30 Month Weekly Chart Here:
http://www.flickr.com/photos/29681681@N06/5984073811/
It has drifted towards the bottom of the long-term trend channel bouncing nicely off the 50% Fib. line at $1.72. Looks to be re-testing the BO of the DT line (thin green line), but 50 wk MA which was the previous support point is now acting as resistance. Note the RSI (Brown Arrows) and how the 50 line was also a predictor of changing direction but now the stock is below that. This test of the UT channel is significant. But, that mild bearishness is offset by the drying up volume (Red Line, Arrow). A weekly close above $2.00 would be an excellent event. A close below $1.72 would be catastrophic.
Ta,
Comments for "Eric O's Favorite Gold Miners"
A couple of miles past Nighthawk Lake and BOOM! here we are in Timmins! The Pot O' Gold at the end of the Rainbow. Upwards of 70 million ounces of past production! Truly top shelf, world class stuff.
Historically, the action centered on the Big Three. The McIntyre, Hollinger, and Dome Mines. McIntyre was the first mine in Ontario to go deeper than 4000 feet. It ultimately went close to 7000 feet and produced 10.7 million ounces between 1912 and 1988. Only about a mile or so away was the Hollinger Mine. This one went about 6000 feet deep and outproduced them all at 19.3 million ounces (!) between 1910 and 1968. I was just reading an article that said in 1920 the Hollinger was the biggest gold mine in the entire British Empire. Quite an accomplishment when you consider the competition it must have had from South Africa and Australia! A champion of another sort is the Dome Mine. Starting in 1909, it has produced 17.1 million ounces, so far! The mighty Dome is still going!
All three of these historic mines, and 38,000 hectares of land around them, are now under the control of Goldcorp. Their production from the area as a whole is expected to be 265,000 ounces this year. I fished through the footnotes, and if my math is right, the mighty Dome is still kicking in 55,000 per year toward the total. Not bad for a mine that has been going for 102 years!
But it wasn't just these three. There were dozens of mines in the area. Several of them would be famous in their own right anywhere else. Past producers of 1, 2, even 5 million ounces get no respect in Timmins.
With Goldcorp locking up most of the best historic ground, what is a smaller explorer to do? Some try to get as close as they can to the Big Three. Some are looking over past producers along the Break to the northeast of the city. And some are plowing relatively new ground along the Break to the southwest. Nothing is very far away from anything else so it will probably work best to just list out the companies and try to get the lay of the land.
Lexam VG Gold is about as close to ground zero as you can get, with their propery line just a mile or so from the Dome. They have some ground that they own 100%, and some in JV's with Goldcorp and some with San Gold. Rob McEwen owns about 27% of this $160 million market cap company. Their main selling point, aside from location and McEwen, is that the old mines on their property did not go nearly as deep as the Big Three, therefore all the more potential yet to drill. Lexam will drill 70,000 meters in 2011.
Lake Shore Gold is making their bones both NE and SW of the city. Their mill is NE, most of their production is SW, and they have lots of gold resources in the ground on both ends. Hardly a month goes by without some really good drilling results being reported by Lake Shore, but actual mining is not quite so easy. The stock recently took a hit on reduced production guidance. Still, they expect to produce 90,000 for 2011, as compared to 43,500 for 2010. Market cap is now $880 million. Lake Shore's operations SW of Timmins almost constitute an area play of their own, with several juniors now crowing about how close they are to Lake Shore in that area.
Moneta Porcupine Mines got a mention in Part II, but they are also quite active in the Timmins area. Land to the NE, land to the SW, and also their Kayorum property which is very near the Hollinger. Market cap around $40 million. Personally, I think their Golden Highway Project from Part II justifies the market cap. I think you are getting the Timmins lottery tickets for free.
Explor Resources had several small properties along other parts of the Cadillac and Porcupine Breaks, but the one they spend all their time and money on is their Timmins Porcupine West property. It lies adjacent to Lake Shore in the SW, and right along the main fault line. Early drill results are encouraging. Market cap of $55 million.
Melkior Resources has projects spread across Canada. But one of them is nearby Lake Shore Gold in the SW area of Timmins and they make sure you know about it. Market cap of $20 million.
Temex Resource is earning 60% of the Whitney JV from Goldcorp. This property includes three past producers that accounted for a total of over 2 million ounces on the NE side of town. Market cap here is about $33 million.
One of our regulars from the Cadillac Break, Richmont Mines, has their Cripple Creek property not far from Lake Shore Gold in the SW area. They hit 74 g/t over 7 meters there in 2010. Still waiting to hear about plans for follow up drilling. Company wide production for Richmont is about 100,000 ounces and the market cap is about $245 million.
That about covers Timmins proper. One more interesting thing going on though. About 20 miles north of the highway, on another associated fault line, you'll find the Frankfield Project of Gowest Gold. They just updated their 43-101 resource calculation to report 1.2 million ounces of resources. Market cap right now stands at about $25 million.
Trying to get in on the area play action near Gowest is SGX Resources, who is 50/50 with San Gold on their adjacent Timmins North Deposit. They also have some land SW of the city near Lake Shore, and command a market cap of $18 million.
Wow, that about does it for me! This whole Road Trip has got me exhausted. I'll sleep well tonight, with visions of Gold dancing in my head.
I think it's time to check in to the Bon Aire Motel (hey, in-room coffee, ooohhh) and check out the Deluxe Suite with the "UltraBath Therapeutic Massage Tub". Ahhhhhhh..............
http://www.bonairtimmins.com/index.shtml
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