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May 31, 2017

BMR Market Musings (Evening Edition)…

Gold has finished May on a strong note, closing above the important $1,260 level as it rebounded by more than $50 an ounce from lows earlier this month…a new yearly high certainly seems very possible in June…bullion touched $1,275 today and closed up $2 an ounce at $1,269 as the greenback came under renewed pressure…as of 7:15 pm Pacific, Gold is unchanged at $1,269…Silver is up 4 cents at $17.34…Copper is flat at $2.56…Nickel has slipped 2 cents to $4.01…Crude Oil has rebounded 38 cents to $48.70 a barrel while the U.S. Dollar Index is down slightly at 96.94…

Gold is the ultimate hedge for setbacks in the Trump agenda, and we all know how there are powerful forces in the mainstream media and the “Deep State” who are doing their best to undermine the new President and his administration…the culture war in the U.S. will only intensify (we predict it’ll also eventually spill over into Canada, albeit to a lesser degree), and the impact on Gold could be profound…

U.S. Treasury yields have fallen sharply from where they began trading in 2017, a trend that’s bullish for the yellow metal…today, the benchmark 10-year yield dipped briefly below 2.20%…it began the year near 2.5%…

In data just released this evening (Thursday morning in China), China’s factory activity contracted for the first time in 11 months, according to a private survey…output and new orders slowed as companies shed jobs…the Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) fell to 49.6 in May, lower than a 50.1 forecast by analysts polled by Reuters and lower than April’s 50.3.  “Softer growth in output reflected a relatively muted increase in total new orders during May,” Caixin and IHS Markit said in a joint news release…

Dr. Deceiver And Hulk Horgan Team Up To Reshape British Columbia

British Columbia’s ideologically hard left NDP drove the province’s economy into a deep ditch the last time it held power in the 1990’s, and voters responded in anger by nearly wiping out the Wealth Destroyers in the 2001 election (the NDP captured just 2 seats as it was banished to the political wilderness)…unfortunately, voters currently in their 20’s and early 30’s have no recollection of how bad things were under the NDP in the 90’s when vast amounts of human and financial capital fled B.C. to a more welcoming and prosperous jurisdiction, Ralph Klein’s Alberta…the mining sector in B.C. was nearly destroyed…

The younger generation throughout Canada, brainwashed by our left leaning schools, universities and colleges, has yet to learn through real life experience that socialism never works…hence, just 3 weeks ago, the ruling Liberal Party, a unique B.C. coalition of free enterprise liberals and conservatives, was reduced from majority to minority status in the provincial election despite the fact that B.C. features the best-performing economy in the country…it has it all – the fastest growth, the lowest unemployment rate, a highly favorable tax regime, budget surpluses and superior health services…a strong economy was taken for granted, as if it’s something that just keeps going and going and going – no matter what – just like the Energizer Bunny…

The Liberals won the most number of seats (43, just 1 short of a majority) and the popular vote May 9, but in their hunger for power the NDP veered even further to the left by announcing a deal yesterday with the eco-fascist Green Party to attempt to rule the province with a 44-43 combined seat majority…Premier Christy Clark says she’ll recall the legislature as early as possible next month and put her government to a confidence test…unless an NDP member pulls off a “Belinda Stronach” and crosses the floor (highly unlikely), the NDP will start governing the province under new Premier John Horgan with support from professor Andrew Weaver’s Green Party which represents the radical fringe of North American political parties…

Weaver, the “climate change” scientist, stressed the words “enforcement”, “compliance” and “prosecutions” in the Green Party platform as it pertained to the resource sector…essentially, he wants to turn resource rich B.C. into a Fossil Fuel Free Zone…for now at least, climate change fanatics have truly seized control of the province…

It’s no surprise then that in the actual written agreement between the NDP and the Greens, the 2 parties have agreed to “employ every tool available” to KILL the Kinder Morgan Trans Mountain pipeline expansion, a multi-billion dollar project that has been approved at every level and is critical in terms of getting Alberta Crude to market…strangely, this actually pits the socialists of Alberta against the socialists of British Columbia…Dr. Deceiver and Hulk Horgan should not be underestimated in their ability to at least force unreasonable delays in the Trans Mountain project with construction scheduled to commence in September…the federal government will likely have to take the province to court, if Prime Minister Justin Trudeau has the political courage, but it’s also quite possible that the hastily arranged NDP-Green marriage will end in a nasty divorce in less than a year (more on that later)…

