TSX Venture Exchange and Gold
Note to readers: U.S. stock markets are closed Monday for President’s Day. Canadian markets are closed due to Family Day in most of the country including Ontario (B.C., for some odd reason, celebrates Family Day a week earlier). Regular Morning Musings resumes Tuesday.
The Venture continued to move forward last week, albeit at a snail’s pace as the Index posted just a 4-point gain to close at 697. The underlying tone with the Venture has been generally bullish since the 637 all-time low in December but this market is advancing slowly and with hesitation – a whopper of a hole, a discovery somewhere – especially in Canada – is just what the Index needs in order to gain momentum and accelerate to the upside. There’s nothing like a major success story to suddenly wake up the junior resource market and literally turn it around overnight. Just 1 possibility is the next 120 meters of Hole 23 at the Hat Project in the Sheslay District. From diamonds to Gold to Silver, other discovery opportunities exist as well, not just in Canada of course but in other friendly jurisdictions.
Venture 2-Month Daily Chart
Strong support is 680, resistance is 707 (chart and Fib.). Based on increasing increasing buy pressure (CMF) and RSI(14) momentum, it’s reasonable to expect the Venture to challenge that resistance near-term, probably in the week ahead. The trend is bullish at the moment and the 20-day moving average (SMA) has been on the rise since the beginning of the month.
As we’ll show in a chart Tuesday, there’s an extremely high correlation at the moment between the Venture and Crude Oil (more so than between the Venture and Gold). So it’s important to keep that in mind. The longer Oil can stabilize and remain above $50 a barrel, the Venture’s chances of a breakout improve. Another plunge in Oil would hurt the Index, though money would probably flow into certain Gold plays.
Venture 6-Month Daily Chart
The Venture’s 6-month chart shows 2 important developments:
1. A confirmed breakout above the 50-day SMA (this moving average is currently at 680 – Venture support – and is beginning to flatten out. It needs to reverse higher for the Index to gain traction);
2. A confirmed breakout (during the second half of January) above the downtrend line in place since September.
Bollinger Band Width remains low, which reflects how the Venture is like a very slow moving train right now. But at least the train has left the station and at some point should start to pick up speed.
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 carry out exploration or 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 eventually create a supply problem and therefore great opportunities in Gold and quality Gold stocks. 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.
Gold
Last week we indicated how Gold would probably test somewhat lower levels near-term due to some bearish chart signals, and indeed bullion fell to its 100-day SMA and Fib. support just below $1,220 before recovering modestly to close the week down slightly at $1,228.
This 6-month daily chart looks more favorable now and it’s possible, though not certain, that Fib. support at $1,216 may hold. Very strong support, of course, exists at $1,200 and could be tested. Our interpretation of Gold’s action since the January high of $1,308 is that bullion has been going through a healthy and normal consolidation after a near 20% run-up from its early November low. Interestingly, the U.S. Dollar Index is also in a consolidation pattern at the moment. Both have been moving in tandem the last few months which goes against the historical norm. The next sharp jump in the Dollar Index (it’s in a powerful primary bull market) could also be accompanied by another move higher in bullion. Gold and the greenback are the 2 strongest currencies in the world.
Silver encouragingly climbed back above $17 an ounce, gaining 64 cents to finish at $17.21 (updated Silver charts Tuesday). Copper added 6 cents to close at $2.61. Crude Oil rallied for the third straight week, gaining $1.09 a barrel to finish at $52.78. The U.S. Dollar Index, despite Friday’s surge, was down half a point for the week at 94.19.
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 and will continue to support prices. Despite Gold’s largest annual drop in three decades in 2013, the fundamental long-term case for the metal remains solidly intact based on the following factors:
- Growing geopolitical tensions, fueled in part by the ISIS and al Qaeda, and a highly dangerous and expansionist Russia under Vladimir Putin, have put world security in the most precarious state since World War II;
- Weak leadership in the United States and Europe is emboldening enemies of the West;
- Currency instability and an overall lack of confidence in fiat currencies;
- Historically low interest rates;
- Continued strong accumulation of Gold by China which intends to back up its currency with bullion;
- Massive government debt from the United States to Europe – a “day of reckoning” will come;
- Continued net buying of Gold by central banks around the world;
- Mine closings, a sharp reduction in exploration and a lack of major new discoveries – this these factors should contribute to a noticeable tightening of supply over the next couple of years.
