Gold has traded between $1,174 and $1,185 so far today after yesterday’s drop to a 3-week low…as of 8:00 am Pacific, bullion is up $2 an ounce at $1,179…Silver is 12 cents higher at $15.80…Copper is off a penny at $2.89…Crude Oil gained nearly $1 a barrel to $56.21 while the U.S. Dollar Index has climbed another one-third of a point to 90.02…
“The threat of even lower Oil prices is a clear negative for Gold,” according to HSBC. They add that lower Gold prices should lead to more demand for physical Gold from emerging markets, most notably China. “Gold may be caught between the bearish influence of a sluggish EUR-USD and sliding Oil prices on the one hand and price sensitive EM demand on the other. We see Gold remaining on the defensive along with Silver, although low pre-holiday volume may lead to volatile price swings.”
The U.S. economy posted its strongest growth in more than a decade during the third quarter, supported by robust consumer spending and business investment…GDP grew at a seasonally adjusted annual rate of 5.0% in the third quarter, the Commerce Department reported this morning…that was up from the second quarter’s growth rate of 4.6% and the strongest pace since the third quarter of 2003…the agency last month had estimated third-quarter GDP growth at 3.9%…economists were expecting a smaller upward revision…one would think that 4th quarter GDP should remain strong with American consumers, who represent about 70% of GDP, getting the equivalent of a significant tax cut with the steep drop in gas prices…this should more than offset any negatives from the energy sector…
Today’s Equity Markets
Asia
China’s Shanghai Composite was smacked down nearly 3% overnight on profit taking, closing at 3035 after testing resistance at 3200 yesterday…Japan’s Nikkei went the opposite direction overnight, posting a slight gain…
Europe
European markets are up modestly in late trading overseas…in Greece, financial markets resumed their rocky ride today, losing 2.5%, as lawmakers failed again to approve the prime minister’s choice of president – a result that could send the country back to the polls and into an uncertain future in the euro…
North America
The Dow has climbed another 243 points as of 8:00 am Pacific to top the 18000 level for the first time ever…
Equities are looking particularly bullish given this 4-year weekly chart of the Dow…note how the recent drop down to just above 17000 was to an area of exceptional support…while the Dow has since surged 1000 points, it still has plenty of upside potential over the short to medium term within the trading channel it’s traversing through…
Importantly, RSI(14) in this 4th quarter has also broken above a downtrend line in place since early 2013…the equity bulls are certainly in control on Wall Street…
In Toronto, the TSX is up 132 points as of 8:00 am Pacific while the Venture has edged 1 point higher to 669…first important resistance for the Venture is around 680…
Garibaldi Resources (GGI, TSX-V) is inching closer to another update out of Mexico where new core photos from Rodadero suggest a continued impressive consistency of mineralization in drilling at the high-grade Silver Eagle discovery…yesterday, GGI announced the closing of a $1.25 million financing to seize opportunities with regard to the Grizzly and some other attractive prospects in British Columbia…it appears GGI will be the first company in the Sheslay district to come out with a fresh NI-43–101 technical report since the staking rush erupted in that area just under a year ago…interestingly, GGI has also recently pushed out the western boundary of the Grizzly which now covers a total of 272 sq. km…GGI is a penny at 20 cents in early trading…
U.S. Dollar Index Updated Chart
It’s critical to keep a close eye on the Dollar Index as when it reverses and cools off, at least temporarily, the Venture should benefit along with commodities in general…
On this 34-year monthly chart, RSI(14) is now in overbought territory at 73% – a level last seen in late 2001 just prior to a correction…
Strong resistance exists between the Fib. 38.2% level (90.25) and the late 2005 high of 92.33 which could be tested soon…in short, the Dollar Index is poised to continue to move a little higher but this will be a set-up for a correction…
GoGold Resources Inc. (GGD, TSX) Update
We suggest investors check out the Preliminary Economic Assessment GoGold Resources (GGD, TSX) released September 10 for its Santa Gertrudis Gold mine in Sonora State, Mexico – quite robust numbers including a 1.7-year payback and an after-tax IRR of 58%…the proposed project is a 7,500-tonne-per-day heap leaching facility fed by several open pits, resulting in a projected 12-year mine life with total metal production of 671,000 ounces of Gold…start-up capital costs with a a 20% contingency are estimated at $32 million (U.S.)…this includes the development of a centrally located heap leach pad, CIL plant and ADR plant required for the start of mining operations…sustaining capital costs over the project’s life are projected to be an additional $16-million and total life-of-mine capital costs are estimated at $48-million…
