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Gold has traded between $1,239 and $1,248 on this final day of the month and quarter…as of 11:45 am Pacific, bullion is down $4 an ounce at $1,241…Silver is relatively unchanged at $16.60…Copper up slightly at 2.68…Nickel has jumped 6 cents to $4.24…Crude Oil, up 7 days in a row, has surged $1.15 a barrel to $46.08 while the battered U.S. Dollar Index has reversed modestly higher, adding nearly one-fifth of a point to 95.70…
For what it’s worth, the weekly Kitco NewsGold Survey shows “Main Street” with its most bearish stance on prices for the coming week since July 2015…more than two-thirds of online Main Street voters are calling for Gold to fall some more in the week ahead…if you’re a contrarian, those are numbers you have to like (though they could climb even higher a week from now, which would even be more bullish in terms of a summer turnaround)…
Tensions are ramping up in the Middle East, and that’s often bullish for both Oil and Gold…the dispute between Qatar and its neighbors is now more serious as it enters its 5th week with Qatar rejecting a list of demands from Saudi Arabia and other countries…this will likely prolong the crisis…some Middle East watchers believe the risk of armed conflict is growing…Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic ties with Qatar and implemented a partial blockade on June 5 in a bid to bring the tiny Persian Gulf monarchy in line with Saudi-dominated foreign policy…the demands include shutting down Al Jazeera news and closing a Turkish military base…the coalition is also calling on Qatar to end its ties to terrorist groups and political opposition figures in Gulf nations and Egypt while demanding that Qatar pay reparations and submit to compliance reviews going forward…
U.S. Oil Rig Count Declines For First Time Since January
Baker Hughes reported within the last couple of hours that its weekly count of Oil rigs operating in U.S. fields fell for the first time since January, down by 2 at 756…that gave traders fresh encouragement and added significantly to gains in WTIC…
Oil prices generally increase during the 1st half of most years…2017, however, has been the opposite – WTIC will post its worst 1st half performance since 1988…
In today’s Morning Musings…
1. Canadian Zeolite (CNZ, TSX-V) update – one of Venture’s top weekly performers…
2. Venture set to post its worst month of the year – last gasp of the consolidation?…
3. TSX Gold Index suggests summer volatility is on the way…
4. Daniel’s Den –returns with special BMR CANADA DAYposttomorrow…
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
To read the rest of today’s Morning Musings, sign up NOW orlogin as a current subscriber with your username and password.
Check back later this morning for today’s BMR Morning Market Musings.
1.Gold has traded between $1,239 and $1,248 so far today…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,242 while Silver is unchanged at $16.60…base metals are mostly in the green, led by Nickel with a gain of 1%…Cobalt, meanwhile, is threatening to push past $27 for the first time in nearly a decade…the U.S. Dollar Index is flat at 95.77…
2. Oil prices are up for a 7th straight session, 35 cents higher at $45.28, but will still post their worst first-half performance since 1998…lingering worries about oversupply sent WTIC down more than 15% after OPEC’s meeting near the end of May, even though the cartel and some non-OPEC members extended the production cut through the end of Q12018…recent days have seen some positive signs in the Oil market…U.S. Crude output dropped 100,000 barrels per day (bpd) to 9.3 million bpd last week, the steepest weekly fall since July 2016, while the amount of North Sea Brent Crude being stored on ships has declined to 6 million from 4-month highs of 9 million last week as refineries now appear to be taking in more cargoes…
3. The Green Monster has sunk its teeth into British Columbia…the federally appointed, Quebec-born Lieutenant-Governor of B.C. (a closet socialist?) refused the advice (new election) of Premier Christy Clark last night and has asked NDP leader John Horgan to form a government, ending 16 years of Liberal rule in the resource-rich province…it’s destined to be one of the most unstable, short-lived governments in B.C. history given a likely NDP speaker and a legislature that is therefore deadlocked at 43–43…the NDP-Green alliance, with nearly 90% of its representation from left-leaning Metro Vancouver and Vancouver Island, will attempt to pursue a radical agenda of a massive increase in the scope of government, tax hikes on corporations and the “rich”, and an assault on the Oil and gas industry highlighted by a signed pact to stop by any means the federally approved Trans Mountain Pipeline expansion…it’s a power grab unlike anything witnessed in British Columbia history after the Liberal Party in the May 9th election won the most seats, the popular vote, and enjoys the most consistent representation of MLA’s across the entire province…during its last time in power in the 1990’s, the NDP drove the provincial economy into such a ditch the Party was nearly obliterated by winning only 2 seats in the 2001 election…
