Gold is trying to regain its footing after being smacked down slightly below $1,700 yesterday…as of 4:45 am Pacific, the yellow metal is up $8 an ounce at $1,705…Silver is 20 cents higher at $33.11…Copper is up another penny at $3.64…Crude Oil has gained 20 cents at $88.70 while the struggling U.S. Dollar Index has rebounded more than one-tenth of a point to 79.78…traders said that heavy selling from global macro funds, options activity and year-end tax selling – some related to the looming hike on dividend taxes associated with the so-called “fiscal cliff” – helped to weaken demand for bullion…
Obama To Lobby Business On U.S. Debt Limit
President Obama will seek to enlist senior corporate executives in his bid to permanently increase the U.S. borrowing authority as part of the negotiations over the fiscal cliff, according to the White House…the President is expected to ask business leaders at the quarterly meeting of the Business Roundtable lobby group today for their help to persuade Republicans on Capitol Hill to find a solution to avoid a debt ceiling crisis like the one that engulfed the nation last year…Congress will probably have to vote to increase the debt ceiling early next year or risk putting the U.S. in default, opening the door to another potential stand-off between the White House and Republican leaders…a prolonged fight over an increase in the debt ceiling last year ultimately ended up in the U.S. losing its Triple A credit rating…
Chinese Property Sector On The Mend
The Wall Street Journal reports this morning that several large Chinese property developers reported stronger sales for November, in a fresh sign that the sector is on the mend even as Beijing vows to keep a firm grip on the market…analysts said demand remains fairly strong and many developers are scrapping or cutting back on special discounts that were introduced when the housing market was struggling late last year…China’s housing prices have remained largely unchanged since the beginning of the year, though sales have been creeping up since June, aided by government policies that favor first-time home buyers and improve access to funding for developers…
Today’s Markets
Asian markets (overall, now at a 16-month high) were very strong overnight, led by China’s Shanghai Index which surged 57 points or nearly 3% to 2032…investors cheered comments from new Communist Party chief Xi Jinping that set his economic agenda ahead of the party’s central economic planning meeting this month…he listed tax reform, urbanization and allowing the market to play a bigger role in setting resource prices as among his priorities…European markets are up modestly while as of 5 am Pacific, futures in New York are pointing toward a positive open on Wall Street…the Venture Exchange slipped below the 1200 level yesterday, closing at 1193, but on light volume…critical support, as John has outlined, is 1165…
U.S. Dollar Index Chart Update
The drop in Gold occurred yesterday despite continued weakness in the greenback which has hit a 6-month low against the strengthening euro as the European debt crisis seems to have at least stabilized…the Dollar Index appears to have formed, or is forming, a head-and-shoulders top with RSI(14) currently at 44% and moving lower as shown in John’s 2.5-year weekly chart…the neckline is at 79 where the Index should find support, at least for now…
Rainbow Resources (RBW, TSX-V) Update
It took about an hour to fully digest it, but Rainbow finally delivered some meat to investors yesterday…a portion of it didn’t taste so good, but most parts were definitely tasty enough to convince us to stick around for the desert – whether that’s sooner or later…the not-so-tasty part, of course, was the International and we’ll comment on that first before getting to the juicy Jewel Ridge meat that we had some fun sinking our teeth into…what could be developing at Jewel Ridge is much more significant than we first imagined given specific geological details in yesterday’s news and an important “clue” that most investors may have overlooked…
With regard to the International, there’s no way to sugar-coat this though Rainbow (annoyingly to some) tried its best yesterday – the assays were surprisingly horrible, as simple as that, and we have some tough questions for David W. Johnston when we do our next interview with the Rainbow President…his grab samples don’t seem as shiny as the stars anymore with top results from shallow drilling coming in at 14 and 10 grams per tonne…sorry, David, no matter how you “spin” that one the math doesn’t add up…the Cabin showing was impressive at surface but Silver values just didn’t carry in the vein as hoped for and expected, but that’s also the nature and risk of exploration…mind you, if Rainbow thought for even a minute that the “Forgotten” claims further north were a better target, then that’s where they should have drilled first even if meant waiting for another year (for access purposes) to carry out the drilling…the best way to kill a property is to drill it, so it’s important to go after the best target(s) first…the International, however, remains a very credible property…major deposits around the globe have been overlooked simply because a company walked away from a property way too early after just a few bad or mediocre holes…the International has a potential 7-kilometre strike length and a known vein structure…somewhere along that structure could be a near-surface, high-grade deposit…or perhaps a deposit that’s deeper down…only a tiny fraction of the property has been tested, so we’re certainly not ready to write it off despite disappointing initial results…up until this summer, there had never been any drilling at the International…less than 800 metres now is like a drop in the bucket…
