Gold has traded between $1,562 and $1,585 so far today…as of 7:30 am Pacific, the yellow metal is up $4 an ounce at $1,577…Silver is 4 cents higher at $27.15…Copper is 2 cents higher at $3.37…Crude Oil has gained $1.37 a barrel to $80.73 while the U.S. Dollar Index is up nearly one-fifth of a point at 82.58…
Today’s Markets
Lots of green in the markets so far today, thanks to better-than-expected economic reports including pending U.S. home sales which hit a 2-year high in May…European markets are sharply higher while the Dow has gained nearly 90 points as of 7:30 am Pacific….the Venture Exchange is up slightly at 1170…
Italy’s six-month borrowing costs rose to 2.957% at auction today, their highest since December, piling pressure on the government as it pushes for concrete steps to ease market tensions at a European Union summit later tomorrow and Friday…this EU summit will be the first meeting of European leaders since pro-bailout parties in Greece won at parliamentary elections June 17…France and Italy are urging Germany to help end the debt crisis, now in its third year…German Chancellor Angela Merkel said today that there were no quick or easy solutions to end the euro zone’s debt crisis and leaders should avoid making rash promises they could not keep…addressing members of the lower house of parliament, she also reiterated her view that mutualized debt, or euro bonds, would be the wrong policy to pursue…
Most analysts see no major breakthrough coming out of this EU summit, even though there are hopes for the framework for a banking union…the summit is expected to result in a stimulus package of some 130 billion euros in infrastructure bonds, regional aid funds and European Investment Bank loans…
Positive Contrarian Indicators
Consumer nervousness over their stock portfolios is reaching an apex, which actually could mean good news for the market in the long run…the most recent U.S. Conference Board consumer confidence survey, delivered yesterday, contained an interesting nugget about worry over the state of equities…the report found that the percentage of Americans who believe stock prices are going to fall shot up from 32.4% to 42.6%… historically, that kind of a surge in bearishness over a period of a month has rarely been seen and has typically proven to be a positive contrarian indicator for the market…
Meanwhile, mutual funds focused on U.S. stocks saw another $620 million of outflows last week, according to the Investment Company Institute, which said bond funds gained a whopping $3.6 billion…
When all this money in bonds goes back into the market, look out…
Rainbow Resources (RBW, TSX-V)
After three straight days of Indiana Jones-style due diligence on Rainbow Resources‘ (RBW, TSX-V) properties in the West Kootenays, and a challenging day of travel back to the West Coast, we’re preparing some special reports on Rainbow (including an interview) which will be posted over the next several days…suffice to say, the International Silver Property is a first-rate exploration target that holds very strong potential for a near-term significant discovery along a defined 1.2 km-long northwest trending mineralized structure (parts of which were mined for high-grade Silver, lead and zinc in the early 1900’s from near-surface) as drilling gets set to commence…this is a 4,000 hectare land package that has never been previously drilled due to access issues…during the site visit we also noticed promising potential new areas of mineralization well beyond the known vein system…language in various geological reports on the International has been very bullish yet no drilling has ever occurred – that in itself speaks volumes about Rainbow’s chances for success…they are, indeed, drilling into a “honey zone” – and this particular area makes up only a fraction (1-15th) of the vein system that was surveyed by the B.C. government in the early 1900’s (and it’s open in all directions)…this a fascinating geological story that – we can assure our readers – is going to get increased media/newsletter exposure due to Sunday’s initial site visit that RBW stated was simply a test run for larger visits planned for when drilling is under way…
We have a slide show we’re working on but for now, two additional pictures from the International…
RBW President David W. Johnston looks up from the road toward the area where drilling will commence at the International. Holes will be angled directly into an exposed vein structure - an impressive "wall" up to as much as 7 to 8 feet high and approximately 300 feet long, featuring fine-grained galena (typically rich in Silver content), pyrite and rare sphalerite.
Samples from the "wall area" - galena is widespread.
Cadillac Mining (CQX, TSX-V)
Initial assay results from a new round of drilling at Cadillac Mining’s (CQX, TSX-V) Goldstrike Project in Utah are due shortly…we’ve been bullish on this project since Cadillac acquired it in January, 2011, and results from a 3-hole orientation program released in late February were highly encouraging…Goldstrike features a dozen past producing (Gold and Silver) open-pits…based on historical mining activities, as well as the structural setting and style of mineralization, the Goldstrike property covers what could be a large mineralized system…technically, CQX continues to look strong in a challenging overall market environment…with a current market cap of approximately $7 million and a tight share structure, CQX continues to have strong upside potential if drill results continue to be positive…
Great Atlantic Resources (GR, TSX-V)
Please note that Greenlight Resources (GR, TSX-V), which we have been following since early this year, has recently changed its name to Great Atlantic Resources though the trading symbol has remained the same…
GR has assembled a strong portfolio of properties in mining-friendly and resource-rich New Brunswick with a focus on antimony, tungsten, graphite, base and precious metals…President and CEO Chris Anderson is bright, aggressive and hard-working – a rising star among his peers in the industry, so this is definitely a company w0rth some serious due diligence as it has outstanding long-term prospects in our view…GR has also out-performed the Venture this year with the stock closing yesterday at 12.5 cents…below is an updated 2.5-year GR chart from John that shows very encouraging patterns…
GoldQuest Mining (GQC, TSX-V)
GoldQuest Mining (GQC, TSX-V) has been consolidating recently, as expected, with the stock closing yesterday at 61 cents…the recent RSI overbought condition has cleansed itself, so all GQC needs now is more positive drill results from its Romero discovery in the Dominican Republic…the current drill program, which started early this month, is testing lateral extensions to the north, south, east and west of discovery hole LTP-90 with short step-outs…as the market waits for news, expect the stock price to bounce around in a fairly narrow range based on technicals…there is very strong support in the 50-cent area as John shows in this updated 2-month daily chart…
Note: John holds share positions in RBW and GR. Jon holds positions in RBW and GQC.
