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Gold has traded between $1,359 and $1,373 so far today…as of 7:15 am Pacific, bullion is down $8 an ounce at $1,363…Silver is off 9 cents at $22.94…Copper has retreated 2 cents to $3.28…Crude Oil is off 20 cents at $104.91 while the U.S. Dollar Index is up one-fifth of a point at 81.14…

Gold appears to be making its way from London vaults to Switzerland for a pit stop for refining/re-melting, then continuing on to the Far East to meet strong physical demand there so far in 2013, according to UBS…data show that there has been a tendency for U.K. Gold shipments to Switzerland to rise during periods of strong physical demand…the flow in the 1st half of the year was the highest in the UBS database that goes back to 1988, the bank stated…

Acquisitions by China’s Gold mining companies reached a record this year as the metal’s steepest quarterly drop in more than nine decades slashes mine values and sidelines Western rivals laden with debt…takeovers and asset purchases by producers based in China and Hong Kong rose to a record $2.24 billion this year, beating last year’s record $1.96 billion, according to data compiled by Bloomberg…Zijin Mining Group Co., the world’s 7th-largest Gold company by market value, and Zhaojin Mining Industry Co. are among companies looking to strike after the share price of targets fell an average 53% since bullion peaked in 2011…

Gold-Silver Ratio Short-Term Chart

Yesterday, we posted a long-term chart on the Gold-Silver Ratio (GSR)…this morning, John has a short-term chart…recently, the GSR has been narrowing with Silver out-performing bullion (the ratio reflects how many ounces of Silver it take to buy an ounce of Gold)…historically, a declining GSR ratio has proven to be bullish for precious metals (shows positive money flow) as it was between late 2008 and 2011 when it fell from a high of 96.23 to a low of 29.08…this year, the GSR hit a high of 72.77 and yesterday closed at 59.57…the GSR’s 50-day moving average (SMA) recently reversed to the downside, indicating a change in trend over the short to medium term…there is strong chart support between 52 and 56…bottom line – the GSR could bounce higher and take a run at the declining 50-day SMA, but the current trend favors an even lower GSR ratio which supports the idea that we are going to see higher Silver and Gold prices this quarter…

Prosper Gold Gets Conditional Approval For Sheslay Project Qualifying Transaction

Pete Bernier’s Prosper Gold (PGX.H, TSX-V) has received conditional approval from the Venture Exchange for its much-anticipated qualifying transaction with Firesteel Resources (FTR, TSX-V), and closing of the QT is expected next week with trading slated to begin the first week of September…our sources confirm that Bernier has all of his ducks in a row, including his financing and drill program, so Prosper Gold will be ready to hit the road running at the Sheslay Cu-Au Porphyry Project immediately upon trading…this is the way he and his team operate, with precision and a high level of skill…this puts the wheels in motion, of course, for Garibaldi Resources (GGI, TSX-V) in terms of its Grizzly Property, surrounding the western and southern borders of the Sheslay, and if you haven’t studied the map we posted yesterday on the entire area, we strongly suggest you do because this in our view is going to quickly develop into one of the hottest Cu-Au porphyry plays in the country…GGI President and CEO Steve Regoci agreed to an interview with BMR, immediately after Prosper Gold begins trading, and that’s when we expect GGI will come out with all guns blazing regarding the Grizzly…of course they are also busy with their Mexican projects, so it’s reasonable to expect GGI to come alive with news in the very near future…we suspect many investors, asleep at the switch this summer, still aren’t even aware of Garibaldi’s Grizzly Property or the significance of it, but that will no doubt change very shortly…

Below is a chart for Prosper Gold up until the point it was halted in early May…it was launched in February, 2012, and it’s important to point out that Bernier and his group looked at hundreds of potential properties before settling on the Sheslay River Valley, at the top end of British Columbia’s prolific Golden Triangle and about 60 miles west-northwest of Colorado Resources’ (CXO, TSX-V) North ROK discovery…trading in PGX.H was primarily in a horizontal channel between 30 cents and 50 cents…what could happen very quickly is a breakout above the horizontal channel, and then the race is on…

The Sheslay is a potential world-class Cu-Au porphyry system, given historical results, and there is no one better to prove it up than Dirk Tempelman-Kluit who was the genius behind the multi-million ounce discovery at Blackwater…an intimate connection between the Sheslay and the Grizzly clearly exists, in part due to the Kaketsa Pluton which originates on the Grizzly in the northwest corner of that 17,000+ hectare property…the Grizzly is about 2.5x the size of the Sheslay but at a much earlier stage of exploration…nonetheless, the Grizzly offers significant blue-sky potential and Garibaldi has its own outstanding geological team, and the financial power, to unlock the value of this property – especially with Bernier completely changing the dynamics of the situation in this under-explored area…as stated in Prosper Gold’s own technical report on the Sheslay, “The Grizzly covers the west and south contacts of the Kaketsa intrusion with the surrounding Stuhini contacts, in a similar geological setting to the Sheslay Project…known mineralization has characteristics of alkalic porphyry Copper-Gold mineralization”…

Euro Chart Update

It’s very important to keep a close eye on the euro at the moment as it continues to sit on the edge of a potential important breakout above a down trendline as John shows in this 3-year weekly chart…the euro and Gold have a strong correlation, so a breakout by the euro should be positive for bullion…the euro is off slightly today…

Today’s Markets

Asian markets were quiet overnight with Japan’s Nikkei average and China’s Shanghai Composite both posting slight gains…European shares were down slightly today as well…

