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July 2, 2015

BMR Morning Market Musings..

Gold has traded between $1,155 and $1,169 so far today…as of 8:30 am Pacific, bullion is down $4 an ounce at $1,164, recovering after a modestly weaker than expected U.S. jobs report…Silver is up 7 cents at $15.62…Copper has added a penny to $2.62…Crude Oil is up 80 cents at $57.76 while the U.S. Dollar Index has fallen one-third of a point to 96.02

The first half of 2015 was characterized by small moves in Gold, with prices stuck in a 6% or $70 trading range since March…bullion declined 1% in the first half, the smallest move since 2005…holdings in Gold-backed EFT products dropped for a third day on Tuesday, bringing the 2nd-quarter decline to 1.8%, data compiled by Bloomberg show…

U.S. employers steadily added jobs in June, but wages were flat and the participation rate fell, suggesting pockets of weakness remain in the labor market…non-farm payrolls rose a seasonally adjusted 223,000 in June, the Labor Department reported this morning ahead of tomorrow’s U.S. holiday…that was slightly below expectations…in addition, revisions to the prior months showed weaker job creation this spring than initially estimated…employers added 254,000 jobs in May, down from an initially reported 280,000…April’s gain was revised to only 187,000 from a previously reported 221,000

Fed rate hike in September?…don’t bet on that with those numbers…meanwhile, average hourly earnings of private-sector workers was unchanged last month at $24.95 while the share of Americans participating in the labor force fell to 62.6% in June from 62.9% in May…that’s the lowest rate since Jimmy Carter was President in 1977

June marked the 57th consecutive month of U.S. job gains, the longest stretch on record…however, the pace of payroll expansion has slowed…employers have added an average 208,000 jobs a month, down from last year’s monthly average of 260,000

Futures contracts show that traders now see January as the first Fed meeting when a rate hike is more likely than not, based on CME FedWatch, which tracks expectations using its Fed funds futures contracts…

Oil Update

Saudi Arabia is poised to break records for Oil production this summer, analysts are saying, but domestic energy needs are threatening its ability to ramp up exports…Saudi Arabia has said it produced a near-record 10.3 million barrels a day in May, a mark that industry observers said could increase to 11 million barrels this summer as air-conditioning use increases with temperatures reaching 110 degrees Fahrenheit…the country has the ability to produce 12.3 million barrels a day for 90 days, but it has never pumped that much…Saudi output averaged 9.22 million barrels a day from 2006 to 2014, according to the U.S. Energy Information Administration…most of its oil is exported…interestingly, for the past 3 years Saudi domestic energy demand has been rising by about 8% annually due to an expanding population and new construction and large-scale projects…the kingdom’s population has also increased 17% since 2005, faster than most developed countries…Citigroup has predicted that continued rising domestic demand, if left unchecked, may force Saudi Arabia to start importing Oil by 2030

Buyers’ Remorse In Alberta

Not surprisingly, the honeymoon for the socialists in Alberta appears to be over already after a series of initial decisions that have hiked taxes and spending, and punished the business sector with added costs – all in the name, of course, of “social justice”…having a convicted criminal as a chief of staff doesn’t help, either…a Mainstreet/Postmedia poll released this morning found that if an election were held immediately, more voters would cast votes for the Wildrose Party than the governing NDP…among all voters, the poll shows the Wildrose in the lead with 40% support, ahead of the NDP with 31%, the PC Party with 24%, the Liberals with 3% and the Alberta Party with 2%…

The Greek Tragedy

A defiant Prime Minister Alexis Tsipras urged Greeks today to reject an international bailout deal, wrecking any prospect of repairing broken relations with EU partners before a referendum on Sunday that may decide Greece’s future in Europe…

This is a reckless, delusional, unpredictable individual whose country deserves to be thrown out of the euro zone just for electing him and his far-left party…less than 24 hours after he wrote a conciliatory letter to creditors asking for a new bailout that would accept many of their terms, this strident socialist abruptly switched back into combative mode in a television address…

Greece was being “blackmailed”, he said, quashing talk that he might delay the vote, call it off or urge Greeks to vote “Yes“…

Keep in mind that Tsipras was a member of the Young Communist Society in the late 1980’s…he swayed naive Greece voters in Obama fashion with his telegenic looks and promises of “social deliverance”, whatever that means, and believes in nationalizing public services (including the banking system, which he argues should be operated for the public good and not for profits)…on the night he was elected in late January, he stated, “Today the Greek people have written history.  The Greek people have given a clear, indisputable mandate for Greece to leave behind austerity.”