Investors also have to keep in mind that the International is only one of 8 properties Rainbow holds in its Big Strike Project…one of the major reasons we were attracted to Rainbow in the first place was the fact there’s a basket of opportunities for this company – it isn’t just a one-trick pony – in a proven mining district in British Columbia…Rainbow is also aggressive, and when a company is aggressive there will be some mistakes and misses on the ground…too many companies in this market right now are hiding their collective heads in the sand, afraid to do any work, unwilling to take any risks, and too lazy to do what it takes to make something happen for shareholders…Rainbow is not in that category…we give them credit as well for intelligent work in becoming the second largest landholder (they could joint-venture this) in the Slocan Valley flake graphite region which we believe could develop into a world class camp in the coming years…privately-held Eagle Graphite is a producer there…
Before we get to Jewel Ridge, there does appear to be some glimmer of hope for potential good results yet to come out of Gold Viking…Rainbow did hit some interesting Silver values right near the surface in just the second hole ever drilled at that property – 45 g/t over 4.6 metres which included two 1-metre intercepts that have been sent back to the lab for fire assay analysis…often in a case like this, the grade comes back higher…so what was 45 g/t Ag over 4.6 metres has a decent chance of improving to 75 g/t Ag or even better…results are pending for 10 more holes…will Rainbow hit something that’s much more significant than Hole #2?…that’s what we’ll find out in the coming weeks…geologically, RBW is in a very prospective area which is also just 8 miles south of the Willa deposit which Discovery Ventures (DVN, TSX-V) is aiming to put into production…
There’s no question Jewel Ridge has emerged as Rainbow’s “Crown” Jewel, and that’s an important development given the fact the company is still in the midst of trying to make a discovery at one of its properties in the Kootenays…RBW has completed a 6-hole drill program at Jewel Ridge in Nevada, and each of the 6 holes has intersected “favorable mineralized zones” at the past producing property…descriptive language like “intense silicic alteration with considerable jasperoid content” and a hole that has “strong affinities” to an historical hole that assayed 2.1 g/t Au over 39.6 metres suggests to us that Rainbow has a great chance of reporting some excellent assays in the near future…also, the fact they’ve cut a deal to secure 19 patented claims in an area where they’ve made a prospecting discovery – before any assays are in – strongly suggests they know they have found or drilled something of significance…
Some other things also caught our attention including a “conceptual geological model” that is being produced for Jewel Ridge…Rainbow is in possession of hundreds of historical drill holes for Jewel Ridge, so it’s quite possible they may feel confident enough to soon come out with some sort of preliminary estimate of potential tonnage and ounces for this property…mineralization, Rainbow reported, “appears to be continuous along multiple contacts over a north-south trend of at least 4 kilometres”…this is of course lower-grade mineralization in the context of the type of deposits in this general area, but tonnage can add up in a hurry with these systems…
Getting back to the point regarding Rainbow’s purchase of those 19 claims, we found it interesting that the words “100% ownership” were used in reference to those claims with Rainbow pointing out that “these are not part of the Company’s joint-venture Jewel Ridge option agreement with Greencastle Resources Ltd.”…this is just speculation on our part, but given that language, Rainbow’s recent heavy emphasis on Jewel Ridge, and the possibility of good results, we wouldn’t be surprised if Rainbow is contemplating 100% ownership of the entire Jewel Ridge package by cutting a new deal with Greencastle…markets generally prefer 100% ownership situations to joint ventures, so a move like that by Rainbow would make sense from their standpoint and would potentially be quite significant in terms of overall “valuation” of RBW…
So while the International news wasn’t what we were expecting, Rainbow has put all of its cards on the table and they still hold a very good hand in our view…assays for 16 more drill holes are pending (B.C. and Nevada), and our level of confidence in the Jewel Ridge Property has increased substantially…
Edgewater Exploration (EDW, TSX-V)
Edgewater Exploration (EDW, TSX-V) is worthy of our readers’ due diligence as it continues to aggressively advance its main asset, the 100% owned Corcoesto Gold deposit in northwest Spain…the company also has an advanced Gold project in Ghana…EDW has an interesting chart as John shows below…it formed a “cup” as a basing pattern and now appears ready to start the formation of the “handle”, so we do see the possibility of a better potential entry point (a slight pullback) over the next couple of weeks…EDW closed yesterday at 48.5 cents, up half a penny…
Kaminak Gold – Bottom-Fishing Time?
