December « 2017 « BullMarketRun.com

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

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

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December 7, 2017

7 @ 7:00

Visit the BMR comments section throughout the day for updates and helpful information.

1. Gold has traded between $1,253 and $1,264 so far today, touching a 4-month low as a Federal Reserve meeting rapidly approaches with the central bank expected to raise rates for the 3rd time this year…as of 7:00 am Pacific, the yellow metal is off $9 an ounce at $1,254…Silver has dipped 12 cents to $15.80, a 5-month low…Copper is up a penny at $2.97 while Nickel has added 7 cents to $4.95…Crude Oil is up 31 cents to $56.27…the U.S. Energy Information Administration released weekly data showing a 6.8 million barrel increase in gasoline inventories for the week ended December 1, as well as record U.S. Crude production of 9.7 million barrels a day for last week…the U.S. Dollar Index has gained nearly one-fifth of a point to 93.67…euro zone 3rd-quarter GDP came in unrevised and in line with expectations, up 0.6% from the 2nd quarter and up 2.6% year-on-year…China’s Gold reserves were unchanged at 59.24 million ounces in November, compared with the previous month, the central bank said this morning…meanwhile, global holdings in Gold-backed exchange-traded funds (ETF) rose by 9.1 tonnes to 2,357 tonnes in November, with the net inflows coming entirely from Europe as the U.S. dollar fell, according to data released by the World Gold Council…

2. The price of bitcoin topped $15,000 for the first time today in a fresh rally that continues to hit new highs, just days before Cboe Global Markets launches bitcoin futures (followed soon after by CME Group)…bitcoin’s gains this year have accelerated recently, rising more than 40% in the past week alone…the cryptocurrency rose 28.5% in 35 hours from the beginning of yesterday (universal time) through this morning…the rally has attracted new investors around the world as excitement mounts about the potential for digital currencies…bitcoin now has a market value of more than $256 billion, meaning it would rank among the 20 largest stocks in the S&P 500…

3. Canamex Gold (CSQ, TSX-V) reacted positively to news this morning that the company has executed terms of agreement with Harmonychain AS to consider the issues around an initial coin offering of asset-backed digital tokens based on the Ethereum blockchain technology and whether the company could utilize this new technology in future offerings. “The new paradigm of secure digital currencies and tokens opens up a new opportunity for Canamex, as a potential alternative means of doing financings. We believe that this concept could be a first for the industry. One of the great benefits with raising capital via this concept is that there could be minimal dilution for the shareholders, in addition to the benefits of transparency, the potential asset backing of the tokens and it being attractive compared to traditional debt or equity financings,” said David Vincent, Canamex CEO…

4. The Dow has climbed 64 points in early trading…in Toronto, the TSX is up 95 points as of 7:00 am Pacific while the Venture has slid a further 3 points to 781 in typical early December softness…Cannabix Technologies (BLO, CSE) has closed its bought deal private placement of 4 million units at a price of $1.15 per unit for aggregate gross proceeds of $4.6 million (each unit includes a full 3-year warrant at $1.60)…in addition, the company has raised an additional $977,500 through closed a non-brokered private placement on substantially the same terms as the bought deal units…eCobalt Solutions (ECS, TSX) announced this morning that it has made significant progress on optimization of its Idaho Cobalt Project, resulting in a new direction to produce a clean (low arsenic content) Cobalt concentrate product, an upstream precursor material for battery cathode production…this product change and other project optimization efforts have the potential to result in a significant improvement in economics for the project, according to management, which adds that this new opportunity is being pursued in response to changes in battery supply chain dynamics and in-depth discussions with potential offtake partners…Jaxon Mining (JAX, TSX-V) has completed its fall/winter 2017 drilling program at its Hazelton Silver-Zinc Project north of Smithers…the company drilled a total of 2,281 m in 12 diamond drill holes…as of today, 1019 samples have been selected to be sent to a lab near Vancouver…

5. Cobalt prices are likely to rise significantly over the next 2 years as the industry struggles to meet rising demand from batteries used in electric vehicles, according to BMO Capital Markets…it sees the annual average Cobalt price peaking at $40.50/lb in 2019, from current levels of about $30 a pound, but does not rule out the possibility of prices doubling from current levels during that time period…so far this year, 99.6% broken cathode Cobalt – the grade often used in chemicals and batteries – has averaged $25.58/lb, according to Platts assessments, having started the year at a midpoint of $14.75/lb…the investment bank put this year’s Cobalt rally down to continued growth in smartphone sales which it says will still be the main end use market for Cobalt…BMO estimates that global Cobalt mine supply is down 2.7% in 2017, with “weakness at Glencore operations (Katanga) and disputes at GTL’s Big Hill primary Cobalt tailings operations.”

