Gold has traded between $1,732 and $1,749 so far today…as of 8:45 am Pacific, the yellow metal is down $9 an ounce at $1,737…Silver is flat at $34.97…Copper has lost a nickel to $3.67…Crude Oil is 52 cents lower at $93.44 while the U.S. Dollar Index is up slightly at 75.03…
Markets are up slightly this morning after posting big gains yesterday with the Dow on track for its best monthly performance in nearly four decades…the CDNX is in a major zone of resistance between 1600 and 1700 with very overbought Stochastics(14) at the moment, so this is not the time to be chasing anything including volume leader CB Gold Inc. (CBJ, TSX-V)…however, there are select situations to keep an eye on, particularly those companies with significant resources in the ground that could be potential takeover targets…one such example is Gold Canyon Resources (GCU, TSX-V), a company we have mentioned quite frequently since the early spring…GCU is expected to release an updated 43-101 resource for its Springpole Project in Ontario by year-end…Springpole is shaping up to be a 5 million+ ounce deposit and the latest drill results included 106 metres grading 3.36 g/t Au in hole SP11-077 (including 28 metres of 10.10 g/t Au)…below is John’s updated chart on GCU which is trading at $2.95 at the moment…GCU is approaching resistance as John’s chart shows but the likelihood of a breakout at some point over the short to medium term appears quite likely…GCU should be watched closely in the days ahead as any weakness in an overall market pullback would provide a better entry (or re-entry) point for investors…juniors like GCU that are proving up significant resources are the safest plays in the current market environment…we don’t see a return of a rip-roaring bull phase for the CDNX anytime soon…
As of 8:50 am Pacific, the CDNX is up 2 points at 1617…U.S. consumer sentiment improved in October for the second month in a row as consumers felt more upbeat about the economy’s prospects, a survey released on Friday showed…the Thomson Reuters/University of Michigan’s final reading on consumer sentiment overcame the weakness reported in the preliminary survey at the beginning of the month, although consumers’ personal finance expectations remained gloomy…the sentiment index picked up to 60.9 from 59.4 the month before, topping expectations for 58.0 among economists polled by Reuters…the preliminary October survey had seen a decline to 57.5…the survey’s gauge of consumer expectations also improved from the more than 30-year lows registered in the preliminary reading…the index rose to 51.8 from 49.4 in September…
John is working on charts for Gold and the CDNX which we’ll be posting over the weekend…Gold is finding resistance around $1,750 as expected, so some profit taking is likely…
A lotta GBB getting dumped today – chart looks real ugly!!
Comment by Hugh — October 28, 2011 @ 8:14 am
Ill still like GBB though – I’ll sit it out through the dark days! This bull market is just picking up steam, its hard not to see how GBB is not going to come out well.
Comment by Hugh — October 28, 2011 @ 11:03 am
It’s going to be more ugly next week. GBB will be trading around 15 cents. Wasn’T hard to predict.
Comment by Andre — October 28, 2011 @ 11:24 am
Oh… Van Eck funds with 12 millions shares of GBB ..they could have rules on miminum prices on shares that can be kept in there portfolio. If they start selling ….watch out.
Comment by Andre — October 28, 2011 @ 11:29 am
Thanks Andre, always great to hear from you. DOUCHE.
Comment by mike — October 28, 2011 @ 12:19 pm
In the beginning I too thought Andre was a Douche but now not so sure, the man makes some good points. Dan V
Comment by Dan — October 28, 2011 @ 1:48 pm
I agree with BMR, “however, there are select situations to keep an eye on, particularly those companies with significant resources in the ground that could be potential takeover targets.
In the event of another financial crisis, I think a lot of folks will flee to gold this time around. I’d add Galway, Newstrike. and Probe to the list with GCU.
Comment by Carl — October 28, 2011 @ 2:49 pm
Andy does make some good points, but he gets too much joy being the bearer of bad news, he’s been over at Stockhouse being a total dick for months. Apparently is not invested in GBB but posts there constantly, makes up stories about being a former canacord broker, but has been caught flat out lying many times. Have any of the other posters here done anything like this? What would motivate someone to act this way? What would you call somone who does this? How about DOUCHE?
