Gold has had to deal with a slew of economic data this week, both from the U.S. and globally, but has managed to hold up extremely well which has to be considered highly encouraging…bullion fell as low as $1,282 overnight on fears of a strong U.S. non-farm payrolls number for July, but as we mentioned yesterday the ADP report set up a lot of traders/investors for disappointment today as it so often does…non-farm payrolls showed a gain of only 162,000 in July, well below the 6-month average of 205,000…analysts polled by Reuters expected to see a jump of 184,000 in July, after a 195,000 uptick in the previous month…whispers in the bond market yesterday were for a number of 210,000 or higher…the Federal Reserve had a more dovish tone this week on prospects for the U.S. economy, so it now really seems unlikely – especially after this morning’s jobs report – that it will start to scale back its bond-buying program as early as next month as many pundits have been predicting…the U.S. labor market remains stuck in quicksand…most of the job creation in July came on the low end – in the retail trade and hospitality industry of bartenders and wait staff, with respective gains of 47,000 and 38,000…get ready for a potential major rally in Gold over the next couple of months, and the Venture certainly stands to benefit from that…
As of 7:00 am Pacific, Gold is up $2 an ounce at $1,311 after a more than $30 reversal…Silver touched the $19.20 area overnight but has rebounded to $19.88 for a gain of 25 cents…Copper is up 3 pennies to $3.19…Crude Oil is $1 lower at $106.89 while the U.S. Dollar Index is off more than one-quarter of a point to 82.05…
Peter Marrone, chairman and CEO of Yamana Gold Inc. (YRI, TSX) stated during the company’s second quarter conference call yesterday that Gold is finding good support between $1,250 and $1,350 an ounce…he said it’s only a matter of time before Gold prices move higher in the longer term…he added that while some people are focusing on higher interest rates in the U.S. as a catalyst for lower Gold prices, research from the World Gold Council has proven that is not the complete story…
India’s neighbour Pakistan has decided to temporarily ban the import of Gold for q month in order to save its foreign currency reserves and to curtail the rampant smuggling going on in the nation…following the Indian government’s decision to discourage Gold import by imposing 8% duties, among other measures, buyers have reportedly shifted to Pakistan where the precious metal has been allowed to be imported duty-free since 2001…
Editor’s Note: Due to the long holiday weekend (Canadian markets are closed Monday), the BMR crew is taking a 3-day break (no Week In Review And A Look Ahead over the weekend) and our next posting will be Tuesday morning at approximately 5:00 am Pacific, followed by a special update that morning at about 9 o’clock Pacific…we expect next week to be busy on a number of fronts, including northwest British Columbia – so stay tuned…
Today’s Markets
Asian markets were all higher overnight with Japan’s Nikkei average leading the way with a strong gain of 460 points of 3.3% to close the week at 14466…investors cheered robust global economic data and a commitment to easy monetary policy from global central banks…China’s Shanghai Composite held steady at 2029…
European markets are down modestly in late trading overseas…
In New York, the Dow has retreated 51 points as of 7:00 am Pacific…stocks soared to new highs yesterday with the S&P 500 rising above 1,700 for the first time ever at 1,706…July’s ISM manufacturing survey rose a surprising 4.5 points, to 55.4, the highest reading in 13 months and the biggest 1-month increase since 1996…the TSX is up 7 points while the Venture has slipped 1 point to 920…expect a quiet day on the Canadian markets due to the holiday Monday…
Zenyatta Ventures Ltd. (ZEN, TSX-V) Update
Zenyatta Ventures has fallen for 5 straight sessions (through yesterday) and by nearly $1 a share since the release of assay results from its Albany graphite deposit 2 days ago…the results were very positive, quite consistent with those released at the beginning of July, but the stock was simply due for a pullback after a climb from a low of $2.30 in mid-June…the 6-week run to $5.00 a share created overbought conditions that needed to be cleansed…for review purposes, below is a ZEN chart that John posted at the beginning of this week after the stock over-shot the Fibonnaci $4.50 level by about 10%…John’s Fib. numbers are typically quite accurate, and the negative divergence between RSI and price – and the generally overbought conditions – were a warning sign of a potential near-term correction…the up trend line (about $4.25) did not hold as support…ZEN slipped as low as $3.27 in early trading today after closing at $3.58 yesterday… however, the 50-day moving average, currently around $3.20, provides excellent support and ZEN has started to rally from that area…it’s now off just a dime at $3.48…a couple of other notes…as you can see in John’s chart from Monday, there’s also strong support around the $3.70 area, so it’ll be interesting to see if ZEN can close above that level today after breaching it slightly on a closing basis yesterday…as of this morning, RSI(2) has hit extreme oversold levels witnessed during other important lows, so a rebound does appear imminent based on that fact alone…as always, perform your own due diligence…
