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February 10, 2020

7 @ 7:00

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

1. Gold has traded between $1,569 and $1,577 so far today…as of 7:00 am Pacific the yellow metal is up $3 an ounce at $15.73…commercial traders have been quietly and systematically covering their short positions…over the past week they unwound 41,310 shorts, leaving them with a current net short position of 344,788 contracts…Silver is up 4 pennies at $17.71…Palladium has jumped $37 an ounce to $2,250…key resistance, at the top of a symmetrical triangle, is $2,350…Copper is steady at $2.56…Nickel has rebounded 8 cents to $5.83 while beaten-down Zinc has fallen another penny to 96 cents…Crude Oil is 44 cents lower at $49.88…Crude Oil prices are down more than 20% from their January high after the coronavirus hit demand in the world’s largest Oil importer and fuelled concerns of excess supply…worries over supply were not alleviated on Friday when Russia said it needed more time to decide on a recommendation from a technical committee that has advised OPEC and its allies to cut production by a further 600,000 barrels per day (bpd)…the strengthening U.S. Dollar Index is up slightly at 98.74…the greenback has climbed steadily since the number of coronavirus cases began surging in China last month, pushing the Dollar Index to its highest level since early October…with many analysts concerned that disruptions to the Chinese economy will dent global growth, investors have been clinging to U.S. assets…a high dollar works against the Fed’s desire to see inflation pick up…the White House’s economic adviser on Friday said that the Trump administration does not expect the coronavirus in China will have a major effect on the U.S. economy…“There’s a lot of variables involved and things we don’t know.  Internally we have looked at a drop in GDP of perhaps two-tenths of 1% – that’s all we found so far.  We think it will be an absolute minimal impact,” said National Economic Council Director Larry Kudlow…U.S. January retail sales figures due Friday will be important as consumer spending accounts for two-thirds of economic growth…retail sales are forecast to have increased by 0.3% month-on-month in January…

2. Inflation in China hit its highest level in more than 8 years last month as the coronavirus drove up demand for some consumer goods and shuttered business activity in parts of the country…China’s consumer price index rose 5.4% in January after rising 4.5% in December…the jump in prices comes as economic activity has been curtailed across large parts of the country by the coronavirus outbreak, though some of the closed factories are now starting to reopen…as of last night, the country had more than 40,000 confirmed cases and 908 deaths from the virus…the number of cases has exceeded the SARS outbreak in 2002-2003 but the mortality rate is far lower at around 2%…over the weekend, the Chinese government pledged to spend more than $10 billion to fight the virus…Beijing has orchestrated support for its companies and financial markets in the past week and investors are hoping for more stimulus to lift the world’s 2nd-biggest economy…

3. When Federal Reserve Chairman Jerome Powell heads to Capitol Hill for 2 days of testimony beginning tomorrow, he’ll will face questions about how the central bank might respond to new economic uncertainties emanating from China…Fed officials cut their benchmark federal-funds rate 3 times last year, to a range between 1.5% and 1.75%, after raising it 4 times in 2018…they left the rate unchanged at their meeting last month and maintained their wait-and-see policy stance…Powell’s testimony will be made public tomorrow morning, prior to market open, and his hearing before the House Financial Services Committee is set to begin at 10:00 am EST…he is scheduled to appear Wednesday before the Senate Banking Committee…one thing’s for certain – the Fed has no desire or inclination to raise rates this year, and that’s positive for equity markets and precious metals…

