Greetings from Smithers, a northern British Columbia staging area for our trip to the Sheslay Valley – about an 8-hour drive northwest where our 2-member team will be picked up by helicopter at the Golden Bear access road near Telegraph Creek and flown to the Hat Property, currently being drilled by Doubleview Capital Corp. (DBV, TSX-V)…we’ll have several days of coverage from the Hat and this rapidly emerging world class Cu-Au porphyry district beginning tomorrow…
Gold is pushing higher today…as of 7:35 am Pacific, the yellow metal is up $13 an ounce at $1,310…Silver has gained 18 cents to $20.05…Copper is off a penny at $3.02…Crude Oil is 49 cents higher at $100.93 while the U.S. Dollar Index has tumbled nearly half a point to 79.79…
Pro-Russia unrest – no doubt aided by the Kremlin – is swelling in the Ukraine, giving bullion a lift today…Russia’s foreign ministry warned today that any use of force by Ukrainian authorities to dislodge pro-Kremlin separatists who have seized control of government buildings in three cities in eastern Ukraine could plunge the country into civil war…
India’s Gold imports in March rose to nearly 50 tonnes, the highest since the Reserve Bank of India’s import curbs came into force in May last year, according to an estimate by the the All India Gems and Jewellery Trade Federation…the country’s finance minister has indicated that the government could further ease restrictions on Gold imports after more banks were allowed to import bullion just a few days…
Gold traders will be paying close attention to the release of minutes (due tomorrow) from the latest Federal Reserve meeting…fears about what could be in those minutes contributed to bullion’s plunge to $1,277…
Updated Gold Chart
Below is a 1-year weekly Gold chart from John…important Fibonacci and chart support held during the recent sell-off, and the ADX indicator shows that the bearish bias that formed during the last half of March is weakening…from last May to now, Gold has been constructing a cup-with-handle pattern which remains valid as long as bullion does not close below $1,270…
Today’s Equity Markets
Asia
After a holiday Monday, China’s Shanghai Composite shook off another bad day on Wall Street with a 39-point gain overnight to finish at 2098, a 6-week closing high…Japan’s Nikkei fell 202 points…
Europe
European shares are off their lows of the day in late trading overseas…
North America
The Dow, which fell over 300 points Friday and Monday, is down another 35 points as of 7:35 am Pacific… yesterday, the S&P 500 was pushed into the red for the first time this year while the Nasdaq recorded its biggest 3-day drop since 2011…
Nasdaq 3-Year Weekly Chart
The Nasdaq landed on channel support yesterday though keep in mind that a test of Fibonacci support levels and the long-term trendline could still easily occur during this second quarter or beyond after an extended period of technically overbought conditions…note in this chart from John that a bearish -DI crossover has also occurred…
In Toronto, the TSX is off 4 points as of 7:35 am Pacific…good riddance to the separatists and socialists in Quebec as the PQ was crushed in last night’s provincial election…the new Liberal majority government should remove a lot of uncertainty surrounding the mining and exploration sector in Quebec…the Venture is down 3 points at 994 through the first 65 minutes of trading…
Smithers – Serving Northwest B.C.’s Exploration Needs
What could be more Canadian than this – a view of a hockey arena, the Smithers Civic Center off the main highway, with a mountain backdrop?…actually, the small town of Smithers (population 5,500), halfway between Prince George and Prince Rupert, has produced several notable NHL stars over the years including the Watson brothers (Joe and Jimmy won Stanley Cups with the Philadelphia Flyers in the 1970’s), Ron Flockhart and Alan Kerr…Smithers serves a trading area of approximately 20,000 and is also home to an important regional office of the B.C. Ministry of Energy and Mines…this area has a long history of dairy farming and locals claim that a Smithers chicken farmer invented the egg carton in the early 1900’s…
Smithers, nestled in the beautiful Bulkley Valley that features some of the world's best steelhead fishing, celebrated its 100th birthday last year and is also home to numerous diamond drilling companies.
