Gold has traded between $1,392 and $1,412 so far today…as of 6:45 am Pacific, bullion is down $12 an ounce at $1,395…we’ll see if $1,400 will hold as technical support on a closing basis…Gold, which hit a 3.5-month high this week and is about to post its 2nd straight monthly gain, also has a strong support band between $1,382 and $1,394 according to John’s charts…historically, September is bullion’s best month of the year…another strong move to the upside next month, after gains in both July and August, may convince traders/investors that the correction that started in September 2011 finally ended in late June this year when bullion tumbled as low as $1,180 – a nearly 40% drop from the all-time high 2 years ago…bullion will have plenty to deal with in September including an important Federal Reserve meeting, a fresh U.S. jobs report next Friday, a reconvened U.S. Congress that will have to grapple with the debt ceiling issue, the nomination by President Obama of a new Fed chairman (or chairwoman, the market is hoping for continuity with Yellen), plus of course geopolitical concerns with Syria at the top of the list at the moment (what’s perhaps even more of a concern regarding Syria is that Obama has backed himself into a corner and is appearing weak on the international stage)…an imminent but slow scaling back of the Fed’s bond-buying program –  by no means a certainty starting in September – has likely already been baked into the Gold price, so Gold may go up no matter what the Fed decides to do at its meeting Sept. 17-18…

As of 6:45 am Pacific, Silver is off 40 cents at $23.42…Copper is down 2 pennies at $3.21…Crude Oil is 81 cents lower at $107.99 while the U.S. Dollar Index is up slightly at 82.08…

John Embry, Sprott Asset Management’s chief investment strategist, has made a very upbeat prediction regarding Gold on Mineweb’s Gold Weekly Podcast…“At this point I am probably as bullish as I’ve been in living memory, actually,” Embry stated, adding, “I thought this summer might be a little slow because it’s a quiet market and you can play around in the paper market, but I think that’s going to change quite significantly in the fall and I would not be surprised if, by early next year, we weren’t challenging all-time highs.”

One of the main pillars of increased prices for the yellow metal is rooted in China, a source of very strong demand in recent months in particular with a powerful shift in buying from West to East…Embry believes China is ultimately intent on backing its currency with Gold…“I think they’re [China] accumulating a lot more than is being admitted, and at some point they may spring that on the world,” he told Mineweb…

Today’s Markets

Asian markets were mostly higher overnight…China’s Shanghai Composite added 1 point to close the week at 2098…for the month, the Shanghai was up an impressive 5.2%…Japan fell 71 points to close August at 13389…it finished a volatile month down 2%…European markets are off moderately in late trading overseas…

The Dow is down 15 points through the first 15 minutes of trading…on the economic front, U.S. consumer spending ticked up 0.1% in July, according to the Commerce Department this morning…economists polled by Reuters had expected a gain of 0.3%…the TSX is flat while the Venture is down 2 points at 939 as of 6:45 am Pacific…keep in mind the Venture, aided now by a rising 50-day SMA, is underpinned by very strong technical support between 918 and the 930’s…

Zenyatta Ventures (ZEN, TSX-V) Update

Strong day for Zenyatta Ventures (ZEN, TSX-V) yesterday as it shot up 52 cents on news that it has commenced drilling with a 2nd rig on the Albany East pipe with a larger drill (HQ size) in order to obtain 5 tonnes of graphite mineralization to proceed with a 2nd phase processing of a mini bulk sample…this processing, according to Zenyatta, will allow additional optimization of the flow sheet for the preliminary economic assessment (PEA) and provide material for further testing by ZEN and interested parties that have requested material…

Zenyatta President and CEO Aubrey Eveleigh stated, “Both pipes continue to demonstrate the exceptional continuity and size potential of the graphite deposit, and the outline of each pipe correlates well with the shape of the conductivity anomalies defined by the ground electromagnetic survey. The current drill campaign is designed to allow for a National Instrument 43-101-compliant resource estimate by RPA (formerly Roscoe Postle & Associates Inc.) for both the East and West pipes. Drilling is on schedule for an NI 43-101 statement in early fourth quarter of 2013.”

Zenyatta said it expected to release additional drill results for the West and East pipes “soon”…the recent consolidation in the ZEN share price has unwound the overbought conditions from earlier this summer on the 6-month daily chart as you can see below…note John’s new Fib. level ($6.70 – not a price target, just a theoretical level based on Fib. analysis)…as always, perform your own due diligence…ZEN is up 6 cents at $4.01 as of 6:45 am Pacific…

Pretium Resources Inc. (PVG, TSX) Updated Chart

The outlook for Gold has to be considered encouraging when 1 examines a range of individual Gold mining stocks (producers and some juniors) that are looking very bullish technically…just 1 example is Pretium Resources (PVG, TSX) which of course is developing the high-grade and large scale Brucejack Project in northwest British Columbia (about 200 km southeast of the Sheslay River Valley and the Sheslay and Grizzly properties we’ve been focusing on)…Brucejack is being advanced as an underground Gold mine with commercial production targeted for 2016…Wednesday, PVG announced a $10 million financing at $9.35 per share with a subsidiary of Boston-based Liberty Mutual Insurance…PVG has been volatile but is climbing nicely within an upsloping channel…the RSI(14) uptrend is bullish, and buy pressure has replaced sell pressure which has been dominant since late last year…PVG closed yesterday at $8.90 and is relatively unchanged in early trading today…

Exclusive Interview, Part 2:  BMR Puts Greencastle CEO On The Hot Seat

Earlier this week, BMR conducted a fascinating interview with Greencastle Resources‘ (VGN, TSX-V) President and CEO Tony Roodenburg who finds his company under attack from CNSX-listed Zara Resources Inc. (ZRI, CNSX)…ZRI has launched a simultaneous all-share takeover bid for 100% of the outstanding shares of Greencastle and 2 other companies (Visible Gold Mines, VGD, TSX-V) and Altai Resources (ATI, TSX-V)…in a news release Monday, ZRI’s Danny Wettreich referred to VGN, VGD and ATI as “undervalued, underutilized and mismanaged assets”…

So far, the market doesn’t appear to be taking Wettreich’s bravado very seriously as share prices for VGN, VGD and ATI simply have not responded to his attempt at pulling off a “triple play” that would supposedly add value to all 3 (plus Zara)…it also doesn’t help when you criticize the falling share prices of other companies over a 3-year period and your own stock tumbles 60% in a single day as ZRI did Tuesday on the CNSX…nonetheless, Wettreich has brought up some valid points on the minds of many investors at the moment in terms of such things as valuations, management compensation, and the need for companies to be more responsive to their shareholders…too many individuals running these public companies, or involved with them, fail to understand they serve at the pleasure of the shareholders…too many of these companies are failing to execute both on the ground and in the market…

At BMR, we decided to ask Greencastle’s Roodenburg for an interview, and he accepted even though we warned him we would be asking some tough questions…below is the 2nd interesting excerpt from that interview (more to come next week) as Jon peppers Tony about “lifestyle” companies…

Click on the forward arrow below to listen to the 6-minute excerpt of the discussion between BMR and Roodenburg…

[audio:https://e8d59e.a2cdn1.secureserver.net/wp-content/uploads/2013/08/VGNinterviewclip2.mp3|titles=VGNinterviewclip2]

Ginguro Exploration Inc. (GEG, TSX-V)

While investors face many risks in the junior resource market, it’s also an industry that offers incredible leverage – even during its most challenging periods…an excellent case in point is Ginguro Exploration (GEG, TSX-V) which rocketed from a low of 3 cents this month to a high of 27.5 cents yesterday…it closed at 24.5 cents and is up 1.5 cents at 26 cents as of 6:45 am Pacific…

Ginguro says it’s targeting “the first large-scale Precambrian paleo-placer Gold deposit in North America”, offering “potential for mineralization on a scale never seen before in Canada“…no, it’s not Frank Callaghan running GEG, it’s a gentleman by the name of Richard Murphy…yesterday, GEG reported some interesting results from contiguous channel sampling of its recently discovered 007 zone at the Pardo Property, approximately 65 kilometres north of Sudbury, which they’ve been working on for a while…“The 007 zone,” Murphy reported, “was found as a result of surface prospecting using Ginguro’s unique exploration methodology developed over four years as pioneers in North American paleo-placer exploration.”

