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Gold is trading near its high of the day – up $6 an ounce at $1,328 – as of 8:00 am Pacific…it fell as low as $1,315 overnight...Silver is looking good, up 13 cents at $22.48…Copper is up 2 pennies at $3.29…Crude Oil has added 54 cents to $103.57 while the U.S. Dollar Index is down slightly at 79.87…

China’s net Gold purchases from Hong Kong continued at a brisk pace in August (above 100 tonnes for a 4th straight month) as strong demand for jewellery and bars continued…net Gold flows into China – excluding imports by Hong Kong from China – hit 110.505 tonnes in August, compared with 116.385 tonnes in July, data from the Hong Kong Census and Statistics Department showed…China does not publish Gold trade data…the numbers from Hong Kong – a main conduit for Gold into China – give the best picture of the country’s trade of the precious metal…Chinese demand has been very strong this year, somewhat offsetting record outflows from Gold-backed ETP’s…China’s net Gold imports from Hong Kong have totalled 744.818 tonnes for the first 8 months of the year…they hit a record high of 136.185 tonnes in March before slipping in April due to a supply crunch…

Debt Ceiling Issue

As concerns begin to build regarding the U.S. debt ceiling, the yield on 1-month Treasury bills has risen to its highest level since late last year – 0.16%, up about 14 basis points from where it was just a week ago and above the 0.03 percent yield on 3-month bills…

New York Times writer Andre Ross Sorkin made a couple of interesting points this morning regarding the debt ceiling issue:  “Nobody believes the country will actually exceed the debt limit — which is exactly why it might happen.  Here’s the perversity of Wall Street’s psychology: The more Wall Street is convinced that Washington will act rationally and raise the debt ceiling, most likely at the 11th hour, the less pressure there will be on lawmakers to reach an agreement. That will make it more likely a deal isn’t reached.”

Also with regard to the debt ceiling, ETF Securities stated today: “Political misjudgment on this issue would likely not just severely damage the U.S. economy and the longer term faith in the U.S. government’s commitment to repaying its debt, but also would likely have large negative reverberations across global financial markets and economies. With the price of Gold down about 22% this year and trading near its all-in cost of production, and the S&P 500 up nearly 19% and near its all-time high, some asset reallocation into Gold as a hedge against worst case debt scenarios and inflation temptations may be prudent.”

The Wall Street Journal reported this morning that top Wall Street executives are warning that any effort to pay interest on U.S. debt before other obligations such as Social Security, a strategy some lawmakers think would placate bond investors if the government breaches its borrowing limit, would pose severe risks to financial markets and the economy…in recent meetings with Republican lawmakers and Obama administration officials, chief executives of the nation’s largest financial institutions said putting some payments ahead of others would create insurmountable uncertainty for investors, drive up borrowing costs and cause market disruptions, according to people familiar with the meetings…

Rising Inflation Expectations?

Plenty of talk about deflationary pressures over the past couple of years, but check out the chart below from the Cleveland Fed that Frank Holmes commented on in his weekly Investor Alert at www.usfunds.com…according to a release by the Cleveland Fed, a recent increase in Fed implied inflation, measured by the spread between Treasury Inflation Protected Securities (TIPS) and similar maturity Treasury Notes, is signaling an imminent rise in inflation…such an event would certainly catch Gold bears by surprise…inflation expectations had been trending lower since late 2011 after Gold hit a high of just over $1,900 an ounce…is this just a short-term blip or the start of something more significant?…

Today’s Markets

The Shanghai Composite shrugged off the circus in Washington and posted a strong gain overnight – 24 points to close at 2198 – as trading in China resumed following the week-long Golden Week holiday…after a horrible June which coincided with lows of 859 and $1,179 in the Venture and Gold, respectively, the Shanghai is looking strong and appears to have started “Wave 5” of a 5-Wave Motive Phase after hitting RSI support at 50…

Japan’s Nikkei average erased early losses and closed 41 points higher at 13895…European shares were down modestly today…

In New York, the Dow is facing the prospect of its 11th losing session out of 14…as of 8:00 am Pacific, the Dow is off 61 points…over the last 13 sessions it has fallen 741 points or 4.7%…in Toronto, the TSX is relatively unchanged through the first 90 minutes of trading while the Venture is down 3 points at 945…

Mason Graphite Inc. (LLG, TSX-V) Update

Last week we pointed out that Mason Graphite (LLG, TSX-V) was looking very bullish technically and appeared poised to finally break out of a downsloping channel in place for most of this year…confirmation regarding that is still required but it looks as if that could come today…LLG is also drawing on a couple of big names – Larry King and fund manager and media commentator Jim Rogers – to attract a wider audience to its story…the company posted 2 video interviews on its web site (www.MasonGraphite.com) this morning featuring President and CEO Benoit Gascon, 1 with King and the other with Rogers…LLG is advancing its flagship Lac Gueret Project in northeastern Quebec and is working on an updated NI-43-101 resource estimate…

King and Rogers may very well give LLG the kick that it needs to accelerate a reversal in the stock that we first pointed out last month…as of 8:00 am Pacific, LLG is up 3 cents at 49.5 cents on volume of over half a million shares…it has been as high as 52 cents this morning…

Azincourt Uranium (AAZ, TSX-V) Update

Azincourt Uranium (AAZ, TSX-V) provided an update this morning on its PLN Project in the Athabasca Basin, a JV with Fission Uranium (FCU, TSX-V) which is the operator…a VTEM Max survey has identified a new north-south trending conductive basement package in northern PLN…this represents the possible extension of the Saskatoon Lake Conductor system which hosts the Shea Creek uranium deposits…a ground EM survey (20 km grid) is planned for central PLN, while a 10.5 km ground EM survey is planned for southern PLN to target a prospective trend parallel to the PLS discovery trend…a 2500 to 3000-metre diamond drilling program is scheduled for winter 2014 on existing and some newly generated targets in the central and southern PLN project area…AAZ, which has just 28 million shares outstanding, closed at 22 cents yesterday…10 million shares from a private placement at 15 cents earlier this year become free-trading October 19…

Allied Nevada Gold Corp. (ANV, TSX) Turning The Corner?

