October 31, 2019
Daniel’s Den
7 @ 7:00
Visit the BMR comments section for updates and helpful information throughout the day!
1. Gold has traded between $1,496 and $1,511 so far today…as of 7:00 am Pacific, the yellow metal is up $15 an ounce at $1,510, getting a lift from fresh U.S.-China trade concerns and an accommodative Fed…Bloomberg News reported this morning, citing unnamed sources, that Chinese officials have been casting doubt over the possibility of a long-term trade deal with the United States…the report put stock futures into reverse and gave precious metals a boost…meanwhile, it didn’t hurt yesterday that Fed Chairman Jerome Powell said, “We would need to see a significant move up in inflation before we could consider raising rates”…given how muted inflation is at the moment, and how the Fed has consistently over-estimated inflation prospects in recent years, it may be a long time before we see another rate increase based on Powell’s criteria…yesterday, the Fed cut rates by a quarter point for the 3rd time since July but began to downplay expectations of further cuts for now…Silver appears to be in the midst of confirming a key breakout above $18 an ounce as we’ve been predicting…it’s up 27 cents at $18.10 as of 7:00 am Pacific…Nickel, Copper, Zinc and Cobalt are all relatively unchanged at $7.63, $2.64, $1.15 and $16.10, respectively…Crude Oil is off 69 cents a barrel at $54.37 while the Dollar Index, under some technical pressure, has slipped one-third of a point to 97.31…world stocks edged to their highest in over 20 months yesterday…MSCI’s world equity index, which tracks shares in 47 countries, rose 0.1% to its highest level since early February 2018…a slew of U.S. economic data was just released within the last hour or so…consumer spending rose marginally in September, in line with expectations, while wages were unchanged…the Commerce Department said that consumer spending, which accounts for more than two-thirds of U.S. economic activity, gained 0.2% last month as households stepped up purchases of motor vehicles and spent more on healthcare…data for August was also revised up to show consumer spending climbing 0.2% instead of the previously reported 0.1% rise…meanwhile, the Core Personal Consumption Expenditures Index (PCE), the Fed’s key inflation gauge, was unchanged last month, missing expectations…it was down a tick from August’s reading at 1.7%…there’s simply no threat of inflation at the moment – low Oil prices are key…
2. U.S. corporate profits haven’t waned as much as pundits have feared, giving new life to a stock market rally that had largely stalled since the summer…although earnings are on track to decline for the 3rd consecutive quarter, about 75% of the 280 companies in the S&P 500 that have posted results through yesterday morning have beaten expectations, according to FactSet…that is slightly above the 5-year average of 72%…more than 100 companies report today and tomorrow…while overall profits are expected to fall about 3.2% from a year earlier, the steepest decline since 2016, most analysts have called a bottom…they project earnings growth to accelerate next year, helping to allay fears of a potential recession…
3. The Dow is off 91 points as of 7:00 am Pacific…in Toronto, the TSX has retreated 47 points but the Gold Index, threatening to break out above the key 250 level, is up 4 points to 247…the Venture is 1 point higher at 540…Wallbridge Mining (WM, TSX) has gained 3.5 cents to 61 cents in early trading…Wesdome Gold Mines (WDO, TSX), which released some stellar underground drill results the other day, is up another 7 cents at $7.89 after a 10% jump yesterday…Great Bear Resources (GBR, TSX-V) has also put out some great new numbers with new high-grade discoveries at 3 target areas at its Dixie Creek Project…GBR is steady at $6.95 and could be ready to overcome nearest resistance at $7…Alacer Gold (ASR, TSX), continuing to look strong with the stock at multi-year highs, recorded Q3 net earnings of $34 million (U.S.)