Gold is under pressure today but has bounced back off its lows…as of 8:30 am Pacific, the yellow metal is down just $7 an ounce at $1,774…Silver is 36 cents lower at $34.21…Copper is off 2 pennies at $3.48 while the U.S. Dollar Index is flat at 78.08…crude oil, meanwhile, has moved past $100 a barrel…it’s currently up $2.42 to $101.79…the oil price, as we pointed out Monday, will be extremely important to keep an eye on over the coming days and weeks…while equities have been moving in tandem with oil since early October (especially the CDNX which has tracked crude almost precisely in terms of its percentage gain since the 1306 October low), elevated oil prices threaten an already fragile global economy…the head of the International Energy Agency (IEA) said today that the oil market is tightening and high prices are already hurting growth in developing economies and threaten any economic recovery in Europe…higher oil prices are also negative for Gold producers as oil makes up such a large component of their cost structures…
The situation in the euro zone continues to look bleak…the European Central Bank’s attempts to prop up the Spanish and Italian bond markets failed to fully contain investor concerns over the debt crisis…ECB intervention helped to steady some of Europe’s embattled peripheral debt markets, yet yields have fluctuated throughout the day…Italian10-year yields rose once more above the 7% mark, but were down 11 basis points to 6.94 per cent by late afternoon in London…in North America, markets are in a tug-of-war between encouraging signs in the U.S. economy and concerns over Europe…how this all plays out over the balance of the year will be interesting indeed…markets do have room to move higher but a January sell-off could be in the cards…
The CDNX is unchanged at 1647…Spanish Mountain Gold (SPA, TSX-V) provided an updated resource estimate for its Spanish Mountain Property yesterday…this is a low grade but high tonnage deposit in central British Columbia with potentially robust economics with Gold at $1,500 or higher…the stock has been a solid performer this year in a difficult market and patient investors have an excellent chance of being handsomely rewarded as John’s chart shows…
As of 8:45 am Pacific, SPA is off 3 pennies at 82 cents…Visible Gold Mines (VGD, TSX-V) enjoyed a solid day yesterday as it gained 3.5 cents on nearly 1 million shares (all exchanges) to close at 24 cents…it’s up another half penny this morning…technically, the stock faces strong resistance between the declining 50-day moving average (SMA) at 27.5 cents and the declining 200-day SMA at 32 cents…in addition, the 300-day SMA has just recently reversed to the downside…while VGD’s geological prospects are good – its Wasamac-area and Joutel properties offer strong upside potential – the recently announced proposed flow-through financing at 30 cents was a disappointment…it was a puzzling move and will likely act as a stock price barrier…in addition, a financing prior to the release of drill results concerns us…
Could John have a look at the 20 year silver chart. James Turk thinks this is the most bullish chart available today and is forming a massive cup and handle formation. When it breaches the strong resistance of the previous high at 50 cent it will then proceed to make a very big handle. This should happen in the next 12 months. Over to you John.
Comment by Patrick — November 16, 2011 @ 9:16 am
CEV is the real deal. And very soon, CJC. Locked and loaded on both. When CJC hits with news, it will smoke CEV run in regards to time frame. It took CEV more than a month to go from .35 to .90, CJC will do that in days. Get some of both and hold on.
Comment by dave — November 16, 2011 @ 10:28 am
GBB ANNOUNCES NEWS!
Gold Bullion Releases Significant Historic Hole With Granada Drilling Update (prnews)
VANCOUVER, Nov. 16, 2011 /PRNewswire/ – Gold Bullion Development Corp. (TSXV: GBB, OTC PINK: GBBFF) (“Gold Bullion” or the “Company”) is excited to report on the recently-completed Phase 3 Drill Program results from their property located along the Cadillac trend in North-Western Quebec, 5 km south of the city of Rouyn-Noranda. Just under 80 kilometres (78,414 metres) have been drilled since December 2009 confirming extensive mineralization potential on the Granada Property. Gold Bullion’s originally-defined LONG Bars zone of 600 metres long by 300 metres wide, striking east-west and dipping approximately 50° to the north, has been increased 6 fold to approximately 1500 metres long by 750 metres wide. With the documentation of an historic hole: 90-01, the mineralization in this area, north of the current exploration, extends to a depth of approximately 700 metres and remains open in all directions and at depth. Highlights include 1.12g/t Au over 304.36 metres including a 23.55 metre interval grading 5.46 g/t Au.
