closing Friday at 403, but like the CDNX this Index shows bullish potential at the moment which tells us Gold could have a strong finish to the year.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.

What’s also driving Gold is the weakness of the United States, brought on in no small part by one of the most ineffectual Presidents the nation has ever been saddled with.  America has lost its way and the recent S&P downgrade is both a real and a symbolic reflection of that.  Since the summer of 2009, the U.S. economy has produced a net total of just two million jobs while federal spending has gone through the roof.  Throughout its incredible history, the United States has demonstrated an amazing resiliency and the ability to bounce back from major economic, social and political troubles.  It will do so again but this will take time and a real Commander-in-Chief in the White House by November, 2012.  By then Gold will have climbed another 50% or more.

Click on the link below to listen to part 2 (14 minutes) of Jon’s interview with Cap-Ex Ventures’ (CEV, TSX-V) President and CEO Brett Matich who discusses a range of issues including more on the massive Block 103 discovery to the potential for direct shipping ore elsewhere on the company’s land package.

As of 8:30 am Pacific, CEV is off a penny at 95 cents.  The stock’s recent overbought technical condition has been unwinding nicely, so this situation continues to look extremely positive from both a technical and fundamental standpoint.
BMR Dec. 8 Brett Matich Interview Part 2

Gold is trying bounce back after significant weakness yesterday on disappointment surrounding the European Central Bank (ECB) which played down the prospect of a boost to its sovereign bond purchasing (pre-summit theatrics?)…as of 6:00 am Pacific, the yellow metal is up $4 an ounce (off its highs) at $1,710…Silver is 12 cents higher at $31.78…Copper is up a nickel to $3.54…Crude Oil is flat at $98.37 while the U.S. Dollar Index is up slightly at 78.86…

The seemingly never-ending euro zone nightmare continues…EU leaders announced a new “fiscal pact” this morning involving all 17 euro zone countries and five others who don’t share the euro (with the notable exception of Britain)…the euro zone has new rules on tougher budget discipline but this dysfunctional family has so far failed to agree on a treaty change to enshrine the rules (though there are developments on that front just in the last hour or so)…there’s a commitment to funnel more money into the International Monetary Fund plus a plan to advance by one year the launch of the European Stability Mechanism…but the crisis continues, and more summits will undoubtedly occur…in addition to a fiscal deficit, the euro zone is also facing a growth deficit at the moment and how it plans to tackle that is anyone’s guess…there was little mention of that today…the euro zone is a mess and the situation there is going to get worse before it gets better, guaranteed…the ECB is going to have to become more aggressive (this is key) which ultimately should be bullish for Gold…markets are hoping the euro zone crisis will move in a “QE rich” direction but we’ll have to wait and see what unfolds in the days and weeks ahead…looking at a wide spectrum of charts, it seems we’re nearing “a point of decision” in Gold and Gold stocks…one could make the argument we’re about to see a major breakout…on the other hand, a breakdown is also possible but less likely in our view…

In a late breaking development from the EU summit, Reuters is reporting that nine countries are apparently ready to join the 17 members of the euro zone to draft a new intergovernmental treaty for deeper fiscal union aimed at tackling the sovereign debt crisis…the decision appears to isolate Britain even more markedly as the only one of the 10 non-euro-zone countries in the EU not to agree to join the treaty change…”The Heads of State or Government of Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania and Sweden indicated the possibility to take part in this process after consulting their Parliaments where appropriate,” said the draft conclusions…

There is some positive news on the global economic front today…China’s inflation cooled to the slowest pace in 14 months in November as gains in food costs moderated…this will allow China to loosen monetary policy more aggressively which raises hopes for a “soft landing” and continued strong growth in the area of 8% or better…Chinese consumer prices rose 4.2% from a year earlier, according to the statistics bureau in that country…that was lower than all estimates in a Bloomberg News survey of 35 economists that had a median forecast of 4.5%…producer prices gained 2.7%, the least in almost two years…

Some interesting comments from Vancouver-based mining entrepreneur Ross Beaty in a Northern Miner interview…Beaty has started 12 public companies and has sold eight of them, converting about $1 billion of investment capital into shareholder wealth of more than $5 billion…this is what Beaty had to say regarding his outlook for the metals market…

