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May 17, 2017

7 @ 7:00

Check back later today for an evening edition of Daniel’s Den (BMR Morning Musings returns Friday as Jon is travelling on special assignment).

1. This is a special early edition of 7 @ 7:00 due to travel in preparation for some BMR special coverage…Gold, at a 2-week high with growing evidence of significant further upside potential through the balance of this quarter, has traded between $1,241 and $1,247 so far today as it continues to benefit from political distractions in Washington, concerns over North Korea and a U.S. dollar that continues to suffer technical deterioration…the Dollar Index has fallen to its lowest level since early November; increasingly, the trend in the greenback for the balance of the year is looking unfavorable and that’s bullish for commodities and the Ventureas of 3:00 am Pacific, bullion is up $9 an ounce at $1,246…the Fed is still expected to raise interest rates next month, though futures traders have cut the odds from 100% to about 75%…what will the Fed be able to do after June 14 is the question many traders are starting to ask and that’s one reason why the greenback has come under pressure…

2. The world’s two biggest Oil producers, Russia and Saudi Arabia, sent Crude prices higher yesterday with a rare joint statement that output cuts should be extended into March 2018…the Russia-Saudi message is the strongest signal yet that OPEC and a coalition of producers outside the cartel will continue their efforts to influence Oil prices by cutting supply, despite production increases in North America and elsewhere…OPEC’s 13 members and 11 non-OPEC producers agreed last year to cut almost 1.8 million barrels a day through June in hopes of bringing supply and demand back into balance…those efforts have been more challenging than expected but are yielding some results…WTI, trying to reclaim support above $48, is off slightly at $48.53 as of 3:00 am Pacific

3. The Venture posted its 5th straight advance yesterday, closing at 808 and just 1 point below its monthly high which came on May 1…one notable mover yesterday was Barkerville Gold (BGM, TSX-V) which closed at a new 4+ year high of $1.26…markets will take the path of least resistance and the Venture’s superb support in the high 700’s appears more powerful than resistance around 850 as the bull market prepares for its next phase…futures are pointing toward a lower open on Wall Street this morning…

4. Nighthawk Gold (NHK, TSX-V) climbed 8 cents yesterday to close at a new 5-year high of $1.06, confirming a breakout above 97 cents Fib. resistance on a long-term monthly chart…Nighthawk started a 25,000-m drill program early last month at its 100%-owned Indin Lake Gold Property in the Northwest Territories which includes the Colomac Project and multiple other targets within a highly prospective regional package with obvious multi-million ounce potential…

5.  Granada Gold (GGM, TSX-V) has revealed a maiden high-grade Inferred resource of 10.4 million tonnes grading 4.6 g/t Au (1.5 million ounces) at a cut-off grade of 1.5 g/t Au over 600 m of strike length in a new discovery area at depth immediately north of its previously outlined LONG Bars Zone near-surface deposit at the Granada Gold Property near Rouyn-Noranda, Quebec…only a fraction of the total area of 1.8 km x 2.1 km north of the Measured and Indicated LONG Bars Zone has been drill-tested, and GGM will be targeting additional tonnage and even higher grades in this under-explored part of the property…meanwhile, the company’s updated Block Model reveals 4.98 million ounces at Granada (1.53 million M&I, 3.45 million Inferred) in areas drilled to date, nearly double the amount estimated in the initial 2012 Block Model, a figure that along with the new high-grade underground resource will draw the attention of several companies that could be looking at Granada…DRA Global, one of the world’s leading vertically integrated engineering firms, continues to examine innovative solutions to put the open-pit deposit into production…technically, GGM has confirmed a breakout above 7 cents and a downsloping channel going back 1 year…Secutor Capital’s flow-through share supply is also rapidly dwindling and the near-term removal of that supply from the market will have bullish implications…

6.  RJK Explorations (RJX.A, TSX-V) is getting a $1 million boost to its treasury, a major development for a company with just 17 million shares outstanding…RJK has entered into a purchase agreement with New Gold (NGD, TSX) to sell to the producer all of its interest in its claims in the Blackwater district of British Columbia for total cash consideration of $1 million as NGD continues to consolidate the Camp…the sale is expected to close by the end of next month immediately following anticipated approval from RJK shareholders at a special meeting June 26RJK is current in the midst of a drill program at its very prospective high-grade Maude Lake Gold Property north of Kirkland…

7. Marathon Gold (MOZ, TSX) has released its updated financials, showing the company had $5 million cash on hand at the end of March…it’s also in the process of completing a $16 million bought deal this month through a syndicate of underwriters led by RBC Capital Markets…the proceeds from the financing will fund an aggressive program of infill and extension drilling at the Marathon and Leprechaun deposits; exploration drilling focused on showings between the Victory Northeast area and the Leprechaun deposit and extensions of the Spite deposit with favorable geophysical characteristics; a summer field exploration program including mapping, geochemical soil sampling and prospecting focused on the northeastern part of the Valentine Lake Property where there are indications of Gold mineralization but limited historical exploration activity; advanced environmental studies which will be used in economic studies on the project and for permitting; and a preliminary economic assessment following a resource update to incorporate the results of Marathon’s aggressive 2017 drilling program…MOZ closed at $1.15 yesterday and is viewed as one of our top Gold stocks for 2017

The most popular recent BMR articles…

Undervalued Quebec Gold Play on Verge of Fresh Catalysts

Venture Update – The Surprise That’s Just Around The Corner!