4. The Venture is up slightly at 763as of 7:00 am Pacific (updated chart in today’s Morning Musings)…the TSX has lost 54 points while the Dow, experiencing a volatile finish to the month, is up 102 points through the first 30 minutes of trading…volumes are light ahead of holidays in both countries…Canadian markets are closed Monday due to the Canada Day long weekend while U.S. markets will be closed Tuesday as our American friends celebrate Independence Day…
5.Bonterra Resources (BTR, TSX-V) has closed its previously announced bought deal private placement (84 cents flow-through, 50 cents hard dollar with no warrants) for gross proceeds of $20 million…Eric Sprott acquired 4.6 million shares in the offering to up his ownership in BTR to just over 10%…the company is well-armed to build resources at its high-grade Gladiator Gold Project in Quebec where the total drilled strike strength on at least 2 horizons is 1.2 km…BTR is off a penny at 46 cents…
6. Kirkland Lake Gold (KL, TSX), one of the top performing Gold producers which continues to be our favorite, fell in price yesterday for the first time in 11 sessions…this morning, however, KL has jumped 27 cents in early trading to $12.36 (updated chart in today’s Morning Musings)…2 days ago the company released new high-grade drill intercepts from underground exploration drilling on the South mine complex (SMC) at the Macassa mine in Kirkland Lake…results from 25 diamond drill holes totalling 12,068 m intersected newly discovered mineralization extending the SMC east of the currently defined resource area and expanding the current resource area on the Lower SMC zone…in addition, drilling in the Lower SMC returned some spectacular high-grade mineralization, including 4,082 g/t over 0.5 m, resulting in the discovery of a new hangingwall system…
7. Frank Giustra boosted his direct and indirect holdings in Klondike Gold (KG, TSX-V) this week to 9,641,664 shares which represents 14.36% of the company’s outstanding stock…last week, KG announced that visible Gold was identified in each of the first 4 drill holes logged in detail at its promising Lone Star target in the Yukon…13 diamond drill holes have intersected the prospective target horizon adjacent to the newly recognized Bonanza fault…drilling is continuing, averaging 1 complete hole per day…KG is up slightly for the week, trading at 34 cents this morning…
Dr. Peter Lightfoot – Renowned Nickel Sulphide Expert – Eyes A Possible Game-Changing Discovery In B.C.
Dr. Peter Lightfoot, who published the first major textbook on the geology of the Sudbury ore deposits, started as a senior geologist with Inco shortly after the discovery at Voisey’s Bay and went on to enjoy a successful 20-year career with Inco and Vale before launching Lightfoot Geoscience last year. He was chief geologist for his last 7 years with Vale, responsible for regional and near-mine exploration at Sudbury, Voisey’s Bay and Thompson.
There are few individuals in the world with a better understanding of Nickel sulphide deposits, and the Nickel industry in general, than Dr. Peter Lightfoot. The highly respected geologist is now running his own business, Lightfoot Geoscience, after carving out a very successful 20-year career with Inco and Vale that began shortly after the infamous Diamond Fields’ discovery at Voisey’s Bay.
Dr. Lightfoot recently developed a major interest in the prolific Eskay Camp in northwest British Columbia, famous of course for its spectacular high-grade Gold and Silver and one of the richest ore discoveries in history – Eskay Creek. To the southeast of Murray Pezim’s great find, Pretium Resources (PVG, TSX) just poured its first Gold at Brucejack – on track to become one of the world’s premier Gold mines as it ramps up to commercial production at a rate of 500,000 ounces per year (16 g/t Au).
What has sparked more than just geological curiosity in Dr. Lightfoot is the growing recognition in recent months that the Eskay Camp could also host something resource investors generally would never expect in British Columbia – one or more Nickel-Copper-rich massive sulphide deposits. The specific area of interest is approximately 11 miles southwest of Eskay Creek where Garibaldi Resources (GGI, TSX-V) assembled a 63 sq. km land package last year (E&L Project) around Nickel Mountain, shortly after the bear market bottom. A modest but nonetheless significant near-surface drilling discovery was made at Nickel Mountain 50 years ago, but events unfolded in such a way that the discovery was never properly followed up on. Besides, those large Nickel sulphide deposits – they all occur in other jurisdictions, don’t they? The assumption is that B.C. is all about Gold, Silver and Copper.
