Gold has traded between $1,328 and $1,341 so far today…as of 6:40 am Pacific, bullion is off $1 an ounce at $1,332…Silver is 4 cents higher at $21.83…Copper has added 3 pennies to $3.27…Crude Oil is flat at $102.78 while the U.S. Dollar Index is up one-tenth of a point at 80.50…
Kitco’s Alan Sykora reported from the Denver Gold Forum (www.Kitco.com) that Fund managers and mining analysts at the event are generally upbeat about the precious metal’s picture, especially over the longer term, and some analysts like what they see for the upcoming 4th quarter…
“Lately, what I am seeing is whenever Gold goes up a percent or 2, mining stocks are going up anywhere from 5% to 20%,” said Dan Hrushewsky, senior analyst for Gold-mining equities with Jennings Capital. “I’m starting to see a high sensitivity or beta of mining stocks to Gold prices. It looks to me like the mining stocks want to move. So if the Gold price goes up, mining stocks will outperform.”
Dan Denbow, assistant vice president of equity portfolios at USAA Investments and manager of the USAA Precious Metals and Minerals Fund, cited efforts by companies to scale back overall spending, seeking to improve cash flow and profitability…previously, some felt producers were too focused on simply ramping up output during a long-running bull market before prices fell this year…“They have taken a serious tone towards costs and managing operations,” Denbow said. “As you meet with different companies, not all of them have taken it to heart. But a good many have taken it to heart.”
Some producers have still not taken cost-cutting and streamlining measures to heart?…that’s quite amazing, which shows how careful investors must be in terms of their due diligence…
Today’s Markets
Japan’s Nikkei average staged a sharp reversal overnight, closing 179 points higher at 14799 after being down more than 1% earlier in the session…China’s Shanghai Composite, however, slipped 43 points to a 20-week low of 2156 after a after a nation-wide survey of over 2,000 companies, known as China’s Beige Book, showed business conditions are not as healthy as recent positive economic data suggests…
European shares are mixed in late trading…France released a consumer confidence survey for September that met expectations…in the UK, meanwhile, the final reading of GDP for the 2nd quarter came in unchanged at 0.7%…
North America
The Dow, trying to snap a 5-session losing skid, is up 65 points as of 6:40 am Pacific…the U.S. government could start to run short of funds to meet its obligations by October 17, said Treasury secretary Jack Lew, unless Congress votes to lift the debt ceiling before then…Lew’s letter to John Boehner, the Republican House speaker, and other congressional leaders, effectively sets a deadline for Republicans and the White House to resolve their stand-off over approval for new government borrowings…
The TSX has gained 34 points while the Venture is 7 points higher at 955 through the 1st 10 minutes of trading…
“It’s Got All The Earmarks”:
BMR Interviews Prosper Gold’s Dirk Tempelman-Kluit On The Sheslay Porphyry Copper-Gold Project
Dirk Tempelman-Kluit is unquestionably one of Canada’s premier geologists, in a league actually of his own given his track record and incredible understanding of all the dynamics involved in the creation of a world class deposit – specifically Copper-Gold porphyry or Gold in British Columbia…just over 2 years ago, his expertise and the business/market savvy of Pete Bernier combined to pay huge dividends for shareholders of Richfield Ventures which was bought out by New Gold Inc. (NGD, TSX) following its massive bulk tonnage Gold-Silver discovery in the Blackwater district of central British Columbia…this was a classic “10-bagger” for many investors, including some BMR readers as we followed that story almost from the very beginning…now, with Bernier also at the helm, Tempelman-Kluit is working hard at another major geological project that has the potential to dramatically impact the mining landscape of northwest British Columbia…
The 74-year old Tempelman-Kluit, who honed his skills for nearly 3 decades with the Geological Survey of Canada before he met Bernier about a decade ago, is overseeing the exploration program at the Sheslay…this 68-sq. km property, with a minimum of 5 Copper-Gold bearing targets including the advanced Star target where Phase 1 drilling began a month ago, couldn’t be in better hands…there are never any guarantees in this risky junior exploration sector, and obviously some luck is required too in finding these deposits…but if there’s anyone who can figure out the Sheslay, it’s Tempelman-Kluit who is a master at data compilation and interpretation…he is also a very personable and outgoing individual with a high level of energy; very confident in his abilities, yet humble as well – clearly a gentleman to admire…he has an amazing command of this potential large-scale system at the Sheslay that could easily trend across its boundaries – this is the rich Stikine Arch, and adjoining the western and southern borders of the Sheslay of course is Garibaldi Resources’ (GGI, TSX-V) 175 sq. km Grizzly Property…Teck Resources Ltd. (TCK, TSX) holds a large land package as well, as they staked right up to the southern edge of the Grizzly…