This hole 90-01 is an exceptional drill hole identified from a detailed review of historic data dating back to 1990. Kewagama Gold Mines drilled the subject hole to examine the down-strike and down-dip extensions on the # 2 vein mineralized zone and other veins in the hanging wall of Vein 2. The subject hole intersected sericite alteration zones with gold-bearing quartz veins. Frank J. Basa stated, “We are extremely pleased to have been able to identify such an important drill hole that confirms our belief that with additional drilling there is excellent potential to expand the mineralized zone to north of the known extent.”
Hole 90-01, a near vertical hole, collared at -89°, is located approximately 485 metres northwest of the northeast extension Discovery hole GR-10-17. Gold Bullion is sampling each hole in its entirety; however the historic core was sampled only in vein zones and alteration zones. The Company has since identified that significant low-grade mineralization occurs even between vein zones. The calculated grades shown below include intervals that were assigned a zero value, with no single interval longer than 25 metres, for purposes of calculations and do not represent true-width intersections.
Significant intervals include:
304.36m grading 1.12 g/t Au between 387.90 and 692.26m including
23.55m grading 5.46 g/t Au between 387.90 and 411.45m and
286.99m grading 0.76 g/t Au between 433.91 and 720.90m including
1.14m grading 66.86 g/t Au between 538.96 and 540.10m
With the next phase of drilling Gold Bullion intends to define the potential to the north, towards hole 90-01 and at depth as well as continuing to step out to the west and east along strike. Based on the significant number of intersections at depth, the prospect of developing underground workings below the open pit is conceivable. To that end, the Company has expanded its core logging and core cutting capacity and has built a substantial road network to support the upcoming drill programs.
The Company has also recently retained the services of SGS Canada Inc. as an independent consultant on the Granada Property replacing GENIVAR as geological consultants. The SGS Group is the global leader with a network of over 1,250 offices and laboratories around the world.
Comment by marc — November 16, 2011 @ 10:30 am
By the way, don’t let level 2 or the chart in CJC fool you. Anybody selling and not buying this right now is absolutely insane. She will be matching and passing CEV in a couple weeks. CEV could hit the $1.20 mark and then go into a correction phase. Sell into the volume next week and play the charts.
Comment by dave — November 16, 2011 @ 10:32 am
Nice news from GBB!
Comment by hugh — November 16, 2011 @ 10:53 am
This is much more like it from GBB. This will be plus 5ml ozs eventually although 3ml would be a great start. Another thing they should emphasize is that their large bulk sample averaged around 1.6 g/t due to the nugget effect. This higher grade never comes up when drilling for mineralization but should show up in the infill drilling. It’s been a tough year with GBB but I am convinced we will see new highs in 2012 and hopefully go past $1 Canadian.
Comment by Patrick — November 16, 2011 @ 10:58 am
Hi BMR, I’m looking forward to your analysis of the latest GBB NR!! 🙂
Comment by M. — November 16, 2011 @ 12:19 pm
Good job, GBB. We’ve always maintained the northern portion of the Eastern Extension, in particular, is looking really, really good, and this helps confirm that. There were inefficiencies on the ground with GENIVAR that appear to be getting corrected. GBB could be back on track. Drill, drill, drill…
Comment by Jon - BMR — November 16, 2011 @ 12:32 pm
Anyone here checking out sage .backed buy big investors good lacation pick of the month on two sites.Soon to be a producer. check out lets have your comments
Comment by gil — November 16, 2011 @ 1:56 pm
please note Iam talking about sage.ob
Comment by gil — November 16, 2011 @ 2:44 pm
sage price nov 1st .55 todays price .78
Comment by gil — November 16, 2011 @ 2:53 pm
What a tremendous NR today by GBB! Maybe a bit early, but this could make Osisko’s deposit look like a baby bother.
Comment by Dan — November 16, 2011 @ 5:19 pm
Patrick
Before I can comment on the article I must first read ALL of it so there is no misinterpretation. You understand. Please post the site.
Comment by John - BMR — November 16, 2011 @ 7:49 pm
BMR,
I reading some of the calculations posted on Stockhouse with regards to GBB ounces and I m having a hard time trying to believe those numbers? Is it possible that they have 7M , 19M, 40M or 90M ounces? Which is it and why? Could you give us your opinion or input regarding this?
thanks
Comment by alec — November 16, 2011 @ 10:12 pm
Hi John
I read about it in this article. I like your grasp of technical analysis and was wondering what you make of it. moneyweek.com/investments/precious-metals-and-gems/other/money-morning-investing-in-silver-14600?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning
Thanks
Patrick
Comment by Patrick — November 17, 2011 @ 3:02 am