Gold has traded between $1,323 and $1,337 so far today…as of 7:50 am Pacific, bullion is up $4 an ounce at $1,334…Silver has added a dime to $21.31…Copper is up a penny at $3.22…Crude Oil is off 24 cents at $102.35 while the U.S. Dollar Index is flat at 80.42…geopolitical concerns (tensions in Ukraine) and an unexpectedly upbeat report on U.S. new home sales yesterday helped the greenback enjoy its biggest one-day rise in about a month, prompting selling of Gold after the metal hit its highest level (nearly $1.,350 which is critical resistance) since the end of October…but bullion is bouncing back today…
Commerzbank’s Eugen Weinberg said that the ongoing high level of Gold demand in China played a key role in January’s rally, and he believes it should continue…“Contrary to media reports, Gold demand in China has not cooled noticeably in our view,” he stated (source: Kitco)…“Chinese demand will continue to serve as a key crutch for the Gold price (throughout) 2014, too.”
Market action suggests investors are becoming increasingly concerned about the potential for the crisis in the Ukraine to trigger regional instability, which ultimately could be quite bullish for Gold…the Swiss franc, considered a haven in times of geopolitical stress, has risen to a 10-month high versus the euro…the Russian rouble, meanwhile, has hit its weakest level against the dollar since the height of the global financial crisis in 2009…
HSBC cites a news report in which a Russian official says Russia wants to avoid a break-up of Ukraine, but in the case of a secession of Crimera, an autonomous parliamentary republic within Ukraine, Moscow would feel compelled to back it militarily. “Gold is often sensitive to geopolitical developments, especially when they involve large economies or important regions,” HSBC stated. “Should events in Ukraine deteriorate and involve neighboring countries, Gold could benefit from increased safe haven demand.”
Reuters reported this morning that fighter jets along Russia’s western borders have been put on high alert…NATO defence ministers are meeting in Brussels today with the crisis high on their agenda…U.S. defence secretary Chuck Hagel is expected to address Russia’s sabre-rattling at the end of the day’s meetings…Ukraine’s acting President Oleksandr Turchynov has warned of “dangerous signs of separatism” in parts of the country, amid anger at the ousting of Viktor Yanukovych from power…pro-Russian gunmen have stormed parliament buildings in Ukraine’s Crimean region and raised Russian flags early today…after the incident, Turchynov warned that any movements by the Russian military in Crimea, aside from the Russian Black Sea fleet’s base in Sevastopol, would be treated as an act of aggression…NATO chief Anders Fogh Rasmussen, via his Twitter account, urged Russia not to take any action that would “escalate tension”…
Today’s Markets
Asia
After last week’s disappointing manufacturing data in China and fresh concerns over the country’s property sector, the Shanghai Composite snapped a four-session losing streak today, albeit with a slight gain of just 6 points…Japan’s Nikkei average was relatively unchanged overnight…
Europe
European shares are down modestly in late trading overseas…
North America
The Dow is unchanged as of 7:50 am Pacific…Federal Reserve Chair Janet Yellen is currently speaking before the Senate Banking Committee, discussing the Fed’s semi-annual monetary policy report…it’s her second delivery of the report before U.S. lawmakers since Feb. 11…analysts doubt Yellen will say anything more in this testimony than she did previously before the House two weeks ago…the TSX is up 40 points as of 7:50 am Pacific while the Venture has added 5 points to 1013…
TSX Updated Chart
A simple but important question regarding the TSX…can it break out above an upsloping channel in place since last summer?…the top of this channel represents significance resistance, and at the moment the Index is trading right around that area…
Ashburton Ventures Inc. (ABR, TSX-V) Update
With a current market cap of just $1.8 million, investors in our view have not yet picked up on the significance of two strategic exploration projects being advanced by Ashburton Ventures (ABR, TSX-V)…the company’s Hackett Property, acquired through some astute staking last year, is on trend and contiguous to Doubleview Capital Corp.’s (DBV, TSX-V) Hat Cu-Au porphyry discovery – in fact, the western border of the Hackett lies within just approximately 1,000 metres of discovery holes HAT-08 and HAT-011 which we’ll be focusing on shortly in the second part of our special report on DBV…importantly, the historic Hoey showing straddles the border between the Hat and the Hackett…ABR has already announced that it will be proceeding with a sampling and mapping program at the Hackett, as soon as weather permits, in order to prioritize potential drill targets…the upcoming field program will concentrate on a large gossanous zone along the western edge of the Hackett…the spotlight will also undoubtedly shine on the Hacket as soon as Doubleview re-starts drilling at the Hat, speculatively as early as sometime in the next few weeks…
