Gold is strengthening after dropping as low as $1,336 overnight…as of 7:30 am Pacific, bullion is unchanged at $1,347…it hit a 4-week high yesterday…Silver is off 27 cents at $22.46…Copper is down 2 pennies at $3.23…Crude Oil has gained 49 cents to $97.60 while the U.S. Dollar Index is flat at 79.20…
Interesting article by David Franklin, market strategist for Sprott Assett Management, at www.GoldInvestingNews.com yesterday afternoon…Franklin investigated Gold inflows into China this year and has found a direct link between China’s physical Gold deliveries and the drop in Gold inventories within the COMEX and GLD ETF…physical Gold, according to Franklin, was redeemed out of the largest ETF’s, shipped to Switzerland from the UK for vaulting or refining purposes with a significant portion then sent to Hong Kong for Chinese consumption (UK Gold exports to Switzerland jumped more than 10-fold in the first 8 months of this year compared to 2012)…the 2 largest Gold exporters to Hong Kong in 2013 have been Switzerland and the United States…earlier this year, Sprott calculated that one-third of China’s import growth has been driven soley by its citizens’ desire to own Gold and not from a growing domestic economy…recorded demand for Gold from China’s private sector has escalated to the point where it now accounts for significantly more than the rest of the world’s mine production…the Shanghai Gold Exchange, in the first 8 months of this year, delivered 1,730 tonnes into private hands (an annualized rate of 2,600 tonnes)…excluding China, the world mines an estimated 2,300 tonnes per year…“How this massive movement in Gold can coincide with a Gold price drop of $359 U.S. per ounce so far in 2013 is beyond our capability to explain. But it does mean that China is now the undisputed destination for physical Gold and that this trend shows no signs of slowing down,” Franklin concluded…
Global Exploration Declines Nearly 30% In 2013
The worldwide budget for nonferrous metals exploration in 2013 was $15.2 billion, a 29% drop from the 2012 level, according to a metals research group as reported by Kitco (nonferrous includes precious and base metals, diamonds, uranium, and some industrial minerals, and excludes iron ore, aluminum, coal and oil and gas)…SNL Metals Economics Group studied data collected from nearly 3,500 global mining and exploration companies, of which more than 2,100 had exploration budgets for 2013…the research group said the companies budgeted a total of $14.43 billion for nonferrous exploration in 2013…“Including our estimates for budgets we could not obtain, the 2013 worldwide exploration budget came to $15.2 billion,” they said…
Exploration for new deposits is decreasing while the world’s overall demand for metals continues to increase – which is why there is such an historic opportunity at the moment in certain high quality, well-funded juniors who are actively developing and searching for deposits that majors will want to buy over the next few years…
Today’s Markets
Asian stocks were dealt a blow on the final trading day of the week as concerns over a repeat of June’s credit crunch in China overshadowed gains on Wall Street…China’s Shanghai Composite fell another 31 points overnight to close at 2133, a 7-week low…China’s short-term money market rates continued to spook investors after the 7-day repo rate, a key gauge of liquidity, rose to 4.8% today while the overnight repo rate jumped to 7.5%, its highest level since June…Japan’s Nikkei average fell 398 points or 2.75% to close the week at 14088 as the yen experienced its biggest 1-day fall in over 2 months…
European shares pushed off session lows and turned slightly higher after growth data from the UK gave investors encouragement…
The Dow is up 16 points as of 7:30 am Pacific…U.S. consumer sentiment dropped in October to its lowest level since the end of last year…the TSX is up 14 points while the Venture is off a point at 972…a close above 973 today (yesterday’s close) would confirm a Venture breakout through the 955-970 resistance band as per John’s chart yesterday…
CDNX – U.S. Dollar Index Comparative Chart: Venture’s Move Is For Real
Below is a very revealing chart from John on the behavior of the Venture in relation to the U.S. Dollar Index…a few weeks ago, John noted how the Dollar Index had broken below a 2.5-year uptrend on the weekly chart – this was a clear indication that Gold was likely going to power higher and that the Venture bear market might indeed have finally run its course…the correlation between the Venture and the Dollar Index is extremely high…