The B.C. Brand Will Take A Hit

For resource investors, let alone all British Columbians, the biggest immediate problem here is how the province faces the risk of being imminently branded as hostile to the energy sector and the resource industry in general as soon as the NDP and Greens steal the reigns of power next month, assuming there’s no “Judas” among their pack of 44…whether you’re running a Starbucks, a grocery store, a sports franchise, an amusement park, a junior exploration company or a government, branding is critical…the B.C. brand, unfortunately, is about to get stained right off the bat under a new government thanks to the Kinder Morgan pipeline issue with the NDP and Greens taking a position that is simply insane and indefensible, though popular among the younger generation in particular (“Father, forgive them, for they do not know what they are doing”)…

Keep in mind, as well, that the NDP also intends to adopt the UN Declaration on the Rights of Indigenous Peoples, a step that would effectively give First Nations veto powers that could seriously further impede resource development in the province…

As the Vancouver Sun’s Gary Mason wrote yesterday, “In less than a month, B.C. could get a political makeover that could leave the province unrecognizable.”

Compared to NDP rule in the 1990’s, what makes the situation in B.C. so potentially dangerous now – the gasoline on the fire – is the added element of radical climate change fanaticism…

As America under Trump and Republican leadership smartly lowers taxes, reduces burdensome Obama-era regulations, abandons climate change fanaticism, builds new pipelines, encourages resource investment and development, British Columbia moves in exactly the opposite direction – extremely foolish as business in B.C. will be put at a competitive disadvantage…that’s no way to create wealth and keep an economy growing…

A Picture Tells A Thousand Words

David Suzuki, Canada’s most well known environmental lunatic, never endorsed a political party in his life until he recently threw his support behind Dr. Deceiver…

“For over 30 years, scientists have been warning us that climate change caused by global warming represents a threat second only to nuclear war,” said Suzuki.  “There is no better person in this country to guide us into the challenge of climate change, and the Green Party is the only party that has understood and embraced that challenge, and based its entire program on this.”

God help British Columbia…

Below is Dr. Deceiver (left) basking in Suzuki’s endorsement…

Is There Any Hope In This Ugly Mess? 

If we’ve depressed you or scared you, here’s some encouragement…

  • “The show goes on” is what one CEO of a successful, high-volume junior exploration play based in B.C. said to us in a meeting afternoon, and he’s right in the sense that for now at least it’s still “business as usual” – exploration and drilling programs will be carried out in the province as planned this summer…many companies also have multi-year permits…
  • A big discovery somewhere in B.C. this summer could certainly overpower the NDP-Green circus…
  • Contrary to the statement by Dr. Deceiver, there will be nothing “stable” or “long-term” about this proposed new government – in all likelihood, it’ll be unstable and short-term (6 months to 2 years) given the slimmest of majorities, the extreme ideologies and egos involved in the coalition, plus of course The Law of Political Surprises…
  • The NDP and Greens will be facing the largest and most vocal political opposition in B.C. history, urban/rural conflicts will quickly appear, and the business community and investors will be applying heavy pressure on the government whose Kinder Morgan stance is full of risk (not to mention many of their other planned initiatives)…
  • Just 1 defection or 1 by-election loss and the NDP-Green 4-year unholy alliance crumbles and goes before the voters who will want to know why their taxes are up, why the province is running deficits again, and why the economy is suddenly hitting the skids…
  • In its thirst for power the NDP may have made a catastrophic strategic error by aligning with the Greens, a decision that will only encourage the NDP’s worst instincts and ultimately result in their banishment once again to the political wilderness…

Gold Seasonality Chart

It’s notable that despite a looming Fed rate hike, Gold continues to push higher and has rebounded powerfully off its lows during the 1st half of the month around $1,215…

Below is a seasonality chart for Gold which shows how May and June have been the worst back-to-back months for the metal going back 2 decades…

However, Gold is bucking that trend in 2017…with no end in sight to the greenback’s technical woes (further deterioration is likely over the summer as the 200-day SMA begins to decline), and Q3 seasonal strength ready to kick in for bullion, it’s hard to imagine that Gold won’t break out powerfully above $1,300 over the summer in a move that will take many pundits by surprise…

In tonight’s Market Musings…

1. Candian Zeolite (CNZ, TSX-V) – what does this week’s volatility mean?…

2. The bullish Big Picture with Jaxon Minerals (JAX, TSX-V)…

3. This Idaho Gold play is a winner…

4. Quebec Gold junior adds $6 million to treasury as multiple programs draw interest from a major…

5. Daniel’s Den – a guaranteed way to become a better trader and investor…

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of tonight’s Market Musings, sign up NOW or login as a current subscriber with your username and password.