…year-to-date production is 290,000 ounces at consolidated AISC of $714 (U.S.) an ounce…the company has also announced an increase to the 2019 Copler oxide plant production guidance range to 150,000 to 160,000 ounces from 125,000 to 145,000 ounces…Eric Sprott is investing $15 million into Gran Colombia (GCM, TSX) at $4.60 per unit…the jump in Silver needs to be watched closely as it will outperform Gold, and Silver stocks could really catch fire…one of those is Canada Cobalt (CCW, TSX-V) which has major developments happening on the Silver front as per the company’s news last Friday…it’s up half a penny at 35 cents in early trading…on the non-resource side, Bee Vectoring Technologies (BEE, TSX-V) jumped a nickel on news yesterday (another favorable decision for the company from the EPA in the U.S.) and is up another penny at 39 cents through the first 30 minutes of trading…
4. Calibre Mining (CXB, TSX) has released impressive high-grade drill results from its newly-acquired El Limon Property, including 9.2 g/t Au over a 28.1-m estimated true width in hole LIM-18–4227 at the Limon Central open-pit zone…B2Gold (BTO, TSX) was successful in extending Gold mineralization along the El Limon vein system for over 2.5 km, with high-grade intercepts at Limon Central, Limon Sur, Limon Norte, Tigra, Chaparral and Cacao, as well as from the newly developed Atravesada and Panteon underground targets…Calibre is currently processing ore at El Limon from the Santa Pancha underground mine and an open-pit developed on the Limon Central deposit, which covers approximately 500 m of the known 2.5-km-long El Limon vein system…it remains open along strike and at depth…Russell Ball, CEO of Calibre, stated: “The El Limon district has produced over 3.4 million ounces of Gold and I am confident that we are in a truly world-class, low-sulphidation epithermal system. B2Gold’s recent drilling intercepted high-grade mineralization over substantial widths and these targets represent an excellent opportunity to expand reserves and resources, both at depth and along strike. Calibre will commence drilling at Limon Norte in early November”…Calibre’s initial 7,000-m program for the 4th quarter of 2019 and 2020 will target extensions at Limon Norte, Tigra-Chaparral and Atravesada. Additional, concurrent target delineation exploration programs will commence at Lourdes, San Antonio and Guanacastal, which will include geological mapping, surface geochemical sampling and trenching for a total cost of approximately $2.9 million (U.S.)…
6. Pretium Resources (PVG, TSX-V) posted positive adjusted earnings for the 9th quarter in a row, but a negative surprise on Q3 and anticipated full-year production is weighing heavily on the stock in early trading with PVG down $3.45 a share to $12.63 (slipped as low as $11.94)…the rising 200-day SMA just above $13 should provide support…Pretium produced 88,227 ounces of Gold at Brucejack in Q3 at a mill feed of 9.1 g/t and a Gold recovery rate of 97%…total revenue for the quarter was $132.7 million (U.S.) at an AISC of $878 per ounce…net earnings were $6.3 million or 3 cents per share while adjusted net earnings were $34 million or 18 cents per share…Pretium also generated $77.8 million in cash from operating activities, its highest cash flow quarter yet (aided by high Gold prices)…the company has also now achieved and surpassed the initial debt repayment target of $140 million and is on track to repay $180 million of debt in 2019…however, Pretium will miss significantly on production guidance this year, lowering it to between 340,000 and 350,000 ounces from the previously anticipated range of 390,000 to 420,000 ounces…investors don’t like negative surprises like that…Joseph Ovsenek, President & CEO of Pretium, commented: “During the 3rd quarter, we continued to focus on opening up the mine while increasing grade to the