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December 4, 2019

7 @ 7:00

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

1. Gold has traded between $1,472 and $1,485 so far today…as of 7:00 am Pacific, the yellow metal is off $2 an ounce at $1,475…it tested nearest resistance at its 50 and 100-day moving averages (SMA’s) overnight until a Bloomberg report came out that raised hopes regarding a Phase 1 U.S.-China trade deal…that sent Gold lower and drove up Dow futures…Silver has retreated 18 cents to $16.97…the behavior of the TSX Gold Index, however, suggests precious metals have started a new uptrend…Nickel is on a 7-session losing streak, falling to its lowest level since July 29…it’s off another 5 cents at $6.01 where there should be some technical support…Nickel is the only base metal with gains this year, and the pullback is consistent with previous corrections since its bull cycle started in early 2016…Copper is up 3 pennies at $2.66…Zinc has added 2 cents to $1.03 while Cobalt is steady at $16.10…Crude Oil has jumped $1.87 a barrel to $57.87 while the Dollar Index has shed one-fifth of a point to 97.52…U.S. job growth slowed markedly in November, with private payrolls increasing by just 67,000, according to an estimate this morning from ADP and Moody’s Analytics…the count was well below the 150,000 consensus from economists surveyed by Dow Jones and the lowest month since May…the Labor Department releases non-farm payrolls Friday…meanwhile, U.S. services sector activity slowed more than expected in November amid lingering concerns about trade tensions and worker shortages…China said today that it would retaliate if the U.S. presses forward with sanctions over Beijing’s repression of Uighur Muslims – Washington’s second stand on China human rights in recent days as trade talks face uncertainty…after the House of Representatives passed a bill requiring sanctions on officials responsible for the widespread detention of Uighurs in China’s Xinjiang region, Beijing has issued furious statements calling it interference with China’s internal affairs under the pretext of human rights…the bill must be reconciled with a version passed by the Senate in September before it can become law…

2. The longer-term outlook for Copper, fueled by the metal’s use in electric vehicles and renewable power technologies, is stoking a $1.5 billion investment by Rio Tinto to expand mining operations at Kennecott over the next 6 years, extending the life of the mine on the west side of the Salt Lake Valley in Utah for more than a decade…“This is an attractive, high-value and low-risk investment that will ensure Kennecott produces Copper and other critical materials to at least 2032,” said Rio Tinto CEO Jean-Sébastien Jacques, adding that mine closures impacting supply are also a key factor in the expansion…“Kennecott is uniquely positioned to meet strong demand in the United States and delivers almost 20% of the country’s Copper production.  North American manufacturers have relied on high-quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade”…the Bingham Canyon mine is one of the top producing Copper mines in the world with production at more than 20 million tons (it’s also the largest human-made excavation on Earth, measuring 2.75 miles across at the top and three-quarters of a mile deep)…in addition to Copper, Kennecott is one of the largest producers of Gold, Silver and Molybdenum in North America, and is a potential source of critical minerals such as rhenium and tellurium…with this project, Rio Tinto has invested around $5 billion in modernization and mine-life extension initiatives since the Kennecott acquisition in 1989

3. Balmoral Resources (BAR, TSX) is under pressure in early trading after releasing Phase 2 drill results from the recently discovered Ripley Gold zone at Area 52 of its Fenelon Property in Quebec…all 9 holes completed during Phase 2 intersected mineralization near-surface to a vertical depth of 220 m, highlighted by 32.7 g/t Au over 0.39 m, 3.01 m @ 3.04 g/t Au and 22.08 m @ 0.68 g/t Au…clearly, the market was expecting better numbers (as always) but it’s still early days…Ripley is 1 of 3 zones of significant Gold mineralization intersected in Area 52, which is located immediately south and along trend from Wallbridge Mining’s (WM, TSX) Area 51 discovery…Ripley remains open at depth…recent results from below the 450-m vertical level on the adjacent Wallbridge Property have shown the potential for a significant increase in grade times thickness to depth within this Gold system…Balmoral’s Detour Gold Trend Project adjoins the holdings of Detour Gold (DGC, TSX), the subject of a current over $4.5 billion takeover offer – on its western end, surrounds and controls a portion of the rapidly expanding Area 51 Gold system, and features Balmoral’s wholly-owned Martiniere Gold and Grasset Nickel deposits…BAR is off 8.5 cents at 29 cents as of 7:00 am Pacific but has strong new technical support in the mid-20’s

