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October 3, 2017

The Template For The Next 10% Stake In Garibaldi Resources

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December 11, 2019

7 @ 7:00

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

1. Gold has traded between $1,462 and $1,469 so far today…as of 7:00 am Pacific, the yellow metal is up $4 an ounce at $1,468Silver is 4 cents higher at $16.67…Palladium, on a 13-session winning streak, is up $13 an ounce at $1,892…it zoomed past $1,900 for the first time ever yesterday as a power crisis halted production at mines in major producer South Africa, exacerbating concerns over supply and extending the autocatalyst’s record run…South Africa produces 40% of the world’s Palladium…Copper, looking much better these days, has added 2 pennies to $2.76…Nickel has rebounded 13 cents to $6.13…a strong band of technical support stretches from $6 to $5.50 as the metal bottoms in its 4th correction since 2016…Zinc and Cobalt are quiet at $1.01 and $15.65, respectively…Crude Oil has backed off 9 cents to $59.15 while the Dollar Index is relatively unchanged at 97.45…the Federal Reserve is expected to conclude its December meeting this afternoon by signaling it’s in no hurry to do anything to change its neutral stand on interest rates…the Fed releases its post-meeting statement at 11:00 am Pacific…no significant changes are expected from the previous statement but the Fed will release its interest rate forecast and latest economic projections at the same time, and it could show some improvement particularly after November’s increase in payrolls of 266,000…inflation remains muted…it was reported this morning that the U.S. Consumer Price Index rose 0.3% in November after a 0.4% rise in October…stripping out volatile food and energy prices, core inflation rose by 0.2%, in line with expectations…will there be an “eleventh hour” announcement about a U.S.-China trade deal on Saturday night?…more tariffs – 15% on about $160 billion in Chinese exports to the U.S. – are set to kick in on Sunday as both economies remain locked in negotations for a Phase 1 agreement…the Wall Street Journal has reported that both countries are taking steps to delay those tariffs…the European Central Bank will hold its first monetary policy meeting and news conference with Christine Lagarde as President tomorrow…polling shows that British Prime Minister Boris Johnson is on track to win a solid majority in tomorrow’s election…the main opposition Labour Party promises a new referendum on Brexit as well as renationalization of utilities and railroads in its most left-wing platform in decades…America’s liberal mainstream media strikes again – 16 year-old climate activist Greta Thunberg has become the youngest individual ever to be named TIME’s Person of the Year…TIME concluded, “She has succeeded in creating a global attitudinal shift, transforming millions of vague, middle-of-the-night anxieties into a worldwide movement calling for urgent change.  She has offered a moral clarion call to those who are willing to act, and hurled shame on those who are not”

2. Saudi Aramco, the world’s largest IPO, surged past expectations as it debuted on the country’s stock exchange this morning…shares of the state-owned Oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit…the price gives it a valuation of $1.88 trillion and makes it the largest listed company in the world, comfortably ahead of Microsoft and AppleAramco’s public debut, which listed 1.5% of its shares locally on the Saudi Tadawul, is the biggest on record – topping the $25 billion Alibaba raised when it went public in September 2014…the long-awaited IPO of world’s most profitable company forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 program aimed at transforming the Saudi economy…the crown prince first floated the idea in 2016, stunning market observers by suggesting a head-spinning valuation of $2 trillion…that figure was brought down by financial advisors and banks earlier this year to a range of between $1.5 trillion and $1.7 trillion

3. Chevron (CVX, NYSE) is writing down the value of its assets by more than $10 billion, a concession that in an age of abundant Oil and gas some of its holdings won’t be profitable anytime soon…in the largest write-down by an energy producer in years, Chevron said yesterday that it was cutting the value of a number of properties, notably its U.S. shale holdings in Appalachia, by a combined $10 billion to $11 billion…the company is also restructuring its operations to focus on fewer prospects in the face of persistently low natural gas prices, and will explore sales of some assets including its interest in the Kitimat LNG Project in northwest British Columbia…Chevron said it will keep its 2020 capital budget at $20 billion (U.S.), the 3rd consecutive year it hasn’t boosted spending…U.S. natural gas futures prices have slumped this year amid a supply glut, and are now averaging about $2.54 per million British thermal units…this could turn out to be the lowest average price for natural gas in any year since 1999

4. Gold should benefit from continued “ultra-loose” monetary policy in 2020, rising to an average price of $1,550 an ounce in the 4th quarter of the New Year, Commerzbank says…Silver and Platinum are likely to ride the coattails of Gold higher, analysts said…however, the bank looks for high-flying Palladium to finally run into an “overdue correction” and push lower…Gold has backed down from its early-September high just shy of $1,560 an ounce, but still remains 14% stronger for the year, Commerzbank pointed out…this would be the best annual gain since 2010“We envisage an increase to $1,550 per troy ounce by the end of 2020.  The high optimism among speculative financial investors and the subdued demand in Asia will initially preclude any higher prices, so we expect to see the lion’s share of the upswing in the 2nd half of the year.  Monetary policy pursued by the major central banks will remain ultra-loose.  Admittedly, the U.S. Fed ruled out any further rate cuts.  All the same, they are not entirely off the table, and are still more likely than rate hikes”

5. The Dow is up slightly through the first 30 minutes of trading…companies are on track to raise more money through initial public offerings on NASDAQ this year than on the New York Stock Exchange, the first time that has happened since 2012’s bungled Facebook (FB, NASDAQ) offering…in Toronto, the TSX is up 51 points as Gold stocks push higher…the Gold Index is up 3 points at 248 – just a matter of time before there’s a breakout above the key 250 level…the Venture is a point higher at 538 as it continues to prepare for a breakout through 540Barrick Gold (ABX, TSX; GOLD, NYSE) is well on its way to achieving its goal of raising $1.5 billion in cash as it sells its stake in another non-core asset…Barrick announced yesterday that it’s selling its 90% stake in the Massawa project in Senegal to Teranga Gold (TGZ, TSX) for $430 million…the stock-and-cash deal consists of $300 million in cash with $80 million worth of Teranga shares…Massawa is one of the highest-grade undeveloped open-pit Gold reserves in Africa…Teranga has also arranged a $140 million financing at $5.10 per share…investors have reacted positively to the deal…Teranga has eased off 17 cents to $6.02 in early trading after surging 56 cents yesterday on high volume…

6. This BEE keeps buzzing:  Bee Vectoring Technologies (BEE, TSX-V) announced this morning that it has filed an international patent application for the latest version of its honeybee hive dispenser system that the company has tested and is bringing to market…“The agricultural industry is in the midst of a new green revolution, and the company’s more cost effective and highly targeted delivery systems will assist with the increased adoption of new biological compounds currently being developed to replace more chemicals,” stated CEO Ashish Mailk…this application strengthens the patent protection for the honeybee system by building on the previously filed application…the system is computer-controlled, enabling metered and uniform delivery of plant protection products to crops using commercial honeybees…this is the latest product addition to BVT’s natural precision agriculture system…patents are one of BVT’s key strategies to ensure legal protection as the company continues its post-EPA approval commercial expansion…“The cost to growers will be reduced as only minimal amounts of natural product is required, less than 1% of the amount used in conventional spraying, since bee vectoring enables the delivery of product to where it will do the most good, the blooms,” Mailk added…the new honeybee system is part of BVT’s growth strategy to increase its addressable market fully to include the entire estimated 2.5 million commercial bee hives in the U.S. and 91 million worldwide…leveraging both honeybee and bumblebee systems extends the company’s market reach of crops in all markets, which means the company can address 100% of the bee vectoring market for flowering crops…this includes high volume crops such as almonds, sunflowers and apples and high value crops such as blueberries, melons, strawberries and raspberries…BEE is up 2 cents at 43 cents as of 7:00 am Pacific

