Gold is firmer but off its highs of the day after a weaker than expected U.S. jobs report this morning that has temporarily cooled off the greenback…as of 8:00 am Pacific, bullion is up $5 an ounce at $1,266 – still down more than $20 for the week, however…Silver is up 2 pennies at $19.08…Copper is unchanged at $3.15…Crude Oil is down 41 cents at $94.04 while the U.S. Dollar Index has eased one-fifth of a point to 83.72 (see updated charts below)…
SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, said its holdings fell 4.78 tonnes to 785.73 tonnes yesterday – the biggest one-day drop since mid-April…in the physical markets, buying has picked up slightly in Asia due to lower prices…premiums in China rose to about $4-5 an ounce from $3 in the previous session…a pick-up in physical demand from both China and India is going to be crucial in order to put a solid floor of support underneath Gold prices, especially in light of a bullish U.S. Dollar Index…
While August 2014 sales of the U.S. Mint American Eagle Gold bullion coins more than doubled from a year ago, year-to-date sales of the coins have declined almost 54%…American Silver Eagle coin sales are also down significantly from last year, U.S. Mint data reveals…
September is historically Gold’s best-performing month of the year, returning just over 2% on average since 1969 but it has fallen as much as 2% already this month when it touched a 3-month low yesterday…
On The Geopolitical Front
Seeking to counter Russian aggression, NATO leaders – including Canada – approved plans today to post several thousand troops in Eastern Europe who could quickly mobilize if an alliance country in the region were to come under attack…NATO Secretary General Anders Fogh Rasmussen said the new unit would send a clear message to potential aggressors, namely Russia…
Confronting another pressing international crisis, Rasmussen said NATO stands “ready to help” Iraq fight back against a violent militant group, but noted that the Iraqi government has not made any such request…President Obama and British Prime Minister Cameron have been pressing their NATO counterparts to join a coalition of nations that could degrade Islamic State militants…
Today’s Equity Markets
Asia
Asian markets were under some pressure overnight but China’s Shanghai Composite bucked the trend, jumping another 20 points (the sixth consecutive daily advance) to close the week at 2326…that’s the Shanghai’s best level since March 2013…
Europe
European markets are mixed in late trading overseas after rallying strongly yesterday on the stimulus measures announced by the ECB…
North America
The Dow is down 37 points as of 8:00 am Pacific…
U.S. job growth slowed to its lowest level of the year in August, a stumble for labor markets that had delivered a string of steady gains over the prior six months despite uneven economic growth…non-farm employment advanced a seasonally adjusted 142,000 last month, the Labor Department reported this morning…the unemployment rate, obtained via a separate survey of households, ticked down to a seasonally adjusted 6.1% in August from 6.2% in July…the jobless rate has fallen 1.1 percentage points since August 2013, when it was 7.2%…economists surveyed by The Wall Street Journal had expected payrolls to rise 225,000 and the jobless rate to fall to 6.1%…
The TSX is 51 points lower while the Venture is flat at 995, several points above its rising 200-day moving average (SMA)…
U.S. Dollar Index – What’s Happening?