As you can see in this 3-year weekly chart from John, the Venture topped out in late 2010/early 2011 just as the Dollar Index was bottoming out in the low 70’s…the greenback then reversed with a strong uptrend that continued through the rest of 2011 with a brief correction early in Q3 that year…another correction occurred during the 1st quarter of 2012 when the Venture rallied to the top of its down trendline at 1700…
The Dollar Index’s bull run finally ran out of steam at the end of June/early July this year when it met very stiff resistance in the mid-80’s at the same time as the Venture was into an extended oversold RSI(14) condition…since then, the Dollar Index has broken below its uptrend in place since 2011 while the Venture has just broken above its down trendline line…
The Venture’s RSI(14) on this 3-year weekly chart has plenty of room to move higher before getting into overbought territory…in fact, the uptrend in this RSI is very different in its look than during any other Venture rally over the past couple of years…it’s also now threatening to push above resistance…at some point the Dollar Index can be expected to rally, but it’ll be a rally within the context of an overall new downtrend…this is why investors should take this Venture move since June very seriously – the Index is now at a 6-month high and the technical evidence strongly suggests that the next 6 months should be even better…it’s critical, though, to stay focused on high-quality situations – companies with the working capital, the expertise at the management and geological levels, the right properties in the right jurisdictions, attractive share structures, and the desire to be active and drive shareholder value…the 2.5-year bear market has severely weakened hundreds of companies, and it will actually be good for the Venture if many of those companies simply disappear…
CDNX – U.S. Dollar Index Comparative Chart
Unigold Inc. (UGD, TSX-V)
Unigold Inc. (UGD, TSX-V) was the Venture’s 2nd most active stock yesterday as it climbed a penny-and-a-half, or nearly 25%, to close at 8 cents following the release of strong drill results from the its 100%-owned Neita concession in the Dominican Republic…keep in mind that while this property has excellent potential and yesterday’s results were very good, showing continuity of mineralization, the 3 holes were drilled into the heart of a known mineralized zone for metallurgical testing and in advance of an initial resource estimate…LPMET01, drilled down-dip, returned 423.6 metres grading 1.07 g/t Au and 1.2 g/t Ag along with Copper and Zinc values…
UGD has a lot of shares outstanding (about 250 million) and will need heavy volume to push through stiff resistance up to 10 cents…will be interesting to watch…UGD is starting to recover after putting in what appears to be an important bottom over the summer based on this 15-month weekly chart…UGD is off half a penny at 7.5 cents as of 7:30 am Pacific…
Garibaldi Resources Corp. (GGI, TSX-V) Long-Term Chart
The technical evidence favors an important breakout in Garibaldi Resources (GGI, TSX-V) in the near future, perhaps as early as next week…GGI has a huge advantage over many of its peers at the moment – the company is very active on the ground in 2 friendly jurisdictions (Mexico and B.C.), with of course the largest land position of any junior in the rapidly emerging Sheslay Valley exploration camp – an area that we believe is destined to become B.C.’s Cu-Au exploration hotspot…from a share structure standpoint, many companies right now are battling a “paper” problem – so many dilutive financings over the past 2+ years have created an “overhang” in the markets of many stocks…GGI, fortunately, does not have that issue as they haven’t had to do a financing in over 4 years…GGI’s latest financials, ending July 31, show $4 million in working capital, and the company has monthly cash flow from operations in Mexico with the potential for much greater revenue and profits over the next couple of years…these are all reasons why GGI in our view is going to be one of the first out of the gate and thrive as the Venture’s bullish new phase continues to evolve…this 10-year monthly chart from John clearly shows that GGI is in the early stages of a major new uptrend…
Colorado Resources Ltd. (CXO, TSX-V) Updated Chart
Trading activity in Colorado Resources (CXO, TSX-V) has been interesting this week with increasing volume and a corresponding jump in the share price…more assay results are pending from CXO which disappointed investors over the summer, but that could quickly change if they’re able to deliver results comparable to their 1st hole…technically, the stock is showing signs it wants to move higher – there is fresh new momentum after a nasty slide that took CXO down as low as 24 cents…it’s unchanged at 32.5 cents on light volume so far today as of 7:30 am Pacific…
Note: John and Jon both hold share positions in GGI.
Is anyone here following DBV?