7. Pan American Silver (PAAS, TSX, NYSE), which has been a superb market performer this year, has released an initial mineral resource estimate for the large polymetallic deposit discovered last year at the company’s La Colorada mine in Zacatecas, Mexico…the Inferred mineral resource totals 72.5 million tonnes, averaging 44 g/t Silver, 0.17% Copper, 2.02% Lead and 4.40% Zinc, assuming a cut-off value of $60 (U.S.) per tonne after accounting for transportation, smelting and refining costs…the deposit remains open in nearly all directions for resource expansion…“The initial inferred mineral resource estimate containing 102 million ounces of Silver and a large volume of base metals indicates the significance of this new discovery,” stated Christopher Emerson, Pan American’s VP for Business Development and Geology…“In just over a year since we first announced the discovery, we have completed 54,000 m of drilling into the deposit and developed the geological model for this initial resource estimate.  An aggressive drilling program is planned for 2020 to further explore the deposit’s potential”

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December 9, 2019

7 @ 7:00

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

1. Gold has traded between $1,460 and $1,466 so far today…as of 7:00 am Pacific, the yellow metal is up $3 an ounce at $1,462Goldman Sachs says the “strategic case is still strong” for investing in Gold and has reiterated its call for the precious metal to rise to $1,600 an ounce next year…“Overall, while we acknowledge the risks related to still-high Gold positions, we believe the strategic case is still strong, particularly for investors with long-term horizons.  This is based on a deteriorated attractiveness of long term DM [developed-market] bonds as portfolio diversifiers and real return generation instruments, exposure to growing EM [emerging-market] wealth, limited mine supply growth, elevated political risks and a potential increase in debasement concerns sparked by rising airtime of Modern Monetary Theory”…Silver is 4 cents higher at $16.60Copper has added 3 pennies to $2.72…China’s imports of Copper in November rose 12.1% on the previous month as an improvement in the manufacturing sector stoked higher demand for the red metal…Nickel remains under pressure (see below), off 8 cents at $5.98, while Zinc and Cobalt are both flat at $1.02 and $15.88, respectively…Crude Oil has backed off 37 cents to $58.83 after surging 7% last week on fresh OPEC-led production cuts…the Dollar Index has retreated one-tenth of a point to 97.59…Paul Volcker, the Federal Reserve Board chairman who vanquished the inflationary upsurge that sapped America’s global prestige and power in the 1970’s and early 1980’s, has died at the age of 92

2. Saudi Arabia spearheaded a deal on Friday that will see OPEC and other allied producers (OPEC+) commit to some of the sector’s deepest output cuts in a decade (the U.S. comes out the big winner, plus Aramco investors – the largest of which is Saudi Arabia)…the Saudis, together with Russia, backed a plan that could see cuts of as much as 2.1 million barrels a day…the figures include an extra 500,000 b/d in cuts to take the OPEC+ target to 1.7 million b/d, or 1.7% of global demand, plus Saudi Arabia will continue to cut 400,000 b/d more than its quota…OPEC+, which includes more than 20 producers, pumps more than 40% of the world’s Oil…the group is taking action ahead of expected output increases next year by countries not participating in the cuts led by new top producer the United States…OPEC+ will meet again in early March to decide its next move…meanwhile, Prince Abdulaziz predicts that Saudi Aramco’s $1.7-trillion IPO valuation would soon soar above the level long coveted by his brother, Crown Prince Mohammed Bin Salman…Aramco will be higher than the $2 trillion, and they can bet that this will happen,” Prince Abdulaziz said…the state-controlled company would reach that valuation “in a few months” after its shares start trading later this week, he added…

3. Investors are anxiously waiting to see whether a new round of tariffs on Chinese consumer goods takes effect next week, one of the few remaining hurdles for the broader equity markets in 2019…chances are the Trump administration’s December 15 deadline for new tariffs on China will be delayed while talks continue between the U.S. and China…despite fears that trade uncertainty would continue denting the world economy, activity picked up in the global manufacturing and services sectors last month, purchasing managers’ indexes show…many central banks have also slashed borrowing costs to support growth, and inflation is nowhere in sight thanks in part to continued low Oil prices…in the U.S., employers continue to hire at a steady pace (November was a banner month), bucking the mainstream view that tariffs would cause a sharp slowdown in the labor market…American consumers account for more than two-thirds of economic output and have shown few signs of limiting spending…

4. China’s exports in November shrank for the 4th consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. trade battle, but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand…imports unexpectedly rose 0.3% from a year earlier, according to fresh data released yesterday, marking the first year-on-year growth since April and compared with a 1.8% decline forecast by economists…China’s trade surplus for November stood at $38.73 billion, compared with an expected $46.30 billion surplus in the poll and a $42.81 billion surplus recorded in October…meanwhile, China’s official factory activity gauge returned to growth for the first time in 7 months in November, with a private survey showing activity expanding at the quickest pace in almost 3 years…falling industrial profits and factory prices remain a concern, however…

5. Nickel is most of the way through a 4th major correction since a new bull market started in early 2019…$5.50 to $6.00 is the bottoming area based on our latest charts…the metal is once again being pulled in 2 different directions…a weak stainless steel market has been pushing Nickel prices down at the same time as increasing EV demand empties LME warehousesa sharp fall in LME inventory threatens a repeat of the time-spread turbulence that rocked the London market during Q3…headline exchange inventory has fallen to 68,922 tonnes from 152,604 tonnes…moreover, 42% of that is awaiting physical load-out leaving a mere 39,588 tonnes of what the LME terms “live” tonnage…while Nickel may be on the electric vehicle investment grid because of its widespread use in Lithium-ion batteries (Nickel demand for EV batteries will ramp up significantly next decade), an old driver is reasserting itself – namely the state of the stainless steel market…demand for stainless steel, which accounts for most of the world’s Nickel usage, has been “depressing” everywhere but China, according to analysts at JP Morgan (“Metals Quarterly” Nov. 22, 2019)…the bank is forecasting that stainless steel production in the rest of the world will fall 1.7 million tonnes this year, a contraction of 7% and the sharpest year-on-year decline since 2009…production in China, however, continues to grow (12.6% in the first 9 months of 2019), and it’s outpacing demand growth at the moment…as a result, stainless steel stocks are building at China’s exchanges and along the broader supply chain, and prices have been falling…since launching in late September the Shanghai Futures Exchange stainless steel contract has dropped from 15,575 yuan per tonne to today’s just below 14,000…Chinese production margins have been negative almost the entire year, according to Goldman Sachs, but producers are caught in a “prisoner’s dilemma” and aren’t cutting production to balance the market because each fears losing market share if others don’t join in (“Metals: The ‘Prisoner’s Dilemma’ of China’s Stainless Steel Industry,” Dec. 4, 2019)…capacity utilization therefore remains high, as does demand for Nickel units, a big factor in its outperformance this year relative to its base metal peers…JP Morgan thinks the Chinese stainless steel stand-off is unsustainable and expects mills to start curtailing production into 2020, while Goldman Sachs is not so sure, arguing that only small high-cost producers will be washed out of the market…