4. Victoria Gold (VIT, TSX-V) is trading higher after releasing a new technical report, prepared to a feasibility study level, for its Eagle Gold mine in the Yukon…reserves have increased from 2.7 million to 3.3 million ounces (this update includes all Eagle and Eagle proximal drilling – 58 holes – completed after the 2016 Feasibility Study)…annual production is now estimated at 220,000 ounces vs. 200,000…cash cost per ounce is $577 (U.S.) while all-in-sustaining costs are forecast at $774 (U.S.) per ounce…post-tax NPV(5) is $1.03 billion“The results of this updated Technical Report demonstrate the value and continual growth of the Eagle Gold Mine,” stated John McConnell, President and CEO…”Reserves have increased by over 20% from the drilling of 58 holes completed post-2016 Feasibility Study and we continue to see meaningful upside potential at the Eagle and Olive pits as well as across the Dublin Gulch Property.  I remind the reader that we continue to ramp up operations at the Eagle Gold Mine and anticipate commercial production achievement during the 2nd quarter, 2020

5. The Dow has rebounded 194 points through the first 30 minutes of trading…in Toronto, the TSX is up 42 points…the Gold Index, threatening to break out above 250, has pulled back slightly to 249…the Venture is trading at its best levels since early November, up 2 points to 540…potentially, this could be an unusual December (not the typical selling pressures during the first half or two-thirds of the month)…it’s possible the lows for the year may have come early this time around, in late November, especially if precious metals continue on a run…significant accumulation is occurring in Fiore Gold (F, TSX), one of our favorite small producers, which surged to a high of 60 cents in early trading…it jumped 8 cents yesterday on 1.5 million shares on no news…as of 7:00 am Pacific, Fiore is up 2.5 cents at 51 cents…Calibre Mining (CXB, TSX) provided 2020 guidance this morning…the company forecasts Gold production of between 140,000 and 150,000 ounces at an all-in-sustaining cost of between $1,020 and $1,060 (U.S.) per ounce…the company says it expects to generate significant operating cash flows that will allow it to reinvest aggressively in resource expansion and discovery drilling, advancing the high-grade Limon Central open-pit, and progressing the Pavon Gold Project as a satellite ore source for the La Libertad mill…CXB is holding steady around 90 cents…

6. Bee Vectoring Technologies (BEE, TSX-V) announced this morning that it has closed a total of 10 deals with blueberry growers in Georgia for the coming growing season…this includes 8 new growers and 2 previously announced growers…these producers will be using BVT’s proprietary bee delivery system and U.S. EPA-registered product, VECTORITE with CR-7, on their blueberry crops…the blueberry growers will be using BVT on an estimated 500 combined acres of conventional and organic fields for the 2020 blueberry season in Georgia, where blooming starts in February…blooming marks the beginning of the blueberry season, when the BVT system is used, but crop season continues until harvest which occurs in the spring and summer…all but one grower are first-time users who will be piloting BVT on a small percentage of their total acreage with the expectation that they will progressively add BVT across their entire operations over 2 to 3 seasons…the growers farm on a combined total of about 1,500 acres…“The company’s growth strategy in the blueberry market consists of three key activities: initial market penetration, customer retention and expansion through exceptional customer service, and leveraging the initial experiences to gain new customers,” stated Ashish Malik, CEO of Bee Vectoring Technologies“Currently in Georgia, the company is focused on closing deals with growers that are prominent early adopters of new technologies in their communities – and these initial growers are all key influencers.  Over time through delivery of exceptional experiences, BVT expects adoption of its system to increase to 100% of these farmers’ acres through building loyalty and positive word of mouth.  Lastly, the company continues to onboard new, additional growers as we move closer to the next growing season.  This is the strategy that will be executed in each region, as the growing season progresses geographically across the United States”BEE is up a penny at 43 cents in early trading…

