September 12, 2019
September 11, 2019
7 @ 7:00
1. Gold has traded between $1,486 and $1,495 so far today…as of 7:00 am Pacific, bullion is up $6 an ounce at $1,491 on this 18th anniversary of the 9/11 Islamist terrorist attacks that killed nearly 3,000 people…Silver is up 2 pennies at $18.00…an exceptionally strong support band for Silver exists between $17.75 and $17.25 with the metal touching $17.68 intra-day yesterday…Nickel is a penny higher at $8.24…the 7th annual Asian Nickel conference kicked off this morning in Jakarta, Indonesia, a fast-growing hub for the global Nickel market…the 2-day event brings together Nickel, stainless steel and NPI producers, end-users, battery makers, auto manufacturers, technology providers, stainless steel scrap companies, traders, analysts and other industry experts to explore the latest supply-demand dynamics, pricing trends and growth drivers in the Asian Nickel market…Copper, Zinc and Cobalt are all relatively flat at $2.61, $1.06 and $15.99, respectively…Crude Oil has added 40 cents a barrel to $57.80 while the U.S. Dollar Index has jumped one-third of a point to 98.66…focus is turning to tomorrow’s ECB monetary policy meeting…ECB President Mario Draghi is expected to roll out some significant stimulus…market expectations for a September rate cut by the Fed, which meets next Tuesday and Wednesday, are at 91%, according to the CME Group’s FedWatch tool…China has made a positive overture to the U.S. regarding trade, announcing that it will exempt certain U.S. products from tariffs for 1 year…President Trump, basking in the glow of an important Republican congressional win in a special election in North Carolina last night, continued his verbal assault this morning on the Federal Reserve, which he blames for slowing the economy, tweeting that the central bank should cut interest rates to zero or even set negative interest rates….“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt…INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term…We have the great currency, power, and balance sheet…The USA should always be paying the lowest rate. No Inflation!…It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing…A once in a lifetime opportunity that we are missing because of “Boneheads”…Prime Minister Justin Trudeau has asked Gov. Gen. Julie Payette to dissolve Parliament, triggering the official launch of Canada’s federal election campaign…the election will be held October 21 and will have major implications for the country’s resource sector…
2. Some American companies in China are speeding up their move away from the mainland as increasing tariffs continue to hurt their businesses…that’s according to a survey released today by the American Chamber of Commerce in Shanghai…more than a quarter of the respondents – or 26.5% – said that in the past year, they have redirected investments originally planned for China to other regions…that’s an increase of 6.9 percentage points from last year, the AmCham report said, noting that technology, hardware, software and services industries had the highest level of changes in investment destination…
3. Alberta Premier Jason Kenney has launched a promised legal challenge against Ottawa’s contentious environmental assessment bill that threatens Canada’s resource sector…Kenney said the province has started a constitutional challenge against Bill C-69 which came into force August 28 and overhauled the regulatory regime that oversees applications for major resource projects…“This is not about jobs in Alberta, although that is critical,” Kenney said…“It’s about the rule of law, it’s about the dream of an economic union, it’s about respect for the fundamental law of the land, the constitution of Canada”…industry groups earlier this year proposed more than 100 amendments to Bill C-69, which would have amounted to a sweeping restructuring of the bill…several Conservative and some Independent Senators sought to have those amendments accepted by the House of Commons, but climate change alarmist and Minister of Air, Land and Water Catherine McKenna ultimately rejected almost all of the proposed changes…Bill C-69 substantially broadens the review process for major projects by expanding public hearings, incorporating new considerations around gender and environment, and introducing an “early-stage” review process, among other things…the National Energy Board was also replaced by the “Canada Energy Regulator” as part of Bill C-69…