6. The Dow is 35 points lower through the first 30 minutes of trading after strong gains to finish last week…in Toronto, the TSX is flat while the Venture – up in 10 out of the last 13 sessions – has added another 2 points to 540…the Index will accelerate to the upside on a breakout through 540Kirkland Lake Gold (KL, TSX, NYSE) has acquired a 9.9% interest in Wallbridge Mining (WM, TSX), pursuant to WM’s mysterious $42 million private placement announced (and closed) on November 29…in addition, KL President and CEO Tony Makuch has joined WM’s board of directors…“We are excited to have Kirkland Lake as a strategic shareholder and we welcome Tony Makuch to the team as a member of the Board of Directors,” stated Wallbridge Chair Alar Soever…“Tony’s extensive experience in operations, resource development, capital markets and M&A will be very beneficial to all shareholders as we advance Fenelon toward production”WM has pushed to a new high, up 6.5 cents at 85 cents as of 7:00 am PacificWallbridge neighbor Balmoral Resources (BAR, TSX) has added a penny-and-half to 32.5 cents…Canada Cobalt (CCW, TSX-V), on the cusp of a potentially significant new high-grade Silver discovery in Northern Ontario, is up a penny at 42.5 cents near a fresh 9-month high…Gran Colombia Gold (GCM, TSX) has produced a new monthly record of 21,835 ounces of Gold in November, surpassing its previous best month in February earlier this year…this brings the total for the first 11 months of 2019 to 217,600 ounces, up 9% over the first 11 months of 2018…CEO Lombardo Paredes stated, “We are on track to finish the year in the upper end of our production guidance range of 225,000 to 240,000 ounces of Gold.  Our mining operations at Segovia continue to deliver on expectations and, for the 2nd consecutive month, we have realized an improvement in the head grades at Marmato, setting us up nicely as we proceed with the spin-out of the mine to Caldas Gold as part of our initiative to unlock value in our Zona Baja mining assets at Marmato”

7. Canopy Growth (WEED, TSX; CGC, NYSE) is pushing higher in early trading after news that Constellation Brands’ (STZ, NYSE) Chief Financial Officer David Klein has been appointed the new CEO of Canopy, approximately 6 months after former co-CEO and founder Bruce Linton was ousted from his role…Klein will take over from interim CEO and co-founder Mark Zekulin, who will be stepping down from his position effective December 20, according to this morning’s statement…“It has been an incredible 6 years at Canopy Growth, and I have witnessed the team and company grow from 5 people in an abandoned chocolate factory, to thousands of people across 5 continents,” said Zekulin…Klein stated, Canopy Growth sits at the forefront of one of the most exciting new market opportunities in our lifetime.  Thanks to the efforts of Mark and the entire team at Canopy Growth, no company is better positioned to win in the emerging cannabis market.  I look forward to working with the team to build on the foundation that has been laid, to develop brands that strongly resonate with consumers, and to capture the market opportunity before us.  Together we will drive sustainable, industry-leading growth that benefits employees, shareholders and the communities in which we operate”

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December 6, 2019

7 @ 7:00

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

1. Gold has traded between $1,481 and $1,460 so far today…as of 7:00 am Pacific, the yellow metal is off $14 an ounce at $1,461 on a knee-jerk reaction to a very strong U.S. jobs report…meanwhile, White House economic adviser Larry Kudlow just told CNBC that a U.S.-China Phase 1 trade deal is “close” as “intense” discussions continue, but President Trump is prepared to “walk away” if some conditions are not met…Silver is also under temporary pressure, off 33 cents at $16.60…the TSX Gold Index, however, is holding up relatively well, down less than 3 points at 245.18TD on Gold: “Loss-aversion will be a growing theme next year because real rates are subdued around the developed world, which will drive capital towards ‘safe assets’, which are scarce.  CTAs are eyeing a break north of $1,500/oz to add to their length.  We suspect that a break north of this range would kick-start the next leg of the yellow metal’s rally”...Palladium also looks good in the new year with prices potentially heading to $2,000, according to TD“Palladium continues to make new all-time highs as the ‘ESG’ trend is gathering steam, and will result in increasing emissions controls across the globe – 2020 will be the year in which the largest number of emissions legislation changes will be adopted, which will continue to increase loadings”…base metals are up modestly this morning…Nickel has added 3 cents to $6.05, Copper is 2 cents higher at $2.67 while Zinc is up slightly at $1.02…Cobalt remains unchanged at $16.10…Crude Oil is pushing to the upside, gaining nearly $1 a barrel to $59.38 on news that energy ministers from some of the world’s largest Oil producers have agreed to deepen recurring production cuts by an additional 500,000 barrels a day through March 2020…the Dollar Index has rebounded one-quarter of a point to 97.64…there are at least 2 Democrats in the U.S. House of Representatives with common sense…Rep. Jeff Van Drew of New Jersey says he plans to vote against all the articles of the Trump impeachment “unless there’s something that I haven’t seen, haven’t heard before”…he‘s warning Democrats to “be careful what you wish for” and he added that impeachment “is tearing the nation apart”…meanwhile, Minnesota Rep. Collin Peterson will also be voting against impeachment…“I don’t have an idea what they’re doing,” he said…House leader Nancy Pelosi, pushed by the radical far left in her party, is taking the Democrats on a suicide mission…more than 30 House Democrats in pro-Trump districts are in serious danger of being defeated next November as the House potentially flips from the Democrats to Republicans…

2. The Trump economy, unlike its Canadian counterpart weighed down by Trudeau’s anti-growth policies, was a job-creation machine in the month of November as non-farm payrolls surged to 266,000 while the unemployment rate fell to 3.5%, according to Labor Department data released this morning…those totals easily beat the Wall Street consensus…jobs growth was the best since January…the return of GM workers following a lengthy strike certainly helped, but even if you stripped that out of the equation the jobs gain was still well above 200,000…meanwhile, wages advanced a respectable 3.1% from a year earlier, slightly down from the prior month’s pace…the wage gains easily outpace tepid overall inflation but are still modest relative to other periods with historically low unemployment (retirement of highly paid baby boomers could be one of the factors)…

3. Why is it that the United States could post such robust job numbers in November while the Canadian economy suffered its biggest monthly job loss since the financial crisis?…the answer is quite simple, actually – Trump the businessman understands how an economy works, Trudeau the two-faced drama teacher does not…Stats Canada reported this morning that the Canadian economy LOST a staggering 71,200 jobs last month and the unemployment rate rose 4-tenths of a percentage point to 5.9% to its highest level since August 2018 when it hit 6%…the loss in jobs came as both full-time and part-time employment moved lower…the number of full-time jobs fell by 38,400 while part-time employment fell 32,800…the goods-producing sector lost 26,600 jobs in the month as the number of manufacturing jobs fell by 27,500 and the natural resources sector shed 6,500 positions…yes, another 6,500 jobs wiped out in the resource sector – part of that of course from Oil drilling rigs heading south to friendlier territory…

4. Yesterday’s Liberal Throne Speech means more of the same from the federal government when it comes to the West and the resource sector – in fact, Trudeau is doubling down on “fighting climate change” (that’s the overarching, #1 cause for this federal government) and his left-wing agenda…not surprisingly, Bloc Québécois leader Yves-François Blanchet said he would vote in favour of the Throne Speech because he saw opportunities to “make gains for Quebec”…he added that it was easier for him to vote in favour because there was nothing specifically about Oil in the speech (not a single word about the Trans Mountain Pipeline or the Oil and gas sector in general)…the Liberals only need the support of their leftist Bloc or NDP friends to get any House of Commons vote passed…Alberta Conservative MP Michelle Rempel vented her frustration on Twitter after the speech, “The ‘time continuum’ and ‘spaceship earth’ got more airtime and detail in Trudeau’s list of priorities for Canada than the workers in my province,” she wrote…

5. The Dow has shot up 286 points through the first 30 minutes of trading…in Toronto, the TSX has gained just 125 points while the Venture has slipped a point to 536…Eric Sprott, one of Kirkland Lake Gold’s (KL, TSX, NYSE) top 3 shareholders, now says he intends to vote for KL’s all-stock acquisition of Detour Gold (DGC, TSX)…initially undecided, Sprott said he came around after studying up on Detour and reflecting on Kirkland’s plans to boost performance at the struggling low-grade miner…Kirkland says it can materially increase Detour’s production over the next few years, and slash its costs…“I think it would be a pretty good cash-generating machine,” Sprott said of DetourKinross (K, TSX) says it’s selling its remaining shares of Lundin Gold (LUG, TSX) for $150 million (CDN)…Lundin Gold is developing the rich Fruta del Norte Gold Project in Ecuador…the mine is expected to produce 310,000 ounces Gold per year at an all-in-sustaining cost of just $583 (U.S.) per ounce…Kinross sold Fruta del Norte to Lundin Gold in 2014 for $240 million…buyers of Kinross‘ remaining 9.2% interest in Lundin Gold include Newcrest Mining and the Lundin Family TrustEskay Mining (ESK, TSX-V) actually halted its stock yesterday for news that it had closed a non-brokered private placement that raised hard dollars totalling $402,000 (3.35 million units at 12 cents per unit) and flow-through of $40,000 (250,000 units @ 16 cents per unit), notable only for the fact it’s the smallest raise of any company in the district this year…

