Gold has traded between $1,261 and $1,272 so far today…as of 6:50 am Pacific, bullion is up $7 an ounce at $1,267…Silver has climbed 15 cents to $17.42…Copper is off a penny at $2.59 after a strong move yesterday…Crude Oil has slipped $2.43 a barrel to $50.62 after 4 straight days to the upside (a 19% surge, the largest 4-day gain since January 2009) while the U.S. Dollar Index has added one-tenth of a point at 93.94…
Copper posted its biggest daily gain in nearly 2 years yesterday, lifted by recovering Oil prices, expectations that China would use stimulus measures (1 move was announced this morning) to kick-start its economy, and short-covering…speculation is mounting that a persistent slowdown in China’s manufacturing sector may push the country to launch a series of infrastructure projects in a bid to buoy the economy, as they have done in the past…in January, China’s gauge of factory activity recorded its first contraction in more than 2 years…
To date, from its recent lows hit in November last year, Gold has risen by up to 13% against the greenback, 18% against the pound, 26% against the loonie, 30% against the euro, and 32% against the yen…and the rise against weaker emerging market currencies has been even more significant…
Bank of Montreal has launched a new way for investors to buy physical Gold…BMO’s new Gold deposit receipt program (GOLDR) allows investors to buy and sell shares that are backed by physical bullion stored in Canada and which track the price of spot Gold (unlike ETFs that trade at either a discount or premium to the spot market…BMO will charge a 1-time upfront fee of 2% and allows Gold to be delivered in amounts as small as 1 ounce)…each share represents 1 ounce of Gold, and the bank said the program will issue $500 million worth of shares to start with…the product is aimed at 4 types of investors – private ones that store their bullion in vaults, broker dealers, investment advisers as well as existing users of ETFs…
Total holdings in Gold ETFs have recovered to around 46 million ounces, worth $58 billion based on current prices, up from near 5-year lows of around 44.3 million ounces 2 weeks ago…
Oil Update
Crude gains in recent days have been stoked by developments that point to an eventual slowdown in production…several large companies in recent days have announced major spending cutbacks…however, reduced investment in new drilling usually takes months or even years to translate to lower Oil output…meanwhile, the demand side of the equation is mixed at best…though the U.S. economy appears has been gradually coming out of its malaise, it faces increased risks due to a surging dollar, while growth in China is slowing and the European economy remains moribund…moreover, Crude inventories continue to build up…in the U.S. alone, storage facilities currently house the largest amount of Oil in 84 years, and the American Petroleum Institute late yesterday said that U.S. Crude stockpiles rose again last week…
Doubleview Draws Closer To Sheslay “Sweet Spot”
While Doubleview Capital’s (DBV, TSX-V) technical team was already first-rate, it’s no coincidence that what has turned out to be a potentially game-changing drill hole at the company’s Hat Project in the Sheslay district (more impressive results announced after the close yesterday) came under the guidance of Patrick McAndless who was appointed DBV’s senior technical adviser late last summer…
McAndless is recognized as 1 of the foremost authorities on Gold-Copper porphyry systems in British Columbia through his many years with Imperial Metals (III, TSX), and has a reputation for finding higher-grade zones…it didn’t take him long to make an impact at the Hat…
Drill core from H-23 which has delivered the highest Gold and Copper grades encountered to date at the Hat Project.
