July 25, 2019
7 @ 7:00
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1. Gold has traded between $1,414 and $1,434 so far today…as of 7:00 am Pacific, bullion is down $10 an ounce at $1,415…Silver, taking a slight breather, has retreated 15 cents to $16.42…flows into Silver-backed ETFs have been unprecedented…ETFs tracked by Bloomberg registered inflows of more than 1,900 tonnes in the first 3-and-a-half weeks of July, which is 4 times as much as all of June…inflows last month were just under 470 tonnes, which had been the highest monthly tally in years…“The last time there was a monthly inflow on even nearly that scale was over 13 years ago, when the first Silver ETFs were launched,” Commerzbank noted…Nickel has slipped 26 cents to $6.37…Copper is steady at $2.71 while Zinc is unchanged at $1.10…Crude Oil has added 49 cents a barrel to $56.37 while the U.S. Dollar Index has slipped one-fifth of a point to 97.54…the European Central Bank signaled today that it’s preparing to cut short-term interest rates for the first time since early 2016 and possibly restart its giant bond-buying program, a major policy shift aimed at insulating the euro zone’s wobbling economy against international headwinds…the ECB said in a statement today that it expects to keep its key interest rate, currently set at minus 0.4%, at its current level or lower through the first half of 2020, a clear signal that it is planning a rate cut…crucially, the central bank also said its staff would examine “potential new net asset purchases” in an effort to push up persistently low inflation…the ECB aims to keep inflation just below 2% but it has fallen short of that target for years…the only answer for the EU is better fiscal policy, just as President Trump was able to lift the U.S. economy out of its slow-growth Obama years when interest rates were much lower than they are now…if liberals only knew how to create wealth as well as they know how to redistribute it…of course, U.S. Democrats have run even further to the left, embracing a wacky socialist Green New Deal put forward by AOC and her gang, virtually ensuring a Trump landslide victory in 2020…
2. Trouble at Tesla? Tesla (TSLA, NASDAQ) shares plummeted at the open this morning (off 12%) after a worse-than-expected loss and yet another major management change cast fresh doubts on the electric-car maker’s future…despite delivering a record number of vehicles in the 2nd quarter, Tesla lost $1.12 a share, a bigger deficit than any analyst projected…while CEO Elon Musk is hoping to earn a profit in the 3 months ending in September, he told shareholders he’ll prioritize other goals…then, for the 2nd time already this year, Musk dropped a bombshell about a senior executive role change on a Tesla earnings call…co-founder J.B. Straubel, who’s been with Tesla since before the billionaire CEO joined the board 15 years ago, is leaving the chief technology officer job and becoming an adviser…the weak results and Straubel’s step back risk undermining Musk’s bid to sustainably make money building and selling electric cars…Tesla’s stock was down 20% for the year before this morning’s fall…
3. Marathon Gold (MOZ, TSX) has cut 4.5 g/t Au over 41 m (99 m to 140 m, true width estimated at 85%) and 10.3 g/t Au over 11 m (164 m to 175 m) in drill hole VL-19–719 along the Main zone corridor of its Leprechaun deposit where the high-grade core has been extended over a distance >600 m…drilling is now complete at Leprechaun and a new resource estimate is expected before the end of this quarter…“Main zone intersections continued to expand the higher grade mineralization along much of the strike length of the Leprechaun deposit and drilling from the hanging wall has confirmed mineralization away from the Main zone that will help to reduce the strip ratio,” stated Phillip Walford, President and CEO…MOZ is up 3 pennies at $1.25 as of 7:00 am Pacific…
4. Continental Gold (CNL, TSX) has drilled 40.2 m grading 6.4 g/t Au, including 2.3 m @ 57.1 g/t (hole BUSY424, 176.9 m to 217.1 m, close to true width) along with other high-grade results from the eastern portion of the Yaragua system at its 100%-owned Buritica Project located in western Antioquia, Colombia…notably as well, drill hole DYR0289 returned 5 m grading 243.4 g/t Au including 1 m @ 1,297.3 g/t (60.6 m to 66 m)…the company plans to drill up to 73,500 m in 2019, consisting of approximately 55,000 m of capitalized definition drilling and approximately 18,500 m of exploration drilling targeting high-grade in its BMZ4 zone…“Although still at a relatively early stage, BMZ4 is proving up to be an exciting new discovery and we have outlined a continuous vertical zone on the eastern margin of the Yaragua system, a location which at present hosts no mineral resources or reserves, yet is located within 50 m of existing underground development. We anticipate incorporating BMZ4 into future mine plans and will be looking to design wider stopes with potential to use bulk-style mining, including transverse extraction using primary and secondary stopes,” commented CEO Ari Sussman. “With 10 rigs currently in operation, we will remain very active during the final stretch of our on-schedule construction targeting first Gold pour in H1 2020“…CNL is up a nickel at $4.08 in early trading…