6. Kinder Morgan Canada (KML, TSX) is selling $200 million in shares even as the company dials back spending and warns of additional delays to its Trans Mountain pipeline expansion…the unit of Houston-based Kinder Morgan Inc. said yesterday that it’s selling 8 million preferred units at $25 each in a bought deal to major banks, with proceeds earmarked to help finance the $7.4 billion pipeline expansion to Burnaby…the offering comes despite warnings the 590,000-barrel-a-day expansion project could see Oil shipments commence 9 months later than originally planned…this week, Kinder Morgan Canada said delays could extend beyond September 2020, further driving up costs… CEO Steve Kean reiterated yesterday that the company will not accelerate spending unless it gets clarity on permitting for the project…at full construction the company would spend up to $300 million a month, compared with around $30 million today…

7. Why would investors put their money into Alberta when President Trump has done the opposite of the Alberta government over the past 11 months with sweeping energy sector reforms that have slashed taxes and regulations, drawing fresh investment into the United States?…since 2015, the socialists in Alberta have increased corporate income taxes by 20%, implemented a carbon tax, and introduced a new slate of environmental regulations, including a cap on emissions from Oilsands production…yesterday, a leaked provincial government document emerged that ostensibly projected that it would cost Oil companies billions of dollars to comply with new emission rules, although the government says the document is outdated and inaccurate…Premier Notley’s “outreach” to environmentalists has been a complete disaster with the government unable to secure the “social license” it was searching for – even Notley’s NDP friends now running the B.C. government are vigorously opposing the Trans Mountain pipeline expansion…

The Template For The Next 10% Move In Garibaldi Resources

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

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

Comments (22)

December 6, 2017

BMR Evening Alert!

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Daniel’s Den

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7 @ 7:00

Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.

1. Gold has traded between $1,263 and $1,270 so far today, touching a 2-month low…as of 7:00 am Pacific, the yellow metal is off $2 an ounce at $1,264 as it hovers around its 200-day moving average (SMA)…Silver, clearly oversold, has retreated another 7 cents to $15.98…Copper is up 2 pennies at $2.97 while Nickel is unchanged at $4.90…Crude Oil has slipped more than $1 a barrel to $56.57 while the U.S. Dollar Index has climbed one-quarter of a point to 93.55….despite appeals and warnings from certain world leaders, President Trump is on the verge of fulfilling another election promise as he’s poised to reverse decades of U.S. policy by declaring Jerusalem as Israel’s capital and beginning the process of moving the U.S. Embassy to the holy city…

2. India’s Gold imports in November nearly halved from a year ago as a rise in the price of the yellow metal curbed retail buying for weddings, industry officials and analysts said today…a drop in Gold purchases by India, the world’s second-biggest consumer after China, has been one factor restraining Gold prices despite strong ETF buying…India’s imports in November were around 55 tonnes, a sharp fall from last year’s 100.6 tonnes, provisional data from GFMS showed…

3. Not surprising – Oil prices have slipped below where they were prior to last week’s confirmation of the OPEC deal when speculators were holding almost record-high net-long positions…traders got another excuse to lock in profits yesterday when an American Petroleum Institute (API) report showed a 9.2 million barrel rise in gasoline stocks in the week ended Dec. 1, and an increase of 4.3 million barrels in distillate inventories, which include motor diesel and heating Oil…the perception that the higher fuel stocks pointed to weak demand outweighed a larger than expected drop in Crude inventories (5.5 million barrels to 451.8 million barrels)…however, the outlook for next year looks solid and Goldman Sachs has raised its Oil price forecasts for 2018 by about 5%…meanwhile, climate change extremists and Oil haters are causing economic damage to Alberta, but also Canada overall, by creating further delays in the planned (and approved) Trans Mountain pipeline…Kinder Morgan Canada (KML, TSX) says there’s a lack of clarity around municipal permit processes and related judicial processes (the anti-pipeline crowd has been effective at both levels, municipal and judicial)…an expansion of the pipeline from Alberta’s energy heartland to Burnaby, B.C., would nearly triple capacity to 890,000 barrels per day, and is critical to help Alberta get more of its Crude to tidewater…

