Gold is under pressure this morning after yesterday’s rather hawkish Fed minutes, hitting a 2-month low and extending its losses to a fifth session…as of 8:35 am Pacific, bullion is down $14 an ounce at $1,277…Silver is off 8 cents at $19.37…Copper is up a penny at $3.19…Crude Oil has reversed and is now up 63 cents at $94.08 while the U.S. Dollar Index is off one-tenth of a point to 82.15 after surging as high as nearly 82.40 where there is significant technical resistance (see updated chart below)…
Minutes yesterday from the most recent FMOC meeting indicated officials debated whether they might need to raise interest rates sooner than expected in light of a strengthening recovery, but they were restrained by lingering doubts about whether the economy’s gains would persist…clearly, however, there is an intensifying debate inside the central bank about when to respond to a surprisingly swift descent in the unemployment rate and a pickup in consumer demand…
Focus now turns to the annual Kansas City Federal Reserve meeting in Jackson Hole, Wyoming, that begins today…Fed Chair Janet Yellen and ECB leader Mario Draghi are both scheduled to speak tomorrow…in the past, Jackson Hole has yielded important U.S. monetary speeches…
Market Literacy
Most Americans don’t realize the stock market gained 30% last year, and only one in nine call themselves “savvy” about investing, according to a recent survey…Gallup found that 37% of those polled believe the market increased 10% in 2013, a year in which the S&P 500’s total return was actually 32%…just 7% recognized the 30%+ gain, less than the number (9%) who thought stocks actually decreased in 2013…those results mesh with a general distrust of the market, which is also a sign the market hasn’t topped out yet…
Given the choice of what to do with an extra $10,000 in cash, 41% said they would put it in the market, but 36% opted for cash and 20% chose a near-zero yielding certificate of deposit…only 16% of respondents said they were “not nervous at all” about stock investments, while 11% classified themselves as “extremely nervous” and 34% as “somewhat nervous”…
The sample audience wasn’t exactly random, either – the Wells Fargo/Gallup Investor and Retirement Optimism Index poll asked questions of investors with at least $10,000 in stocks, bonds, mutual funds or in retirement programs such as a 401(k) or IRA…
Today’s Equity Markets
Asia
Japan’s Nikkei average surged 132 points overnight to close at 15586…China’s Shanghai Composite, however, surrendered 10 points to finish at 2230…it appears China’s economy may face an uphill battle for the rest of 2014, adding pressure on Beijing to step up government spending or free up money to spur growth…the latest sign of sluggishness came today when preliminary August manufacturing data showed an unexpectedly sharp drop in growth…it follows other signs of a slowdown in July, including weak domestic investment demand, a sharp drop in credit and a third consecutive monthly decline in housing sales…
Europe
European markets were up moderately today…business activity in the euro zone expanded sluggishly in August, held back by weakening factory output in its two biggest economies…financial data firm Markit said its PMI for the euro zone, a closely watched gauge of private sector activity, weakened in August to 52.8 from 53.8 in July…a reading above 50 indicates expansion…the figures suggest the economy of the 18-nation currency union slowed a little over the summer, a sign its feeble pace of growth in the second quarter is continuing in the third…
North America
The Dow is up 75 points, back above 17000, as of 8:35 am Pacific, while the S&P 500 has hit a new all-time high…the TSX is off 21 points while the Venture is down 2 points to 995…
U.S. Dollar Index Updated Chart
The U.S. Dollar Index is rapidly approaching a 52-week high and came within a whisker overnight of important Fib. resistance at 82.40…RSI(14) on this 2.5-year weekly chart is also in an area where it has met previous resistance, so some near-term consolidation is likely on the way…the greenback has moved sharply higher after once again testing strong support around 79 a few months ago for the fourth time since late 2012…an overall long-term downtrend remains in effect, however…
North American Nickel Inc. (NAN, TSX-V) Update