ZEN July 29 Chart (Repeated) For Reference Purposes (Support Areas)
Yukon Dan – British Columbia’s Gold, Exploration & Mining Ambassador
This morning, we have more on Dan Moore – affectionately known as “Yukon Dan” – who is doing an incredible job of bringing “Gold Fever” to thousands of British Columbia students through classrooms and other venues…he’s teaching them not only about the art of Gold panning, but – even more importantly in our view – he’s instilling in them an understanding and appreciation of how vital the mining industry is to this province and the entire country…he’s a valuable educator at a time when young people and adults alike are exposed more than ever to the distorted views of environmentalists and some in the mainstream media who want to see less exploration and mining…he vividly recalls an incident a couple of years ago when he was approached by a lady at a rock and gem show…
“She came up to my booth and looked at what I had,” he recalled during a breakfast meeting with us a week ago…”She said mining is deplorable, we should not have mining, there are so many dangers to it, it’s not healthy and blah blah blah…And then I took one look at the lady and I said to her, the lipstick you have on your lips, ma’am, came from mining…And the keys I hear jingling in your pocket, they came from mining…Do you own a car?, I asked her…She said yes she did…I replied, well, that’s mining too…Why are you so upset because of mining when you have a car and you have lipstick?, I asked…And when I said that, she put her tail between her legs and she went out the front door…She didn’t want to talk to me no more…So I kind of opened her eyes, perhaps, because her keys are minerals, her lipsticks are minerals, and she’s complaining to me about the environmental issues related to mining…If you are into mining these days, it’s a must to know that in B.C. and elsewhere there are laws and rules that you must abide by…And if mining companies do not, they get heavily fined….Reclamation must be done…When you close a mine, you have to put everything back the way it was before you leave that area…I’m 100% for that…There are rules regarding exploration as well“…
When it comes to teaching about panning for Gold and why exploration and mining are so integral to our everyday lives, there’s no one better in our view than “Yukon Dan” who was once again booked solid each day in the months of April, May and June with extensive classroom presentations in British Columbia from Grades 1 through 12…during the rest of the year, he spreads his message at fairs, festivals, rock and gem shows, birthday parties – you name it…he was also a big hit at January’s Cambridge Resource Show in Vancouver where we first met him…
“I’m very proud to say with my teaching at schools and educating kids, I’ve had students leave the school system who are now in the mining field,” he stated…”My first part of a presentation, I will start talking about the Gold rush and what brought people to Canada…Then within 2 minutes I show them what they’re looking for which would be a $6,000 Gold nugget…When I show that to the kids, that captivates them because I tell them they can still find Gold…We will never run out of Gold in British Columbia, and that’s when their eyes and ears perk up…When I tell them there are places they can go to pan for Gold for free, and what they find they can keep, they just devour it…To me that’s precious…Gold is not hard to find in B.C. and the kids know this is something they can do with mom and dad for free“…
The story of Yukon Dan is a fascinating one, and it’s why BMR is also pleased to announce that it has joined the likes of Teck Resources (TCK.B, TSX), New Gold Inc. (NGD, TSX) and others in becoming an official sponsor of the upcoming Fraser River Gold Panning Championships (August 22-25) and Dan’s overall efforts at educating the young people of B.C. (and elsewhere) about the mining industry in general…his impact has been incredible, and his work is hugely important – especially at a time when the mining industry is hurting and also under attack from “environmentalists”…
"Yukon Dan" was panning for Gold in Yale, B.C., during the last week, and also gave some free lessons to kids and parents at his campground. He and his team of volunteers are gearing up for the 2013 Fraser River Gold Panning Championships August 22 to 25, 40 miles north of Hope at Boston Bar. Yukon Dan's presentations in classrooms in British Columbia, and at other venues in B.C. and elsewhere in Canada, have educated and inspired thousands of young people about the mining industry and the importance of it. BMR has joined AMEBC, Teck, New Gold Inc. and others in sponsoring the Fraser River Gold Panning Championships as well as Dan's classroom program.