“More people are born every day and if you forget about Europe and America there are very strongly growing economies in most of the world: India, China, Malaysia, Indonesia, all of South America, all of Africa, and there are an awful lot of people in those countries that all want more junk, bigger houses, more cars, and all of that drives commodity demand.  So despite all the nervousness in the U.S. and in Europe, I see the rest of the world as actually being more important for commodity growth than those mature markets. And on the supply side, we’re just not discovering as much as we need to discover to keep prices low. So I’m optimistic that we are going to continue in a strong metal market for many, many years. Having said that, at the end of the day it’s very unsustainable to be consuming as much as we are consuming and high prices will ultimately tend to reduce consumption and increase supply and that’s probably a good thing, especially the consumption side because long-term the only sustainable way for seven billion people to live on earth is if we all consume less and make what we produce today go farther.”  (Ross Beaty, source: Northern Miner)…

Dow futures this morning are showing a modest rebound at the open after yesterday’s sell-off in the markets…the CDNX has fallen for four consecutive sessions (40 points in total) but has plenty of support around the 1500 area…on an encouraging note, the 50-day moving average (SMA) is now advancing which could allow this market to gain some traction and move higher…there’s considerable “heavy lifting” to do between 1575 and 1700 – the Index has to overcome that resistance for the outlook to improve – but a breakout through 1700 by year-end would be very bullish…on the flip side, breach of support at 1500 would be a bearish development…

The TSX Gold Index chart is very interesting and suggests this Index is on the verge of an upside breakout…check out the classic symmetrical triangle in John’s chart below…the Index has held support in the face of strong selling pressure recently which has started to abate…a strong move past 420 would be very bullish…

John has another interesting chart this morning, this one on Gold Bullion Development (GBB, TSX-V) which may have found a bottom recently at 15 cents…

Later this morning we’ll be posting Part 2 of Jon’s interview yesterday with Cap-Ex Ventures‘ (CEV, TSX-V) President and CEO Brett Matich…Part 2 covers a wide range of issues and is very informative…we’ll comment more on CEV in the days ahead…

There are times when a chart just “jumps out at you” and Rainbow Resources (RBW, TSX-V) is an excellent example.  Below is a 5-month weekly RBW chart from John that shows a dramatic shift in volume and buying pressure, a very defined upsloping channel and bullish RSI momentum.  This is a textbook example of a stock on the move.

Recently, Jon conducted a site visit to one of Rainbow’s properties in southeast British Columbia and has met with company officials as part of a due diligence exercise.  Rainbow has assembled an impressive land package in our view, including a Silver-lead property we really like, and has aggressive plans for 2012 as evidenced by Wednesday’s announcement of a private placement financing.  One of the keys to this deal is the people involved – some very respected Calgary businessmen and geologists. There’s money, entrepreneurship, expertise and a lot of enthusiasm in Alberta, and some of this will definitely be flowing into Rainbow.

This is a highly speculative situation of course, and not for the faint of heart like with any penny stock, but we do expect the Rainbow story to gain traction and develop in the weeks and months ahead.  At yesterday’s 16.5-cent close, the current market cap is a modest $4 million.

As always, perform your own due diligence.  Both Jon and John hold positions in Rainbow Resources (Terry does not)…

Cap-Ex Ventures Ltd. (CEV, TSX-V) continues to consolidate after a powerful run that took it from a low of 25 cents October 3 to a high of $1.25 November 22 following a major iron ore discovery in the Labrador Trough near Schefferville, Quebec.

Given drill results to date as well as the nature of the Block 103 magnetite system, Cap-Ex is sitting on what could very well turn out to be Canada’s largest iron ore deposit – and one of the very best in the world – as President & CEO Brett Matich explained to us in an exclusive BMR interview today.  Block 103 is massive but the potential size of this deposit is still speculation as it’s too early for a NI-43-101 resource estimate.  The involvement now of Forbes & Manhattan as a financial and strategic partner with CEV does speak to the magnitude of this discovery and its potential implications.

