I’ve updated my model portfolio. Both TGB and NSU have broken out technically on big volume. They still have lots of long-term appeal but with doubles already, I’m content to be just a strong holder at this time.
I had a chance to sit down with who I believe are deserving to be called the best junior resource newsletter writers – the Coffin Brothers/Hard Rock Analysts while I was in Vancouver. They’re very strong believers in Evolving Gold. We both agreed that on a back of an envelope we could start to scratch out 2-3 million ounces at Evolving Gold’s Rattlesnake property. The market is pricing that in now so while that should limit the downside once the hot money players move on to their next play (I suspect they will be gone by years-end in part due to tax loss selling), we’ll need to see drill results that suggest the deposit could be much bigger. I believe the first clue of this came in the most recent drill results so stay tuned. They very much like East Asia Minerals (EAS-TSX-V). I’m looking at it under $2.
Please accept my apologies for being too “promotional-type” in last week’s comment on Continental Minerals (KMK-TSX-V). Using the word cartwheels was too aggressive in my assessment. However, that doesn’t change my biased but humble opinion that KMK is now in play. Their newest large shareholder has been quite “promotional” about their new interest in KMK and the fact that they have not been as aggressive on the acquisition front as they should have. Believing their original shareholder has egg on their face, I’m quite optimistic one of these two, if not a new party can decide its time to take out KMK before their competition does. Stay tuned!
article posted in kmk forum
well i like this thread. im a subscriber to HRA and have some funds in EAS. unfortunately i bought in at 2.48 so im a bit under water but im hoping that it is coming back as it looks like we just bounced of a support line at $1.90. EVG is a confusing one but i dont have to much trouble holding it when both Peter and HRA are recommending it. Also at the conference, i was talking to the HD rep and i told him i hoped we get a bid on KMK over $2.00 and he looked at me like i was crazy. He is thinking that $4.50-5.00 is in the cards. that being said he is a shareholder as well. any one else know what bid we might expect?
Good Afternoon Everyone, I am new to Peter’s site. I have been following it for a couple weeks. I like his recomendation but I have a question with regards to which stock market to purchase the shares. For example, I am looking to buy Evolving Gold but does it make sense to buy it on the Amercian exchange: EVOGF or should I stick with the TSX: EVG as recommded on this site.
I noticed quite a few of the recomenedations are traded like that. Does it make sense to stick the the American exchanges for the purchases?? Thanks in advance
Cary,
Check both exchanges for volume on the particular stock you are interested in. Chose the exchange with the most liquidity. For most stocks, that would be the Venture Exchange.
Cary, just curious….are you located in the US and if so, what brokerage are you using to buy Canadian stocks directly without going through the pink sheets? Thanks
Thanks.. I noticed the volume is usually 150K atleast. For example, EVOGF’s volume is hoovers around 400k. I have etrade and though I can buy on the Canadian exchange they charge $19.99CA as opposed to $7.99 for US trades. Good point about the liquidity.
NSU sure took a hammering. Anyone have a feel for this one?
Looking forward to reloading my NAK rolling block tomorrow…hope they hammer it below $6.50…”like taking candy from a baby”
Interest In Gold Charts Anyone?
A Short Term Focus On Gold
The Great Gold Bull Market dates to late 1999 and Primary Wave I ended in March 2008.
Rather than a decline, we endured 18 months of re-accumulation setting up a new base. Some may refer to it as an ‘Inverse Head & Shoulders Bottom’. However, because there is no decline, and only base formation, it may be considered a ‘Cup & Handle Formation’. Regardless, it’s a period of accumulation and a newly completed base.
During this 18 Month time span, Gold ownership has shifted from the hands of early profit takers to new owners looking for higher prices. We started the ‘Third Wave’ (Up) last year.
This could be a little confusing here if you’re not familiar with wave counts. Within this new ‘Third Wave’, which should consist of 3 parts, we are in Wave I, also consisting of three parts. It appears that we have just finished ‘The Third Wave’ within ‘The Third Wave’ of the First Wave.
So we’re a little more than 1/2 way through the very First Wave of Five Waves dating back to last year. We should run to $1,250 or higher before this first Wave ends. Then we’ll come to the ‘Third Wave Of The Third Wave’, and that will be quite strong, marking the point where society as a whole begins to take an interest in Gold related investments.
