Gold has traded between $1,381 and $1,399 so far today…as of 4:55 am Pacific, bullion has reversed and is now up $4 an ounce at $1,396…the bullion market can be expected to be volatile given geopolitical events and tomorrow’s U.S. non-farm payrolls report for August…very strong technical support for Gold at $1,350…Silver dipped as low as $23.10 overnight (strong technical support at the previous resistance band between $22 and $23) but is now up 9 cents at $23.55…Copper is flat at $3.23…Crude Oil is up 60 cents at $107.83 while the U.S. Dollar Index is virtually unchanged at 82.21…
American Eagle Gold bullion coin sales fell to a 6-year low in August (11,500 ounces) with the majority of the sales taking place during the last half of the month…this compares with 39,000 ounces sold in August of last year…however, American Eagle Silver bullion coins enjoyed their 2nd strongest August ever in the history of the series at 3,625,000 ounces last month, up 26.3% from August 2012…
HSBC on Gold and Oil: “A key reason for Gold to rally in response to Mideast tensions is the potential for Oil supply disruptions that a U.S. strike or an escalation of the conflict may trigger. In order for Gold to build on recent gains over $1,400/oz, Oil prices also have to remain strong, we believe. A relaxation in Oil prices – for whatever reason – could also undermine Gold. Also, unless conflicts are ongoing – a situation the U.S. administration has said it wishes to avoid in the case of Syria – geopolitically inspired Gold gains could fade quickly. Gold has rallied in anticipation of a strike on Syria, which may mean that if a strike materializes, an element of the market will be quick to take profits on the first sign that the conflict will not deepen,” HSBC stated…
Interest rates continue to rise in the major economies of the world…German 5-year notes fetched a 21-month high yield of 1.00% yesterday…U.S. bond yields are also a 2-plus year highs…such suggests growing world economies, which in turn is a bullish factor for the raw commodity sector, including the precious metals, from a demand perspective…
Today’s Markets
Asian markets were mostly higher overnight, though gains were modest…Japan’s Nikkei average finished 11 points higher, closing at 14065 – its highest level in a month…China’s Shanghai Composite slipped 5 points to 2122…
The Bank of Japan today formally proclaimed that the world’s 3rd-biggest economy is back on a recovery track…the BOJ also underlined progress toward its price target by saying that inflation expectations “appear to be rising”…in an upbeat statement – the tone of which was the strongest since 2008, according to the Wall Street Journal – following a 2-day policy meeting, the BOJ said the economy is “recovering moderately”, boosted by a pick-up in exports and investment in fixed assets by companies on the back of higher profits…public investment is also rising, it noted, while the housing sector is looking stronger…as such, the BOJ kept its main policy settings on hold, as it has done every month since April, when governor Haruhiko Kuroda unveiled what he called a “new phase” of “quantitative and qualitative monetary easing”…
European shares are up modestly in late trading overseas…the European Central Bank (ECB) left interest rates at a record low of 0.5% today, as widely expected, offering support to a gradual recovery for the battered euro zone economy…recent economic reports point to a clear improvement in the euro zone, but analysts have warned that it is still far too early to give the region the all-clear…
North America
Stock index futures in New York as of 4:55 am Pacific are pointing toward a slightly lower open on Wall Street…the U.S. auto industry has shifted into high gear with new-car buyers snapping up vehicles last month at a pace not seen since before the financial crisis…all told, buyers purchased 1.5 million vehicles last month, up 17% from a year ago, with nearly all major auto makers reporting double-digit sales gains…
Economists polled by Reuters expect non-farm payrolls to have increased by 180,000 jobs last month, up from a gain of 162,000 the month prior…the Labor Department’s report comes out tomorrow…
The TSX begins the day at 12758 after after finishing 17 points higher yesterday…the Venture, despite weakness in Gold, climbed 5 points to 947 yesterday as it edges closer to the critical 970 area…
Prosper Gold (PGX, TSX-V), Garibaldi Resources (GGI, TSX-V) Updates
Pete Bernier’s Prosper Gold (PGX, TSX-V) started to gain traction yesterday, climbing 13 cents to close at 63 cents – a new all-time high – on much better volume (234,000 shares) than its opening day Tuesday…below is an updated map from BMR of PGX’s Sheslay Property (68 sq. km) and Garibaldi Resources’ (GGI, TSX-V) 175 sq. km Grizzly Property contiguous to the Sheslay western and southern borders…GGI is believed to be gearing up for exploration of its own at the Grizzly where work completed over the last several years (airborne surveys, geochemical sampling, geological modeling) has shown structures very similar to those that exist at the more advanced Sheslay…
