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1. Gold has traded between $1,251 and $1,258 so far today as the Fed begins its 2-day policy meeting…as of 7:00 am Pacific, the yellow metal is down $2 an ounce at $1,254…SPDR Gold Shares, the world’s largest physical Gold ETF, added 21 tonnes of Gold in April, following an outflow of 9 tonnes in March…it has been a volatile 2017 in the ETF space for Gold after an outflow of 23 tonnes in January followed by a positive surge of 42 tonnes in February…a more than 3% rally in Gold that helped push prices to a 5-month high last month created a significant drag on U.S. Mint coin sales…the latest data provided by the Mint shows that a total of 6,000 ounces of Gold, in various denomination of American Eagle Gold bullion coins, were sold last month in the worst April performance in 5 years and the lowest sales pace in 16 months…meanwhile, Chinese Gold imports jumped 64.5% on an annual basis in Q1 2017 while the country’s production of the yellow metal tumbled 9.3% as the world’s top Gold producer and consumer phased out older production facilities triggered by Beijing’s attempts to curb overcapacity, according to a statement released by the China Gold Association (CGA)…

2. OPEC Oil output fell for a 4th straight month in April, a Reuters survey found today, as top exporter Saudi Arabia kept production below its target while maintenance and unrest cut production in exempt nations Nigeria and Libya…Russian Oil production fell slightly last month to 11 million bpd, almost hitting its output target under the deal with OPEC…however, more Oil from Angola and higher UAE output than originally thought slightly lowered OPEC compliance with its production cutting agreement to 90%…WTI is off slightly at $48.74 as of 7:00 am Pacific…

3. The Venture’s streak of consecutive closes above 800 remained intact yesterday, thanks to a late-session rally that took the Index from a low of 797.47 to a close at 801.6…it’s off slightly at 799 in early trading today…the Venture has closed above 800 for 33 consecutive sessions which hasn’t occurred for 2-and-a-half years…the mining sector is keeping a close eye on B.C.’s upcoming election…a new exclusive online Ipsos poll for Global News and CKNW shows the BC Liberals are gaining momentum and have pulled slightly ahead of the NDP after last Wednesday’s televised debate…

4. Castle Silver Resources (CSR, TSX-V) is preparing to create value-added Cobalt products (high purity powders targeted for battery manufacturers) sourced from its Castle mine in northern Ontario using its 100%-owned “Re-20X” hydrometallurgical process unveiled yesterday…Re-2OX, designed for high recovery of multiple metals and elements from all feeds with varying chemistries, was developed in conjunction with the National Research Council (NRC)…CSR has opened the main portal at Castle and will soon begin an underground sampling and drilling program with full access to the first level at a depth of 70 feet which extends 365 m (1,200 feet) east-west and 360 m north-south…Castle was a prolific high-grade Silver producer throughout much of the 1900’s with Agnico Eagle (AEM, TSX) being the last operator in the late 1980’s…historically, miners followed the quartz carbonate veins containing Cobalt to hone in on the exceptionally high-grade Silver…CSR, which has only 35 million shares outstanding, is up a penny at 25.5 cents as of 7:00 am Pacific…

5.  Precipitate Gold (PRG, TSX-V) has released additional soil sampling results, increasing the concentration of elevated samples within the recently identified Gold-in-soil geochemical anomaly at the Ginger Ridge East zone within the company’s 100%-owned Juan de Herrera Project in the Dominican Republic…the northwest-southeast trending soil anomaly is both consistent and strong (1,000 m long and an average of 100 m wide), with notably elevated Gold, Lead and Zinc values throughout the surface anomaly along with intermittent Copper values…This recently identified multi-element soil anomaly is located approximately 1 km east of the main drill test area at Ginger Ridge and has developed into a high priority drill target for the next phase of drilling…

6. Camino Minerals (COR, TSX-V), which has made a high-grade Copper discovery at its Los Chapitos Project in southern Peru, announced this morning that it has arranged a $2.5 million financing at 95 cents to immediately carry out an expanded new phase of diamond drilling…the Phase 1 reverse circulation (RC) drill program totaled 5 holes and focused on the Adriana zone, 1 of several zones located along a 6-km-long trend on the eastern side of the property…all 5 RC holes intersected varying amounts of oxide Copper mineralization…holes CHR-002 and CHR-005 also intersected sulphide mineralization averaging 1.30% Cu over 106 meters and 0.86% Cu over 44 m, respectively…

