Greetings again from northwest British Columbia where we continue to enhance our understanding of the prolific Sheslay Valley…a helicopter tour of the entire known NW/SE trending corridor has given us new insight and some spectacular pictures that we’ll be sharing with our readers over the next few days and beyond…suffice to say, the Sheslay Valley is exhibiting all the signatures of a classic large-scale Cu-Au porphyry district capable of hosting not one, not two, but several world class deposits over a broad area…the fact that Doubleview Capital Corp. (DBV, TSX-V), Garibaldi Resources Corp. (GGI, TSX-V) and Prosper Gold Corp. (PGX, TSX-V) – the three most prominent players who will soon be carrying out simultaneous drill programs – have a combined market cap of just $32 million underscores the unique opportunities investors currently have before a much greater awareness of this area sets in among the masses…as always, perform your own due diligence…our readers should find our efforts up here extremely helpful over the coming days in terms of assessing the potential of this mineral-rich district which is also blessed with certain infrastructure advantages not typically seen with projects in other remote parts of this province…
Gold has traded between $1,315 and $1,326 so far today…as of 9:45 am Pacific, bullion is up $7 an ounce at $1,319…Silver has pushed 24 cents higher to $20.09…Copper is up 2 cents to $3.02…Crude Oil is off slightly at $103.44 while the struggling U.S. Dollar Index is down more than one-tenth of a point to 79.39…
Gold reacted favorably yesterday to the release of Fed minutes from its March 18-19 meeting….those minutes showed that the Fed plans to favor low short-term rates longer than many had assumed…two weeks before the Fed’s regular meeting, it held an unusual and previously unannounced video conference to debate the issue, according to the minutes released yesterday…in the end, the Fed settled on an open-ended approach – even after employment and inflation are nearly back to normal, short-term rates may need to stay unusually low for a while because the economy isn’t fully healthy…
UBS has reduced its 2014 average Silver price forecast to $21.80 an ounce from $22.30, saying the metal struggled to fully benefit from Gold’s safe-haven first-quarter gains…it should do better when the economy recovers, but Silver “needs convincing economic growth before it can start outperforming Gold,” according to UBS…it’s keeping its 2014 average Gold price forecast at $1,300, saying the yellow metal should continue to trade in a fairly tight range…
Today’s Equity Markets
Asia
China’s Shanghai Composite gained 29 points overnight to close at 2134 despite weaker-than-expected trade data…exports slumped 6.6% in March, well below estimates for a 4% gain and following February’s dramatic 18% plunge…imports meanwhile, fell an annual 11.3%, under-performing expectations for a 2.4% rise…following the data, Chinese Premier Li said the government won’t take any immediate stimulus measures to deal with the economy’s short-term volatility…
China’s imports of Copper and iron ore, however, continued to surge in March as cheaper prices spurred stockpiling, bucking the trend of sharply lower overall exports and imports in the month…Copper shipments rose 31.4% on year to 420,000 tons while iron ore imports rose 15% from a year earlier to 74 million metric tons, according to customs data…Copper imports in March may have been influenced by deals in which Chinese investors were locked into buying the metal to back bank loans…volumes of Copper and iron ore imports were off record highs in January…but growth in import demand has remained robust, despite signs China’s economic growth is likely to slow this year from a 7.7% expansion in 2013…
Europe
European shares were off modestly today…the Bank of England announced it was holding interest rates at a record low of 0.5%, with asset purchases unchanged at a total of £375 billion ($629 billion U.S.)…this was as expected, and came after the IMF upped its forecast for U.K. growth yesterday…
North America
The Dow has retreated 144 points as of 9:45 am Pacific while the Nasdaq has plunged another 2.5% amid a continued sell-off of tech and biotech shares…the number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level in almost seven years, which could bolster views of an acceleration in job growth after a cold winter dampened hiring…initial claims for state unemployment benefits dropped 32,000 to a seasonally adjusted 300,000 for the week ended April 5, the lowest level since May 2007, the Labor Department reported this morning…
The TSX is down 97 points while the Venture is off 1 point at 1002 as of 9:45 am Pacific…Gold Bullion Development Corp. (GBB, TSX-V), halted yesterday, is up a penny-and-a-half to 4.5 cents on strong volume after announcing an MOU with Iamgold Corp. (IMG, TSX) with respect to Iamgold processing ore emanating from the Granada mine site at its Westwood mill…
TSX Gold Index Updated Chart
The TSX Gold Index appears to have found solid support at its 200-day moving average, currently at 179, which is also within Fib. retracement levels between 175 and 182…after a sharp but healthy correction in late March, the Gold Index is now trading in an upsloping channel but is also now in area of resistance at and immediately below its 50-day SMA…a move through this resistance would be significant…a bullish +DI crossover on this 6-month chart is an encouraging sign…
Direct From The Hat Property: Doubleview Capital’s Opportunity For A Second Discovery
The Sheslay Valley district as a whole has scale, but so too does Doubleview’s Hat Property where drilling is not only following up on discovery holes at Anomaly B, over a horizontal extent of approximately 1 km, but will also test the potential for a mineralized porphyry on trend to the northwest at Anomaly C…prior to listening to our interview, we suggest readers review DBV’s March 18 news release which made note of the fact that “similar Gold-Copper mineralization is present in outcrops” at Anomaly C…the area is also “coincident with the highest chargeability readings obtained in Doubleview’s 2013 induced polarization geophysical survey.”
