Gold is bouncing around a bit this morning after yesterday’s bullish intra-day reversal, the third straight “hammer” we’ve seen in the yellow metal recently…as of 5:25 am Pacific, Gold is down $3 an ounce at $1,559…Silver is flat at $27.91…Copper is unchanged at $3.40…Crude Oil is 15 cents higher at $87.97 while the U.S. Dollar Index has fallen one-fifth of a point to $82.84…
The action in the TSX Gold Index yesterday was another strong statement by the Gold stocks that Gold will NOT break strong support in the low $1,500’s, and it’s next major move is higher – not lower…with Gold down about $20 intra-day to around $1,530, and the overall markets very weak, the Gold Index shed just 6 points when it could have taken a real pounding…and then it reversed sharply to finish higher for the day as Gold itself rebounded…the chart for the TSX Gold Index shows that a very important low was likely put in May 16 at 266 (the same day the Venture may have bottomed out at 1215)…lately, this Index has significantly out-performed Gold which is a bullish sign for the metal…given this chart, June is shaping up to be a much better month for Gold stocks which may suggest the Fed and central banks around the globe are about to embark on a wild money printing spree…
The chart for Gold itself is less spectacular than the Gold Index but encouraging nonetheless (the stocks will typically lead the metal) even though Gold is about to post its 4th consecutive losing month, matching a similar run 12 years ago…Gold’s hammer reversal yesterday was particularly impressive considering it came on a day when the U.S. Dollar Index jumped half a point…
India Growth Slows
India’s economic growth fell to a 9-year low in the first three months of 2012, a clear sign that the country’s slowdown is deepening and affecting all sectors of the economy…sharp falls in the manufacturing and agriculture sectors led Asia’s third-largest economy to grow only 5.3% year-on-year in the quarter, compared with 9.2% growth a year earlier…this is the worst performance of India’s economy since 2003 and far worse than the situation in the wake of the global financial crisis and the collapse of Lehman Brothers in late 2008, adding pressure on policymakers to take emergency actions to revive the country’s growth…India’s parliament, however, has been in a state of virtual paralysis since the Congress-led coalition government became embroiled in a wave of corruption scandals involving senior members of the cabinet…key reforms are not being implemented, so government is very much the problem in this country as in many other jurisdictions…
Today’s Markets
Asian markets were off modestly overnight with Japan’s Nikkei Index shedding 1.1%, closing out its worst monthly fall in 2 years…the Nikkei hit a 4.5-month closing low and was down 10.3% in May, its biggest one-month fall since May, 2010, when it lost 11.7%…
May, 2010, was a great time to be a buyer in the markets, wasn’t it?
European shares are higher this morning, rebounding from sharp losses yesterday, while U.S. stock index futures as of 5:25 am Pacific suggest a positive open on Wall Street…a slew of economic data is coming out of the U.S. today, including ADP’s latest employment report for May as well as the Chicago Purchasing Managers Index, ahead of tomorrow’s all-important jobs report…the ADP report was just released with private-sector job growth a disappointingly weak 133,000 from April to May…
After a 7% jump last week, the Venture Exchange is down 36 points the last two trading sessions but the 10-day moving average (SMA), which has made a sharp turnaround, is providing support…
Some of our readers have asked for a chart on Gold Bullion Development (GBB, TSX-V) which has been stirring lately after hitting a low of 7 cents May 23…GBB needs results on the ground for a sustained move up, and the current drilling in the promising northern part of the Eastern Extension is the Big Hope…
Note: John, Jon and Terry do not hold positions in GBB…
GBB is certainly moving in the right direction this morning……
Comment by M. — May 31, 2012 @ 5:31 am
SRK looking close to a bottom and may have news this week or next.
Comment by Andrew — May 31, 2012 @ 6:13 am
BMR- curious if you guys have ever looked at AOX (Andover Mining Corp)? They have begun summer drilling with a huge land package (Sun deposit)adjacent to NovaCopper.Bert, you may be interested in this one, seeing as its a Yukon play. Coming off lows right now…
Comment by db — May 31, 2012 @ 7:34 am
DB
AOX—- Sorry but i won’t buy, if a stock has over 100 million shares, although i do have some
over that amount, because lets say, i grew up with them. One of my main picks in the Yukon is
IGO, which is run by Randy Turner (SQI) & part of a deal with New Gold, who put 15 million into
the play. If i don’t do well with that one with time, my name ain’t Bert….Thanks anyway. R !