After Richfield was bought out by New Gold, Tempelman-Kluit and Bernier took their time in deciding which project to cut their teeth into next…the fact they chose the Sheslay after looking at so many other possibilities over a 2-year period speaks volumes about the potential of that property, and the immediate surrounding area…
Click on the forward arrow to listen to the 1st excerpt (2-and-a-half minutes) of the discussion between Jon and Tempelman-Kluit (requires Adobe Flash Player, version 9 or above)…more excerpts from the 1-hour interview in the coming days…
Dirk Tempelman-Kluit:
[audio:https://e8d59e.a2cdn1.secureserver.net/wp-content/uploads/2013/09/Dirk-PGX-Clip-1.mp3|titles=Dirk PGX Clip 1]
Pete Bernier (left) and Dirk Tempelman-Kluit (right) were the 2011 AME BC Award Recipients for Excellence in Prospecting and Mineral Exploration.
$1,500 Gold – Q4?
Check out www.GoldInvestingNews.com for an interesting interview conducted by Kevin Michael Grace of the The Gold Report who spoke with Michael Curren of Beacon Securities…Curren had some thoughtful comments on Gold (he’s calling for $1,500 during Q4) and various companies…“Our recommendation is to focus on early exploration or discovery plays,” he stated. “We’re also looking beyond Gold. We like select base metals and uranium, and we have a few favorites there as well. Diversification is our focus for investors right now. We concentrate on assets, location, management and balance sheets. We’re looking for assets with potential for high-grade discovery. We’re looking for low political risk in the location of these assets. We’re looking for strong management with backgrounds in exploration and discovery or people who have demonstrated past involvement in success stories. And we’re looking for companies that have enough cash to do exploration in the short term or a combination of assets and management expertise sufficient to raise money, which is not the easiest thing to do in this market.”
Dow-Gold Comparative Chart
The Dow and Gold have traveled in opposite directions for most of 2013 – it’ll be interesting to see if that negative correlation continues in Q4, or if the Dow and Gold return to a pattern where they move in tandem…below is a 5-year weekly Dow-Gold comparative chart from John…the negative divergence between RSI(14) and price was a warning sign as far as the Dow was concerned – there could be more downside to come over the short-to-medium term, though traders/investors have been consistently buying on the dips this year…
Fission Uranium Corp. (FCU, TSX-V) Updated Chart
Fission Uranium (FCU, TSX-V) has been following such a predictable path, both on the ground and in the market…more excellent results from Patterson Lake South discovery were released yesterday, and FCU climbed 6 cents higher to close at $1.38 on strong volume (4.1 million shares, all exchanges)…the 50-day moving average (SMA) has provided incredible support throughout this stock’s move, and now it appears that resistance just below $1.50 is about to be challenged again…this is a major Venture success story, one to hold on to we believe for a potential takeover…below is a 6-month daily chart…as always, perform your own due diligence…
Arianne Phosphate Inc. (DAN, TSX-V)
Arianne Phosphate (DAN, TSX-V) has been trending higher recently on increased volume…the company has an exceptional phosphate project (Lac a Paul) in Quebec, and a feasibility study is in its final stages…interestingly, the stock has bounced around in a horizontal channel for nearly 2 years between 80 cents and $1.47…some traders have done well playing the swings…the question is, when will it break out of this channel?…like FCU, DAN is another potential takeover target given the quality of its project…below is a 3-year weekly chart from John…the daily 1-year chart shows overbought conditions at the moment, but the 20-day SMA around $1.25 should provide strong support in the event of a near-term profit-taking pullback…
Madalena Energy Inc. (MVN, TSX-V) Updated Chart
Madalena Energy (MVN, TSX-V) is a Canadian-based, domestic and international upstream oil and gas company with a healthy balance sheet (positive working capital of $7.7-million as of June 30, no debt) and increasing production levels…the stock has been volatile at times this year, bouncing from the mid-to-upper 40’s to the low 20’s and back again (a couple of times)…at the moment, support is strong at the EMA-20 and another attempt to bust through resistance appears to be on the way…
Note: John, Jon and Terry do not hold share positions in FCU, DAN or MVN. John and Jon hold share positions in GGI while Jon also holds a share position in PGX.