4. The Trudeau government will pour gas on the fire of western separatism, and further damage Canada’s resource sector, if Alberta’s $20 billion Frontier Oil sands mine proposed by Teck Resources (TECK.B, TSX) is rejected by the federal cabinet later this month…at a Friday news conference, Alberta Environment Minister Jason Nixon flatly rejected any suggestion that Ottawa could placate the province with an “aid package” if it turns down the project…“Albertans are not looking for a Justin Trudeau handout.  We’re not interested in that.  We want Justin Trudeau and the federal government to get out of Albertans’ way, to let hard-working Albertans do what they do best, which is create prosperity for this province and create prosperity for this country”Reuters reported Thursday that that federal officials were preparing various streams of funding for Alberta, including cash to help clean up thousands of abandoned wells spread across the province…Alberta Premier Jason Kenney told an audience at the Canada Institute in Washington, “It’s hard to overstate the response of Albertans, not just our government, but Albertans broadly, if this project were to be rejected”Teck has already spent $1 billion during the past decade to clear a series of regulatory hurdles, invest in technology designed to lighten the mine’s carbon footprint and forge agreements with First Nations group…a rejection from Ottawa now would signal to investors that despite such efforts, projects can ultimately be scuttled by an “arbitrary political decision” made without any transparency, he said…“I think that would be a devastating message to send in terms of investor confidence at a time when we are struggling to attract foreign direct investment to the Canadian economy,” he said, speaking alongside Saskatchewan Premier Scott Moe…“So the response would be very challenging”…demand for Crude Oil will continue during the coming decades even as energy transitions away from fossil fuels, Kenney added, and it’s better that the last barrel of Oil come from “a stable reliable democracy with the highest environmental and human rights labour standards on earth. Teck represents a pathway to that”

5. This is getting insane, yet another example of how Canada has become dysfunctional: Commerce and travel disruption in parts of Ontario and Quebec (VIA Rail service) as well as British Columbia in recent days has been triggered by protestors sympathetic to the Wet’suwet’en “hereditary chiefs” who are illegally blocking construction of the CoastalGas Link pipeline in British Columbia…the Wet’suwet’en are an unelected, unaccountable, foreign-funded and anti-Canadian “fake” native band in northern B.C. that refuses to recognize Canadian laws…they have the full support of a radical anti-capitalist group called Red Braid Alliance for Decolonial SocialismRed Braid effectively shut down Canada’s busiest port in Delta yesterday…“We’re part of a nationwide movement to shut down Canada in solidarity with Wet’suwet’en,” protest organizer Isabel Krupp said…“More than $1 billion of commerce moves through Deltaport every year.  We’re shutting it all down.  There’s no commercial traffic going in or out of Deltaport today”...late yesterday, a B.C. court granted an injunction against those protesters who also blocked the Port of Vancouver in solidarity with Wet’suwet’en pipeline opponents…meanwhile, the Wet’suwet’en and their radical supporters are also putting lives in danger…RCMP said Friday they have opened a criminal investigation into the alleged cutting of support beams on the Lamprey Creek Bridge near the main Coastal GasLink protest camp, making it unsafe for all foot and vehicle traffic…the $6-billion, 670-km Coastal GasLink pipeline has the support of all elected First Nations band councils along the route, including 5 of the 6 band councils in the Wet’suwet’en nation…the “hereditary chiefs” are the problem and all attempts at negotiation with these individuals have failed…their real agenda is revealed by Red Braid’s mission statement, “Red Braid is a revolutionary working class and Indigenous organization.  We fight to abolish colonialism, imperialism and capitalism, which are destroying our communities and the nonhuman world.  We fight for multiple worlds where the free, full, creative development of each person is the responsibility of all”…where is the political leadership in Canada to stand up to this nonsense?…

6. The Dow has added 49 points through the first 30 minutes of tradingAmazon (AMZN, NASDAQ) has hit a new record high, topping $2,100 per share…despite Friday’s losses, Wall Street posted its biggest weekly gain since June as the S&P 500 jumped 3.2%…strong economic data along with solid corporate earnings reports fuelled the market’s weekly surge…in Toronto, the TSX is up 22 points while the Venture is 2 points lower at 572Hive Blockchain (HIVE, TSX-V), up a nickel at 34 cents as of 7:00 am Pacific, is the early volume leader on the Venture…the company announced this morning that it now anticipates about a 40% reduction in its operating and maintenance costs at its GPU mining facility in Sweden, compared with such costs under its previous service provider agreement, which it ended in November of last year…this improvement is the result of locking in a lower than anticipated electricity rate, stemming from an unusually warm winter in Sweden, for a majority of the company’s electricity costs via hedging agreements that will continue through 2020…electricity, which is provided through green energy, comprises the majority of the company’s operating and maintenance costs…Antibe Therapeutics (ATE, TSX-V) has been hot lately…the stock traded more than 13 million shares last week as it added another 8 cents to close the week at 65 cents…it’s unchanged in early trading this morning…

