It’s another “risk off” day across the markets…as of 7:15 am Pacific, bullion is down $16 an ounce at $1,712…Silver is 32 cents lower at $32.42…Copper is flat at $3.44…Crude Oil is down 28 cents to $86.04 while the U.S. Dollar Index is down nearly one-fifth of a point to 80.97…
Global Gold Demand & Supply Fall In Q3
Global Gold demand dropped 11% in the three months to September from record levels seen in the same period last year, dampened mainly by fading Chinese fervor as its economy slowed, with stronger Indian demand stemming a larger fall, according to figures just released by the World Gold Council…Chinese Gold consumption fell 8% in the July to September period to 176.8 tonnes with both jewelry and investment demand hurt by weaker economic growth…Chinese bar and coin investment dropped 12% to 53 tonnes, while jewelry buying fell 5% to 123.8 tonnes….”The fall in Chinese demand coincides with weaker economic numbers in China in Q3 but there is some evidence that the economic situation is stabilizing in China and recovery is starting,” the WGC stated…”It’s possible that the stimulus measures have worked and the economy has bottomed out…If that’s true, we won’t see a repeat of this Chinese weakness in the fourth quarter”…China is second to India as the world’s biggest Gold consumer…Indian demand rose in the last quarter by 9% to 223.1 tonnes, reversing the trend of the previous three quarters, with pent-up consumer demand lifting the market…global jewelry consumption dipped 2% to 448.8 tonnes, while coins and bar demand fell 30%…European investors, particularly in German-speaking markets, accounted for half of the 128.1-tonne decrease in bar and coin demand..
Meanwhile, mine production fell 1% from the year-ago quarter to 731.6 metric tons, the largest since Q3 2008…this was due, the WGC stated, to disappointing results for a number of operations, lower-than-expected growth at a number of new or recovering mines, and the Q3 strikes in South Africa…
U.S. Jobless Claims Jump
The Labor Department reported this morning that Superstorm Sandy drove U.S. weekly jobless claims up to 439,000 (the highest in 18 months) while consumer prices rose slightly last month as higher rents and costlier food offset cheaper gas…the Labor Department stated that jobless claims increased by 78,000 mostly because a large number of applications were filed in states damaged by the storm…people can claim unemployment benefits if their workplaces close and they don’t get paid…the storm has affected the claims data for the past two weeks and may distort reports for another two weeks, the department said…the four-week average of applications, a less volatile number, increased to 383,750…
Euro Zone Slips Into Recession
The euro zone fell into a recession in July-September, the second since the global financial crisis in 2009, as French resilience could not make up for a slump across Europe and the three-year debt crisis slowed Germany to a crawl…economic output in the 17-country euro zone fell 0.1% in the third quarter following a 0.2% drop in the second quarter…those two quarters of contraction put the euro zone’s 9.4 trillion euro ($12 trillion) economy officially in recession, although Italy and Spain have been contracting for a year already and Greece is suffering an outright depression…Germany and France, the euro zone’s biggest economies, could not save the bloc from a double-dip recession even though both countries managed 0.2% growth in the quarter…large countries like Italy, Spain and the Netherlands all contracted and Belgium, a big exporter, stagnated…millions of people across Europe have protested against government spending cuts that EU policymakers say are crucial to ending the debt crisis but which others blame for the economic contraction…
Today’s Markets
Asian markets were mostly lower overnight, though Japan’s Nikkei Index bucked the trend and ended at a 1-week high…China’s Shanghai Composite fell 25 points to 2030…the country’s ruling Communist Party unveiled its new leadership line-up yesterday to steer the world’s second-largest economy for the next five years, with Vice President Xi Jinping taking over from outgoing President Hu Jintao as party chief…European shares are finishing the day moderately lower while North American markets are trying to reverse their slide…as of 7:15 am Pacific, the Dow is up 22 points at 12593…the TSX is off 83 points while the Venture Exchange, which has had a rough week, is down another 23 points to 1236…
Venture Exchange Updated Chart
The Venture Exchange has displayed some weakness in recent days, so it’s a good time now to take another look at the chart to remind our readers of key support levels…the RSI(2) is near a low extreme, suggesting the support band between 1215 and 1253 has a good chance of holding…
TSX Chart
The RSI(2) for the TSX is at an even more extreme level than what we’re seeing for the Venture…the support band for the TSX is between 11780 and 11900 as John shows in the 9-month daily chart below…
Dow Industrials Chart
RSI(2) levels for the Dow are also at an extreme low with a support band between 12500 and 12600…
Huldra Silver Updated Chart
Huldra Silver (HDA, TSX) announced completion of the final tranche of a $6.9 million financing yesterday, along with resumption of operations at their Merritt mill where concentrate is again being produced after a brief shutdown for upgrades…CFO Garth Braun also stepped into the market to purchase nearly $100,000 worth of shares Tuesday (60,000 between $1.52 and $1.54)…as of 7:15 am Pacific, HDA is up 2 pennies to $1.43…below is an interesting 2-year weekly chart from John that shows how HDA retreated to the top of the handle yesterday, a normal retracement after a recent breakout from that area…
Note: Jon holds a position in HDA.