7 @ 7:00

Check back later today for a special evening edition of BMR Market Musings.

1. Gold has traded between $1,259 (potential new support) and $1,269 so far today as it continues to attempt a confirmed breakout above $1,260 to close out the month…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,264…Gold finished April at $1,268, so a late rally today would give the metal a chance to avoid its first losing month of the year…going back 2 decades, no back-to-back months on the calendar have been weaker than May and June as we’ll show in a seasonality chart in today’s Morning Musings…the fact Gold has held up so well with another Fed rate hike expected June 14 should be interpreted as a bullish sign for the metal going into the summer….traders and investors are looking ahead to Friday’s U.S. employment report for May from the Labor Department, arguably the most important U.S. economic data point for the month…the key non-farm payrolls number for May is forecast to come in at around 210,000…Silver is off 7 cents at $17.31 as of 7:00 am Pacific…

2. Global Gold mine supply is closing in on its cycle peak, according to analysts with Standard Chartered…Gold output growth in 2016 slowed to 0.4%, its weakest rate since it turned positive in 2009, the bank said…although it forecasts that mine production will grow further in 2017 to a record high of 3,229 tonnes, it also sees the growth rate slowing to 0.2%…meanwhile, the firm says the average grade of Gold grams mined per tonne has fallen sharply from 2.5 in 2000…

3. Bitcoin’s price has the potential to hit over $100,000 in 10 years which would mark a nearly 3,500% rise from its recent record high, an analyst who correctly predicted the cryptocurrency’s rally this year told CNBC yesterday…in December, Saxo Bank published its annual report called “Outrageous Predictions” with one of the forecasts calling for Bitcoin to hit $2,000 in 2017…at the time the note was published, Bitcoin was trading in the $700’s, so the target price represented a 165% rise…but now, Kay Van-Paterson, the analyst behind the call, is looking long-term and believes Bitcoin’s move is just in its infancy…

4. The Venture is off slightly at 802 as of 7:00 am Pacific with North American equity markets under modest pressure in early trading…Lithium X Energy (LIX, TSX-V) has completed previously announced transactions with Pure Energy Minerals (PE, TSX-V) consisting of the sale of its interests in Nevada and its subscription for 3,571,000 Pure Energy units at 56 cents per units (gross proceeds to Pure Energy of $2 million)…Strategic Metals (SMD, TSX-V) is up a penny at 69 cents, matching its 2017 high…the TSX is 75 points lower while the Dow has slipped 59 points as of 7:00 am Pacific…

5.  Trouble brewing in British Columbia – the NDP, which has only brought misery to investors and the population at large during the limited time it has ever held power there, has cut a backroom deal with the eco-fascist Green Party to usurp power from the Liberal free enterprise coalition that has ruled the province successfully for the past 16 years…Premier Christy Clark, who won a majority of the seats and the popular vote in the May 9 elections, will put her government to a test of confidence when she recalls the legislature next month but even Clark admits an imminent “transfer of power” appears inevitable…the NDP and Greens, in a written agreement, have vowed to “employ every tool available” to kill the Kinder Morgan Trans Mountain Pipeline Project which risks immediately branding the province as hostile to the energy sector and the resource industry in general…the pipeline expansion has been approved at all levels, and construction is scheduled to commence in September, but the NDP-Green coalition could easily find ways to delay the project and force the federal government to take the province to court…meanwhile, Kinder Morgan just raised $1.75 billion in the biggest IPO in the energy sector in 2 years, though shares in Kinder Morgan Canada (KML, TSX) immediately came under pressure in the stock’s debut yesterday due to the new uncertainty in British Columbia…KML is off 16 cents at $16.08 as of 7:00 am Pacific, nearly $1 below the IPO price…

