July 23, 2010
Gold’s chopiness continues which is no surprise…Gold got as high as $1,205 this morning but has pulled back and as of 8 am Pacific time it’s trading at $1,192, down $3 on the day…we expect Gold to make a decisive turn to the upside but not until sometime in August as seasonal strength begins to take hold…technically, Gold’s long-term uptrend remains very much intact and huge support exists between $1,140 and $1,180…the action in the CDNX is very encouraging and is confirming our view that 2004-style move is possible August through December…the similarity between the 2004 and 2010 CDNX charts is remarkable and is one of many clues that suggests the crash scenario that some pundits are pushing simply doesn’t add up…the CDNX is currently ahead 4 points to 1392 after a 23-point move yesterday on strong volume…Gold Bullion Development (GBB, TSX-V) is ahead 1.5 cents to 50 cents after the first hour-and-a-half of trading…we have done exhaustive research on Gold Bullion in addition to two site visits which explains our bullishness on this stock…our “big picture” view on the situation is very simple – the LONG Bars Zone is everything it has been made out to be and then some…we know that puts the reputation of BMR on the line but that’s how confident we are in this project…Granada is going to deliver…the company signaled its bullishness on Phase 2 drilling, we believe, through the tone and content of last week’s news release…some interesting core photos have also been posted on the GBB web site…in the important east-northeast area, which gives Gold Bullion its blue sky potential, Phase 2 drilling is intersecting multiple altered zones of favorable rock east, west, north and south of Phase 1 discovery hole GR-10-17…they are also hitting some visible gold as confirmed in the news release…mineralization, it appears, is being encountered near surface and now at depth as Phase 2 drilling in that area is going twice as deep as Phase 1…