We saw this outcropping mineralization at Anomaly C and it is impressive…combined with geochemical and geophysical evidence (these signatures are strong at Anomaly C but there are some differences with those seen at Anomaly B which only drilling can answer), this target area has to be considered highly prospective for a second potential discovery at the Hat…below is a picture of DBV President and CEO Farshad Shirvani collecting more samples from Anomaly C, and this location is where we conducted a short interview…
Doubleview has discovered outcropping mineralization at Anomaly C, an important target area along a structural trend with Anomaly B. IP chargeability readings at Anomaly C are the highest on the property, and these are coincident with geochemical signatures and outcropping mineralization.
Simply click on the forward arrow to listen to a 3-minute excerpt of this interview between Jon and Farshad – requires Adobe Flash Player version 9 or above):
Balmoral Resources Ltd. (BAR, TSX) Update
We continue to keep a close eye on Balmoral Resources (BAR, TSX) which resumed drilling about three weeks ago at its Grasset Ni-Cu-PGE early-stage drilling discovery in Quebec…interestingly, after a downhole EM survey, BAR is targeting an anomaly nearly 400 m northwest of hole GR-14-17 in an untested area along strike from the known zone of mineralization…as reported by the company March 19, this anomaly demonstrates strong conductivity, considerable strike/depth extent and appears to be located at/near the base of the host ultramafic intrusion, the most favourable location for development of massive sulphides within the system…
Below is a 1-year weekly chart from John showing the next measured Fib. resistance at 91 cents…BAR is unchanged at 66 cents as of 9:45 am Pacific…
GoldQuest Mining Corp. (GQC, TSX-V) Update
Technically, GoldQuest Mining (GQC, TSX) is slowing gearing up for what could be a very strong second half of 2014…GQC is already up 26% for the year based on yesterday’s closing price of 31.5 cents…in February, the company launched an airborne ZTEM survey covering the large Tireo belt surrounding its Romero Gold-Copper Project, and a PEA for Romero is expected during this second quarter…this 2+ year weekly chart shows that buy pressure, while still weak, has replaced sell pressure which was dominant from late 2012 until early this year…
Canada Coal Inc. (CCK, TSX-V) Updated Chart
Canada Coal (CCK, TSX-V) is in a strong cash position and announced March 27 that it’s “actively evaluating new projects in both the resource and non-resource sectors.” That gave the share price a boost from 2.5 cents to a high of 8.5 cents where there is technical resistance as you can see in this 3-year weekly chart from John…a breakout above 8.5 cents would obviously be significant and that’s where CCK is trading (up half a penny) as of 9:45 am Pacific…
Note: John and Jon both hold share positions in GGI and DBV. Jon also holds share positions in PGX and CCK.
Jon what’s news about the drilling, can you talk about it ?
Comment by Guy Delisle — April 10, 2014 @ 9:21 am
Guy, DBV is drilling, as announced March 27. We’ve visited the drill site area but all core was covered up and there was no discussion of the ongoing program or anything outside the public domain, as per their procedures. Having said that, looking at the big picture of what’s unfolding at the Hat and throughout the district, am I as bullish as I was before coming up here? Even more so, actually. It helps immensely to get one’s boots on the ground and look at things from the air. Over the course of the next week or so I believe we’ll be able to effectively articulate, in ways we weren’t able to before, the importance of what’s developing in the Sheslay Valley and why this area needs to be on every investor’s radar screen. I am personally convinced more than ever that this is going to be massive play with several discoveries – the scale from the air is breathtaking, and we saw evidence of mineralization from the air all the way from AIX’s South Fork to beyond GGI’s Grizzly West. A study of the overall geology, geochem and geophysical signatures, and the 59 drill holes to date in the district, and the outcropping mineralization, all points to a series of parallel trends running through this district.