4. The left’s smear campaign against Alberta’s Oil Industry, much of it American-funded, isn’t being ignored anymore, thanks to a new government in the province, and that has rankled the likes of Amnesty International…the group is now warning Premier Jason Kenney that his government’s fight against Oil and gas industry foes puts human rights at risk…the head of the group’s Canadian branch outlined his concerns in an open letter yesterday that highlighted Alberta’s public inquiry into foreign funding of environmental groups and its $30 million war room to combat critics through social media, advertising and the press…“Amnesty International is deeply concerned that these initiatives undermine and violate a range of Alberta’s human rights obligations, under the Canadian Charter of Rights and Freedoms and international law, including freedom of expression, freedom of association, the rights of Indigenous peoples and gender equality,” wrote secretary general Alex Neve…
5. The Dow is up 18 points through the first 30 minutes of trading…Apple (AAPL, NASDAQ) added to its gains from the previous session, giving the tech sector a lift, after unveiling a slew of new products including 3 new iPhones along with a new Apple Watch and a TV subscription service…Apple also showcased a gaming subscription called Apple Arcade…in Toronto, the TSX is 22 points higher…the TSX Gold Index is finding support around the 240 area, as expected, after a healthy 11.3% correction over the last 4 sessions…specifically, an exceptional support band ranges from about 240 to the high 220’s…S&P Dow Jones Indices is adding Kirkland Lake Gold (KL, TSX) and removing Husky Energy (HSE, TSX) when it rebalances the S&P/TSX 60 on September 23…the Venture, which has climbed in 9 out of the past 13 sessions (though it doesn’t feel like it), is up 2 points at 584…the Index will gain traction to the upside once it’s able to conquer key resistance at 600…
6. Vsblty Groupe Technologies (VSBY, CSE) has been selected as a preferred vendor for Seneca Lab’s industry-leading visual media product solutions…Seneca is a division of Arrow Electronics (ARW, NYSE), a Fortune 109 company with more than 20,000 employees worldwide..Kevin Cosbey, Business Development Manager for Arrow Electronics Global Services, said Seneca is launching a first-of-its-kind integration software, named Maestro, preloaded on digital media players, which can be ordered complete with CMS and/or with software analytics that provide audience measurement…“For this program 4 vendors that offer CMS solutions and 3 that offer audience measurement have been selected. VSBLTY is the only Seneca partner offering solutions in both the CMS and analytics categories,” Cosbey pointed out, “and we are delighted to have VSBLTY’s state-of-the-art technology to enhance Seneca’s product line”…the digital signage market is exploding worldwide…according to a recent research study, the global digital signage market size was estimated at $18.5 billion in 2018 and is anticipated to reach $31.7 billion by 2025 at a CAGR of 8.0% from 2019 to 2025“…VSBLTY Co-founder & CEO Jay Hutton added, “It is widely known how carefully Seneca vets its vendors so we consider it a high honor to be selected for its global content management and audience measurement products. VSBLTY technology provides enhanced customer engagement and audience measurement using machine learning and computer vision. Its VisionCaptor and DataCaptor software combines motion graphics and interactive brand messaging with first of its kind Facialanalytics”…VSBY has formed an important bottom on the charts and is up half a penny at 35 cents through the first 30 minutes of trading…
7. Licensed cannabis producers in Canada are standing by the safety of their upcoming vape pen products in the wake of a spate of lung illnesses that has left 6 dead and affected close to 500 people in 33 states south of the border…both cannabis and nicotine vape pens have been linked to the mysterious lung condition in the U.S., with one of the deaths reportedly tied to cannabis oil bought in a legal pot shop in Oregon, according to the Oregon Health Authority…with a month to go before cannabis vape products become legal in Canada, major industry players who are positioning to supply the new market appear confident that Canada’s highly regulated legal cannabis system is equipped to ensure the safety of consumers who vape…it is still unclear what exactly is causing hundreds of vapers to develop respiratory problems, but a statement released by the U.S. Food and Drug Administration pointed at vitamin E acetate – used as a suspension fluid in some cannabis vape pens – as the possible culprit…
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September 10, 2019
BMR Evening Alert!