The Dow faces the possibility of its 1st 6-day losing skid since July 2012, but the current oversold conditions suggest a turnaround isn’t far off…as of 7:15 am Pacific, the Dow is down another 54 points…Fed minutes will be released at 11:00 am Pacific and could provide fresh insight into when the Central Bank plans to start scaling back its $85 billion per month in asset purchases…our hunch is that this won’t happen until at least later in the year…the TSX has slipped 59 points while the Venture is off 2 points at 931…

Macro Enterprises Inc. (MCR, TSX-V)

Macro Enterprises (MCR, TSX-V) continues to be an earnings machine and hit a new all-time high this morning of $5.35 (31 cents below John’s Fib. level)…it reported Q2 earnings yesterday of $5.71 million or 21 cents vs. $2.6 million or 11 cents per share during the same period last year…for the 1st 6 months of 2013, MCR has earned just over $15 million or 61 cents per share…Macro Enterprises is a simple story and it’s making money, 2 reasons why MCR has been an island of safety for a Venture stock (and a market leader) since late last year…MCR has it has risen in Zenyatta-like fashion from below $1 a share…Macro specializes in construction and maintenance of small-to mid-inch pipelines, facilities and gathering systems…operations are centered in Fort St. John, B.C., with a satellite office located in Hinton, Alberta…Macro maintains one of the most modern fleets of heavy equipment in the industry…as always, perform your own due diligence…as of 7:30 am Pacific, MCR is up 51 cents at $5.01…

Probe Mines (PRB, TSX-V) Drills More High-Grade Intersections At Borden Lake

Probe Mines’ (PRB, TSX-V) Borden Lake Project in northern Ontario continues to evolve in very impressive fashion…results released this morning from 10 infill drill holes from the high-grade Gold zone at Borden Lake have returned significant intersections of thick mineralization, confirming the continuity of the high-grade system currently delineated over a potential strike length of 950 metres…BL13-455 on Section 1500m SE returned an interval of 44 metres averaging 4.0 g/t Au, which included 14.3 metres of 11.1 g/t Au, while 100 metres to the southeast, hole BL13-458 intersected 41 metres grading 5.1 g/t Au, including 11.6 metres averaging 15.1 g/t Au (all intervals approximate true width)…the high-grade mineralized zones in the southeast are between vertical depths of 283 and 444 metres…Probe will be issuing an updated resource estimate later this year…the deposit remains open to the southeast (high-grade area, potential underground operation) and the northwest (lower grade area, open-pit) where more infill results released this morning included 50 metres averaging 1.4 g/t Au in BL13-444 and 19 metres of 2.2 g/t Au in BL13-451 on Section 150m NW…as of 7:30 am Pacific, PRB is up 3 cents at $1.98…Agnico Eagle Mines (AEM, TSX) took a nearly 10% position in PRB a few months ago, and for good reason…great play…

GoldQuest Mining (GQC, TSX-V) Drills 47 Metres Grading 6.9 G/T Au and 0.94% Cu At Romero

GoldQuest Mining (GQC, TSX-V) released results from 2 infill holes at Romero this morning, the last holes to be incorporated into a maiden resource estimate for the discovery made last year…LTP-145 returned 227 metres grading 1.78 g/t Au and 0.44% Cu (including 47 metres averaging 6.9 g/t Au and 0.94% Cu) while LTP-144a intersected 172 metres grading 0.99 g/t Au and 0.33% Cu…both holes were located about 150 metres east of the original discovery…the disappointing news, however, is that the first 5 holes drilled at Guama did not return significant results…these particular holes were drilled into the peripheral parts of the trend but still featured anomalies that cannot be explained…the targets of the highest interest at Guama are located within the Los Comios concession, which is currently under reapplication with the concession expected to be granted shortly…not a great start for GoldQuest at Guama but it should get better for them there…these kind of systems can take time to figure out…GQC is under a little pressure in early trading, down 3.5 pennies at 38.5 cents…as we suggested a while back, GQC was nearing a point of “decision” technically and it was wise to wait for fresh drill results to determine the near-term direction of this sometimes very volatile stock…attractive buying opportunities in GQC should open up for patient investors…this still has major upside potential as the year progresses with more drilling to come at Guama, an initial resource estimate for Romero and an updated one for Escandalosa…it’s also possible there could be an important link between Romero and Escandalosa…

Teuton Resources Corp. (TUO, TSX-V) Chart Update

Teuton Resources (TUO, TSX-V), with a large package of properties in British Columbia, has been firming up since we first mentioned it recently to our readers when it was trading in the 8 to 9 cent area…it closed yesterday at 11.5 cents and is pushing higher this morning after announcing a major drilling program has started on its Tennyson property, situated 40 km north of Stewart…operator of the program is Brigade Resources, a Hunter Dickinson company, which is in the 2nd year of a 4-year option to earn a 50% interest in the property by spending $6 million and making cash payments totaling $300,000…below is an updated TUO chart (15-month weekly) from John…next major resistance is at 15 cents…we’ll have more on Teuton in the near future…

New Gold Inc. (NGD, TSX) Chart Update

Producers have been performing well recently, and New Gold Inc. (NGD, TSX) is no exception…this 8-year monthly chart supports the view that New Gold Inc. (NGD, TSX) and other well-run producers have turned the corner – in the case of NGD, a confirmed reversal around the $6 level…of course there’s some weakness this morning with some normal consolidation in the TSX Gold Index…NGD is off 42 cents at $7.78 through the first 45 minutes of trading…strong technical support around $7.40…

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