Thursday, July 21, 2011

Caledonia Mining Corporation (CALVF) Shares At Major Support Level

Caledonia Mining Corporation (CALVF) owns and operates the Blanket Gold Mine in Zimbabwe and is currently producing 40,000 ounces of gold annually.  Zimbabwe has thrown the entire mining sector into a scrambled mess by passing the indigenisation laws back in 2008 that require companies to transition their share ownership to 51 percent blacks.

Here is the news from yesterday:

HARARE -- The Zimbabwe government has thrown out all 175 indigenisation proposals it received from mining companies and promised to boot out any firms that do not meet the September 31 deadline to transfer majority stakes to blacks, Indigenisation and Empowerment Minister Saviour Kasukuwere said yesterday.

Under the controversial law, foreign-owned miners with operations in Zimbabwe must sell at least 51 percent shares to locals or face losing their assets. (source here)

Obviously this is nothing more than outright robbery and thuggery from a backwards nation, but the outcome is far from clear at the moment.

With all of this bad news, Caledonia Mining Corporation shares (CALVF) are trading down near a major support level around $.09 to $.10. (Nine to Ten cents).

The outcome of this mining threat from Zimbabwe officials will most likely have a massive effect on the price of CALVF common stock.  See weekly chart of CALVF below:

Clifton Mining Company Building Case To Test Fifty (Cents) Again Soon

When I posted "For Clifton Mining Company (CFTN) 50 is the MagiC NumbeR" I noted how important the line at $0.50 is for Clifton Mining Company share price.

Here is the chart I posted on May 29th, 2011:


Now take a look at the chart below which shows that Clifton Mining Stock (CFTN) is building a stairway of steps toward the 50 cent level.




With the weekly slow stochastic having gone into oversold territory and now turning back up, this may once be an opportunity for the share price to head back up from the current price of $0.33 to test the $0.50 level once again.  Only maybe this time it will actually break through.  If it does and if it holds above 50 cents, this would become a new level of massive support for Clifton to continue building upon.

Wednesday, July 20, 2011

Quick Charts Of CALVF and Silver

More bad news out of Zimbabwe as Zimbabwe spurns all mine plans. So the Zimbabwean government rejects all compliance plans made by foreign mining companies in line with the controversial indigenisation law. Caledonia shares are still under compression.




Silver shows a price target of $49 on the P and F Chart.

 Got Silver? Got Gold?

Clifton Mining Company (CFTN) Shares Gain 19% On Desert Hawk Gold Corp News

Shares of Clifton Mining Company surged ahead by 19% this morning as news that Desert Hawk Gold Corp.,   Clifton's joint venture partner is raising cash in a private placement.



Desert Hawk Gold Corp., based in SPOKANE, WA, has raised $75,000 of a $4,600,000 private offering. Desert Hawk Gold Corp. reported this private offering July 18, 2011 in an SEC Filing with the U.S. Securities and Exchange Commission (Form D).

Desert Hawk Gold Corp. has a new web site under construction here.  More information on Clifton Mining Company can be found at the company website here.

The Form D showing this transaction can be found here.

Monday, July 18, 2011

Caledonia Mining Corporation Shares Plunge Over 9% As Gold Price Surges

Shares of Caledonia Mining Corporation (CALVF) took a nose dive Monday even as Gold prices surged past $1600 per ounce.




Caledonia operates the Blanket Gold Mine in Zimbabwe and is currently producing over 40,000 ounce of gold annually.

With uncertainty about the Zimbabwe Indigenisation laws, Caledonia shares have remained undervalued compared to other gold mining companies.

Yesterday I asked Caledonia about the current state of Indigenisation and here is the response I received:

We have no feedback our plan.  We believe the minister for indigenisation is reviewing the existing regulations in light of overwhelming messages from various parties, including the world bank, that the current policies will kill the zim economy.  

New dawn is in a slightly different position to us in that their acquisition of CAG just over a year ago triggered an immediate indigenisation obligation.  I know that new dawn believes this immediate obligation does not arise because the deal was done at offshore holding co level, but I think This is a thin argument which will not work on the zim authorities.  

If it has taken over a year for the zim authorities to make no progress on new dawn, where they have a much better entry point, I would not expect any speedy action from the zimbos on other mining companies. They have not got their thinking right in that we believe they do not really know what they want to achieve from indigenisation and even if they did have well-marshalled thoughts, they do not have the administrative capacity to do very much very quickly.

In the meantime, we are concentrating on increasing production and controlling costs at blanket with a view to Rebuilding our treasury so that we have flexibility on our other assets, particularly in Zambia.

Kind regards

Mark Learmonth

I have been looking for Caledonia to move much higher in the short term as it breaks higher out of this wedge formation.



Is this the final shakeout of the weak hands in CALVF? Or is Caledonia going to continue to stay mired in political and economical uncertainty?

Gold And Silver Prices Surge. Gold Tops $1600/oz Silver Jumps Past $40

Silver and gold continued to climb higher on Monday morning as people across the world abandon inherently worthless FIAT currencies in search for real tangible money like gold and silver.




With the massive amount of paper and electronic FIAT money continually increasing, people are looking to be able to maintain their purchasing power and not have their wealth destroyed by the central bankers who keep giving the freshly printed money away to their buddies.

How high can these metals go?  How much worthless FIAT currency has been and will continue to be created?  How many worthless derivatives investments have been created?  As these bets fail, how many of the losing bets will continue to be covered by the American public via the Federal Reserve and more printing and borrowing of U.S. Dollars?