6. Great Bear Resources (GBR, TSX-V) is significantly expanding its continuing drill program at its flagship Dixie Project in the Red Lake district of Ontario, from 90,000 m to 200,000 m…the company will be adding additional drill rigs beginning in January…the expanded program remains fully financed with a 2020 budget of $21 million, and the company has the ability to further augment the program with cash on hand…Great Bear currently has $31 million in cash and an additional ~$10-million of in-the-money warrants for a total potential cash position of approximately $41 million…the expanded Dixie exploration program will continue year-round and has a $21 million budget…drilling will focus on 1) Known Gold zones at the LP fault, Hinge zone, Dixie limb and North fault; and 2) Additional new targets across the 22-km strike length of the Dixie Property…higher-capacity drill rigs have been mobilized to the property to increase production rates at shallow depths and to allow penetration of up to a depth of 2,000 m as may be required…Chris Taylor, President and CEO of Great Bear, commented, “We are about to undertake one of Canada’s largest Gold-focused exploration drill programs in 2020, as we expect to have completed over 200,000 m of drilling by the end of next year.  It’s remarkable to think that when our drilling began 2 years ago, the Hinge zone and the multiple zones along the LP fault were still waiting to be discovered.  As we enter 2020, over 80% of the Dixie Property remains to be explored.  With over $30 million on hand, more and larger drill rigs, and the knowledge we’ve gained through our ongoing successes, we can now further accelerate that discovery process.  We anticipate 2020 will mark our most exciting year to date”…

7. Alberta’s new pro-energy government approved a new project by Grizzly Oil Sands yesterday – unbelievably, this Grizzly was in hibernation for 6 years as that’s how long this approval has taken thanks to the previous NDP government and the Progressive Conservatives before them…it’s a small example of a big problem in terms of what’s wrong with Canada right now – this country’s inability to push projects forward in a timely manner…the May River Project approximately 130 km southeast of Fort McMurray would produce 12,000 barrels a day in a first phase before eventual output of about 80,000 barrels a day, Grizzly President Serge Bisson confirmed…“Approval like this is extremely material for our company and allows us to move forward with our business,” Bisson said, noting the 6-year wait has been excruciating…”We’re very excited about the development opportunity here”

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December 5, 2019

7 @ 7:00

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

1. Gold has traded between $1,472 and $1,479 so far today…as of 7:00 am Pacific, the yellow metal is up $2 an ounce at $1,476…Silver has added 6 cents to $16.88…the $1,440’s remain a major support area for Gold while nearest key resistance is around $1,490 where the declining 50-day moving average (SMA) coincides with the top of what’s interpreted to be a bullish downsloping wedge on our short-term chart…provisional estimates indicate India’s Gold imports rose to a 5-month high in November and the local market swung to a premium…“For now, the physical market is providing a sufficient cushion against the downside, and we believe the macro environment presents upside risk to prices in 2020,” stated Standard Chartered…Nickel has rebounded 12 cents to $6.08…Copper is steady at $2.65…Zinc is off a penny at $1.02 while Cobalt remains unchanged at $16.10…Crude Oil has jumped another 47 cents a barrel to $58.90OPEC members are meeting today and tomorrow and are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year…the Dollar Index has lost one-quarter of a point to 97.42…China’s official spokespeople are keeping quiet on trade talks with the U.S. amid growing uncertainty on when a Phase 1 agreement can even be reached…“China believes if both sides reach a Phase 1 agreement, relevant tariffs must be lowered,” Gao Feng, Ministry of Commerce spokesman, said today, according to a CNBC translation of his Mandarin-language remarks…the comments reiterated the position Beijing has expressed in the last few weeks, since both countries indicated a rollback of tariffs would be part of a so-called Phase 1 agreement…

2. Record highs in U.S. equity markets and renewed strength in the U.S. dollar weighed on Gold and led to ETF funds posting broad-based outflows last month, according to the latest data from the World Gold Council (WGC)…in its monthly ETF report, the WGC said that the Gold market saw $1.3 billion in outflows across all regions in November…but it’s not all bad news for the precious metal as holdings are still up significantly on the year…“Overall, global Gold-backed assets under management grew 35% this year as a result of increased investment demand and price appreciation,” the WGC said in its report…looking at the regional breakdown, North American funds saw the biggest outflows of 17.3 tons valued at valued at $731 million due to a strong U.S. dollar and equities at their best levels since June…meanwhile, European funds, led by U.K.-listed ETFs, had outflows of 13.3 tons valued at $538 million…the WGC noted that investor sentiment shifted in November as the deadline for the U.K. to leave the European Union was pushed to 2020…in Asia, the regional markets saw outflows of 2.1 tons valued at $119 million…the WGC noted that the outflows came as Gold prices fell 3.4% from October’s highs…however, even with November’s decline, prices are up 14% for the year…the WGC is optimistic that ETF demand will remain strong through 2020“Uncertainty surrounding 2020 Fed expectations, together with increased bullish market sentiment, is set to impact Gold’s price performance”

3. Gold miners look set to extend a deal spree into 2020 after notching transactions worth a record $30.5 billion this year, eclipsing the previous M&A binge when bullion prices peaked nearly a decade ago…led by top producers Newmont Goldcorp (NGT, TSX; NEM, NYSE) and Barrick Gold (ABX, TSX; GOLD, NYSE), miners are bulking up to replace dwindling reserves and win back investors who in recent years shunned the sector because of disappointing returns…this year has seen a whopping 348 deals worth more than $30.5 billion, including net debt, according to Refinitiv Eikon data…that’s up from $10.8 billion last year and surpasses a previous high of $25.7 billion set in 2010, the data show…Gold topped $1,900 per ounce in 2011, more than $400 higher than it is now, but the yellow metal has also hit new record highs this year in multiple currencies…nonetheless, the 2011 Gold boom prompted buyers to overspend on acquisitions, leading to billions in impairments when prices crashed in subsequent years…this time, acquirers are being more cautious as the premiums linked to recent sector transactions are far below those paid in the previous price boom…

4. Amex Exploration (AMX, TSX) has cut 41.3 g/t Au over 4.1 m in drill hole PEG-19104including 202.8 g/t Au over 0.80 m, in the Upper Gratien Zone at its Perron Project near Rouyn-Noranda…this intercept occurs at a shallow depth of about 65 vertical m…the Upper Gratien is an emerging new zone which has returned higher-grade intercepts than previously identified, indicating the potential of multiple high-grade lenses within the overall large (1+ km) kilometre) Gratien Gold system…meanwhile, drilling continues to define and expand mineralization at the Eastern Gold Zone (EGZ) where intercepts reported this morning included 2.8 g/t Au over 12.3 m (including 23.06 g/t over 0.70 m) in PE-19105 at a vertical depth of about 325 m, and 4.8 g/t Au over 4.2 m (including 26.2 g/t over 0.70) in PE-19109 (including 26.2 g/t over 0.70 m) at a vertical depth of about 325 m…Kelly Malcolm, VP-Exploration of Amex, commented, “I am very pleased with the high-grade intercept in the Upper Gratien zone, which is the strongest mineralization, on a metal factor basis, that has been identified in that zone to date.  The possibility of a multitude of high-grade lenses within the broader kilometre-long Gratien system is encouraging when contemplating either open-pit or underground mining scenarios.  The Eastern Gold zone also continues to intersect meaningful intervals in both the HGZ and Denise zone which continue to define and expand the system.  We are awaiting assays on a number of additional drill holes, many of which encountered visible Gold…the 3rd drill, which is scheduled to arrive on January 6, will be dedicated to the regional exploration program comprising approximately 20,000 m, of the 100,000 m drill program, targeting additional high-grade Gold mineralization in the underexplored portions of the highly prospective Beaupre rhyolite block…in addition, the company recently completed a 600-line-km survey of high-resolution drone magnetics at a very tight line spacing of 25 m, flown at a low altitude…AMX is up 2 pennies at $1.37 in early trading…technically, the stock has broken out above important resistance in the $1.20’s

