From Nelson, B.C.
Gold has traded between $1,571 and $1,588 so far today…as of 6:05 am Pacific, the yellow metal is down $5 an ounce at $1,580…Silver is off 24 cents at $27.30…Copper is down a penny at $3.34…Crude Oil is unchanged at 79.19 while the U.S. Dollar Index is up slightly at 82.51…this is another abbreviated edition of Morning Musings due to travel and limited Internet access…
U.S. Dollar Index Update
Silver Chart Update
John’s updated Silver chart shows a market that’s holding support and continuing to trade in a horizontal channel…a re-test of significant channel resistance around $29 is quite possible over the short-term given some bullish signs in recent trading sessions…
Today’s Markets
Asian markets were mixed overnight while European shares are flat this morning…U.S. stock index futures as of 6:05 am Pacific are pointing toward a slightly positive open on Wall Street after yesterday’s triple-digit loss…
Italy paid 4.712% to sell two-year paper this morning, a new high since December, as investor doubts continue over whether a European summit later this week will deliver a decisive answer to the bloc’s debt crisis…meanwhile, Spain’s short-term borrowing costs nearly tripled at auction this morning, underlining the country’s precarious finances as it struggles with a recession and a fragile banking system…the yield paid on a 3-month bill was 2.362%, up from just 0.846% a month ago…for six-month paper, it jumped to 3.237% from 1.737% in May…
European leaders are meeting on Thursday and Friday…
The Venture Exchange fell another 30 points yesterday to close at 1176…sentiment is negative among many investors and that’s always when the greatest opportunities exist…we’ll be examining numerous special situations over the next week or so, one of them of course being Rainbow Resources (RBW, TSX-V) as we are more confident than ever that this company has a discovery in the making in the West Kootenays (the International Silver Property) in addition to other important projects with significant upside potential…
What we’re convinced will turn the Venture around, sooner rather than later, are fresh discoveries and takeovers…this will be a discovery and takeover-driven market over the coming months – that’s where some big money is going to be made (GoldQuest Mining being one recent good example)…
Jon just completed three intense days on the ground in southeast B.C., covering most of Rainbow’s properties and speaking with some of the finest prospectors in the area…he has collected a large amount of information and hundreds of pictures, most of which we still need to sort through…the case for a potential discovery at the International Property, where Rainbow will soon be drilling, is more powerful than ever in our view and we’ll be explaining why in the days ahead…
Below are a few additional pictures from the International – drill sites are marked and a drilling company out of Salmo, B.C., is ready to proceed as soon as RBW receives the final ok from the ministry which could come any day now…
A close-up of a section of RBW's mineralized "wall" (300 feet long and up to 7 to 8 feet high where drilling starts at the International). Behind all of the weathered rock along this wall is galena, much of it fine-grained - as you can see in this picture - which suggests high silver content. This wall is just one exposed portion of a 1.2 km-long vein system that's open in all directions.
Rainbow's drilling at the International will begin right here - above the mineralized wall (structure) with holes angled right into the heart of it to test the system's thickness and grade. Rainbow's President David W. Johnston is standing on the road below, looking up at the impressive structure and where drilling will commence.
This rock sample is one of many taken from an area called the "Forgotten" which is over a kilometre north of where RBW's drilling will commence. The vein system extends for at least 4,000 feet and is open in all directions.
Note: Both John and Jon hold share positions in RBW (Terry does not).
Anybody out there to give some support levels on the CDNX? I am hearing 1150?
Comment by STEVEN — June 26, 2012 @ 5:45 am
There is some life out there with stocks like BGM/GR/AIX,etc actually holding ‘up’ in this mkt.
Comment by STEVEN — June 26, 2012 @ 5:48 am
John – I don’t know when the reversal will come.
Let me help you. Look for 1050 – the low for 2009.
Jon, in 2008 we had the big discovery of Noront that turned the market around. We have had 3 major discoveries this year already, but the market has not come to life. Anticipate, sense, and feel what lies ahead.
And it will be November before RBW has drill results. Since 2006, I have never seen a mining company run on the time they predict. It’s usually a month further out. July is almost here. It will be november my friend.
Comment by dave — June 26, 2012 @ 5:52 am
Hi Dave
I have worked out the end of the 5th Elliott wave of this downtrend to occur around 1082 which is quite close to your 1050. These levels are just probabilities don’t forget, that is why I said I did not KNOW.
Comment by John – BMR — June 26, 2012 @ 6:13 am
Comment by John - BMR — June 26, 2012 @ 6:15 am
I hear ya John, wasn’t trying to sound critical, just using my naked eye and what the probabilities I see coming. If we had that crystal ball, we would all be rich.
Comment by dave — June 26, 2012 @ 7:44 am
Todays smile Now that Iam invested in junior mining stocks I sleep like a baby waking up evert hour and crying
Comment by gil — June 26, 2012 @ 8:00 am
What I find hard to understand is the fact there is no volume or upside after rbw showed off its steller property to newsmen and investors could john or jon comment on this please
Comment by gil — June 26, 2012 @ 8:10 am
The newsmen and investors went blind from looking at all that shiny good stuff.
As soon as they get their sight back you will now it.
Comment by Rick — June 26, 2012 @ 8:20 am
know
Comment by Rick — June 26, 2012 @ 8:21 am
Any updates for Cadillac Mining CQX ??????????????????????????????
Comment by KD — June 26, 2012 @ 9:07 am
I must be put on ignore .NO comments from john or jon
Comment by gil — June 26, 2012 @ 11:00 am
Gil et al…. they said…
this is another abbreviated edition of Morning Musings due to travel and limited Internet access… they arent online yet!!:)
Comment by Jeremy — June 26, 2012 @ 11:51 am
i live in Nelson we have lots of internet access Slocan valley could be a problem
Comment by BRIAN — June 26, 2012 @ 5:40 pm
BMR
No mention of Richmont mines for a while, do you guys still think that this is a company to have in your portfolio long term?
Comment by Greg — June 26, 2012 @ 9:28 pm
Absolutely, Greg……they’re still making money, and they’ve got a strong team with solid projects…….
Comment by Jon - BMR — June 27, 2012 @ 3:50 am
Hi Gil
Yes I am afraid I did put you on “ignore” yesterday because I was under the weather. Sorry about that.
Anyway I can assure you the word is out about RBW but there is no strong promotion at this time due to bearish market and investor sentiment. It would be wasted. It will be done. We must wait.
Watch the trading, investors are content at this time to soak up loose shares without forcing the stock above 17c.
Comment by John - BMR — June 27, 2012 @ 5:18 am
man sorry Gil… was trying to keep things real.. by speculating.. oh well .. John was real!!:)
Comment by Jeremy — June 27, 2012 @ 5:49 am