Gold has traded between $1,627 and $1,635 so far today…as of 4:30 am Pacific, the yellow metal is up $2 an ounce at $1,630…Silver is up 8 cents at $28.82…Copper is flat at $3.40…Crude Oil is off 18 cents at $83.09 while the U.S. Dollar Index is down slightly at 81.74…
Today’s Markets
Asian markets weakened slightly overnight with Japan’s Nikkei retreating from the 1-month high it hit Monday as the initially positive reception for a pro-bailout party victory in Greece was dampened by concerns about Spain’s banking sector and fiscal health…European shares, however, are modestly higher this morning while U.S. stock index futures as of 4:30 am Pacific are pointing toward a slightly positive open on Wall Street…
All Eyes On Bernanke And The Fed – Goldman Sachs Predicts New Easing Measures
Goldman Sachs believes the U.S. central bank will most likely decide to ease monetary policy after it meets today and tomorrow as recent data point to a worsening labor market while the euro zone debt crisis continues…according to a report by Jan Hatzius, the investment bank’s chief U.S. economist, the FMOC will likely say it would buy assets such as mortgage-backed securities and U.S. Treasurys…the Federal Reserve may also extend Operation Twist, he added, although he does not find the “strategy very attractive”…the program – which involves the Fed selling medium-term bonds and using the proceeds to buy longer-term ones, such as 10-year Treasurys, effectively driving down longer-term interest rates – runs out at the end of this month…“We believe that an extension of Operation Twist could well be insufficient on its own and could thus be followed by additional easing action before long,” Hatzius said…“We would be quite surprised if we saw no easing this week,” Hatzius wrote in the report…
G-20 To “Take All Necessary Policy Measures” To Safeguard The Euro
The euro zone members of the Group of 20 leading economies will pledge today to “take all necessary policy measures” to safeguard the single currency, according to leaked drafts of the summit communiqué obtained by the Financial Times…in a statement that will paper over the considerable differences in policy positions within the euro zone and among other G20 countries, the Group has agreed to take action to generate growth and restore confidence “based on country-specific circumstances”…
According to the Financial Times, the G20 will state: “The euro area member states at the G20 will take all necessary policy measures to safeguard the integrity and stability of the euro area, including the functioning of financial markets and breaking the feedback loop between sovereigns and banks”…
VIX Breaks Down
John’s technical call on the VIX (Volatility Index) last month proved to be bang-on as it topped out in the upper-20’s and then formed a head-and-shoulders pattern…it finished at 19 yesterday, breaking below support at the neckline, and is likely headed lower with a target of 15…this bodes well for the equity markets, at least for the near-term…
TSX Gold Index
The TSX Gold Index continues to look very strong (it closed up 7 points yesterday at 329 on strong volume) which suggests Gold has a good chance of pushing higher in the days ahead…
The Venture Exchange is not leading the Gold Index at this point, which is what we’d like to see happen, but the Venture is nonetheless following behind and trying to keep up…the Venture gained 9 points yesterday to close at 1260…an easing move by the Fed tomorrow would likely ignite a rally and propel the Index through the 1300 level…
Rainbow Resources (RBW, TSX-V)
It appears Rainbow’s drilling plan for the International Silver Property has been accepted by the B.C. Ministry of Mines as Rainbow disclosed on its web site last night that it has posted a reclamation bond for the International with drilling “imminent”…this is very encouraging news and suggests RBW’s Big Strike drill program will commence at the flagship International as opposed to the Gold Viking Property…multiple shallow holes to depths of approximately 100 metres are expected to be drilled at the International into an exposed vein structure with the exploration target being high-grade Silver…this is a property with a strong chance of a drilling discovery…it has never been previously drilled due to access issues which have been resolved in recent years…Rainbow will be drilling directly into a “honey zone” – known structures containing weak to massive galena, pyrite and rare sphalerite…the International vein system was surveyed by the B.C. government over a minimum true strike length of 1.2 kilometres in the early 1900’s following an important Silver discovery…reported grades from artisanal mining have been spectacular along with sampling results from Rainbow and privately-held Braveheart Resources which began work there in 2006…several technical reports have already been produced on the property…the International is one of the most prospective un-drilled properties in British Columbia and we’re looking forward to a site visit this coming Saturday…
Argex Mining (RGX, TSX-V)
John’s chart last Friday on Argex Mining (RGX, TSX-V) showed a bullish trend, and indeed the stock took off yesterday as it broke out of a six-week horizontal channel and jumped 13 cents on strong volume…
Another Takeover
Yamana Gold (YRI, TSX) has entered into a definitive agreement with Extorre Gold Mines Ltd. (XG, TSX) whereby Yamana will acquire all of the issued and outstanding common shares of Extorre for $3.50 in cash and 0.467 of a Yamana common share…Extorre jumped nearly 70% yesterday on the news…its most advanced project is Cerro Moro, a high-grade, Gold-Silver deposit with approximately 1.36 million ounces of Gold equivalent indicated mineral resources and 1.05 million ounces of Gold equivalent inferred mineral resources, located in the province of Santa Cruz in Argentina…
Lumina Copper (LCC, TSX-V) could be next in line in Argentina to be taken out…it climbed another 29 cents yesterday to $9.19…
Hey John/Jon…. the COT data says shorts are increasing… Goldman is ‘predicting’ more stimulus, most are prediciting the same thing… HUI up on marginal gold movement suggesting a move up for gold in the next few days…
because ‘everyone’ is suggesting more stimulus, which typically means higher gold $$, the COT is suggesting not….
