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February 5, 2020

7 @ 7:00

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

1. Gold has traded between $1,563 and $1,547 so far today…as of 7:00 am Pacific the yellow metal is up slightly at $1,554…no reason for Gold to dip below its solid floor of support between $1,550 and $1,520…Silver, with chart support beginning at $17.50, is unchanged at $17.56…base metals continue to recover…Copper has added 4 cents to $2.60…Nickel has jumped 14 cents to $5.95 while Zinc has added 2 pennies to $1.02…Cobalt prices have climbed by nearly $1 a pound in recent sessions, now at $15.76Crude Oil has gained nearly $2 a barrel to $51.43 after media reports that scientists had developed a drug against the Wuhan coronavirus…the World Health Organization played down the media reports, saying there are “no known effective therapeutics” against the virus…confirmed coronavirus cases are near 25,000, claiming the lives of 490 people…despite media hype, the coronavirus is not spreading globally in any significant way…more than 99% of the cases are in China and most are concentrated in the Hubei province where the virus was first detected in the city of Wuhan…the U.S. Dollar Index is up one-third of a point at 98.29Wall Street is reacting well this morning to a rousing State of the Union speech last night by President Trump, arguably the best speech (“The American Comeback”) of his young political career just as a new Gallup poll shows that his job approval rating is now at its highest level since he took office in 2017“Jobs are booming.  Incomes are soaring.  Poverty is plummeting.  The years of economic decay are over”, Trump stated…with a strong U.S. economy, a failed impeachment effort and a botched Iowa Caucus to kick off the 2020 election cycle, these aren’t promising times for Democrats, who have also tilted way too far to the left…House Speaker Nancy Pelosi’s frustration was clearly evident last night as she tore up her copy of Trump’s speech in front of the cameras as soon as the State of the Union address was over…it was a petty and classless move, and also very disrespectful to the country given how much of the speech focused on American exceptionalism and American heroes…Democrats have not been able to figure out how to effectively counter Trump…Wall Street knows it and that’s a major reason why equity markets will continue to track higher in 2020

2. The U.S. has become a jobs-producing machine – the jobs market kicked off 2020 in grand fashion, adding 291,000 in private payrolls for the best monthly gain since May 2015, according to a report this morning from ADP and Moody’s Analytics…that was well above the 150,000 estimate from economists surveyed by Dow Jones and more evidence that the U.S. still is a good distance from full employment even with the jobless rate at its lowest point in more than half a century…the total also was a sharp gain from the 199,000 in December…growth came across a swath of industries…

3. The Federal Court of Appeal yesterday dismissed the case filed by Tsleil-waututh First Nation, Squamish First Nation and Coldwater Indian Band, who argued that Canada’s federal government failed to properly consult on the Trans Mountain Pipeline Project which would pass through their territories…however, these 3 indigenous groups and aligned radical environmentalists – on the wrong side of history – reiterated they are committed to breaking the law in their attempts to block the project which a majority of British Columbians and Canadians support…“We always said we’d do what it takes to stop this pipeline,” said Rueben George, manager of the TWN Sacred Trust and a member of the Tsleil-Waututh First Nation, 1 of 3 First Nations that filed the legal challenge…“We will take steps to make sure that Canada stays the way it is,” he added at a news conference…meanwhile, Dustin Rivers, a spokesman for and elected member of the Squamish Nation Council, stated, “We are deeply disappointed with the decision today.  B.C. has a long history of civil disobedience”First Nations have 60 days to file an appeal…the Supreme Court should not even be willing to hear an appeal given the sharp wording of yesterday’s decision, which was rendered unanimously and ordered the indigenous groups to pay compensation to the defendants – the federal government, Canada Energy Regulator as well as Alberta and Saskatchewan…

4. Eric Sprott has beefed up his position in Ely Gold Royalties (ELY, TSX-V)…the company has cut a deal with Sprott to acquire his 0.5% NSR (the “Target Royalty”) on the Gold-producing Jerritt Canyon mine facility in Elko, Nevada, currently operated by a private Nevada limited liability company…Ely Gold already holds a per ton royalty interest on the Jerritt Canyon processing facilities that it acquired in a private transaction last year…in consideration for the Target Royalty, Ely Gold has agreed to pay $8 million CDN to Sprott, payable by issuance of 12,698,413 Ely Gold common shares at a deemed issue price of 63 cents per share…upon formal completion of the transaction, Sprott will hold approximately 16.2% of the outstanding Ely Gold shares on a non-diluted basis, and approximately 28.3% on a partially diluted basis….however, pursuant to a pre-existing agreement signed late last year, unless the TSXV accepts Sprott becoming a “Control Person” of the company, he has agreed not to exercise any portion of his warrants if, as a result of such exercise, his direct and indirect holdings would exceed 19.9% of the outstanding Ely Gold voting shares…the company plans to seek such an approval at its next AGM expected to be held on or before May 2020ELY holds a 2% NSR on Wallbridge Mining’s (WM, TSX) Fenelon deposit…