Hi BMR!
Can you tell annything about GMZ?
It have bin a long period of silence and no info.
Can you enlightening me?
Kind Regards
Comment by Bosse — September 26, 2013 @ 6:54 am
From what I understand, they’re making progress on the permit issue but it has taken longer than they expected, though it’s still within the normal time range as far as the state is concerned. I think the company realizes they made a mistake earlier this year in stating when they expected the permit as early as they did, so they’re reluctant to come out and say exactly when right now—-but anytime during Q4 seems a certainty…it’s a pro mining state, they want mining and development and these type of projects are consistently approved…so it remains a waiting game for the patient…
Comment by Jon - BMR — September 26, 2013 @ 7:06 am
Jon could you comment on ugd? Thanks
Comment by odin1 — September 26, 2013 @ 8:18 am
Jon,
Do you know what is the cash position of GGI?
Picked some this morning :-)!
Martin
Comment by Martin — September 26, 2013 @ 10:36 am
GGI……News Release
Garibaldi completes six holes at Tonichi
2013-09-26 16:47 ET – News Release
Mr. Steve Regoci reports
GARIBALDI DRILLS IN MEXICO, STARTS PHASE I PROGRAM AT GRIZZLY PROPERTY
Garibaldi Resources Corp. has provided the following exploration and corporate update.
Highlights:
Mexico: Six new holes drilled at gold-copper target, assays pending;
Mexico: Pilot program at Tonichi generating royalty income;
British Columbia: Garibaldi attacks the Grizzly.
Mexico
Garibaldi has just completed six additional drill holes (LCT-13-11 through LCT-13-16) totalling 987 metres at the Locust target in Sonora state, where a broad envelope of gold and copper mineralization is being tested at shallow depths. Results are expected in the near future. Locust covers 1,200 hectares within the 47,000-hecatre Tonichi land package, one of three 100-per-cent-owned, district-scale projects Garibaldi is advancing in some of the most robust gold-, silver- and copper-producing regions of Mexico. Additional drilling is planned during the upcoming fourth quarter.
Garibaldi is also pleased to report that it’s conducting a pilot program with a private arm’s-length Mexican company to exploit near-surface coal seams over certain areas of Tonichi. This is at no cost to Garibaldi, and since commencing the program in February, 2013, the company has received royalties totalling 701,000 pesos ($56,000 (U.S.)). Garibaldi is very satisfied with the early results of this continuing initiative and is exploring ways to maximize the value of this asset for shareholders. Sonora coal districts are also favourable exploration targets for microcrystalline graphite deposits, and random graphite surface samples from a zone at Tonichi, prospected by a Garibaldi geologist, have been sent to a lab for analysis.
Grizzly property — northwest British Columbia
Garibaldi has just completed, through Precision GeoSurveys Inc., a high-resolution heliborne aeromagnetic and radiometric survey over Grizzly West, a priority target area within the northwest portion of its 175-square-kilometre Grizzly property (100 per cent owned, see updated maps on the company’s website). Results are expected shortly and will guide the next phase of exploration in the weeks ahead. Recent fieldwork at Grizzly West has outlined several areas of exposed porphyry copper mineralization and sizable, open-ended, copper-in-soil anomalies.
The Grizzly property adjoins the western and southern borders of Prosper Gold Corp.’s Sheslay copper-gold porphyry project where a phase 1 drill program is in progress (see Prosper Gold news release Sept. 18, 2013). Based on historical data, known geological structures and associated mineralization, Garibaldi geologists consider the potential within this area of highly prospective Stikine Arch terrane to be significant. The Grizzly is 50 kilometres northwest of Telegraph Creek and 30 kilometres east of the past-producing high-grade Golden Bear gold mine.
