Gold has traded between $1,346, just above its 50-day moving average (SMA), and $1,354 so far today…as of 4:30 am Pacific, the yellow metal is down $2 an ounce at $1,351…Silver is off 11 cents at $22.49…Copper is flat at $3.26…Crude Oil is 17 cents lower at $97.68 while the U.S. Dollar Index is unchanged at 79.22…
There are signs of improving investor demand for Gold, but stronger buying is needed from the physical market, according to Barclays in a report carried by Kitco this morning…the number of open Comex positions has increased with the price and is now at the highest level since mid-August, implying fresh longs, the bank says…“The (recent) price increase is being carried by investor interest, and weaker-than-expected macro data has scope to bring on board greater investment buying, but prices lack support from the physical market for sustained gains, in our view”…
Credit Suisse precious metals analysts led by Tom Kendall said in a report last week that the macro environment has not shifted enough for Gold to challenge its late-August high above $1,400, though UBS commodity analysts disagreed…“The shutdown showdown and the short-term punt of the budget fight to early 2014 delays in our view the Fed taper from December 2013 to March 2014,” said UBS’ Dominic Schnider and Giovanni Staunovo…taper delays will fuel “weakness in the U.S. dollar and the subsequent strength in the Gold price could run further in the coming weeks,” they said, adding that if the euro tested $1.40 against the dollar, that “would facilitate a Gold price move above $1,400“…
The euro and Gold have been moving together recently, while the dollar is now trading at a 2-year low ($1.38) vs. the single European currency…
Yukon Dan And Gold Fever In The Classroom
Yukon Dan gives "Gold fever" to students in B.C. classrooms with a powerful, interactive presentation that also teaches the students about minerals and the importance of mining.
The work that Yukon Dan is doing in the classrooms of British Columbia (and elsewhere across the country) has drawn the much-deserved support of New Gold Inc. (NGD, TSX), Teck Resources Ltd. (TCK, TSX) and AME BC (Association for Mineral Exploration British Columbia), and BMR is also doing everything it can to assist this very worthwhile project…last week, we were with Yukon Dan as he conducted 2 terrific presentations for Grade 4/5 students at a school in Richmond, B.C. – we’ll have much more on that this week including a short video clip of Dan in action…what he’s doing from the elementary to high school levels is hugely supportive of the mining industry…
High Gold Premiums In India
Gold buyers in India are paying big margins over the international price, with choked-up supplies and a fast approaching key festival season to blame…wholesale buyers such as jewelers are reportedly paying up to $150 a troy ounce over the international price, excluding taxes, local traders are saying, compared with about $3 a year ago and $50 a couple of weeks ago…
India, which imports almost all of the Gold it consumes, levies a 10% import tax, increasing costs further for local buyers…add to that the sales tax and value-added tax, and Gold was selling at 32,000 rupees ($520) per 10 grams, or $1,617 an ounce, Friday, up about 6% in October…
The premium that Indian buyers pay is expected to widen further over the next few days, according to traders…some added that Gold smuggling is likely to increase due to the festival season demand-supply gap…
Demand peaks around Diwali – the festival of lights, celebrated this year on Nov. 4 – because of a Hindu belief that buying Gold during the period brings good luck…demand usually remains strong through December as the wedding season follows the festival period…
Today’s Markets
Japan’s Nikkei average enjoyed a strong rebound today from a two-and-a-half week low on Friday…the Index shot up 308 points or 2.19% overnight to close at 14396…
China’s Shanghai Composite stabilized and finished 1 point higher overnight after a drop of more than 2% last week…the Index is up 15% from this year’s low in late June but still down 6% for the year…
Data over the weekend showed an 18.4% annual jump in profits for Chinese industrial firms in September, but that figure was below the 24.2% jump seen in August…the recent launch of a free-trade zone in Shanghai and expectations for economic overhauls at a Communist Party meeting next month are providing encouragement that China will continue with much-needed structural reforms to re-balance its economy…the changes next month are expected to include greater access to the economy for private and foreign investors, further economic deregulation and moves to allow increased mobility of the population…
European shares are mixed in late trading overseas…in New York, meanwhile, stock index futures are pointing toward a modestly higher open on Wall Street…
The TSX closed at 13399 Friday while the Venture finished at 974…we’d like to see the Venture move with some conviction (like a 10-point gain) on higher volume to confirm a breakout above the important 970 resistance level…at the moment, 955 is the new support after the confirmed breakout above that level…
Sheslay Cu-Au Porphyry Project Presentation At Discovery Center – Geological Survey Of Canada
Pete Bernier (left) and Dirk Tempelman-Kluit (right) were the 2011 AME BC Award Recipients for Excellence in Prospecting and Mineral Exploration.
