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Gold is trying to close the week on a strong note…as of 6:50 am Pacific, bullion is up $9 an ounce at $1,292…Silver has climbed 6 cents to $19.44…Copper is up 2 pennies to $3.14…Crude Oil (WTI) has hit a fresh 16-month high and is currently up 63 cents to $108.63, while the U.S. Dollar Index is off slightly at 82.72…

TSX Gold Index & Gold Comparative Chart

The outlook is becoming increasingly bullish for Gold and Gold stocks based on this 2.5-year comparative chart from John this morning…this doesn’t necessarily mean that we’ve seen the lows for Gold in this cycle, but a very strong rally could be in the works for this 3rd quarter…

Today’s Markets

Asian markets were mostly lower overnight with Japan’s Nikkei average slipping 219 points or 1.5% to close at 14590…China’s Shanghai Composite also fell by 1.5%, losing 31 points to finish the week at 1993…European shares are modestly lower in late trading overseas…meanwhile, the Dow is down 55 points through the first 20 minutes of trading while the TSX has gained 16 points to 12645…the Venture is up a point at 916 and poised for a solid advance this week…its 20-day moving average (SMA) is also reversing to the upside…

Prosper Gold (PGX.H, TSX-V) Finalizes Deal With Firesteel Resources (FTR, TSX-V)

Starting Gun Ready To Be Fired At Sheslay Porphyry Project

If it’s a Pete Bernier deal, you know it will be executed with incredible precision and the likelihood of success is high…that’s why we’re so excited about the prospects for Prosper Gold (PGX.H, TSX-V) in the prolific but under-explored Telegraph Creek area of northwestern British Columbia – about 60 miles west-northwest of Colorado Resources‘ (CXO, TSX-V) North ROK discovery…drilling commences shortly at Sheslay (formerly Copper Creek), an advanced exploration play with huge upside potential that’s in the best hands possible with award-winning geologist Dirk Tempelman-Kluit…

“Since the sale of our last company, Richfield Ventures in 2011, it has taken us 2 years to identify a multiple bulk-tonnage Copper-Gold target area, with historical drill confirmed discoveries that met our exploration criteria for Prosper Gold,” stated Bernier in a news release yesterday…”The Sheslay project area is close to infrastructure, drill permitted and drill ready…we look forward to advancing the project in the near term“…

We’ve just recently had our boots on the ground in northwestern British Columbia, and we’ve spoken to numerous geologists and prospectors regarding the Sheslay and surrounding area…some of the surface showings at the Sheslay are reported to be spectacular, and below is just one example – a picture of a gossan which is included in Firesteel’s corporate presentation…

Sheslay Porphyry Project And The Garibaldi Resources’ (GGI, TSX-V) Tie-In

Garibaldi Resources (GGI, TSX-V) has commenced an important technical breakout – see John’s updated chart below…what’s driving this is Garibaldi’s 170 sq. km Grizzly Property in the heart of an area that we’re convinced is going to yield superb results and bring some much needed excitement to the Venture Exchange…as we recently predicted, Bernier and his highly respected Prosper Gold team have hit the ground running at the newly-named Sheslay Porphyry Project…many investors are still not familiar with this project, let alone the fact that Garibaldi holds a very valuable piece of real estate contiguous to the western and southern boundaries of Sheslay…there’s a clear geological connection between the properties…the Grizzly is also even bigger – 17,000 hectares vs. Sheslay’s 6,800 hectares…

In Prosper Gold’s news release yesterday morning, announcing a final option agreement for Sheslay with Firesteel in addition to immediate exploration plans including drilling, you’ll notice the release made mention of the “Kaketsa granodiorite pluton” – this important intrusive is actually situated in the northwest corner of the Grizzly…it measures approximately 4 km by 5.6 km in surface extent and some geologists believe it’s a key “heat engine” for the entire area…a 2012 technical report described this feature as an “elliptical, north trending intrusion…a number of potentially economic Copper prospects occur near the contacts of the Kaketsa Pluton and its related smaller stocks“…the western portion of the Grizzly is highly interesting but has been under-explored…in 1988, Corona completed prospecting, rock sampling and an extensive soil geochemical survey that confirmed significant Gold values associated with the Copper mineralization in the western corner of the property…meanwhile, there’s also a large “South Target” at the Grizzly, confirmed by an airborne survey that was completed in 2006 which revealed the following…

“For comparative purposes this survey covered the southern part of Firesteel’s Copper Creek Property…results of the airborne magnetic survey showed that the rock units and structures which underlie the Copper Creek prospects appear to continue into the large area of low relief within the Garibaldi claims and identified several magnetic anomalies which are similar to the magnetic anomalies that are associated with the mineralized zones which comprise the Copper Creek Property; this area is referred to as the ‘South Target’…during 2007 and 2008 Garibaldi completed orientation soil geochemical surveys which reportedly returned Copper values within the anomalous range determined by Firesteel for the Copper Creek property, however the surveys only covered a small fraction of the prospective area and will need to be expanded to cover the area of interest defined by the airborne magnetic survey…during late 2008 Garibaldi completed a comprehensive literature review for the Copper Creek and Grizzly properties and compiled all available technical data“…(underlined part is our emphasis)…

