The “risk-on” trade is back, at least temporarily…Gold and commodities in general are blasting higher today, along with the euro, after leaders at the EU summit struck a deal to cut borrowing costs for Spain and Italy…as of 6:10 am Pacific, the yellow metal is up $43 an ounce at $1,595 after testing support around $1,550 yesterday…Silver has climbed $1.29 an ounce to $27.61…Copper is up a whopping 13 cents to $3.48…Crude Oil has surged $4 a barrel to $81.72 while the U.S. Dollar Index has slipped more than a point to 81.53…
A Repeat Of 2004?
Despite today’s month and quarter-end surge, Gold has suffered its worst quarter (or one of its worst depending on today’s close) in 8 years since the three months to June, 2004…Gold bottomed in May, 2004, and jumped 20% off its lows by November of that year…during that same year, the Venture plunged from March until July and then recovered almost all of its losses by the end of 2004 with a 30% move to the upside that started in earnest in August…will we see a repeat of that action in 2012?…only time will tell, but we like the odds of a turnaround given such high levels of bearishness recently…
John’s CRB chart yesterday also showed that commodities may have put in a bottom…
EU Deal
The key parts of the EU summit announcement are the direct recapitalization of European banks via the euro zone’s permanent rescue fund, the European Stability Mechanism, and bond support for Italy and Spain without extra austerity…the change, agreed as part of a deal struck in the early hours of this morning, will not happen immediately, however…instead the leaders agreed it would come only after the euro zone set up a single banking supervisor to be run by the European Central Bank…
The Financial Times reported this morning that the dramatic shift in the bailout rules came after Italy and Spain forced leaders to remain at the summit overnight, blocking agreement on all other agenda items before getting a deal on short-term rescue measures…the summit agreement also contained some concessions for Italy, though less than for Spain, setting the stage for Rome to become the sixth euro zone country to request EU assistance as part of the euro zone debt crisis…Ireland, which suffered a bank meltdown like that in Spain, would also be considered for similar treatment, the summit agreed…
Today’s Markets
Stock index futures in New York as of 6:10 am Pacific are pointing toward a strong opening on Wall Street…Asia was robust overnight while European markets are up as much as nearly 4% this morning…
The Venture Exchange found support at 1154 yesterday and rebounded late in the day to close at 1164…the downward pressure seems to have exhausted itself, at least for now, and there is also a divergence between RSI and price – the recent drop below 1200 to a new yearly low has not been accompanied by a new low in the RSI…the Venture is ready for a rebound and John will examine the upside possibilities in a an updated chart tomorrow as part of our Week in Review And A Look Ahead…
From the rumor mill this morning, word is that Resource World Magazine is coming out with a feature article on Rainbow Resources (RBW, TSX-V) early next week…BMR will also be coming out with a special report early next week following last weekend’s site visit…not only is the International a superb target, but RBW also has very interesting possibilities with its Gold Viking, Ottawa and Referendum properties, in addition to the flake graphite potential of the Slocan Valley…
Cadillac Mining (CQX, TSX-V)
Initial results are imminent from the second round of Cadillac Mining’s (CQX, TSX-V) drilling at its Utah Goldstrike Project…a three-hole orientation program six months ago delivered encouraging results including 1.08 g/t Au over 73.1 metres (GS11-02) and 1.25 g/t Au over 82.3 metres (GS11-03) respectively, with significant intervals of up to 19.8 metres averaging 2.88 g/t Au… Goldstrike features some complex geology but a dozen former producing open-pits, so the potential of discovering a wider mineralized system near-surface or at depth clearly exists…a proper exploration program has never been conducted at Goldstrike but we’re confident that the team at Cadillac has been taking the right approach…
Below is an updated CQX chart from John – the technicals are looking favorable…the long-term moving averages (100, 200 and 300) are all in bullish alignment, and the 50-day SMA has also recently reversed to the upside…
GoldQuest Mining (GQC, TSX-V)
GoldQuest Mining (GQC, TSX-V) tested the 49-cent support level yesterday that John had identified, and it needs to hold that level on a closing basis and regain momentum…the recent overbought condition has now been cleansed, so that’s a positive factor moving forward…ultimately, the current drilling needs to confirm that the size of the Romero discovery has significant growth potential – that will dictate whether or not GQC will blast beyond its recent high…
Levon Mining (LVN, TSX)
Bottom-fishers should check out Levon Mining (LVN, TSX) which appears to be crawling along a bottom right now around 40 cents…Levon’s Cordero Project in Mexico holds a significant 43-101 resource (Ag, Pb, Zn and Au) and recent weak overall markets have driven the share price down to levels not seen since late 2009…at the very least, this could be an excellent trading opportunity…as always, perform your own due diligence…
Note: John, Jon and Terry do not hold positions in CQX, GQC or LVN.
GOLD UP ALMOST $50 TODAY!
Comment by STEVEN — June 29, 2012 @ 6:26 am
I own some bgm any thouhts on this one
Comment by gil — June 29, 2012 @ 7:39 am
Cadillac Mining Reports Partial Goldstrike Drill Results
Intersects 30.2 Meters Of 1.56 g/t Gold & 3.8 g/t Silver
Vancouver, British Columbia CANADA, June 29, 2012 /FSC/ – Cadillac Mining Corporation (CQX – TSX Venture), is pleased to announce results from four exploratory holes, representing partial analytical results from the nine-hole NQ drill program recently conducted on its 100%-held Goldstrike project in southwestern Utah. The nine holes, aggregating 1080 meters (3543 ft.) were drilled on four sections situated along the Hamburg Extension, 30, 70, 110, and 190 meters respectively, east of reverse-circulation holes GS11-02 & -03, reported on February 21, 2012.