“The E&L is in the top quartile of early stage Nickel sulphide projects in the world,” Dr. Lightfoot now declares. “The model opens up opportunities in non-traditional Nickel sulphide environments such as the Canadian Cordillera (includesthe Eskay Camp).”
After an exhaustive collection and reinterpretation of historic data, some field exploration last summer and a just-completed VTEM survey that revealed a series of promising conductors, Dr. Lightfoot leads a list of geologists who are convinced there’s much more to the E&L story. As a result he joined the Garibaldi Advisory Board in March, and the company’s summer exploration program including drilling is now about to test some exciting theories. The first drill holes will take direct aim at a bull’s-eye massive sulphide target including part of the historic resource and a large area defined by VTEM.
Prior to getting into some fascinating insights from Dr. Lightfoot, below is a list of known compelling facts regarding the E&L compiled by BMR’s research team:
Suffice to say, Dr. Lightfoot is bullish on the E&L – in geologist lingo, he’s optimistic but also appreciative of the fact that much still needs to be learned. This will be a “critical” summer, he said – something everyone can agree on.
Dr. Lightfoot’s E&L Analogue
Dr. Lightfoot’s hypothesis – we stress that this is a hypothesis at the moment – is that the Nickel Mountain setting shares similarities to many of the small intrusion orogenic Nickel deposits from Western China such as Karatungk, Huangshandong and Hunagshan – they are all in what’s referred to as “transform faults”. Jinchaun, also part of this belt and one of the world’s largest Nickel sulphide deposits, is perhaps an older equivalent, he believes.
In layman’s terms, an orogenic belt is a mountain range formed by compression of 2 plates at a continental margin. Strike-slip faults in the Western China Nickel Belt created open-system magma ‘highways’, resulting in highly efficient accumulations of Nickel sulphides. The same scenario may account for any major Nickel-Copper rich sulphide deposit that’s delineated in the heart of the Eskay Camp at the E&L Project.
“There has been a recognition in recent years that many of the important Nickel deposits are associated with very small intrusions that reside in cross-linking structures within strike-slip fault zones,” Dr. Lightfoot explained. “This model explains the development of sulfide ore deposits in small intrusions that are emplaced along ‘magma highways’ within these fault zones. The majority of Nickel sulfide ore deposits belong to this group. This model opens up opportunities in non-traditional Nickel sulfide environments such as the Canadian Cordillera.”
Dr. Lightfoot exploring for Nickel in Qinghai, China.
“The key control in many different geological environments is the development of transform (strike-slip) faults that provide paths for magma to migrate from mantle to surface and form small intrusions on the way,” Dr. Lightfoot continued. “This can happen in orogenic belts as well as rifted cratonic margins. Back when E&L was being explored by Sumitomo, this concept was not understood; even now it represents a hypothesis. But the enormous amount of information that has appeared on the Chinese Nickel deposits is very compelling evidence. Back in the 1960’s Sudbury was the really big Camp. Thompson and Talnakh had just been found, Jinchaun was a small deposit hidden in communist China when it found in 1959, and the importance of komatites and Kambalda was not recognized until the late 60’s. The exploration models for Nickel were in their infancy when Sumitomo was exploring E&L and the plate tectonic context of mineral deposits would not appear for a couple of decades after this.”
Intrusion Size – Where Many Investors Get It Wrong!
Click on the arrow to listen to more of Jon’s interview as he questions Dr. Lightfoot about what constitutes a “small intrusion” and why these features can be so prospective for major Nickel sulphide deposits:
Two other key points regarding the E&L from Dr. Lightfoot:
Initial helicopter-borne electromagnetic survey data point to significant conductivity associated with the known mineral zones and additional targets along strike that require follow-up;
The quality of the mineralization at the E&L, as measured by the Nickel tenor, is high and it has potential by-product credits.