You disappoint the market, you pay the price…that’s what happened with North American Nickel (NAN, TSX-V) yesterday as this summer’s initial drill results from the company’s 100%-owned Maniitsoq Ni-Cu-Co-PGE sulphide project in southwest Greenland fell short of expectations…in follow-up drilling at Imiak Hill, where the company reported impressive results in both 2012 and 2013, the best intercept was a zone of semi-massive and massive sulphide veins and stringers grading 3.07% Ni and 0.53% Cu over 11.03 m from 220.51 m to 231.54 m…5 holes totaling 1,558 m were completed to test for extensions of the high-grade nickel mineralization intersected at Imiak Hill in each of the last two years…each hole was collared from the same set-up in order to maximize logistics and were planned to test the mineralization at distances of up to 60 m down plunge the southern extent of the zone…
More encouraging elsewhere in the Imiak Hill Complex where multiple holes at Spotty Hill have intersected sulphide mineralization, including for the first time wide zones of disseminated sulphides and at least one southeast-plunging shoot consisting of semi-massive and massive sulphide stringers and veins (assays pending)…
The regional program is showing promise…in total, NAN has drilled 32 holes (7,000 m) through mid-August…they are on the right path to a potential major discovery in this very prolific area, but of course the “glory hole” can never come quick enough for the market…
NAN is recovering this morning, though yesterday’s sell-off did cause some chart damage…below is an updated 2.5-year weekly from John…the 300-day moving average (SMA) provided support on a closing basis yesterday…the building of new support in the mid-to-upper 30’s would be encouraging with the hope of better results as the summer progresses…
NAN is up 2 cents at 37 cents through the first two hours of trading…
Calibre Mining Corp. (CXB, TSX-V) Update
Calibre Mining (CXB, TSX-V), which has some excellent prospects in Nicaragua, continues to trade briskly with a confirmed breakout above resistance at 7.5 cents…its next major hurdle is chart resistance at 10 cents…RSI(14) is now above 70% and continues to climb an uptrend line…
As of 8:35 am Pacific, CXB is up half a penny at 9.5 cents…
Two “Cheapies” Under a Nickel – One Drilling, The Other About To Drill
A couple of interesting situations under a nickel for our readers to perform their due diligence on…
Cypress Development Corp. (CYP, TSX-V) Update
Cypress Development (CYP, TSX-V) has a lot of shares outstanding (150 million) but it got highly encouraging results from a Phase 1 drill program at its Gunman Project (Zinc-Silver-Copper) in Nevada, and another round of drilling has just commenced as the company announced yesterday…with some of the high grades CYP has been reporting, from surface sampling and drilling, investor interest in this play could accelerate over the coming weeks…
Below is a 10-year monthly chart that puts the “Big Picture” in perspective – strong new support at 3 cents, resistance at a nickel…between 3 and 3.5 cents appears to be the “sweet spot” as an entry point…as always, perform your own due diligence…
CYP is unchanged at 3.5 cents through the first two hours of trading…
Sego Resources Inc. (SGZ, TSX-V)
We’ve always liked the potential (and location) of Sego Resources’ (SGZ, TSX-V) Miner Mountain Project east of Princeton, 16 km north of the producing Copper Mountain Mine…in 2012, one diamond drill hole returned an impressive 100 m grading 0.95% Cu and 0.55 g/t Au from a depth of 10 m…this property clearly deserves more drilling (mineralization appears to be open in all directions) and it looks like Sego is gearing up for that in the near-term, assuming the company can complete a financing as it announced in mid-May…we like their chances as this project has strong merit…
Technically, SGZ has formed a strong base of support at 3 cents with the 50-day SMA just recently reversing to the upside…volume has started to pick up, an encouraging sign, so obviously some investors are beginning to nibble at this…as always, perform your own due diligence…SGZ closed at 3.5 cents yesterday…
Note: Jon holds a share position in NAN.
GBB just hit .08c this am. I know you did a chart recently, but could not find it on archives.
Comment by bob — August 21, 2014 @ 8:03 am
Jon
have you mentioned Vendome, symbol VDR on here before? Can you get a chart on this one? Volume is up on this lately…
thanks
Comment by Greg — August 21, 2014 @ 10:59 am
NEWS…….
