Gold has traded between $1,314 and $1,324 so far today…as of 7:20 am Pacific, bullion is down $1 an ounce at $1,318…Silver is off a dime at $21.86…Crude Oil (WTI) is up another 47 cents to $102.90 as inventories continue to shrink due to cold weather…Copper is flat at $3.27 while the U.S. Dollar Index is up slightly at 80.08…
According to a report in the Wall Street Journal this morning, based on information from a senior government official, India is likely to cut the import tax on Gold before the end of next week by between 2% and 4% from the current level of 10%…India’s government had gradually raised the import tax on Gold to 10% from 2% since early 2012 to bring down a current-account deficit…it tightened restrictions further last year by asking importers to re-export at least 20% of the Gold they bring into the country…winds of political change are blowing in India, and this could lead to a further easing of rules on Gold imports after national elections in June…the restrictions have led to a sharp rise in smuggling of Gold through India’s airports, seaports and by land from its neighbors Nepal and Bangladesh…nearly all the Gold consumed in India has to be imported and official supplies through banks have nearly dried up…the shortage of Gold has hit the livelihood of hundreds and thousands of small jewelry retailers and artisans employed in the industry, and the current government is feeling pressure from that…
In a sign of the times, a Chinese-controlled bank is in line for a rare seat at the table of the small club of lenders that sets the global benchmark price for Gold…London-based Standard Bank PLC, in which Chinese state-owned Industrial & Commercial Bank of China Ltd. acquired a 60% stake last month, is the apparent front-runner to buy Deutsche Bank AG’s position on the panel of five banks that sets the daily Gold benchmark…in January, Deutsche Bank said it was pulling out of the fixing panel as part of a wider move to scale back its involvement in commodities…
U.S. Dollar Index Updated Chart Bullish For Gold
A struggling U.S. Dollar Index has been one of our major themes at BMR since September, and continued weakness in the greenback supports the idea of even higher Gold prices and a healthy Venture…
John’s latest 2.5-year weekly U.S. Dollar Index chart isn’t good news for stubborn dollar bulls – at the very least, the Index is likely to test critical support this quarter at 79…yesterday, it broke below the Fib. 38.2% support level…what’s particularly interesting is that one cannot rule out the possibility of a breach of that crucial 79 area in the Dollar Index at some point this year – if that support fails, Gold cold really take off…
Consumer Confidence In China At Record Levels
Consumer confidence in China picked up in the final quarter of 2013, according to a survey by data provider Nielsen published today…Nielsen’s consumer confidence index hit a record 111…“Thanks to a stabilized GDP growth rate, a resilient labor market and steady household income growth, Chinese consumer confidence grew in the last quarter of 2013,” Nielsen Greater China President Yan Xuan said…better job prospects and stronger spending intentions are the most important factors in the improvement, he said…there were 3,500 respondents to the Nielsen survey from all areas of China…compared with other countries, China ranked fourth in consumer confidence…Indonesia is #1…
Today’s Markets
Asia
China’s Shanghai Composite was strong overnight, hitting a 9-week high as it climbed 23 points to close at 2143…investors took relief from lower money market rates a day after the People’s Bank of China drained $8 billion from money markets…the benchmark 7-day repo rate traded around 3.5%, indicating that liquidity levels remain ample…Japan’s Nikkei average slipped 77 points, finishing at 14767…
Europe
European markets are mixed in late trading overseas…
North America
The Dow is up 88 points as of 7:20 am Pacific…U.S. housing starts, impacted by harsh weather, recorded their biggest drop in almost three years in January…the third month of declines in permits, however, points to some weakness creeping into the housing market…
The TSX is up 86 points through the first 50 minutes of trading while the Venture, aiming for its ninth consecutive winning session, is up another 8 points to 1010…Fission Uranium (FCU, TSX-V) and NexGen Energy Ltd. (NXE, TSX-V) were each halted prior to the open, pending news, so uranium plays could be hot today...Integra Gold (ICG, TSX-V) has hit some more high-grade in drilling at its Lamaque Gold Project near Val d’Or with the stock up 2 cents at 34 cents as of 7:20 am Pacific…the company is carrying out an aggressive drill program at Lamaque – three rigs are still active on the property, so speculation regarding future results should keep this play active…
