From The Vancouver Resource Show
Gold continues to push higher as a new week begins…as of 5:50 am Pacific, the yellow metal is up $3 an ounce at $1,670 after climbing as high as $1,678…Silver, which staged an important breakout last week, is 13 cents higher at $32.33…Copper has gained another 6 cents to $3.79…Crude Oil is up 93 cents to $99.26 while the U.S. Dollar Index is off half nearly two-thirds of a point to 79.75…
Dow futures as of 5:50 am Pacific are pointing toward a flat open…
The Fed, a steady wave of corporate earnings reports and important economic data will drive the markets this week…there are a dozen Dow 30 companies and about a quarter of the S&P 500 companies reporting in the week ahead, in industries ranging from pharmaceuticals to airlines to energy…fourth-quarter U.S. GDP will be reported Friday and the number is expected to come in around 3% which would be the fastest pace since the second quarter of 2010…this week’s two-day Fed meeting ends Wednesday with a statement, a new forecast and a press briefing by Ben Bernanke…
Europe will also remain of interest, as investors wait for a deal between Greece’s government and private sector creditors…European finance ministers meet today and tomorrow…
Vancouver Resource Show
Today is the second and final day of the Cambridge Show at the Vancouver Convention Centre…yesterday was very busy and one of the highlights today will be a debate on China beginning at 2 o’clock between Frank Holmes and Gordan Chang…we were busy collecting information yesterday and checking on some specific companies…we’ll be doing more of that today…we have plenty of information to share in the coming days…BMR will be conducting an interview today with David Johnston, the new President of Rainbow Resources (RBW, TSX-V), a company that was essentially just a shell until its game-changing acquisition of Braveheart Resources just a few months ago…with respected individuals such as Johnston, Jim Decker (Grande Cache Coal fame), geologist Bruce Durham (several significant discoveries) and well-known Calgary entrepreneur Bob Libin, RBW has a powerful team and Johnston says they are moving forward aggressively on several fronts…we’ll put him on the “hot seat” later today…
One of the most interesting “workshops” yesterday at the Resource Conference was a 30-minute presentation by Sprott Private Wealth CEO David Franklin…it was standing-room only as Franklin put forward a powerful case regarding Gold and Silver…”This is a Gold-plated, pristine entry point for Gold,” Franklin stated, “and Silver is the investment of the decade”…Sprott’s Silver Trust put in a $350 million physical order for Silver last Wednesday which likely contributed to the metal’s breakout…Franklin stated that investment demand alone consumed all of the Silver production in North America last year…he said he doesn’t expect the Fed to unleash “QE3” just yet (inflation expectations have to come down a bit more) but there’s no end in sight to negative real interest rates which is a very bullish underpinning for Gold…the ECB’s unlimited 3-year loans to banks will help ease the euro zone problem and is also bullish for the yellow metal…selling of Gold by these banks during the height of the euro zone’s liquidity crunch last fall was the driving force in Gold’s drop from just above $1,900 to nearly $1,500 an ounce, according to Franklin…
Adventure Gold
Folks, Adventure Gold (AGE, TSX-V) continues to be one of our favorite companies on the Venture and President and CEO Marco Gagnon was very upbeat on his company’s prospects for this year during our brief chat with him yesterday…we’ll have more on AGE later this week but we believe 2012 could be a breakout year for this company, thanks in large part to its Pascalis-Colombiere Gold Property near Val-d’Or…AGE completed a $1.75 million hard cash financing above the market price at the end of December, a very telling achievement…money talks and that speaks volumes about how some investors view AGE and its potential…
Below is John’s updated chart on AGE which appears to be gearing up for a breakout…
Note: John, Jon and Terry do not hold positions in AGE.
Additional Charts – GBB, AGQ, SGC
John has three additional charts to share this morning – Gold Bullion Development (GBB, TSX-V), Arian Silver Corp. (AGQ, TSX-V) and Sunridge Gold Corp. (SGC, TSX-V, a special request from one of our readers)…
We’re convinced GBB put in an important low in December (13 cents) and is on the road to recovery…it hit resistance as expected at 21 cents earlier this month and has backed off to solid support at 16 cents…patience remains the key with GBB but it could easily rebound in a major way in 2012, likely beginning this quarter…
Note: Terry holds a position in GBB (Jon and John do not).
Arian Silver (AGQ, TSX-V) made a strong move at the end of last week and is definitely another turnaround candidate for 2012…John first posted a chart on AGQ Friday morning, and below is an update after Friday’s second straight 3-cent daily gain…
Note: John holds a position in AGQ (Jon and Terry do not).
Sunridge Gold Corp. (SGC, TSX-V) is very active with precious and base metal projects in East Africa…
Note: John, Jon and Terry do not hold positions in SGC.
Adventure Gold and Mazorro Resources Begin Phase 3 Drill Program on Lapaska Property, Val d’Or East Area, Quebec – Not their flagship property but a positive news release.
Comment by Andrew — January 23, 2012 @ 6:11 am
Thanks for the charts, John and for your comments, Jon – Is PHS.U (Sprott’s Silver ETF)one to consider, if so it brings me back to my previous question (yesterday) on criteria for picking ETF’s that seem similar (e.g HGU and HBU)? Would a chart be helpful on PHS.U?