Santa Gertrudis has an updated mineral resource of 23.3 million tonnes in the indicated category at 1.08 g/t Au, and 7.7 million tonnes of inferred at 1.02 g/t Au…production is estimated at an average of 56,000 ounces of Au per year (keep in mind that these are mineral resources and not mineral reserves)…
Below is a 3-year weekly chart for GGD that looks promising with strong buy pressure prevalent since September…rock-solid support exists around $1.40 which includes a Fib. level and the rising 300-day SMA (not shown on this chart)…
Earlier this month, GGD closed a bought deal offering at a price of $1.50 per share for gross proceeds to the company of $20 million…
North American Nickel (NAN, TSX-V) Update
North American Nickel (NAN, TSX-V) has been an attractive bottom-fishing opportunity this month, and sure enough the stock firmed up yesterday with a 3-cent gain to close at 25 cents…the Nickel story looks promising for 2015 and NAN continues to be blessed with exceptional opportunities at its 100%-owned Maniitsoq Nickel-Copper-Cobalt and PGM project in southwest Greenland…the company reported about $7 million in working capital at the end of September, and is well-positioned to go after new targets at Maniitsoq in 2015 after disappointing the market somewhat in 2014…
Strong Fib. support has held at 22 cents with NAN forming a nice base in the low 20‘s since late September…
Blackbird Energy Inc. (BBI, TSX-V) Update
Junior Oil stocks have taken a beating since September, so it’s not surprising that some are on the rebound – especially those, like Blackbird Energy Inc. (BBI, TSX-V) that were able to raise a bundle of money in time before the Oil price collapsed…
After hitting a low of 18 cents this month, BBI is now trading in the mid-20‘s – a couple pennies below its still-rising 200-day SMA…RSI(14) has bounced off previous support and we’re now starting to see a small pick-up in buy pressure…
Keep an eye on BBI‘s 100-day SMA – if it begins to roll over, that could spell trouble…in the meantime, BBI could easily challenge that SMA, currently at 32 cents, in the event we see a rally in Crude…
Note: John and Jon both hold share positions in GGI.
GGI: President’s message also posted on Garibaldi Resources website. It’s been a good year for sure!
Comment by Frank — December 23, 2014 @ 9:19 am
Ggi, thought there might be a bit more volume but at least it’s up a tad. US dollar needs to chill out a bit, does this not hurt the us in the short and long term.maybe come jan- feb, rolls around and the in fighting begins in the senate. Hearing lots of chatter about the venture and mineing stocks gaining traction beginning now, that would be great, we need it.
Comment by Tombc — December 23, 2014 @ 10:43 am
The Nov. 7th PR by Garibaldi said that they were raising $1mil in order to fast track the drilling in Mexico. Now they say they will be using it in BC. This is obviously an evolving situation and makes me wonder why they have changed tact. Grizzly will be drilled sooner than previously anticipated, but what will be happening in Mexico? Could there be a JV in the pipeline with one of the majors that visited the site?
Comment by Tom UK — December 23, 2014 @ 10:45 am
That’s an interesting point, Tom. My take on it is that the main battle plan hasn’t changed a bit in the sense that Rodadero is clearly leading the charge right now and that’s not going to change anytime soon. La Patilla is right behind. All along we’ve known about how the Grizzly and the other B.C. properties could drive some serious value with this stock, and Regoci has now positioned that opportunity very effectively with this strategic financing. I think they can walk and chew gum at the same time. They’re powering forward in Mexico and weaving in the potential huge leverage of B.C. That’s a smart and powerful 1-2 punch.
Comment by Jon - BMR — December 23, 2014 @ 11:09 am
Jon, I’ve been watching GBB for a little while and I do like this company. However, until the C of A’s are issued to permit mining and milling there is nothing going on for at least two and maybe three months. I would have thought the stock price would fall with tax loss selling and lack of news releases. Any comment?
Comment by Peter — December 23, 2014 @ 2:15 pm
Maybe the near term expoitation of La Patilla will help fund the ongoing drill and exploration program at Rodadero? Or like Tom UK said “Could there be a JV in the pipeline with one of the majors that visited the site?”
Comment by Dan — December 23, 2014 @ 2:25 pm
The next step at La Patilla, Dan, is some more drilling, but following Phase 2 I believe it’ll be time for GGI to make decisions regarding the extraction stage, with a couple of different ways to approach it. Its one of those rare properties that’s ideally suited to quickly put into small-scale production, and that’s what they got it for in the first place. So La Patilla offers those possibilities, which are important, but Rodadero brings scale into the equation with a district-sized exploration package that ultimately could allow GGI to get taken out – if more discoveries are made and they have an epithermal system that extends to depth. Localized opportunities for near-term small-scale production may also exist at some of these targets, including of course Silver Eagle.
