Gold has traded between $1,263 and $1,271 so far today…as of 11:00 am Pacific, bullion is flat at $1,267…Silver has retreated 23 cents to $16.94…Copper has eased off 2 pennies to $2.59…Nickel has slid 10 cents to $3.96 while Zinc is down 2 pennies at $1.11…Crude Oil, at $46.25, has added 42 cents while the U.S. Dollar Index is off one-fifth of a point at 97.06…
Bitcoin hit $3,000 today for the first time ever…
Traders are bracing for active markets on Wednesday when data on U.S. consumer prices and retail sales early in the session is followed later in the day by a Federal Reserve monetary policy decision…the Fed is widely expected to hike rates for the 2nd time this year…the question is, will there be a 3rd or 4th rate hike in 2017?…the Bank of England also meets to set policy this week, just days after the U.K. election caused new political turmoil…
The Venture has responded well to all Fed rate hikes since late 2015…
Palladium is up again today ($867) after soaring by more than 7% Friday to its highest level in more than 16 years as a surge in speculative demand forced industrial users to close out short positions, traders said, pushing the metal through long-term chart resistance…the backwardation in the market – a formation in the forward curve in which the price of metal for future delivery is below the spot price – can suggest a near-term shortage of metal and has recently steepened, prompting a wave of buying…Standard Chartered says “supply and demand dynamics suggest that the market is not only in deficit this year (minus 563,000 ounces) but – in the absence of Russian state stock releases and elevated auto-catalyst demand – is set to be undersupplied longer term.”
Update: Gold vs. U.S. 10-Yr. Treasury Yield
Keep an eye on the trend with regard to the yield for U.S. 10-year Treasury notes which generally move inversely with the price of Gold…the yield in Q4 last year hit highs not seen since late 2014 before backing off modestly during the first half of 2017…Gold, meanwhile, has travelled from $1,150 to nearly $1,300 during that time…
John’s 5-year monthly chart shows that Gold is in a favorable position at the moment relative to the 10-year Treasury yield unlike the situation in the middle of last year when bullion became very overbought vs. the 10-year yield…
Crude Oil Update
Crude Oil is trying to bounce back from a couple of rough weeks (down 4% last week)…there was sort of an anti-climatic feeling following meetings late last month when OPEC and certain non-OPEC producers agreed to extend their production cut by 9 months to the end of March 2018…
WTI has a strong support band between $43 and $45 a barrel but physical markets remain bloated, especially from a relentless rise in U.S. drilling…8 Oil rigs were added in the week to June 9, bringing the total count to 741 which is the most since April 2015, according to energy services firm Baker Hughes…
This drive to find new Oil has pushed up U.S. output by more than 10% since mid-2016 to 9.3 million barrels per day (bpd)…the Energy Information Administration says that figure will likely rise above 10 million bpd by next year, challenging top exporter Saudi Arabia…
Cobalt (And Silver) Country – Northern Ontario
One of the most interesting developments in Canadian exploration, one that offers investors compelling opportunities both short-term and longer-term, is the renewed focus on the prolific northern Ontario Silver-Cobalt district thanks to a doubling of Cobalt prices since last fall…this region was the birthplace of Canadian hard rock mining in the early 1900’s when an incredible Silver boom led to more than 100 mines and created enormous wealth…
Today we’re pleased to introduce Gino Chitaroni, the “King of Cobalt” in northern Ontario…in the days ahead, Gino will be sharing with BMR readers his wealth of knowledge regarding this district…he’s a lifelong resident of Cobalt, a respected entrepreneur, prospector and powerful advocate for mining and exploration in northern Ontario…he’s also President of Polymet Labs in Cobalt and knows every move that’s happening in the Greater Cobalt Camp…
Click on the arrow to view Part 1…
In today’s Morning Musings…
1. Updated charts for 2 northern Ontario Cobalt Camp plays…
2. GT Gold perks up as Saddle Zone drilling draws near…
3. The Power of Pretium…
4. Daniel’s Den – the life of a successful trader!…
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
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Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
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Jon,
You did last met with Frank Basa (GGM and CSR), what is your view on how he is deviding his attention and work towards the 2 companies? It seems to many investors his focus and marketing is on CSR? Or do you have a different view and impression? Thank you in advance…
Regards,
Arjan
Comment by Arjan — June 12, 2017 @ 11:34 am
My take on that, Arjan, is that Frank is working exceptionally hard on both. It’s just that given the circumstances surrounding CSR with an ongoing exploration program, and the broader market curiosity over Cobalt, his efforts with CSR are simply more visible. GGM is a completely different situation and as a result, what’s going on there is happening mostly behind the scenes as it should. Given the resource estimate, behind the scenes stuff IMHO could even involve discussions with majors, plus of course there’s the DRA angle.
