Toronto – Cambridge Resource Show, 7:45 am eastern
After yesterday’s powerful move, Gold shot up a little higher overnight and reached $1,785…as of 7:45 am eastern, the yellow metal is up $2 an ounce at $1,780…Silver had added 6 cents to hit $34.72…Copper is relatively unchanged at $3.73…Crude Oil has gained 18 cents to $92.03 while the U.S. Dollar Index has declined slightly to 79.52…
Barclays has opened a precious metals vault in London to store physical Gold, Silver, platinum, palladium and rhodium, the firm says…“This new client service is a very significant milestone in the expansion of our physical commodities offering, filling an important gap across metals and energy…in doing so we further strengthen our metals business and our presence in the bullion market,” stated Mike Bagguley, head of commodities and FX at Barclays…
Today’s Markets
China’s Shanghai Composite Index powered higher again overnight, climbing another 30 points to 2086 on stimulus hopes after briefly falling below the 2000 level earlier this week…China markets will remain shut all of next week for the Mid-Autumn Festival while Hong Kong will be closed next Monday and Tuesday…European markets reversed to the downside in mid-day trading as the yield on 10-year Spanish government bonds once again crept over the 6% mark…Spain announced a fifth round of budget cuts and tax increases in just nine months yesterday…that was part of a reform package that could pave the way for an EU bailout and sovereign debt purchases by the European Central Bank…stock index futures in New York as of 7:45 am eastern are pointing toward a mildly lower open on Wall Street…
Israel Draws Clear “Red Line” With Iran
Israeli Prime Minister Benjamin Netanyahu, in a speech at the U.N. General Assembly yesterday, said Iran was on track to build an atomic bomb by the summer of next year and exhorted the U.S. and other global powers to set a strict limit on Tehran’s nuclear fuel production as the clear “red line” that would trigger military strikes…Netanyahu’s speech was the latest public challenge to President Barack Obama to more aggressively confront Tehran…but Netanyahu also implied that Israel wouldn’t consider attacking Iran at least until the spring (unless, of course, he’s trying to throw the Iranians off and catch them somewhat by surprise)…by then, he argued, Iran will have amassed enough medium-enriched uranium to convert into fuel for a nuclear bomb in a matter of weeks or months…
Cambridge Resource Show
It’s the second and final day of the Cambridge Resource Show in Toronto (attendance appears to be down somewhat from last year) where the overall mood is definitely more positive than it was at the Cambridge Show last June in Vancouver…however, there’s still some nervousness among some companies and investors and that’s actually a good sign at this juncture…while we believe the Venture is on track for a very powerful fourth quarter, that view is not shared by everyone which we find encouraging from a contrarian point of view (we were one of the few on the bullish side last June)…the many skeptics still out there will be ones starting to pile in two or three months from now to help take this market through important resistance levels…
Great line yesterday by a successful investor we met on the floor of the Resource Show…”The dotcom boom was fueled by greed…the coming Gold and Silver boom will be fueled by both greed and fear”…
Let the bull (or, as some cynics would say, the bull----run) at the Cambridge Show in Toronto. Companies and investors are more optimistic than they were at last June's show in Vancouver, but there are still plenty of nervous investors which in our view is a bullish sign.
