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February 25, 2011

BMR Morning Market Musings…

Gold has traded between $1,399 and $1,411 so far today…as of 7 am Pacific time, the yellow metal is up $2 an ounce at $1,404…Silver, after a big tumble yesterday, is recovering today…it’s currently up 62 cents at $32.73…the U.S. Dollar Index is up one-third of a point at 77.40…some key U.S. economic data came out this morning…the Commerce Department has revised downward GDP growth in the 4th quarter to 2.8% from 3.2%…economists were expecting a slight upward revision…the slower growth rate confirms the Federal Reserve’s concern that the pace of growth remains too slow to significantly lower a 9% unemployment rate…this will help keep the Fed vigilant in terms of maintaining its accommodating monetary stance…oil prices have flattened out slightly below $100 a barrel with Saudi Arabia assuring the market that it will cover for any fall in Libyan exports caused by the turmoil in that country…it has been a rough week for the CDNX which went into a bearish short-term reversal Tuesday after climbing as high as 2438…we see no reason why this pullback is any different from the ones we saw in January or November which opened up some attractive buying opportunities…the CDNX has tremendous technical support around the 2300 level, so we do expect an imminent reversal to the upside…important indicators such as RSI, Stochastics and the CMF have come down to areas of strong support, and the 20-day moving average continues to advance as it did through the November and January weakness…after 30 minutes of trading today, the CDNX is up 22 points at 2351…Morning Musings is slightly abbreviated this morning due to business travel today…some very late buying yesterday in GoldQuest Mining (GQC, TSX-V) raised our eyebrows as the stock quickly moved from a low of 38 cents and closed at its high of 45 cents…some market participants could be anticipating initial drill results from Escandalosa and it makes sense that those results could come prior to the start of PDAC which begins March 6 in Toronto, based on our interview recently with Chairman Bill Fisher…a 43-101 resource estimate on GQC’s Toral lead-zinc-silver deposit is also due…there was news on a couple of fronts yesterday concerning Cadillac Mining (CQX-TSX-V)…the company has announced it’s preparing an exploration program including geophysics and diamond drilling for its Wasa Property which adjoins Richmont’s (RIC, TSX) 1.4 million ounce Wasamac deposit…the structure which hosts Gold mineralization at Wasamac dips northerly onto Cadillac’s ground…Cadillac will be pursuing not only Gold targets at Wasa but VMS targets as well…in addition, Visible Gold (VGD, TSX-V) announced late in the trading day yesterday that it’s ready to initiate a 9,000 metre drill program covering other ground held by Cadillac which CQX and VGD have formed a partnership on…Cadillac is currently off 2 pennies at 29.5 cents…we’re interviewing President and CEO Victor Erickson in Vancouver this weekend…we continue to explore Visible Gold in more detail as we like what we see so far with that company…we expect VGD to become one of the most aggressive explorers along the Cadillac Trend…Visible Gold is well financed and has assembled a powerful team on the ground…the stock is up 2.5 cents this morning to 38 cents…Gold Bullion Development (GBB, TSX-V) continues to find support in the low 50’s which is encouraging…Abcourt Mines (ABI, TSX-V) is looking very healthy technically as it continues to build a strong base of support around 20 cents…

20 Comments

  1. BMR – Have you guys looked into Three Gold Resources (THG)? They currently own a large land package (1740ha) directly adjacent to GBB and they have a 5000m drill plan in place in Q2 2011. They also recently set up a JV with Osisko at the Duverny Project that hosts a past producing mine. This JV was set in place to allow the company to focus on their Adanac property thats next to GBB. They also have a 150 sqkm property that hosts Cu,Zn,Pb,Au in New Brunswick.

    I think THG gives investors the ability to participate in another stock that is currently exploring the Abitibi next to GBB at an undervalued price. Also, having a JV with a company like Osisko speaks volumes and could be a potentially be takeover target once it proves its Adanac property.

    Your response is appreciated.

    Comment by Andrew M — February 25, 2011 @ 8:16 am

  2. Hi Andrew
    Jon is not able to answer right now as he is travelling but he will probably tomorrow.

    Comment by John - BMR — February 25, 2011 @ 8:27 am

  3. hi guys, hey doing a great job as usual…enjoying ur commentaries…any news with ur interview with Alawas (SD) seems as though he’s avoiding u? Oh what the heck , they’re avoiding everyone!! Should u talk to him, let him know of his unhappy stk. holders..
    Thanx guys and looking forward to ur comments should u make contact.

    Comment by nikolay — February 25, 2011 @ 8:32 am

  4. Hi guys. Is it time to throw in the towel on VGN? I have witnessed this go from .15 to .44 and back down to .23. They were supposed to have some big news about a new aquisition, but it looks like this has failed to materialize. I know you guys are still keen on VGN, but there are other companies out there with more going for them at the moment than VGN, and I feel like I may be missinig some opportunities by staying here with VGN. Their silence is almost deafening at times. They are very quite of late, so am I to take this as they are really not doing anything at all??
    Regards,
    John.

