Gold soared to a new all-time high today, making our technical difficulties at BMR this morning all the more frustrating as we were unable to post our regular Morning Musings…we apologize again for the inconvenience…our back-end system has now been fixed, so we’re doing a Tuesday Review instead with our regular Morning Musings returning tomorrow…Gold made an impressive move today as it finally blasted through resistance and shot up to a new all-time high of $1,276…it finished the day at $1,269, up $24…a sharp drop in the U.S. Dollar was the catalyst for Gold’s performance today…anticipated further bouts of “Quantitative Easing” (QE) by the Fed are helping to drive down the American dollar and inject more fuel into Gold…the CDNX, which has been telegraphing this breakout by Gold for the past couple of months, climbed another 17 points today to 1622…it got as high as 1629…there is resistance on the CDNX around 1625 but it’s really only a matter of time before that’s taken out (maybe Wednesday?!) as this market is in a very powerful uptrend…as we mentioned last weekend, a minor CDNX pullback is possible – it would also be a healthy technical development – but any pullback is likely going to be limited to about 5% as the technical and fundamental underpinnings are so strong right now…it appears we are in the midst of a move that will ultimately take the CDNX back above 2,000…a huge “FOR SALE” sign is hanging over Gold Bullion Development (GBB, TSX-V), just like it was July 5 – the last time the stock declined for 5 consecutive trading sessions…GBB got as high as 65 cents today but closed down a penny at 61 cents on relatively light CDNX volume of 814,000 shares (605,000 traded through ALPHA)…on July 6, the morning after its last 5-day slide, GBB bottomed out at 43.5 cents and then jumped 82% in just over 2 months…despite this 5-day slump, Gold Bullion’s chart remains very bullish with higher highs and higher lows…all of GBB’s moving averages remain in bullish alignment…the rising 20-day moving average of 60 cents is providing very strong support, and the recent overbought condition has essentially cleansed itself…fundamentally, we know – based on last Thursday’s news release – that good news is coming soon from the LONG Bars Zone…this is another classic opportunity, we believe, with Gold Bullion…Seafield Resources (SFF, TSX-V) had a powerful day today…the stock got through resistance at 23.5 cents and closed at 25.5 cents on CDNX volume of 1.6 million shares…exploration plays in Colombia are heating up again and Seafield is perfectly positioned to ride the wave…Seafield is working on three excellent properties on its Quinchia District land package (Miraflores, Dos Quebradas and Chuscal) with initial drill results expected shortly (within the next 2 weeks) from Miraflores…drilling will start soon at Dos Quebradas…Sidon International (SD, TSX-V) was the 2nd most active stock on the Venture today, climbing a penny to 14 cents on nearly 8 million shares…the volume surge is very bullish for Sidon which has an exceptional looking chart…Canaco (CAN, TSX-V) had a huge day today and that certainly helped Sidon which is up 180% since we introduced it to BMR readers last March…for bottom fishers, nobody loves Noront Resources (NOT, TSX-V) right now which is exactly why astute investors should be keeping an eye on it…Noront closed at $1.10 today, down from a high of $1.38 last week…for patient investors, Noront is a great stock to consider for the long haul as there’s a lot of fundamental value with their McFauld’s projects…it’s out of favor at the moment in part because of current investor focus on gold opportunities…
September 14, 2010
5 Comments
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Everyone knows there are a lot of near term drill result NR’s on the horizon for GBB but with a move on gold prices like today and the numerous big moves on a lot of other gold companies you can probably sense the frustration as it drifts lower. There are a lot of followers to BMR reports and the hype that’s been given here by yourselves especially towards GBB….here is to hoping the wait is worth it and that you are right!
Comment by Jeff — September 14, 2010 @ 3:03 pm
Gold Bullion Development Corp. (GBB) is not different from many other exploration plays. If you believe in the story then you have to stay in them. It is not always fun to see your gold exploration play flat or even down when the price of gold does so well, but that is life. In addition to GBB, I am invested in a large number of exploration plays in the Yukon. I also believe in the White River gold rush taking place in the Yukon and as such am ok with some of those exploration plays being down or flat as some were today. That is we we all hold a basket of stocks.
Comment by Michael — September 14, 2010 @ 7:39 pm
John. I’m confused. Hole 10-17 was the big discovery hole. In this news release holes 10-42,10-50 and 10-48 were drilled west, north and east of 10-17. They were all within about 60 metres horizontal distance of 10-17. Hole 42 showed 96 metres of 0.53 within 250 metres of 0.32 (not bad) while the other two holes showed hardly anything at all. Well short of the result from 10-17 yet very close to the hole. It seems to me that these results do not confirm the results from 10-17 and cast a bit of a question mark over the grade of the eastern extension. There seems to be lots of mineralisation which is good but low grades. Do you find this confusing ?
Comment by Ron — September 14, 2010 @ 9:18 pm
GBB will remain at 60-70 levels untill we get more news. A really good hole in long bar 1 will send it off to the races again. Especially if we get deep results over 300m. Sidon is on the move again. The pp is complete and lodged and there should a nr on that soon. Also we should hear more about when the assays from the grab samples will be ready. Laurence Stephenson was so intrigued by the new extension to the target zone that he stayed on a few extra weeks than scheduled to exaluate it. All very positive and the money is now in place to drill this fascinating property. I don’t give a damn if their nrs are amateurish as long as they produce results!!
Comment by patrick — September 15, 2010 @ 12:53 am
Reply to Ron’s question as requested: Hole 17 was the Phase 1 discovery hole, showing that something potentially quite big is in the Eastern Extension. I believe the BIG discovery hole is yet to come though from the East. With regard to your question, it doesn’t concern me in the least that 50 and 48 didn’t show much in terms of assay numbers (I believe I answered a similar question to this a little while ago). In a deposit such as this, and at this very early stage, not every hole is going to hit – that’s a fact. You could drill 10 metres from 48 or 50 tomorrow and perhaps hit something very significant. At this stage in the game they’re drilling for structure. It’s quite possible 48 and 50 may have revealed something important in terms of structure, which may have led GENIVAR onto another trail. GENIVAR has already confirmed, based on 63, 65 and 73, that this deposit goes east of 17. So they’ve already confirmed that, and I’m sure it will go north and south as well for some distance. It’s still early – lots more drilling needs to be done, and a lot of holes have yet to come in – the best-looking holes it appears. Also, as the drill pattern eventually tightens, the grades and intersections will improve. GBB should do another bulk sample at some point in the near future in the East, and perhaps some RC drilling to get a better handle on the grade. Personally, I’m really, really encouraged by what I see in the East based on the visuals that have been reported—–GBB is hitting nice alteration, good structure and plenty of VG throughout that area. The grades and intersections will come.
Comment by Jon - BMR — September 15, 2010 @ 2:42 am