BMR – The longer Oil can stabilize and remain above $50 a barrel, the Venture’s chances of a breakout improve.
Bert – Finally an admission & it goes on & on. Then there’s Greece,
then there’s Ukraine, then there’s Russia, then there’s Ottawa,
then there’s Halifax, then there’s Terrorism here & there,
watch how it all has a negative bearing on the Venture. I am
not making it up, i am not enjoying it, it’s been there for the
past 4 years or so, and no doubt, it may continue. The Venture
is the weakest link & the weakest link is always the first to
bend, the first to break. There will be a scattered winner, but
then we compete against the insiders, the lenders, the so called
experts and yes, machines. I watched how some turned down 0.77
for BLO recently & in some cases, a 100 % profit, well ! Good
Luck & i mean it, but this being a chart oriented site, i am
surprised that anyone could turn a blind eye to charts, showing
screaming sell signals on BLO. What an ideal time to sell at, or
near the high & buy back at, or near the low, time would have been
on your side… I don’t have a position in GGB., because i refuse
to participate in a stock with over 300 million shares o/s &
to get to a mine, they may have to add millions upon millions
more, to move forward & contrary to what the company may say now,
the lenders will have the final say, which may prompt them to
consolidate. Some thought that couldn’t happen to RBW, remember
the rock, the CEO so proudly displayed & the deep pockets from
the Calgary Flames & then there was the glowing road trip & the
glowing site trip. I could go on & on, but i realize some may
not appreciate the way i write, to them i state, i am sorry !
As always, i try to express my true feelings. Have a good week.
Comment by Bert — February 15, 2015 @ 11:17 am
FYI
Cannabix Technologies Inc., A Pinnacle Featured Company
Comment by Bert — February 15, 2015 @ 1:28 pm
Thanks Bert. I agree with you.
Comment by Theodore — February 16, 2015 @ 6:28 am
Jon
This was asked on another board re: BLO any idea.
I invested in BLO a month ago since I saw a great opportunity and have looked further into the company. I saw on Sedar that the company is hosting an annual meeting on Feb 17th (tomorrow at 11AM) to do several things such as appointing new board of directors and also talking about splitting one of their subcompanies called “Torino” into its own seperate entity to focus the companies’ different fields more specifically. It said in one of the news letters I was reading that the shares of the company would get divided to current share holders. What I am assusing is that I would be receiving shares of the company when they split, but am not exactly sure how this works and was wondering if anyone with more information or a better understanding could explain this better to me?
Thank you
Comment by Greg — February 16, 2015 @ 9:18 am
Jon, I nkow Greg wants an answer to his question above me and I am sure you will answer mine somewhat. Another words a lot going on and many people wanting answers. I wanted to answer your post from Friday. NO, YOU ARE NOT WRONG. WRR has an excellent chance and probably will hit very high grade in thier first drill hole and the majority of them for that matter. I know we have DBV and BLO going on and in play and its turning busy again. Mark my words – WRR at .03 to .05 is going to look like highway robbery. I told you that I will try the best I know how to explain the geology of why.
Even though I understand the picture this Geologist gave me, I can only try in words. Probably all of you know or heard of the San Andreas fault in California. The interest here is the other faults that run of the Andrea. As many know, most of the powerfull earthquakes run off the Andrea Fault. The eastern plate (one closest to Nevada) is slanted downward toward Nevada. There are 6 other faults that feed off of the Andreas. these are the: Hayward, Calavetras, Garlock, And the Owens Valley fault. He brought up the term “induced shock movement” to me and I explained to him I was familiar with induced damage on a car (I’m retired cop here). He explained over thousands of years everytime there is an earthquake, the bedrock would break up and the gold would travel through these bedrock faults and stabalize into the shear quartz zones in western Nevada. Imagine dropping a thick liquid on the ground like paint. It spreads outward and then finally comes to a stop when it meets resistance. There is a fault in the Toiyabe National Forrest in Nevada and this plate slants toward California. It on the other hand forces the movement of the gold to come to that stop as it meets resistance and thus you have massive pockets of shear zones loaded with solid gold.