would the COT be telling us that the big boys have hedged their bets on the short side to protect their long side at this ‘particular’ juncture we find ourselves in???
it is bothersome that ‘most’ are thinking the same thing… normally means that the opposite will happen…
Comment by Jeremy — June 19, 2012 @ 4:50 am
Company News Alert
Gold Bullion announces additional positive drill data update (cnw)
VANCOUVER, June 19, 2012 /CNW/ – Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is pleased to announce additional drill results from several holes located throughout the mineralized area of the Granada Gold Property. The subject property is located along the prolific Cadillac trend in northwestern Quebec, 5 km south of the city of Rouyn-Noranda.
Of the 17 holes, 14 reported significant gold mineralization with hole GR-11-389 at 0.53 g/t Au over 95.0 metres from 72.0 metres to 167.0 metres confirming continuity of the mineralized package near surface inclusive of three discrete higher-grade zones. Hole GR-11-389 was drilled in the Southeast direction to confirm mineralization and assist in the exact positioning of the NNE fault displacing the mineralized blocks between sections.
These assay results are from the 2011 drill program and continue to demonstrate low-grade, high tonnage, near surface intersections while confirming specific high-grade zone at depth with thickness and grade suitable for underground mining.
Highlights include GR-11-260 with 4.87 g/t Au over 3.89 metres at depth while near surface hole GR-11-272 reported 0.39 g/t Au over 129.0 metres from 112.0 metres to 241.0 metres. Gold Bullion’s CEO Frank Basa is very encouraged by results that consistently demonstrate the presence of widespread significant gold mineralization on the Granada property. Further details on the mineralized holes inclusive of substantive drill data are summarized in the table below.
Hole From (m) To (m) Length(m) Au g/t
GR-11-260 382.50 386.39 3.89 4.87
GR-11-272 112.00 241.00 129.00 0.39
including 112.00 135.00 23.00 0.89
including 112.00 115.00 3.00 4.64
including 171.00 178.50 7.50 0.56
including 199.50 241.00 41.50 0.53
including 204.00 223.50 19.50 0.81
GR-11-274 58.00 63.50 5.50 0.54
GR-11-276 133.50 166.50 33.00 0.40
including 133.50 139.50 6.00 1.43
GR-11-298 171.50 253.50 82.00 0.59
including 205.50 223.50 18.00 1.03
including 241.50 253.50 12.00 1.67
GR-11-298 336.00 339.50 3.50 4.01
GR-11-304 177.00 217.50 40.50 0.45
including 177.00 181.50 4.50 0.73
including 213.00 217.50 4.50 2.97
GR-11-355 23.50 31.47 7.97 0.82
GR-11-355 90.10 123.50 33.40 0.56
including 114.00 122.00 8.00 1.75
GR-11-356 6.00 51.00 45.00 0.31
including 6.00 15.50 9.50 0.54
including 34.60 51.00 16.40 0.40
GR-11-356 102.00 111.20 9.20 0.59
GR-11-365 54.50 73.00 18.50 0.63
including 54.50 66.00 11.50 0.91
GR-11-365 140.00 154.00 14.00 0.54
GR-11-366 45.00 58.50 13.50 0.34
GR-11-366 144.50 223.50 79.00 0.58
including 155.50 180.00 24.50 0.81
including 168.00 180.00 12.00 1.28
GR-11-366 193.00 213.00 20.00 0.95
including 202.00 213.00 11.00 1.34
GR-11-371 53.00 60.00 7.00 0.39
GR-11-373 272.50 320.60 48.10 0.47
including 272.50 278.00 5.50 1.71
including 314.00 319.20 5.20 1.70
GR-11-374 192.00 216.00 24.00 1.14
including 199.50 205.15 5.65 4.08
GR-11-389 72.00 167.00 95.00 0.53
including 120.00 148.00 28.00 1.21
including 136.00 148.00 12.00 2.38
including 142.00 148.00 6.00 4.39
Only three holes, GR-11-364, GR-11-251 and E-11-06 did not cut significant mineralization as follows: GR-11-364 was northwest and too short to intersect the zone while both GR-11-251 and E-11-06 were intended to test the Eastern extension and may not have been suitably located to cut the zones due to the NE shift of mineralized blocks caused by the NNE Faults.
