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February 13, 2013

BMR Morning Market Musings…

Gold has traded in a range between $1,644 and $1,656 so far today in thin trading due in part to the continuing holiday in China and other Asian countries…as of 6:05 am Pacific, the yellow metal has erased earlier losses and is now unchanged for the day at $1,651…Silver has also recovered, now up a penny at $31.13…Copper is firm at $3.74…Crude Oil is 53 cents higher at $98.04 while the U.S. Dollar Index is relatively flat at 80.00…Platinum has widened its premium to Gold to a 17-month high…

Check out an excellent article by Lawrence Williams at www.mineweb.com this morning – “Silver (Probably) The Best Asset In The World Right Now – Mylchrest”.

Today’s Markets

Japan’s Nikkei average slipped 1% overnight to close at 11251, thanks in part to a firmer yen…European shares are higher today while stock index futures in New York as of 6:05 am Pacific are pointing toward a positive opening on Wall Street…President Barack Obama outlined an ambitious liberal agenda in his State of the Union address last night that included raising the minimum wage, increasing spending on infrastructure, attacking climate change and passing gun-control legislation (how a significant raise in the minimum wage will help promote job growth is a dilemma for the President)…Obama repeated his earlier calls for reducing the budget deficit through a mix of tax increases and spending cuts…he would support “modest reforms” in programs including Medicare, as long as wealthy Americans contribute as well…he also said the U.S. would enter into negotiations with the European Union aimed at reaching a transatlantic free trade agreement…

Venture Exchange Chart Update

The Venture Exchange managed to stay above the top of a critical support band yesterday and ended a 6-session slide with a 3-point gain to close at 1199…so far, 2013 is starting very differently than 2012 and 2011 which actually might be a good sign from a contrarian point of view…investors have a habit of looking into the rear-view mirror and memories of an ugly March each of the past two years is still fresh in their minds…March could very easily be a lot different this time around…

Dynasty Gold (DYG, TSX-V)

Dynasty Gold (DYG, TSX-V) has kept its burn rate low to preserve cash and is sitting on approximately $1.3 million at the moment with an opportunity to boost that significantly if it’s able to secure a buyer for its Gold asset in China…last fall, the company also picked up a very interesting new property in the Stewart district of B.C. and initial field work returned impressive rock chip sampling numbers including 7.2 g/t Au and 4,395 g/t Ag…technically, the stock appears to have bottomed at 2 cents (its 2012 low) and has been trading between 2.5 cents and 4 cents so far in 2013…below is an updated chart as requested by one of our readers yesterday…patient investors could do very well with this one by the end of the summer, assuming DYG carries out a drill program at its Stewart property which appears to be its intention…a successful sale of its Gold deposit in China could potentially bring several million dollars into the treasury, so this is definitely a play to keep an eye on for a possible double, triple or better within six months or so…

Graphite One (GPH, TSX-V)

As expected, Graphite One (GPH, TSX-V) met stiff resistance at 25 cents Monday and closed down again yesterday at 21 cents after hitting an intra-day low of 19.5 cents…consolidation is expected to continue with the 20-day moving average (SMA) providing strong support at 18 cents while the EMA-20 is 16.4 cents, just above the rising 50-day SMA…so there is plenty of support between 16 and 18 cents which would certainly be a “sweet spot” on a further pullback to unwind overbought conditions…below is an updated chart from John…GPH has successfully closed a $600,000 private placement…

Lomiko Metals Inc. (LMR, TSX-V)

Another graphite play came to life yesterday as Lomiko Metals (LMR, TSX-V) jumped 2.5 cents on over 3 million shares to close at 8 cents…the company announced it has arranged a strategic alliance agreement with Graphene Laboratories Inc., a privately held New York company currently providing graphene to thousands of scientists at leading institutions around the globe, including academic universities, national laboratories in many countries and a broad spectrum of industrial entities…industrial clients include Fortune 500 companies involved in researching graphene and the development of graphene-related products…based on John’s 2.5-year weekly chart below, LMR appears to have a good chance to push through technical resistance at 9 cents…as always, perform your own due diligence…

19 Comments

  1. VENTURE UP OVER 10 PTS TODAY! SLG, OK, TAKEOVERS,ETC HELPING THE CA– USE.

    Comment by STEVEN — February 13, 2013 @ 6:41 am

  2. THE ONLY PROBLEM WITH DYG IS THAT THEY HAVE BEEN TRYING TO SELL THAT GOLD PROPERTY FOR ‘YEARS’ AND NOTHING HAS HAPPENED! EVENTUALLY IT MIGHT SELL….MGMT IS FAIRLY SLOW BUT VERY CONSERVATIVE.

    Comment by STEVEN — February 13, 2013 @ 6:50 am

  3. Rumor has it they are very close this time, but it’s a bonus if they sell – drilling over the summer will move this higher regardless. No need for a financing.

