TSX Venture Exchange and Gold
Note: Canadian and U.S. markets are closed Monday for “Family Day” and “President’s Day”, respectively.
Happy Days are here again.
The “masses” have not likely picked up on this just yet, but it was a hugely significant week for the Venture as the Index finally gave technical confirmation of a critical breakout. At long last, the bulls have wrestled control from the bears. Investors who understand this new reality are in a position to potentially make fortunes over the next 6-9 months.
The final nail was driven into the coffin of the Venture bear market this past week when the Index staged a confirmed technical breakout on strong volume through the 970’s. Charging bulls smashed through this wall of resistance in place for the last 10 months. Significantly, the 200-day moving average (SMA) has also reversed to the upside, an event that has always been followed by a powerful advance in this market going all the way back to the days when it was known as the Vancouver Stock Exchange. There are many other technical indicators that confirm a new bull phase is underway, and we’ve reviewed those in recent weeks. Let’s now take a look at where the Venture could be headed in 2014.
Over the last several months, John’s 3-year weekly Venture chart was our incredibly reliable guide to the end of the bear market and the beginning of this bullish new cycle. He has now put together a 5-year weekly chart that we’re confident will also serve our readers well as this new bull run unfolds.
As you can see below, the first major resistance on the way up is around 1150. It’s possible the Index may “flirt” with the 1000 level for a brief period (the 300-day SMA by the way is 1003), or it may immediately surge right through it. In any event, the next major chart resistance is around 1150, and this is followed by 1350, 1650 and 2000. The first Fib. target (38.2%), based on the fall from the early 2011 high of 2465, is 1465. This is interesting because that Fib. resistance also corresponds with the Venture’s 1,000-day moving average, certainly a level that realistically could be reached at some point during 2014.
Notice how RSI(14) found support at 50%, previous resistance, and has broken out to its highest level (60%) in three years. What we’ve also just seen is the first bullish +DI/-DI crossover on the long-term weekly chart since September 2010, and we all know the kind of run the Venture went on after that.
For the week, the Venture was up 34 points to finish at 996 – an impressive 3.5% jump. The Venture is out-performing the broader equity markets, like it was in 2009 and 2010, and is now 6.9% higher for the year. That compares to a loss of 2.6% for the Dow, a gain of 1.6% for the Nasdaq and a 3.1% advance for the TSX. Gold is up 9.5%.
The Importance Of Being Selective
We caution, as always, that a rising tide will not lift all boats. In this new Venture bull phase, we suspect that how money is going to be deployed (into financings and the open market) will be different than how it was deployed in previous bull markets. Investors will be more selective – many have learned the hard way from recent mistakes – and the companies that will be favored will be the ones that can demonstrate they have highly competent management and geological teams, and properties of very strong merit. That means many Venture companies – hundreds literally – won’t fully participate in this upswing. Continue to avoid “lifestyle” companies like the plague. They don’t deserve a nickel of your money.
The Sheslay Valley Factor
History has taught us that at times like this, as the junior resource market turns the corner, one of the catalysts is usually one or more important discoveries. And these discoveries keep providing fresh fuel for the market which is so critical. An extremely significant situation is unfolding in the Sheslay Valley of northwest B.C., an area we’ve been encouraging investors to look at since June of last year. Given exploration results to date, plus discussions we’ve had with numerous geologists, prospectors and others, as part of our incredibly extensive months-long research into this very large and previously under-explored region, we’ve come to the conclusion that the Sheslay Valley is underlain by not one, not two, not three, but likely a series of Cu-Au porphyry deposits over a minimum of three properties (the Sheslay, the Hat and the Grizzly) and somewhere at depth could be a high-grade “core”. Further drilling of course will have to prove this out.
Quite simply, at this early stage the Sheslay Valley is showing “all the earmarks” of a world-class Cu-Au porphyry camp, and companies and lives are about to be changed dramatically as a result. Keep in mind that northwest B.C. is one of the most prospective areas (if not THE most prospective) for large Cu-Au porphyry, Gold, and base metal deposits on the entire planet. A minimum 600 sq. km area (the Sheslay Valley) in this part of the province has highly encouraging geological, geophysical and geochemical signatures, though overall the Sheslay Valley has been amazingly overlooked and under-explored until now.
Consider this: Every single drill hole (29 altogether) covering a small portion (400 m x 400) of just one target on one property has hit Cu-Au grades that are consistent with those at mines elsewhere in the region, and 9 km to the southeast another company starts drilling on another property and makes an important discovery after just 11 holes. Yet a third company, preparing to drill its property for the first time ever like the second company, has found “multiple” targets (known mineral occurrences with coincident anomalies) over a 15 km NW/SE trending corridor. As all of this unfolds, a staking rush ensues. Then the ears of at least two “majors” start perking up. Are you beginning to get the picture? Don’t wait until the “masses” start piling in because they will, and when they do the share prices could go through the roof. Discovery situations like this are rare and we want our readers to understand how big this could quickly become, and perform their own due diligence, in order to take full advantage of the wealth-building opportunities that we believe exist.
The Sheslay Valley will pour gasoline on the Venture fire. It is the most exciting and significant exploration story in B.C., and there’s every reason to believe that it will garner national and international attention in the months ahead.
