As John’s chart showed yesterday, the Venture Exchange is showing clear signs of a pending turnaround – we’re convinced now that next week the CDNX will finally push through its EMA-20 which has provided key resistance during the downtrend that started in March. Gold and Silver are looking technically strong as well.
At BMR, we’ve been following several “hot” situations recently including of course GoldQuest Mining (GQC, TSX-V) which is looking better than ever (we’ve been covering this story aggressively since Day 1) after a “monster” hole (LTP-93) was reported Monday (258 metres grading 4.5 g/t Au and 1.3% Cu). GQC’s Romero discovery in the Dominican Republic is still in the very early stages, but this stock is a “keeper” in our view given the early indications of a potential world class deposit. The fact Dundee Securities jumped all over a financing immediately after the release of last Monday’s results is a very bullish sign. Dundee has some excellent mining analysts and they’re seldom wrong in these situations.
The mineralization-rich DR is getting more attention than ever now, so, as we’ve been mentioning, it’s also an excellent time to be looking at the only other juniors in this mining-friendly jurisdiction – Unigold Inc. (UGD) and Everton Resources (EVR, TSX-V). UGD gained 29% last week, closing Friday at 49 cents, while Everton inched up to close the week at 9.5 cents. Recently, we interviewed EVR President and CEO Andre Audet and we’ll be posting that interview as soon as possible. UGD is getting very encouraging drill results from its Candelones Project approximately 40 kilometres north of GQC’s Romero discovery, while Everton is looking to joint-venture its promising land package contiguous to the massive Barrick-Goldcorp Pueblo-Viejo deposit where mining operations are expected to commence this month.
In British Columbia, Rainbow Resources (RBW, TSX-V) has mobilized a drill rig to its International Silver Property in the West Kootenays. Drilling is expected to start by the end of next week, and initial shallow holes will be testing for high-grade mineralization along an exposed structure. Rainbow has some fabulous targets to drill, and several years of work has gone into pinpointing the best locations for the first-ever holes drilled at this promising property. Yes, there are never any guarantees in this business and this is a speculative play just like GoldQuest was (and still is). But based on all the historical information known about this property, several geological reports over the last few years, Braveheart’s work starting in 2007 which was followed up by Rainbow beginning last year when it took over the private company, and our own site visit which included conversations with geologists and prospectors, we believe the odds of a discovery at the International are unusually high. It seems investors are starting to catch on to that with RBW closing above important resistance at 20 cents this past week. There aren’t many companies on the Venture with a chart so favorable as Rainbow’s, and we believe those bullish technicals are reflecting underlying confidence in the prospects for this very active young company.
The last company we aggressively followed with properties in British Columbia was Richfield Ventures which became a 10-bagger for some of our readers after a major Gold-silver discovery in the Blackwater district in the central part of the province. Richfield was taken out by New Gold Inc. last year at around $10 a share.
Below are chart updates for GoldQuest, Unigold and Rainbow. There are of course other opportunities we’re looking at (Comstock Metals – CSL, TSX-V – had a very good week), and we’ll be reviewing them in the coming days.
GoldQuest Mining (GQC, TSX-V)
Unigold Inc. (UGD, TSX-V)
Rainbow Resources (RBW, TSX-V)
Note: Both John and Jon hold share positions in RBW with Jon increasing his position yesterday. Jon also holds a share position in GQC.