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September 30, 2018

Sunday Sizzler Report!

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The Week In Review And A Look Ahead!

With ideal weather conditions for the end of September/beginning of October in the Eskay Camp, multiple companies are “going for the gusto” in what should prove to be a fascinating 2018 exploration season stretch drive…

AltaGas Camp near the McLymont Creek Hydroelectric Plant, Eskay district (BMR photo).

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September 28, 2018

Daniel’s Den

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September 27, 2018

7 @ 7:00

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

1. Gold has traded between $1,183 and $1,199 so far todayas of 7:00 am Pacific, Gold is off $10 an ounce at $1,184 after the Federal Reserve hiked U.S. interest rates yesterday and hinted that more monetary tightening is on the way…Silver has retreated 13 cents to $14.16…Copper is down 3 pennies at $2.80, Nickel has slid 12 cents to $5.67 while Zinc is off a penny at $1.14…Cobalt is steady at $28.12…Crude Oil has added another 32 cents to $71.89 while the U.S. Dollar Index is flat at 94.29…as expected, the Fed raised interest rates for the 3rd time this year yesterday, and left intact its plans to steadily tighten monetary policy, as it forecast that the U.S. economy would enjoy at least 3 more years of growth…another rate hike is expected in December…the Fed’s action marks the first time it has lifted its benchmark rate above 2% since 2008…it’s also the first time in a decade the fed funds rate will rise above inflation, measured by the Fed’s preferred gauges which excludes volatile energy and food categories…so-called core prices rose 2% in July…

2. China’s net Gold imports via main conduit Hong Kong fell to their lowest this year in August as Beijing curbed import quotas for banks amid a trade tussle with the United States…imports via Hong Kong to China, the world’s top consumer of the metal, decreased by 29% to 31.857 tonnes in August from 44.802 tonnes in July, according to data from the Hong Kong Census and Statistics Department…that is the lowest since December 2017, when imports were at 31.221 tonnes…total Gold imports via Hong Kong fell 30% to 34.22 tonnes in August from 48.635 tonnes in July…the Hong Kong data, however, might not provide a full picture of Chinese purchases as Gold is also imported via Shanghai and Beijing…

3. Saudi Arabia, under pressure pressure from the Trump administration, is ready to put as much as 550,000 additional barrels onto the market, according to a report this morning from CNBC…the gains will come from about 200,000 barrels per day from its Kurais Oil field, as well as resumed capacity from some pipeline issues with the Manifa field…Riyadh decided against pressing for an official increase now as it realized it would not secure agreement from all producers present at the talks, some of which lack spare production capacity and would be unable to boost output quickly…estimates of how much Iranian Crude could disappear from the market once U.S. sanctions come into force on November 4 vary widely among the analyst community, from anywhere from 500,000 barrels per day (bpd) all the way to 2 million bpd…at its 2018 peak in May, Iran exported 2.71 million bpd of Crude Oil, equivalent to nearly 3% of daily global consumption…

4. This is what the Trudeau National Energy Program 2.0 has done:  Canadian Oil producers are missing out big-time on the latest bullish move in global Oil prices as the discount for domestic Crude flirts with all-time highs…“It has been ridiculous – it’s been outrageous, actually,” said Martin King, director of institutional research at GMP FirstEnergy, about the near-record discounts facing Canadian Crude oil production…while the West Texas Intermediate benchmark has steadily climbed over $71 a barrel, the main Canadian Oil benchmark has at times traded for less than half that price…Western Canada Select, a blend of heavy Oil barrels, was trading at a discount of $34.50 (U.S.) per barrel at mid-day yesterday, or roughly half of WTI prices…