Average Gold content over the 22.5-metre length of channel sampling was an impressive 40.1 g/t Au…we’ll see how this develops…GEG has arranged financings at 10 cents and 15 cents totaling $2.3 million as they try to ramp up exploration at Pardo…it’s not the easiest property for most investors to understand from a geological perspective, so not only are future results important but so too will be the way the company communicates this story…

From a technical standpoint, GEG certainly has momentum on its side at the moment but it is in overbought territory (doesn’t mean it can’t become more even more overbought, temporarily)…resistance is at 30 cents while Fib. support is between 14 and 20 cents as John shows on this 2.5-year weekly chart…at some point in the near future the stock of course will need to cleanse its overbought condition and consolidate for a period of time before possibly moving to even higher levels…

Zodiac Exploration Inc. (ZEX, TSX-V)

A junior that has a strong working capital position, liquidity in its stock and a favorable chart is always worth putting on the radar screen…ZEX is an oil and gas play, and we’re pointing it out this morning simply because of its recent trading behavior and the fact it reported about $15 million in working capital at the end of June (lots of shares outstanding – 360 million)…Zodiac has engaged Meagher Energy Advisors and Western Energy Production to assist the company in its previously stated objective of maximizing opportunities on its extensive San Joaquin basin land base through potential joint ventures, farm-outs and dispositions…ZEX is up half a penny at 11.5 cents as of 6:45 am Pacific…

ZEX 3-Year Weekly Chart

Fraser River Gold Panning Championships

We’ll be catching up again very soon with Yukon Dan, but from all reports last weekend’s Fraser River Gold Panning Championships were once again a major success…below is a picture from the event with Yukon Dan (far right) and just a few of the winners…BMR was one of the numerous proud sponsors of this year’s edition of the Gold Panning Championships…congratulations to all the participants and winners…BMR sponsored the Children’s Competition, the Teens Competition and the Open Competition…Bryan Anca was the winner in the Children’s event, while Vanya Plotnikoff claimed top honors in both the Teen and Open events…

Have a great long weekend, everyone…we’ll be posting the Week In Review And A Look Ahead on Sunday…no postings on Labor Day Monday…1st edition of Morning Musings to begin the new trading week will be at approximately 5:00 am Tuesday with an updated version at approximately 9:00 am…

Note:  John, Terry and Jon do not hold share positions in ZEN, PVG, GEG or ZEX.

Gold has traded between $1,403 and $1,418 so far today…as of 7:15 am Pacific, bullion is down $9 an ounce at $1,409…expect some more bouncing around, and we’ll see how strong the $1,400 level in terms of potential new support…Silver is off 33 cents at $24.07…Copper is down 4 pennies at $3.24…Crude Oil has slipped 81 cents to $109.29 as it continues to flirt with the important $110 resistance level, while the U.S. Dollar Index has gained half a point to 81.92…

Bullion is headed for a 2nd straight monthly gain (it closed July at $1,323) thanks to a variety of factors including some weaker-than-expected U.S. economic data, higher Oil prices, geopolitical tensions, a drying up of ETP selling, strong Asian demand, and fresh technical strength…the next major resistance area, according to John’s latest chart (3-year weekly), is $1,475 – followed by the previous support band between $1,550 and $1,600…September is traditionally Gold’s strongest month of the year, so it’ll be interesting to see what unfolds in the coming weeks especially with many economists still expecting the Fed to begin scaling back its asset purchases at its meeting September 17-18…we believe that’s much less likely to occur given recent economic data as well as the political dynamics in Washington (debt ceiling debate coming up)…the prospect of Fed tapering has also been hurting several emerging markets due to an outflow of foreign capital as U.S. long-term interest rates rise…Brazil and Indonesia, alongside India, Turkey and South Africa, have been the hardest hit countries in a brutal sell-off triggered by expectations for an unwinding of the U.S. monetary stimulus that has provided global markets with ample liquidity in recent years…

Gold hit an all-time high against the Indian rupee yesterday…National Bank mining and metals equity research analyst Paolo Lostritto pointed out that consumers throughout India have been hoarding Gold the last few months in anticipation and fear that the country’s currency would be devalued…“Even though their cost of buying Gold has gone up by 10%, on a net basis, because their currency has fallen so much, they are still up,” he said (source: Kitco). “It has actually reinforced people’s thinking and psychology towards Gold.”

Today’s Markets

Asian markets were mixed overnight…Japan’s Nikkei average gained 121 points to close at 13460 while China’s Shanghai Composite slipped 4 points to 2097…European shares are generally moderately higher in late trading overseas…

The Dow is up 43 points through the first 45 minutes of trading…the U.S. economy accelerated more quickly than expected in the 2nd quarter to a 2.5% annual rate, according to the Commerce Department…the government had initially estimated that GDP expanded at a 1.7% clip in the 2nd quarter…meanwhile, weekly jobless claims declined 6,000 to a seasonally adjusted 331,000, according to numbers released this morning by the Labor Department…the TSX is up 59 points while the Venture has climbed 6 points to 939 as of 7:15 am Pacific…

Venture Exchange Updated Chart

Some investors have been a little unnerved about the drop in the Venture over the last couple of days (down 18 points Tuesday, 3 points yesterday) but the Index has strong support around current levels…these type of minor pullbacks should be viewed as an opportunity as they’re completely normal in the context of a bullish broader picture, which is what we see…below is an updated chart from John to illustrate our point…the Index closed yesterday at 933, finding support at its rising 20-day moving average (SMA) and the 100-day SMA which previously was strong resistance…RSI(14) has unwound to 53 and is now resting at support…the Index, it appears, is gearing up for an assault on critical resistance at 970, and a move through that area on strong volume would constitute a very significant breakout…the Venture’s 50-day SMA has reversed to the upside which gives the bullish scenario greater credibility…

Venture 9-Month Daily Chart

Colorado Resources (CXO, TSX-V) Update

Investors often over-react, to the upside or the downside, and an over-reaction in our view is exactly what occurred yesterday as Colorado Resources (CXO, TSX-V) tumbled nearly 40% to close at 43 cents following the release of 9 additional drill hole results from North ROK…investors looking for a “hot” headline number were disappointed as the best result (NR13-013) was an interval of 402.2 metres grading 0.28% Cu and 0.27 g/t Au (0.45% CuEq)…that’s still a very respectable intersection for this type of porphyry system, however, and it was also a 400-metre step-out to the southeast from the original discovery hole (333 metres grading 0.51% Cu and 0.67 g/t Au as reported April 25)…a few other holes were quite decent while some were disappointing, especially considering this round of drilling has been focused on a continuous and strong magnetic high core…keep in mind a few things, though…these are still the very early stages for North ROK…drilling continues, and the company has also just been permitted for an additional 40 holes…the potential deposit, which could still be very large, remains open along strike in both directions and at depth…nailing down the geometry, size and grade of this system is a major challenge for Colorado but they have the technical team to figure it out…1800 metres of mineralized intersections at North ROK to date have averaged 0.30% Cu and 0.37 g/t Au…the very economically robust Red Chris deposit to the southeast has a measured and indicated resource of 936 million tonnes grading 0.37% Cu and 0.38 g/t Au…investors also are forgetting that Imperial Metals (III, TSX) missed on 25% of the numerous holes it drilled at the Red Chris in 2011 and 2012…that’s exactly the percentage CXO has missed on so far…ultimately, many, more more holes are going to have to be drilled into North ROK…for sure, some will be “dusters” (probably 25%), many will be very average while some additional stellar hits like the original hole can also be expected…CXO will be volatile and smart money will see value in the bigger picture and jump in aggressively on technically oversold conditions…

CXO tumbled through an important support area in the mid-to-upper 60’s yesterday and that certainly didn’t help matters, contributing to the selling pressure…the good news is, as you can see on John’s 3-year monthly chart, there’s a long-term support band between 40 and 43 cents…this includes the rising 300-day SMA, with the rising 500-day SMA directly below in the high 30’s…the stock has firmed up this morning on good volume with CXO climbing a nickel to 48 cents as of 7:15 am Pacific…

Manitou Gold Inc. (MTU, TSX-V)

Bottom fishers may wish to perform their due diligence on Manitou Gold (MTU, TSX-V) and keep it on their radar screens…MTU appeared to bottom out at 2 cents in mid-July, and that all-time low was followed soon after by a considerable jump in volume…nearly 2 million shares traded July 30 when MTU climbed 2 cents to close at 7.5 cents…since then, it has traded between a nickel and 7.5 cents on lighter volume…MTU was originally listed on the Venture in 2010 and zoomed from the low ’40’s to over $1 per share in early 2011 when it hit some high-grade intersections at its Kenwest Property, part of a large package (nearly 200 sq. km) of very prospective holdings in the historical Gold Rock district of northwestern Ontario…in early June, MTU commenced exploration programs (geochemical surveys, mechanical trenching, structural mapping and channel sampling) on the Kenwest, Elora and Canamerica projects…this is expected to be followed up by drilling…as of June 30, MTU had nearly $2 million in its treasury…the company has 54 million shares outstanding…another high-grade discovery, very possible given the ground they are exploring, would give the stock another major lift…the overall bearish trend is weakening, as shown in John’s 2.5-year weekly chart, and a recovery appears to be well underway…as always, perform your own DD…

Radius Gold (RDU, TSX-V)

We brought Simon Ridgway’s Radius Gold (RDU, TSX-V) to our readers’ attention recently, given its very strong working capital position and various promising projects in Mexico, Nicaragua and Guatemala, some of them under JV with B2Gold Corp. (BTO, TSX) and Fortuna Silver Mines Inc. (FVI, TSX)…we’ll be digging more into these properties in the weeks ahead…it’s clear to us on the chart that RDU put in an important bottom at 6 cents this year in late June, in conjunction with lows in the Venture and Gold, and a recovery is underway…at yesterday’s close of 12 cents, RDU is still trading below its working capital position…sell pressure in the stock, dominant for much of the past 2.5 years as you can see in John’s weekly chart, has reversed into buy pressure, and that’s always an encouraging sign…current resistance is at 15 cents while the rising 20-day SMA is providing support at 12 cents…as always, perform your own DD…

Note: John, Terry and Jon do not hold share positions in RDU or MTU.  Jon holds a share position in CXO.