mill. Pursuing both objectives simultaneously while stope inventory was constrained proved to be more challenging than anticipated, and we ended the quarter with Gold production below our own expectations. As a result of limited stope inventory, we now expect that the 4th quarter will be consistent with the 3rd quarter and have adjusted our full-year 2019 production guidance to between 340,000 to 350,000 ounces of Gold production, an approximate 15% decrease from the midpoint of our prior production guidance range of 390,000 to 420,000 ounces of Gold sold. We have adjusted our all-in sustaining cost guidance range to $900 to $950 per ounce of Gold sold, reflecting the lower anticipated Gold production and our spending, which is lower than previously guided. We do expect another quarter of robust cash flow in Q4“…
6. The Canadian Oil sector has been battered, but Cenovas Energy (CVE, TSX, NYSE) continues on the road to recovery…the company generated free funds flow of $622 million (U.S.) in the 3rd quarter while maintaining its industry-leading low cost structure and meeting mandatory production curtailment levels set by the government of Alberta…net earnings were $187 million versus a net loss a year prior…Oil sands operating costs were $6.90 per barrel (bbl), 21% lower than in the 2nd quarter of 2019 and 24% lower than in the 1st quarter…an 11% year-over-year increase in realized Crude Oil sales prices to an average of $55.13/bbl was driven by higher U.S. sales and narrower differentials…Cenovas has also achieved a further reduction in net debt to $6.8 billion with net debt to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreasing to 1.9 times…Crude-by-rail volumes were more than 80,000 barrels per day (bbls/d) in September…“We’re continuing to do everything we said we would do,” said Alex Pourbaix, Cenovus President & CEO. “Through our focus on safe and reliable operations, cost leadership and capital discipline, we are generating strong results that support further debt reduction and increased shareholder value. In addition, our market access strategy is steadily increasing our exposure to global Oil pricing”…
7. Whether climate change alarmists like it or not, all studies point to a growing global demand for Oil over the next 2 decades – Canadians will decide whether they want to reap the full benefits of that or not, but what nation would not want to generate more wealth? (especially to pay for essential services, let alone all the extras that “progressives” want to distribute?)…”Oil Demand Deniers” have it wrong…the Canadian Association of Petroleum Producers’ most recent annual forecast projects the domestic Oil industry will produce 5.86 million barrels of Oil per day in 2035, up from 4.6 million bpd in 2018 (we should be able to do a lot better than that)…that’s a more modest projection than the federal government’s “Canada Energy Regulator” (CER) which estimated Canadian Oil production would reach 6.9 million bpd in 2040 in its base case, and it could rise to 9.1 million bpd in a scenario where Oil prices climb higher than expected…right now, and this is the crux of the problem in Canada, the Oil industry produces more than can fit into its pipeline network…the most recent data from the CER shows that 310,000 barrels of Oil per day were exported from Canada on railway cars in August, the last month for which data is available…the great irony is that the climate change alarmists, opposing new pipelines on the premise that they will only contribute to the “destruction of the planet”, are themselves contributing to environmental problems given the fact that pipelines have proven to be easier on the environment than Oil by rail (some studies have shown that transporting large volumes of Crude over long distances creates >50% more greenhouse gas emissions than Oil carried via pipeline)…
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October 30, 2019
BMR Evening Alert!