But the purpose of this is short term focus because we have just broken out of the base. What should we expect next? Typically, we should expect a pull back to test the base and confirm the breakout.
** The rising Neckline is at 1027 today, and that is the first support.
** $1,000 looks very interesting, if we should get there, it will prove to be formidable support.
If you want to make a Bearish case out of this short term pullback, then $980 is another objective, but it’s really $1,000 oz. which also meets the uptrend line and there’s a lot of Money Managers watching this pullback and understanding the implications of a breakout from the deep base.
Sometimes we get weak wave formation making identification difficult, but this wave structure is quite well defined for Gold, and especially for Silver.
Interestingly, ‘The Cursed Brethren’ (General U.S. Equities) are following a similar wave pattern to physical precious metals. They should come up again for a final Fifth Wave, probably ending in the first quarter. After that, expect general U.S. equities and the physical metals to part company resuming their traditional inverse relationship.
Thanks SGGroup, that’s a great post.
Mark Leibovit clip on BNN below – for those of you wondering who this trader is that Peter sometimes mentions:
http://watch.bnn.ca/#clip227907
Thank you Susan for the clip… and for looking out for us!
Whats going on with EVG? It is getting smoked since the recommendation
Just found out it’s possible to post charts in the Agoracom hubs, which can’t be done here.
I posted a couple of seasonal gold and silver charts in the Synergy hub, along with commentary from Don Vialoux. For anyone who does not know how to get there, just go to the search box at the top and type in “synergy”
Anyone able to paste the recent NAK news in its entirety? For some reason, Ameritrade only showing the following headline and brief:
10/27/2008 1:15p Northern Dynasty Minerals Ltd. – Successful 2008 Study Program Continues At Alaska’s Pebble Project
Northern Dynasty Minerals Ltd. (”Northern Dynasty” or the “Company”) (TSX:NDM; AMEX: NAK) reports that core drilling and other study activities at the Pebble Limited Partnership’s (”PLP”, “Pebble Partnership” or the “Partnership”) project site in … PR NewsWire
NAKTOTENBUCKS,
A little long, but here it is:
October 27, 2008, Vancouver, B.C. — Northern Dynasty Minerals Ltd. (”Northern Dynasty” or the “Company”) (TSX:NDM; AMEX: NAK) reports that core drilling and other study activities at the Pebble Limited Partnership’s (”PLP”, “Pebble Partnership” or the “Partnership”) project site in southwest Alaska continue to advance. The Pebble Project remains on track to complete a Prefeasibility Study in the second half of 2009.
“The Pebble Partnership continues to make sizable investments across a broad range of technical, environmental and social disciplines to move the project forward efficiently toward the completion of a proposed development plan and the onset of permitting,” said Northern Dynasty President & CEO Ron Thiessen. “The tremendous amount of work undertaken this year by geological and geotechnical drilling crews, environmental and socioeconomic consultants, as well as the site personnel that support them, has moved us that much closer to reaching our program goals.”
To the end of September 2008, PLP crews had completed 141,000 feet of drilling in 215 holes. This includes 109,800 feet of drilling in 24 holes to: increase the information base about known mineralization in the Pebble East deposit; continue to delineate the Pebble East deposit; and provide detailed geo-technical information for mine planning purposes. Crews also completed 31,160 feet of drilling in 191 dedicated environmental, geotechnical and metallurgical holes. Drilling at Pebble will continue through December 2008. Following a 6 to 8-week hiatus, site activities will begin again in February 2009.
Thiessen said the Pebble Partnership, with the assistance of co-owners Northern Dynasty and Anglo American plc, has assembled a world-class mine development team to design, permit, construct and operate a modern, long-life mine at Pebble. A dedicated team of approximately 20 engineers and technical specialists (many seconded from Anglo American), as well as 58 engineering firms and other consultancies, is currently preparing a Prefeasibility Study for the project.
“While the high-grade copper-gold-molybdenum mineralization within the Pebble East zone remains open to expansion, the 2008 drill program will delineate sufficient volume and grades to allow us to finalize a Prefeasibility Study next year,” Thiessen confirmed. “Similarly, the excellent progress being made by our engineering design team, our environmental study team and stakeholder outreach personnel means Pebble is on schedule to finalize a proposed development plan in 2009 and, following input from project stakeholders, apply for permits in early 2010.”