7. Tightly-held Deveron UAS (DVR, CSE), one of our favorites which is in the midst of completing a game-changing financing for at least $2 million (an initial tranche for $1.3 million has already closed) finished at its highest level (51 cents) yesterday since last summer…the company’s recently announced multi-year deal with Thompsons Ltd. is further evidence that DVR is dominating and leading innovation in drone-data-related precision agriculture…Norm Lamothe, the original owner and developer of UAS business Eagle Scout acquired by DVR last year, stated:  “There are so many opportunities to apply technology to the 88 million acres of farmland in Canada, and our UAV service delivers data analytics and solutions while saving the farmer the additional burden of owning hardware, interpreting data, planning flights and dealing with the regulatory system.”  Deveron UAS is making new inroads into Western Canada as well as the United States…

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Gold has traded between $1,254 and $1,269 so far today…as of 11:30 am Pacific, the yellow metal is down $11 an ounce at $1,257 (200-day moving average)…Silver has slipped 29 cents to $16.88…Copper is up 2 pennies at $2.59…Nickel has climbed 6 cents to $4.26…Crude Oil is 57 cents higher at $48.76 while the U.S. Dollar Index has climbed one-tenth of a point to 98.06…

Copper made an unusual move this morning, and we’ve already seen the potential for volatility in Gold this week given a range of factors including lack of liquidity as many financial markets in Asia and Europe were closed today for the May Day holiday…Tokyo markets will be closed for 3 days from Wednesday for a string of holidays known as Golden Week…meanwhile, the Fed starts a 2-day meeting tomorrow…no rate increase is expected Wednesday but Fed funds futures are pricing in about a two-thirds chance of a June rate hike…the U.S. monthly jobs report is due Friday while tensions with North Korea continue to demand attention…

July Copper futures suddenly surged to a near 1-month high this morning as prices briefly leaped by more than 2.5% around 6:31 am Pacific, hitting $2.69 a pound, the highest price since April 5…low volume due to European and Asian holidays was likely a contributing factor…in addition, thousands of workers at the world’s 2nd-largest Copper mine (Freeport–McMoRan’s Grasberg mine in Indonesia) staged a rally today ahead of a planned month-long strike to protest layoffs…

Hedge funds continued to buy Gold for the 6th consecutive week, in the period ending last Tuesday according to Friday’s fresh data, despite the market’s recent failure to break above $1,300 an ounce and diminished “risk-off” investor sentiment…Gold net length increased only 6% from the previous week, down from double-digit percentage gains seen in the previous 3 weeks…the modest expansion in bullish positioning had little impact on prices as June Comex Gold futures fell slightly during the survey period…

The U.S. Mint reports that American Eagle Gold bullion coin sales recorded their worst April performance in 5 years and the lowest sales pace in 16 months…

Oil Update

U.S. drillers added 9 Oil rigs in the week to April 28, bringing Baker Hughes‘ count to the most since April 2015, the energy services company said Friday…Crude output in the U.S. has hit its highest since August 2015, according to government data…

“The U.S. rig count indicates that there is plenty more to come,” analysts at JBC Energy said in a report, referring to the outlook for U.S. production…

Prices also came under pressure after an official survey showed over the weekend that growth in Chinese manufacturing slowed faster than expected in April, potentially weighing on the outlook for Oil demand (and other commodities)…

Iran’s Oil minister said on Saturday that OPEC and non-OPEC producers had given positive signals for an extension of output cuts, which Tehran would back…despite OPEC’s efforts, the Oil glut has been slow to shift…the International Energy Agency said in its latest monthly market report that Oil stocks in industrialized countries were about 336 million barrels above the 5-year average, a key indicator for OPEC…

CRB Index Update

The CRB Index is currently in the low end of a range it has remained within since April of 2016 – a very distinctive 1-year horizontal channel between 177 and 196…

The CRB is off slightly at 181 this morning but it’s reasonable to believe we’ll see another test of the 177 level before the CRB gains some traction again…Slow Stochastics (SS) appears to be forming a low “W”, which generally indicates a turnaround is on the horizon, while RSI(14) at 40% also appears to be close to a reversal…

A little more weakness should be expected in the CRB before the Index firms up again which seems to jive with what the Venture is telling us…

In Today’s Morning Musings….

1. The 7-cent Gold junior with a multi-million ounce resource under strong accumulation…

2. Updated Silver charts – key near-term support the metal needs to hold…

3. Three tightly-held plays that could “pop” in May..,.

4. Daniel’s Den – The GDXJ debacle and the impact on 2 Gold stocks in particular, plus a busy news week!…

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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!

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

1. Gold has traded between $1,261 and $1,266 so far today…as of 7:00 am Pacific, the yellow metal is down $3 an ounce at $1,265…many financial markets in Asia and Europe are closed today for the May 1 Labor Day holiday overseas…Gold fell by 1.3% last week, its biggest weekly percentage decline since early March, but the metal ended April with a monthly gain of about 1.5%…INTL FCStone is constructive on Gold for May, calling for a range of $1,240 to $1,310 an ounce. “We see Gold maintaining a relatively higher trading range in May as tensions with North Korea  – yet another missile was fired this weekend – will command more attention now that the bearish impact of the French election is out of the way,” they stated.  “Other supportive factors include an expected weaker dollar, dovish stances taken by the ECB and the BOJ at their recent meetings and the fact that physical and ETF demand seems to be picking up.” 

