Gold has traded in a range between $1,574 and $1,588 so far today…as of 4:50 am Pacific, the yellow metal is down $5 an ounce at $1,577…Silver is 35 cents lower at $26.93…Copper is off 7 cents at $3.45, weighed down by China’s warning against curbs on the property sector…Crude Oil has retreated $1.38 a barrel to $91.28 while the U.S. Dollar Index is up one-third of a point at 83.28…
WGC Outlines Supportive Factors For Gold In Second Half
The World Gold Council, in a quarterly report on investment trends, lists a number of factors it sees as supportive for Gold in the second half of this year…the WGC says that lower global inflation in the second quarter contributed to a price pullback in the metal…however, as a result, further fiscal and monetary stimulus may mean more “debasement of currencies through unconventional monetary policy and an increased risk of future inflation,” the WGC says…underlying structural issues in the euro zone are unresolved, meaning investors may continue to seek Gold to diversify risk and preserve capital…“The flight to the U.S. Dollar as a safe-haven in the first half of 2012 could be reversed,” the WGC says…“The U.S. debt ceiling debate in Q3 and federal elections in November, followed by the necessity to confront a 1.3 trillion budget deficit, will prove challenging to the U.S. dollar…with most currencies under pressure in one form or another, Gold is likely to provide a hedging mechanism for investors”…
India Update – Gold Demand Under Pressure, Bring On The Rain
India’s Gold imports fell by over half in the June quarter with demand dampened in part by higher prices due to a weak rupee…the upcoming festival and wedding season typically ignites Gold demand in India, but offsetting that this year could be a poor monsoon season which runs from June to September…the monsoon’s slow progress across the country and below-average rainfall have heightened concerns that output of summer-sown crops may fall this year…average total rainfall so far this monsoon season is around 22% below the long-term average…deficient monsoon rains would reduce output of major summer-sown crops such as rice, sugar cane and oilseeds…if the rains fail to pick up soon, it could have a lasting impact beyond the summer season and affect even the winter season crop…it would also depress demand from rural workers for a wide range of consumer goods and deepen a slowdown in industrial growth…most of India’s Gold imports are through rural areas, so farm income is critical…on the positive side, weather forecasters are predicting a normal monsoon season in India…
France Punishes The Rich – Will Capital Flee To Friendlier Jurisdictions?
French residents with assets valued above 4 million euros ($4.9 million) will pay more than double what they had expected in wealth taxes this year, after the country’s parliament voted through an emergency measure to raise 2.3 billion euros for the cash-strapped government…the increase – known as the “contribution exceptionnelle sur la fortune” – is a stop-gap measure introduced by François Hollande, the new Socialist president, to reverse his predecessor’s move to cut the wealth tax…it is part of a series of taxes being imposed on wealthy citizens and companies that some business leaders claim will drive entrepreneurs and investors abroad…France is also planning a 75% tax on salaries above 1 million euros, although the budget minister said this would be revised once the country cleared its debt…
David Cameron, Britain’s prime minister, angered the French government recently when he said he would “roll out the red carpet” to French citizens and companies who wanted to flee its punitive taxes…
Crude Oil Chart Update
After dropping into the upper $70’s recently, Crude Oil has rebounded strongly, thanks in part to heightened geopolitical concerns (Israel-Iran, Syria)…below is an updated WTIC chart from John that shows the current bullish trend can be expected to meet strong resistance between $95 and $97.50 a barrel…
CRB Chart Encouraging For Venture Exchange
There’s a strong correlation between the CRB Index and the Venture Exchange, so the fact the CRB Index put in a double bottom in late June is very encouraging and gives us confidence that 1166 was indeed an important low for the CDNX June 26. While the CRB Index is quickly approaching a resistance area, as shown on John’s chart below, and a short pause/consolidation should be expected in the near future, a fresh advance on an eventual push through this resistance could be one of the triggers that ignites a very strong move in the Venture during this third quarter. The fact the CRB Index has broken out of a downtrend that started in March, and is in an overall much healthier technical state at the moment, definitely bodes well for the CDNX…
ATAC Resources (ATC, TSX-V)
ATAC Resources (ATC, TSX-V) announced strong drill results the other day (46.06 metres grading 11.24 g/t Au, the highest grade Gold intersection to date at the Conrad zone), and we expect this “bellwether” to do some of the “heavy-lifting” to help lead the CDNX higher over the next couple of months…John sees quite a few positives in the ATC chart at the moment as outlined below, and that’s encouraging for the Index as a whole…the $2.80 area is the key immediate technical hurdle for ATC – a move through this resistance would be a very bullish sign…keep a close eye on ATC for clues on the direction of the CDNX…
Note: John, Jon and Terry do not currently hold share positions in ATC.