5. The Dow is off slightly (33 points) points through the first 30 minutes of trading…in Toronto, the TSX has lost 61 points…the Gold Index, threatening to break out above 250, is up half a point at 247.32…the Venture has posted gains in 9 out of the last 11 sessions, unusual for this time of year and indicative of what could be a powerful finish to December and a strong start to 2020…the Venture is currently off 1 point at 539White Gold (WGO, TSX-V) announced this morning that it has staked 3 strategic claim blocks (Kodiak, Kirkman and Tea), totalling 689 claims, contiguous to its White Gold Property, Newmont Goldcorp’s Coffee Project and Western Copper and Gold’s Casino Project, all located in the prolific White Gold district in Yukon…the claims bring the company’s expansive land package to 21,207 quartz claims across 33 properties, totalling over 422,730 hectares, representing over 40% of the White Gold District…Eskay Mining (ESK, TSX-V) was halted pre-market, pending news…

6. Using a high-tech custom-built downhole camera that went to a vertical depth of more than 420 m, Canada Cobalt (CCW, TSX-V) geologists have a bull’s eye target to immediately build out a high-grade Silver discovery at Castle East just 1 km from the 40-million ounce Siscoe mine and 2 other past producers in the prolific Gowganda Camp…drilling has commenced at CCW’s newly-named “Robinson Zone” where an initial series of wedge holes is designed to pierce the high-grade structure at several different points above and below a spectacular native Silver discovery intercept of 1,194 oz/ton over 0.45 m within a 3.1 m core length grading 189 oz/ton…a new hole will then be drilled from surface to intercept the interpreted shoot higher up in the system…1,194 oz/ton Silver over 0.45 m and 189 oz/ton over 3.1 m doesn’t exist in isolation,” explained Doug Robinson, considered the Northern Ontario Silver-Cobalt Camp’s leading authority on the Nipissing Diabase, “and it’s the type of ore-grade intercept that built the other 3 mines less than 2 km to the west.  There’s a major vent in this area and a network of branching veins.  The downhole camera was the smartest way to go back on the 2011 drill hole, and this technology worked beautifully.  There’s now an understanding of the vein orientation and that de-risks the opportunity,” Robinson concluded…this drilling news has legs to it and can be expected to strengthen CCW’s uptrend going into Christmas…meanwhile, the company has repriced to 45 cents per Canada Cobalt share (from 34 cents) the share portion of its proposed acquisition of privately-held PolyMet Resources…the deal is expected to close shortly and will vertically integrate CCW with multiple revenue streams from its new headquarters in the historic mining community of Cobalt…

7. CPM Group has issued an intermediate-term (2-3 year) Silver buy recommendation to investors…this call has been long in the making…the last time CPM issued a recommendation on Silver was more than 8 years ago in May 2011 when prices reached $48.19 and CPM advised to sell…“The Silver market is at a critical vertex at present,” CPM Group’s Vice President in charge of research Rohit Savant said earlier this week…CPM has waited until now for a variety of reasons known to our clients.  For one, the market has not supported strongly higher prices over the past few years.  As a result, prices have not moved sharply off their 20152016 lows,” CPM managing partner Jeffrey Christian stated…

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December 4, 2019

7 @ 7:00

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

1. Gold has traded between $1,472 and $1,485 so far today…as of 7:00 am Pacific, the yellow metal is off $2 an ounce at $1,475…it tested nearest resistance at its 50 and 100-day moving averages (SMA’s) overnight until a Bloomberg report came out that raised hopes regarding a Phase 1 U.S.-China trade deal…that sent Gold lower and drove up Dow futures…Silver has retreated 18 cents to $16.97…the behavior of the TSX Gold Index, however, suggests precious metals have started a new uptrend…Nickel is on a 7-session losing streak, falling to its lowest level since July 29…it’s off another 5 cents at $6.01 where there should be some technical support…Nickel is the only base metal with gains this year, and the pullback is consistent with previous corrections since its bull cycle started in early 2016…Copper is up 3 pennies at $2.66…Zinc has added 2 cents to $1.03 while Cobalt is steady at $16.10…Crude Oil has jumped $1.87 a barrel to $57.87 while the Dollar Index has shed one-fifth of a point to 97.52…U.S. job growth slowed markedly in November, with private payrolls increasing by just 67,000, according to an estimate this morning from ADP and Moody’s Analytics…the count was well below the 150,000 consensus from economists surveyed by Dow Jones and the lowest month since May…the Labor Department releases non-farm payrolls Friday…meanwhile, U.S. services sector activity slowed more than expected in November amid lingering concerns about trade tensions and worker shortages…China said today that it would retaliate if the U.S. presses forward with sanctions over Beijing’s repression of Uighur Muslims – Washington’s second stand on China human rights in recent days as trade talks face uncertainty…after the House of Representatives passed a bill requiring sanctions on officials responsible for the widespread detention of Uighurs in China’s Xinjiang region, Beijing has issued furious statements calling it interference with China’s internal affairs under the pretext of human rights…the bill must be reconciled with a version passed by the Senate in September before it can become law…

2. The longer-term outlook for Copper, fueled by the metal’s use in electric vehicles and renewable power technologies, is stoking a $1.5 billion investment by Rio Tinto to expand mining operations at Kennecott over the next 6 years, extending the life of the mine on the west side of the Salt Lake Valley in Utah for more than a decade…“This is an attractive, high-value and low-risk investment that will ensure Kennecott produces Copper and other critical materials to at least 2032,” said Rio Tinto CEO Jean-Sébastien Jacques, adding that mine closures impacting supply are also a key factor in the expansion…“Kennecott is uniquely positioned to meet strong demand in the United States and delivers almost 20% of the country’s Copper production.  North American manufacturers have relied on high-quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade”…the Bingham Canyon mine is one of the top producing Copper mines in the world with production at more than 20 million tons (it’s also the largest human-made excavation on Earth, measuring 2.75 miles across at the top and three-quarters of a mile deep)…in addition to Copper, Kennecott is one of the largest producers of Gold, Silver and Molybdenum in North America, and is a potential source of critical minerals such as rhenium and tellurium…with this project, Rio Tinto has invested around $5 billion in modernization and mine-life extension initiatives since the Kennecott acquisition in 1989

3. Balmoral Resources (BAR, TSX) is under pressure in early trading after releasing Phase 2 drill results from the recently discovered Ripley Gold zone at Area 52 of its Fenelon Property in Quebec…all 9 holes completed during Phase 2 intersected mineralization near-surface to a vertical depth of 220 m, highlighted by 32.7 g/t Au over 0.39 m, 3.01 m @ 3.04 g/t Au and 22.08 m @ 0.68 g/t Au…clearly, the market was expecting better numbers (as always) but it’s still early days…Ripley is 1 of 3 zones of significant Gold mineralization intersected in Area 52, which is located immediately south and along trend from Wallbridge Mining’s (WM, TSX) Area 51 discovery…Ripley remains open at depth…recent results from below the 450-m vertical level on the adjacent Wallbridge Property have shown the potential for a significant increase in grade times thickness to depth within this Gold system…Balmoral’s Detour Gold Trend Project adjoins the holdings of Detour Gold (DGC, TSX), the subject of a current over $4.5 billion takeover offer – on its western end, surrounds and controls a portion of the rapidly expanding Area 51 Gold system, and features Balmoral’s wholly-owned Martiniere Gold and Grasset Nickel deposits…BAR is off 8.5 cents at 29 cents as of 7:00 am Pacific but has strong new technical support in the mid-20’s