Greek voters are almost evenly split heading into a referendum in 3 days that European leaders said could plunge the country into economic darkness…one poll showed that 47% leaned toward a “yes” vote, an endorsement of austerity and the international bailout…the “no” camp, the government’s position rejecting those terms, was 43%…the margin of error in the survey of 1,000 people was 3.1 percentage points…

Gold 34-Year Monthly Chart

What the bears should be concerned about regarding this 34-year monthly chart is that it’s quite possible Gold is on the verge of powerful “Wave 5” move that could carry it to much higher levels over the next few years…the bottom could be anywhere from $1,000 to last November’s $1,130 low…

Gold’s “Wave 1” move took it from the $260’s at the beginning of the decade to a high of just above $1,000 in 2008, a gain of nearly 300%…

“Wave 3” started during the 2008 financial crisis just below $700 an ounce and took Gold to an all-time high of $1,924 in the late summer of 2011, a gain of 183%…

Wave “2” was the pullback in late 2008…”Wave 4” was the correction from 2011 to a potential low of $1,130 early last November…”Wave 5“, according to Elliott theory, could produce a dramatic rise to nearly $3,000 an ounce, though we might not like the world we live in at that point…

A few critical things to keep an eye on in this chart…first, RSI(14) is has been holding a support area and is at an appropriate level for a move up…sell pressure (CMF) is the most intense we’ve seen since 1997 (prior to that, 1982 just months before bullion took off to the upside)…an important clue that Gold is ready to take off will come when the +DI indicator crosses above the -DI…the last bullish crossover occurred in 1999 and that stayed intact until early 2013

There are better days ahead for Gold but patience is key…

GOLD7(1)

Seasonality Factors Now In Gold’s Favor

Gold has now entered what has been its best quarter of the year going back 2 decades…July, August and September have shown gains each month totaling 4.8%…if we’re going to see a significant rally in bullion, it’s likely to be this quarter – especially if traders perceive that the Fed may not act on an interest rate hike at all this year…

GOLDSeas1

Venture 6-Month Daily Chart

The Venture broke below an uptrend line in place since the December low, which is not what we wanted to see, but very strong support exists between 654 and 664 as we’ve repeatedly pointed out…the Fib. 654 level must hold on a closing basis, and that’s almost 20 points below where the Index is now…RSI(14) has bounced off support at 30%…

Like Gold, the Venture has been trading in a narrow range and that pattern may not change until the last half of this quarter when the market usually breaks in one direction or the other…a key indicator to watch will be the U.S. dollar…

CDNX7(4)

Venture Seasonality Chart

The Venture has survived what historically has been its worst quarter of the year…the April-May-June period has produced an average decline of 6.1%…this year’s Q2 drop was only 1.3%…that’s a significant out-performance…there’s normally a turnaround in August to look forward to…

CDNXSeas1

Today’s Equity Markets

Asia

China’s Shanghai Composite tumbled as much as 6% overnight but rebounded to close down 141 points or 3.5% at 3912…news of easier margin rules did little to lift trading sentiment…Japan’s Nikkei went the opposite direction, adding 193 points to finish at 20523

Europe

European markets were mixed today with the standoff in Greece causing hesitation among traders…

North America

The Dow is down 26 points as of 8:30 am Pacific following this morning’s jobs report…in Toronto, the TSX has added 39 points while the Venture is 2 points higher at 673

Cannabix Technologies Inc. (BLO, CSE) Update

This 6-month daily chart for Cannabix Technologies (BLO, CSE) illustrates why it’s so important to keep a close eye on the “technicals” as the principals of TA apply to any stocks with volume…

“Decision time” for BLO came in late May and what occurred was a breakdown as opposed to a breakout…first, BLO fell below a symmetrical triangle, and then it broke support at 30 cents…we have little doubt that BLO will recover strongly, as the company makes further progress with its marijuana breathalyzer prototype now advancing to the beta stage…technically, the turnaround will need some time to develop as was the case last year after the stock crashed from the low 30‘s to a nickel…this is a volatile play and the best time to accumulate, of course, has been during periods of weakness such as now…

Strong support exists in the mid-teens with near-term resistance around 20 cents (CDN) at the bottom of the downsloping channel (this chart is in U.S. dollars, based on the OTC listing)…an important intra-day reversal took place June 24 at 13 cents…

BLO is off a penny at 18.5 cents on the CSE through the first 2 hours of trading today…

BLO2(3)