Gold continues to push higher amid a variety of bullish factors, including the fact cruise missiles are being locked in on Syria and ready to be fired in order to deter that regime from using chemical weapons…as of 7:30 am Pacific, bullion is up $6 an ounce at $1,422…the West needs to get it just right in Syria – their pending attack, which will likely occur over a maximum 48-hour period according to reports, has to be destructive enough to deter Assad from using chemical weapons again, yet proportionate enough that Russian and Iranian retaliation is limited to rhetoric…Syria also has friends in China…keep in mind, also, that many of the rebels Assad is fighting against in Syria are Islamic militants with ties to al Qaeda…so which side is worse?…Silver is off a nickel at $24.47…Copper is down a penny at $3.29…Crude Oil (see updated chart below) has added another 84 cents to $109.85, its highest level in 2 years, while the U.S. Dollar Index has gained one-third of a point to 81.47…

According to our technical guru, it’s looking increasingly likely that bullion is destined (at the very least) to test its previously strong support band between $1,550 and $1,600 – exact timing is uncertain and there will be pullbacks along the way, but for both fundamental and technical reasons there’s a very bullish set-up in Gold at the moment…forget about the Fed starting to scale back its bond-buying program in September – that’s one message Gold appears to be sending…the political environment just isn’t favorable, either in the U.S. (debt ceiling debate coming up) or globally…recent economic numbers out of the U.S. have not been very encouraging, and the prospect of Fed tapering is hurting emerging markets which in turn isn’t helpful to the United States…the Fed seems to be trapped and how Bernanke decides to maneuver through all of these obstacles is going to be fascinating to watch…

The Indian rupee fell more than 3.5% to hit a fresh record low of 68.75 to the dollar today…the currency has been hit hard by a sell-off in emerging markets assets which has focused attention on India’s wide current account deficit, sluggish economy and the slow pace of long-term structural reforms…the Indian government believes the way to fix the country’s current account deficit is to encourage or prevent its citizens from buying Gold…it’s an incompetent, corrupt government and when an incompetent, corrupt government is asking or telling you not to buy Gold, what would you be motivated to do?…buy even more Gold, by the truckloads, and that’s what the Indians are doing, either legally or by circumventing government rules…

WTIC Updated Chart

Crude prices are at 2-year highs, jumping more than $5 this week on fears that tensions in Syria could spill over and further destabilize the Middle East which pumps one-third of the world’s Oil…the “risk premium” could carry WTIC to at least $115 a barrel, and that’s a level the chart is pointing to right now…a prolonged outage at several Libyan oilfields is also underpinning  prices…Libya’s largest western oilfields closed when an armed group shut down the pipeline linking them to ports, its deputy oil minister confirmed yesterday…sectarian violence continues in Iraq, while supplies from Nigeria, Libya and Sudan are coming in lower than expected…

So how does the WTIC chart look?…in 1 word, bullish…John’s initially provided a Fibonacci target of $110 quite a while ago…significantly, WTIC broke above a pennant yesterday…this is a “continuation pattern” which requires confirmation today…the next Fib. level is $115…

Thankfully, North America is not as dependent on Middle East Oil as it once was…and the current situation in that always troubled part of the world is just one more reason why it’s so critical for President Obama to approve the Keystone XL Pipeline Project – vital to U.S. energy (and national) security…if it plays its cards right, the U.S. can be in a position in a few years where it doesn’t have to import any Oil whatsoever from the Middle East (or Venezuela for that matter) – only from Canada and Mexico…according to the latest statistics from the EIA (the U.S. Energy Information Organization), the U.S. imported 1,140,000 barrels of oil per day from Saudi Arabia in May of this year, 361,000 from Kuwait, 321,000 from Iraq, and 674,000 from Venezuela…Canada of course is the top exporter to the U.S. (2.2 million barrels in May) while Mexico (#3) exported 777,000 barrels…U.S. Oil production has reached its highest level in 2 decades, thanks to previous policies enacted by the Bush Administration…

More Crude Oil is moving around the U.S. on trucks, barges and trains than at any time since the government began keeping records in 1981 – a precursor to what may become a bigger change in the next few years with the construction of more than $40 billion in Oil pipelines now underway or planned…

Today’s Markets

After falling for 8 out of the last 10 sessions (562 points or 3.7%), the Dow is up 30 points as of 7:30 am Pacific…the TSX has gained 39 points while the Venture is hugging its 100-day moving average (SMA), down 2 points at 935…Mike England’s Ashburton Ventures (ABR, TSX-V) is the volume leader this morning after reporting positive sampling results from its Sienna West claims in Saskatchewan, approximately 40 km southwest of the PLS uranium discovery…ABR is up 2.5 cents at 9 cents on total volume (all exchanges) of nearly 3 million shares…

Asian markets were all lower overnight but it wasn’t exactly a rout…Japan’s Nikkei average fell 204 points or 1.5% to close at 13338…China’s Shanghai Composite was virtually unchanged at 2101…European markets are down moderately in late trading overseas…

Colorado Resources Ltd. (CXO, TSX-V) North ROK Update

Colorado Resources (CXO, TSX-V) released results from 9 additional holes at North ROK this morning…nothing “sizzling”, like 2 of the initial 4 holes, which is why CXO is under pressure in early trading today (also due to typical “knee jerk” selling on news)…the results from North ROK can best be described as neither poor nor great, sort of “in between” and lukewarm…for some investors, uninspiring…this supports the theory that we’ve been advancing that the best project in this area is actually further west in the Sheslay River Valley where investor focus is going to shift to very soon…Pete Bernier’s Prosper Gold (PGX.H, TSX-V) project is more advanced than North ROK and in our view has greater potential as we’ve been stating…also, keep in mind, the combined Sheslay and Grizzly properties are 240 sq. km, 5 times the size of North ROK…

These are still very early days for North ROK…this morning’s news, though not spectacular, does confirm that it remains a very promising property with strong upside potential…CXO has managed to show continuity of mineralization on multiple sections along a 500-metre strike length…NR-13-13, a 400-metre step-out to the southeast of the original discovery hole, returned a very respectable interval of 402 metres grading 0.28% Cu and 0.27 g/t Au (0.45% CuEq)…NR-13-13 was terminated at the drill’s maximum capacity (565 metres) with 0.31% CuEq at the bottom of the hole…drilling continues which is positive and the possibility of another stellar hole that lights up the market is certainly very possible…CXO hit a low of 45 cents (where there is support) during the 1st hour of trading…buyers stepped in at that point…as of 7:30 am Pacific, CXO is down 22 cents at 48 cents…Dundee, with the largest house position in CXO (they’re net about 2 million shares over the past 6 months at an average price of 87 cents), hasn’t sold a single share so far this morning…geologically, the North ROK story remains intact (the system remains open along strike in both directions and at depth) and bargain hunters this morning stand a good chance of being handsomely rewarded…

Castle Resources Inc. (CRI, TSX-V)

Northwest B.C. remains hot, which is 1 important reason we brought Castle Resources Inc. (CRI, TSX-V) and its high-grade Granduc Copper Project near Stewart to our readers’ attention August 19 when it was trading at a nickel…yesterday it broke out above resistance and closed up 2 cents at 7 cents on total volume (all exchanges) of 2.8 million…we’re expecting September and October to be great months for exploration activity and excitement in B.C., so Castle – like Garibaldi Resources (GGI, TSX-V) and several others – could just be warming up for potentially very powerful moves…the dynamics are in place…

About 6 weeks ago, Castle engaged KPMG Corporate Finance to identify, analyze and execute a transaction that will fast-track the development of Granduc…the company is considering a range of transaction structures, including a joint venture, off-take agreement, earn-in or some form of business amalgamation or merger…since that announcement, and up until yesterday, the stock traded between a low of 2.5 cents and a high of 6 cents on a huge uptick in volume (good sign)…

In February, Castle issued a Granduc PEA using a measured/indicated resource of 11.3 million tonnes grading 1.47% Cu, 0.17 g/t Au and 12.4 g/t Ag, and an inferred resource of 44.6 million tonnes grading 1.43% Cu, 0.19 g/t Au and 10.7 g/t Ag…the capex is estimated at $494 million…the payback period is 4 years with annual production averaging 70 million pounds of payable Copper equivalent over a 15-year mine life…resources are open for expansion, and excellent infrastructure is in place…the PEA envisions an underground mining operation similar in scope to the historic mining operations at Granduc in the 1970′s and 1980′s…

Below is an updated CRI chart from John which helps show why this stock is waking up and the potential (like Garibaldi and others in northwest B.C.) that is still has…CRI’s ADX indicator on this 8-month weekly chart shows a looming +DI/-DI crossover, always a bullish sign…as of 7:30 am Pacific, CRI is off half a penny at 6.5 cents…

Niogold Mining Corp. (NOX, TSX-V)

Niogold Mining Corp. (NOX, TSX-V) has formed a strong base around 12 cents in recent months, and interestingly it added Simon Ridgway to its board of directors just a couple of months ago…the company, which reported about $4.5 million in working capital as of the end of May, has retained a 100% interest in the Marban Block Property in Quebec which previously was under option to Aurizon Mines, recently acquired of course by Hecla Mining (HL, NYSE), the largest U.S. primary Silver producer…

“We are extremely pleased to again have full control and ownership of the Marban property,” President and CEO Mike Iverson stated in a news release this morning…“Aurizon had previously incurred a total of $11,600,000 of exploration expenditures under the option agreement, which has grown the estimated measured and indicated Gold resources by 255% to 1.53 million oz (32.1 million tonnes at 1.48 g/t) and the inferred Gold resources by 165% to 599,000 oz (16.5 million tonnes at 1.13 g/t).”