The Seeds Have Been Planted (And Continue To Be Planted) For The Next Big Run In Gold Stocks
There’s no better cure for low prices than low prices. The great benefit of the collapse in Gold prices in 2013 is that it forced producers (at least most of them) to start to become much more lean in terms of their cost structures. Producers, big and small, have started to make hard decisions in terms of costs, projects, and rationalizing their their overall operations. Exploration budgets among both producers and juniors have also been cut sharply. In addition, government policies across much of the globe are making it more difficult (sometimes impossible) for mining companies to put Gold (or other) deposits into production, thanks to the ignorance of many politicians and the impact of radical and vocal environmentalists (technology has made it easier for groups opposing mining projects to organize and disseminate information, even in remote areas around the globe). Ultimately, all of these factors are going to create a supply problem – think about it, where are the next major Gold deposits going to come from? On top of that, grades have fallen significantly just over the past decade.
It doesn’t take a rocket scientist to figure out that the next huge bull market in Gold stocks is just around the corner due to demand-supply dynamics, much leaner producers who will suddenly become earnings machines, and a junior market that will be healthier simply because a lot of the “lifestyle” companies sucking money out of investors will simply disappear or get taken over by individuals or groups who are actually competent and serious about building shareholder value. A healthy “cleansing” in the market has been taking place. As this continues, more and more seeds are being planted for an incredible future move in well-managed Gold producers and explorers that could make the dotcom bubble look like a tea party. As for the juniors, focus on the small universe of companies that have the ability to execute both on the ground and in the market. Companies that are strong financially, have superior exploration prospects, competent management and clean share structures.
Gold
The breakout in the Venture confirms to us that Gold indeed hit bottom last year just below $1,200 an ounce. Goldman Sachs and others who are waiting for Gold to hit $1,000 an ounce – well, their wait may be longer than the one Toronto Maple Leaf fans are still suffering through for the Stanley Cup.
Gold, like the Venture, had a powerful week, busting through important resistance at $1,275 and closing at $1,319, a gain of $52 from the previous Friday. Chinese demand is robust, short-covering is occurring, and the U.S. Dollar Index is weak with a test of critical support at 79 on the horizon. So Gold bulls have regained the upper hand. Gold should move even higher from here to test resistance at $1,350. It may then consolidate its gains (perhaps even test new support at $1,275) before zooming higher again.
Holdings in SPDR Gold Shares (GLD), the world’s largest Gold ETF, rose by 7.5 metric tons Thursday to 806.35, according to the ETF’s website. They are now up by 15.89 tons since Jan. 28 after a large decline in 2013.
Below is a 9-month daily Gold chart from John. Note the double bottom reversal pattern. Gold is now above its 200-day SMA for the first time in a year.
Silver soared $1.51 an ounce last week to close at $21.51. Copper finished unchanged at $3.26. Crude Oil climbed 42 cents to $100.30 while the U.S. Dollar Index slid another half a point to 80.15.
The “Big Picture” View Of Gold
As Frank Holmes so effectively illustrates at www.usfunds.com, the long-term bull market in Gold has been driven by both the Fear Trade and the Love Trade. The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, has had a huge impact on bullion. Despite Gold’s largest annual drop in three decades in 2013, the fundamental long-term case for the metal remains solidly intact – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates, a Fed balance sheet now at $4 trillion and still expanding, money supply growth around the globe, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand (especially from China), emerging market growth, geopolitical unrest and conflicts…the list goes on. However, deflationary concerns around the globe and the prospect of Fed tapering had a lot to do with Gold’s plunge during the spring below the technically and psychologically important $1,500 level, along with the strong performance of equities which drew “momentum traders” away from bullion. June’s low of $1,179 was likely the bottom for Gold. Extreme levels of bearishness emerged in the metal last year. With the long-term bull market remaining intact, we expect new all-time highs in Gold as the decade progresses. Inflationary pressures should eventually kick in around the globe after years of ultra-loose monetary policy.
Jon
A good read, and if as you have stated, the Venture is about
to take off & fortunes are to be made, the companies, who
you suggest to avoid like the plague, will find a way.
Remember it’s all about greed and how easy we forget. Maybe
the old hands, may avoid some of those companies, but then
there are others , along with the newbies, some who will
not know the bid from the ask, or a limit order from a market
order, will be investing, because they heard their neighbors,
their friends are doing well. Even now i see some volume on a
daily basis, on some of those so called companies. Anyway, i
appreciate your post & may i add, i am ready. Good night ! R !
Comment by Bert — February 15, 2014 @ 7:24 pm
Great weekend report!! Thanks !
Comment by Greg J. — February 15, 2014 @ 9:48 pm
Thanks, Greg, by the way…..temperature has zoomed up to +2 at Sheslay tonight, so things are heating up in more ways than one. The warming trend is great news for a potential return to drilling by DBV in the very near future.
Comment by Jon - BMR — February 15, 2014 @ 10:02 pm
Hi Jon- when will the DBV Part 2 report be out?
The Sheslay Valley will be HOT this summer and the junior resource gurus will soon be paying a lot more attention to it. I am glad to be in early in the company which I believe will set the stage for others in the area (DBV).
Thanks
Comment by d4 — February 16, 2014 @ 6:40 am
Should be Monday or Tuesday; we were hoping a couple days earlier but getting it right is more important than rushing something out.
Comment by Jon - BMR — February 16, 2014 @ 7:37 am
Jon, any ideas as to why Volta resources has been beaten up so badly with the large resource they have proven up?
Comment by John — February 16, 2014 @ 11:50 am
Volta was swallowed up in a smart move by B2Gold.
Comment by Jon - BMR — February 16, 2014 @ 11:53 am
Thanks jon. I should have looked first. Followed it a while back and hadn’t looked lately. My error.
