BullMarketRun.com

Rouyn-Noranda, Quebec

Gold has traded in a range between $1,775 and $1,828 so far today…as of 12:15 pm Eastern, the yellow metal is down $27 an ounce at $1,785…Silver is off $1.12 at $39.54…Copper has fallen 15 cents to $3.78…Crude Oil is off $2.35 to $85.61 while the U.S. Dollar Index is up one-fifth of a point to 77.25…media reports based on European Central Bank and International Monetary Fund data show that European central banks have bought a net 0.8 tons of Gold since the beginning of this year…according to Commerzbank, this would be the first time in over 20 years that European central banks are buying more Gold than they are selling…the emerging markets of China and India now collectively account for more than half of global Gold demand, and their consumption is likely to keep rising as their populaces become more prosperous, said an official with the World Gold Council…“There is a continuing surge of demand coming from the emerging markets, led by India and China,” said Jason Toussaint, managing director, U.S. and investment, for the WGC…“Those two economies are growing extremely rapidly”…all eyes are on the Fed this week with markets participants overwhelmingly banking on the Federal Reserve to deliver a new program to bolster the U.S. economy after meetings tomorrow and Wednesday…Bernanke is expected to launch Operation Twist in which it buys longer-dated Treasury bonds in an effort to drive down interest rates…this will require some co-ordination with the Treasury Department in order to be effective…President Obama is proposing a more than $3 trillion plan to shrink U.S. debt with roughly half of the money coming from tax increases on the wealthy and corporations…it’s very refreshing to start to see some Canadian journalists, most of whom are generally considered very liberal, waking up to how incompetent this American president is…check out Rex Murphy’s column in Saturday’s National Post (quote:  “…the flaws and failures of what is turning out to be one of the most miserable performances in the the modern history of the American presidency”)…nice job, Rex…

The CDNX as of 12:15 pm Eastern is off 22 points at 1741…the TSX Gold Index, meanwhile, continues to perform well as producers are definitely in favor at the moment…the Gold Index is currently up 3 points at 432…John sees the possibility of a minor pullback in the Gold Index from current levels before the start of a potentially explosive “Wave 5” phase as the chart below explains…

Agnico-Eagle Mines (AEM, TSX) has made a friendly takeover offer of $275 million for Grayd Resource Corp. (GYD, TSX-V)…this is the kind of activity that we’re expecting more of in the coming months as majors scramble to add ounces…Grayd owns a 100% interest in the La India project located in the Mulatos Gold Belt of Sonora, Mexico (approximately 70 kilometres northwest of Agnico-Eagle’s Pinos Altos Gold mine)…the project hosts a NI-43-101 compliant measured and indicated Gold resource of 26.8 million tonnes at a grade of 0.88 g/t Au and an inferred resource of 19.7 million tonnes grading 0.80 g/t Au…mineralization is open in all directions at La India and AEM must believe there is considerably more Gold on the property…GYD has shot up 78 cents to $2.73 this morning and is the most active stock on the CDNX…Niogold (NOX, TSX-V) and Aurizon Mines (ARZ, TSX) have discovered two new high grade zones at the Marban Block Property in the heart of the Malartic Gold camp, just down the Golden Highway from here in Rouyn-Noranda…Aurizon has an earn-in option on the property…906.2 g/t Au over 2.9 metres (MB-11-198) and 5.9 g/t Au over 15.7 metres (MB-11-195) were intersected at the new High Grade Western Zone at vertical depths of 175 and 125 metres, respectively…meanwhile, the second discovery, the Eastern Down Dip Zone (400 metres east of the former Marban mine shaft) includes intersections at depth of 7 g/t Au over 10.9 metres, 179.5 g/t Au over 1.2 metres and 6.1 g/t Au over 12.6 metres…a resource estimate for Marban Block will be completed by the end of the year based on drilling since last yearr…Niogold is currently up 2.5 pennies at 35.5 cents…GoldQuest Mining (GQC, TSX-V) is merging with Takara Resources (TKK, TSX-V)…the business combination may make sense strategically for the two companies but GoldQuest has been around for many years and some investors will no doubt be disappointed…GQC is up half a penny at 17 cents…Visible Gold Mines (VGD, TSX-V) continues to have an explosive chart and the stock’s pullback from a high of 43.5 cents last week has simply brought it back down to its rising 20-day moving average (SMA) which has to be considered a normal technical development in the context of an overall strong uptrend…VGD has been getting very encouraging early indications from its Wasa Creek and Wasa East properties, immediately adjacent to Wasamac, and drill results are still pending for 12 out of 13 holes drilled in Phase 1 at Wasa Creek…the company has already committed to a Phase 2 program at Wasa Creek during the fourth quarter which gives us reassurance that indeed they believe they are closing in on something potentially significant…VGD is unchanged at 38 cents…

