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June 9, 2017

BMR Morning Market Musings…

Gold has traded between $1,263 and $1,277 so far today…as of 11:55 am Pacific, bullion is off $8 an ounce at $1,270…strong new support around $1,260…Silver has retreated 22 cents to $17.18…base metals are doing well again today…Copper is up 3 more cents at $2.62…Nickel has added 8 cents to $4.06 while Zinc leads the way at $1.14 with a gain of more than 2%…Cobalt has matched its early 2017 high at $25.63…Crude Oil is up slightly at $45.19 while the U.S. Dollar Index is flat at 97.28…

Copper prices have rallied to close out the week after severe weather hit some mines in South America and labor issues recurred in Indonesia…snow and strong winds in northern Chile’s Atacama Desert this week reduced output at BHP Billiton’s Escondida mine, Codelco’s Chuquicamata operation, and Antofagasta PLC’s Zaldivar Project, among others…those mine disruptions in Chile were the major supply-side news this week…

Meanwhile, fresh Chinese import data showed an 8.5% month-on-month increase in refined Copper imports which has also helped prices to rebound…

May’s Misfortune

There is new political uncertainty in Great Britain following yesterday’s general elections…Conservative Prime Minister Theresa May still won the most number of seats but unexpectedly lost her majority as the Labour Party under far-left socialist Jeremy Corbyn significantly increased its presence in Parliament…May’s call for an early vote backfired, and this morning she announced she would form an alliance with Northern Ireland’s Democratic Unionist Party (DUP)…the DUP are pro-union (not Europe but UK), pro-Brexit and socially conservative…they won 10 seats…combined with the Conservatives, this would give May a bare majority less than 2 weeks ahead of complex talks on Britain’s exit from the EU…

Markets Undercut Media Narrative

Yesterday’s other big losers, in addition to the British PM, were much of the mainstream media and J. “Edgar” Comey whose testimony before the Senate Intelligence Committee seriously damaged any case against President Trump in the Russia probe as evidenced by Gold’s behavior and the Dow pushing to a new all-time high during Comey’s questioning (the Dow went higher again this morning)…significantly, the only thing that was NOT leaked by the “Deep State” during recent months is the fact, confirmed by Comey yesterday, that Trump was never under investigation by the FBI…”obstruction of justice” claims against Trump will go nowhere, according to many legal experts, and Comey also revealed under questioning that shortly after his firing he leaked notes from a confidential meeting with the President to the New York Times in order to prompt the appointment of a special counsel…that leak, including the precise timing of it, is now under scrutiny and it raises many questions about Comey…the markets made it clear yesterday, and again today, that the predominantly left-wing media has been way off base in its witch hunt against Trump with an agenda of defamation, distraction and deception…real, objective journalism in America is dead…

Crude Oil Update

Baker Hughes reported this morning that 8 more rigs came online in the U.S. this week, marking a record 21 straight weeks of increases…

Meanwhile, Asian markets remain oversupplied with traders putting excess Crude into floating storage, an indicator of a glut…Thomson Reuters Eikon shipping figures show at least 25 supertankers sitting in the Strait of Malacca and the Singapore Strait, holding unsold fuel…those are similar amounts to May and April, indicating that even in Asia, with its strong demand growth, traders are struggling to clear inventories…

Nearest key support for Crude Oil is $43 as you can see in John’s 15-month weekly chart…$43 is a price the Saudis will have to vigorously defend in order to avoid a further sell-off…WTIC’s technicals could turn quite bullish again over the summer but only if the price is able to push through new resistance around $50 a barrel…

Cobalt (And Silver) Country – Northern Ontario

We have some great coverage lined up for next week from our recent trip to northern Ontario’s prolific Cobalt-Silver Camp…several quality juniors are active on the ground right now, including Castle Silver Resources (CSR, TSX-V), Cobalt Power Group (CPO, TSX-V) and First Cobalt (FCC, TSX-V) and it will be interesting to see initial results from these companies…

One of the most important individuals in this district is lifelong Cobalt resident Gino Chitaroni, President of PolyMet Labs who’s truly the “Cobalt King” in this area – he knows everything about the region and of course is also extremely knowledgeable about the Cobalt market…

He’ll be sharing some important insights with BMR readers starting Monday as our coverage of this fascinating district continues…

Gino Chitaroni is all smiles as nearly decade high prices in Cobalt have sparked the biggest rush in 30 years in the northern Ontario Silver-Cobalt Camp.