5. The Dow has climbed another 321 points through the first 30 minutes of trading…in Toronto, the TSX has added 143 points while the Venture has gained 2 points to 575, just above a strong band of support from 570 to 560…technically, the Venture is looking very healthy and it’s just a matter of time before a key breakout occurs above the critical mid-580’sWalker River (WRR, TSX-V) is this morning’s early volume leader after reporting very high-grade near-surface Gold intercepts from RC drilling at its Lapon Project in Nevada…highlights were 96 g/t Au over 13.7 m, 94.8 g/t over 6.1 m, and 364 g/t over 1.5 m (uncut values, 80% true width)…normally, numbers like that would send a stock through the roof, but a “management discount” has been applied here – weak management has been WRR’s Achilles heel for years…keep an eye on Chibougamau Independent Mines (CBG, TSX-V) over the coming weeks…the company is now commencing a new drill program at its C-3 Copper-Gold zone in northern Quebec…results last year included 7.7% Cu and 3.6 g/t Au over a core length of 9.2 m at a vertical depth of 450 m…drilling will test the down plunge of this zone…Ero Copper (ERO, TSX) is gathering steam after a 25% January slide, thanks to the hype around the coronavirus and plummeting Copper prices…this is not only a very profitable production story but one of the best exploration plays in the marketEro is super-aggressive at pursuing new discoveries on its large-scale holdings in Brazil while it also features strong operational execution and peer-leading organic production growth via its 99.6% interest in Mineração Caraíba S.A. (“MCSA”), a long-established Brazilian Copper mining company with over 40 years of operating history in the Curaçá Valley…ERO is up 55 cents at $19.51 as of 7:00 am Pacific

6. Merger and acquisition activity in the Gold sector rose in 2019 to the highest level since 2010, but a return to the widespread, costly deal-making of a decade ago is not likely given producers’ shift toward capital discipline, according to consultancy Metals Focus…further, roughly two-thirds of last year’s dollar volume was from just one deal – the Newmont Mining takeover of Goldcorp, the consultancy pointed out in a report yesterday…the value of M&A activity in the Gold sector increased to $18.2 billion in 2019, up 45% over 2018…this was still below the 2010 peak of $32.2 billion…without the $12.3 billion NewmontGoldcorp merger, M&A deals last year totaled $5.9 billion, down from $7.2 billion in 2018…the number of total deals rose slightly to 89 in 2019 from 86 the year before…

7. Of the millions of NFL fans that watched Sunday’s 54th Super Bowl, many were looking to cash in on the Big Game thanks to the rise in sports betting in the United States…Bank of America says sports betting could reach 50% of the U.S. population by 2022…while sports betting revenue was about $950 million in 2019, estimates for the booming industry’s future range from $6 billion to $20 billion…“We think the success, adoption and technology behind online and mobile sports could be a catalyst for wider iGaming penetration, a notable shift for an industry that has thus far not been widely impacted by the Internet,” Bank of America research analyst Shaun Kelley said in a note to clients on Friday…sports betting and online gaming have been some of the hottest topics in investor conversations, Kelley said…daily fantasy sports company and bookmaker DraftKings reached a deal to merge with Diamond Eagle Acquisition Group (DEAC, NASDAQ) in December, allowing the company to become public while forgoing the typical IPO process…last Wednesday, casino company Penn National Gaming (PENN, NASDAQ) soared 12% when it announced it’s taking a 36% stake in digital sports media company Barstool Sports for about $163 million in cash…the deal, which values Barstool around $450 million, is expected to close this quarter…“We view this partnership positively and expect that it will quickly transform PENN into one of the major players in sports betting,” said Kelley…PENN also has a stake in Score Media & Gaming (SCR, TSX-V) which has been one of the top-performing Venture stocks since early 2018

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  1. Nice news out from VSBY, deployments of its software is in full swing. The success in Mexico is proof of concept of its security application for towns & cities. VSBY is well on its way to becoming the security choice for enforcement agencies in the America’s


    Comment by Buckshot — February 5, 2020 @ 11:14 am

  2. CCW news tomorrow from High Grade Halliday you think? Trying not to sound like an old lady – just genuinely wondering!! lmao

    Comment by Phil — February 6, 2020 @ 2:33 pm

  3. Well, something’s up, Phil…beautiful dendritic Silver with “rosettes” just posted on the CCW web site – I would say this will grade in the MANY THOUSANDS of grams per tonne, and it’s an example of the high-grade Silver CCW is hitting near the lower contact of the diabase with the Archean volcanics (game changer)…“Most Silver ore from the Cobalt region grew at the core of large arsenide “rosettes”, according to http://www.treasuremountainmining.com...“Dendritic growth is the term used to describe a branching figure or marking, resembling moss or a shrub or tree in form, found on or in certain stones or minerals. These represent some of the highest grade of Silver ore found”…

    Comment by Jon - BMR — February 7, 2020 @ 7:51 am

  4. Jon,

    I couldn’t get the link to work but any idea what the historical intercept lengths were from the rosette areas in Gowganda/Cobalt? Possibly tens of meters?

    Comment by AFchief — February 7, 2020 @ 12:36 pm

  5. AFchief, ~70 million ounces of Silver was pulled out of the ground in the Gowganda Camp, and more than 400 million ounces elsewhere in the district, through exactly the kind of intercepts CCW has already reported such as 4 m of 212 oz/ton…these extremely high-grade veins are narrow in width but can carry on for considerable distances…what you see in a deposit is always a complex network of veins and veinlets and mineralized wall rock that allows for appropriate mining widths…Grade is King and having a zone like CCW already has (world class grades) is a license to print money…

    Comment by Jon - BMR — February 8, 2020 @ 8:43 am

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