Gold was down slightly earlier this morning after yesterday’s strong move, but reversed to the upside following a weaker-than-expected U.S. GDP report…as of 6:00 am Pacific, the yellow metal is now up $6 an ounce to $1,663…Silver is 16 cents higher at $31.26…Copper is up 2 pennies at $3.84…Crude Oil is 22 cents lower at $104.33 while the U.S. Dollar Index is down more than one-third of a point at 78.75…
The fact that Gold held important support around $1,600 in recent weeks is a very bullish sign…a reverse head-and-shoulders pattern is quite obvious on the charts as John has pointed out…going back over the last decade, Gold has also consistently found support at its 300-day moving average (SMA) which also happens to be the right shoulder low…Gold‘s March-April swoon appears to be over, and the very oversold Gold stocks, which almost seem to have been factoring in a major breakdown in the Gold price, could be in for a spectacular rise as the year progresses…
Today’s Markets
European markets are higher, reversing earlier losses this morning, while stock index futures in New York are pointing to a positive open on Wall Street…
U.S. economic growth cooled in the first quarter as businesses cut back on investment and restocked shelves at a moderate pace, but stronger demand for automobiles softened the blow…GDP expanded at a 2.2% annual rate, the Commerce Department just reported in its advance estimate, moderating from the fourth quarter’s 3%…while Q1 was below economists’ expectations for a 2.5% pace, a surge in consumer spending is encouraging and took some of the string out of the report…
Spain’s Downturn Deeper And Longer Than Assumed
Spain’s unemployment rate rose to almost one in four, according to data released this morning, amid a deepening economic crisis marked by another sovereign credit downgrade from Standard & Poor’s…the number of Spaniards without jobs rose by almost 367,000 people in the first quarter of the year to reach 5.64 m, or 24.4% of the workforce, the National Statistics Institute said…
Iamgold To Take Over Trelawney
We’ve been waiting for some acquisitions by cash-rich producers to help give the junior market a lift, and Iamgold (IMG, TSX) announced this morning that it has entered into a definitive agreement whereby it will acquire, through a plan of arrangement, all of the issued and outstanding shares of Trelawney Mining and Exploration (TRR, TSX-V) for $3.30 in cash…Trelawney closed yesterday at $2.32, though it was high as $3.84 in January after an all-time high of $5.91 last July…the $3.30 cash offer represents a 36.6% premium based on TRR‘s 20-day volume weighted average price…Trelawney’s Cote Lake deposit, located halfway between Timmins and Sudbury, hosts an NI-43-101 indicated resource of 35 million tonnes averaging 0.82 g/t Au and an inferred resource of 204 million tonnes averaging 0.91 g/t Au, for total contained gold of 6.87 million ounces…the Iamgold acquisition values each ounce in the ground at approximately $85…
The Trelawney buy-out should certainly give the Venture Exchange another jolt to the upside today after yesterday’s 22-point gain to 1393…as we speculated Monday, this market appears to have bottomed out in the 1360’s…the Index should finally bust through its 10-day moving average (SMA) today which has provided resistance since early March…
Rainbow Resources (RBW, TSX-V)
Jon was in Calgary for the day yesterday and met with RBW President David W. Johnston…here’s his summary from that meeting…
1. Rainbow is coming out next week with a short but powerful corporate video – the reason I know is that I was asked by company President David W. Johnston yesterday to handle the voice-over…I told him I would be honored to do so;
2. Everything is on track and going exactly as planned in terms of upcoming exploration and drilling at RBW’s flagship Big Strike Project in the Kootenays…there aren’t many companies who can claim they have three past high-grade producers that have never been previously drilled but Rainbow can (International, Gold Viking, Ottawa);
3. Gold Viking will be drilled first, followed by the very promising International which is at higher elevations with slower snow melt as a result…other major priorities are Ottawa and the Referendum (the Referendum could be a “sleeper” in the Rainbow package)…an intense prospecting campaign will commence throughout the Big Strike Project as soon as weather conditions allow – this will contribute a lot to news flow;