As I said earlier. The mine that was sold last week just to the east of WRR was getting 54 ounces to the ton (and that was with pick and shovel in the 1910 year. The built a ghost town and a processing mill right on that claim. Now, you don’t build a town and a processing mill on a 40 acre claim in 1910 unless your pulling out the GOLD.
At .05 or under, WRR is a steal. My post is in no way to take away from the excitement on DBV and BLO. d4, i agree with you on DBV and appreciate all the dd you said that you have done and posted and I am going to be buying some DBV this week. But I am telling ya, WRR is the slepper thats going to ignite fire shortly. Coming from the company they should be drilling in March. Oh, if you read the SH boards, there is one basher on it already. Trust me, he wants to scare you out in hopes of getting his shares at .03. there ya go Jon.
Comment by dave — February 16, 2015 @ 12:26 pm
Sorry, I said there were 6 faults in my post above but only gave the important ones. The other couple not important.
Comment by dave — February 16, 2015 @ 12:37 pm
Thanks, Dave, that’s valuable info and I agree with you wholeheartedly. WRR is going to fly. Initially on the speculation alone; then on the very good possibility of a hit. Should run to its previous high (about 20c) and then explode if they pull some high-grade. This reminds me a lot of how VGD came together recently, though in this case I think WRR has a greater chance of an initial hit. We’ll be following it closely and Tom Shuster’s endorsement is good enough for me.
Comment by Jon - BMR — February 16, 2015 @ 1:20 pm
Dave…I own some WRR and took a starter position. I appreciate your information/experience in the region. I plan on adding once we know they have money and will in fact be drilling. I am the guy that stuck up for BMR being slammed on SH the other day saying to stay away from anything BMR recommends (alias goldbull636 on SH).
Comment by d4 — February 16, 2015 @ 1:22 pm
Thanks, d4, we have thick skin and it’s a badge of honor to be slammed by that alias (or others) on SH. Too many exciting things happening in the markets to pay attention to that garbage.
Comment by Jon - BMR — February 16, 2015 @ 1:47 pm
The bashers on the DBV SH board got so annoying that valuable posters stopped reading and posting so I started a private DBV board and now we can share ideas/info without disruption. In the last 15 years or so reading forums I have learned that its usually a good sign when a good quality junior has a bunch of bashers appear…..lol.
Comment by d4 — February 16, 2015 @ 2:02 pm
Speaking of bashers check out the NES board sometime on SH, it is relentless and has been for a while, used to be a great board with really good info, now its a piece of ….. sad very sad…
Comment by Greg — February 16, 2015 @ 2:15 pm
Jon
if you get a second I would like your thoughts on that question above regarding BLO…
thanks
Comment by Greg — February 16, 2015 @ 2:16 pm
Greg, they’re spinning out the gold property, so it’s like a dividend. We’ll learn more shortly after the AGM. The way I calculated it earlier, for about every 6 shares of BLO held, 1 share in newco. 8 million shares of the newco to be distributed to BLO shareholders. Won’t amount to a lot but every little bit helps.
Comment by Jon - BMR — February 16, 2015 @ 2:26 pm
Jon- how is the DBV update going? With the new recent info it must be getting longer and longer….lol.
When will you be putting releasing the update and the interview?
Thanks
Comment by d4 — February 16, 2015 @ 2:51 pm
d4, every time we get close, something new pops up on this project. We’ll have something tomorrow and more as the week progresses. I’d also like to do an interview with Dr. Razique. We’ll see how the week unfolds.
Comment by Jon - BMR — February 16, 2015 @ 3:03 pm
There will always be new info to add…..when their aggressive drill program starts you won’t be able to keep up….lol.
An interview with Dr Razique would be great! It would be nice to hear from him exactly why he joined the team even though I can guess why.
Comment by d4 — February 16, 2015 @ 3:14 pm
Thanks Jon
Comment by Greg — February 16, 2015 @ 4:51 pm
d4 – sometimes its a good sign when you see bashers, yes.
