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July 31, 2017

BMR Morning Market Musings…

Gold has traded in a narrow range between $1,265 and $1,270 so far today…as of 11:30 am Pacific, bullion is off slightly at $1,268 as it prepares to close a strong month of July…Silver is 5 cents higher at $16.79…Copper has edged up 2 cents to $2.87…Nickel has added a penny to $4.61…Crude Oil reversed higher from its morning lows, now within just 25 cents of $50 a barrel, while the U.S. Dollar Index has tumbled nearly half a point to 92.92…support at 93…

The bullish positioning in Gold futures by large speculative accounts surged 153% in the aftermath of scaled-back expectations for future monetary tightening by the U.S. Federal Reserve, based on the most recent data from the Commodity Futures Trading Commission…meanwhile, also for the week ending July 25, Silver speculators swung from net short to net long…

The price of Copper hit a new 2-year peak today on upbeat manufacturing data in top consumer China, while Nickel touched a near 4-month high on renewed supply worries and soaring steel prices…growth in China’s manufacturing sector cooled slightly in July, as foreign demand for Chinese goods slackened, but a government-led drive to develop infrastructure boosted growth in the construction sector…the data, combined with an environmental crackdown in China, sent Chinese steel prices to their highest since December 2013…Nickel of course is used to make stainless steel…

Crude Oil Update

July has been the strongest month for Crude Oil this year as news of a producers’ compliance meeting next week added to bullish sentiment driven by the threat of U.S. sanctions against OPEC-member Venezuela…the Trump administration is reportedly considering imposing sanctions on Venezuela’s Oil sector in response to yesterday’s election of a constitutional super-body which Washington has denounced as a “sham” vote…

Drilling for new U.S. production is also slowing, with just 10 rigs added in July, the fewest since May 2016…

Significantly, WTI has broken out of its downsloping channel pattern since the spring, pushing beyond strong resistance at $48 a barrel…next obvious target is $51.50…

Venture Long-Term “Big Picture”

The consolidation in the Venture that started in August of last year ended, in our view, just over a couple of weeks ago when the Index touched a 2017 low of 749 – the rising 500-day exponential moving average (EMA-500) at the time…

Note in the long-term chart below how the EMA(500) has been the key moving average that has defined Venture bear and bull markets for the past 17 years; in other words, the EMA(500) is powerful resistance during bear cycles and powerful support during bull cycles…

No bull market has ever NOT retreated to its 500-day EMA, just like this one did earlier this month around 750…sudden big moves to the upside have consistently occurred almost immediately after the EMA(500) has been tested!…

RSI(14) appears to be finding new support at 50% and should start turning higher…buy pressure has remained steady on this long-term monthly chart during the consolidation phase since August of last year, meaning “smart money” has been accumulating on weakness…

Next major price target is near 1,000…

John has divided Venture history into 6 distinct trading periods…we’re now in “Period 6“ – a confirmed bull cycle that should last for at least a couple of years…

Period 1 (2001 into early 2003) is best described as “neutral” – mostly range trading as the Venture gauged developments including 9/11 and the war and recession that followed…

Period 2 (early 2003 to early 2007, a bull cycle) delivered a stellar return of 280%…

Period 3 (early 2007 to the end of 2008) was nasty – an 80% wipe-out thanks to the Great Crash…

The gain during Period 4 (2009 to early 2011, another bull cycle) was staggering, similar to Period 2 but over a shorter time frame, at 264%…

Period 5 (early 2011 to early 2016) was an ugly bear market as we all know, and the Venture declined a whopping 81% (same percentage decline but worse in many ways than Period 3 because it dragged on for 5 years)…

If Period 6 is similar to Periods 2 and 4, we can expect the Venture to make its way to at least 1700 during this cycle…

In today’s Morning Musings…

1. Eskay Heart of Gold Camp update…

2. More technical evidence of a Venture turnaround…

3. Gauging the next big move for the TSX Gold Index, and one of our favorite producers reports Q2 earnings Thursday…

4.Cannabix Technologies (BLO, CSE) unveils Beta 3.0 marijuana breathalyzer…

5.Daniel’s Den – how to win in the markets…

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, including coverage of game-changing discoveries that have already made some of our subscribers fortunes?

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.

Questions for us?  Email us at: [email protected].

 

7 @ 7:00

Check back later this morning by today’s BMR Morning Market Musings and check out the comments section throughout the day for updates and helpful information.