7 @ 7:00
1. Gold has traded between $1,487 and $1,502 so far today…as of 7:00 am Pacific, bullion is off $1 an ounce at $1,497…Silver has rebounded 12 cents to $18.12 after dipping as low as $17.68 overnight…an exceptionally strong support band for Silver exists between $17.75 and $17.25…Nickel, Copper, Zinc and Cobalt are all relatively flat at $8.16, $2.60, $1.04 and $15.99, respectively…Crude Oil has added 53 cents a barrel to $58.38 while the U.S. Dollar Index is up slightly at 98.35…this week’s key event which could allow Gold stocks to rebound strongly is the European Central Bank rate decision on Thursday…ECB President Mario Draghi will test the composure of global policy makers as he unleashes what’s expected to be a barrage of stimulus to shore up economic growth…the monetary easing will likely feature an interest rate cut that widens the difference between borrowing costs in the euro area and elsewhere…that will potentially affect foreign exchange markets – and risk the ire of critics such as President Trump…while Draghi has a mantra ready that his institution strives for price stability and doesn’t target the euro, that won’t stop Trump or others from accusing the ECB of fighting a “currency war”…that kind of talk is usually bullish for Gold…Trump has a history of citing the weakness of the euro when piling pressure on the Federal Reserve to cut its own rates…the Fed meets next Tuesday and Wednesday..
2. Nickel ore output in the Philippines, one of the world’s top two producers of the material for stainless steel and batteries, rose 3% in the 1st half of 2019 despite mine shutdowns, according to government data released today…output was capped as half of the country’s mines were closed for maintenance or environmental reasons…the Philippines sells most of its Nickel ore to top buyer China…it produced 11.31 million dry metric tonnes of the material between January and June, compared with 11.01 million tonnes in the same period last year, the Mines and Geosciences Bureau (MGB) said…16 of the Philippines’ 31 Nickel mines were shut in the 1st half for either maintenance or suspension of operations for environmental and other offences…some but not all of those suspended mines are expected to become operational again, lifting the country’s overall output at the same time as Indonesia slaps a ban on Nickel ore exports…still, the Nickel market remains tight with increasing demand at current price levels…
3. GoGold Resources (GGD, TSX) has cut 24.4 m of the Los Ricos vein starting 119.9 m downhole averaging 127.4 g/t Ag and 1.3 g/t Au (3 g/t AuEq)…this interval in drill hole LRGG-19–035 also included 9.8 m @ 258 g/t Ag and 3 g/t Au (6.4 g/t AuEq)…meanwhile, drill hole LRGG-19–034 intersected 20.1 m of the vein grading 177.2 g/ and 0.92 g/t Au (3.28 g/t AuEq)…“We are continuing to see wide zones of Silver-Gold mineralization on both the hanging wall and footwall of the historical stopes as we test both down dip and along strike in the Main Area of the Los Ricos zone,” stated President and CEO Brad Langille…“We have been able to re-enter and channel sample some of the historical workings known as El Troce located 400 m to the northwest of El Abra and have moved the drill to test this target”…GGD is up a penny at 71 cents as of 7:00 am Pacific…
4. The Dow is down 70 points through the first 30 minutes of trading…in Toronto, the TSX has slid 15 points…the TSX Gold Index has corrected more than 10% over the past 3 sessions to the top of a strong support band around 240 that stretches to the high 220’s…Osisko Gold Royalties (OR, TSX) is buying troubled Stornoway Diamond (SWY, TSX) in partnership with its creditors as the Quebec-based gem miner files for bankruptcy protection…the agreement stems from a June LOI and will see Osisko and other creditors assume all debts and liabilities of Stornoway while continuing to operate its Renard diamond mine in Quebec by supplying $20 million in working capital…the Venture is unchanged at 583…Amex Exploration (AMX, TSX-V) has cut 32.2 m grading 7 g/t Au, including 1.20 m @ 178 g/t Au, at a vertical depth of approximately 500 m (PE-19–83) in what was previously called the Low Grade Zone at its Perron Project near Rouyn-Noranda…it has been renamed the Denise Zone…this high-grade intersection shares several characteristics with the High Grade Zone (HGZ) as it is hosed by