The one guy that was bashing WRR is doing it to scare some into selling. It is a tactic that works with weak hands. The other is a guy who followed BMR and held stock in 2 companies that did not work out, so he looks at BMR as a pump and dump. But as you know, many of Jon’s went up before they went down. You have to take it with a grain of salt. We invest through our dd and what we feel to has the greatest chance. I am normally a swing trader, but in the case of WRR, I am in at the bottom (under .05) and I realize a 5 bagger is not out of the question and very probable. When you see someone bashing the stock you are in, you have to look at the info and ask yourself if its a legitimate concern the poster is raising or is it just someone running thier mouth. Its good you backed Jon.
Comment by dave — February 16, 2015 @ 6:44 pm
Doubleview Adds Dr. Razique to Technical Team
Feb 17, 2015
Doubleview Capital Corp. (TSX.V, DBV) (the “Company”)
is pleased to announce that as it continues to advance its Hat Gold-Copper Porphyry Project in the Sheslay district of northwest British Columbia, the Company has further strengthened its technical team with the addition of Mr. Abdul Razique, Ph.D., as its first full-time geoscientist.
Dr. Razique, who has extensive global experience in the exploration and discovery of large, world-class porphyry deposits, has spent the last 18 months evaluating projects in British Columbia, Quebec and the United States on behalf of a major mining and exploration company and its joint venture partners.
“Dr. Razique’s experience and unique understanding of porphyry systems will be invaluable in taking the Hat Project to the next level at this important juncture given the success of hole H-23 which builds on the entire program to date,” stated Mr. Pat McAndless, Doubleview’s senior technical adviser. “I know Dr. Razique well and I’m delighted that Doubleview has been able to secure his services.”
Among his many accomplishments in the field over the last two decades, Dr. Razique as a project geologist was responsible for a wide range of exploration programs as well as resource modeling (between 2003 and 2008) for what became one of the world’s largest copper-gold porphyry deposits (Reko Diq) in western Pakistan. Dr. Razique’s Ph.D.
research project at the University of British Columbia,
Mineral Deposit Research Unit
(MDRU), was focused on the geology and evolution of the Reko Diq porphyry Cu-Au (Mo) deposits and his conclusions have been published in leading technical journals.
Mr. Farshad Shirvani, Doubleview President and CEO, stated: “We welcome Dr. Razique to our team with great excitement and anticipation. As H-23 demonstrates, we are now drilling into the highest grades yet at the Hat Project and the Lisle Zone continues to expand. Dr. Razique is already focusing on a much bigger picture including the pursuit of a high-grade core area and the potential of the Lisle Zone, already measuring 1 km by 500 meters, to merge with several nearby target areas to form a world class gold-rich porphyry copper deposit in the under-explored Sheslay district.”
About Doubleview Capital Corp.
Doubleview Capital Corp., a mineral resource exploration and development company, is based in Vancouver, British Columbia, Canada and is publicly traded on the TSX-Venture Exchange [TSX-V:
DBV
], [OTC:
DBLVF
], [FSE:
1D4
]. Doubleview identifies, acquires and finances precious and base metal exploration projects in North America, particularly in British Columbia, Canada. Doubleview increases shareholder value through acquisition and exploration of quality gold, copper and silver properties and the application of advanced state-of-the-art exploration methods. Doubleview’s portfolio of strategic properties provides diversification and mitigates investment risk.
On behalf of the Board of Directors,
Farshad Shirvani, President & Chief Executive Officer
For further information please contact:
Doubleview Capital Corp.
Suite 310, 675 West Hastings Street
Vancouver, BC V6B 1N2
Farshad Shirvani, President & CEO
T: (604) 678-9587
E:
corporate@doubleview.ca
Comment by d4 — February 17, 2015 @ 6:29 am
DBV News….
For those that did some research on Dr Razique they know how big this news is and how much of a vote in confidence it is for the HAT property!
Look up his background, who he works for, his accomplishments, etc. Ask yourself why he would get involved as a full-time member of the team???? The guy evaluates/identifies projects for one of the worlds biggest private mining companies in the world!
He is now its first full-time geoscientist!
Comment by d4 — February 17, 2015 @ 6:31 am
Here is some DD spoon feeding-
Abdul Razique is a new addition to the DBV team….it is significant imo.
