BullMarketRun   BullMarketRun.com

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

July 29, 2020

7 @ 7:00

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

1. Spot Gold has traded between $1,946 and $1,977 so far today, ahead of a fresh Fed policy statement at 11:00 am Pacificas of 7:00 am Pacific, Gold is off $an ounce at $1,952…a fear of rising inflation, growing government debt and concerns that the U.S. dollar is embarking on a new downtrend are all factors that will push Gold much higher, according to commodity analysts at Goldman Sachs…in a report yesterday, analysts at the financial firm reiterated their view that Gold will be the currency of last resort…they also increased their forecast for the precious metal, now seeing Gold prices pushing to $2,300 an ounce within 12 months…Silver has retreated 25 cents to $24.11…since March 18, the price of Gold has rallied 33% with the metal growing in appeal for investors trying to hedge their portfolios against slow economic recoveries across the globe, inflationary risk and currency debasement…in that same period, Silver prices have more than doubled to reach a trading level not seen since 2013…investing in Silver is also a play on industrial activity and clean energy, according to Goldman Sachs economist Jeffrey Currie…in a note published yesterday, Currie wrote that the combination of the European Green Deal and U.S. Presidential Democratic candidate Joe Biden’s plans to attack climate change could result in a doubling, every year, of solar panel capacity installations in the U.S. and Europe (assuming, of course, Biden prevails in November)…currently, solar energy projects account for 15% of Silver demand, Currie said…on the base metal front, Nickel is up 5 cents at $6.19 while Copper and Zinc are steady at $2.91 and $1.02, respectively…Crude Oil has jumped 32 cents to $41.36 a barrel while the battered U.S. Dollar Index is down another one-fifth of a point to 93.48…Canadian-born Texas Republican Sen. Ted Cruz has accused Democrats of deliberately seeking to extend coronavirus lockdowns of businesses and schools so that President Trump suffers politically ahead of November’s elections…Democratic-aligned teachers’ unions have remain opposed to opening schools…in Los Angeles, the teachers’ union has made overtly political demands as part of its reopening plan, including defunding the police, taxing the wealthy, implementing a moratorium on charter schools, providing “Medicare-for-all”, and obtaining more federal funding…“We’re 100 days out from the Presidential election – the only objective Democrats have is to defeat Donald Trump,” Cruz told CBS News‘ ‘Face The Nation“And they’ve cynically decided the best way to defeat Donald Trump is shut down every business in America, shut down every school in America”

2. The Fed wraps up its 2-day meeting today in the midst of growing doubts about the prospect for a sustained economic rebound due to a resurgence in COVID-19 cases…Fed officials have warned this month in speeches and interviews that the economy faces a deeper downturn and more difficult recovery if the country can’t slow the spread of the infection…since the Fed’s mid-June policy meeting, virus infection rates have accelerated in many states that were among the first to encourage businesses to reopen…business leaders and economists have warned that hard-hit industries such as travel, entertainment and hospitality will face a more difficult recovery if consumers don’t feel confident spending money indoors and gathering in large groups…the Fed isn’t likely to roll out new stimulus measures today but is debating how to provide more support to the economy once the economic outlook becomes more clear…they could do this by adjusting their purchases of Treasury and mortgage securities and by providing more detail about what conditions would lead them to consider withdrawing stimulus…

3. Big Tech will come under the glare of a national spotlight today as 4 of its leaders face questions from members of Congress aiming to rein in what they believe is excessive power in the hands of a few giant companies…the chief executives – Amazon’s Jeff Bezos, Apple’s Tim Cook, Facebook’s Mark Zuckerberg and Google’s Sundar Pichai – are set to appear before the House Antitrust Subcommittee investigating the market dominance of online platforms…their testimony could help build public pressure for government action, especially if the back-and-forth with lawmakers raises new concerns about the way the big technology companies operate…“These platforms have been allowed to run wild and free from really any constraints,” Rep. David Cicilline (D., R.I.), the subcommittee chairman, said in an interview…“The responsibility we have is to make clear what the impacts are of the lack of competition in the digital marketplace”…for the CEOs, it’s a chance to make the case that their success derives not from monopoly power, but from their ability to meet consumer needs…in statements released late Tuesday, Bezos, Zuckerberg and Pichai, who is also CEO of Google’s parent Alphabet, emphasized the competition their companies face, as well as their contributions to the U.S. economy…