In today’s Morning Musings…

1. Nearly 20 million tonne Zn-Pb-Ag resource for $6 million…

2. Cobalt Power (CPO, TSX-V) starts to flex its muscles again…

3. Daniel’s Den – an ocean under the Sahara, and a beautiful Castle on a hill…

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 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 between $1,263 and $1,277 so far today…as of 7:00 am Pacific, bullion is down $12 an ounce at $1,266 while Silver is off 21 cents at $17.20 after so-called “Super Thursday” (British elections, ECB and former FBI Director Comey who disappointed much of the mainstream media with no “smoking gun”)…macroeconomic forces justify the strength in Gold since mid-May, according to an analysis just out from UBS which highlighted a “weaker dollar” and “broader uncertainty” as key factors in providing a good foundation for the market to continue its journey higher.  “We’ve argued Gold’s role as a diversifier in investor portfolios, and this is becoming increasingly relevant in the current environment. Despite the rally from the lows printed in May, we think Gold positioning is not crowded overall and there should be room for the move to extend. While a pause is understandable around key resistance levels and ahead of key events in the near term, the market should stay supported overall and would view dips as an opportunity to build/add to positions.”  Gold has solid support in the low $1,260’s and should respond well following a U.S. rate hike next week…

2. Crude Oil prices are up slightly as of 7:00 am Pacific but are nonetheless down sharply for the week after U.S. data showed a surprise 3.3 million barrel build in commercial Crude Oil stocks to 513.2 million…inventories of refined products were also up, despite the start of the peak demand summer season, and remain above their 5-year range…markets will want to see a pick-up in U.S. demand for gasoline and distillate fuels…Asian markets also appear oversupplied, with traders putting excess Crude into floating storage, an indicator of a glut…the Saudis have their work cut out for them to get prices back above their “comfort zone” in the $50+ range…we’ll have an updated Crude Oil chart in today’s Morning Musings…

3. In British Columbia, Christy Clark was officially sworn in yesterday as Premier of B.C., following last month’s elections, as she leads the province’s first minority government in 65 years…she has recalled the legislature for June 22, daring the Green Monster coalition of NDP’ers and Greens to attempt to usurp power in a move that would have significant consequences for the province’s resource sector…the Green Monster’s first targets to “kill” are the Kinder Morgan pipeline expansion into Burnaby and the Site C Dam Project in the north…

4. Mexico’s tax agency is holding over $360 million (U.S.) in tax rebates owed to 6 Canadian miners, including $230 million to Goldcorp, according to sources and official documents seen by Reuters…the move escalates the situation into a showdown between the Mexican government and multiple mining firms operating there…in a string of meetings, Canadian officials have pressed Mexico to fix the problem, which hamstrings mining companies’ ability to invest in operations and is particularly difficult for smaller, cash-strapped miners and explorers…Goldcorp declined to comment on its outstanding refund, which represents 142% of its 2016 net profit and 6% of its full-year revenue…

5. The Venture is off 1 point at 790 as it heads for a 2nd straight weekly loss thanks largely to the pullback in Crude Oil…action is slow in early trading…much more in the days ahead from our trip to the northern Ontario Cobalt-Silver Camp…new record highs in U.S. markets which shows how out of touch much of the mainstream media is with its sensationalism surrounding the Trump Presidency…the Volatility Index (VIX), considered the best gauge of fear in the market, dropped this morning to 9.37, its lowest since December 27, 1993…

6. Bonterra Resources (BTR, TSX-V) announced this morning that it’s raising $12.9 million in a bought deal private placement to further explore and develop its Gladiator Gold Project in Quebec’s hot Urban-Barry Greenstone Belt…the offering will consist of a combination of 11.9 flow-through shares of the company at a price of 84 cents per share, and 5.8 million non-flow-through shares at a price of 50 cents per share…the financing is expected to close by the end of June…no warrants with this PP…BTR is up a penny at 49 cents as of 7:00 am Pacific…

7. RJK Explorations (RJX.A, TSX-V) came within a penny-and-a-half of its 2017 high yesterday as more drill results from the company’s Maude Lake Gold Property in northern Ontario are due shortly…RJK has completed some deeper holes at the historical resource, so some impressive high-grade numbers are within the realm of possibility…no matter what the results are, downside risk appears minimal given the current $4 million market cap (company has $1 million coming from New Gold later this month) while drilling at Maude continues as the company is testing a sizeable geophysical anomaly discovered by Earth Science Services Corp. (ESSCO) near a splay fault north of the historic deposit…in this district, deep holes can be effective in generating both market excitement and breakthrough results…RJK is up 2 pennies at 22 cents as of 7:00 am Pacific…

The most popular recent BMR articles…

Video special:  CSR Leads Canadian Cobalt Charge 

All You Need To Know About Gold’s Direction

Developments in Cobalt Country

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

June 8, 2017

7 @ 7:00

Check the BMR comments section throughout the day for updates and helpful information. Morning Musings returns tomorrow.

1. Gold has traded between $1,271 and $1,290 so far today in advance of UK election results…meanwhile, the ECB has left its key interest rates unchanged while also removing a reference to the possibility that it might lower interest rates, suggesting some confidence in the euro zone’s economic recovery.  “The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” the central bank said…at its last meeting, the ECB left the door open for lowering rates…the euro is flat in the wake of the ECB announcement while the greenback is up slightly…as of 7:00 am Pacific, Gold has retreated $13 an ounce to $1,274…Silver has slipped 26 cents to $17.30 while Copper and Zinc are leading base metals modestly higher…Crude Oil is flat at $45.76…

2.  Global Gold ETFs posted inflows of 14.6 tonnes yesterday, the most in 11 months, a massive increase in demand that reflects a surge in safe-haven buying of the metal…almost 10 tonnes were attributable to the SPDR Gold Trust. “Clearly investors are seeking to hedge against the numerous risks,” Commerzbank noted…these risks include not only the U.K. election and a congressional hearing involving former FBI Director James Comey, but also events in the Middle East after 2 terrorist attacks in the Iranian capital of Teheran yesterday. “Although ISIS was probably behind the attacks, Iran is also holding Saudi Arabia partly responsible,” Commerzbank says. “There is thus the risk of tensions escalating further between Saudi Arabia and Iran – the two leading powers in the region – in addition to the latent crisis surrounding the Gulf emirate of Qatar.”