4. Johnston loves the chances for a potential major discovery in the Kootenays…he was also very encouraged with his visit to Nevada a couple of weeks ago and the company’s recently-optioned Jewel Ridge Property…”It’s a dandy“, Johnston told me…former open-pits…near-surface mineralization…along strike and contiguous to Barrick’s Ruby Hill Mine to the north and Timberline’s advanced-staged Lookout Mountain Project to the south…great former drill result to follow up on – 2.1 g/t Au over 39.6 metres…Jewel Ridge has all the ingredients to deliver some big-time exploration results for Rainbow…news coming out soon regarding Jewel Ridge I suspect – early field exploration results?…exact timing for the start of drilling at Jewel Ridge in 2012 is uncertain but the company is trying hard to fast-track the process;
5. Rainbow has been consistent, accurate and timely in meeting all of its stated objectives so far in 2012…given that, plus the “blue sky” potential of the Big Strike and Jewel Ridge Projects, I’ve taken advantage of the recent pullback in the share price to add significantly to my already substantial position (as a matter of disclosure) including 30,000+ more shares Thursday…I’m not in this for pennies;
6. The Rainbow chart is still very strong and the pullback has come on relatively low volume in a typical consolidation pattern;
7. The CDNX has corrected a whopping 20% since the end of February…this is not a time to panic or worry about a stock retracing – a correction like we’ve just seen in the overall market opens up huge money-making opportunities for those investors who are patient and jump in at the right time on quality plays…understanding and managing volatility is not always easy but it’s one of the tricks of being a successful investor…Rainbow has made truly impressive steps in its development over the last few months – this is a young company with a very bright future…
Chart Update – ATAC Resources (ATC, TSX-V)
Storm Resources (SRX, TSX-V)
Storm Resources (SRX, TSX-V) is an oil and natural gas play with an interesting chart as it took one year to go from overbought to very oversold…as always, perform your own due diligence…for investors interested in this sector, SRX is certainly worth a close look…
Note: John, Jon and Terry do not hold positions in ATC or SRX.
Yesterday was great to watch, but we need at least, another
very positive day today to gain some confidence. Everything
is on our side today as Gold, Copper, Europe & the futures
are all up. As for RBW, it may shine with BMR, but we, the
lowly folk, never in the know, need a positive showing in
the stock price, otherwise we show mistrust, why not, how
many Venture companies have let us down, R !
Comment by Bert — April 27, 2012 @ 5:31 am
Wow 1111
After 1 minute, we are up over 17 points.
Comment by Bert — April 27, 2012 @ 5:33 am
bert its the volume.. 30 mill shares in the first 5 minutes… this COULD be it….
re TRR…. what a joke offer…. not even up to the 200 day…. more offers to come…. and this will get the feeding feeling started..:) ATC, GCU, CAN, et al that have resources…
Eeven GBB could be in there… and GNH…. pennies on the dollar..
Jon… why are boards typically so irresponsible to think that such offers are ‘good’ without entertaining their intial reason for being there… or is it simple as prove ‘A’ resource then sell out, make the dough and gone… that simple??
Comment by Jeremy — April 27, 2012 @ 5:38 am
and hopefully those will remember a few posts ago, that I would wait a day to bail…:) yep glad I waited…. while we are not oputta the woods yet, the vol increase is telling me that Grandich was wroong… the markets are NOT dead…. maybe dieing but not dead!! ….
Comment by Jeremy — April 27, 2012 @ 5:40 am
We need some confidence building in the Venture before
seeing the more speculative stocks move up. It’s all about
confidence, that’s why i fell crossing a tight wire, when
half ways across, i felt i wouldn’t make it.
Comment by Bert — April 27, 2012 @ 5:47 am
bert – you werent alone mate… thus the reason for my posts earlier… misery loves comapny:) and there wasnt anyone who thought that we would ever come out of the dark, and while we still arent, it is looking better… just hope this isnt a fake out…
volume over 40 mil … but trr is a bunch of that!!:) at 9:52
Comment by Jeremy — April 27, 2012 @ 5:52 am
BTW… I have had 5 calls in the last 24 hours from companies promoting their story…. is this a sign of the burners being on????