7 @ 7:00
Visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,487 and $1,496 so far today…as of 7:00 am Pacific, the yellow metal is up $5 an ounce at $1,492 as investors prepare for a Fed policy statement at 11:00 am Pacific followed by a Jerome Powell news conference…the Fed is widely expected to cut interest rates by another quarter point for the 3rd time since July, but it could also be a “hawkish” cut if they simultaneously announce a pause in this “mid-cycle adjustment”…markets (and President Trump) will be intensely focused on learning what Powell’s next moves are…Silver is up a penny at $17.79 after climbing as high as $18.04…Gold and Silver prices backed off slightly after U.S. Q3 GDP came in modestly better than expected…Nickel is 2 cents higher at $7.65…Copper is unchanged at $2.67 while Zinc is off a penny at $1.16…Cobalt remains steady at $16.10…Crude Oil has slipped 30 cents to $55.24 while the U.S. Dollar Index is flat at 97.69 ahead of today’s Fed decision…U.S. GDP grew faster than expected in the 3rd quarter, but slowed slightly from Q2 as business investment continued to decline…the Commerce Department said this morning that economic activity grew at an annualized rate of 1.9% in Q3, down fractionally from the 2% pace in the 2nd quarter…economists polled by Dow Jones had expected the first look at U.S. economic growth in the 3rd quarter to come in at a 1.6% rate…the better-than-expected print was the result of continued consumer spending as well as government expenditures…personal consumption expenditures, a gauge of spending by American households, rose at a 2.9% annualized rate while government spending grew at a 2% clip…
2. U.S. private payrolls grew at a faster-than-expected pace in October, but the solid growth was offset by a sharp downward revision for the previous month…companies hired 125,000 employees in October, according to ADP and Moody’s Analytics in data released this morning…economists polled by Dow Jones were expecting an increase of 100,000 payrolls…growth was led by the services sector which added 138,000 jobs…however, payrolls in goods-production businesses decreased by 13,000 in October (lowering net gains to 125,000) while September payrolls were revised down by 42,000 or 31% to 93,000…“Job growth has throttled way back over the past year,” stated Mark Zandi, chief economist at Moody’s Analytics…“The job slowdown is most pronounced at manufacturers and small companies. If hiring weakens any further, unemployment will begin to rise”…all the more reason, it seems, for the Fed to remain accommodative, especially considering there is no inflation threat at this late style of the economic cycle…the Labor Department reports the closely-watched non-farm payrolls Friday…
3. Wesdome Gold Mines (WDO, TSX) is up strongly in early trading after reporting impressive high-grade intercepts from underground drilling at its wholly-owned Eagle River mine in Wawa, Ontario as the company continues to develop the 303 lens that was initially discovered in 2015…this lens is showing good continuity of Gold mineralization up plunge and down plunge with consistent high grades and widths as a result of local folding…the 303 lens, initially defined from the 750-m level to the 1,000-m level, has now been extended an additional 300 m down plunge to the 1,300-m level, while continuing to demonstrate above-average widths and grades…highlights of recent drilling released this morning include 92.8 g/t Au over 11.1 m (37.2 g/t cut over 6.4 true width) in hole 925-E-104; 70 g/t Au over 11.5 m (48.1 g/t cut over 7.4 m true width) in hole 925-E-106; and 72.2 g/t Au over 10.8 m (42.8 g/t cut over 5.4 m true width)…assays were cut to 140 g/t Au…President and CEO Duncan Middlemiss stated, “We are pleased with our ongoing exploration efforts at the Eagle River mine, in particular the continued expansion of the high-grade 303 lens that has provided above average reserve grades over 2019 and planned into 2020. This additional expansion of the 303 lens, an additional 300 m down plunge, provides an opportunity to mine these high grades well into the future with additional mine development. We expect to include the results into the existing resource and reserves base at year-end. Elsewhere, we are continuing to aggressively explore the Eagle River deposit with 5 underground rigs and 1 surface drill rig to extend the known 7 East and 311 West zones that are proximal to existing development and infrastructure and testing for parallel zones of mineralization in the eastern portion of the mine diorite. And, on surface, we continue to test the recently discovered Falcon zones where there exists good potential to define higher grade and wider zones of Gold mineralization that would be near mine infrastructure”…WDO has climbed 40 cents to $7.51 through the first 30 minutes of trading…
