Gold is firmer this morning…as of 5:50 am Pacific, the yellow metal is up $10 an ounce at $1,654 with the greenback hitting a three-week low…Silver is 14 cents higher at $30.85…Copper is up 3 pennies to $3.79…Crude Oil is flat at $104.15 while the U.S. Dollar Index is essentially unchanged at 79.03 after dipping briefly below 78.90…
Markets are inferring from the Fed’s latest comments yesterday that it stands ready to provide muscle if required…the rate-setting Federal Open Market Committee (FMOC) left benchmark borrowing costs unchanged yesterday but chairman Ben Bernanke said economic conditions were likely to warrant exceptionally low interest rates until at least late 2014…he added at a news conference that the Fed believed monetary policy was “in the right place, but being in the right place doesn’t mean we won’t take further action”…so Bernanke is keeping all options open for possible additional stimulus which should help keep a solid floor under the Gold price…the $1,600 area has held up extremely well as support…Barclays Capital said in a note to clients: “Policy accommodation remains in place and will continue to support higher-beta risky assets”…
European markets are down marginally this morning while U.S. stock index futures are pointing toward a slightly negative open on Wall Street…a flood of corporate earnings are coming in today, while new U.S. claims for unemployment benefits fell slightly last week but a trend reading rose to its highest level since January – the latest sign of a weaker pace of healing in the still-struggling labor market…
TSX Gold Index
Gold mining stocks have taken a beating over the past 8 weeks but bargain hunters have started to step up to the plate, as witnessed yesterday, and that means we could be in for a much better month of May…John’s latest TSX Gold Index chart shows what to initially look for – a break above the recent downsloping wedge…
HGD (TSX)
The HGD on the TSX, the Gold Index double reverse ETF, rocketed from just under $8 at the end of February to a high of $12.76 Monday, a gain of over 50%…however, Monday may have been a last-gasp surge for a while as there was a classic divergence between price and RSI(14) on the daily chart that signals a possible reversal to the downside…yesterday’s candle was at support, so confirmation is required that the downtrend will continue…the HGD needs to be watched closely as its action in the coming days will give important clues as to the direction of the Gold Index…it appears the HGD is ready to correct some of its recent gains…
Relative to the broad market, the TSX Gold Index is at bargain levels not seen the 2008 Crash…some investors are certainly beginning to take notice which is why CGA Mining (CGA, TSX) jumped 26 cents yesterday to $2.24…the company’s 200,000+ ounce Masbate Gold Mine in the Philippines is the largest operating Gold project in that country…as always, perform your own due diligence, but below are some encouraging technical signs for this stock in John’s 8-month daily chart…
Venture Exchange
The Venture Exchange, which closed yesterday at 1371, may have found a bottom this week as well at 1363….that remains to be seen but the Index, which is clearly oversold, is showing signs of stabilizing…a close above the 10-day moving average (SMA) and a reversal to the upside in that SMA would be a strong indication that this market is turning around after a nasty 20% correction…
Probe Mines (PRB, TSX-V)
Earlier this month, Probe announced an updated resource estimate for its Borden Lake Gold deposit which is characterized by a persistent higher-grade core surrounded by lower-grade mineralization…the indicated resource is 4,051,000 ounces of Gold averaging 0.71 g/t Au while the inferred resource stands at 1,796,000 ounces averaging 0.62 g/t Au, at a 0.3 g/t Au cut-off grade…Probe has fallen sharply from an all-time high of nearly $3 per share near the end of January to a low of 92 cents Monday…it climbed 13 cents yesterday to finish at $1.10 for a total market cap of $71.5 million ($12.33 per ounce of indicated and inferred resources)…John updates the chart below…
Note: John, Jon and Terry do not hold positions in CGA or PRB.
Off to a good start, up already more than anytime yesterday. R !
Comment by Bert — April 26, 2012 @ 5:40 am
For those who may be interested
Cap Ex Ventures Ltd (CEV:TSXV) – News Alert
Cap-Ex Receives Approval for 2012 Exploration Program for Its Block 103 Property
Cap-Ex Ventures Ltd. (TSX VENTURE:CEV)(FRANKFURT:X0V)(OTCQX:CPXVF) (“Cap-Ex” or the “Company”) is pleased to announce that the Newfoundland and Labrador Department of Natural Resources (Mineral Lands Division) has granted approval for the Company’s 2012 Application for Exploration Approval and Notice of Planned Mineral Exploration Work for the Block 103 Property in Newfoundland and Labrador, approximately 30 km northwest of Schefferville, Quebec.