Sillitoe 1990 Report on Gold-Rich Porphyry Deposits

As one of our readers requested yesterday, below is a link to Sillitoe’s 1990 report on Gold-rich porphyry deposits that makes for good bedtime reading…there’s helpful information in here with regard to what’s coming together in the Sheslay district…

Sillitoe-2000-Gold-Rich-Porphyry-Deposits

33 Comments

  1. DBV pressure building on the bid…….just a matter of time. Hopefully people are well positioned to take advantage of what’s to come soon. Like I have said many times…..DBV is the one that is geared to be the first Sheslay Valley play to deliver. You can play the undervalued leader that will deliver soon or you can watch it move while waiting another plays turn. Once DBV truely delivers I will join people in the other area plays to participate in more fun……good times ahead for shareholders imo.

    Comment by d4 — July 2, 2015 @ 9:51 am

  2. I hope you are right d4 – interesting times are certainly ahead – but this silence is deafening…we need some news.

    Comment by Steve A. — July 2, 2015 @ 11:26 am

  3. Yes, Steve, indeed…resumption of drilling and hopefully not 50 m from Hole 23, no matter how good it is…Dr. Razique knows his stuff and this is when it’s smart for the CEO to let the geoscientist do his thing…no restraints…get bold, step out a few hundred m at least so this can build some volume along with grade.

    Comment by Jon - BMR — July 2, 2015 @ 11:41 am

  4. Steve A- yes, the silence is deafening but with patience I truly believe we will be very well rewarded……we need to let them do their thing on their terms…..even in silence….lol.

    Comment by D4 — July 2, 2015 @ 11:50 am

  5. Before last week, I only held GGI – a whole boat load. After today, I also own DBV. Looking forward to news next week! US markets are closed but I expect an uptick in both GGI and DBV. I can see both releasing news next week. Figuring DBV will release news that drilling has started and something from GGI on it’s mexico properties. Who knows, maybe news from Mexico and the Grizzly?

    Comment by Dan — July 2, 2015 @ 11:57 am

  6. US markets closed tomorrow.

    Comment by Dan — July 2, 2015 @ 11:58 am

  7. I agree we are due for a news next week,silence is surely a Farshad strategy .

    Comment by Guy Delisle — July 2, 2015 @ 12:47 pm

  8. Anyone have a definite as to when DBV started drilling ?

    Comment by Les — July 2, 2015 @ 1:28 pm

  9. Just rumors, Les, that it may have been several days ago, but nothing confirmed. We’ll have to wait for news. Drilling is one thing. Exactly where is the big question. Another hole right in the Lisle Zone at this stage would be a disappointment IMHO. Can go back to it later. Time to be bold and walk the walk.

    Comment by Jon - BMR — July 2, 2015 @ 1:43 pm

  10. DBV News! The silence has been broken!

    Doubleview Steps Out 1 Km from Lisle Zone Discovery as Drilling Resumes at Hat Project

    15:45 EDT Thursday, July 02, 2015

    Comment by D4 — July 2, 2015 @ 2:32 pm

  11. Doubleview Steps Out 1 Km from Lisle Zone Discovery as Drilling Resumes at Hat Project

    15:45 EDT Thursday, July 02, 2015

    Vancouver, BC / TheNewswire / 02 July, 2015 – Doubleview Capital Corp. (“Doubleview”) (TSX-V: DBV) is pleased to report that drilling has resumed at the Hat Project in northwest British Columbia’s Sheslay district. The company is aggressively following up on best-ever results achieved from drilling late last year and an enhanced understanding of this dynamic gold-copper porphyry system that is interpreted to have a footprint of at least 3 km x 4 km.

    Large Step-Out From Lisle Discovery Zone

    Drill hole H-24 has been collared nearly 1,000 metres northwest of H-23, approximately midway between the Lisle discovery zone and the Anomaly “A” area that was the site in 2013 of the first-ever holes drilled at the property. A strong multi-parameter anomaly (magnetic, chargeability, potassium, copper and gold geochemical) has been outlined around H-24.

    Farshad Shirvani, Doubleview President and CEO, commented: ” Through just 23 drill holes, with increasing success each round, we’ve taken the Hat Project from a grassroots stage to an emerging world class discovery in a prolific district that includes the Red Chris mine now going into commercial production.

    “In partnership with Tahltan Drilling Services we are advancing the Hat Project in a way that not only builds value for Doubleview shareholders but creates expanded opportunities for the Tahltan Nation. Doubleview is working closely and cooperatively with the Tahltan Nation as they build a sustainable future within their traditional territory,” Shirvani concluded.