Prosper Gold Corp. (PGX, TSX-V) Update
The fact that Dr. Dirk Tempelman-Kluit will be giving a major presentation on the Sheslay Project a week from tomorrow (Tues., Nov. 5th) at the Geological Survey of Canada Discovery Center in downtown Vancouver should be considered a strong indication, in our view, that the pieces of the Sheslay puzzle are coming together very nicely…drill results from holes 4, 5 and 6 (S027 through S029) are expected shortly, and any 1 of those could prove to be a major game-changer as they were each drilled to depths never previously tested at the Sheslay…hole 4, in particular, could grab the attention of the market as it intersected mineralization from the surface to the bottom of the hole at 598 metres…
Prosper Gold (PGX, TSX-V) carried out an extensive Phase 1 exploration program at the Sheslay which included 2,300 metres of drilling in 6 holes, IP and airborne surveys, and soil geochem grid sampling over a wide area…what’s going to emerge out of this, we believe, is a much greater understanding in the minds of investors of the scale and potential of this project…all of the geological evidence so far is pointing toward a deposit or series of deposits consistent with others in the Stikine Arch…with a current market cap of just $13.75 million, based on Friday’s closing price of 55 cents, that means PGX is trading at a huge discount to the value equation that’s emerging on the ground given historical drill data and results to date from Prosper…the Sheslay is a robust hydrothermal system with a minimum of 5 known Cu-Au porphyry targets, some of which could link together…
PGX Updated Chart
We can’t stress enough to investors how important share structure is…that’s 1 more reason we’re so bullish with regard to both Prosper Gold and Garibaldi Resources (GGI, TSX-V), the largest landholder among junior companies in the Sheslay Valley…
PGX has just 25 million shares outstanding with two-thirds of that total locked up from trading due to the 4-month hold on the August financing and escrow provisions…with only 9 million free-trading shares at the moment – most of which are believed to be in very tight hands – one doesn’t have to be a mathematician to figure out the potential impact of a sudden surge in demand for PGX stock in this kind of a limited supply situation…if Prosper delivers a stellar hole, the share structure set-up is extremely bullish…
Technically, PGX is in an ideal position for a substantial move higher given the RSI(14) condition and the bullish SS crossover…the stock closed above resistance at 50 cents Friday…
Garibaldi Resources (GGI, TSX-V) Updated Chart
Garibaldi Resources (GGI, TSX-V) showed increased volume Friday as it touched its highest level (14.5 cents) in 2 months, a bullish sign…GGI is benefiting from an effective 1-2 punch on the exploration side, focusing on the highly prospective northwest portion of the Grizzly Property – contiguous to Pyrrhotite Creek and the rest of the Sheslay – while also advancing its assets in Mexico where GGI will be drilling throughout the winter…historical reports show a striking similarity in alteration and mineralization styles between the northwest part of the Grizzly and the Sheslay, and preliminary results from an airborne survey carried out by GGI last month confirm that the rock units and structures underlying the Grizzly extend onto the Sheslay…more news from the Grizzly and Mexico is expected very soon…
GGI is also benefiting from a healthy share structure…many Venture companies have blown up their share structures over the past couple of years because of their need to raise money just to survive…GGI hasn’t had to carry out a financing since early 2009, keeping its outstanding share count to 58 million with no warrants…the company is also currently generating modest monthly cash flow out of operations in Mexico, income that could increase significantly over the next couple of years…
John’s 4-month daily GGI chart shows increasing buying pressure and the growing likelihood of a near-term breakout above the horizontal channel toward the next Fib. target (24 cents)…
Arianne Phosphate Inc. (DAN, TSX-V) Update
Arianne Phosphate (DAN, TSX-V) enjoyed a strong day Friday, gaining 19 cents to close at $1.44 after releasing very positive results from a feasibility study on its Lac a Paul Phosphate Project in Quebec…DAN has positioned itself well, we believe, for a possible takeover by a company that could put this project into production…