Cap-Ex closed today at 96 cents for a current market cap of $42.5 million.  Not only there is strong underlying fundamental value with this play, but the stock is underpinned by solid technical support, as John’s latest chart showed, including a recent reversal to the upside in the 100-day moving average (SMA).

Click on the link below to listen to Part 1 of our interview (14 minutes) with Brett Matich.  Part 2 will be posted during the day Friday.

BMR Dec. 8 Brett Matich Interview Part 1

Note: The interviewer holds a position in Cap-Ex Ventures.  No compensation was paid to BMR for this interview in accordance with BMR policy. Please read our disclaimer.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations.  Always perform your own due diligence. 

Welcome to our site, or at least the initial version of it!  BMR has been online for two years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus very much on the Gold market and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

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Gold is jumping around a bit this morning as the European Central Bank has cut interest rates (though not as much as expected) and is implementing other measures, to counter the twin threats of recession and deflation…volatility will be the name of the game in all markets today and tomorrow given the euro zone situation…as of 6 am Pacific, the yellow metal is down $3 an ounce at $1,740 after climbing as high as $1,758…Silver has jumped 26 cents to $32.77…Copper is a nickel higher at $3.58…Crude Oil has added 68 cents to $101.17 while the U.S. Dollar Index is flat at 78.45…

Dow futures are pointing to a higher open as of 6 am Pacific with the ECB decision and a report that shows weekly U.S. jobless claims have fallen to a 9-month low…all eyes will be on the euro zone again today…the politicians will try to put something together that will “kick the can” down the road a little more and temporarily at least put the markets at ease…this a long story, however, with many more chapters to come…

The CDNX begins the trading day at 1539…the Index is building support just above the 1500 level and that’s encouraging to see…

Canada Rare Earths (CJC, TSX-V), which has been a superb performer recently, provided an exploration update this morning on its promising Goeland Rare Earth Project 200 kilometres north of Val-d’Or…10 holes have been completed to date with encouraging visuals including confirmation of the presence of bastnasite in at least one of the holes…CJC is drilling into a large carbonatite complex that clearly holds strong exploration potential, and many of the first 10 holes have intersected carbonatite and syenite alteration packages that offer real hope that a significant discovery at Goeland is possible…visuals don’t always translate into strong assay results, as we have often seen, so there are risks here but mother nature is so far giving CJC and its shareholders reason for optimism…no timeline given for assay results but our thinking is by January we should see something…the chart is looking strong and the rising 10 and 20-day moving averages can be expected to provide support…the stock closed yesterday at 61 cents…

Gold Bullion Development (GBB, TSX-V) released assay results on 20 more holes from the LONG Bars Zone yesterday…the numbers were consistent with previous results – wide, low-grade intersections – and tonnage continues to build…there are still some key roles in the northern part of the Eastern Extension for which assays are pending…it has been a difficult year for GBB, mostly because of inefficiencies on the ground related to a lack of personnel…nothing has changed regarding the geological potential of the LONG Bars Zone but the market has punished GBB for not ramping up exploration and executing better on the ground…there’s only one way to tackle the LONG Bars Zone and that is to go BIG and follow the Osisko model…it appears improvements have been made recently on the ground and it’s imperative that SGS, the company’s new geological consultant, delivers on an initial 43-101 resource estimate for the LONG Bars Zone during the first quarter of next year…tax-loss selling has certainly been a factor with GBB lately but that will end in two weeks…if GBB plays its cards right, 2012 will be a much better year for the stock…there was good volume in GBB yesterday with the stock closing up half a penny at 16.5 cents…

A company that is executing extremely well on the ground in northwest Quebec (and Ontario) is Richmont Mines (RIC, TSX) which continues to be one of our favorite plays…an updated 43-101 resource estimate for Wasamac is expected within the next week or 10 days…based on this year’s drill results, we’re anticipating Richmont will be able to upgrade and expand resources significantly beyond what was reported back in February (1.4 million ounces in all categories)…2 million+ ounces appears likely…ultimately, the Wasamac system could be much larger than that if it opens up even more to the east and at depth…great potential with this…Richmont already has two operating mines (Beaufor and the Island Gold Mine in Ontario) with a third (Francoeur) coming on stream by the middle of next year…this is a company doing all the right things and creating shareholder value and wealth…RIC closed yesterday at $12.13 on strong buying pressure, giving it a market cap of $400 million…ultimately, in our view, Wasamac alone will be worth that much…by every measure there is still substantial upside to Richmont which is a true Gold growth stock…John updates the chart below…the technical pattern (see the blue circle) suggests a major breakout (a moment of “decision”) is imminent – perhaps not today, but very soon…we believe the breakout will be to the upside given the positive news we’re expecting from Wasamac and the overall “glowing” picture of Richmont…

