August 17, 2010
Gold has been trading so far today between $1,222 on the low side and $1,230 on the high side…there is little doubt Gold is going to make another attempt at a new record high – the only question is when, and then the question will be can Gold get through resistance in the 1250′s and 1260′s and power higher to $1,300 or better and establish a new and higher trading range…given the action we’ve seen in the CDNX over the past 6 weeks, and the fact we’re entering a period of traditional seasonal strength for Gold, we’re in the camp that believes the yellow metal will shoot to approximately $1,350 before year-end…the CDNX is up 8 points to 1465 as of 8:30 am Pacific time…Gold Bullion Development (GBB, TSX-V) is up a penny to 53 cents….as the drills continue to turn at Granada, there’s one thing we can all be certain of – the eastern extension just keeps getting bigger…in Willoughby’s 1994 report on Granada that we obtained from the Quebec Ministry of Mines, he refers to the current Preliminary Block Model area and the current east-northeast extension that Gold Bullion is drilling and expanding as the “Mine Sequence” which is part of a well defined mineralized zone with a length of 2,000 metres…there are other well defined zones further east and elsewhere…we know from GBB’s July 29 news release that the distance between the western boundary of the Preliminary Block Model and GR-10-78 – the easternmost hole drilled by that time in Phase 2 which went to 350 metres vertical depth and intersected VG as well as “large” alteration and intrusive zones – is 900 metres…when Jim Slater boldly stated this is “massive tonnage” – that’s exactly what it is…low grade (comparable to Brett’s Hammond Reef, if not better) but massive tonnage in a deposit that just keeps pushing out to the east…at BMR, we’re always searching for Gold Bullion-type situations but they’re not easy to find (GBB is up 657% since we introduced it to our readers last December)…