Allied Nevada Gold (ANV, TSX and NYSE) reported record quarterly production from its Hycroft Mine in the 3rd quarter as processing operations improved significantly…Hycroft churned out 52,198 ounces of Gold and 184,070 ounces of Silver in the 3rd quarter, and the company believes it’s on track to achieve full-year production and sales guidance of 175,000 to 200,000 ounces of Gold and 900,000 to 1.1 million ounces of Silver in 2013…ANV, which traded as high as $31 at the beginning of this year, jumped 28% yesterday to close at $5.00…the company expects to provide 3rd quarter financial results during the week of November 4…

Adventure Gold Inc. (AGE, TSX-V)

One the survivors of the 2+ year Venture bear market, and a company that will ultimately thrive again in our view, is Adventure Gold (AGE, TSX-V) which has all the ingredients – management and geological expertise, working capital and solid financial backers, and very prospective properties – to succeed long-term…over the past few months the stock has been showing signs of bottoming out in the low-to-mid teens as shown in John’s 15-month weekly chart…as always, perform your own due diligence, but this is the time to be excited about companies like this…

Magor Corp. (MCC, TSX-V)

We don’t often write about technology plays on BMR, but Magor Corp. (MCC, TSX-V) is a company with a simple story, powerful people behind it and a software solution that should drive impressive revenue and earnings growth over the next couple of years…Magor, which is boosting its treasury with a 25-cent financing that’s expected to close in the coming days, is gearing up for an imminent full launch of its Aerus cloud-based visual collaboration solutions…the company has been successful at securing service trials from more than 20 carriers and solutions integrators across the globe aimed toward deploying Aerus into their markets…approximately half of these opportunities, according to the company’s September 27 news release, are large Tier 1 and Tier 2 carriers…these contracts are expected to transition Magor into a recurring revenue model that will bring significant predictability into the company’s cash flow going forward…

Below is a 6-month daily chart from John (Magor has only been trading since March when it raised $6 million in an IPO at 60 cents)…the final 3 months of 2013 should be turnaround time for this company whose President and CEO is Mike Pascoe, well known for his ability to build shareholder value in the telecommunications sector…

Note: John, Jon and Terry do not hold share positions in LLG, AAZ, ANV or AGE.  Jon holds a share position in MCC.

Gold has traded between $1,308 and $1,330 so far today as it starts a new week on a positive note…as of 6:50 am Pacific, bullion is up $15 an ounce at $1,326…Silver is up 61 cents to $22.35 (see updated Silver charts at bottom of this morning’s report)…Copper is down 3 pennies at $3.25…Crude Oil has weakened by $1.78 a barrel to $102.06 while the U.S. Dollar Index is off nearly one-tenth of a point to 79.99…the Dollar Index hit an 8-week low last week (79.63) and has declined for 4 straight weeks…strong support is at 79…

In the summer of 2011, the prospect of a U.S. debt default sent Gold surging by more than $300 an ounce to an all-time high of $1,924…Gold has fallen out of favor with many investors this year, but it could easily regain its luster in the coming weeks depending on how things play out in Washington in this latest version of the debt ceiling battle…the partial U.S. government shutdown is in its 7th day but that’s just a minor irritant compared to the bigger issue of whether the government can keep meeting its debt obligations by the 3rd week of this month if the current standoff between Democrats and Republicans continues…what’s more complicated about this year’s negotiations is how Obamacare, a regulatory and logistical nightmare but President Obama’s signature legislation, is very much wrapped up in the debt ceiling debate…House Speaker John Boehner stood his ground yesterday alongside the most conservative Republicans in Congress, insisting that the House would not vote to finance and reopen the government or raise the nation’s borrowing limit without concessions from President Obama on the health care law…“The fact is, this fight was going to come one way or the other,” Boehner said on the ABC News program “This Week’, adding, “We’re in the fight.”

Gold Chart:  Technical Case For Move Into $1,500’s

There are obviously different potential scenarios for Gold this quarter but here’s one of them:  This chart from John shows how Gold could be in the early stages of a strong “C Wave” move from last week’s low of $1,277 which coincided with important Fibonacci support in the $1,270’s…this move could result in Gold climbing back up to the $1,500 – $1,550 area where it would then meet very stiff resistance as this level of course is where bullion broke down from in the spring…

Many North Americans have a tendency to think of the world in very limited terms, and underestimate important global developments…the pronounced shift in physical demand for Gold from West to East this year, from weak hands into safer hands, is a critical theme and has to be viewed as a very positive long-term development for bullion…China’s physical Gold buyers have largely replaced Western ETF investors as the primary underpinning of demand…in addition to encouraging its own citizens to accumulate Gold, the Chinese government itself has been aggressively stockpiling bullion – perhaps as a plan to back up its currency…Gold has clearly become a high priority for China’s economic development…

As Frank Holmes pointed out in his weekly Investor Alert (www.usfunds.com) over the weekend, in a recent publication titled “Gold: The Silk Road Redux,” Kitco CEO Ross Norman addressed the implications of Gold migration to the East…his main argument is that Gold migration from Western to Eastern hands may ordinarily be thought of as price neutral, but in fact that isn’t so…Asian buyers tend to purchase physical Gold as a form of long-term savings, and as such, they “do not sell when the price goes up, nor do they sell in a panic when the price drops,” Ross pointed out…to put it plainly, according to Ross, the “Chinese market is a lobster pot for Gold – easy in, difficult out – as the country has a strictly enforced non-export policy for Gold.”

