Gold has hovered between $1,407 and $1,419 so far today…as of 8:15 am Pacific, the yellow metal is up $1 an ounce at $1,413…Silver is off 39 cents to $33.15 while the U.S. Dollar Index is weak again today, down over one-tenth of a point to 77.15…weakness in the greenback given geopolitical unrest does not bode well for the U.S. Dollar which traditionally has enjoyed a safe haven status…John is working on an interesting TSX Gold Index chart which we’ll be posting today…U.S. jobless claims dropped to 391,000 in the week ended February 19, down from 413,000 a week earlier…the 4-week moving average has dropped to 402,000, the lowest since mid-2008 as the U.S. economy continues to show signs of improvement but the recovery is fragile…the CDNX is off 10 points at 2357…Cadillac Mining (CQX, TSX-V) is turning aggressive and will soon be hunting for Gold at its “Wasa” claims, contiguous to Richmont’s (RIC, TSX) Wasamac Property which has had a huge increase in 43-101 resources…this is exactly what we were hoping for as Cadillac is going to “seize the moment” as outlined in their news release which just came out within the last hour…Cadillac is proceeding with a geophysics and diamond drilling program at Wasa in order to test for a possible high grade depth extension of Wasamac where Richmont currently has three rigs in operation…the Wasamac deposit, which now boasts resources of 1.4 million ounces, dips northerly at 50 to 55 degrees toward Cadillac’s ground which consists of seven claims…there are also some highly prospective VMS targets on Cadillac’s ground…the infamous Horne fault runs right through their property…Desjardins calls Wasamac a potential “game-changing asset” for Richmont, and we view Cadillac’s Wasa claims as a potential “game-changing asset” for CQX…Richmont is hungry for additional resources and there’s always the chance down the road that it may get hungry for Cadillac too or a major may just step in and grab everything if Wasamac keeps growing and Cadillac discovers something significant as well…in any event, three Richmont rigs at Wasamac and a Cadillac drill rig immediately to the north are going to make things very interesting in that part of northwestern Quebec…Cadillac has also announced it has secured the final outstanding patented claims at Goldstrike in Utah, and the company has also hired investor relations which demonstrates it’s getting serious about driving shareholder value…Cadillac is currently unchanged at 34.5 cents…the CQX chart looks very bullish and with a market cap of just $8.6 million, the risk-reward ratio with this one is extremely attractive…Everton Resources (EVR, TSX-V), which we have mentioned here on numerous occasions over the last several months, has had an impressive run this week…Everton has commenced deep drilling at its APV Property in the Dominican Republic, contiguous to the massive Barrick-Goldcorp Pueblo Deposit…EVR hit a new 52-week high of 41 cents this morning and is currently trading at 39.5 cents, up a penny…there is stiff technical resistance around the 40-cent level and EVR may need to at least partially unwind its current overbought condition before plowing through that resistance…we like Everton a lot and we’re hoping to do another interview in the near future with President and CEO Andre Audet…GoldQuest Mining (GQC, TSX-V) is down a penny at 38.5 cents…GQC is in a zone of strong technical support and we’re expecting big things out of this company as it continues its exploration in the mineralization-rich DR…Gold Bullion Development (GBB, TSX-V) is off a penny at 52 cents…we’re in the process of completing a major report on Granada after the release of more than 50 more assay results from Gold Bullion last week…as we’ve mentioned, our faith in the Granada Property remains as strong as ever and we have a bullish interpretation of the latest results…John has completed a new chart on Adventure Gold (AGE, TSX-V) which we just posted…AGE is up three pennies this morning at 61 cents…Greencastle Resources (VGN, TSX-V) continues to trade just slightly above its 200 and 300-day moving averages…investors should keep in mind that firmer oil prices this year would be a significant cash flow boost for Greencastle which earns monthly royalties from heavy crude production at Primate in Saskatchewan…the stock has languished recently due to the lack of news on the Gold front for Greencastle…with at least $6 million in working capital, monthly cash flow that could generate approximately $2 million this year, and three Gold properties at the moment, the current Greencastle price has to be considered a low risk entry point…VGN is off a penny at 22 cents…
February 24, 2011
25 Comments
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Good Morning guys
can you please tell me where you are seeing the news release on CQX?, I am not seeing it anywhere.
