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December 4, 2012

BMR Morning Market Musings…

Gold came under pressure overnight in the Asian markets but is holding support around $1,700…as of 7:15 am Pacific, bullion is down $15 an ounce at $1,701 after dipping as low as $1,690…Silver is 54 cents lower at $33.12…Copper is up 2 pennies at $3.64…Crude Oil has retreated 91 cents to $88.18 while the U.S. Dollar Index has fallen nearly one-fifth of a point to 79.69…

According to UBS, Gold’s move overnight “was not influenced by external forces and was likely a reflection of some participants’ growing frustration that Gold has not managed to climb above $1,750 – long liquidation was amplified by sizeable stops and technical selling…while the downside move was violent, there are some differences from last week’s plummet during the U.S. time zone that are worth highlighting…most importantly, the selling occurred in the Asian time zone where liquidity is typically far from robust…it also happened around lunch time when many traders were off their desks…all these factors together served to intensify the liquidity issue…secondly, the volumes involved were relatively small at about one-fifth of the volumes traded during last week’s sell-off…and finally, there was no follow-through – the selling pressure dissipated quite quickly, with bids emerging just under $1,700, helped by a stronger euro and overall upbeat sentiment”…

Euro Chart Update

Despite Gold’s weakness this morning, a positive development for bullion is the strengthening bullish trend of the euro going into 2013 which also correlates with a struggling U.S. Dollar Index which recently couldn’t push through important resistance around 81.50…as John shows in the 2.5-year weekly chart below, the euro has formed a classic cup-with-handle pattern…this has to be considered bullish for Gold which generally has been following the euro in 2012…

Today’s Markets

Asian markets were mixed overnight, though China’s Shanghai Composite managed to post a 15-point gain to 1975…European markets edged mostly higher today while in North America, the Dow is up more than 50 points through the first 45 minutes of trading…the TSX is off 7 points while the Venture is down 6 points to 1202…

Bank of Canada Leaves Rate Unchanged, Predicts Pick-Up In Economic Growth

The Bank of Canada is keeping its trendsetting interest rate anchored at 1% for the remainder of the year while it also sent a message today that it still believes the cost of borrowing in Canada will go up at some point in the future…“In Canada, economic activity in the third quarter was weak, owing in part to transitory disruptions in the energy sector,” the Bank of Canada said in a statement at the end of its latest round of policy deliberations this morning…“Although underlying momentum appears slightly softer than previously anticipated, the pace of economic growth is expected to pick up through 2013″..this morning’s decision was the 18th consecutive time Mark Carney has kept the policy rate at 1% comprising over two years, the longest stretch of stability since the 1950’s…

Coruvs Gold (KOR, TSX)

Corvus Gold (KOR, TSX) announced this morning that it has expanded its North Bullfrog land package in Nevada by nearly 25 square kilometres or 52%Phase I resource conversion and expansion drilling at the Jolly Jane deposit in the North Bullfrog area is underway with the program focused on resource conversion on private lands at Jolly Jane which the Company anticipates including in its Phase I mine development plan…the program is expected to be completed by year0-end and results available for inclusion into the company’s ongoing Phase I feasibility study scheduled for completion during the first quarter of next year…Corvus hit a new all-time high of $1.71 yesterday and is down slightly to $1.65 in early trading today…

Pilot Gold (PLG, TSX)

Pilot Gold Inc. (PLG, TSX) released assay results yesterday from eight new diamond drill holes from its program at the TV Tower Project in Turkey that returned long intervals of Gold, Silver and Copper mineralization with areas of exceptionally high grades…drill hole KCD-50 highlights the third consecutive set of strong assay results at the Kucukdag (KCD) target, returning 193 grams per tonne (g/t) Gold, 9.8 g/t Silver and 0.46% Copper over 12 metres…visible Gold was confirmed in several veins within this interval, which is located at a vertical depth of 100 metres from surface…approximately 8,400 metres in 45 holes at KCD have been completed with assays pending for 24 holes…drilling for the remainder of 2012 will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013…

ATAC Resources (ATC, TSX-V) Updated Chart

Yukon plays have been hit hard in recent weeks including stalwarts ATAC Resources (ATC, TSX-V) and Kaminak Gold (KAM, TSX-V)…this time of the year should be bargain-hunting time for Yukon Gold stocks (ATAC climbed by nearly 80% between mid-December and early February last year, while KAM jumped by over 50%)…below is an updated2.5-year weekly chart for ATC from John that shows a potential bottom ($1.74) and a basing pattern…

