Gold has traded between $1,285 and $1,297 so far today…as of 8:00 am Pacific, bullion is unchanged at $1,290…Silver is off 9 cents at $19.20…Copper is up 2 pennies at $3.06…Crude Oil is down 80 cents at exactly $100 while the U.S. Dollar Index has reversed higher, up one-tenth of a point to 79.35…
Gold posted its biggest daily fall yesterday since April 15 as traders frustrated by its failure to break above $1,315 took Russian President Vladimir Putin’s assertion that he was willing to negotiate over Ukraine as a signal to sell…Putin’s words can’t be taken at face value, though – one would think the market would have figured that out by now…
Despite yesterday’s price drop, buying interest among Chinese dealers on the Shanghai Gold Exchange was relatively muted overnight, according to Swiss bullion house MKS…
Keep an eye on the Gold/Silver ratio which measures the number of Silver ounces needed to buy an ounce of Gold…that ratio has edged back up to 67.1…last week, it hit its highest since August 2010 at 67.6, putting Silver at its cheapest compared to Gold in more than 3-1/2 years…
U.S. Dollar Index “Teetering”
Most analysts have been ignoring the precarious situation of the U.S. Dollar Index which has been in a downtrend since last September, providing support for Gold…it appears the question now is when, not if, the Dollar Index collapses below critical support at 79…
This morning, the Dollar Index got a reprieve – it briefly dipped below 79 and then rebounded as some short-covering likely came into the market…downward pressure is coming from declining moving averages while RSI(14), currently at 41%, is capped by a downtrend line and is still well shy of oversold levels based on John’s 2.5-year weekly chart…significantly, the dollar started under-performing relative to Gold in February after out-performing all of 2013…fundamentally, with the Fed likely to keep interest rates at record low levels for the foreseeable future, dollar bears hold the advantage in our view…
Nickel At Two-Year High
More supply concerns have driven Nickel to a 2-year high…Vale SA was told to suspend mining in New Caledonia after a spill, according to the island nation’s Southern Province government…Nickel has surged 40% this year after leading global miner Indonesia banned exports of raw ores in January…the potential for sanctions against Russia has also aided prices…
“Clearly with the nickel market already tightening on Indonesia and possible sanctions against Russia, this is adding to the general sense that the market is facing a supply shortage over the coming months, if not years,” Bloomberg quoted Robin Bhar, an analyst at Societe Generale in London…
Today’s Equity Markets
Asia
Asian markets were mostly higher overnight…China’s Shanghai Composite added a modest 5 points to close at 2015…China reported today that it posted unexpected gains in both exports and imports for April, beating estimates and creating a trade surplus of $18.5 billion…several analysts now expect the growth in exports to gain further momentum in the coming months, leading to a wider surplus and more appreciation in the yuan later this year…April’s exports rose 0.9% from a year earlier, swinging from a 6.6% fall in March and an 18.1% plunge in February, according to China’s customs statistics…meanwhile, imports in April rose 0.8% after a 11.3% decline in March…
Japan’s Nikkei rebounded overnight with a gain of 130 points…
Europe
European markets were up moderately today…the European Central Bank has left its benchmark interest rate unchanged at a record low of 0.25% amid growing signs that the economic recovery in the 18-country euro zone is gaining momentum…the bank’s 24-member rate-setting council made the decision today at a meeting in Brussels…however, in his news conference following the decision, ECB President Mario Draghi strongly hinted that a rate cut is in the cards for the next meeting in June…he indicated that the euro’s strengthening is a matter of “serious concern” – a significant stepping up of his verbal intervention…a rate cut could give growth a small boost in theory by lowering borrowing costs for banks and companies…it could also help lower the euro, which is near a 2 1/2-year high against the dollar at around $1.395…a weaker euro would help exporters and boost inflation, which at an annual 0.7% is well under the bank’s 2% goal…meanwhile, The Bank of England today held the size of its bond-buying program steady and left its key lending rate at a record low of 0.5%, where it has stood since March 2009…
North America
The Dow is up 49 points as of 8:00 am Pacific…an oddity yesterday…the Dow jumped 118 points while the Nasdaq fell 13 points…according to The Wall Street Journal, there have only been five occasions since the beginning of 2009 when the Dow rose by at least a half percent and the Nasdaq fell by a half percent in a single trading day…
The number of Americans filing new claims for unemployment benefits fell more than expected last week, snapping three straight weeks of increases…
The TSX is 10 points higher while the Venture is unchanged at 1001 through the first 90 minutes of trading…
North American Nickel Inc. (NAN, TSX-V) Update
With Nickel at a two-year high, the outlook couldn’t be better for North American Nickel (NAN, TSX-V) as it gears up to commence another drill program at its promising Maniitsoq Nickel-Copper-Cobalt-PGM Project located on the southwest coast of Greenland…geophysical work commenced over the Imiak Hill conduit complex last month in preparation for upcoming drilling which will follow up on some significant drill intersections last year including 24.75 m of near massive to massive sulphide grading 3.19% Ni, 1.14% Cu and 0.11% Co…NAN’s latest yesterday showed $6 million in the treasury at the end of December, so they’re in good financial shape…