thanks Greg
Comment by GREG H — February 24, 2011 @ 8:32 am
Nevermind
found it on stockwatch
thx greg
Comment by GREG H — February 24, 2011 @ 8:34 am
Hi BMR,
SD is taking a very long time to come out with results. In your opinion is this an unusual delay and if not how long does it usually take to analyze the cores and get results. Seems like Canaco got back results much quicker.
Comment by asher — February 24, 2011 @ 9:10 am
CQX…..are they preparing to drill or already drilling along with geophysics? If not, how long before drilling starts? The NR is not clear.
Thanks
Comment by Dan — February 24, 2011 @ 9:46 am
CQX news release says that they expect to announce details of the exploration programme in the near future. BKC is the new IR service: berniekc@telus.net
Comment by Andrew — February 24, 2011 @ 9:57 am
Cadillac is gearing up for a drill program. Keep in mind also that Visible Gold will likely be drilling very soon at one of Cadillac’s properties as part of their partnership agreement in early December – I suspect Visible Gold’s priority will be the claims immediately next door to Vantex’s Galloway Discovery. Things are going to heat up with CQX (and also VGD)…..the market hasn’t quite caught on to what’s happening at Wasamac, everyone, and that means opportunity.
Comment by Jon - BMR — February 24, 2011 @ 10:02 am
Jon
what is CQX cash position?
thx greg
Comment by GREG H — February 24, 2011 @ 10:16 am
Greg, they have a few hundred thousand in the bank. Obviously they will be raising some money at some point, but I don’t suspect it’ll be at current prices. With the hiring of IR and a drill program about to happen at Wasa, these guys are obviously serious and I think you’re going to see some heavy hitters step up to the plate. This is very good news this morning. The overall market is weak today but I think a turnaround is in the cards soon if you look at the charts.
Comment by Jon - BMR — February 24, 2011 @ 10:32 am
Its concerning to see small caps underperform at the moment when gold prices are strong. In the past few days it almost seems as though things are divergening between the CDNX and commodity prices. Is this echoing another correction?
Comment by Andrew M — February 24, 2011 @ 12:12 pm
Thanks Jon
recieved the following back from the new IR company this morning in response to my question about financing,funds and focus on projects both in Utah and on Wasa. My email was actually sent to Victor and Andre, but was returned by the new IR person
see below
Thank you very much for your email (below) and for your support of Cadillac Mining Corp. (TSX.V:CQX). As I’m sure you read in our press release I am new to the company, so I will do my best to answer your inquiries.
To answer you question directly yes the company will be looking towards a financing in the near future. The exact terms have not yet been set, but I would suggest that each step in the financing process will be considered very carefully as managing their share structure has been and will continue to be of the highest priority. The track record of management in this regard speaks for itself.
The focus of the company has not necessarily changed, it is my understanding though that timing and strategy continue to play a significant role with exploration decisions. There is a large amount of data available on the projects in Utah and before an exploration budget and plan can be committed to management’s priority is to compile and analyze that data. They have made great strides on this initiative, but want to be confident with all available information before any money is spent on those projects.
Previous exploration work at the Wasa property has provided management with ample encouragement and when coupled with the results and location of the Wasamac shear zone it seems pretty clear that advancing and adding value to that project should be a priority in the near term.