4. Garibaldi Resources (GGI, TSX-V) has drilled into more exceptionally high-grade massive sulphides at Nickel Mountain in the heart of the Eskay Camp, solidifying the first discovery of a Nickel-Copper-rich sulphide system in the heart of one of the world’s most prolific high-grade Gold camps…drill hole EL-17–09 has cut 7.3% Nickel and 3.3% Copper, along with Palladium, Platinum, Cobalt, and Gold and Silver values, over 9.9 m within a broader interval of 12 m grading 6.2% Ni and 2.9% Cu (175.5 m to 187.5 m)…above that massive sulphide intercept, which builds on the discovery zone to the east of the historic deposit, a strongly disseminated zone of 32.5 m was also intersected, grading 0.91% Ni and 0.69% Cu…meanwhile, the historic zone to the west has been expanded with all 4 of those holes reported this morning cutting wide intervals of Ni-Cu-rich mineralization including 39.3 m @ 1.27% Ni and 0.81% Cu in EL-17–08…also significant is that multiple new airborne VTEM conductors have been outlined over a broad north-northeast corridor stretching 6 km to “Anomaly A” after a further review of geophysical data obtained by GGI during a spring program…it’s becoming increasingly apparent that the GGI geological team, led by Dr. Peter Lightfoot, is well on its way to a potential new world class discovery in an established mining camp…GGI gapped up to $3.24 at the open and is up 33 cents at $3.25 as of 7:00 am Pacific…more drill results are pending including Discovery Hole 14…

5. Is Cramer right or wrong?…the colorful CNBC commentator warned this morning that Bitcoin is a pure gamble, and those interested in the cryptocurrency should just go to Vegas instead…the cryptocurrency, which has surged more than 1,000% this year, broke above the $12,000 mark this morning after a recent correction. “It’s kind of like monopoly money,” said Cramer, the host of CNBC’s “Mad Money”. “Obviously, there’s people who use it. If you ever say anything bad about it, there’s like this ‘bitcoin mafia’ that comes after you. But it is an oddity that has nothing to do with us” as investors…

6. North American equity markets are generally flat in early trading…the Dow is up 11 points as of 7:00 am Pacific while in Toronto, the TSX has added 2 points while the Venture is even at 784 through the first 30 minutes of trading..typically, the Venture will find its low for December during the first half of the month and then begin a strong push higher immediately prior to Christmas…Tinka Resources (TK, TSX-V) is pushing higher after releasing results for 6 new drill holes at the company’s 100%-owned Ayawilca Zinc Project in central Peru…3 holes were resource step-out holes at South Ayawilca, 2 were resource infill holes, while 1 hole intersected significant mineralization at the “Zone 3” area for the first time (10.3 m at 5.9 % Zinc, 2.0 % Lead and 66 g/t Silver from 570.2 m)…Dr. Graham Carman, Tinka President and CEO, stated: “We believe the new intercepts in drill hole A17–091A are very significant, as they open up the Zone 3 area for potential resource expansion in an area that has seen little drilling. The same magnetic anomaly that outlines the Ayawilca Zinc and Tin Zones continues into Zone 3, extending the prospective zone by hundreds of metres to the northeast. A drill rig will continue to operate in the Zone 3 area following-up on this exciting discovery. Drilling is now expected to continue well into 2018 without a break, other than for the Christmas period”…Big Blockchain Intelligence Group (BIGG, CSE) on the CSE has entered into an agreement with a syndicate of underwriters led by GMP Securities for the purchase of 13.34 million shares of the company at 75 cents per share on a bought deal basis for total gross proceeds of approximately $10 million…

7. Saskatoon has the most competitive tax rates on business investments of any major city in Canada, beating Calgary for the 3rd straight year following recent tax hikes in the Alberta region, a new report shows…policy think-tank C.D. Howe Institute released its annual report card today that measures the marginal effective tax rate (METR) on new business investments in Canada’s biggest cities…Saskatoon earned the highest score, followed by Calgary and Vancouver in 2nd and 3rd place, respectively…overall, the highest tax burdens were found in Saint John, Charlottetown and Montreal…Toronto and St. John’s scored around the national average…Saskatoon has led the list since 2015, when it took the top spot from Calgary…

The Template For The Next 10% Move In Garibaldi Resources

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

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

Comments (3)

GGI Hits More 7% Nickel At Nickel Mountain

5:00 am Pacific

BullMarketRun.com

Nickel Mountain, in the heart of a high-grade producing Gold Camp just 11 miles southwest of one of the great ore discoveries of all time at Eskay Creek, has delivered more world class Nickel sulphide intervals with Garibaldi Resources (GGI, TSX-V) announcing this morning that drill hole EL-17–09 has intersected 12 m of 6.2% Nickel and 2.9% Copper, plus value added PGE’s, Cobalt, Gold and Silver, expanding a massive sulphide discovery zone east of the historic E&L deposit (includes 9.9 m @ 7.3% Ni and 3.3% Cu).