    Strong Evidence Lisle Zone is Edge of Much Larger System

    After reinterpreting geological, geochemical, geophysical and analytical data from an updated database that incorporates all historic data from the 1960’s up to the recent property information, the Doubleview technical team, led by chief geoscientist Dr. Abdul Razique, believes that Anomalies “A”, “B” (Lisle Zone) and “E” collectively comprise a single alkalic gold-rich copper porphyry system within a much larger Hat Complex that also includes Anomalies “C”, “D”, and the Hoey and Gossan Creek prospects southeast of the Lisle Zone.

    The studies have also identified two new exploration targets, F and G. Target A2 is the focus of this initial 2015 drilling campaign (see figure: on the website “Exploration Potential and Targets”… ).

    Current drilling will utilize the same sampling and QA/QC procedures that were followed in previous programs. Following core logging, half-cores will be submitted to an independent analytical laboratory and the remaining half core will be retained on site for future reference. Reference samples, duplicates and blanks will be inserted into the sample stream and the laboratory will also perform its customary quality control analyses.

    Assay results from the current round of drilling, along with results from the remaining 250 metres of H-23 which are pending, will be released as soon as they are received, reviewed and interpreted.

    New DBV Corporate Presentation

    To view Doubleview’s latest corporate presentation, including Hat Project details, please visit the Company’s website at doubleview.ca

    Qualified Person

    Mr. Erik A. Ostensoe, P. Geo., a consulting geologist and Doubleview’s Qualified Person with respect to the Hat Project as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the technical contents of this news release. He is not independent of Doubleview as he is both a shareholder and a co-optionor of the Hat Project.

    About Doubleview Capital Corp.

    Doubleview Capital Corp., a mineral resource exploration and development company, is based in Vancouver, British Columbia, Canada, and is publicly traded on the TSX-Venture Exchange [TSX-V: DBV ], [OTC: DBLVF ], [FSE: 1D4 ]. Doubleview identifies, acquires and finances precious and base metal exploration projects in North America, particularly in British Columbia. Doubleview increases shareholder value through acquisition and exploration of quality gold, copper and silver properties and the application of advanced state-of-the-art exploration methods. The Company’s portfolio of strategic properties provides diversification and mitigates investment risk.

    On behalf of the Board of Directors,
    Farshad Shirvani, President & Chief Executive Officer

    For further information please contact:

    Doubleview Capital Corp.
    409 Granville St., Suite #880
    Vancouver, BC V6B 1N2

    Farshad Shirvani, President & CEO
    T: (604) 678-9587
    E: corporate@doubleview.ca

    Comment by D4 — July 2, 2015 @ 2:33 pm

  12. Now that’s what I call a step-out – nice to see. 1 km. Projects a lot of confidence in the model. The drill hole success ratio for the district is unusually high, and that’s been without the level of understanding that exists now. I predict Razique nails this one and blows the Hat wide open.

    Comment by Jon - BMR — July 2, 2015 @ 2:51 pm

  13. I predict that he will nail it as well……lol

    Comment by D4 — July 2, 2015 @ 2:54 pm

  14. Looks like my hunch was correct as they are drilling in area A . This will be a relief to many including me as it is a bold step that will greatly increase the size of this discovery rather than another hole in the Lisle zone . Good luck to all.

    Comment by Les — July 2, 2015 @ 2:56 pm

  15. Jon,

    Have a look at this section from the PR….I haven’t heard of half cores being sent to labs unless they typically don’t mention it in PRs.

    “Current drilling will utilize the same sampling and QA/QC procedures that were followed in previous programs. Following core logging, half-cores will be submitted to an independent analytical laboratory and the remaining half core will be retained on site for future reference. Reference samples, duplicates and blanks will be inserted into the sample stream and the laboratory will also perform its customary quality control analyses.”

    Why submit half cores to the lab? How will this affect the results from the lab?

    Comment by D4 — July 2, 2015 @ 2:59 pm

  16. With the language around the Tahltan, it’s obvious they’ve had some interaction with Chad Day. Like I stated before, he jumped into this at a very strategic time.

    Comment by BMR — July 2, 2015 @ 3:01 pm

  17. At present it appears they only have one drill but it looks like they could use a couple more to show the world what’s in all those other areas. But that will come soon enough. I still don’t know when they started drilling as I could then estimate how deep they are. The Hat could be a lot bigger than most imagine.

    Comment by Les — July 2, 2015 @ 3:08 pm

  18. That’s standard, D4, and in accordance with 43-101. Not all companies mention it. You have to do it that way, always keeping core with you.