Yesterday, DBV announced its best drill results yet from the Hat as H-23 cut 74 m of nearly 1% CuEq (0.46 g/t Au and 0.62% Cu) between a depth of 271.9 and 346.2 m…
And there’s more to come as only 400 m of this “hole to China” has been assayed (mineralization started just below 60 m and a 278-m interval returned 0.53% CuEq)…interestingly, H-23 also features the highest elevated levels of Molybdenum, Zinc and Cobalt that DBV has found in any drill hole so far at the Hat…
H-23 is is the deepest hole ever drilled in the Sheslay district (from north to south) and confirms the theory that there is strong potential for the discovery of high-grade Gold-Copper zones somewhere under the Hat or elsewhere in the district…Garibaldi Resources‘ (GGI, TSX-V) massive Grizzly Project is expected to come back into play shortly as GGI has loaded its treasury with funds directed toward an abundance of drill-ready targets, and what should prove to be a highly interesting NI-43–101 technical report on the Grizzly is also on the way…GGI ground is less than 2,000 m south of H-23, and even DBV President and CEO Farshad Shirvani is predicting a discovery at the Grizzly based on improved knowledge of the overall area. “We love what we have,” Shirvani told BMR last night, “but I’m confident that Garibaldi is going to make some noise right next to us. Steve Regoci and his crew have been working exceptionally hard and we are in communication.”
At Least 3 Significant Zones Hit In H-23
H-23 hit a 40-m pyrite zone between 186.3 and 226.7 m averaging 0.61 g/t Au and 0.35% Cu (0.79% CuEq)…
A wider pyrite zone (110.9 m) was encountered between 270.6 m and 381.6 m and returned 0.36 g/t Au and 0.47% Cu…
And a third, even wider pyrite-chalcopyrite zone was hit beginning just below 400 m and extending to at least 520 m…assays for that section, plus another 130 m of H-23, are pending…the hole was halted just before Christmas at a depth of 650 m, and could be extended as soon as crews return to the property for the next round of drilling…
Keep in mind, every round of drilling at the Hat has produced better results…after just 23 holes, the Lisle Zone measures nearly 1 km east-west and half a km north-south…mineralization is extending to impressive depths and is open in all directions…major tonnage is building here, and several other anomalies at the Hat have yet to be drill-tested…
H-23 provides strong evidence that Doubleview is drawing closer to the core of the Hat system, a potential “sweet spot” where grades could climb dramatically…is a potential world class deposit in the making here?…absolutely, and this is still very early in the game for Doubleview…getting a proper handle on the geometry of a porphyry system often takes at least 40 drill holes…
The fact that DBV has taken the Hat from a grassroots stage to where it is now, in less than 2 years, is a very notable achievement – a real success story – in any market environment…
Updated DBV Chart
Technically, DBV has several bullish factors in its favor at the moment including an RSI(14) on this 2-year weekly chart that has pushed above 50% for the first time since last October after forming a bullish “W”…significantly, the 50-day moving average (SMA) has flattened out at 13 cents and is now beginning to reverse to the upside…interestingly, the CMF shows modest accumulation of DBV since late September following a period of extended, albeit weak, sell pressure…major technical breakout possible this week…
DBV is up half a penny at 16.5 cents as of 6:50 am Pacific…
Today’s Equity Markets
Asia
China’s Shanghai Composite fell 30 points overnight, closing at 3175, following data that showed the country’s services sector grew at the slowest pace in 6 months in January…meanwhile, the People’s Bank of China (PBOC) decided today to cut banks’ reserve requirement ratio (RRR) by 50 basis points to 19.5%…the move is the first such cut since May 2012 and will lower the amount of deposits that each lender is required to hold as reserves…the measure will help keep the economy “stable”, the PBOC said…
Japan’s Nikkei powered 343 points higher overnight, a gain of 2%…
Europe
European markets are down modestly in late trading overseas…
North America
The Dow is up 7 points as of 6:50 am Pacific…
U.S. private employers added 213,000 jobs in January, falling short of the median forecasts of analysts, according to this morning’s ADP National Employment Report…economists surveyed by Reuters had forecast the ADP Report would show a gain of 225,000 jobs…
In Toronto, the TSX is down 91 points while the Venture is steady at 693 as of 6:50 am Pacific…
Venture 5-Year Weekly Chart
The Venture’s oversold technical conditions have abated significantly since the Index hit a record low of 637 in mid-December…the RSI(14) has now climbed above oversold territory and will likely continue to trend higher, especially after yesterday’s important confirmed breakout in the Index above resistance at 680…
Whether the bear market is now over is anyone’s guess, but at the moment the Venture is looking healthier than it has from a technical standpoint since last year’s slow but steady climb higher through the first half of the year…
Cannabix Technologies Inc. (BLO, CSE, BLOZF, OTC) Update
Our favorite non-resource play in the speculative space continues to be Cannabix Technologies (BLO, CSE) which is inching closer to unveiling its marijuana breathalyzer prototype as reported by the company Monday…since last summer, BLO has been developing this feature rich, durable, hand-held device for potential use by law enforcement and in the workplace…the company says the prototype is proceeding as planned with the mechanical design, circuit board layouts, firmware and printed circuit board designs all nearing completion…
“We expect our prototype to be complete in the coming weeks and we’ll be sharing news about testing,” stated Kal Malhi, President of Cannabix. “Our team is working hard to deliver a prototype for trial testing as quickly as possible.”