GoldQuest Mining (GQC, TSX-V) has been a major disappointment this year but for “bottom fishers”, now is a good time to have GQC on the “radar screen”…we were pleased to see that GQC cancelled its proposed merger with Takara Resources (TKK, TSX-V)…however, the stock suffered some technical damage during that messy process…with the dust having settled, GQC is sitting at just 7 cents for a market cap of only $7 million…this is when patient investors make money in the market…GoldQuest has been around for a long time and does hold a solid portfolio of advanced and grassroots exploration projects in the Dominican Republic…management has the ability to build shareholder value, so we’re confident GQC will recover in 2012…a 10-hole drill program is underway at the company’s promising La Escandalosa Project (near-surface mineralization) where there is excellent potential for 43-101 resources to be upgraded and expanded…could GQC drop a little more?…certainly it could, but John’s updated chart shows superb support at a nickel so the downside risk from here appears to be very limited…note that the current downsloping channel on the chart is very similar to the one in late 2008 which was also a good time to buy…GQC could jump in a hurry on positive results out of Escandalosa Sur during the first quarter of next year…

Rainbow Resources (RBW, TSX-V), which we pointed out recently, has announced a private placement financing of $1.2 million..what we like about Rainbow is that this is a fairly new company with a strong group behind it that wants to get aggressive in exploring a thoughtfully and strategically assembled land package in a rich historical mining area of southeast British Columbia…the capital structure is attractive (just 25 million shares outstanding at the moment) and the chart is looking very promising…we’re also extremely bullish on Silver, and Rainbow’s flagship asset is an under-explored Silver-lead property (“International”) with high-grade, near-surface historical showings…those will have to be confirmed, of course, and the company is conducting exploration on the property right now in advance of a 2012 drill program…Rainbow has a good “feel” to it and we have a lot of confidence in the people involved which is why (as a matter of disclosure) Jon has taken a position in RBW in the hope of a major breakthrough for this company…

Gold rallied off support at $1,700 yesterday and it’s reasonable to believe the yellow metal will extend those gains in the days ahead, particularly if the right signals come from euro zone…as of 6 am Pacific, Gold has reversed its earlier losses today and is now up $4 an ounce at $1,733…Silver is off a dime $32.66…Copper is down 2 pennies at $3.54…Crude Oil is 33 cents lower at $100.95 while the U.S. Dollar Index is up nearly one-fifth of a point to 78.67…

Dow futures as of 6:00 am Pacific point to a slightly lower open on Wall Street…

The global financial crisis is giving investors more reasons to love Gold…U.S. investors, both retail and professional, poured $3.6 billion into Gold exchange-traded funds funds last month, quadruple the $813 million in October, according to numbers crunched by research firm Birinyi Associates…it also was double the $1.7 billion placed in the second biggest ETF category by inflows, investment grade corporate bonds…investors are betting that inflation could heat up as many countries cut interest rates – essentially devaluing their currencies – and Europe gets set to inflate its way out of its credit crisis…“It is going to be a go-to asset once everyone digests that if Europe is to be saved, the ECB will have to directly or indirectly print money and the inflation trade will be all on once again,” Michael Block of  Phoenix Partners Group told CNBC…“I would be buying Gold opportunistically”…

The COT structure for Silver at the moment is absolutely stunning…what it suggests is that Silver is gearing up for an explosion to the upside, which fits well with one of John’s recent “big picture” Silver charts that points to a new all-time high by the middle of next year…commercial long positions in Silver are at a record level – the long to short ratio is a hugely bullish signal – while the typically wrong large and small specs are quite negative regarding Silver at the moment…it’s never a good idea to bet against the commercial traders, they are consistently correct…there is a bullish COT structure for Gold right now, too, but Silver is way off the scale which suggests Silver will out-perform Gold on a percentage basis going forward…