Comment by Bert — May 31, 2012 @ 7:47 am
Seems to be a major resistance at 0.19 in RBW. I hope an news release in the nearest future will turn things around.
Comment by Kalkan - Sweden — May 31, 2012 @ 7:57 am
Rainbow to conduct phase I 2,000 m drilling at Jewel
2012-05-31 09:28 PT – News Release
An anonymous director reports
RAINBOW PLANNING SURFACE BULK SAMPLE FOR REFERENDUM PROPERTY : JEWEL RIDGE SAMPLES UP TO 3.6 G/T AU AND 30.4 G/T AG
Rainbow Resources Inc. is proceeding with a permit application for a surface bulk sample of up to 10,000 tonnes at its Referendum property near Nelson, B.C., part of the 12,700-hectare Big Strike project.
The targeted area on the eastern side of the Referendum Property includes a quartz tourmaline stockwork system and hydrothermally altered rock within a zone, open in all directions, measuring approximately 700 metres by 150 metres. A mini-bulk sample from surface, totalling 240 tons, was carried out in the 1980’s from this area near an underground shaft. Ore with very low sulphide content was processed at the Trail Smelter and returned an average grade of 0.13 oz/ton Au (4.5 g/t) and 0.87 oz/ton Ag (29.8 g/t) for approximately 30 ounces of gold and 210 ounces of silver.
Referendum is one of four high priority properties in the Big Strike package. Drilling is expected to begin shortly at the Gold Viking Property followed by the flagship International Silver Property, upon receipt of permits which are expected imminently. The Ottawa Property, the top producer of high-grade silver in the Slocan Valley in the 1900’s, is contiguous to Gold Viking and will also be a focus of the Company’s exploration efforts this summer.
The International, Gold Viking and Ottawa have never been previously drilled despite high-grade past production from all three. In addition to its upcoming drill program, Rainbow has already commenced prospecting at its Big Strike Project with the goal of identifying new potential discovery areas throughout this highly prospective and under-explored land package. Results will be released when they become available.
Jewel Ridge
After an initial site visit, a review of historical data, and receipt of assay results from sampling, Rainbow Resources is pleased to report that it will be proceeding with a Phase 1, 2,000-metre RC drill program at its Jewel Ridge Property in Nevada along the prolific Battle Mountain-Eureka Trend during the third quarter of 2012.
With several past-producing pits lined up on a primary mineralized structure that trends north for at least 3 kilometres toward Barrick Gold’s Ruby Hill Mine, contiguous to Jewel Ridge, Moose Mountain Technical Services (Rainbow’s resource consultants) believe there is the potential for a large tonnage deposit at Jewel Ridge. Strong evidence for this also comes from historical drilling results, including 2.1 g/t Au over 39.6 metres near-surface, and the existence of rust zones, underground workings and trenching over a wide area. Rainbow’s drilling strategy will be to extend the shallow pits at depth and follow the north-south geological contact directly toward the Ruby Hill Mine.
Significant results from Moose Mountain’s recent site visit included chip samples across 15 metres from the south wall of the Hamburg Pit (southern portion of Jewel Ridge) that assayed 0.98 g/t Au, 14.1 g/t Ag and 3.45% Zn, while another chip sample across 7 metres from the nearby Paroni Pit assayed 0.91 g/t Au and 3.9 g/t Ag. A hematite float sample, believed to have originated from the Dunderburg Mine area in the northwest section of the property, graded 3.6 g/t Au, 30.4 g/t Ag and 2.2% Pb.
The 607-hectare Jewel Ridge Property is strategically located between Barrick’s Ruby Hill Mine and Timberline Resources’ advanced-stage Lookout Mountain Project to the south. Rainbow can earn up to a 75% interest in Jewel Ridge as part of its option agreement with Greencastle Resources Ltd. announced March 29, 2012.
Barrick reported that, as of December 31, 2011, proven and probable reserves at the Ruby Hill Mine include 16.8 million tons at an average grade of 0.058 oz/ton Au (1.99 g/t) containing approximately 978,000 ounces. Barrick estimates additional mineralization of 107.6 million tons at a grade of 0.021 oz/ton Au (0.72 g/t). Total production in 2011 was 127,000 ounces.
The Lookout Mountain Project contains 390,000 ounces of measured and indicated gold resources (18,838,000 tonnes at 0.65 g/t Au) and 221,000 ounces of inferred resources (16,679,000 tonnes at 0.41 g/t Au) as reported by Timberline April 19, 2012.