6.  Canadian Zeolite (CNZ, TSX-V) has signed a non-binding Letter of Intent (LOI) to acquire 100% of a manufacturer and distributor of Zeolite products based in the United States…according to news this morning from CNZ, the target company has a state-of-the-art, GMP-certified (good manufacturing practice) research and development lab in Arizona where it develops its product formulations and manufactures product lines…the facility can accommodate bulk Zeolite warehousing and distribution of manufactured Zeolite products into the U.S. market…the company is focused on creating nutraceutical products for human use, as well as enhanced fertilizers and water filtration systems…CNZ is up 8 cents to 69 cents as of 7:00 am Pacific…we’ll have an updated CNZ chart in today’s Morning Musings…

7. Critical Elements (CRE, TSX-V) is approaching its yearly high of 95 cents after releasing positive results Monday from a pilot plant program recently completed by the company to demonstrate easy and efficient conversion of CRE’s spodumene resources into battery quality Lithium carbonate (Li2CO3) using the thermal leaching process…this well-known conversion process (calcination, thermal leaching, and bicarbonization and crystallization) from spodumene concentrate to Lithium carbonate showed strong results with extraction rates of 88.4% and very high purity of Lithium carbonate at 99.9%…this extraction rate surpasses the worldwide average of between 70% and 75% which is accepted as an industry standard…CRE is up a nickel at 85 cents as of 7:00 am Pacific…

The most popular recent BMR articles…

How The Eskay Heart of Gold Camp Will Help Drive The Coming Venture Up Wave (Part 1)

“Beyond the Supercycle”:  15 Predictions About The Future Of Natural Resources

Tech-Savvy Junior Captures Cobalt Camp Advantage

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

May 30, 2017

7 @ 7:00

Check the BMR comments section throughout the day for updates and helpful information, and visit BMR for possible additional posts today. Morning Musings returns tomorrow.

1. Gold has traded between $1,259 (potential new support) and $1,269 so far today as it attempts a confirmed breakout above $1,260 to close out the month…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,264…TD Securities stated, “Given the current political circumstances and emerging uncertainty surrounding U.S. rate hikes and broader monetary and fiscal policy, we believe there could be further room for Gold to move higher still.  The yellow metal may well trend toward a technically determined high near the upper bound of the trading range just under $1,290“…Silver is up slightly at $17.34…political uncertainty in Europe is another factor in Gold’s favor…in particular, investors are nervous about the German vote September 24 along with mounting speculation that Italians could head to the polls in autumn though elections aren’t due there until May 2018…euro zone finance ministers’ failure to agree on Greek debt relief with the International Monetary Fund last week has also added to risk aversion…

2. Goldman Sachs‘ analysts have trimmed their longer-term forecasts for Oil prices, saying that falling U.S. production costs will keep supply rising for years to come…the bank said that once OPEC’s production growth resumes after its self-imposed cuts, U.S. and OPEC output would rise by 1 million to 1.3 million bpd between 2018 and 2020…Goldman, however, remains bullish on near-term prices as inventories normalize…

3. The Venture is flat at 810 through the first 30 minutes of trading…Jaxon Minerals (JAX, TSX-V) continues to trade robustly, up a penny at 24 cents…it has momentum in its favor as it attempts a breakout above that resistance…Arizona Silver (AZS, TSX-V) was halted at 6:45 am Pacific, pending news…AZS has climbed dramatically this month after the company reported May 11 that it had intersected massive silica with locally banded quartz-chalcedony veins over a downhole distance of 44.2 m at its Ramsey Silver Project in Arizona…Orca Gold (ORG, TSX-V) is pushing higher after reporting this morning that an extensive airborne geophysical survey carried out to the west of its 70%-owned owned Block 14 Project in Sudan has resulted in the discovery of a new and larger water resource for the project – a significant development…the TSX is 25 points lower while the Dow has slipped 37 points as of 7:00 am Pacific…Amazon (AMZN, NASDAQ) traded above $1,000 per share this morning for the first time ever…