Based on the exploration work completed to date-including over 6,000 metres of drilling in 2011-the Company has revealed two primary zones of magnetite mineralization on its wholly owned Block 103 Property: the Northwest Zone and the Greenbush Zone (refer to “Block 103 Map” in Figure 1). Both zones exhibited excellent drilling and assay results and have high potential to identify additional mineralization as several holes terminated in mineralization and, in most holes, mineralization started near surface and was open in all directions. Now with the required permits in place, the Company can continue explorations efforts at these important zones.
The 2012 exploration program has been designed to include a minimum of 15,000 metres of diamond drilling and additional surface sampling primarily focused on the continued investigation and definition of mineralization in the Greenbush Zone. Drilling is expected to commence by the end of April and will be completed using four diamond drills over an estimated four month period.
The results of the 2012 program will be used to support a NI 43-101-compliant resource estimate currently planned to be released by the end of December 2012, and a preliminary economic assessment, planned to be released by March 2013.
Mr. Francois Laurin, President and CEO of Cap-Ex, stated: “Receipt of these permits is both an important and last milestone required for us to start our aggressive 2012 exploration program. The crews and equipment are ready to begin the drill program, as the company previously announced this year. We are confident that the Company will execute on our 2012 Plan in time for our 43-101 compliant maiden mineral resource reports.”
QUALIFIED PERSON
The samples from drilling were processed and assayed by SGS Canada Lab based in Lakefield, ON. The samples were assayed using XRF, Satmagan and Davis tube techniques.
Alex Walus, P.Geo., an employee of the Company and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the technical and scientific information in this news release.
ABOUT CAP-EX VENTURES LTD.
Cap-Ex Ventures Ltd. is a TSX Venture Exchange-listed company focused on the development of its Block 103 iron ore property in the Labrador trough, near the mining town of Schefferville, Quebec. The Block 103 property is strategically located close to existing railway to shipping port, and is adjacent to New Millennium Iron Corp’s LabMag and KeMag deposits and the New Millenium-Tata oxide deposits to the east.
For additional information about Cap-Ex visit the company website at
cap-ex.ca.
CAP-EX VENTURES LTD.
Francois Laurin, President and CEO
Comment by Bert — April 26, 2012 @ 6:10 am
Another black day for rbw.
Starting to feel uncomfortable sitting here. It’s a major drop/correction.
Where’s the bottom at. Seems like supports keep breaking.
Comment by Kalkan — April 26, 2012 @ 6:39 am
The problem with RBW is that they have taken a really lousy decision to explore the International the last. That means years before we have results from there imo. And as well it’s a tiny tiny explorer without any NI43 so it will take lots of time to get anything significant going here. Why buy these small explorers when you can buy cash flow companies so cheap now? Why take the risk?
Comment by Don — April 26, 2012 @ 7:06 am
Richmont has a new board director; Mr. Scherkus recently retired as President and Chief Operating Officer of Agnico-Eagle Mines Limited (“Agnico-Eagle”) after a 27 year career with the company. He served as President and Chief Operating Officer of Agnico-Eagle from December 2005 until his retirement in February 2012. Prior to becoming President and COO of Agnico-Eagle, Mr. Scherkus served as Executive Vice-President, Operations from 1998 to 2005, as Vice-President, Operations from 1996 to 1998, as the manager of the company’s La Ronde Division from 1986 to 1996, and as a project manager from 1985 to 1986. Mr.
Comment by Alexandre — April 26, 2012 @ 7:14 am
BMR
Are you guys still as bullish as ever on RBW? What do you think about thier plan going forward if it is correct about drilling referendum before the International, have you guys spoke to Bjohnston lately?
thanks appreciate any update you may have
Comment by Greg — April 26, 2012 @ 7:32 am
Greg, they cant drill International, there is still snow up there. As for referendum there has been work done on those properties for over 25yrs so there will be some quickly defines drill targets…probably why they are starting there. I posted on SH and will post again here, weak hands are selling and the ppl scooping them up are insiders, RBC ANON and TD. So if you want to sell, go for it but your shares will be going to much stronger hands that see the future of this co.