Detour Gold Arranges $150 Million Bought Deal
This has to be viewed as a positive sign for the industry – Detour Gold Corp. (DGC, TSX) has arranged a $150 million bought deal financing with a syndicate of underwriters, led by BMO Capital Markets and RBC Capital Markets, who have agreed to buy 16.22 million common shares of Detour at a price of $9.25 per share (an overallotment option could take the deal as high as $172.5 million)…the company intends to use up to half of the net proceeds of the offering to reduce short-term debt levels and the remainder for working capital purposes…
Tinka Resources Ltd. (TK, TSX-V)
Tinka Resources (TK, TSX-V) appears to be on the rebound after a breakout yesterday that requires confirmation today…the company holds two Silver-Lead-Zinc projects in west-central Peru, and yesterday came out with drill results from one of them (Ayawilca) that included 36 metres grading 5.9% Zn (hole A14-18)…that hole is on the edge of two large, coincidental magnetic and chargeability anomalies at Ayawilca that have not yet been drill tested…
Technically, TK yesterday finally broke above a downtrend line in place for a year but that doesn’t necessarily mean it’s ready just yet for a powerful, sustained advance…it does have a stiff band of resistance to deal with between 45 cents and the mid-50’s as you can see on John’s chart below…worth watching closely, though, especially if you’re bullish on Silver and Zinc as we are…
Radius Gold Inc. (RDU, TSX-V) Chart – A Microcosm Of The Venture
The Radius Gold (RDU, TSX-V) chart is a great illustration of how the Venture has turned the corner – a bottom last June in RDU at 7 cents, a breakout above a long-term downtrend line, a re-test of that downtrend line as support, and then another surge to the upside…this kind of a pattern is extremely bullish and bodes well not only for RDU this year, but the market as a whole…there will be volatility but the overall trend is now clearly bullish with the bear market now behind us…
WANTED Technologies Corp. (WAN, TSX-V)
While we remain focused almost exclusively on the resource sector, occasionally we come across a non-resource company that really intrigues us…a good example is WANTED Technologies Corp. (WAN, TSX-V) which we selected in late December as one of 20 plays to watch closely in 2014…yesterday, WAN reported strong results for the quarter ending December 31 (the company’s second quarter of fiscal 2014) with net income of 4 cents per share…revenues were $2,360,917, an increase of 37% compared to the second quarter of fiscal 2013…excluding a significant one-time, non-recurring revenue agreement in the quarter, revenues grew 21% over the prior year…net income was just over $1 million compared to net income of $331,808 in the second quarter of fiscal 2013…
Since 2005, WANTED has stored more than one billion detailed records on hiring activity throughout the U.S. and Canada…this proprietary database contains more than 100 billion data elements which are used for analytical applications throughout multiple business sectors…the company’s most recent significant license agreement is one of many applications of WANTED’s “big data” for the employment sector…the challenge for WANTED will be to remain innovative while pursuing its growth in a relatively new and competitive field…new players, new alliances and new technological solutions may very well emerge in this market…
John’s updated 2.5-year weekly chart for WAN shows a cleansing of the overbought RSI(14) condition that emerged late last year…important support held, and the next major resistance levels are $1.55 and around $2…WAN if off a penny at $1.37 as of 7:20 am Pacific…
Note: John, Jon and Terry do not hold share positions in any of the above mentioned stocks.
NXE HITS URANIUM! FCU HITS URANIUM! SASK PLAY IS IN FULL GEAR NOW! MKN, SYH, ETC MOVING…..NXE MORE THAN DOUBLES OVERNITE!
Comment by STEVEN1 — February 19, 2014 @ 7:58 am
Any updates on CQX and their excellent GoldStrike property in Utah??
Comment by John — February 19, 2014 @ 9:22 am
Oups sorry I mean GGI and PGX. I am down 42oz of Au in gbb,cqx,vgd,rbw, let’s hope bmr got it right this time. Too lazy to do my own dd and Jon always sounds so sure, convincing. I am not pointing fingers here just trying to make a couple of bux.
Comment by Steffie — February 19, 2014 @ 10:05 am
I will now go by john s. As I see another john posting now.
Comment by John — February 19, 2014 @ 10:27 am
@bmr John; Can you take a look at fnc.v chart and tell me if a golden cross is about to happen? The Rsi is at 67 and macd is also bullish. Also seems like the 200 dma has flattened. Would the cross be bullish for this stock? (should it occur)
Thanks..
Tony
Comment by Tony T — February 19, 2014 @ 11:25 am
Listened to GGI’s presentation, most was what we were
already aware of, but i appreciated the effort.
