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7 @ 7:00 - BullMarketRun.com

September 5, 2019

7 @ 7:00

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1. Gold has traded between $1,524 and $1,551 so far today…as of 7:00 am Pacific, bullion has retreated $24 an ounce to $1,534 following the announcement of a planned resumption of U.S.-China trade talks and better-than-expected U.S. jobs data from private payrolls company ADP (195,000 jobs were created in August vs. the consensus estimate of 148,000 – not exactly the sign of an economy going into a recession)…August saw the 3rd straight month of strong gains in Gold-backed ETFs and similar products after hitting a 6-year high in July, according to data released this morning by the World Gold Council (WGC)…Global Gold-backed ETFs reported a net inflow of $6 billion last month as total holdings rose by 122 tonnes to 2,733 tonnes, just 59 tonnes shy of the 2012 all-time high when Gold prices were trading at $1,665 an ounce…Silver has slipped 39 cents to $19.18…Nickel has pulled back 21 cents to $7.96 in healthy profit taking…Indonesia’s ban on Nickel ore exports could boost the country’s earnings from the metal 5-fold in the next 5 years through growth in industries such as stainless steel and battery materials, a minister said yesterday…Luhut Pandjaitan, a coordinating minister overseeing mining, said Nickel-related export earnings will surge from last year’s $5.8 billion, with investment in processing pouring into the Nickel-rich region of Morowali in Central Sulawesi province…Indonesian authorities have expressed hopes that Nickel-related industries such as the production of stainless steel and battery materials will grow to become one of the country’s main industries, overshadowing current top commodity palm oil in 10 to 15 years…Pandjaitan said the current investment pipeline showed that as much as $30 billion could be spent on Nickel processing in the Morowali region to 2024…that includes a $billion Lithium battery project by several companies, including Contemporary Amperex Technology which supplies batteries for carmakers like Volkswagen, Mercedes and Tesla, the minister said, noting this will either by early next year at the latest…Copper has edged up 3 cents to $2.61 while Zinc is up another penny at $1.06…Cobalt is steady at $16.10…Crude Oil has added 43 cents a barrel to $56.69 while the U.S. Dollar Index has fallen one-third of a point to 98.13…the NFL’s 100th season kicks off tonight in a matchup between the league’s oldest rivals as the Chicago Bears host the Green Bay Packers…

2. Chinese and American officials plan to hold trade talks in Washington in early October, a new attempt to tame a trade battle that is rippling through the global economy…Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke by phone late yesterday and agreed to meet next month for high-level trade talks, state-run China Central Television said…the U.S. side confirmed the phone call and said a high-level meeting would take place in Washington in the coming weeks…both sides said deputy-level officials would work together in mid-September to lay the groundwork…plans to meet in person come as each side ramps up punitive tariffs on the other…expectations for a breakthrough in trade talks are low…neither Beijing nor Washington specified a start date for the talks, which would be the 13th round in a series of on-and-off again negotiations that began in January, after the U.S. initially agreed to hold off on further tariffs to try to reach a trade deal…

3. It will not be long before the spread of negative interest rates reaches the U.S., former Federal Reserve Chairman Alan Greenspan told CNBC in an interview yesterday…“You’re seeing it pretty much throughout the world.  It’s only a matter of time before it’s more in the United States,” adding investors should watch the 30-year Treasury yield…the 30-year U.S. rate traded at 1.95% midday yesterday but has pushed back above 2% today…it reached an all-time low last week…there are currently more than $16 trillion in negative-yielding debt instruments around the world as central banks try to ease monetary conditions to sustain the global economic expansion…the 10-year sovereign bonds in Belgium, Germany, France and Japan – among others – are trading with a negative rate…U.S. Treasury yields are still well within positive territory, but the Fed has already cut rates once this year and is expected to ease again later this month…market expectations for a rate cut September 18 are at 92.7%, according to the CME Group’s FedWatch tool…

4. After hitting record highs in multiple currencies including the euro, British pound and the Canadian dollar, Gold could be ready for new record highs in U.S. dollar terms, according to Bloomberg Intelligence (BI)…Gold prices enjoyed a stellar August, with the metal hitting new all-time highs in various currencies as well as reaching fresh 6-year highs in U.S. dollars…“Dollar-denominated Gold is likely to follow all-time highs in euro terms reached August 26.  Despite the trade-weighted broad dollar rallying about 10% since the start of 2018, dollar-valued Gold has increased 15%…trade tension and diminishing macroeconomic conditions have been drivers, but increasing stock-market volatility is a primary Gold price support,” BI senior commodity strategist Mike McGlone wrote…he added that precious metals are on a very solid footing and are likely just beginning their upward ascension…“We expect precious metals to remain the stalwart sector, as moribund Silver and Platinum gain buoyancy with the rising Gold and bond price tide.  A catalyst to reverse the entrenched trends, namely a definitive U.S.-China trade accord, is unlikely”

