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August 16, 2011

BMR Morning Market Musings…

Gold is stronger today on some weak euro zone economic data…as of 9:00 am Pacific, the yellow metal is up $10 an ounce at $1,776…Silver is off 3 cents at $39.89, Copper is down 4 pennies at $4.00, Crude Oil has slipped 43 cents to $87.45 but is off its lows while the U.S. Dollar Index is up slightly at 73.95…Fitch Ratings has affirmed the United States’ top-notch credit rating at Triple-A, giving the world’s largest economy a reprieve after it was downgraded by S&P more than a week ago…”The affirmation of the U.S. “AAA” sovereign rating reflects the fact that the key pillars of U.S. exceptional creditworthiness remain intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base,” Fitch said in its statement…”Monetary and exchange rate flexibility further enhances the capacity of the economy to absorb and adjust to ‘shocks'”…meanwhile, German economic growth slowed to a near standstill in the second quarter of this year, dealing another blow to the crisis-hit eurozone which has helped boost Gold prices this morning…the surprisingly-sharp deceleration in activity in Europe’s largest economy hit overall euro zone growth and intensified fears about the global slowdown…it also threatened to complicate the challenge facing the region’s policymakers as they seek to combat its escalating debt crisis…the CDNX is down 9 points at 1820…Soltoro Ltd. (SOL, TSX-V) continues to get solid results from its El Rayo primary silver deposit in Jalisco, Mexico…results for 8 holes were released this morning and include 62 metres grading 182 g/t Ag in hole #81, a step-out hole…hole #79 also confirms that the central high grade Silver ore shoot plunges to the northeast…SOL is currently up 8 cents at $1.30…Romios Gold (RG, TSX-V) provided an update this morning on the first phase of drilling this summer at its Trek Property in northwest British Columbia…12 holes have been completed so far (assays still pending) with encouraging indications as the program tests for extensions to the mineralization on the emerging North Zone Gold-copper porphyry mineralization…drilling is also testing a geophysical/geochemical anomaly at the Tangle Zone…Romios is now unchanged at 51 cents after touching 49 cents…RG is strongly supported technically by a rising 100-day moving average (SMA) at 47 cents…Visible Gold Mines (VGD, TSX-V) has outlined its drill plans for the Joutel Project (7,500-metre Phase 1 program) that the company says will test a mineralized structural pattern that appears to strike directly southeast of Agnico-Eagle’s (AEM, TSX) past producing Telbel, Eagle West and Eagle Gold mines…news came out within just the last 30 minutes or so…there are few geologists in our view who could be better at understanding structure than Robert Sansfacon who is heading up the Joutel Project for VGD…if one looks at the project map, it’s hard to imagine there aren’t more deposits in that area…Joutel is a top-notch project for VGD and adds yet another layer of value to this play…the company also announced this morning that 9 holes have now been completed at Wasa Creek…assays are pending for 8 of those holes after LBWC-11-03 came out last week, confirming the potential for a discovery on this previously unexplored land package…LBWC-11-03 was collared almost exactly in between the Francoeur Mine a few kilometres to the northwest and the Wasamac deposit a few kilometres to the northeast…VGD is exploring in a rich geological environment…the stock is currently off half a penny at 33.5 cents but has strong technical support…we see big things in the works for this aggressive company which also has a 43-101 inferred resource at its Stadacona-East Property and $6 million in working capital…Richmont Mines (RIC, TSX) continues to climb…RIC is up another 18 cents to $9.56 and is threatening to hit a new all-time high (it hit $9.68 this morning, just 7 cents shy of its April high)…John updates the very impressive RIC chart…

Note: Both John and Jon continue to hold positions (Terry does not hold a position) in Richmont Mines

Silver Quest Resources (SQI, TSX-V) is up a nickel this morning and back above $1 again after falling as low as 83 cents August 8…the stock is strongly supported by its rising 100-day moving average (SMA) at 92 cents…SQI’s interest in the northern portion of New Gold Inc.’s (NGD, TSX-V) Blackwater deposit and its presence in the Yukon’s White Gold District gives this play strong potential as the summer progresses…during the recent market sell-off we made mention of Prodigy Gold (PDG, TSX-V), formerly Kodiak Exploration, which is developing a very solid advanced project in Ontario – the Magino Mine…PDG dropped as low as 39.5 cents August 8 and is now trading at 50 cents…we see strong potential for PDG and below is John’s chart update for the stock…

Note: John, Jon and Terry do not hold positions in Prodigy Gold

9 Comments

  1. Wasn’t todays newsrelease in vgd any good? To me this stock seems rock solid. The company has some interesting work going on. It’s a big keeper at least for me..