At a slightly shallower level in EL-17–09 is another zone of Nickel and Copper, 32.5 m grading 0.91% Ni and 0.69% Cu, begging the question: If EL-17–09 doesn’t qualify as a “Discovery Hole”, along with EL-17–04 reported earlier (7.2% Nickel and 3.4% Copper over 4.8 m within a broader interval of 48.2 m highlighted by 1.1% Nickel), then what may exist within EL-17–14 which is being labelled by Garibaldi as its “Discovery Hole” at Nickel Mountain with assays pending?

Dr. Peter C. Lightfoot

Dr. Peter Lightfoot, one of the world’s foremost Nickel sulphide experts and a technical adviser to Garibaldi, had this to say about the latest massive sulphide intersection:

“The unusually high grades in massive magmatic sulphides at Nickel Mountain are indicative of an open system magmatic event within the Eskay Rift collisional setting, an ideal structural environment for a unique discovery such as this.”

Lightfoot, the lead speaker at a 9-day course beginning later this week covering major Canadian Nickel deposits, is a conservative geologist. For him to use the word “unusual” is, in itself, unusual. Months ago, based on an accumulation of geological and geophysical data he had carefully analyzed, he predicted the strong possibility of a game-changing Nickel sulphide discovery in the heart of the Eskay Camp and he has been proven correct. He also now believes that other discoveries will be made along the newly-defined Nickel Corridor, much of which is controlled by Garibaldi though Metallis Resources (MTS, TSX-V) is also an important player.

Four other highlights from this morning’s news expand the scale of what’s emerging at Nickel Mountain:

1. Four holes drilled to the west have intersected thick intervals (approximately 40 m each) of Nickel-Copper-rich mineralization, building on the historic zone originally discovered in limited drilling by Silver Standard in the 1960’s, including 39.3 m grading 1.27% Ni and 0.81% Cu in EL-17–08 starting from a shallow depth of just 25.7 m;

2. Massive sulphides are increasingly being intersected in the historic area including 5.85 m grading 5.1% Ni and 2.0% Cu;

3. Additional analysis of geophysical data has expanded the number of high-quality VTEM conductors trending north-northeast of the new discovery zone along a minimum 6-km Nickel Mountain trend leading to Anomaly “A”;

4. Potentially significant unexplained anomalies in borehole electromagnetic (BHEM) data for the northwest zone are being thoroughly investigated by the Garibaldi geophysics team led by renowned expert Alan King.

Speaking of King, who’s regarded as one of the world’s top geophysicists, one of his slides from a major 2013 paper on geophysical attributes of magmatic sulphide deposits reminded everyone how Voisey’s Bay was once thought to have the “wrong geology” (northwest B.C. wasn’t on Inco’s radar screen, either).

To read the rest of this morning’s special report, sign up NOW or login as a current subscriber with your username and password.

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December 5, 2017

7 @ 7:00

Check the BMR comments section throughout the day for updates and helpful information.

1. Gold has traded between $1,266 and $1,277 so far today, touching a 5-week low…as of 7:00 am Pacific, the yellow metal is off $8 an ounce at $1,268…total known Gold ETF holdings continue to rise, up nearly 20% this year which significantly exceeds the increase in the Gold price…however, bullion is still on track for its best year since 2010 when it climbed 30%…Silver is down 15 cents at $16.14…Copper has slid 11 cents to $2.97, its lowest level in 2 months, while Nickel has fallen 21 cents to $4.94…Crude Oil is relatively flat at $57.42 while the U.S. Dollar Index has climbed one-quarter of a point to 93.33….

