We warned about gold being short-term overbought the other day, and sure enough investors got their reason to sell with the Dubai debt scare driving up the U.S. dollar this morning…gold was down as much as nearly $60 an ounce to $1,136 but has since recovered to the $1,170 area by 7:30 am pacific time this morning…
Of more pressing concern to readers of this site is the Ventana (VEN, TSX-V) situation in Colombia…Ventana was halted near the end of yesterday’s trading session and came out with news that the owner of the mineral rights at Bodega has filed an application for arbitration related to an option agreement that would allow Ventana to acquire the deposit…Ventana was down sharply at the open this morning but has since recovered somewhat…all the other Colombian plays are showing a little weakness this morning…we don’t believe Ventana’s battle with the vendor is terribly surprising or cause for great alarm…this has nothing to do with the government or mining laws, and everything to do with individual greed…Ventana’s legal position is solid as a rock…the company also reported yesterday it is in “advanced talks” that could lead to a buyout of the company, which makes us wonder if the problem with the vendor is not part of some sort of power play…we’re likely to see more situations like this in the mining industry with gold at record highs…
Bottom line: The Venture Exchange is in the early stages of a major bull market…the Venture is holding up well this morning and we expect Ventana and all the Colombian plays, including Seafield Resources (SFF, TSX-V), will be headed higher, not lower…
We are continuing to work on finalizing a MAJOR report on Seafield which investors are going to find incredibly interesting…it will clearly lay out our case that Seafield could very well be a 10 to 20 bagger from current levels…we have come to that conclusion after pouring through all the technical data on the Quinchia Property which we expect Seafield will complete its acquisition of very soon (within the next couple of weeks)…this will be a very detailed report and will include comparisons with other significant deposits that are commanding much higher valuations…
Can you please shed some light on why Mr. Roodenburg has been unloading close to 300k shares since October, little strange for the CEO to be dumping at these very low levels. If things are as good as you are speculating shouldn’t he be buying?
Comment by tony nero — November 29, 2009 @ 1:24 pm