The Chinese appetite for Gold continues unabated and the country will become the world’s top Gold consumer this year, overtaking India…

India Gold Imports Expected To Pick Up In Q4

India’s official Gold imports, which have been at a virtual standstill since August, are expected to pick up during the 4th quarter, according to the chairman of the All India Gems and Jewellery Trade Federation…“The Gold import is presently at a standstill, but it may pick up in the next 3 months ’till December to 150 tonnes and we expect total imports to touch 725 tonnes in FY’14,” stated Haresh Soni at the Bombary Bullion Association summit…the country imported 354 tonnes of Gold between April and September 2013, of which 118 tonnes came in April, 162 tonnes in May, 31 tonnes in June, 41 tonnes in July, and virtually nil in August and September…

In July, the Reserve Bank of India asked banks and dealers who import the precious metal to ensure that 20% of their imports were re-exported…due to the ambiguity on how the government expected them to meet such a requirement, banks and state-run trading agencies practically halted Gold imports since mid-August…at the same time, India banned the sale of Gold coins, medallions and dores without a license from the foreign trade office in an extreme effort to curb Gold imports…as a result, August imports of bullion fell 70% from July’s figure…clarification with regard to the government’s policies is expected to accelerate the flow of imports in Q4, albeit they’ll still be well below the blistering pace of April and May…India, which is about to lose its status this year to China as the world’s largest consumer of Gold, imports nearly all of the yellow metal it consumes…according to some estimates, Indian households are hoarding close to 20,000 tonnes of Gold worth some $1 trillion, representing nearly half of the country’s 2012 GDP…

India and China could account for potentially all of 2013’s global new Gold production…

If you haven’t read it yet, we suggest you check out a recent excellent article by Jan Skoyles – “Uncovering China’s Rush For Gold“:

http://www.resourceinvestor.com/2013/10/03/uncovering-chinas-rush-for-gold

Global Economic Recovery Back On Track: Tiger Index

The latest update of the Brookings-Financial Times Tiger Index shows that the global economic recovery is back on track, although it remains slow and unsteady…the recovery is being borne along by surging business and consumer confidence in advanced economies, and stabilization in the growth of emerging markets…however, it may be premature for policymakers to declare victory as the recovery is still tenuous and just a shock or 2 away from turning into another slump – a point not lost on Ben Bernanke and the Federal Reserve…the earliest the Fed will look at potential “tapering”, our view, is at its December meeting – and they may very well wait until sometime in 2014…so much for Goldman Sachs’ insistence that tapering would begin by September, which was a key factor underlining their argument last spring for weaker Gold prices…

Today’s Markets

Japan’s Nikkei average hit a 1-month low overnight, falling 171 points to close at 13853…markets in China resume tomorrow after a week-long holiday…European shares sank to 4-week lows today as concerns grows over the U.S. political stalemate…

The Dow, which has declined in 9 out of the past 12 sessions, is off 113 points through the first 20 minutes of trading today after a moderate rally Friday…the TSX is up 8 points while the Venture has backed off from resistance at 955 – down 5 points at 950…the Venture has excellent support, however, and has also shown a tendency recently to strengthen during the week…

Gold Standard Ventures Corp. (GSV, TSX-V)

Gold Standard Ventures (GSV, TSV-V) reported some interesting results from its Railroad Project in Nevada last Wednesday…the 1st hole drilled by GSV at a target (Bald Mountain) 1500 metres southwest of North Bullion intercepted Gold and Copper mineralization in oxidized material – the most significant Gold oxidized mineralization found to date in the northern Railroad Project area…RRB13-1 intersected 56 metres grading 1.56 g/t Au (between depths of 206.4 m to 262.5 m) including an interval of 7.3 metres grading 5.66 g/t Au…below this Gold intercept, RRB13-1 returned a separate zone of 23.3 m of 0.40% Cu…historically, the Central Bullion area where Bald Mountain is located has been known primarily as a base metal and Silver camp…assays are pending from another hole drilled 1200 m SW of RRB13-1, while a 3rd hole 600 m south of RRB13-1 will commence shortly…the Railroad Project hosts 6 miles of the Bullion Fault Corridor within the prolific Carlin belt, adjacent to Newmont Mining Corp.’s (NMC, TSX) Rain and Emigrant mines near Elko…the North Bullion deposit, which was essentially a blind discovery with no surface indication, remains open in all directions…

Below is a 2.5-year weekly GSV chart from John…notice the bullish “W” pattern in the RSI(14) and how the stock closed at a down trendline in place since last year…a double bottom reversal appears to have occurred here…GSV is up 2 pennies at 72 cents as of 6:50 am Pacific…

Canada Carbon Inc. (CCB, TSX-V) Updated Chart

Canada Carbon Inc. (CCB, TSX-V) showed strong support at the 20-cent level as expected Friday…intra-day, CCB fell as low as 18.5 cents before rebounding to close up 2 pennies at 24 cents…strong support should persist at the 20-cent level (this could consolidate for a while longer) which is also the 50-day rising moving average (SMA)…CCB has been a volatile stock – certainly not for the faint of heart – but pullbacks over the last several months have presented excellent buying opportunities for short-term traders…CCB is unchanged at 24 cents after the first 20 minutes of trading today…

Madalena Energy Inc. (MVN, TSX-V) Updated Chart

Madalena Energy (MVN, TSX-V) continues to be a strong performer…it has doubled since late June and hit a fresh 52-week high last week on strong volume…over 28 million shares have traded over the last 8 sessions…Madalena released encouraging results a week ago from a 3-day production test of its Ostracod oil well in the Paddle River area of west-central Alberta, and it expects to bring this horizontal well on stream this month…

Below is a 2.5-year weekly chart from John…strong support in the low-to mid-40’s…MVN is down 2 pennies at 48 cents as of 6:50 am Pacific…

Updated Silver Charts

Short-Term Silver Chart

Long-Term Silver Chart

Note: John, Jon and Terry do not hold share positions in GSV, CCB or MVN.