Trades for C:RBW on 20120426 – 13 trades displayed
Time ET Ex Price Change Volume Buyer Seller Markers
10:21:59 V 0.155 -0.02 20,000 7 TD Sec 33 Canaccord K
10:21:59 V 0.155 -0.02 1,000 1 Anonymous 33 Canaccord K
10:21:59 V 0.155 -0.02 6,000 7 TD Sec 33 Canaccord K
10:21:59 V 0.16 -0.015 1,000 1 Anonymous 33 Canaccord K
10:21:59 V 0.16 -0.015 3,000 2 RBC 33 Canaccord K
10:01:40 V 0.17 -0.005 1,000 2 RBC 7 TD Sec K
10:01:40 V 0.17 -0.005 1,000 2 RBC 1 Anonymous K
09:58:34 V 0.165 -0.01 1,000 2 RBC 1 Anonymous K
09:58:34 V 0.16 -0.015 20,000 2 RBC 85 Scotia K
09:34:10 V 0.155 -0.02 19,000 7 TD Sec 85 Scotia K
09:34:10 V 0.16 -0.015 1,000 1 Anonymous 85 Scotia K
09:34:10 V 0.16 -0.015 4,000 2 RBC 85 Scotia K
09:34:10 V 0.17 -0.005 1,000 2 RBC 85 Scotia KL
Comment by db — April 26, 2012 @ 7:38 am
Stocks like RBW is nice to have a very small amount of capital in. If they hit something the stock will go up significantly. But in 9 out of 10 that is not the case. This is a lottery ticket and you should never take large risks in these kind of stocks. And another thing is that things always takes longer time than expected. Look at GBB for one example. RBW hasn’t even started the drilling yet! Just think about how long it will take until they actually have any results?? It will be a looong wait my friends. My tip; go for the cash flow juniors.
Comment by Don — April 26, 2012 @ 7:40 am
Kalkan/Greg
I would suggest the bottom for rbw is at 0.15, or close. What has
been & is now going on is, Management and/or insiders are selling
their 0.15 shares, recouping their cash & are now playing the
warrant game. Buying & holding positions, seems to be a thing of
the past, in particular, since those with the company or close to
the company are not holding, although they expect us to. I have
stated it many times before, companies et al don’t give a darn about
us. R !
Comment by Bert — April 26, 2012 @ 7:42 am
db,
did I say anything about selling? no just trying to get an update from the guys that brought this story to my attention in a very BULLISH WAY, anytime anyone posts anything remotely negative here everyone starts attacking or insinuating. Actually have been thinking about buying more down here to average down, just want to see if the BMR crew knows anything new and what their thoughts are, sheesh…
Comment by Greg — April 26, 2012 @ 7:58 am
Just told u why Ref first and that the only ppl selling are weak hands…basically sums it all up… If BMR has anymore than that to offer I welcome it. Its hard to be bullish on any stock the way April has treated the Venture but if insiders buying the majoritiy of the shares sold isnt bullish I dont know what is…
Comment by db — April 26, 2012 @ 8:03 am
Greg – If you call Dan at (604)629-8408 he’ll give you the Rainbow “project update” for the Kootenays/Big Strike project.
Comment by Andrew — April 26, 2012 @ 8:15 am
@db. Insiders hav only bought 70 k shares in last month so I’m not sure where your getting all this insider buying bs???
Comment by Heath — April 26, 2012 @ 8:18 am
Frieinds, family, people close to company? Those are ppl I also consider “insiders” ..just because its not Johnston and mgt buying doesnt mean a thing. If youve watched RBW the last couple months ANON sells almost exclusively to RBC…maybe just a coincidence…
Comment by db — April 26, 2012 @ 8:23 am
That’s all hearsay. Could be anyone. Maybe your right and it is insiders. Maybe I’ll win the lottery tomorrow too!
Comment by Heath — April 26, 2012 @ 8:41 am
When one starts believing it’s always weak hands selling,
it could spell trouble… In RBW’s case, i consider it strong
hands. The strong hands finance the company for 0.15 & as
a result, get a bunch of warrants. After a hold period, they
sell their shares & hold their warrants. By doing it this way,
they can’t lose, they get all their cash back & hang onto the
warrants, to be exercised only if & when the price moves up.If
the price don’t move up, they let their warrants expire, but the
company usually makes sure they gather in the extra cash, so up
goes the price… Wouldn’t you pay 18 or 20 cents for a 0.50 or
more share ?
Comment by Bert — April 26, 2012 @ 8:54 am
I see the children are squabbling over the ‘painted pony’ again…the paint is
washing off in the rain and they all want their money back.
Comment by Paul — April 26, 2012 @ 9:12 am
any updates on ABI
any insight in rollercoast ride Jag Mining and 20% piosion pill
Comment by sandy m. — April 26, 2012 @ 10:05 am
any updates of ABI
any comments on Jag Gold Mining
Comment by sandy m. — April 26, 2012 @ 10:06 am
Andrew
thank you
Comment by GREG — April 26, 2012 @ 11:25 am
I just talked to Dan M. from RBW. He accidentially misinformed some of you. In regards to the Big Strike Project RBW will be drilling these properties in this order;
1. Gold Viking
2. International
3. Referendum
Comment by db — April 26, 2012 @ 12:13 pm
I posted earlier today with my thoughts on what was going on with the RBW selling.
It arrived, # 14 i believe, now it is not there & i have no reason what may have
happened, so there you go. R !
