Gold has traded between $1,150 and $1,162 so far today as it nears its 6th weekly drop out of 7…as of 8:45 am Pacific, bullion is relatively unchanged at $1,153…Silver is off 4 cents at $15.49…Copper is flat at $2.65…Crude Oil has tumbled $1.79 a barrel to $45.26 while the U.S. Dollar Index has gained nearly a full point to 100.16…
Gold is trying to snap a 9-session losing skid today, its longest since August 1973 according to Reuters…in a reflection of bearish sentiment, SPDR Gold Trust, the world’s largest Gold-backed ETF, fell 0.28% yesterday to 750.95 tonnes, the lowest since late January…the fund has not seen any inflows for 3 weeks but holdings are higher than they were at the end of 2014…
Platinum, which fell to its lowest since 2009 this week, is poised for its 7th weekly decline out of 8…
Russia’s central bank cut its key interest rate today by 1 percentage point to 14% in an attempt to support the economy, which is sliding into a brutal recession, brought on in large part by low Oil prices…the bank predicts Russia’s economy will shrink by between 3.5% and 4% this year…
Platinum, which fell to its lowest since 2009 this week, is poised for its 7th weekly fall in 8…
Oil Update
The Oil market’s recent rebound may not last, an influential energy watchdog warned today, as the U.S.’s ability to keep pumping more Crude has defied expectations and could set the stage for prices to hit new lows…in its closely watched monthly report, the IEA said U.S. Oil production was up 115,000 barrels a day in February, much of it going into bulging storage inventories whose capacity may soon be tested. “That would inevitably lead to renewed price weakness,” the report said…
Estimates are that China is saving over $60 million on its daily 12-million barrel import bill, or over $200 billion a year, following the halving in Oil prices since last summer…those savings approximate the recent investment initiatives announced by the government to strengthen ties with neighbors by building trade and transport links: $50 billion for China’s Asian Infrastructure Investment Bank, $40 billion for the Silk Road infrastructure fund and $10 billion for the New Development Bank, which Beijing is co-founding with Brazil, Russia, India and South Africa, plus $41 billion for a related contingency fund…
TSX Gold Index Updated Chart
A 52% surge in the the TSX Gold Index in just 3 months between early November and early February was followed by a more than 20% correction that may have ended this week…we’ll see…this 6-month daily chart shows the Index beginning to recover after landing at chart support at 150 Wednesday…sell pressure is in decline and the SS indicator, after hitting similar lows to those seen during the double bottom in the Index late last year, is starting to increase…it’ll be important for the 150 level to hold…
A further drop in Oil, should it occur, will be supportive of the Gold producers…
FTSE All-World Index Chart
The FTSE All-World Index (London Stock Exchange) covers a vast number of companies in nearly 50 countries, so it provides valuable insight into the state of global equities…
What’s important to note in this chart is how this Index appears to have reversed at the 275 level from an early March sell-off with a confirmed Morning Doji Star…importantly, the uptrend line from late last year remains intact…
RSI(14) has bounced up from previous support…note how the Index weakened after RSI(14) fell below its 2.5-month uptrend line…
Today’s Equity Markets
Asia
Japan’s Nikkei average surged to a new 15-year high overnight, climbing 239 points or 1.4% to close above 19000…China’s Shanghai Composite, meanwhile, gained 24 points to finish at 3374…
Europe
European markets were mostly slightly lower today…
North America
The Dow is down 255 points as of 8:45 am Pacific with investors uneasy about a rising dollar today…U.S. producer prices unexpectedly fell in February on weak trade margins, pointing to muted inflation pressures that argue against a possible June interest rate hike from the Federal Reserve…the Labor Department reported this morning that its PPI for final demand fell 0.5% after dropping 0.8% in January…it was the 4th straight monthly decline in the PPI…in the 12 months through February, producer prices fell 0.6%, the first drop since the series was revamped in 2009…economists polled by Reuters had forecast the PPI rising 0.3% last month and remaining unchanged from a year ago…
The TSX has fallen 153 points as of 8:45 am Pacific while the Venture has slipped 9 points to 665…
CDNX 2-Month Daily Chart
The Venture needs the U.S. Dollar Index to cool off, plain and simple, and Oil not to hit new lows…this 2-month daily chart shows a cluster of Fib. support between 654 and 681…the Index found support in the low 660’s in January, and that’s going to be a critical area to hold again this time around…