We’ll have more with Dr. Lightfoot in the days ahead as we continue to investigate the possibility of the Eskay Camp hosting yet another remarkable deposit – in this case, one that would rewrite the geological playbook for the region.
Note: John, Jon and Daniel hold share positions in GGI.
Disclaimer:
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Check for a separate post later today and visit the BMR comments section throughout the day for updates and helpful information. BMR Morning Market Musings returns tomorrow.
1.Gold has traded between $1,239 and $1,253 so far today…as of 7:00 am Pacific, bullion is down $7 an ounce at $1,242 while Silver has eased off 17 cents to $16.61…base metals are stronger, led by Copper with a gain of 3 pennies to $2.68…Cobalt, meanwhile, has hit a new high of $26.99…the U.S. Dollar Index has slid another one-quarter of a point to 95.76…it was reported in a new study this morning that global debt levels have climbed $500 billion in the past year to a record $217 trillion (327% of world GDP), just as major central banks prepare to end years of super-cheap credit policies…how can that not be long-term bullish for Gold?…
2. The U.S. economy slowed less sharply in the 1st quarter than initially estimated due to unexpectedly higher consumer spending and a bigger jump in exports…GDP increased at a 1.4% annual rate instead of the 1.2% pace reported last month, the Commerce Department said in its final assessment today…however, it was still the slowest growth rate since the 2nd quarter of last year…since 2000, the U.S. economy has grown at an average 2% rate with last year’s growth of 1.6% the weakest in 5 years…
3. Oil prices are up for a 6th straight session, 25 cents higher at $44.99 after a mildly bullish weekly report from theU.S. Energy Information Administration (EIA) yesterday…production declined 100,000 barrels per day (bpd) to 9.3 million bpd – the biggest decline in weekly output since July 2016…meanwhile, Goldman Sachs has downgraded its forecast for Oil prices over the next quarter amid a sudden uptick in shale drilling and an unexpected surge in production from Libya and Nigeria…the investment bank now points to a 3-month average of $47.50 per barrel for WTI Crude, down from its previous estimate of $55 a barrel…
4. The British Columbia legislature will be a focus of attention later today as the Green Monster – a toxic, far left alliance of NDP and Green Party MLA’s – attempts to usurp power through a non-confidence vote against Premier Christy Clark’s pro-resource Liberal Party that has ruled the province effectively for the past 16 years…Clark’s free enterprise coalition of liberals and conservatives presides over Canada’s fastest growing economy featuring low taxes and budget surpluses…the NDP and Greens vow to hike taxes for the “rich” and corporations, vastly expand the role of government and kill any energy project that isn’t tinged with the right shade of green, including of course the already approved Trans Mountain Pipeline extension…if the NDP and Greens succeed in winning today’s scheduled non-confidence vote, Lieutenant Governor Judith Guichon – a Harper appointee and rancher who resides in the interior of the province and recently completed a 2-year term as President of the B.C. Cattlemen’s Association – will have to decide to either call a new election or let NDP leader John Horgan attempt to form a government and maintain the confidence of the House…the Green Monster does not have a workable majority – 44 seats to 43 for the Liberals, or a 43–43 deadlock in the legislature if it’s an NDP Speaker – and nearly 90% of its members come from Metro Vancouver and Vancouver Island, meaning the resource rich interior and north of B.C. would be grossly under-represented in government…the Liberals won the most number of seats, the popular vote and had the most consistent support through all regions of the province after the May 9 election, but the Green Monster is only interested in a power grab to carry out a radical agenda driven by socialist ideals and climate change fanaticism that would clearly threaten B.C.’s prosperity…the good news is, an NDP-Green government, if it were to materialize, would be so unstable that it would likely blow up within 6 months or less with the socialists then banished to the B.C. wilderness for another generation as occurred on 2 previous occasions…
5.The Venture is down 2 points at 768as of 7:00 am Pacific as it continues to hover around its rising 300-day moving average (SMA)…the TSX has lost 112 points while the Dow is 11 points lower through the first 30 minutes of trading…bank stocks in the U.S. are stronger after the Fed gave 34 banks it reviewed during the second phase of its annual stress test the blessing to unleash buybacks and dividends…
6.Cornerstone Capital (CGP, TSX-V) has drilled 1,030 m grading 1.16% CuEq at its Cascabel Copper-Gold porphyry joint venture project in northern Ecuador…results included 216 m grading 3.08% CuEq (1.29% Cu, 2.84 g/t Au) from a depth of 970 m…mineralization occurs in a strongly veined quartz diorite intrusive phase, believed to represent the causative mineralized porphyry at Alpala…over 39,000 m of drilling have been completed to date along the greater Alpala trend…current drilling is focusing on defining the geometry of the growing deposit which is open in virtually all directions…CGP is up a penny at 46 cents as of 7:00 am Pacific…
7.A 3,000-m diamond drill program is under way at Kootenay Silver’s (KTN, TSX-V) 100%-owned Silver Fox Project, located in southeastern British Columbia…James McDonald, KTN President and CEO, stated, “Kootenay is pleased to have a strong and supportive partner, Antofagasta, conduct this initial drill program at Silver Fox. We look forward to drill testing the first bona-fide sediment hosted Silver-Copper mineralized system to be found on the Proterozoic aged Creston Formation in Canada. This is the product of 3 years of commitment and persistence by our exploration team supported by Antofagasta and we are pleased to successfully bring Silver Fox to the drill stage.”