Comment by John — February 16, 2014 @ 11:56 am
Jon. Have you covered aix? If so where can I find your comments. I see they are dirt cheap and have claims in Sheslay valley!
Comment by John — February 16, 2014 @ 12:03 pm
We’re watching it (AIX). They’ve assembled an interesting claim package contiguous to and east of Teck, and southeast of GGI, called the Sheslay South Fork Project, and they’ve indicated they’re also looking at other possible ground in the area. There are the three leaders in this play, and then a series of companies including ABR, RG and AIX that stand to benefit as the spotlight continues to intensify on this area, and as drilling gets set to begin. AIX has some challenges including raising money bit I’m confident they’ll work through that, and establishing a foothold in the Sheslay was a smart initial move. The one company I like the most at this point besides the top 3 is ABR…the Hackett Property is VERY strategic, from both a logistics standpoint and geologically as it’s quite possible any Hat deposit may extend onto ABR’s ground given the SE trending nature of the overall Sheslay system. ABR recently increased the size of its PP, due to demand, which is a good sign, and they have also put together a solid PGM package in the Yukon west of Whitehorse. With 30 million shares outstanding and the stock sitting at 5.5 cents, this has powerful upside IMHO potential looking out over the next 6 months. Do your own DD as always of course.
Comment by Jon - BMR — February 16, 2014 @ 12:27 pm
Has abr indicated if they plan on commencing a drill program in the near future? Thanks for the feedback.
Comment by John — February 16, 2014 @ 12:35 pm
They haven’t yet, John, but I get the sense that ABR is quite excited about the possibility of drilling the Hackett; check out their last news Feb. 3. “The western edge of Hackett is within 1,000 metres of Doubleview’s discovery drill holes that indicate the strong potential for a copper-gold alkalic porphyry-type deposit (see Doubleview Capital’s news release dated Jan. 20, 2014). This gossan will be the subject of an early work program including sampling and mapping, as soon as weather permits, in order to prioritize potential drill targets.”
Comment by Jon - BMR — February 16, 2014 @ 12:39 pm
Jon,how optimistic are you on the comment that ggi is comming out with a nr on wed.its just you seem to be bang on with them thus far.?
Comment by Tom — February 16, 2014 @ 3:15 pm
I don’t know who made that comment, Tom. What GGI is doing Wednesday is a live Webinar presentation. I suspect that’s probably an indication that news is not far off but when, exactly, who knows. They have a lot going on, between the Grizzly and Mexico, and drilling continues at La Patilla according to their latest Fact Sheet (Feb. 7). GGI is the only major Sheslay Valley player with a booth at PDAC so my guess is we could see a flurry of news (Grizzly and Mexico) just before PDAC. Rumor has it on the street in Vancouver that Resource World Magazine is featuring the Sheslay Valley in its upcoming (PDAC) edition.
Comment by Jon - BMR — February 16, 2014 @ 4:23 pm
Problem is 9/10 cents was time to buy Ggi. Not in the twenties!!
Comment by John — February 16, 2014 @ 4:51 pm
Just wanted to point out to those interested that AIX.v had a sizable offer appear on Fri of 2 million shares at 0.03 which was no match for the near 3 million share bid at 0.025 but could represent a decent entry for players looking for a sizeable position in this emerging play without having to drive prices higher to attain it…z
Comment by zippy — February 16, 2014 @ 5:12 pm
Hmm, you need a little more vision, John. As far as GGI goes, my personal opinion is that before the drill even starts turning at the Grizzly, as these markets continue to heat up and the masses start discovering the Sheslay play because they haven’t discovered it yet, you’re looking at GGI trading in the 75+ cent range. John, the world doesn’t know about the Sheslay Valley yet. This is not professional investment advice, just my personal opinion, but GGI, PGX, DBV and ABR (plus others probably) are all going to go sky-high because that would be consistent with the discovery of a new world class Cu-Au porphyry system in this part of the province. There are historical precedents for this. This summer, maybe 2 weeks from now, who knows, you may very well find yourself saying, why didn’t I buy GGI or DBV when they were trading in the 20’s? Or PGX when it was at 50 cents? Or ABR at a nickel or AIX at 3 pennies or RG at 6 cents (the list goes on)? John, you need to comprehend the significance of what is unfolding along the northern flank of the Stikine Arch. Why do you think Geoscience BC started its Quest Northwest Project in 2011???? This is a legitimate major new discovery area – right now 2 discoveries on trend 9 km apart – and it has a great chance of making a lot of people very rich who catch on to this NOW.
Comment by Jon - BMR — February 16, 2014 @ 5:27 pm
Remember that BMR was just as enthusiastic about cxo last year. Year before, does everyone remember rbw? Going to take a lot more than one good drill hole.
Comment by OldMan — February 16, 2014 @ 5:53 pm
Thanks jon,that was very helpful,and I agree even at this level is still a deal,and to john I have a heathy position at 9.5 so I’m happy where I’m at.good things come to one who waits.