Thanks for the update on CQX- Cadillac, am eagarly waiting the next round of drill results, with the tight share structure if results are steller could see this possibly hitting 80 cent range easily, especially if price of Gold cooperates on day of news release. Would be intesting if you could pull off an interview with a veteran like Victor Erickson,from my times chatting with him, he is the real deal and tells it like it is. I own many companies but he is right up there with a select few whom I feel really look out for the shareholder. Once again thanks BMR for bring CQX along with other gems to the forefront, you guys run a great sight here !!! KD
Comment by KD — June 27, 2012 @ 8:39 am
yup they run a great site like pumpin rbw in the 0.20 range real good.thnx again bmr for the loss,shame on them they knew better,imminent my ass.
Comment by Gerry — June 27, 2012 @ 9:19 am
Gerry, you are a fool. Blaming others for your losses. Feel sorry for anyone who has to deal with you on a daily basis…
CQX-Vic (CEO) has said news before end of June so there must be something soon. If not this week, probably next.
Comment by db — June 27, 2012 @ 10:16 am
Hi Jon, Ihave a question re gqc, I came acroos this statement on a blog which i puy credence in and as a rank amature I wonder if you could interpret for us. The comment is as follows, gqc 1st hole hit post mineral fault at 80 meters and thus its being re-drilled a few meters away. What is post mineral fault? richard ps thanks very much for rbw info.
Comment by richard l — June 27, 2012 @ 10:36 am
Richard – while you await a reply from Jon you may find this paper interesting “Interpretation of Effects of Faults on Veins” by, J.H.Eby, Mining Engineer, Spokane, Washington:
vetmed.wsu.edu/org_nws/NWSci%20journal%20articles/1927-1939/1939%20vol%2013/13-2/2008-02-06/v13%20p46%20Eby.PDF
Comment by Andrew — June 27, 2012 @ 10:45 am
A post mineral fault, separate from the original mineralizing event, is a displacement of rock that can cause uplifting/movement/shifting of a mineralized zone….so that’s why re-drilling might take place in order to intercept the intended target…..I know there has been some uplifting at Romero but I’m not familiar with the specifics you’re mentioning……..
Comment by Jon - BMR — June 27, 2012 @ 10:49 am
Congrats bmr 0.14 0n rbw keep up the good work my last post on this worthless board what a screw up Jon you suk.
Comment by Gerry — June 27, 2012 @ 12:06 pm
Gerry – don’t get too upset – RBW will continue it’s slide sub $0.10 – as things stand, they have nothing but prospects, which this market is not going to pay anything for. This will bleed about a 1000 shares at a time until they find resources at their properties – they haven’t even announced the commencement of drilling! Buy more below $0.10 when the ventures retest their near all-time
lows. 1000 around the corner
Sorry for the doom and gloom people, but my piece above should come in handy on bearmarketrun.com.
Comment by Alex — June 27, 2012 @ 12:24 pm
RBW … the gap 13 cents may be filled soon but it will be a quick one. When the volume comes back, it is going to fly…. I do not think that it will go back to 10 cents. For this low low volume, I have nothing to worry about. In fact, it is a good time to scoop more as some people will dump their shares when they cannot stand the slow market. GBB dropped to 9 cents with a low volume … the big buy lot at 9 cents may be filled. I am putting my buy lot at 9 cents and I am pretty sure, it will rebound to 11 cents. Of course, this will be a short term or even a day trade. SFF is still a good stock to hold as it has good potential to go back to the 20s. I am holding a portfolio in GBB and RBW.
Comment by Theodore — June 27, 2012 @ 12:50 pm
Thank you Andrew and Jon for your prompt reply. I am holding a small position ib gcq and will wait for results. Richard. I am in the school of thought which believes that evevtually the euro will fail and a new european currency will be backed to some degree with gold. Richard
Comment by richard l — June 27, 2012 @ 2:43 pm
The big question is whether the GQC discovery at Romero is flat lying or not. If it’s flat lying (as other deposits are in this general area), then that’s very encouraging and the stock will respond accordingly. So the current holes being drilled should help answer that.
Comment by Jon - BMR — June 27, 2012 @ 2:49 pm
Jon, GQC annual meeting is tomorrow. Does not mean there will be news but perhaps something will be said.
Comment by George Wohanka — June 28, 2012 @ 5:29 am
Jon, a poster said Coffin stated that the first hole had hit a post mineralized fault. Not understanding the implications I did a search. This helps but frankly still in the dark and especially how moving the location a few meters helps resolve or accomplish anything or even what they hope to accomplish.
docs.google.com/viewer?a=v&q=cache:-9t5f2N-fJYJ:
vetmed.wsu.edu/org_nws/NWSci%2520journal%2520articles/1927-1939/1939%2520vol%252013/13-2/2008-02-06/v13%2520p46%2520Eby.PDF+post-mineral+fault&hl=en&gl=us&pid=bl&srcid=ADGEEShn7pan6hB-d-P-oY6I9rrFfnAiATxU5L6N60v64u8_lgM9buGZvpPxR9QW7Jt7Tno7-zU-4XyRRS-JKVXH2_e4wUWU10gfbVlSnEXWMd-3F-rMrJz9C3S4In9W39Lk7AP2Y2qv&sig=AHIEtbQymHbomoMZG2pjwrfemmuG64Wy6A
This link works and you obviously can delete the whole thing if you want to.
Comment by George Wohanka — June 28, 2012 @ 5:38 am