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September 3, 2019

7 @ 7:00

Visit th BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,523 and $1,538 so far today…as of 7:00 am Pacific, bullion is up $13 an ounce at $1,541…the yellow metal enjoyed its biggest monthly gain in over 3 years in August as concerns about a slowdown in global growth and hopes for rate cuts by central banks worldwide boosted safe-haven bids…meanwhile, Silver continues to outpace Gold…it’s up 31 cents at $18.74 with a clear path to the $20 level…Nickel is steady at $8.16 after climbing as high as $8.50 yesterday in the wake of Indonesia’s announcement of a December halt to Nickel ore exports…Copper and Zinc are off slightly at $2.52 and $1.00, respectively, while Cobalt is unchanged at $14.29…Crude Oil has fallen $1.87 a barrel to $53.23 while the surging U.S. Dollar Index has hit a fresh 2+ year high, trading at 99.24…a high dollar will keep inflation muted and will give the Fed more flexibility in cutting rates…Japan said its manufacturers cut spending during the 2nd quarter for the first time in 2 years, adding to a series of recent data suggesting the U.S.-China trade fight is contributing to a dampening of the global economy…

2. Lots of reasons for Gold to maintain a strong bid, besides global central bank policies: Civil unrest continues in Hong Kong after another weekend of protesting…Hong Kong authorities are apparently considering declaring a state of emergency…the British pound fell to a 34-year low against the greenback today amid turmoil in the U.K. over the British exit from the European Union…the U.K. is set to leave the EU in October…new Prime Minister Boris Johnson is battling with his own party on the matter, as Johnson wants out of the EU next month with no more extensions to negotiate a “soft” Brexit…China over the weekend filed a complaint with the World Trade Organization against the U.S. and its tariffs imposed on China…this move appears to ratchet up the trade battle between the world’s 2 largest economies…the Chinese yuan dropped to an 11-year low against the U.S. dollar overnight, at near 7.2 to the dollar…the weaker yuan makes Chinese goods less expensive in U.S. dollar terms…

3. President Trump was playing hardball with China again today, pressuring its leadership to make a trade deal with the U.S. in the near future, warning talks will get much tougher if he is reelected in 2020…Trump said in a series of tweets, “We are doing very well in our negotiations with China.  While I am sure they would love to be dealing with a new administration so they could continue their practice of “ripoff USA”($600 B/year), 16 months PLUS is a long time to be hemorrhaging jobs and companies on a long-shot…And then, think what happens to China when I win.  Deal would get MUCH TOUGHER!  In the meantime, China’s Supply Chain will crumble and businesses, jobs and money will be gone!”

4. U.S. consumers, who power two-thirds of economic growth, remain in excellent shape but the the manufacturing sector continues to struggle…a just-released gauge of U.S. manufacturing from the Institute for Supply Management showed the sector contracted in August…the ISM manufacturing PMI declined to 49.1 in August, the lowest reading since January 2016…“Respondents expressed slightly more concern about U.S.-China trade turbulence, but trade remains the most significant issue, indicated by the strong contraction in new export orders,” stated Timothy Fiore, Chair of ISM Manufacturing Business Survey Committee…data from IHS Markit released earlier showed the U.S. manufacturing PMI slowed to 50.3 in August, its lowest level since September 2009“The August PMI indicates that U.S. manufacturers are enduring a torrid summer,” stated Chris Williamson, Chief Business Economist at IHS Markit“Output and order book indices are both among the lowest seen for a decade, indicating that manufacturing is likely to have again acted as a significant drag on the economy in the 3rd quarter, dampening GDP growth”