Cannabix Technologies Inc. (BLO, CSE, BLOZF, OTC) Update
The possibilities for Cannabix Technologies (BLO, CSE) as a first-move in the marijuana breathalyzer market are tremendous in our view, which is why BLO remains our favorite speculative company in the non-resource sector…it’s up 250% already this year…
Technically, what’s going to be interesting through the balance of this month is how the current bullish pennant resolves itself (BLO is pushing right up against it right now)…the ideal “accumulation zone” on the pullback has been between 30 cents (CDN) and the upper 40’s, as John’s charting has shown, and the potential for another breakout increases significantly on a confirmed move above the pennant…
BLO is up a penny at 50 cents on the CSE as of 8:45 am Pacific (the chart below is based on U.S. trading as Stockcharts.com does not yet make charts available for CSE-listed companies)…
Fission Uranium Corp. (FCU, TSX) Update
There’s no denying the world class resource Fission Uranium (FCU, TSX) has outlined at its newly-named Triple R deposit in the Athabasca Basin – large, high-grade and relatively shallow…and a new high-grade zone is currently being delineated about half a km west of the Triple R deposit…at the right time, FCU is likely to be swallowed by a bigger fish, so for patient investors there is still plenty of potential upside here…
The breakout at the beginning of this year above the downsloping flag and Fib. resistance at $1.05 was significant…the 50-day moving average (SMA) – MA(10) on this chart – has crossed above the 200-day SMA – MA(40) – which has flattened out just below $1.10 and appears to be gearing up for a reversal to the upside…
FCU is up 2 pennies at $1.57 as of 8:45 am Pacific…
Note: John and Jon both hold share positions in BLO.
After 2 days, I finally heard from Michel. The tone in his email left me with some concern. In an earlier email, he said that they would be on the property in early March and set to drill shortly thereafter. Todays email, he says that he never discussed delaying drilling till May or starting to drill in March. He said that he has discussed nothing to no one and NR will be issued when there is something to issue. They have the property, but do they have the management. Time will tell.
Comment by dave — March 13, 2015 @ 8:02 am
Post #1 regarding WRR – sorry.
Comment by dave — March 13, 2015 @ 8:03 am
Any chance of a chart for Claude Resources (CRJ). Management has cut costs and they are producing from a richer ore deposit. SP has moved up nicely and I’m wondering when I should take profits.
Comment by Tom UK — March 13, 2015 @ 8:33 am
dan,regoci”we’re into a period of accelerated news flow”,an update on the el rey and dolores targets will be provided shortly.now,i think we should hold him to that,while we’ve been waiting i’m sure they have continued to drill,and samples have been flowing to the lab,maybe jon can atest to that?disappointed it didnt move but in these market conditions not really surprised.one should keep in mind that all the criteria is in place for a potential breakout.
Comment by tombc — March 13, 2015 @ 8:34 am
the venture is done. Dead.
Comment by Tony T — March 13, 2015 @ 8:55 am
just to add to ggi,its going to take more results to get this one going,no movement appears to me to be a positive sign,i would think more news is maybe a week or two away,not months,lets hope.
Comment by tombc — March 13, 2015 @ 9:36 am
The mining stocks are dead money. All other non mining doing very well.
Comment by dave — March 13, 2015 @ 9:45 am
tony t.some majors iv’e seen are all up,slw,aem g, oil is the downer..
Comment by tombc — March 13, 2015 @ 9:59 am
Dave
sort of makes you wonder if WRR is going to drill this property at all, or is the 300k they raised going for Michael’s salary…. management is everything in these small Venture companies..
Wonder of Schuster knows anything?
Comment by Greg — March 13, 2015 @ 10:52 am
Re: GGI I have been saying for a while now that the way GGI trades makes no sense at all, before they released news there was no volume and after news very little volume, we that follow BMR must be the only ones that even know GGI exist.. with what they have and their market cap this stock should be over 50 cents easily, makes no sense to me even in this market..
Comment by Greg — March 13, 2015 @ 10:57 am
11.Jon, I think you need to verify what has been posted today regarding WRR, especially after your in-depth review this week. Thanks
Comment by Dan — March 13, 2015 @ 1:12 pm
Hi Dan, I’m more than happy to verify that this particular management team (WRR) knows exactly what’s it’s doing, and has a first-rate property to boot, otherwise we would have never given the in-depth review that we did. After just announcing the completion of their financing, it’s reasonable to expect they’ll be updating investors shortly on plans for Lapon Canyon.