5. The Dow is off 142 points through the first 30 minutes of trading…just over 50 companies are reporting quarterly profits today, including tech and retail giants Amazon (AMZN, NASDAQ) and Alphabet (GOOGL, NASDAQ) after the close of trading…about a third of S&P 500 companies have reported 2nd quarter earnings so far…of those companies, 75% have posted a better-than-forecast profit, according to FactSet…overnight in Asia, Japan’s Nikkei 225 reached a 3-month high during intra-day trading before fading into the close, while stocks around the region ground to multi-month highs amid hopes that next week’s face-to-face meeting between U.S. and China trade representatives will lead to a much-anticipated breakthrough in the on-again/off-again negotiations…in Toronto, the TSX is 77 points lower…how stupid could these guys be?: CannTrust Holdings (TRST, TSX) CEO Peter Aceto appeared in a promotional video, published on its Youtube account in late February, filmed outside an unlicensed cannabis grow room (the subject of a growing scandal) at the company’s Pelham, Ontario, facility…the video shows Aceto chatting with a plant manager outside a room full of cannabis plants…the plants can be seen through what appears to be a plastic wall with metal hinges – on one occasion, the production manager gestures toward the plants in the grow room to emphasize a point…5 former employees who spoke to the Financial Post identified the room in the video as RG8 or Range 8, noting that its plastic walls were a distinguishing feature…the Venture, which has climbed in 7 out of 8 sessions as it nears an important breakout above 600, is up another 2 points at 595…technical indicators show increasing accumulation in Canada Cobalt (CCW, TSX-V) which is on the cusp of a potentially explosive breakout above a short-term down wedge from the spring…CCW is unchanged at 28 cents as of 7:00 am Pacific…Benchmark Metals (BNCH, TSX-V) has been granted a 5-year work permit for exploration and drilling at its Lawyers Gold-Silver Project in north-central British Columbia…the new work permit encompasses an expanded scope and scale to explore existing and new targets across the project area…drilling is in progress…
6. OceanaGold (OGC, TSX) has reported fully diluted per share adjusted earnings of $0.03 on 1st half 2019 consolidated production of 254,972 ounces of Gold and 7,871 tonnes of Copper, including Q2 production of 129,290 ounces of Gold and 3,961 tonnes of Copper…net profit in Q2 was $15.3 million vs. $27.7 million in Q1, putting the stock under some pressure in early trading on a retreat from its 200-day moving average…1st half 2019 consolidated All-In Sustaining Costs were $1,073 per ounce (U.S.) on total sales, with Q2 AISC a little higher…on a more positive note, the company reported significant improvement in its Haile operations with a quarter-on-quarter production increase of 45%, unit cash cost decrease of 39% and AISC decrease of 23%…Mick Wilkes, President and CEO said, “We are very pleased with the performance of our operations in the 2nd quarter, particularly at Haile where we had a significant improvement from the previous quarter. Organic growth continues to be a major catalyst for the company and our growth projects are advancing well. I’m very pleased to announce the start of development of the Martha Underground, which will ramp-up over the course of the year. Exploration drilling across our operational footprint continues to yield solid results particularly at Waihi and WKP, which further increases our confidence in delivering significant resource growth”…
7. Companies ramping up for the highly anticipated cannabis edibles market will find some products nixed by government regulations, with Quebec banning cannabis chocolates, jujubes and other sweets…less than 5 months before edibles are expected to hit store shelves, Quebec said yesterday that it would ban cannabis products that could appeal to minors, such as cannabis candies, confections and desserts, including chocolate…the move could keep some food and beverage companies from selling their products in the province…Cannabis companies eyeing the edibles market, which Deloitte values at about $2.7 billion a year, have already started preparing to stock shelves with desserts and candies…Canopy Growth (WEED, TSX; CGC, NYSE) partnered with Hummingbird Chocolate to produce cannabis-infused chocolate…the federal government said last month it would not allow the sale of food and beverages that could appeal to young people but would assess products on a case-by-case basis…Ottawa will legalize edible products on October 17, but it will take at least another 60 days for products to hit the shelves…
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July 24, 2019
7 @ 7:00