1. Gold has traded between $1,265 and $1,270 so far today…as of 7:00 am Pacific, bullion is down $1 an ounce at $1,268…Silver has added 8 cents to $16.81…Copper is up 2 pennies to $2.87…Nickel has added 3 cents to $4.63…Crude Oil has eased off 37 cents to $49.34 while the U.S. Dollar Index is up slightly at 93.40…interesting comments from Federal Reserve Vice Chairman Stanley Fischer this morning who said U.S. companies are likely holding back on investing in their businesses due to an uncertain outlook for government policies…speaking in Rio de Janeiro, Fischer said uncertainty over the outlook for health care, regulation, taxes and trade could prompt firms to delay projects until the policy environment is clearer…he did not mention the administration of President Donald Trump by name…if that’s how the Fed is thinking, what does that mean for any additional tightening this year?…

2. Philippines’ environment minister Roy Cimatu said today that he would not lift a ban on open-pit mining imposed in April in an “anti-pollution” crackdown, as an inter-agency mining council reviews how miners are taxed in the Philippines…Cimatu, a former general, was appointed by President Rodrigo Duterte in May after Duterte’s previous choice as environment minister, Regina Lopez, failed to secure congressional confirmation after a drive to implement radical environment protection measures that enraged the mining industry…it seems Cimatu isn’t much different in his outlook:  “There is a department order on the ban on open-pit mining issued by Secretary Lopez,” Cimatu told a news conference in the capital. “It still stays.”

3. Crude Oil prices are on track for their strongest month this year as news of a producers’ technical meeting next week to discuss compliance added to bullish sentiment driven by the threat of U.S. sanctions against OPEC member Venezuela (a great example of a country that destroys itself with socialism)…Oil traders are also gauging the bullish impact from a production outage following a fire at Europe’s largest refinery and further signs that the U.S. market is tightening after heavy inventory falls and slower new Oil rig additions last week…some OPEC and non-OPEC members will meet on August 7-8 in Abu Dhabi to assess how the group can increase compliance with production cuts that began on January 1…important resistance for WTI is around $51.50…

4. Strong news this morning from Cannabix Technologies (BLO, CSE) as the company announced that it has developed a Beta 3.0 Cannabix Marijuana Breathalyzer device based on its FAIMS (field asymmetric waveform ion mobility spectrometry) technology with major advances in the design and commercial capabilities of the device..the Beta 3.0 will include a conventional rechargeable battery, improved ion flow, and the latest pulse driver chips to improve resolution and sensitivity…the new design includes improvements that will allow for dynamic testing and for easier configurability that will be needed for more demanding test/user environments…BLO continues to be at the leading edge of marijuana breathalyzer technology, and the final sentence of the company’s news release this morning was noteworthy:  “The company is in discussions to collaborate, using the Cannabix Marijuana Breathalyzer, with a significant U.S. based institution with large user group and enhanced testing environment.”  BLO is up a nickel at 59 cents through the first 30 minutes of trading…

5. The Venture has gained 2 points to 774 as of 7:00 am Pacific…the Index is working its way through a band of resistance between 770 and 778 – once that is cleared, the next key area is the high 780’s…a major breakout appears to be in the cards for August…Garibaldi Resources (GGI, TSX-V) has hit a new multi-year high of 38 cents on strong volume again in early trading…last Thursday, GGI reported widespread pyrrhotite-chalcopyrite mineralization has been confirmed on surface in gabbroic rocks at “Anomaly A” that outcrops over a broad area 6 km northeast of the historic E&L deposit…mineralized gabbros at “Anomaly A” are “visually identical to the mineralized gabbros at the E&L”, GGI stated…drilling at the E&L commences shortly and is targeting known Nickel-Copper-rich mineralized zones and a strong conductor directly beneath those zones beginning at a depth of 140 m…shallow drilling by Silver Standard in the 1960’s – the only time any drilling has ever been carried out from the top of Nickel Mountain – intersected significant Nickel-Copper disseminated to massive sulphide mineralization in all 12 holes including 1.3% Ni and 0.79% Cu over 37.8 m in DDH-4–1966…that hole bottomed in 2.7 m of 5.9% Ni and 1.7% Cu at a depth of about 75 m…the deepest hole was drilled to 122 m and included massive sulphides in the final meter…another company set to start drilling imminently in the Eskay “Heart of Gold” Camp is Aben Resources (ABN, TSX-V) which is targeting high-grade Gold at its Forrest Kerr Project north of Eskay Creek in an attempt to extend known mineralized horizons…ABN is active again this morning on a breakout above its closing high for 2017…