Their Last Deal Was Just Shy of a 100-Bagger!

The Best Kept Secret In Canadian

May 16, 2017

7 @ 7:00

Visit our comments section throughout the day for updates and helpful information, and check BMR later today for today possible separate post(s).

1. This is a special early edition of 7 @ 7:00 due to travelGold is up slightly as of 5:00 am Pacific, trading in a narrow range overnight between $1,232 and $1,236…bullion has demonstrated its very strong technical support in the low $1,200’s in recent sessions and respected TD Securities‘ commodity analysts Bart Malek and Ryan McKay see no reasons, not even a Fed rate hike, for Gold to fall below the $1,200 floor.  “The FOMC will continue to be very gentle in how it removes monetary accommodation,” they wrote in a report.   “A more robust hawkish attitude would only occur if they thought the economy will grow fast enough to place them behind the curve. Still, the risk that they do fall behind the inflation curve, as seen through the eyes of the Gold market, and equity market correction risk suggest investors don’t abandon Gold.”

2. Global Oil markets are on course to reach a supply-demand balance in 2017, the International Energy Agency (EIA) stated today in its closely-watched monthly report issued just 9 days before OPEC’s much anticipated ministerial meeting.  “In the first quarter of 2017, we might not have seen a resounding return to deficits but this report confirms our recent message that re-balancing is essentially here and, in the short term at least, is accelerating,” the IEA said…meanwhile, OPEC appears poised to extend Oil production cuts at its upcoming meeting, perhaps through the 1st quarter of 2018, with most investors expecting the 13-member cartel to continue with its attempts to eliminate a global supply overhang which has depressed prices to less than half their 2014 high…the EIA’s overall outlook for non-OPEC countries, 11 of which are voluntarily cutting production to support OPEC, shows growth of nearly 600,000 barrels a day in 2017, up from last month’s forecast of 490,000 barrels a day…

3.  Commodity prices historically perform the best when the Federal Reserve is raising interest rates, a study from Goldman Sachs shows…annual returns for the S&P GSCI Commodity Index average 19% when the Fed is raising rates in response to a strengthening economy…the Fed has forecast 2 more rate increases this year with the next one likely June 14…that hike could prove to be the trigger for a major summer advance in commodities and the Venture

4. The Venture posted its 4th straight advance yesterday with its best session in 2 months, an 11-point climb on strong volume as the Index finished at a monthly closing high of 805…markets will take the path of least resistance and the Venture’s superb support in the high 700’s appears more powerful than resistance around 850 as the bull market prepares for its next phase…in New York, the S&P 500 and NASDAQ closed at record highs yesterday on strength in Oil and tech stocks…

5.  Quebec Gold stocks grabbed investors’ attention yesterday as Eldorado Gold (ELD, TSX) announced it’s acquiring Integra Gold (ICG, TSX-V) in a deal valued at approximately $600 millionIntegra’s principal asset is the Lamaque Project near Val-d’Or which hosts an NI-43101 Indicated resource of 5.1 million tonnes at a grade of 9.13 g/t Au and an Inferred resource of 3.5 million tonnes at a grade of 7.94 g/t Au, at a cut-off of 5 g/t…just down the Golden Highway from Lamaque is Granada Gold’s (GGM, TSX-V) Granada deposit, and this morning GGM released an updated NI-43101 resource estimate and Global Classified Block Model for Granada with the big surprise being a 10 million tonne maiden Inferred resource grading 4.6 g/t Au (1.5 million ounces) immediately north of the previously known near-surface deposit which is already permitted for production based on the Company’s 2014 Pre-Feasibility Study…GGM stated, “The ‘heat engine’ for Granada mineralization is believed to exist in the northwest part of the property, a high priority untested area now referred to as the ‘Genesis Target’ that includes a large granite intrusion and intense shearing immediately south of the Cadillac fault.  An initial Inferred underground resource of 10,386,500 tonnes grading 4.56 g/t Au at a cut-off grade of 1.5 g/t Au (1.5 million oz. Au) has been outlined along 600 m of strike east of Genesis based on drilling by Granada Gold in late 2016 and early this year.  This is a major development in the evolution of the Granada Property and even higher grades are being targeted in the discovery area and to the west-northwest at Genesis which has never been previously drilled. Significantly, only a fraction of the total area (1.8 km north-south x 2.1 km east-west) north of the LONG Bars Zone Measured and Indicated near-surface resource has been drill-tested, further solidifying Granada as one of the premier exploration and development opportunities along the prolific Cadillac Trend.”  Meanwhile, GGM’s updated Block Model reveals 4.98 million ounces at Granada (1.53 million M&I, 3.45 million Inferred) in areas drilled to date, nearly double the amount estimated in the initial 2012 Block Model…GGM closed yesterday at 7.5 cents for a market cap of just $29 million

6.  In British Columbia, New Gold (NGD, TSX) has decided to pay Parlane Resource (PPP, TSX-V) $2.5 million for its Big Bear Property immediately northwest of New Gold’s Blackwater deposit…while that’s less value than what Parlane was hoping for from Big Bear, it’s nonetheless $2.5 million cash to give the company close to $3 million in the bank…Parlane has only 15 million shares outstanding, so that’s 20 cents per share in cash and the stock closed yesterday at 14.5 cents…the Big Bear sale is subject to a Parlane shareholder vote next month…deal is expected to close by the end of June…