4. The Dow is off slightly as of 7:00 am Pacific…so far, the corporate earnings season has been better than most pundits feared…of the S&P 500 companies that have reported, 74% have posted better-than-expected earnings, according to FactSet data…the S&P touched a new all-time high intra-day yesterday but failed to close higher amid mixed quarterly results and trade news…in Toronto, the TSX has retreated 22 points while the Venture has rebounded 1 point to 539…for the first time in 20 years, the Fed and the Bank of Canada will be announcing policy decisions on the same day…if the Fed cuts, it will have a lower rate range than Canada for the first time in 3 years…that would make the Canadian rate the highest not only in the G7 but across the industrialized world, according to Bloomberg…Pretium Resources (PVG, TSX) will be releasing Q3 quarterly financials following the close today…the company has posted 8 consecutive quarters of positive adjusted earnings…Q2 net earnings were $10.4 million (U.S.) or 6 cents per share on production at Brucejack of 90,761 ounces and total revenue of $113.2 million (U.S.)…Skeena Resources (SKE, TSX-V) has hit a new 2019 high of 57 cents in early trading…Pan American Silver (PAAS, TSX, NASDAQ) has cut 253 m grading 67 g/t Ag, 3.8% Pb and 3.6% Zn at its La Colorada skarn discovery in Mexico…Azimut Exploration (AZM, TSX-V) is building on yesterday’s sudden gains, up another 2 pennies at 44 cents…the Quebec explorer shot up 10 cents or 31% yesterday on record single-day volume of 1.1 million shares with no news, though the company reported more high-grade sampling results a week ago from the discovery of a 5.2-km-long mineralized boulder field spatially associated with mineralized outcrops at its 359 sq. km Pikwa Property…an additional 78 samples are pending…on the non-resource front, Antibe Therapeutics (ATE, TSX-V) has hit its best levels since early 2018, up 2 pennies at 52 cents…Bee Vectoring Technologies (BEE, TSX-V) has been creating a buzz recently…this morning the company announced that it has been granted a further favorable decision by the EPA in the United States – a new residue tolerance exemption for its registered active ingredient CR-7…tolerance exempted products such as CR-7 give growers an economic benefit by allowing them to capture greater value for their crop and/or by reducing the risk of an unplanned rejection with the U.S. government…if you’re not familiar with the story, BEE has created a way for bees to deliver a bacterial fungicide to blueberry, sunflower and other crops to help protect them from disease in a method it says is cheaper and more environmentally friendly (the company sets up bumble or honey bee hives on farms and installs special trays filled with Vectorite inside that the bees must walk through, picking up the powder on their feet, before flying away to pollinate nearby crops)…in August the EPA certified BEE’s proprietary ingredient and the company now plans to start selling the system to American farmers and expedite its push for approvals in other countries, including Canada…BEE is buzzing at 36 cents, up 3 pennies, as of 7:00 am Pacific…
5. U.S. agriculture officials said yesterday that a rule that allows farmers to legally grow hemp will be finalized this week, a move that many states have awaited for months so they can begin widespread hemp production…the rule is set to be published tomorrow and effective immediately…it establishes requirements for licensing, maintaining records on the land where hemp will be grown, testing the levels of THC – the active ingredient in marijuana that causes a high – and disposing plants that don’t meet the requirements…in addition, a national hemp-growing program that Congress authorized in the 2018 farm bill will be launched by the rule (the 2018 law removed industrial hemp from the list of illegal drugs and required the USDA to set up a national hemp growing program)…at least 47 states have passed laws to establish hemp production programs, according to the National Conference of State Legislatures… exceptions include South Dakota, Idaho and Mississippi…hemp and marijuana are both cannabis plants but have different levels of THC…industrial hemp can be used in food, fiber, paper, beauty products and other products, and the industry estimates it could grow nationally to be a $1.9 billion market by 2022…
6. Whether climate change alarmists like it or not, all studies point to a growing global demand for Oil over the next 2 decades – Canadians will decide whether they want to reap the full benefits of that or not, but what nation would not want to generate more wealth? (especially to pay for essential services, let alone all the extras that “progressives” want to distribute?)