Thiessen said the Pebble Partnership and Northern Dynasty expect to publish a revised mineral resource estimate for the Pebble deposit based on 2008 drilling results later this year. A significant proportion of the known mineralization at Pebble East is expected to move from an inferred to an indicated category.
While drilling continues at Pebble, other 2008 site activities are largely complete. Some 26 environmental and socioeconomic study teams visited the project site this year as part of the fifth consecutive year of comprehensive environmental baseline studies.
Northern Dynasty and subsequently the Pebble Partnership have invested more than $100 million in environmental and socioeconomic studies over the past five years, including $25 million planned for 2008. The Partnership is currently assembling an Environmental Baseline Document for Pebble, which will be submitted as part of the project’s permit applications.
“The Pebble Partnership has undertaken the most expansive and comprehensive pre-permitting environmental study program in the history of mine development in Alaska, if not North America,” said Northern Dynasty Chairman Robert Dickinson. “These investments will hold the project in very good stead as it prepares to enter the federal and state permitting process.”
Other statistics from a busy 2008 study program at Pebble include:
•a total of 10 helicopters have flown more than 9,000 hours, moving crew and equipment from the operations base in Iliamna to various project locations;
•approximately 800 individuals have worked about 40,000 person-days, with the total number of people at site peaking at 232 in August;
•approximately 3,420 fixed wing aircraft flights have brought people and supplies into and out of Iliamna in 2008, including more than 50 groups visiting to tour the Pebble Project;
•site expenditures to the end of September total approximately $50 million , excluding environmental study costs; and
•some 90% of 2008 site expenditures (or approximately $45 million) have accrued to Alaskan firms.
“Whether you’re looking at investment, jobs, supply and service contracts or revenues to government, we believe Pebble has the potential to be the next great development project in Alaska — on the scale of a Prudhoe Bay or Alyeska Pipeline,” Dickinson said. “But Pebble is also making a significant contribution to the regional and state economy today, in part because of the Partnership’s efforts to diligently apply local hiring and local contracting policies.”
The Pebble Limited Partnership was established in July 2007 as a 50:50 partnership between a wholly-owned affiliate of Northern Dynasty and a wholly-owned subsidiary of Anglo American plc. Under the terms of the agreement, Anglo American will fund $1.425 billion of project costs to acquire its 50% interest — including budgeted expenditures of US$140 million in 2008 and $40 million in 2007.
Study activities and program expenditures at Pebble in 2009 will be finalized in December, and are expected to be similar to those in 2008. Northern Dynasty continues to hold US$36 million in cash and has no immediate funding commitments for the Pebble Project.
Mark Rebagliati, P.Eng., has reviewed the information on the site program and Stephen Hodgson, P.Eng., has reviewed the information on the engineering programs. Both are qualified persons who monitor Northern Dynasty’s programs.
For further details on Northern Dynasty and the Pebble Project, visit our website at http://www.northerndynastyminerals.com and the Pebble Partnership website at http://www.pebblepartnership.com, or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
Ronald Thiessen
President and CEO
GBG News out this afternoon – excerpt and link follows – seems positive.
VANCOUVER, Oct. 27 /PRNewswire-FirstCall/ – Great Basin Gold Ltd. (”Great Basin Gold” or the “Company”) (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces further high-grade underground drilling results from its Hollister property in Nevada for the quarter ending September 30, 2009 (”Q3″). Exceptional results have been achieved from underground boreholes HSD-116, 118, 84, 85, 86 and 87, which have intersected grades of 6 opt Au to 63 opt Au (300 g/t to 2,150 g/t Au) over widths ranging from 0.5- 6.4 ft (0.2 to 3 m) on the central Gwenivere vein system, and are part of the 40 vein intersections in excess of 1 opt Au (34.28 g/t Au) made during the quarter.