4. Fosterville South (FSX-V) is pushing higher in early trading after announcing that it has intersected 39.5 m grading 7.5 g/t Au, including 17.1 g/t over 10.6 m (true width estimated at 50%), during the initial phase of core drilling at its Golden Mountain Project in Victoria, Australia…the high-grade intercept started 118.6 m downhole…the company says it has also secured, through staking, an additional 404 sq. km contiguous with and immediately to the east of the company’s Golden Mountain Project tenements, as to cover off all of what the company believes is the geologically prospective ground in the immediate area…Fosterville South Chief Operating Officer Rex Motton, stated: “Fosterville South has acquired a premier land package of approximately 3,000 sq. km in Victoria, and this is the result of a multi-year head start on the current land rush happening today. We are well funded and have now commenced exploration initiatives that will ramp up in the coming weeks. These initial high-grade Gold assays from Golden Mountain are indicative of the quality of the properties within Fosterville South and we look forward to keeping investors up to date as we progress on the ground on all fronts”…in addition to drill hole GMDH28 (39.5 m @ 7.25 g/t), Fosterville cut 5.8 m grading 18.4 g/t Au from 91.8 m in drill hole GMDH26 (true width also estimated at 50%)…FSX has gained 16 cents to $4.91 through the first 30 minutes of trading…

5. The Dow is up 65 points as of 7:00 am Pacific…Eastman Kodak (KODK, NYSE) more than doubled this morning after President Trump announced a deal to work with the photography pioneer to produce ingredients in generic drugs in response to the coronavirus pandemic…shares of Kodak skyrocketed more than 140%, extending a massive rally this week…trading was halted twice shortly after the open this morning due to volatility…the stock more than tripled yesterday for its best day ever after the U.S. government awarded the company a $765 million loan to start producing drug ingredients under the Defense Production Act, the first of its kind…“Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients,” Trump said in a news conference last night…“We will bring back our jobs and we will make America the world’s premier medical manufacturer and supplier”…Kodak said yesterday it will produce pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage, as defined by the Food and Drug Administration…in Toronto, the TSX is up 59 points, despite a pullback in Gold stocks, while the Venture has added 2 points to 710Vizsla Resources (VZLA, TSX-V) has commenced drilling with a 4th drill rig at the Panuco Silver-Gold Project in Sinaloa, Mexico…CEO Michael Konnert stated, Vizsla is moving quickly to add exploration capacity at Panuco. The discovery on the Napoleon vein made it imperative that we mobilize another rig to the discovery site. The 4th drill provides the capability needed to test new targets on the Napoleon, Cordon del Oro and Animas vein corridors”

6. Galway Metals (GWM, TSX-V) reported this morning that drill hole CL2065 (assays pending) at its Clarence Stream Project in New Brunswick contains “abundant” visible Gold in a new massive quartz vein that is 14.4 m in core length (242.1 m to 256.5 m) located 320 m NE of a previously reported new vein intersection of 11.4 g/t Au over 2 m, including 43.5 g/t over 0.5 m in hole CL2058 (75 m north of the George Murphy Zone)…CL-65 contains 29 visible Gold “splashes” located 246.5246.8 m, 248.2 m, 252.4253.2m, and 255.1255.2 m downhole (photos and assays pending) starting at a vertical depth of 171 m below surface…the new vein appears to be associated with a strong magnetic low and with a line of coincident soil anomalies, both located close to the interpreted location of the main structure on the property – the Sawyer Brook Fault…President and CEO Robert Hinchcliffe stated, Galway has made tremendous progress during the past month. The company raised $17 million to top up its treasury to $22 million. In doing so, we more than doubled the number of institutional shareholders to approximately 30 and fully-funded our 75,000-m, 200-hole Clarence Stream drill program through the end of 2021. We also made 2 new discoveries – 1 approximately km SW and along strike of the Jubilee Zone, Clarence Stream’s western-most known deposit, by intersecting 186.5 g/t Au over 0.6 m, and we made another new discovery 3.7 km to the NE with 14.4 m of massive quartz veining hosting 29 splashes of visible Gold reported here. We also bought back 2 NSR royalties, of which most payments can be made with Galway shares over a 5-year period. With 5 rigs turning, Galway is looking forward to following up to expand both new discoveries and the known deposits within and beyond the 3.7 km-long mineralized system”GWM is 12 cents higher at $1.29 in early trading…

7. GoGold Resources (GGD, TSX-V) has released a maiden initial mineral resource estimate for its Los Ricos South Project located in Jalisco State, Mexico…in addition, the company has updated the mineral reserve at the Parral Tailings operation, and the resource estimate at its Esmerelda Tailings Project located near Parral…the Measured and Indicated resource at Los Ricos South is 63.7 million ounces Silver equivalent grading 199 g/t AgEq contained in 10 million tonnes…the Inferred resource is 19.9 million ounces AgEq grading 190 g/t AgEq contained in 3.3 million tonnes…the Los Ricos resource is amenable to both open-pit and underground mining methods and will form the basis of a PEA expected to be completed by the end of this year…meanwhile, the Proven and Probable reserve at Parral now stands at 31.6 million ounces AgEq grading 64 g/t contained in 15.4 million tonnes…“This initial mineral resource estimate demonstrates Los Ricos is a premium asset, in grade and quantity of ounces,” stated Brad Langille, President and CEO….“Our mineral reserve at Parral is generating cash flows that are being reinvested into the Los Ricos district. Over the past 16 months, we have aggressively explored and developed the Los Ricos South mineral resource, which we base our PEA study upon. Concurrently, we are accelerating our exploration effort on the Los Ricos North Project where we  drilling the first of multiple targets which we believe will highlight the potential of the entire Los Ricos district. Drilling is still underway at Los Ricos South targeting the northern extensions and extensions at depth”