7. Marathon Gold (MOZ, TSX) released updated financials last night, showing the company had $5 million cash on hand at the end of March…it’s also in the process of completing a $16 million bought deal this month through a syndicate of underwriters led by RBC Capital Markets…the proceeds from the financing will fund an aggressive program of infill and extension drilling at the Marathon and Leprechaun deposits; exploration drilling focused on showings between the Victory Northeast area and the Leprechaun deposit and extensions of the Spite deposit with favorable geophysical characteristics; a summer field exploration program including mapping, geochemical soil sampling and prospecting focused on the northeastern part of the Valentine Lake Property where there are indications of Gold mineralization but limited historical exploration activity; advanced environmental studies which will be used in economic studies on the project and for permitting; and a preliminary economic assessment following a resource update to incorporate the results of Marathon’s aggressive 2017 drilling program…MOZ closed at $1.15 yesterday and is viewed as one of our top Gold stocks for 2017

The most popular recent BMR articles…

Undervalued Quebec Gold Play on Verge of Fresh Catalysts

Venture Update – The Surprise That’s Just Around The Corner!

Their Last Deal Was Just Shy of a 100-Bagger!

The Best Kept Secret In Canadian Cobalt!

May 15, 2017

7 @ 7:00

Check back later this morning for today’s BMR Morning Market Musings.

1. Gold has traded between $1,228 and $1,238 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,235Gold is getting help from sharply higher Oil prices this morning in addition to a weaker U.S. dollar…media-hyped U.S. political turmoil, a successful missile test by North Korea, a worldwide cyber attack and some weaker-than-expected U.S. economic data have all combined to boost Gold’s safe haven status to begin the new week…Silver is bouncing back sharply after last week’s extreme readings, up 26 cents at $16.72

2. Crude Oil prices have climbed back above $48 a barrel after Russia got on board with Saudi Arabia to push for a longer extension than expected to the current deal among OPEC members and certain non-OPEC producers…speaking in Beijing today, Saudi Arabia’s energy minister, Khalid al-Falih, and Russia’s Alexander Novak said they want the current agreement to continue holding back around 1.8 million barrels of Oil from the market each day until the 1st quarter of 2018 through a 9-month extension… 

3. Another major swoops in to acquire a junior…Integra Gold (ICG, TSX-V) is up sharply this morning on the announcement that Eldorado Gold (ELD, TSX) is acquiring Integra for $1.21 per share through a combination of shares and cash…the deal values ICG at around $600 million…upon completion of the transaction and based on the maximum number of shares issuable under the arrangement, current Eldorado and Integra shareholders would hold approximately 90% and 10% of the combined company, respectively…Integra’s principal asset is the Lamaque Project near Val-d’Or which hosts an NI-43101 Indicated resource of 5.1 million tonnes at a grade of 9.13 g/t Au and an Inferred resource of 3.5 million tonnes at a grade of 7.94 g/t Au, at a cut-off of 5 g/t Au…a Preliminary Economic Assessment was completed in February 2017 that envisions a high-grade underground operation producing 123,000 ounces of Gold per year at all-in sustaining costs of $634 U.S. per ounce over 10 years…Integra is currently in the process of advancing underground ramp development to facilitate underground exploration and completion of a bulk sample…George Burns, President and CEO of Eldorado Gold, stated, “The Company has been following Integra’s progress at Lamaque over the last 18 months and commend their team for the accomplishments to date. From previous experience of building and operating Gold mines in Canada, I am excited about Eldorado’s entry into the Eastern Abitibi region of Canada. With our current balance sheet strength post the sale of our Chinese assets, this acquisition represents a use of the proceeds complementing our existing portfolio of high quality, low cost assets.”

4.  If Integra was undervalued at a market cap of $400 million, what does that make Granada Gold (GGM, TSX-V) just down the Golden Highway near Rouyn-Noranda, Quebec?…GGM is expected to release an updated resource estimate very soon for its Granada deposit which has multi-million potential in addition to indications of a significant high-grade discovery at depth immediately north of the LONG Bars Zone open-pit resource around 1 g/t Au…GGM is trading at 6.5 cents for a market cap of $25 million

5. Salazar Resources (SRL, TSX-V) has intersected 16 m (15.6 m true width) of massive and semi-massive chalcopyrite-sphalerite-pyrite grading 3.7 g/t Au, 117.4 g/t Ag, 4.9% Cu and 5.4% Zn in the northeast section of its El Domo resource in Ecuador (drill hole CURI-224), mineralization that is thicker and of higher grade than any previous results from this area…the intercept in CURI-224 is Gold-rich with the top of the mineralization grading 7.7 g/t Au over 6.3 m from 225.4 m to 231.7 m…this hole represents new exploratory drilling in an attempt to expand and upgrade the latest El Domo resource estimate released January 16, 2005…drilling continues at Salazar’s 100%-owned Curipamba VMS Project with just over half of the 10,000-m program completed to date…Fredy Salazar, President and CEO, commented:  “This new intersection indicates significant potential for finding thicker mineralization in the northeast area of El Domo resource which will increase the size and quality of the resource“…SRL is up a penny at 15.5 cents as of 7:00 am Pacific and has the potential to accelerate to the upside based on the impressive intersection in hole #224