Preliminary airborne mag survey data over the northwestern portion of its 100%-owned Grizzly Property, including the Kaketsa pluton “heat engine”, has greatly encouraged Garibaldi Resources (GGI, TSX-V) which has expanded a reconnaissance and sampling program on the property as reported by the company last week.  This initial survey data, together with an earlier Fugro survey that was flown over both the central part of the Grizzly and the southern half of what’s now Prosper Gold’s (PGX, TSX-V) Sheslay Project, has confirmed multiple targets over an incredible 15 km distance at the Grizzly – from “Grizzly West” to “Grizzly Central”.  Garibaldi geologists have identified 2 parallel faults from Grizzly West to Grizzly Central that appear to be related to Cu-Au porphyry mineralization on both the Grizzly and the Sheslay.

BMR Interviews GGI President and CEO Steve Regoci

Expect the Sheslay Valley story to heat up in the very near future as Garibaldi reports more on its current exploration activities, while pending results from 3 important drill holes on the Sheslay have the potential to instantly build a very large audience for both Prosper Gold and Garibaldi. “If they verify that this mineralization extends to depth, then we’re off to the races,” GGI President and CEO Steve Regoci told BMR in an extensive interview.

Prosper Gold’s first 3 holes at the Sheslay were all very good and confirmed historical numbers.  However, any 1 of the last 3 Phase 1 holes, which all went to depths never previously tested on this property, could be a “game-changer”.  As PGX reported last week, the 4th hole (S027) intersected mineralization from surface to 598 metres.  Grade of course will be key, but we doubt PGX would have drilled that deep unless they had good reason to – in other words, the “visuals” may have been very impressive.  Assays are expected soon.  Keep in mind, this is the same group that discovered the multi-million ounce Blackwater Gold deposit in central B.C. and saw their stock zoom from pennies to over $10 a share as a result (Richfield Ventures was bought out by New Gold Inc. (NGD, TSX) for half a billion dollars in 2011).  Pete Bernier and Dr. Dirk Tempelman-Kluit know what they’re doing.

Regoci:  “Earmarks Of A Major Discovery”

Regoci likes how things are shaping up at both the Sheslay and the Grizzly, and commented specifically on PGX’s initial holes (click on the forward arrow to listen to this 2-minute excerpt – requires Adobe Flash Player, version 9 or above):

[audio:https://bullmarketrun.com/wp-content/uploads/2013/10/Regoci-GGI-Clip-1.mp3|titles=Regoci GGI Clip 1]

Grizzly West:  Early Focus For GGI

Historical surface sampling by Corona and Kennecott in the Grizzly West area returned what would now be considered very impressive grades (Cu and Au), and this is where Garibaldi is currently following up on some of its own work that has outlined several areas of exposed porphyry Copper mineralization and sizable, open-ended Copper-in-soil anomalies.  To listen to Regoci’s comments (1-minute excerpt) on this intriguing area, click on the forward arrow below:

[audio:https://bullmarketrun.com/wp-content/uploads/2013/10/Regoci-GGI-Clip-2.mp3|titles=Regoci GGI Clip 2]

Much more on the Grizzly from Regoci during the upcoming week.  Garibaldi is moving quickly on 2 major fronts – B.C. and Mexico.  We’ll be exploring important developments in Mexico (drilling, royalty income from coal program, graphite discovery) with Regoci as well.

Note: Both John and Jon hold share positions in GGI.  Jon also holds a share position in PGX.

TSX Venture Exchange and Gold

Despite Gold’s $25 drop this past week, along with a 1.2% plunge in the Dow and a minor pullback in the TSX amid investor nervousness over the partial U.S. government shutdown and the debt ceiling issue, the Venture held its own with a slight weekly gain (2 points) thanks to Friday’s 11-point advance – matching the 2nd-best single-day performance by the CDNX in more than 2 months.

This is the Venture’s 4th attempt since September to push through resistance at 955.  RSI(14), currently at 59% on John’s 3-month daily chart below, is showing up momentum after forming a bullish “W”, but volume and buying pressure both must increase in order for the Index to overcome the 955 resistance and the critical 970 level.

What’s interesting is that each time the Venture has fallen slightly below its supporting EMA(20), as it did again last week, it has quickly reversed to the upside.  This kind of resilience is very encouraging.  In addition, the Venture’s 100-day moving average (SMA) has flattened out and appears ready to reverse to the upside – this would provide fresh fuel for an assault on the 970 level.

Venture-Gold Comparison

Changes in established patterns are always good clues as to future market developments/trends.  What has been particularly intriguing recently is how the Venture has been holding steady and even moving slightly higher while Gold has been under some pressure since touching the $1,430’s in late August.  The Venture has proven to be a very reliable leading indicator of the future direction of Gold prices (it turned lower several months ahead of bullion in 2011, for example).   If Gold were about to collapse again, as some pundits are suggesting, we just wouldn’t be seeing the Venture hold up like it has these past several weeks.  It would have broken down.

One could argue, actually, that the Venture is telling us Gold is gearing up for a substantial move higher – imminently, or a little further down the road.  Only time will tell.  But the pattern in the relationship between the Venture and Gold at the moment is unlike the pattern witnessed during the 2.5-year period beginning in early 2011.  Below is a chart from John confirming this (note the circled areas).  Whenever Gold has weakened, so too has the Venture – except now.  This is a Venture–Gold-CRB-Dow monthly comparative since the beginning of 2011 (Gold has been moving in the opposite direction of the Dow for most of this year), and it’s additional evidence that the Venture found an important bottom in late June.

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

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 (at least most of them) to start 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 small universe of companies that have the ability to execute both on the ground and in the market – companies that have the cash, the expertise, the properties and the drive to make discoveries that majors will buy.

Gold

Gold had a volatile week but managed to hold important Fibonacci support in the $1,270’s on Tuesday when it rather mysteriously plunged more than $40 an ounce.  Bullion closed Friday at $1,311, down $25 for the week.  Support and resistance levels are very clear as you can see on John’s 3-month daily chart.