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1. Gold has traded between $1,418 and $1,430 so far today…as of 7:00 am Pacific, bullion is up $10 an ounce at $1,427…investors are continuing to pile into Silver exchange-traded funds, with ETF holdings since the start of June rising by more than the amount of metal normally mined throughout the world in an entire month…“Holdings in Silver-backed ETFs surged 818.8 tonnes yesterday, the biggest daily increase in data compiled by Bloomberg since 2006,” said commodities brokerage SP Angel…“Investors added to Silver ETFs for a 12th straight day, bringing total known assets to a record 18,315 tonnes”…the metal has been outperforming Gold lately, as reflected by a declining Gold/Silver ratio…Commerzbank noted, “It seems as if Silver was kissed awake 2 or 3 weeks ago when the technically important 100-and 200-day moving averages held firm. Ever since, the price has been rising almost continuously”…analysts cited “unabated and very high buying” demand from investors…Silver is up another 20 cents to $16.57 as of 7:00 am Pacific…Nickel has jumped 19 cents to $16.61…Copper is up 2 cents at $2.72 while Zinc is a penny higher at $1.11…Crude Oil has climbed 50 cents to $57.36 while the U.S. Dollar Index has slipped one-tenth of a point to 97.61…
2. Russia’s Gold reserves topped the $100 billion mark in July as Gold prices rose and the country’s central bank continued to buy the yellow metal, according to the bank’s latest news release…the Russian central bank bought another 597,000 ounces or 18.67 tonnes of Gold in June, which put its total Gold holdings at 2,208 tonnes as of July 1 or $100.3 billion…Moscow has been actively buying up Gold this year, adding more than 96 tonnes since the beginning of 2019…Russia bought 200,000 ounces in May, 550,000 ounces in April, 600,000 ounces in March, 1 million ounces in February, and 200,000 ounces in January…during the last decade, Russia’s Gold reserves have gone from 2% to 19% as of the end of 2018 Q4, according to World Gold Council data…the WGC has been pointing to an overarching trend towards Gold, noting that central banks around the world purchased a total of 651.5 tonnes of bullion last year – the largest amount since 1971…“What is more interesting to understand in the case of Russia is not just these large numbers, but the trend. Emerging market central banks have been buying Gold fairly consistently since 2010…because central banks are looking to diversify their reserves, they are looking for safety and Gold provides that to them,” World Gold Council director of investment research Juan Carlos Artigas told Kitco news at the beginning of April…
3. Cannabis sector’s “Bre-X moment?”: CannTrust Holdings (TRST, TSX) took another tumble this morning after a report that executives knew the company was growing pot in unlicensed rooms well before before government regulators unearthed the violation…the company’s shares dropped as much as 20% at the open…the Globe and Mail report cited internal emails showing CannTrust Chairman Eric Paul and CEO Peter Aceto were informed about the breach approximately 7 months before Health Canada raised the issue…it’s the latest setback for the Vaughan, Ontario-based producer which has seen its shares drop by more than half since the company said July 8 that the federal regulator gave a non-compliant rating to its greenhouse in Pelham, Ontario, forcing it to halt sales of nearly 30,000 pounds of pot…the company was found to have grown the crop in 5 unlicensed rooms between October and March, and CannTrust employees were also found to have provided inaccurate information to the regulator…the company has launched an investigation into the breach and told the Globe and Mail that it expects to complete it within days…it filed a response to Health Canada on July 17, the company said earlier this week, and is awaiting the regulator’s response…Aceto said regulators were also inspecting the company’s Vaughan facility in addition to its Pelham greenhouse…investors are weighing the risk of CannTrust losing its growing license, with sales and shipments of its products on hold…for the benefit of the industry, Health Canada has to make an example out of CannTrust…
4. Vancouver police say they’ve busted a pair of illegal cannabis oil facilities, “shutting down a multi-million dollar drug operation”…Police said officers executed a pair of search warrants at the 2 warehouses in an industrial area, facilities they say were being used as “butane honey oil labs“…investigators believe operators used the labs to extract THC and produce high-potency oils and concentrates, which were sold to rogue dispensaries and on the black market…in a media release, VPD Const. Steve Addison described the facilities as “very large and sophisticated illegal operations. Although cannabis can now be legally purchased from government-regulated and approved retailers, we will not tolerate anyone who tries to cash in by breaking the law and putting the public at risk,” he said…Police seized cannabis products including oils, balms, edibles, shatter and shake, in addition to lab equipment, said Addison…under the Cannabis Act, using organic solvents such as butane to extract THC is not allowed…Police say that’s because such solvents are highly volatile, and pose a danger of explosions…Addison said police expect to recommend multiple charges once the investigation wraps…