The circled “Star” porphyry target (see map below) is where Prosper Gold is currently drilling with Bernier telling us in an interview the other day that they may go as deep as 800 metres as they test this outstanding target at depth…it’s open in all directions…historically, 80% of the holes drilled by Firesteel Resources (FTR, TSX-V) at the Star bottomed in strong Cu-Au mineralization but the average length of those holes was only about 175 metres with the deepest around 300 metres…as Bernier told us with respect to the entire Sheslay Property, “We just think this thing has a lot of room and a lot of legs to get bigger, and we’re trying to get deeper into the system”…
Prosper is aiming to release initial assay results during the 1st part of October…“We’re going to hold all the results at the lab until we can get 3 or 4 holes lined up and then we’ll let them out all at once,” Bernier said…
The trend of mineralization in this area is believed to be north-south, which makes GGI’s Southern Block (noted by the large star and specifically defined by airborne and geochemical surveys) highly prospective as it’s immediately south of 4 of the 5 porphyry bodies that are currently known to exist at the Sheslay where mineralization remains open in all directions everywhere…meanwhile, Prosper Gold has noted that the Pyrrhotite Creek in the southwest portion of the property appears to a “distinct multiple target area”…this corresponds with known Cu-Au prospects on the Western Block of the Grizzly which also hosts the critical Mount Kaketsa pluton…this feature is believed to be an important “heat engine”, driving mineralizing fluids in the area…this is not a barren pluton, it is mineralized…technical reports we’ve reviewed, and geologists we’ve spoken to, believe there is also the potential for high-grade Gold mineralization at depth on the Grizzly…of course the former Golden Bear Mine is just 30 km to the west…
There clearly appears to be a geological connection between these 2 properties which is why we such great potential with Garibaldi…of course they already have several solid projects in Mexico and they demonstrated the ability to create value there with the discovery at Temoris, a property that was sold to NYSE-listed Paramount Gold and Silver (PZG, NYSE)…
Teck Resources Ltd. (TCK, TSX) has staked a large package of ground right up to the southern tip of the Grizzly and could be a natural candidate to eventually take over both Prosper Gold and Garibaldi in the event a major discovery is made at either property…combined, the Sheslay and the Grizzly total 245 sq. km – prime exploration real estate right on trend with major systems to the southeast…
Bernier and his team reviewed around 200 properties over an extended period before selecting the Sheslay, so they did their homework on this which is why we believe our readers have a unique opportunity with both Prosper Gold and Garibaldi – and before the masses jump in as we believe this story could quickly gain a wide audience, especially considering Bernier’s large following…
Both companies are well-managed, well-funded, and have tight share structures…the respective management teams also hold major share positions…GGI has not had to do a financing since 2009 (how many Venture companies have blown up their share structures since then, with cheap paper to fight through?) and has no warrants outstanding…this creates a clear runway for the share price…
GGI Long-Term Monthly Chart
Garibaldi’s long-term monthly chart shows a powerful uptrend is currently in place with the 200 and 300-day moving averages (SMA’s) reversing to the upside and a +DI bullish crossover in the ADX indicator…the last time these situations occurred was in 2009, when the stock then proceeded go on a run to 55 cents…John’s initial Fib. target at this point, for the near to short-term, is 24 cents (this is not a price target, just a theoretical level based on Fib. theory and analysis)…GGI has staged a key breakout above 12 cents which had been resistance for 14 months…
Prosper Gold (PGX, TSX-V) Updated Chart
Prosper Gold (PGX, TSX-V) broke out of a long-term horizontal channel yesterday, going back to when it was trading as a CPC, as John shows in this weekly chart…note that the RSI(14) stayed in the O/B range for nearly 2 months in the spring of 2012…
Radius Gold Inc. (RDU, TSX-V) Chart Update