6. The Venture snapped a 3-week losing skid last week and has started the 2nd half of May with a bang, up 12 points at 806 through the first 30 minutes of trading this morning…our latest Venture charts provide ample evidence that the nearly 8% mini-correction in the Index that started immediately after Easter was yet another “head fake” in the ongoing bull market and ended last Tuesday at 772the TSX is up strongly in early trading as are U.S. markets…

7.  White Gold (WGO, TSX-V) is up 3 cents at $2.08 as of 7:00 am Pacific after announcing this morning that it has commenced its 2017 exploration program on its portfolio of projects in the Yukon’s White Gold district…the focus of the company’s program is to drill test new and previously defined high priority Gold-in-soil trends and to further define and advance its other targets to drill ready status…200 RAB drill holes consisting of 20,000 m will test a minimum of 6 target areas on the Loonie, Dime, IND, Nolan and Black Hills properties…exploration activities including soil sampling, geologic mapping/prospecting, drone surveys, DC IP-Resistivity surveys, GT Probe sampling and/or RAB drilling to be conducted on 24 of the company’s 25 properties…very busy summer coming up for WGO

The most popular recent BMR articles…

Undervalued Quebec Gold Play on Verge of Fresh Catalysts

Their Last Deal Was Just Shy of a 100-Bagger!

The Best Kept Secret In Canadian Cobalt!

May 12, 2017

7 @ 7:00

Check back later this morning for Daniel’s Den (BMR Morning Market Musings returns soon) and other potential posts today.

1. Gold has traded between $1,226 and $1,232 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,230…a weekly close in the $1,230’s would certainly be a bullish sign going into the final half of May, but critical for Gold this week was bouncing off key support at $1,215…commodity traders will be keeping an eye on a host of Chinese macro releases due over the weekend…meanwhile, traders are expecting a 100% probability of an interest rate increase next month, according to CME Group’s FedWatch prior to fresh economic data released this morning…a rate hike June 14 has the potential to ignite a summer rally in the metal…

2. U.S. consumer sentiment for May, reported just moments ago, slightly exceeded expectations with the University of Michigan’s Consumer Sentiment Index rising to 97.7…that’s up from 97 in April and shows that the “Trump Bump” continues, much to the bewilderment of the mainstream media…meanwhile, the Commerce Department announced retail sales increased 0.4% in April from March…that was below expectations of 0.6%; however, sales had ticked up just 0.1% in March and fell in February…the increase suggests consumers may spur faster growth in the quarter of April through June after the economy just barely expanded in the first 3 months of 2017 despite a surge in consumer and business sentiment…

3. Net length in open Crude Oil futures positions is at its lowest level since November 2016 which sets the stage for further gains in Crude ahead of OPEC’s meetings later this month when the cartel and certain non-OPEC countries are expected to extend production cuts implemented at the beginning of this year…Crude has rebounded this week, thanks in part to the expectation of bullish news in a couple of weeks regarding the extension of production cuts while the latest U.S. inventory report has also helped…meanwhile, Norwegian consultancy Rystad Energy, commenting on how U.S. Oil production has gained “significant momentum“, predicts that U.S. Lower 48 (all states excluding Alaska and Hawaii) Oil production is set to expand by an additional 390,000 bpd from May 2017 to December 2017, assuming a WTI price of $50 per barrel…WTI is hovering just below near-term resistance at $48 this morning…

4. Commodity corruption:  The Wall Street Journal reported this morning that money from state-run Chinese companies was used to help finance the buildup of a massive Aluminum stockpile that has crisscrossed the globe, depressed prices and sparked a U.S. criminal investigation…any such involvement by these state-run entities has the potential to strain relations between the U.S. and China as the latter is clearly undercutting global competition by giving government assistance to its commodity companies…Aluminum is among several commodities that the Trump administration has singled out for potential protectionist policies against cheap Chinese imports…the stockpile in question involves nearly a million tons of Aluminum products from China that began accumulating outside a factory in a Mexican desert and was later transferred to Vietnam…WSJ tied the cache to Chinese billionaire Liu Zhongtian and his China Zhongwang Holdings Ltd. Aluminum company…his apparent goal, American competitors allege in federal complaints, was to disguise the origin of the metal, which could have faced U.S. tariffs as high as 374%…he was planning for retirement in Switzerland by shifting assets out of China where citizens can move only a limited amount of money out of the country…

5. The Venture is set to snap a 3-week losing skid which shaved 53 points or 6.3% off the Index in a mini-correction that closely mirrored the weakness in March…further evidence of strong support in the 780’s with the Venture up 3 points at 791 as of 7:00 am Pacific, 21 points above the weekly intra-day low during B.C. election day on Tuesday…the TSX has added 21 points in early trading with the Gold Index set to post a very strong week, currently up 6% from last Friday’s close…Markham, Ontario-based Real Matters Inc. closed its initial public offering of $156.7 million yesterday, the largest technology IPO on the Toronto Stock Exchange in a decade and only the 3rd tech company since 2014 to raise more than $100 million in its IPO. ..90% of the company’s business comes from the United States where it is a leading player in the network management services platform sector for the mortgage and insurance industries…