    Comment by Jon - BMR — February 13, 2013 @ 6:53 am

  4. The interview with Johnston probably didn’t amount to much anyway.

    Comment by Rick — February 13, 2013 @ 8:09 am

  5. DYG is a good buy right now.Ihave been to stewart and know that they generally have the highest snowfall rate in B.C.To me therefore its on my watch list for now. i feel that I must mention my pie in the sky stock for one last time. Its oregenics, OGEN and trades on the same american OTC exchange as RBW. I first put this stock forward here 3 christmas seasons ago, it was .60 centsUS$ at that time. Its $3.50us approx. now. It is a health care product co focussing on oral health. I have held this stock for years because I believe that their science is sound. I think that this stock has the potential to reach $50 to $100 or more over the next few years. They have a very powerful line up of products,just take the time to do DD on it. 65% of the stock is owned by insiders. I think that RBW will come out with news next week, just in time for pdac. richard l

    Comment by richard l — February 13, 2013 @ 8:57 am

  6. ATC broke through resistance. Expect Venture to follow suit. My prediction is that this March will not be any different from last year. One last push to ridiculously cheap valuations on Venture stocks. Be prepared to pull out all the stops come July/Aug this year because there should be some unbelievable deals.

    Also, once the hype in graphite stocks are over with expect them to correct along with all the other Venture stocks.

    Comment by Andrew M — February 13, 2013 @ 9:00 am

  7. Pierre told me news this week.

    Comment by Rick — February 13, 2013 @ 9:01 am

  8. could you please provide an updated chart on v.cev….your last ones have been extremely accurate and appreciated. glta

    Comment by natalie — February 13, 2013 @ 10:21 am

  9. News from EVR that they have discovered a new zone of mineralization at Ponton and intend to fast trak exploration. At the same time their January presentation shows drilling pushed back,

    Has Everton embargoed their interview with BMR or is it just not worth posting?

    Comment by George — February 13, 2013 @ 1:01 pm

  10. Speaking of graphite,looks like zen will be going parabolic soon,of course I don t own it!! Too scared to jump on here.

    Comment by greg — February 13, 2013 @ 2:09 pm

  11. I am wondering about CEV too, with the CN problem…. dead duck?

    Comment by greg — February 13, 2013 @ 2:10 pm

  12. Gold chart looks bearish near term.

    Comment by Hugh — February 13, 2013 @ 2:42 pm

  13. Cev doesn’t need the rail. There is more than one way to skin a cat.

    Comment by OldMan — February 13, 2013 @ 3:18 pm

  14. Hi
    Spoke to pr @ cev.v They are not concerned at all. They have alternate railroads similar to Alderon’s position. Cliff Resources is not doing well so all the capacity that they had on the alternate rail is available. Additionally cev feels they are a bit away from production so by then this issue will be long past.
    Their next report comes out in the next few weeks before the end of the first quarter. They will include information on the plan for transportation as well as fs!!!!
    Currently management is traveling with the story. They are very upbeat and not concerned at all apparently. I think the market is way over reacting. These are huge iron ore deposits that the Chinese are interested in. Alderon is waiting for their huge Asian cheque after Chinese new year in the next few week and rumour has it the Chinese have been in discussions with cev…it is an enormous deposit. Many believe iron/ore is the metal of choice to be invested in this year!!

    Comment by natalie — February 13, 2013 @ 3:31 pm

  15. Thanks for the cev up-date Natalie. It looks like a winner to me. Both atc and kam were ripe for pick-up to-day. I got kor yesterday. richard l

    Comment by richard l — February 13, 2013 @ 3:41 pm

  16. sorry…..not fs rather the pea!!! Should be outstanding. Cev.v is a recommendation of James West from Midas Letter, Hard Rock Analyst…Coffin brother and others. Outstanding property….lots of rail service available. CN does not have a monopoly!!!

    Comment by natalie — February 13, 2013 @ 7:19 pm

  17. Cap-Ex Ventures – Initial Resource Estimate Expected Soon

    Within the next few weeks Cap-Ex will be announcing the results for their initial NI 43-101 resource estimate for the ‘Block 103 Property’ located in the Labrador Trough near the mining town of Schefferville, Quebec. The original goal of the 2012 exploration program was to target a resource estimate of 800 million to 1 billion tonnes with an average grade between 29% and 32% iron. Based on the assay results that the company has received, however, I would not be surprised if the resource estimate was much larger than their initial goal!

    Stated on Peter Grandich’s website…Jan 17,2013….enormous deposit with ex Thompson Consolidated management!!!

    Comment by natalie — February 13, 2013 @ 7:50 pm

  18. DYG… nothing will go wrong to hold 50,000 to 100000 shares but putting 3 cents buy with patience, you will get it. If you want to wait for 2.5 cents, wait wait wait … Volume is always the key to kick off this one. I am talking about at least 2-3 million shares trading volume. It is just a joke to see someone dumping 3,000 shares to test the 2.5 cents mark. GBB does not look good and is still in descending mode. RBW is still no appetite for real investors. GQC may not be able to stay above 50 cents.

    Comment by Theodore — February 13, 2013 @ 8:00 pm

  19. Another potential silver play in DYG area is DV.V dolly vardon. Curenly doing an PP ao $15 million at .21 cents. Good management and os shatres. One to watch. richard l

    Comment by richard l — February 14, 2013 @ 9:07 am

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