Broadly speaking, commodities tend to move inversely to the dollar, so Gold, Crude Oil and other commodities have certainly been under pressure due to the rapid rise of the U.S. Dollar Index which has been driven by an out-performance of the U.S. economy vs. Europe in particular, and diverging monetary policies between the two…
U.S. Dollar Index Short-Term Chart
As we noted previously, the recent breakout above the RSI(14) downtrend line was a significant technical development and the Dollar Index immediately accelerated, powering through three Fib. resistance levels…while RSI(14) is now is overbought territory at 77% on this 2.5-year weekly chart, momentum is clearly on the side of the Dollar Index…at a minimum, we expect a test of the 84.5 Fib. resistance and likely the 2013 high of 84.96…this could certainly be followed by a swift correction to unwind overbought conditions…
U.S. Dollar Index Long-Term Chart
From a long-term perspective (34-year monthly chart), the Dollar Index is still in a primary downtrend and only a confirmed breakout above the mid-90’s would change that…what’s interesting, though, is that an RSI(14) breakout has occurred above a downtrend line in place for the last several years – this is additional evidence that the greenback’s strength at the moment has to be taken seriously…
TSX Updated Chart
John’s next measured Fib. resistance level for the TSX is 15800, more than 200 points above yesterday’s close…however, this 6-year monthly chart shows RSI(5) at rather alarming overbought levels (95%) for an extended period – this could continue for a while longer, but not much longer before a correction sets in to unwind overbought conditions…the 50-day SMA, currently near 15400, has been a strong supporting moving average since the summer of last year…
Calibre Mining Corp. (CXB, TSX-V) Update
Calibre Mining (CXB, TSX-V) is very active with excellent geological prospects in Nicaragua including the Eastern Borosi Project which was recently optioned by Iamgold Corp. (IMG, TSX)…drilling continues; initial Phase 1 drill results were released earlier this week…highlights included 4.8 m grading 25.7 g/t Au and 35.2 g/t Ag (GP14-003), 6 m grading 14.4 g/t Au and 14.5 g/t Ag (GP14-002), and 1 m grading 39.9 g/t Au and 132.0 g/t Ag (GP14-001)…
The first six drill holes of the initial 30-hole program have tested the Guapinol Gold-Silver vein system over a strike length of 350 m and to a depth of 100 m…mineralization remains open down plunge from the reported intercepts and potential exists for additional mineralized zones along the strike of the Guapinol structure…
Eastern Borosi hosts Gold-Silver resources in two deposits and a series of well-defined low-sulphidation epithermal Gold-Silver targets…approximately 3,000 m of diamond drilling in this program will test approximately 3 km of strike length of previously identified Gold-Silver-bearing structures in this prolific district…
In early July, CXB provided an encouraging update with regard to its Minnesota Gold Project JV in Nicaragua with B2Gold Corp. (BTO, TSX)…B2Gold also increased its equity ownership in CXB to approximately 15.2% by exercising common share purchase warrants for proceeds to Calibre of $500,000…
Technically, John noted how CXB broke out above a 2-year downtrend channel near the end of June – a very bullish development…RSI(14) at 69% continues to climb an uptrend line on this weekly chart, and an important breakout above 7.5 cents recently occurred…CXB is currently consolidating in an area of chart resistance, and is unchanged at 10 cents as of 8:00 am Pacific…
Barisan Gold Corp. (BG, TSX-V) Update
Improved results reported by Barisan Gold (BG, TSX-V) yesterday at its Upper Tengkereng Project in Indonesia…hole UTD-008, in fact, is the best hole drilled so far, returning the highest grades intercepted over the entire length of a hole as well as the longest intercept above 1% CuEq of any hole drilled to date at Upper Tengkereng…UTD-008 included 506 m of 0.7 g/t Au and 0.6% Cu (1.1% CuEq at current market prices) from 188 m to 694 m…drilling continues; the high-grade zone outlined so far appears to be approximately 700 to 800 m deep starting from surface and contains three distinct types of mineralization stacked one on top of the other…
Technically, BG is strengthening with a breakout above a downtrend line in place for all of this year…strong chart support at 15 cents, and John has outlined the measured Fib. resistance areas…BG is unchanged at 19.5 cents through the first 90 minutes of trading…
Note: John, Terry and Jon do not hold share positions in CXB or BG.
FNC screaming buy now @ .05 …..check recent insiders buys and cancellations
Comment by Frank — September 5, 2014 @ 10:01 am
Jon, westpoint res. ,(cannabix tech.) trades on Canadian exchange? Richard l
Comment by richard l — September 5, 2014 @ 12:30 pm
Yes, BLO on the CSE, they were WPO on the Venture and then made the switch.