Secondly, and this could develop into a major story in the coming months, Ashburton controls over 250 sq. km along the Kluane belt in the Yukon, immediately next to the third largest undeveloped PGM resource outside southern Africa or Russia – Wellgreen Platinum’s (WG, TSX-V) Wellgreen Project approximately 300 km northwest of Whitehorse…the company is expected to produce an updated PEA for the project by the end of the second quarter of this year…ABR has carefully assembled a land package in this area, including ground that’s contiguous to the Wellgreen deposit, with some very interesting historic showings that clearly have drill target potential for this summer…we’re bullish on Platinum and Wellgreen has also been a strong performer so far this year, climbing 33% after closing yesterday at 92 cents…
Below is an updated 2.5-year weekly ABR chart from John…ABR, which closed at a nickel yesterday, has been consolidating recently after climbing as high as 7 cents from a January low of 3 cents…rising 50 and 200-day moving averages (SMA’s) support the view that a significant new uptrend in ABR has started…with its strategic presence in the Sheslay Valley, and a significant PGM-Ni-Cu exploration project coming together in the immediate vicinity of the Wellgreen deposit, Ashburton has all the ingredients for an important near-term breakthrough…ABR is up half a penny at 5.5 cents as of 7:50 am Pacific…
Goldeye Explorations Ltd. (GGY, TSX-V) Update
Further to our introduction of Goldeye Explorations (GGY, TSX-V) to our readers the other day, the company reported this morning that it has drilled 18 holes at its Weebigee Gold Project in northwestern Ontario with drilling still in progress – four additional holes are expected to be completed in the coming days before breakup conditions become a factor…fine visible Gold has been identified in 50% of the holes drilled to date with assays expected by the end of March…drilling has focused on several high-grade targets along a broad structural corridor that hosts the Knoll, Bernadette and RvG4 showings…some speculation could definitely come into GGY in the immediate future based on this morning’s news…as of 7:50 am Pacific, GGY is unchanged at 11 cents…
Discovery Ventures Ltd. (DVN, TSX-V) To Acquire 100% Of Willa Property
Discovery Ventures (DVN, TSX-V) continues to take important steps in the development of its Willa-Max project in southeastern British Columbia…this morning the company announced that it has amended its option agreement to acquire a 100% interest in the 5,300 hectare Willa Property…the new agreement is consistent with the previously announced terms, except it now includes the issuance of an additional 3.6 million common shares of Discovery and $600,000 payable out of the cash flow from the Willa-Max project after repayment of any outstanding production financing…on Monday, DVN announced it has secured a $12 million debt facility to advance the project…$7 million of that is available on the achievement of certain milestones…the company also announced that over the next quarter it anticipates strategic restructuring of both its management team and board of directors…the changes are expected to add significant leadership, technical expertise and experience to the senior management team…
Makena Resources Inc. (MKN, TSX-V)
As a speculative “area play”, it’s worth pointing out that Makena Resources Inc. (MKN, TSX-V) is looking interesting and has been showing some strength recently, not surprisingly given the recent news out of both Fission Uranium Corp. (FCU, TSX-V) and NexGen Energy Ltd. (NXE, TSX-V)…a 3-year weekly chart shows MKN attempting to push through a downtrend line…as always, perform your own due diligence…MKN is up half a penny at 11.5 cents as of 7:50 am Pacific…
Vulcan Minerals Inc. (VUL, TSX-V)
A company we haven’t mentioned previously that certainly appears worthy of our readers’ due diligence is Vulcan Minerals Inc. (VUL, TSX-V) which has seen an uptick in trading volume in recent weeks…the company is in a healthy financial position with its current market cap of $2.6 million considerably below its cash assets of $3.6 million – the company has no debt and 58.5 million shares outstanding…
Yesterday, the company provided an update on its Athabasca area uranium permits – a 100% interest in 10 metallic and industrial mineral permits covering over 200,000 acres in northeastern Alberta along the Saskatchewan border, approximately 50 kilometres east of Fort McMurray…the company is also completing compilation and evaluation reports on its TL Ni-Cu-PGE Property in Labrador, and is also reviewing potential property acquisitions…
Technically, what has caught our attention with VUL is the fact that it is very close to breaking out above a long-term downtrend line as shown in this 5-year weekly chart (VUL closed yesterday at 4.5 cents)…weak buy pressure has now replaced intense sell pressure which has been dominant for most of the past two years…
Note: Jon holds share positions in GGY and ABR.
repost:
Bert…:) I too am still toiling due to honesty… I believe that the 2001-2008 timeline brought the worst out in people.. newsletter writers started in that time frame to bilk unsuspecting people out of dough because they made you think they knew something you didnt.
Lifestyle companies like HAO,CAJ,TAD,BRK (in my opinion only) talk about pie in the sky and do nothing with it..
yet give themselves options without any hold??? who does that…
yep – we know who…
but carrying around that crap in our wheelbarrow wont solve the problem… the venture will respond to greed… which really makes you feel good eh!!:)
Happy thursday all… major pileup outside of Barrie this morning… see it could be a lot worse!
Comment by Jeremy — February 27, 2014 @ 8:33 am
Seafield Resources, v.sff is moving. Now up 400% since the bottom.