As we mentioned yesterday, now is usually a good time to do some bottom fishing with the top Yukon plays and that certainly includes Kaminak Gold (KAM, TSX-V) which has taken a beating recently…it has become very oversold technically, but for some strange reason many investors are too fearful to jump in during situations like this but that’s exactly when risk is at its lowest…KAM has a strong support band between $1 and $1.10 as shown in this 3-year weekly chart…it fell as low as $1.05 yesterday before closing down 4 cents at $1.13, KAM’s 7th straight losing session…
Note: John and Jon both hold share positions in RBW. Jon also holds a share position in KAM.
Hi BMR team.
Thanks for all the timeyl write up. You guys must have barely slept. I will hold to my 6 digits shares of RBW. I do hope that insiders will be accumulating on weakness.
Comment by Alexandre — December 5, 2012 @ 5:03 am
RBW new lows coming next few days
Comment by robert — December 5, 2012 @ 6:23 am
Dear BMR Folks. Good morning
As simple as that RBW has lost their integrity. Heads up to you guys for giving such an untruthful picture and sprinkle sugar icing on their garbage.
I guess investor’s faith has already vanished
Comment by Eric Benson — December 5, 2012 @ 6:43 am
Greencastle letting go of Nevada – not a great deal for Greencastle, given its reliance on royalties and farm-outs?
Comment by Hugh — December 5, 2012 @ 6:53 am
Oh man.
my average at 0,195 which I thought was a good entry point has immediately become a very bad one. Nothing more to do but sit down and wait. But would rather entered rbw at these levels of course..
Comment by Kalkan - Sweden — December 5, 2012 @ 6:57 am
rbw just set a new 52 week low. Also, just to be clear a gold intercept of 2 g/t over 50 meters in in no way shape or form stellar. CSQ, also in Nevada, hit 118 meters of 4.08 g/t. Now that’s a stellar intercept. odin
Comment by odin1 — December 5, 2012 @ 7:07 am
Poor me… I am collecting RBW today… my sixth sense tells me to increase my portfolio… chances for me! Eric, I like your comments … 🙂
Comment by Theodore — December 5, 2012 @ 7:09 am
The question is, where did David Johnstone get that silver rock he carries around? It doesn’t seem as though it came from the international property.
Comment by Paul — December 5, 2012 @ 7:10 am
Its not BMRs fault for the way the mgt dangled the carrot for so long…putting out updates that International looks great and theyve hit the vein in every hole… Im just surprised they are still so upbeat and positive, willing to wait who knows how long for any kind of real substance from RBW
Comment by db — December 5, 2012 @ 7:12 am
Never mind BMR…
I had asked you what you thought the share price might do today – got my answer.
While it is down quite a bit, volume is a joke – don’t doubt most of the sellers are coming directly from this board – usual suspects. The big guys are holding on – I can tell by the level II sales.
Good riddance.
Comment by alex — December 5, 2012 @ 7:16 am
I told you guys a thousand times, stocks like RBW are ONLY lottery tickets and 9 out of 10 never comes up with something significant. This will remain a dog now and you would help everyone by letting it go and buy some REAL companies.
Comment by Don — December 5, 2012 @ 7:30 am
I now realize why ANON was dumping so adamantly.
I’d be a lot more confident if ANON would be the one buying at these levels, but I don’t see it yet. Too bad, so sad.
The selling was telltale of what was to come after round 1 of drilling.