Additional assay results are pending and will be released as they become available.
Claude Duplessis, Eng. is acting as the qualified person (QP) for Gold Bullion Development Corp. in compliance with National Instrument 43-101 and has reviewed the technical contents of this press release.
Investor Relations Agreement Terminated
The Company also announces it has provided 30 days’ notice to terminate, effective July 15, 2012, the Investor Relations Agreement dated September 10, 2009 wherein Progressive IR Consultants Corp. of Vancouver, British Columbia, was engaged to provide investor relations services to the Company.
Comment by John - BMR — June 19, 2012 @ 5:14 am
GBB – Nothing to write home about here, but ecouraging nonetheless. Its going to take some fresher info to make this puppy bounce.
Comment by Ack — June 19, 2012 @ 6:40 am
Jeremy, you’re right, commercial shorts have gone up somewhat since the end of May but the overall COT structure for Gold is still not bearish – neutral at this point would be the best description. I think the market (stocks, gold) in recent trading days is factoring in some new easing measures from the Fed, or at least a continuation of the current program beyond the end of June. That being said, the Fed needs to deliver tomorrow…….
Comment by Jon - BMR — June 19, 2012 @ 6:50 am
Jon- when is your visit to International?
Comment by db — June 19, 2012 @ 7:11 am
Nevermind…..saturday
Comment by db — June 19, 2012 @ 7:12 am
It is almost done for GBB… I am not interested to hear about their drill results now… no bounce … With over 200 millions shares outstanding… the stock is more diluted…
Comment by Theodore — June 19, 2012 @ 9:07 am
thx Jon.. appreciated…. as some have speculated…. the big boys may know spmething we dont.. oh surprise!!:)
Comment by Jeremy — June 19, 2012 @ 9:42 am
CEV – finally has some signs of life this afternoon, best volume in a month.
Comment by Andrew — June 19, 2012 @ 10:50 am
and its wide open to 60c …CEV that is
Comment by db — June 19, 2012 @ 11:06 am
Thanks db and after .60 its currently clear to .86 🙂
Comment by Andrew — June 19, 2012 @ 11:12 am
Yes- maybe it is time to get back in…Ill see what tomorrow brings…
Comment by db — June 19, 2012 @ 11:33 am
Hey Everyone- Ive mentioned this one before but I really urge you guys to do some serious DD on this one….AOX.V. This one is so under valued right now its sick. I know many are in this position but like I said, a little DD and you will be excited at the potential. Heres a link to a MAY17th Corproate Presentation on youtube
Watch on Youtube… “Andover Mining Corp’s 2012 Corporate Presentation – Gordon Blankenstein, CEO & Chairman”
Its 25min and will give you much info on AOX moving forward. There is no gain in it for me if others invest but I like to see others do well just as I do myself. Good Luck All!!
Comment by db — June 19, 2012 @ 1:33 pm
AOX seems to have a very good upward potential… I will buy some tomorrow…. hopefully, it will not go beyond my buy price…
Comment by Theodore — June 19, 2012 @ 6:01 pm
CEV – My resistance chart shows .51 – then .56?
I still have not received the phone call yet. There was a small house that started the buying and bought a lot but they are not the important house.
Comment by dave — June 19, 2012 @ 7:48 pm
GBB release a news release and ….the share price goes down – how familiar!
Comment by Hugh — June 20, 2012 @ 4:15 am
Any comments about James Borland joining VGN? I see the directors are awarding themselves some more stock options, nice work if you can get it!? Surprised to see them bother to offer a corporate update at all, not like them at all to communicate with shareholders
Comment by Hugh — June 20, 2012 @ 4:28 am
Dave- still waiting for “the call”? I’m happy to be back in, even if it may be a ill early. If we can close out the next 3 days green they this thing is def in reversal. If not I’m still in around mid 40s which will pay off nicely over time. Last yr I played this from 30s to 120s. Hoping for the same again this yr…
Comment by db — June 20, 2012 @ 6:48 am