Comment by Tom — February 16, 2014 @ 5:57 pm
As a matter of record, Oldman, we weren’t “just as enthusiastic” about CXO and North ROK last year as we are about the Sheslay Valley – our hundreds of hours of research into the Sheslay Valley starting in May/June of last year demonstrates that. North ROK gave plenty of reasons for enthusiasm in the early going, but we were the first to point out that the Sheslay Valley likely had greater potential and was really the area that could emerge as the big winner in northwest B.C. Even before Prosper started drilling the Star target last year, the Sheslay Project based on historical data was more advanced than North ROK. The scale of things is so much more expansive in the Sheslay Valley, from Prosper’s project to the Hat to the Grizzly and beyond. North ROK still has potential, but beginning last June we put ALL of our research efforts into the Sheslay Valley (before it was on anyone’s radar screens), not North ROK, and we’re very happy we went in that direction. And what do you mean by one good drill hole? There are TWENTY-NINE very good drill holes at the Star (an amazing consistency not seen at North ROK), and now DBV hits two very good drill holes 9 km away at the Hat. If you know how to calculate potential tonnage, Oldman, you’ll see that by connecting the Star with just the North Star, Prosper could be looking at something in the neighborhood of 1 billion tonnes. The Star and North Star are 2 of 4 porphyry targets over a 12 sq. km area. Pyrrhotite Creek appears to be a distinct, multiple target system 4.5 km to the southwest of the Star and part of a parallel trend that cuts for many km through the Grizzly. You start adding all this up – several potential deposits at the Sheslay, the Hat and the Grizzly – and what you have is something that is truly world class with economies of scale. Of course drilling will have to prove this up but “all the earmarks” are there. Someone else pointed out that this resembles how Highland Valley in central B.C. started – 3 large deposits on 3 separate properties, all now served by one mill complex. Highland Valley has robust economics and has been producing for 40 years at average Cu grades of around 0.25% – 0.30% and some Mo. No gold.
Comment by Jon - BMR — February 16, 2014 @ 6:08 pm
Old man,yes I remember rbw very clearly,I was there,but this is much different,with 5 company’s and maybe more all in the same area wanting a piece of the pie doesn’t make your head turn, don’t know what would.i’ve made rbw a distant memory (for now)and moving on.
Comment by Tom — February 16, 2014 @ 6:50 pm
noticed dec and mtb finally trading some volume, do you think they will be working on their bc play soon
Comment by dave — February 16, 2014 @ 6:58 pm
Tom, some of the best geologists and geophysicists in the business are working on this “Sheslay Valley Project”, including by the way Teck Resources Ltd., and of course Dirk Tempelman-Kluit was instrumental in getting the ball rolling. Keep in mind, Dirk is coming off one of the biggest Gold discoveries in Canadian history west of Ontario (Blackwater). He is a geological genuis, and not only that but a true gentleman with a spirit of humility. Ask yourself this, everyone – why did Dirk choose this area ahead of 150 other properties around the world after some exhaustive due diligence? My money is on Dirk and Pete. My money is on Farshad who has shown incredible tenacity, courage and faith in his property. My money is on the Garibaldi group that is exceptional in many ways and has assembled the largest land package with targets that have been identified since 2006 and are about to be drilled. This area’s time has arrived, plain and simple.
Comment by Jon - BMR — February 16, 2014 @ 7:04 pm
Very well said jon,this most certainly will be in the comming weeks and months the storey of the year,here’s your chance folks,think hard and grab it if you can,I have a cousin that’s a geo,(east coast)and he just jumped in the boat.his words, this will be a nice ride.good luck folks.
Comment by Tom — February 16, 2014 @ 7:35 pm
11:30 p.m. Nfld time Gold up $8.50, Copper just shy of 0.29..
I appreciate Jon being enthusiastic & hopefully it’s catching,
but we do need the co-operation of the market. He has made it
clear that he believes in the Sheslay area & no doubt, knows a
lot more about the area than most or all of us. It also appears
his enthusiasm is increasing, as the market seems to be rebounding,
which makes a difference & no doubt, could allow him to state later,
i told you so.. He may have also been enthusiastic during the RBW
days, but the market struggled & the fear factor took over & we know
the rest . If the market continues to improve, that’s one stock that
i see bouncing back.
As for being a right time to buy a stock, that’s open for argument.
Take GGI for example, i sold half my position for a double, but who
can say that i sold at the right time. I keep going back to ATC,
which i sold at $4.00 plus & made a bundle. I found myself on cloud
9, but would you believe the stock, after a pause, continued on to
over $10.00 & who may i ask, can say that, whoever bought my shares,
didn’t do better than me.
Comment by Bert — February 16, 2014 @ 7:57 pm
Probably should be noted though that a company like Ggi is already sitting with a market cap if 13 million whilst companies with impressive 43101 resources are well under that. Plus I woukd say only the companies with drilling in the near future should be considered as at the end of the day it’s drill results only basically that will move a stock.
Comment by John — February 17, 2014 @ 4:37 am
John, you need to do your homework. GGI is drilling. They’re also in a production situation in Mexico, earning royalty income on a pilot coal program that has the potential to be ramped up significantly. They’re also in a strong working capital position with $3+ million. No company in the Sheslay area actually is in a stronger financial position than GGI, except Teck of course. You have to pay attention to share structure. This is a company that hasn’t had to do a financing in 5 years. No warrant overhang, no cheap PP shares at a nickel or a dime to come into the market. 20% held by management and 20% held by Sprott. I don’t think it gets much better. When this starts to run, it’ll keep running because the share structure won’t hold it back, and B.C. and Mexico will keep adding fuel to the fire. And by the way, they have a legacy asset in the form of a rare dimensional stone quarry deposit in B.C. that could come into play as well.
Comment by Jon - BMR — February 17, 2014 @ 7:04 am
I know Ggi is drilling. I’m just talking about all the players jumping on board the sheslay play.
