RE:Goldstorm and Perfect Storm resultsstockzorg wrote: They simply must go after that northeast area in a big way, since it could expand the size of Goldstorm significantly in the time they have remaining this year. The high gold grades are in the 300 horizon which could both expand the size and increase the grade of the open pit. My sense is that they will achieve the goal of converting Inferred to Measured for the open pit Au, which in my mind was the most important resource to target.
Ken Konkin’s decision to move his available drills is 100% in agreement. The market knows there are ounces and there are economic ounces and the economic ounces are the drivers. PSZ might well be a monster, but the grades and depths might be a bust or a bonanza. I wouldn’t bet the farm there just yet either. At Goldstorm they have a ripening economic mine model to build. Conclusion: Spend our resources getting a handle on the surprisingly expanding Goldstorm.
I’m surprised the latest NR has been received so mildly by the market price-wise, but then over the years it seems the best times to accumulate valuable exploration plays is in dull markets when NR’s of anything less than screaming blinking sirens of eureka fall with a thud to the floor. Surely this is all about broad market lack of commitment to precious metals following last year’s cresting price and the consolidation to date - which as others have pointed out is tracing out a massive technical pattern from 2011 if you believe in cups and handles and that they demonstrate a known market psychology or behaviour probable to repeat with a break-up price rise.
Today gold reacted to economic news with a positive gain and it trickled into the mining indices in a small way. Yeah, China’s slowing down because either supply chains are disrupted or American jobless and the petering-out of direct household Covid subsidy is slowing US consumers. And little glimmers of inflation continue to creep onwards - transitional disruptions, or has all that monetary accommodation. There are still some 17 million or so households whose jobs have not returned since the Wuhan mystery unfolded. And that is mimicked all through the G-10 - tourism, hospitality, entertainment, hotels, cruise lines, and then disruption in consumer durables. Talk to friends who have been renovating and trying to fixture or furnish ... a few quarters of not normal still ahead.
So what is the trading philosophy - growth malaise will continue to force the FED’s dovish stance, so systematic risk of persistent price inflation taking hold has more time to fester. Makes me think of the story of the Mississippi steamboat captain who got the cabin boy to sit on top of the relief valve to build a bigger head of steam ... an idea that ended with a Big Bang.
I wouldn’t be here if I didn’t like the long chart of gold from way back at its sub-$300 in 2002 or so to date. I don’t believe we have seen the blow-off buying and price rise that should signal the euphoric phase of a long bull market coming to a natural ripening end.
I would never be trumpeting $5000 gold but wow there is a lot more money sloshing around the world every year as this great experiment in monetary accommodation continues. The supersonic rise of crypto-currency market caps is an indicator. Block chain is a revolution, yada yada. It may be but if I pull the plug on my computer it’s kind of difficult to turn it into a bar tab, a tank of gas, or change jingling in my pocket. Gold still has simplicity, no counterparty, a long long shining resume.
Bullish. Do yer own dang DD, I could just be blowing smoke here. Nah, wouldn’t do that. But I could be dead wrong too. Not a billionaire through brilliant trading yet.
cg