5. The Dow has soared 415 points as of 7:00 am Pacific on encouraging economic data and U.S.-China trade newsin Toronto, the TSX is 101 points higher, held black by a lower Gold Index, while the Venture has slipped 3 points to 590Compass Gold (CVB, TSX-V) is an early price and volume leader on the Venture, up 13 cents at 38 cents after announcing 6.1 m grading 65.6 g/t Au from 19.5 m in diamond drilling at its Farabakoura artisanal workings on the Ouassada permit (Sikasso Property) in southern Mali…Canada Cobalt (CCW, TSX-V) and Benchmark Metals (BNCH, TSX-V) continue to power forward with momentum…CCW, up half a penny at 33 cents as volume accelerates, is preparing for the start of Phase 2 underground drilling at the high-grade Castle Silver-Cobalt mine in the coming days as site activity is ramping up in advance of the planned start of a Silver tailings program…Benchmark Metals (BNCH, TSX-V) is carrying out an aggressive drill program at its high-grade Lawyers Gold-Silver Project in north-central B.C. and has pushed past key Fib. resistance at 40 cents…Nighthawk Gold (NHK, TSX) released results this morning for 9 more drill holes at its Indin Lake Gold Property in the Northwest Territories…Colomac Zone 1.5 hole C1917 tested an area 70 m south of C1908 (Colomac’s best intercept to-date), returning 58.50 m of 1.93 g/t Au (32 m true width), including 13.55 m of 4.6 g/t…

6. Five of the craziest lines from last night’s CNN Democratic debates on the “Climate Change Crisis”: 1) Kamala Harris said that, as President, she would direct the Department of Justice to go after Oil and gas companies “who have already directly impacted global warming.  They are causing harm and death in communities.  And there has been no accountability”; 2) Juan Castro supports “new civil rights legislation” to address “environmental racism” – minority communities, he says, facing the brunt of the climate crisis…the suggestion, of course, is that if you oppose the Democrats’ idea of “climate change” you are a racist; 3Andrew Yang said that if he’s elected President, he’ll eliminate GDP as a measure of national success and replace it with a system that includes environmental factors…“Let’s upgrade it with a new score card that includes our environmental sustainability and our goals,” he said; 4) Elizabeth Warren said that conversations around regulating light bulbs, banning plastic straws and cutting down on red meat are exactly what the fossil fuel industry wants people focused on as a way to distract from their impact on “climate change”; 5) Pete Buttigieg said that successfully combating “climate change” might be “more challenging than winning World War II”

7. More Trans Mountain pipeline expansion delays are not of the question…Justice David Stratas of the Federal Court of Appeal has decided to allow 6 of the 12 motions for judicial review of the federal government’s 2nd approval of the pipeline expansion…Stratas allowed the motions on the narrow grounds that it is arguable that mandated requirements for Indigenous and First Nations consultation still have not been met…he grants that there was additional consultation (August 2018 to June 2019), notes that Indigenous groups deemed it insufficient, and, critically, notes further that the federal government took no position at all…while First Nations groups filed objections to the new consultation process “consisting of many thousands of detailed pages,” the federal government, “including the Attorney General of Canada representing the Government of Canada, took no position for or against” the motions…”they offered no submissions or evidence to assist the Court”, Justice Stratas addedhow bizarre is that, but coming from the Trudeau team nothing should be considered bizarre...of course when 1 side doesn’t show up, the other gets to have their say…so there will be reviews…Justice Stratas has ordered that they be narrowly focused on the specific issue of whether the new consultations were sufficient, and wants the review completed “very quickly”, citing “substantial public interest” in a rapid conclusion…

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  1. Mr. Jon, someone on CEO posted some photos of GGI hole #53 that look remarkably close to some VB holes. I sure hope Steve R. wants to get news out. We keep hearing days away but that was also last week. Any opinions? You really thinks labs are taking a bit longer or perhaps they have more things they want added than originally planned?

    Comment by Jean — September 5, 2019 @ 7:29 am

  2. Is it fair to say there is a delay in the GGI news release? Any thoughts would be appreciated.

    Comment by Labrador — September 5, 2019 @ 11:30 am

  3. 9 Minute Interview with the VSBY CEO Jay Hutton breaking down the newest VSBY $10 million contract – https://www.investorideas.com/Audio/Podcasts/2019/090319-AI-Eye-VSBLTY.mp3

    Comment by Buckshot — September 5, 2019 @ 2:59 pm

  4. Great video CLM

    Comment by Weatheritout80 — September 6, 2019 @ 7:07 am

  5. Whoop t do, 81k jobs and 57 k of them part time, yup honey let’s get out there and buy a house,, with the federal governments help,, really? Ya don’t want the government owning part of your house!! What a laugh!!!

    Comment by Laddy — September 6, 2019 @ 7:12 am

  6. Well, been awhile since GGI chart looked this good and primed for a big breakout – come on Steve. let’s see #53.

    Comment by Jean — September 6, 2019 @ 8:13 am

  7. Jon…Good news from MTS and yet up .07 on only 7000 shares traded on a few small exchanges but no trades on the Venture yet. Bit confused. It’s early in the day , and a lot can happen especially on a Friday but I will be totally miffed if we get no news from CCW or GGI today???