The feasibility study shows an internal rate of return of 20.7% with a capital payback of 4.4 years before taxes and mining duties…the estimated mine life is 25.75 years with average annual phosphate concentrate production of 3 million tonnes grading 37.6% phosphorus pentoxide and an average mill recovery of 90%…importantly, the all-in cost on board the ship in the Port of Saguenay is estimated at $93.70 per tonne life of mine, yielding an operating margin of 56% with an average selling price of $213 per tonne at the port…those are robust numbers, and the stock responded well Friday with a sharp gain on its best volume in more than 2 years…
Since November, 2011, DAN has traded in a horizontal channel between 81 cents and $1.47…it could be ready now for a breakout above the $1.47 resistance…below is a 3-year weekly chart from John…
Azincourt Uranium Inc. (AAZ, TSX-V) Update
Azincourt Uranium (AAZ, TSX-V) continues to look strong and may soon once again challenge resistance at 33 cents…if you’ve been following AAZ, a simple money-making trading strategy has been to accumulate near the bottom of the horizontal channel and sell near resistance…at some point we do expect AAZ to bust through that resistance level (see John’s Fib. target in the 15-month weekly chart below) as this is a strong story and a hot area play…a 2,500- to 3,000-metre diamond drill program is planned for this winter on existing and some newly generated targets in the central and southern PLN project area…
Updated Silver Charts
Short-Term Chart – 6-Month Daily
Strong support from $21.40 (Fib. 38.2%)…Silver appears to have lost a little bit of momentum, short-term, but we’ll see if that changes this week…a couple of closes above $23 would be very bullish…
Long-Term Chart- 13-Year Monthly
The long-term chart is interesting and shows the possibility of a powerful move higher after a bottoming out around $18 an ounce…
Note: John and Jon both hold share positions in PGX and GGI.
Having had time to ponder, here i am again.
As mentioned yesterday, i was just waiting
for someone to complain & it had to be my
cyber buddy Jim, whose posts i appreciate.
Most of my posts are written for fun, in
other words, i am a jester. I would suggest,
rather than complain, maybe the reader should
just skip particular posts & move on. Because
my posts showed up, it means they were sanctioned
as being okay by the site owner, or an associate,
who are catering to us, as potential paid subscribers.
It really doesn’t matter if i ever post again, i do
have other sites & i do have the pleasure of continuing
to read Jon’s musings & checking John’s chart readings.
I feel i have something to offer, if the market ever shows
signs of being normal again. No doubt, you now realize
that i am easily discouraged, so until that leaves me,
i will content myself by sitting back & continue planning
how to make a dollar out of fifty cents, but be reminded, i
no not looking whatsoever for support, just trying to pick
some sense to it all. For now, the fool from Newfoundland
will take a break . Have a good day. Respectfully !
Bert
Comment by Bert — October 28, 2013 @ 4:09 am
LETS GO PGX, GGI, DBV, ABR!…PGX FINALLY LOOKS READY TO FLY UP!!!
Comment by STEVEN1 — October 28, 2013 @ 6:06 am
Jon, as of September 13 GGI has 4million in change in options outstanding so fully dilluted its stand at aprox 62 million shares. According to Sedi.ca insiders are showing holding aprox 10 million common shares and 4 million options.
Comment by Paul — October 28, 2013 @ 6:07 am
PGX 0.63 good volume, 🙂
Comment by Martin — October 28, 2013 @ 6:36 am
Sounds correct to me. Management holds close to 20%; Sprott holds about 20% as well.
Comment by Jon - BMR — October 28, 2013 @ 6:38 am
And Jon hold about 20% as well :-p
Comment by Martin — October 28, 2013 @ 6:46 am
lol, not quite, Martin, but building.
Comment by Jon - BMR — October 28, 2013 @ 6:47 am
120 000 GGI, 20 000 FTR,
Comment by Martin — October 28, 2013 @ 6:49 am
A rumour from another site says PGX results after close of market to-day. Hope so. Richard l
Comment by richard l — October 28, 2013 @ 7:27 am
Jon,
Do you think that we will see continued drilling after the next 3 holes are released?
Or do you think that mgmt will shutdown for the winter?
Comment by Frank — October 28, 2013 @ 11:55 am
So this would mean it would not be halted tomorrow, different procedure?
