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July 24, 2020

7 @ 7:00

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1. Spot Gold has traded between $1,881 and $1,907 so far today as the yellow metal continues to close in on a new all-time high in U.S. dollar terms…as of 7:00 am Pacific Gold is up $15 an ounce at $1,901…Silver, which has enjoyed a spectacular week on a major breakout through the $20 level, has climbed another 29 cents to $22.82…trading in recent sessions reflects a resurgence of generalist investor interest in the sector…Silver ETF inflows are on track for a record month…“I know the tightness of the market,” stated Keith Neumeyer, founder and CEO of First Majestic (FR, TSX; AG, NYSE), in an interview with Kitco NewsIt’s only gonna get worse as we go green. When I put this company together, we didn’t have solar panels and we didn’t have any electric cars to any great degree. Now solar panels are the largest consumer of Silver in the space. They’re consuming over 10% of the world’s supply of metal – one industry which didn’t exist 20 years ago”base metals are off slightly with Copper, Nickel and Zinc trading at $2.93, $6.11 and 99 cents, respectively…Crude Oil is steady at $41.04 a barrel while the battered U.S. Dollar Index is down more than one-tenth of a point to 94.54…China’s Foreign Ministry announced this morning that it’s revoking the license for the U.S. consulate general in the southwestern Chinese city of Chengdu…the Chengdu consular district covers the controversial autonomous region of Tibet, the municipality of Chongqing, and the provinces of Sichuan, Yunnan and Guizhou, according to the consulate’s website…the announcement comes after the U.S. ordered China to close its consulate in Houston, citing efforts to protect American intellectual property and the private information of U.S. citizens…“The current situation between China and the U.S. is something the Chinese side does not want to see,” the foreign ministry said in an online Chinese-language statement, according to a CNBC translation…“The responsibility lies entirely with the U.S. side,” the statement added…“We again urge the U.S. side to immediately revoke its relevant wrong decisions, to create necessary conditions for the 2 countries’ relationship to return to normal”…for China, of course, “normal” means a change in the White House, back to the good old days in the eyes of the Communist Party when China was able to continually rip off the United States and the West in general…the world’s 2 largest economies appear set to dial up their exchange of sharp language ahead of the November elections, another reason for Gold to push higher…what a disgrace – the sick Cancel Culture movement is claiming another victory after Chicago city workers, at the direction of the Democrat Mayor, arrived under the cover of darkness early today to remove a Christopher Columbus statute from Chicago’s Grant Park, a week after rioters clashed with police as they attempted to tear the statue down…the Canadian Federation of Independent Business’s (CFIB) recovery dashboard shows that as of July 14 about 60% of small businesses are now fully open in Canada…only 24%, however, are making normal sales and only a third say they are fully staffed…Trudeau’s CERB is not a government program well suited for the recovery phase – in fact, it’s discouraging recovery…you can be a healthy adult with no children or elderly parents to take care of and yet refuse to go back to work without worrying about losing your CERB benefits…when governments are looking to restart the economy, unconditional assistance of this sort does not help…

2. U.S. employers hit hard by the pandemic and businesses with new demand are driving hiring in the U.S. jobs recovery…businesses such as health care providers and restaurants, which closed during pandemic lockdowns, have recalled millions of laid-off workers…job growth has also been boosted by increased demand in a handful of industries such as logistics, financial services and retail…hiring jumped in May and June when employers added 7.5 million jobs to payrolls – the best 2-month stretch on record back to 1939, according to the Labor Department…this week the total number of online job postings surpassed 7 million for the first time since April, according to ZipRecruiter…still, gains in job openings flattened in July and are down from 11.4 million in February, and job gains are well short of replacing the 21 million jobs lost in March and April when the pandemic first hit…recent labor-market readings, including the first increase in weekly jobless claims in 4 months, also suggest the recovery’s momentum is threatened by the virus’s recent surge…but employment gains in some pockets of the economy mean job seekers are finding new opportunities, which in turn could result in more people searching for work…health care and logistics are industries with high demand for new workers, according to ZipRecruiter…since May 1, 18% of all new job postings have been in the health field and 15% have been in transportation and storage, a sector that is expanding as more consumers purchase goods online…health-care employment, particularly jobs at doctor and dentist offices, has experienced strong hiring after a sharp decrease…employment at dentist offices has more than doubled since a low point in April, the fastest growth of any sector tracked by the Labor Department…

3. Yamana Gold (YRI, TSX, NYSE) is up in early trading after reporting adjusted net earnings of $63.3 million (U.S.) or 7 cents per share, an increase compared to adjusted net earnings of $19.8 million (U.S.) or 2 cents per share reported in the 2nd quarter of 2019…the company also said that it saw strong quarterly net free cash flow of $60.3 million and free cash flow before dividends and debt repayments of $38.3 million, adjusted for the costs incurred in association with COVID-19…at the end of the 2nd quarter, Yamana had cash and cash equivalents of $324.8 million…it also reduced its net debt by $101.1 million to $768 million…all-in sustaining costs for the quarter were $1,125 per Gold equivalent ounce (GEO) sold, up compared to $986 GEO sold in the same period in 2019…the company produced 164,141 ounces of Gold, which was above expectations…at the same time it also produced 2,007,809 ounces of Silver…the company is increasing its annual dividend by a further 12% to 7 cents per share, marking the company’s 4th dividend hike in the past year for a cumulative increase of 250%…all figures are in U.S. dollars…

