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January 16, 2020

7 @ 7:00

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

1. Gold has traded between $1,551 and $1,556 so far today…as of 3:00 am Pacific, in this early edition of 7 @ 7:00, Gold is off $1 an ounce at $1,555Gold’s strong support band between $1,550 and $1,520 has held up this week despite declines in ETF holdings…Silver is steady at $17.95Palladium remains on fire, up another $49 an ounce at $2,269 after pushing as high as $2,339…meanwhile, Platinum had its best day in nearly 2 years yesterday as prices pushed past the $1,000 an ounce barrier…Copper has added 2 pennies to $2.84 as its trades at its best levels since early last summer…RBC Capital Markets analysts recently predicted that M&A in the Copper space could surge in 2020, especially if Chinese companies remain hungry…Nickel and Zinc are up slightly while Cobalt is unchanged at $14.74Crude Oil is 19 cents higher at $58 while the U.S. Dollar Index has dipped nearly one-tenth of a point to 97.17…the B.C. government will ask Canada’s high court today to give it authority over what can flow through the expanded Trans Mountain pipeline from Alberta…the case is a make-it-or-break-it affair for the multi-billion-dollar project…if B.C. is allowed to prevent heavy Oil from flowing through the pipeline, it would crush the expansion’s entire reason for being (the consequences for Canada would be severe)…the federal government will argue that letting B.C. regulate what can flow through the pipeline would give the province a veto over interprovincial projects it doesn’t like, counter to the constitutional authority given to Ottawa over any transportation project that crosses provincial boundaries…B.C.’s Attorney General says “the heart of the Constitutional questions before this court” is whether B.C.’s authority to “protect its own environment” can include interfering in a federal project…last May, the B.C. Court of Appeal said it cannot…B.C. is appealing that decision to the Supreme Court of Canada and that’s the hearing set for this morning…4 provinces, the cities of Burnaby and Vancouver, several Indigenous communities, the radical environmental law charity “Ecojustice“, and more than half a dozen Oil companies and advocacy groups have been granted intervener status in the case…

2. The U.S. and China have signed a Phase 1 trade deal that officials say will lead to a sharp increase in sales of U.S. goods and services to China, further open Chinese markets to foreign firms – especially in financial services – and provide strong new protections for trade secrets and intellectual property…the 8-part trade agreement, yet another game-changing achievement by President Trump, leaves in place U.S. tariffs on about $370 billion in Chinese goods, or about three-quarters of Chinese imports to the United States…possible tariff reductions will be left to later negotiations, which will cover a host of difficult issues at the heart of the trade battle, including Chinese subsidies to domestic companies and Beijing’s oversight of Chinese state-owned firms…those talks are expected to begin fairly soon but not conclude until after the U.S. elections in November…speaking to a packed audience of business and political leaders in the East Room of the White House, President Trump said the remaining tariffs “will all come off” if the talks produce a 2nd agreement…he called the deal a “momentous step – one that has never been taken before with China – toward a future of fair and reciprocal trade”…China agreed to purchase an additional $200 billion in U.S. goods over the next 2 years…this means U.S. exports to China should climb to $263 billion this year and $309 billion in 2021…either amount would mark a record-breaking acceleration for U.S. exports to China…

3. The Island Gold mine in Northern Ontario is the gift that keeps on givingAlamos Gold (AGI, TSX, NYSE) released impressive new results from surface and underground exploration drilling Island late yesterday, further extending high-grade Gold mineralization beyond existing mineral resources in all 3 areas of focus…overall, high-grade mineralization has been extended over 1,000 m east of current mine workings and remains open along strike to the east, and both up and down plunge…fresh results include 3.81 m (true width) grading 121.3 g/t (96.5 g/t cut), 2.57 m (true width) @ 108.2 g/t (94.6 g/t cut), and 8.04 m (true width @ 36.5 g/t) from the Main extension down plunge…this pushes out mineralization in this zone 80 m east of existing resources and 50 m below the nearest previously reported intersection…at the Eastern extension, high-grade mineralization has been intersected 170 m east of the nearest Indicated mineral resource and 225 m above previous intersections in the new area of focus…results from the Eastern extension include 32.2 g/t over 4.68 m (true width) and 20.2 g/t over 3.24 m (true width)…meanwhile, the gap between the Main and Eastern Extensions continues to show promise…high-grade mineralization has been extended 50 m to the west in the new area of focus to now cover a lateral extent of 350 m, confirming the continuity of high-grade mineralization at a drill density that will support the declaration of an Inferred mineral resource…all 17 holes drilled to date in this area have intersected the E1E zone, including 12 intersecting ore grade material…this has confirmed the E1E zone extends vertically over 1.2 km between a depth of 300 m and 1,500 m in the eastern part of the deposit…new highlights include 21.3 g/t over 9 m (true width) and 28.5 g/t over 4.38 m (true width)…“We had another exceptional year at Island Gold operationally, financially and through the drill bit,” stated President and CEO John A. McCluskey…“The operation produced 150,400 ounces of Gold in 2019, achieving a new record for the 5th consecutive year, and set a new record for free cash flow.  With the ongoing exploration success, we expect further growth in Island Gold’s mineral reserves and resources with our year-end update.  This growth will be incorporated into the Phase 3 expansion study, which we plan to complete during the 2nd quarter of 2020.  We expect this study will showcase a larger, extremely profitable, long-life operation”