6. Silver Standard Resources (SSO, TSX), a great name in Canadian mining which made the original Nickel-Copper massive sulphide discovery at the E&L in the 1960’s and holds a 1% NSR on those claims, officially changes its name tomorrow to “SSR Mining Inc.” to reflect its diversification beyond Silver into Gold…the shares will continue to trade under the existing ticker symbols on the TSX and NASDAQ until the new symbol (SSRM) becomes effective later in the week…Paul Benson, President and CEO, stated earlier this year:  “With Gold representing approximately 70% of our revenue, the current name does not accurately reflect our business. We have evolved from a Silver-focused producer to an intermediate precious metals producer with 3 mines in the Americas. The (new) name, which includes the initials of our existing name, is a natural evolution in our more than 70-year history.”

7. Six security contractors working for Continental Gold (CNL, TSX) were killed after an explosion at an illegal Gold mine in central Colombia, the company reported Saturday…the explosion took place on Friday in the Buritica municipality of Antioquia province when the contractors surprised a group of illegal miners in a shaft they were inspecting, Continental said…1 of the 7 contractors survived…illegal mining is widespread in Colombia and accidents and civil unrest around mines are not uncommon.  “The contractors were performing routine underground inspections of a government-closed illegal mine,” Continental reported in a statement on its website.  “Upon entering the underground mine, the contractors were accosted by illegal miners, followed by a subsequent explosion.  The company is looking to authorities to enforce the rule of law to prevent this kind of tragic event from ever happening again.”

The most popular recent BMR articles/videos…

Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember

How To Bring A Junior Resource Market To Life!

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp

Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine

Developments in Cobalt Country

America’s Loony Left Has Become VERY Dangerous

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

July 30, 2017

Sunday Sizzler Report

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July 29, 2017

The Venture Week In Review And A Look Ahead

Exclusive to BMR Subscribers – Not for Public Distribution.

TSX Venture Exchange and Gold

Last week we stated the junior resource market was too quiet, making this the perfect time for something BIG to emerge.

KABOOM!

This is just the beginning!…find out today how you can profit from some extraordinary developments in northwest British Columbia and elsewhere…

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, including coverage of game-changing discoveries that have already made some of our subscribers fortunes?

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.

Questions for us?  Email us at: [email protected].

 

July 28, 2017

BMR Morning Market Musings…

Gold has traded between $1,257 and $1,271 so far today…as of 12:20 pm Pacific, bullion is up $11 an ounce at $1,270…Silver has climbed 14 cents to $16.70…Copper is steady at $2.85…Nickel is 3 cents higher at $4.60…Crude Oil, at $49.76, has surged 76 cents a barrel while the U.S. Dollar Index has tumbled another half point to 93.33…

Gold got an extra boost this morning after the hideous regime of North Korea became even more provocative, test firing a missile that landed in the Sea of Japan, about 600 miles from the launch pad…the missile flew for 47 minutes and reached an altitude as high as 2,300 miles, South Korea military told Reuters…

Analysts had estimated that North Korea’s first ICBM on July 4 could have reached Alaska, and said that today’s missile appeared to extend that range significantly…U.S. Presidents beginning with Clinton and other world leaders over the last couple of decades, not to mention the useless United Nations, have done nothing but kick the can down the road with North Korea…career politicians have failed miserably on this issue…now the rogue regime is Donald Trump’s problem to solve after such a “smooth” handover from Obama whose “red lines” were nothing more than a mirage…

Yesterday, Iran, another part of the original Axis of Evil, launched its own rocket – based off a North Korean design – towards space…the Islamic Republic said the launch was a success, but U.S. assessments pegged the Iranian posture as propaganda…officials believe the Iranian rocket suffered a “catastrophic failure” and likely blew up…

There have been diverging trends in the actions of futures speculators and exchange-traded-product investors in the Gold and Silver markets, according to an analysis by Societe Generale…speculators in the futures markets have scaled back bullish exposure to Gold in recent weeks and are net bearish in Silver…contrarians will take that as a bullish sign…ETP investment is being described as fairly stable or modestly rising in Gold and Silver…ETP holdings typically tend to be “stickier”, reflecting investor behavior beyond the near or short-term…