Comment by John — February 17, 2014 @ 7:08 am
John
If i may, i would suggest, it’s not always what they have, but how
they use it. Regarding GGI, it’s been a long while since i have seen
so much promotion, they have 5/6 newsletter writers covering them &
then there’s their webinars. For this very reason i bought in, in the
beginning. All this tells me, they have the interest of their shareholders
in mind. Some companies out there, are only heard from, when they want
your vote submitted before the start of their AGM. I will go with the
company, who are willing to ensure, we keep following their story as we
move along. Have a good day. R !
Comment by Bert — February 17, 2014 @ 7:48 am
John, share prices will ramp up well in advance of drilling. And they’ll ramp up again as drilling starts and intensifies in the Sheslay Valley. Temperatures went up to +3 in the area yesterday. A general warming trend is settling in over the last half of February, and into early March, which may give DBV the window it would need in March to re-start drilling. Now, if you study DBV’s holes, and I’ve spoken to several geologists about this, they’ve “boxed in” a highly interesting area that gives them an excellent shot right off the bat of hitting a “sweet zone” parallel to hole #11, at depth, perhaps by attacking this from the south. Of course there are never any guarantees in this business, but those who should know can’t see how they could miss. One more hole even better than #11 or #8 would send DBV skyward and start to draw in the masses. Keep in mind that news from both GGI and PGX is pending on different types of work completed last year at their respective properties. Who knows what they may have to report, but knowing how prolific the whole area is, I’m counting on some very positive new information from both companies in advance of their drilling which will help immensely to connect the dots.
Bert brought up a very good point—–coverage of GGI and the other players, the whole Sheslay Valley, is starting to broaden, and I see a “Perfect Storm” scenario brewing in the months ahead when some of the heaviest hitters in the newsletter space, plus powerful brokers, are brought up to the Sheslay Valley to see what’s unfolding. Seen from the air and the ground, the outcropping is amazing——-the visual “stimulation” if you want to call it that is really quite incredible, from what’s at surface over certain parts of the Sheslay Valley, and when it’s backed up with good drill holes, watch out. When the video cameras start rolling, and reports start coming back from this area, that’s when you’ll see this whole play really, really ignite. As far as the geologists go, their job is to pinpoint the right targets and produce the kind of drill results that can lead to 43-101 deposits. Everyone should have absolute confidence that the geos (and geophysicists) involved in this whole play are exceptional. At the end of the day it’s all about finding new deposits, about turning the Sheslay Valley into B.C.’s newest world class mining camp.
Comment by Jon - BMR — February 17, 2014 @ 7:54 am
Hi John/Jon, Enjoyed reading your post and can feel the excitement. Wondering what you mean by “lifestyle” companies when you said “Continue to avoid “lifestyle” companies like the plague.” thx!
Comment by laurie — February 17, 2014 @ 8:25 am
Laurie I think what he means are the companies with con management that live off their salaries paid to them from shareholders basically with no intent of ever making any discoveries or increasing shareholder value. They simply operate in circles doing their pps receiving their warrants options etc and every so ofton pump the stock up by numerous different methods, one if which is staking land around whatever area is the hottest but never actually drill etc
Comment by John — February 17, 2014 @ 9:13 am
John not BMR John
you mentioned several companies with 43-101 that have market cap’s less than 13 million, can you list some here or point me to the site where I can find those, that could be a great opportunity if gold continues it rise upward.
thanks
Comment by Greg — February 17, 2014 @ 9:16 am
Jon I am Definetly interested in abr and Ggi both. One if my concerns though woukd be what was Ggi doing the last five years or so? Great they are proactive now but is there not the concern that if they go silent for such long periods of time like the past that history may repeat itself once again after this cools down?
Also what is this teck you just mentioned? What’s the ticker? What’s their story? I’ll research them.
My issue is most of my money is tied up in garbage from this last venture meltdown. Hard to stomach selling now for mere pennies of initial investment and it will be a month or so before I can free up other funds, so I fear I will miss the boat so to speak and it will be too late. I do not like chasing sp
Comment by John — February 17, 2014 @ 9:18 am
Greg. At work now. I’ll post them tonight no problem
Cheers
Comment by John — February 17, 2014 @ 9:25 am
He’s talking about Teck Resources which trades at 25 dollars a share, they are a major that are south of ggi. The majors are watching and talking to DbV, yes DbV I have not heard them approach GGI or PGX.
Comment by Paul — February 17, 2014 @ 9:28 am
Sorry folks, probably I said that GGI was coming out with some news net week. I should have stated an up-date, which to me is news. Of course they would have the stock halted on any assay results’ will be more careful in future. Richard l
Comment by richard l — February 17, 2014 @ 9:32 am
John, with regards to your definition of a lifestyle company, I think you just described VGN’s management? I would say your bang on.