5. Great Bear Resources (GBR, TSX-V) has drilled 5.87 g/t Gold over 12.1 m (includes 0.60 m @ 73.3 g/t, true width estimated at 80%) at its 100%-owned Dixie Project in the Red Lake Camp…the high-grade cut in DL-049 confirms recently predicted high-grade structural Gold controls in the Dixie Limb zone…Chris Taylor, President and CEO of Great Bear said, “When I first heard of the Dixie Project almost 10 years ago, what we now call the Dixie Limb was the only known significant Gold zone on the property. At the time, I was told it was a 4 g/t average Gold occurrence. We now know that there are also higher grade Gold zones developed along the 600-m strike length of the target. When we began defining a significant swarm of Gold-bearing quartz veins at the adjacent Hinge Zone, we analyzed drill data at the Dixie Limb and predicted that veins parallel to the Hinge Zone could also intersect it. Our drilling has confirmed that steeply-plunging high-grade Gold occurs at and near these intersections, and that these intersections are priority drill targets within the Limb. We will continue to drill these zones to define their number, size, Gold endowment, and extent to depth”…
6. The Dow is off 97 points through the first 30 minutes of trading…the NASDAQ is on the cusp of a new all-time high as earnings from Texas Instruments lifted chipmaker stocks at the open and helped shake off regulatory concerns facing Big Tech…the earnings season is off to a good start…about a quarter of S&P 500 companies have reported Q2 earnings so far…of those companies, 78% have posted a better-than-expected profit, according to FactSet data…in Toronto, the TSX is 35 points lower while the Venture has added 3 points to 592 after a 6-session winning streak was snapped yesterday…Seabridge Gold (SEA, TSX) has secured a non-brokered private placement from a single purchaser for 1 million common shares of the company at a price of $17.02 per share for gross proceeds of $17.02 million…no commissions are payable on this transaction…who was it?…the PP is expected to close by the end of next week…Eskay Camp juniors are among the most active on the Venture this morning…Garibaldi Resources (GGI, TSX-V) is trading above $2 a share for the first time since September of last year…northwest of Nickel Mountain, Crystal Lake (CLM, TSX-V) continues to heat up after a confirmed technical breakout through Fib. resistance at 37 cents…CLM is preparing to drill at Burgundy Ridge, an exciting early-stage discovery aided by significant glacial retreat with multiple “hot spots” over a wide and expanding area…first-ever drilling last year with an RC rig (4 shallow test holes) produced broad intervals of Copper-Gold mineralization and included confirmation of a previously unmapped high-grade intrusive unit featuring 2.6% Copper plus other metals near the bottom of the last hole between 118 and 119.5 m)…surface sampling has returned high-grade Copper, Gold, Silver and Zinc…CLM is up half a penny at 39 cents through the first 30 minutes of trading…CLM neighbor Etruscus Resources (ETR, CSE), which has been flying under the radar after listing on the CSE earlier this year, has plenty of explosive upside potential…ETR is active on the ground and preparing for drilling at its Rock ‘N Roll Project…Tudor Gold (TUD, TSX-V) is a penny higher at 57 cents while Metallis Resources (MTS, TSX-V) has added 3 cents to 98 cents…
7. Treasury Secretary Steven Mnuchin said today that the Justice Department is right to be looking into Amazon’s practises as part of its anti-trust review of big technology companies…“I think if you look at Amazon, although there are certain benefits to it, they’ve destroyed the retail industry across the United States so there’s no question they’ve limited competition,” Mnuchin told CNBC’s “Squawk Box”…“I think it’s very good that the Attorney General is going to look into this. I think it’s an important issue and I look forward to him reporting back to the President and hearing his recommendations,” said Mnuchin…the Justice Department stated yesterday that it’s opening a broad anti-trust review of big technology companies, sending shares of Amazon, Alphabet and Facebook lower in off-hours trading…the DOJ said it is looking into how major online platforms have “achieved market power” and how their practices may have “reduced competition, stifled innovation, or otherwise harmed consumers”...at the company’s annual shareholder meeting in May, Amazon chief Jeff Bezos said “large entities deserve to be inspected and scrutinized”…
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July 23, 2019
7 @ 7:00