Looks as if we are in for a negative opening & i don’t expect any positive news to change that, after all it’s friday..
I certainly don’t expect ATC to test the $2.80 resistance today, but it will be very positive if it does. R !
Comment by Bert — July 20, 2012 @ 4:17 am
I am doing some DD on one and waiting for a phone call from a source. I may bring this one to the board this weekend.
Comment by dave — July 20, 2012 @ 7:38 am
still not one word about the gbb results.
Comment by mike — July 20, 2012 @ 7:45 am
I sold all my GBB in previous tradings and moved to RBW… So desperate to wait for the results…
Comment by Theodore — July 20, 2012 @ 8:08 am
dave – I would appreciate that. Thanks! 🙂 PM me if you don’t want to share 🙂
Comment by Andrew — July 20, 2012 @ 8:32 am
Andrew – I actually have 2 of them. The second one I need some help on. Can you, Jon, or anybody tell me if there has been a major discovery in the past in the Northern part of British Columbia. I believe the area in reference is near Red Chris. Let me know. I got some inside poop on one last weekend. Being I’m in the States, I don’t have excellent knowledge on all the discoveries made in all parts of Canada. I have had a busy week with work and have started DD today on both of these. This second one may be better than the first. Anybody with knowledge on this board, I welcome it. I will get back to you this weekend and read all post. Thanks Gang.
Comment by dave — July 20, 2012 @ 8:43 am
Andrew – Private Mail me if you don’t want to share
Bert – Not that i would care, but no doubt, it would be considered as not being very friendly,
to find out that someone is not willing to share a stock pick with the rest of the souls
here. I thought we are one for all & all for one on this board… R !
Comment by Bert — July 20, 2012 @ 8:50 am
dave – do you mean Hole 109 at Eskay Creek, drilled in ’89?
Comment by Andrew — July 20, 2012 @ 8:54 am
Andrew – That was a long time ago. Any in the area since maybe 2006 or so. I believe Eskay creek is to the south of Red Chris (is it not) I understand this area is known for its world class discoveries. Any help appreciated.
Comment by dave — July 20, 2012 @ 9:04 am
dave – Red Chris mine is pretty close to the Alaska border. Red Cliff is a little south where Decade made a gold discovery in 2009?
Comment by Andrew — July 20, 2012 @ 9:54 am
Andrew
Hope you didn’t think i was being sarcastic yesterday, when responding to your post
re RBW permit(s). I was serious, i actually thought you had some good information.
Anyway, not going to happen today i would suggest. R !
Comment by Bert — July 20, 2012 @ 10:55 am
Bert – not at all! The information I posted was straight from the horse’s mouth. 🙂
Comment by Andrew — July 20, 2012 @ 11:04 am
dave – not sure if my links came through earlier? “I think Jon is your guy for this, dave. You may get some feedback from posting on facebook.com/northernbcmining or visiting northernbcmining.com “
Comment by Andrew — July 20, 2012 @ 11:07 am
BMR – Keep a close eye on ATC for clues on the direction of the CDNX…
Bert – Although i am a shareholder, i hate to say ATC is down 0.13, which
according to our friends at BMR, don’t bode well for the CDNX, but
i say, better days ahead. R !
