The greenback is under pressure today with strength in the euro, and that has given Gold a slight lift…as of 6:45 am Pacific, the yellow metal is $4 higher at $1,506…Silver has climbed 28 cents to $34.22, Crude Oil is up 35 cents to $93.24 while the U.S. Dollar Index is off one-fifth of a point to 74.86…Copper, which is up 8 cents to $4.18 a pound, continues to look strong which is a positive sign…the Greek Parliament has voted to back a package of deep spending cuts that should help clear a path for the release of funds and potentially a second bailout for the country by the European Union and International Monetary Fund…a second vote on the implementation of the law is due tomorrow…the head of the country’s central bank, George Provopoulos, told the Financial Times that Greece would be committing “suicide” if its Parliament failed to back austerity measures aimed at averting a catastrophic default…it has been a rough month for the CDNX, the worst since November 2008 with a drop of 228 points or 11%…the Index has declined on 15 of 20 trading sessions so far this month with just today and tomorrow to try and regain some lost ground as the month and the quarter come to an end…the correction since March 7 has wiped 24.5% off the value of the CDNX…however, that’s still a very normal major correction by historical CDNX standards and could even extend a little more before a bottom is finally put in…technically, it’s also a very healthy pullback after an advance of 1122 points or 83% over an eight-month period from early July last year to early March…John updates the CDNX chart below…
As of 6:45 am Pacific, the CDNX is up 7 points at 1873…a weak CDNX this month has not prevented Adventure Gold (AGE, TSX-V) from continuing to climb…AGE is up 10% for June so far (through yesterday) and has climbed 18% this year vs. an 18% drop for the CDNX…that should tell investors something…AGE has gained 76% since we added it to the BMR model portfolio about nine months ago and we’re more optimistic than ever about this company’s future given how they have several projects that are proceeding extremely well…we expect to post Part 1 of our interview with President and CEO Marco Gagnon tomorrow which will focus on AGE‘s Pascalis-Colombiere Gold Property adjacent to Richmont’s (RIC, TSX) Beaufor Mine…Pascalis-Colombiere includes the past producing L.C. Beliveau Mine that still has depth potential, but what’s really becoming interesting is the near-surface mineralization Adventure Gold is discovering to the west of L.C. Beliveau…that’s an area that Phase 2 drilling at the moment is concentrating on…we believe Richmont is paying close attention to developments at Pascalis-Colombiere…drill programs are also in progress at three other AGE properties while the company also has significant plans for its Granada Extension properties…AGE remains in a strong cash position…the stock blasted through its 50-day moving average (SMA) yesterday and is looking very bullish from a technical perspective as John outlines below..
As of 6:45 am Pacific, AGE is off 4 pennies at 56 cents…Gold Bullion Development (GBB, TSX-V) has been holding support near its rising 500-day moving average (SMA) and is poised for a much better July in our view…it’s currently unchanged at 40 cents…Visible Gold Mines (VGD, TSX-V) closed at 19.5 cents yesterday, giving it a market cap of just $9.3 million which is just slightly ($2.8 million) above its cash value…given the scope and potential of the company’s Joutel Project (Joutel is a significant former Gold-Silver producer and VGD‘s Joutel land package is more than 10 times the size of Granada), VGD has to be considered a steal in the 20-cent area…the company is in the final preparation stages for a major drill program at Joutel…Silver Quest Resources (SQI, TSX-V) has increased its financing to $12 million from $10 million…the stock fell eight cents yesterday on the financing news but any weakness in SQI should be viewed as a gift at this point considering the company’s interest in the northern portion of the Blackwater deposit and its 17 properties (85,000 hectares) in the White Gold district of the Yukon…SQI‘s 2011 exploration program in the Yukon will include at least 15,000 metres of drilling and total expenditures of at least $5 million…the Yukon will be hot this summer and so too will SQI…a company we haven’t mentioned before that we like in the White Gold district is Ethos Capital (ECC, TSX-V) – we suggest investors perform their DD on that one…ECC is unchanged at $1.13 in early trading…
bert, loved your post yesterday. SQI – would not touch it at this point. More than doubled since March. This is the time to buy low. July should start recovery of the CDNX, as Bert mentioned. The best stock to own in the yukon has not been mentioned. Hmmmm
Comment by david — June 29, 2011 @ 6:49 am
ABN might be the best stock in the Yukon!
Comment by STEVEN — June 29, 2011 @ 6:58 am
Davey .. the best stock…???? pray tell.. give us the dish!
Comment by Jeremy — June 29, 2011 @ 7:19 am
David
Thanks ! I will admit that i am no expert, but i like to gab, with a computer that is. Before the market
opened today, i posted that there was a good chance that we would have an up day today, the positive
indicators were out there. It looks as if i may be correct, but tomorrow is another day & an unknown, which
leaves me thinking that buying & holding may be a thing of the past. Take SQI for example, i bought,
sold & bought that one a few times, until i reached my present average of 0.82. When matters regarding
this company became more certain, therefore the exception to the rule,,, i am holding, because my faith
in SQI has been confirmed. As for the Yukon, i am also playing TAK, which i feel confident will be
moving up with time. They are located in a prime area & have very large land holdings. They have 70
million shares o/s, which i wish was cut in half, but i feel at 0.30, it still has lots of room to move.
They have plenty of cash, which is king in this environment. I am not suggesting anyone buy this stock,
but am throwing it out there as another possible mover.
R !
Bert
Comment by Bert — June 29, 2011 @ 8:10 am
Hey guys, check out the VERY INTERESTING developments over at NWI.T Nuinsco. they just received court approval, along with their 50/50 partner Ocean Partners to take control of Campbell Resources FANTASTIC properties, along with the mill etc. I suggesst some DD here as this is going to add SIGNIFICANTLY to the share price of NWI. For disclosure, i’ve been watching the events unfold for a while now, and started picking up share last week at .11. As a side note, to the non-believers, VGN is DEFINITELY up to something. Tony did NOT come out and tell me, for obvious reasons, BUT he did mention that a Spark will soon be ignited under the share price. Peace, Love and god Bless.
Comment by john — June 29, 2011 @ 9:06 am
A question for BMR
Sometime ago, i brought forward HRC, which has close to a million ozs gold in the indicated/inferred
category in Tanzania. I notice one of your hot picks in that area is CUI, which is also located in
Tanzania. Every once in awhile, you will bring forward CAN, which i feel is meant to highlight CUI.
Because i am a shareholder of HRC & because the more i see HRC in print, the better i, your follower,
feel, i have to ask why not BMR ? Do you see a problem with HRC & if so, wouldn’t it be fair to let
your followers know one way or another, in particular, since i brought it forward on this board &
there may be others buyers. This is part of my due diligence, please respond….Thanks in advance.
R !
Bert
Comment by Bert — June 29, 2011 @ 10:09 am
John – the VGN website seems very outdated – no postings or news from 2011?
Comment by barry — June 30, 2011 @ 7:22 am
The lull before the storm, perhaps? My gut tells me Roodenburg is working on something.
Comment by Jon - BMR — June 30, 2011 @ 7:54 am
Hi Bert, HRC does have a decent package in Tanzania and it’s a company I’ve looked into……quite honestly, one of my major reasons for avoiding this was Gren Thomas, Chairman of HRC…….Gren didn’t deliver on North Arrow, so that was a negative for me with regard to HRC….liquidity in the stock has not been the greatest either, so there are my two reasons for not writing about it…….having said that, it does have potential and it’s worth keeping an eye on……thanks for bringing it up here…
Comment by Jon - BMR — June 30, 2011 @ 8:14 am