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1. Gold has traded between $1,413 and $1,427 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,425…holdings of the largest Gold-backed ETF, the SPDR Gold Trust, rose 0.6% yesterday from Friday, while the largest Silver-backed ETF, the iShares Silver Trust, rose 2.6% during the same period…holdings in the Silver ETF have climbed about 10% so far this month…Silver, up another 15 cents at $16.48, continues to push higher following its best week since July 2016…the long-term Silver chart is pointing to a hugely significant breakout above a multi-year downtrend line…Nickel is up 4 pennies at $6.45…Copper is off slightly at $2.70 while Zinc is down a penny to $1.09…Crude Oil prices are flat at $56.25 despite increased tensions in the Persian Gulf while the U.S. Dollar Index has shot up nearly a half a point to 96.69…global stocks are getting support from expectations that the ECB and the Federal Reserve will soon cut interest rates…the ECB is seen cutting rates by 10 basis points on Thursday, with the U.S. central bank expected to lower rates by 25 basis points at the end of the month…Boris Johnson, one of the biggest voices in the Brexit movement, handily won the Conservative Party leadership race today and will become the U.K.’s next Prime Minister…President Trump, who publicly backed Johnson on several occasions during the leadership race, congratulated him via Twitter saying, “He will be great!“…Iran, which continues to stir up trouble, should be careful…
2. The International Monetary Fund has trimmed its forecast for global economic growth again as U.S.-China trade tensions continue, Brexit worries linger and inflation remains muted…the global economy is expected to expand by 3.2% in 2019, the fund said in a report released this morning…the revised figure is 0.1 percentage points lower than the IMF had forecast in April and is 0.3 percentage points below the fund’s growth estimate at the start of the year…“Risks to the forecast are mainly to the downside. They include further trade and technology tensions that dent sentiment and slow investment; a protracted increase in risk aversion that exposes the financial vulnerabilities continuing to accumulate after years of low interest rates; and mounting disinflationary pressures that increase debt service difficulties, constrain monetary policy space to counter downturns, and make adverse shocks more persistent than normal,” the fund said…
3. High-grade Silver in the Golden Triangle: Dolly Varden Silver (DV, TSX-V) has cut 26.5 m (24.9 m estimated true thickness) grading 385.4 g/t Ag (DV19–165) in the Chance target area of its Dolly Varden Property…within this intercept are 5 m (4.70 m estimated true thickness) grading 1,606 g/t…also at the Chance target, hole DV19–166 returned 20.65 m (10.33 m estimated true thickness) grading 233 g/t Ag…Gary Cope, President & CEO, says; “The high-grade Silver intercepts in the Chance Target area are very encouraging as they are outside of the current mineral resource estimate. In viewing the Dolly Varden Property as a whole, it should be noted that there are multiple Silver deposits and high-grade Silver targets within a 5 km radius”…the Chance target is in the same Hazelton Group stratigraphic rocks and along the same potassic alteration zone as the Torbrit mine deposit…Chance lies 4 km north of the Torbrit mine, 2.2 km NNE of the Wolf deposit and 1 km SE of the Ace-Galena target…DV is up 3 pennies at 35 cents as of 7:00 am Pacific…
4. Amex Exploration (AMX, TSX-V) has confirmed a 2nd high-grade Gold target, the Gratien Gold zone, just 1.5 km to the west of the Eastern Gold zone (EGZ) at its Perron Project near Rouyn-Noranda…to date, Amex has intersected visible coarse Gold grains in several drill holes from Gratien…results from the 1st hole (PEG-19–65) of this new zone were released this morning and were highlighted by 1.45 m grading 67.5 g/t Au (including 0.65 m @ 145.5 g/t) between 109.4 m and 110.85 m…“The Gratien Gold zone is 100% accretive to the Eastern Gold zone discovery,” commented Jacques Trottier, Amex Chairman…“By applying the same structural model that we used to discover the Eastern Gold zone, we have identified an additional high-grade Gold system at Perron. Having 2 drills give us flexibility to explore the Gratien target as well as other high priority targets that our model has generated while exploring and expanding the Eastern Gold zone”...meanwhile, fresh results also released this morning from the Eastern Gold zone featured 16.9 g/t Au over 10.1 m (including 260.2 g/t over 0.60 m) at a vertical depth of 260 m…“Drilling on the Eastern Gold zone continues to confirm our interpretation of a high-grade potentially underground minable system which is displaying remarkable continuity from surface down to at least the 475-m level. With these drill results we have increased the strike length of the HGZ of the Eastern Gold zone to 110 m of strike and down to a vertical depth of 475 m and both remain open,” stated Trottier…Amex had climbed for 6 straight sessions coming into this morning, so some profit-taking on the news was no surprise…AMX is off 9 cents at $1.11 through the first 30 minutes of trading…
5. Sun Metals (SUNM, TSX-V) reported this morning that it has completed 3,671 m of diamond drilling at its 100%-owned Stardust Project in north-central British Columbia…the 2019 program also includes surface electromagnetic (EM) and borehole electromagnetic geophysical surveys (BHEM) and continued geological studies with a budget of $5.4 million…diamond drilling was initiated in late May with 2 drills…to date, the drills have completed 9 holes with #10 and #11 in progress…the primary focus is to explore around the mineralization identified in drill hole DDH18-SD-421 which returned a 100-m interval of 2.5% Copper, 3 g/t Au, 52.5 g/t Ag and 5% Copper…diamond drilling to date has tested areas on section with DDH18-SD-421 and areas to the south where a BHEM survey completed at the end of the 2018 program identified an EM conductor…a total of 1,527 samples have been selected from the 9 completed holes and 1,264 samples have been shipped to the lab…in conjunction with the diamond drilling, large loop ground EM surveys are being conducted along strike of the phyllite/carbonate contact in the Canyon Creek skarn zone…a large loop grid has been completed over the Canyon Creek skarn zone with 25.3 line km of surveying completed and the crew is now working in the area to the south…BHEM surveys have also been conducted on 5 holes in this program…SUNM is up a penny at 56 cents in early trading…