NOX is up a penny in early trading at 15 cents…below is a 2.5-year weekly chart from John…

Adventure Gold Inc. (AGE, TSX-V)

Adventure Gold (AGE, TSX-V) is one of our old favorites and we continue to like it, especially with AGE trading in the mid-teens…we’ll have more on AGE in the next few days, but in the meantime, for our readers’ due diligence, is an updated chart from John…AGE closed at 15.5 cents yesterday…

Gold continues to power higher, underpinned by numerous supporting factors including the tense situation in Syria, a drying up of ETP selling, falling Gold inventories, short-covering, impressive Asian demand, strong Oil prices, weak currencies, a growing belief that a scaling back of the Fed’s bond-buying program will not occur in September as previously believed, and the fact the U.S. is expected to reach its debt ceiling limit in mid-October according to the Treasury Department…add to that some additional fuel in terms of fresh technical support, and you’ve suddenly got a very bullish recipe for Gold after the yellow metal hit a multi-year low of $1,180 in late June…as of 6:45 am Pacific, bullion is up $14 an ounce at $1,419 – a fresh 3-month high…it traded as low as $1,396 overnight…Silver has jumped 29 cents to $24.62…Copper is up a penny at $3.33…Crude Oil has surged $2.69 a barrel to $108.61 while the U.S. Dollar Index is down more than one-tenth of a point to 81.19…with tensions escalating in the Middle East, it’s interesting that Gold is drawing the safe-haven buying and not the greenback…

Bloomberg reports that most unexpectedly, since Germany’s request for partial Gold repatriation, the Gold inventory of the COMEX has fallen from 11 million ounces to some 7 million, a drop of about 36%, the lowest level in 5 years…clearly, dealers have demanded physical delivery on Gold purchase contracts on an increasing scale throughout 2013…some dealers, according to Euro Pacific Capital, may even have been prompted to take delivery by the news that bullion banks, including Morgan Stanley, were rumored to have experienced serious runs on the physical Gold held in their vaults for their clients…as early as January 23, 2013, The Wealth Cycles site commented, “The issue…is the near certainty that not all the Gold recorded to be held in the bullion banks is really there. Much of it has been pledged and re-pledged against the debt that keeps the world’s monetary system afloat.”

You can certainly see the sentiment changing toward Gold in the latest Commodity Futures Trading Commission’s weekly Commitment of Traders Report (COT) as fresh longs are being added to positions…

Special BMR audio interview this morning – Greencastle CEO on the hot seat (see below)…

Today’s Markets

The Dow is off 90 points through the first 15 minutes of trading (see updated Dow chart at bottom of today’s Musings)…NBC News is reporting that the U.S. could launch a missile strike against Syria as early as Thursday…meanwhile, The Telegraph is reporting that Saudi Arabia has secretly offered Russia a sweeping deal to control the global oil market and safeguard Russia’s gas contracts, if the Kremlin backs away from the Assad regime…major geopolitics are at play…

The U.S. Treasury Department says it will hit its borrowing limit in mid-October and be unable to pay all of its bills soon after that time, narrowing the window the White House and Congress have to maneuver on budget talks…the deadline, which is sooner than many on Capitol Hill had expected, gives a sobering jolt to a number of fiscal discussions that have faltered for months…

The TSX is down 25 points as of 6:45 am Pacific while the Venture has slid 2 points to 953…

European shares are off significantly in late trading overseas while Asian markets were mixed overnight…Japan’s Nikkei average slipped 94 points to close at 13542…meanwhile, China’s Shanghai Composite gained 7 points to finish at a 1-week high of 2104 after profits earned by industrial firms rose 11.6% in July from a year earlier…interesting article regarding China’s growing debt in this morning’s Wall Street Journal by reporter Tom Orlik…“Nationwide,” Orlik stated, “four-and-a-half years of breakneck growth in lending has significantly increased China’s debt burden.  Outstanding borrowing by businesses and households rose to 170% of gross domestic product at the end of 2012 from 117% in 2008, according to data from the Bank for International Settlements.  The 2012 figure for the U.S. was 157%…as worries over China’s debt problem mount, the burden of paying off those loans could be the trigger that tips runaway credit into slower economic growth and financial stress.”

TSX Gold Index Update

The TSX Gold Index is inching closer toward a confirmed significant breakout…yesterday, it closed above the 210 level – slightly – for the 1st time since April…over the past 41 trading sessions, the Index has surged 38% since touching an intra-day low of 154 June 27…during that same period, Gold itself is up nearly 20% while the Venture Exchange has climbed 11%…is this just a dead-cat bounce in Gold and Gold stocks after the vicious declines we’ve seen, or is this just the beginning of a massive, unexpected upside move in the coming months – similar to what was seen after the 2008 Crash?…

One thing is for certain in our view – Gold stocks have further to go on the upside between now and the end of the year…how much further remains to be seen, but the TSX Gold Index chart is looking extremely bullish, though of course there will be occasional pullbacks…the Venture’s technical posture has improved remarkably as well, and the key for it will be to overcome major resistance at 970…it’s weaker today but strong support levels exist…

TSX Gold Index 6-Month Daily Chart

The Strategy With Juniors

No matter what Gold does and how the markets perform, the best strategy in our view for those who wish to “play the juniors” is to focus most of their attention on the small universe of companies (perhaps 10% of the Venture) that have the cash, the expertise and the drive to make a discovery that a major will buy…the need for fresh deposits in safe jurisdictions in the years ahead is going to be immense…

There are 2 high quality situations we’d like to remind our readers of this morning because they are so important and developing right now – 1 in Ontario and the other in red-hot northwest British Columbia along the incredible trend of the “Golden Triangle” where Pete Bernier has re-emerged with the Sheslay Cu-Au Porphyry Project…Prosper Gold’s (PGX.H, TSX-V) Sheslay and Garibaldi Resources’ (GGI, TSX-V) contiguous Grizzly Property combine to form 240 sq. km of prime exploration real estate that has a great chance of hosting a major new discovery or series of discoveries…that’s how fortunes are going to be made in this industry in the months and years ahead – identifying the right people in the right areas who can find the right types of deposits for majors…

First, Probe Mines (PRB, TSX-V) continues to make impressive progress with its Borden Lake Gold Project in northeastern Ontario…investors should have gotten the message about this one during the spring…as Gold prices were collapsing, Agnico Eagle Mines (AEM, TSX) took a significant slice of Probe (9.9%) through a private placement at a substantial premium to the market…a game-changing moment at Borden Lake occurred when Probe discovered a high-grade zone to the southeast of the original lower-grade deposit that was outlined…this high-grade area continues to expand as Probe reported in its most recent news release last week (August 21)…Probe expects to be able to produce an updated resource estimate for Borden Lake later this year (check their January 15, 2013, news release for the most recent estimate – approx. 4 million ounces), and it should be interesting given the amount of drilling (exploratory and inifll) they have completed in recent months in the high-grade area…well-managed company with lots of cash…at yesterday’s closing price of $2.05, PRB’s current market capitalization is a relatively modest $156 million – a take-over of Probe would likely come at a significantly higher price, especially if Gold prices continue to head north…as always, perform your own due diligence…

Below is an updated PRB chart from John (2.5-year weekly) and it is very bullish…you can also see how PRB can has been strongly out-performing the Gold price since early May…

Prosper Gold (PGX.H, TSX-V)

Pete Bernier and his highly qualified team are armed and dangerous, in a good way of course…we have nothing but respect for Bernier who’s a straight-up guy who partnered with his geological guru, Dirk Tempelman-Kluit, to find and then sell (for half a billion dollars in 2011) a massive Gold discovery at Blackwater in central British Columbia…the precision with which they carried out that exploration program (which included a winter drill program) was nothing short of incredible, and that same precision and expertise is about to be applied to the Sheslay Cu-Au Porphyry Project approximately 60 miles west-northwest of Colorado Resources’ (CXO, TSX-V) North ROK discovery at Iskut…North ROK is very interesting, but investors who have done their homework know that the Sheslay is a more advanced situation and also holds major blue-sky potential as it has never been tested at depth…there are a minimum of 5 porphyry zones on the Sheslay with mineralization open in every direction…it is a geologist’s dream to work on a project like this, and there is no one better to figure it out than Tempelman-Kluit and the team he and Bernier have assembled…

