₪ David Pescod's Late Edition November 24, 2006
GOLD $645.50 +10.10
SILVER $13.228 -0.072
ENDEAVOUR SILVER (T-EDR) $4.91 +0.41
IMPACT SILVER (V-IPT) $1.60 +0.14
SILVERCREST MINES (V-SVL) $1.14 +0.14
There’s been little joy for the gold bugs ever since gold
peaked at above $700 way back in May. In fact, it’s been
downright ugly with the correction in the precious metal
stocks. But today we have dramatic changes as the
American dollar takes it on the chin and gold is flying, up
more than $10.00.
Technically and even better looking than gold is that of
silver, which looks like it’s breaking out. There are some
huge moves in the junior and senior silver stocks today.
Whether this means silver is going to break out and
attack old time highs, is open to debate, but for the first
time in ages, there’s green on the screen big-time for
some of the silver players.
When we talk to Eric Coffin of the Hard Rock Analyst
today and ask him if he could only buy one silver stock,
which would it be?
He suggests Silvercrest Mines because of the potential
for their two different projects to deliver an additional ten
to 20 million ounces in resources.
Meanwhile, with silver running Canaccord mining analyst
Wendell Zerb suggests you take a look at one of his
favorite silvers, Minco Silver (MSV), and Eric Zaunscherb
of Raymond James suggests taking a look at MAG Silver
(MAG).
RAINY RIVER RESOURCES (V-RR) $5.62 +0.12
Don Moore is (you probably guessed it) the head man in
the Don Moore Group of Companies which includes Playfair
Mining (PLY), the tungsten explorer with the Risby Project in
the Yukon and the Grey River project in Newfoundland, as
well as Nova Uranium (NUC), with its Mont Laurier uranium
project in Quebec and news delayed yet again, but expected
out in two weeks.
They also run Rupert Resources (RUP) and Kermode Resources
(KLM). All said, Moore does travel in a lot of the
right circles and has access to people with some interesting
geological opinions, but we check out his stock picking
track record and shall we say, it’s mixed.
He was one of the big believers in Virginia Gold back in
2005 and it tripled and quadrupled after we quoted him as
saying “people should have it.” Not a bad pick at all. Last
year however, he suggested Wolfden (WLF) and its dropped
50%. That’s a bit of a mixed track record.
Okay, Mr. Moore, so let the people know if you are a gifted
stock picker...or not. What should a person be watching
now? Rainy River is his answer and he suggests that drilling
results to date have been spectacular and he wonders if it’s
not a “Hemlo-scale” discovery that they are currently working
on.
If you notice some of the more recent drilling results, it
would have to be described as spectacular—23 meters grading
10 grams gold as well as 7 1/2 meters grading 2.4 grams
gold. The chart tells you that people are starting to pay
higher prices for it and the volume tells you that people are
starting to pay attention.
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