    Comment by Dgambler — September 6, 2019 @ 9:45 am

  8. Yes, it’s rare to see something like that, Weatheritout80…really well done…the potential for a concentration of metals (high-grade Copper + Gold and some other metals), a smaller tonnage but higher grade deposit, on the flanks of what appears to be a very large porphyry system is what excites Dr. Lightfoot and others about Burgundy in terms of economics…the limestone unit is the key feature that makes a high-grade system possible…Burgundy is exciting (brand new discovery, never previously diamond drilled) but what CLM has to focus on more, and I believe they will, is the high-grade Gold Corridor (we’re in a hot Gold and Silver market) which has huge scale to it and the opportunity for deposits that are larger and even higher grade than the historic Northwest zone…the Gold-bearing McLymont Fault structure is 20 km long – it is massive and along the scale of what Great Bear is having success with in the Red Lake district…we know from the history of the Eskay Camp that where these initial deposits are defined, such as at the Northwest Zone, there is something bigger and of even better grade adjacent to it somewhere…in the case of Silver Standard and the Japanese at Nickel Mtn, they missed the best Nickel grades in the world by only 100 meters…the high-grade motherlode at Brucejack was also initially missed by only hundreds of meters…back in the day, prospectors were camping out right on top of it and they didn’t even know…the Gold story for CLM has phenomenal potential…a little less porphyry talk and much more high-grade Gold talk with some results on that front is what could really light a fire under the stock…

    Comment by Jon - BMR — September 6, 2019 @ 9:57 am

  9. Dgambler, MTS is on the right track at Kirkham but they do need to do more to drive liquidity in the market…only about 8 sessions the last 3 months with volume above 100,000 shares…I do see activity picking up this month, however, with drilling now in progress and the district in general getting into stronger news flow…

    With hole 53, GGI will make sure they get it just right…my guess is we’ll hear from them anytime between today and early-mid next week…

    CCW is on steroids again at Castle and what’s going to unfold there during this new Silver bull market will make last year look like a tea party…lining up a site visit for this month…environmentally friendly high-grade Silver tailings program with total First Nations support…doesn’t get much better than that…template for the entire Northern Ontario Silver-Cobalt Camp…plus a whole lot of other stuff going on…

    Comment by Jon - BMR — September 6, 2019 @ 10:11 am

  10. As you said there is no liquidity with MTS . With a 50 day AV of 36,000 and a 10 day AV of 10,000 says to me that they need a whole lot of work to do on the promotion end of things. You have to get the message out there. Everything sounds great with GGI and CCW but the long wait for something to happen is getting longer than most were expecting I think. I know it’s not “if” but “when”.

    Comment by Dgambler — September 6, 2019 @ 10:29 am

  11. MTS – up 10% now – low volume exacerbates the swings both ways, since this puppy has less than 40MM FD shares out They should have core into the labs soon one would think since the drilling is well underway.

    Comment by david — September 6, 2019 @ 10:30 am

  12. What you’ve really got to like here, David, is the extensive surface work that has been completed – reported this morning – that outlines an area 1 km long x 300 m wide, open for expansion, prospective for a high-grade Gold system…following up on a 137 g/tonne intercept starting just 60 or so m downhole…they are chasing that high-grade Gold and the positive effects are going to show up in the share price…Thunder North (Nickel) is also very much in play and will become more in focus shortly after GGI reports hole 53…

    MTS chart looks very encouraging with the move off the 50-day SMA…

    Comment by Jon - BMR — September 6, 2019 @ 10:37 am

  13. What changed with your opinion on Burgundy Jon. On the July 23rd alert you were super bullish on Burgundy stating that would be the catalyst. Market conditions or drilling not as exciting as you hoped?

    Comment by Weatheritout80 — September 6, 2019 @ 12:35 pm

  14. My opinion regarding Burgundy hasn’t changed at all, Weatheritout – the rocks are hot…but a couple things to consider here: 1) There are two ways to look at Burgundy and approach it. What excites me most is its high-grade potential, the possibility of a Copper-rich deposit with Gold and other metals concentrated in such a way (on the flanks of a porphyry) that could allow for profitable economic extraction. Grade is King – Mr. Market wants grade; 2) The other thing going on here is that Burgundy Ridge appears to be part of what could be a very large new porphyry system. That’s more exciting from a geological standpoint than a market standpoint at the moment, given that the Copper price is still struggling. CLM’s news release this week put a lot of emphasis on the porphyry part which Mr. Market is less interested in than the high-grade angle which is what we’re most focussed on.

    Looking at the bigger picture of the huge Newmont Lake Project, there is so much room to target high-grade both geologically and in the market, from the massive 20-km-long Gold-bearing McLymont Fault (what an opportunity!) to a high-grade focus at Burgundy and potentially elsewhere (Chachi?). Given the kind of market we’re in right now, it’s high-grade Gold and high-grade Silver that are moving stocks. GT Gold delivered 1.2 km of 0.70% CuEq this week and still fell. When porphyries are the flavor of the day, a result like that would send a stock skyward in a hurry…

    Comment by Jon - BMR — September 6, 2019 @ 5:42 pm

  15. Thanks Jon

    Comment by Weatheritout80 — September 6, 2019 @ 6:24 pm

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