7. Canada’s government should fund initiatives like a proposed $1.6 billion project that would provide power and fiber optics to the country’s remote north and spur new business, said a Gold mining executive yesterday…Canada’s Infrastructure Bank on Wednesday signed an MOU to assess the project, which needs federal investment to get built and would run to Nunavut from Manitoba…“This has to be looked at as nation building,” said Agnico Eagle (AEM, TSX, NYSE) CEO Sean Boyd in an interview…Agnico, Canada’s largest Gold producer, runs 3 Gold mines in the Kivalliq region and is Nunavut’s largest private employer…“A big part of that funding has to come from the federal government to not only build the power line to benefit the current communities, but to look at it as a way to finally open up an area which has tremendous potential,” he said…Nunavut is a vast Arctic region – the size of Mexico – with a population of 36,000 mostly Inuit that separated officially from the Northwest Territories 20 years ago…though rich with mineral deposits, it suffers from a dire lack of infrastructure and all electricity is produced by diesel generators…electricity production for the territory consumes 55 million litres (15 million gallons) of diesel each year, and Agnico Eagle’s Nunavut sites require 80 million litres (21 million gallons)…“As we’re considering major projects and as we make new discoveries in the north, which we believe will be there, we need a cost structure that allows you to build those into meaningful businesses,” Boyd said…

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  1. I am sickened by the fact that these splinter groups want to benefit from being part of Canada but yet do not respect the laws and decisions of the supreme court of Canada. Only when it suits them it seems.. I hope VIA sues their a$$ off… there needs to be consequences.. and big ones..
    Fack I’m angry that the general population has to suffer from the actions of a few.. Fack off!!!!!

    Comment by Jeremy — February 10, 2020 @ 9:24 am

  2. CCW – almost 14 days now since the 72 high. incubation period is over. an update to move thru that target would be nice

    Comment by david — February 10, 2020 @ 10:53 am

  3. I am sickened by the fact that these splinter groups want to benefit from being part of Canada but yet do not respect the laws and decisions of the supreme court of Canada. Only when it suits them it seems.. I hope VIA sues their a$$ off… there needs to be consequences.. and big ones..
    Fack I’m angry that the general population has to suffer from the actions of a few.. Fack off!!!!!

    Comment by Jeremy — February 10, 2020 @ 11:49 am

  4. Yeah what a laugh,, on CBC there is more time dedicated to the academy awards and the Democrats than there is protesters trying to shut down the Canadian economy ,definitely something wrong with this picture. Trudeau meeting with Kuwait prime minister today? What, maybe to set up a deal to buy oil from them? Unbelievable!!!

    Comment by Laddy — February 10, 2020 @ 2:01 pm

  5. Now this is making sense now, is that why Horgan rammed through UNDRIP. Just to create more havoc, the next B.C. election couldn’t come soon enough!!!

    Comment by Laddy — February 10, 2020 @ 2:22 pm

  6. Jon you mentioned the possibility of CCW accessing the new discovery through a ramp and sending it straight to their mill. Do they not need a permit for this.? Also any sign of the tailings permit for the Castle mine. Seems to be taking a long time for such an environmentally friendly exercise.

    Comment by Patrick — February 11, 2020 @ 5:50 am


    Skeena Resources Ltd. has provided additional gold-silver drill results from the 2019 phase I surface drilling program at the Eskay Creek project located in the Golden Triangle of British Columbia. Four surface drill rigs were utilized for the 2019 Phase I program in the 21A, 21E and HW Zones to infill and upgrade areas of Inferred resources to the Indicated classification. Drill hole results reported in this release are from the 21A, 21E and HW Zones. Reference images are presented at the end of this release as well as on the Company's website.

    Phase I Eskay Creek Drilling Highlights:11.53 g/t Au, 247 g/t Ag (14.82 g/t AuEq) over 31.30 m (SK-19-172) – 21A Zone 15.02 g/t Au, 70 g/t Ag (15.96 g/t AuEq) over 18.26 m (SK-19-171A) – 21A Zone1.51 g/t Au, 355 g/t Ag (6.24 g/t AuEq) over 21.00 m (SK-19-201) – 21E Zone2.83 g/t Au, 44 g/t Ag (3.42 g/t AuEq) over 25.00 m (SK-19-208) – 21E Zone

    Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. Reported core lengths represent 80-100% of true widths and are supported by well-defined mineralization geometries derived from historical drilling. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100%. Samples below detection limit are nulled to a value of zero.