Multiple targets — Grizzly West to Grizzly Central
Since acquiring the Grizzly claims in 2006, Garibaldi has identified multiple target areas stretching 15 kilometres from the northwestern portion of the property through Grizzly Central, a large area of low relief immediately below a cluster of copper-gold porphyry targets on the Sheslay property. A Fugro airborne magnetic survey carried out in 2007, over both the southern half of the Sheslay (then known as Copper Creek) and the central part of the Grizzly, showed that the rock units and structures at Grizzly Central are similar to those that underlie the Sheslay property.
Given the increasing strategic importance of the Grizzly, Garibaldi has added the experienced geological consulting group of C.J. Greig & Associates to its team. Garibaldi president and chief executive officer Steve Regoci commented: “We’ve built a solid foundation for the company in Mexico, resulting in a healthy working capital position and a pipeline of advanced opportunities. Our strategy in Mexico involves exploring large land packages and efficiently narrowing down the most prospective areas. In B.C., we’re utilizing that experience in taking the Grizzly to the next level. The strength of our new neighbour (Prosper Gold) in the Sheslay River Valley will complement our exploration efforts at Grizzly. We are well-positioned to seize immediate opportunities in both Mexico and B.C.”
Carl von Einsiedel, PGeo, a non-independent geological consultant and a qualified person as defined by National Instrument 43-101, has reviewed this release and approved the geological content thereof.
Garibaldi retains investor relations
Garibaldi is pleased to announce it has retained the services of MarketSmart Communications Inc. to provide public relations programs, and shareholder and investor communication services effectively immediately. MarketSmart is a Vancouver-based investor communications service that has been in business since 2002. Pursuant to the terms of the agreement, MarketSmart will be paid $6,000 per month and will receive incentive stock options as described below. The agreement is for an initial term of three months and can be terminated by either party at any time, without cause, by giving 30 days notice of termination in writing to the other party. The agreement is renewable at the company’s option and is subject to the acceptance of the TSX Venture Exchange.
Stock option grant
In conjunction with entering into the agreement with MarketSmart, the company announces that it has granted MarketSmart incentive stock options for 250,000 shares of the company’s capital stock, exercisable for one year, at a price of 20 cents per share, which price is not lower than the last closing price of the company’s shares prior to this announcement, less the applicable discount. The options are granted pursuant to the company’s stock option plan, and will be subject to applicable regulatory vesting requirements and hold periods.
Comment by John (BMR) — September 26, 2013 @ 1:04 pm
They had $4.5 million in working capital as of the end of April (last financials). And since then they’ve even had some royalty income per month coming in, as we see from news just out. This one is even more interesting than I thought. Keep in mind, their drilling costs in Mexico are cheap – they own their own drill.
Comment by Jon - BMR — September 26, 2013 @ 1:23 pm
Nice news, these guys are not messing around, about $4,5 M in bank, market cap of 6,19 @ 10 cent. Is this a joke 🙂
Comment by Martin — September 26, 2013 @ 1:46 pm
Maybe you should interview them too Jon! 🙂
Comment by Martin — September 26, 2013 @ 1:49 pm
As previously mentioned, i don’t have any shares in pgx., but i do
hold shares in ggi & must admit, i am pleased with the above noted
NR. The following sentences stick out :
GGI is exploring ways to maximize the value of this asset for shareholders.
Where a broad envelope of gold and copper mineralization is being tested at shallow depths.
Also favourable exploration targets for microcrystalline graphite deposits, and random graphite
surface samples from a zone at Tonichi, prospected by a Garibaldi geologist, have been sent to a
lab for analysis.
Given the increasing strategic importance of the Grizzly, Garibaldi has added the experienced
geological consulting group of C.J. Greig & Associates to its team.
The company announces that it has granted MarketSmart incentive stock options for 250,000 shares
of the company’s capital stock, exercisable for one year, at a price of 20 cents per share,
Overall the NR is an excellent first start. Also, MarketSmart will require 0.20 plus before exerciing
their options. R !
Comment by Bert — September 26, 2013 @ 2:09 pm
GREAT NEWS BY GGI TO KICK OF THINGS FINALLY!!!!
Comment by STEVEN1 — September 26, 2013 @ 4:35 pm