Comment by Jon - BMR — December 23, 2014 @ 4:25 pm
Fancamp samples 57.6 g/t Au over 0.5 m at Northwest
2014-12-23 16:18 ET – News Release
Mr. Peter Smith reports
FANCAMP PROVIDES AN UPDATE OF ACTIVITIES ON THE HIGH GRADE GOLD QUARTZ VEIN SYSTEMS ON ITS NORTHWEST PROPERTY IN THE ST. QUENTIN AREA OF NORTHWESTERN NEW BRUNSWICK AND ITS ROBIDOUX PROPERTY IN WESTERN GASPE, QUEBEC
Read at Stockwatch website…
Comment by Tony T — December 23, 2014 @ 4:46 pm
News just out within the last hour from DBV…wow…they drilled down 650 m in hole 23…we believe that’s the deepest hole ever drilled in the Sheslay district…can’t imagine they would have spent the money to go that deep unless they were seeing something to justify it…that’s at least a $150,000 hole…
Comment by Jon - BMR — December 23, 2014 @ 5:27 pm
Jon, if GGI is not using the proceeds from the latest financing for Rodadero, then where will the funds come from to drill Rodadero? Exploration and drilling are accelerating at Rodadero. Especially since the intial NR said the funds would be used to drill the Mexico property. Something must be up?
Comment by Dan — December 23, 2014 @ 6:17 pm
DBV – 650m – thats almost to the center of earth.
Comment by dave — December 23, 2014 @ 6:32 pm
Something could be up, Dan. Keep in mind, GGI has some flexibility with regard to Mexico. They do have a comfortable working capital position thanks to their PZG holdings, which have also increased in value substantially given the recent Coeur buyout (or “merger”). And I don’t know, but perhaps there are developments brewing pertaining to the recent site visits by two unnamed companies, one of them being one of the world’s leading silver producers. I suspect we’ll get more clarity on this in the upcoming news on Rodadero.
Comment by Jon - BMR — December 24, 2014 @ 4:37 am
Knowing Farshad as I do, there’s no way he would authorize drilling to that depth if they weren’t into very good looking rock and indications of possible strong mineralization. Visual analysis is always challenging, but they must have had good reason to continue drilling to 650 m. It’s interesting to note that late last year, in December 2013, DBV reported they had drilled 5 holes for a total of 1276 meters and collected 386 core samples for the lab. In this instance, they drilled 650 m and took 263 core samples. So they drilled half as much (but all on one hole) and took two-thirds of the samples they did on 1276 m when they got 2 discovery holes. Again, that’s highly encouraging. We could see another January Sheslay surprise like last year. “More chapters to be written,” as Regoci commented in his message.
Comment by Jon - BMR — December 24, 2014 @ 4:51 am
Fond memories moved me to appear in print today with season’s
wishes.
May the Xmas season touch you all in a very special way & may
happiness not only be yours today but throughout the year.
Bert,
Newfoundland
Comment by Bert — December 24, 2014 @ 5:36 am
Good analyse about the core Jon !
Comment by Guy Delisle — December 24, 2014 @ 5:41 am
ggi has very low drilling costs in mexico because they have their own drill.and the mineralization so far has been very shallow.maybe there is something deeper which seems logical.it had to come from somewhere.if there is these guys will find it. very exciting situation.
Comment by kc — December 24, 2014 @ 5:44 am
To all our readers thank you for joining us here at BMR. May I wish you a very Merry Christmas and may 2015 bring everyone Peace, Happiness, Good Health and Prosperity. Count your Blessings…all of us are extremely fortunate to live at the level we do.
God Bless.
Sincerely
John
Comment by John BMR — December 24, 2014 @ 6:07 am
Thank you, Bert, great to hear from u. Hope all is well, and you have a wonderful Christmas.
Comment by Jon - BMR — December 24, 2014 @ 6:25 am
From the hole 23, the news said hole halted at 650 meters but is it finish ?????
Comment by Guy Delisle — December 24, 2014 @ 7:20 am
Yes, good point, Guy…halted at 650…but finished? Not necessarily, especially if they’re still in mineralization…
Comment by Jon - BMR — December 24, 2014 @ 7:44 am
Morning Musings at approximately 9 am this morning Pacific…updates on DBV, GGI, FMS, and fresh Gold and Venture charts…
Comment by Jon - BMR — December 24, 2014 @ 8:14 am
VGD is just booming from the doldrums of 2 cents not too long ago!
Comment by marc — December 24, 2014 @ 8:23 am
Merry Christmas to all.
Comment by dave — December 24, 2014 @ 9:17 am
Merry Christmas, Dave, and to each and every one of our readers, a very Merry Christmas and may the joy of the season be with you. We all have much to be grateful for and have much to look forward to in the New Year ahead. Peace, joy, good health and prosperity to all.
Comment by Jon - BMR — December 24, 2014 @ 9:19 am