Comment by Bert — July 20, 2012 @ 11:08 am
GBB is in the rim of hitting all time low 7 cents mark…. l made the decision to get rid of this stock in time… The trend of this one in the next couple of week will be the four letter word – DOWN. Unless there is a miracle, I will load up this stock now… maybe putting my 20,000 shares at 6 cents mark…. Any larger buy lots… you will see a dump…. too many placement shares in the line up… . RBW still in low volume… I have loaded NAR … waiting for some news … this one should not be 5 – 7 cents stock… GQC needs more consolidation…. perhaps, in the 85 cents range. I do not have any holdings in this one as I lost the buying chance at 58 cents.
Comment by Theodore — July 20, 2012 @ 12:34 pm
dave – don’t know if this helps?
Imperial Metals Corp. on December 10th, 2009 Results from Deep East Zone at Red Chris South:
“Drill hole RC09-350 previously reported the highest grade intercepted at Red Chris South to date (NR Nov 09/09: RC09-350 returned 152.5 metres grading 4.12% copper and 8.83 g/t gold starting at a depth of 540.0 metres). The higher grade material extends to 962.5 metres and averages 2.00% copper and 3.80 g/t gold over 432.5 metres. With all intervals assayed, drill hole RC09-349 intercepted 625.3 metres of 0.82% copper and 0.93 g/t gold starting at 390.0 metres depth.”
Comment by Andrew — July 20, 2012 @ 4:06 pm
Yes, that helps. That 152 meter of 4% copper and 8 au gold was a whopper. Also, I am familiar with Decades assays and thier great hits. I think whats his name (u know who) killed Decades chances of ever becoming something. This is kind of crazy. I had the phone call last weekend and a phone call on tuesday. 2 different stocks by 2 different people. I check out thier websites and see that they are in the same area. More over weekend. Very tired.
Comment by dave — July 20, 2012 @ 8:01 pm
dave – Bolero Resources have property contiguous to Imperial’s,”Red Chris South”.
Comment by Andrew — July 21, 2012 @ 7:42 am
RBW – Looks like management have screwed up. The problems I see are no permits a month after they were expected, so that restricts drilling and exploration for this year even when and if they do get permits. The graphite assays will be the first results, if they flunk that could drive down the SP. On the other hand RBW have done such an abysmal job at promoting their project that perhaps no one will notice. The other concern is that they say “never drilled” properties because of lack of access. If they were that appealing, its not a big deal to put in a road so is there another reason – an environmental one perhaps? If they find a sizeable resource would they ever attain environmental approval to recover it? They shut down their appalling facebook page instead of taking a few minutes to update it, embellish it and make it presentable. It could have been a good way to reach more investors. They rely on potential investors visiting their website for updates rather than putting out a news release and reaching many more players. A news release following the properties visits would have been good assuming they had visitors with clout. 🙂 I think the shareholders need to give the carefree attitude of management a shake up. 🙂
Comment by Andrew — July 21, 2012 @ 7:59 am
Andrew – as I said the other day. It’s not so much that management screwed up as the fact that they don’t know when those drill permits will come. Many investors listen to the CEO’s and rely on everything they say. How can RBW’s CEO give a date or even a time frame of when permits will come if the dept. issueing the permits will not give the CEO a date or time frame. Ya, they might say the middle of July, but they don’t know themselves until they get to it in the stack, do thier work and issue them.