Corporate Developments
Rainbow filed an application last month (April) to be listed on the OTCQX. This pending U.S. listing is expected to give the company increased visibility and exposure in the American market and will make it easier for United States-based investors to trade Rainbow stock.
Quality Assurance/Quality Control
Rainbow’s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Jim Decker, P.Eng., a director of Rainbow Resources who serves as a qualified person under the definition of National Instrument 43-101. A comprehensive quality assurance/quality control program is in place to monitor precision and accuracy of assay results. Rock samples from Jewel Ridge were submitted to ALS Labs in Elko, Nevada. Sample preparation included sample weight, crushing to 70% passing 2 mm, riffle splitting, and pulverizing to 85% passing -75um. Analytical procedures included Agua Regia digestion with a 35 element ICP AES finish. The gold was determined by fire assay on a 30g sample with an ICP AES finish.
Comment by db — May 31, 2012 @ 8:30 am
The 10000 tonne bulk sample is BIG news IMO. That will fund alot of this summers exploration and help keep dilution low. It will be nice when they finally get permits to get those drills turning in the Kootenays…
Comment by db — May 31, 2012 @ 8:44 am
RBW continues to move the ball fwd…..nice results from Jewel Ridge – looks like they’ve got a chance to hit some very nice intersections, especially if they’re going to be drilling under existing pits…….remember Cadillac in February? Similar type of situation……..what’s really interesting is the Referendum where they’re looking at a bulk sample which could be a nice revenue generator………the hydrothermally altered rock is important as that makes it a lot easier and more cost-efficient to handle……low sulphide content – no leaching issues, low environmental impact…..drill permits imminent for Gold Viking……things are on the right track on the ground……
Comment by Jon - BMR — May 31, 2012 @ 8:48 am
I own a ton of AOX & am waiting for my payday. Wish I had as much GQC a AOX, hoping for a ride like that by end of year. Just want to say thanks to the great guys who run this sight, truely a Blessing !!!!! KD
Comment by KD — May 31, 2012 @ 12:15 pm
Jon, noticed you mentioned Cadillac CQX are they still on your radar ???, shame their share price in the trash heap again. Believe they have the goods and just patiently waiting for next round of drill results. KD
Comment by KD — May 31, 2012 @ 12:19 pm
Great rebound by the venture and tsx today.Great to see this close in the green after starting in the red today. Are we going to be testing the RSI 14 50 level again? Hope we can break that resistance, would bode well!!
Comment by Tony T — May 31, 2012 @ 12:24 pm
GQC closes at 68c. Holy smoke Batman. Any ideas Bert?
Comment by Patrick — May 31, 2012 @ 12:26 pm
Yes, CQX is definitely on our radar screen, in fact we’re looking at doing an updated chart very soon, perhaps as early as tomorrow….I really do like their Utah Project….they’re in a former gold and silver camp with about a dozen past producing open pits…….I believe they have a great opportunity for more excellent results on top of what they reported back in February……..the stock has come all the way down from 50 cents to the low teens….I’m not crazy about management in terms of their ability to understand the markets, but, they’ve done a fabulous job tying up this land package and determining how best to drill it…..
Comment by Jon - BMR — May 31, 2012 @ 1:06 pm
Notice how it found support at the 10-day SMA….simple indicator, but it has proven very reliable……strong Venture uptrends will always find support at the 10 and 20 day SMA’s…….this needs to be watched closely…..this is just a hunch but I have a feeling this market could really find some serious traction by mid-June, which is right around the time of the Fed meeting (June 19-20) and after the Greece vote…….June is certainly a critical month for the markets and to see how the central banks react…..
Comment by Jon - BMR — May 31, 2012 @ 1:13 pm
Patrick – GQC closes at 0.68. Holy smoke Batman. Any idea’s Bert ?
Bert – Patick my buddy ! Don’t forget i sold at 0.395, if i had an idea, i would have held & sold today.
The market has a way of surprising investors.
We have a logger down here who is much smarter than me.
——————————————————-
A Newfie decides to travel across Canada to see the Pacific Ocean . When he gets to Nanaimo , he likes
the place so much that he decides to stay. But first he must find a job.
He walks into the MacMillan-Bloedel office and fills out an application as an ‘experienced’ logger. It’s
his lucky day. They just happen to be looking for someone.