    Comment by Jon - BMR — July 2, 2015 @ 3:08 pm

  19. It’s definitely standard now, it’s what BRE-X didn’t do so they couldn’t double check the incredible results after.

    Comment by Danny — July 2, 2015 @ 3:13 pm

  20. Just speculating, Les, but a hit on such a big step-out in this A2 area will change the game entirely, and bring a lot more money to the table – possibly from a major. Then they can drill like crazy ’til Christmas. Tahltan have 6 more rigs available, after allowing for 1 as a starter for GGI.

    Comment by Jon - BMR — July 2, 2015 @ 3:16 pm

  21. Thanks…..this is the first time I see it mentioned in a PR.

    Comment by D4 — July 2, 2015 @ 3:27 pm

  22. This is great news, exactly what you asked for Jon, a “step out”. I have a really good feeling about this one hopefully blows it wide open. But if they “miss” on H-24, do they go back to the lisle zone?

    Comment by Sam — July 2, 2015 @ 3:44 pm

  23. Yes BRE-X was a game changer for the whole exploration sector. I remember it well and luckily enough I wasn’t part of it. It was about the time when people started questioning the core samples that red flags went up as the company did not half the cores.

    Comment by Les — July 2, 2015 @ 3:45 pm

  24. And why do you think h-23 results are still pending? It’s been a very long time, should have resulted by now?

    Comment by Sam — July 2, 2015 @ 3:48 pm

  25. Jon, where did you hear this? Tahltan allowing 1 drill as a starter for GGI? GGI better drill soon because DBV may need all of them if they hit what we all think they will.

    Comment by Dan — July 2, 2015 @ 4:10 pm

  26. Hi Dan, directly from a Tahltan-linked source. We have eyes and ears up there, fortunately. They have 8 rigs and would love to put them all in action. 1 for DBV at the moment, 1 on reserve for GGI, and 6 to spare. Could we have a scenario where multiple rigs are operating at the same time at some point this summer? Absolutely. Hole 24 hits – such a huge step-out – and it’s game on, big-time.

    Comment by Jon - BMR — July 2, 2015 @ 4:30 pm

  27. Thanks Jon. Did your eyes and ears give you any indication of when GGI might drill?

    Comment by Dan — July 2, 2015 @ 4:54 pm

  28. Dan have you sold some GGI, or you added DBV to you,re porfolio, just curious as we have about the same amount of GGI share

    I tought of switching some last night, but i really like what they have in mexico. Roradero could turn out to be a major silver play, Plus Iris could be bad as well.

    Comment by Martin — July 2, 2015 @ 4:57 pm

  29. Soon but no exact date just yet, Dan. There’s a lot of chatter about Grizzly Central. It’s safe to assume that’s where GGI started working at in late February. They would have gone after the soils. Geochem is key in the district. We know from historical data that a large circular mag feature hovers over Grizzly Central. You combine that with geochem that correlates, and you’ve got a major hot spot. It’s low-lying with boggy areas where sulphides tend to accumulate.

    Comment by Jon - BMR — July 2, 2015 @ 5:19 pm

  30. Martin, haven’t sold one single share of GGI. Added DBV to my portfolio. I feel GGI has so many irons in the fire that either one of their properties may be a company maker – with Rodadero, La Patillo, and the Grizzly. I feel if DBV hits big, it will only help GGI given their land package,plus GGI has their own juicy target at Grizzly Central! I decided to add DBV to my portfolio because the Hat has the potential to be a massive deposit that could put DBV on the world stage. Wouldn’t want to miss out on that.

    Comment by Dan — July 2, 2015 @ 5:21 pm

  31. Nice move Dan! i would have add to, but lack of fund.

    Comment by Martin — July 2, 2015 @ 5:30 pm

  32. Finally concrete news, very exciting. Don’t neglect the new claims that GGI has in SE sheslay, they also may be very exciting. that sort of thing is why I am over waited in GGI as compared to DBV. The summer keeps getting hotter out here, We had a dinner time visitor to-day, a deer eating leaves off of our apple tree. Richard l

    Comment by richard l — July 2, 2015 @ 6:44 pm

  33. Sam it is probably a strategy, Farshad with a good grade in the last 250 meters in hole 23 and a good grade in hole 24 sky is the limit , and prove the ore body and the philosophy of dr. Razique for 3X4 KM ore body !

    Comment by Guy Delisle — July 2, 2015 @ 8:05 pm

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