6. Transition Metals‘ (XTM, TSX-V) Canadian Gold Miner Corp., not yet publicly listed, has closed a private placement totalling $817,250 by way of the issuance of 5,294,998 units, each consisting of a common share and common share purchase warrant exercisable for 3 years at 25 cents per share at a price of 15 cents per unit, and the issuance of 115,000 flow-through eligible shares at a price of 20 cents….concurrent with the financing, Canadian Gold Miner has entered into a finder’s fee agreement with Gravitas Securities Inc., whereby Gravitas will endeavour to assist the company to complete additional flow-through financing of up to $1-million this spring…the planned use of proceeds includes drilling of the high-grade Bjorkman showing (Feb. 8, 2017, XTM news release) as well as a robust exploration program on Canadian Gold Miner’s South Kirkland project area…

7. Klondex Mines (KDX, TSX) has provided an updated mineral reserve estimate for its True North Gold mine in Manitoba…total Proven and Probable mineral reserve (underground) is 147,900 ounces, an increase of 25% from the prior estimate…the new figure is based on 7,877 drill holes totaling a whopping 1,504,878 m…this includes 131 drill holes totaling 18,065 m completed by Klondex since June 30, 2016.  Brian Morris, Senior VP Exploration, stated:  “This updated mineral reserve estimate is another milestone in the ramp-up of True North. As expected, the system is beginning to unveil its real potential as we continue to see robust grades and widths at depth as well as up-dip mineralization in the 710/711 zones.  We continue to make good progress ramping up the mine at True North with infrastructure being put in place. We expect production to be weighted to the 2nd half of the year and remain on track to meet our annual production guidance.”

The most popular recent BMR articles…

Wake Up, British Columbia!

The Best Kept Secret In Canadian Cobalt!

A 50,000-m Drill Program? 

May 11, 2017

7 @ 7:00

Check back later today for additional BMR posts.

1. Gold has traded between $1,219 and $1,225 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,221Gold doesn’t seem to be in agreement with the huffing and puffing of CNN, the New York Times and other Trump-hating liberal mainstream media that the President’s firing of FBI Director Comey threatens a constitutional crisis…nonetheless, Gold is starting to firm up after testing strong support at $1,215…Silver, which plunged to extreme oversold conditions earlier this week, is up 6 cents at $16.23…base metals are generally moving in a positive direction today, led by Copper ($2.50), Nickel ($4.20) and Zinc ($1.19)…

2. Global Silver mine production in 2016 recorded its first decline since 2002, largely the result of lower by-product output from the Lead/Zinc and Gold sectors, according to the latest study by the Silver Institute…the Institute said that Silver scrap supply to the market posted its lowest level since 1996; total Silver supply decreased by 32.6 million ounces in 2016…these findings, and other key components of the Silver market, are discussed in the World Silver Survey 2017 released today by the Silver Institute and produced by the GFMS Team at Thomson Reuters (GFMS).  “Global Silver mine production declined by 0.6% in 2016 to a total of 885.8 Moz. A large proportion of the drop was attributable to the Lead/Zinc and Gold sectors, where production dipped by a combined 15.9 Moz,” the  Institute said…

3. OPEC data released today showed the cartel reduced production further in April, even as top Oil exporter Saudi Arabia raised output by almost 50,000 barrels a day…overall, OPEC production decreased slightly in April to an average of 31.73 million barrels a day…meanwhile, data released by the Energy Information Administration (EIA) yesterday showed a much better than expected drop in U.S. Crude stockpiles in the week ended May 5…the EIA figures also revealed a surprise decrease in gasoline and distillate inventories, which helped mitigate worries that U.S. commuters weren’t soaking up enough gasoline to offset supply…gasoline demand rose to the highest level since late March to more than 9.2 million bpd, but still down 2.4% from the same period last year, according to the data…market participants are still watching the ramp-up in production from multiple producers, including the U.S. and Canada, which some fear may offset OPEC’s cuts…U.S. Crude production climbed for the 12th straight week for the 7 days ended May 5 and reached its highest level since mid-2015 at 9.3 million barrels a day, according to Commerzbank analysts…WTI is up 48 cents at $47.81 as of 7:00 am Pacific

4. Multiple major banks are viewing the recent pullback in Oil and commodities in general as a tremendous buying opportunity based on the belief that the global economy is accelerating, and more evidence of the growth surge will be apparent during the 2nd half of the year (this view is consistent with how the Venture has been trading and its bullish long-term technical outlook).  “For the first time since the Great Recession, we have a situation where all major economies are pulling in the same direction,” said Bart Melek, head of commodities strategy at TD Securities, referring to the period between 2007 and 2009

5. Superb Venture support in the 780’s continues, and that bodes well for what could turn out to be a strong 2nd half of the month…the Index is up another 3 points at 786 through the first 30 minutes of trading…Quantum Numbers (QNC, TSX-V) is this morning’s volume leader, up 2 pennies at 17 cents as of 7:00 am Pacific on more than 3 million shares…John’s chart 3 weeks ago on QNC showed a good probability of a breakout above Fib. resistance at 17 cents…former Venture-listed NexGen Energy (NXE, TSX) announced this morning that its shares will begin trading on the NYSE under the NXE symbol May 17 in addition to its listing on the TSX…the TSX is off marginally in early trading, though the Gold Index has climbed 5 points to 210, while U.S. markets are in broad retreat after the S&P 500 and the NASDAQ both posted all-time closing highs yesterday…the Dow is off 124 points through the first 30 minutes of trading…

