Dude- Where's My En Echelon?

From the news release, which nobody looked at. They just looked at the grade.

"The 188 Zone occurs in an area that has no historic drill holes or goldshowings and represents a potential en-echelon structural duplication of the main Bingo Zone. Follow up drilling is warranted to confirm the orientation of this new gold zone and to test its size and extent."

I find it amazing that the market would totally ignore the latest development in the Bingo mine, that a possible unknown en echelon deposit may be sitting waiting next to a mine already in development. No reaction whatsoever. The implication is that we have a potential deposit similar in size and geological disposition to the Bingo deposit. Why? Because geological factors make it so.

Of course, it will take a few drill holes to sort that out. The grades could vary, the size may be smaller, but the implication is that Bingo could double in size. A simple, direct comparison with the Seabee mine says that Bingo could contain twice as much as had already been mined out of Seabee in the last 17 years. So, if you're going to double in size from here, well, its just simple math.

Again, this is proof of concept, that the geology of the Bingo mine very closely resembles known deposits in the Val d'Or and Timmins greenstone belts.

http://www.mcq.org/roc/img_rm/jadis/3_1_1corn_vue_min_verti_gp.jpg

Weekly Analogous Gold Chart

The weekly gold chart shows there is a clear duplication of moves in price which resemble previous years. There is nothing unusual in the gold price moves so far. What we should expect at this point is a brief foray downwards, probably towards ~$1100/oz. and a sudden reversal upwards, setting in the bottom of this correction. Any diversion from this pattern should signal the onset of a parabolic move, but the only sign of a larger market participation in gold is that the RSI became very overbought, more so than previous years. For instance, should the gold price not take a breather and reverse, only to continue higher, it will be a surprise. Or, should the gold price collapse miserably here, that would also be a surprise.

But the downside now should be limited, which would confirm a higher average gold price.

Stockcharts.com

Gold/Silver Ratio

An inversion of the silver gold ratio will give you a chart which doesn't make much sense yet:

Stockcharts.com

An extremely important technical crossover of the weekly averages may be set to occur.

Bond Yields

The steepening yield curves and utterly absurd regulatory moves in the UK signal some serious problems are afoot in the sovereign debt markets. What we could see coming is the possibility that governments will move to whole-hearted, overwhelming Quantitative Easing. In an effort to stem the tide out of sovereign debt, governments will model their economic policy after Japanese policy moves and go to negative interest rates in a bid to control long bond interest rates. (Long bond interest rates went briefly as high as 200% in the U.S. during the long depression after the financial crisis of 1875.)

Such a policy move will have a positive risk benefit for gold, since its a metal, you simply don't apply a negative overnight interest rate to a tangible item. Note how short term rates have declined:

http://finance.yahoo.com/bonds

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