Looking at his profile in linkedin the title says it all…..”Senior Geologist, Seeking New Opportunities”
This is it also from his linkedin profile:
“Currently working as “Consulting Geologist” (August 2013 – present) focused on the geology and exploration potential of porphyry, skarn, IOCG type copper-gold projects in BC and Quebec Canada, and New Mexico, Arizona USA on behalf of Antofagasta Minerals Canada and its J.V partners.”
Antofagasta Minerals is a major producer of the world’s copper and a very big company. Abdul Razique works for Antofagasta Minerals as a consulting geologist and he looks for new growth opportunities on their behalf. Ask yourself, why would he get involved with a small $10 million dollar junior market cap company if it didn’t have something interesting in the ground???????? Some think our results are insignificant but they are not looking at the big picture and what is developing here so far. Yes, it very early but the signs are starting to show something and its attracting some attention but not by the market yet…..that will come when its very obvious.
A little bit on Antofagasta Minerals linkedin website…
From the company web site…
Antofagasta Minerals is the leading private mining group and ownership is mostly Chilean. It was the fourth largest copper producer in the country and the ninth worldwide as of 2011.
Antofagasta Minerals is the corporate center of the mining division. Its main offices are in Santiago, Chile. In 2012, its operations produced 709,600 tons of copper concentrate and cathodes, in addition to 12,200 tons of molybdenum concentrate and 299,900 ounces of gold.
The Group is developing many projects with a high growth potential in coming years. There are prefeasibility and feasibility projects under way in both Chile and the USA and the company is implementing a plan for a global search for mineral resources.
Comment by d4 — February 17, 2015 @ 6:32 am
It is being stated that insecurity in the world is good for Gold, i say,
insecurity is not good for anyone or anything. You all know that Gold
is down $15.00 again this morning, which leads me to believe that,
everyone is using their mattresses’ to hide their cash.
Comment by Bert — February 17, 2015 @ 6:41 am
d4 – he has strong credentials for sure. Maybe the market picks up on it when the next batch of assays are released.
Comment by dave — February 17, 2015 @ 7:13 am
Watch how this plays out, Dave, with DBV…the significance of Dr. Razique joining the DBV team will increasingly be appreciated going forward…
Comment by Jon - BMR — February 17, 2015 @ 7:17 am
WRR – well, so much for getting more at .035. She closed looking a little weak friday. Now, the bids keep building. I thought I would be cute and removed my bid at .04 and changed it to .035. I have a healthy position and looking forward to March on this one.
Comment by dave — February 17, 2015 @ 7:19 am
With Patrick McAndless and now Dr Razique’s full time on the DBV team this brings in a lot of credibility going forward.
A successful junior explorer requires 2 things- a great property and most importantly, a great team to find the deposit. Many properties go through different ownership due to unsuccessful drill campaigns and then suddenly one company strikes it rich when others didn’t because of its strong management & technical team!
Farshad has done great work in hand picking the HAT and being one of the first in the region. Unfortunately, he was dually hatted as a CEO and spearheading the drilling. He is to be commended for acknowledging his weaknesses and stepping back to let these experts take over. Being the major shareholder, he truly cares for all shareholders and has stepped aside to let these experts make the decisions knowing full well what is best for the company and shareholders!
I am really excited for the next drill campaign! Once more good results come in and also due to its strong technical team I think recommendations from brokerages and newsletter writers will follow! The float is low and is in strong hands so you know what happens when demand is far greater than supply……
Comment by d4 — February 17, 2015 @ 7:29 am
d4 – if DBV gets picked up by some newsletter writers, the volume definitely picks up and the share price of coarse. That would be great for DBV
Comment by dave — February 17, 2015 @ 7:53 am
Jon, Desi just picked up 100k WRR – wanted to ask you something. On WRR – I have noticed the past few days that much of the volume has been small crosses. I don’t remember ever seeing this in a stock for as many days in a row going on. I have been trading for years but don’t remember seeing this on a stock. Can you comment on this?
Comment by dave — February 17, 2015 @ 8:11 am
Volume, Dave, and positioning. This is showing some classic signals that one looks for preceding a major advance. As simple as that.
Comment by Jon - BMR — February 17, 2015 @ 8:41 am
NAR moving right along
Comment by dave — February 17, 2015 @ 9:08 am
You have to check out Snipp Interactive!!
Comment by Tram — February 17, 2015 @ 9:22 am