In 2011 InterCitic Minerals Inc TSXICI OTCQX

first_imgIn 2011 Inter-Citic Minerals Inc. (TSX:ICI / OTCQX:ICMTF) has a CDN$6.3 million exploration program underway to include up to 25,000 meters of drilling and 10,000 meters of trenching. Inter-Citic’s 2011 exploration program is geared towards further resource growth on new areas of the property.With up to seven drills deployed, exploration in 2011 will continue in the Acadia, XP, and NR-1 Zones, as well as new work off the eastern end of the current Dachang Main Zone, where a gap between known mineralization extends for approximately 4 km under thicker overburden. On the far side of the gap soil geochemistry has shown a significant number of large gold soil anomalies in the South East Area Zone, which the Company believes is likely the continuation of the Dachang Main Zone mineralization not visible under the gap’s heavier soil cover.For the first time Inter-Citic will also be systematically drilling under the current resource area of the Dachang Main Zone (“DMZ”), which has only been drilled to a vertical depth of approximately 150 m from the surface. The Company will be testing the mineralized fault structure of the DMZ at depths of between 500 m and 750 m. For more information, please visit the website. Sponsor Advertisement I was more than impressed by the price action in the precious metal stocks yesterday…and I’m hoping that this is a trend that will continue.It was a nothing sort of trading day during the Far East and London markets on Thursday.  The low price tick came about half past lunchtime in London…and then edged slowly higher from there.This pastoral setting came to an abrupt end shortly after the equity markets opened in New York at 9:30 a.m. Eastern time…and an hour later, gold had gained about twenty bucks.  From there, the gold price worked its way another five bucks higher to its high tick of the day, which was $1,681.30 spot, but got sold off a bit shortly before the 1:30 p.m. Comex close.  The gold price traded quietly sideways from there.Gold closed at $1,675.30 spot…up $15.60 on the day.  Net volume was pretty light…around 121,000 contracts.The silver price action was much the same as gold’s, expect for the fact that silver gained well over two percent, whereas gold closed up less than a percent.Silver’s low came at the same time as gold’s…12:30 BST in London…and then shortly after 9:00 a.m. in New York, away it went to the upside.  The bulk of the gains were in by 10:40 a.m…but, like gold, the silver price continued to work its way slowly higher…and the high tick of the day also came at the same time as gold…about 1:25 p.m. Eastern.  That price was $32.71 spot.  From there, silver got sold off by a percent going into the close of electronic trading at 5:15 p.m. Eastern.Silver finished the Thursday trading session in New York at $32.38 spot…up 77 cents from Wednesday’s close.  Net volume was a pretty decent 37,000 contracts.The dollar index opened around 79.75 on Thursday morning in Tokyo…and held in there until minutes after 10:00 a.m. in London…and then it rolled over.  The low, around 79.20, came about 1:10 p.m. in New York.  From there the index recovered about 15 basis points of that decline…and the dollar index closed down about 40 basis points on the day.It’s obvious from the chart below, and the Kitco charts above, that the big jumps in gold and silver prices yesterday had absolutely nothing to do with what was going on in the currency markets.The gold stocks followed the gold price like a shadow yesterday, with the 1:25 p.m. high in gold being fairly obvious on the HUI chart below.  From there, the gold stocks traded sideways, but sold off a hair going into the close.  The HUI finished up a very respectable 3.90%.With the odd exception, the silver equities were on fire yesterday…and Nick Laird’s Silver Sentiment Index rose by 3.86%.  A lot of the juniors did much better than that.(Click on image to enlarge)The CME’s Daily Delivery Report finally showed what I had been waiting for, for many days now.  As I’d mentioned last weekend, there were still about 3,300 gold contracts left open in the April delivery month…and I was wondering out loud what the short/issuers were waiting for.  Well, some of them showed up yesterday, as 1,040 contracts were posted for delivery on Monday.The two big short/issuers were Merrill and the Bank of Nova Scotia…with 636 and 385 contracts respectively.  The big long/stopper was no surprise, as it was JPMorgan taking delivery of 592 contracts in its client account…along with 415 contracts for its in-house trading account.There were no deliveries in silver. The link to the Issuers and Stoppers Report is here…and it’s worth a look.There were no reported changes in GLD yesterday…and an authorized participant withdrew 242,736 troy ounces of silver out of SLV.The U.S. Mint reported selling 43,000 silver eagles yesterday…and that was it.There was a lot of movement over at the Comex-approved depositories on Wednesday.  