As Prosper Gold reported last week, its qualifying transaction for the Sheslay is expected to close by the end of this week (conditional approval has already been granted) with trading in the stock (under the symbol PGX) slated to begin sometime next week…Bernier has a huge following and he has all of his ducks in a row (money, exploration crews, everything) to launch an all-out immediate assault on the Sheslay…this is going to be a Power Show that could light up like a Christmas tree and bring some major excitement to the Venture…

With many investors asleep at the switch this summer, and mistakenly giving up on the Gold market, most people have never even heard of the Sheslay River Valley…rest assured, BMR will be putting it on the world’s radar screen in the near future when we do a site visit…many investors also aren’t aware that Garibaldi Resources is the 100% owner of 17,500 hectares (vs. nearly 7,000 hectares for the Sheslay) contiguous to the western and southern borders of the Sheslay…GGI’s Grizzly Property is at a much earlier stage of exploration than the Sheslay, but it hosts a critical “heat engine” (Mount Kaketsa) believed to be driving mineralizing fluids at both properties…various work in recent years, such as soil sampling and a major airborne magnetic survey that was flown over parts of the Grizzly and also the southern half of the Sheslay for comparative purposes, have delineated some highly prospective areas on the Grizzly (the Western Block and the Southern Block) that warrant extensive and immediate follow-up, especially considering that the dynamics in the Sheslay River Valley have changed dramatically with Bernier’s arrival on the scene…

A picture tells a thousand words…below is a Google Earth snapshot that BMR has used for an exclusive map that gives a very close approximation of the property boundaries and the exploration targets at both properties…Prosper Gold’s initial drilling will focus on the Star Porphyry where more than 80% of historical holes (average length of only 174 metres) bottomed in strong Cu-Au mineralization as reported by PGX…

The Sheslay and the Grizzly – Right On Trend With Major Systems To The Southeast

Garibaldi is attractive not only for the potential of its Grizzly Property, and for the fact it’s in the heart of what could easily become the most exciting Cu-Au Porphyry play in the country in the months ahead, but the company also possesses a very strong portfolio of properties in Mexico – 1,000 sq. km of strategically located concessions close to some of the most robust Gold and Silver mining projects ever discovered in that country including Mulatos, Dolores and Ocampo…Mexico provides a rock-solid, long-term foundation for Garibaldi, and the company has already created value for shareholders there when it sold its Temoris Project to Paramount Gold and Silver (PZG, NYSE) in 2009 for cash and shares…that wise transaction put and has kept GGI in a strong working capital position, so much so that the company hasn’t had to do a financing in more than 4 years…how many Venture companies have destroyed their share structures just in the last few months, let alone the past couple of years, in order to raise cash merely to survive?…GGI has no warrant overhang (57.4 million shares outstanding) and Steve Regoci, the President and CEO, and Barrie di Castri, the CFO, together hold approximately 20% of the stock…share structure always has to be a key consideration in evaluating any junior, and GGI’s is highly attractive…the management team is focused, skilled, and driven to take advantage of the opportunities GGI has both at the Grizzly and in Mexico…

Exclusive Interview:  BMR Puts Greencastle CEO On The Hot Seat

BMR has conducted a fascinating interview with Greencastle Resources‘ (VGN, TSX-V) President and CEO Tony Roodenburg, who finds his company under attack from CNSX-listed Zara Resources Inc. (ZRI, CNSX) which has launched a simultaneous all-share takeover bid for 100% of the outstanding shares of Greencastle and 2 other companies (Visible Gold Mines, VGD, TSX-V) and Altai Resources (ATI, TSX-V)…in a news release yesterday, ZRI’s Danny Wettreich referred to VGN, VGD and ATI as “undervalued, underutilized and mismanaged assets.”

So far, the market doesn’t appear to be taking Wettreich’s bravado very seriously…if his name were Pete Bernier and Zara itself was leading by example and had its own track record of creating serious value for shareholders, it would be a different story and a lot more investors would be excited by the offer…nonetheless, Wettreich has brought up some valid points on the minds of many investors at the moment in terms of such things as valuations, management compensation, and the need for companies to be more responsive to their shareholders…too many individuals running these public companies, or involved with them, fail to understand they serve at the pleasure of the shareholders…too many of these companies are failing to execute both on the ground and in the market…

At BMR, we decided to ask Greencastle’s Roodenburg for an interview, and he accepted even though we warned him we would be asking some tough questions…below is a 5-minute excerpt from the interview – the rest of it will split into at least 2 parts and posted in the near future…

Click on the forward arrow below to listen to the 5-minute excerpt of the discussion between BMR (Jon is asking the questions) and Roodenburg…

[audio:https://e8d59e.a2cdn1.secureserver.net/wp-content/uploads/2013/08/VGNinterviewclip.mp3|titles=VGNinterviewclip]

Great Panther Silver (GPR, TSX) Chart Update

Great Panther is one of the few pure Silver plays on the market…as a result, it has responded very favorably to the recent strength in Silver prices…GPR’s 200-day SMA has been in steady decline since late 2011 but potentially that could change before the end of the year…GPR closed at $1.29 yesterday, a 90% increase over its June 26 low of 68 cents where it also bottomed during a mild market correction in 2010…by early 2011, the stock was trading as high as nearly $5 a share…

If you believe that Silver is headed much higher over the next 12 months, any minor pullback in the metal in the immediate future (to cleanse temporarily overbought conditions) may present a great opportunity to accumulate shares in some strong Silver producers and explorers…below is a 2.5-year weekly GPR chart…John has indicated the Fibonacci resistance levels…there is very strong chart support at $1, but also check the 10 and 20-day SMA’s on any pullback in the stock as they should provide support as well if this uptrend is for real…

Canadian Dollar Chart Update

What is wrong with the Canadian dollar?…Oil, Gold and Copper are going up but the loonie continues to languish, along with just about every other currency…we’re not quite sure what this means (readers, do you have any thoughts?) as the loonie certainly can’t be weak simply because Justin Trudeau holds a commanding lead in the opinion polls for Prime Minister…

The Canadian dollar is caught in a downsloping channel, as you can see in John’s 3-year weekly chart, and last week it broke below support at 96 cents…

Dow Chart Update

The Dow got into quite oversold conditions last week before rallying moderately Thursday and Friday, but it’s still vulnerable to an additional decline…we’re not too concerned about the potential for a major correction, despite this year’s strong advance, as the Fed will jump in if it has to in order to keep the equity markets healthy – that’s what they’ve been all along since 2008…

Note: John and Jon both hold share positions in GGI.  Jon also holds a share position in VGN.

Updated at 8:00 am Pacific

Gold has bounced between $1,392 and $1,402 to begin a new trading week following Friday’s surge to a 9-week high, thanks to a combination of weak U.S. economic data and rising geopolitical tensions in the Middle East…as of 8:00 am Pacific, bullion is down $2 an ounce at $1,395 as it continues to flirt with technical and psychological resistance at $1,400…Silver has jumped another 15 cents to $24.23 (see John’s updated Silver charts below along with a link to an award-winning short video on Silver)…Copper is unchanged at $3.32…Crude Oil is off 26 cents at $106.16 while the U.S. Dollar Index is up slightly at 81.41…

Gold-backed EFT liquidation appears to have ended, just one of several factors favoring the yellow metal at the moment…Gold holdings in the world’s largest Gold ETF rose 4.2 tons last week, marking a strong trend reversal from the 1st half of the year…in a research note, Standard Bank stated, “It’s perhaps worth highlighting that part of Gold’s relative strength of late, and indeed its recent stability, has been a lack of activity in ETF holdings.  The wave of ETF liquidation seen throughout Q1 and Q2 has come to a halt since mid-August, taking an important source of selling pressure out of the market, while participants have yet to pile back in either as they wait to see how the issue of Fed tapering and indeed the general economic picture unfolds.”

Jewelry demand in Indonesia, the world’s 4th most populous nation, is set to expand to a 4-year high…Bloomberg reports that the consumption of necklaces, bracelets and rings in that country will likely climb to 40 metric tons this year, a 30% increase over last year…meanwhile, total Gold available for delivery at COMEX is holding at record low levels, according to Dundee Capital…since August 1, the registered Gold in the COMEX warehouse has declined by nearly 150,000 ounces to a new low of 791,000 ounces…deliverable Gold is now down 65% year-to-date…over the past 3 months, 1,000 tons of physical Gold are believed to have shifted from the West to Asia…that has to be considered a bullish dynamic for the market…

A report from the Commodity Futures Trading Commission on Friday showed that hedge funds and money managers had boosted bullish bets in Gold futures and options to their highest level since early February (good sign or bad sign?) as of last Tuesday…

This will be an interesting prediction to look back on later…Barclays says it believes the risks for the Gold market are skewed to the downside under its base-case scenario for how it expects events in the 2nd half of the year to play out. “Our model projects that the price will post a small uptick by the end of Q3 but face downward pressure in Q4, reaching an average of $1,294/oz for Q4 ($31/oz below our forecast),” the bank stated. “Our model stresses 3 alternative scenarios, and in line with our expectations finds that should the likelihood of a federal funds rate hike increase, further downside risk for prices is likely, declining to $1,229/oz in December 2013.  But if Fed tapering is delayed into say December, the model sees prices rising to $1,482/oz as soon as October.”