5. Bambang Gatot Ariyono (now that’s a name!), the director of Indonesia’s mining ministry for Coal and minerals, told reporters yesterday that the country’s ban on Nickel ore exports, to take effect in December, applies to all grades of Nickel ore and that all exporters should cancel contracts dated beyond the start of the new year…“We already exported 38 million tons up until July this year,” Bambang said at a Monday news conference…“At this rate, we would need to think about our reserves especially if we keep issuing exports permits”…most of Indonesia’s Nickel exports go to China, where they’re processed into a cheaper alternative to Nickel pig iron…the move will create a gap in the Nickel market of 100,000 tonnes a year, according to BMO Capital MarketsGoldman Sachs‘ analysts predict the export ban could drive up the Nickel price another 7% by the end of the year but that’s a very conservative outlook based on BMR charts that correctly called this initial major move past the $8 a pound mark…

6. The Dow has dipped 318 points through the first 30 minutes of trading to start the new month…in Toronto, the TSX is 41 points lower despite strength in Gold stocks while the Venture has added 3 points to 592 as it pushes above its 50-day SMA...Osisko Mining (OSK, TSX) has drilled 114 g/t Au over 2.8 m and 51.5 g/t Au over 2.8 m in 2 separate infill drill holes at Windfall…Score Media and Gaming (“theScore”SCR, TSX-V) keeps pushing higher…after a 74% gain in August, the stock is up another 9 cents at 82 cents as of 7:00 am Pacific as it attempts to conquer Fib. resistance at 80 cents…Great Bear Resources (GBR, TSX-V) was halted pre-market, pending news…Discovery Metals (DSV, TSX-V), a Mexico-based Silver play, has jumped 8 cents to 65 cents, overcoming resistance in the high 50’s…another Silver play with explosive potential for September is Canada Cobalt (CCW, TSX-V) in the rich Gowganda Silver/Cobalt Camp of Northern Ontario…CCW, up a penny at 31.5 cents in early trading, is now breaking out above a down channel in place since April…underground diamond drilling commences shortly at the Castle mine to follow up on high-grade results from Phase 1 that included 2,620 g/t Ag over a core length of 5.51 m…the company later announced that SGS was able to produce a high-purity Silver flotation Silver concentrate grading 18,486 g/t (529.17 ounces per tonne), significant to plans to process high-grade stamp mill tailings located just 300 m from Shaft #3Colorado Resources (CXO, TSX-V) has commenced exploration at its newly consolidated Castle Copper-Gold Property contiguous to GT Gold’s (GTT, TSX-V) Tatogga Project which includes the Saddle North and Saddle South deposits…CXO will carry out a 1,500-m drill program…

6. Probe Metals (PRB, TSX-V) has more than doubled its Gold resource at its Val-d’Or East Project to 866,300 Measured and Indicated ounces and 2.3 million Inferred ouncesDavid Palmer, President and CEO stated, “Our exploration programs have resulted in an impressive amount of growth, more than doubling our Gold resource…which positions the project as one of the top undeveloped Gold deposits in the Val-d’Or area.  The updated resource also highlights and confirms the potential of the area for continued growth and new discoveries.  We have now increased the number of individual deposits from 4 to 10, including 5 within the new 100%-owned Courvan Trend.  The majority of the increased resource was in pit-constrained ounces as the focus of the 20182019 programs was on shallow drilling.  In addition to future pit expansion, the deposits are all open below the conceptual pits and still have potential for substantial growth at depth.  With this updated resource I believe we have crossed a threshold and future programs will now include work on potential development scenarios in addition to resource growth.  Probe will continue to focus on unlocking value for our Investors at its Val-d’Or East Project and we are looking forward to the next phase of the project as we advance towards development”

7. Subdued Oil prices are punishing Saudi Arabia’s economy, threatening the kingdom’s foreign-investment push and curbing potential investor appetite for an Aramco IPO…Saudi officials have pulled back Oil production to less than 10 million barrels a day in an attempt to push Crude prices higher…but global trade tensions and burgeoning U.S. production have offset their actions…a median forecast of 10 economists predicts Saudi Arabia’s GDP will grow 1.4% this year, down from an estimate of 2.2% at the end of last year, according to FactSet…the health of the Saudi economy has become more important to global investors and government officials in recent years, as the kingdom opens its financial system to the outside world…a downturn could threaten its own investment activity, which has included big stakes in companies like Tesla (TSLA, NASDAQ), and temper investors’ enthusiasm at putting money into Saudi Arabia…

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  1. BMR, heard you’re one of the main authorities on GGI. They missed their deadline to report holes. Maybe news within the next week or so.

