Commodities have started the new week on a strong note to follow up on Friday’s recovery after a broad sell-off the first four trading days of the month…as of 8:45 am Pacific, Gold is up $11 an ounce at $1,506 while Silver has climbed $1.40 to $37.02…crude oil is up $3.46 a barrel to $100.64 while the U.S. Dollar’s rebound continues…the Dollar Index is up over one-third of a point to 75.06…a rally in the greenback is not surprising given the recent extreme oversold conditions and it’s something we predicted a week ago…further strength in the Dollar in the days ahead could put additional pressure on commodities but as John’s chart shows, the Dollar faces some heavy resistance and the declining 200-day moving average (SMA) at 78.47 is likely about as high as it could get…
U.S. home values fell in the first quarter at the fastest rate since late 2008, according to real estate data firm Zillow, suggesting that a bottom will not be seen until next year at the earliest…Zillow said its home value index fell 3% in the first three months of the year from the previous quarter, and was down 8.2% year-over-year…the number of homeowners under water – those who owe more on their mortgage than their house is currently worth – amounted to 28.4% of single-family homeowners, representing a peak since Zillow began calculating the data in 2009…that was up from 27% in the fourth quarter of last year…the CDNX is back above 2100 which is encouraging…the Index is following through on Friday’s rally with a 20-point gain after two hours and 15 minutes of trading today…it’s currently at 2108…there has been a big shuffle at Seafield Resources (SFF, TSX-V) which has to be considered a very positive development…Cesar Lopez, who has a strong background in South American exploration management and development, is the company’s new Chief Executive Officer…he replaces Tony Roodenburg who will remain as a director…Tom Henricksen, meanwhile, takes over as Vice-President, Exploration, from James Pirie who also remains as a director…Henricksen has over 35 years of mineral exploration experience and has spent the last 15 years on projects in South America…Seafield, which is up a penny so far today at 24.5 cents, exploded from the low 20’s to an all-time high of 77 cents in just one day last December but has since given up all of those gains…the company’s Quinchia land package is Colombia has a great deal of untapped potential and Seafield is also sitting on approximately $15 million in cash…the new management group is conducting a private placement for 10 million units at 30 cents which will raise another $3 million…Roodenburg’s desire over the last year-and-a-half in particular has been to phase himself out of Seafield and concentrate his efforts on Greencastle Resources (VGN, TSX-V)…the fresh faces with Seafield should give that company the boost it needs, and now perhaps Roodenburg can start to make things happen with Greencastle which is currently trading near cash value at 19 cents…we’re expecting news anytime now from Currie Rose Resources (CUI, TSX-V) which is scheduled to resume drilling operations in northwest Tanzania by the end of this month…the property we are keenly interested in is Sekenke which runs in between and surrounds two former producing high grade Gold mines…CUI has not yet drilled this property but has conducted some initial exploration work including geophysics that reveal strong potential for a significant discovery…Currie Rose is up half a penny at 16.5 cents…Gold Bullion Development (GBB, TSX-V) is up half a penny at 39.5 cents…GBB was under heavy selling pressure last week but managed to hold above its March low of 34.5 cents…the rising 500-day SMA at 36 cents provides strong support…Richmont Mines (RIC, TSX) has acquired additional ground near its growing Wasamac deposit…the deal with Globex Mining (GMX, TSX) is a juicy one and underscores the value of Cadillac Mining’s (CQX, TSX-V) claims…
Nice double bottom forming on GBB
Nice to see gold back above 1500 and finding a floor. If we can stay above the 1500 level it will be a nice launch pad!
Comment by Herb — May 9, 2011 @ 8:05 am
To BMR, please EXPLAIN how you KNOW for FACT that ” Roodenburgs desire over the last year and a half has been to phase himself out of SFF and concentrate his efforts on VGN, and now perhaps Roodenburg can start to make things happen at Greencastle”??? No offence but what on EARTH gives you that impression? What has Tony been doing the last year and half at VGN, that he NOW needs to start ” making things happen”?? If history is any indication of WHERE VGN is heading with Tony and his band of clowns at the helm, we only need look at SFF, promise after promise and nothing delivered on time,then I imagine only after a large institutional share holder FORCED tony to step aside. I mean honestly, why else would Tony give up 1 of his pet projects that pays him SO well?? I respect BMR and all they contribute, but PLEASE, BMR pay CLOSE attention to the way you word your phrases, because WHEN Tony screws up VGN, you will have some explaining to do to your readers. It is my feeling, being involved both in SFF and VGN ( I sold SFF after I purchased it at .20 and sold at .46) that Tony is ONLY interested in enriching himself and a few select friends. With SO much potential, VGN should be well over $ 1.00 already. I suppose the ONLY thing that will keep Tony and his band of clowns from ALSO leaving VGN is the monthly cash flow from the oil wells, HE WILL NEVER GIVE UP HIS POSITION as CEO as long as he has this cash cow, too bad really. Disclaimer, all above mentioned is my opinion only and I have no facts to back up those statements, BUT…….