7. CPM Group has issued an intermediate-term (2-3 year) Silver buy recommendation to investors…this call has been long in the making…the last time CPM issued a recommendation on Silver was more than 8 years ago in May 2011 when prices reached $48.19 and CPM advised to sell…“The Silver market is at a critical vertex at present,” CPM Group’s Vice President in charge of research Rohit Savant said earlier this week…CPM has waited until now for a variety of reasons known to our clients.  For one, the market has not supported strongly higher prices over the past few years.  As a result, prices have not moved sharply off their 20152016 lows,” CPM managing partner Jeffrey Christian stated…

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  1. Jon what is happening with CCW? Mr. Basa needs to update his shareholders. He puts a time line on News releases but never comes close to the time line he sets. He is even late with SEDI filings. No filings yet for the 700,000 stock option or open for the new VP

    Comment by Don — December 4, 2019 @ 7:45 am

  2. All looks good to me, Don…should be lots of activity leading up to Christmas…technically, definitely on a near-term path thru the mid-40’s…

    Comment by Jon - BMR — December 4, 2019 @ 8:52 am

  3. Agree Don, if you are going to promise news by a certain time then you should deliver. Don’t promise news by a certain time if you are not confident you can deliver. I will continue to be patient though, a lot of moving pieces there.

    On another note, CLM certainly looks to have bottomed. I bought a bunch in the .10 – .11 range hoping tax loss selling was pretty much over. Looks like bargain hunters stepping in there.

    Comment by Danny — December 4, 2019 @ 11:53 am

  4. On a very positive note with CCW, just when it looked like we would drop below .40 a whole lot of buyers showed up today. For me that is a very good sign. It looks to be headed higher.

    Comment by Danny — December 4, 2019 @ 12:22 pm

  5. Repricing to 45 cents (from 34 cents) on CCW acquisition of PolyMet – nice…


    Canada Cobalt Works Inc. has provided an update with regard to its proposed acquisition of 100 per cent of the issued and outstanding shares of PolyMet Resources Inc.

    Canada Cobalt and PolyMet have executed an amendment dated December 3, 2019, to their original binding Letter of Intent (the “Transaction”, refer to October 10, 2019 news release) which provided for an issuance of shares by Canada Cobalt at a price of $0.34 as payment for PolyMet shares. As a result of the amendment, Canada Cobalt will issue an aggregate of 704,444 units to the shareholders of PolyMet at a deemed price of $0.45 per unit for total consideration of $317,000. Each unit comprises one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of Canada Cobalt at an exercise price of $0.50 for a period of two years from closing of the Transaction. The cash portion of the Transaction has been amended from $333,000 to $343,623.30 for a total value (cash and shares) of $660,623.30.

    The Transaction is subject to approval by the TSX Venture Exchange and standard closing conditions. All securities issued in connection with the Transaction are subject to a four month-and-a-day hold period as per applicable securities laws.

    Canada Cobalt and PolyMet are working expeditiously to officially close the deal shortly.

    About Canada Cobalt Works Inc.

    Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.

    We seek Safe Harbor.

    Comment by John - BMR — December 4, 2019 @ 1:52 pm

  6. Jon. Looks like great news for CCW. Why did they reprice? Is it because the SP is to high now, and has to be with in a certain range at closing?

    Comment by Don — December 4, 2019 @ 2:32 pm

  7. Repricing to 45 cents is a smart move on CCW’s part, Don (reduces the immediate dilution), and a further incentive for Chitaroni’s group as they get 704,000 warrants at @0.50…

    Comment by Jon - BMR — December 4, 2019 @ 3:11 pm

  8. More news from CCW…first time this has been used in the Northern Ontario Silver-Cobalt Camp and it’s vectoring CCW right into a super high-grade ore shoot just 1 km east of a 40 million ounce Silver producer…


    Canada Cobalt Works Inc. has commenced diamond drilling at Castle East for first ever follow-up on the Robinson zone high-grade discovery, a drill hole in 2011 that cut 1,194 oz/ton silver (40,944 grams per tonne) over 0.45 metres within a broader core length of 3.1 metres grading 189 oz per ton (6,476 g/t) silver (refer to Aug. 25, 2011, Gold Bullion Development news release).