Haven’t thrown in the towel yet, but the measly 160k shares sold so far is not grounds for concern just yet.
Comment by alex — December 5, 2012 @ 7:57 am
ok Don give us your expert advice on real companies to buy
Comment by brian — December 5, 2012 @ 7:59 am
IT’S OVER: Goldman Calls The End Of The Great Gold Bull Market
businessinsider.com/goldman-calls-the-end-of-the-gold-bull-market-2012-12
(Actually the great gold bull is just getting underway….when the big guys start using
this language, you know they are under great pressure!),
Why would they reveal this closely held information regarding gold???
(((Freedom of information)))….except this is neither information or news.
Comment by Paul — December 5, 2012 @ 8:39 am
CLOSE SHOP BMR you have lost it jokers stick to your day jobs and stop pumpin anything else everyone would like to thank you including myself for losing us money
Comment by Gerry — December 5, 2012 @ 8:40 am
brian, buy Aurcana, you will not regret it.
Comment by Don — December 5, 2012 @ 8:51 am
The volume are not there, indicating just the retail nervous/panic guys selling, probably Heath from this board. Funny thing is, the bids are building for the buys. I would not be surprise if RBW goes back to 0.20 in a few days.
Comment by Jason — December 5, 2012 @ 8:52 am
It is a dreadful day for juniors, except Visible Gold. It is up 20%. Obviously the Joutel play.
Comment by Alexandre — December 5, 2012 @ 8:54 am
Gbb, Cadillac, Rainbow, Whats next to spend our money on. No thanks, no more inputs from BMR for me i have lost enough money now.
Comment by Carl — December 5, 2012 @ 9:03 am
Kaiser Report, closing paragraph about the extinction of 500 juniors on the TSXV.
The group to watch during 2013 will be the 428 juniors with advanced projects undergoing feasibility demonstration. These may benefit from a slingshot effect if the market decides the macroeconomic glass is half full rather than half empty, rapidly boosting prices 100%-200% as M&A fever kicks in. But the really interesting companies to investigate will be the 506 juniors that have more than $200,000 working capital and have projects that could deliver a major discovery that provides 10, 20, 30-fold price gains from their current depressed levels. These are the ones which could attract the retail investor, but to attract the retail investor an antidote to the predatory spiders must be created, an antidote in the form of a system that facilitates visualization of the potential outcome in both physical and monetary terms, and externalizes it into a public forum through a wisdom of crowds process. Such a dynamic consensus outcome visualization will allow a resource junior to bend like a reed when the hurricane blows, snapping back to the equilibrium price as fundamentals oriented speculators rush in to take advantage of the temporary good speculative value created by the volatility traders. No longer will the resource junior be a fragile sapling easily broken by a destructive trading culture devoid of legitimate purpose. There will still be plenty of volatility, but it will revolve around competing visualizations of the potential outcome, making the Canadian junior resource sector stronger, perhaps “antifragile” in the sense intended by Nassim Taleb. I have developed a plan for how this can be done; its seeds are in the rational speculation model.
Comment by Alexandre — December 5, 2012 @ 9:14 am
Jason, something similar is seen with Richmont. With all the bad news, the PPS is trading only at 20 cents below the previous low. I hope that RBW continues with NR, and any good news.
Comment by Alexandre — December 5, 2012 @ 9:21 am
@Jason
I agree. 200k shared. That’s not a big deal.
Comment by Kalkan - Sweden — December 5, 2012 @ 9:46 am
Surprisingly, no comments from BMR yet??????
Comment by Eric Benson — December 5, 2012 @ 9:56 am
I will say we should not blame BMR if we lose money, everyone makes their own decisions. That being said, after disasters like GBB, SD and RBW, I will no longer use this site as a resource for making stock buying decisions, but again I will blame them for my loses. It is a free site and as the saying goes “you get what you pay for” and we are responsible for out own DD. Good luck to BMR and those who follow it.
Comment by Paul — December 5, 2012 @ 10:01 am
I think I saw 3 people on their way OUT of Dodge last night.