4.  Golden Predator Mining (GPY, TSX-V) is up modestly in early trading after releasing assay results for 16 of 43 drill holes completed as of mid-May at its 3 Aces Project in southeastern Yukon…step-out drilling has successfully encountered mineralization 150 m from previous Ace of Spades drill intercepts while this morning’s results also featured the highest-grade drill intercept received to date on the Ace of Spades vein…assays included 39.6 m @ 13.3 g/t Au from a depth of 9.1 m (hole 3A17–098); 14.5 m of 15.3 g/t Au from a depth of 8.4 m (3A17–099); and 3.05 m @ 8.12 g/t Au (3A17–111) from a depth of 16.8 m…the 2017 drill program started in February and is initially focusing on the Spades Zone before expanding to other areas of the property…the fully funded 40,000-m drill program will continue throughout 2017…

5.  RJK Explorations (RJX, TSX-V) has cut an interesting deal with Earth Science Services Corp. (ESSCO) which has identified a promising area at RJK’s Maude Lake Gold Property in northern Ontario using its proprietary target modeling interpretation system (Maude Lake has already delivered some impressive results this year and features abundant historical intercepts including 19.5 g/t Au over 8 m at depth)…ESSCO will complete 1 drill hole to test its model…if the hole returns mineralization that RJK determines, at its sole discretion, deserves further evaluation and drilling of the target area, RJK will then issue to ESSCO 1 million shares…RJX.A is up more than 50% this month, closing yesterday at 23 cents – just 1.5 cents below a new multi-year high…

6. Lundin Gold (LUG, TSX) has arranged a project finance package of $400 million to $450 million with the Orion Mine Finance Group and Blackstone Tactical Opportunities, underscoring the growing support for mining investment in Ecuador as Lundin works toward development of the rich Fruta del Norte Project…Ron Hochstein, Lundin President and CEO, says the financing “confirms the strength of this project and gives us the ability to move full speed ahead with construction.”  The company says the expected first Gold production has been moved forward several months, from the 1st quarter of 2020 to 4th quarter of 2019…average annual Gold production is anticipated to exceed 300,000 ounces over 15 years at an average life-of-mine cost of $561 an ounce and all-in sustaining cash cost of $609 an ounce (U.S.)…life-of-mine production is expected to be approximately 4.5 million ounces of Gold and 5.5 million ounces of Silver…estimated project capital cost is $684 million…

7. Osisko Mining (OSK, TSX) reported significant new assay results this morning from 13 intercepts in 10 drill holes focused on infill and expansion drilling in the main Windfall deposit and Lynx Zone at its Windfall Lake Gold Project in Urban township, Quebec…highlights included OSK-W-17–837 in the Lynx Corridor which intersected 97.4 g/t Au over 8.5 m (33.7 g/t Au over 8.4 m cut) and 116 g/t Au over 2.4 m (46.4 g/t Au over 2.4 m cut) in OSK-W-17–814 in the new Lynx 5 discovery…the 400,000-m drill program continues…the Windfall Lake deposit is currently one of the highest grade resource-stage Gold projects in Canada…the bulk of the mineralization occurs in the Main Zone, a southwest/northeast trending zone of stacked mineralized lenses, measuring approximately 600 m wide and at least 1,400 m long…the deposit is well defined from surface to a depth of 500 m, and remains open along strike and at depth…mineralization has been identified only 30 m from surface in some areas and as deep as 870 m in others, with significant potential to extend mineralization up and down-plunge and at depth….

The most popular recent BMR articles…

How The Eskay Heart of Gold Camp Will Help Drive The Coming Venture Up Wave (Part 1)

“Beyond the Supercycle”:  15 Predictions About The Future Of Natural Resources

Tech-Savvy Junior Captures Cobalt Camp Advantage

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

May 29, 2017

BMR Morning Market Musings…

Gold has traded between $1,265 and $1,269 on a light trading day due to holidays in the U.S., the UK and China…as of 11:00 am Pacific, Gold is up $1 an ounce at $1,267…trading tomorrow and Wednesday will determine whether or not there has been a confirmed breakout in bullion above key resistance at $1,260, but the odds do favor higher prices in June given the metal’s current technical posture…it’s also significant how Gold and the Japanese Yen are rising in tandem…Silver is up 6 cents at $17.37…Copper is off slightly at $2.56…Nickel has added 2 pennies to $2.10…Crude Oil is 19 cents higher at $49.99 while the U.S. Dollar Index is flat at 97.41…