Simon Ridgway’s Radius Gold (RDU, TSX-V) is sitting on plenty of cash, as well as attractive JV and 100% owned projects in Mexico, Guatemala and Nicaragua…readers should continue to watch this one closely, especially since Ridgway’s Cordoba Minerals Corp. (CDB, TSX-V) has been on a role since the beginning of August…RDU has been firming up recently and closed at 14 cents yesterday…important resistance is at 15 cents – a move above level would constitute a significant technical breakout…below is a 2.5-year weekly chart from John…sell pressure, dominant for such a long period, has reversed to buy pressure…
Macro Enterprises Inc. (MCR, TSX-V)
Macro Enterprises (MCR, TSX-V) has done extremely well since we initially introduced it to our readers in late May, climbing nearly 70%…at BMR, we focus primarily on Gold, Silver and Copper and promising juniors, plus general economic and market trends, but occasionally a company comes along that really grabs our attention if it’s serving a special niche and performing very efficiently…MCR is a great example as the company specializes in construction and maintenance of pipelines in Alberta and British Columbia…
MCR has been an earnings machine this year and closed yesterday at $5.30, up 18 cents…this is a situation we will continue to monitor closely, but keep in mind that MCR has risen in Zenyatta-like fashion and is encountering resistance, as expected, at the $5.61 Fib. level…of course it could eclipse that Fib. level at some point in the near future, but John has proven to be very accurate with his use of this particular technical indicator…the probability of a cleansing in the technically overbought condition of MCR has risen significantly, so please be aware of that as John points out in this 1-year weekly chart…it never hurts to take at least some profits off the table…as always, perform your own due diligence…
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in PGX.
Although it ain’t over til it’s over (Yoggi Berra), so far, my prediction that
PGX would fall back has not happened. Disappointing, because i don’t have a
position & refuse to buy at what i consider a hyped story, but pleasing because
someone else may be doing well, so there you go. R !
Comment by Bert — September 5, 2013 @ 6:15 am
you guys are really pumping up pgx aren’t ya. reminds me of your relentless pumping of RBW and the way you treated people that questioned RBW’s merit. Your quick to note strong gains since introducing a stock but I have never once seen you note how poorly a stock has done since you started covering it. Once you do, people might start taking this “biased” service more seriously
Comment by OldManWinter — September 5, 2013 @ 6:15 am
Thanx to everyone who asked Stockcharts to add PGX to their database.
Comment by John (BMR) — September 5, 2013 @ 6:20 am
When you’ve got a team like Prosper Gold has, and a property like they have, we have no problem highlighting this and we make no apologies for it. There are never any guarantees in this business, but the PGX situation is very unique with a strong chance of success. It’s a very important story and could become northwest B.C.’s next major discovery. Given the people involved, their track records, and the geology, if there is a chance for a home run in this market with any stock, it’s certainly PGX, and of course GGI is an important part of the equation there. We were screaming from the rooftops with Probe sitting at $1.20 and MCR at $3 and others including FCU…some of these companies hit it big, some of them miss, but we’re focusing on nothing but high quality situations in this type of market environment.
Comment by Jon - BMR — September 5, 2013 @ 6:21 am
DBV is waking up on excellent vol.`
Comment by Bert — September 5, 2013 @ 6:28 am
Just a note to our readers over a concern I have. We enjoy and welcome everyone’s input here. And as most of you know, we have no problem with constructive, intelligent criticism, whether it’s directed at us or a company. We encourage all feedback. We want to keep this forum as open as possible. It is meant to be helpful to investors with good information/ideas presented. But what we will not tolerate – it is a privilege to post here, not a right – is abuse of this forum. We had a complaint yesterday from a company that one reader’s comments here were a total distortion of the truth regarding a conversation, just an outright lie in fact. This individual is also using this forum to consistently push one particular company, while “bashing” others. That kind of agenda (no matter what companies it involves) will simply not be tolerated here. At some point we have to draw the line in the sand to ensure this forum stays as constructive and useful as possible for the greater good and everyone’s benefit. We appreciate your understanding and cooperation.
Comment by Terry - BMR — September 5, 2013 @ 7:59 am
I sure appreciate this website and all you do.It takes lots of effort to do all of this and for no charge. Keep up the great work.