How This Pandemic Will Ultimately Help Copper

Wuhan COVID-19 Virus Update

The Cost Of Doing Business With China (The CCP)

“Silver Lining”: Innovative Vancouver Company Provides Help During Crisis

COVID-19 Update

Smithers Shakes Off Turmoil For A Major 3-Day Event Connecting Hockey And The Resource Sector

Turbocharged Nickel

Commodity Check!

The Nickel Mountain Magma Highway

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp


  1. Impressive core photos from GWM

    Comment by Dan1 — July 29, 2020 @ 8:33 am

  2. BMR, have you added any VZLA/TUD/TUO recently?

    Comment by Marcus — July 29, 2020 @ 8:36 am

  3. Not just recently, Marcus…

    Comment by Jon - BMR — July 29, 2020 @ 10:00 am

  4. Nice turnaround brewing for Copper Mountain as expected…


    Copper Mountain Mining Corp. has released strong second quarter 2020 financial and operating results. All currency is in Canadian dollars, unless otherwise stated. All results are reported on a 100% basis. The Company’s Financial Statements and Management Discussion & Analysis (“MD&A”) are available at http://www.CuMtn.com and http://www.sedar.com.

    Q2 2020 HIGHLIGHTS

    Exceeded revised operating plan announced March 10, 2020 with Q2 2020 production of 23.9 million pounds of copper equivalent (comprising of 18.1 million pounds of copper, 7,499 ounces of gold and 86,126 ounces of silver).

    Reduced cash cost per pound significantly in Q2 2020:

    C1 cash cost per pound of copper produced was US$1.48 compared to US$1.74 in Q2 2019.

    All in sustaining cost (AISC) per pound of copper was US$1.67 compared to US$1.85 in Q2 2019.

    All-in cost (AIC) per pound of copper was US$1.67 compared to US$2.35 in Q2 2019.

    Increased revenue to $91 million compared to $65 million in Q2 2019

    Increased gross profit to $30.3 million compared to $1.6 million in Q2 2019

    Increased earnings per share to $0.12 compared to $0.01 in Q2 2019

    Increased cash flow from operations before working capital changes to $41.5 million compared to $4.7 million in Q2 2019.

    Completed the installation of Direct Flotation Reactors in July on schedule and on budget.

    Completed updated Eva Copper Feasibility Study (announced May 7, 2020) demonstrating improved economic and operating metrics, including:

    After-tax NPV (8%) of US$437 million and an after-tax IRR of 29%.

    Total production of 1.5 billion pounds of copper over a 15-year mine life.

    C1 cash costs of US$1.44 per pound of copper, net of by-product credits.

    “We are pleased to have achieved such a strong quarter despite the global impact of the COVID-19 virus and the associated lower copper price environment,” commented Gil Clausen, Copper Mountain’s President and CEO. “The positive outcome was a direct result of our quick response in implementing a revised mine plan in early March, demonstrating the flexibility of the Copper Mountain Mine plan and our team’s ability to adapt quickly to changing market conditions. More importantly, we prioritized the health and safety of our employees and we have had no confirmed or presumptive cases of COVID-19 at any of our operations.”

    Mr. Clausen continued, “With higher metal prices and lower costs, our objective is to build our cash position to allow for a rapid restart of the second stage of the mill expansion project, the installation of the third ball mill. The first stage of our 45,000 tonnes per day (TPD) mill expansion, the installation of the direct flotation reactors, was completed in early July. The Company has also maintained spending on long lead time items associated with the Ball Mill #3 installation and we anticipate recommencing construction in late 2020 or early 2021.”

    Comment by Jon - BMR — July 29, 2020 @ 10:01 am

  5. BMR – see this? http://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1fi3quh-EeHr_nhXsAAnJhH%20%281%29.jpg

    Comment by Dan1 — July 29, 2020 @ 4:05 pm

  6. Jon, did you catch the Saudi NR? Would you consider that to be material information?

    Comment by Rod — July 29, 2020 @ 4:32 pm

  7. Great example of the global reach SONA’s test is going to have, Rod…when SONA and officials there are ready to announce details, we’ll hear from SONA…

    Comment by Jon - BMR — July 29, 2020 @ 5:26 pm

Sorry, the comment form is closed at this time.

  • All Posts: