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1. Gold has traded between $1,492 and $1,525 so far today…as of 7:00 am Pacific, bullion is up $19 an ounce at $1,516 thanks to more monetary easing in the euro zone…Silver has jumped 11 cents to $18.20…an exceptionally strong support band for Silver exists between $17.75 and $17.25 which was successfully tested earlier this week…Nickel is up 7 cents at $8.18 as the 7th annual Asian Nickel conferences wrap up in Jakarta…Copper and Zinc are steady at $2.61 and $1.05, respectively, while Cobalt has climbed another 34 cents to a new multi-month high of $16.33…Crude Oil has slipped $1.38 a barrel to $54.37 while the U.S. Dollar Index is off one-fifth of a point at 98.49…President Trump has agreed to delay an additional increase in tariffs on Chinese goods by 2 weeks “as a gesture of good will”…the move has raised hopes among investors of a thaw in trade frictions between the world’s 2 largest economies, but Trump’s negotiating style is such that the Chinese should be very careful – if they don’t make some concessions over the coming weeks, the President will likely slam them hard and then escalate the trade battle to further force the Fed’s hand to cut interest rates…that’s a very Gold-bullish scenario…Trump sees any negatives from China trade issues being more than offset by the prospect of lower U.S. interest rates…
2. Stimulus forever from the ECB!…the European Central Bank (ECB) has announced a massive new bond-buying program in a bid to stimulate the ailing euro zone economy…the central bank’s quantitative easing (QE) program will entail 20 billion euros ($21.9 billion) per month of net asset purchases for as long as it deems necessary…the ECB also cut its main deposit rate by 10 basis points to -0.5%, a record low but in line with market expectations…it now expects interest rates to remain at their present or lower levels until it has seen its inflation outlook “robustly converge to a level sufficiently close to but below 2% within its projection horizon, and such convergence has been persistent”…in a news conference following the decision, ECB President Mario Draghi urged governments to take fiscal measures to supplement the central bank’s monetary stimulus and reinvigorate the euro zone economy…“In view of the weakening economic outlook and the continued prominence of downside risk, governments with fiscal space should act in an effective and timely manner,” Draghi said…nothing in the euro zone will change until the problem of high taxes, bloated governments and red tape is fixed…
3. Garibaldi Resources (GGI, TSX-V) has drilled its best hole yet east of the historic E&L deposit at Nickel Mountain near Eskay Creek – 86.5 m grading 1.9% Nickel and 1.3% Copper (plus Cobalt and precious metals) starting just 65 m downhole, including 18.2 m @ 7% Nickel and 3.8% Copper near the bottom of the hole (true width estimated at 80%)…EL-19–53 filled a gap in the northwest part of the Lower Discovery Zone (LDZ) which continues to build out…EL-19–53 is truly spectacular Nickel sulphide mineralization, as Dr. Peter Lightfoot noted, but the most important part of this morning’s news was actually drill hole EL-19–54 (assays pending) which cut a total of 142 m of mineralization including 8.9 m of massive sulphide…besides expanding the Upper Discovery Zone by 33 m to the west and the LDZ by 14 m to the west, EL-19–54 has confirmed the existence of a 2nd magma chamber, dipping to the southeast, around a depth of 300 m…for the first time, geologists are stating that they could be closing in on the Nickel Mountain “feeder” zone…something huge (the “source”) had to drive the incredibly rich massive sulphides that have bled into the sediments near-surface at Nickel Mountain…strategic new platforms have been built to allow crews to crosscut the known zones (this should produce the widest massive sulphide intercepts yet) and more effectively explore for new zones, especially in a “feeder” area…meanwhile, the E&L system is now confirmed to contain 11 separate metals…Nickel Mountain massive sulphides are “unusually enriched” with Rhodium, Iridium, Osmium and Ruthenium based on an analysis from several holes completed in 2017 and 2018…a “pure” style of mineralization with optimal processing characteristics, as Dr. Lightfoot has often talked about, with 11 different metals – these are believed to be the richest and most unique Nickel sulphides ever found on the planet…GGI, also powered technically by rising moving averages including the 50 and 200-day (the 200-day has recently reversed to the upside, a bullish development), is up 8 cents at $1.74 through the first 30 minutes of trading…the last half of September should prove to be hugely significant for Garibaldi with some majors also rumoured to be showing strong interest in what’s now unfolding at Nickel Mountain…