It appears to me that the Venture is far from healed.
Most of the players seem to be day trading. For awhile
now, when the Venture moved up for most of the day, the
sellers would take over at, or near the end of the day.
That’s my opinion but in all honesty, my wife mentioned
recently that i may need new glasses.
Comment by Bert — February 19, 2014 @ 1:48 pm
Did anybody attend GGI’s webinar today? Did they say anything of interest? Thanks.
Comment by chris — February 19, 2014 @ 2:53 pm
Hi Tony
In this case the Daily SMA(50) cross above the Daily SMA(200) would be bullish but may I suggest you learn to use the Weekly charts and plot the Support/Resistance levels and the Fibonacci levels and not rely on the SMA crossovers. SMAs can be very lagging.
For FNC it needs a confirmed B/O above the 8c level. Chart looks quite bullish if the B/O happens.
Hope this helps
Comment by John BMR — February 19, 2014 @ 3:04 pm
Alix Resources (AIX.v) has updated their website with a new map showing their recently acquired Sheslay Valley claim additions…fyi…z alixresources.com/index.php?page=projects&project=11
Comment by zippy — February 19, 2014 @ 4:34 pm
Zippy- thanks, took a position in AIX this morning!
Comment by Greg J. — February 19, 2014 @ 5:09 pm
Alix is showing some aggressiveness, and has indicated it is on the hunt for additional ground, so this one could be the “Sheslay Sleeper”. They need to raise some money but hot area plays have a way of sometimes bringing a company back to life in a hurry. Below a nickel, definitely worth a shot we believe given the geology and how things are evolving in the area.
Comment by Jon - BMR — February 19, 2014 @ 5:19 pm
Jon, when can we expect part two of the coverage on DBV?
Comment by Phil — February 19, 2014 @ 5:57 pm
@Bert, Thanks for your advice on getting to the ggi webinar site, the other day. I did manage to take it in. Excitement builds. For me the important words by the pres. were to keep eyes on the pyr. creek site. As jon mentiond in blog a short while back. Regards, Richard l to
Comment by richard l — February 19, 2014 @ 5:58 pm
Richard, I too watched the GGI presentation. I thought they could have expanded more on the Hat discovery, but perhaps that’s for a later time. In any event, there were a couple of things that really stood out for me. #1, they went to great lengths to point out the extent of work carried out at the Grizzly (since 2006) to bring it to the stage it’s at now which is to drill this beast – extensive soil and rock sampling, IP and airborne surveys, even petrographic analysis. This, combined with historical data, has given them a pretty clear picture of a NW/SE trending corridor with multiple targets stretching at least 15 km from Grizzly West to Grizzly Central, then they staked the eastern extension claims. Mineral occurrences with coincident anomalies throughout this corridor. Pyrrhotite Creek falls within this SE dipping parallel trend. A lot of people are very bullish on Pyrrhotite Creek include DBV’s Farshad. #2, GGI is STILL DRILLING at La Patilla. Given the known mineralization there (high grade channel sample results, artisanal mining), quite frankly I’d be shocked if they don’t make a discovery on this property which has never been diamond drilled before. Two months of steady drilling is impressive. So my gut tells me they are going to have something there, I just feel it. This group is about cost-effective exploration and it’s not cost-effective when you drill for a couple of months into moose pasture. La Patilla has never been diamond drilled before so I think the odds of a pending discovery are unusually high at this stage.
Comment by Jon - BMR — February 19, 2014 @ 6:23 pm
Richard – You are welcome
I always like to be the bearer of good news, but we do
have to take the good with the bad. Gold is down around
$9.00 again tonight. If it doesn’t turn around soon, we
can expect to see it below $1300.00 again. Good night ! R !
Comment by Bert — February 19, 2014 @ 6:26 pm
Soon. Every day we’re coming across additional information so we’ve delayed a few days to get some new material in. The bit of weakness we’re seeing right now in DBV is a HUGE opportunity IMHO, and we’ll let everyone know why in short order.
Comment by Jon - BMR — February 19, 2014 @ 6:27 pm
Victory Ventures Inc.
victoryventures.ca/properties.html
Preliminary drilling was completed at both prospects and reportedly intersected 113m grading 0.35% copper at Pyrrhotite Creek and 44m averaging 0.43% …
Comment by Bert — February 19, 2014 @ 6:33 pm
&jon. Only thing with Dbv right now is no further results pending and no more drilling till at least spring so further downside weakness will more than likely occur no?
