Gold has traded between $1,255 and $1,287 so far today…as of 8:00 am Pacific, bullion is down $17 an ounce at $1,256…Silver is off 7 cents at $17.11…Copper has jumped 7 cents to $2.58…Crude Oil continues to rally, up $1.50 a barrel to $51.07, while the U.S. Dollar Index has declined more than two-thirds of a point to 93.88…
Gold’s current uptrend remains firmly intact as long as the $1,240 to $1,260 support band holds as it did last Thursday when bullion hit $1,252 before rebounding…Gold’s rising 20-day moving average (SMA), currently at $1,258, is at the high end of that band…
U.S. Mint American Eagle Gold coin sales in January rose from December but, surprisingly, were the lowest for that month since 2008 as a rally in prices discouraged collector buying in what is typically a period of peak demand…the U.S. Mint sold 81,000 ounces of Gold bullion coins in January, down from 91,500 ounces in the first month of last year and the lowest since 2008 when 26,000 ounces were sold…sales were still more than 4 times December’s total of 18,000 ounces…Silver also had a slow start to the year, with 5.53 million ounces sold in January, more than double December’s total but the lowest for January since 2010…
Rob McEwen, chairman of McEwen Mining (MUX, TSX), sees a bullish new phase underway in Gold producers and predicts investors will return in a big way to the sector that has been so unloved over the last few years. “As bullion dropped from a record of almost $2,000 an ounce, Gold miners have dumped old management, slashed exploration spending, lowered operating costs and shifted to high-grade ore to focus fully on restoring cash flow,” McEwen stated in an interview with Robert Gibbens (Montreal Gazette story yesterday).
“You’ve got a serious gap developing between declining global output and steadily mounting demand from Asia where millions of new middle-class consumers are emerging. That gap could last several years,” McEwen added.
Australia cut its benchmark interest rate to a record low of 2.25% today, joining a procession of central banks that have eased policy settings this year in response to the deflationary impact of tumbling Oil prices…
Oil Update
Crude Oil continues to rebound and is trading above resistance this morning at $50…this is an overdue rally given the most extreme oversold technical conditions ever witnessed in WTIC, but the primary trend remains bearish with a strong likelihood of a new low later this quarter…
Oil prices are getting some relief at the moment thanks to the number of companies in recent days who have announced significant cuts in capacity expenditures and reductions in rig counts…in fact, Baker Hughes reported that U.S. drillers have taken a record number of Oil rigs out of service amid the price slump…last week alone, Oil rig counts tumbled by 55 to 1,366…in the week ended January 30, the total number of rigs drilling for Crude Oil in the U.S. came in at 1,223, compared with 1,317 in the prior week and 1,422 a year ago…
This industry is probably the best in the world at cutting costs when it has to reduce spending, and this will certainly help to cut into the supply surplus…however, analysts at Morgan Stanley noted that the relationship between rig count and production can be deceptive…and 1 of the big questions, of course, is how the demand side will look going through the rest of the year – global economic growth has been weaker than expected, hence the moves by various central banks in recent weeks…
WTIC Long-Term Chart
Below is an updated WTIC long-term chart, and you can see how RSI(14) became incredibly oversold during December and into January…so what we’re seeing now is an easing of those extreme conditions, though this doesn’t necessarily mean that we’ve seen the bottom yet in Oil prices…this rally appears to be the “B” phase in an A-B-C move that ultimately could push WTIC to long-term support in the mid-30‘s or even lower, depending on global developments…
CRB Index Updated Chart
The CRB Index is also in rally mode now with the downward pressure from sliding Oil prices lifted, temporarily at least…the divergence between price and RSI(14) was quite striking on this 3-month daily chart when the Index hit a recent multi-year low of 211 (again, we may not have seen the bottom yet in the CRB which may still have to test the 200 level)…
The bounce in the CRB should help the Venture here in February…
Today’s Equity Markets
Asia
China’s Shanghai Composite snapped a 5-session losing skid overnight and closed at a 2-week high after a powerful gain of 77 points or 2.5%…the energy and financial sectors led the charge…Japan’s Nikkei average, meanwhile, bucked the Asian trend and fell 222 points or 1.3%…
