Gold is getting knocked around again today on a “risk-off” today in the markets…as of 8:00 am Pacific, the yellow metal is down $20 an ounce at $1,710…Silver is 58 cents lower at $31.87…Copper is off a nickel at $3.57…Crude Oil has retreated $2.41 a barrel to $86.24 while the U.S. Dollar Index has climbed nearly half a point to 79.98…
Gold’s drop is nothing to fear – it’s in a normal retracement mode and, based on John’s typically very accurate readings, the bottom is somewhere between the low $1,640’s (worst case scenario) and $1,700 – around current levels – as he shows in the chart below…
Today’s Markets
China’s Shanghai Composite fell 18 points or just under 1% overnight as traders were cautious ahead of tomorrow’s “flash” survey of the manufacturing sector – the next important clue in revealing whether the world’s second-biggest economy can avoid the hard landing that some analysts fear…European stocks were pressured overnight on fresh worries about Spain’s economic health…Spanish bond yields rose today on reports Spain’s central bank said the Spanish economy contracted by 1.7% in the third quarter, on an annual basis, versus the 1.3% contraction in the second quarter…the central bank also said Spain may not be able to meet its deficit targets…in addition, Moody’s has further downgraded sectors of the Spanish economy…the euro weakened on the Spain news…
North American markets are in the red today, thanks in part to some disappointing earnings…the Dow is in danger of posting its fourth triple digit loss in the last 11 sessions…as of 8:00 am Pacific, it’s off 236 points at 13110…the TSX has declined by over 200 points while the Venture Exchange has fallen 22 points to 1286, just slightly below its rising 50-day moving average (SMA)…
So consider this is a GREAT day because it’s bargain-hunting time…
Huldra Silver (HDA, TSX-V)
We’ve written often about Huldra Silver (HDA, TSX-V) over the last number of months as this is a tremendously well-run company that has fast-tracked production at its high-grade Treasure Mountain Silver Property near Hope, British Columbia…a picture tells a thousand words, and we encourage our readers – as part of their due diligence – to check out the gallery section on HDA’s web site as it contains nearly 100 pictures…Treasure Mountain is the nearest mine to Vancouver (a 3-hour drive), which certainly gives Huldra some advantages in attracting skilled labor, and currently contains NI-43-101 indicated and inferred underground resources of over 4 million ounces of Silver…high-grade forgives all sins, and Treasure Mountain’s grades are close to 30 oz/t Ag and 7-8% combined lead and zinc…the property still has very strong exploration potential with many untested targets, and mine workings open on strike and at depth for resource expansion…mine development has been completed and mining operations are underway (the company trucks material to its mill in Merritt, only an hour away)…the stock has heavy institutional ownership and appears ready to roll out its story to the retail sector…with only about 45 million shares outstanding, including the latest financing ($1.35) which is in its final stages, Huldra’s market cap is approximately just $60 million based on yesterday’s $1.40 closing price…
Now that it’s just entering production, one can only imagine what Huldra could do if Silver prices were to really take off as we suspect they will in the coming months…
Below is an updated Huldra chart from John…note the big volume increase in the stock the last couple of trading sessions…it’s holding up well in early trading today, currently unchanged…
CMC Metals (CMB, TSX-V)
A low-priced, potential near-term small-scale Gold producer we continue to follow is CMC Metals (CMB, TSX-V) which is looking good on the charts even though it’s hovering near its all-time lows…the permitting process for CMC’s Bishop Mine in California has taken longer than expected but appears to be on track for completion before the end of the year…CMC closed yesterday at 13 cents after hitting an intra-day 52-week low of 9 cents…this one could be a “sleeper” for 2013…below is a 2.5-year weekly chart from John…
Orko Silver (OK, TSX-V) Chart Update
CB Gold Inc. (CBJ, TSX-V)
Another Colombian play that is looking strong, and worth keeping an eye on, is CB Gold Inc. (CBJ, TSX-V) which has climbed 14 cents the last three trading sessions…as of 8:00 am Pacific, CBJ is unchanged at 94 cents…
Note: Jon holds a share position in HDA.
BMR, In reading the HDA September 12 corporate update they state that the are looking for acquisition targets post cash flow. Could the international property be on thier radar should the drill results prove positive?
Comment by Paul — October 23, 2012 @ 7:55 am
I have added tme to my one person stock contest my portfolio now has rbw azx cgj mgp spm ws me in it selling at 22 cents with a target of 95 cents market cap of 35 million 3 million ounces of gold in the ground and soon to add more 4th largest land position near major producing mines I consider t.me a BESTBUY a SAFEWAY to invest SAVE-ON t.me today when markets are down time to OVERWIEGHT T.meplease forgive me for injecting a little humour in my last stock pick
Comment by gil — October 23, 2012 @ 9:26 am
Everton Resources just put out some great news! It should bode well for future share appreciation.
Comment by Steven — October 23, 2012 @ 10:54 am
bmr,with the news from evr today,in your opinion would this make them more attractive for a takeover,provideing of course on their results on drilling,which not much has been said as of late..re;INTERVIEW..thx.
Comment by tom — October 23, 2012 @ 3:35 pm
sorry i asked twice,good thing i know what im doing in my super b transport truck.
Comment by tom — October 23, 2012 @ 3:48 pm
What this sets the stage for is a deal between Everton and possibly a major on exploration of the APV Property at least…….it has some terrific targets but requires deep drilling and a big budget…….so EVR is going in the right direction here and it was important to get this step completed…….
Comment by Jon - BMR — October 23, 2012 @ 4:25 pm
Huldra is a going to become a great production success story in British Columbia, and that’s positive for all players in the mining sector there – and also points to the potential of high-grade Silver mining in the province. I’m sure they’re watching what all aggressive exploration companies are doing in B.C., including RBW. Yes, Huldra is looking for acquisitions but I believe in the context of providing near-term feed for their mill in Merritt……..so another deposit within an hour’s drive or so, which puts the International out of range for that kind of a situation. If an important silver discovery is made in the southeast part of the province, however, in RBW’s territory, I’m sure Huldra would be paying very close attention. There are some geological similarities between Treasure Mountain and some southeast BC silver deposits, so what Huldra has learned at Treasure Mountain can be applied elsewhere.
Comment by Jon - BMR — October 23, 2012 @ 4:41 pm
Huldra Silver signs lead, zinc purchase deals Ticker Symbol: C:HDA
Huldra Silver signs lead, zinc purchase deals
Huldra Silver Inc (C:HDA) Shares Issued 43,742,290 Last Close 10/23/2012 $1.38 Wednesday October 24 2012 – News Release
Mr. Ryan Sharp reports
HULDRA SILVER ANNOUNCES ENTRY INTO LEAD AND ZINC CONCENTRATE PURCHASE AGREEMENTS
Huldra Silver Inc. has entered into a lead concentrate purchase agreement with a smelter whereby Huldra has agreed to sell approximately 1,000 to 2,000 dry metric tonnes until March 31, 2013 (initial term). The company also wishes to announce that it has entered into a zinc purchase agreement to sell approximately 1,000 to 2,000 dry metric tonnes until March 31, 2013 (initial term). Payments are tied to bimonthly prices for lead, zinc and silver as published by the Metal Bulletin, less certain deductions.
The contract is based on expected metallurgical samples from the 10,000-tonne bulk sample with the lead concentrate expected to grade 66 per cent Pb and 242 ounces per ton Ag, and the Zinc concentrate assaying 55 per cent Zn. The actual shipments may vary from these levels and the payable amounts may increase or decrease.
Comment by db — October 24, 2012 @ 6:04 am