Comment by Magnus — February 27, 2014 @ 8:41 am
I notice in today’s musings, part of the write-up refers
to Russia, Ukraine, is anyone going to object to that, after
all, there’s nothing we can do about it.. I for one will not,
because it’s news, we should be made aware of. Such news has a
negative bearing on Gold & other commodities, which in turn
has a negative bearing on our stocks. The world today is as
one, what goes on in Ukraine, i listen to or view as it
happens, can’t be much closer than that. Anyway, i will take
a break now & in doing so, hopefully, will give those, who are
sensitive to my type of postings, a break. Have a good day. R !
Comment by Bert — February 27, 2014 @ 9:07 am
GBB annonces that PFS is imminent in news release which goes on to discuss what the gold royalty program may look like, the market yawns. Hey BMR, do you have any thoughts about what the scenarios are with regard to what the share price will do when the PFS is released? My thought is that at the current sp and market cap there is no where to go but up.
Comment by mike — February 27, 2014 @ 9:24 am
Not much of a break, but those things will happen.
Jeremy – Newsletter writers started in that time frame to bilk unsuspecting people
out of dough because they made you think they knew something you didn’t.
Bert – My buddy ! you have written the sentence of the year. I hereby nominate
you for Mayor of Toronto. R !
Comment by Bert — February 27, 2014 @ 9:45 am
Wow didn’t realize you were so sensitive Bert, relax I was worried more about you, but hey I have no control on that so why bother! Sheesh!!
Comment by Paul — February 27, 2014 @ 11:21 am
Any updates on CQX?
Comment by John — February 27, 2014 @ 11:45 am
any comments on ABI.v that you mentioned some time ago?!
Comment by M. — February 27, 2014 @ 11:47 am
Paul
That feels like a legitimate Sheesh ! Anyway, i am sorry
if i have offended you. I have to change my behavior & a
beginning will be to refrain from using this site, especially
to vent my frustration. I know i can’t do anything about
anything, but it bothers me to no end, what i read & hear
on a daily basis. The world is corrupt my buddy & i feel
for those, who are just starting their lives. R !
Comment by Bert — February 27, 2014 @ 12:02 pm
Bert – Mayor of Torotno
Jeremy – You betcha!!:) all the crack you can smoke:)
John/Jon… present company excluded:)
Comment by Jeremy — February 27, 2014 @ 1:32 pm
Yes, we have a chart for tomorrow. ABI continues to look very good. They’ve been nicely on track with Elder.
Comment by Jon - BMR — February 27, 2014 @ 4:58 pm
Jon/John/Terry
For one of you folks to allow this to be posted, leaves much
to be desired & leaves thinking it was intentional. That is
the second time you released such disturbing comments. What
did i do to deserve this ?
Comment by Bert — February 27, 2014 @ 5:28 pm
I think abi is due for some financial news!
Comment by John s. — February 27, 2014 @ 5:33 pm
Bert, none of us has seen the comment yet that you are referring to, it has been a very busy day for each of us, but we are checking into it – so it is NOT a case of us “releasing” or approving anything. The system returned to automatic uploading of comments, but perhaps we need to change that again. Our apologies if you have been offended.
Comment by Terry - BMR — February 27, 2014 @ 5:33 pm
John S., this is your one and only warning – insulting remarks against others on this board will not be tolerated and your posting privileges will be stripped permanently if this occurs again. Your recent comment was automatically posted and none of us – myself, John or Jon – caught it until Bert brought it to our attention, and our apologies to Bert that this occurred. We want to keep this forum clean and focused on the market and in ways that help readers, not in ways that insult them. This is not Stockhouse. So if you can’t operate within those rules, the system will lock you out – plain and simple.
Comment by Terry - BMR — February 27, 2014 @ 5:49 pm
Terry
Terry
Thanks for your warning to John S.. It is not my desire
to see anyone removed from the forum, but there must
be a way of making a point, without such cruel remarks.
I post often & use different subjects, always trying
to reflect directly or indirectly on the market.. As of
late, my intention was to try to make this forum more
active. I have been on this forum for quite some time
& often, i post out of boredom, in fact, i have only
asked one question of Jon, since coming on board. Good
night ! R!
Comment by Bert — February 27, 2014 @ 6:27 pm
All of us here at BMR agree with you, Bert, and we thank you and everyone for their participation on a level that’s respectful of others.
Comment by Terry - BMR — February 27, 2014 @ 6:33 pm
bmr members picks
V.GGI 168.75%
V.HBK 15.00%
T.SAM 18.92%
V.IO -20.83%
V.TGK 0.00%
V.GTA -6.25%
V.KWG -10.00%
V.RBW -37.50%
V.FMS 52.94%
V.PGX 47.83%
V.GBB -12.50%
V.GMZ 12.50%
120.32 143.49 23.17 19.26%
Comment by gil — February 27, 2014 @ 8:34 pm
Thx Gil… and Bert – thank you!!
to BMR thank you too… this IS NOT SH… but it seems that others cant behave themselves, but If Bert didnt say anything then whatever the comment was slipped thru and Bert and his wisdom leaves.. which is not the purpose here yes??
later all… hugs Bert:) man hugs of course:)
Comment by Jeremy — February 28, 2014 @ 5:53 am