VANCOUVER, Oct. 27 /PRNewswire-FirstCall/ – Great Basin Gold Ltd. (”Great Basin Gold” or the “Company”) (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces further high-grade underground drilling results from its Hollister property in Nevada for the quarter ending September 30, 2009 (”Q3″). Exceptional results have been achieved from underground boreholes HSD-116, 118, 84, 85, 86 and 87, which have intersected grades of 6 opt Au to 63 opt Au (300 g/t to 2,150 g/t Au) over widths ranging from 0.5- 6.4 ft (0.2 to 3 m) on the central Gwenivere vein system, and are part of the 40 vein intersections in excess of 1 opt Au made during the quarter.
http://finance.yahoo.com/news/Great-Basin-Gold-Provides-prnews-910778243.html?x=0&.v=18
Just got the remainder of my 25K share NAK rolling block filled. Back in @ $6.85 avg. Let’s see if it works like it did last time. I’ll be gone once it gets back above $7.35 (hopefully within a couple of weeks).
GBG – Fortune had an article that had a positive mention of GBG. Excerpt follows – think I may buy some more tomorrow.
“Now, even after investors have flooded back into the market, top-ranked gold fund manager Mark Johnson says the junior miners are undervalued, and he’s betting on their recovery.
“The best value is at the smaller end of the scale,” says Johnson, who is in his 16th year running USAA’s Precious Metals and Minerals fund (USAGX).
Junior miners are those with less than 250,000 ounces of annual gold production, which equates to roughly $250 million in revenue at gold’s current price.
Fund researcher Morningstar ranks USAA’s Precious Metals fund No. 1 in each of its five- and ten-year categories. The $1.5 billion fund’s 10-year annualized return of 22% handily beats the S&P 500’s drop of 0.15%. Its closest benchmark, the Philadelphia Stock Exchange Gold and Silver Index, has returned 9% a year since then.
……
Two of the fund’s top junior mining holdings are two Vancouver, Canada-based companies: Great Basin Gold and Aurizon Mines.
The fund added Great Basin two years ago. Johnson says he expects its seasoned management to more than double gold production to 200,000 ounces by the end of next year. The company’s Hollister mine in Nevada is high-grade, he says, producing 1 ounce of gold per ton of material mined. A typical mine might yield 1/10 of an ounce per ton. “They’ve already poured real gold out of this thing,” he says. “It’s not just a figment of someone’s imagination.”
At the operating level, Johnson says Great Basin has hired seasoned managers from Newmont Mining, one of the world’s largest producers with mines also in Nevada. “These are experienced Nevada miners with a long track record,” he says.”
Does anyone know anything about HD’s other company AHR (Amarc) they have drilling results coming out soon and wanted to know if anyone was following this potential gem!
Jay,
im actually looking into that one as well. anything HD is getting scrutinized by me lately after peter emphasized the importance of good management why not start with the best. But im just flipping through the panflit i got at the vancouver seminar and most of it is pretty obvious but some interesting facts would be the Newton bulk tonnage gold target has had historic intercepts of 105 meters of 1.20g/t gold and 97 meters of 0.51g/t gold. but they have 3 drill areas going. Newton Bulk Tonnage (gold), Pinichi Porphyry (copper/gold) and Bodine (Zinc, copper, silver, massive sulphide target). drills just started in the last few months though so i doubt results will be soon. ill be phoning in to ask but thats my thought on it. i will be looking into it more.
i would have more but i have been pouring my time into Rockwell Diamonds RDI-TSX which i bought this morning. Any one have any opinions on them? i think there is tremendous upside but maybe im delusional:P
Market is very risky per Bill Gross, the highly respected manager of PIMCO who writes for his November assessmentthe following:
“. . . Treasury Bills at .15%, two-year Notes at less than 1%, and 10-year maturities at a paltry 3.40%. Absent deflationary momentum, this is all a Treasury investor can expect. What you see in the bond market is often what you get. Broadening the concept to the U.S. bond market as a whole (mortgages + investment grade corporates), the total bond market yields only 3.5%. To get more than that, high yield, distressed mortgages, and stocks beckon the investor increasingly beguiled by hopes of a V-shaped recovery and “old normal” market standards. Not likely, and the risks outweigh the rewards at this point. Investors must recognize that if assets appreciate with nominal GDP, a 4–5% return is about all they can expect even with abnormally low policy rates. Rage, rage, against this conclusion if you wish, but the six-month rally in risk assets – while still continuously supported by Fed and Treasury policymakers – is likely at its pinnacle. Out, out, brief candle.”