Comment by Jon - BMR — September 5, 2014 @ 12:33 pm
For those who haven’t had a chance to read this exciting brand new discovery
250 meters Gold-Bearing Corridor on Anik
Posted by Geomega – September 4, 2014 – News
Highlights of this news release:
■New outcrop grading 3.16 g/t Au located 200 meters N-E of the discovery outcrop
■Two (2) blocks grading 2.63 g/t and 2.84 g/t Au located 50 meters S-W of the discovery outcrop
■One (1) meter channel sampling on the toppled block from the discovery outcrop grading 3.25 g/t Au
■Property 100% owned by GéoMégA (claimed in 2011 and 2013)
Montreal, September 4, 2014 – Futher to the news release of August 29, 2014, Geomega Resources Inc. (“GéoMégA” or the “Company”) (TSX.V: GMA), is pleased to announce the discovery of new gold-bearing outcrops revealing a 250 meters mineralized corridor on its Anik property located 40 km south of Chapais, in Québec. Three (3) mineralized outcrops, more then 250 meters apart, confirm the extensions and gold potential of the corridor. A saw sample taken on the new, mechanically stripped outcrop graded 3.16 g/t Au. In addition, two (2) new angular to sub-angular blocks, located 50 meters S-W of the discovery outcrop, graded 2.63 and 2.84 g/t Au. The gold-bearing corridor is located within an important structural zone of the Guercheville/Opawica deformation corridor.
“Anik is sending us excellent signals with its various mineralized outcrops and angular blocks near the discovery. We are at the beginning of a new gold discovery. Currently, the best results (7.86 g/t, 8.03 g/t and 10.30 g/t Au) are in altered, highly friable schists. The presence of overburden throughout the gold-bearing corridor makes access to the schists difficult. The work resumes next week to identify the extensions of the mineralized outcrops and identify drilling targets.” comments Alain Cayer, Vice-President Exploration of GéoMégA.
To view the details of the gold-bearing corridor on the Anik property (maps and pictures), please visit the Geomega web site.
The lithologies, alterations and mineralizations found in the sector are extensive and showcase significant hydrothermal activity in this portion of the Guercheville/Opawica deformation corridor. Ultramafics, mafics, sediment units and felsic dikes are among identified lithologies. Alterations found are sericite, ankerite, silica-quartz, talc, tourmaline, fuchsite and green and black chlorite. The mineralization consists of traces to 10% disseminated pyrite or locally in veinlets and traces of chalcopyrite. Generally, they are associated with silicification and ankeritisation within a wide zone of sericite schist.
About the Anik property
The Anik property is located 40 km south of the town of Chapais, in Québec and consists of 144 mining claims covering an area of approximately 7,382 hectares. The project benefits from a permanent access, public infrastructure and an experienced workforce in the immediate vicinity.
The Company’s website will be updated during the month of September.
NI 43‐101 Disclosure
Alain Cayer, P. Geo., MSc., Vice-President Exploration of GéoMégA, is the Qualified Person under NI 43-101 guidelines who supervised and approved the preparation of the technical information in this news release.
All samples have been assayed at the ALS Global laboratory in Val d’Or by standard fire assay followed by atomic absorption and by gravimetry if results are greater than 0.50 ppm Au. A multi-elemental analysis by aqua-regia and spectroscopy (ICP-AES/MS) will be realized at the ALS Global laboratory in Vancouver, for each sample. Quality controls include systematic addition of blank samples and certified gold standards to each batch sample sent to laboratories.
About GéoMégA
GéoMégA is a mineral exploration and evaluation company focused on the discovery and sustainable development of economic deposits of metals in Québec. GéoMégA is committed to meeting the Canadian mining industry standards and distinguishing itself with innovative engineering, stakeholders’ engagement and dedication to local transformation benefits.
50,401,283 common shares of GéoMégA are currently issued and outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Simon Britt
President and CEO
GéoMégA
(450) 465-0099
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecasted or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company’s filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.
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Comment by Dan — September 5, 2014 @ 1:51 pm
I hear you frank. Although with all of.the advanced projects they have one would have to question why fnc is at 5 cents with magpie news due very shortly. Imo I think the market doesn’t like who is running the show and it seems like fnc is a cash cow for everyone except it’s shareholders.
Comment by Tony t — September 6, 2014 @ 6:00 am