Comment by David D — September 5, 2013 @ 8:58 am
Well said Terry. We don’t want this to turn into a Stockhouse. I enjoy reading positive post and constructive post as long as it makes sense and not derogatory in any way.
Comment by Dan — September 5, 2013 @ 9:02 am
Jon, any update regarding v.VVN? They just had a news release yesterday but no mention of drilling at Copau?…Any thoughts?
Comment by Steven — September 5, 2013 @ 9:09 am
I’m attempting to check into that this morning, Steven…hope to have some info today…
Comment by Jon - BMR — September 5, 2013 @ 9:16 am
Hey BMR. Seeing that you guys attended DYG’s AGM meeting this summer, are you a little concerned about permits not being issued yet?
Comment by Tony T — September 5, 2013 @ 9:17 am
Ditto to David T’s post.
Comment by Greg J. — September 5, 2013 @ 9:33 am
Tony, I just spoke with Ivy Chong. They are expecting the permit to be issued in just a few days. The process of course started back in April. This took longer than expected as this was the first time DYG has applied for permits in B.C. That’s the good news, that the permit is imminent. Now, hopefully the weather will cooperate – typically you can drill in the Stewart area right thru the end of September and into the first part of October, but there have been times in the past when the weather has turned ugly in September. So it’s weather-dependent now. Let’s cross our fingers and hope mother nature cooperates and they can drill. I just looked at the long-term forecast for the area and it’s promising – certainly no threat of snow over the next 2 weeks, and generally fair weather with plenty of sun. Steven mentioned VVN – heard from a third party this morning that they expect to be drilling later this month.
Comment by Jon - BMR — September 5, 2013 @ 9:43 am
Terry,one positive out of that feedback from that company,is we know they are paying attention.Good to know!Appreciate this site,and the great job you guys do every day.Keep up the good work!
Comment by Jim Niles — September 5, 2013 @ 9:53 am
Thank you, Jim.
Comment by Terry - BMR — September 5, 2013 @ 9:54 am
Jon,I see DBV is doing a non-brokered PP.I have to assume they couldn’t get any backers at decent terms when they went East looking for cash.Have you heard anything on this front?Have you spoken to the company at all lately?
Comment by Jim Niles — September 5, 2013 @ 9:56 am
Jim, more than ever we’re being extremely picky about the situations we’re putting fwd and quite frankly we just don’t have enough confidence in that particular group, which is why we haven’t said much about DBV so far. Share structure is also an issue. It was a good speculation initially when the Colorado news broke, and the last hole of their 6-hole program delivered some encouraging results. Also, it’s our view – based on technical information we’ve reviewed and discussions with prospectors and geologists – that the Sheslay system trends north-south onto the Garibaldi ground (or vice-versa we may ultimately discover). That’s not to say something may not yet be found at the Hat. It certainly warrants more exploration. But we’re thinking it’s just a little east of the major system(s). We’re working on arranging a comprehensive site visit during the last week of September, at which time we’d also be able to do an extensive interview with Dirk Tempelman-Kluit. He would be able to provide our readers with some great insight into the big picture up there. Right now it’s the Sheslay and the Grizzly.
Comment by Jon - BMR — September 5, 2013 @ 10:05 am
Thanks for your reply Jon. I too spoke with Ivy and she informed me they are making progress regarding drilling permits (I sure hope so) and, as you stated, everything depends on the weather. They have drillers lined up to drill, but havne’t signed anything on paper as they would have to pay 50% of the fee up front. So hopefully they obtain the permits shortly and the weather holds out. It’s been a long wait!
Comment by Tony T — September 5, 2013 @ 10:13 am
You’re welcome, Tony. Yes, looks good for Ministry final approval any day now. Drill targets are ready. They can mobilize a crew very quickly. Now weather-dependent, so no guarantees, but I would say it’s looking favorable at the moment. This is an honest exploration play – it can go either way – but they have a shot at hitting some high-grade mineralization given the geology there. It’s a prolific area.
Comment by Jon - BMR — September 5, 2013 @ 10:23 am
Jon. One more question and then I’ll leave you alone. Do you think, based on your experience, that the announcement of permits will generate a little buzz considering where they plan on drilling and the directors they have on their board (Bob Gallagher and Maurice Tagami)?