William H. Gross
Managing Director
Unfortunately he does not give his opinion of where best should folks put their money….for those lucky to still have some.
Hi Ryan thanks!
I too hold RDI in my portfolio…RDI have a great management team recently appointed….so im hoping they can turn things round. The share price I think has hit rock bottom…so its a good time to get in.
With regards to AHR if they started drilling in September…results must be very soon. This theory is backed up with some unusual buys and a hike in the SP.
Jay
Ryan…here’s an art.about there financing
Rockwell to raise up to $10m
Brendan Ryan | Fri, 16 Oct 2009 10:20
[miningmx.com] — ROCKWELL Diamonds (Rockwell) is now looking to raise between $7m and $10m instead of the previously announced figure of $3.5m to bolster its balance sheet.
Rockwell CEO John Bristow said the decision to go for more funds resulted from improving sentiment in the diamond market as well as indications of support from shareholders.
However, the interim results statement from Rockwell for the six months to end-August released today cautioned that, “The fund raise is expected to be achieved through a combination rights offering and private placement although there can be no certainty of its success at the present time.”
Bristow told Miningmx that details of the rights offer should be made public in early November.
“We are well advanced with the documentation for the Toronto Stock Exchange but the real challenge is meeting the JSE requirements. “
The funds will be used to strengthen Rockwell’s balance sheet, settle short-term debt including the payment standstill with Komatfin in respect of equipment leases and to undertake further production improvements and cost saving measures at existing operations.
“If funds permit, the company will also initiate the modernisation of the Wouterspan processing plant with a view to re-commission this operation subject to further improvement in diamond prices,” Bristow stated.
He commented, “Sentiment in the diamond markets has improved and we received positive feedback from our major shareholders from the first round of discussions about the rights offer.
“The message we got was that we should raise all the money we need now instead of having to come back later next year and ask for more. We also found support from a couple of new, large cornerstone shareholders who appreciate the growth prospects that Rockwell offers.”
For the six months to end-August Rockwell turned in an improved operating performance but losses doubled to $6.6m from $3.1m in the comparable period of 2008 because of the collapse in diamond prices towards the end of calendar 2008.
Rockwell sold rough diamonds worth $9.7m (previous comparable period – $17m) and sales prices achieved in the first quarter were below the cost of production.
Bristow noted that “prices achieved in the second quarter have covered the cost of production but have not been sufficient to cover fixed overheads in full and lease payments.
“To maintain liquidity sales were made below production cost. In July and August cash inflows from sales have exceeded outflows from operating expenses though overall inflows have not been sufficient to cover the full costs of the lease payments on a limited amount of earthmoving equipment. “
That situation forced Rockwell into invoking the payment deferral with Komatfin.
Bristow said Rockwell had beaten its production target of 2,500 carats per month from its three operating mines during the period June to September and achieved a record monthly production of 3,016 carats for September.
The average diamond price received rose 54% to $855 per carat in the second quarter compared with $555 per carat in the first quarter.
Average operating costs were held to $2.72/t for the six months while the average cost including rehabilitation, hire purchase payments and royalties was $
here’s another rdi mention…..
http://www.diamondinvestingnews.com/1533-will-diamond-recover-by-2010.html
Jay and Chris thanks for the info. I really liked the second article from chris as i have already read through every imaginable finance report from rockwell. im quite content with it even if i have to sit on it for a awhile. hopefully i wont with the upcoming shopping season.
jay i would say that i disagree with u in terms of when to expect drill results. i will phone to confirm. but i owned BVG and they are in the same territory and it took them about 3 months to get their results out. BVG also had the advantage of seasonality here in BC. i guarantee if there isnt snow on Amarc by now there will be soon which will slow the process. so to be honest its a bit of a cross roads. i saw BVG increase more on speculation then on drills. and if u are playing that then i would still wait and see if gold has a correction in store. so i guess my conclusion right now is im in no hurry to buy it until i see it drop a bit. and even then my dad was telling me that BC is terrible for starting a mine site as we are apparently avid environmentalists up here so i would only be a buyer speculating on drill results that i think will be out next year.