Got Silver? Got Gold?

Friday, July 15, 2011

Silver To Gold Ratio Putting In A Bottom?

Silver prices rose from $5 to $50 and then sold off sharply and violently down to $32 per ounce.  The Silver to gold ratio has been rising as money printing (QE) continues unabated.  Silver, being extremely volatile has outperformed gold to the upside and has underperformed gold on the downside.

Silver in terms of gold looks to be bottoming here and may be headed higher.  If this happens, gold and silver will rise but silver will rise faster than gold.

This has been the case throughout this bull market in hard money or silver and gold and should continue to be so as long as we continue in a bull market for the precious metals.

This should be expected due to the continued practice of QE by Big Helicopter Ben and of course those that tell him what to do.

Silver is poised to continue it's rise as more and more people move away from INHERENTLY WORTHLESS FIAT PAPER MONEY poor mans gold that will eventually be described as the investment of the century.

This chart shows that the Silver to Gold ratio looks ready to head higher with silver prices leading the wayl

For Caledonia Mining Company Is It Now Or Never (Part Deux)

Caledonia Mining Corporation (CALVF) owns and operates the Blanket Gold Mine in Zimbabwe and is now producing over 40,000 ounces of gold annually.

Caledonia is an African focused mining and exploration company with an operating gold mine in Zimbabwe, two platinum-nickel exploration projects in South Africa and a cobalt-copper exploration project in Zambia amongst its exploration portfolio in South Africa, Zimbabwe and Zambia.

Caledonia's share price has been hindered by the indigenisation law passed in Zimbabwe back in 2008. The uncertainty has created a possible opportunity to reap rewards in a company that many believe is being unfairly punished for this uncertainty.

If you take a look at this long term chart that I produced back on February 23, 2011, you will see that shares in Caledonia can be highly explosive to the upside. The caveat is that this has only happened twice ever in the history of Caledonia's stock (CALVF).

Both times when the stock price took off to the upside like a rocket ship, the technical setup had the same looks as it does right this second.

Here is the monthly chart from February 23, 2011:


Now I want you to take a look at this updated chart that I created today. Unfortunately, Big Charts has deleted about 10 years of the data that the previous chart contained, but that is ok, because this shortened view lets us zoom in to where we are precisely today.

What I have been waiting for is the slow stochastic to come back down from above the 80 level to under the 50 level. Then, if the previous patterns hold true, it will once again start heading back up to above the 80 level. But this time, the price will explode higher with it.

So take a look at where we are today and you will see that the slow stochastic has indeed come back down below the 50 level and is thus ready to turn higher again.

Here is the current monthly chart:


I just added to my CALVF position today as the chart is so compelling that I would be kicking myself forever if I did not have a suitable position to speculate in this Gold mining and base metal stock.

If history repeats itself, Caledonia's stock could rapidly appreciate by a magnitude of 10 to 100 times it's current price in a time period of 1 year or less.

With the price of Gold hitting all time highs in almost all fiat paper currencies and with Caledonia producing a significant amount of gold, this may be the perfect time to get into Caledonia and ride the CALVF rocket to extreme wealth.



Disclaimer
: I own stock in CALVF. I have owned it for many years. I bought more today. Caldedonia Mining is a penny stock which means it is highly risky, volatile and possibly illiquid. No one can predict the future with absolute certainty (but we can sure try).

Always consult with your financial adviser before making any investment decisions. Do not rely on a blog like Market Bust for your investing information. Do you own due diligence and invest accordingly.

Wednesday, July 13, 2011

For Caledonia Mining Is It Now Or Never?

With gold breaking out to new all time nominal highs in US$, my question becomes is it Now Or Never for CALVF?

I am reposting my favourite chart of Caledonia Mining Company and it shows that this may indeed by the moment of inflection I have been waiting for.

Here it is, now you decide.....

Monday, July 11, 2011

Huge Interest Rate Risk Says David Walker

David M. Walker (born 1951) served as United States Comptroller General from 1998 to 2008, and is now the Founder and CEO of the Comeback America Initiative.

When asked what would happen if we don't raise the debt ceiling on time, he says the U.S. would face huge risks that interest rates would rise and this could wreak financial damage in bond markets, stock markets and who knows what else.

The point he is making is do we really want to find out?

Saturday, July 9, 2011

Dust Storm Breaking News Now: Phoenix & Scottsdale Experiencing New Dust Storms

UPDATED 9:12 PM AZ TIME

I am in Scottsdale AZ right now and we are having another very DIRTY storm.  The difference this time though is this Dust Storm has some moisture.

It is raining off and on with LOTS OF DUST AND SOME MOISTURE........

Is this a part of AGW or GW ?

EDIT: UPDATE: 9:09 PM ARIZONA TIME:

This storm continues to drop dirty water in Scottsdale AZ, this is better than the previous dust storm because there is some moisture versus pure hot dirt last time.

Although, it is VERY DIRTY out RIGHT NOW and the rain has stopped.  The wind is blowing quite a bit.

EDIT: UPDATE: 9:22 PM ARIZONA TIME

This is kind of strange as it seems we are experiencing our own mini dust bowl.  This storm is not nearly as ominous as the first one (at least so far).

There is still wind here in Scottdale (North Phoenix), area.  There is still dirt in the air.  There is once again some rain mixed in with the dust.  That is much nicer plus the wind is slower.....

The national weather service issued a warning until 10:00 P.M. Mountain Standard time.