Support is only good until it fails. Venture looks horrible
Comment by OldMan — November 15, 2012 @ 7:31 am
Ventures get throttled this morning and now down almost another 2% – sorry I mean 1.75% my bad I grossly overstated
Let me guess, we’re in the beginning phase of a bull market run? RBW is done for now unless they come back with spectacular results – so I’m done holding my breath with hopes of that.
ATC and GPR, our weatherglass of where the ventures are heading are telling the entire story before it all unfolds.
BMR will tell you to look at the big picture – well, we are seeing the big picture and unless you flip the charts upside down, it’s disgusting.
Comment by alex — November 15, 2012 @ 7:39 am
Update from GBB
Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is pleased to provide an updated independent NI 43-101 compliant gold mineral resource estimate on its Granada Gold Property, located along the prolific Cadillac trend in North-western Quebec, 5 km south of the city of Rouyn-Noranda. The total gold resource at Granada now stands at 2,638,000 gold ounces using a cut-off grade of 0.40 g/t with 1,605,000 ounces in the Measured and Indicated categories.
Not sure how this will impact the SP given the hit on gold today.
Comment by Paul — November 15, 2012 @ 8:04 am
GBB just released its RE – 2.6 million oz – trades at 12 cents ….
Comment by pete — November 15, 2012 @ 8:09 am
the big picture indicates structural changes are taking place in the investment community. People simply arent gambling in venture stocks as they did in the past. I am sure that BMR will respond with one of their many cliches. I am also sure that BMR will say the the venture is outperforming other markets but always tend to use short timeframes to make themselves look better. The venture is almost half its value from 2 years ago, the tsx is roughly the same.
Comment by sean — November 15, 2012 @ 8:12 am
GBB second RE just out – 2.638Moz Au at a cut off 0.4g/t.
Comment by Rosco — November 15, 2012 @ 8:19 am
Market is not even reacting to GBB’s announcement. With this second RE our dollar per ounce ratio is laughable, yet no buyers stepping up? Look forward to hearing BMR’s thoughts on this latest news release.
Comment by Mike — November 15, 2012 @ 8:30 am
Where is the money going? Recently investors purchased Danish bonds above par value. Safety Safety Safety.
Comment by Alexandre — November 15, 2012 @ 8:52 am
Its pretty insane that it only takes 2 days to undo months of gains for the venture. This market is a bust. No more investing for me. Just sitting on my cash.
Comment by Tony T — November 15, 2012 @ 10:36 am
Lotsof interesting posts on gbb and rbw on stockhouse site. I see Bert is posting on stockhouse. richard l
Comment by richard l — November 15, 2012 @ 10:43 am
Gold Bullion Provides Mineral Resource Estimate Update For Granada
VANCOUVER, Nov. 15, 2012 /PRNewswire/ – Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is pleased to provide an updated independent NI 43-101 compliant gold mineral resource estimate on its Granada Gold Property, located along the prolific Cadillac trend in North-western Quebec, 5 km south of the city of Rouyn-Noranda. The total gold resource at Granada now stands at 2,638,000 gold ounces using a cut-off grade of 0.40 g/t with 1,605,000 ounces in the Measured and Indicated categories.
Highlights include the following:
The in situ measured resource is 946,000 ounces (28.735 million tonnes grading 1.02 g/t), indicated resource is 659,000 ounces (18.740 million tonnes grading 1.09 g/t), inferred resource is 1,033,000 ounces gold (29.975 million tonnes grading 1.07 g/t Au) using a cut-off grade of 0.40 g/t.
The selected base case in-pit measured resource is 811,300 ounces (24.992 million tonnes grading 1.01 g/t), indicated resource is 354,600 ounces (9.336 million tonnes grading 1.18 g/t), inferred resource is 11,100 ounces gold (0.449 million tonnes grading 0.77 g/t Au) using an effective cut-off grade of 0.36 g/t based on a Whittle-optimized pit shell simulation using estimated operating costs, a 3 year trailing average gold price of CAN$1450 per ounce and a corresponding lower cut-off grade of 0.36 grams per tonne gold.