The upcoming Fraser River Gold Panning Championships at the Anderson Creek Campground are expected to attract about 170 participants (all ages from 2 and up, beginners to pros) and lots of onlookers as well…on August 22 and 23, Yukon Dan will be be teaching the art of Gold panning to all competitors for free in the town of Yale on the Fraser River from 1 pm until 4 pm…metal detecting competitions will take place August 23 while the Gold Panning competitions will be August 24 and 25 (Saturday and Sunday)…check out Yukon Dan’s web site for more details – www.YukonDan.com….campground spots are filling up very quickly, and competitors will be coming from as far away as Austria…
“This event in August is a competition that’s loved by all and is open to anybody, kids to adults, beginners to pros, from all over the world,” Dan stated…”It’s hands-on, everybody gets professional Gold miners for coaches if you need it…Everybody goes home with real Gold, so it makes for a very fascinating competition…The other thing is that its family oriented…The monies that we charge are very minimal and that’s to get more people to come out and have some fun, learning about our Canadian history and our natural resources and our heritage…Gold mining to me is #1 in British Columbia…And every time that snow melts, that water brings down the Gold and that’s a good thing“…
“The Anderson Creek campground is a beautiful site…It leads right into the Fraser River which is just breathtaking…The competition is at the campground, not at the River itself, and that’s for insurance reasons because of somebody potentially hurting themselves at the River which is possible…The Fraser River Gold rush started in 1858 when thousands of people came up to that area…It was home to over 25,000 people at that time, mostly because of the Gold…at $17 to $35 an ounce, a lot of folks got very, very wealthy, and then they kept going north“…
“The Fraser River has always had an immense history of Gold and Gold mining,” Dan continued…”I was just up there last week and the water dropped 15 feet…there were already half a dozen Gold panners panning…and to see that is priceless…we need the people to go out and learn about mining…we have to get them to learn about the everyday uses of mining because mining is involved with everything we use…
“Anybody can pan for Gold,” he says…”It doesn’t matter if you’re ailing in one way or another…You just sit down on a chair and you pan for Gold…You don’t put too much dirt in your pan if you can’t lift too much…And the atmosphere – you got the trains on each side of the Fraser River, they’re still used for transportation and taking good s from point A to point B, and all through the Fraser Valley…And that brings back the history, too, when you you’re panning for Gold…You get to hear these trains go back and forth…And to me, that;s a beautiful noise in my ears“…
We’ll be following Yukon Dan’s progress closely…check out his web site at www.YukonDan.com for more information including contact numbers…
ZEN REBOUNDS BIG TIME!
Comment by STEVEN — August 2, 2013 @ 3:37 pm
next door to zen with lots of similarities and a promising future is cvn!!! They had no problem closing the pp on Friday!!! Now let the results show what they have!!! Huge potential …huge upside…they are where zen was a year ago!!! glta
Comment by natalie — August 3, 2013 @ 10:04 am
DYG closes the week at 3 cents and ,looking at the 2 year 2 week chart, DYG acheived a green candle for the first time in months. The Parabolic SAR is now supporting the candle and this hasn’t happened since 2011. DYG looking good (chart wise). Looking forward to the next couple of weeks/months. Have a good long weekend everyone!!
Comment by Tony T — August 3, 2013 @ 12:51 pm
Richard Billingsley, a very well respected claims holder in B.C. (he holds huge amounts of land), was at the DYG AGM a little while back that I attended, as a shareholder, and he’s genuinely very enthused about the Strike Property and its potential (DYG did this deal with him). He has seen a lot of properties in his time and he can be very critical. The fact he took the time out of his busy schedule to even come to this meeting spoke volumes about this particular opportunity. He has a lot of respect for how DYG has advanced this to the drill-ready stage. The drilling strategy will be to intersect the volcanics at depth, where they hope to hit high-grade mineralization. Prolific area.