2. OPEC has shown strong compliance with the supply cut pledge with November output dropping by 300,000 bpd to its lowest since May, according to a Reuters‘ survey…however, rising U.S. Oil production presents a headwind for OPEC’s efforts and data last week showed U.S. Crude output increased to nearly 9.5 million bpd in September, approaching the high of 9.63 million bpd seen in 2015…drilling rig activity is also up recently…on a positive note, the latest U.S. inventory reports are likely to show a 3rd straight weekly drop in Crude stocks…analysts expect the reports from industry group American Petroleum Institute (API) and the government’s Energy Information Administration (EIA) to show Crude stocks fell by 3.5 million barrels…Oil prices are now lower than where they were prior to the confirmation of the OPEC deal, not surprising given the level of expectation that had built up ahead of last week’s meetings…speculative investors were also holding almost record-high net-long positions…however, the outlook for next year looks solid and Goldman Sachs this morning raised its Oil price forecasts for 2018 by about 5%…

3. Strong earnings growth is a key factor in propelling global equity prices higher…listed companies are at their most profitable on record after a bumper year of earnings growth…the earnings-per-share of a FactSet index of over 20,000 listed companies from around the world has now reached an average of $9.69, increasing nearly 19% in the last year…that is the fastest year-over-year rise since 2011, surpassing the late 2014 high of $9.55…while the FactSet data only stretches back to 2001, increased earnings in emerging markets like China, among other factors, mean that the per-share level has likely never been higher…meanwhile, the Citi Global Economic Surprise Index, which measures whether economic data are beating or missing analysts’ expectations, has seen its best run since 2010 this year in both emerging and developing markets…

4. There’s a growing pipeline of potential new discovery opportunities in the broader Eskay Camp…Pretium Resources (PVG, TSX) announced this morning that a comprehensive regional exploration program has resulted in the identification of 3 distinct areas that have the potential to host epithermal mineralization similar to the Valley of the Kings…several Gold and Silver epithermal targets have been identified in the American Creek zone located approximately 25 km southeast of the Brucejack mine…the American Creek valley is dominated by km-scale north-south structures and localized east-west stockworks, which host elevated Gold values of up to 62.5 g/t in rocks of the Lower Hazelton group, Unuk River formation, the same formation that hosts the Brucejack mine…geophysical conductors identified in the American Creek zone are supported by coincident pathfinder minerals and trace elements associated with epithermal mineralization…the Koopa zone, located approximately 30 km east-southeast of Brucejack, has returned high grades of Gold, Silver, Lead and Zinc in surface sampling with geochemical signatures similar to intrustion-related epithermal Gold deposits…finally, 15 km east of Brucejack, numerous high-grade boulders have been sampled at the Boulder zone…alteration, geochemistry and Upper Hazelton group rocks in the area do indicate the boulders are potentially VMS related…a final data analysis is under way to refine high-priority targets within these 3 areas for drilling in spring 2018…

5. North American equity markets have generally opened slightly weaker this morning, though the NASDAQ is up on a rebound in tech stocks…the Dow is off 42 points as of 7:00 am Pacific…in Toronto, the TSX has retreated 47 points while the Venture has eased off 2 points to 785…a strong support exists between 780 and 770…typically, the Index will find its low for December during the first half of the month and then begin a strong push higher immediately prior to Christmas…Cobalt prices are closing in on another new high, up 45 cents at $30.84, just 23 cents below the recent new decade high, and that’s helping to give the company with the only underground access in the northern Ontario Cobalt Camp another lift…Castle Silver Resources‘ (CSR, TSX-V) crews have been sampling on the first level of the Castle mine, targeting high-grade Cobalt veins as highlighted in news last Friday…more results are pending…

6. The Canadian Securities Exchange posted record trading results for the month of November with the turnover of 3.49 billion shares…this smashed the previous monthly record from November 2016 of 1.33 billion shares…on a year-to-date basis, the CSE has traded 13.03 billion shares of its listed companies, far exceeding last year’s record of 6.43 billion shares…meanwhile, the total value of all shares traded on the CSE so far this year is $4.74 billion, well ahead of the previous annual record of $1.55 billion traded in 2016….the CSE has also seen robust activity on the new listings and financings front. “A number of industry sectors have clearly caught the attention of the trading and investing communities interested in entrepreneurial companies,” commented Richard Carleton, CEO of the CSE. “We are delighted to see that the hard work of our issuer companies and the CSE team is paying off to the degree that it has over the last several weeks. With a strong group of prospective issuers in its pipeline, we are confident that the CSE will continue to bring compelling investment opportunities to investors in the coming months.”

7. Cboe Global Markets is leaping ahead of CME in an effort to become the first to launch bitcoin futures…Cboe announced this morning that it’s launching futures trading in the cryptocurrency beginning Sunday, Dec. 10, making the Chicago-based exchange the first to give investors a new way to wager on, and against, the booming new market. “Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure,” stated Ed Tilly, Chairman and CEO of Cboe Global Markets…

The Template For The Next 10% Move In Garibaldi Resources

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