Comment by john — May 9, 2011 @ 8:54 am
Hey all.. any comments on the TYE debacle that is unfolding??? is it just the fact that there was no gold as such???? only VMS type stuff..??? TIA
Comment by Jeremy — May 9, 2011 @ 9:05 am
Just out of curiosity, why doesn’t BMR ever state how much they are DOWN on stocks they own?? Surelly BMR cannot be UP on EVERY stock they pick, can they???? Watch VGN now state that due to TYE’s bad results that they are giving up on their own Blackwater play now….too funny. Anyone know what ryhmes with Tony??? PH_ONY???
Comment by john — May 9, 2011 @ 9:30 am
I dont see why VGN would not explore the blackwater site just on the back of TYE’s poor results, also looking at the map they are not beside each other.
Comment by herb — May 9, 2011 @ 10:51 am
Tony ALWAYS has an EXC– USE as to why NOT to explore something, PERIOD!!! VGN has had these SUPPOSED GREAT Nevada gold properties for YEARS now and have done absolutely nothing with them, what are they waiting for $ 5000 gold?? herb, you know as well as everyone else looking at Tony’s track record, he is a LAZY money collector. If it wasn’t for the monthly income from the oil wells, he’d have left VGN long ago. What happened to the stated claim that VGN was ” looking to acquire an ADVANCED stage gold property, somewhere in the Americas”?? I dont think VGN could find gold in a jewellery store, unless ofcourse someone else pointed it out for them. I am just curious to know why BMR thinks Tony will do something substantial at VGN, why do they, BMR keep pumping a dead horse? Sure VGN has money and is trading at cash value ( we’ve been reminded of this by BMR a 1000 times) but will VGN deploy this cash?? Most likey NOT as it would dry up Tony’s monthly pay cheque.
Comment by john — May 9, 2011 @ 12:00 pm
All fair points John, only time will tell what is going on here. However my understanding is that the Nevada gold properties were not economical back when they were first explored. With gold now hovering at 1500 these properties now makes a lot more sense. Also with focus now away from SFF hopefully and I say hopefully that these properties will begin to see development. I keep asking BMR to do another inteview but they are not responding to that request. I think as you say though action is the only thing that will make this stock start to move again, and he has certainly not provided much of that in relation to VGN. So the most positive thing that could happen now is to see some action.
Comment by herb — May 9, 2011 @ 12:51 pm
Herb, dont hold your breath, the only action Tony likes is to deposit his pay cheque
Comment by john — May 9, 2011 @ 1:28 pm
I think people need to realize that despite BMR offering a decent and free service, people need to also realize that BMR are not professionals. You shouldn’t base your investment decisions purely on their opinions. Just remember, this is a free blog, anyone one of us can create a blog like this. People need to do more of their own DD besides just waiting on every word that BMR has to say.
Comment by seamus — May 9, 2011 @ 2:03 pm
John, I don’t think you’re looking at things from the proper perspective. First, the fact that Roodenburg is no longer guiding Seafield is a major positive for Greencastle. He’ll be able to focus his complete attention on Greencastle which is something he has wanted to do. I suspect we’re going to see a spin-off to separate the oil assets from the gold assets. Then he’ll go aggressive on the gold play. Hang in there – the one thing a Roodenburg play requires is patience. If you’re in at the right price and have patience, you’ll eventually make a bundle (buy a Roodenburg stock on weakness, sell into strength).
Comment by Jon - BMR — May 9, 2011 @ 2:44 pm
Well stated. We’ve made some great calls, including three 10-baggers, but people have to take responsibility for their own decisions. Quite often, many of our readers have been sitting on big profits and haven’t locked those in. Greed and fear are everyone’s worst enemies.
Comment by Jon -BMR — May 9, 2011 @ 2:51 pm
GBB’s PP oversubscribed……..good for GBB. Really wanted in which is good as they must feel the 43-101 will be worth the wait. Comments?
Thanks,
Comment by Dan — May 9, 2011 @ 5:47 pm
Jon,
Thanks for providing this great blog and appreciate all the good work you guys at BMR do! You have made some great calls and helped me and my family bank some good coin. I think a lot of people including myself got caught up in the last big junior run-up chasing momentum now we are sitting on losses. However I think with time those losses will turn to profit as this bull run continues to unfold. The underlining stories of the stocks you guys cover have merit and the insight and knowledge your team bring are highly appreciated. I personally think we will see a big run up this August / Fall. The reason I think this is that we will see a wind down of QE2 and people unwinding their trades accordingly. In fact I think this is what is happening year to date, the market is a forward looking mechanism. When QE3 arrives (and I strongly believe it will) we are going to enter the next phase of this PM bull market.
Be right and sit tight 🙂 GLTA.
Comment by Herb — May 10, 2011 @ 1:27 am
hi bmr , do you guys cover only exploration jnrs or do you cover drillers too ?, Ldi is very attractive right now , q1 end of the month is going to be the best ( read last year end financials ), they sit at pp prices , i even was able to pick some at 28c this am!
This is growing revenues… Real revevnues ! .
Comment by Dude — May 10, 2011 @ 7:10 am