Comment by kdcdoggy — October 25, 2013 @ 7:55 am
290 000 bid @ 13 🙂
Comment by Martin — October 25, 2013 @ 8:37 am
Lots of news flow coming up soon:
SAM year end financial results next week/drill results next month or 2
TMM Q3 financial results next week, updated reserve estimate pending
PGX drill results (next week?)
GGI drill results
BRD financial results November 12
Comment by Justin — October 25, 2013 @ 9:02 am
Martin
Martin-up (joking). You could have told us which stock is bidding
290K at 0.13. R !
Comment by Bert — October 25, 2013 @ 9:13 am
Loll Bert, GGI was the one, stays there for about 10 min that it disapeard,
Comment by Martin — October 25, 2013 @ 9:56 am
5.it as disapeared, sorry!!
Comment by Martin — October 25, 2013 @ 9:58 am
Lol…gotta be GGI
Comment by Greg J. — October 25, 2013 @ 10:52 am
Guys, this stock will fly it is written all over. What do you want them to do, deliver the share to your door :-p
Comment by Martin — October 25, 2013 @ 11:03 am
I am beginning to see some positive signs in stocks that
have been trampled on over the last 2 years. For example,
HRC, which was trading at around 0.045 a week or so ago,
is trading today at 0.10 with an high of 0.12, volume
5 million shares. Other signs are also out there. R !
Comment by Bert — October 25, 2013 @ 11:09 am
Martin whos complaining????
Comment by Greg J. — October 25, 2013 @ 12:27 pm
What happened to the rumor that a well known analyst/writer was going to recommend the Sheslay area and 2 or 3 companies? Anyone know if it happened yet? I guess we should know next week what the assays will tell us from hole 4, 5 and 6. I would think assays should be close for GGI’s Mexico property as it has been a while since drilling stopped there. These were shallow holes so I wouldn’t think it would take that long.
Comment by Dan — October 25, 2013 @ 12:58 pm
Sentient buys more Today – Wow this bodes well for this company and it’s future. Rumors of drilling sooner next year.
N.A. Nickel investor acquires 3.29 million more shares
2013-10-25 16:44 ET – News Release
Ms. Sue Bjuro of Sentient Executive reports
SENTIENT IV ACQUIRES COMMON SHARES OF NORTH AMERICAN NICKEL INC.
Sentient Executive GP IV Ltd. purchased 3,298,500 common shares of North American Nickel Inc. on Oct. 25, 2013, by private agreement at a price per share of 42 cents.
Taking into account the purchase of the shares, Sentient IV has control over 58,127,098 common shares of North American Nickel, representing approximately 41.38 per cent of the outstanding North American Nickel shares.
Sentient IV acquired the shares for investment purposes only and not with a view to materially affecting control of North American Nickel.
© 2013 Canjex Publishing Ltd. All rights reserved.
Read more at
stockhouse.com/companies/bullboard/v.nan/north-american-nickel-inc?postid=21850385#CoqkQlpZqkeEIMD0.99
Comment by Dan — October 25, 2013 @ 1:47 pm
Patience, Dan. Keep in mind most of these newsletter writers/analysts come out with stuff on a scheduled basis, sometimes every 2 weeks, once a month etc……they could be waiting as well for additional info to fill out the story, and we all know news is imminent from at least 2 companies in the area. With regard to GGI, it’s safe to assume I think that an update on Mexico including drill results from Locust are imminent. Mexico is looking strong with the Tonichi Project and La Patilla.
Comment by Jon - BMR — October 25, 2013 @ 2:18 pm
12.Nobody Greg, i was trying to make a joke, the problem is my english is so bad!
Have a nice week-end
BMR forget post 12 ********
Comment by Martin — October 25, 2013 @ 2:18 pm
meaning those share were still cheap
Comment by Martin — October 25, 2013 @ 2:27 pm
Got it Thanks,so where’s your homeland?
Comment by Greg J. — October 25, 2013 @ 4:18 pm
Martin, your English may not be perfect – mine sometimes isn’t either, at least according to my friend Bert, but you get an “A” for effort and your participation here is greatly appreciated! Enjoy a relaxing weekend. We have an exciting week coming up.
Comment by Jon - BMR — October 25, 2013 @ 4:39 pm
Laval, Quebec North of Montreal, you Greg?
Comment by Martin — October 25, 2013 @ 4:41 pm
Thanks Jon, you to!
