Check back later this morning for today’s Morning Market Musings.
1. Gold has traded between $1,246 and $1,255 so far today…as of 7:00 am Pacific, bullion is down $4 an ounce at $1,250 while Silver has slipped 17 cents to $17.79…Gold is now back below its 200-day moving average (SMA), which has been providing stiff resistance since February, after briefly shooting above $1,270 on Friday for the first time in 5 months following much weaker than expected U.S. jobs data and a U.S. missile strike on a Syrian air base…India’s Ministry of Commerce and Industry reported today that Indian Gold imports dropped 24% during the 2016–17 fiscal year…
2. Crude Oil continues to strengthen, supported by another shutdown at Libya’s largest Oilfield and heightened tension over Syria following last week’s U.S. military action…the Middle East is home to more than a quarter of the world’s Oil output and traders could be building a risk premium back into the market…WTI is up 47 cents at $52.71 as of 7:00 am Pacific…meanwhile, there’s a growing belief that global Oil inventories are drawing down and the market is no longer in massive surplus, while the demand side appears robust…
3. The Venture, which will benefit from firmness in Oil, is trying to gain traction above important resistance at 824…through the first 30 minutes of trading, the Index has gained 2 points to 826…marijuana stocks are showing strength to begin the new week…ATAC Resources (ATC, TSX-V) was halted just prior to market open, pending news…in Toronto, the TSX is up 11 points while in New York the Dow has climbed 58 points…Tesla’s (TSLA, NASDAQ) market capitalization is now bigger than General Motors‘ (GM, NYSE), making it the largest U.S. based automaker by that metric…Tesla sold about 76,000 cars in 2016 whereas GM sold around 10 million…
4. Constantine Metal Resources (CEM, TSX-V) hit a more than 2-year high of 17 cents in early trading, its 2nd straight session of higher than usual volume…the company is advancing its 51%-owned Palmer Copper-Zinc-Gold-Silver Project in Alaska with Japanese partner Dowa Metals & Mining (49%)…technically, CEM is overcoming strong resistance at 14 cents as per John’s charts…
5. EnGold Mines‘ (EGM, TSX-V) has intersected high-grade Copper in 2 step-out holes at its Lac La Hache Property discovery in B.C.’s Cariboo region…holes G17–03 and G17–04 returned assay values of 21.7 m (true width) grading 1.2% Cu, 0.17 g/t Au and 6 g/t Ag, and 12.2 m (true width) grading 1.8% Cu, 0.41 g/t Au and 10 g/t Ag, respectively…hole G17–03 was collared 50 m east of discovery hole G16–01 while G17–04 was collared 50 m west of G16–01…the mineralized intercepts occur at the same stratigraphic levels at 337.3 m and 336 m downhole…assay results from hole G17–02, collared 71 m north of hole G16–01, are still pending…drilling at the property is expected to recommence with 2 drills in approximately 10 days…1 of the drills will be deployed to test the previously reported new, highly intense gravity anomaly to the northwest of the discovery hole…the other drill will step out to the south of the discovery hole, where new gravity data indicates increasing potential for mineralization…EGM has pushed higher on the news, adding 4 pennies to 58 cents as of 7:00 am Pacific…
6. Assay results received from Ivanhoe Mines‘ (IVN, TSX) Kakula West discovery hole DD1124 have verified a high-grade interval of 5.8% Cu over 8.9 m at a 2.5% cut-off, including 6.2-m grading 6.8% Cu…DD1124 was drilled 3.8 km west of the current limit of resource delineation drilling on the central section of Kakula…meanwhile, 2 new step-out holes at Kakula West, drilled 400 m and 800 m respectively west of hole DD1124 and along the strike of the mineralized trend, also have intersected relatively shallow, Kakula-style, chalcocite-rich Copper mineralization with assays pending…this further extends the overall length of the known Copper-rich mineralized system at Kakula to approximately 11 km…the mineralization encountered in the 2 holes west of DD1124 is similar to the mineralization intersected in earlier drilling into the high-grade core of the Kakula discovery, which is approximately 10 km to the east…a total of 14 rigs are drilling at Kakula…3 rigs are extending the Kakula West discovery area; 1 is working in the far southeastern area of Kakula; 6 are extending resources at the northwestern extent of the Inferred resource area; 2 are drilling infill holes close to the centre of Kakula; and 2 are drilling wedge holes for metallurgical testwork in the Kakula Indicated resource area…more than 69,000 m have been drilled at Kakula since May of last year…a new resource estimate for the eastern section of Kakula, covering a strike length of approximately 6.3 km, is expected to be ready next month…
7. What’s Manitou Gold (MTU, TSX-V) up to?…the company announced this morning that Pat Dubreuil, named 2016 Northern Ontario business entrepreneur of the year, has been appointed President while Richard Murphy, who previously held the roles of both President and CEO, remains as CEO. “I am very impressed with Pat’s energy, tenacity and professionalism. I look forward to working closely with Pat in advancing our Kenwest and Gaffney projects, as well as growing our company through new business development opportunities.” Dubreuil currently serves as research and development director for the Centre of Excellence for Mining Innovation (CEMI)…he’s also the founder and President of Let’s Roll ‘Ideation’ Consulting which specializes in business development for regional and international markets…
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Hey Jon – any thoughts on Mahli’s insider stock sell in BLO?? thats 300K in dollars.. very significant I would say..