In his weekly Investor Alert at www.usfunds.com, Frank Holmes brought up an interesting point regarding Tuesday’s sell-off.  “What has become evident is that Chinese buying is in fact very supportive of Gold prices. In an episode this past Tuesday – the first day of the market holiday closure in China – a big seller offered 10,000 futures Gold contracts for sale at a time of the day when European and U.S. buyers are not at their desks, leaving only Asia-ex China buyers to cross the sizeable trade. The resulting $41 per ounce price decline had the appearance of market manipulation.”

The Gold seller Tuesday was either desperate and stupid, or indeed this was market manipulation.  Why wait until Tuesday when a holiday starts in China to unload 10,000 futures contracts?  Anyway, Gold found support and recovered strongly the next day.

Silver fared better than Gold last week, losing only 4 cents to finish at $21.78 (John will have updated Silver charts Monday morning).  Copper fell a penny to $3.28.  Crude Oil gained nearly $1 a barrel to close at $103.84 while the U.S. Dollar Index slid nearly half a point to finish at 80.13.

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 $3.5 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, deflationary concerns around the globe and the prospect of Fed tapering by the end of the year 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 $1,179 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 4 years and strictly through word-of-mouth we have built a loyal following.

We’re continuing with our plans to ultimately construct a very unique investment and money-management resource site that goes considerably beyond what we have now.  We focus a great deal on the Gold, Silver and Copper markets as well as trends in the global economy, in addition of course to the technical health of the TSX Venture Exchange (CDNX).  An important component of this site, as well, will always be original research on high quality junior exploration companies or small producers 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, and we are being more selective than ever in the current market environment.  We look for companies with the ability to execute both on the ground and in the market, who are determined to build shareholder value, which actually excludes most Venture stocks.  However, investors must understand that the companies we do put forward for our readers’ due diligence 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

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Gold has traded in a tight range so far today after a volatile week…as of 7:15 am Pacific, bullion is down $7 an ounce at $1,310…Silver is off 11 cents at $21.59..Copper is up 3 cents at $3.28…Crude Oil is 45 cents higher at $103.77 while the U.S. Dollar Index has recovered one-fifth of a point to 79.97…

House Republicans started a meeting at 7:00 am Pacific in Washington on this 4th day of the partial U.S. government shutdown (which means no jobs report today)…Speaker John Boehner is reportedly trying to unite Republicans around a plan to end the “slimdown”, raise the debt ceiling and achieve as many of the party’s top priorities as possible but most of his 232 caucus members can’t seem to agree on how to do that…Boehner has been telling Republicans that he won’t allow the U.S. to default on its debt, even if that requires Democratic votes, according to 2 Republican congressional aides…last month, Boehner outlined a debt-limit increase strategy that also included lighter regulations, cuts in entitlement programs and approval of the Keystone XL pipeline…

As unpopular as Congress might be at this time (or at anytime), there are many Republicans who believe the public is on their side in taking a hard stand on the debt ceiling – and they appear to be right…6 out of 10 Americans say “it is right to require spending cuts when the debt ceiling is raised, even if it risks default,” according to a September 26 Bloomberg poll…only 28% say “the debt ceiling should be raised when necessary, with no conditions.”

The U.S. will run out of borrowing authority October 17 and will have $30 billion in cash after that…the country would be unable to pay all of its bills, including benefits, salaries and interest, sometime between Oct. 22 and Oct. 31, according to the Congressional Budget Office…

Today’s Markets

Japan’s Nikkei average slipped 133 points overnight to close at 14024, a 5% loss for the week…Chinese markets resume Monday following the National Day holidays…European shares are up modestly in late trading overseas…

The Dow, after losing ground in 9 out of the last 11 sessions, has added 44 points through the first 45 minutes of trading…4 Federal Reserve officials are giving speeches today, so the market will be paying attention to what they have to say especially given the current situation in Washington…the TSX has gained 41 points while the Venture is up 3 points at 947…

TSX Chart Update

The biggest challenge for the TSX over the past couple of years has been to push above stiff resistance around 12900…several failed attempts have occurred, but perhaps this quarter the Index can overcome that hurdle..for over a year now, the TSX has traded in a 1200 point range between 11759 and last month’s high of 12965…yesterday, it closed 12 points above its rising 50-day SMA…RSI(14), currently at 55% on this 2-year weekly chart, needs to push through resistance at 60%…

Richmont Mines (RIC, TSX) Update

Richmont Mines (RIC, TSX) has commenced production at its Monique Mine, an open-pit operation 25 km east of Val-d’Or…Monique is expected to produce 4,500 ounces of commercial Gold production for RIC during this 4th quarter…the addition of 22,500 tonnes per month from this asset will translate into efficiency improvements and lower unit cost levels at the company’s Camflo Mill, which is currently operating at full capacity with material from Beaufor, the W Zone and Monique operations…the key to Richmont’s turnaround, however, will be its producing Island Gold Mine in Ontario where the company is outlining additional resources (high-grade) at depth…as John pointed out in a recent chart, RIC appears to have formed a double bottom and could be headed for a much better 2014…

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

We continue to keep a close eye on North American Nickel (NAN, TSX-V) which has made a discovery at its 100% owned Maniitsoq Project in Greenland (Nickel, Copper, Cobalt, PGM) with assays pending…a couple of days ago, the company announced that the Sentient Group has exercised 18,276,199 common share purchase warrants at a price of 21 cents per unit which adds almost another $4 million to NAN’s treasury…Sentinent now owns about 55 million NAN shares, representing approximately 39% of the 140,456,085 total NAN shares currently outstanding…

Technically, NAN has been following a very predictable pattern and found important support last week just above 30 cents…it closed yesterday up 4 cents at 42 cents…below is an updated 2.5-year weekly chart from John…as of 7:15 am Pacific, NAN is off half a penny at 41.5 cents…