Comment by Chris — February 17, 2014 @ 9:35 am
John, the Teck I mentioned is Teck Resources Ltd., the Big One. They hold the 600 sq. km Eagle Project contiguous to the southern boundary of the Grizzly. 100 km to the south they’re developing Schaft Creek. At the end of the day, if deposits are proven up in the Sheslay Valley, there’s a good chance you’ll see Teck take everyone out and run the show (this of course is what happened at Highland Valley). As per Dirk’s presentation in Vancouver last November, at the Geological Survey Discovery Centre, the grades seen at Prosper’s Sheslay Project to this point exceed those at Schaft Creek. There are also some access issues that favor the Sheslay Valley due to topography and the old Golden Bear mine road that traverses through the area, and of course there’s an airstrip on Prosper’s ground. Running an extension to the Northwest Transmission Line from the Red Chris area to the Sheslay Valley wouldn’t be a problem. Why the Doubleview discovery is so important is that it reinforces the belief that there are multiple deposits in the Sheslay Valley area, a game-changer in terms of potential economics of this whole project. One deposit by itself (depending on how big it is and the grades) is nice, but if you have 3 substantial deposits that can all be served by one mill complex, that’s a game-changer. So that’s why this is looking so promising – economies of scale, in an area that has been opened up by the Northwest Transmission Line. Scale is critical and the Sheslay Valley has that. An area covering about 600 sq. km – from the Grizzly and the Sheslay in the north to the Hat to the upper half of Teck’s Eagle Project in the south – is looking exceedingly prospective with similar geological, geophysical and geochemical signatures. That explains the staking rush.
Comment by Jon - BMR — February 17, 2014 @ 9:37 am
Bert, you mentioned 5 or 6 newsletter writers covering the Sheslay. I was only aware of 2..BMR and Junior Gold Report Could you list the others that you are aware of. TIA!!
Comment by Greg J. — February 17, 2014 @ 10:02 am
Thanks Jon. But could you comment on my concerns with Ggi that I mentioned? Also do you not think a month from now it could be very possible that one would be chasing these stocks?
Comment by John — February 17, 2014 @ 10:06 am
I believe I addressed all the points you brought up, John. If I missed something, let me know.
Comment by Jon - BMR — February 17, 2014 @ 10:15 am
Greg j
I was more specific than that, i stated they were covering GGI. You may not
consider Agoracom as a Newletter writer, but they cover GGI just the same.
BMR
Agoracom
Marketwatch
Junior Gold Report
Pinnacle Digest
I am on the mailing list of a person, who has hundreds of contacts,
he is very positive on GGI, but i am reluctant to give out his name
without permission. He phones me once in awhile & i will inquire.
You notice i stated 5 or 6, he is the “or 6” …
Comment by Bert — February 17, 2014 @ 11:30 am
From the Gold report
Interview with “Mexico Mike” Kachanovsky
There are two companies that have seen a nice rebound in the last month. Garibaldi Resources Corp. (GGI:TSX.V) has a core group of holdings in Mexico that the company is currently drilling in proximity to large-scale mines in Mexico. Any drill-bit success that it accomplishes could become a very attractive takeover target. Garibaldi is unique in that earlier in the cycle it did just that. It found a large gold and silver deposit, which it successfully vended to another company, making a lot of money for its shareholders. The company has done a very good job of managing its cash position.
Garibaldi also has an asset in British Columbia that I originally wondered why it even bothered to keep when Mexico was doing so well for it. However, this part of British Columbia has recently become more active, with two other companies at the limits of the property. Speculation is coming into the stock on the basis of “closeology”—that there may be a significant discovery next to its Grizzly property in British Columbia that could suddenly be a much more attractive asset for a transaction. Garibaldi’s share price has more than doubled in just a few weeks based on that speculation.
Comment by Bert — February 17, 2014 @ 12:01 pm
Bert…really appreciate the reply!! Have you ever noticed Junior Gold Reports monthly writeup on GMZ, GGI etc.seems to have a lot of BMR content??, maybe my imagination, if so, my apologies to the JGR.
Comment by Greg J. — February 17, 2014 @ 12:20 pm
Greg J,
I noticed that too…
Comment by Greg — February 17, 2014 @ 12:39 pm
Copper
Warehouse stock level.
kitcometals.com/charts/copper_historical_large.html#60days
Is this bullish to you guys?
Comment by Peyman — February 17, 2014 @ 12:45 pm
We don’t mind, Greg, if others might pick up on some of our ideas, if that’s the case. It happens all through the industry, and we’ll certainly see it with the Sheslay Valley as things play out. That’s a good thing. We wish we would have picked up on the Enterprise Group which has done very well for JGR.
Comment by Jon - BMR — February 17, 2014 @ 12:56 pm
Copper is looking very strong in a lot of ways, Peyman, and we’ll have John provide an updated Copper chart later this week.
Comment by Jon - BMR — February 17, 2014 @ 12:59 pm
Post # 50
Yayyyyyyyyyyyyyy !
Comment by Bert5 — February 17, 2014 @ 1:04 pm
Bert, you should win a prize for that!
Comment by Jon - BMR — February 17, 2014 @ 1:11 pm
A prize is not necessary, but i really wanted to see 50 posts
for a given commentary. Our next goal will be 60.
Comment by Bert — February 17, 2014 @ 1:28 pm
….Gotta admit…. Bert sure is one interesting “dude” !!
Comment by Greg J. — February 17, 2014 @ 2:21 pm
Jon
JGR also had a write up on GMZ as well… sure would like to see GMZ make a move soon, so I can take that and roll it over into more of the Sheslay plays.
Comment by Greg — February 17, 2014 @ 3:23 pm
I think patience is still the key with GMZ, Greg. They’ve made some progress recently which is positive; their next news will be important to see how they follow through on these developments. They need to show they can take this to the next level.
Comment by Jon - BMR — February 17, 2014 @ 3:41 pm
Bert is the best.. he is not afraid of sharing..:) and having this many posts to read may be indicative of the sentiment returning… it has been a hellish road trip…
I bought 100K of stock in Dec 2008… I checked the value of thos same stocks in July of 2008…
the value then was … ready…????