No Upside Surprise In U.S. Growth

The U.S. has entered the 9th year of economic expansion on a familiar path of steady but unspectacular growth, with few obvious indications it is near exhausting itself…GDP, the broad measure of goods and services produced, rose at a 2.6% annual rate in the April to June period, the Commerce Department reported this morning…figures are adjusted for inflation and seasonality…the Q2 advance marked a rebound after a lackluster start to the year when GDP grew at only a 1.2% clip…it’s possible the economy could be repeating a familiar pattern of weak winters followed by a stronger spring and summer…

Crude Oil Update

Significantly, Crude Oil has broken out of its downsloping channel pattern since the spring, pushing beyond strong resistance at $48 a barrel…next obvious target is $51.50 as you can see on John’s updated chart…

What was different about Oil’s downtrend during the first half of this year vs. the collapse in prices that began in late 2014 is that the Saudis have been working fervently to push prices back up…budget issues and a likely 2018 IPO of their state-run Oil company have given the Saudis all the incentive they need to try and push Oil prices higher…a declining U.S. dollar has been a contributing factor as well to a recovery in Crude prices, and there’s no sign the greenback is going to reverse anytime soon…

News just in a short while ago – Oil field services firm Baker Hughes has reported that the number of Oil rigs operating in the U.S. rose by just 2 to a total of 766 last week…the rig count has risen fairly steadily for more than a year but the growth has recently moderated…

Copper Update

What a great week for Copper!…

Now’s there’s a prediction from a major CEO that Copper prices could rise to boom time highs of more than $4 (U.S.) a pound thanks to unexpectedly low supply as global growth continues…the last time Copper was at $4 was in 2011 when it rose to an all-time high of $4.62…

The prediction, from Freeport McMoran chief Richard Adkerson, came as Copper prices jumped overnight to a new 2-year high on Chinese growth and tight supplies…

Speaking to investors after the release of Freeport’s Q2 earnings last night, Adkerson said global Copper supplies were only going to get tighter as growth spurred more demand for the industrial metal, which is often seen as a barometer for economic growth…

“You’re going to see a period of time where there’s going to be a shortage of Copper, and you’re not going to see the price (just) go to $3,” he told investors.  “We just need to look over our shoulders and we can see at times we had Copper at $4, and we’re heading for a world of where that is, I believe, in the cards.  There are some projects that are being completed and so forth, but the wall of Copper that was supposed to come about in 2016 didn’t show up,” he added…

The big turnaround for Copper came at the beginning of 2016 when the price touched the long-term uptrend line around $1.90 just as most investors were extremely bearish…at the same time, RSI(14) hit levels not seen the 2008 Crash and the 60-cent bottom in late 2001…

The Venture, a reliable leading indicator, took off before Copper did in 2016 but recently the metal has outperformed the Venture…we’d like to see that dynamic change during this 2nd half of the year with the Venture leading the way again which is a sign of a healthy, robust bull market…

In today’s Morning Musings…

1. Garibaldi Resources (GGI, TSX-V) wakes up the Eskay Heart of Gold Camp…

2. Aben Resources’ (ABN, TSX-V) update…

3. A must-own Gold producer keeps producing for shareholders…

4. Daniel’s Den – “Friday Footnotes”, how Amazon can’t knock out Teladoc, and record earnings for Mitek…

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, including coverage of game-changing discoveries that have already made some of our subscribers fortunes?

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.

Questions for us?  Email us at: [email protected].

7 @ 7:00

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

1. Gold has traded between $1,257 and $1,267 so far today…as of 7:00 am Pacific, bullion is up $6 an ounce at $1,264…Silver has added 11 cents to $16.66…Copper is steady at $2.86…Nickel again leads the base metals with a gain of 6 cents to $4.63…Crude Oil is up another 25 cents to $49.30 while the Dollar Index is flat at 93.79…

2. China’s Gold output fell by 9.85% from a year ago to 206.5 tonnes in the first half of 2017, state media reported today, citing data from the China Gold Association…the country’s consumption, however, was up by 9.89% to 545.23 tonnes over the same period, said the People’s Daily, leading to higher imports by the world’s top Gold consumer as indicated by data out of Hong Kong yesterday…the higher consumption was mostly for Gold bars, which recorded a 51.1% increase from a year ago to 158.4 tonnes…Gold jewellery consumption dropped slightly…