Comment by Jon - BMR — June 12, 2017 @ 11:59 am
CSR Samples 1.8% Cobalt and 8.6% Nickel at Castle
COQUITLAM, BC, June 12, 2017 /CNW/ – Castle Silver Resources Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the “Company” or “CSR”) is pleased to announce that chip sampling from the back of a quartz-carbonate vein on the first level of the Company’s 100%-owned Castle mine near Gowganda, Ontario, has confirmed the presence of high-grade cobalt and nickel. This is significant as previous mine operators, from the early 1900’s to 1990, only assayed for silver in their exclusive focus on exceptionally high-grade silver production.
Highlights of the first five chip sample results, all strongly mineralized, are as follows:
1.8% cobalt, 8.6% nickel and 25.2 g/t silver (CSR-17-S03)
1.6% cobalt, 7.6% nickel and 32 g/t silver (CSR-17-S04)
0.81% cobalt, 5.9% nickel and 4.1 g/t silver (CSR-17-S01)
Underground sampling covering multiple target areas continues at Castle ahead of drilling.
Frank Basa, CSR President and CEO, stated: “We are very pleased with these initial results which demonstrate how Castle features strong upside potential for unmined cobalt and base metal mineralization throughout 11 levels covering a footprint 727 meters east-west, 455 meters north-south and 258 meters deep. Significantly, our proprietary Re-2OX process is designed for high recovery of multiple metals and elements, opening opportunities that simply didn’t exist decades ago at this mine or throughout the northern Ontario Silver-Cobalt district.
“We refer investors to our May 1 news release and the importance of the 300-meter thick Nipissing diabase intrusive that underlies a large portion of the property.” Basa concluded.
Castle Sampling Details
The first five chip samples (CSR-17-S01 through CSR-17-S05) averaged 1.06% cobalt, 5.3% nickel and 17.5 g/t silver. They were taken along a 4-meter length of a vein as wide as 30 cm a short distance inside the adit. The vein pinches and swells for an estimated 90 meters.
CSR cautions investors that the chip samples are selective samples and should not be considered representative of the mineralization hosted within the target area.
Meanwhile, CSR is completing a series of bulk samples that are being put through the company’s proprietary Re-2OX hydrometallurgical process to produce high purity cobalt powders for battery sector end buyer evaluation.
Quality Assurance/Control
A series of chip samples, totaling approximately 200 kg, were taken along a 4-metre length of the vein. Tarps were placed on the ground under the vein to collect the sampled material which was subsequently placed in 5-gallon pails and rice sacks. A total of 5 composite samples were taken from the 200 kg bulk sample and transported by truck to Swastika Laboratories, an accredited lab, in Swastika, Ontario for assay with analysis by aqua regia digestion and atomic absorption finish. The remainder of that material will be submitted to SGS Laboratories in Lakefield, Ontario to use the Re-2Ox process to develop samples for evaluation for the Asian battery market. Samples at Swastika were crushed to 75% passing 2 mm, split to 250 grams and pulverized to 80% passing 200 mesh. Acid was then applied to a small pulp.
Qualified Person
Claude Duplessis, P.Eng., of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing on the exploration and development of past producing silver and cobalt mines in northern Ontario including the Castle Silver-Cobalt Project near Gowganda and the Beaver and Violet mines near Cobalt. Additional information on the Company’s properties and strategies related to the battery sector are available by visiting its website at http://www.CastleSilverResources.com.
Comment by diesel — June 12, 2017 @ 1:17 pm
Wow. And there’s a lot more where that came from.
First company in district underground, first company with numbers.
Comment by Jon - BMR — June 12, 2017 @ 1:30 pm
CSR – Wow! I know it’s selected samples but how much more is there? The bulk sample will give us a better understanding
Comment by Dan1 — June 12, 2017 @ 1:33 pm
Those nickel samples were extremely high as well! How much more nickel is there is the other question. It does seem to go hand in hand with the cobalt.
Comment by Dan1 — June 12, 2017 @ 1:42 pm
Elon better lock up the cobalt supply because the Chinese and Japanese are a comin. Frank said that they are extremely interested and knew everything about the Castle property.
Comment by Dan1 — June 12, 2017 @ 1:46 pm
What intrigues me about this district, Dan, is not only the remaining Silver potential and the overlooked Cobalt jackpot, but the underexplored Nickel, Zinc and Gold possibilities. This area is a geological wonder. Awesome summer coming up!
Comment by Jon - BMR — June 12, 2017 @ 1:51 pm
Jon, what happened to BCK today – Ugh.
Comment by dave — June 12, 2017 @ 2:26 pm
That was great, Dave—been hoping for some supply to enter the market and that’s what happened (Kaiser has also just come out with a buy recommendation on BCK, by the way). The paper that came into the market today is from a 10-cent PP but there was no warrant attached to that PP and I don’t believe there will be a great deal more available around these prices, but $5 million market cap for what they have – unbelievable. This is how you make really good money in the market. The end game here is accumulate now and ride this into September with much higher prices by then. Compare BCK’s historical resource with Tinka’s, and you’ll see what I mean.