Foundation Resources (FDN, TSX-V)
Our Cambridge “bottom fishing” tip for the day – a company our readers should perform some due diligence on – is Foundation Resources (FDN, TSX-V) which is trading at just 6 cents a share after climbing as high as 90 cents in 2010…it’s important to note that FDN now has a new CEO – the highly respected Ian Lambert who was previously at the helm of Trade Winds Resources which got taken out by Detour Gold (DGC, TSX) in a stock transaction valued at $84 million…we spoke at length with Lambert at the show yesterday, and he’s confident he can ultimately build resources at the company’s Coldstream Gold Project near Thunder Bay from just under 800,000 to several million ounces…
Technically, FDN – like a lot of companies on the Venture at the moment – appears to be on the verge of breaking out of a downtrend…below is a 2.5-year weekly chart from John that shows a lot of promise…FDN will have to look at doing a financing in the not-so-distant future but an improved market environment should allow them to do so, and on more favorable terms…
Rainbow Resources (RBW, TSX-V) Update
Rainbow Resources (RBW, TSX-V) held a very well-attended and impressive reception last night at the popular Turf Lounge on Bay Street, and the message was very simple: Good things are happening, and expect news by the middle of next week…based on comments from President David W. Johnston, as well as Jim Decker who’s overseeing developments on the ground, October will be the company’s busiest month ever with more drilling not only in British Columbia (and results from the International) but also in Nevada where the company is gearing up to tackle the Jewel Ridge Property…October is Rainbow’s month to shine – the company needs to deliver the goods, and we’re confident it will – and some interesting guests were in attendance last night including newsletter writer Jeb Handwerger who made the Rainbow event his first stop after getting off the plane from Florida…Handwerger speaks at the conference today…
Other Companies With Some “Buzz”
We heard plenty of positive talk yesterday concerning Precipitate Gold (PRG, TSX-V) which we’ve mentioned here on a few occasions over the last six weeks…it has a strong group behind it and recently joined the Dominican Republic Gold rush where there’s only a very limited number of well-positioned juniors to begin with…PRG has been consolidating lately around the 40-cent level, and John’s 3-month daily chart shows RSI(14) has fallen very close to strong support…the SMA-50 is at 36 cents and rising, also providing solid support…
Great Atlantic Resources (GR, TSX-V)
We’ve been very positive throughout the year on the prospects for Great Atlantic Resources (GR, TSX-V) which has considerable potential in our view given the assets it’s building in Atlantic Canada…the company almost has too many things on the go, which can confuse the story for some investors, but you can’t fault President and CEO Chris Anderson for his aggressive approach at a strategic time in the markets…Anderson is a go-getter and one of the Venture’s rising CEO stars, so we have no doubt he’ll do something big with Great Atlantic…the stock is currently trading at just 10.5 cents for a very modest market cap of just over $4 million…what’s interesting about John’s 2.5-year weekly GR chart below is the very noticeable increase in buying pressure (accumulation) since June…this is a very positive omen…the stock has been trading in a horizontal channel between 9 and 15 cents since February, and we see a good chance of a breakout above that channel during the fourth quarter…
Tinka Resources (TK, TSX-V)
A little plug on BNN can sometimes do wonders for a company’s stock price, and that’s what happened with Tinka Resources (TK, TSX-V) yesterday which created some talk on the floor of the Cambridge Show…Tinka is a promising Silver play in Peru, and we believe it’s worthy of our readers’ due diligence though we wouldn’t recommend chasing any stock after it has just been recommended on BNN..nonetheless, Tinka has progressed well this year and has the potential to become a big winner in 2013…below is a 2.5-year weekly chart from John…keep in mind that at the moment, TK is at resistance…whether it has enough energy right now to break out is very questionable given current overbought technical conditions…if it does, it’ll likely fall back to test the current resistance area which will become new support…this is definitely one to keep on the radar screen…we’d prefer to wait for a slight to moderate pullback before jumping in…check out the 18-month ascending triangle…
Aurcana Resources (AUN, TSX-V) Update
Aurcana Resources (AUN, TSX-V) has done well recently as expected…like Tinka, however, AUN is currently up against resistance and could retreat temporarily to cleanse an overbought technical condition…below is John’s updated AUN chart…
Notes: Both John and Jon hold share positions in Rainbow Resources (RBW, TSX-V) with Jon increasing his position this week.
Ok. So drill results will come soon. That’s great news.
Comment by Kalkan - Sweden — September 28, 2012 @ 4:45 am
Of course they are going to say Good things are happening you expect them to say things turned to crap?
Comment by Rick — September 28, 2012 @ 5:18 am
rbw broker meetings well nobody buying this am
Comment by robert — September 28, 2012 @ 5:53 am
Foundation Resources a mineral exploration company focused on the exploration and development of its flagship Coldstream Gold Project located in the Shebandowan Greenstone Belt, 115 Km North West of Thunder Bay, Ontario. The Company’s NI 43-101 resource estimate reported September 20, 2011 by Wardrop delineated a total inferred mineral resource of 763,276 ounces gold and an indicated resource of 96,400 ounces gold on the Osmani deposit, which is one of five highly prospective gold targets that Foundation has within this 16 km long Coldstream Gold Trend.
Shares Structure;
Issued and Outstanding 68,955,806
Options 4,090,000
Warrants 27,079,519
Fully Diluted 100,012,55
Cash in the bank; inferred of maybe 600,000K, post private placement.
Average volume 56K.
Comment by Alexandre — September 28, 2012 @ 6:02 am
Correction on the cash with Foundation R.; 2 private placements in April and June produced $2.1 million.
Comment by Alexandre — September 28, 2012 @ 6:10 am
BMR, what is your time frame estimation for the start of a drill program on PRG’s Dominican property?
Comment by Paul — September 28, 2012 @ 6:45 am
BMR, what are your thoughts on ABI, and GBB right now? I’m currently invested and have some thoughts of my own, but I would like to hear what you guys think about them. Any chance of a chart on one of them?