U.S. Dollar Index – Ready For A Breakdown?

Keep a close eye on the U.S. Dollar Index…below is an interesting chart from John that shows how the Dollar Index is at a critical juncture…will it hold support at the long-term trendline, or collapse below it which would allow Gold to soar?…RSI(14) on this 3-year weekly chart was in an uptrend from September of last year until the middle of May…in June, there was an importance divergence between RSI(14) and price (a bearish development) as the Dollar Index hit a multi-year high…

Today’s Markets

China’s Shanghai Composite shot up 39 points or 1.9% overnight to close at 2096…sentiment rose after the nation’s statistics bureau said the economy is showing clear signs of stabilization and is on track to meet the government’s 7.5% growth target…check out www.usfunds.com (Weekly Investor Alert posted late Friday) for 5 interesting charts that look bullish for China and commodities…Japan’s Nikkei average was off slightly overnight, closing down 24 points to 13636, while European shares were mixed today…

In New York, the Dow is up 33 points after the first 90 minutes of trading…durable goods orders slumped 7.3% in July, according to the Commerce Department this morning, recording their biggest drop in nearly a year and snapping 3 straight months of gains…economists polled by Reuters had expected durable goods orders to fall 4%…later in the week, the Case-Shiller home-price index and pending home sales data will provide more insight into the health of the housing market after Friday’s surprisingly weak new home sales data…traders this week are also eagerly anticipating the Conference Board’s consumer confidence index report and the University of Michigan’s consumer sentiment data…

The TSX has gained 37 points as of 8:00 am Pacific while the Venture continues its march toward the important 970 area…it’s 5 points higher at 952 after 90 minutes of trading on good volume again after Friday’s very strong performance…

Fission Uranium (FCU, TSX-V) Makes Offer to Buy Alpha Minerals

Things are really heating up with the PLS uranium play in Saskatchewan which took an interesting twist this morning…Fission Uranium (FCU, TSX-V) has made an all-share offer to acquire 100% of its JV partner, Alpha Minerals (AMW, TSX-V)…an Alpha shareholder would receive, in exchange for each of their Alpha shares, 5.3 common shares of Fission, representing a price of $7.26 per Alpha share based on Fission’s closing price Friday of $1.37…Alpha would have the opportunity to appoint 2 members to the Board of Directors of Fission…expect Alpha to say thanks but no thanks…a bigger fish may end up swallowing them both…

Azincourt Uranium Inc. (AAZ, TSX-V)

As regular readers know, we’ve been keeping a close eye on Azincourt Uranium (AAZ, TSX-V) which can earn up to a 50% interest in Fission’s Patterson Lake North Project which comprises 27,000 hectares…a VTEM max airborne geophysical survey was just completed at PLN as part of an initial planned exploration program before drilling begins this winter…the VTEM max survey was designed to provide higher resolution over anomalous conductive areas of interest identified from previous airborne magnetic-electromagnetic surveys…AAZ is up 2 cents at 33 cents as of 8:00 am Pacific, threatening to push through resistance…looking very good…

North American Nickel Inc. (NAN, TSX-V)

North American Nickel (NAN, TSX-V) held technical support in early trading today and is off to a great start this week, up a nickel at 32 cents as of 8:00 am Pacific…NAN raised some eyebrows (and its share price) Friday with news from its very prospective Imiak Hill Nickel-Copper-Cobalt zone at its Maniitsoq Project in Greenland…traders and speculators live for this sort of thing as NAN reported visual intersections with high levels of sulphide mineralization (up to 85%)…actual assay results to come…drilling continues…

MQ-13-026, the best-looking hole so far, intersected an 18.62 metre core length (156.7 m to 175.32 m) of sulphide mineralization averaging approximately 40 to 45% total sulphides, including numerous sections containing 65% to 80% sulphides, within noritic host rocks…the intensity of sulphide mineralization at Imiak Hill is increasing with depth, typical for nickel sulphide deposits as the strongest mineralization is usually at the bottom of the intrusive…the zones at Imiak Hill appear to be steeply dipping lenses or tubes and remain open at depth…if they have the grade, which appears quite possible given these sulphide percentages, the big question is – do they have the tonnage?…that obviously remains to be seen but this is going to be an interesting story to follow…historically, Imiak Hill was previously tested only by shallow and “inaccurately oriented drilling based on geophysical interpretation”, according to NAN…

NAN opened at 21 cents Friday, climbed as high as 38 cents, and then retraced to close at 27 cents (up 8.5 cents or 46%)…total volume (all exchanges) was 5.1 million shares…below is 2.5-year chart from John (through Friday’s trading)…expect continued volatility…Fibonacci analysis shows very strong support at 25 cents…NAN held above that level in early trading today and also powered through resistance at 30 cents…the test, however, will be if it can close above that 30-cent level today or as the week progresses…

Teuton Resources Corp. (TUO, TSX-V)

Northwest British Columbia is hot, and Teuton Resources – around since the days of Billy The Kid – has nearly doubled in value since we initially brought it to our readers’ attention earlier this month…last Thursday, Teuton announced it has commenced a drill program in the King Tut Zone at its High Property 60 km north of Stewart…they’ll be searching for near-surface mineralization in this zone which is just 150 metres south of the border between the High Property and Pretium Resources’ (PVG, TSX) Brucejack-Snowfield Project featuring the exceptionally high-grade Valley of the Kings…last year’s single hole into the King Tut ran 222 m grading 0.88 g/t Gold , and an assemblage of elements in grab samples assayed this summer were accompanied by elevated values in Copper, Lead and Zinc, suggesting the potential for a different mineralizing event…Teuton is a large landholder in B.C., and a major drill program has also started at its Tennyson Property 40 km north of Stewart…Brigade Resources, a Hunter Dickinson company, has budgeted $4 million there for 2013 as it continues with its option to earn a 50% interest in Tennyson which is porphyry Copper-Gold target…

Below is an updated Teuton chart from John (15-month weekly)…it shows resistance at 15 cents and one certainly can’t rule out a minor pullback to the rising 10 or 20-day moving averages (SMA’s) to unwind temporarily overbought conditions on the short-term daily chart…as of 8:00 am Pacific, TUO is up 1.5 cents to 16.5 cents…as always, perform your own due diligence…

Eagle Hill Exploration Corp. (EAG, TSX-V)

Eagle Hill Exploration (EAG, TSX-V) has perked up recently and appears to be gaining traction with its Windfall Lake Property in Quebec which (importantly) it now holds 100% of after the closing of a deal with Noront Resources (NOT, TSX-V)…Windfall Lake is a high-grade Gold exploration project currently hosting an indicated resource of 538,000 ounces of Gold at 10.1 g/t and 822,000 ounces at 8.8 g/t in the inferred resource category (as announced July 25, 2012)…

EAG doubled in price from 7 cents to 14 cents on strong volume over just 3 sessions between August 15 and 19, and is now consolidating in the 10.5 to 12-cent range…the 100-day SMA has reversed to the upside, ending a long decline, and other indicators have turned positive, so the technical posture of the stock has improved quite significantly…patience, as always, is required, but EAG could have a strong finish to the year – especially if Gold prices were to really take off…EAG is down a penny at 11 cents through the first 90 minutes of trading today…as always, perform your own due diligence…

Updated Silver Charts

Silver continues to out-perform Gold – historically, this has proven to be a bullish trend for precious metals…RSI(2) on this 11-year monthly chart has rapidly moved out of extreme oversold conditions into the overbought area at 77.94…interestingly, this pattern is very similar to what occurred soon after the 2008 Crash and again in the summer of last year, and during both of those occasions RSI(2) pushed well above the 80 level…of course, Silver continued in a strong uptrend following the Crash until it topped out in the spring of 2011, while the metal’s run last summer proved to be short-lived…what will happen this time?…Silver will meet very strong resistance at $26, and then slightly above that at the top of the down trendline in place since 2011…if those key resistance levels are broken, if and when that occurs, then back up the truck and load it up with as much Silver as you can…

By the way, if you haven’t had a chance to view the video, “Silver: The Element of Change”, do yourself a favor and check it out at www.silverinstitute.org…it was released earlier this year by the Silver Institute, and last week the video was named the winner of a 2013 Bronze Telly Award, an honor given each year to the finest videos, film productions, online videos, programs and commercials…the video explores the many ways Silver has changed the course of history to become an indispensable part of modern society…

Silver 11-Year Monthly Chart

Silver 6-Month Daily Chart

Silver impressively battled its way through a resistance band between $22 and $23 as shown on this 6-month daily chart…its next immediate hurdle is the $24.50 area…at some point in the near future, Silver will need to pause and catch its breath to cleanse temporarily overbought conditions (RSI-14 is currently at 78%)…the $23 level should provide strong support…interestingly, $23 was the average all-in cash cost for producers (the ones it follows) during Q2 2013 according to a recent report from Dundee Capital Markets…that’s down from $24.73 per ounce in Q1…

Note: Jon holds share positions NAN and TUO.