Garibaldi samples 549 g/t Ag, 14.9% Pb at Rodadero
2014-08-22 08:07 ET – News Release
Mr. Steve Regoci reports
GARIBALDI RESOURCES CORP. – HIGH-GRADE SILVER AND INCREASING BASE METAL VALUES SAMPLED UP TO 3 KM SOUTH OF SILVER EAGLE DISCOVERY
As phase 2 diamond drilling continues at Garibaldi Resources Corp.’s Silver Eagle target (Rodadero North project) in central Sonora state, surface sampling results from mineralized outcrops indicate continued high silver values in addition to a significant increase in base metal content (up to 14.9 per cent lead and 1.8 per cent zinc), 1.5 kilometres to three km south of discovery hole SE-14-01. Phase 1 drilling confirmed a shallow high-grade mineralized system open in all directions at Silver Eagle and apparently widening to the south toward the Reales area (see August 5, 2014 news release). Further work is continuing to determine the relationship between the Silver Eagle and Reales targets.
Steve Regoci, President and CEO of Garibaldi, commented: “The similarities of the silver grades in our sampling from Silver Eagle to the south are extremely encouraging. This also correlates with our hyperspectral ‘hot spot’ signatures that initially identified the contiguous Silver Eagle and Reales targets. “Importantly, as we track mineralization through Reales, we continue to sample high silver grades while the base metal content appears to increase substantially. To the east and southeast of Silver Eagle, we’re investigating what seems to be predominantly gold-silver mineralization with some very high metal values from sampling as previously announced. The clustering of targets along a 10 kilometer distance at Rodadero North is the focus of an expanded exploration program.”
Assays from a total of 23 rock samples selected 1.5 km to 3 km south of Silver Eagle ranged from 6.5 g/t Ag to 549 g/t Ag, and from 0.15% Pb to 14.9% Pb. Average values from these selected dump, grab and channel samples were 117 g/t Ag and 4.9% Pb. Highlights from the sampling at Reales are as follows:
Sample No.Target Ag (g/t)Pb (%)
865080 Reales central549 5.8
865079 Reales central210 13.1
26149 Reales central198 4.4
121036 Reales central110 11.4
121115 Reales central18.9 14.9
62 Reales south 216 2.3
63 Reales south 336 4.8
64 Reales south 100 3.0
Four of the above samples from Reales central also returned elevated copper values ranging from 0.16% in sample no. 121036 to 0.66% Cu in sample no. 865080. Two samples (26149 and 865080) from Reales central returned zinc grades of 1.8% and 0.49%, respectively.Sampling will soon be carried out over the northern section of Reales and additional areas throughout the target. By the nature of the biases of sampling, the above sampling results are not necessarily representative of mineralization at Rodadero North in general or, specifically, within the zones, structures or geological features that were sampled.Sampling data from other target areas at Rodadero are being compiled and interpreted, and the Company looks forward to releasing additional results in the near future.
Updated MapsA Rodadero Project map can be viewed by going to the Garibaldi web site:
Maps -> Mexican Projects Maps -> Rodadero Project -> Rodadero Project Map
Quality Assurance & Control
Garibaldi maintains strict QA-QC protocols for all aspects of its exploration programs that include the systematic insertion of blanks and standards into each sample batch. Acme Labs (now part of the Bureau Veritis group that includes BSI Inspectorate) performed assay analyses on core, and ALS Global (formerly ALS Chemex) performed analyses on rock samples. All samples were assayed using certified and industry standard assay techniques for gold and multi-element packages for other elements and for over-limits. Au was analyzed by 30 or 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP.
Qualified Person
Dr. Craig Gibson, Certified Professional Geologist and a director of Garibaldi, is a non-arms length Qualified Person for the Company’s Mexico projects and the direct manager of the technical programs operated under contract by Prospeccion Y Desarrollo Minero del Norte (ProDeMin). Dr. Gibson has reviewed this news release and approved the content thereof.
Comment by John BMR — August 22, 2014 @ 4:12 am
wouldn’t surprise me if Sheslay Valley put on the back burner
Comment by ChartTrader — August 22, 2014 @ 5:18 am
the”YELLEN EFFECT” today.
Comment by tombc — August 22, 2014 @ 5:44 am
Chartrader, more great numbers from Rodadero, this is getting very, very interesting. The consistency in the sampling is incredible – over a 3 km distance striking from the Silver Eagle discovery hole. On the other side of Rodadero, high grade gold and silver. This is going to be a barn burner – long legs and shallow, high grades. What GGI appears to have discovered is a new mineral camp – if that’s the case, this could really light up.
Comment by Jon - BMR — August 22, 2014 @ 5:49 am