3. Tinka Resources (TK, TSX-V) has drilled one of the best intersections to date at its 100%-owned Ayawilca Zinc Project in central Peru…all 5 holes released this morning are from the South Ayawilca area…hole A17–063 returned 47.7 m grading 11.3% Zinc and also featured high Indium credits…this hole was collared about 200 m northeast of South Ayawilca discovery hole A17–056 which intersected 2 high-grade Zinc sulphide zones including 17.9 m at 11.6 % Zn and 51.9 m at 10.1% Zn…drill results reported so far in 2017 have defined high-grade Zinc mineralization at South Ayawilca over a northeast-southwest strike length of 370 m, connecting the South Ayawilca discovery area to the Central Ayawilca Zinc resource…this could add an additional 500 m of mineralization along strike extension to Tinka’s existing resources…TK is up a nickel at 64 cents as of 7:00 am Pacific…

4. On the subject of Zinc, Blind Creek Resources (BCK, TSX-V) has hit a new multi-year this week as it pursues fresh exploration at one of Western Canada’s largest undeveloped Zinc-Lead-Silver deposits in the central Yukon with robust exploration upside…meanwhile, the company recently acquired the fully permitted Engineer Gold mine in northern B.C. where it’s pursuing small-scale but exceptionally high-grade production (Inferred resource at 1.75 oz/ton using a 25 g/t cut-off)…a large land package strategically assembled around that deposit by BCK features a “Porgera style” epithermal system with 25 known veins and 2 major shear structures, providing plenty of exploration upside…proceeds from a $2 million recently announced financing will go toward summer programs at both properties…BCK, with just 20 million shares currently outstanding, is off 2 pennies cents at 30 cents as of 7:00 am Pacific after reaching a new multi-year high of 38 cents Tuesday…

5. The Venture is off 2 points to 791 as of 7:00 am Pacific as weakness in Crude Oil the past few days has put some downward pressure on the Index…powerful support extends from the rising 300-day moving average (SMA) around 770 into the low 780’s…the TSX and Dow are both up slightly through the first 30 minutes of trading…Arizona Mining (AZ, TSX) has appointed 2 high profile individuals to the company’s board of directors – former Speaker of the House John Boehner and investment banker William Mulrow…Chairman Richard Warke stated, “The addition of these distinguished directors to our Board will greatly enhance our profile in U.S. markets and emphasizes the importance of Hermosa-Taylor as a top tier Zinc-Lead-Silver project with an exciting future.”

6. Step-out drilling by IDM Mining (IDM, TSX-V) at its Red Mountain Project near Stewart has returned encouraging assays from 2 exploration holes north of current resources, which could help extend the potential mine life of the deposit…drill hole U17–1248 returned 7.5 m grading 4.9 g/t Au and 23.4 g/t Ag 250 m along strike from current resources in the “SF” zone…meanwhile, in the same zone, drill hole U17–1247 intersected 7.3 g/t Au and 5.2 g/t Ag over 5.4 m approximately 125 m along strike from current resources…

7. Nighthawk Gold (NHK, TSX) is off slightly in early trading after releasing initial drill results from 8 holes (2,658 m) at its Colomac Gold Project in the Northwest Territories…drilling focused on 2 zones along the Colomac sill, Zone 1.5, and Zone 2.0…all holes returned broad intercepts of mineralization highlighted by Zone 1.5 intersections where C17–04B cut 50.3 m @ 2.6 g/t Au, including 23.7 m of 4.8 g/t…drilling continues to support the zone’s consistency and continuity of mineralization, and true widths up to 50 m, that characterize its high-grade nature…Zone 1.5 maintains a steep to sub vertical plunge to the north and has now been traced to a vertical depth of 300 m and remains open…the 2017 drill program is targeting 25,000 m of drilling with 3 drills now active, focused on further expanding the high-grade Gold mineralization at Zone 1.5 down plunge and to the north, which was delineated late last year…

The most popular recent BMR articles…

Video special:  CSR Leads Canadian Cobalt Charge 

All You Need To Know About Gold’s Direction

Developments in Cobalt Country

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

June 7, 2017

BMR Morning Market Musings From Cobalt, Ontario…

Gold has traded between $1,286 and $1,295 so far today…as of 11:00 am Pacific, bullion is off $6 an ounce at $1,288…any dips will be met with strong buying support due to technical momentum and geopolitical concerns…Silver is off 11 cents at $17.57…Copper is flat at $2.55…Nickel has slipped 2 pennies to $3.97…Crude Oil is getting hit hard, down more than $2 a barrel to $45.91 thanks to an unexpected rise in U.S. inventories…the Dollar Index is unchanged at 96.61…

An even weaker U.S. dollar during the 2nd half of the year could be one of the key triggers that confirms a bullish prediction by metals’ analyst Mike McGlone of Bloomberg Intelligence, based on unusually low volatility readings at the moment…

“With 60-day index volatility at 10% – the lowest since the 10-year bottom in 2014 at 9% – the stage could be set for the next breakout move in metals,” noted McGlone, Bloomberg Intelligence commodity analyst, in a report yesterday…

“A ho-hum May is pressuring volatility on the Bloomberg All Metals subindex to its lowest level in 3 years, just prior to the big dollar rally and metals collapse in 2014. Metals peaked as the dollar bottomed in 2011. They appear poised to continue to retrace that selloff, notably if the dollar has peaked.”