Comment by Martin — October 25, 2013 @ 4:48 pm
Your Honor – This court is now in session. What brings you here Mr. Coish ?
Bert – My so called friend Jon is accusing me of not pronouncing my E’s, he stated
under the guise of being his friend, the following quote at least according
to my friend Bert, you get an “A” for effort unquote The next thing he will
claim that i don’t pronounce my H’s.
Your Honor – And what do you have to say for yourself Jon ?
Jon – Well, you know, well, ahhhhhh (hardly audible)
Your Honor – Speak up Jon
Jon – I am doing the best i can your Honor, i have never been in court before.
You Honor – Sorry ! but i have to teach you a lesson Jon. I hereby sentence you to
refrain from promising your followers, that your picks are about to go in
orbit & that you will let the drills do the talking from now on.
Comment by Bert — October 25, 2013 @ 5:31 pm
Martin My wife flies to montreal 5 times a year(business) We recently moved from Kerrisdale BC (Van.) east to a small town,Abbotsford. Closer to family mom,,brother in laws etc. Have a good one!!
Comment by Greg J. — October 25, 2013 @ 5:43 pm
Re: Bert’s post, continued (lol)…
Jon: But your honor, the drills ARE doing the talking!
Your Honor: Please elaborate.
Jon: 312 metres, 269 metres and 274 metres of Cu-Au grades comparable to Red Chris reserve grades on the first 3 holes.
Your Honor: Interesting, tell me more.
Jon: And the drills are still talking – they’re saying mineralization from surface to 600 metres on the 4th hole – it’s getting even better. The deepest mineralization ever found on this property! Assays are due very soon.
Your Honor: Wow, that’s quite amazing.
Jon: Yes it is, and this is just one of 4 major targets within a 12 sq. km area.
Your Honor: 12 sq. km, that would make a world class deposit!
Jon: That’s not all, your Honor.
Your Honor: Ok, continue.
Jon: 5 km to the southwest of where these holes have been drilled, there is another target – the 5th one – called Pyrrohite Creek. And based on historical drill holes and other work, this target covers an area at least 2 km long and at least half a kilometre wide.
Your Honor: Now you really have my attention.
Jon: I figured I would. But it gets even better.
Your Honor: Continue, please.
Jon: This property, with all these targets, it covers an area about 65 sq. km. And it seems to be connected geologically to another property alongside it that’s almost 3 times the size and has this big heat engine by the name of Kaketsa and these 2 parallel faults that run for 15 km and are related to Copper and Gold occurrences on both properties.
Your Honor: Incredible! Do you have the documents to support these statements?
Jon: Absolutely, your Honor, here they are.
Your Honor: Prosper Gold and Garibaldi Resources, interesting. Mr. Pete Bernier and Mr. Dirk Tempelman-Kluit. I remember those individuals, didn’t they make a very big discovery a few years ago?
Jon: Yes, your Honor, one of the biggest Gold discoveries ever in Canadian history, west of Ontario. And they won awards for it. That company was Richfield. Some of our readers became very, very wealthy because they were buying it at less than a dollar after the first few big holes and it went to more than $10 a share on a takeover by New Gold.
Your Honor: Can you give me the stock symbols, please, for Prosper and Garibaldi? And where are these properties?
Jon: Certainly, your Honor. PGX and GGI. They both trade on the Venture. PGX was up 10% this week. GGI was up 10% too. Volume is picking up on both. Could be just the beginning because so many people don’t know about this yet. The properties are in the Sheslay Valley in northwest B.C., along the same trend – the Stikine Arch or the Golden Triangle – that has produced some of the biggest and richest deposits in the entire province.
Your Honor: Thank you. I’ll be picking up some on Monday morning. You are free to go, and keep spreading the word. The facts are on your side so far. This could be truly remarkable, and just what the market needs!
Comment by Jon - BMR — October 25, 2013 @ 6:46 pm
Lol
Comment by Paul — October 25, 2013 @ 6:59 pm
Lol, Jon’s fault,
Comment by Greg J. — October 26, 2013 @ 4:40 am
Jon
Looking for some credit here this morning,. My case against you served a desired purpose,
that was to highlight your work & get more buyers involved. How high is high, when one can
say, he was indirectly responsible for getting an Honorable Judge involved. R !
