The technicals in play for gold and silver
Doc is with us today to shares his thoughts on why he invests in gold and the technicals he is watching. We also discuss silver and the gold stock ETF GDX.
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Cali, the daily doesn’t portend trouble but the weekly is very iffy. The monthly is not encouraging at this time either. With a pullback to the lower BB of the daily and I personally will take a small position. When the calendar turns in October the monthly should give a better clue directionally.
Doc – I appreciate hearing your macro thoughts on Gold as a currency, and then your outlook on the miners. Your insights are always appreciated sir.
My plays are DUST, UWTI, ECA, MRO. Down $2 to $4 per position total. Small hedge on with DWTI – down $34.
I think the next catalyst for gold and silver will be the disappointing earnings for the third quarter.With the weak numbers coming out for the economy,it is hard for me to believe the earnings will be much better.
I thought there was a chance gold might hold above $1340 on the SGE but it just dropped to $1339.90. Likewais Ag is under $20 now.
Likewise
Mexus adds new project and updates its shareholders on the Santa Elena mine
09/26/2016
“President Paul Thompson is happy to report that his recent visit to the Santa Elena mine was successful and confirmed that the project is still on track to be in production late October 2016….”
“The company also announced today that Mexus and its partner, MarMar, have a new Gold and Silver project called the San Marco mine.”
Off Topic,but a nice follow up to this past weekend’s discussion on Lithium.
Matamec creates a new Subsidiary Specializing in Properties with Key Elements for Technology Related to Energy.
http://www.marketwired.com/press-release/matamec-creates-new-subsidiary-specializing-properties-with-key-elements-technology-tsx-venture-mat-2161418.htm
Doc, Cory, let me get your take on the present positions in T/A of the $Gold chart.
The Aden sisters published the below article @ 321 gold in 2013. They have used the A – rise, B – decline, C – rise, D – decline model through the years.. If the D – decline going into 2015 was supposed to hit $1033 instead of $1045 should that have not been close enough? Are we now in a B – decline phase getting ready for the Big C- rise? It’s the closet example I can find. That has been a hell of an A rise off the 2015 lows, if I’m on the right track.
If this is the B – decline, there is going to be an astronomical C – Rise, when this B – decline subsides. The C- rise is the greatest part of the leg. The elections give them an excuse to throw the kitchen sink, but the market can also call their bluff. Does this current decline, match up chart wise with their template? If so, what would the expected bottom of this current B – Decline be? TIA
Keith Numeyer discusses the gold/silver ratio:
Neumeyer
My iPad is crawling slow today.
Where have the Aden sisters gone?
The Aden Sisters live in Costa Rico, publish the monthly Aden Forecast, do weekly updates and will be at the conference in New Orleans in October.
They will be at the New Lrleans Conference, Oct 25-29, 2016
Guess I was wrong that it was drill results that would be the next bit of news for Auryn.
http://www.aurynresources.com/news/auryn-options-banos-del-indio-gold-property-in-southern-peru
Wolfster – thanks for the follow up on Auryn.
Wolfster, you asked me over the weekend about Molybdenum, and I did post a few ideas there, but I just saw another company (Chinova Resources) with an interesting secondary Moly asset.
Merlin Project:
The Merlin Project is based on the world’s highest grade molybdenum and rhenium deposit, discovered by the Company in late 2008 with an initial Mineral Resource announced in mid-2009. The project has successfully progressed through the scoping, pre-feasibility and feasibility study phases. The key strengths of the project include the high-grade of the resource and relatively shallow depth, which results in a project with forecast strong long-term cash flows and substantial project returns.
I haven’t done much research into it yet and have been reviewing different Copper/Gold companies, but when I saw the Molybdenum comments it made me think of this weekend’s discussion – so I thought I’d mention it.
Thanks for the heads up
Interesting read
http://www.goldinvestmentletter.com/blog/
The hollowing out of Canadian mining
Vale’s takeover of Inco, 10 years on
Business News Network | about 11 hours ago
Metanor to move quickly with Barry start-up on positive PEA
22ND SEPTEMBER 2016 – BY: HENRY LAZENBY
Jaguar Mining Intercepts High-Grade Gold Mineralization at Pilar Gold Mine
Drill Results Gold Brazil
TORONTO, Sept. 26, 2016
Drilling Highlights and Key Intercepts
Underground definition drilling on the Pilar BFII ore body has returned significant high-grade mineralization. Key intercepts include:
Hole FSB552A – 17.40 g/t Au over 6.80 m (6.46 m ETW1);
Hole PPL325 – 7.73 g/t Au over 16.35 m (15.52 m ETW1);
Hole PPL326 – 24.19 g/t Au over 5.65 m (4.46 m ETW1);
Hole PPL363 – 23.95 g/t Au over 4.00 m (3.35 m ETW1); and
Hole PPL340 – 9.05 g/t Au over 7.90 m (6.24 m ETW1)
“Rodney Lamond, President and Chief Executive Officer of Jaguar, stated: “Today’s reported high-grade intercepts continue to confirm a strong mineralized system down-plunge of current Mineral Reserves at Pilar, in particular the high-grade intercepts related to the newly discovered BFII ore body. These results provide excellent potential for higher grades, the increase of Mineral Resources, and the conversion to reserves for mining at Pilar. Additionally, we have been very pleased with our operations at Pilar where our average grade has steadily increased and we are on track to achieve our production guidance for 2016.”
