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Gold is lower again today but this is a necessary and healthy pullback as the yellow metal clearly became very heavily overbought after breaching $1,800 the other day…as of 7:50 am Pacific, Gold is down $39 an ounce at $1,729…John will produce an updated Gold chart over the weekend (in addition to a CDNX chart analysis)…Silver is up a nickel at $38.69, Copper is unchanged at $4.02, Crude Oil is up $1.01 at $86.73 while the U.S. Dollar Index is essentially unchanged at 74.64…U.S. retail sales in July posted their biggest gain since March, tempering fears that the world’s largest economy might be slipping back into recession…sales climbed 0.5%, in line with analysts’  forecasts and following an upwardly revised 0.3% gain in June…consumer spending, of course, accounts for much of U.S. economic activity (two-thirds of it) and the Commerce Department data released this morning indicates the third quarter was off to a decent start…excluding autos, sales increased 0.5% which was well above forecasts for a 0.2% gain…European stocks climbed after a handful of European governments banned short-selling of financial stocks….it’s always dangerous in our view when governments start meddling in the markets like that…France, Italy, Spain and Belgium imposed the ban while Britain, the Netherlands and Austria said they saw no need for action…Germany remained silent….the CDNX is up 14 points at 1808 which is just a few points below its close last Friday…Visible Gold Mines (VGD, TSX-V) jumped 26% on news yesterday and is up another 2 pennies at the moment to 36 cents…here’s what is so significant about VGD’s news yesterday…the company drilled what was essentially a “blind hole” (previously unexplored ground at Wasa Creek) and hit mineralization at different depths including a 16.4-metre shear zone…they now have a trail to follow which is very important…the hole suggests they could be at the edge of something bigger…LBWC-11-03 was collared about 4 kilometres southwest of Richmont Mines’ (RIC, TSX) Wasamac Main Zone and about 3.5 kilometres southeast of the Francoeur Mine, so VGD is drilling in a rich geological environment…what’s also interesting is that the style of mineralization in parts of LBWC-11-03 is identical to that of Wasamac – a close coexistence of Gold and pyrite disseminated in an altered shear zone…it’s still very early in the game for VGD at Wasa Creek but the news yesterday gives us confidence that this story has serious  “legs” to it…results are pending on 6 of the 7 holes completed so far…two drill rigs are concentrating on the area around LBWC-11-03 with 50-metre step-out holes and a “wall” of holes to the east in a north-south direction for 1.5 kilometres crossing the Cadillac Fault…the prolific Cadillac Fault runs right through the middle of the property…meanwhile, drill targets are being finalized at Wasa East which also looks very intriguing…VGD geologists see a possible connection between the Wasa Shear Zone (dips to the north) and the Cadillac Fault which are on either side of Wasa East…it seems some secondary faults are present which does well for the potential discovery of mineralization on that property…in addition, VGD has traced Richmont’s Wildcat Zone to the south to three claims that form part of the Wasa Creek Property…LBWC-11-08 was collared about 1000 metres south of the Wildcat Zone (a south dipping structure) which is about 300 metres south of the Wasamac Main Zone…there are two Gold systems at Wasamac, and little exploration has been completed to test the Wildcat Zone…wow, there’s a lot happening here and next week Visible Gold Mines is expected to outline its drill program for its very promising Joutel Project 150 kilometres north of Rouyn-Noranda…we added VGD to the BMR model portfolio in the spring of this year because of our strong belief that this is a well-managed, aggressive company with a talented geological staff and the ability to make a major discovery in northwest Quebec…VGD has $6 million in working capital…John’s updated chart gives a very bullish reading on the stock from a technical perspective…

(Note:  John and Jon continue to hold positions in VGD while Terry does not hold a position)…Richmont is taking a slight breather after a big run this week…as of 7:50 am Pacific, RIC is off 18 cents a share at $8.82…it, too, has a powerful-looking chart as the stock broke above important resistance this week in the $8.40 to $8.50 area…the earnings outlook for Richmont and the success of its exploration program at Wasamac suggest this stock could hit much higher levels in the year ahead…also in northwest Quebec, Gold Bullion Development (GBB, TSX-V) and Adventure Gold (AGE, TSX-V) have both bounced back after hitting lows of 31.5 cents and 40.5 cents, respectively, this week…these are also quality situations that we’ll be following very closely in the weeks ahead…it’s quiet on the news front today with the CDNX…Seafield Resources (SFF, TSX-V) is one of the most active traders so far today…it’s up 3 pennies to 25.5 cents…the company made a significant announcement yesterday as Giovanny Ortiz, the former exploration manager of the Angostura Project, has been appointed General Manager of the company’s operations in Colombia…we like how new President and CEO Cesar Lopez is pulling things together with Seafield…patient shareholders have a chance to do extremely well with this company in the year ahead in our view…many of the Yukon plays have recovered nicely over the last couple of days after Monday’s selling climax…when there’s blood in the streets, that’s always the time to buy…just a few examples – on Monday, Kaminak Gold (KAM, TSX-V)  dropped as low as $3.25, Atac Resources (ATC, TSX-V) plunged to $7.05 and Silver Quest Resources (SQI, TSX-V) hit support at 83 cents…it takes nerves of steel to jump into a falling market but that’s often necessary in order to make the big money…the CDNX was clearly in heavily oversold conditions Monday and Tuesday and bargain hunters wisely stepped in…another Yukon play we like (as we’ve previously mentioned)  that is worthy of our readers’ consideration is Pacific Ridge Exploration (PEX, TSX-V) which dropped as low as 43.5 cents Monday after hitting a 52-week high of 68 cents July 29…it’s currently up a penny at 51 cents…John sees a lot of positives in the PEX chart which he updates below…

(Note:  John, Jon and Terry do not hold positions in Pacific Ridge Exploration)…