Comment by Jon - BMR — August 3, 2013 @ 1:51 pm
I wouldn’t look too much into Mr. Billingsley’s excitement as an indication of what kind of property DYG has. I’m sure the RBW shareholders could attest with how the International property turned out (Mr. Johnson was so excited, he lugged that piece of ore around with him and yet the drill program was a miss.) Anyways, enough about RBW…
What I can get excited about is the UBC report published in ’91. It goes into great detail about the geo make up for the Stewart Camp area and the Mount Dilworth formation (Good info starts around page 200 and a detailed mention of Mount Dilworth starts on page 259). Check it out https://circle.ubc.ca/handle/2429/30795 and open the PDF file “UBC_1991_A1 A44.pdf”. Lots of reading but gives you a pretty good idea of the Geo make up near DYG’s Strike property.
Comment by Tony T — August 4, 2013 @ 5:55 am
Thanks, Tony. The geology at the Strike speaks for itself, as you’ve pointed out with the excellent link. Geo’s have also seen some strong similarities between how this property looks and other producers/former producers in the immediate area, including Eskay Creek. As with any property, the drill rig will be the truth machine and we’ll see what they might be able to hit. No guarantees but the theory is that once they drill deep enough, and get into the volcanics, or the volcanic-sediment contact area, that’s when they’ll start finding high-grade structures. This property is still at the early stage of exploration, very different for example than the Sheslay Project further north we’ve been writing about, but it should generate some excitement nonetheless and the possibility of some sort of discovery clearly exists. In terms of Billingsley, are you familiar with him at all? He knows his stuff.
Comment by Jon - BMR — August 4, 2013 @ 6:35 am
No idea of his history Jon. Let’s hope his excitement comes through. Now, I have a request for you and its going to require some pretty serious DD/connections. Are you able to pull up a map of the Crone DEEP-EM geophysical electromagnetic survey performed by the company? If so, can you send it to the email add provided when posting? Thanks.
Comment by Tony T — August 4, 2013 @ 10:02 am
Is the main reason you prefer Garibaldi over Prosper Gold is because you “think” the heat engine is at Garibaldi?
Comment by Ivan — August 4, 2013 @ 2:02 pm
Hi Ivan, it’s not a question of preferring one over the other, nor am I excited about GGI simply because I “think” there’s a critical heat engine (Mount Kaketsa) on Garibaldi’s property – that’s a geological fact. Many more investors will get the picture soon enough I’m sure. Personally, I can’t wait to also become a shareholder of Prosper Gold because Bernier’s deal – this entire play at Sheslay which will also draw in the Grizzly – could very easily and quickly turn into a market “darling”, and stay that way for a good long time. You’ve got as capable a group as you’ll find anywhere in the country about to drill the Sheslay like Swiss cheese, and move this exciting project forward. Keep in mind, this is an advanced exploration property with numerous outstanding Cu-Au porphyry targets and mineralized zones, and the property can be drilled throughout the winter. This was way too big for Firesteel to ever figure out on their own – they simply didn’t have the expertise or the money (they drilled only about 2 dozen holes starting in 2004). “The overall trend of mineralization appears to be north-south which may be related to the underlying mapped trend of the satellitic intrusions which is also evidenced on the magnetic trends” – that’s an exact quote from an historical assessment report, which also makes numerous mentions of the importance of the Kaketsa Pluton – 4.5 x 6 km in size, originating in the NW corner of the Grizzly and extending onto the southwest portion of the Sheslay. As far as the Grizzly is concerned, the “Western Block” and the “Southern Block” in particular are very prospective, and geophysical surveys and other work carried out by Garibaldi over the last few years clearly show some striking similarities between the Sheslay and the Grizzly (in addition to some historical work carried out going back to the ’70’s and ’80’s). Much less exploration has occurred at the latter, and the Grizzly is also more than twice the size of the Sheslay. This whole area is finally getting the attention it deserves and the expertise necessary to uncover a major porphyry deposit (or series of deposits) and ultimately a new mine in this part of B.C. It’s on trend with major deposits/mines to the south. Also, of course, the former high-grade open-pit and underground Golden Bear Gold Mine operated from 1989 to 2001 about 30 miles to the west of the Grizzly. The Garibaldi team has a lot going for it and I expect them to take full advantage of this opportunity. As much as I like Colorado and the possibilities for North ROK, the Sheslay IMHO will overtake it, as the #1 play in NW B.C., and the Grizzly will become a critical piece of the puzzle. You can thank us later. Geologically, this is a highly intriguing and compelling story, and from a market perspective it holds great promise.