6. The Dow has added 59 points through the first 30 minutes of trading…stocks rose this morning as investors cheered strong quarterly numbers from companies like Coca-Cola and United Technologies…more than 18% of S&P 500 companies have posted quarterly numbers this earnings season…of those companies more than 78% have reported better-than-expected profits, according to FactSet data…those companies have also seen their earnings grow by an aggregate of 3.6%…shares of Beyond Meat (BYND, NASDAQ) are sizzling again…they hit another record high this morning, days before the plant-based meat maker’s earnings report…the stock is up an incredible 720% since its initial public offering in May…in Toronto, the TSX has gained 51 points…SNC-Lavalin (SNC, TSX) has plunged to a 14-year low…the Venture, on a 6-session winning streak, has retreated 1 point to 593…as action in the Eskay Camp heats up, watch for a special BMR update by tomorrow morning…Barkerville Gold Mines (BGM, TSX-V) has cut 45.9 g/t Au over 5.2 m including 399 g/t over 0.50 m in exploration hole IM-19–043 located on the Island Mountain Mosquito Creek deposit and 95 m down plunge from an existing vein corridor…meanwhile, infill hole IM-19–029 intersected multiple vein corridors at Shaft Zone that assayed 14.9 g/t Au over 4.4 m including a sample of 55.9 g/t Au over 0.80 m…results released this morning demonstrate continuity of grade and widths within the modelled vein corridors, expansion of mineralization at depth and anomalous mineralization between the vein corridors…a total of 20,000 m in 47 holes were drilled at Shaft Zone and Mosquito Creek on Island Mountain in 2019…BGM is up half a penny at 38 cents on good volume in early trading…the stock’s 200-day SMA, currently 37.5 cents, is beginning to reverse to the upside…this, plus higher Gold prices, makes BGM a likely strong performer during the balance of the year…A.I.S. Resources (AIS, TSX-V) is up a penny to 7 cents on news that its initial trial run of 150 tonnes of manganese ore has arrived in Lima, Peru, and has been loaded into 6 containers for shipping next week…another 350 tonnes has been bagged at the mine site in Peru…the company’s short-term target is 10,000 tonnes per month…analysis of the 150 tonnes showed an average assay of 49.4% Mn…manganese ore has recently sold in the range of $233 – $250 per tonne (U.S.) per tonne for 44% Mn content…
7. Patterson Lake South update: Further to its successful Prefeasibility Study (PFS) outlining a hybrid (open-pit plus underground) mining option for the Triple R deposit on its Patterson Lake South (PLS) Property, Fission Uranium (FCU, TSX) has commenced a PFS to fully analyze an underground-only mining approach…with an estimated low OPEX of just $6.77 per pound (U.S.) and an IRR (pre-tax) of 29%, the existing open- pit/underground hybrid PFS has clearly highlighted the potential for highly economic and flexible production at PLS, according to Fission, as well as outlining significant mine growth opportunities…potential benefits of an underground-only approach include further-improved economics, even lower CAPEX and a reduced construction time…Roscoe Postle Associates has been engaged to complete the new PFS on the same resource as used for the original PFS (as reported April 15, 2019) and the company anticipates receiving the results of the study within a couple of months…Ross McElroy, President, COO, and Chief Geologist for Fission, commented, “With the only large-scale, near-surface, high-grade deposit in the Athabasca Basin, PLS has the rare advantage of flexibility when it comes to conventional mining methods. There is the obvious potential to mine it via a combination of open-pit and underground, and the considerable benefits of that approach have been clearly outlined in our recent Prefeasibility Study. However, as outlined in the PFS report, it may also be possible to develop a low operating cost underground-only mine – an approach which has its own strong advantages. By completing an underground PFS, we can evaluate the two approaches on equal terms and select the optimal path of advancement towards feasibility stage”…
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July 22, 2019
7 @ 7:00
