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After an impressive move yesterday that has opened the door to a near-term challenge of the $1,800 resistance area, Gold is up another $7 an ounce at $1,783 as of 6:00 am Pacific…Silver is 63 cents higher at $34.89…Copper is off a penny at $3.81…Crude Oil is up 43 cents at $106.71 while the U.S. Dollar Index has fallen one-quarter of a point to 78.95…

Stock index futures as of 6:00 am Pacific are pointing toward a positive open on Wall Street this morning…China’s Shanghai Composite Index is now above the 2400 level for the first time since last fall…it gained 6 points overnight to close at 2410…as we illustrated last month, there has been quite a close correlation in recent years between the speculative Chinese market and the Venture Exchange…we noticed a potential change in trend with the Shanghai Composite last month and that’s indeed what has occurred as the technicals have turned bullish…all the stars are lining up nicely for the CDNX…

China’s central bank has come out with a landmark report that outlines the path to a critical reform for the economy including an acceleration in the loosening of capital controls…foreigners would be given far greater access to the Chinese stock and bond markets within a decade under a three-phase plan to liberalise investment flows into and out of the country…the central bank said the plan would also allow Chinese companies to take advantage of a “strategic opportunity” to buy cheap foreign assets and help transform the renminbi into an important international currency…

Venture Closes In On 1700

Volumes are picking up and the Venture Exchange will be gunning for its sixth consecutive daily advance today…for the last two sessions the Index has closed above its November high of 1675…after falling to an intra-day low of 1671 yesterday, the CDNX reversed and closed up 6 points at 1685 as Gold moved higher…Nevada is certainly heating up…Gold Standard Ventures (GV, TSX-V) jumped 66 cents yesterday and was the sixth most active CDNX stock, trading just under 6 million shares, after releasing drill results from its Railroad Project on the Carlin Trend…RR-11-16 intersected what appears to be a flat-lying mineralized zone from 169.2 to 225.6 metres (56.4 metres grading 4.26 g/t Au)…drilling of that hole and two other holes to the east continues…this story appears to have a lot of legs to it, so GV should remain very active…another situation we like at the moment in Nevada is Corvus Gold (KOR, TSX) which closed yesterday at 80 cents…

Cascadero Copper (CCD, TSX-V)

One of the keys, of course, to making big money in the speculative junior resource market is finding a company like Gold Standard before it reports a significant discovery…that search is never easy but we believe we’ve uncovered another potential gem in Cascadero Copper (CCD, TSX-V) which is very active with large-scale projects in Argentina, British Columbia and Ontario…the stock closed yesterday at 18 cents for a market cap of $22 million…there’s a lot going on with CCD, as you’ll notice when you visit the company’s web site as part of your due diligence, but this morning we want to briefly touch on what we believe investors have overlooked with CCD which is not one but three very promising porphyry systems within a short distance of each other in northwest Argentina, home to some of the largest porphyry deposits in the world…first, let’s take a quick look at the Cascadero chart which shows this stock is starting to stir after trading in a horizontal channel for the last two-and-a-half years…given Cascadero’s fundamentals, and our bullish outlook for the overall market, the likelihood of CCD busting through this horizontal channel over the short-term appears very realistic…where it could go from there is anyone’s guess, but Gold Standard and Cadillac Mining (CQX, TSX-V) have shown this week what can happen in this bullish new environment when a company reports a very good drill result…

Note: Jon holds a position in CCD (John and Terry do not).

Earlier this month, Cascadero completed a $1.5 million over-subscribed private placement…in early January, the company bolstered its already strong board of directors by adding Brian Causey of Hunter Dickinson…

So what is the potential short-term “trigger event” for Cascadero?…the company’s major focus at the moment is on its huge land package in Argentina…Cascadero is in “elephant” country and has the potential to be the next Lumina Copper (LCC, TSX-V)…CCD’s property portfolio there consists of more than a dozen projects covering 226,000 hectares or nearly 900 square miles…what really has us excited is what the company is doing in the rich Pancho Arias mineral district…using a hockey analogy, CCD could be on the verge of a “hat trick” with its Pancho Arias, Las Burras and Incahuasi properties (along a 19 km stretch) as each has large tonnage potential (Copper, Gold and Moly) based on existing drill data (Pancho Arias and Las Burras) and geophysics (Incahuasi)…a 2012 drill program is expected to begin soon…if you’re looking for “blue sky”, there’s plenty of it with CCD just based on the PALBI Porphyry Potential (our acronym for Pancho Arias, Las Burras and Incahuasi)…for some fascinating geological details on these properties, we suggest as part of your due diligence that you check out the corporation presentation President and CEO Bill McWilliam has put together under the “Investors” section on the company’s web site…2012 is Cascadero’s best chance ever for a major breakout, so it’s a situation we’re going to follow closely in the weeks and months ahead…

Abcourt Mines (ABI, TSX-V)

Abcourt (ABI, TSX-V) continues to strengthen and closed yesterday at 15.5 cents…the company expects to have an updated resource estimate for its Elder-Tagami Gold Project near Rouyn-Noranda by the end of March followed by a Preliminary Economic Assessment…we expect very good news on the updated 43-101 resource estimate given the fact the company has completed nearly 20,000 metres of successful drilling at Elder-Tagami since the last estimate in 2009…the past producing Elder Mine is currently being dewatered…meanwhile, the company’s other major asset is its Abcourt-Barvue Silver-Zinc deposit near Val-d’Or where drilling has also been successful…Abcourt may need a fresh face at the helm to truly unlock shareholder value but there’s no denying the quality of the company’s assets…this has the potential of being a very good year for Abcourt, especially if Silver and Gold continue to climb…below is John’s updated chart…some patience will be required, however, as the stock deals with a resistance band between 16 and 18 cents…

Note: John, Jon and Terry do not hold positions in ABI.

Adventure Gold (AGE, TSX-V)

Adventure Gold (AGE, TSX-V) is heating up as a 15,000 metre drill program is now underway at the company’s very promising Pascalis-Colombiere Gold Property near Val-d’Or…AGE has outlined a Gold trend at Pascalis over at least a three-kilometre strike and up to 900 metres depth and 500 metres wide…immediately adjacent to Pascalis is Richmont’s (RIC, TSX) Beaufor Mine which is just one reason we’re so bullish on Adventure Gold – Pascalis could turn out to be a very strategic fit for Richmont and that raises the possibility of AGE getting taken over…Pascalis is definitely on Richmont’s radar screen…we visited Pascalis last summer and we have some more pictures to share with our readers tomorrow, but for now John gives us his own picture of a very bullish-looking AGE chart…the stock gained another penny yesterday to close at 47 cents…

Note: John, Jon and Terry do not hold positions in AGE.