Comment by Jon - BMR — August 4, 2013 @ 3:39 pm
Jon
have you heard anything from the GGI camp regarding a near term drilling program at the Grizzly? Are they going to wait and see what kind of results Prosper has before they start drilling?
Comment by Greg — August 5, 2013 @ 12:37 pm
They’ve been very quiet publicly about the Grizzly so far, but I would interpret that as the lull before the storm. I’ve detected a lot of enthusiasm in the GGI camp over what Bernier’s group is doing, and the work that Garibaldi has completed since 2008 at the Grizzly which shows how there are apparent important linkages between the 2 properties. Just my personal opinion, but it makes sense to me that GGI would have significant plans up its sleeve for the Grizzly as soon as Prosper Gold is trading, and rumor has it that is imminent – certainly this month (there’s already activity on the ground at Sheslay). They’re a smart group at Garibaldi. Just as an aside, it’s interesting and revealing that Prosper Gold renamed the Copper Creek Property the Sheslay Porphyry Copper-Gold Project. That’s Bernier’s way of re-branding this and putting his own stamp on it, of course, which is yet another example of how thorough they are and how they can execute at all levels (they also see great potential for Gold at Sheslay). By the way, this is the Sheslay River Valley but the Sheslay River itself only runs through Garibaldi’s claims from the north – through the far western edge of the Grizzly. One can interpret the name change as Bernier and Kluit engaging in some forward thinking and looking at the big picture here. This is truly a fascinating geological puzzle and it covers a large area. 83% of Firesteel’s holes (all at Dick Creek or the newly-named Star Target, 1 of several porphyry bodies at Sheslay) ended in strong Cu/Au mineralization, and the average length of their 23 holes was only 174 metres (deepest was 335 m). Lots of historical and highly encouraging geophysical data, trenching results, soil sampling, etc., as well for Kluit to analyze, plus their own deep IP survey in advance of drilling. Firesteel never fully understood what it was actually onto (poor geological team IMHO), and Bernier struck a deal at exactly the right time when the FTR group was desperate. This project, now in the hands of proven experts in this business, is going to move forward very quickly, which presents an enormous opportunity for Garibaldi. Our assessment is that GGI has the ability, the resources, and the determination to seize the moment.
Comment by Jon - BMR — August 5, 2013 @ 1:05 pm
Jon,
My research and personal opinion is that the Kaketsa pluton will be proven to be the source of all the runoff porphyry deposits in the Telegrarph Creek area.Thinking of this pluton as a volcano,the surrounding deposits can be considered the lava runoff.GGI and Mount Kaketsa will,at some point,be proven to be heart of this entire area.My question to you,and I am wondering if you have asked Pete Bernier or Steve Regoci,is if they think Mount Kaketsa may be more than a porphyry deposit,but a possible supergiant deposit,and the rest is leakage from this deposit?Is anyone thinking this way?
Comment by Jim Niles — August 5, 2013 @ 6:12 pm
Jim, you’re completely on the right track with this, with the idea that the Kaketsa Pluton could really be the key to everything at Sheslay and the Grizzly, and the surrounding area. Could it actually be a giant deposit itself? There is so much to be learned in the coming weeks and months, and no one more capable at figuring this all out than Kluit and the Prosper Gold team, plus GGI has an outstanding geological crew as well. A May 2004 report on Copper Creek (now the Sheslay), authored by none other than CXO’s Adam Travis (ironically, he was one of 3 Copper Creek claim holders in 2002-2003 who entered into the option deal with Firesteel), noted there is “spectacular alteration” on parts of Mount Kaketsa…”whereas this is a large intrusive mass it should be checked for its disseminated mineral potential”…it is clearly a heat engine driving mineralizing fluids in the area (on both the Grizzly and the Sheslay), but beyond that – it’s speculation at this point on everyone’s part, though I believe some new solid theories will quickly emerge…..this is going to be a fascinating geological story to cover…..
Comment by Jon - BMR — August 5, 2013 @ 6:41 pm