Gold has traded between $1,248 and $1,255 so far today…as of 11:55 am Pacific, bullion is up $2 an ounce at $1,249…Silver has added 15 cents to $16.78..Copper is flat at $2.65..Nickel is unchanged at $4.19…Crude Oil has rallied 55 cents to $44.79 while the U.S. Dollar Index has tumbled nearly half a point to 96.04…
Copper, Lead and Zinc prices hit near 3-month highs today, boosted by a drop in the dollar, signs of tighter supplies and optimism over Chinese demand…meanwhile, Cobalt has hit another new multi-year high of $26.76…the greenback touched its lowest level against the euro in a year after hawkish comments from the head of the Bank of England fuelled bets on tighter monetary policy in Europe…
Good sign – Frank Holmes has launched a new metals-focused exchange-traded fund, the U.S. Global Go Gold & Precious Metals Miners ETF (also known as GOAU on the NYSE)…it’ll give investors exposure to Gold producers as well as royalty companies…juniors with a market cap of at least $200 million may also be included…Holmes says the model for GOAU has outperformed the GDX 95% of the time…
Crude Oil Update
Oil prices pushed higher today after U.S. government data showed a bigger than expected drop in gasoline inventories and falling weekly Crude output…Crude inventories rose by 118,000 barrels in the week to June 23 as refineries cut output…that compared with analysts’ expectations for a decrease of 2.6 million barrels, though the number was less bearish than a report yesterday from the American Petroleum Institute (API)…meanwhile, gasoline stocks fell by 894,000 barrels, compared with analysts’ expectations in a Reuters’ poll for a 583,000 barrel drop, EIA said…
WTIC has declined for 5 straight weeks but has been showing support, as expected, around $43…the recent intense bearish trend has weakened considerably, so a further rebound in prices is likely on the way…whether that’ll just be temporary remains to be seen…
The Wall Street Journal reported this morning that members of OPEC have held informal talks in recent days about how to halt the recent slide in Oil prices which are currently down more than 15% since late May…
In today’s Morning Musings…
1. Understanding Gold’s current pattern – two highly informative charts…
2. GGI’s bull’s-eye target has got Nickel sulphide experts excited…
3. Big opportunity in the Eskay Heart of Gold Camp’sBig Daddy, Pretium Resources (PVG, TSX)…
4. Daniel’s Den –after Daniel’s trip, the “Indiana Jones” of the junior resource market has much to report starting Friday!…
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
To read the rest of today’s Morning Musings, sign up NOW orlogin as a current subscriber with your username and password.
Check back later this morning for today’s BMR Morning Market Musings.