Europe
European markets are solidly higher in late trading overseas…
Greek stocks rallied the most in 2-and-a-half years today, inspiring solid gains for the rest of Europe…the moves in Greek assets came after Finance Minister Yanis Varoufakis late Monday reportedly backed down from demanding a haircut on Greece’s debt and instead laid out a plan that includes debt swaps…the plan, dubbed “smart debt engineering” by Varoufakis, according to the Financial Times, is aimed at lifting the burden of repaying the debt to international lenders by replacing some of the current debt with growth-linked bonds and perpetual bonds…an EU official said yesterday that there may be some “wiggle room” regarding the EU accommodating Greece’s new proposals…
North America
The Dow has climbed 130 points through the first 90 minutes of trading today, thanks to strength in energy stocks and encouraging news out of the euro zone…in Toronto, the TSX is up 133 points while the Venture appears poised to confirm a breakout today above 680 resistance…it’s 6 points higher at 691 as of 8:00 am Pacific…
TSX Updated Chart
Interesting multi-year chart for the TSX with the RSI(14) having formed a bullish “W”…the Index survived 3 sell-offs in recent months to the rising 500-day moving average (SMA), currently just below 14000, and now it appears headed toward Fib. resistance around 15800…it wouldn’t be wise to bet against this market given its current technical posture, and support of course from the Bank of Canada which is now in a monetary easing mode…
Venture Updated Chart
Critical support between Fib. levels 654 and 664 has held, and the Venture now appears to be in the process of confirming a breakout today above resistance at 680 and the 50-day SMA…this is supported by a bullish +DI/-DI crossover…
The next key resistance is 706 followed by 750…
Calibre Mining Corp. (CXB, TSX-V) Update
Calibre Mining Corp. (CXB, TSX-V) has clearly been one of the top Venture exploration stories since the spring of last year with the stock significantly outperforming the Index…the company is working strategically with strong partners in the prolific northeastern part of Nicaragua, and has some 100%-owned ground…
Overbought technical conditions last September/early October unwound in November and December, and the now-rising 50-day moving average (SMA) at 14.5 cents is providing new support…
On January 21, Calibre announced final assay results from Phase 1 drilling at the Eastern Borosi Gold-Silver Project being financed by IAMGOLD Corp. (IMG, TSX) under an option agreement…5 Gold-Silver vein systems were tested over a combined strike length of 3 km through 40 drill holes (5,500 m), and drilling encountered high-grade zones on each of the structures…results included 5.07 m grading 13.44 g/t Au (GP14–028) and 2.76 m @ 26.48 g/t Au (GP14–030), testing the down dip portion of the Guapinol and Vancouver structures…
IAMGOLD was encouraged enough by the results to decide to launch a 5,500-m Phase 2 program to commence this quarter…
CXB responded well to the news and pushed through resistance at 15 cents…more success in Nicaragua this year could turn 2015 into an even better year than 2014 for Calibre…
CXB is off half a penny at 18 cents as of 8:00 am Pacific…
InZinc Mining Ltd. (IZN, TSX-V) Update
InZinc is an emerging mid-tier Zinc producer with its 100%-owned West Desert Project in Utah…a positive PEA was released in May of last year, and excellent opportunities for resource expansion exist…importantly, the project benefits from all-weather road access, on-site grid power, proximity to natural gas pipelines and is just 90 km from multiple transcontinental rail networks servicing western U.S. ports and major North American markets…
This is project with excellent potential but management needs to put the “pedal to the metal” and create some excitement here – hardly any news flow over the last 9 months, though volume has picked up noticeably in the stock over the last 5 trading sessions…volume is usually a reliable indicator that something positive could be brewing…
Technically, IZN is a very interesting position which is the reason for this morning’s update…notice last year’s cup-with-handle pattern and double bottom…what may unfold here is a re-test of the top of the cup around the 20-cent level…as always, perform your own due diligence…
IZN is up half a penny at 12 cents through the first 90 minutes of trading…
Note: John and Jon do not hold share positions in CXB or IZN.