A potential near-term catalyst for further gains in Crude could be U.S. inventory data on Thursday, delayed a day this week because of the Memorial Day holiday…U.S. weekly Oil inventories have fallen for over a month and that’s a good sign for investors looking for indications that the market is rebalancing after years of surplus production…

A big question is how long OPEC will be able to maintain its high level of discipline with the production cuts, but the Saudis appear determined to ensure that Oil’s price bias remains to the upside…

As if there aren’t enough security concerns around the world, the black flag of ISIS has been raised in the Philippines…media reports say at least 103 people have died in the city of Marawi on the southern island of Mindanao in less than a week as fighters affiliated with ISIS engaged in violent clashes with government forces, and martial law was declared over the entire island…the influence of ISIS has spread throughout Southeast Asia in recent years, with more than 60 groups in the region pledging allegiance to self-declared caliph Abu Bakr al-Baghdadi, according to the Singapore-based International Centre for Political Violence and Terrorism Research (ICPVTR)…

Venture-Gold-Silver-Copper-Oil Comparative

Good sign – the Venture continues to outpace Gold, Silver, Copper and Crude Oil with a gain of 10% over the last 6 months vs. smaller advances in WTIC, Gold and Silver and a minor decline in Copper…

During a bull market the Venture will always lead commodities to the upside…this trend will likely accelerate in favor of the Venture during the 2nd half of the year…

Venture 16-Year Monthly Chart

Nervous nellies (typically crowd followers) who aren’t sure about the Venture’s direction really need to study this chart in detail…

The breakout above the long-term downsloping channel in early 2016 was confirmation that a new bull market had started…note the extreme oversold RSI(14) conditions that preceded this, at the bottom of the bear market, and the reversal to the upside in the 300-day moving average (SMA) that accompanied the breakout above the downsloping channel…

Historically, the rising 300-day acts as major support during bull markets as it did from 2003 through mid-2007, and again during 2010…earlier this month, the Venture landed within just 20 points of its 300-day when it touched a post-Easter correction low of 772…

Buy pressure is steady, the ADX indicator confirms a bullish trend, and RSI(14) at 56% is now trying to push above a downtrend line in place for more than a decade…

The Venture is perfectly positioned for a major new advance during the remaining 7 months of 2017…

In today’s Morning Musings…

1. Jaxon hits new multi-year high…

2. A $4 million market cap Gold play with high-grade and a rapidly improving balance sheet…

3. Silver will sizzle during the 2nd half of 2017…

4. Two non-resource plays that look very attractive on pullbacks…

5. Daniel’s Den – observations from the Metal Writers Conference in Vancouver…

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of today’s Morning Market Musings, sign up NOW or login as a current subscriber with your username and password.

7 @ 7:00

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

1. Gold has traded in a narrow range between $1,265 and $1,269 on this U.S. Memorial Day holiday…equity markets were also closed in London and China today for holidays there…as of 7:00 am Pacific, the yellow metal is off $1 an ounce at $1,265 after Friday’s push through key resistance at $1,260…however, confirmation of a breakout will hinge on how Gold trades tomorrow and Wednesday to close out the month…Silver has added a nickel to $17.26…base metals are quiet today…Cobalt has climbed to $25.40, putting it just 23 cents shy of its 2017 decade high…hedge funds and other money managers increased their net long position in COMEX Gold for the first time in 4 weeks in the week to May 23, according to the latest U.S. Commodity Futures Trading Commission data…concerns over North Korea continue to mount as the rogue regime fired at least 1 short-range ballistic missile today that landed in the sea off its east coast, the latest in a fast-paced series of missile tests defying world pressure and threats of more sanctions…

2. Crude Oil prices are stable this morning, essentially unchanged at $49.77 as of 7:00 am Pacific, after last Thursday’s deal among OPEC and certain non-OPEC countries to extend their production cut by 9 months to the end of Q1 2018…meanwhile, U.S. production has soared 10% since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia…U.S. drillers have added rigs for 19 straight weeks, bringing the total to 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes…almost all of the recent U.S. output increases have been onshore, from so-called shale Oil fields…Even if the rig count did not rise further, Goldman Sachs estimates that U.S. output would increase by 785,000 bpd between the 4th quarter of 2016 and the 4th quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays…