quartz-carbonate-pyrite veins with free Gold along the contact of a gabbro crosscutting the sonic rhyolite host rock…meanwhile, the HGZ has been expanded by more than 55 m at depth and 35 m westward…results released from the HGZ this morning included 15.6 m grading 3.05 g/t Au (PE-19–76) and 11.1 m @ 3.40 g/t at vertical depths of 300 m and 360 m, respectively…AMX is up slightly on the news…Balmoral Resources (BAR, TSX-V) has resumed drilling at promising Area 52 at its Fenelon Property, part of the company’s larger Detour Gold Trend Project in Quebec…Area 52 covers an extensive, untested segment of the Sunday Lake deformation zone, the southern extension of the recently identified Area 51 Corridor, and the intersection of these 2 Gold bearing structural zones…4 drill holes were completed during the 1st phase of drilling in Area 52 testing a variety of Gold targets…visible Gold mineralization was observed at shallow depths in 2 of the 4 holes while visible Gold has already been noted in the 1st hole of the current follow-up program…final assay results from Phase 1 drilling are expected before the end of the month…
5. Discovery Metals (DSV, TSX) announced this morning that it’s mobilizing for Phase 1 diamond drilling program on its newly acquired and 100%-owned Cordero Project located in Chihuahua State, Mexico…drill permits are in place and Discovery will begin its program in the coming days, approximately 5 weeks ahead of the anticipated commencement date…Discovery’s plan is to drill approximately 30,000–35,000 m over the next 12 months with the focus of 1) delineating and discovering the highest-grade phases and domains of the mineralized system; and (2) testing new high priority areas…Taj Singh, President and CEO, stated, “In just a few short weeks we have made great strides at Cordero. We have integrated our teams, progressed well through our review of historic drilling, planned our first holes, and accelerated the start-up of our drill campaign. We are very excited to be aggressively exploring one of the world’s largest silver projects against a backdrop of rising silver prices and we are confident that our high-grade and high-margin approach at Cordero will add significant value”…Cordero, one of the largest undeveloped Silver deposits in the world, is located on the eastern edge of the Sierra Madre Occidental mountains within the northern extent of the Central Mexican Silver Belt…
6. Alexco Resource (AXU, TSX) has drilled 8.15 m (true width) averaging 1,414 g/t Ag (45.5 ounces per tonne), including 2 discrete veins (1.51 m true width @ 153 ounces per tonne, and 0.42 m true width @ 325 ounces per tonne), at a depth between about 580 m and 590 m below he northeast portion of its Bermingham deposit in the Yukon’s Keno Hill Silver district…the 2019 drill program was designed to follow up prior drill results indicating potential for deeper mineralization at Bermingham with a specific aim to test for the presence of mineralization in a deeper stratigraphic zone, which also hosts the adjacent historic Hector Calumet deposit…success in the 2019 Bermingham deep drilling program will now drive a much larger follow up program, the timing and drill-technology for which is under review…shallower drilling has also been completed adjacent to the Bermingham Northeast Zone with the aim of expanding the mineral resource adjacent to anticipated mining areas…
7. We can largely thank government policies in Canada for this – some of the country’s largest Natural gas producers and drilling companies could soon be booted from the main Toronto Stock Exchange index amid a share price route…after a bruising summer in which stocks in the Oil and gas sector have fallen to historic lows, as many as 7 companies are in danger of being removed from the S&P/TSX Composite Index…on the list of of potential deletions are Kelt Exploration, Peyto Exploration and Development, NuVista Energy, Torc Oil and Gas, Birchcliff Energy and drilling companies Precision Drilling and Ensign Energy Services…their depressed market capitalizations have fallen to the point where they no longer meet the threshold required for the 239-member composite index managed by index provider S&P Global…the deletions would exacerbate the damage already inflicted on the sector because it would preclude major passive funds, that track major indices, from buying the stocks…