Comment by Jon - BMR — March 13, 2015 @ 2:43 pm
Looks like VGD is ready to make its move.Heavy volume came in at the end of the day with price closing up .03 to $0.20,and the CFO has confirmed results should be in Monday,so results released on Monday/Tuesday,and if the cores come in anywhere near what we have seen in the boulders…look out!Imo,mining is not dead,but it needs the shot in the arm of finding the next big elephant.VGD could be that elephant.
Comment by Jim Niles — March 13, 2015 @ 4:45 pm
Let’s hope they hit, Jim. It’s virgin territory, lots of possibilities. I’m not expecting a glory hole, but a hole that gives them some decent grades, a trail, a path, a clear demonstration that they’re onto something – that would be my definition of success at this point (may not be the market’s). Plus they’ll learn a lot about structure just by examining the core and comparing that with the assays. Keep in mind, with a market cap of $16 million, significant expectations are already built into this. No matter what the initial results are, though, this project has a lot of potential upside – for this year and beyond.
Comment by Jon - BMR — March 13, 2015 @ 5:54 pm
A question for Dave re: WRR
Your message at the top of this thread is disturbing, particularly since less than a week ago everything was so positive. I won’t re-quote your statements, but I’m sure you will agree they were gushing over with confidence. What happened? Why so polar all of a sudden? Sounds a little spooky, would very much like to hear your thoughts. Thx.
Comment by Morris D. — March 14, 2015 @ 12:14 am
Temex Corp. TME:TSX.V Interesting company has JV with Goldcorp, has a resource and $2 million cash trading at 0.04.
Comment by Robert — March 14, 2015 @ 4:18 am
Check out Allan Barry’s thoughts on GGI at about the 35:35 minute mark. He don’t own shares because they have a banner on his website. What’s got him excited is the drill hole and the extremely high grade silver GGI is pulling from the ground.
Read on Agoracom website (March 12,2015)…
Comment by Dan — March 14, 2015 @ 6:06 am
By the way Jon, when are you going to release the interview with Regoci? Thanks
Comment by Dan — March 14, 2015 @ 6:06 am
Working on it, Dan.
Comment by Jon - BMR — March 14, 2015 @ 7:21 am
Morris – WRR – Still very high on the land and whats in it. I was not happy with the email response I got from management. They failed to answer a simple question and snuffed me off on Friday. The project could be world class, but the attitude of management has seemed to change. If they don’t start drilling till May, that means assays in July or August. That is a long time for me to wait, but I know its not for some. So although I am high on the land, it does us no good if management takes forever to get the drills going.
Comment by dave — March 14, 2015 @ 8:20 am
Dave, email is one of the worst forms of communication there is. I prefer face-to-face, and on the phone, and that’s how we’ve conducted our DD on this company. And it’s worth adding, any smart management person will be extremely careful in how he/she corresponds with investors by email. They can’t give out information that’s not in the public domain. You’ll get a very general response that may seem evasive or could be interpreted as “snuffing” you off. So, assessing a company/opportunity based on email correspondence is ill advised. Too many management people have been burned by investors on emails. The smart ones won’t trust anyone when it comes to this form of communication.
I spoke with Michel twice yesterday. And I spoke with Thomas Schuster just recently as well. I certainly don’t have a sense that the “attitude” of management has changed. They just finished a financing. They have a game plan and I’m sure they’re going to execute on it in a very timely fashion. As an investor, I’m looking forward to the next news, the next update, and how this is all going to play out. In situations like this, like with BLO and some others that are exceptional opportunities, I believe it’s wise to hold both a core position and a trading position; have a clear understanding of the value proposition and the value drivers, and never let emotions control your decisions.
Comment by Jon - BMR — March 14, 2015 @ 8:52 am
Dan, I saw that early this week already, he says the so called silver community hasn’t heard about ggi yet, well, isn’t that agoracoms job to get the word out there? Regoci should be stepping on some toes to get it out there. The only place I see any thing on ggi is here. Maybe regoci should have hired bmr instead.
Comment by Tombc — March 14, 2015 @ 9:29 am
Jon, just curious, have you seen that piece on ggi on the 12th of March on agoracom,they have shares for advert services but can only comment on what he reads on the ggi website,, really?? George tsiolis, founder. Lol does this make sense or am I missing something here?