1.3 million….. and I thought it would never… couldnt ever happen again… I was so wrong…
continue to be diligent..
thx BMR for the investment leads… not your fault that some are duds.
Comment by Jeremy — February 17, 2014 @ 3:44 pm
Greg
What i would do, that is, if i lost faith in GMZ & had faith in a
Sheslay play, at the same price, i would sell one for the other. It
would be a gamble, but life itself is a gamble, here today, gone
tomorrow. Anyway, back to changing stocks, if you are Canadian & you
are looking at a loss in GMC, may i remind you that you can use your
loss against any of your gains. So easy to plan another person’s moves. R !
Disclaimer – I will not be responsible, if anyone happens to be
fooled into following any plan of mine.
Comment by Bert — February 17, 2014 @ 3:57 pm
Bert,
no one to blame but myself, back when I got into RBW I sold Cadillac mining at a loss to use those proceeds to purchase RBW, it was like 1-2 days later Cadillac comes out with news and the stock runs back up to where I had bought it and then some, I keep thinking GMZ or RBW will do the same as soon as I sell it, lol, so I just keep holding those and keep trying to hide money from my wife to put into the Sheslay plays, I will go broke proving to her that I can make some money in this game….
Comment by Greg — February 17, 2014 @ 4:20 pm
Greg
I know your feeling, i have often sold & bought a stock at the same
price, only to watch the one i sold move up. I have one thing in my
favor, that is a bad memory & that helps me forget about the ones i
sold. Getting back to the Sheslay, there’s nothing guaranteed there,
nature has a way of producing many illusions, but i am optimistic that
the continued promotion in itself, will fatten my wallet. R !
Comment by Bert — February 17, 2014 @ 5:06 pm
Post # 60
Yeyyyyyyyyy
The next goal has to be 70
Comment by Bert — February 17, 2014 @ 5:07 pm
Jon. This was my Ggi concern I mentioned that I don’t think you commented on. As well you never really touched on my concern about not having free funds for a month and not wanting to chase anything so I may be too late.
Jon I am Definetly interested in abr and Ggi both. One if my concerns though woukd be what was Ggi doing the last five years or so? Great they are proactive now but is there not the concern that if they go silent for such long periods of time like the past that history may repeat itself once again after this cools down?
Comment by John — February 17, 2014 @ 5:37 pm
@ Greg.
Gbb
Abi
Eag
I read somewhere but I forget where that gbb is host to something like the 150th largest gold deposit in the world. Not sure if that is true. Problem is horrible management. Proper manager and gbb could be producing and trading over a buck
Eag keeps consistently increasing resource and drilling amazing holes yet sp doesn’t react. Not sure why
Abi producing now and again sp not reacting. Not sure why
Oh and eag market cap is a bit higher than I thought
Comment by John — February 17, 2014 @ 5:43 pm
John, the one thing that really stood out at me when I did my DD on GGI last summer was how they managed to keep their feet moving throughout this whole bear market that started in 2011. They continued to work on the Grizzly to advance their understanding of it; they continued to work systematically in Mexico on their three district-scale projects in terms of pinpointing the best targets and prioritizing areas of interest, with drilling at Tonichi and the commencement of a pilot coal program there; and they scooped up a small but potentially very valuable gold property (La Patilla) at the peak of the bear market in the second quarter of last year and immediately went to work on it. Regoci was convinced last year that the market was about to turn and he wanted to be in a position to take full advantage of that, so he got even more aggressive with everything at a time when most companies were running for cover and burying their heads in the sand. They realize they have an historic opportunity in terms of the Grizzly, which they had been working on quietly for several years but of course now they’re starting to make some noise and that noise level I’m sure is going to ramp up steadily. So is there a risk of GGI going “silent” for some strange reason? Not at all. They’ve always been busy on the ground, they just weren’t always aggressive in communicating that to investors. Obviously that has changed now, in part due to the new market environment we’re in, and in part due to developments in the Sheslay Valley. It’s important to keep in mind, also, that the Sheslay Valley play is not going to “cool down” anytime soon——in fact, if this is indeed the discovery of a whole new mining camp in B.C., this play will carry on for the next several years or until a major steps in and takes everyone out – in either case, we’re all winners.
Comment by Jon - BMR — February 17, 2014 @ 6:02 pm
Jon
don’t you think now that Prosper and DBV have both hit mineralization, that GGI has an advantage?
Comment by Greg — February 17, 2014 @ 6:18 pm
John
I realize your question wasn’t directed my way, but i would like
to give my view. I am not at all concerned what took place 5 years
ago, instead i feel comfortable that they came through the
recent downturn, with a bundle of cash & properties, that may be
a game changer… I am not holding on to my shares, expecting them
to become a mining company, instead will continue to follow them
on a daily basis, with one eye on what they are doing & the other
on the sell button. For now it’s all about speculation & would you
believe, the market loves & pays well for speculation. Good night ! R !
Comment by Bert — February 17, 2014 @ 6:48 pm
WOW GUYS! 65TH POST IS HERE….couldn’t believe it when i saw it…..it sounds like alot of people finally returning back to business….perfect timing as Spring is the best time for the Venture usually!…..looking forward to a great week as gold/silver/copper all doing well…..
Comment by STEVEN1 — February 17, 2014 @ 6:52 pm
You bring up an interesting point, Greg. There’s a huge advantage for GGI in being the third one to drill because they’re already seeing drill results from PGX and DBV and they’re able to compare those results to important geophysical and geochemical data from those properties. This should greatly enhance GGI’s ability to pinpoint the very best locations to drill on the Grizzly – very cost-effective, and this also increases the odds of early drilling success. Keep in mind, there was a survey flown a number of years ago that covered half of the Sheslay Property and a good chunk of the Grizzly and this data is in the hands of both Prosper and Garibaldi.