3. Oil prices have advanced for a 5th straight session, reaching fresh 2-month highs with Crude on track to post its best weekly gain this year…investors are digesting signs of an easing oversupply picture…U.S. Crude and gasoline inventories fell much more steeply than expected this week and the world’s biggest Oil exporter Saudi Arabia said it would further reduce Oil output in August…U.S. Crude production has been on the rise since mid-2016 but it dropped to 9.41 million barrels per day (bpd) in the week to July 21, from 9.43 million bpd the week before…the decline was mainly due to a fall in Alaskan output…investors are eyeing an update on the U.S. rig count later this morning to assess drilling activity…

4. U.S. economic growth for the 2nd quarter came in line with most estimates at 2.6%, though some analysts were anticipating a better number…Gold has strengthened as a result…meanwhile, the Republican effort to dismantle the Affordable Care Act collapsed late last night/early this morning when a slimmed-down Senate measure to pare back selected pieces of the 2010 health-care law failed, undermining the GOP leaders’ efforts to deliver on years of promises…Arizona Senator John McCain was one of 3 Republicans who voted with the Democrats…ObamaCare has been a drag on the U.S. economy, so the fact the Republicans who now control Congress and the White House can’t do as they promised doesn’t bode well for other reforms that need to be implemented…

5. The Venture is up 1 point at 770 as of 7:00 am Pacific…volume leaders hitting new highs in early trading include Garibaldi Resources (GGI, TSX-V) and GT Gold (GTT, TSX-V), both in the midst of new discoveries in northwest B.C.’s prolific Golden Triangle…the Venture faces of band of resistance between 770 and 778 but the odds look favorable for a breakout soon…the TSX is off 64 points in early trading while the Dow has retreated 27 points…

6. Yesterday’s news that Garibaldi Resources may have a second E&L-style Nickel-Copper rich massive sulphide system at Nickel Mountain sent the stock to a nearly 3-year high on volume of more than 2.6 million shares…GGI reported that widespread pyrrhotite-chalcopyrite mineralization has been confirmed on surface in gabbroic rocks at “Conductor A” that outcrops over a broad area 6 km northeast of the historic E&L deposit…no prospectors or geologists are known to have ever stepped foot on this ground prior to GGI’s crews, so it’s a brand new discovery delivered through geophysics and validates a VTEM survey that also, critically, shows a strong and broad conductor directly below the known Nickel-Copper-rich mineralized zones at the E&L as defined by multiple shallow drill holes completed by Silver Standard Resources (SSO, TSX) in the 1960’s…GGI stated that the mineralized gabbros at “Conductor A” are visually identical to the mineralized gabbros at the E&L…”Conductor D” at the E&L begins at a depth of 140 m, within as little as a 20-m vertical depth from the historic zones outlined by 12 drill holes half a century ago including DDH-4–1966 that returned 37.8 m grading 1.3% Nickel and 0.79% Copper…5.9% Nickel and 1.7% Copper over 9 feet were assayed near the very bottom of that hole at a depth of about 75 m…GGI is unchanged at 22.5 cents through the first 30 minutes of trading but a major breakout has occurred above a long-term downtrend line on a 25-year monthly chart…

7. Constantine Metals (CEM, TSX-V) is making excellent progress at its Palmer VMS Project in Alaska, though the stock experienced a mild “sell-on-news” event yesterday as it pulled back a penny on very good results…CEM drilled 45.4 m grading 2.5% Cu, 7.4% Zinc, 39 g/t Ag and 0.30 g/t Au, including 6.2% Cu and 13.8% Zn over 10.9 m, in resource expansion drilling (South Wall)…this impressive intercept from drill hole CMR17–82, along with intercepts from 2 other holes that also cut massive sulphides in an area poorly tested by previous drilling, dramatically increases the width and grade of mineralization in the South Wall and also indicates excellent potential for further expansion to the west…additional drilling in this area and to the west is in progress…meanwhile, CEM has also made a high-grade Silver discovery in its first-ever drill hole to test the Nunatek prospect, 3 km from the South Wall resource…that hole returned 9.2 m grading 312 g/t (9.1 opt) Silver and nearly 1 g/t Au hole CMR17–89…approximately 20 to 25 drill holes are expected to be completed at Palmer in a 7,000-m program that started last month…CEM is unchanged at 20 cents as of 7:00 am Pacific…

The most popular recent BMR articles/videos…

Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember

How To Bring A Junior Resource Market To Life!