Previous small open pits have been taken into account and are starting surfaces of optimization while the historical production of 51,476 ounces (181,744 sT @ 0.28 oz/sT) from 1930 to 1935 are included in the resource statement. (cannot physically remove from measured, indicated or inferred).
The mineralized system is still open at depth and laterally.
SGS Canada Inc, (SGS Geostat office of Blainville, Québec, “SGS”) are the independent resource estimate consultants for the Granada project. SGS has authorized the release of the following estimates included in the table below that summarize their block model estimates using variable cut-off grades:
Granada gold deposit In Situ Resource Estimates
Cut-off 0.4 g/t Tonnage Au g/t Au Oz
Measured 28,735,000 1.02 946,000
Indicated 18,740,000 1.09 659,000
Total M+I 47,475,000 1.05 1,605,000
Inferred 29,975,000 1.07 1,033,000
Cut-off 1.0 g/t Tonnage Au g/t Au Oz
Measured 7,810,000 2.14 536,000
Indicated 5,347,000 2.32 398,000
Total M+I 13,157,000 2.21 934,000
Inferred 8,600,000 2.23 617,000
Cut-off 2.0 g/t Tonnage Au g/t Au Oz
Measured 2,533,000 3.76 306,000
Indicated 1,869,000 4.07 245,000
Total M+I 4,402,000 3.89 551,000
Inferred 3,030,000 3.89 379,000
Note: rounded numbers, base case cut-off >0.4 g/t in bold.
SGS also estimated an in-pit resource within a Whittle-optimized pit shell using a base case gold price of CAN$1450 per ounce. The table below summarizes the in-pit resources with the selected base case in Whittle optimizations:
In-pit Estimates* CoG
g/t Ore
M tonnes Grade
g/t Au
oz
Nov 2012
(within
claims &
Au = 1450
$/oz) Measured
Indicated
Inferred 0.36
0.36
0.36 24,992,000
9,336,000
449,800 1.01
1.18
0.77 811,300
354,600
11,100
Mea+Ind
0.36
34,328,900
1.06
1,166,000
*Rounded numbers
Comment by Arjan — November 15, 2012 @ 11:25 am
The in-pit estimate is based on a mining cost of CAN$2.00 per tonne and a processing cost of CAN$16.00 per tonne (including G&A), assuming gravity cyanidation treatment of the mineralized material.
Other assumptions include 94.1% recovery of gold in and pit wall slope angle of 45 degrees in the south footwall and 50 degrees in the north hanging wall.
Details on the parameters of the resource estimates are as follows:
The database used for Granada includes drilling obtained from the 2009-2010-2011 and 2012 from Gold Bullion drill programs.
Most NQ assays reported by Gold Bullion were obtained by standard 50 g fire assaying-AA finish or gravimetric finish and another fraction by screen metallics at various laboratories, ALS Chemex laboratories in Val d’Or, Quebec, Accurassay, Lab Expert and Swastika.
The estimates were done using Inverse Distance Square (ID2) as the interpolation method based on 1.5 metre analytical composites.
Composites calculations are based on original samples value and were afterward capped at 30 g/t.
All estimates are based on a Parent Cell dimension of 10 metres E, 5 metres N and 5 metres height with search ellipsoid and estimation parameters determined for the mineralized zone geometry.
Geological interpretation for the deposit identified one main structurally-controlled mineralized domain including higher grades within the envelope hosted by conglomerates of the Timiskaming group. The estimation of the mineralized domain was done in 3 runs where the first required a minimum of 4 holes using a maximum of 3 composite per hole within a search ellipsoid of 50m by 50m by 5m dipping 47 degrees north, while the second run used a minimum of 3 holes within a search ellipsoid of 100m by 100m by 10m dipping 47 degrees north, and the last run one hole within the domain minimum 3 composites in a 200m by 200m by 15m dipping 47 degrees north.
For the classification 4 holes with 3 composites within a 40m by 40m by 5m ellipsoid for measured, 3 holes with 3 composites within a 80m by 80m by 10m ellipsoid for indicated, the rest being inferred.
Underground voids (shaft & drifts) were modeled from historical mine plans and adjusted according to positions of drill intersections in stopes and drifts. The stopes could not be placed in space with accuracy. Historical production from underground needs to be subtracted from the resource estimate.
Tonnage estimates are based on rock densities of 2.70 tonnes/cubic metre.
The global resource estimates using the lower cut-off of 0.4 g/t Au is emphasized for reporting purposes as this is close to the in-pit cut-off estimated for the CAN$1450 Whittle shell, which represents the reasonable potential of economic extraction in SGS QP’s opinion.