Yes, the greenback has peaked as we’ve shown in multiple charts though stubborn dollar bulls have not yet thrown in the towel – they will later this year in what is going to be one of 2017‘s Big Investment Themes…

Gold, stocks and bonds have all moved higher the last 3 months…using hedge fund quant tool Kensho, CNBC found 15 occasions during the last 20 years when stocks, bonds and Gold all advanced in a similar fashion over 3-month periods…during the next 3 months, the S&P 500 posted an average increase of 3%, moving into positive territory on 73% of the occasions, while Gold kept moving higher, too…bonds, however, declined, causing yields to back up slightly…

Seabridge Plunges Into Nevada “Snowstorm”

Interesting news from Seabridge Gold (SEA, TSX) this morning as the company has completed the acquisition of a 100% interest in the Snowstorm Project from PFR Gold Holdings LP (PFR)…Snowstorm consists of 31 sq. miles of landholdings strategically located at the projected intersection of 3 of the most important Gold trends in northern Nevada: Carlin trend, Getchell trend and Northern Nevada rift zone…

Seabridge completed the acquisition by purchasing all of the outstanding shares of the private company that owns a 100% interest in the Snowstorm Project in exchange for issuing PFR 700,000 Seabridge common shares ($~10 million) plus 500,000 common share purchase warrants exercisable for 4 years at $15.65 per share…in addition, Seabridge has agreed to pay PFR (i) a conditional cash payment of $2.5 million (U.S.) if exploration activities at Snowstorm result in defining a minimum of 5 million ounces of Gold resources compliant with National Instrument 43–101; and (ii) a further cash payment of $5 million (U.S.) on the delineation of an additional 5 million ounces of Gold resources…

Snowstorm consists of 700 mining claims and 5,800 acres of fee lands carefully assembled in a private company over a 15-year period and explored over the past decade…Seabridge has staked an additional 260 claims totalling 5,200 acres that are contiguous to the claims purchased from PFR…

Rudi Fronk, Seabridge Chairman and CEO, stated:  “For some time now, we have been looking for a large-scale asset in Nevada which remains one of the world’s best environments for finding large Gold deposits. The Snowstorm acquisition accomplishes this objective. This project has all the earmarks of an outstanding exploration play and we appreciate the opportunity to capitalize on its exceptional potential.”

Confidence In U.S. Economy Continues To Improve

U.S. corporate executives’ confidence has hit a 3-year high according to a just-released survey…the latest Business Roundtable CEO Economic Outlook Index has hit its highest level since the 2nd quarter of 2014 as belief grows that the pro-growth policies of the Trump administration will yield long-term benefits…that came even though the executives see GDP growth of just 2% in 2017, down from the 2.2% pace in March.  “The survey results reflect confidence from America’s leading employers in the prospects for tax reform, as well as the tangible economic benefits that tax reform will produce,” said Business Roundtable Chairman Jamie Dimon in a statement.  “CEOs are also responding to the administration’s commitment to creating a more favorable regulatory environment, protecting the safety and health of our citizens while also protecting jobs,” added Dimon, CEO of JPMorgan Chase, the largest bank by assets in the U.S.

The discombobulated Clinton News Network, meanwhile, still very bitter over its stunning election loss last November, pays scant attention to the economy, the stock market, radical Islamic terrorism and agenda-driven illegal leaks within the government bureaucracy while it continues to focus on peddling a false narrative around Russia, the election and the Trump administration as if the average American worker in Ohio, Pennsylvania, Wisconsin or Florida really cares…it’s just simply bizarre how these new liberal McCarthyites are exploring every imaginable “tie” to Russia (except the Clintons’ ties, of course)…

Venture Seasonality Chart

At first glance, this may not appear to be a positive chart as the Venture going back nearly 20 years shows a negative return in every month from April through November with June being the worst of all – an average decline of 1.9%…gains have occurred in June only one-third of the time…

When broken down into bull market and bear market years, however, the June to September period features some spectacular gains…keep in mind, also, that the chance of positive returns during August, September and October doubles from May and June…

Cobalt (And Silver) Country – Northern Ontario

One of the most remarkable individuals in Cobalt, Ontario, is lifelong resident Gino Chitaroni, President of PolyMet Labs who’s truly the “Cobalt King” – he knows everything about the Greater Cobalt Camp and of course is also extremely knowledgeable about the metal itself…

He’ll be sharing his fascinating insights with BMR readers in the coming days as our coverage of this district continues…

Gino Chitaroni predicts a move in Cobalt to least the $40 level.