Technically, NAN has been performing in textbook fashion with outstanding support at the 50-day SMA throughout all of 2014 so far…below is an updated 2.5-year weekly chart from John after the stock closed yesterday at 37 cents…note the change from sell pressure, dominant since last October, to weak buy pressure…it would be shocking not to see NAN heat up significantly over the summer, so accumulation around current levels now makes sense as opposed to chasing this at higher prices down the road (as many probably will)…keep in mind that VMS Ventures Inc. (VMS, TSX-V) owns 23.9% of NAN…
Prosper Gold Corp. (PGX, TSX-V) – Ready To Pour Gas On The Sheslay Fire
We haven’t heard much from Prosper Gold’s (PGX, TSX-V) Pete Bernier in recent months, but don’t interpret that negatively…one should view that in a very bullish context, actually…we see an interesting comparison between Bernier and a great former American President, Teddy Roosevelt (beyond their common love for hunting)…Roosevelt’s foreign policy motto was, “Speak softly, and carry a big stick”, and the strategy served him well…
Bernier has been speaking softly in recent months but he’s about to carry a whopper of a stick into the Sheslay district…regular readers know where we stand with regard to Prosper’s Star Project – it is first-rate and led by a superb team with Bernier steering the ship and Dirk Tempelman-Kluit, one of the brightest geologists in the country, at his side…given all the geological, geochemical and geophysical evidence, there’s every reason to believe that Prosper has a high probability of success in terms of being able to connect the advanced Star target with the untested Star North and Star East targets…the three targets are about a kilometre within each other…Prosper starts attacking the Star Project very shortly with step-out drilling, so get ready for a show…meanwhile, Pyrrhotite Creek, about 4.5 km southwest of the Star, is a distinct multiple-target area that has tremendous potential to emerge as a major discovery by itself in the next few months…it has all the classic signatures of a Cu-Au porphyry system…
Prosper’s “heavy lifting” on the ground is going to be an important catalyst for the entire Sheslay district…combine that with Garibaldi Resources’ (GGI, TSX-V) attack on the Grizzly, more drilling at Doubleview Capital’s (DBV, TSX-V) Hat discovery, plus the work of other players in the area including Ashburton Ventures (ABR, TSX-V), Alix Resources (AIX, TSX-V) and Romios Gold (RG, TSX-V), and what you’ve got is the most dynamic exploration camp in British Columbia…
In the meantime, below is a 2.5-year weekly PGX chart…the set-up here is very bullish as PGX has been consolidating in a narrow range since February with tremendous support between 45 and 50 cents (the rising 100-day SMA is 46 cents)…over the last month or so, buy pressure has replaced sell pressure which was dominant since last October…all PGX needs to zoom higher is a catalyst, i.e. – The Big Stick…
Canada Zinc Metals Corp. (CZX, TSX-V) Update
A good opportunity – one we’ve been waiting for – has opened up in our view in Canada Zinc Metals (CZX, TSX-V) which has backed off, as John suspected it would, to the Fib. 61.8% retracement level…CZX is yet another very interesting B.C. play…the company is a dominant landholder in the Kechika Trough featuring several known Zinc-Lead-Silver deposits including the company’s Cardiac Creek deposit which has a NI-43-101 resource…Cardiac Creek forms one of CZX’s two 100%-owned projects – the other is the Kechika Regional which holds significant exploration upside…CZX climbed as high as 60 cents in January before backing off, and now it’s resting just above its rising 200-day SMA at 37.5 cents…RSI(14) is at previous support…CZX is up half a penny at 42 cents as of 8:00 am Pacific…
Highbank Resources Ltd. (HBK, TSX-V) Update
Highbank Resources (HBK, TSX-V) continues to make progress with with its business plan after receiving all the necessary permitting recently to allow for production at its Swamp Point North aggregate project near Prince Rupert…on April 22, Highbank received written notice from Fisheries and Oceans Canada that it has accepted the company’s Dec. 4, 2013, proposal to construct a barge loading facility, comprising barge moorage, barge mooring dolphins and a pile-supported aggregate conveyor, as well as a barge landing ramp, on Portland Canal…site work is commencing prior to production…last month, the company closed the first tranche ($2.7 million) of a planned $4 million debenture financing…
Below is an updated 10-year monthly HBK chart from John…the confirmed breakout above 15 cents is significant as this area now provides new support…note how buy pressure also recently replaced sell pressure which was dominant since the beginning of 2012…HBK is off half a penny at 15 cents as of 8:00 am Pacific…
Note: John and Jon hold share positions in GGI, DBV and ABR. Jon also holds share positions in PGX and AIX.
Yup Sheslay will be a great drill play this year . Also V.SPA in central BC has a multi million deposit and ideal logistic fundamentals just North of Barkerville . Their 43-101 report of over 150 pages out today . Very interesting and the stock is almost free at only 5 cents ….