4:00 am Pacific Early Edition (updated version at approximately 8:00 am Pacific)

Gold has bounced between $1,393 and $1,402 overnight to begin a new trading week following Friday’s surge to a 9-week high…as of 4:00 am Pacific, bullion is down $3 an ounce at $1,394 as it continues to flirt with technical and psychological resistance at $1,400…Silver is down 7 cents at $24.02 (see John’s updated Silver charts below along with a link to an award-winning short video on Silver)…Copper is unchanged at $3.32…Crude Oil is up 9 cents to $106.51 while the U.S. Dollar Index has strengthened one-tenth of a point to 81.43…

Gold-backed EFT liquidation appears to have ended, just one of several factors favoring the yellow metal at the moment…Gold holdings in the world’s largest Gold ETF rose 4.2 tons last week, marking a strong trend reversal from the 1st half of the year…in a research note, Standard Bank stated, “It’s perhaps worth highlighting that part of Gold’s relative strength of late, and indeed its recent stability, has been a lack of activity in ETF holdings.  The wave of ETF liquidation seen throughout Q1 and Q2 has come to a halt since mid-August, taking an important source of selling pressure out of the market, while participants have yet to pile back in either as they wait to see how the issue of Fed tapering and indeed the general economic picture unfolds.”

Jewelry demand in Indonesia, the world’s 4th most populous nation, is set to expand to a 4-year high…Bloomberg reports that the consumption of necklaces, bracelets and rings in that country will likely climb to 40 metric tons this year, a 30% increase over last year…meanwhile, total Gold available for delivery at COMEX is holding at record low levels, according to Dundee Capital…since August 1, the registered Gold in the COMEX warehouse has declined by nearly 150,000 ounces to a new low of 791,000 ounces…deliverable Gold is now down 65% year-to-date…over the past 3 months, 1,000 tons of physical Gold are believed to have shifted from the West to Asia…that has to be considered a bullish dynamic for the market…

Updated Gold Chart

As we enter the final week of the month, John’s 3-year weekly Gold chart is quite revealing…the CMF(20) indicator shows that buy pressure has just replaced sell pressure, dominant since the beginning of the year…in addition, it appears a bullish +DI/-DI crossover in the ADX indicator is about to occur…there are numerous technical and fundamental clues that suggest Gold did hit an important bottom in late June at $1,180 an ounce…did “Big Money” engineer a “shakedown” in the Gold market in the spring?…we seldom engage in conspiracy theories at BMR, but there are a lot of reasons in our view to believe that’s exactly what took place…as Gold attempts to work its way higher, key resistance levels beyond $1,400 will be $1,475 and the previous support band between $1,550 and $1,600…

This will be an interesting prediction to look back on later…Barclays says it believes the risks for the Gold market are skewed to the downside under its base-case scenario for how it expects events in the 2nd half of the year to play out. “Our model projects that the price will post a small uptick by the end of Q3 but face downward pressure in Q4, reaching an average of $1,294/oz for Q4 ($31/oz below our forecast),” the bank stated. “Our model stresses 3 alternative scenarios, and in line with our expectations finds that should the likelihood of a federal funds rate hike increase, further downside risk for prices is likely, declining to $1,229/oz in December 2013.  But if Fed tapering is delayed into say December, the model sees prices rising to $1,482/oz as soon as October.”

The “Venture Model” – What Is It Saying About Gold?

The Venture Exchange is a reliable leading indicator of Gold and metal prices in general…so far, the CDNX has not been leading bullion higher (the TSX Gold Index has, however) but that could change in the coming days and weeks…Friday’s action was very positive as the Venture closed above its 100-day moving average (SMA) for the 1st time since November of last year on the strongest volume in 4 months…the Venture is ready to test significant resistance at 970…a breakout above that critical technical level would confirm to us that this move in Gold has some serious power behind it…

U.S. Dollar Index – Ready For A Breakdown?

Keep a close eye on the U.S. Dollar Index…below is an interesting chart from John that shows how the Dollar Index is at a critical juncture…will it hold support at the long-term trendline, or collapse below it which would allow Gold to soar?…RSI(14) on this 3-year weekly chart was in an uptrend from September of last year until the middle of May…in June, there was an importance divergence between RSI(14) and price (a bearish development) as the Dollar Index hit a multi-year high…

Updated Silver Charts

Silver continues to out-perform Gold – historically, this has proven to be a bullish trend for precious metals…RSI(2) on this 11-year monthly chart has rapidly moved out of extreme oversold conditions into the overbought area at 77.94…interestingly, this pattern is very similar to what occurred soon after the 2008 Crash and again in the summer of last year, and during both of those occasions RSI(2) pushed well above the 80 level…of course, Silver continued in a strong uptrend following the Crash until it topped out in the spring of 2011, while the metal’s run last summer proved to be short-lived…what will happen this time?…Silver will meet very strong resistance at $26, and then slightly above that at the top of the down trendline in place since 2011…if those key resistance levels are broken, if and when that occurs, then back up the truck and load it up with as much Silver as you can…

By the way, if you haven’t had a chance to view the video, “Silver: The Element of Change”, do yourself a favor and check it out at www.silverinstitute.org…it was released earlier this year by the Silver Institute, and last week the video was named the winner of a 2013 Bronze Telly Award, an honor given each year to the finest videos, film productions, online videos, programs and commercials…the video explores the many ways Silver has changed the course of history to become an indispensable part of modern society…

Silver 11-Year Monthly Chart

Silver 6-Month Daily Chart

Silver impressively battled its way through a resistance band between $22 and $23 as shown on this 6-month daily chart…its next immediate hurdle is the $24.50 area…at some point in the near future, Silver will need to pause and catch its breath to cleanse temporarily overbought conditions (RSI-14 is currently at 78%)…the $23 level should provide strong support…interestingly, $23 was the average all-in cash cost for producers (the ones it follows) during Q2 2013 according to a recent report from Dundee Capital Markets…that’s down from $24.73 per ounce in Q1…

Today’s Markets

China’s Shanghai Composite shot up 39 points or 1.9% overnight to close at 2096…sentiment rose after the nation’s statistics bureau said the economy is showing clear signs of stabilization and is on track to meet the government’s 7.5% growth target...Japan’s Nikkei average was off slightly (24 points)…European shares are mixed as of 4:00 am Pacific while futures in New York are pointing toward a slightly lower open  on Wall Street…the TSX begins the final week of August at 12762 while the Venture closed Friday on a strong note, as we mentioned earlier, at 947…

North American Nickel Inc. (NAN, TSX-V)

Expect a very active (and perhaps volatile) week for North American Nickel Inc. (NAN, TSX-V) which raised some eyebrows (and its share price) Friday with news from its very prospective Imiak Hill Nickel-Copper-Cobalt zone at its Maniitsoq Project in Greenland…traders and speculators live for this sort of thing as NAN reported visual intersections with high levels of sulphide mineralization (up to 85%)…actual assay results to come…drilling continues…

MQ-13-026, the best-looking hole so far, intersected an 18.62 metre core length (156.7 m to 175.32 m) of sulphide mineralization averaging approximately 40 to 45% total sulphides, including numerous sections containing 65% to 80% sulphides, within noritic host rocks…the intensity of sulphide mineralization at Imiak Hill is increasing with depth, typical for nickel sulphide deposits as the strongest mineralization is usually at the bottom of the intrusive…the zones at Imiak Hill appear to be steeply dipping lenses or tubes and remain open at depth…if they have the grade, which appears quite possible given these sulphide percentages, the big question is – do they have the tonnage?…that obviously remains to be seen but this is going to be an interesting story to follow…historically, Imiak Hill was previously tested only by shallow and “inaccurately oriented drilling based on geophysical interpretation”, according to NAN…

NAN opened at 21 cents Friday, climbed as high as 38 cents, and then retraced to close at 27 cents (up 8.5 cents or 46%)…total volume (all exchanges) was 5.1 million shares…we asked John to produce a couple of charts to give us some potential insight into Friday’s trading as well as the bigger overall picture…

Friday (Aug. 23) Intra-Day NAN Chart

There was down momentum most of the day Friday in NAN after the initial spike to 38 cents…perhaps not unusual given the markets we’ve all experienced the last year – certain traders/investors were probably content just to lock in some decent profits…there’s immediate resistance at 29/30 cents based on Friday’s trading…

NAN 2.5-Year Weekly Chart

The longer-term chart shows Fibonacci support for NAN at 25 cents…that will be an important level to watch this morning along with the 30-cent area…there has been consistent sell pressure in NAN since October of last year, but this could be ready to reverse to buy pressure…note the bullish “W” pattern in the RSI(14) which has plenty of room to move higher…

Note: Jon holds a share position in NAN.  John and Terry do not.

TSX Venture Exchange and Gold

Editor’s Note: Morning Musings Monday will be posted at 4:00 am Pacific followed by an updated version at approximately 8:00 am Pacific.