4. Victoria Gold (VIT, TSX-V) is trading higher after releasing a new technical report, prepared to a feasibility study level, for its Eagle Gold mine in the Yukon…reserves have increased from 2.7 million to 3.3 million ounces (this update includes all Eagle and Eagle proximal drilling – 58 holes – completed after the 2016 Feasibility Study)…annual production is now estimated at 220,000 ounces vs. 200,000…cash cost per ounce is $577 (U.S.) while all-in-sustaining costs are forecast at $774 (U.S.) per ounce…post-tax NPV(5) is $1.03 billion“The results of this updated Technical Report demonstrate the value and continual growth of the Eagle Gold Mine,” stated John McConnell, President and CEO…”Reserves have increased by over 20% from the drilling of 58 holes completed post-2016 Feasibility Study and we continue to see meaningful upside potential at the Eagle and Olive pits as well as across the Dublin Gulch Property.  I remind the reader that we continue to ramp up operations at the Eagle Gold Mine and anticipate commercial production achievement during the 2nd quarter, 2020

5. The Dow has rebounded 194 points through the first 30 minutes of trading…in Toronto, the TSX is up 42 points…the Gold Index, threatening to break out above 250, has pulled back slightly to 249…the Venture is trading at its best levels since early November, up 2 points to 540…potentially, this could be an unusual December (not the typical selling pressures during the first half or two-thirds of the month)…it’s possible the lows for the year may have come early this time around, in late November, especially if precious metals continue on a run…significant accumulation is occurring in Fiore Gold (F, TSX), one of our favorite small producers, which surged to a high of 60 cents in early trading…it jumped 8 cents yesterday on 1.5 million shares on no news…as of 7:00 am Pacific, Fiore is up 2.5 cents at 51 cents…Calibre Mining (CXB, TSX) provided 2020 guidance this morning…the company forecasts Gold production of between 140,000 and 150,000 ounces at an all-in-sustaining cost of between $1,020 and $1,060 (U.S.) per ounce…the company says it expects to generate significant operating cash flows that will allow it to reinvest aggressively in resource expansion and discovery drilling, advancing the high-grade Limon Central open-pit, and progressing the Pavon Gold Project as a satellite ore source for the La Libertad mill…CXB is holding steady around 90 cents…

6. Bee Vectoring Technologies (BEE, TSX-V) announced this morning that it has closed a total of 10 deals with blueberry growers in Georgia for the coming growing season…this includes 8 new growers and 2 previously announced growers…these producers will be using BVT’s proprietary bee delivery system and U.S. EPA-registered product, VECTORITE with CR-7, on their blueberry crops…the blueberry growers will be using BVT on an estimated 500 combined acres of conventional and organic fields for the 2020 blueberry season in Georgia, where blooming starts in February…blooming marks the beginning of the blueberry season, when the BVT system is used, but crop season continues until harvest which occurs in the spring and summer…all but one grower are first-time users who will be piloting BVT on a small percentage of their total acreage with the expectation that they will progressively add BVT across their entire operations over 2 to 3 seasons…the growers farm on a combined total of about 1,500 acres…“The company’s growth strategy in the blueberry market consists of three key activities: initial market penetration, customer retention and expansion through exceptional customer service, and leveraging the initial experiences to gain new customers,” stated Ashish Malik, CEO of Bee Vectoring Technologies“Currently in Georgia, the company is focused on closing deals with growers that are prominent early adopters of new technologies in their communities – and these initial growers are all key influencers.  Over time through delivery of exceptional experiences, BVT expects adoption of its system to increase to 100% of these farmers’ acres through building loyalty and positive word of mouth.  Lastly, the company continues to onboard new, additional growers as we move closer to the next growing season.  This is the strategy that will be executed in each region, as the growing season progresses geographically across the United States”BEE is up a penny at 43 cents in early trading…

7. CPM Group has issued an intermediate-term (2-3 year) Silver buy recommendation to investors…this call has been long in the making…the last time CPM issued a recommendation on Silver was more than 8 years ago in May 2011 when prices reached $48.19 and CPM advised to sell…“The Silver market is at a critical vertex at present,” CPM Group’s Vice President in charge of research Rohit Savant said earlier this week…CPM has waited until now for a variety of reasons known to our clients.  For one, the market has not supported strongly higher prices over the past few years.  As a result, prices have not moved sharply off their 20152016 lows,” CPM managing partner Jeffrey Christian stated…

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December 3, 2019

7 @ 7:00

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

1. Gold has firmed up nicely today, trading between $1,459 and $1,482 on fresh U.S.-China trade concerns…as of 7:00 am Pacific, the yellow metal is up $16 an ounce at $1,478…Silver has jumped 25 cents to $17.13TD Securities on GoldGold continued to hold above $1,450/oz despite record highs in equities and record online Black Friday sales, as the asymmetry in the U.S. central bank’s reaction function suggests that while the Fed may cut rates, they are far from hiking and are likely to allow inflation to creep higher, thereby suppressing real rates and maintaining the allure of Gold in a portfolio.  Deceleration in growth will ultimately provide the market with the impetus to pressure the Fed into cutting rates twice more in 2020…U.S. consumers remain in strong shape but sentiment in the U.S. manufacturing sector dropped further into contraction territory last month, according to yesterday’s data from the Institute for Supply Management (ISM)…ISM’s manufacturing index came in below expectations for the 5th consecutive month and contracted for the 4th straight month…base metals are under modest pressure…Nickel, Copper and Zinc have slipped to $6.12, $2.64 and $1.02, respectively…Cobalt remains steady at $16.10…Crude Oil has shed 11 cents to $55.85 while the Dollar Index has fallen more than one-tenth of a point to 97.73…President Trump, perhaps exercising more negotiating leverage, said this morning that a trade agreement with China might have to wait until after the U.S. elections in November 2020, denting hopes of an imminent/near-term Phase 1 deal…“I have no deadline, no.  In some ways, I think I think it’s better to wait until after the election with China,” Trump told reporters in London, where he was due to attend a meeting of NATO leaders…if China somehow thinks Trump won’t win next November, they could be in for a nasty surprise – the House potentially could flip in Trump’s favor as well…

2. Canada is not keeping up with the competition!…as multiple Canadian pipeline projects linger in limbo, with leftists/climate change alarmists claiming we must “save the planet” from catastrophe within a dozen years and not build any additional pipelines, Russia and China have just turned on the taps on a natural gas behemoth long enough to connect Timmins to Burnaby…Russian President Vladimir Putin and Chinese President Xi Jinping brought the Power of Siberia Pipeline, which will stretch 3,000 km from Siberia into northeast China, online yesterday…the $55 billion (U.S.) pipeline is expected to carry 5 billion cubic m of natural gas into China in 2020, with production eventually ramping up and hitting 38 billion cubic m by 2025…the Oil and gas haters in Canada are living in a delusionary world – if we don’t help fill the global demand void, someone else will (the U.S. is already way ahead of us, and so are others) and Canada loses…what’s also so ridiculous is that for every pipeline and well and LNG plant that is not built in Canada (and we feature some of the highest environmental, engineering and labor standards in the world), the Chinese and Indians will simply burn more dirty coal…the naive left just doesn’t get it…they’ve been allowed to inflict great damage on this country in recent years and now it’s time for a major pushback…