6. TomaGold (LOT, TSX-V) has made a nice moving in early trading, up 2 pennies at 10 cents as JV partner IamGold (IMG, TSX) reported results from the first 11 drill holes, totalling just over 5,100 m, from a total of 24 diamond drill holes completed this past winter at Monster Lake, 50 km southwest of Chibougamau in northern Quebec…results featured high-grade intercepts from 3 separate holes including 3.1 m grading 121.7 g/t Au in ML17194 (includes 1.1 m @ 317 g/t Au)…IamGold says that once the remaining assay results are received, they will be assessed and may lead to an estimation of an initial mineral resource by year-end…further drilling will be required to evaluate the potential of the new mineralized areas, the timing of which will be dependent on ground conditions to allow the access of drilling equipment…   

7. Ongoing drilling at Pure Gold’s (PGM, TSX-V) Russet South target at its 100%-owned Madsen Project at Red Lake continues to intersect Gold in multiple zones across a broad area spanning 650 m x 650 m, with all zones open for expansion…drill hole PG17364 returned 27.1 g/t Au over 5.8 m along the lower contact of a key ultramafic unit, building continuity with a zone identified earlier as Alpha…the sparsely tested upper contact of the same unit returned 80.7 g/t Au over 1 m in hole PG17391 and 11.3 g/t Au over 1 m approximately 200 m to the north. The association of very high Gold grades along the contacts of folded ultramafic units is directly analogous to the setting of the High Grade Zone at Goldcorp’s Red Lake Mine as well as the 8 Zone at Madsen, which occurs 1,600 m down dip from Russet South,” said Darin Labrenz, President and CEO of Pure Gold. “To date, the Russet South Target has delivered an exceptional hit ratio, with 37 out of 101 holes drilled to date by Pure Gold showing visible Gold and reporting intercepts in excess of 5 g/t Gold.”

The most popular recent BMR articles…

Wake Up, British Columbia!

The Best Kept Secret In Canadian Cobalt!

A 50,000-m Drill Program? 

May 10, 2017

7 @ 7:00

Check back later today for Daniel’s Den (Morning Musings resumes after editor returns from special assignment) and visit our comments section throughout the day for updates and helpful information.

1. Gold has traded between $1,221 and $1,227 so far today after bouncing off support yesterday at $1,215as of 7:00 am Pacific, bullion is up $2 an ounce at $1,223…Silver, attempting to pull out of extreme oversold conditions, has added 6 cents to $16.22…Silver is very close to a turnaround given base support at $15.75 and extreme technical conditions not seen at any time since precious metals broke out early last year…any brief dip below $16 will be pounced on by bargain hunters…base metals are flat with Copper hovering around strong support in the high $2.40’s

2. Current weakness in Gold is getting some support from buyers in India who have stepped up to the plate…India’s Gold imports in April more than doubled from a year ago to 75 tonnes on strong demand, according to provisional data from consultancy GFMS…Indians in the last week of April celebrated the holy festival of Akshaya Tritiya, when buying Gold is considered auspicious, while jewelers continue to stock up ahead of implementation of a new national sales tax (GST) in July…

3. Crude Oil prices have firmed up this morning after a larger-than-expected fall in U.S. Crude inventories, but concerns about rising output from the U.S., Libya and Nigeria continue to concern traders…the American Petroleum Institute, an industry group, reported yesterday that U.S. Crude inventories fell by 5.8 million barrels last week, more than the 1.8 million-barrel slide analysts predicted…investors are now waiting to see if those numbers are confirmed this morning by official figures on weekly U.S. Crude and Oil product inventories from the U.S. government’s Department of Energy…WTI is 65 cents higher at $46.53 as of 7:00 am Pacific

4. A 5th straight majority government is still within the grasp of British Columbia’s Liberal Party…1 exceptionally close riding from yesterday’s election is going to a recount with absentee ballots also not yet factored in…preliminary results have given the Liberals a minority government with 43 seats vs. 41 for the NDP and 3 for the Green Party, despite polls that predicted an NDP victory…however, with all votes counted in the Courtenay-Comox riding on Vancouver Island with the exception of absentee ballots, the NDP leads the Liberals there by a razor-thin 9 votes…mainstream national media seem oblivious to the fact that this riding is still very much up for grabs and the final election result could be thrown into the courts…interestingly, the Liberal candidate is Jim Benninger, the former Base Commander at CFB Comox (2011 to 2014), and absentee ballots are often cast by military personnel who traditionally are not NDP voters…those ballots may not be counted for up to 2 weeks; combined with a full riding recount, the final outcome for Courtenay-Comox and the election will not be known until late this month, perhaps later in the event of a judicial review…odds seem to favor a Liberal victory in Courtenay-Comox but all votes must be respected and counted…the resource sector has been given a reprieve with the NDP blocked from victory but a 44th Liberal seat for the slimmest of majorities will be critical to give Premier Christy Clark and her party the ability to effectively push through legislation and fully protect the resource sector…

5. The Venture has gained 4 points to 778 as relief sets in that the NDP has not swept to victory in B.C.’s election…however, the Index could use a rebound in commodity prices and some great news somewhere on the exploration front…the TSX is up marginally in early trading while U.S. markets are off slightly in the wake of President Trump’s firing of FBI Director Comey late yesterday…the Volatility Index (VIX), also known as the market’s “fear gauge,” dropped to its lowest level since 1993 this week but contrarians should be wary of that…