5. The Dow has added 33 points through the first 30 minutes of trading…the U.S. Drug Enforcement Administration has classified a cannabidiol (CBD)-based drug made by UK-based GW Pharmaceuticals in its least restrictive category, setting the stage for commercial launch…known as Epidiolex, the new GW Pharmaceuticals drug uses CBD to help with the treatment of seizures stemming from 2 rare and severe forms of epilepsy…global mining giants Freeport McMoRan and Rio Tinto have struck a binding accord to sell a majority stake in the world’s 2nd-biggest Copper mine, Grasberg, to Indonesia’s state mining company for $3.85 billion…in Toronto, the TSX is 44 points higher as of 7:00 am PacificCameco (CCO, TSX) has jumped more more than $2 a share on news the company has beat the tax man – The Tax Court of Canada has ruled unequivocally in favour of Cameco in its dispute of the reassessments issued by the Canada Revenue Agency for the 2003, 2005 and 2006 tax years…the Venture is off 2 points at 705…the Flowr Corp. (FLWR, TSX-V) is strong again this morning in its 2nd day of trading on the VentureFSD Pharma (FSD, CSE) is the early morning volume leader on the CSE after news that Horizons ETFs Management (Canada) has added the stock to the Horizons Marijuana Life Sciences Index ETF…White Metal Resources‘ (WHM, TSX-V) channel sampling program campaign has been completed on priority targets on its Gunners Cove Gold property in Newfoundland…over 700 samples were collected and are in the process of being assayed…Romios Gold (RG, TSX-V) has hit a new 52-week high of 8.5 cents after announcing a $1 million private placement (above the market) which, among other things, will allow for first-ever drilling next month of the promising Burgundy Ridge target in the Eskay Rift (optioned this week to Crystal Lake Mining, CLM, TSX-V) as well as follow-up drilling at a recent massive sulphide Copper-Gold-Silver discovery on strike with Goldcorp’s (G, TSX) Musselwhite mine in Ontario…

6. Barkerville Gold Mines (BGM, TSX-V) is up in early trading on high volume after the company released results from the continuing 2018 Cow Mountain category conversion program at its flagship Cariboo Gold Project…results demonstrate continuity of high-grade Gold mineralization within vein corridors and included visible Gold in 5 holes – 28.9 g/t over 1.9 m (CM-18005), 30.6 g/t over 1.8 m (CM-18007), 24.7 g/t over 3.1 m (CM-18012), 109 g/t over 1.2 m (CM-18018), and 160.5 g/t over 0.85 m (CM-18029)…the ongoing drill program at Cow Mountain is designed to infill and expand high-grade Gold-mineralized vein corridors modelled in the May 2018 Cow Mountain resource estimate…vein corridors are defined as a high-density network of mineralized quartz veins within the sandstones…mineralized quartz veins on the Cariboo Gold Project are overall sub-vertical dip and northeast strike…these corridors have been defined from surface to a vertical depth of up to 300 m and remain open for expansion at depth and down plunge…Gold grades are intimately associated with vein-hosted pyrite as well as pyritic, intensely silicified wall rock haloes in close proximity to the veins…

7. Great Bear Resources (GBR, TSX-V) has cut 1.75 m grading 101 g/t Au, including 347 g/t over 0.5 m within a vein zone of 10.35 m of 18.2 g/t, at a vertical depth of only 75 m in the highest-grade results drilled to date at the Dixie Project…Gold in the “SLZ discovery” is hosted by “crack-seal” style veining typical of the Red Lake district that has placed higher grade Gold on both margins of the vein…the SLZ is a large target with potential for several km of strike length, according to Great Bear3 drill holes completed along 220 m of strike length of the new SLZ target all intersected Gold within a well-developed quartz vein system…meanwhile, at the DLZ target, which extends to the north of the SLZ and the Hinge Zone, continues to yield Gold results in all (100%) of the 32 drill holes completed by Great Bear along the 2.3 km of strike length that has been drilled to date (the target is geophysically defined as having over 10 km of potential strike length)…new results from the DLZ include deeper tests of the zone, returning 3.8 m of 6.3 g/t Au, including 0.60 m of 17.3 g/t, within a wider interval of 19 m of 3.1 g/t at 196 m vertical depth in hole DL-024elsewhere on the property, DHZ-005 was completed 100 m to the southeast of the Hinge zone to test the orientation of the regional D2 fold axis…it remained in the footwall basalt unit over its entire core length of 252 m and intersected 1.4 m of 1.2 g/t Au at 197 m depth…the company’s new 30,000-m, 150-hole drill program is now underway, and is expected to continue drilling through 2018 and 2019…targets to be drilled include the Hinge Zone, SLZ and DLZ, as well as a number of newly defined, highly prospective geological and structural targets across the project. Results will continue to be released in batches as received…