Zenyatta Ventures Ltd. (ZEN, TSX-V) Chart Update

Some of the shine has come off Zenyatta Ventures (ZEN, TSX-V) recently with the stock plunging 21% so far in October after a 19% decline in September…yesterday, ZEN closed at its still-rising 200-day moving average (SMA) at $2.50 where there should be strong technical support…this is also in the immediate vicinity of an important Fibonacci retracement level ($2.45) as shown in John’s 6-month daily chart…RSI(14) has fallen to 25%, the lowest we’ve seen it since ZEN began its big run in the summer of last year…warning signs were flashing in July when very technically overbought conditions had emerged in ZEN, along with an RSI(14) negative divergence with price…critical support for ZEN is between $2.00 and $2.50…near-term resistance is around the $3 level…through the first 45 minutes of trading today, ZEN is up a penny at $2.51…

Macro Enterprises Ltd. (MCR, TSX-V) Updated Chart

Macro Enterprises Ltd. (MCR, TSX-V) has advanced for 5 consecutive trading sessions, and has doubled in value since we introduced the company to our readers just over 4 months ago…MCR is a construction and maintenance service provider to the energy and resource industries, and has reported net earnings per share of 61 cents through the first 2 quarters (ending June 30) of this fiscal year…it’s rare to find a Venture company that’s actually making money – and significant amounts of it – which is what initially drew our attention to MCR…

John’s 1-year weekly chart shows the stock has remained in high RSI(14) territory for most of the 12 months – a situation that sooner or later will have to correct itself…taking some profits off the table, therefore, would appear to be a wise move from our perspective…MCR is off a penny at $5.99 as of 7:15 am Pacific…as always, perform your own due diligence…

Note: John, Jon and Terry do not hold share positions in RIC, NAN, ZEN or MCR.

Gold has hovered between $1,302 and $1,320 so far today…as of 7:30 am Pacific, bullion is down $3 an ounce at $1,313 after posting its best day in 2 weeks yesterday…a big sell order rattled the bullion market Tuesday, driving it very close to important support in the $1,270’s, but sub-$1,300 Gold was too tempting to resist for some traders and investors yesterday…we’ll see if the yellow metal can consolidate at $1,300 and slightly above…yesterday’s rebound was encouraging…Silver is off 14 cents at $21.59…Copper is down 3 cents at $3.26…Crude Oil is off slightly at $103.89 while the struggling U.S. Dollar Index is relatively unchanged at 79.82…

It often takes a crisis to get something difficult and unpopular done, particularly in Washington which is so often in gridlock as it is now…that’s why we see a growing likelihood of the first-ever U.S. debt default in a couple of weeks…there were no breakthroughs during a midweek meeting at the White House between congressional leaders and President Obama late yesterday, and it seems that certain members of Congress just don’t fear the possibility of a default – they welcome it (or at least the imminent prospect of it) as a negotiating tool…as unpopular as Congress is, the Republicans should be able to get the public on their side in terms of the importance of Washington getting its fiscal house in order…it’ll be fascinating to see how this all plays out…one thing’s for sure – October is going to be a volatile month for Gold – the first 3 days of this 4th quarter have already demonstrated that…a dramatic move to the upside in Gold this month has to be considered a possibility…

The U.S. Treasury Department warned today that the economy could plunge into a downturn worse than the Great Recession if Congress fails to raise the federal borrowing limit and the country defaults on its debt obligations – a default could cause the nation’s credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket, according to the Treasury report released this morning…“As we saw two years ago, prolonged uncertainty over whether our nation will pay its bills in full and on time hurts our economy,” Treasury Secretary Jack Lew said in a statement. “Postponing a debt ceiling increase to the very last minute is exactly what our economy does not need – a self-inflicted wound harming families and businesses.”

Another excellent article by Mineweb’s Lawrence Williams this morning (“Gold Trading Or Gold Hoarding – Which Will Win Out?) at www.MineWeb.com…here’s just 1 paragraph of his argument…“China’s policy on this is not wholly transparent – it likes to keep the world guessing as to its true position.  There is a strong body of opinion that believes that China has been building its official Gold reserves substantially, but without announcing this.  What we do know for sure is that Chinese banks have been actively encouraging Chinese citizens to buy precious metals for some years now – and the Chinese banks are effectively arms of the state.  And the belief is that the Chinese state, which invented paper money and has a long history of reliance on Gold as the principal recognition of wealth, believes that the more Gold the state and its citizens can accumulate, the stronger its position will become in the world order.”

No COT Data During Partial U.S. Government Shutdown

The U.S. Commodity Futures Trading Commission will not produce its weekly COT report (Commitment of Traders) or other public reports while the U.S. government is in the midst of a partial shutdown, the agency says on its web site…the COT report is normally released on Friday afternoons…the CFTC is now operating with a skeleton staff of 28 out of 680 employees, it says…the remaining employees “are necessary to address an imminent risk to the safety of human life or the protection of property.”

Updated Gold Chart

Below is the 3-month daily Gold chart showing how bullion has found strong support at the Fib. 38.2% level ($1,277) with RSI(14) also bouncing off support…a test of resistance in the mid-$1,360’s should be expected…the key for Gold will be to overcome that barrier and then push through critical resistance at $1,400…

Accommodative Monetary Policy Needed For “Years To Come” – Top U.S. Central Banker

Slow growth and a weak jobs market suggest the U.S. economy will continue to need support from accommodative monetary policy for years to come, making reductions in stimulus inappropriate at this point, a top U.S. central banker said yesterday…Boston Federal Reserve Bank President Eric Rosengren said he “strongly and unequivocally” supported the Fed’s unexpected decision last month to maintain its $85-billion-a-month bond-buying stimulus, adding that reducing the program “would have been premature”…the Fed, which has kept short-term rates near zero since December 2008, has been buying Treasurys and mortgage-backed securities to push down long-term borrowing costs and encourage investment and hiring…“If the economy evolves as expected, policy should in my view include only a very slow removal of accommodation over the next several years – and that should only occur when the data ratify our forecast for an improvement in real GDP and employment,” Rosengren said in remarks to the Lake Champlain Regional Chamber in South Burlington, Vermont…