1.Gold has traded between $1,248 and $1,255 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,249…Silver has added 9 cents to $16.72, base metals are relatively unchanged while Cobalt has hit a new high of $26.76…the U.S. Dollar Index has tumbled one-third of a point to 96.17…
2. Oil prices came under modest renewed pressure this morning after a bearish industry report released ahead of official government data scheduled to come out within the hour…yesterday’sdata from the American Petroleum Institute (API) showed that U.S. Crude inventories rose by 851,000 barrels in the week to June 23, compared with analysts’ expectations for a decrease of 2.6 million barrels…meanwhile, gasoline stocks rose by 1.4 million barrels even though the U.S. summer driving season began a few weeks ago…WTIC dipped as low as $43.67 this morning but have since rebounded to $44.21, down just 3 cents for the day as of 7:00 am Pacific…the Wall Street Journal reported this morning that members of OPEC have held informal talks in recent days about how to halt the recent slide in Oil prices which are currently down more than 15% since late May…
3. Ted Miller, a senior manager at Ford Motor Company, has joined Cobalt 27 Capital’s (KBLT, TSX-V) Advisory Board…Miller is Ford’s senior manager of energy storage and materials strategy and research, and his team is responsible for energy storage strategy, research and development for all Ford hybrid, plug-in hybrid and battery electric vehicles…Miller is also Ford’s representative to the U.S. Advanced Battery Consortium Management Committee…meanwhile, First Cobalt (FCC, TSX-V) remains halted in the wake of its 2 northern Ontario Cobalt Camp takeover proposals which puts Castle Silver Resources (CSR, TSX-V) in the front row in terms of, what’s next in this prolific district?…CSR is up a penny at 26 cents, just a few pennies off its multi-year high…
4.The Venture is down 2 points at 768as of 7:00 am Pacific…the TSX is unchanged while the Dow has shot up 106 points…Aurora Solar Technologies (ACU, TSX-V), a big gainer last week, has bounced back from yesterday’s retreat to 26 cents with news this morning that it has reached an agreement with one of the world’s largest solar panel manufacturers to examine capabilities and applications for the use of the company’s Decima Gemini measurement system and Veritas process visualization system for its bifacial cell technology…
5.Tinka Resources (TK, TSX-V) has intersected more high-grade Zinc at South Ayawilca, including 29.3 m at 10.4 % Zinc, 17 g/t Ag & 278 g/t Indium from 271.4 m depth, confirming the continuity of high-grade Zinc mineralization in 2 separate replacement bodies (mantos) at South Ayawilca over a strike length of at least 300 m…the lower sulphide manto is believed to be continuous over a 1 km strike from South Ayawilca to Central Ayawilca…
6.Klondike Gold (KG, TSX-V) reported this morning that Frank Giustra’s Fiore Financial Corp. purchased another 135,500 shares of thecompany, boosting Giustra’s direct and indirect holdings to 9,641,664 common shares which represents 14.36% of the outstanding shares of KG…last week, KG announced that visible Gold was identified in each of the first 4 drill holes logged in detail at its promising Lone Star target in the Yukon…13 diamond drill holes have intersected the prospective target horizon adjacent to the newly recognized Bonanza fault…drilling is continuing, averaging 1 complete hole per day…
7. Rockhaven Resources (RK, TSX-V) has commenced a 16,000-m diamond drilling program, geophysical surveys, soil geochemical sampling and metallurgical test work at its 100%-owned and road-accessible Klaza Property in the Dawson Range Gold belt of the southern Yukon…diamond drilling will utilize 2 drills and is aimed at further definition and expansion of near-surface mineral resources through infill and step-out drilling at the Klaza and BRX zones, while exploratory drilling will also be carried out to test numerous geophysical and soil geochemical targets located close to the known resource areas…
The most effective cure for the Venture’s10-month consolidation and any “summer doldrums” in the junior exploration market would be a unique and significant drilling discovery somewhere, one that could provide “shock and awe” and rewrite the geological playbook in a particular region.
British Columbia’s prolific Golden Triangleoffers that opportunity.
Not only are Eskay Mining (ESK, TSX-V) and Silver Standard Resources (SSO, TSX) confident they can hit the jackpot at ESK’s SIB Property, an Eskay Creek look-a-like immediately on strike from the world famous mine, but a property less than 10 miles to the west-southwest – the E&L at Nickel Mountain – is rapidly emerging as this summer’s “surprise story” in Canadian exploration as geologists hit the ground there imminently and prepare for drilling. They have a bull’s-eye Nickel-Copper massive sulphide target.
Silver Standard,an original explorer at the E&L half a century ago, still holds an NSR on part of the property now 100%-owned by Garibaldi Resources (GGI, TSX-V). GGI scooped up the E&L and its historic resource on favorable terms near the bottom of the bear market and then quickly consolidated more than 60 sq. km of claims around it.