6. Deveron UAS (DVR, CSE) is trading at levels not seen since last summer with DVR up 2 pennies at 55 cents as of 7:00 am PacificDVR’s moment seems to have finally arrived…the company is completing a game-changing $2+ million financing and the first $1.3 million tranche closed about 3 weeks ago…DVR is unique as it dominates and leads innovation in drone-data-related precision agriculture in Canada while the company is also breaking into the American market…the financing is giving Deveron the leverage it needs to expand its drone fleet and is also bringing more liquidity to the stock…

7. Osisko Mining (OSK, TSX) has released new high-grade results this morning from a continuing drill program at its 100%-owned Windfall Lake Gold Project in Urban township, Quebec…highlights include 421 g/t Au over 3.7 m, including 3.74 kilograms/t Au over 0.4 m containing spectacular visible Gold (27.8 g/t Au over 3.7 metres cut to 100 g/t) in DDH OSK-W-17834; 11.7 g/t Au over 7.7 m in Lynx 4 discovery DDH OSK-17816; and 10.4 g/t Au over 4.9 m in DDH OSK-17802…the current 400,000 m drill program combines definition drilling above the Red Dog intrusion, expansion drilling above and below Red Dog, expansion drilling to the NE of the main deposit, and exploration drilling on the greater deposit and Urban-Barry Project area…OSK is up a dime at $4.46 through the first 30 minutes of trading…

The most popular recent BMR articles…

Wake Up, British Columbia!

The Best Kept Secret In Canadian Cobalt!

A 50,000-m Drill Program? 

May 9, 2017

7 @ 7:00

Check for additional posts today, including B.C. election report tonight, and visit our comments section throughout the day for updates and helpful information.

1. Gold has traded between $1,219 and $1,229 so far today…as of 7:00 am Pacific, bullion is down $7 an ounce at $1,219 where it’s in the immediate vicinity of support at $1,215…extreme oversold conditions have emerged in Silver which often moves ahead of Gold…Silver, off a dime at $16.10, is very close to a turnaround given base support at $15.75 and extreme technical conditions not seen at any time since precious metals broke out early last year…any brief dip below $16 will be pounced on by bargain hunters…

2. Current weakness in Gold is getting some support from buyers in India where Gold imports in April more than doubled from a year ago to 75 tonnes on strong demand, according to provisional data from consultancy GFMS…Indians in the last week of April celebrated the holy festival of Akshaya Tritiya, when buying Gold is considered auspicious, while jewelers continue to stock up ahead of implementation of a new national sales tax (GST) in July…

3. Crude Oil prices are off modestly at $46.00 as of 7:00 am Pacific…weekly U.S. data on Crude production and inventories, plus monthly reports on supply and demand from OPEC and the U.S. Energy Information Administration (EIA) this week, should provide a detailed picture of how quickly global Crude inventories are falling…for now, WTI is in a new range between $43 (support) and $48 (resistance) even as Saudi Arabia, Russia and Kuwait suggested that OPEC and other major Crude-exporting nations were poised to extend their 6-month deal to cut output, perhaps into 2018

4. The S&P 500 and the NASDAQ again hit new all-time highs in early trading today as earnings season nears an end…according to data from FactSet, 75% of the S&P 500 components that had reported as of last Friday had topped bottom-line expectations while 66% had beaten sales estimates…in Toronto, the TSX has slid 36 points while the Venture is off 4 points at 776…..

5. British Columbia Premier Christy Clark, one of Canada’s most talented political communicators, has effectively mobilized her liberal-conservative free enterprise base over the past 2 weeks and has put the B.C. Liberal Party on the verge of another majority government entering today’s election, according to BMR modeling…many polls, however, continue to suggest an NDP minority or even majority government…the Liberal Party, with a superior get-out-the-vote “ground game” than its NDP and Green Party opponents, has presided over the fastest-growing economy in Canada through low taxes, balanced budgets and a pro-resource agenda that includes a call for 8 new mines to be opened by 2020…Clark’s message has particularly resonated in the province’s resource rich Interior and North where the Liberals have gained momentum and will also benefit from NDP-Green vote-splitting…the Liberals are positioned to sweep at least 80% of that region’s 31 seats…combined with an expected solid performance in Metro Vancouver, as well as some bleeding of NDP support to the Greens on Vancouver Island, the Liberals are well positioned for a 5th straight election victory tonight…

6. Barkerville Gold Mines (BGM, TSX-V) released more high-grade results this morning from its continuing Phase 2 Island Mountain drill program at its Cariboo Gold Project…exploratory drill hole IM-17101 has expanded the footwall extents of the Shaft Zone by intersecting numerous previously unidentified vein sets including 12.5 g/t Au over 3.75 m (130 m below surface), 13.3 g/t Au over 11 m (200 m below surface), and 7.6 g/t Au over 11.75 m (250 m below surface)…the new veining occurrences are open for expansion in all directions…4 drill rigs are currently delineating additional mineralization below the former Aurum and Cariboo Gold Quartz mines which have never been explored since mining operations ceased more than half a century ago…BGM is unchanged at 96 cents as of 7:00 am Pacific

7. Mariana Resources (MARL, TSX-V), up sharply since the announcement of its pending acquisition by Sandstorm Gold (SSL, TSX), has reported further impressive high-grade Gold-Copper mineralization from infill and extension drilling at the Hot Maden Project in Turkey…drill hole TD-109 in the Main Zone cut 75 m @ 17.2 g/t Au + 1.89% Cu from 212 m downhole…meanwhile, the Southern Deposit discovery has been expanded as HTD-117 returned 3 separate high-grade Gold intercepts including 7 m at 16.5 g/t from 233 m downhole…a 3rd diamond drill rig has now arrived on site at Hot Maden and is operating in tandem with the original 2 drill rigs…

The most popular recent BMR articles…

Wake Up, British Columbia!