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September 9, 2019
7 @ 7:00
1. Gold has traded between $1,504 and $1,529 so far today…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,509…Silver has slid 13 cents to $18.09…an exceptional support band exists between $17.75 and $17.25 on any further pullback which would keep Silver firmly within its powerful primary uptrend…Nickel has jumped 11 cents to $8.14 while Copper, Zinc and Cobalt are all steady at $2.61, $1.05 and $16.10, respectively…Crude Oil has added 89 cents a barrel to $57.41 while the U.S. Dollar Index has fallen one-fifth of a point to 98.25…a Dow Jones Newswires report over the weekend stated that China’s official economic numbers are probably not accurate and likely are overly hyped by the government…the report said China’s overall economic growth (GDP) is probably about half of what the official numbers say, or actually around 3%, on an annual basis...this also comes as no big surprise – the Trudeau government has embarked on a massive spending spree (targeting everything except the resource sector, of course) ahead of the October election…according to a National Post report this morning, for August alone the Liberal government’s spending tally was a whopping 4,545 announcements worth approximately $12.8 billion…by comparison, the Harper government, in the month leading up to the 2015 election. announced spending of approximately $1.4 billion over the course of 605 announcements…the current government has shown repeatedly that it has no respect for Canadian taxpayers’ dollars…it’s a classic tax-and-spend regime, run by a Prime Minister and cabinet without managerial or financial discipline or experience – yet Canadians could decide to reward them with another 4 years in power…what would that do to the resource sector in this country?…
2. China continued the path of diversification in August as it bought Gold for the 9th straight month, adding another 6 tons to bring its yearly total to nearly 100 tons, according to the latest data released by the People’s Bank of China…Gold holdings stood at 62.45 million ounces in August compared to July’s 62.26 million…China’s renewed interest in Gold has coincided with a massive rally in Gold prices as well as an escalating trade battle with the Trump administration, one that China doesn’t seem likely to win…central banks around the world have been upping their Gold purchases in 2019 after buying a total of 651.5 tonnes last year – the highest level since 1971…this trend, which is not going away anytime soon, has been a key driver in this new bullion bull market along with global monetary easing and de-dollarization moves among emerging market central banks…
3. This week’s key event is the European Central Bank rate decision on Thursday…ECB President Mario Draghi will test the composure of global policy makers as he unleashes what’s expected to be a barrage of stimulus to shore up economic growth…the monetary easing will likely feature an interest rate cut that widens the difference between borrowing costs in the euro area and elsewhere…that will potentially affect foreign exchange markets – and risk the ire of critics such as President Trump…while Draghi has a mantra ready that his institution strives for price stability and doesn’t target the euro, that won’t stop Trump or others from accusing the ECB of fighting a “currency war”…that kind of talk is usually bullish for Gold…Trump has a history of citing the weakness of the euro when piling pressure on the Federal Reserve to cut its own rates…the Fed meets next Tuesday and Wednesday…
4. The Dow is up 36 points through the first 30 minutes of trading to begin the new week…AT@T (T, NYSE) jumped at the open after after Paul Singer’s Elliott Management announced it owns $3.2 billion in the underperforming telecom giant’s stock…the hedge fund said it sent a letter to the company’s board and argued for ways AT&T can “improve its business and realize a historic increase in value” (changes at CNN would be a good start)…the activist investor said its AT&T stock purchase is one of the firm’s largest investments ever…in Toronto, the TSX is off 26 points…Canopy Rivers (RIV, TSX) began trading on the TSX this morning, graduating from the Venture…this milestone was achieved within less than 1 year of the company’s initial go-public transaction…Osisko Mining (OSK, TSX) has