    Comment by Carla — September 3, 2019 @ 10:00 am

  2. Cobalt moving up to $16.10 http://www.infomine.com/investment/metal-prices/cobalt/1-year/

    Comment by AFchief — September 3, 2019 @ 11:04 am

  3. VSBLTY Groupe Technologies Corp VSBY(TSXV) halted.

    Comment by BCCOASTAL — September 3, 2019 @ 12:13 pm

  4. Carla, wrong, they didn’t miss any deadline to report holes. Last release did not state a specific time for release of next results but we can assume it is very close given the mention of turnaround times for August from SGS…

    Comment by Jon - BMR — September 3, 2019 @ 1:10 pm

  5. Looking fwd to that, BCCOASTAL.

    Nice close today for CCW on strong volume (800,000), confirming breakout above the down channel from April as Silver tops $19 and Cobalt hits its best level in 4+ months above $16…

    Comment by Jon - BMR — September 3, 2019 @ 1:24 pm


    Comment by BCCOASTAL — September 3, 2019 @ 1:49 pm

  7. Mr. Jon, more GGI SEDI filings with options for Steve R.

    Comment by Jean — September 3, 2019 @ 2:39 pm

  8. Excellent volume on CCW, hopefully it’s a sign that the tailings permit is close at hand as I think that’s what we need to bust through resistance at .32

    Comment by Danny — September 3, 2019 @ 2:50 pm

  9. Permit will take it thru .50, Danny…Silver now above $19 and Cobalt vaults past $16…underground drilling targets high-grade shoots; has been a long wait on Castle East but I’m confident we’ll see some pleasant surprises…

    Indonesian Nickel ore export ban is going to remove significant tonnes of Cobalt supply per year from the global market…combined with some production cuts recently announced elsewhere, Cobalt prices are firming…

    Comment by Jon - BMR — September 3, 2019 @ 3:25 pm

  10. Nice Contract For VSBY! Looks to be the start of many good things!

    Comment by buckshot — September 3, 2019 @ 3:36 pm

  11. CCW was pretty quiet today then someone at Mackie Capital decided to buy a whole lot of it. I pay a little more attention when I see big buys going through.

    Comment by Danny — September 3, 2019 @ 3:52 pm

  12. GBR is turning into a monster – maybe this story will help the Venture the most near-term followed by GGI soon-after? The market just understands gold so much easier than nickel…

    Comment by Jean — September 3, 2019 @ 4:03 pm

  13. Both will bring confidence back to the sector, Jean, because they’re both very real, and have shown how the junior resource sector can again be a source of massive wins (pennies to dollars per share)…investors and brokers will not be able to ignore that…

    Comment by Jon - BMR — September 3, 2019 @ 5:03 pm

  14. The amount of ANON buying in CCW was unusual today, Danny, and Mackie participation was significant – you always look for new participants in an upswing…this is the exact same technical pattern that arose immediately ahead of the last 3 surges in 2017 and 2018…those who ignore that will be chasing this at much higher prices very soon…

    Comment by Jon - BMR — September 3, 2019 @ 5:08 pm

  15. Jon: does this uptick in Cobalt price gets GEMC going again?

    Comment by MERIDEX — September 3, 2019 @ 5:29 pm

  16. That certainly would help, Meridex, but they need to get to drilling in Nevada…

    Comment by Jon - BMR — September 3, 2019 @ 5:31 pm

  17. Will have an update on 1911 (AUMB, TSX-V) soon. That’s a potential Great Bear style stock worth accumulating. Little to lose and lots to gain.

    Comment by Daniel - BMR — September 3, 2019 @ 6:33 pm

  18. Is CLM stilL worth accumulating?

    Comment by braedon — September 4, 2019 @ 10:52 am

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