2. The Venture begins a new month trying to reverse a 2-week slide that has taken 28 points or 3.3% off the Index which had its first losing April in 4 years…very strong technical support ranges from 780 to 800, but the Index has enjoyed its longest stretch of closes above 800 (32 consecutive sessions) in 2-and-a-half years…as of 7:00 am Pacific, the Venture is off 1 point at 806…the TSX has added 15 points while the Dow is 8 points lower…

3. Global miner South32 is taking a 15% ownership position in Arizona Mining (AZ, TSX) with AZ reporting this morning that it has signed a binding private placement agreement for 45 million common shares in the company at a price of $2.45 per share with South32 for gross proceeds of $110.3 million (CDN)…the proceeds will be used to add drill rigs and fully test the Taylor Deeps, Trench Vein system and other high-priority targets, as well as to advance the company’s Taylor deposit to the feasibility and permitting stage.  “We are extremely pleased to welcome South32…as a strategic investor in Arizona Mining,” stated Jim Gowans, AZ President and CEO.   “South32’s significant investment represents an endorsement of the Taylor Zinc-Lead-Silver deposit and recognizes the deposit’s growing world class stature and additional prospectivity.”  AZ is up 26 cents at $2.15 through the first 30 minutes of trading…

4. Wet commissioning is nearing completion at Pretium Resources‘ (PVG, TSX) Brucejack mine, one of the world’s highest grade Gold mines in the Eskay Heart of Gold Camp…the commissioning process was initiated last month and Pretium reported this morning that the first ore has been introduced to the process in preparation for production…Proven and Probable mineral reserves in the Valley of the Kings are a whopping 8.1 million ounces of Gold (15.6 million tonnes grading 16.1 g/t Au)…to the northwest at Nickel Mountain, Garibaldi Resources (GGI, TSX-V) is carrying out a VTEM survey over the E&L Nickel-Copper rich deposit and surrounding area…it’s the first modern geophysics program ever undertaken at the E&L which is also the first magmatic Nickel massive sulphide system discovered in this prolific district…

5.  First Cobalt (FCC, TSX-V) announced this morning that it has signed an exclusive LOI with an associate of Madini Minerals to form a strategic alliance and earn a controlling interest over 7 prospective Copper-Cobalt exploration properties covering 190 sq. km in the Democratic Republic of the Congo…FCC would be a 70% joint venture partner on each of the 7 properties with Madini holding an 8.5% ownership interest in First Cobalt.  “This transaction will allow First Cobalt to firmly establish a presence in one of the richest mining camps in the world. I also look forward to announcing the work plan for the Keeley–Frontier mine in northern Ontario in the near future as we move forward with our strategy to provide focused leverage to the Cobalt market,” stated FCC CEO Trent Mell…FCC is up 4 pennies at 72 cents as of 7:00 am Pacific…

6. Callinex Mines (CNX, TSX-V) has intersected 2.6 m grading 3.0% Copper equivalent (1.64% Cu, 0.53% Zn, 0.92 g/t Au and 34.6 g/t Ag) in drill hole PBM-024 at its Pine Bay Project near Flin Flon…the VMS intercept occurs approximately 180 m along strike to the southwest of and 70 m below the 10.3 m thick intersection of 13.1% Zn equivalent discovered by the company late last year in drill hole 284–3–93-DPN…importantly, the location of the PBM-024 intersection suggests that the massive sulphide zone, if proven to be continuous from the 10.3 m intersection in 284–3–93-DPN, likely has a strike length comparable with many of the more significant past-producing VMS mines within the Flin Flon district…CNX is up half a penny at 34 cents in early trading…

7. More strong drill results this morning from Atlantic Gold (AGB, TSX) as it continues with resource definition drilling at 2 of its deposits in Nova Scotia (Fifteen Mile Stream and Cochrane Hill)…highlights from the former include 49 m @ 2.37 g/t Au from 24 m, 17 m @ 3.49 g/t Au from 60 m, and 24 m @ 1.65 g/t Au from 35 m…Cochrane Hill highlights include 16 m @ 3.48 g/t Au from 51 m, 6 m @ 7.00 g/t Au from 47 m, 16 m @ 1.63 g/t Au from 77 m, and 17 m @ 1.90 g/t Au from 202 m…the company is upgrading resources at both deposits to Measured and Indicated categories…a Pre-Feasibility Study will determine the economic viability of processing these deposits at the company’s Moose River Consolidated (“MRC”) facility…AGB is off 2 pennies at $1.44 through the first 30 minutes of trading…

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