    2019 Drilling Continues to Intersect Increased Grades, While Confirming Widths

    Infill drilling within the 21A Zone continues to improve upon historically defined grades as demonstrated by 2019 Phase I drill hole SK-19-172 which intersected 14.82 g/t AuEq over 31.30 metres. This drilling confirms the 21A Zone thickness as indicated by the nearest historical drill hole in the current mineral resource model which is located 20 metres down-dip and intersected slightly lower grade mineralization of 7.63 g/t AuEq over 26.90 metres (CA89-080).

    Likewise, additional up-dip confirmation was provided by drill hole SK-19-061 which averaged 10.56 g/t AuEq over 27.50 metres and correlates very well with previously reported thickness from 2018 Phase I drill hole SK-18-023 that intersected 14.57 g/t AuEq over 31.50 metres.

    Mineralization within this portion of the 21A Zone is dominantly hosted within the footwall rhyolite sequence with only a minor contribution from the mudstones (refer to attached section).

    Current Status – Eskay Creek Drilling

    Four surface-based drill rigs are currently on site at Eskay Creek. The Company anticipates commencement of the surface 2020 Phase I infill and exploration drilling program in mid-February 2020. The remaining analytical results from the 2019 Phase I drilling program will be disclosed once all information has been received and validated.

    About Skeena

    Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective precious metal properties in the Golden Triangle of northwest British Columbia, Canada. The Company's primary activities are the exploration and development of the past-producing Eskay Creek mine, which contains a combined Indicated and Inferred 4Moz, 4.4 g/t gold-equivalent open-pit resource. The Company recently completed a Preliminary Economic Assessment (PEA) on Eskay Creek which highlights an after-tax NPV5% of C$638M, 51% IRR and a 1.2-year payback. Skeena is also exploring the past-producing Snip gold mine.

    Qualified Persons

    Exploration activities at the Eskay Creek Project are administered on site by the Company's Exploration Managers, Colin Russell, P.Geo. and Adrian Newton, P.Geo. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President Exploration and Resource Development, is the Qualified Person for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its exploration activities on its exploration projects.

    Comment by Jon - BMR — February 11, 2020 @ 5:53 am

  8. the Only way to stop these illegal protesters imo, is to start giving them criminal records, plain and simple.

    Comment by Laddy — February 11, 2020 @ 8:29 am

  9. What’s really critical about this whole situation, Laddy, is that there’s a much bigger agenda going on here with this Wet’suwet’en “hereditary chief” protest…and going after it head-on and stamping it out completely is essential if we are going to continue to grow the resource industry in this country…Freda Huson and her gang of “hereditary chiefs” are aboriginal extremists who are out to undermine the resource sector in Canada and the capitalist system as we know it, not unlike AOC and the far left in the United States…the Wet’suwet’en “hereditary chiefs” are also doing a disservice to First Nations across the country who desperately want higher standards of living and prosperity that the resource sector can certainly provide them…the Canadian mainstream media is making the Wet’suwet’en out to be “victims” when they’re actually perpetrators of an agenda that’s globalist and foreign-funded and designed to remake Canada into a country we wouldn’t recognize anymore…

    Comment by Jon - BMR — February 11, 2020 @ 3:01 pm

  10. Maybe other FN groups could step up or in and offset the Wetsuweten grump about the pipeline rather than leaving it all for the RCMP and rest of the country to sort out ?

    Comment by David — February 11, 2020 @ 4:00 pm

  11. Excellent point, David…many of them are afraid to speak up…they need to…

    Comment by Jon - BMR — February 11, 2020 @ 5:45 pm

  12. I’ll agree, they need to(the 20 that have already agreed)start fighting back , the van sun reporter said it correct today, Horgan and Trudeau don’t have a clue what to do. I also heard that a First Nation group have now threaded to take the federal government to court and sue if the pioneer project doesn’t get approved, that would be a first,good for them!!!

    Comment by Laddy — February 11, 2020 @ 8:07 pm

  13. Btw, I did read your 7@7 about them taking the feds to court, I guess what I should have said is I’ve heard that several times today, it’s getting attention.

    Comment by Laddy — February 11, 2020 @ 8:33 pm

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