Comment by Fred — May 8, 2014 @ 8:10 am
May 08, 2014
Prosper Gold Corp. Closes Private Placement; Mobilizes Field Crew
QUESNEL, BRITISH COLUMBIA–(Marketwired – May 8, 2014) – Prosper Gold Corp. (“Prosper Gold” or the “Company”) (TSX VENTURE:PGX) announces that it has completed the previously announced private placement of a total of 6,000,000 units (“Units”) at a price of $0.50 for gross proceeds of $3,000,000 (the “Private Placement”).
Each Unit issued under the Private Placement consists of one common share (“Prosper Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”) with each Warrant exercisable to acquire one Prosper Share for a period of 36 months at an exercise price equal to $0.75. In the event that Prosper Gold’s common shares trade at a closing price on the TSX Venture Exchange of greater than $1.00 per share for a period of twenty consecutive trading days at any time after the closing date of the Private Placement, Prosper Gold may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by Prosper Gold (the “Acceleration Provision”). Prosper Gold is also pleased to announce that existing Insiders have collectively subscribed for more than 1,000,000 Units.
In connection with the Private Placement and in accordance with the policies of the TSX Venture Exchange, finder’s fees totaling approximately $50,000 in cash were paid and approximately 100,000 common share purchase warrants (each, a “Finder Warrant”) were issued. Each Finder Warrant is non-transferable and exercisable for one Prosper Share for a period of 36 months following closing at an exercise price equal to $0.50. The Finder Warrants contain the same Acceleration Provision as the Warrants comprising the Units.
Prosper Gold expects to use the net proceeds from the Private Placement to fund exploration activities for 2014 at the Company’s Star Porphyry Copper Gold Project (the “Property”) and for working capital and general corporate purposes. The Property is optioned from Firesteel Resources Inc. (for further details, please refer to the Company’s May 7, 2013 news release).
All securities issued pursuant to the Private Placement will be subject to a four month and one day hold period in accordance with applicable securities laws. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and were not permitted to be offered or sold within the United States absent registration or an applicable exemption from the registration requirements of such Act.
Mobilization of Field Crew
The Company has mobilized field crews for Phase I of the 2014 diamond drill program on their Star Porphyry Copper Gold Project, located in northwestern BC. Prosper Gold has begun camp reactivation in conjunction with drill mobilization.
For a detailed overview of Prosper Gold please visit the website…
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bernier, President & CEO
Comment by John BMR — May 8, 2014 @ 10:09 pm
Ashburton Ventures Inc (2) (C-ABR) – News Release
Ashburton Ventures arranges $300,000 in financings
2014-05-09 08:26 ET – News Release
Shares issued 35,927,826
ABR Close 2014-05-08 C$ 0.05
Mr. Mike England reports
ASHBURTON COMMENCES HACKETT PROPERTY PROGRAM
Ashburton Ventures Inc. has mobilized crews for a phase 1 exploration program at its 100-per-cent-owned Hackett property in northwest British Columbia’s Sheslay district. The Hackett is contiguous to Doubleview Capital Corp.’s Hat property where copper-gold porphyry discovery holes HAT-08 and HAT-11 are within approximately one kilometre of Ashburton’s property boundary, while Doubleview has also recently completed a follow-up drill program (see Doubleview news release April 30).
Kyler Hardy, Ashburton president, commented: “We are excited to begin work at the Hackett which is part of a Sheslay northwest/southeast structural trend that stretches for many kilometres and has produced extremely promising early results. We’re entering a very active period for this emerging district. This phase 1 program at the Hackett will greatly enhance our understanding of this property as we advance it to the drill-ready stage. With the Hackett and our recently acquired Grizzly West Extension project, Ashburton’s exploration upside in such a prolific district is significant.”
Ashburton arranges financing
To expand its Sheslay exploration plans, Ashburton has arranged a non-brokered private placement of 2.5 million flow-through units at a price of six cents per flow-through unit for aggregate gross proceeds of $150,000. Each flow-through unit will consist of one flow-through share and one warrant. Each warrant will entitle the subscriber to purchase one warrant share for a 12-month period after the closing date at an exercise price of eight cents. The flow-through funds will be used to advance the Hackett and Grizzly West Extension projects.
Additionally, the company has arranged a non-brokered private placement of three million non-flow-through units at a price of five cents per unit for aggregate gross proceeds of $150,000. Each unit will comprise one common share and one share purchase warrant of the company. Each warrant will entitle the holder to purchase one share for a period of 12 months from the closing date at an exercise price of eight cents per warrant share. These funds will be used for general corporate purposes.
The company may, at its sole discretion, pay a finder’s fee to agents of the company consisting of: (1) a cash fee in an amount of 10 per cent of the proceeds raised by such finder as part of this offering, and (2) a number of finder’s warrants entitling the holder thereof to purchase that number of shares of the company that is equal up to 10 per cent of the number of units placed through the finder as part of this offering. Each finder’s warrant will entitle the holder to purchase one share for a period of 12 months from the closing date at an exercise price of 10 cents per finder’s warrant.
Comment by STEVEN1 — May 9, 2014 @ 6:03 am
LOOKS LIKE ALOT OF MONEY COMING ‘INTO’ THE PLAY NOW!!!
Comment by STEVEN1 — May 9, 2014 @ 6:03 am