Northwest B.C. Exploration + Updated Venture Charts
Exploration in northwest B.C. – particularly in the emerging Sheslay Valley district where the discovery of multiple new Cu-Au porphyry deposits is clearly possible – could be an important catalyst for a major move higher in the Venture over the coming months…historically, this is a market that requires significant discoveries in order to maintain investor confidence and generate excitement, and of course there’s nothing like an old-fashioned, rip-roaring Canadian area play…we’ll explore that issue in more detail in the coming days in addition to the potential impact of the critical Northwest Transmission Line that has opened up so much more of this mineral-rich province for exploration and mining…
Venture 9-Month Daily Chart
Below is a short-term Venture chart from John that shows a market bouncing between strong support at 985 and resistance at 1007…the Venture of course is underpinned by other strong support below 985, so a drop below that level would not derail the primary uptrend…it’ll be interesting to see how this short-term battle between 985 and 1007 plays out…
Venture 5-Year Weekly Chart
This long-term weekly chart demonstrates how the Venture’s overall technical health is better than at any time since 2010…the rising 200-day moving average (SMA) at 956 is closing in on already superb support at 970…
Garibaldi Resources Corp. (GGI, TSX-V) Chart Update
A company with a huge stake in the Sheslay Valley, of course, is Garibaldi Resources Corp. (GGI, TSX-V) which controls more than 50% of the district’s mineralized “corridor”…below is a very interesting fresh chart from John on GGI that goes back 10 years and provides an exceedingly positive long-term perspective…note the increasing up momentum in the RSI(14) at 55%, the strong accumulation and the uptrend support line…GGI remains locked in a powerful overall bullish phase that could continue for many months given what the technicals are suggesting…between B.C. and Mexico, Garibaldi is well-positioned on the ground for some major successes which is consistent with what the chart is telling us…as always, perform your own due diligence…GGI is off a penny at 17 cents in light trading as of 7:35 am Pacific…
Note: John and Jon both hold share positions in GGI and DBV.
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Comment by Sebastian — April 8, 2014 @ 10:50 am
Listen guys, dump RBW at 2 cents before it is too late. This one has not strong supporters. No chance to go up.
Comment by theodore — April 8, 2014 @ 12:48 pm
With a new government elected in Quebec and a strong mandate against another referendum, will the investment community; specifically in the mining sector, look more favourably on Quebec? It lost its prestigious ranking, could it reclaim its status again?
Thanks again for you insightful work.
Comment by Paul — April 8, 2014 @ 1:21 pm
Hi guys, Curious… is GGI the oldest company in the Sheslay? Also was listening to a guy on Al Korelin weekend show this past Saturday and the host asked about emerging area plays… no mention of Sheslay Valley… he seemed keen on the athabasca basin as the next big area play. thoughts?
Comment by laurie — April 8, 2014 @ 4:01 pm
Laurie, of all the current landholders, including Prosper, Doubleview, Teck and others, GGI has indeed been around the longest in the Sheslay Valley, since 2006. I’m not surprised Al Korelin made no mention of the Sheslay Valley – he may not have even heard of it, believe it or not, or at least knows very little about it (no disrespect to Al). There is still a wide lack of knowledge among the masses in terms of where this area is and what is developing on the ground. Of course that will all change over the next few weeks and months as activity ramps up, drilling expands, more results start coming in and the story gets out. The Athabasca basin is already an area play, and it’s interesting to note that one of the earliest participants in that region was privately-held Kalt Industries which has scooped up 240 sq. km in the Sheslay district. Kalt himself is calling the Sheslay district one of the great emerging Canadian discovery areas in recent history, and he has put his money where his mouth is. We’re all “early in the game” in the Sheslay Valley but that’s how the big money is made for those who are patient and understand what’s evolving.
Comment by Jon - BMR — April 8, 2014 @ 4:28 pm