In today’s Morning Musings…

1. Two low market cap Gold juniors that must be on your radar screen!…

2. Jaxon Minerals (JAX, TSX-V) starts ground program at Hazelton Property…

3. The coming surge in the TSX Gold Index…

4. Daniel’s Den – Southwest Newfoundland update (3 stocks)…

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 Musings, sign up NOW or login as a current subscriber with your username and password.

7 @ 7:00 From Cobalt, Ontario

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

1. Gold has traded between $1,287 and $1,294 so far today, immediately ahead of tomorrow’s important elections in Britain as Prime Minister Theresa May attempts to increase a Conservative majority against far left Labor candidate Jeremy Corbyn…the ECB also meets tomorrow for a “Super Thursday” that also includes Senate testimony from fired FBI Director James Comey…fueled by technical momentum, geopolitical developments, and the possibility of a less aggressive Fed after a near-certain rate hike next week, Gold surged to a 7-week high yesterday as it closed in on key near-term resistance around $1,300…the U.S. Dollar Index tried to rally this morning but has fallen back to even at 96.62 and remains vulnerable to fresh weakness in the days ahead…Gold is down $2 an ounce at $1,292 as of 7:00 am Pacific…Silver is unchanged at $17.68 as it continues to grapple with resistance at its 200-day moving average (SMA)…in the wake of last weekend’s Islamist terror attacks in Britain, ISIS has claimed responsibility for a pair of terrorist attacks today in Tehran in which suicide bombers and teams of gunmen stormed Iran’s parliament and the nearby shrine of Ayatollah Ruhollah Khomeini, killing at least 12 and injuring dozens of others…this is the first attack orchestrated by ISIS in the Islamic Republic…

2. A campaign by leading Arab powers to isolate Qatar is disrupting trade in commodities from Crude Oil to metals and food, and deepening fears of a possible shock to the global gas market where the tiny Gulf state is a major player…just a day after Saudi Arabia and 3 Arab allies severed transport links with Qatar over a diplomatic row, bans on Doha’s fleet using regional ports and anchorages threatened to halt some of its exports and disrupt those of liquefied Natural Gas (LNG)…meanwhile, CNN, a network that knows all about fake news, reported last night that U.S. investigators believe Russian hackers breached Qatar’s state news agency and planted a fake news report that contributed to the crisis among America’s closest Gulf allies…

3. The U.S. Department of Energy yesterday signaled it’s now more confident that U.S. Oil production will rise to 10 million barrels a day next year, the highest average annual level on the books…the department’s Energy Information Administration forecast output would surge to the historic level in 2018 after last month projecting the country would produce just shy of 10 million barrels a day next year…the previous record average was 9.6 million barrels a day in 1970.  “Increased drilling activity in U.S. tight Oil basins, especially those located in Texas, is the main contributor to oil production growth, as the total number of active rigs drilling for oil in the United States has more than doubled over the past 12 months,” EIA acting Administrator Howard Gruenspecht said in a statement…meanwhile, WTI prices have plunged below $47 a barrel on a surprise 3.3 million rise in U.S. Crude inventories, reported just moments ago…

4. The Venture is off 2 points to 799 as of 7:00 am Pacific…PyroGenesis Canada (PYR, TSX-V), which has confirmed a breakout above key resistance at 80 cents, announced this morning that it has signed its second contract for an order of Titanium powder (Ti-6Al-4V) from an undisclosed U.S.-based end-user…this is the second order placed during the ramp-up phase of the company’s powder production system and exceeds the original expectations for powder sales during this phase…PyroGenesis’s system uses plasma atomization to make small, uniform, fully dense and spherical metal powders that flow like water, and which are highly sought after in the additive manufacturing industry…Cartier Resources (ECR, TSX-V), aggressively drilling in northwest Quebec, has hit a new multi-year high of 38 cents in early trading…GT Gold (GTT, TSX-V), which commences a major program at its promising Saddle Gold target near Red Chris in just over a week, is up 2 pennies at 40 cents…the TSX is 30 points higher while the Dow has added 42 points through the first half hour of trading…

5. Jaxon Minerals‘ (JAX, TSX-V) crews have commenced the first phase of the 2017 field season at the company’s 100%-owned, 280 sq. km Hazelton Property in central British Columbia…geologists will attempt to establish the continuity and extent of previously identified high-grade, stratified massive sulphide beds historically mapped over an area of roughly 1 sq. km…Jaxon has compiled a comprehensive model of mineralization at surface at the Max Zone which will augment the final interpretation of a 464 line-km VTEM magnetics and resistivity survey due mid-June…this survey is expected to be later followed by a ground-based gradient IP survey to test depth of mineralization and enhance drill hole targeting…the strata-bound VMS mineralization at Max has never been comprehensively sampled, and the true extent of high-grade mineralization has remained unknown…historical trenches at Max were excavated on a steeply-sloping hillside, exposing massive sulphides and associated alteration within a volcano-sedimentary package, over a lateral extent of 700 m and a vertical extent of 200 m…JAX is up 2 pennies at 29.5 cents as of 7:00 am Pacific…we’ll have an updated chart in today’s Morning Musings…