Comment by Bert — April 26, 2012 @ 2:08 pm
db – Dan did not “accidentally” misinform me. He played up Referendum and his meetings with Tom Cherry and that was the property that was going to be the first of the Kootenay’s land package to be explored and The International would be the last. He was quite clear on that. Viking, Ottawa, Tin City, Whitewater would all come before the “flagship” property. So what you have posted would suggest that Rainbow don’t know what they’re doing; perhaps tomorrow it will be different again? Like I said, I smell a rat, and clearly this company cannot convey their plans accurately to their shareholders. This does not project a good image for management. The update in the April news release is null and void, it should have been amended as it is now misleading.
Comment by Andrew — April 26, 2012 @ 3:47 pm
Andrew, your comments are always appreciated and I respect your investment knowledge a lot. However, let me give my perspective on a few things and you’ll probably feel a little more comfortable.
First, I’m doing some traveling at the moment and today I was in Calgary. I had a great meeting with the President of Greenlight Resources last night, and I also met David Johnston this morning for breakfast. Had a great chat. He also asked me if I would be willing to do the voice-over for an RBW corporate video that’s apparently coming out next week. I told him I would be honored to do that. So I spent some time at a studio today and I believe the video will be well received by investors.
Rainbow’s game plan is clear – exactly as they laid out in their most recent news releases, confirmed to me by Johnston, and it’s in the video. Jewel Ridge, where some initial exploration has just taken place, could possibly be drilled first but that depends on the permit process. Notice of work applications have been filed for Gold Viking and the International, so those will be the first two Kootenay properties drilled as soon as permits are received and weather allows. Keep in mind, there is still a lot of snow at the International right now so it’s not a property that can be drilled in the spring. Gold Viking is at a lower elevation and south-facing – it can be drilled sooner than the International. In addition to Gold Viking and the International, Rainbow plans to drill the Ottawa Property and the Referendum. So the International won’t be the last property drilled. The International is still very much the “flagship” but it’s simply impossible to drill that property first because of the elevations. A lot of prospecting work will be carried out at the Big Strike Project in addition to the drilling, so prospecting discoveries will certainly contribute to news flow.
Andrew, in this business I’ve learned to go directly to the source for the most accurate information. I’ve had lots of IR people call me over the years but I don’t make my investment decisions based on what they tell me, and sometimes they do make mistakes. I’m sure this particular individual feels bad but maybe he just started with the company, so cut him some slack. I give Rainbow credit for making the effort to communicate with shareholders as much as possible.
Personally, I was quite happy seeing some stock come loose today because I grabbed another 30,000 shares. The chart still looks very good and I am convinced Rainbow will make a discovery this summer. This is a young company that has made a lot of progress since the beginning of the year. I’m not in this for pennies and I view a little weakness in the stock as an opportunity, not something to be frightened about.
With regard to the Referendum, it was a terrific acquisition and Johnston is very high on it. It could certainly be a “sleeper” in the Rainbow package. If an IR guy slipped up in saying to someone that it would be the first property drilled, that’s unfortunate and shouldn’t happen but no one is perfect. In speaking with Johnston, I know there’s a lot of genuine excitement regarding the Referendum. It could be the first property in the Kootenays that Rainbow will actually be physically on this quarter (for field exploration), hence perhaps the confusion referred to above – not the first property to be drilled, obviously, but perhaps the first to be explored.
Comment by Jon - BMR — April 26, 2012 @ 4:40 pm
Jon – thank you for your comments. The promoter was calling shareholders. I did go directly to David Johnston who in turn bounced me back to the IR guy without correcting his errors, after I had explained what I had learned from him. I can’t cut him any slack – either he’s capable of doing the job correctly for Rainbow or he’s not – it’s my money.
Comment by Andrew — April 26, 2012 @ 4:47 pm
Jon
Any particular reason why a post of mine disappeared earlier today. I actually seen it take
it’s position on your site as # 14, i believe, didn’t have any reason to remember the # at
the time… Too bad, it sapped my little brain trying to put it together. Thanks ! R !
Comment by Bert — April 26, 2012 @ 5:00 pm
Problem fixed, Bert – sorry, sometimes the system doesn’t automatically post as it should.
Comment by BMR — April 26, 2012 @ 5:03 pm
Jon, you have a way with summing things up so nicely, look forward to the video presentation in the coming week or so…
Comment by db — April 26, 2012 @ 5:14 pm
Jon
No problem, thanks ! Good night !
Comment by Bert — April 26, 2012 @ 5:35 pm
Jon
Appreciate the update on RBW
Comment by Greg — April 26, 2012 @ 7:00 pm
I also spoke with Dan M… he told me that the Kootney location cant be drilled til June due to land conditions….
Comment by Jeremy — April 26, 2012 @ 7:29 pm