Comment by Jeremy — April 27, 2012 @ 6:05 am
Jeremy
My past postings will show that i always tried to be positive,
in particular, since it’s a way of life for the schemers, the
money pockets that is. R !
Comment by Bert — April 27, 2012 @ 6:10 am
Would you believe that at this moment, we are the only exchange up.
We are still maintaining our momentum. R !
Comment by Bert — April 27, 2012 @ 6:18 am
Bert – absolutely!!:)
Comment by Jeremy — April 27, 2012 @ 7:35 am
Dave – do you follow FDR? Chart looks as if it may have found support and ready to move up if volume comes back. Is the Mrk Cp too high (5x that of ZEN and SRK)? Thanks 🙂
Comment by Andrew — April 27, 2012 @ 8:54 am
As I mentioned earlier, GBB finally closed at 10 cents level. But still, this is not the bottom price and depends on the real support. If not, it can go to 8 cents level before finding the ground. Better stay away from it!
Comment by Theodore — April 27, 2012 @ 12:09 pm
GBB Insider activity….. one wonders…:)
Apr 24/12 Thomas, Roger David Direct Ownership Grant of warrants Warrants 0.175 100,000 39% 358,941
Apr 24/12 Thomas, Roger David Direct Ownership Prospectus exempt buy Common Shares 0.150 200,000 19% 1,237,725
Apr 18/12 Goguen, Ronald J. Direct Ownership Public market buy Common Shares 0.120 75,000 100% 150,000
Apr 17/12 Goguen, Ronald J. Direct Ownership Public market buy Common Shares 0.130 62,500 > 100% 75,000
Apr 16/12 Thomas, Roger David Direct Ownership Public market buy Common Shares 0.115 – 0.120 33,500 3% 1,037,725
Apr 13/12 Goguen, Ronald J. Direct Ownership Public market buy Common Shares 0.115 12,500 n/a 12,500
Comment by Jeremy — April 27, 2012 @ 1:26 pm
Dear Jon,
When are you planning another visit to GBB or do you make a phonecall with Frank or Roger for an interview? Or did you lost interest. The company it self looks good with the property and RE 43-101 last. Later this year there will be a larger 43-101 to be expected as well as a PEA. Interesting to see were the last big drill holes did come up with. I have to say you’re poor these days on reporting on GBB. Lots of news. But in the early days you did. But now it seems more you’re only interest is RBW. I just would like to ask you to give Roger a call on +16138233359 for an interview. That is easy to do and would give you a clear and honest view on GBB. Seems a while back you’ve had contact with GBB. I have to say thats ashame. I am looking forward to a honest and good report from you on GBB which the company deserves like you paid attention to in the early days. For everyone here do your own dd and keep in mind even with good companies BMR can loose interest and drop a companie easily from there interest list. Have a good weekend…
Comment by Arjan — April 27, 2012 @ 7:20 pm
Hi Arjan. I last spoke with Frank a couple of months ago, and our door is certainly open to him for an interview – it’s really a question of timing. I’d like to see some hard news first on current drilling and exploration.
Let me be absolutely clear, and I’ve stated this before: I love the Granada Property and I truly believe GBB could be sitting on a multi-million ounce deposit. The problem is, and I don’t mean to be negative, but GBB has dropped the ball on exploration. Most investors can see that, hence the struggles the stock is having. I said this as early as a year ago – more rigs were required at the LONG Bars Zone and more personnel on the ground. Finally, near the end of last year, GENIVAR was given the boot but ultimately this is a GBB (and Frank Basa) responsibility. I think SGS has taken a smart approach with the current drilling strategy. However, through all of these stumbles on the ground (nothing wrong with the results, just the efficiency of the exploration and drilling program) the GBB brand has been hurt, no question. And why GBB has re-introduced the shareholder “gold program” I have no idea. It didn’t fly before and it’s not going to fly now IMHO. The good news is, Granada is a potentially very valuable asset and I can definitely see the possibility of another company swooping in and making it work. This raises the possibility of a takeover – so at current prices GBB is looking very attractive to me for that reason alone. Nothing wrong with the property – just the execution of the game plan on the ground.
Comment by Jon - BMR — April 28, 2012 @ 10:37 am