This is a company that has so far shown the ability to execute on all fronts which puts it into an elite category as far as CSE or Venture-listed companies are concerned…
The overall trading pattern in Cannabix since November remains highly encouraging as shown in the 4-month daily chart below (note that this chart is in U.S. dollars – based on BLO’s OTC listing – as Stockcharts.com does not yet provide charts for CSE listings)…
For the first time since it was launched in June of last year, Cannabix has been forming an exceptionally solid base and has been rising very gradually in step with its 20-day supporting moving average currently at 16 cents CDN…not shown on the chart below is the 100-day SMA which has just reversed to the upside, another bullish development…
Volume also remains impressive and has been trending higher in recent sessions, both in the U.S. (critical as this is primarily an American story) and Canada…
BLO is up a penny at 19.5 cents on the CSE as of 6:50 am Pacific…
Columbus Gold Corp. (CGT, TSX-V) Update
More good news from Columbus Gold (CGT, TSX-V) recently as the company reported January 22 that the government of France had no objections to Columbus ‘s agreement with Nordgold (NORD, LSE)…the world’s 13th largest Gold producer can earn a 50.01% interest in CGT’s Montagne d’Or Gold deposit and the Paul Isnard mineral claims in French Guiana by financing a minimum of $30 million (U.S.) in expenditures and completing a feasibility study no later than March, 2017…
The Montagne d’Or deposit is presently defined over 2,500 m x 400 m and to an average depth of 250 m from surface, so a significant open-pit operation is being targeted here…
An updated resource estimate and a Preliminary Environmental Assessment are on track for completion in the coming weeks, and a Preliminary Economic Assessment is expected this spring…
Columbus also has a very interesting project in Nevada, and news on that just came out this morning…
Technically, CGT has broken out above Fib. resistance at 45 cents and a downtrend line in place since last spring…very strong support in the mid-40’s with resistance in the low 50’s…
CGT is unchanged at 49 cents through the first 20 minutes of trading today…
Note: John and Jon both hold share positions in DBV and BLO.
Nice write-up on DBV but boy was I hoping for better results. We got a quick up tick in the share price but it looks like it will fall back a few cents and then we wait for the third and final assay results from the hole. If the third set of assay results fall off, does this change you opinion on DBV?
Comment by Peter — February 4, 2015 @ 7:22 am
Like I said last week, I sold my remaining precious metals stocks last week, DBV being one of them. This a company changing hole and the market should reward the company. Best of luck to those who continue to hold; I hope you guys make a killing on it. I might get back in on this one once they start a more aggressive drilling campaign in the spring.
Regarding BLO, this stock will catch a lot of people off guard. It’s just itching to explode higher.
Comment by chris — February 4, 2015 @ 7:26 am
The next 120 meters looks great with a visual of Pyrite,chalcopyrite. He talk with BMR about the last 130 meters visual?