Discovery Ventures (DVN, TSX-V)

One of the most impressive stocks on the Venture this quarter has been Discovery Ventures (DVN, TSX-V) which is working toward putting the Willa deposit (Au, Cu Ag) in the Slocan Valley into production…considerable historical development work has gone into the Willa which is situated approximately 8 miles north of Rainbow Resources‘ (RBW, TSX-V) recently drilled Gold Viking Property…DVN has shown excellent liquidity and gained another 3 pennies yesterday to 34 cents on total volume of nearly 1.4 million shares…below is another DVN chart from John…as always, perform your own due diligence…

Note: John, Jon and Terry do not hold positions in KOR, PLG, ATC or DVN

43 Comments

  1. And again nothing on RBw. Jon bout time you admitted what a joke this is and how incompetent these monkeys are. Zero credibility

    Comment by Heath stockford — December 4, 2012 @ 7:29 am

  2. Heath, how can you be a successful investor being so emotional? Anyway, I believe RBW indicated at the end of last week that news is coming early this week. So let’s see what they do. Today is only Tuesday.

    Comment by Jon - BMR — December 4, 2012 @ 7:40 am

  3. Jon, Wednesday is already mid week, early ends today 🙂

    Comment by Nikolai — December 4, 2012 @ 7:43 am

  4. Not emotional with my other plays. These guys have missed timeline after timeline and its getting irritating. But ok let’s give them rest of day

    Comment by Heath stockford — December 4, 2012 @ 7:54 am

  5. Venture breaks 1200. Lets hope Big Ben launches qe4 in 2013. Mind you, qe3 hasn’t been as successful as we thought for the venture.

    Comment by Tony T — December 4, 2012 @ 8:00 am

  6. Someone emailed ir for RBw now they say news not early in week but expected sometime thus week. Lol wow this is getting rediculous.

    Comment by Heath stockford — December 4, 2012 @ 8:38 am

  7. @Heath.. man you were busting my chops last week for being disappointed with GBB management, telling me to do some DD and post intelligently. It’s sunny here on the west coast, so I envy you in your glass house. Maybe you should sell and put it all in the tech stocks you were pumping here yesterday. Sounds like you are more confident in them. I’d buy some of those stocks your were mentioning myself… if I EVER made a penny on what I am currently in. Maybe 2013?

    Comment by Mike — December 4, 2012 @ 9:15 am

  8. Mike gbb has been delivering news in time now for months. 2nd re was six weeks early. At least they never kept saying next week next week. And yes I’d love to get to break even with RBw so I could put it into int. that’s what I’m waiting for. Cheers

    Comment by Heath stockford — December 4, 2012 @ 9:23 am

  9. Heath we finally agree on something…that RBW has failed to deliver WAY to many times now to be credible. How many times can you put in writing a certain date for an NR and not be held accountable?

    Comment by db — December 4, 2012 @ 9:40 am

  10. Could someone post the full mane and exchange of INT so I can take a look and do some DD on it and see what all the talk is

    thanks

    Comment by erik — December 4, 2012 @ 11:07 am

  11. MUST READ !!!!!!
    kaiserbottomfish.com/s/KaiserBlog.asp?ReportID=559842&_Title=Bracing-for-the-extinction-of-500-juniors-or-an-entire-institution

    Comment by robert — December 4, 2012 @ 12:05 pm

  12. @Heath, my in price for gbb is 25 cents, so the question is not when, but if
    !

    Comment by Mike — December 4, 2012 @ 12:31 pm

  13. I think those who like rbw will have a buying oportunity to pick up shares between 12 and 15 cents I am not a chart reader just my gut feeling

    Comment by gil — December 4, 2012 @ 12:37 pm

  14. Here is the news release… Still have to wait for results … TORONTO, ONTARIO, December 4, 2012: Rainbow Resources Inc. (TSX VENTURE: RBW) (“Rainbow” or the “Company”) is pleased to report that it has acquired 100% ownership of 19 strategic patented claims within and contiguous to the Jewel Ridge Property in Nevada following completion of a Phase 1 drill program that has intersected favourable mineralized zones at the past producing property. Assay results are expected anytime this month. Meanwhile, preliminary assays show near-surface silver and gold mineralization in the first two holes ever drilled at Rainbow’s Gold Viking property in the West Kootenay region of British Columbia with results pending from 10 more holes. Drilling has also intersected near-surface silver mineralization at the International Property which also forms part of the Company’s 100% owned 13,000-hectare Big Strike Project in southeast B.C.