Comment by Rick — December 5, 2012 @ 10:20 am
Presentation to-morrow, i hope it brings out new news. richard l
Comment by richard l — December 5, 2012 @ 10:24 am
@ Gerry….i realize you’re upset about RBW…BUT….as per your statement below, i just wanted to say you talk very good english….i commend you on your amazing run on sentence skills…lol….(can you tell im being sarcastic)….
15.CLOSE SHOP BMR you have lost it jokers stick to your day jobs and stop pumpin anything else everyone would like to thank you including myself for losing us money
Comment by Gerry — December 5, 2012 @ 8:40 am
please sell your shares…you are a chicken, a small time retail investor, and i will happily gobble up your shares lol
Comment by Avo — December 5, 2012 @ 10:34 am
Come on you guys lets hit my buy order for RBW at 12 cent. This stock is a piece of junk. LOL
Comment by Ed — December 5, 2012 @ 10:58 am
I am a holder of KAM and it is very hard to understand why the price has fallen so much. Only if I had the funds to add to my position. With the resource estimate coming out in early 2013 too!
Comment by Michael — December 5, 2012 @ 11:21 am
t.dnt halted pending news.
Comment by Tony T — December 5, 2012 @ 11:26 am
Yesterday before the news release on rbw I predicted that those who like rbw would have a buying oportunity to buy rbw between 12 and 15 cents Iam not a chart reader just a gut I had
Comment by gil — December 5, 2012 @ 12:10 pm
gut feeling
Comment by gil — December 5, 2012 @ 12:11 pm
Ed – so let me get this straight – you have a buy order for a piece of junk.
Not the sharpest knife in the drawer huh?
Comment by alex — December 5, 2012 @ 12:28 pm
I am finished with buying stocks with pie in the sky predictions which will pay off in the sweet by and by .FROM now on I want to buy stocks with proven resources selling at a discount to the market a company bordering on producing mines with a large land package a stock selling at 9 to 10 dollars per ounce with at least 1 gram per ton a company with several millon of ounces in the ground MY best performing stock fits this discription
Comment by gil — December 5, 2012 @ 1:03 pm
The people who post on this site are becoming a joke.You invest $5000 in a venture stock(RBW) and expect $100,000 in return in 6 months,get a life.The people who are going to make money are the ones on the inside (Johnson),when they have made the money they want ,then and only then will everyone else w make the money on the stock,it is not going to happen before,keep that in mind.
Comment by John — December 5, 2012 @ 1:05 pm
@Gil I guess you will be loading up on GBB tommorrow. Buy lot’s, it can’t miss!
Comment by Mike — December 5, 2012 @ 1:17 pm
Do not put the blame on BMR… we have to do our own DD…. I have not dumped a single RBW share yet… Otherwise, it will be a 10 cents stock 🙂
Comment by Theodore — December 5, 2012 @ 1:44 pm
Mike gbb should wake up someday but not running like my top pick my pick up 10 percent today gbb down 5percent my stock pick low of 14 cents in last six months today 28 cents
Comment by gil — December 5, 2012 @ 1:51 pm
I love all the guys who come on here and claim to have such a big position in a stock they can destroy the share price…way to woo your internet audience. Im in awe of your claimed massive holdings……………NOT(lil Borat for ya)
Comment by db — December 5, 2012 @ 2:02 pm
Hi BMR – forget about digesting the RBW news – you’ve got friendly mail to digest on today’s board. Lots of friendly remarks for you to absorb. Gotta say you are going to have the biggest “I told you so moment” if RBW ends up being a winner. If not, well…then your reputation will be tarnished eternally.
Comment by alex — December 5, 2012 @ 2:12 pm
Db, I’m going to dump so many shares of rbw that you’re going to have no choice but to live in your moms basement your whole life lol
Stop trashing.
Comment by Avo — December 5, 2012 @ 2:51 pm
I am still in RBW because I believe Nevada assays will be impressive. Don’t write off Gold Viking yet either as they only reported the first 2 holes….the placement of the holes, not sure. But, if you want to invest in a fairly stable company with near term production on 2 properties, not to mention another major land purchase, take a look at NGM.