mmm,interesting,could aem be the major that has a target on ggi?aem just sold its remaining shares of prb to g. could we have been waiting for that transaction to be complete befour a news release on ggi?stay tuned.
Comment by tombc — February 3, 2015 @ 8:31 am
DBV level 2 bids keep getting thicker and thicker while the asks have been getting thinner and slowly taken out. Looks like some speculators are trying to accumulate……bring on the news! Any day now!
Comment by d4 — February 3, 2015 @ 9:05 am
at this point in time Tom I would take any news from GGI
Comment by brian — February 3, 2015 @ 10:12 am
I agree d4, bring on the DBV news! I hope that the strong indicators that we have seen so far is telling us something positive. Sounds like there is some GREAT potential for fantastic results. This could be another strong feather in the cap of the Sheslay region.
Comment by Steve A. — February 3, 2015 @ 10:28 am
Yes,Brian, so would I.
Comment by Tombc — February 3, 2015 @ 10:35 am
Based on the core pics, which really showed a lot of pyrite and chalcopyrite, and the descriptions in DBV’s last news, I think there’s an excellent chance the interval between 200 m and 400 will give DBV some of the best grades it has seen so far at the Hat. Again, they need to demonstrate they’re getting into some higher grade material. Lots of pyrite in the core – question is, did it run at the lab? I love this property, I love the area, I’ve had my feet on the ground there…my gut tells me DBV has something special at the Hat, and to the south at Grizzly Central, GGI could have a whopper of a deposit on its hands given the intriguing circular feature that is there, and other evidence. DBV is only 23 holes into this. Amazing progress to date and I’m convinced they’re not into the meat of the system yet.
Comment by Jon - BMR — February 3, 2015 @ 10:45 am
From watching Jon over the years, i feel i can state with some
confidence that he may know something about GGI, although i feel
he may not have visited their site. Back to watching Jon, there
is no way that a poster can post about one of his holdings, without
him responding the first chance he has, the latest example being the
6th post today on DBV., & he has shown that he did not shy away from
GGI until here lately…It’s elementary Mr Watson, he just can’t afford
to respond to our queries because of the possible rumor or facts which
surrounds him.
Comment by Bert — February 3, 2015 @ 11:19 am
May i add to my last post,
Jon’s silence is deafening !!!!
Comment by Bert — February 3, 2015 @ 11:20 am
NEWS….DBV
Doubleview Capital Corp. has been halted at 12:15 p.m. PT on Feb. 3, 2015, at the request of the company, pending news.
Comment by John BMR — February 3, 2015 @ 12:20 pm
DBV halted
Comment by dave — February 3, 2015 @ 12:20 pm
Halted, this hole to China is getting more interesting. Drilled deep (perhaps not finished yet) and drilled toward the south.
Comment by Jon - BMR — February 3, 2015 @ 12:22 pm
At Bert,
I have been thinking the same thing, no word on the site visit one way or another if it was GGI or not, his post to me the other day about GGI when I doubt how they could keep things so quiet:, I think he definitely knows ALOT more than he can share, I assume its all good, but it still amazes me that the share price and volume of GGI is nothing with a possible buy out or JV with a major producer in the possible works???
from Jon:
“You’re dealing with a very professional group in GGI, Greg, that doesn’t allow leaks, you just need to look back at the quiet activity right before last May’s surprise announcement on the hit at Rodadero. So over time I’ve learned with GGI that the “quieter” it seems to be, that’s the more suspicious we should be that something quite significant is probably in the works.