    Comment by john — February 25, 2011 @ 8:47 am

  5. I hold VGN.V and am staying put – I think patience is required, just MHO

    Comment by Herb — February 25, 2011 @ 9:36 am

  6. Thanks for you thoughts Herb. What do you think the delay is all about in acquiring this new property, where do you think in might be in, Colombia?
    John

    Comment by john — February 25, 2011 @ 10:05 am

  7. Hello Guys,

    Any news or comments on SD?. It’s been long time no news.

    Comment by Eric Benson — February 25, 2011 @ 10:07 am

  8. Hi John and Eric
    The fundamentals of VGN and SD remain the same so patience is required here. Many stocks take a long time to come out with results, I’m afraid they do not move to investors timetable. I am holding on, as they still have great potential.

    Comment by John - BMR — February 25, 2011 @ 11:15 am

  9. Wouldn’t panic on VGN just yet John. Seems to have bottomed at 22c and is slowly going back up. One good nr either on drilling or the new property or preferably both should start a strong uptrend. Don’t forget in executing a buy low-sell high strategy you have to start with the first part. All just my opinion but I like their potential for big moves. Also their monthly oil checks are getting bigger every month. Haven’t a clue where they are looking for the new property but I hope we hear soon.

    Comment by Patrick — February 25, 2011 @ 11:23 am

  10. Great, and thanks for the comforting words, both from BMR and from Patrick. I started to buy in at .095 long ago and have steadily added when I could for the simple reason that they have all this money coming in every month. Now that they have become more active in the Gold space, I assume that I will just hang around and see what happens. My averave is abot .175. Thats the 1 thing I have been told my entire life, I must be PATIENT!! LOL. have a blessed weekend all, be safe and I look forward to the Weekend Review.
    John.

    Comment by john — February 25, 2011 @ 2:57 pm

  11. I have been looking at GQC recently and the company looks interesting. The thing is that right now I cant free any funds in my portfolio to take a position. So my question is, do you think the very soon upcoming NI 43-101 on the property in Spain will have much of an impact on the SP? Just dont wanna wait a couple of weeks and have to pay 50% extra for the same amount of stocks. I’m aware this question doesn’t have a precise answer, but just asking for your opinion. Thanks – J.C.

    Comment by J.C — February 25, 2011 @ 4:49 pm

  12. Andy is really trashing BMR on the GBB stockwatch board, I do not know whay I even waste my time reading that trash.

    Comment by GREG H — February 25, 2011 @ 11:00 pm

  13. Hi Andrew, I’m well aware of THG and it’s certainly a play to be keeping an eye on. In terms of their property next to GBB, I think the marketplace will put a higher value on that once it sees more results out of GBB and gets more comfortable with potential ounces in the ground numbers from Granada. If GBB pulls some good assays out of LONG Bars Zone 2, that would be bullish for THG as well. The 100-day MA is providing strong support for THG – it’s resting at that level right now – so technically it looks favorable in my view. The JV with Osisko is interesting.

    Comment by Jon - BMR — February 26, 2011 @ 7:09 am

  14. Hi Jon, when will you be posting your interview with Victor Erickson of CQX?

    Thanks

    Comment by Dan — February 26, 2011 @ 8:49 am

  15. Hi Dan, Monday or Tuesday.

    Comment by Jon - BMR — February 26, 2011 @ 9:28 am

  16. Be careful in what your saying Greg H. I never was trashing BMR on Stockhouse. I think Jon And John are trying there best to give us there honest opinions on stocks . I have also on many occasions bought there choices of stocks that they brought forward to us.I was just saying , and it’s my opinion, that mixing religion and investments is not a good thing to do or to be credible for the average people in this world . I think you should get out of your mother’s house and get your self a real job.

    Comment by Andre — February 26, 2011 @ 12:25 pm

  17. Andre there is no need for personal insults on this platform. I think everyone agrees that John and Jon do a fantastic effort to show us how the CNDX works. Why should their personal spiritual views be the subject for attack. I for one think this world needs more people to hold stronger personal attitudes in all aspects of their lives. This is a great site and I have huge respect for the guys efforts and I don’t want to see it degenerate into slagging matches. People looking for this should move to a different platform.

    Comment by Patrick — February 26, 2011 @ 12:40 pm

  18. Thank’s Patrick for your comment. You wrote exactly what a lot of people thinking!

    Comment by Sylvain — February 26, 2011 @ 2:12 pm

  19. Thanks’ Patrick for your comment. You wrote exactly what I’m thinking.
    I’ll only bring fore questions or responses that are worth of any value as this site definitely has some great information.I’m finding that reading the comments lately is a waste of time.

    Comment by Charles — February 26, 2011 @ 3:03 pm

  20. I apologize to BMR and everyone else here for my part in this, from here on forward I will definately not be responding to negative comments and will only be posting info that is relative to the companies being followed. Please accept my apology

    Greg

    Comment by GREG H — February 26, 2011 @ 4:31 pm

Sorry, the comment form is closed at this time.

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