The Best Kept Secret In Canadian Cobalt!

A 50,000-m Drill Program? 

May 8, 2017

7 @ 7:00

Check back later today for additional BMR posts.

1. Gold has traded between $1,228 and $1,237 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,229…after breaking out in late March/early April above a downtrend line on the daily chart going back to last summer, and climbing as high as the $1,290’s, Gold has retraced in a normal throwback to that downtrend line, testing potential new support (including Fib.) around $1,230…next support is $1,215…hedge funds and other money managers cut their net-long position in COMEX Gold for the first time in 7 weeks, in the week to May 2, while they reduced their bullish stance in Silver to the lowest since January, U.S. government data showed on Friday…China’s Gold reserves were unchanged at 59.24 million ounces in April, the country’s central bank said over the weekend, and the euro hit a 6-month high against the U.S. dollar today after globalist Mannuel Macron comfortably won the French Presidential election…the Dollar Index, however, is still up one-fifth of a point at 98.98

2. Crude Oil prices are slightly in the green again today after Friday’s rally that started after a plunge that took WTI as low as $43.76…Crude is trading at $46.28 as of 7:00 am Pacific, helped by Russia’s comments today that it’s discussing prolonging cuts with other producers beyond 2017, without giving a clear timeline…Saudi Arabia’s Energy Minister Khalid Al-Falih also talked of the possibility of prolonging curbs beyond this year…countering those efforts, U.S. drillers added Oil rigs for a 16th week in a row last week, extending a drilling recovery into a 12th month, energy services firm Baker Hughes confirmed on Friday…since a low point in May 2016, U.S. producers have added 387 Oil rigs, an increase of more than 120%…

3. The S&P 500 and the NASDAQ each notched new all-time highs in early trading to begin the new week this morning…the Venture, meanwhile, has recovered 3 more points to 784 as of 7:00 am Pacific after last week’s slide that sent the Index to a 4-month low of 774

4. The mining sector has much at stake as British Columbians head to the polls tomorrow with Premier Christy Clark’s free enterprise coalition Liberal Party gunning for a 5th straight victory, though most polls have the NDP in the lead which has helped shape the media narrative in recent weeks…the pollsters and mainstream media will likely be discredited again tomorrow…in their platform, the Liberals say they want to see 8 new mines launched in B.C. by 2020, and point to new mines opened under their tenure and those under construction including the $811-million Brucejack Gold mine in the Eskay Heart of Gold Camp….the NDP has long been hostile to the resource industry in B.C. and hasn’t changed its tune in this election…it’s vigorously opposed to the TransMountain Pipeline expansion (construction for the approved project begins in September) and also says it will amend the environmental assessment process to “respect the legal rights of First Nations” and meet the public’s expectation of a “strong, transparent process”…the Green Party, equally hostile to the resource sector but likely to win at least a couple of seats on Vancouver Island, says it will establish a “natural resource sector-wide compliance and enforcement unit” in the province (the Green Gestapo, it seems, as compliance and enforcement are already part of the B.C. regulatory regime)…

5. Cartier Resources (ECR, TSX-V) has arranged a bought deal hard dollar financing at 27 cents per share to raise gross proceeds of $6 million…the funds will be used to fund further exploration on the company’s Chimo mine, Wilson, Benoist and Fenton properties in northwest Quebec, and for general working capital purposes…ECR is quiet this morning after closing Friday at 28.5 cents…

6. Ascendant Resources‘ (ASND, TSX-V) El Mochito Zinc mine in Honduras hoisted 52,912 tonnes of ore in the month of April, a 13% improvement vs. the month of March (1,960 tpd vs. 1,733 tpd), the company reported this morning…the 1,960 tpd figure exceeds guidance by 6%…Ascendant also announced that a new collective 3-year bargaining agreement with union leadership has been achieved to the satisfaction of all parties and ratified by the Minister of Labour of Honduras…the successful conclusion of negotiations without further disruption of work reflects the improving relations since the company’s acquisition of the El Mochito mine in Honduras in December of last year…ASND is up a penny at 74 cents through the first 30 minutes of trading…

7. Columbus Gold (CGT, TSX) issued a news release this morning congratulating Emmanuel Macron on being elected President of France.  “In 2015, as the then French Minister of Economy, Emanuel Macron visited Columbus Gold’s Montagne d’Or Gold Project in French Guiana (a Region of France) and expressed his strong support for its development.  His visit received coverage by national media…we would like to extend our congratulations on the occasion of your Presidential victory, and express our trust in your vision of guiding France through a future of economic growth and prosperity,” stated CGT CEO and Chairman Robert Giustra…

The most popular recent BMR articles…

Wake Up, British Columbia!

The Best Kept Secret In Canadian Cobalt!

A 50,000-m Drill Program? 

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