Comment by Martin — October 28, 2013 @ 11:58 am
Frank, PGX management never has things (overall at least) in “shutdown” mode. They will keep the news flowing and activity happening, on whatever front IMHO. While winter drilling can certainly be carried out in the Sheslay area – I’ve mentioned this before – they have so much data to sort thru, they’re going to have to spend this first winter going thru that data in preparation for a massive drill campaign in 2014 that will probably involve at least 3 rigs I suspect. This is exactly how things unfolded at Blackwater – they made a discovery in late 2009, did not drill that first winter, prepared for a very active 2010 and then went from spring right thru the winter of 2010 before selling the project in 2011 for half a billion. Having said that, this does leave a “gap” for PGX to fill. This is a very smart group – I’m sure they’d like to see their warrants exercised soon at 60 cents (brings in $3 million) which means the stock has to be north of 80 cents for an extended period. They also realize they have 10 million free trading PP shares at 35 cents entering their market in January. So to keep activity flowing in the absence of actual drilling at the Sheslay, I wouldn’t be surprised if they announced another project that would keep them occupied on the ground over the winter. They can walk and chew gum at the same time – prepare the next extensive phase of drilling at the Sheslay, and introduce a 2nd property into the mix. That’s my theory anyway. I’m confident we’ll see some very nice numbers from the Sheslay and results from all the other work they’ve done will really help paint the big picture.
Comment by Jon - BMR — October 28, 2013 @ 12:12 pm
Jon,
I spoke to Pete B. a month ago and he did mention that they will work on a mexican property during the the winter months in canada. I forgot this until you reminded me about a 2nd property.
Thanks
Comment by Frank — October 28, 2013 @ 12:20 pm
Will we see PGX news tomorrow? Little more interest today but no cigar yet.
Comment by Dan — October 28, 2013 @ 3:57 pm
Fission Uranium and Kaminak Gold will be exhibiting at the New Orleans Global Investment conference.
Comment by Alexandre — October 28, 2013 @ 7:09 pm
PGX out with news, not what was expected..
Comment by paul — October 29, 2013 @ 5:35 am
Pgx news out but no glory hole!
Comment by Paul — October 29, 2013 @ 5:36 am
Sorry Guys for the double post, I thought my post didn’t go through the first time. All though the intersection was deep the results dissapointed the market and what was far from what was being tossed around BMR. Its a good thing the share float is tight or this could have really sold off.
Comment by Paul — October 29, 2013 @ 5:44 am
No glory hole for sure, but very respectable numbers nonetheless when you’re looking at 334 m @ 0.35% Cu, 0.11 g/t Au; 144 m of 0.45% Cu and 0.26 g/t Au, and 252 m of 0.34% Cu and 0.21 g/t Au. Those are solid intersections. They hit mineralization below 500 m in hole 4 (S027) but the market was hoping for something better out of this particular hole. PGX is recovering from some knee-jerk selling and GGI will too.
Comment by Jon - BMR — October 29, 2013 @ 5:44 am
Sorry to hear about pgx results guys and subsequently, those who are holding ggi. These results, imo, proves that you/we need to invest in companies that have more than just a drill program going for them. Which is why, and you can classify this as a pump if you want, I am invested in Inca One (v.io). Check them out incaone.com and see for yourself. It may take a while before the s/p really starts to move but management has taken the correct steps,imo, to ensure their shareholders aren’t invested in a one trick pony. GLTA
Comment by Tony T — October 29, 2013 @ 5:54 am
Wow, all this talk about glory holes and this is the results they produce. Market speaks, horrible results all around. Rbw 2.0
Comment by OldMan — October 29, 2013 @ 6:08 am
Jon, the market won’t pay for respectable numbers. Expect pgx to stay in this SP area til mid next year at least. Well, on to the next relentless pump while hoping readers have short memories
Comment by OldMan — October 29, 2013 @ 6:26 am
The only hope for GGI in the short term is it’s Mexico property IMO. The market don’t care these days about samples, geophysical surveys, etc. It wants solid drill results. PGX delivered have decent results over long intervals, but the market was expecting much more. It will heat up again this spring.
Comment by Dan — October 29, 2013 @ 7:21 am
Awfully quiet today. Check out DBV. Currently drilling and should have results in several weeks. Lots of time to get back into PGX
Comment by kdcdoggy — October 29, 2013 @ 7:30 am