Comment by dave — July 21, 2012 @ 8:28 am
dave – I understand but RBW indicated the International would be the first to be drilled, then they put out a NR that it wouldn’t and Gold Viking would be the first to be drilled and then probably Referendum. Then they put out another NR saying the International would be drilled first as the 90 day permit approval process they had been advised of would allow them to drill in the first week of July. So, I don’t understand why they don’t have the permit for Gold Viking at least, since that could have and should have been drilled a couple of months ago. There’s something amiss somewhere. 🙂
Comment by Andrew — July 21, 2012 @ 8:42 am
Andrew, with all due respect, you’re completely off the mark here, so I am going to set the record straight. Yes, RBW earlier indicated they intended to drill Gold Viking first (the reason being that snow melt was quicker at Gold Viking). Both applications (International and Gold Viking) were submitted at the same time to the ministry (early April). We all have to keep in mind that the B.C. Ministry of Mines is what it is – a bureaucracy where the wheels don’t always turn as quickly as everyone would like. General guidance from them is that permits are issued usually within 90 days. At BMR we’ve done our own DD on this process as not only do I personally have a significant share position in RBW (as well as John), but many of our readers are also following this stock. The permit process for RBW has been guided by Moose Mountain Technical Services, and Bob Morris – the head guy there – is one of the best in the business. I have absolute and complete confidence in him. The process has been very smooth with the ministry, as we understand, and the permits for the International could literally be issued any day now, followed very soon by Gold Viking. The major problem at the ministry, which has been the reason for the longer than expected delay with the permits (like with other companies), is that the ministry is short-staffed. Some companies’ applications had to be contracted out to outside consultants so the ministry could catch up on all the paperwork. All the “I’s” and all the “T’s” were dotted by Moose Mountain on RBW’s applications from what we’ve been able to determine – they are a very professional group. I think when RBW got wind that the International permit would likely be issued first, they obviously decided to switch the original order of things and drill Gold Viking second. So this has nothing to do with any screw-ups by RBW management. If I personally thought that it was, I wouldn’t have been adding to my share position recently.
Everyone’s patience will soon be rewarded. The stock has been firming up and that in itself is an indication that everything is OK (smart money is accumulating) and that August is going to be one heck of a busy month on the exploration side for Rainbow with drilling at both the International and Gold Viking. As it turns out, I think Rainbow is actually better off that the permits didn’t come earlier as markets in August and September are likely going to be stronger than what we’ve seen in May, June and July IMHO. Hope that helps to clear any confusion or misunderstanding.
Comment by Jon - BMR — July 21, 2012 @ 9:32 am
Somewhere, over the rainbow, way up high
There’s a land that I heard of
Once in a lullaby
Somewhere, over the rainbow, skies are blue
And the dreams that you dare to dream
Really do come true
Someday I’ll wish upon a star and
wake up where the clouds are far
Behind me
Where troubles melt like lemon drops,
Away above the chimney tops
That’s where you’ll find me
Somewhere, over the rainbow, bluebirds fly
Birds fly over the rainbow,
Why then, oh, why can’t I?
If happy little bluebirds fly beyond the rainbow,
Why, oh, why can’t I?
Comment by Bert — July 21, 2012 @ 10:16 am
Bert, the perfect post at the perfect time….that is absolutely fantastic…….thank you!
Comment by Jon - BMR — July 21, 2012 @ 10:20 am
Bert, I like your post … you are very entertaining… 🙂 Great One !
Comment by Theodore — July 21, 2012 @ 2:13 pm
Jon – Thank you for your comments. I agree that Bob Morris is first rate but he’s contracted by RBW and not at liberty to discuss with shareholders. I don’t think I’m completely off the mark. What I’ve stated is fact. I’m familiar with permitting processes from Provincial and Federal governmental departments and all it takes is one person in the pen pushing process to stall things. That’s taken for granted and the way around it is to identify the likely spanner in the works and address it and to also apply in advance of when you need the permit. I really do think RBW management would benefit from reviewing GR’s approach and communication skills with their shareholders. Its a learning curve for RBW but they seem slow at it, either that or they don’t care.
Comment by Andrew — July 21, 2012 @ 2:18 pm
“Over the Rainbow” sung by the late Israel Kamakawiwo’ole : http://youtu.be/7QaMv6I78Lg
Comment by Andrew — July 21, 2012 @ 2:26 pm
OK, Andrew, we’ll agree in a friendly way to disagree a bit on a couple things. You say Morris is first rate – we agree on that – and he has been the one steering the process which is about to conclude successfully. Anyway, as an investor I’m looking forward to the drilling starting shortly and that’s what’s important – getting this under way. I think it has worked out for the better starting at the International.
Comment by Jon - BMR — July 21, 2012 @ 3:41 pm
I don’t care where it starts, just as long as it starts. This play is worth at least
a nickel, once the granting of the permits & the drilling is announced. R !
Comment by Bert — July 21, 2012 @ 3:50 pm