I hope this helps,
Bernie Kennedy
Comment by GREG H — February 24, 2011 @ 12:14 pm
Jon
based on the info in the email from the IR people regarding financing, what kind of impact do you think it will have on the share price, I know it all depends on what price they do the financing at, but obviously they are going to need money to further the programs they have planned, just trying to decide if now is a good time to purchase more or should a person wait and see what the financing is going to be, would appreciate your thoughts
thx greg
Comment by GREG H — February 24, 2011 @ 12:18 pm
Thanks for sharing your CQX IR info, Greg. VGD have a nr just out too, I’m cautious with VGD due to Joe Dwek’s involvement (Pathway and Mineralfields). VGD will have assay results from Silidor next week.
Comment by Andrew — February 24, 2011 @ 12:34 pm
Good response from Cadillac’s IR department….
My thoughts: The company is very protective of its share structure and I don’t expect any kind of a LARGE financing in the very near future around current levels………keep in mind they have enough to get things going at Wasa and the share price could move in a hurry as exploration begins, or on any new information from Richmont….OR….on what VGD will be doing as there will be drilling at another Cadillac property in the near future….
Comment by Jon - BMR — February 24, 2011 @ 12:42 pm
Jon,
just verified from IR that they currently have 200-250k in funds right now, also one of IR’s high priority is to overhaul the website, sounds like good things are going to be happening in the near future with CQX. The more I research this company and others like it, this company really is undervalued.
thanks for bringing it to my attention
Greg
Comment by GREG H — February 24, 2011 @ 12:51 pm
Greg, Visible Gold just announced 9,000 metres of drilling on Cadillac’s properties………
Comment by Jon - BMR — February 24, 2011 @ 12:59 pm
thanks Jon
I was just reading the release, sounds good, like I said looks like alot of possible good things/activity happening for CQX.
Comment by GREG H — February 24, 2011 @ 1:02 pm
RE: CQX
also confirmed with IR that the next financing will be for enough funds to fund the Wasa drilling only.
Greg
Comment by GREG H — February 24, 2011 @ 1:29 pm
Jon
Question, when you have 2 different companies like CQX and Richmont right next door to each other, do they share info with each other on their findings?
thx
greg
Comment by GREG H — February 24, 2011 @ 11:56 pm
Cello BMR.
Anything new about ABI? BMR has been very about ABI, why??
Comment by Carl — February 25, 2011 @ 2:40 am
Hi Carl, I don’t think we’ve been quiet about it…..we don’t mention every company we follow every morning……we gave a good update on ABI in our Week In Review and we’ve been mentioning it occasionally in our Morning Musings…..yesterday I was actually communicating with Renaud at ABI, so we’re certainly on top of the story….continues to look exceptionally good……..
Comment by Jon - BMR — February 25, 2011 @ 6:01 am
Very good question, Greg…….I don’t know for sure but I suspect there could be some communication between CQX and Richmont….I wouldn’t be surprised if Richmont has actually drilled onto Cadillac’s ground (similar for example to GBB drilling at depth onto AGE’s ground)……….on the other hand, I’m sure Richmont wants to keep its cards fairly close to its chest….very interesting scenario shaping up here……..
Comment by Jon - BMR — February 25, 2011 @ 6:04 am
Thanks Jon for your answer about ABI, then I give ABI another chance, waiting for more results that should be comming soon.
Comment by Carl — February 25, 2011 @ 6:55 am
Thanks Jon
seems to me that it would benefit both companies if they did have some type of agreement since they are so close together?
greg
Comment by GREG H — February 25, 2011 @ 7:02 am
Hi Jon
I know you are putting together an update on GBB for us. In the process I was wondering if you’ve talked to Frank
since the news release, and do you have a geologist look at the results?
I continue to appreciate all you do on this site, as I am sure many others do…………Bob
Comment by Bob — February 25, 2011 @ 7:05 am
Hi Bob, still working on everything with GBB….report will be coming out next week for sure…I have not spoken with Frank yet….we have a number of eyes (geological and otherwise) looking at all the results….I’m traveling and in meetings the rest of today and won’t be able to reply to any other questions until late tonight…
Comment by Jon - BMR — February 25, 2011 @ 7:09 am