Comment by Greg — February 3, 2015 @ 12:28 pm
GGI may be a professional group, but there’s no way can they prevent a leak,
especially if there’s a possible deal, can Jon speak for the other side. They
said the Titanic would never leak, but it can be found out there somewhere, at
the bottom of the ocean..
Comment by Bert — February 3, 2015 @ 12:51 pm
To Bert – interesting post and wise wisdom. GGI – may I add that a 100k sell just went up at .185 – ouch, someone wants out bad.
Comment by dave — February 3, 2015 @ 12:55 pm
Just to clarify, Dave, that offer was 87,000 at 18.5 and sitting there for a few days at least. Looks like 15k was moved up from a lower price at the end of the day. Small potatoes, really. Anyway, let’s hope for good news from DBV. I’m optimistic.
Comment by Jon - BMR — February 3, 2015 @ 1:07 pm
Jon – Small potatoes, really.
Bert – I would consider a 100K sell order as rotten potatoes,
unless of course, i knew something was in the works.
Comment by Bert — February 3, 2015 @ 1:26 pm
Boy short trade halt.
Comment by Tombc — February 3, 2015 @ 1:34 pm
DBV NEWS OUT.
Comment by Steve A. — February 3, 2015 @ 1:35 pm
Dave, if a major wanted to buy GGI, or do a joint venture, a major institution can throw up big ask to keep the price range bound to keep it low. That may be what is happening with GGI.
Comment by Dan — February 3, 2015 @ 1:48 pm
Looking forward to BMR’s interpretation of DBV results…
Comment by Steve A. — February 3, 2015 @ 1:48 pm
Very interesting. Best #s yet from the Hat, which is what they needed to do. There are clear signs here that DBV is drawing closer to the Sheslay “sweet spot”, nearly 1% CuEq over 74 meters…the first pyrite zone they hit (previously announced) was 40 meters at 0.79% CuEq; second zone in these results is 111 meters @ 0.73% CuEq including 74 meters of 0.96% CuEq; and they’ve announced they hit a third zone deeper down of at least 120 meters of pyrite and chalcopyrite (assays pending)……the wider interval of 278 meters of 0.53% is unquestionably the best intersection so far at the Hat, so the results keep getting better which is important…0.60% is the next important level to reach on a 300+ meter intercept…Gold grades are getting higher….the fact they’ve hit elevated levels of moly, zinc and cobalt – minor levels but still the highest of any holes to date – this is positive, perhaps another indication they’re getting closer to the heart of the system……the rest of this hole should be darn interesting and it may go deeper yet….DBV deserves to be rewarded in the market here IMHO, and there’s ample room for speculation with the next set of assays and more drilling of course…volume is definitely building, this hole extends the deposit 110 meters to the north cutting mineralization 200 m vertically below H-22….
Comment by Jon - BMR — February 3, 2015 @ 1:51 pm
In the good old days, it would be worth a few pennies, but
now, we may have already seen the speculation increase.
Hopefully, for shareholders sake, it goes up, but it was
not worthy of an halt…
Comment by Bert — February 3, 2015 @ 2:07 pm
Bert – agreed it may not give the price a big pop, but the results should get people excited about what’s to come…great release in my opinion.
Comment by Steve A. — February 3, 2015 @ 2:25 pm
DBV- Jon- I agree with your comments. This is shaping up well. Remember this is the 1st hole drilled under the guidance of Patrick McAndless and its the best one! Patrick McAndless was the VP of Exploration for Imperial Metals (for 26 years) and he was instrumental in the Red Chris discover and Mt Polley – he knows the geology and came out of retirement to spear head DBV’s drilling for a reason! Why would he do this- go from retirement to being back in the field overlooking a drilling campaign? I think its obvious and he wouldn’t want to end a big career with a few big finds under his belt to overshadow all of it with a major failure with a small junior like DBV unless he was pretty sure of adding another last discovery before going back to retirement again.