Comment by Jon - BMR — February 17, 2014 @ 6:56 pm
Jon
question on where GGI plans on drilling, when I look at the map of all of the land holders and see where prosper hit and DBV hit they seem to be lined up and it appears that ABR would be right in line and then the new piece that GGI just acquired, what I don’t understand is where GGI says the targets are from grizzly west to grizzly central, that looks like an entire different trend line, not the same line as Prosper and DBv, hope this makes sense and forgive my ignorance?
thanks
Comment by Greg — February 17, 2014 @ 8:04 pm
Greg Were you going to post some speculative small cap pics? TIA!!
Comment by Greg J. — February 17, 2014 @ 8:37 pm
Greg- disregard, i missed post# 62 from John
Comment by Greg J. — February 17, 2014 @ 8:47 pm
Good question, Greg. What you have in the Sheslay Valley is a series of NW/SE parallel trends, a typical northwest B.C. pattern, and it appears these trends run from the northern flank (ground held by GGI and PGX) all the way down to Teck’s Eagle Project where surface sampling has shown very encouraging results over the upper half, or even upper two-thirds, of that property. We produced a map that gives our readers a basic illustration of these trends.
Two key points: Prosper has already stated that Pyrrhotite Creek appears to be a distinct, multiple target system 4.5 km to the southwest of the Star target (the Star is one of 4 porphyry bodies clustered within a 12 sq. km area on the Sheslay). Pyrrhotite Creek fits within a NW/SE parallel trend on the Grizzly extending from Grizzly West to Grizzly Central (and perhaps beyond, considering that GGI has staked more ground). Historical reports, and the information provided by GGI Sept. 30, show some amazing similarities in soil and geophysical anomalies, alteration, mineralization, rock types, etc., between Pyrrhotite Creek and the immediate adjoining Grizzly ground. Investors really need to pay close attention to the Pyrrhotite Creek area, and the attached Grizzly ground, because it has all the signatures of being a major discovery by itself – we’ll get more into that in the coming weeks. There are also elevated Mo values in the soils at Pyrrhotite Creek and that makes it different from what’s seen elsewhere.
To the southeast of Pyrrhotite Creek is Grizzly Central which has some VERY interesting features (including a pipe-like structure) based on work completed by GGI soon after it first acquired the Grizzly. Due to faulting and other factors, one school of thought – and this comes from geologists not connected with GGI – is that Grizzly Central could actually be some sort of “feeder zone” and should be tested to depths of at least 600 meters or more. Somewhere in the Sheslay Valley could be really nice high-grade at depth – Grizzly Central is definitely a potential location for that.
Garibaldi has no problem in terms of identifiying prospective drill targets at the Grizzly – they are all over. The challenge for GGI is where do they drill FIRST. Personally, I think they should go after Grizzly Central which is really in the heart of the Sheslay Valley and right on trend with Pyrrhotite Creek. But GGI has some very capable geos (including the highly respected Charlie Greig who has done a lot of work on Pretium’s Project) who can figure this all out. Again this goes back to your previous question – GGI has a big advantage in being the third one to drill as they’re able to view a lot of data and compare that to actual drill results on the Sheslay and on the Hat.
Comment by Jon - BMR — February 17, 2014 @ 8:48 pm
Thanks Jon
Comment by Greg — February 17, 2014 @ 9:25 pm
Hope ggi goes up in price in one day just like the comments you got Jon . Wouldn’t that be a treat. Lol.
Comment by Tom — February 17, 2014 @ 11:55 pm
Tom, I suspect the Sheslay play will be strong this week but this is not about 1 day or 1 week, it’s about a whole year of development on that front, and it’s going to be very exciting to see things unfold and how a new mining camp potentially can come into fruition in this part of the province. And the market could use a huge success story like this.
Having said, bullish flags have formed in both GGI and DBV, so today and tomorrow should be interesting. Keep an eye also on AIX – could be a delayed reaction to Friday’s news. They are trying to elbow their way into the area and have established a foothold in the southern part next to Teck/southeast of GGI.
Comment by Jon - BMR — February 18, 2014 @ 3:51 am
Good morning ! The records will show how positive i was on GGI, when it was
trading at 0.11, now i am thinking, why is the market willing to continue
buying PGX at around 0.45 ? or why is the market not willing to sell below
that price ? It tells me that the market is thinking that PGX is the dominant
player in the Sheslay area & leads me to question why, is the market paying
for their initial discovery, is it their potential, or is it the team leading
Prosper. Whatever, they are trading twice the price of other plays, which must
tell us something. R !
Comment by Bert — February 18, 2014 @ 4:58 am
Remember this, there always seems to be resistance at
even amounts. For example, the Venture stands at 996.35,
and i feel it will have resistance at 1000.00. If it trades
through 1000.00, it’s powerful indeed, but i remain sceptical,
that it will succeed on the first attempt. R !
Comment by Bert — February 18, 2014 @ 6:16 am
Guys and gals… the market cap for ggi, dbv, and pgx as well as rg are all around 10 mill….
great share structures for all…. 10 mill….. John/Jon .. if we went back to other juniors would we find that dollar market cap lines in the sand are defined for exploratory progress???
Comment by Jeremy — February 18, 2014 @ 6:39 am