Comment by Bert — October 26, 2013 @ 5:41 am
Bert, yes, you get a pat on the back this morning, and it’s great when we can have a little fun here. Your contributions are always appreciated and draw input from others as well. Have an awesome weekend! Cheers.
Comment by Jon - BMR — October 26, 2013 @ 5:48 am
Article on Sheslay and Grizzly. Dated Oct 24, 2013. This article is very interesting and adds to the excitement for me. Jon, everything you have been saying so far regarding the area is spot on. Thank you
stockhouse.com/companies/bullboard/v.pgx/prosper-gold-corp?postid=21851292
Comment by Dan — October 26, 2013 @ 7:00 am
Ditto, would not be the same without the Bert!
Comment by Greg J. — October 26, 2013 @ 7:35 am
Jon keep forgetting to ask, hows the loved one?
Comment by Greg J. — October 26, 2013 @ 7:36 am
Thanks, Dan, I was so busy yesterday and didn’t catch that – terrific article, and some awesome maps. The media is starting to catch on to what’s unfolding here. Keep in mind, about 40 drill holes in total have been poked into the Sheslay, and they have shown remarkable consistency. So it’s based on these drill holes, the geophysics, the soil sampling, trenching and other work that provides such strong evidence of a robust system over a very wide area. We also have the evidence of the drill core. You do not get multi-directional veining and multi-generations of veins in so much core without the presence of a strong hydrothermal system. That’s a geological fact. In terms of the Grizzly, airborne and IP surveys and extensive sampling over the last several years have shown everything from pipe-like structures to a possible collapsed caldera to alteration and mineralization styles virtually identical to those seen at the Sheslay. You have the Kaketsa heat engine, two-thirds of which is on the Grizzly, and two parallel faults running 15 km from Grizzly West to Grizzly Central which are related to mineralization on both properties. So what we have here are all the earmarks of a Red Chris or Schaft Creek style of discovery. Over the next 12 months, incredible wealth could be created from this. Keep in mind, both these properties are in the hands of some of the best geologists in the country, and there are market and business leaders at the helm of these 2 companies.
Comment by Jon - BMR — October 26, 2013 @ 8:18 am
Thanks, Greg, he was released from hospital but is back in hospital with an infection that was incurred while in hospital. Very long recovery process, with 1 leg amputated just below the knee. The dangerous thing at the moment is the infection because sometimes it’s not a horrible accident like this that kills you, but infections that occur after surgeries. I think he’ll get through it but there is still plenty of cause for concern at the moment.
Comment by Jon - BMR — October 26, 2013 @ 9:04 am
From what the article says it appears that GGI will not be drilling until the 2014 spring/summer drill program. We already know that PGX will only be drilling next spring/summer so it leaves DBV to bring some excitement to the area until the next drill program starts for both PGX and GGI. I’m looking forward to seeing the results of PGX’s three holes..
Comment by Paul — October 26, 2013 @ 1:01 pm
Lots of results to come out over the next few weeks, and as one of our readers mentioned who listened to GGI’s webinar from Wednesday, fieldwork can be conducted over the winter (GGI has done it before). GGI’s issue is to prioritize drill targets, and that’s a process they’re going to be working through in the coming weeks and months as they learn more information. When you have multiple targets over a 15 km distance, picking and choosing the best ones to drill first is a challenging task and one that you need to get right. It was easier for Prosper because of the previous drilling at the Star. As far as drilling goes, GGI will have plenty of it over the fall and winter in Mexico which is a huge advantage for them. Yes, you’re right about DBV – they’re currently drilling contiguous to the Sheslay and the Grizzly so investors will be watching that closely.
Comment by Jon - BMR — October 26, 2013 @ 1:11 pm
Sorry Jon, I’m aware GGI is drilling in mexico, I was refering to GGI drilling on the Grizzly next year.
Comment by Paul — October 26, 2013 @ 1:26 pm
It’ll be interesting to see what DBV comes up in their 2nd round at the Hat. There’s every reason to anticipate more solid drill results from Prosper, and with Dirk doing a major presentation on the Sheslay a week from Tuesday, I think the odds of us seeing something very good, very soon, are rather high.
Comment by Jon - BMR — October 26, 2013 @ 1:30 pm