cut 72.3 g/t Au over 12.7 m (762.2 m to 774.9 m, true width estimated at 55% to 80%) through infill drilling at the Lynx deposit at Windfall…Osisko President and CEO John Burzynski commented, “The continued flow of strong results from Lynx is making us rethink our approach to the Windfall deposit. We continue to see good continuity of high-grade mineralization at Lynx and now Triple Lynx, and both zones remain open for expansion down plunge. The Lynx extension and Triple Lynx are adding important ounces and these two recent discoveries are once again demonstrating the importance of the Lynx corridor in the Windfall mineralized system”…Golden Valley Mines (GZZ, TSX) and Strategic Metals (SMD, TSX-V) have quietly hit new 52-week highs…SMD has reported the discovery of more Gold-rich veins a its Mount Hinton Property in the Yukon, located in the southern portion of the Keno Hill district near Alexco Resource’s (AXU, TSX) mill at Keno City…Strategic’s continuing multi-phase program is focused on the Granite Creek basin which forms the headwaters of a productive placer creek…
5. Sun Metals (SUN, TSX-V) announced plans this morning to add a 3rd diamond drill rig and expand to a winter program at its 100%-owned Stardust Project in north-central British Columbia…positive results from the 2019 exploration campaign confirm the 421 zone Copper-Gold skarn mineralization is open to the north and south…the company views Stardust as a large, high-grade polymetallic Copper-Gold system…plans are underway for installation of an all-season winterized camp and additional roads to facilitate an extended exploration campaign…the camp is expected to support a workforce of up to 40 workers, which will be more than adequate to support a 3 drill rig year-round exploration campaign…Donald McInnes, Chairman of Sun Metals, stated, “The continued discovery of very impressive size and grade intervals in the 421 zone in the 2019 campaign are exceeding our expectations. Timely advancement of the exploration team’s understanding of the Stardust mineralizing system is critical to the execution of our corporate vision. By adding a 3rd drill and installing an all-season camp we will be able to accelerate further discovery of the 421 zone”…
6. Pan American Silver (PAAS, TSX, NASDAQ) has elected to operate the next phase of exploration at Radius Gold’s (RDU, TSX-V) high-grade Gold-Silver Amalia Project in Chihuahua, Mexico, and will reinitiate work this month…the new program at Amalia will consist of 2,500 m of diamond drilling…the Amalia Project covers 9,450 hectares and is located 25 km SW of the historic Guadalupe y Calvo mining district in Chihuahua…Radius geologists discovered high grade epithermal Silver-Gold mineralization in several veins, vein breccias and disseminated zones over 3.5 km of strike length and a 600 m vertical interval following the trace of a large regional fault zone…an agreement to explore the Project with Pan American Silver was signed in July 2018…since then, 2 drill programs have been completed totalling 3,665 m in 15 holes, highlighted by 26 m of 7.1 g/t Au and 517 g/t Ag in drill hole AMDD18–009…
7. Japan Gold (JG, TSX-V) has made a second round of project acquisitions, as announced this morning, with the addition of 5 new Gold projects in the prospective southern and middle Kyushu epithermal Gold provinces…the projects cover prospective ground along strike of, or adjacent to, significant current and past producing Gold mines including the Hishikari, Kushikino, Yamagano, Okuchi and Bajo mines…the new projects comprise 21,058 hectares collectively…the Japanese Ministry of Economy, Trade and Industry has notified acceptance of the new applications giving Japan Gold priority over these areas and authorization to commence surface exploration…with the addition of these new projects, the company’s portfolio now includes 24 separate Gold projects within the major epithermal gold provinces of Japan…John Proust, Chairman and CEO, commented, “The acquisition of this coherent ground package in such a prospective address is a remarkable accomplishment. These new projects continue to provide outstanding exploration opportunities within the portfolio and the potential to create significant value for Japan Gold going forward”…
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September 8, 2019
Sunday Sizzler Report! (Part 1)