Gold has traded between $1,227 and $1,233 so far today…as of 7:00 am Pacific, bullion is down $2 an ounce at $1,229…Silver is off just 1 cent at $17.20 (see updated charts at bottom of today’s Morning Musings)…Copper is up a penny at $3.08…Crude Oil has fallen $1.44 a barrel to $79.57 on a Goldman Sachs downgrade while the U.S. Dollar Index has retreated nearly one-tenth of a point to 85.62…
The Gold market will be watching the outcome of this week’s Federal Reserve meeting (Tuesday and Wednesday) with great interest…bullion needs a catalyst to push through a stiff resistance band between $1,240 and the low $1,250’s, and whether the Fed can be that catalyst remains to be seen. “It’s hard to judge the impact of the upcoming FOMC meeting on Gold, except to say its impact will likely be transmitted to the bullion markets via the reaction of the U.S. dollar,” bullion analysts at HSBC stated Friday…
Interesting note from Frank Holmes in his weekly Investor Alert at www.usfunds.com…severe droughts in the western United States may weigh heavily on mining companies operating in the region…in 2013, mining companies around the world spent $12 billion on water infrastructure, a whopping 275% increase from 2009…the extra costs incurred by maintaining water quality and quantity are problematic for the industry…
In a research note issued yesterday, analysts at Goldman Sachs are calling for WTI to fall as low as $70 a barrel during the second quarter of 2015 when it expects oversupply to be most pronounced (bullish for Gold producers in terms of cost savings)…
The Wall Street Journal reported this morning that a single buyer (believed to be a London hedge-fund manager that focuses on metals trading) has snapped up more than half the Copper held in London Metal Exchange warehouses, giving it control over a crucial source of supply and raising concerns among traders about the potential for higher prices…on several occasions in the last month, this buyer held as much as 90% of the world’s Copper stored in LME-licensed warehouses, equal to about 140,000 tons…as of last Wednesday, the buyer owned between 50% and 80% of Copper held in warehouses, according to the most recent exchange data…this would be worth anywhere from roughly $535 million to about $850 million…
Giant Gold Nugget
One of the largest Gold nuggets in modern times pulled from northern California’s Gold country has been sold to a secret buyer for approximately $400,000…the new owner of the so-called Butte Nugget and its exact price will both remain mysteries at the buyer’s request, the San Francisco Chronicle reported Saturday…however, Don Kagain, a coin dealer who brokered the deal, said that a “prominent Bay Area collector” paid about $400,000 for the nugget weighing 6.07 pounds…historically, prospectors found giant Gold nuggets in California during the 19th century Gold Rush days, including a 54-pound chunk found in Butte County in 1859…however, it has been decades since a report of anyone discovering a rock of 6 pounds or more in California…
This 6-pound Gold nugget was found in July in the mountains of Butte County, California, and and was purchased Saturday for about $400,000 by a prominent Bay Area collector.
Today’s Equity Markets
Asia
Asian markets were mixed overnight…China’s Shanghai Composite fell for a 6th straight session, losing 12 points and hitting an 8-week low…Japan’s Nikkei, however, climbed 97 points to finish at a 2-week high…
Europe
European markets are down significantly in late trading overseas… a report by the influential Ifo think tank showed German business sentiment darkened in October, hitting its lowest level in almost 2 years…
North America
The Dow is down 65 points as of 7:00 am Pacific…the TSX has lost 149 points, thanks to weakness in energy stocks, while the Venture, also hurting by the drop in Crude, is off 8 points at 798…
Garibaldi Resources Corp. (GGI, TSX-V) Update
Garibaldi Resources‘ (GGI, TSX-V) proven track record in Mexico surely has much to do with the unsolicited approaches the company has received, as reported last Thursday, with regard to its Rodadero North high-grade Silver-Gold Project which is looking more promising than ever as Phase 2 drilling continues along with extensive sampling and mapping throughout the 45 sq. km area…
Are the “dots” beginning to connect at Rodadero given the numerous well-defined targets that have been outlined north, east and south of the Silver Eagle discovery?…
Click on the arrow below for more comments from GGI President and CEO Steve Regoci from our interview Friday afternoon (to ensure high quality HD viewing, simply manually adjust your setting if necessary at the bottom right corner of the video)…
Updated GGI Chart
Some significant technical developments in GGI after last week’s reversal on Thursday’s news…RSI(14) on this 9-month daily chart has broken above a downtrend in place since July, and finished Friday at 54%…such a breakout is typically very bullish…the EMA(20) is now reversing to the upside, in a pattern similar to that seen in late April, -DI is falling quickly and sell pressure – dominant since August – has been replaced with buy pressure…this is a rather dramatic and potentially very significant turn…
GGI is up a penny at 22 cents as of 7:00 am Pacific…
Columbus Gold Corp. (CGT, TSX-V) Update
Columbus Gold (CGT, TSX-V) continues to show technical promise as well as progress on the ground with 3 drill rigs completing a Phase 2 program at the Montagne d’Or Gold deposit (Paul Isnard Project) in French Guiana…
Recent results from hole MO-14-167 (38.6 m grading 4.48 g/t Au) were highly impressive and demonstrate the potential for exceptional grades and widths in the principal UFZ zone…
The Montagne d’Or deposit hosts an inferred resource of 140.1 million tonnes grading 1 g/t Au for a total of 4.3 million contained ounces…an updated estimate is expected following completion of the current drilling which is being financed by Nord Gold NV…this is part of a minimum $30-million (U.S.) exploration and development program pursuant to which it can earn a 50.01% interest in Montagne d’Or and the Paul Isnard mineral claims by completing a bankable feasibility study no later than March 2017…