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September 26, 2018

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 $1,193 and $1,203 so far todayas of 7:00 am Pacific, bullion is up $3 an ounce at $1,202 as traders anxiously await today’s Fed announcement (11:00 am Pacific) and Jerome Powell’s news conference shortly thereafter…Gold remains stuck beneath technical resistance at its 50-day moving average (SMA) and its 4-month downtrend at $1,220…a key resistance band stretches from about $1,210 to $1,220Silver is off 5 cents at $14.38…Copper, Nickel and Zinc are up slightly at $2.84, $5.84 and $1.14, respectively, while Cobalt is back above $28 a pound at $28.12…Crude Oil has retreated 33 cents to $71.95 while the U.S. Dollar Index has added one-tenth of a point to 94.30

2. The Federal Reserve is prepared to raise short-term interest rates by a quarter percentage point after its 2-day policy meeting concludes today, the 8th such move since late 2015…officials will also present revised projections of future rate moves along with their outlook for inflation, employment and growth…the tone is likely to be hawkish with the Fed sounding more confident about the economic outlook…yesterday, U.S. consumer confidence surged to an 18-year high in September as households grew more upbeat about the labor market, pointing to sustained strength in the economy…

3. The Dow has added 52 points through the first 30 minutes of tradingSurveyMonkey (SVMK, NASDAQ) soared more than 60% in its market debut this morning after opening at $18.75 per share…the software company offers digital survey and data analytics services for enterprise and personal use…it priced its shares at $12 a piece last night…in Toronto, the TSX is 40 points higher as of 7:00 am Pacific while the Venture is off 2 points at 712…the Flowr Corp. (FLWR, TSX-V) began trading on the Venture this morning…this follows the recent completion by the company of both an oversubscribed $36 million capital raise and RTO of a capital pool company previously listed on the exchange…“This is an exciting day and important step toward our goal of becoming one of Canada’s top licensed producers,” said Vinay Tolia, Flowr’s CEO…Flowr was founded by MedReleaf’s Tom Flow and a team of industry pioneers, successful start-up executives and top industry scientists…the company’s purpose-built cultivation facilities are designed to generate high crop yields and produce premium and ultra-premium cannabis products, creating the potential for significant growth…FLWR opened at $4 and is trading at $5.71 as of 7:00 am Pacific

PUF Ventures (PUF, CSE) is puffing hard on the CSE this morning, up 42 cents at $1.37 on high volume, after announcing that it has signed a deal with Delta Organic Cannabis which provides for up to $40 million in investment at a price of $2.24 per PUF share for the development of a large-scale, commercial medical cannabis cultivation operation in Delta…the proceeds of the subscriptions shall be used exclusively to develop the Delta propagation facility consisting of 2.2 million sq. feet of illuminated greenhouse space and 1.7 million sq. feet of “ebb and flood” irrigation space…Romios Gold (RG, TSX-V) is coming back to life…shortly after announcing a deal with Crystal Lake Mining (CLM, TSX-V), Romios is carrying out a $1 million private placement (above the market) which, among other things, will allow for first-ever drilling next month of the promising Burgundy Ridge target in the Eskay Rift as well as follow-up drilling at a recent massive sulphide Copper-Gold-Silver discovery on strike with Goldcorp’s (G, TSX) Musselwhite mine in Ontario…more problems in Peru…Trevali Mining’s (TV, TSX) operations at the Santander mine have been temporarily halted as a result of an illegal blockade…protesters allege that Trevali has failed to satisfy its community investment obligations under its agreement with the Santa Cruz de Andamarca community…