Dr. Peter Lightfoot
So much has been learned through a major reinterpretation of historic E&L data in addition to sampling and a just-completed VTEM that Dr. Peter Lightfoot – one of the world’s leading Nickel sulphide experts who has written the only textbook on the Sudbury Nickel Camp – says the E&L now has to be considered “in the top quartile of early stage Nickel sulphide prospects in the world.”
That says a lot from an individual who spent 2 decades as chief geologist with Inco and Vale, responsible for exploration programs at Voisey’s Bay, Sudbury and Thompson, and now serves the industry through Lightfoot Geoscience. The E&L will lead to a new exploration model for Nickel sulphide deposits in the Canadian Cordillera if his hypothesis for the project proves correct.
As it stands at the moment, the E&L is the only Nickel-Copper-rich magmatic massive sulphide system in the entire Golden Triangle, and it’s nestled in the heart of a district with phenomenal metal endowment: Eskay Creek produced over 3 million ounces of Gold and nearly 160 million ounces of Silver at grades of approximately 50 g/t Au and 2,400 g/t Ag; the Snip churned out 1 million ounces of Gold at a grade of 27.5 g/t and is currently being explored for new vein systems; Seabridge Gold’s (SEA, TSX) KSM is one of the largest undeveloped resource projects in the world with 39 million ounces of Gold and 10.2 billion pounds of Copper in Proven and Probable reserves; and Pretium Resources (PVG, TSX) just poured its first Gold with planned production of 500,000 ounces per year at an average grade of 16 g/t.
The history of the E&L, and why it was overlooked, is fascinating. The project is also following a classic pattern of how major new discoveries are made in this business when old assumptions are challenged, modern science and technologies are applied, fresh interpretations are made and the “truth machine” is put to work.
In this week’s multi-part investigative series, we’ll cover the full E&L story including the following:
How a very promising near-surface Nickel sulphide drilling discovery in the mid-1960’s got sidetracked by 1970 when geologists decided to drill from underground;
What geologists in the 1960’s didn’t know about the E&L and Nickel suphide deposits that geologists know NOW – and why that’s such a dramatic “game changer”;
How a prolific Nickel sulphide belt in China could be the analogue for Nickel Mountain.
Dr. Lightfoot will discuss a range of topics that will give investors a clear understanding of the E&L’s unparalleled potential in B.C. for a breakthrough Ni-Cu-rich massive sulphide deposit with precious metal and Cobalt values.
Join us tomorrow for Part 2.
Note: John, Jon and Daniel hold share positions in GGI. Jon also holds a share position in ESK.
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Check back during the day for updates and helpful information in the comments section. BMR Morning Market Musings resumes tomorrow.
1.Gold has rebounded today, trading between $1,244 and $1,254…as of 7:00 am Pacific, bullion is up $6 an ounce at $1,250 while Silver is relatively unchanged at $16.60…there’s still some mystery surrounding the Gold trade at the Asian close yesterday when it appears that a large commercial seller the market is now referring to as “fatfinger” hit the bid, perhaps inadvertently?…bullion showed resilience and the strength of its support in the $1,230’s…base metals are firm this morning, led by Nickel with a gain of nearly 2%…Crude Oil has added 35 cents to $43.73 while the U.S. Dollar Index has tumbled two-thirds of a point to 96.76…
2. ECB President Mario Draghi gave a surprisingly hawkish speech this morning which moved markets accordingly as the euro rallied against the greenback, German Bunds sold off and Gold firmed up – a reversal of yesterday’s action…the turnaround in Draghi’s usual dovish talk is significant…speaking at the ECB’s annual policy forum, he highlighted a recovering EU in which “the threat of deflation is gone and reflationary forces are at play”…he was quick to add that if needed again, easy money is at the ready…