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1. Gold has traded between $1,423 and $1,430 so far today…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,428…Gold prices rose to their highest in more than 6 years ($1,453) last week, supported by fresh tensions in the Middle East and expectations of a dovish Fed…Silver, coming off its best week since July 2016 with a gain of more than 6%, is up another 17 cents at $16.35…the long-term Silver chart is pointing to a hugely significant breakout above a multi-year downtrend line…Nickel has eased off again today after a sharp run…it’s down 20 cents at $6.40…Copper is off slightly at $2.73 while Zinc is flat at $1.10…Crude Oil prices are up modestly on concerns that Iran’s seizure of a British tanker last week may lead to supply disruptions in the energy-rich Gulf…tensions surrounding Iran have added to the already strong geopolitical risk premium…Iran’s Revolutionary Guards confirmed on Friday they had captured a British-flagged Oil tanker in the Gulf…Britain, beset by weak political leadership, continues to weigh its next moves after a recording emerged showing the Iranian military defied a British warship when it boarded and seized the ship…this Iranian aggression in the world’s most important waterway was the latest escalation in 3 months of confrontation with the West that began when new, tighter U.S. sanctions on Iran took effect at the start of May…meanwhile, Iranian bank officials are making an about face and are backing an “indignized digital money” tied to Gold that will be mined under the permission of the rogue nation’s Central Bank…WTI is up 42 cents this morning at $56.05 while the U.S. Dollar Index is relatively unchanged at 97.18…
2. Reuters reports that Chinese firm Tsingshan Holding Group has been buying large quantities of Nickel on the London Metal Exchange (LME) to supplement its own output because stainless steel production in China didn’t fall as expected, contributing to the recent big rise in the metal’s price…Tsingshan also apparently started to worry about top producer Indonesia banning shipments of ore from 2022…analysts say Tsingshan will need more than 400,000 tonnes of Nickel in 2019 compared with the 250,000+ tonnes it has access to…an industry source says the firm’s 300 series stainless steel output in China in the 1st half of 2019 was up 25% year-on-year…the 300 series typically uses 8.0 to 8.5% Nickel compared with 200 series stainless steel with only 1.0 to 2.5% Nickel, and 400 series which contains no Nickel…nearly 70% of global Nickel consumption, estimated at 2.4 million tonnes this year, is accounted for by stainless steel mills, a majority of which are in China…Wood Mackenzie analyst Sean Mulshaw estimates China’s stainless steel output in the 1st half of this year at 14 million tonnes, up 11% from the first 6 months of last year…Mulshaw expects China’s output to climb 8-9% this year to 28-29 million tonnes out of a global total of 52-53 million tonnes, a 4% gain from 2018…higher stainless steel output and stronger than expected demand for Nickel have pushed benchmark prices on the LME to above $15,000 a tonne, their highest since late June last year and a gain of more than 25% since early last month…Nickel prices are up about 40% so far this year…they will need to push even higher to incentivize new projects around the world to meet growing demand from the fast-growing electric vehicle sector…
3. This can only be good for Gold: The White House and congressional Democrats have moved close to a budget deal that would raise the U.S. debt ceiling for 2 years, according to a report this morning from CNBC…an agreement to prevent the U.S. from hitting its borrowing limit and stop government funding from lapsing is “near final” and remaining talks relate to “technical language issues”…the developing deal would suspend the debt ceiling through July 31, 2021….it would also permanently end the sequester, automatic across the board spending cuts…a sequester would have taken effect in January without congressional action…the budget agreement would include parity between increases in defense spending and domestic, non-defense outlays – a priority for House Speaker Nancy Pelosi…it would also have about $75 billion in spending offsets, measures conservatives have backed…lawmakers have been scrambling to strike a deal before they leave for their August recess…Treasury Secretary Steven Mnuchin warned that the U.S. could run out of cash to pay its bills by September, setting up the potential for default on the federal debt…meanwhile, the government faces another partial shutdown down if Congress cannot pass a spending bill by September 30…
4. K92 Mining (KNT, TSX) has drilled 6.7 m (6.09 m true width) grading 120.4 g/t Au, including 1.06 m (0.96 m true width) @ 660 g/t Au in the Kora North extension of its Kainantu Gold mine in Papua, New Guinea…that intercept in KMDD0162 highlighted results released this morning for the latest 11 diamond drill holes completed from both surface and underground into the Kora North deposit…John Lewins, K92 CEO, stated, “The latest results continue to show the very high continuity of the K1 and K2 lodes with K92 drilling now having shown a vertical extent of Kora North of almost 700 m. The whole Kora-Kora North-Eutompi system has now been shown to have a vertical extent in excess of 1,100 m, while the known strike is over 1,000 m. Importantly, the system remains open both at depth and along strike”…there are 5 diamond drill rigs now operating at the project, 2 surface rigs and 3 underground rigs, with the program expected to continue into 2020…KNT is up 23 cents at $2.58 as of 7:00 am Pacific…