To get the potential of DBV one needs to look at the next best example in the region which is Imperial Metal’s Red Chris mine. Red Chris has reserves of over 301.5 million tonnes grading 0.359% copper and 0.274 g/t gold provide for a 28 year project life at a milling rate of 30,000 tonnes per day.
Now look at DBV’s Hole 23 for comparison. The next 250m should be even better. Red Chris’ results show that the good stuff starts deep mainly 600m down to 1100+. I expect Farshad to continue drilling hole 23 much deeper.
Can’t wait to get the next batch of results. Drilling to resume soon as well.
Comment by d4 — February 3, 2015 @ 2:42 pm
Here are the 3 most important takeaways on these results:
1. Where there’s smoke, there’s fire. Getting into higher mineralization, zones thickening to depth;
2. These are the best drill results from the Hat Project to date, & 278 m of 0.53 CuEq is what mines are made of in this part of the world. Each round of drilling at the Hat has gotten better, and that’s always an important sign;
3. It appears quite certain that H-23 is a breakthrough for the entire Sheslay district as out of 100 or so holes drilled historically and through last year, no hole has ever been drilled this deep…and it’s hitting increasing grades (including Gold) going to depth. The next 250 meters of this hole will greatly increase the understanding of this area, geologically. There are interesting theories as to what may be at depth at the Hat, and also heading further south.
Doubleview has a mine in the making here.
Comment by Jon - BMR — February 3, 2015 @ 2:42 pm
Jon- we are still waiting for the DBV part 2….just kidding (lol). You might want to start part 3 soon.
I think it would be great to have another DBV interview but this time with Patrick McAndless. It would be interesting to know his opinion, why he joined the team and the similarities between what he is seeing with Red Chris.
Comment by d4 — February 3, 2015 @ 2:57 pm
You brought up a good point, d4, that this is the first hole since McAndless came on the scene, and the best yet – probably no coincidence…we made the offer for an interview with Patrick and it has been accepted, exact timing is just the issue…
Comment by Jon - BMR — February 3, 2015 @ 3:12 pm
http://ceo.ca/2015/02/03/the-hunt-is-on-for-the-next-copper-gold-deposit-in-b-c/
DBV is talked about in article above. Interesting who brought DBV to the chat board’s attention and his opinion of it……see pic of the chat discussion. Word is spreading on DBV.
Comment by d4 — February 3, 2015 @ 5:24 pm
DBV will resume trading at open. If this news is not enough for people to want to speculate on it and they don’t see that the risk/reward ratio is worth it on this $8 million market cap stock then they probably will after the last set of results from 400m to 650m. The tonnage is quickly adding up! I think we will start to see some speculators taking a position. DBV has attracted the best team and has an aggressive drill plan for the year.
Comment by d4 — February 4, 2015 @ 5:53 am
The Venture’s MacD histogram has finally crossed over. Could be very bullish!!
Comment by Tony T — February 4, 2015 @ 6:01 am
This is a game-changing hole, d4, we spoke with Farshad last night and we’ll have some interesting comments from him over the next few days…
Comment by Jon - BMR — February 4, 2015 @ 6:12 am
DBV gapped and big support on it. Look forward to the comments. Yes, this is a game changing hole!
Comment by d4 — February 4, 2015 @ 6:32 am
It is a game-changer, definitely…from an historical perspective, this is the most significant hole drilled in the district…
Comment by Jon - BMR — February 4, 2015 @ 6:33 am
I like the reaction to the news DBV put out. Looks like there are a few more people that see the potential. Its nice to see a junior reacting to good news which is not huge grades and doesn’t require DD to see the potential but one that people need to DD to see the potential. This bodes well for the juniors! Maybe the tide is changing and one doesn’t need no DD huge grades for a move.
Comment by d4 — February 4, 2015 @ 6:38 am