    Comment by Paul — December 4, 2012 @ 1:15 pm

  15. RBW NEWS OUT

    Comment by brian — December 4, 2012 @ 1:16 pm

  16. erik….INT.V Intertainment Media Inc

    Comment by db — December 4, 2012 @ 1:21 pm

  17. RBw nr. I can’t believe what I just read. Jon tell me this was a fake and the real nr is coming.

    Comment by Heath stockford — December 4, 2012 @ 1:28 pm

  18. and another RBW dud.

    Comment by sean — December 4, 2012 @ 1:28 pm

  19. I can’t see how anyone including BMR could defend RBW’s handling of the just released International drill results. A total of a paltry 773 meters. Who is the idiot that decided to put out todays NR with its smoke and mirrors format? It seems obvious to me the the poor results were delayed, because they were poor,and they are now trying to sell the Jewel ridge property and RBW were trying to buy time. I would like to ask the BCSC to check the assay certificate of Analysis to see the date the assays were done. It has been suggested that there are “millionaires” and “NHL” owners in this company give it credibility. I put these guys on the same level as SD management. Lets see how this one is spun.

    Comment by Paul — December 4, 2012 @ 1:33 pm

  20. Looks ok so far to me, Heath – Jewel Ridge in particular. Could see some excellent results given the very specific visuals. Nevada I would say has emerged as the overall flagship, with the flagship in the Kootenays yet to be determined. International didn’t deliver the grades they were hoping, at least not yet. That’s a disappointment but discoveries aren’t always made instantly. They have to figure that one out somehow. Gold Viking could still get quite interesting. Need to digest everything more.

    Comment by Jon - BMR — December 4, 2012 @ 1:36 pm

  21. Three strikes and your are out. International did not deliver. Two more to go.

    Comment by Kalkan - Sweden — December 4, 2012 @ 1:36 pm

  22. That’s a good way of putting it. As we’ve mentioned, what RBW needs is a hit on at least 1 out of these 3. Two are still in play, especially Jewel Ridge.

    Comment by Jon - BMR — December 4, 2012 @ 1:41 pm

  23. Well you will be happy Jon as I’m sure you can load the truck tomorrow on some ten centers. Just more bs. Visuals this visuals thst. Where the hell are the assays. And thanks jon I accept your apology. I told you weeks ago they were covering up international crap results and I was bang on. Now it’s more smoke and mirrors. Why in the world did they host those news sessions last week to get all eyes on them to do nothing but deliver more fluff and hurry up and wAit

    Comment by Heath stockford — December 4, 2012 @ 1:45 pm

  24. Hey BMR – do you see RBW tanking or staying steady at mid to late teens range? Be honest.

    Comment by alex — December 4, 2012 @ 1:48 pm

  25. RBW

    the big play that has been touted here for months has been the International, what a joke, another Visible gold, I am done..

    Comment by GREG — December 4, 2012 @ 1:49 pm

  26. Gold Viking actually has some very impressive hits and more assays pending – so they didn’t hit glory holes at the International – is this what you guys were expecting from the onset?
    I’m not sure what to make of this, but they are hitting mineralized zones (consistently) and of course there is more drilling ahead to confirm size and quality of land package.

    Anyways, with the ventures tanking the way they have been, will wait to pick up more once we see what RBW’s price action brings.

    A lot of pissed posters here and I’m sure tomorrow will be even worse.

    I’ll hang on to my shares – wouldn’t want any of you to committ suicide if I pull the triger for a 200k market order.

    BMR you selling (reducing position) or buying?

    Comment by alex — December 4, 2012 @ 2:21 pm

  27. I am also holding on to mine

    Comment by Kalkan - Sweden — December 4, 2012 @ 2:29 pm

  28. Aex

    I am hanging on to my shares….there is a lot of info to come from 3 sources…..that is much better than these one trick ponies…..there is a long way to go here.