3. Certain jurisdictions in Canada should pay attention – the International Monetary Fund is suggesting tax cuts, less regulation and infrastructure spending to boost U.S. growth, recommendations that resemble President Trump’s agenda…in addition, the IMF suggests deficit reduction, educational improvements and improved trade agreements…meanwhile, the U.S. Consumer Confidence Index rose in June to 118.9 despite expectations for a slight drop…
4.The Venture is up 1 point at 773as of 7:00 am Pacific…the TSX is off 10 points while the Dow has dipped 18 points as of 7:00 am Pacific…a major breakout is building in Garibaldi Resources (GGI, TSX-V) on increased confidence of an important new discovery in the heart of northwest British Columbia’s Eskay Camp, 11 miles southwest of the Eskay Creek mine…a large bull’s-eye massive sulphide target has been defined through VTEM immediately adjacent to the known historic Nickel-Copper-rich E&L deposit at Nickel Mountain, as outlined by GGI in an updated E&L Fact Sheet and alluded to in a recent news release…in addition, geologists in the coming days will be ground truthing additional highly promising VTEM conductors up to 6 km away from the known Nickel Mountain deposit, immediately prior to drilling the first modern era holes into the Eskay Camp’s only known magmatic Nickel-Copper-rich massive sulphide system…comparisons are being made to a robust orogenic Nickel sulphide belt featuring strike-slip faults in China…Canadian Zeolite (CNZ, TSX-V) is up 4 pennies to 70 cents after fresh news yesterday…a 2-year study conducted by the University of Saskatchewan in partnership with PotashCorp, Agrium and Mosaic using Canadian Zeolite’s Bromley Creek Zeolite was successful in remediating Potash brine-impacted groundwater…
5.Vendetta Mining (VTT, TSX-V) is pushing higher this morning after releasing an updated mineral resource estimate for its Pegmont Lead-Silver-Zinc Project in Queensland, Australia…the estimate includes the addition of more than 12,700 m of resource development drilling conducted between 2014 and 2016 by Vendetta, a comprehensive re-interpretation of the geology and the results of the recent metallurgical test work…open-pit constrained Inferred mineral resources comprise 6.3 million tonnes at 5.4% Pb, 2.4% Zn while constrained Indicated resources are 2.1 million tonnes at 5.5% Pb, 2.6% Zn…a maiden underground Inferred resource for Zone 5 features 2.8 million tonnes @ 4.1% Pb and 3.9% Zn…the ongoing 2017 resource development program is aimed at further delineating high-grade open-pit material, expanding the underground potential of Zone 5, testing conceptual and advanced exploration targets for new Pb-Zn mineralization, and testing the new Copper-Gold target…21 holes for a total of 4,000 m has been completed…initial results are expected by mid-July…
6.Blind Creek Resources (BCK, TSX-V) has commissioned TerraLogic Exploration of Cranbrook, B.C., to oversee Phase I field exploration work at the company’s 100%-owned Blende Zinc-Lead-Silver project in north-central Yukon…Blind Creek is positioning to conduct a 2-phase, 2017 exploration program at Blende beginning next month that will entail geological mapping, sampling, and an initial 2,000 m diamond drill program to test deposit extensions and obtain representative mineralized material for additional metallurgical studies…results from Phase I exploration will provide basis for Phase II resource estimation and Zinc-Lead-Silver recovery projections, to be detailed in a NI-43–101 technical report later this year…
7. Atlantic Gold (AGB, TSX) has intersected impressive high-grade Gold in final results from resource definition drilling on 25 m x 20 m centers at its Fifteen Mile Stream and Cochrane properties…highlights from separate holes at Fifteen Mile Stream include 54 m @ 88 g/t Au from 91 m (incl. 1 m @ 3,180 g/t and 1 m @ 1,490 g/t), 9 m @ 24.6 g/t Au from 61 m (incl. 1 m @ 172.5 g/t, 15 m @ 13.5 g/t Au, 18 m @ 9.7 g/t Au and 25 m @ 9.8 g/t Au…Cochrane Hill results included 5 m @ 51 g/t Au from 93 m (incl. 1 m @ 241 g/t), 31 M @ 4.2 g/t Au, and 6 m @ 14.1 g/t Au…at Fifteen Mile Stream, assay results through the core of the anticline in the Egerton MacLean zone continue to return notable intersections in terms of grade, width and relatively shallow depth…across a 350 m strike length, almost forty 1-m samples recorded assays in excess of 20g/t, the bulk of these being included in longer mineralized intervals (ie. not isolated)…of these, 6 are in excess of 100 g/t and 2 in excess of 1000 g/t.