The Grizzly and the Sheslay appear to be intimately connected, though Sheslay is much more advanced from an exploration standpoint…mark our words, the Grizzly will be key to Prosper Gold’s plans for the area – from both a geological perspective, and an industrial/infrastructure perspective…it’s interesting to note as well that Teck Resources Ltd. (TCK, TSX) has staked  ground right up to the southern border of the Grizzly over the past year…so Garibaldi has some powerful neighbors…

Historic opportunities have opened up on the Venture Exchange but investors must focus on companies and individuals with proven track records and the ability to execute both on the ground and in the market…that’s the only way to avoid deception and the money-sucking “lifestyle” companies that have infested the Venture like rats in recent years…a rising tide is not going to lift all boats this time…

There is no one who has established greater credibility in the junior resource sector over the last few years, in our view, than Pete Bernier…if you want to make money, follow those who have made it, still have it, and are growing it…Bernier and his award-winning geologist, Dirk Tempelman-Kluit, of course discovered the massive Blackwater Gold-Silver deposit in central British Columbia in 2009…as a result, Richfield Ventures, which we introduced to our readers when it was below $1 a share, got bought out by New Gold Inc. (NGD, TSX) in 2011 for $500 million…some of our readers made 10X their money…we’ve never seen an exploration play executed with such precision and professionalism as Blackwater under Bernier and Tempelman-Kluit, and there’s an excellent chance they’re about to pull off a repeat performance at Sheslay…Bernier has the exact same team with him at Prosper Gold, right down to the corporate secretary and the drilling company… 

While Bernier’s Prosper Gold remains halted pending approval (expected imminently) of the Firesteel transaction, investors can get a head start on what promises to be a very hot exploration play with Bernier’s new deal by taking a good look at Garibaldi…we did our due diligence which included a trip to the Iskut area, conversations with independent geologists and prospectors, and discussions as well with company management (Garibaldi and Prosper Gold)…

Garibaldi’s Grizzly Property is of major strategic value in the context of the Sheslay Project…investors have slowly been catching on to this in recent weeks, which is why volume in Garibaldi has picked up considerably…the share price is also firming up, and the stock’s 50 and 100-day moving averages (SMA’s) have reversed to the upside – a very bullish development…with working capital of 8 cents per share as of the quarter ending April 30, Garibaldi is in a healthy financial position – unlike most juniors – and has a very reputable management team led by President and CEO Steve Rogoci…

Because of its financial strength, GGI has not had to do a financing in over 4 years – and that was the cheapest financing they’ve ever done (12 cents)…no warrants are outstanding…there’s little overhead resistance or excessive amounts of paper that are going to hold this stock down…

Garibaldi not only controls 100% of the Grizzly Property, but they also have significant exploration assets in Mexico and other properties in British Columbia…it’s a year-round play which adds to its attractiveness…the company has been focusing almost entirely on its Mexican properties…but they are keenly aware of the quality and importance of the Grizzly Property, and our sense is that Garibaldi will bring the Grizzly out of “hibernation” very shortly…it’s in their strategic interest to do so…

As always, perform your own due diligence…you cannot beat the potential leverage investors have with some of these junior exploration plays, especially with the Venture at current levels…but common sense and wisdom are required in order to pinpoint the right deal(s)…we can sense where things are going in the Telegraph Creek area – northern B.C.’s next exploration hotspot…rather than follow the crowd, get in before the crowd…

Garibaldi 3-Year Weekly Chart Update

There are obvious technical signs that point to a very strong summer for GGI…note how the RSI(14) has broken above long-term resistance…GGI has also broken above a horizontal channel…sell pressure, dominant for a lengthy period, has just reversed to buy pressure…the ADX trend indicator is bullish, and the 50-day moving average (SMA) has also reversed to the upside…the 100-day SMA (not shown on the chart) is also now just starting to reverse…these are all classic signs of a pending bullish move, supported by developments on the ground…

Sego Resources Inc. (SGZ, TSX-V)

We’ll expand on this situation next week, but in the meantime readers may wish to perform due diligence on Sego Resources (SGZ, TSX-V) which is gearing up to commence drilling at its Miner Mountain Property just north of Princeton…this alkalic Copper-Gold porphyry prospect features at least 8 separate target zones worthy of further investigation through drilling and/or additional geophysics…in March of last year, DDH-21 returned a stellar 100.4 metres grading 0.95% Cu and 0.55 g/t Au…Sego just announced this morning that it has completed a $500,000 financing at 10 cents per share which followed a $130,000 private placement by insiders announced in June…below is a 2.5-year weekly chart from John…this one looks interesting…

Lakeland Resources Inc. (LK, TSX-V) Update

During the 2nd quarter, we introduced this company to our readers when it was trading around the 10-cent level…it’s a newly-formed pure uranium play focused on the Athabasca Basin in Saskatchewan and Alberta…again, we suggest our readers perform their own due diligence and we’ll expand on LK next week…the chart is promising as you can see below…

Note: John and Jon both hold share positions in GGI.  Jon also holds a share position in FTR.