Rouyn-Noranda, Quebec, 11:50 am Eastern
Gold is on the rebound after hitting a 6-week low overnight of $1,352, just above solid technical support at $1,350…as of 11:50 am Eastern, the yellow metal is down $1 an ounce at $1,370 after climbing as high as $1,380…Silver, which has demonstrated strong technical support at $28, is off 16 cents at $28.90…the U.S. Dollar Index is up slightly at 81.07…American job growth was less than expected in December (payrolls increased 103,000 vs. the median forecast of 150,000) but the unemployment rate dropped to the lowest level since May, 2009 (9.4%), reflecting gains in jobs and fewer people in the labor force….it’s estimated that payrolls will need to increase at twice the current pace in the U.S. for further progress in lowering the jobless rate and accelerating the economic recovery…the CDNX is strengthening after dropping as low as 2209 this morning…as John pointed out on his chart last night, the weakness we’ve seen in the CDNX over the last few days has been a golden opportunity in our view to scoop up lower priced shares in many quality situations…this has been nothing more than a healthy pullback in a powerful overall uptrend…2209 could be the low in this mini-correction based on today’s action if the intra-day reversal holds…the CDNX is now ahead 4 points at 2221…we spent most of yesterday doing company research which we’ll be reporting on next week…Gold Bullion Development (GBB, TSX-V) is unchanged at 80 cents and has hit a strong support level (50) on the RSI..other technical indicators also suggest GBB is looking very attractive at the moment…we’re expecting an exciting January for Cadillac Mining (CQX, TSX-V) which is currently down half a penny at 40.5 cents…with its potential property acquisitions in the Great Basin, and some very strategic holdings along the Cadillac Trend which we’ll be reviewing in more detail next week, Cadillac is well positioned for an extremely successful 2011…Sidon International (SD, TSX-V) made a nice jump yesterday, climbing 2.5 cents to 21.5 cents on volume of over six million shares…Sidon is looking very healthy technically…the visuals on Sidon’s first hole at Morogoro East were promising, as reported December 7, and since then the company has also picked up land near Canaco’s (CAN, TSX-V) Magambazi discovery at Handeni…Sidon has traded between 21 and 22.5 cents so far today, and is currently unchanged at 21.5 cents…Currie Rose Resources (CUI, TSX-V), which has declined for six consecutive sessions entering today, is showing strong technical support around its rising 50-day moving average at 31 cents…CUI has an impressive portfolio of projects in northwest Tanzania along with the Scadding Gold Property near Sudbury which it has optioned to Trueclaim Exploration (TRM, TSX-V)…CUI is currently at 30 cents, down half a penny…
i heard that Harold has received drill results via email, and will be reviewing them with his geologist.
news seems very likely for next week!
Comment by Joe Bob — January 7, 2011 @ 9:22 am
SFF slowly flushing away? any thoughts?
Thanking u in Advance,
Nikolay
Comment by Nikolay — January 7, 2011 @ 9:23 am
No problem with SFF. The company is still waiting for approval from the CDNX on the recent financing. Once that comes, news is probably not far off. The fundamentals are strong here and the pullback from the December high has been very normal and presents an opportunity. The weakness in the overall market has not helped SFF these last few days. This is certainly not a stock to worry about.
Comment by Jon - BMR — January 7, 2011 @ 9:42 am
Will there be anything new on the Cadillac front in the beginning of next week that you haven’t reviewed in earlier reports? I’m in longterm but how does the TA look short term? Asking because of its strong run last couple of months, a bit worried about a significant drop if nothing new comes to the table. Wish you all a great weekend, keep up the good work. – J.C.
Comment by J.C. — January 7, 2011 @ 9:57 am
The technicals on CQX are looking strong, as John recently confirmed. As far as the fundamentals go, a few things are obviously cooking. Reading between the lines of the last news release, we believe CQX is close to a significant property acquisition(s) in the Great Basin. Here on the Cadillac Trend, Richmont is expected to release new drill results from Wasamac shortly and an updated resource. We’re continuing our own research on that situation which looks very promising. Cadillac holds 100% of the “Wasa” claims which immediately adjoin Richmont’s property, and the structure dips north toward Cadillac’s ground. In addition, we’re learning more about Cadillac’s holdings elsewhere including immediately south and west of Vantex’ Galloway Project (McEwen has just become a major shareholder of VAX). Cadillac has partnered with Visible Gold on over 7,000 hectares (including those claims south and west of Galloway) and VGD is going to be very aggressive on the exploration front. We’ll be meeting their people very soon. Lots happening with CQX. Yes, it has made a strong run the last couple of months but the market cap is still only $10 million. This is a very special situation and we are extremely bullish about it.
Comment by Jon - BMR — January 7, 2011 @ 10:45 am
Hi Jon, when will you be reporting on GBB? Is the Basa interview still a go?
Thanks, Dan
Comment by Dan — January 7, 2011 @ 11:34 am
Yes, Dan, we will be reporting on GBB. This is also the first of two visits to this area in January. An interview with Basa has been confirmed – soon but I don’t know the exact timing. We have a couple of options with that. My preference is to do a face-to-face interview as opposed to one over the phone.
Comment by Jon - BMR — January 7, 2011 @ 11:50 am
Thanks Jon. On another note, according to a few post on the bulletion boards CUI has their results in hand and will release news next week.
Comment by Dan — January 7, 2011 @ 11:54 am
Thanks for your extensive response Jon. Looking forward to your reviews next week on Cadillac,GBB and others. – J.C.
Comment by J.C. — January 7, 2011 @ 3:45 pm