New Gold Inc. (NGD, TSX) has released an updated NI-43-101 resource estimate for its Blackwater Project in central British Columbia…we believed this deposit (formerly Richfield’s) would eventually exceed 5 or 6 million ounces and indeed it has…the indicated Gold resource is 165 million tonnes at an average grade of 1.01 g/t containing 5.4 million ounces of Gold…the inferred Gold resource is 39 million tonnes at an average grade of 0.94 g/t containing 1.2 million ounces of Gold…the updated estimate incorporates drill results from both the 100%-owned southern portion of the project and the 75%-owned northern portion, where Silver Quest Resources Ltd. (SQI, TSX-V) owns the remaining 25%…Blackwater will get bigger yet…

Gold Bullion Development (GBB, TSX-V) has just announced  that its wholly owned subsidiary, Castle Silver Mines Inc., has filed a preliminary prospectus for an initial public offering of 4,750,000 flow-through units at a price of 40 cents per unit and a minimum of 3 million and a maximum of 5 million units at 30 cents for maximum gross proceeds to Castle Silver Mines of $3.4 million…Gold Bullion shareholders will receive one common share of Castle Silver Mines for approximately every 85 issued and outstanding Gold Bullion shares on the distribution record date (to be announced)…Gold Bullion will retain approximately 7.8 million shares of Castle Silver Mines…GBB released assay results from 28 more holes at Granada last Wednesday…the results were solid as assays from half of the holes (14) showed intercepts of 100 metres or more grading between 0.31 g/t Au and 0.50 g/t Au…the northern part of the Eastern Extension continues to show excellent potential and tonnage is adding up in that area…so, overall, we continue to like how the LONG Bars Zone is coming together…however, the market is anxious for a NI-43-101 initial resource estimate and GBB made the mistake last March of stating, “The company remains very focused on generating a 43-101-compliant resource calculation by early summer”… we’re now approaching the end of summer and there is still no 43-101…companies are rewarded when they exceed the market’s expectations and are punished when they don’t fulfill them which is why GBB has been struggling of late…as of 12:15 pm Eastern, Gold Bullion is off 2.5 cents at 31 cents…

Drilling at the waste pile near Pit #2 at Granada

Adventure Gold (AGE, TSX-V), unchanged at 57 cents, continues to look strong and a turnaround in its 50-day moving average (SMA) is possible this week…last week the company released solid initial results from Phase 2 drilling at its Pascalis-Colombiere Gold Property near Val-d’Or which included 7.1 g/t Au over 4.3 metres and 4.5 g/t Au over 9.3 metres…AGE is working on a NI-43-101 resource estimate for Pascalis and our belief, based on results to date, is that the property likely holds significantly more ounces than what Cambior mined at the property (L.C. Beliveau Mine) between 1989 and 1993 (nearly 170,000 ounces)…Pascalis is a property we believe Richmont may have interest in potentially acquiring given that its Beaufor Mine is located adjacent to it and Richmont’s Camflo Mill has unused capacity…Richmont President and CEO Martin Rivard is obviously keeping an eye on developments at Pascalis given his response to one of Jon’s question’s last Friday…some readers have inquired about Alexandria Minerals (AZX, TSX-V) which has a nice package of properties along the Cadillac Trend in the Val-d’Or area…technically, the stock does have some challenges at the moment with declining 100, 200 and 300-day moving averages…the declining 1,000-day SMA at 13.5 cents has been providing support but a test of the 10-cent support area can’t be ruled out…that’s just a technical perspective…fundamentally, the company’s properties have good potential (they do have some advanced situations) but will likely require more time to generate market excitement…