6. First Cobalt (FCC, TSX-V) announced this morning that it has acquired 22 mining claims in Cobalt, Ontario, including the former producing Bellellen mine…the transaction increases First Cobalt’s footprint in the district by 40% and establishes a presence for the company in the Cobalt part of the Camp in addition to its substantial land package to the south…Bellellen is adjacent to First Cobalt’s Keeley-Frontier mine and exploration this summer will test for continuity between the 2 mines…significantly, First Cobalt is evaluating the opportunity to use modern bulk mining techniques in this district…the Keeley and Frontier mines were originally developed and operated as separate underground mines before being integrated in 1961…from 1908 to 1965, the Keeley-Frontier mine produced a total of over 3.3 million pounds of Cobalt at a recovered grade of 0.5% and 19.1 million ounces of Silver at a recovered grade of 58 ounces per ton…most of the production occurred between 1922 and 1931…the company acquired a 100-per-cent option over the property in March of this year…

7.  To the northwest of First Cobalt at Gowganda, Castle Silver Resources (CSR, TSX-V) is carrying out underground bulk sampling at its 100%-owned Castle Silver-Cobalt mine with drilling to commence shortly…mineralized material featuring visible Cobalt is being sourced from the mine’s 70-foot level to put through CSR’s proprietary Re-2OX process to produce value added, high purity Cobalt products (powders) for battery sector end user evaluation…we’ll have more on CSR and the entire district, including a fascinating video interview with life-long Cobalt resident Gino Chitaroni, the President of PolyMet Labs and a very active player in the Greater Cobalt Camp…

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June 6, 2017

All You Need To Know About Gold’s Direction

The current bull market in Gold began at the beginning of 2016, and the correction late last year was merely a “head fake” but it fooled many analysts and investors.

Powerful moves usually occur when few are expecting them which is one reason we’ve been calling for a BIG move in Gold before 2017 is over.  The set-up for the 2nd half of the year is particularly intriguing given the continued technical deterioration of the U.S. dollar – a bear market in the greenback does appear to be underway, yet most market participants either haven’t recognized this yet or simply don’t want to admit it.

Meanwhile, a quick scan of events around our chaotic world certainly leads one to the conclusion that owning Gold and Gold stocks right now is a wise choice.

John, who is clearly one of the top Gold chartists in the business given his amazingly accurate calls over the last number of years including the recent $1,215 low, gives us a unique perspective on the “Big Picture” in bullion with a 47-year monthly chart.

For some strange reason, as you can see below, Gold has a habit of forming major lows approximately every 8 years – so the metal is now working its way higher again and who knows where it will stop.

From the 5 previous major lows to highs beginning in the late 1970’s, the percentage moves have been as follows:

739%, 79%, 29%, 309% and 182%.  The average for just the last 4 of those moves (taking away the 743% surge) is 150%, which means it’s reasonable to argue that Gold could double from current levels to about $2,600 an ounce during this cycle over the next several years.

Significantly, in terms of what’s happening NOW, the RSI(14), CMF and ADX indicators on this monthly chart are consistent with the thesis that Gold’s uptrend is gaining strength and any surprises during the 2nd half of 2017 will be to the upside.

In Monday’s Morning Musings, we looked at 3 attractive producers and 1 speculative junior under 30 cents and they were all strong performers today as Gold pulled within shouting distance of $1,300.

We’ll follow-up with more on Gold and Gold stocks tomorrow in 7 @ 7:00 and Morning Musings.

7 @ 7:00 From Cobalt, Ontario

Check BMR during the day for possible additional postings and visit our comments section for updates and valuable tips. Morning Musings returns tomorrow.

1. Many analysts still don’t believe Gold’s move this year is for real which raises the possibility of some major scrambling and a potential short squeeze…Gold has hit a 7-week high today, fueled by technical momentum, geopolitical developments, and the possibility of a less aggressive Fed after a near-certain rate hike next week…the U.S. Dollar Index, meanwhile, continues to look dreadfully weak going into the 2nd half of 2017…it’s off one-fifth of a point at 96.59 as of 7:00 am Pacific…Reuters reported this morning that ECB policymakers are set to take a more benign view of the economy when they meet tomorrow and will even discuss dropping some of their pledges to ramp up stimulus…the outcome of tomorrow’s meeting could put additional pressure on the greenback…Gold is up $14 an ounce at $1,293 as of 7:00 am Pacific…it has traded as high as $1,295 today with key technical and psychological resistance at $1,300…Silver is up 14 cents at $17.66 as it tries to overcome resistance at its 200-day moving average (SMA)…

2. Bitcoin has surged to another new record high, eclipsing the $2,900 level for the first time this morning…the digital currency hit a high of $2,968 (U.S.) and is currently trading at $2,953, up 8% for the day…the cryptocurrency has enjoyed a stellar year, rising nearly 200%, easily outperforming stock market benchmarks like the S&P 500 and the NASDAQ in 2017…entering today’s session, the S&P and NASDAQ had risen 8.8% and 16.9% for the year, respectively…