Rather than chase Silver stocks later, it’s best in our view to ensure that you have exposure now for both the short-term and the long-term in quality Silver plays including producers and explorers…just a few of our favorites include Great Panther Silver (GPR, TSX), Alexco Resources (AXR, TSX) and Wildcat Silver (WS, TSX)…we’ve referred to GPR consistently throughout the year and it closed yesterday at $2.41…AXR’s Bellekeno Mine in the Keno Hill Silver District is one of the highest-grade Silver mines in the world…the stock closed yesterday at $7.08…both AXR and GPR are trading below their respective and still-rising 300-day moving averages…WS, entering today’s trading at $1.53, is developing a substantial deposit at its Hermosa Property in Santa Cruz country, Arizona…for the more adventurous, we suggest investors take a look at Rainbow Resources (RBW, TSX-V) which is an up-and-coming Silver-lead-Gold play in southeast British Columbia…it closed yesterday at 16.5 cents for a market cap of just $4 million…some highly respected and successful Calgary businessmen are involved in Rainbow including Jim Decker of Grande Cache Coal fame…they have an interesting Silver property in their southeast B.C. land package and we suspect this one year-old company is going to move aggressively in terms of exploration and overall business development…consider RBW our Christmas gift to readers as a potential big winner in 2012…as always, perform your own due diligence…

Yesterday, Jon spoke with Cap-Ex Ventures‘ Brett Matich, in preparation for an interview with the CEV President and CEO tomorrow morning…the more we look at CEV, the more we like it – even though the stock has appreciated considerably over the last couple of months after bottoming out at just under 30 cents at the beginning of October…the involvement of Forbes & Manhattan is a huge development for Cap-Ex which appears to be sitting on one of the world’s largest iron ore deposits…given the strong insider buying and Forbes & Manhattan stepping up to the plate, investors should feel confident with this company for both the short-term and the long-term…the current market cap of just under $50 million is modest indeed…

John has two charts to share this morning of two companies that are executing well on the ground with their respective properties – Spanish Mountain Gold (SPA, TSX-V) and Adventure Gold (AGE, TSX-V)…both stocks have out-performed the CDNX this year and we expect that trend to continue in 2012…the Spanish Mountain chart is a picture of beauty with the share price showing a slow but steady progression in an upsloping channel throughout the year…the Spanish Mountain deposit in central British Columbia is low-grade but high-tonnage with a current 43-101 all-category resource (see company’s Nov. 15 news release) of 4.5 million ounces of Gold and 3.7 million ounces of Silver at a cut-off grade of 0.30 g/t Au…the company is now focusing on the completion of additional infill drilling, principally within the promising North zone and adjacent to the Main zone with the objective of enabling a reclassification of part of the large inferred resource (2.7 million ounces) to the measured and indicated categories…an updated resource estimate and a pre-feasibility report are expected by early in the second quarter of next year…the company has a strong management team (they do what they say there are going to do) and impressive financial backers…the current market cap of $133 million values the all-category Gold resource at just $30 an ounce, so there’s plenty of upside potential here…this deposit needs high Gold prices, so a big move either way in Gold will certainly impact the share price…in otherwords there are risks but if you’re a believer in Gold moving higher, Spanish Mountain should be a big winner as we’ve stated on numerous occasions during the year…it closed yesterday at 80 cents…

Adventure Gold’s (AGE, TSX-V) key asset is its Pascalis-Colombiere Gold Property near Val d-‘Or which the company has advanced nicely this year…Pascalis-Colombiere encompasses the former producing L.C. Beliveau Mine and lies immediately adjacent to Richmont Mines‘ (RIC, TSX) Beaufor Property and Mine (a significant fact)…drilling and exploration work this year have shown there are numerous extensions to the former Beliveau Mine, and AGE is working on an initial 43-101 resource estimate which should be ready in the near future…AGE, which has a large portfolio of properties in in Quebec and Ontario, closed yesterday at 45 cents for a market cap of $25 million…