Comment by Jon - BMR — June 12, 2017 @ 2:38 pm
High Volume Alert(s)! …APN +1030% …MBII +670% …OCN +360% …KOR +300% …POE +260% …PRG +250% …PLY +150% …REN +110% …VEIN +100% and …CSR +100%
Comment by Daniel — June 12, 2017 @ 2:41 pm
For comparison, Raglan nickel district – shows grades of 1.3-1.6 %. Royal nickel Feasibilty study uses 0.28% ? nickel grade, voisey bay grade around 1.63% nickel, .85% copper, 0.09% cobalt
Comment by donald — June 12, 2017 @ 2:44 pm
Castle’s Beaver property results from 2013 hand cobbed sample also showed approximateley 8% cobalt, 4% nickel and lots of silver. interesting.
Comment by donald — June 12, 2017 @ 2:50 pm
Having been inside that first level of the Castle mine, I know we’re going to see a lot more really stellar grades. Veining continues from the entrance right to the end – about 360 m going east-west, and the same going north-south. Many areas to target. In some instances the Silver will spike much, much higher with lower Cobalt and Nickel; in other instances, really high-grade Cobalt and Nickel and lower Silver like today’s numbers. Previous operators focused on just the very high-grade Silver (3 oz/ton cut-off) and the quartz carbonate veins with visible Cobalt generally weren’t touched. I expected some Nickel but these Nickel numbers are amazing.
Today’s first results bode really well for the creation of high purity Cobalt powders through the Re-2OX process.
Keep in mind, Cobalt grades in the Congo – where most of the world’s supply comes from – are around 1-tenth of 1%. Grades like the ones reported today by CSR are truly world class. Of course this is just the sampling stage, and drilling will provide a much better picture, but CSR is definitely onto something very significant.
Comment by Jon - BMR — June 12, 2017 @ 3:05 pm
Buy Relevium – symbol RLV big breakout coming
Comment by Bernie — June 12, 2017 @ 3:49 pm
Jon,
If you look at CSR and GGM. With the latest information do you think they are better of as separated companies or would it have been better CSR was still fully part of GGM as of as the situation before the spin off? And why are the Castle shares and warrants delivered to GGM shareholders seen as a dividend and therefor taxed? Was there no other option? Thank you in advance. Always a pleasure reading your feedback.
Regards,
Arjan
Comment by Arjan — June 12, 2017 @ 4:01 pm
Arjan, it made perfect sense to spin-off CSR. With regard to your other question, that’s the way the CRA (Canadian Revenue Agency) views these things. No way around that.
Comment by Jon - BMR — June 12, 2017 @ 4:13 pm
I am assuming the 10 cent pp on BCK is in ‘friendly’ hands Jon? When do they expect to close the 25 cent pp?
Comment by STEVEN1 — June 12, 2017 @ 5:24 pm
Any Kaiser link for BCK?
Comment by STEVEN1 — June 12, 2017 @ 5:25 pm
found it: https://secure.kaiserresearch.com/s4/KaiserBlog.asp?ReportID=792474&_Type=Kaiser-Blog&_Title=KMW-Blog-June-9-2017-Discovery-Watch-with-Jim-Goddard-and-John-Kaiser
Comment by STEVEN1 — June 12, 2017 @ 5:25 pm
Jon… Can you shed any light on Tower Resources? There has been some quiet accumulation lately with some good price movement but very little news.
Comment by Bryan — June 12, 2017 @ 6:12 pm
We’ve kept an eye on Tower going back to last summer, Bryan, when we first mentioned it…made a nice move and then flat-lined for more than 8 months before bursting to new highs again this month…I find the valuation a little excessive based on the stage they’re currently at, plus technically the stock is now fighting some overbought conditions…certainly worth keeping on the radar screen and watching closely for results out of their B.C. properties…
Comment by Jon - BMR — June 12, 2017 @ 6:37 pm
Thanks Jon.
Comment by Bryan — June 12, 2017 @ 8:40 pm
Noront’s nickel was similar.. stock went from 2 to 7 .. but that was drill core… exciting times??
Comment by jeremy — June 13, 2017 @ 6:15 am
Hi Jon, Do you know what this comment means or suggestws in the CSR news release?
“””We refer investors to our May 1 news release and the importance of the 300-metre-thick Nipissing diabase intrusive that underlies a large portion of the property,” concluded Mr. Basa.””””
Comment by donald — June 13, 2017 @ 6:45 am
I would take that to mean or suggest, Donald, that CSR’s interpretation of the mineralizing events at Castle is proving to be very accurate – and investors are being reminded again about how a 300-m thick diabase intrusive underlying most of the property has cooked up something quite extraordinary. Big upside potential beyond the high-grade Silver that was produced historically at this property.
Comment by Jon - BMR — June 13, 2017 @ 9:41 am
Can Csr get cash from the bulk sample? Is it worth trading on another exchange for more exposures?
Comment by donald — June 14, 2017 @ 4:21 am