3. The Venture has gained 3 points to 800 as of 7:00 am Pacific…the TSX is up very slightly while the Dow is off 32 points through the first 30 minutes of trading…Quantum Numbers (QNC, TSX-V) is one of the early volume leaders on the Venture, up 1.5 cents at 16 cents after bouncing off support at 14 cents…the company announced this morning that it has appointed Ted Colivas as director and Executive Chairman…Granada Gold (GGM, TSX-V) is showing signs of breaking out now that Secutor Capital appears to have exhausted its supply of flow-through paper from last fall’s financing while GGM is also now armed with updated NI-43–101 resource and Block Model estimates for its multi-million ounce deposit near Rouyn-Noranda…in addition, Gold in Canadian dollars is surging through $1,750…the TSX Gold Index has jumped nearly 5 points this morning to 213, putting it slightly above its 200-day SMA which has served as key resistance this year… 

4.  The onslaught of high-grade drill results from the continuing 130,000-m Phase 2 drilling program at Barkerville Gold’s (BGM, TSX-V) Cariboo Gold Project continues with 4 drill rigs revealing the richness of the Valley Zone…highlights from this morning’s news include 25.2 g/t Au over 2 m; 12.6 g/t Au over 5.5 m; 10.9 g/t Au over 7.85 m (hole #23); 12.4 g/t Au over 7.2 m (hole #23); 5.2 g/t Au over 19.55 m (hole #23); and 7.2 g/t Au over 9 m…deeper drilling at the Valley Zone, which has not been explored circa 1960, has again yielded new, previously unidentified veining corridors with drill hole #23 (CM-17–023) intersecting 3 separate veining occurrences at respective depths of 270 m, 310 m and 375 m vertically below surface…

5. Extraction has started at Castle Silver Resources’ (CSR, TSX-V) Castle mine in northern Ontario’s prolific Cobalt-Silver belt as confirmed by the company in a news release this morning…CSR is the only company with critical underground access in the district, and the game plan is to source mineralized material that is converted into value added, client-specific high purity Cobalt products (powders) through the company’s proprietary Re-2OX process for near-term battery sector end user evaluation…meanwhile, historic Silver values on the mine’s first level at 70 feet are as high as a staggering 1,750 oz/ton…underground drilling is slated to begin shortly to target high-grade Cobalt-Silver vein structures…meanwhile, CSR reports that a promising first stage of Re-2OX test work on a mixed sample of consumer electronic lithium-ion batteries has been completed by SGS Lakefield with results pending…Re-2OX achieves recovery through stripping the casing, leaching the cathode of the batteries, and forming a high purity precipitate containing the valuable metals…

6. Continued resource development drilling at Bonterra Resources’ (BTR, TSX-V) Gladiator Project in Quebec, near Osisko Mining’s (OSK, TSX) Windfall deposit, has uncovered an additional parallel Gold zone to the south and west of the main deposit…the new zone lies within the Rivage Gap and has been intersected by 4 drill holes so far, including BA-17-12 reported this morning (the most westerly hole) which returned 3 m of 8.8 g/t…BTR is well-financed with over $20 million recently raised…the Gladiator deposit has a strike length of 1.2 km and mineralization has been outlined to a depth of 800 m…BTR is up a penny at 50 cents through the first 30 minutes of trading…

7. Probe Metals (PRB, TSX-V) released fresh assays this morning from its Val d’Or East Project in northwest Quebec…Probe has outlined include 2 new shallow discoveries of 7.4 g/t Au over 12.4 m and 7.8 g/t Au over 2.5 m, located 1,200 m and 600 m south of the former Beliveau mine, respectively…these are the farthest stepouts from the New Beliveau deposit to date…the intervals are also associated with new geophysical targets generated along the interpreted mineralized trend and suggest the potential for a much more extensive Gold mineralized system than previously thought…in addition to the new zones, drilling has also intersected numerous high-grade intervals within the New Beliveau deposit, including 12.3 g/t Au over 8.9 m, as well as thick, near-surface Gold intervals…PRB is up 8 cents at $1.45 as of 7:00 am Pacific...

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June 5, 2017

BMR Morning Market Musings From Cobalt, Ontario…

Gold has traded within a narrow range between $1,278 and $1,284 so far today…as of 11:00 am Pacific, bullion is up $2 an ounce at $1,280 as technical momentum and geopolitical concerns are keeping bids firm…Silver is up slightly at $17.55…Copper is flat at $2.55…Nickel has retreated 2 pennies to $4.00…Crude Oil is 30 cents lower at $47.35 a barrel while the U.S. Dollar Index is relatively unchanged at 96.77…

In the wake of yet another terrorist attack in her country, one that also killed a Canadian, British Prime Minister Theresa May validated President Trump’s deep concerns regarding radical Islamist terrorism when she claimed over the weekend that there’s “too much tolerance” of Islamist extremism in the UK…with just days before British voters go to the polls, May has vowed a clampdown on radical Islam:  “We cannot and must not pretend that things can continue as they are.  Enough is enough,” she declared…

Momentum is building in the Gold market as hedge funds and money managers continue to add to their bullish positioning, driving the price closer to the key technical and psychological $1,300 level…net longs increased for the 2nd consecutive week, but what’s even more significant is that Gold positioning is still hovering around its 5-year average…that means there’s plenty of upside over the summer and through the balance of 2017…meanwhile, there’s been a “Death Cross” in the U.S. Dollar Index with the plunging 50-day moving average (SMA) falling below the 200-day…within a month or two at the latest, the 200-day should reverse to the downside and that will usher in a wave of new selling in the greenback and fresh 2017 lows…