3. Wallbridge Mining (WM, TSX) announced this morning that it has intersected visible Gold and abundant sulphide mineralization over a 16-m core length in drill hole FA-1999 in the Lower Tabasco zone at Fenelon, extending this zone a further 230 m down-dip to a vertical depth of 850 m…in addition, complete assays have been received for drill hole FA-19086, surrounding the previously reported 27 g/t Au over 38.39 m…the full intersection is now confirmed as 22.7 g/t Au over 48.01 m…high-grade assays have also been received from drill holes testing the newly discovered Orion Corridor located over 400 m to the southeast (43.2 g/t over 0.75 m; 121 g/t Au over 0.51 m; and 31.37 g/t over 0.50 m), further demonstrating the impressive Gold endowment in this system over the entire 1 km strike length explored so far…President and CEO Marz Kord stated, “It is quite remarkable that our current initial wide-spaced drilling with holes spaced 75 m to more than 200 m apart continues to consistently intersect mineralization, given the typical size of ore shoots in typical Archean Gold systems.  The results to date show the exceptional quality of Fenelon and increases our continued understanding of the deposit.  The recent drilling, particularly our 230-m undercut in the Lower Tabasco zone, suggests that at depth this zone appears to follow the contact of Jeremie Pluton in a sub-vertical manner, suggesting that further deep drilling in this area is warranted”WM is up 4 cents at 72 cents through the first 30 minutes of trading…there was a $42.5 million bet on Wallbridge Friday in the form of a PP – follow the money…

4. More robust drill results from Kirkland Lake Gold’s (KL, TSX, NYSE) Fosterville mine in Australia…significantly, recent underground drilling shows impressive continuity of mineralization in the Lower Phoenix System which continues for at least 950 m down-plunge of the deepest mineral reserves…intercepts released this morning include 87.6 g/t Au over 7.6 m, 45 g/t Au over 5.2 m, 14.8 g/t Au over 5.9 m, 6.2 g/t Au over 18 m, and 7.3 g/t Au over 8.8 m (core lengths)…drilling has now defined continuity of mineralization between the Swan and Lower Phoenix South Resource blocks (Swan South Zone) and, with a high frequency of 30 gram-m intercepts, it’s anticipated that substantial additions of Inferred resources will be realized in end-of-year model updates as a result of this program…“We have an extensive exploration program at Fosterville covering 4 main target areas – Lower Phoenix down-plunge of Swan, Cygnet, Harrier and Robbin’s Hill,” explained KL President and CEO Tony Makuch…“Today’s results focus on the Lower Phoenix area.  They are encouraging as they include the extension of high-grade, VG-bearing mineralization 80 m down-plunge of the Swan Zone and demonstrate that Lower Phoenix is an extremely large Gold system, with continuity of the system having been confirmed to over 950 m down-plunge of our deepest mineral reserves.  In addition, we continue to get strong results from drilling of the Cygnet Zone, where we have intersected high-grade, VG-bearing mineralization, including 239 g/t Au over 1.2 m (ETW 0.9 m).  Such results provide significant resource growth potential immediately adjacent to existing underground infrastructure”KL is up 47 cents at $56.32…those who panicked and threw their shares away last week at $50 left a lot of money on the table…

5. The Dow has tumbled 360 points through the first 30 minutes of trading…in Toronto, the TSX is off 101 points, cushioned by a sharp jump in the Gold Index which is threatening to break out above the 250 area…it’s up 7 points at 252 as of 7:00 am PacificYamana Gold (YRI, TSX; AUY, NYSE) hit a new multi-year high of $5.11 on the TSX during the first 30 minutes of trading…SilverCrest (SIL, TSX) has announced an $80 million financing at $7.28 per share (11 million shares)…SIL has pushed 10 cents higher in early trading to $7.74…the Venture has added 3 points to 536…potentially, this could be an unusual December (not the typical selling pressures during the first half or two-thirds of the month)…it’s possible the lows for the year may have come early this time around, in late November, especially if precious metals continue on a run…Turmalina Metals (TBX, TSX-V) made its debut on the Venture this morning…the company is focused on the exploration and development of high-grade Gold-bearing tourmaline breccias at the San Francisco Project located in San Juan, Argentina…yesterday, Turmalina announced results from a series of recently completed diamond drill holes at San Francisco which included a 36.95 m core length grading 6.3 g/t Au, 122 g/t Ag and 0.88% Copper starting just 34.5 m downhole…the company has $7 million in cash and 49 million shares outstanding…it opened at 70 cents and is trading at 63 cents as of 7:00 am Pacific

6. GT Gold (GTT, TSX-V) continues to outline a large Gold-Copper-rich porphyry system at Saddle North…drill hole TTD133 cut 627 m grading 0.53 g/t Au, 0.37% Cu and 1.23 g/t Ag, though this intersection started 648 m downhole…it included 362 m @ 0.73 g/t Au, 0.45% Cu and 1.58 g/t Ag…meanwhile, drill hole TTD134 returned 558 m @ 0.61 g/t Au, 0.35% Cu and 1.28 g/t Ag starting 450 m downhole…the core zone at Saddle North comprises a south-southwesterly-plunging, northerly-elongate body of higher-grade mineralization with down-plunge, strike and width dimensions of 1,2001,600 m, 200400 m and 40450 metres, respectively…it expands to depth and displays excellent continuity…Saddle North remains open at depth, and highly prospective targets remain untested along strike to the west and east…“These results continue to demonstrate the robust nature of Saddle North,” commented CEO Paul Harbidge…“The excellent continuity of the Gold and Copper mineralization to depth supports the large scale of this porphyry system, a system which becomes even more attractive when considering the proximity of first-rate infrastructure and location in the Tier 1 jurisdiction of British Columbia.  Now that this year’s drilling is complete, we are making good progress with detailed re-logging of core and assimilation of the full range of empirical and geochemical data collected during the field season. This work is moving us toward our goal of constructing a detailed geological model for Saddle North, which is projected for completion in Q1 2020.  The model will form the foundation for our initial NI-43101-compliant resource, which is anticipated to be released in Q2.  Furthermore in 2020, our team will be focused on reaching our larger goal of delivering a Preliminary Economic Assessment to our stakeholders by year-end”GTT is up a penny at 97 cents as of 7:00 am Pacific

7. The Federal Reserve could be in store for some pain…that’s according to Jim Bianco, President of Bianco Research, who says the recent market narrative reminds him of the former boxer Mike Tyson’s quote that “everybody has a plan until they get punched in the mouth”Bianco, a well respected market analyst, says that while the Dow, S&P 500 and NASDAQ have been hitting new all-time highs and the Fed seems poised to hold off on continuing to cut interest rates, the central bank hasn’t been tested with a “punch to the mouth” that could drastically alter its plan…“We’ll have to see if this will hold up on a 5% to 7% correction.  I kind of have my doubts,” Bianco said on CNBC yesterday…“The markets are looking for 1 cut maybe next year.  I wouldn’t be surprised if it winds up being 2 or 3 once all is said and done”…the final 2019 meeting of Federal Reserve policymakers is scheduled for next week…Chairman Jerome Powell has signaled that rates are likely to hold steady as the central bank remains committed to meeting its 2% inflation goal…Bianco says the lack of inflation is one of the reasons pressure will remain on interest rates in 2020

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The Most Important Venture Development Since The New Bull Market Began