Meanwhile, keep an eye on CGT’s Eastside Gold Project in Nevada (news on that last Thursday)…starting in January, Columbus plans to drill more than 60,000 meters in 250 rotary holes (along with 2,576 meters in 10 to 12 core holes for detailed metallurgy) with the aim of establishing an initial resource calculation for Eastside by late 2015…
Late last month, Columbus completed a $5.36 million private placement with a “prominent” U.S. investor…
Technically, CGT has the advantage of a rising 200-day SMA…its immediate challenge is to bust out above the downtrend line in place since Q1 on this 2+ year weekly chart…strong support at 40 cents…
CGT is off 1.5 cents at 42.5 cents as of 7:00 am Pacific…
Probe Mines Ltd. (PRB, TSX-V) Update
It has been a while since we’ve done an update on Probe Mines (PRB, TSX-V), but extensive drilling, advanced metallurgical testing and environmental studies continue at the company’s multi-million ounce Borden Lake deposit in northern Ontario…no drill results have been released since July, so it’s reasonable to expect a progress report from the company in the near future…a Preliminary Economic Assessment for Borden Lake is being worked on, and keep in mind that the company still has over 60 km of previously unexplored strike length with the Borden Lake Belt to investigate…
Technically, Probe has been firming up recently after forming a strong base around the $2.20 level…the 50-day SMA at $2.35 is beginning to reverse to the upside, always a positive sign…clearly, PRB commands close attention entering the final 2 months of the year – the stock has generally outperformed Gold since the second quarter of last year…
PRB is up 3 pennies at $2.50 through the first 30 minutes of trading today…
Gold Long-Term Chart
Below is an interesting long-term technical outlook on Gold and how bullion could possibly take a run toward the $3,000 level in a powerful “Wave 5” move over the next few years…
The Gold price jumped 293% in “Wave 1” that lasted more than 7 years…”Wave 3” started in late 2008 and ended in late 2011 at at all-time high of $1,924…the “Wave 3” gain was 183% over a shorter time period…”Wave 5” has the potential to take bullion from around its current level to nearly $2,800 an ounce…
One concern with this 34-year monthly chart is the emergence of sell pressure after 12 consecutive years of buy pressure…just temporary, or exactly how long will that continue for?…
Silver Short-Term Chart
Silver’s immediate technical challenge is to overcome resistance around $17.40 (it attempted to do so last week) and push above RSI(14) resistance at 40%…this would also produce a confirmed breakout above the downtrend line on this 6-month daily chart…
Sell pressure has weakened considerably since peaking in late August/early September…in addition, the metal has emerged out of an extreme RSI(14) oversold condition that mirrored the overbought levels that dominated from mid-June to mid-July…
Silver Long-Term Chart
This long-term chart suggests that Silver is in the process of bottoming out but may not have found a final low just yet…next major support is at $16, and that may have to be tested…the 2008 and 2010 lows came on spikes to the downside – that’s something to watch for…
Note: John and Jon both hold share positions in GGI.
Fancamp’s Magpie Fe concentrate “meets specifications”
2014-10-27 13:19 ET – News Release
Mr. Peter Smith reports
FANCAMP EXPLORATION LTD.: UPDATE, MAGPIE TEST RESULTS
Fancamp Exploration Ltd. (FNC.V) has released final test results on bulk samples from its 46.7-per-cent-owned Magpie Mines Inc. massive titaniferous magnetite mineralization sent to China for testing in late 2013. The work was carried out by the Pangang Group using its proprietary technology for beneficiating the ore and producing iron concentrate suitable for Pangang (and some other Chinese) smelters. Testwork included studies of the properties and relative grindability of the mineralized material, in addition to ore beneficiation using multistage grinding and separation to achieve optimal Fe concentrates.
Results show that the Fe concentrate produced by beneficiating this material meets Pangang’s specifications. Further discussions and meetings between Magpie and Pangang management groups are scheduled to take place during the month of November, 2014.
© 2014 Canjex Publishing Ltd. All rights reserved.
Comment by Tony T — October 27, 2014 @ 9:32 am
GGI geologist are about as excited as Regoci have ever seen these guys. Very very blue sky. Expanding to the north south and to the east. Definitely looks to their guys that the system at Rodadero is connected. All mineralization north, south east is identical to silver Eagle mineralization. For Regoci to say this, I believe it has to be true and it is only a matter of proving it up. Unsolicited visits by leading silver and gold producer, not once but twice is a testament to the scope and magnitude of Rodadero. I won’t be disappointed either if sheslay drilling is postponed until spring 2015. Jon, did you ask Regoci how many drills are turning on Rodadero? I know they own their own drill, but didn’t GGI go get another capable of drilling deeper and one that was able to handle the harder core mineralization?
Comment by Dan — October 27, 2014 @ 1:45 pm
for those who aren’t aware of Pangang group they”re a company with the 24 billion dollar market cap and the largest steelmaker in western China and the second or third largest in all of China. Great news for Fancamp.
Comment by tony t — October 28, 2014 @ 3:41 am
We have been waiting all year for something exciting to happen
to ignite the market, so far nothing has happened, not enough
to ignite the market anyway. So far this morning, no one out
there is willing to pay 0.225 for some of my GGI stock, so much
for a dreadful market. Even with good GGI news, nothing is
certain in this market anymore & we do have to depend on the
market for profits don’t we.
Comment by Bert — October 28, 2014 @ 7:27 am