    This discovery, aided initially by geophysics and now supported by a high technology camera, is less than two kilometers east of three prolific past producers in the Gowganda Camp – the Castle, Capitol and Siscoe mines. Those deposits were exploited along the shallow western margin of the productive Nipissing diabase that dips toward the very under-explored Castle East area where Canada Cobalt is now targeting additional deposits, within and outside the diabase.

    Significantly, the Company has enhanced the exploration opportunity at the Robinson Zone by using a custom-built borehole inspection camera to successfully reach the 2011 drill hole intersection of spectacular native silver at a vertical depth of approximately 420 meters. The CCW technical team was able to view, identify and film the vein. This provided an invaluable geometric characterization of the unit, allowing for an accurate plotting of a series of wedge holes designed to pierce the vein structure at four different points to immediately build out this high-grade discovery.

    Following completion of the wedge holes, a new hole will be drilled to intersect the vein structure(s) closer to surface.

    Further updates on Castle East will be provided in the near future. As announced November 18, 2019, Canada Cobalt has appointed Matt Halliday, P.Geo., as VP-Exploration of the Company. He officially joins Canada Cobalt December 15 from Kirkland Lake Gold where he has been serving as resource geologist.

    (The 2011 drilling and drill core sampling, including the quality assurance/quality control, were supervised by Doug Robinson, P.Eng. and project geologist. Core was sent to Accurassay Laboratory in Timmins, Ont., for sample preparation and to its Thunder Bay laboratory for analysis. Silver was assayed by fire assay with AA check with additional pulp and metallics done on samples where significant silver was identified. Analytical accuracy and precision were monitored by the analysis of reagent blanks and reference materials at the lab. Quality control was further assured by the insertion of blind certified standard reference material and blanks into the sample stream at regular intervals by Mr. Robinson to independently assess analytical accuracy.)

    Private Placement Closing

    The Company has closed a non-brokered flow-through (“FT”) private placement with strategic investors, raising gross proceeds of $800,000. The Company issued 1,600,000 FT shares at $0.50 per share. No warrants were included in this financing. The private placement is subject to final Exchange approval.

    Finder’s fees were paid in connection with the private placement in the amount of $45,500 in cash and 91,000 finder warrants. Each finder warrant is exercisable at $0.50 per share for two years from closing. The finder’s fee is also subject to Exchange approval.

    All securities issued in connection with the private placement are subject to a four-month and a day hold period expiring April 5, 2020, in accordance with applicable securities laws.

    The proceeds of the FT private placement will be used to build out the Castle East discovery and to advance the Beaver Property near the town of Cobalt.

    Qualified Person

    The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.

    About Canada Cobalt Works Inc.

    Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.

    Comment by Jon - BMR — December 4, 2019 @ 5:23 pm

  9. CCW – wow.. great news and not on a Friday:) WTF???

    Comment by Jeremy — December 4, 2019 @ 5:59 pm

  10. Most definitely some great news. The big buyers who stepped in today knew what they were doing.

    Comment by Danny — December 4, 2019 @ 6:58 pm

  11. Great numbers from AMX this morning as they continue to move forward at Perron…technical breakout above the $1.20’s…


    Amex Exploration Inc. has released the results of several drill holes on its Perron property in northwestern Quebec, Canada. A complete list of results is provided in the associated table. Amex provides all drill data on its website.

    The drill results include intersections from the Gratien gold zone (GGZ) and the Eastern gold zone (EGZ).

    At Gratien, the Upper Gratien is an emerging new zone which returned higher-grade intercepts than previously identified, indicating the potential of multiple high-grade lenses within the overall large (one plus kilometre) Gratien gold system:

    Hole PEG-19-104 intersected 41.30 grams per tonne gold over 4.10 m in the Upper Gratien zone of the GGZ, including 202.81 g/t Au over 0.80 m. This intercept occurs at a shallow depth of about 65 vertical metres.

    At EGZ, drilling continues to define and expand the HGZ and Denise zones:

    Hole PE-19-105 intersected the HGZ with an interval grading 2.81 g/t Au over 12.30 m including 23.06 g/t Au over 0.70 m at a vertical depth of about 330 m. Additionally, the Denise zone returned several intersections including 1.02 g/t Au over 4.30 m and 3.21 g/t Au over 6.20 m.