    Comment by Kalkan — August 16, 2011 @ 9:30 am

  2. Hello Kalkan, yes it was another good news release from VGD. They are ready to start work at Joutel as soon as they have the permit. It sounds an exciting prospect; the target is trending between five former producing mines. I’m not sure but I think they now have drilled an additional hole at Wasa Creek because Martin mentions nine holes. The assays on some of those are likely going to be available very soon. There’s little volume so far today and when I see Anon and Jitney I usually discount it. Each news release brings a little more attention to VGD and all we need now is another good assay from Wasa Creek and I’m sure VGD will be in focus. The stock price is holding up well, just drifting back and forth a little on low volume. I’m really confident about VGD and appreciate that BMR brought it to our attention.

    Comment by Andrew — August 16, 2011 @ 9:40 am

  3. Andrew, I’m convinced this is going to be a huge winner which is why I’ve actually just added even more to my personal holdings. Back in January when I was visiting Rouyn, I sat down with Sansfacon over lunch for 2 hours. I was incredibly impressed. He is certainly highly respected in the Quebec geological field and has an incredible understanding of structure and how to find a deposit. It was his re-interpretation of Malartic that allowed Osisko to make the discovery it did. Now he’s made a re-interpretation of Joutel. He will find something there, mark my words. Rarely have I ever invested in a company with such confidence in a geologist. As far as Wasa Creek goes, you’re right, Andrew – 2 more holes have been completed. I really like how VGD has gone aggressively into the Wasamac area. Looking forward to visiting the area again soon – the street isn’t fully aware yet of the magnitude of the Wasamac situation. Personally, I believe Wasamac is going to be a multi-million ounce deposit and the chance of finding another deposit in the immediate area has to be considered very good. VGD is going to shine.

    Comment by Jon - BMR — August 16, 2011 @ 10:34 am

  4. Thanks for your input and opinion guys. No doubt that VGD is going to shine, fasten your seatbelt!…

    Comment by Kalkan — August 16, 2011 @ 11:58 am

  5. GBB had another quiet day and I sold some of my portfolio at 39 cents. My sixth sense tells me that it will drift slowly down to 34 cents and I will buy back to regain my holding. BER is also quiet and it touched 13 cents today but closed at 14 cents. If the market is not that slow, there will be a lot more volume. I am very much in favor in this stock in a short run as the last report was not a bad one. My sixth sense tells me that it is a good price to buy at 14 cents. NAR, CQX … nothing to talk about… just wait. SD is quiet for some time waiting for field report and drilling permit… My sixth sense tells me again…. more patience …. more rewarding in the near future. My portfolio remains unchanged … GBB, SD, BER, CQX and NAR…. . VGD and SFF… should be interesting on the good side in August / September.

    Comment by Theodore — August 16, 2011 @ 3:54 pm

  6. VGD

    Jon — Regular ebb & flow

    Bert — I agree ebb & flow, mountains & valleys, whatever, but i actually expected
    VGD to flow today, in particular, after the news on Joutel, the second NR in 2 days.
    Although we didn’t enjoy a good day on the market, gold was shining once again & some
    gold stocks i own, actually moved up. The market don’t seem ready to embrace VGD just
    yet, so we cross our fingers & wait for results. The chart shows indecision among VGD shareholders, thus with patience, i MAY get my fill at 0.295.. R !

    p.s…. I am a VGD shareholder

    Comment by Bert — August 16, 2011 @ 4:16 pm

  7. Bert, yesterday was a slow day overall for the market and volumes were low across the board, but one thing that’s interesting is that the number of trades on VGD have increased substantially over the last week or so…….higher than anything the stock has seen in recent months…….this shows that more eyes are coming onto this play and the market is beginning to take more serious interest…..that is a harbinger of things to come, I believe……the Joutel project is first-rate and of course we all should understand the potential of wasamac and the surrounding area……..i’ve increased my personal position by almost 50% since last Thursday’s news…..the chart looks great and so are the geological dynamics with this one……

    Comment by Jon - BMR — August 17, 2011 @ 4:39 am

  8. GDX Alert!……30 Meters average grade over 5 G/T just released.

    Comment by Dan — August 17, 2011 @ 5:18 am

  9. Hi,
    I mentioned GDW earlier comments, they just released initial assay result boost the stock 25% today on 4.7m volume.
    Any insight on the results and further potential here?
    Thanks a

    Comment by A — August 18, 2011 @ 9:21 am

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