December 2, 2019

7 @ 7:00

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1. Gold has traded between $1,462 and $1,453 to kick off the month of December…over the past 2 decades Gold has posted gains in December nearly 60% of the time with an average return of 0.7%…as of 7:00 am Pacific, Gold is off $6 an ounce at $1,458…Silver has slipped 14 cents to $16.86…Nickel, Copper, Zinc and Cobalt are all relatively unchanged at $6.22, $2.65, $1.03 and $16.10, respectively…Nickel posted its steepest monthly loss in 8 years in November on faltering steel output from top producer China and waning impact from an Indonesian ore export ban…however, the primary bull cycle remains intact on the long-term chart…Crude Oil has jumped $1.18 a barrel to $56.35, supported by hints that OPEC and its allies may agree to deepen output cuts at meetings later this week…protesters around the world disrupted Black Friday shopping in order to draw attention to “climate change” days before a United Nations’ get-together to discuss the issue in Madrid…the retail holiday saw protests in a long list of countries, including France, Germany, the United States and Canada, with some activists entering stores and others holding mock funerals…near Paris, climate demonstrators blocked a shopping mall and gathered in front of Amazon’s headquarters to protest over-production they say is killing the planet…to many of these deranged activists, Black Friday is the symbol of capitalism run amok…“We are living in a system of endless consumerism,” the radical group Extinction Rebellion NYC tweeted on Friday…“Earth cannot sustain that, especially as we accelerate towards climate and ecological catastrophe”President Trump said this morning that he will immediately restore tariffs on U.S. steel and aluminum imports from Brazil and Argentina…“Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers.  Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries,” Trump said in a tweet…he also urged the Federal Reserve to prevent countries from gaining an economic advantage by devaluing their currencies…“The Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar”…the Dollar Index has fallen more than one-tenth of a point to 98.13…the ISM manufacturing PMI for November was just released and came in below expectations at 48.1, helping Gold and pushing broader equity markets lower…

2. China said today that U.S. military ships and aircraft won’t be allowed to visit Hong Kong, and also announced sanctions against several U.S. non-government organizations for encouraging protesters to “engage in extremist, violent and criminal acts”…the measures were announced by China’s Foreign Ministry in response to U.S. legislation passed last week supporting anti-government protesters…it said it had suspended taking requests for U.S. military visits indefinitely, and warned of further action to come…“We urge the U.S. to correct the mistakes and stop interfering in our internal affairs.  China will take further steps if necessary to uphold Hong Kong’s stability and prosperity and China’s sovereignty,” ministry spokeswoman Hua Chunying said at a daily news briefing in Beijing…

3. Zijin Mining Group Co. Ltd., one of China’s biggest Gold miners, is buying out Canadian miner Continental Gold (CNL, TSX) for $1.4 billion in a friendly, all-cash offer at $5.50 per share…Continental’s 100%-owned Buritica Project in Antioquia, Colombia, is one of the largest and highest-grade Gold projects in the world and represents a complementary addition to Zijin’s international asset portfolio…Buritica is expected to produce approximately 250,000 ounces of Gold per year on average over a 14-year mine life at an LOM all-in sustaining cost of approximately $600 (U.S.) per ounce…it features a Measured resource of 1.4 million tonnes at a grade of 13.7 g/t Au and an Indicated resource of 14.6 million tonnes @ 10 g/t…“The all-cash offer at a significant premium to market is an excellent outcome for our shareholders and is a testament to the extraordinary effort of the Continental team and its stakeholders in pioneering a new and modern Gold industry in Colombia,” stated CEO Ari Sussman…“In the span of a decade, Continental has transformed the Buritica Project from a grassroots discovery into one of the world’s largest and highest-grade Gold projects.  With production on the horizon in 2020, the timing is right for Continental to sell to a more experienced mine operator and therefore Continental’s Board of Directors recommends that shareholders vote in favour of the Transaction.  Zijin is one of the world’s fastest growing mining companies and boasts an impressive track record of successful international acquisitions and operations.  Most importantly, Zijin shares common principles with Continental on what defines modern mining and, as a result, will continue to operate in a safe, transparent and inclusive manner with the employees of the company and external stakeholders”today’s announcement comes after Zijin said in early November it would buy partner Freeport McMoran’s (FCX, NYSE) Copper-Gold assets in Serbia for up to $390 million (U.S.) in an effort to boost its resources of both metals…

4. A number of foreign companies are circling around Canada’s mining assets and companies, creating opportunities for savvy investors…collectively, Canadian industrial metals and mining sectors have attracted $20 billion from the Asia Pacific alone over the past 15 years, according to a new report by Asia Pacific Foundation…the region has emerged as a major investment source for Canada over the years, and has diversified away from Oil and gas resources…“Canada needs to continue to leverage its strengths and build stronger ties with the region in the future in order to improve market access and position itself as an important investor in and investment recipient from the diverse economies that make up the Asia Pacific,” the APF said in a recent report…

5. U.S. consumers, who account for two-thirds of GDP, clearly weren’t waiting until Cyber Monday to shop online this holiday season…spending online on Black Friday hit a record of $5.4 billion, up 22.3% from a year ago, according to Adobe Analytics data last night…the data measures transactions from 80 of the top 100 U.S. online retailers…this comes as foot traffic appeared to be lighter at shopping malls across the U.S. on Friday, a day that traditionally has been reserved for people to line up outside of big-box retailers and department stores to score doorbuster deals…total spending online on Black Friday is still forecast by Adobe to hit $7.6 billion, which would make the day the 2nd-biggest e-commerce day ever, after Cyber Monday 2018′s $7.9 billion

6. The Dow is down 48 points through the first 30 minutes of trading2019 has turned out to be a very good year for the broader equity markets, with the January 1 to Thanksgiving Day period the 14th best for the S&P 500 since 1928, according to Bespoke…the 25.5% gain in the S&P 500 was the best for the period since 2013, and now the market enters a typically strong period through to year-end…on average, the S&P is up 1.6% in December…it also has the highest frequency of advances, up 76% of the time…in Toronto, the TSX is off 25 points as of 7:00 am Pacific…this shouldn’t be happening in resource-rich Canada but we can thank Trudeau for it – Canadian Oil and gas producer Husky Energy (HSE, TSX) announced this morning that it’s lowering its capital spending by half a billion dollars over the next 2 years when compared to its 2019 outlook in a bid to increase free cash flow…the Venture, which stabilized in November, has officially entered its best 3-month period on the calendar…over the past 2 decades, December, January and February have produced a combined return on the Venture of more than 11%…since the heavy lifting comes from less than 20% of the market, gains in certain stocks during this period can be quite spectacular…the Venture is up point at 533 in early trading…DynaCERT (DYA, TSX-V), one of Friday’s movers, is up another penny at 51 cents…Ascot Resources (AOT, TSX-V) has released another set of high-grade drill results from its Silver Coin deposit, 5 km north of its Premier mill near Stewart…highlights include 3.6 m grading 52.7 g/t Au (P192079), including 1 m @ 184 g/t, and 4 m @ 16.6 g/t Au in P192081…Silver Coin, acquired last year, is one of several deposits at the Premier Project…it was mined in 1991, producing 102,500 tonnes at a grade of 8.9 g/t Au with an average Gold recovery of 93%…to the north in the Eskay CampPretium Resources (PVG, TSX) announced this morning that it has paid the final $20 million (U.S.) tranche under an off-take repurchase agreement…with the 100% repurchase of the off-take agreement, all components of the company’s 2015 construction financing package are now extinguished…

7. Yamana Gold (YRI, TSX; AUY, NYSE) is considering a further increase in dividends of between 50% and 100%, its executive chairman told Reuters, after doubling the payout this year…Yamana, which completed the sale of its Chapada Copper-Gold mine to Lundin Mining (LUN, TSX) over the summer for $1 billion (U.S.), doubled its dividend to 4 U.S. cents per share in its 3rd quarter…“We are considering another dividend increase and believe that we can support an increase that is at least 50% higher than our current dividend and potentially 100% higher,” executive chairman Peter Marrone said…“We are in the process of creating a reserve cash balance that would help ensure that our dividend remains sustainable even if the price of Gold declines”Yamana has been trading within a bull flag since August and is on the cusp of a breakout above key resistance at $5.00

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