Comment by Tony T — September 5, 2013 @ 10:31 am
Definitely there should be some buzz with the announcement of the start of a drill program, for sure. I think what they’d want to do, once they have the permit in hand, is a quick ground/weather check to make sure everything is ok, and they’ve got the window they need…they have done an excellent job in terms of their homework on selecting the drill targets – they have some very qualified people as you say…let’s hope the weather cooperates…
Comment by Jon - BMR — September 5, 2013 @ 10:59 am
10/4 Jon. Thanks for your time 🙂
Comment by Tony T — September 5, 2013 @ 11:01 am
One more item of housekeeping to clean up. Just spoke with George (finally) at GMZ. They’re still working on getting their final approval permit for production to commence at their met coal property in Alabama. This has taken longer than they expected (Murphy’s Law) but he says they are making progress (a couple relatively minor issues remain); however he can’t give a timeline on when the permit might be issued. So this process will carry on for a little while yet. He’s encouraged by the estimates for coal met prices going forward. He’ll be in Alabama next week.
Comment by Jon - BMR — September 5, 2013 @ 11:07 am
Jon. Forgot to mention Ivy told me they were heading up to the property next week to check things out….
Comment by Tony T — September 5, 2013 @ 11:10 am
Jon
thanks for the update on GMZ, guess I will continue to be patient and hold on for a while longer..
Comment by Greg — September 5, 2013 @ 11:20 am
Jon, thanks for (miraculously) getting a hold of George @ v.GMZ. The update is greatly appreciated!
Comment by Steven — September 5, 2013 @ 11:54 am
You’re welcome, Steven. He promises not to slip up like that again on the communication side of things.
Comment by Jon - BMR — September 5, 2013 @ 11:57 am
Can anyone remember when the Venture actually went up 2 days in a row when Gold each day fell by about $20 an ounce?
Comment by Jon - BMR — September 5, 2013 @ 12:03 pm
I took a position in v.PGX today. It is just too good to pass up. Tremendous land package combined with tremendous management. In my opinion, it is just a matter of time till this explodes to the upside.
Comment by Steven — September 5, 2013 @ 12:53 pm
I have also taken a substantial position in v.CCB (Canada Carbon Inc.). I would highly recommend that any serious investor take a serious look at getting in before this really takes off. It could very well achieve the same share price levels as v.ZEN (Zenyatta Ventures Ltd.) or greater. Based on my research, it is clear to me that v.CCB is superior to v.ZEN in a variety of ways. Good luck to all!
Comment by Steven — September 5, 2013 @ 12:58 pm
Steven,
got my attention, CCB from 7 cents to 26 cents over the last 60 days.. can you share how CCB is superior to ZEN ?
Comment by Greg — September 5, 2013 @ 1:49 pm
Greg,
In response to your question, v.CCB is superior to v.ZEN in terms of:
1) The superior quality of their graphite land package (17 anomalies – on Miller property) about to be drilled/tested;
2) Ultra pure levels of graphite (based on initial testing);
3) The Speed at which they can begin production/mining the graphite + excellent access to infrastructure;
4) v.ZEN still have not shown us a mining plan, nor purity test details; and
5) Management.
I could go on and on, but I will leave it at that for now. I will finish by leaving you this quote with respect to the “kind of graphite” that v.CCB has:
“Lump/Vein
The rarest and most valuable form is vein graphite.. As the name suggests, this form of graphite is a true vein mineral as opposed to a seam mineral (amorphous graphite). Lump or vein graphite, as found in Sri Lanka, is usually found in high grade deposits and is highly sought after by both producers and customers. This is because purity is a key consideration. For producers, the higher the grade, the lower the milling and refining cost. For customers it offers the opportunity to offer more flexibility in product applications. It is therefore significant that the initial samples from Canada Carbon’s Miller property are demonstrating the extremely high grades associated with lump or vein-like properties in Sri Lanka”
I rest my case.
Good luck!
Comment by Steven — September 6, 2013 @ 5:28 am
Thanks Steven
Comment by Greg — September 6, 2013 @ 7:15 am