4. The Vancouver Police Department (VPD) says it won’t be using the federally-approved Drager DrugTest 5000 as a screening device when recreational marijuana use becomes legal in Canada next month…speaking on CKNW’s Lynda Steele Show, police Chief Adam Palmer stated, “It’s not something that we’re going to be deploying here in Vancouver.  There may be other agencies in British Columbia that will deploy it, and other places in Canada, but our experts have looked at it, and it doesn’t meet our requirements so we’re going to pass on this one”…the VPD leader added that the device is quite bulky to carry and doesn’t always work properly in cold weather…traders who dumped Cannabix Technologies (BLO, CSE) in late July on news that the feds had approved the Drager DrugTest5000 got duped by mainstream news headlines and shoddy reporting (Liberal spin doctors feeding their media friends)…

5. Royal Nickel (RNX, TSX) has received proceeds of $8.4 million from the exercise of 19.4 million common share warrants at prices ranging from 24 cents to 50 cents per share…”This infusion, in addition to the $38 million in cash to be received from the sale of the previously announced 24,000 ounces of Gold recovered from the Fathers Day vein discovery, will allow the company to repay all of its debt and achieve a substantial net cash position,” said Mark Selby, President and CEO of Royal Nickel.  “This cash is expected to fully fund all corporate activities for the foreseeable future, including most importantly the upcoming exploration program at Beta Hunt. With exploration and development ongoing, we will continue to provide timely updates on this very important Gold discovery”…

6. First Cobalt (FCC, TSX-V) is firming up after releasing a maiden NI-43-101 mineral resource estimate this morning for its 100%-owned Iron Creek Cobalt Project in Idaho…the Inferred mineral resource is 29.6 million tons (26.9 million tonnes) grading 0.11% Cobalt equivalent (0.08% Cobalt and 0.30% Copper) under a base case scenario pit-constrained and deeper mineral resource…an alternative underground-only scenario results in 4.9 million tons (4.4 million tonnes) grading 0.30% Cobalt equivalent (0.23% Cobalt and 0.68% Copper)…the resource contains 45 million pounds (20,411 tonnes) of Cobalt and 175 million pounds (79,379 tonnes) of Copper for 62.9 million pounds (28,528 tonnes) of Cobalt equivalent…the resource is considered to be open along strike and at depth, with true widths between 10 m and 30 m…preliminary metallurgical testing concludes that simple flotation methods are applicable, yielding recoveries of 96% for Cobalt and 95% for Copper in rougher floatation…a 30,000 m drill program ongoing to double the strike length for an updated resource estimate planned for early 2019

7. White Gold (WGO, TSX-V) has encountered multiple high-grade surface samples along strike from its recent Vertigo discovery and has further expanded the footprint of the high-grade mineralized system…surface grab samples were taken on the Vertigo target along trend from the recently announced discovery hole (56.25 g/t Au over m within a broader intercept of 17.3 g/t Au over 10.7 m from m depth) as well as on the undrilled Suspicion target area 4.1 km along trend from Vertigo on the company’s JP Ross Property…the samples are interpreted as being in-place and representative of the bedrock below due to the unglaciated nature of the area…highlights include 140 g/t Au, 135 g/t Au and 133 g/t Au over a 685-m strike length on the Vertigo target with 7 samples grading over 10 g/t Au, 11 samples over 1 g/t au and 5 samples encountering Silver exceeding 100 g/t…