4. Ero Copper (ERO, TSX) provided a quarterly update this morning on its continuing exploration drill programs at its Vale do Curaca Property and its NX Gold mine, both located in Brazil…exploration drilling during the period was focused primarily on expanding recently announced discoveries as well as infill drilling ahead of the company’s updated NI-43–101 compliant technical report and mine plan for Vale do Curaca, expected to be completed early next quarter…high-grade massive sulphide mineralization continues to be encountered at the recently announced Siriema discovery, highlighted by hole FSI-42 that intersected 31.8 m grading 2.2% Copper including 5 m grading 5.6% Copper…near-surface drilling adjacent to the Vermelhos mine in the Vermelhos East Zone intersected 22.5 m grading 4.6% Copper including 8 m grading 7.8% Copper from 7.7 m downhole in hole FVS-418, one of the highest-grade intercepts drilled into the East zone to date…a grouping of holes in the Deepening Extension of the Pilar Mine intercepted high-grade mineralization, including the deepest known mineralized intercept drilled to date in hole FC47139 that intersected 7.1 m grading 6.5% Copper approximately 80 m below the previous known depth of mineralization at the Pilar mine…27 drill rigs are now operating throughout the Curaca Valley while 3 additional drill rigs are operating at the producing NX Gold mine to evaluate down-plunge extensions of vein systems…
5. The Dow is flat through the first 30 minutes of trading…in Toronto, the TSX is also relatively unchanged but there’s strength in the Gold sector…the TSX Gold Index has rebounded 8 points to 249 after finding support as expected around the 240 area…specifically, the main support band runs from 240 to the high 220’s…the Venture, which has climbed in 10 out of the past 14 sessions (though it doesn’t feel like it), is up 3 points at 590…the Index will gain traction to the upside once it’s able to conquer key resistance at 600…Gold Standard (GSV, TSX), which got its start on the Venture, has released a PFS on its Railroad-Pinion Project in Nevada’s Carlin trend…key highlights include a pre-tax net present value (NPV) of $302.1 million (U.S.) at a 5% discount rate and an after-tax NPV of $241.5 million at a $1,400 Gold price and a $17.11 Silver price, with a mineral reserve pit design based on a Gold price of $1,250 per ounce and a Silver price of $15.30 per ounce…average annual production would be 156,000 ounces per year over an initial 8-year mine life with initial capital expenditures of $194 million…OceanaGold (OCG, TSX) has cut 85 m grading 11 g/t Au as infill and exploration drilling continue at its Haile Gold mine in South Carolina…
6. Gran Colombia (GCM, TSX) produced 18,710 ounces of Gold in August, bringing the company’s total for the first 8 months of 2019 to 155,359 ounces, up 8% over the first 8 months of 2018…Gran Colombia’s trailing 12 months’ total Gold production at the end of August was 229,739 ounces, up 5% over 2018’s annual production…the company continues to expect that its annual Gold production for 2019 will range between 225,000 and 240,000 ounces…Lombardo Paredes, CEO of Gran Colombia, commenting on the company’s latest production results, said, “We remain on track to meet our increased production guidance for 2019. In August, we successfully ran the Maria Dama plant at Segovia using its expanded capacity and our development programs have opened up new areas within our company mines to maintain the increased processing rate. We are also making steady progress on our evaluation of the mine expansion opportunity at our Marmato Project and expect to file the preliminary economic assessment before the end of the year”…
7. Global Oil demand is weathering economic headwinds, the International Energy Agency (IEA) said today, buoyed by lower prices brought on by abundant supply as the U.S. briefly dethroned Saudi Arabia as the world’s top exporter…“With Oil prices currently about 20% lower than a year ago, there will be support for consumers,” the IEA said in its monthly report…“Booming shale production has allowed the U.S. to close in on, and briefly overtake, Saudi Arabia as the world’s top Oil exporter…in June, after Crude exports surged above 3 million barrels per day (bpd)“…the Paris-based agency maintained its estimate for growth in global Oil demand during 2019 at 1.1 million bpd and 1.3 million bpd for next year, assuming no further breakdown in U.S.-China trade talks and citing an easing of tensions around Iran…a rebound in U.S. production following Hurricane Dorian along with steep output growth from Brazil and the North Sea were set to drive production from outside OPEC up sharply, it added…
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