Comment by mike — October 28, 2011 @ 6:17 pm
@Mike – Andy is a blatant basher, a disinformation spreader. Lots of good venture stocks have trended down since QE2 ran out, the story behind GBB is still intact. Watching the share price gyrate in the short term is painful for sure, but GBB are in the process of proving up a great resource in what is a very difficult market. Andy can jump up and down and seek attention all he likes, most people have him on ignore.
Comment by Hugh — October 29, 2011 @ 2:03 am
Apparently npt invested in GBB…. Where do you get these infos. ? in 2010 I had over 250 000 shares in three accounts and made some good money. In 2011 because of bad results …GBB was only a good trading stock. Since july… Not good for anything. I know your suffering Mike with your investments… Next time listen to the pros… Not a 23 yeasr old student in Taylor1988.
Comment by Andre — October 29, 2011 @ 6:12 am
Oh puurleeez!!! Give it up man! Let it go, you see you will feel much better!
Comment by Hugh — October 29, 2011 @ 8:53 am
Andre has a fascination (of GBB) like 5 year old…
Comment by Bruce — October 29, 2011 @ 9:55 am
personally I don’t think that GBB is that great of a project. Grades are too low to get the market excited. Also, they are taking forever to release drill results as well. It is simply an over hyped stock that now has alot of bagholders attached to it. So many better projects out there as oppose to GBB’s slow moving train
Comment by Seamus — October 29, 2011 @ 1:23 pm
Hey guys,take it back to stockhouse……please.
mar
Comment by Mar — October 29, 2011 @ 1:28 pm
“personally I don’t think that GBB is that great of a project. Grades are too low to get the market excited. Also, they are taking forever to release drill results as well. It is simply an over hyped stock that now has alot of bagholders attached to it. So many better projects out there as oppose to GBB’s slow moving train”.
Overhyped on what basis at this point? The market capitalization for GBB is $35 M or $31 M after cash. That means for 2.5 million ounces of gold GBB is getting $12.40 / oz. The exact same ounces that TRR is worth $100 / oz for based on 6 million ounces (factoring in their new Resource due Q1) and GCU is getting $85 / oz pre 43-101 based on 4 million ounces.
I won’t attempt to say GBB is the same grade or same deposit as TRR or GCU by any means as their deposits average 1.0 g/t au + based on drill results and GBB has so far shown the market 0.5 – 0.7 g/t au average. Regardless of this, is a 80% discount to the ounces fair due to them being low grade? It’s still gold at the end of the day and the important thing is getting it out of the ground at reasonable cash costs.
GBB’s bulk sample showed grades of 1.5 g/t au so if the upcoming bulk sample can reinforce this as well as add cash to the treasury I can’t think of a much cheaper junior out there.
Everything relies on the 43-101 though and execution. If it’s not at least 2 Moz then clearly GBB has been over-hyped in the past but I’m willing to bet they show the market at least 2 Moz if not more.
What other projects do you recommend Seamus?
Comment by Taylor — October 30, 2011 @ 2:03 am
I agree with taylor. The biggest misrepresentation guys like andre can use against GBB is the massive grade loss due to the proven nugget effect. This reduces the drilling grade by anywhere from 35 to 100%. Looking at the bulk sample as an example its clear that an average of 1.62g/t over 40 000 tonnes is about 100% higher grade than the drilling average of .8g/t. To me this fact cannot be emphasized enough but since it cant be quantified without RC drilling or more bulk sampling it gets lost to the wayside. Osisko does not have the nugget effect on there property and are economical in a big way at .8g/t. With only 10% of our land package explored and mineralization in all directions how is this not a target for a buy out. Big gold companies can use this to there advantage and manipulate this stock quite easily. Isnt it interesting Andre that osisko bought into THG?
Comment by jeff — October 30, 2011 @ 6:03 am
Thanks Taylor and Jeff for reminding investors what GBB’s great potential is. I am only hoping that when the 43-101 is released that people hold on to their shares and not sell out to the first company that will put out a bid to buy us out…..there are more than a couple of big companies that are lying in wait for the 43-101 before they try to take over……so there should be competition for sure. But then if majority don’t sell (if Frank can prove that he can take this into production with the help of some white knights)….I think I will hold on to my shares. As for the current sp…….no problem……just BUYING MORE.
Comment by Maria — October 30, 2011 @ 12:08 pm