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September 25, 2018

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 $1,198 and $1,204 so far todayas of 7:00 am Pacific, bullion is up $3 an ounce at $1,202Gold’s lacklustre performance since the spring has prompted commodity analysts at RBC Capital Markets to downgrade their outlook over the next 15 months, though they still see prices averaging better than $1,300 in 2019…in an updated forecast, the bank now expects Gold prices to average the 4th quarter at $1,266 an ounce, down from its previous estimate of $1,281 an ounce…at the same time the analysts lowered their full-year average forecast to $1,279, and next year’s average to $1,338 an ounce, down from the previous estimate of $1,351Silver has rallied 22 cents to $14.45…base metals are mostly flat with Copper at $2.83, Nickel at $5.84 and Zinc at $1.14…Crude Oil has shot up 36 cents a barrel to $72.44 while the U.S. Dollar Index is off one-fifth of a point at 94.06Commerzbank on the Fed meeting that concludes tomorrow:  What Fed Chair Powell says at the subsequent press conference will have far more of a bearing.  Some Fed representatives had raised the prospect in recent weeks of further rate hikes, which has been pressuring Gold.  If Powell now indicates a more gradual approach, on the other hand – the key rate is nearing what is viewed as a neutral level, after all – the Gold price is likely to rise”…

2. Crude Oil prices surged to a new 4-year high today, catapulted by imminent U.S. sanctions on Iranian Crude exports and the apparent reluctance of OPEC and Russia to raise output to offset the potential hit to global supply…the Oil price is on course for its 5th consecutive quarterly increase, the longest stretch of gains since early 2007, when a 6-quarter run led to a record high of $147.50 a barrel…the U.S. will target Iran’s Oil exports with sanctions from November 4, with Washington applying pressure on governments and companies around the world to fall into line and cut their purchases…at the same time, the International Energy Agency says the Oil market is tightening and forecasts strong Oil demand growth of 1.4 million barrels per day (bpd) this year and 1.5 million bpd in 2019

3. Aurora Cannabis (ACB, TSX) capped a busy year by seeing its revenues more than triple to $19.1 million in the 4th quarter…the Edmonton-based company says revenues for the 3 months ended June 30 were up from $5.9 million a year earlier…the gross margin on medical cannabis was 74%, up from 58% in the 4th quarter of 2017…the increase was mainly due to higher average selling price per gram of dried cannabis and a higher proportion of cannabis Oil sales…CEO Terry Booth stated, Aurora made substantial progress toward our strategic goal of becoming the global scale and margin leader in the cannabis industry, establishing a vertically integrated company with a broadly diversified product offering with a large global footprint.  “Our high-pace, consistent execution has enabled us to complete a number of transformative acquisitions, bringing together industry-leading companies in terms of scale, quality, efficiencies, plant and medical science, product development and innovation, brands, and international distribution…Booth added, “We anticipate accelerated revenue growth during fiscal 2019. We have invested heavily in our organizational capabilities, including sales, marketing, and corporate talent and capacity, to ensure we will continue to drive strong and sustainable long-term growth”ACB is up 82 cents at $13.09 through the first 30 minutes of trading…

4. The Dow has added 28 points through the first 30 minutes of trading…gains in banks and yields come as the Fed begins its 2-day monetary policy meeting with analysts widely expecting the central bank to raise rates by a quarter point now and again in December…in Toronto, the TSX is 68 points higher…Barrick Gold (ABX, TSX, NYSE) is pushing to the upside in the wake of yesterday’s big announcement that it’s acquiring Randgold Resources (GOLD, NASDAQ) for $6 billion in an all-share transaction…Barrick shareholders would own two-thirds of the company while Randgold would control the rest, though Randgold CEO Mark Bristow would steer the ship as President and CEO (the market likes that) of the world’s largest Gold company…the deal is expected to close early next year…Royal Nickel (RNX, TSX) has pulled back this morning after surging to a new multi-year high of $1.05 yesterday when the company reported that its new exploration drive on the 14 level at its Beta Hunt mine has intercepted and recovered visible coarse Gold, providing further proof of concept that the structures containing the Father’s Day vein discovery extend 200 m (25 m up dip and 180 m along strike) above the Father’s Day vein discovery…technical teams at Beta Hunt are applying the model for these high-grade coarse Gold structures to historical drilling and mapping, and have identified a number of targets for follow-up with the potential to continue to extend this discovery…the Venture is off 2 points at 719 as of 7:00 am PacificChemesis International (CSI, CSE) has just announced that it will be entering into the cannabis-infused beverages market (sports drinks, teas, sodas, coffees, shots, water, and other health and wellness beverages)…the company says it will leverage licences and assets it has recently acquired to build out production, storage and a transportation network for its cannabis-infused beverages…Chemesis will be using the recently acquired Desert Zen fulfilment facility for this expansion and anticipates products to be launched in the 1st quarter of 2019CSI has jumped 14 cents to $1.67 as of 7:00 am Pacific