U.S. Dollar Index Updated Chart

As we pointed out recently, the U.S. Dollar Index broke below an up trendline in place for two-and-a-half years (that 2.5-year uptrend coincided of course with the Venture bear market) – a rather ominous development…the Dollar Index has very strong support at 79, but the trendline has now become major resistance and future rallies will have a very difficult time penetrating that…the Index peaked in late June/early July, right around the time Gold touched $1,179 and the Venture hit a low of 859…

Today’s Markets

Japan’s Nikkei average was relatively unchanged overnight, slipping just 13 points…Chinese markets remain closed for National Day holidays…however, China’s official services purchasing manager’s index (PMI) for September came out today…it jumped to a 6-month high, lifting optimism that the world’s 2nd-largest economy is on a path to recovery…the data follows the mainland’s official manufacturing PMI report earlier this week, which showed a rise in September factory activity…European shares are mostly higher in late trading overseas…

In New York, the Dow is down 125 points as of 7:30 am Pacific…the TSX is 52 points lower while the Venture is bucking the trend, up a point to 948…

Venture Company Notes

Fission Uranium Inc. (FCU, TSX-V) has announced a $10 million bought-deal financing (closing date on or about October 24)…a syndicate of underwriters, led by Dundee Securities, has agreed to purchase 6.67 million subscription receipts, exchangeable into flow-through common shares of the company, by way of a private placement on a bought-deal basis, subject to all required regulatory approvals, at a price per subscription receipt of $1.50, for total gross proceeds of $10,005,000…the gross proceeds of the offering shall be deposited in escrow on the closing date and will be released from escrow to the Company immediately following the closing of the Alpha Minerals Inc. (AMW, TSX-V) transaction and after the spinout of the company’s non-Patterson Lake South assets…

Pine Cliff Energy Inc. (PNE, TSX-V) plans to raise approximately $20 million at $1.10 per share with the offering being conducted by a syndicate of underwriters and scheduled to close in about 3 weeks…

Caribou King Resources (CKR, TSX-V) is one of the most active Venture companies this morning…CKR reported that a prospecting team located a massive graphite zone exposed at surface at its TAC Property in Quebec…it was sampled by a portable drill and recovered 34 cm of graphite schist followed by 30 cm of mostly graphite…drilling was stopped for mechanical reasons, terminating in graphite at 74 cm…core samples have been submitted for analysis…the massive graphite sample correlates with a conductor identified from ground geophysical surveys…CKR is up a penny at 8.5 cents on volume of over 400,00 shares as of 7:30 am Pacific…

CDNX Updated Chart

The Venture has held up extremely well on some significant down days for Gold over the past month or so, and Tuesday was the latest example when bullion plunged by nearly $40 an ounce yet the Venture held steady…that’s usually a very positive sign for both the Venture and Gold…

Below is an updated 3-month daily Venture chart from John…notice the recent pattern with the Venture rebounding quickly anytime it has fallen below its EMA-20…the trend remains bullish, and RSI(14) has started to climb again after touching support…this is like a slow-moving train but at least it’s going in the right direction…patience should pay off…

Madalena Energy Inc. (MVN, TSX-V) Updated Chart

Madalena Energy (MVN, TSX-V) continues to look strong with the mid-40’s now providing solid technical support…excellent support as well at the weekly EMA(20)…this is definitely a play to watch closely in the coming weeks and beyond, as we’ve pointed out previously…through the first hour of trading, MVN is down a penny at 48 cents…

True Gold Mining Inc. (TGM, TSX-V) Updated Chart

True Gold Mining (TGM, TSX-V) has many factors in its favor and appears destined at some point to bust through resistance at 40 cents…below is an updated 2.5-year weekly chart from John…watch TGM closely as well…solid situation that certainly will react very positively to any jump in the Gold price…as of 7:30 am Pacific, TGM is off half a penny at 37.5 cents…

Mason Graphite Inc. (LLG, TSX-V) Updated Chart

This is a follow-up to a very recent chart from John after he picked up on a “hammer reversal” in Mason Graphite (LLG, TSX-V) at 29 cents in mid-September…what’s significant at the moment is that LLG is on the verge of breaking out above a downsloping channel in place since the beginning of the year…this needs to be confirmed on a closing basis…as of 7:30 am Pacific, LLG is up 3 pennies at 48 cents…

Note: John, Terry and Jon do not hold share positions in FCU, PNE, CKR, TGM, MVN or LLG.

October is certainly shaping to be a very interesting month for Gold after bullion posted its first quarterly gain (7.6% in Q3) in a year…important Fib. support is in the $1,270’s, and that has held these past couple of days, with bullion rebounding sharply this morning after yesterday’s nearly $40 an ounce plunge…market participants yesterday viewed the 1st U.S. government partial shutdown in almost 18 years as “deflationary”, but there were also rumors of a forced liquidation by a distressed commodities fund and of selling related to a fund rebalancing on the 1st day of the 3rd quarter…as of 7:50 am Pacific, Gold is up $32 an ounce at $1,320…Silver is 74 cents higher at $21.91…Copper is up 3 pennies at $3.29…Crude Oil has added 94 cents to $102.97 while the U.S. Dollar Index has plunged one-third of a point to 79.84…

A partial U.S. government shutdown is no big deal – that’s merely a firecracker…but tons of dynamite are loading up over the debt ceiling issue, and it almost seems as if certain members of Congress want to see the U.S. default on its debt later this month – if only to bring Washington’s spending and debt problem to the forefront of attention…there’s nothing like sparking a crisis to put the spotlight on an issue, and we all know how Gold will react if a U.S. default were to occur…