Comment by Dan — December 5, 2012 @ 3:24 pm
Just think, BMR wants to ultimately charge for this advice
Comment by OldMan — December 5, 2012 @ 3:31 pm
alex – I have a buy in for a stock that i believe is worth 12 to 15 cents now and probably 20 to 25 cents in the near future. These are only the first set of results and there are a bunch more coming. I would not buy a stock that i didnt believe would go up from here. Unless of course i was short trading. I said LOL because i think this sell off is over done. But if it isnt then i might get filled yet. I still like Rainbow, there i said it.
Comment by Ed — December 5, 2012 @ 3:38 pm
Funny how Gil and Theodore have identical writing styles!!
Comment by Heath stockford — December 5, 2012 @ 5:07 pm
These are my thoughts about buying stocks that have resources. .Like Roger Dangerfield says I dont get no respect Well many stocks with resources may tank but they still have a resource once respect comes back these stocks will fly .pie in the sky stocks will tank and stay there unless they can prove up
Comment by gil — December 5, 2012 @ 6:16 pm
Gil… OSK
Comment by Brillo — December 5, 2012 @ 7:16 pm
@Heath………. I do not know Gil …. we do not follow one another.
Comment by Theodore — December 5, 2012 @ 7:22 pm
December 6, 2012
Rainbow Resources’ President David W. Johnston will be joined by geologist Sean Derby in a special Rainbow LIVE presentation starting at 4:15 pm EST Today (1:15 pm PST) – REPLY TO THIS EMAIL OR SEE BELOW TO CONFIRM YOUR PARTICIPATION.
Johnston and Derby will update investors with a discussion of the latest Rainbow news including drill results from the Big Strike Project and continued success at the Jewel Ridge Property in Nevada.
Breaking News: Rainbow’s exploration at its Big Strike Project in the West Kootenays has been recognized by the Prospectors and Developers Association of Canada (PDAC) as Rainbow has been assigned a Core Shack display for Big Strike for the first two days of PDAC 2013 in Toronto Sunday, March 3, and Monday, March 4.
Only a small group of companies are part of the Core Shack display for PDAC, and Session “A” (the first two days) is a particularly elite group.
The Big Strike Project features 8 properties – the International, Gold Viking, Ottawa, Referendum, President, Tin City, Whitewater and Rhea covering a total of 13,000 hectares.
Comment by Alexandre — December 6, 2012 @ 5:13 am
got in at .13 yesterday! hope to see some good results next round.
Comment by Cam — December 6, 2012 @ 6:24 am
BMR missing in action good i would do the same.
Comment by Gerry — December 6, 2012 @ 7:09 am
And you want to charge for this site get real another great idea from the bull market rejects
Comment by Gerry — December 6, 2012 @ 7:13 am
RBW 11c…almost a buy again! I’ll let dust settle this week and see where we are Monday….
Comment by db — December 6, 2012 @ 7:14 am
In all fairness to Bmr some are getting carried away. Nobody twisted arms to force buying and it isn’t dead yet. Just need one hole to hit. Thing is I called this weeks ago, RBw management were covering up crap assays. Then put out crap nrs. Instead of just telling the truth. That’s what u get 99% of time on venture though. Myself I just hope to get back to even at 20 cents but I’m not holding my breath
Comment by Heath stockford — December 6, 2012 @ 7:24 am
I can’t see it going single digits unless the next results are terrible.
Comment by Cam — December 6, 2012 @ 7:32 am
@Heath… You got me drinking the Koolaid man…got a bid in at 11 on INT. I’m not gunna back up the bus by any means but looks worthy of a position…sorry for doubting you before doing any serious DD
Comment by db — December 6, 2012 @ 7:36 am
I can’t see it either but that’s only because I won’t look.
Comment by Rick — December 6, 2012 @ 7:51 am
heath, I said to exit rbw bout a month ago too. to many red flags were popping up. INT should due well eventually
Comment by dave — December 6, 2012 @ 8:15 am
Ya I think int is gona surprise many. Working on deals with mammoth companies. Should happen soon too. Cheers and good luck
Comment by Heath stockford — December 6, 2012 @ 8:21 am
@dave. Ya I should have went with my gut and sold when I started seeing what was really going on. Took chance and said no ill wait for results. Now we all see how that turned out.
Comment by Heath stockford — December 6, 2012 @ 8:24 am