5. Garibaldi Resources (GGI, TSX-V) has drilled into more exceptionally high-grade Nickel with assay results from the first 8 holes of this year’s program (EL-1815 to EL-1822) more than doubling the strike length of the Discovery zone (EL-1836 is now in progress)…EL-1816 cut 7.9% Ni and 3.9% Cu within a broader interval of 34.1 m @ 2.4% Ni and 1.5%, extending the EL-1714 massive sulphide zone 50 m to the southeast…meanwhile, EL-1822 cut 4 separate intervals within the top 150 m, including 12.5 m @ 4.2% Ni and 2.7% Cu, to extend the massive sulphide zone 42 m to the west-southwest…even more importantly, there is now powerful evidence based on newly-exposed surface mineralization that the deposit, like Seabridge Gold’s (SEA, TSX) world class Iron Cap Gold-Copper porphyry deposit to the southeast, extends beneath a large receding icefield that’s 1.6-km-long and up to 1 km wide…massive sulphide outcrops, a large massive sulphide boulder train, and taxitic gabbro (a key indicator) are forming a “ring” around the horseshoe-shaped Nickel Mountain icefield, suggesting that much of the Golden Triangle’s first magmatic Nickel-Copper-rich massive sulphide system has been well-hidden from explorers until now…traders’ “sell-on-news” mentality drove GGI lower yesterday and again this morning, though this also occurred after first assay results last year…

6. Crystal Lake Mining (CLM, TSX-V) has secured an impressive position in the Eskay Rift…the company has completed a deal with Romios Gold (RG, TSX-V) to acquire a 100% interest in the 436 sq. km Newmont Lake Property, immediately south of the NewmontTeck Galore Creek JV, north of the Snip mine and northwest of other key projects in the broader Eskay Camp…significantly, the promising Burgundy Ridge target on the southern of the Newmont Lake package will be drilled for the first time in October…it features a rapidly receding icefield that has exposed extensive Copper-Gold-Silver-Zinc mineralization over hundreds of meters…meanwhile, the property also hosts a Gold deposit at Newmont Lake with historic intercepts featuring 55 g/t Au, 40 g/t Ag and 0.97% Cu over 11 m; 21 g/t Au and 1.4% Cu over 8.4 m; 26.4 g/t Au and 21.3 g/t Ag over 14 m; and 753 g/t Au and 462 g/t Ag over 0.44 m…most drilling was only completed to a depth of 100 m and only about 20% of the drill core from about 150 holes in the 1980’s was ever assayed…Newmont Lake has multi-commodity (including Nickel) potential with Dr. Peter Lightfoot, Crystal Lake’s technical adviser, adding: “The combination of mapping programs by the B.C. Geological Survey and operators going back to the 1980’s, coupled with new airborne electromagnetic methods, places the Newmont Lake Project in a whole new light.  It is strategically positioned to achieve a place in the world’s next great mining camp”

7. Aben Resources (ABN, TSX-V) is under pressure in early trading after releasing fresh results from continuing drilling at its Boundary North Zone…FK1812 returned 5.1 g/t Au over 12 m…FK1813 cut 23.3 g/t Au over 2 m while FK1817 intersected 10.6 g/t over 3 m…to date, final analytical results have been received for 3,000 m of a total projected 10,000 m…step-out drilling has successfully expanded the North Boundary Zone along an interpreted NE-SW trend, from the high-grade Gold mineralization reported in earlier holes…grades and widths surely need to improve but it’s still early in the game…North Boundary remains open in all directions with 36 drill holes completed to date…assays are pending for 27 of these holes…meanwhile, a new airborne geophysical survey reveals numbers untested target areas…ABN has strong technical support around 20 cents…

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