Avino Silver & Gold Mines Completes New Resource Estimate for Producing Property in Mexico
Reserves & Resources Mexico
VANCOUVER, Sept. 26, 2016
—-> At Gonzalo Mine:
A measured and indicated resource of 490,000 tonnes at an average grade of 250 g/t silver and 1.37 g/t gold totaling 5.1 million troy ounces of silver and 21.6 thousand troy ounces of gold using a cut-off grade of 125 g/t silver equivalent.
An inferred resource of 540,000 tonnes at an average grade of 314 g/t silver and 1.58 g/t gold totaling 5.4 million troy ounces of silver and 27.3 thousand troy ounces of gold using a cut-off grade of 125 g/t for silver equivalent.
Measured and indicated tonnage at San Gonzalo has increased by about 67%, while the inferred tonnage has decreased by 50% from the previous estimate. The lower inferred figure takes into account resource depletion from the mine’s operations since 2012.
—> The Avino Mine:
A measured and indicated resource of 1,450,000 tonnes at an average grade of 72 g/t silver, 0.34 g/t gold and 0.64% copper totaling 3.4 million troy ounces of silver, 18,551 troy ounces of gold and 9,350 tonnes copper using a cut-off grade of 55 g/t silver equivalent.
An inferred resource of 5,790,000 tonnes at an average grade of 81 g/t silver, 0.57 g/t gold and 0.58% copper totaling 15.1 million troy ounces of silver, 106 thousand troy ounces of gold and 33,600 tonnes of copper using a cut-off grade of 55 g/t silver equivalent
—-> Oxide Tailings:
An indicated silver resource of 1,330,000 tonnes at an average grade of 98 g/t silver and 0.46 g/t gold totaling 4.2 million troy ounces of silver and 19.8 thousand troy ounces of gold using a cut-off grade of 50 g/t silver equivalent.
An inferred resource of 1,810,000 tonnes at an average grade of 88 g/t silver and 0.44 g/t gold totaling 5.1 million troy ounces of silver and 25.6 thousand troy ounces of gold using a cut-off grade of 50 g/t for silver equivalent.
Good evening EX
I’m starting to consider NOT having Avino as a primary silver miner that I hold in my long-term PF. Why? the new silver grades are getting surprisingly low. What I do now, is to convert silver grades in terms of gold, and the gold equivalent (based on silver grades) of less than 5 grams/t do not really interest me. Don’t get me wrong, Avino is a solid company, but I’d rather have more shares in Alexco, Brixton, Excellon, Impact, and even Americas, before Avino. Eventually, it will be about getting high grades with 90% recovery and making a profit (think P/E, etc). Just my thoughts on balancing our silver PM holdings
Brian
Good thoughts Brian.
Yes it is very hard to go wrong with Alexco, Brixton, Excellon, Impact, and Americas Silver corp. I have positions in them as well (except Excellon, but it is on my short list).
I hold Avino for more of a stable and steady growth story, that I believe will grow into a respectable mid tier mining company over the next 2 years.
One of the things I like about Avino is their off-take agreement with Samsung, which underpins their projects. You are correct that their resource has never been the highest grade, but economics of the resource are more important that the actual grade. Brent Cook has made that point many times – there are very low grade resources that are simply more economic than some high-grade resources, due to their depth, site access, infrastructure, power requirements, how far does the ore need to be transported, etc… For example, Alexco has really high grade, but it is far more remote, and they have the Silver Wheaton and Sandstorm streams eating into any revenues they may generate, so that knocks the profitability back down some.
With Avino, I consider them a very well run “family business” that isn’t going to collapse or go out of business any time soon. Also, they keep extending the mine life on it even as they are mining it because most of their mountain of resources is not included in their official reserve estimates yet. As a result, I see where they have a fair amount of exploration upside around Avinio and San Gonzalo.
There is also the upside in costs and access to the ease of mining their old Oxide tailings to consider as well. Mining the old tailings will make it easier to drop their AISC when that is mixed in with the other ore in 2017-2022.
Lastly, the marketplace isn’t giving them any value for Bralorne yet, and that may be their high grade Gold/Silver surprise to the marketplace.
The Urban Barry is getting interesting.
Osisko mining is the big dog in the area,and I wouldn’t be surprised to see them make a play for Mentanor.
Beaufield is there and they should be releasing drill results pretty soon.
Bonterra did a 10,000 meter drill and they should be coming out with results soon.
Toma gold also has a property next to Osisko.
This is being toted as Quebec’s next gold camp.
With Osisko and Eric Sprott involved, this becomes a real nice “area” play. IMHO
Agreed. I’ve been following Metanor and Bonterra with interest, but haven’t really spent much time on Toma Gold. I’ll look into this a bit more closely. Do you have a good map of the area that outlines where some of their projects are laid out?
I’ll go check their corporate presentations, as they often will include maps as well.
Bought 4.4K SVCMF -1.6048
Silvercrest!!!
Here’s a pretty good map.
http://www.beaufield.com/wp-content/uploads/2016/08/Urban-map-July-2016.pdf
Perfect! You da man JohnK.
Wow, I never realized how strategic the Beaufield land package was.
I’ve never heard of Urbana either. Very cool. This is why I love good property maps.
Sorry About Urbana. Their latest drill intercepts were pretty weak,but still a pretty good location if they can come up with something.
Here’s Toma Gold’s property.
http://www.tomagoldcorp.com/documents/fr/t1024_urban_location.jpg
Thanks JohnK.
Some heavy insider buying in Exeter recently.
https://www.canadianinsider.com/company?menu_tickersearch=xrc
Doc, Can you share your technicals about XRA?