International Tower Hill Mine at a base camp

Jun 11th, 2010 – Comment

Right now the MACD isn’t signalling a change in momentum to the upside so you’ll have to be patient. Gold enjoys a period of seasonal strength from mid July to early October ,according to seasonality expert Brooke Thackray, so the waiting may soon be over.


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ITH

 

Lou,

I have followed your advice with keen interest for years and appreciate your insights, I’ve learned a lot. You have been bullish on gold for some time now, it appears ready for a breakout by this fall.

I am interested in your views on International Tower Hills Mines (ITH TSX ) trading at $6.67 today . It has been moving sideways since about March/April with what appears to be an ascending flag. Or is a longer view (since November/December 2009) that it has a reverse head and shoulders?

It is spinning out 2 smaller properties but appears to have good reserves and is in a very friendly & stable geopolitical environment (Alaska).

Merci,

Dan  from Sudbury

Avec Plaisir Dan,

You are correct my friend. I am on record calling for  gold going to $2,000 by 2015. But lets be clear that is by no means a guarantee that it will!!  International Tower Hill Mines Ltd. (ITH TSX) has an interesting opportunity at their Livengood gold project in Alaska and they have spun out their other assets into Corvus Gold so they can focus on that project. Shareholders will get one share of the new ITH and 1/2 a share of Corvus for every share of ITH they own. ITH will then become a pure play on Livengood. Lets get to the charts

ITH1

The three year chart tells the tale of a runner that is consolidating and building a base. What I see is a stock that has been trading in a range since October of 2009 and needs to break above resistance to reach new highs.

The move from the December 2008 lows provides a great example of a stock that doing exactly what you want.  It broke above resistance at $1.50, a golden cross formed in February of 2009 and from there it hugged and kissed its 50 day moving average all the way to the highs in December of 2009. Whats not to like?

The chart does seem to be generating a rising wedge pattern which is a bullish signal. The reverse head and shoulders you mentioned is not as well defined as you might want but its there.

 

ITH2

The six month chart provides an example of the current action and the range its been trading in tightening with resistance at $7.60 and support at $6.60. Best thing that could happen is that it continue to trade in this range till new information hits the wires. Right now the MACD isn’t signalling a change in momentum to the upside so you’ll have to be patient. Gold enjoys a period of seasonal strength from mid July to early October ,according to seasonality expert Brooke Thackray, so the waiting may soon be over. 

 

ITH intends to drill 65,000 meters this year to further define the scale of the deposit with resource updates planned for Q3 and Q4.  Livengood is forecast to produce 459,000 ounces over a 12.6 year mine life. The drilling scheduled for this year could change that forecast significantly.

MAKE IT A HUGE WORLD CUP AND HAPPY CAPITALISM!

Categories: Mining
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