    Comment by John - BMR — December 4, 2012 @ 3:14 pm

  29. @alex
    I am sure BMR is going to say they are buying like crazy tomorrow. For months BMR has tabbed International as a can miss and guess what, a big miss. Pure promotional company is RBW. Back to BMRs buying tomorrow, isnt it always interesting that they always made a point to tell us readers when they were buying but yet, yesterday they throw out there that they were sold some awhile ago. I guess it is hard to pump and be honest/sell at the same time. Too bad alot of people have been dooped with rbw. what a shame

    Comment by sean — December 4, 2012 @ 3:16 pm

  30. doesn’t look that bad to me .more results on the way ,who knows could be in this week,im staying in ,to those whiners today,what were you expecting a 3.00 dollar profit overnite,give your freaken head a shake,or see ya,keeping my shares in rbw but going to only check out what bmr has to say and avoid reading what you few babys have to say.man,unbelievable,remember no one held a gun to your head…….ive got better things to do….

    Comment by tom — December 4, 2012 @ 3:31 pm

  31. RBW no surprise here they found nothing all properties driled to date will show very little

    rbw is a complete bust in all programs to date

    Comment by robert — December 4, 2012 @ 3:35 pm

  32. RBW thats why you seen all the dumping of paper and huge offers for sale

    Comment by robert — December 4, 2012 @ 3:36 pm

  33. Sean

    Yesterday….Jon wrote “I haven’t sold a single RBW share in my RRSP which holds nearly 200,000 RBW shares, if it’s anyone’s business. In my other accounts I’ve sold some shares but to participate in a financing. I have a very healthy position and personally I’m very comfortable with that, knowing that there are always risks. As far as that ask is concerned, old news. It was around last week.”

    Obviously you do not understand why he sold the shares….surely it is OBVIOUS why he sold shares… TO GET MORE.

    Comment by John - BMR — December 4, 2012 @ 3:36 pm

  34. Patient is the key here. People were expecting Goldquest results, it doesn’t happen instantly. I held Goldquest on BMR recommendations and sold (got tired of waiting and the stupid initial results)… and missed out on the big runs.

    Comment by Jason — December 4, 2012 @ 4:01 pm

  35. My mistake John, should have read more clearly. Anyways, rbw is still on very thin ice. Results today are marginal at best. The market won’t pay for marginal results.

    Comment by OldMan — December 4, 2012 @ 5:01 pm

  36. I was talking to GQC at the Cambridge show and they freely admit that they threw a Hail Mary pass with the Romero discovery hole. This was also confirmed by another companies geo. working in the same area. GQC was out of money and down to thier last hole. They got lucky, which means BMR got lucky by still recommending it. I would not compare RBW to GQC and hope that they repeat GQC. RBW management showed a total lack of respect for its shareholders in the way they handled a small drill program at the International. I as well I think others reading this board suspect RBW witheld results of the international drill program to buy time. Certainly not to be trusted in my opinion and even if they do hit at Jewel Ridge, they have already damaged their reputation and investors will think twice about buying RBW on favorable results.

    Comment by Paul — December 4, 2012 @ 5:21 pm

  37. Jon – If the sun was falling to the earth on Dec. 21, you would still be saying “Ithink we have a chance to survive”. Your so funny.

    Comment by dave — December 4, 2012 @ 8:32 pm

  38. Does anyone know who was the special guest, at the RBW online conference hosted after the NR, who took the bullets?

    Comment by Alexandre — December 4, 2012 @ 10:44 pm

  39. Hi Jon,
    Will you release an RBW Alert about the so so RBW news. Thanks. We also need guidance about de-accumulating.

    Comment by Alexandre — December 4, 2012 @ 10:47 pm

  40. We’re posting early in the morning, likely around 5 am Pacific, with some extensive comments on RBW.

    Comment by Jon - BMR — December 4, 2012 @ 10:59 pm

  41. “This has been an extremely valuable initial year for us in terms of broadening our understanding of our West Kootenay project,” explained Mr. Decker. “We have assembled a first-rate property package that offers EXCEPTIONL opportunities for an important discovery, especially after what we’ve learned over the last 12 months through two drill programs and extensive prospecting. We’re much further ahead now than we were a year ago.” The word “exceptional” stands out. RBW is buying/acculumulating claims in this bear market at maybe throw away prices.

    Comment by Alexandre — December 4, 2012 @ 11:03 pm

  42. Hi again Jon,
    If you do speak to Mr Johnston, could you please inquire if the insiders are accumulating, holding, or de-accumulating at this juncture. Thanks. Get rest.

    Comment by Alexandre — December 4, 2012 @ 11:10 pm

  43. thanks jon,

    Comment by Stephan — December 4, 2012 @ 11:22 pm

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