Comment by Patricia — April 10, 2017 @ 9:18 am
ATC getting a 60 mill injection from Barrick… ATC has a market cap at 70 mil.. so this is big!
Comment by Patricia — April 10, 2017 @ 9:21 am
Don’t be fooled by a little weakness on light volume in CSR this morning – buy the dip today, Jon says, you’ll be glad (this week) that u did…
Timely piece by Daniel last week on ATAC…
ATAC RESOURCES LTD. ANNOUNCES PROPERTY EARN-IN AGREEMENT WITH BARRICK GOLD CORPORATION
Atac Resources Ltd. has entered into a number of transactions with Barrick Gold Corp., pursuant to which Barrick can acquire an interest in the central portion of Atac’s Rackla gold property (the Orion project) and make an $8.3-million investment in Atac. Under the terms of the property earn-in agreement (the “Earn-in Agreement”) Barrick can acquire up to a 70% interest in the Orion Project.
The transactions consist of a potential total investment by Barrick of approximately $63.3 million, which includes a private placement of $8.3 million and a two staged, $55 million exploration earn-in option to acquire up to 70% of the Orion Project.
Highlights of the transactions are:
Stage one of the earn-in requires Barrick to incur exploration expenditures of $35 million over five years to acquire a 60% interest in the Orion Project;
Stage one expenditures include a $10 million guaranteed exploration commitment over the first three years;
Stage two of the earn-in requires Barrick to incur exploration expenditures of an additional $20 million to acquire an additional 10% interest in the Orion Project (for an aggregate 70%);
One or more senior members of the Barrick exploration team will be seconded to the Orion Project and provide technical assistance and expertise to Atac;
A flow-through private placement under which Atac will receive total proceeds of $8.3 million. Barrick will increase its shareholding in Atac from approximately 9.2% to 19.9% and will have the right to maintain this interest in Atac; and,
The flow-through placement proceeds will be used by Atac to partially fund the previously announced $10 million, 2017 exploration program at the Osiris and Rau Projects which are not subject to the Barrick Earn-in Agreement.
Comment by Jon - BMR — April 10, 2017 @ 9:29 am
Jon, over 100k shares traded on CSR is not real light trading? What happened to the bids that were stacked last week? What’s the chart saying now with CSR? Thanks
Comment by Dan1 — April 10, 2017 @ 11:12 am
Alright Jon…I couldn’t pass up at todays prices and took a starting position of 50000 shares in CSR. Hope they are able to execute on their plan 🙂
Comment by weatheritout — April 10, 2017 @ 11:12 am
The original drop this morning, Dan1, to 20.5 cents was on a paltry 40,000 shares or about $9,000…that’s light/low volume in my world and certainly when you look at the average daily trading in CSR since the beginning of February…the stock has consistently shown really strong support around that 20-cent mark and the 50-day SMA which is 20.5…next measured Fib. resistance for CSR remains 0.37…
Comment by Jon - BMR — April 10, 2017 @ 12:33 pm
SUPREME ANNOUNCES CONDITIONAL APPROVAL TO LIST ON THE TSX.V
Supreme Pharmaceuticals Inc. has received conditional approval from the TSX Venture Exchange to list the company’s common shares on the TSX-V.
John Fowler, president and chief executive officer, stated: “Graduating from the CSE to the TSX-V is an important milestone for Supreme. We enjoyed tremendous success throughout our time on the CSE, which provided us the flexibility we needed in the early stages of our growth. Graduating to the TSX-V prepares us for the next steps in the development of our cannabis business.”
The company would like to thank the Canadian Securities Exchange for its role in Supreme’s success over the past three years.
Final approval of listing on the TSX-V is subject to Supreme satisfying certain customary conditions required by the TSX-V. Supreme expects that it will be able to satisfy all such conditions by mid-May, 2017, and will provide an update once the TSX-V has issued a bulletin confirming the date on which trading on the TSX-V will commence. Following completion of all listing requirements, Supreme’s common shares will be voluntarily delisted from the Canadian Securities Exchange and will begin trading on the TSX-V under a new symbol.
About Supreme Pharmaceuticals Inc.
Supreme is a Canadian publicly traded company committed to becoming a leading cultivator and distributor of sun-grown cannabis through its wholly owned subsidiary 7ACRES. 7ACRES is a federally licensed producer of medical cannabis pursuant to the access to cannabis for medical purposes regulations operating inside a 342,000-square-foot hybrid greenhouse facility. The hybrid greenhouse combines the best technology of indoor production with the efficiencies and sustainability of a greenhouse, in a single large-format production footprint.
Comment by Jon - BMR — April 10, 2017 @ 5:45 pm