Thanks again for all your great info!
Comment by Trevor — September 28, 2012 @ 8:40 am
Seems last weeks and days GBB is higher in volume and shareprice. Also more news about weekly out and much more firework to be expected before 2012 end. Like 2nd 43-101, Mining and royalty program and Castle. Just look at GBB and call or e-mail them. IT’S ASHAME BMR IS HARDLY INTERESTED IN GBB OR LOOKING INTO IT. With SGS now they are really back on track and meeting with the timelines. Seems BMR is more short sighted but not in for the long run. BMR could have called or visited GBB again. Have a good weekend anyway…
Comment by Arjan — September 28, 2012 @ 10:28 am
PEM really getting frisky @ .085 , they got a huge company maker near surface deposit in Idaho similar to a Nevada play . OSK is now on board with some financing and involved in the drilling . This should have serious expansion .
Comment by Frank — September 28, 2012 @ 11:17 am
Great day for the venture today. Up 12 pts when everything else was down 🙂
Comment by Tony T. — September 28, 2012 @ 12:18 pm
thanks again bmr,you know here in the cental interior of b.c.most of us work all kinds of wacky shifts,days,nites what have you,we’re not all able to see whats goin on all of the time,heck i didn’t even know rbw was even show caseing themselves.sadly some of us cant sit in front of one of these screens most of the time,or i wonder is it sad,i think not,once again hats off to bmr and all the info they gather for us,good days ahead,enjoy your wknd,p.s.jon ill bet you miss the beach allready,enjoy.
Comment by tom — September 28, 2012 @ 12:46 pm
BMR – and some interesting guests were in attendance last night including newsletter writer Jeb Handwerger who made the Rainbow event his first stop after getting off the plane from Florida…Handwerger speaks at the conference today…
Dan – Did Handwerger speak about RBW today? Anymore info on RBW from the conference?
Comment by Dan — September 28, 2012 @ 4:26 pm
BMR
some of the newsletter guys I follow seem to think that PAAS, Pan American Silver is way under valued right now, was wondering what the charts are saying, if you get a chance could you put up a chart on PAAS, and if it is not to much to ask, NES, Newstrike too, it has gone up quite a bit since the last chart you posted and some think a cup and handle is forming with a potential break out to over 4 bucks?
thanks very much
Comment by greg — September 28, 2012 @ 5:20 pm
My sixth sense forecast results this week:
—————— Forecast————————————————–Actual—————————————-
RBW.. Low 21 cents High 37 cents, Close at 31 cents **——— Low 20.5 cents High 22 cents Close 21 cents (still waiting)
GQC.. Low $1.78 High $1.99, Close at $1.85 ——————– Low $1.11 High $1.90 Close $1.34 (who will know this huge drop!)
GBB.. Low 11.5 cents, High 14.5 cents, Close at 13.5 cents **– Low 11.5 cents High 14 cents Close 13 cents
EVR.. Low 10 cents, High 11.5 cents, Close at 10 cents ——– Low 9 cents High 11 cents Close 10 cents
SFF.. Low 14 cents, High 17 cents, Close at 15.5 cents **—— Low 13.5 cents High 15.5 cents Close 15.5 cents
SF .. Low 2.5 cents, High 3 cents, Close at 3 cents ** ——– Low, High, Close 2.5 cents
TYP.. Low 22 cents, High 29 cents, Close at 29 cents **——– Low 21 cents High 24 cents Close 22 cents
NAR.. Low 3.5 cents, High 5 cents, Close at 5 cents **——— Low 3.5 cents High 4 cents Close 3.5 cents
** Holding a portfolio
Comment by Theodore — September 28, 2012 @ 6:53 pm
FDN bmr thats what your recomending geez louise for christ sake this pick ruined people in the 90 range even higher glad i never bought that junk cmon Dave where are you any thoughts on rbw lately.
Comment by Gerry — September 29, 2012 @ 9:02 am
That’s important, and that is why Sunward, and several other companies in my galaxy, including Continental Gold in Colombia, Xtra-Gold in Ghana and Carlisle Resources (TSX: T.CGJ, Stock Forum) in Manitoba plus one or two others, have excellent shots at becoming multi-billion-dollar companies rapidly
Read more at
stockhouse.com/columnists/2011/sept/21/tectonic-shift-in-gold-junior-s-value#Mc7LxLsp3uPfJ05j.99 Why I like cgj
Comment by gil — September 29, 2012 @ 5:23 pm