5. The Dow has added 59 points through the first 30 minutes of trading…in Toronto, the TSX has gained 42 points with the Gold Index up another 2 points at 239.41 (best level since the summer of 2016)…SNC-Lavalin (SNC, TSX) is under pressure in early trading…the struggling construction and engineering firm, a favourite of Justin Trudeau, has withdrawn its forecast for 2019, citing significantly lower results as it considers options for its resources unit and exits fixed-price contracts…the Venture, on a 5-session winning streak, continues to push higher as it breaks out above a short-term downtrend line…a powerful move through 600 appears to be in the works…higher metal prices are helping, along with leadership from Northwest British Columbia where over $100 million is being poured into exploration and drilling programs…Eskay Camp stocks are leading the way again this morning…Garibaldi Resources (GGI, TSX-V) is up 13 cents at $1.90…GGI’s 50-day moving average (SMA) has crossed above its 200-day for the first time since late July 2017, immediately ahead of its huge run during a summer of discovery at Nickel Mountain…GGI neighbor Metallis Resources (MTS, TSX-V) soared 50% last week and is up a penny at 91 cents as of 7:00 am Pacific…Crystal Lake Mining (CLM, TSX-V) has hit a fresh 9-month high of 42 cents as crews prepare for the start of first-ever diamond drilling at the company’s Burgundy Ridge discovery…Dr. Peter Lightfoot calls the geology at Burgundy Ridge “spectacular”…overlooked CLM neighbor Etruscus Resources (ETR, CSE), active on its 160 sq. km Rock ‘N Roll Project contiguous to CLM’s Newmont Lake Project, is coming to life, up a penny at 41 cents…ETR, a new listing earlier this year, sports a market cap of just $8 million, unusually low for a quality Eskay Camp play with a highly attractive share structure and an historic deposit…they were the first company in the district on the ground this spring as they work toward the start of a drill program…record volume has come into Tudor Gold (TUD, TSX-V), closing in on a fresh 2-year high, after Eric Sprott bumped up his position at the end of last week with a $3 million private placement at 45 cents a share…Aben Resources (ABN, TSX-V) is threatening to push through resistance in the mid-20’s…Azimut Exploration (AZM, TSX-V) announced this morning that it has started new exploration programs on 4 Gold properties under the Azimut-Soquem strategic alliance in Quebec’s James Bay region…after canceling a planned $125 million offering last week, The Flowr Corp. (FLWR, TSX-V) has arranged a $43.5 million bought deal, led by GMP Securities, at $4.10 per unit…
6. Common sense prevails: The National Energy Board has cleared the way for construction to resume on portions of the Trans Mountain pipeline expansion project by revalidating all the orders and decisions it enjoyed before permits were overturned last year…the NEB announced late Friday that “decisions and orders issued prior to the Federal Court of Appeal decision will remain valid,” meaning that 73% of the detailed pipeline route has been approved and 64 of 98 pre-construction conditions for the project have been fully satisfied…among those previously issued and now still-valid orders are clearances for Trans Mountain Corp. to begin construction on “portions of the pipeline route,” on temporary infrastructure sites along the route and at the Westridge marine terminal in Burnaby…the NEB did not say when full construction would begin on the 590,000 barrels per day pipeline project to twin the existing line between Alberta and metro Vancouver…“I think this is a positive step moving in the direction of getting an incredibly important piece of infrastructure for this entire nation built,” stated Explorers and Producers Association of Canada President Tristan Goodman…“We need this pipeline developed and we need construction to start in a timely fashion”…
7. Microsoft (MSFT, NASDAQ) is investing $1 billion in Elon Musk’s OpenAI to build artificial intelligence that can tackle more complex tasks, the companies announced this morning…through the partnership, the companies will build new Azure AI supercomputing technologies and Microsoft will become OpenAI’s exclusive cloud provider…the technology they plan to build, artificial general intelligence (AGI), will apparently be able to solve more complex problems that AI currently is capable of…“Modern AI systems work well for the specific problem on which they’ve been trained, but getting AI systems to help address some of the hardest problems facing the world today will require generalization and deep mastery of multiple AI technologies,” this morning’s news release stated…“OpenAI and Microsoft’s vision is for artificial general intelligence to work with people to help solve currently intractable multidisciplinary problems, including global challenges such as climate change, more personalized healthcare and education”…
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July 21, 2019
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