Venture Exchange

A week ago we stated that the case for a powerful Venture move continued to strengthen.  Indeed, an important breakout occurred Friday as the Index finally pushed through its 100-day moving average (SMA) – it has been below that level since November of last year – and the next immediate target is major resistance at 970.  Significantly, Friday’s move had some volume behind it – the strongest in more than 4 months.  On 2 occasions over the spring, the Venture failed in an attempt to overcome The Great Wall at 970.  What’s different about this occasion, however, is that sentiment has changed in the Gold and commodity markets, the Venture’s 50-day SMA has just reversed to the upside which is adding fresh fuel to its gas tank, and seasonal factors are highly favorable.  Historically, September is Gold’s best month of the year and it’s also typically a busy time on the exploration front in terms of both results and the commencement of programs.

British Columbia is 1 region that’s particularly hot, another very positive factor for the Venture, and 1 event the market is eagerly anticipating this coming week is the official closing of Pete Bernier’s Prosper Gold (PGX.H, TSX-V) qualifying transaction regarding the Sheslay Cu-Au Porphyry Project in the northwest part of this mineral-rich province.  With conditional approval for the QT already granted by the Exchange, Prosper Gold is slated to begin trading during the 1st week of September.  We fully expect PGX to be a market leader given the credibility of Bernier and his team, plus the fact they are going to instantly hit the ground running with a major drill program.  As we’ve been reporting for a couple of months, after extensive research and discussions with numerous geologists, prospectors and others in the industry, the Sheslay River Valley has the potential to rapidly develop into Canada’s premier Cu-Au porphyry play.  Bernier and award-winning geologist Dirk Tempelman-Kluit are taking over an advanced exploration project featuring a minimum of 5 porphyry bodies (how many more will they find?) with mineralization open in every direction.  And this system has not been tested at depth.  It’s this type of situation that will bring excitement, confidence and investors back into the market.  This group knows how to execute in every way, as they demonstrated with Richfield Ventures a couple of years ago when their multi-million ounce Gold discovery at Blackwater in central B.C. was bought out for half a billion dollars by New Gold Inc. They understand how to find a world class deposit, and Bernier has all of his Richfield team behind him at Prosper Gold.

The Venture jumped 12 points Friday to close at 947, a gain of 7 points for the week, after Gold surged to a 9-week high while Silver closed above $24 an ounce.  Copper and Crude Oil both remain firm, providing additional support for the Venture.  One of Friday’s volume leaders was North American Nickel Inc. (NAN, TSX-V) which jumped 46% to close at 27 cents after announcing it had intersected an 18.62-metre core length of sulphide mineralization averaging approximately 40% to 45% total sulphides, including numerous sections containing 65% to 80% sulphides, within noritic host rocks at the Imiak Hill Nickel-Copper-Cobalt zone on NAN’s 100%-owned Maniitsoq Project in Greenland (more on this story Monday).  Positive exploration results like this are critical for the Venture, and additional exciting developments elsewhere (B.C., other jurisdictions) would create the sparks that could really ignite this market.

Below is John’s updated Venture chart.  Everything is pointing toward an immediate challenge of the 970 area.  It’s increasingly looking like the 859 late June low, which coincided with Gold’s low around $1,180, was the Venture’s final bottom in a 2+ year bear market (a 65% plunge from the early 2011 high).  The upcoming rising tide will not lift all boats.  Investors need to focus on companies with that have cash, high quality properties, and management teams that can execute both on the ground and in the market.

Chart Of The Week

This is a new feature – our Chart of the Week.  John has spotted some incredible opportunities, particularly in recent weeks and months, and we’re so fortunate that he’s able to share his special insight with us and our readers.  Below is a 10-year monthly chart for Garibaldi Resources (GGI, TSX-V) that we posted yesterday – this also bodes well for the Venture, we believe.

This is a powerful, eye-opening chart, plain and simple.  GGI’s bullish technicals include a critical +DI/-DI crossover (the 1st time this has occurred in GGI since late 2009 prior to a major upside move in the stock) and 200 and 300-day moving averages that have just reversed to the upside.  RSI(14) has broken above 50, shows strong up momentum and has plenty of room to move higher. GGI has also staged a key breakout above 12 cents which had been resistance for about 14 months.

While Garibaldi has an impressive portfolio of properties in Mexico and a proven track record in terms of creating value there, what’s powering GGI right now is the growing realization of the strategic importance and geological potential of its 175 sq. km Grizzly Property contiguous to the western and southern borders of Prosper Gold’s Sheslay Project (70 sq. km).  The combined 245 sq. km area, at the top of B.C.’s prolific Golden Triangle and on trend with major deposits/mines to the south, features the important Mount Kaketsa Pluton, a “heat engine” believed to be driving mineralizing fluids.  Kaketsa originates on Garibaldi’s 100%-owned ground (still very under-explored) where there are numerous known Cu-Au occurrences and large anomalies (airborne magnetic and soil) similar to those seen on the Sheslay.  GGI has a strong management and geological team, and we expect they will take full advantage of the opportunity that Bernier’s arrival on the scene has created.  As we mentioned, this has tremendous potential to rapidly develop as Canada’s most exciting Cu-Au porphyry play given the players involved and the geology of the area.  As always, perform your own due diligence.

Gold

Gold finished the week on a powerful note, pushing convincingly through its 100-day SMA with a $22 gain Friday.  Bullion closed up $21 for the week at $1,398, setting the stage for a potential near-term breakout above the $1,400 technical and psychological resistance.  Given the bullishness we’re seeing in the Venture and Gold stocks in general, it’s our belief we will see Gold power through $1,400 and ultimately take a run at stiffer resistance – the previous support band between $1,550 and $1,600.  Gold, which has likely already taken into account any imminent slow scaling back of the Fed’s $85 billion a month bond buying program (still very questionable if the Fed starts “tapering” in September), is currently benefiting from a variety of factors including a drying up of ETP selling, short-covering, impressive Asian demand, and strong Oil prices.  The U.S. debt ceiling will likely soon have to be increased, and events in the Middle East should also be supportive for Gold.

Below is a 3-year weekly Gold chart from John.  Note that sell pressure, dominant all year, has ended.  RSI(14) is showing strong up momentum and the +DI indicator is rising quickly, leading us to believe there could soon be a bullish +DI/-DI crossover.

The Seeds Have Been Planted (And Continue To Be Planted) For The Next Big Run

There’s no better cure for low prices than low prices.  The great benefit of the collapse in Gold prices this year is that it forced producers to learn to become much more lean and mean in terms of their cost structures. Among many others, Barrick Gold (ABX, TSX), the world’s largest producer, said it may sell, close or curb output at 12 mines from Peru to Papua New Guinea where costs are higher.  Producers, big and small, have started to make hard decisions in terms of costs, projects, and rationalizing their operating structures.  Exploration budgets among both producers and juniors have also been cut sharply.  In addition, government policies across much of the globe are making it more difficult (sometimes impossible) for mining companies to put Gold (or other) deposits into production, thanks to the ignorance of many politicians and the impact of radical and vocal environmentalists.  Ultimately, all these factors are going to create a supply problem – think about it, where are the next major Gold deposits going to come from? On top of that, a recent Mineweb study shows grades have indeed fallen significantly just over the past decade.  For instance, grades in the South African Gold sector fell from an average of 4.3 grams per metric ton in 2002 to an average of 2.8 grams per metric ton in 2011.  It doesn’t take a rocket scientist to figure out that the next huge bull market in Gold stocks is just around the corner due to demand-supply dynamics, much leaner producers who will suddenly become earnings machines, and a junior market that will be healthier simply because a lot of the “lifestyle” companies sucking money out of investors will simply disappear or get taken over by individuals or groups who are actually competent and serious about building shareholder value.   A healthy “cleansing” in the market has been taking place.  As this continues, more and more seeds are being planted for an incredible future move in well-managed Gold producers and explorers that could make the dotcom bubble look like a tea party.  As for the juniors, focus on the 10% to 15% of companies that have the ability to execute both on the ground and in the market – companies that have the properties, the cash, the management and the skills to make discoveries that majors will buy.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, the long-term bull market in Gold has been 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, has had a huge impact on bullion.  Despite this year’s drop, the fundamental long-term 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, a Fed balance sheet now in excess of $3 trillion and expanding at $85 billion a month, money supply growth around the globe, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand (especially from China), emerging market growth, geopolitical unrest and conflicts…the list goes on.  However, deflation is prevailing over inflation in the world economy and this had a lot to do with Gold’s plunge during the spring below the technically and psychologically important $1,500 level, along with the strong performance of equities which drew money away from bullion.  June’s low of $1,180 may have been the bottom for bullion – time will tell.  We do, however, expect new all-time highs as the decade progresses.  There are many reasons to believe that Gold’s long-term bull market is still intact despite this major correction from the 2011 all-time high of just above $1,900 an ounce.

Welcome to our site, or at least the initial version of it!  BMR has been online for almost 4 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 a great deal on the Gold and Silver markets 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, Silver and Copper 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 intent is to provide you with information that you can use as part of your own due diligence.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. 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. 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.  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 perspective (His money that we have been given stewardship of), He will bless you.  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.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.