Comment by Tombc — March 14, 2015 @ 12:17 pm
Hi Jon…Whats your thoughts about the latest goings on the GBB forum?? and what are your thoughts on Quebec being mining friendly that don’t like to give out permits?? Let me rephrase that they give out every permit but the most crucial one?? cheers
Comment by kersmash — March 14, 2015 @ 1:41 pm
Kersmash, postings in any forum can sometimes be helpful, and can also be a distraction and unhelpful…cuts both ways…I can recall here in our comments section, how there was a lot of negativity regarding BLO when it started trading below a dime…emotions often get into postings…I’m focused on the facts and the big picture with this near-term producer (GBB) which include the simplicity of the first stage of open-pit mining, the inevitability of the final permit, the attractive economics, the potential of a takeover…lots of positives, particularly at current price levels…I also like the Castle deal – the timing to me in particular is a bullish indicator…I suspect there’s a Part 2 to this that could wow investors…I would certainly recommend to everyone to keep TKK on their radar screens, not to mention GBB.
Comment by Jon - BMR — March 14, 2015 @ 2:43 pm
Tombc – Maybe Regoci should have hired bmr instead.
Bert – Why hire BMR, they are getting them for free. Anyway, my opinion
for what it may be worth, GGI didn’t seem to have any large buyers lined
up. They have several people getting their message out, but no one seems
to have faith in messengers these days, instead, they want to see the
large buyers & of course, more buyers do follow heavy volume.
Jon —Email is one of the worst forms of communication there is.
I prefer face-to-face, and on the phone.
Bert –I agree, but this poster’s story goes as follows; i try phoning twice,
to ascertain when drilling is to commence, but am greeted by a person
using some alien language. I then resort to the worst form of communication,
that is email, asking the same question & would you believe, after several
days, i was not given the courtesy of a reply. I then try to sell my 30K shares
at 0.045, but wasn’t filled in 2 trading days, and was timed out Friday, at the
close. They may have a good property, but a poster summed it up recently, good
property may not do it, if Management is lacking. I am now wondering, why the
heck did i buy WRR shares in the beginning, especially since they have proven up
zilch so far & that’s precisely how some of us got in trouble in the beginning,
remember RBW ? Good night !
Comment by Bert — March 14, 2015 @ 6:13 pm
Jon, In your post #21, it sounds like you are trying to teach a newbie how to trade. Its not about emotions as I am a long time seasoned trader. Its not about how the contact was made. I too tried calling just like Bert and got the same results. So tell me, how did you call and get different results. I resulted to the last form of communication which was email. But lets get back to trading. I don’t sit on dead money. I am high on the land and down on management. If I want to wait, I will take a core position, and so on. It may be another 2 months before they start drilling and I could easily have doubled the money by then and still purchased WRR at .05 or under.I am playing with my money and its not from monopoly.
Comment by dave — March 14, 2015 @ 9:09 pm
May I add that I am anxious to see the assays on VGD. Most of the buying in the last hour was done by Desi and like I said, they don’t buy for pennies.
Jon – also, I still have my core in WRR at .02 just in case. But if they delay drilling long enough, we might see it back there again. Unless VGD has great results and people start buying WRR for the area play. Lets see what this week brings us.
Comment by dave — March 14, 2015 @ 9:30 pm
I’m anxious, too, Dave, and I hope they have a whopper of a hole; however, meeting the market’s immediate expectations is going to be difficult for VGD with a current valuation already at $16 million. So be prepared for volatility. It’s an excellent grassroots project with 600 sq. km, and what they have found at surface (followed up by the geophysics) shows they’re onto something. Keep in mind, also, the targets/approach/strategy with the VGD drilling – it’s a completely different animal than what we’re talking about with WRR. Completely different. Some people may need to be reminded of that soon. On another note, this isn’t 2010 or 2011 – WRR has a small parcel of land about 13 km from VGD. Probably a very valuable long-term package to have, but it’s far too early for this to be a sustained share price driver. 2 things will kick-start an area play: a drilling discovery, and many more participants. That means VGD optioning ground.
Comment by Jon - BMR — March 15, 2015 @ 2:09 am
IMO ELO is the best area play for VGD. Its is in line and the closest to the 2 high grade boulders. Consequently, its maintained its gains and has had a lot of insider/management accumulation. O/S shares is approx 13 million with a float of only approx 5 million. Its success doesn’t solely lie on its proximity to VGD as it also has another property which is gearing up to be drilled and just had good grab samples. One to keep an eye on when VGD results come out.
Comment by d4 — March 15, 2015 @ 3:04 am