Outflows from Gold ETPs totaled $4.2 billion during the 3rd quarter, according to ETF Securities…however, since the price of the precious metal itself rose, total Gold assets under management in Gold ETPs actually increased by $4.3 billion…the 3rd quarter Gold ETP outflows were down sharply from $18.5 billion in the 2nd quarter when there was a massive sell-off in prices…Q2 likely marked the absolute low for Gold ETP’s…since April, Gold ETP outflows declined each month through August, before an uptick again in September…

The 2nd-largest sector inflow into commodity ETP’s during Q3 was into Silver ($707 million)…

As of yesterday, the sales tax levied on purchases of Gold, Silver and platinum bullion and numismatic coins in Texas is now eliminated (Louisiana and Utah have also passed similar legislation recently)…the legislation puts precious metals on a level playing field with other investments…previously, Texans were paying 6.25% on all precious metals purchases under $1,000, a tax was was considered especially burdensome to small investors…the web site www.StateLegalTender.com states that Gold and Silver coins, including those minted by the U.S. government, are currently taxed in more than 2 dozen states…“It makes no legal or economic sense for states to tax Gold and Silver coins,” says the website. “Ending this taxation to enable them to circulate as currency is one of the prime goals of the state legal tender movement.”

Today’s Markets

Japan’s Nikkei average tumbled 314 points overnight to close at a 3-week low of 14170…Chinese markets are closed until Monday…European shares, meanwhile, are off modestly…the European Central Bank (ECB) kept its main interest rate unchanged at record low of 0.5% today…focus remains on whether the ECB will hint at the need for further long-term refinancing operations (LTRO) to help support the economy…

The Dow is under pressure this morning, down 127 points as of 7:50 am Pacific…U.S. private sector job creation came in lighter than expected in September but remained essentially in the same slow-but-steady growth range, according to a report released this morning…ADP and Moody’s Analytics pegged the monthly total at 166,000, lower than estimates of 180,000, with service-sector positions again leading the way…Obamacare is clearly one of the contributing factors in restraining job growth in the U.S. – when government makes it more expensive for businesses to hire people, and creates an uncertain and confusing regulatory environment, don’t expect robust job numbers…

The TSX is off just 32 points as of 7:50 am Pacific while the Venture has gained 4 points to 946 as it continues to show solid support just above its rising 50-day moving average (SMA)…

Venture-Gold-CRB 2-Year Comparatve Chart

With a gain of 7.3% during Q3, nearly matching Gold’s performance, the Venture actually outperformed the Dow (up 1%), the TSX (up 5.4%) and the TSX Gold Index (up 3.5%) which is certainly an encouraging sign…

What’s also encouraging is the fact that since August, the Venture has not followed Gold to the downside – the 1st time the Venture has bucked a downward move in Gold since the beginning of the junior sector bear market in early 2011 as you can see on John’s monthly comparative chart below…how significant that is remains to be seen, but this kind of resilience by the CDNX in the face of weakness in Gold (through yesterday at least) is typically a positive sign for the Index…the Venture is down nearly 60% since the beginning of 2011 but may finally have put in a bottom in late June at 859…Gold has declined 9.4% since the beginning of 2011, the CRB Index is off 14.7%, while the Dow has gained 31%…

Global Coal Met Corp. (GMZ, TSX-V) Update

Global Coal Met had a strong day yesterday following interesting news Monday…Global Resources Investment Ltd. (GRIT), a newly-formed United Kingdom based investment trust conditionally approved for listing on the London Stock Exchange, is taking a nearly 19% position in GMZ as part of a share swap…GMZ will have shares in GRIT that it will be able to sell in the market to raise proceeds (expected to be approximately $900,000)…this is not the only Venture company to garner the attention of GRIT (see below)…for the past year, GMZ has been working to obtain a mining permit for its Black Creek Coal Project in Alabama…the company reported Monday that the work required to obtain the permit is substantially complete and GMZ anticipates the permit will be issued in “due course”…

Below is an updated GMZ 20-month weekly chart from John…RSI(14) has broken out above resistance at 50, a positive technical development…current chart resistance at 5 cents…

Portex Minerals Inc. (PAX, TSX-V)

Portex Minerals Inc. (PAX, TSX-V) is another company that has tapped into GRIT as announced in a PAX news release September 24 (Portex has some things on the go, as revealed in that release, which appear interesting, so our readers may wish to engage in some DD on this one)…

“GRIT is a newly formed United Kingdom-based investment trust, conditionally approved for listing on the London Stock Exchange, which will invest in a broad portfolio of resource issuers, in exchange for 40 million newly issued Portex common shares at an issue price of six cents per share.  The shares issued will be subject to the private placement’s four-month hold period. GRIT will hold 19.5 per cent of Portex. Upon completion of this transaction and the mineral exploration licence acquisitions referred to above, Portex will have 204,984,300 common shares outstanding. The purchase of the trust units is conditional upon the trust closing its initial financing and becoming listed on the London Stock Exchange. GRIT expects to be listed within the coming weeks.

As part of this transaction, Portex will arrange to sell GRIT units from time to time through the facilities of the London Stock Exchange in order to generate cash proceeds. The proceeds from the sale of the units will be used to advance Portex assets in Spain, Portugal, Northern Ireland and Ireland, as well as for working capital and general corporate purposes. A 6-per-cent advisory fee is payable by Portex in Portex and GRIT shares.”

Magor Corp. (MCC, TSX-V) Updated Chart

A technology play that continues to have tremendous prospects, despite recent share price weakness, is Magor Corp. (MCC, TSX-V) which started trading on the Venture just 6 months ago…check out their latest news release, September 27, and have a look at their web site…the individuals involved in this company have stellar track records, and MCC is making excellent strides with its Aerus cloud-based visual collaboration solutions…the company is completing a $2 million financing at 25 cents which accounts for the recent drop in the share price…below is a chart that shows very oversold technical conditions…we’ll have more on MCC in the coming weeks…

Note: John and Jon both hold share positions in GMZ.  Jon also holds a share position in MCC.