Comment by Jon - BMR — April 10, 2014 @ 9:45 am
appreciate comments on gbb mining agreement with iamgold….sounds great to me and perhaps a suitor for a takeover!!!
glta
Comment by natalie — April 10, 2014 @ 9:55 am
thanks Jon !
Comment by Guy Delisle — April 10, 2014 @ 10:21 am
GBB… time to sell off your inventory. Will go back to 4 cents or lower soon!
RBW, someone is colecting at 2.5 cents…. If you do not believe, try to put a sell lot at 2.5 cents.
Comment by Theodore — April 10, 2014 @ 10:57 am
“minerialization beyond the West of Grizly West ” ….That is where V.VVN Victory Ventures sits . They have a tight share structure @ .045 and will benefit from GGI this drill season . Victory also getting a subsidiary set up for Mary Jane participation ..Looks like a fun stock on the periphery of two stories ……………BMR thanks again for your body of work on Sheslay and other stuff ..
Comment by Fred — April 10, 2014 @ 12:54 pm
evidence of mineralization from the air all the way from AIX’s South Fork, Jon did Mr. Farshad and you discuss about their other property, the one sitting east of South Fork, he stake the Hat on the high %cu sample, did he tell you anything about why he stake that 2e property. must be a reasons :-), Be caruful of grizzly :-p
Bought some ggi this morning at 0.16$
Comment by Martin — April 10, 2014 @ 2:57 pm
Hi Martin, yes, you brought up a good point with DBV’s southern claims….there are some very good signs there but I have to review my notes on that for specifics……it’s also important to note that the Golden Bear mine road, which in most parts I saw is in very good shape (stretches for about 150 km, traveled by truck over parts of it), traverses through much of AIX’s South Fork block….huge advantage for them in terms of access and being able to keep exploration costs down.
Comment by Jon - BMR — April 10, 2014 @ 3:09 pm
Maps -> Canadian Projects Maps -> Grizzly Projects -> New Sheslay Valley District Map
Jon, have you noticed on this area map that there are 3 + recorded showings on the west side of north cap. Skating rush is propably not over yet
Comment by Martin — April 10, 2014 @ 3:21 pm
Yes, you’re right, Martin. What’s particularly interesting and important is how much of this district has not been systematically explored; being up here, I can see how there’s an excellent chance of some pleasant surprises well outside the main corridor identified to date running through the Grizzly, the Sheslay and the Hat. Keep in mind, also, that up until less than a year ago not even a single hole had been drilled into the Hat – just 6 holes in, they hit the margins of an alkalic porphyry system.
Comment by Jon - BMR — April 10, 2014 @ 7:03 pm
Jon. What was up with the late sell off late yesterday?
Comment by Tony T — April 11, 2014 @ 2:50 am
Late sell-off in what, Tony?
Comment by Jon - BMR — April 11, 2014 @ 4:04 am
Tony Is probably referring to someone dropping 262,000 ABR on the bid late in the session,
Jon, will you ask Mr. Farshad what he does think about the geology of Hackett ABR, Hackett North AIX and north cap east AIX wich seems to be on trend with his discovery.
Also further east on GGI hat, Romios, Ashburton east etc..
Have a nice day!
Martin
Comment by Martin — April 11, 2014 @ 4:30 am
Jon you’re up early (I guess its true; Money never sleeps :). With regards to my question, all the markets sold off late yesterday afternoon. You have any idea why?
Comment by Tony T — April 11, 2014 @ 5:00 am
It’s the U.S. “momentum” stocks in tech and biotech that are leading the way down, Tony, companies investors were chasing on revenue growth but aren’t showing bottom-line earnings growth…this sector got over-heated and how you’re seeing a correction…so we’re likely to see continued volatility for a while yet…Martin, with regard to ABR, if someone wants to be foolish enough to dump 262,500 shares at 5.5 cents late in the day to chase a medical marijuana play, if that’s what they were doing, so be it…you can walk to the Hackett from the DBV discovery holes in just a few short minutes…it’s right on trend with mineralization proven to go in that direction…it’s only a matter of time IMHO before ABR takes off in a big way…their IP and drill permit application is in the hands of the Ministry and I’m guessing they’ll have approval shortly…
Comment by Jon - BMR — April 11, 2014 @ 5:18 am