Additional details will be provided in the technical report to be issued within the next 45 days.
Mr. Claude Duplessis, Ing. of SGS is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.
Comment by Arjan — November 15, 2012 @ 11:54 am
i dont hold gbb,but i keep seeing that word estimate,wonder if thats the key??
Comment by tom — November 15, 2012 @ 12:18 pm
JON – RBW
I’ll make this short and to the point….do you still feel confident? Barely any shares traded, down to 16.5, no news….this doesn’t look too good right now…
Maybe David’s rainbow led him to the person running CUI and SD…and then they laughed at all of us for buying rbw over a couple of beers…
Comment by Avo — November 15, 2012 @ 12:27 pm
Avo, yes I am very confident regarding RBW, why not? Among the International, Gold Viking, and Nevada, I see a major breakthrough with at least one of those properties. Who knows which one at this point, but that’s my take on it. As I indicated in the most recent piece on RBW, all the company needs to do is go 1-for-3. There are all sorts of different scenarios. They could disappoint at the International but pull a surprise at Gold Viking. They could miss on both properties in the Kootenays but hit it big in Nevada. So anything is possible. What’s particularly interesting about Nevada is that they’re basically twinning, at first, some historical holes that assayed extremely well, so in that kind of situation there is always a greater probability of success. The company has a lot going for it with some great properties and an aggressive style. Like with any stock, you have some investors who are only interested in where the stock price is going to be in an hour or two, a day or two, or a week or two, and their emotions – and their views of the company – go up and down like a roller coaster. Others are more focused on the longer term. Often the patient investors are the ones who do best. This is also a risky business with a lot of volatility, as we’re seeing now, so if you don’t have the stomach or the wallet for it, or if you can’t sleep at night, you’re definitely in the wrong game. Just my opinion.
Comment by Jon - BMR — November 15, 2012 @ 1:00 pm
im not going to panic avo,just me but im going to stick it out till i see results,i’ve waited this long i’m not bailing now.then i’ll make up my mind,just one mans opinion.besides it cant be much longer now.
Comment by tom — November 15, 2012 @ 1:07 pm
I have to agree with Jon. Patience and some strong stomach medication is required.
If you are in the venture market you can be a day trader (hoping for some quick up and down movement for a quick profit), a long term investor (buying what you consider to be a company with better than average potential and holding on to it until it proves its worth or tanks), or somewhere in between where you maintain a core holding in your top picks and play the day market with some of your investment funds to hopefully make sone ongoing revenue.
I have held KWG shares for over 6 years and have added greatly to my holdings over that period. I believe in the company and live through as many downs as there are ups. I just know (and of course hope) that this is a stock that will do well in the long run and have decided to sit and wait for the return I am hoping for.
RBW is a very similar stock in my mind however I see it as a much shorter time period to make a good return on early results from any or all of their 3 key venture. I will sell maybe half of my holding when it is at a price I am comfortable selling at and will hold on to the rest if the initial results are as promising as I hope they will be.
I can’t do anything about the market but have lived through this kind of down swing as well and if you had a crystal ball you might be able to say -boy if I sold today and bought back in 4 months, I am going to save a lot of money and have more shares. You could just as easily miss the one news release that kicks your stock into gear and find you need more money to buy fewer shares.
All a personal decision based on your own due diligence and risk tolerance.
I know I am happy to get ongoing updates from BMR as well as other investment news sources.
Long winded way of saying Putting money into the venture exchange is a very personal and high risk decision. I really don’t think we are in a position to criticize people or companies that provide us with information/details/updates that we would maybe not otherwise get.
All IMHO
And good luck to all RBW and especially KWG share holders.
Comment by Barry — November 15, 2012 @ 2:11 pm
Hi Jon,
Any update to expect from you in the near future on GBB’s todays news release?
Greetings…
Comment by Arjan — November 15, 2012 @ 2:44 pm
saving grace guys and gals is the low volume…. or not… many look for capitulation…. we have never had it…. but as everyone starting talking about 2000 gold by yr end, the big boys remind us of who is in charge… and it aint us… remember Buffet…. with WGC report and the FOMC minutes, gold has help up well… the xau:gold is at lvls seen in 2008…
not that we have to be close… but we should be close…. and hope that a strong gold showing will bring back the interest in the jrs…..
Tony.. you will be back once the rise has begun….. fear and greed… greed raises stocks slowly (stairs) fear drops them rapidly (elevator) ….. part of the ‘game’ I suspect…. emotions are an interesting thing! be safe out there!
Comment by Jeremy — November 16, 2012 @ 6:37 am