Sean Roosen’s Osisko Gold Royalties (OSK, TSX) continues its buying rampage – OSK has entered into a definitive agreement with Orion Mine Finance Group to acquire a high-quality precious metals portfolio of assets consisting of 74 royalties, streams and precious metal offtakes for total consideration of $1.12 million, creating a growth-oriented, world-class and Gold-focused royalty and streaming company…the combination of Osisko and Orion’s portfolios will result in the company holding a total of 131 royalties and streams, including 16 revenue-generating assets…the company’s cornerstone asset remains the 5% net smelter return royalty on the world-class and long-life Canadian Malartic Gold mine (Canada’s largest producing Gold mine) and its 2% to 3.5% NSR royalty on the world-class Eleonore Gold mine…through the transaction, the company gains a 9.6% diamond stream on the Renard diamond mine and a 4% Gold and Silver stream on the Brucejack mine in the Eskay Heart of Gold Camp, in addition to a 100% Silver stream on the substantial Mantos Blancos Copper mine in Chile…

Given his familiarity with Quebec and the Cadillac Trend, we’re wondering when Roosen might turn his attention to Granada Gold (GGM, TSX-V) and its multi-million ounce Granada deposit which is permitted for open-pit production in the LONG Bars Zone and is showing exceptional high-grade promise at depth to the north (1.5 million Inferred ounces comprising 10.4 million tonnes averaging 4.6 g/t Au at a cut-off grade of 1.5 g/t Au)…

Gold in Canadian Dollars Above $1,725

Gold in Canadian dollars remains in a powerful new uptrend that started late last year after a 17% correction…over the last several years, the metal in loonie terms has gradually recorded higher highs within an ongoing bull market and the next obvious target is measured Fib. resistance at $1,880, about $150 or nearly 9% above current levels and within shouting distance of an all-time high…

Keep this raging Gold bull market in Canadian dollars in mind as you scan the landscape of Canadian-based Gold juniors and producers…

Cobalt (And Silver) Country – Northern Ontario

It’s truly amazing that the Klondike Gold Rush has been so thoroughly embedded in Canada’s historical conscious yet the Cobalt Silver Boom of the 1900’s – in many ways so much bigger than the Klondike Gold Rush – is largely unknown…

By all accounts, the Greater Cobalt area between 1903 and 1966 officially produced at least half a billion ounces of Silver (that’s just what was documented, local experts we’ve spoken to believe the unofficial figure is closer to 750 million ounces), making it one of the world’s Top 3 Silver producing regions during that time…this prolific district was the birthplace of Canadian hard rock mining…

The impact of the Cobalt region’s amazing Silver discoveries – over 100 mines were in operation at one point – was profound and widespread…

Understanding the basics of the dramatic history of the Cobalt Camp is critical because that provides answers for what’s happening today and how the future may unfold, creating enormous wealth-building opportunities for investors…ironically, the metal for which the town of Cobalt was named wasn’t the metal that drove the incredible build-up of wealth during the first half of the 1900’s but it is the reason for the district’s current revival…there were issues in the 1900’s with recovering both the Cobalt and Silver from the ores of this region, so miners and prospectors made what was an easy decision to focus on the exceptionally high-grade Silver…this meant that much Cobalt was left behind, and in grades that are generally among the very best in the world (within narrow veins that can pinch and swell for hundreds of feet)…

Today, of course, technological advances have created hot new demand for Cobalt, and global supply is rather tenuous…the bottom line is that the world needs more Cobalt, and many believe that the best place to find it and mine it is in northern Ontario given the region’s advantages in terms of grades, potential supply, infrastructure and historic activity…investors who grasp what’s happening could make fortunes as the Cobalt Rush intensifies over the next year…

Castle Silver Resources (CSR, TSX-V) – The Cobalt Kings?

Here’s another irony – the company that doesn’t even have Cobalt in its name is actually the most advanced in terms of potential Cobalt mining and recovery in northern Ontario…

Castle Silver Resources (CSR, TSX-V) is the first Cobalt player with underground access in this district, and it also has its own proprietary recovery process that could revolutionize the region…

CSR quietly but effectively developed its Cobalt and Silver assets in this Camp well ahead of when it began trading publicly in 2015, and before many others were even thinking about this district…significantly, CSR has 100% ownership of Re-2OX, a proprietary hydrometallurgical process, developed in conjunction with the National Research Council, that will convert material sourced from the Castle mine into high purity, client-specific Cobalt powders for near-term battery sector end user evaluation…

BMR has made it underground into CSR’s Castle main adit, the first of the mine’s 11 levels, where mineralized material is now being extracted…we’ll have several video excerpts in the days ahead – click on the arrow to view today’s 1-minute piece…

In today’s Morning Musings…

1. A junior with a high-grade Gold deposit cut-off grade of 25 g/t Au!…

2. Two Gold producers attractively priced and ready for a strong summer…

3. A stunning 2nd half of 2017 for Silver?…

4. Daniel’s Den – Precipitate Gold (PRG, TSX-V) news, plus the “Foxconn Insider” with “secrets” about Apple…

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 Musings, sign up NOW or login as a current subscriber with your username and password.

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