But first, the Bush Foreman takes him for a ride into the bush in the company pickup truck to see how much
he knows. The foreman stops the truck on the side of the road and points at a tree.
‘See that tree over there? I want you to tell me what species it is and how many board feet of lumber it
contains.’
The Newfie promptly answers, ‘Dat dere’s a Sitka Spruce and she got 383 board feet a’ lumber in ‘er.’
The foreman is impressed. He puts the truck in motion and stops again about a mile down the road.. He
points at another tree through the passenger door window and asks the same question. This time, it’s a
bigger tree and of a different class..
‘Lord tunderin’! Dat’s yer Douglas Fir and she got 690 board feet.’ says the Newfie. Now the foreman is
really impressed. The Newfie has answered quickly and got the answers right without even using a calculator!
One more test. They drive a little farther down the road, and the foreman stops again. This time, he points
across the road through his driver side window.
‘And what about that one?’
Before the foreman finishes pointing, the Newfie says, ‘A Yeller Cedar, 242 board feet at most.’
The foreman spins the truck around and heads back to the office a little upset because he thinks
that the Newfie is smarter than he is.
As they near the office, the foreman stops the truck and asks the Newfie to step outside. He hands
him a piece of chalk and tells him, ‘See that tree over there. I want you to mark an X on the front
of that tree.’ The foreman thinks to himself, ‘Idiot! How would he know which is the front of a tree?’
When the Newfie reaches the tree, he goes around it in a circle while looking at the ground. He then
reaches up and places a white X on the trunk. He runs back to the foreman and hands him the chalk.
‘Dat’s da front of dat tree fer sure,’ the Newfie states.
The foreman laughs to himself and asks sarcastically, ‘How in the hell do you know that’s the front
of the tree?’
The Newfie looks down at his feet, while rubbing the toe of his left boot cleaning it in the gravel
and replies, ‘Cuz someone took a s–t behind it!’
He got the job.
Comment by Bert — May 31, 2012 @ 2:34 pm
845 a.m. nfld time….Only green i can see this morning is on my lawn. Another bad day, unless
the jobs report in the U.S. is good, but i doubt that. It’s not only Europe, now it’s the global
economy, Asia is also slowing down. It’s been said that the markets will rebound when everyone
throws in the towel, here goes my towel. Have a good day. R !
Comment by Bert — June 1, 2012 @ 3:24 am
IGO
Independence Gold Commences 2012 Exploration in the White Gold District, Yukon
Comment by Bert — June 1, 2012 @ 4:23 am
I’m with you Bert… all about sentiment .. except GQC… thats just nuts… one hole???? Richfield had to have multiple holes in a good market before gettng that much respect…
I was out at 30, thinking that it was a CQX type of day… but I suspect that it will come back down to earth … BFD was the same… being ‘traded hard… everything back to the mean!!
Comment by Jeremy — June 1, 2012 @ 4:24 am
Bad jobs report ! Dow futures now down 200 pts,. I do not need to elaborate. Another QE
coming ? Have a good weekend. R !
Comment by Bert — June 1, 2012 @ 4:35 am
PS—— A bad jobs report is good for gold, now i see some green in Gold, which made an
about turn of 25 pts., now up 13.5 pts…
Comment by Bert — June 1, 2012 @ 4:39 am
U.S. adds 69,000 jobs in May; jobless rate 8.2% – is this bad??????? what am I missing.. gold jumps 30 bucks in minutes.. QE – for sure… but when?? need it now… I nneed to retire next week!!:) or some week!
Comment by Jeremy — June 1, 2012 @ 4:39 am
“John, Jon and Terry do not hold positions in GBB…” – Do you ever tell your readers when you sell? Last year this chart was ‘a thing of beauty’ every other day – its not too pretty now although it may improve soon….
Comment by Ackman — June 1, 2012 @ 4:42 am
Jeremy – U.S. adds 69,000 jobs in May; jobless rate 8.2% – is this bad???????
Bert – Yes, it is bad, one must realize how many are unemployed in the U.S. The so called
experts were hoping for 150-200 thousand. Whatever, it’s not what we think of the job’s
report, it’s what the market thinks & the Dow futures went down from 100 to 200 pts. No
doubt, it will level off, but you can be sure, we will have at least a weak open. R !
Comment by Bert — June 1, 2012 @ 4:47 am
THX BERT .. SEE I KNEW i MISSED SOMETHING!! sorry
Comment by Jeremy — June 1, 2012 @ 7:31 am