    Hole PE-19-109 returned 4.80 g/t Au over 4.20 m including 26.16 g/t Au over 0.70 m in the HGZ at 25 m from PE-19-105 and at a vertical depth of about 325 m.

    Kelly Malcolm, vice-president, exploration, of Amex, commented: “I am very pleased with the high-grade intercept in the Upper Gratien zone, which is the strongest mineralization, on a metal factor basis, that has been identified in that zone to date. The possibility of a multitude of high-grade lenses within the broader kilometre-long Gratien system is encouraging when contemplating either open-pit or underground mining scenarios. The Eastern gold zone also continues to intersect meaningful intervals in both the HGZ and Denise zone which continue to define and expand the system. We are awaiting assays on a number of additional drill holes, many of which encountered visible gold.”

    The third drill, which is scheduled to arrive on Jan. 6, will be dedicated to the regional exploration program comprising approximately 20,000 m, of the 100,000 m drill program, targeting additional high-grade gold mineralization in the underexplored portions of the highly prospective Beaupre rhyolite block. In addition, the company recently completed a 600-line-kilometre survey of high-resolution drone magnetics at a very tight line spacing of 25 m, flown at a low altitude.

    Mr. Malcolm continued: “I am very satisfied with the quality of this geophysical survey and our preliminary review of the data has indicated a number of structures that were previously not visible on historical magnetic surveys. Some of these identified structures correspond with known mineralized gold horizons and we expect that the survey will be immensely helpful and prove to be an invaluable tool in identifying additional gold mineralization elsewhere on the property. The results of the survey will be released once data review and interpretation is completed.”

    The drill results, reported from several zones across Perron’s gold-bearing corridor, continue to demonstrate the robust nature of the gold system identified to date on the Perron property. Continued work will focus on the definition and extent of these known zones as well as exploration along strike of the contact of the gold-bearing Beaupre rhyolite, which comprises the seven km long southern Perron fault and the 8.4 km long northern Normetal fault, both of which are known as second-order thrust fault associated with high-grade gold mineralization.

    Qualified person

    Maxime Bouchard, PGeo, MScA (OGQ 1752), and Jerome Augustin, PGeo, PhD (OGQ 2134), independent qualified persons as defined by Canadian National Instrument 43-101 standards, have reviewed and approved the geological information reported in this news release. The drilling campaign and the quality control program have been planned and supervised by Mr. Bouchard and Mr. Augustin. The quality assurance and quality control protocol includes insertion of blank or standard every 10 samples on average, in addition to the regular insertion of blank, duplicate and standard samples accredited by Laboratoire Expert Inc. during the analytical process. Gold values are estimated by fire assay with finish by atomic absorption and values over three parts per million Au are reanalyzed by fire assay with finish by gravimetry by Laboratoire Expert, Rouyn-Noranda. Samples containing visible gold mineralization are analyzed by metallic sieve. For additional quality assurance and quality control, all samples were crushed to 90 per cent less than two millimetres prior to pulverization in order to homogenize samples which may contain coarse gold. Core logging and sampling were completed by Laurentia Exploration.

    The qualified persons have not completed sufficient work to verify the historic information on the property, particularly in regard to the historical drill results. However, the qualified persons believe that drilling and analytical results were completed to industry standard practices. The information provides an indication of the exploration potential of the property but may not be representative of expected results.

    About Amex Exploration Inc.

    Amex is a junior mining exploration company, the primary objective of which is to acquire, explore and develop viable gold and base metal projects in the mining-friendly jurisdictions of Quebec and Ontario. Amex is focused on its 100-per-cent-owned Perron gold project located 110 kilometres north of Rouyn Noranda, Que., consisting of 116 contiguous claims covering 4,518 hectares. A number of significant gold discoveries have been made at Perron, including the Eastern gold zone, the Gratien gold zone, the Grey Cat zone and the Central polymetallic zone.

    We seek Safe Harbor.

    Comment by Jon - BMR — December 5, 2019 @ 5:40 am

  12. I’m impressed with AMX as well. I have a nice position. It could be one of those you may want to hang on to.

    Comment by Dan1 — December 5, 2019 @ 6:10 am

  13. Indeed, Dan1…Amex is looking very good…

    Comment by Jon - BMR — December 5, 2019 @ 9:19 am

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