3. The crowd followers who were chasing Bitcoin to new record highs last week are feeling some pain, at least temporarily…nearly $4 billion has been wiped off the value of Bitcoin the past 4 days after a sharp correction that has seen the cryptocurrency’s price fall 20%…last Wednesday, Bitcoin hit an all-time high of $2,792…this morning, the digital currency is trading at $2,222, marking a $570 drop or a 20.4% decline from the record high…it’s difficult to say where support could form…however, there is a lot of fresh liquidity flowing into Bitcoin, thanks to a surge in interest among investors in Asia, notably Japan and Korea, coupled with a resolution to the scaling debate (boosting the capacity of the Bitcoin network)…some analysts are calling for Bitcoin to climb as high as $6,000 by year-end…

4. Deveron UAS (DVR, CSE) has become one of the first nationally Compliant drone operators in Canada…the company announced this morning that it has been granted approval as a Compliant operator under its special flight operations certificate (SFOC) for the operation of a small unmanned airborne vehicle (UAV) system within visual line of sight, issued under the authority of the Minister, Transport Canada, pursuant to the Aeronautics Act…the certificate is valid for aerial data collection and surveying throughout Canada, and meets the highest level of approvals under Transport Canada’s regulatory environment related to UAV activities…Deveron is one of the first companies in the country to receive this Compliant status as well as one of the first to receive Compliant approval using the senseFly eBee UAV system…DVR is up 6 cents at 50 cents as of 7:00 am Pacific…

5.  Dolly Varden Silver (DV, TSX-V) has mobilized crews for its 2017 program on the Dolly Varden Silver Project in northwest B.C.’s Golden Triangle…this season’s program will have a minimum budget of $3.5 million featuring approximately 5,000 m of diamond drilling…two-thirds of that will be allocated to resource validation and expansion while one-third will consist of exploratory drilling outside the current resource…there are over 50 exploration targets on the property…geological mapping, plus geophysical and geochemical surveys, are planned for both the main Dolly Varden Ag-Pb-Zn Project as well as the adjacent Big Bulk Cu-Au Project…DV is unchanged at 65 cents in early trading where its 50-day SMA has flattened out after a gradual decline since late March…

6. The Venture is up 1 point at 810 as of 7:00 am Pacific in a quieter session than usual due to the U.S. holiday…Friday’s pullback was indeed a good accumulation opportunity in Jaxon Minerals (JAX, TSX-V) as the stock has reversed aggressively to the upside this morning, touching a new high of 24 cents in early trading…Canadian Zeolite (CNZ, TSX-V) has jumped 7.5 cents to 56 cents as of 7:00 am Pacific after announcing a distribution agreement with Shift Supplies Ltd. for the its natural Zeolite product line…CNZ has been restrained by a declining 50-day SMA, currently in the low 60’s, since late February…a breakout above the 50-day and a reversal to the upside in that SMA would signal the start of a bullish new trend…Nighthawk Gold (NHK, TSX), making the jump from the Venture, started trading on the TSX this morning and is unchanged at $1.11 as of 7:00 am Pacific…drill results shortly from Colomac…

7. Enforcer Gold (VEIN, TSX-V) is coming off a strong week, thanks largely to a big jump Thursday on volume of more than 2 million shares…VEIN is unchanged at 23 cents through the first 30 minutes of trading today as volume remains robust…VEIN has commenced a major field exploration program at the Montalembert Gold Project in northern Quebec…this will include the first-ever large diameter core drilling campaign (expected to commence in mid-to-late June) to be conducted on the high-grade Galena and No. 2 veins…the exploration program is expected to run uninterrupted through the late fall of 2017 and is fully funded…the style of the vein systems at Montalembert is shear-hosted quartz-carbonate Gold mineralization, the most significant source of Gold in the Abitibi greenstone belt…

The most popular recent BMR articles…

How The Eskay Heart of Gold Camp Will Help Drive The Coming Venture Up Wave (Part 1)

“Beyond the Supercycle”:  15 Predictions About The Future Of Natural Resources

Tech-Savvy Junior Captures Cobalt Camp Advantage

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

May 28, 2017

Sunday Sizzler Report

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How The Eskay Heart Of Gold Camp Will Help Drive The Coming Venture Up Wave (Part 1)

BullMarketRun.com Exclusive Special Report

June is right around the corner and exploration crews for multiple companies are anxious to “hit the ground running” over the next 2 to 3 weeks in what promises to be the busiest summer the prolific Eskay Heart of Gold Camp has witnessed in almost 3 decades.  Even a new mine, one of the highest-grade Gold mines anywhere in the world, is now coming on stream as commissioning began in April for Pretium Resources‘ (PVG, TSX) Brucjack with commercial production slated for the 2nd half of 2017.