Comment by John — February 19, 2014 @ 8:55 pm
John, with DBV, it all depends on how quickly they start drilling again – it could literally be in a matter of just a few weeks (sometime in March very possible in my view). Money keeps coming in on the exercise of warrants, and at this rate they should have another few hundred thousand by the end of the month/early March. So money won’t be the issue. It’s just an question of weather and having enough of a warm up (but not too much of a warm-up to create muddy conditions), and that window should arrive at some point next month. It would be a mistake to underestimate Farshad at this point after what he has done and what has occurred. To use a football analogy, don’t underestimate how quickly and how far may be about to move the ball down the field. He has some very inviting targets to drill; another hit or two and you’re looking at a much higher share price.
Comment by Jon - BMR — February 20, 2014 @ 12:24 am
Managed to free up a bit of money and looking between abr and Ggi. My concern with Ggi is that the results must be lack lustre or there wouldn’t be the big delay!! So one could buy now, the results eventually come out then the stock retreats so as one could enter at cheaper price
Comment by John — February 20, 2014 @ 7:25 am
You and I are on different wave lengths, John, but that’s what makes a market. News just out from Prosper. They are going to be busy as you can see in their Notice of Work Permit.
Comment by Jon - BMR — February 20, 2014 @ 7:28 am
@jon. The delay doesn’t concern you? Do you not agree if I am correct that Ggi will indeed take quite a hit?
Comment by John — February 20, 2014 @ 7:45 am
John, what are you talking about?
Comment by Jon - BMR — February 20, 2014 @ 8:22 am
I’m talking about Ggi and their results that were expected out months ago
Comment by John — February 20, 2014 @ 8:44 am
Months ago? Which results, be specific.
Comment by Jon - BMR — February 20, 2014 @ 8:44 am
John, you ask questions but dont like the answers, believe what you want! You will either be right (not likely) or wrong.
Comment by paul — February 20, 2014 @ 8:44 am
It would be a lot easier to try and answer a question if I knew what the question was.
Comment by Jon - BMR — February 20, 2014 @ 8:47 am
Take your pick
Vancouver, British Columbia, January 16, 2014 – Garibaldi Resources Corp. (TSX.V: GGI) (the “Company” or “Garibaldi”) is pleased to provide an update on the first-ever diamond drilling program at its La Patilla Gold Property in Sinaloa State, Mexico, with the fifth hole of the shallow program currently in progress. Drilling started shortly before the Christmas break and resumed early this month.
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 meters 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% 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.
Comment by John — February 20, 2014 @ 8:53 am
Where are locust results? Lapatilla results?
Comment by John — February 20, 2014 @ 8:56 am
If I am missing something my apologies but on their website I see no results in their list of news.
Comment by John — February 20, 2014 @ 8:58 am
Okay, now we’re getting somewhere, John. Wow. First off, if you would read information a little more carefully, you’d discover that the results for the “six new holes” or “six additional drill holes” at the gold-copper target at Tonichi, as referenced in your second and third paragraphs, have already been released (Nov. 7). As GGI announced last month, they’ll be providing an update shortly on the Tonichi Project where there are several targets of interest including Locust (assays for 1 hole are still pending), and the coal and graphite.
As far as La Patilla is concerned, I’m personally expecting very good news from down there. The company started drilling in mid-December and is STILL drilling. I don’t think they would keep drilling this property for that length of time if the geologists didn’t like what they were seeing. GGI has had previous success in Mexico identifying deposits so they know what they’re doing. La Patilla is being diamond drilled for the first time ever. All the evidence suggests to me that GGI has a very good chance for a discovery down there that could lead to small-scale production.
Right now, the market is very much focused on the Sheslay Valley area play which I believe will be a “company builder” for GGI. Garibaldi has the not so easy task of “pivoting” between a story of such significance (an emerging new mining camp) and its activities in Mexico. They have news coming obviously from the Grizzly, Tonichi and La Patilla, and even other areas in Mexico that they’re active in. So this is a very busy company. In my DD, I have found them to be very thoughtful and careful, so they analyze, do their homework and make sure they have their facts straight before reporting on their properties and progress. That’s a wise approach. This is one of the best-managed Venture companies I have ever come across which is why we picked up so aggressively on GGI last summer when it was trading at just a nickel.
Comment by Jon - BMR — February 20, 2014 @ 9:16 am