Comment by guy delisle — February 4, 2015 @ 7:28 am
Hoping for better results in what, Peter? (the market or the hole?)…the DBV market is looking very solid this morning…if remember this time last year when the company came out with its first discovery hole, investors were worried when the stock was only around 10 cents during the early hours of trading…look how it rocketed higher in the days and weeks after…this market is slow in reacting to any news, but it does catch up…as far as the rest of the hole is concerned, I somehow doubt the numbers will fall off…looks like a juicy zone for at least 120 m…even without the last 250 m, this is an excellent hole…
Comment by Jon - BMR — February 4, 2015 @ 7:29 am
Keep an eye on BLO today.
Although volume is low it is trading steadily at the ASK.
Strong on the bid. Looking very strong technically.
Comment by John BMR — February 4, 2015 @ 7:42 am
Jon- can you comment on your talk with Farshad yesterday. As Guy Delisle said, there is 120m of Pyrite & chalcopyrite but what about the remaining 130m? Did he tell you anything about its composition? Thanks
Comment by d4 — February 4, 2015 @ 7:53 am
I’m speculating, d4, but since the news stated “at least” 120 m….I’m not sure they’ve even been able yet to log the last 130 m yet…which means, potentially, this is completely open-ended after 400 m…think about that. This has the chance to be a monster hole, and it may not have ended yet at 650 m…remember when Imperial drilled a 1+ km long hole at Red Chris, and what they hit?…
Comment by Jon - BMR — February 4, 2015 @ 8:07 am
Jon- makes sense as we do know they didn’t finish logging the last 250m so they are maybe being cautious and saying atleast 120m. Besides, they say atleast 120m which could technically mean all 250m.
Comment by d4 — February 4, 2015 @ 8:25 am
Great news all around…kudos to Farshad and his team. Do we have any time frame on when the assays come back on the last 120m+ ? Also, there hasn’t been any talk about the next drill program. I sure hope it’s sooner rather than later.
Comment by Steve A. — February 4, 2015 @ 8:40 am
Yes, d4, I believe you’re right there. Below 400 m the grades are going to have to get even better. Again, visuals can be tough to gauge but so far on this hole they’ve been very accurate. One cannot rule out a very rich zone further at depth (on this hole or another), would be consistent with the geology of northwest B.C. The fact they’re picking up the best levels yet in Mo, Zn and Co suggests they might be closing in on even better mineralization.
Comment by Jon - BMR — February 4, 2015 @ 8:43 am
DBV trading well and on very high volume. Trading slowed down mid morning and then once it closed the gap from the open it ran back up right away with new support following it. Nice accumulation happening and we are finally chewing the over hang from the PP (holding period ended in Dec).
Comment by d4 — February 4, 2015 @ 8:57 am
Won’t the problem with DBV be that they have no money to go forward and that will hold the share price down. Same with GGI. One million dollars isn’t going to drill many holes up there so unless they get lucky like DBV last year, they may not prove alot, like PGX.
Comment by PaulH — February 4, 2015 @ 11:16 am
Paul, you’re right about GGI being in the best financial position of any company in the Sheslay district at the moment, but I’m pretty certain that based on DBV’s results they will find the money to carry on right away to the next step.
Comment by Jon - BMR — February 4, 2015 @ 11:24 am
I heard that financing is not going to be an issue. People that know Farshad know that he always finds money with minimal dilution. The fact that DBV will need more money to continue drilling in a non-issue imo. I think this time it will actually be easier to find money due to the last results.
Comment by d4 — February 4, 2015 @ 11:53 am
You’re right, d4. It’s really a non-issue with DBV, especially now. I suspect he has people knocking on his door, as opposed to the other way around.
Comment by Jon - BMR — February 4, 2015 @ 11:58 am
Nlce to see BLO gain momentum. Their special AGM on 17th(?) should be interesting. its focus is the spin off of mineral property but you never know what else my pop up. richer l
Comment by richard l — February 4, 2015 @ 3:35 pm
FYI- Premier Gold (PG) joint ventures (50/50) Hardrock project for $300 million.
Comment by terry — February 5, 2015 @ 5:42 am
Hey everyone Keep an eye on fnc.v volume has been picking up since President of Company got back from China After meeting with Pangang
Comment by Tony T — February 5, 2015 @ 6:46 am