Comment by Andrew — January 23, 2012 @ 6:32 am
Hi Andrew, given Franklin’s presentation yesterday, and my own bullish reading on Silver, I would certainly personally (for myself) consider the PHS.U as a sensible long-term play……I don’t think there can be any doubt we will see new all-time highs in Silver….there will be volatility along the way but I believe the case for Silver is a no-brainer…..and of course Gold is looking great too………perhaps John can do a chart on PHS.U…….my quick read on that chart is that it’s at a favorable point…..the HGU of course is a play on the TSX Gold Index…..personally, I’d prefer to focus on individual producers (like Richmont for example) whose cost structures are under control and who have very attractive production profiles……plus of course the best junior exploration opportunities……
Comment by Jon - BMR — January 23, 2012 @ 6:39 am
Thank you, Jon – much appreciate your reply.
Comment by Andrew — January 23, 2012 @ 6:47 am
Hmmm, I notice Jon,John & Terry don’t own too many of these great stocks (I appreciate your honesty anyways!).
Comment by jake — January 23, 2012 @ 7:00 am
I’ve been checking on RBW over the weekend & it’s my feeling,
for what’s it’s worth, that unless we get something positive
to continue the uptrend, we may move back down somewhat. Keep
an eye on it. R !
Comment by bert — January 23, 2012 @ 7:17 am
i notice dave the cjc pumper has left the building
Comment by Seamus — January 23, 2012 @ 7:21 am
Hi Jake
I usually hold 3 or 4 stocks at any one time and never more than 5. I always keep some cash so I can trade at any time. Keep it simple.
have a good day
Comment by John - BMR — January 23, 2012 @ 8:30 am
Hello Bert – CEV doesn’t look too hot either since the last drill results. My guess is that RBW is consolidating, hopefully in the high teens and volume is erratic. CEV is consolidating in the high .80s low .90s on declining volume – both are waiting on positive developments before the next leg up?
Comment by Andrew — January 23, 2012 @ 9:08 am
Silvercrest Mines Inc. : SilverCrest Updates Corporate Resources Silver Equivalent Inferred Resources Increase 424%
SilverCrest Updates Corporate Resources Silver Equivalent Inferred Resources Increase 424% TSX-V: SVL OTCQX: STVZF For Immediate Release VANCOUVER, B.C. January 23, 2012 – SilverCrest Mines Inc. (the “Company” or “SilverCrest”) is pleased to provide an updated summary of its corporate mineral resources. The Company now has reported NI 43-101 compliant resources at the Santa Elena Mine, Cruz de Mayo property and La Joya property in Mexico (see table below). The addition of the initial La Joya Inferred Resources of 101.9 million ounces silver equivalent resulted in corporate Inferred Resources increasing by 424% from 24.0 million to 126.0 million silver equivalent ounces. The Company’s combined Probable and Indicated Resources (based on US$18 per ounce silver, US$1000 per ounce gold, and Ag:Au at 55:1) declined by 14.7% from 36.2 million to 30.9 million silver equivalent ounces as a result of production at the Santa Elena Mine in 2010 and 2011. N. Eric Fier, CPG, P.Eng. and COO for SilverCrest stated; “This significant increase in the Company’s resource base is another important milestone in its goal of becoming a major silver and gold asset – based company. SilverCrest’s immediate initiatives are to continue to diligently operate its flagship Santa Elena silver and gold mine, aggressively explore the discovery at La Joya and to further acquire and develop substantial silver-gold resources.” SilverCrest Resource Summary – January 2012
Comment by Tim — January 23, 2012 @ 9:28 am
Andrew – CEV doesn’t look too hot either since the last drill results.
Bert
I could have also mentioned CEV, but the difference was, RBW was
showing as being overbought, where-as CEV wasn’t. I hope both move
up for my sake & the sake of those owning RBW, but i do feel RBW
may move back, once the conference in Vancouver is over. CEV is
holding at support, RBW could move back to support, who knows’ ?
Whatever, if i am going to converse at all, i have to talk about
something. R !
Comment by bert — January 23, 2012 @ 9:44 am
Bert, I agree, RBW shows as overbought on the weekly and the daily and CEV, technically, looks okay – I think? 🙂 Support on RBW appears to be .17?
Comment by Andrew — January 23, 2012 @ 10:02 am
ISD has confirmed Friday’s hammer – I should have taken more notice! 🙂
Comment by Andrew — January 23, 2012 @ 12:45 pm
Sunridge Gold (SGC)
Sunridge closed at it’s high for the day, at 0.49, there’s resistance at 0.50, once
through that, we could be on our way. Sunridge has 4 different deposits, they have
drilled over 200,000 metres since 2003 and has defined four separate copper, zinc,
gold and silver mineral resources. A feasibility study for the high grade Debarwa
copper, gold and zinc deposit is scheduled for completion in the first quarter of
2012 and a pre-feasibility study on the Asmara North Deposits, Emba Derho, Adi Nefas
and Gupo Gold is scheduled for completion by the end of March 2012.
The four deposits have total indicated 43-101-resources containing:
1.28 billion pounds of copper,
2.5 billion pounds of zinc,
1.05 million ounces of gold, and
31.2 million ounces of silver
We can expect news pertaining to their top project, the first week of February. Stay tuned !
As for Eritrea, the country has been cleared by the U.N., of all complaints against it.
I could go on & on, but as i mentioned before, the onus must be on you, the investor,
to do your DD. R !
Comment by Bert — January 23, 2012 @ 1:44 pm
Technical look good on SGC Bert!
Comment by Martin — January 23, 2012 @ 2:01 pm
Bert – Thanks for sharing your thoughts on Sunridge. A good increase in volume and buying pressure today and the weekly chart shows it has room to move up before being over bought. I’ll be watching closely!
Comment by Andrew — January 23, 2012 @ 3:21 pm
Jon – Any “good vibes” from Chad McMillan, (CJC, TSX-V) at Vancouver Resource Show? Thanks
Comment by Andrew — January 23, 2012 @ 5:06 pm