They received 1,002,039 troy ounces of silver…and shipped a smallish 76,190 troy ounces out the door.  The link to that action is here.Nick Laird sent me a couple of graphs and some commentary to go with them about midnight local time here in Edmonton last night…and here it all is.“Again it looks like the PMs are bottoming here. (There’s a clear A-B-C-D-E pattern in the waves.)What’s missing so far on this wave down (which could be considered a retest of the bottom made at end of Dec 2011) is a panic V-shaped sell-off which is quite normal in the metals.Bernanke stopped the breakout in late February and perhaps he has put an end to the price seeking a low here considering that the pressure is now back on for more QE.”(Click on image to enlarge)I got an e-mail from Bron Suchecki over at The Perth Mint just before I hit the ‘send’ button on today’s column…and I thought I’d stick his comments in at this point.  It appears that Gold Field Mineral Services [GFMS] is calling for miners to return to hedging, which Bron thought “very irresponsible”.  It’s not only irresponsible, it’s insanity…and I’ll be very much surprised if the gold and silver miners ever go down that road again.  But knowing the intellect level of some of the management of these companies, I suppose that I shouldn’t put anything past them.Bron told me to check the story about it that he had attached…but there was no attachment and I couldn’t find it using my computer’s search engine.  It’s after 5:00 p.m. on Friday afternoon in Perth, so he’s already gone for weekend…however I’m sure the story will show up on the Internet at some point today.I have the usual number of stories today…and I hope you have time to at least hit the high points.People demand freedom of speech as a compensation for the freedom of thought…which they seldom use. – Søren KierkegaardIt’s not possible to tell whether yesterday’s rallies, like the rallies on Tuesday, were short covering or new long positions being placed.  There was more talk yesterday about U.S. interest rates remaining low into the latter part of 2014…or even into 2015.  As I mentioned further up, it’s highly improbable that interest rates will ever be allowed to rise again…and one only has to look at Japan as a template for the future path of long-term interest rates in every other country on Planet Earth.Ted Butler mentioned yesterday that gold had convincingly broken through one of its key moving averages…the 20-day.  Here’s the graph to prove that was the case.  The next target will obviously be the 50-day moving average, which is a hair under the $1,700 mark.(Click on image to enlarge)Silver also poked its nose above the same moving average, but just barely.(Click on image to enlarge)Where we go from here price wise is anyone’s guess, but I’m voting for up.It was deathly quiet in both volume and price in gold and silver during Far East and early London trading.  Net volume in both metals was down substantially from Thursday’s volume at this time yesterday.  If volume continues this light, I wouldn’t read a thing into whatever price action occurs between now and the New York open.  And as I hit the ‘send’ button at 5:20 a.m. Eastern time, gold is down about four dollars…and silver is down about 20 cents. The dollar index is up 18 basis points.Since today is “Friday the 13th”…nothing would surprise me as far a price action goes once trading begins on the Comex at 8:20 a.m. Eastern time.  After the drive-by shooting on February 29th, I’ve become a little more gun shy about calendar dates.  I think I’ll take one of those blue pills before I hit the sack.I would like to believe that the bottom is in for this move down.  I was more than impressed by the price action in the precious metal stocks yesterday…and I’m hoping that this is a trend that will continue, as they are horribly oversold, with the emphasis on horribly.  The quality gold and silver producers are marked down to fire sale price levels.There’s still the opportunity to either readjust your portfolio, or get fully invested in the continuing major up-leg of this bull market in both silver and gold…and I respectfully suggest that you take a trial subscription to either Casey Research’s International Speculator [junior gold and silver exploration companies], or BIG GOLD [large producers], with all our best (and current) recommendations…as well as the archives. Don’t forget that our 90-day guarantee of satisfaction is in effect for both publications.Have a great weekend…and I’ll see you here on Saturday.last_img