The Brucejack mine is projected to churn out 500,000 ounces of Gold per year during its first 8 years at an average grade of 16.1 g/t Au.

Last year, stocks of juniors active in the Camp peaked early, by mid-August.  This time around it’ll be a different story for reasons related to the overall market to the sheer magnitude of drilling and exploration activity which will greatly exceed that of 2016.

For investors, profit opportunities are truly extraordinary given the immense geological power of this district and the fact the Venture is preparing for a new wave to the upside after consolidating in a range between 850 and the low 700’s over the last 9 months following an 82% surge over just 6+ months last year.

Keep in mind, the Eskay Heart of Gold Camp stocks helped lead the first phase of the new Venture bull market in 2016.  They will help drive the second phase this summer with all of John’s charts pointing to a major breakout in the Index above 850 as the bull cycle comes out of its consolidation.

Two District Out-Performers This Year

Many investors would be surprised to learn that the two best-performing juniors in the Eskay Camp over the last 6 to 9 months have been Garibaldi Resources (GGI, TSX-V) and Eskay Mining (ESK, TSX-V).  That’s a trend that can be expected to continue, though some other situations are expected to begin to accelerate once they’re able to overcome some technical constraints (Colorado Resources, CXO, TSX-V, and Aben Resources, ABN, TSX-V, for example, continue to fight declining 200-day moving averages).

Eskay Mining has doubled in price in 2017 to lead all juniors in the Camp so far this year in terms of share price performance, thanks to its deal with Silver Standard Resources (SSO, TSX) regarding the SIB, a true jewel of the entire Golden Triangle.  Garibaldi leads the pack in percentage gains going back to the start of Q4 last year when it became apparent that there was much more to its 100%-owned E&L deposit and surrounding claims at Nickel Mountain than historical explorers were able to outline in the 1960’s.

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read the rest of today’s Special Report, click here or login as a current subscriber with your username and password.

May 27, 2017

The Venture Week In Review And A Look Ahead

TSX Venture Exchange and Gold

The Venture has an excellent chance to post its best month of May since 2009.

Oops!  Those who thought it was wise to “Sell in May and Go Away” have made a serious miscalculation (again).  That over-used adage simply has no truth to it but has benefited astute investors who have taken the opposite approach, especially during Venture bull market years when any weakness at any point in May has repeatedly proven to be a tremendous accumulation opportunity.

This time around, in 2017, the Venture ended April at 807 and then quickly plunged nearly 5% to a monthly low of 772 on May 9.  Those who were panicking and selling in the 780’s and 770’s were simply acting on emotion, not on sound reasoning based on fundamental and technical facts.  John’s charts have consistently shown a tremendous band of technical support ranging from 770 to 800, with superb additional back-up strength directly beneath that at the rising 300-day moving average (SMA) which has been the Support off all Supports during Venture bull market years.

Nonetheless, the naïve will do as they please – a fool and his money are soon parted is an expression that holds more truth to it, by orders of magnitude, than “Sell in May and Go Away”. 

At many times this month, however, as we pointed out Friday, following the Venture has been like watching paint dry.  Good news isn’t impacting most stocks at the moment, but don’t take that as a reflection of the quality of the news, the companies involved or the actual opportunity.  It’s just a temporary overall market condition that occurs at various periods, even during the best of bull markets (happened often during 2009 and early 2011).  The Venture is a reflection of a lot of things on any given day, including human emotions.

At some point soon, a spark will suddenly ignite the Venture.  The Index will put on its dancing shoes and the party will begin in earnest again.

In the meantime, there are some select plays that have been outperforming recently and we’ll be highlighting those in our Sunday Sizzler and Monday’s Morning Musings.  Keep in mind, Monday is Memorial Day for our friends in the United States.  U.S. markets will be closed and that will impact Venture and TSX volumes.

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

To read tonight’s report, click here or login as a current subscriber with your username and password.

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