DDH’s GS12-04, -05, -06 and -07 intersected prospective gold and silver mineralization, the best of which were 1.56 g Au/tonne over 30.2 meters in GS12-07, and 0.81 g Au/tonne over 36 meters in GS12-05. Hole details and the weighted average grades of the mineralized intervals are set out below.
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HOLE # SECTION AZ/DIP FROM TO INTERVAL AU AG
(DEG) (M) (M) (M) (G/T) (G/T)
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GS12-04 690 360/-67 27.1 56.1 29.0 0.431 4.01
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GS12-05* 690 360/-80 27.1 63.1 36.0 0.810 7.09
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GS12-06* 690 180/-80 Scattered Values
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GS12-07 730 360/-67 70.7 100.9 30.2 1.56 3.8
————————————————————-
-****-
*Drill hole terminated before reaching targeted depth due to drilling conditions.
Note: Mineralized intervals reported above may not accurately reflect true widths or thicknesses.
Detailed features seen in core are leading to a better understanding of controls to mineralization, and are confirming earlier observations that gold mineralization at Goldstrike is controlled primarily by high-angle faults. However, current results appear to show that variations in grade are affected to a great extent by the composition of host sediments. While these relationships have yet to be fully understood, such details are likely to be of critical importance going forward. The Company awaits results from the five remaining holes of this series, that in combination with Cadillac’s 2011 drilling, have tested a 230 meters of strike in the Hamburg Extension zone.
Cadillac’s President & CEO, Victor Erickson, commented, “We are very pleased that these new results confirm continuity of mineralization in the Hamburg Extension. Gold and silver values are variable, but it is obvious that this is a wide and robust system containing sections of significantly elevated gold and silver grades. While ground conditions are difficult, the decision to utilize core drilling has yielded geological detail not previously recognized. Progress in the understanding of the controls to mineralization will be key as the Company expands the scope of it exploration efforts, both laterally, and to depth.”
Cadillac currently has a geologist and a technician working full time compiling historical data. Chip trays from 1400 RC holes have been catalogued, and selected holes are being re-logged. Mineralized intervals from the December 2011 RC program have been submitted for silver analyses.
About the Goldstrike Property
The 4700-acre Goldstrike property is a former producer that closed in 1994 because of low gold prices and a punitive royalty schedule. Historical mining covers 12 open pits strung along the margins of a graben complex on a roughly east-west trend covering about eight kilometers of strike. The Hamburg Extension lies on the south margin of the principal graben where the favourable host sandstone was preserved at shallow to moderate depth. This unit was host to most of the Tenneco-USMX heap-leach production of about 210,000 oz, although there was gold production from the basement Paleozoic limestone-dominated strata below it. Graben structures and the complex fault systems that define them, are repeated both north and south of the Hamburg zone.
Cadillac’s immediate target area, measuring approximately two kilometers long by more than 300 meters wide on average, extends outward from the Hamburg Extension. It is one of approximately fifteen near-surface targets identified on the Goldstrike property, exclusive of the potential for mineralization at depth in Paleozoic strata.
Comment by Andrew — June 29, 2012 @ 9:06 am
Gil – Congratulations – that’s huge news!:)
Comment by Andrew — June 29, 2012 @ 9:53 am
the market seems disapointed by results ..good grade but small intercept.Any comments by those in the know…there is still 5 holes though
Comment by Gabe — June 29, 2012 @ 10:01 am
Knee-jerk reaction….nothing bad about these results – not spectacular, but certainly encouraging…more assay results to come, and also note they’re working thru a whole bunch of historical data that could reveal more interesting numbers……..
Comment by Jon - BMR — June 29, 2012 @ 10:05 am
I bought lg today could go a lot higher when bgm begins to trade They own 1 million shares of bgm check it out
Comment by gil — June 29, 2012 @ 10:18 am
CQX is getting hammered, down to 15 cents. Wish I had some more dry powder, the results weren’t that bad to warrent this kind of sell off, this will rebound big time with next set of results which I beleive will come with 2 weeks.There are times to hold and fold and this ain’t a time to be selling. Beleive it could drop even lower next week and I would load up at that time if I could. Company should try in future to never release news on Friday especially before Holiday weekend. KD
Comment by KD — June 29, 2012 @ 11:25 am
CQX … what happen to this one… dropped almost half of the value and at one point 75%. KD… you are probably right, it may drop another 20% next week… I do not have holdings in this one. GBB and RBW are in low volume … going up 2 pennies are not a big deal… When I see volume 1 million for GBB and 500,000 for RBW… more players…
Comment by Theodore — June 29, 2012 @ 12:27 pm
Rbw most likey to start drilling next week. with that and
Comment by db — June 29, 2012 @ 12:42 pm
Rbw most likey to start drilling next week. with that and
Comment by db — June 29, 2012 @ 12:42 pm
sorry, not sure why it cut me off and dbl posted. Also, with the extra coverage from Resource World Magazine, we should see a push into 20s again. I have my stink bid in but not sure if we will ever fill that gap.
Comment by db — June 29, 2012 @ 1:00 pm