Charts of Interest

Some interesting charts.


Comments: SLW looks like it's getting ready to break out. SLW recently announced the acquisition of two new silver streams, including all of the silver produced from the Stratoni mine in northern Greece operated by Hellas Gold S.A. a majority owned subsidiary of European Goldfields for $57.5 million and, more importantly, 25% of the life of mine silver production from Goldcorp’s Peñasquito Project, located in Zacatecas, Mexico, for $485 million.



Comments: This company continues to issue press releases that are little more than fluff, at an alarming rate. Nevertheless, it is at around support at $5. Further support appears at around $4.50. Jim Sinclair wants a partnership with the Chinese regarding the Kigosi nickel exploration project. But the recent terrorist strike on a Chinese oil exploration base in nearby Ethiopia, which resulted in the killing of 65 Ethiopians, 9 Chinese and the kidnapping of 7 other Chinese, is hardly wonderful PR for Chinese resource projects in the Horn of Africa. Needless, to say, the attack didn't get any airtime whatsoever on JS's Mineset.com since JS's Mineset.com policy seems to be not to comment whatsoever on what is happening in the Horn of Africa region.

Comments: I predicted in late February, that the price target for GSS's breakout would be $4.90. I was only 5 cents off as GSS skied to $4.95 before selling off. After GSS's great run up, it appears that GSS is trying to find a bottom on its consolidation. I think around $4.25 and just below $4.00 are two areas where GSS could see support, assuming that Gold continues to sell off.

Tom recently gave the following, fairly exciting, update about GSS.

"Between now and May 10th I expect to see the following news released in either PR's or on the Q1 CC:

1) Commissioning of Biox.

2) A full month of Biox recovery rates and production numbers from Module #1.

3) The feasibility study from Hwini-Butre / Benso.

4) BoD approval of the above mentioned project. This is extremely important to the Wassa mill, as the blending of the new ore with the existing feedstock will increase production from 110,000 ounces to 200,000 per annum.

5) Possibly an increase in reserves as a result of the drilling programs there. If they do include the reserves, it should be very substantial."

Tom also provides the following update regarding the energy crisis in Ghana:

"The power problem is still there, but it is improving IMO. I monitor 14 sites in Ghana and Burkina Faso that feed the Akosombo Reservoir. The drought is over and the rains are increasing. Every week a handfull of the areas have between 1" and 5" of rain. In the meantime, the government is installing emergency generating units as fast as they can. The bottom line as I see it, is that for the remainder of Q2 GSS will be operating at a 75% power allocation, plus whatever they choose to produce themselves from their own diesel units. These units can potentially supply them with 30% of their total power, but are extremely expensive and difficult to keep running. Q2 should be profitable, but only by $.03-.04 as best I can tell at this point."

Tom predicted the imminent breakout of GSS in early November, commenting at that time on a press release ""Game winning home run in the bottom of the 9th!" At first, GSS didn't do anything particularly interesting, but within a few weeks after Tom's comments, GSS started to skyrocket on its way to a 66% gain.

In light of the foregoing, I think it would be a good idea to buy up GSS on this pullback. I already made a couple of buys.

Comments: AEM is close to support. A breakout of the slightly declining (bullish) wedge would lead to a rally of about +$8.