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp

Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine

Developments in Cobalt Country

America’s Loony Left Has Become VERY Dangerous

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

The Table Is Set For A Dramatic August!

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July 27, 2017

BMR Evening Alert!

BullMarketRun.com

8:00 pm Pacific

What a day for 2 juniors in British Columbia with game-changing discoveries as GT Gold (GTT, TSX-V) extended its gains from Tuesday while announcing a $5 million financing, while Garibaldi Resources (GGI, TSX-V) exploded out of the teens to its highest level in nearly 3 years on stunning news that there’s strong evidence of a potential corridor prospective for a cluster of Nickel-Copper-rich massive sulphide deposits along at least a 6-km trend in the heart of the prolific Eskay Camp.

Shareholders of both companies can “shout it out loud” because fundamentals and technicals are strongly supportive of GTT and GGI sparking a level of exploration excitement in B.C. that hasn’t been seen in many years.  We’ll review the charts for each in a special subscriber-only piece prior to market open in the morning.

GT Gold has drilled into an abundance of high-grade Gold in the Saddle zone of its Tatogga Property 20 km northwest of Red Chris.

Saddle mineralization.

With numbers like GTT has produced at the outset, such as 13 g/t Au over 10.7 m, 17.4 g/t Au over 9.1 m, 10.7 g/t Au over 9.1 m, 15.3 g/t Au over 8.8 m, and 8.7 g/t Au over 8.5 m, there’s no question this is a significant new high-grade discovery in an important location.

The promising Gold-in-soils and rock geochemistry at Saddle South, identified through some very systematic exploration, have been confirmed by the first set of drill results with the mineralized zones displaying good continuity.  The high-grade Gold system intersected at Saddle South in multiple holes (20) is wide open along strike (200 m) and to depth (213 m).  

For many investors as well as geologist Charlie Greig, who signed off on GTT’s Tuesday news release as QP and also plays important roles with Garibaldi, Eskay Mining (ESK, TSX-V) and Colorado Resources (CXO, TSX-V), this is going to be a summer to remember!  BMR interviewed Charlie late last year and we’ll have him back again soon to discuss the exciting events at GT Gold’s Tatogga Property.

Garibaldi, meanwhile, is ready to take aim at a “bull’s eye” massive sulphide target immediately below known Nickel-Copper-rich mineralized zones at the historic E&L deposit at Nickel Mountain, 11 miles southwest of Eskay Creek.

What’s so hugely significant about the E&L is that it’s quickly shaping up to be the most exciting Nickel play in Canada in at least a decade, perhaps since Voisey’s Bay, given how every piece of the puzzle at Nickel Mountain now fits for an expansion of a shallow deposit that Silver Standard Resources (SSO, TSX) first identified through 12 drill holes in the 1960’s.  One of those holes (DDH-4–1966) returned 37.8 m grading 1.3% Nickel and 0.79% Cu including 5.9% Nickel and 1.7% Copper over 9 feet near the bottom of the hole around 75 m.

In addition to a plethora of other evidence that the Golden Triangle’s only Nickel-Copper-rich magmatic sulphide system is potentially much larger than anyone originally believed, a strong and broad VTEM conductor begins at a depth of approximately 140 m at the E&L.  Significantly, that conductor was given added credence today when GGI announced that another strong conductor 6 km to the northeast has resulted in an important surface discovery of widespread pyrrhotite-chalcopyrite mineralization where no previous exploration had ever occurred.

“The mineralized gabbros at ‘Anomaly A’ are visually identical to the mineralized gabbros at the E&L,” Garibaldi confirmed, raising the possibility of multiple E&L’s along a 6-km corridor.

Dr. Peter Lightfoot

Just one big E&L would be dramatic, but a “cluster” of these deposits is a theory first put forward by Dr. Peter Lightfoot, one of the world’s most renowned Nickel sulphide experts who a few weeks ago went on record as saying the E&L is in the top quartile of early stage Nickel sulphide prospects in the entire world.

Dr. Lightfoot’s hypothesis 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 deposits 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 (includes the Eskay Camp).”

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp

Garibaldi closed 5.5 cents higher today at 23 cents on total volume (all exchanges) of nearly 2.7 million shares, while GT Gold added 15 cents to finish at $1.15 on total volume (all exchanges) of 2.4 million shares.

Check back in the morning for additional coverage of both companies.

Note:  John, Jon and Daniel hold share positions in GGI.  Jon also holds share positions in CXO, ESK and GTT.

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