4. The Dow is off 108 points as of 7:00 am Pacific while the NASDAQ has fallen 204 points...according to economists in a Reuters poll, who warned of a high risk the current job recovery reverses by year-end, the U.S. economic outlook has darkened somewhat in the past month amid renewed lockdowns in some states from surging coronavirus cases…in Toronto, the TSX is 79 points lower while the Venture has rebounded 4 points to 684 after yesterday’s pullback…red-hot Sona Nanotech (SONA, CSE) has backed off $1.09 to $13.10 after 7 straight winning sessions…the company has arranged a live webinar with new CEO David Regan for 9:00 am PacificPyroGenesis Canada (PYR, TSX-V) has pushed to a new high of $5.50 after reporting yesterday that it has received payments totalling $7.5 million under its $25+ million exclusive contract with Drosrite International“It should also be noted that an additional payment of over $2.5 million is expected in the next few weeks. All these payments are being made based on previously agreed to milestones, and all are being paid on time. In fact, none of our contracts have been materially affected by COVID-19 and are all progressing as expected,” stated Peter Pascali, PyroGenesis President and CEO…Benchmark Metals (BNCH, TSX-V) has hit a new high of 89 cents in early trading…on Wednesday the company announced it’s adding a 5th drill rig to its 50,000-m drill program at its Lawyers Gold-Silver Project in north-central British Columbia…over 10,500 m have been completed from over 60 drill holes targeting resource definition and expansion areas…initial assay results are expected by early August…CEO John Williamson commented, “The drilling program is going exceptionally well with the 2 diamond rigs performing about 30% ahead of anticipated drill metreage. Drilling at the Cliff Creek zone has intersected zones of alteration, veining and mineralization in all holes to date. The geological field teams are performing detailed geological mapping, soil and rock sampling, and the geophysical crews are near completion of ground magnetic and IP surveys at a number of zones”Brixton Metals (BBB, TSX-V) has arranged a non-brokered private placement of a combination of units and flow-through shares of the company for gross proceeds of up to $4 million (hard dollar units at 25 cents and FT units at 28 cents)…

5. Discovery Metals (DSV, TSX-V), in yet another example of an increasingly hot Silver market, has announced a non-broken institutional private placement to raise $35 million through the issuance of 26 million units at a price of $1.35 per unit…each unit comprises 1 common share of Discovery and half a warrant, with each full warrant exercisable at $1.75 for a period of 2 years…Eric Sprott, already a major investor in Discovery, is taking $15 million of the PP, boosting his position to 27.1% of Discovery’s issued and outstanding shares on a post-closing, undiluted basis…Sprott commented, Discovery provides unmatched leverage to a rising Silver price and I am very encouraged to see the Discovery team continue to execute on their plans at the Cordero project. I have continually grown my position in the company and it is now one of my largest investments in the Silver space”

6. GR Silver Mining (GRSL, TSX-V) provided a series of high-grade drill results this morning from the San Jun-La Colorada area at its 100%-owned Plomosas Project in Sinaloa, Mexico, including 1,181 g/t AgEq over 3.1 m (846 g/t Ag, 0.8 g/t Au, 2.7% Pb and 6% Zn) in drill hole LRD-59 (2.5 m estimated true width)…this intercept, starting 71.2 m downhole, included 1.1 m grading 2,300 g/t Ag, 2.1 g/t Au, 7.6% Pb and 16.3% Zn…other drill hole results were highlighted by 755 g/t AgEq over 3.5 m, and 720 g/t AgEq over 4.8 m (true width estimated at 80%)…these drill results highlight continuity of high-grade Silver mineralized zones in a 100-m step out from a previously released section of drill hole results at the San Juan area, and also define a mineralized strike length for the low sulphidation epithermal system of up to 1,000 m…the cross-section containing these results establishes a high-grade continuous zone of Ag-rich polymetallic breccia, along a shallow-dipping fault for approximately 400 m down dip…in addition, the drill results continue to confirm Silver-Gold mineralized zones hosted by multiple high angle faults…the results of the 17 drill holes indicate the possible extension of the San Juan-La Colorada area toward the San Francisco area to the south, supporting the presence of a much larger low sulphidation epithermal Ag-Au-rich system…

7. Bring me more Nickel, says electric vehicle visionary Elon Musk (someone should invite him to Nickel Mountain)…on his 2nd quarter earnings call earlier this week, Musk said he’s asking mining companies to produce more Nickel…he said miners will be offered a giant contract from Tesla if they mine Nickel efficiently and in an “environmental way”…the Tesla CEO certainly needs more raw materials…Musk also announced during the call that his company’s next Gigafactory, manufacturing batteries and cars, will be built in Austin, Texas….earlier this year Tesla signed a contract with Glencore for Cobalt…Tesla has been trying to limit dependence on Cobalt in order to reduce costs and avoid reliance on a material that is mostly sourced from the Congo…“The Nickel-based cells have higher energy density, so longer range; those are needed for something like a Semi, where every unit of mass that you add in you have to subtract in cargo,” Musk stated during the earnings call…

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1 Comment

  1. LION ONE v.lio

    Two high-grade intervals were encountered between down hole depths of 558.0 and 583.4m including 2m grading 35.28 gpt Au starting at 558.0m followed by 12.7m grading 46.14 g/t Au starting at 571.0m. The latter interval includes a sub-interval of 4.7m grading 120.16 g/t Au with an exceptionally high-grade core of 0.9m grading 506.4 g/t Au.

    Comment by Carl N — July 24, 2020 @ 9:34 am

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