4. B2Gold (BTO, TSX; BTG, NYSE), which closed at a new all-time high yesterday, has reported record 2019 annual Gold production of 980,219 ounces (including 10,724 ounces relating to the company’s attributable share of ounces from Calibre Gold)…this exceeds the upper end of BTGold’s guidance range of between 935,000 and 975,000 and marks the 11th straight year that the company has achieved record annual consolidated Gold production…consolidated cash costs are projected to remain low for 2019 with cash operating costs forecast to be at or below the lower end of the company’s $520 (U.S.) and $560 per ounce guidance range while all-in-sustaining costs are expected to be within the $835 (U.S.) and $875 per ounce guidance range…following a very successful year for exploration in 2019, B2Gold is planning another year of aggressive exploration in 2020 with a budget of approximately $51 million…based on current assumptions, including a Gold price of $1,500 per ounce, the company expects to generate cash flows from operating activities of approximately $700 million in 2020 and to repay the remaining outstanding balance of its revolving credit facility of $200 million during the year…

5. Wall Street futures are pointing to a strong open after fresh record highs yesterday…the Dow closed above the 29,000 level for the first time…in Toronto, the TSX finished at a new closing high of 17,415Liberty Gold (LGD, TSX) early this morning has just reported an intersection of 2.9 g/t Gold oxide over 55.9 m, including 5.6 g/t over 22.1 m, in metallurgical core drilling at its Black Pine Project in Idaho…the Venture gained 3 points yesterday to 577…a minor healthy pullback has unwound temporarily overbought conditions, setting the stage for the Venture’s next move to the upside above the key 600 level…resource plays have been leading the charge; however, the Canadian Marijuana Index closed at a nearly 2-month high yesterday, jumping 21 points to 243…on Tuesday, Organigram Holdings (OGI, TSX, NASDAQ) easily beat revenue estimates for its first fiscal quarter of 2020 (ended Nov. 30, 2019) with net revenue of $25.1 million, well up from its Q4 2019 revenue of $16.2 million, and this lent encouragement to investors across the sector…the Venture should get a boost going into the end of the week ahead of major resource conferences in Vancouver from Sunday through January 23 (Vancouver Resource Investment Conference plus Roundup)…the VRIC, one of the largest of its kind, will be celebrating its 25th anniversary and has a fabulous lineup of guest speakers…this milestone year for VRIC will see the event host over 60 keynote speakers, 350 exhibiting companies and 9,000 investors, bringing together a host of experts from the mineral exploration, metals, Oil and gas, and renewable energy sectors…

6. Golden Predator (GPY, TSX-V) resumed trading late in yesterday’s session, following a halt for news, and closed up 4.5 cents at 38.5 cents after reporting a significant increase in resources at its low capex Brewery Creek Project in the Yukon…a new NI-43101 report estimates that, at a Gold price of $1,325 per ounce, Indicated oxide Gold resources have increased 55% while Inferred oxide resources have increased 78% since the previous resource estimate in 2014…the updated estimate incorporates data from drilling through to the end of 2015…the company completed a subsequent 200 exploration drill holes from 2016 to 2019…a total of 177 of those holes were drilled from last August to November and assays are still being received and evaluated for a significant number of those holes…the updated mineral resource estimate reports an Indicated oxide resource of 21.14 million tonnes at 1.1 g/t Au containing 765,000 ounces, plus an Inferred oxide resource of 14.12 million tonnes at 0.97 g/t containing 440,000 ounces…the report also estimates an additional 8.57 million tonnes of Inferred sulphide resource at 0.99 g/t containing 270,000 ounces…the estimate utilized cut-off grades calculated separately for each deposit, ranging from 0.42 to 0.53 g/t at a Gold price of $1,325 per ounce reported within a pit shell calculated at $1,600 per ounce…Brewery Creek is a past producing open-pit/heap leach mine…operations were temporarily suspended in 2002 when the Gold price dipped below $300 an ounce…the project features year-round road access/air service 45 km from Dawson City and is just 17 km from grid power…

7. First Responder Technologies (WPN, CSE) begins trading on the Canadian Securities Exchange (CSE) this morning…on Tuesday the company completed its initial public offering of nearly 14 million units (included a 2-year half warrant good for 2 years at 50 cents) at a price of 35 cents per unit, generating aggregate gross proceeds of $4.9 million… the company plans to allocate a significant portion of the proceeds to continue its robust research and development program with the expectation that it will bring a prototype of a WiFi-based walk through weapons detection sensor to market in May of this year…in parallel with its research and development efforts, the company’s management and advisory team will continue its efforts to engage and inform security professionals, public safety technology vendors and governments around the world…that team is led by former federal Cabinet minister Stockwell Day, former RCMP Commissioner Bev Busson, environmental criminologist Dr. Kelly Sundberg, and artificial intelligence researcher Dr. Steve DiPaola…

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  1. BAR news: http://www.balmoralresources.com/news/balmoral-s-area-51-gold-system-program-continues-preparation-for-winter-drilling-underway

    Comment by Foz1971 — January 16, 2020 @ 6:02 am

  2. Nice move in CLM today

    Comment by Bryan — January 16, 2020 @ 2:21 pm

  3. Jon, CCW’s last NR states “while a work program has just commenced at the Company’s past producing Beaver high-grade Silver Property”. What are they working on? Are they extracting Silver and cobalt from tailings? How many tonnes do they expect to work through in a day?

    Comment by Don — January 16, 2020 @ 2:30 pm

  4. It’s safe to assume they’ve started their tailings initiative there, Don…but rather than making a big fuss about it, keeping it low-key for now it appears while the focus remains on the Castle East discovery…

    Comment by Jon - BMR — January 16, 2020 @ 4:01 pm

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