…”Oil Demand Deniers” have it wrong…the Canadian Association of Petroleum Producers’ most recent annual forecast projects the domestic Oil industry will produce 5.86 million barrels of Oil per day in 2035, up from 4.6 million bpd in 2018 (we should be able to do a lot better than that)…that’s a more modest projection than the federal government’s “Canada Energy Regulator” (CER) which estimated Canadian Oil production would reach 6.9 million bpd in 2040 in its base case, and it could rise to 9.1 million bpd in a scenario where Oil prices climb higher than expected…right now, and this is the crux of the problem in Canada, the Oil industry produces more than can fit into its pipeline network…the most recent data from the CER shows that 310,000 barrels of Oil per day were exported from Canada on railway cars in August, the last month for which data is available…the great irony is that the climate change alarmists, opposing new pipelines on the premise that they will only contribute to the “destruction of the planet”, are themselves contributing to environmental problems given the fact that pipelines have proven to be easier on the environment than Oil by rail (some studies have shown that transporting large volumes of Crude over long distances creates >50% more greenhouse gas emissions than Oil carried via pipeline)…
7. Another example of why it is so difficult in Canada now to get any big projects done: A Manitoba Indigenous community is taking the province to court over a $453-million power transmission project it says it wasn’t properly consulted on before construction started this past summer…the Sagkeeng First Nation is to argue in Winnipeg Court of Queen’s Bench today for a judicial review of the province’s decision to give Manitoba Hydro a licence to build a 213-km, 500-kilovolt line to Minnesota…“When our ancestors signed the treaties, they agreed to share their land, not give it away,” Chief Derrick Henderson said in a news release…“Manitoba and Hydro need to learn that they have to treat our people with respect. It is not respectful for Manitoba to treat First Nations as a nuisance to be disposed of in a sham consultation process”…the transmission line received approval from Natural Resources Canada in June but was subject to 64 Manitoba licence conditions and another 28 from the National Energy Board…the conditions included ongoing participation for Indigenous groups…the First Nation’s lawyer, Corey Shefman, said construction should stop until the province meets its duty to consult First Nations which will be affected…the project should also go through the environmental approval process again, he said…“You skipped some steps, Manitoba. You need to rewind this and go back to the part where you are consulting and accommodating Sagkeeng and the other First Nations,” Shefman said…“Then you can make your licensing decision”…construction began in August and the line is expected to be operating by June of next year…the province has said the line will displace more than 1.5 megatonnes of carbon emissions by removing the need for Coal south of the border…
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October 29, 2019
7 @ 7:00
Visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,495 and $1,483 so far today…as of 7:00 am Pacific, the yellow metal is off $6 an ounce at $1,486…Gold came under pressure yesterday to begin the new week as U.S. equities continued a bullish trend with the S&P 500 closing at a new record high for the first time in 3 months…$1,500 marks a key psychological level for Gold while critical resistance exists between $1,515 and $1,520…Silver, after shooting above $18 late last week, has eased off another 11 cents to $17.70 but the chart remains constructive…Nickel has added 12 cents to $7.62 while Copper and Zinc are both flat at $2.67 and $1.17, respectively…Crude Oil has slid 89 cents to $54.92 while the Dollar Index is unchanged at 97.76…China’s factory activity is expected to have shrunk for the 6th month in October, a Reuters poll showed, suggesting hardly any let up in pressure on the domestic and export sectors from slowing global demand and a trade battle with the United States…the official Purchasing Managers’ Index (PMI) for October was seen at 49.8, unchanged from September, but still below the 50-point mark that separates expansion from contraction, according to the median forecasts of 35 economists…a British general election aimed at breaking the Brexit deadlock looks set for December after the main opposition Labour Party decided today to back a national ballot…Ontario’s deficit budgets continue to make it the most indebted Canadian province and its credit rating could be cut if economic growth projections fall short, according to a new report by a government analysis agency…net debt stands at $338 billion for fiscal 2018-19, the most debt for a sub-national borrower in the world, the Financial Accountability Office of Ontario said, citing Moody’s Investor Services…much of this debt was racked up, of course, during a 15-year reign by the provincial Liberals under McGuinty and then Wynne, so-called “progressive” governments who saddled future generations with an enormous burden and have little to show for it…as Jack Mintz stated in a Financial Post column this morning, “I am not quite sure how use of the term ‘progressive’ became so common to describe what is basically old-style socialism”…
2. Three major factors are behind the S&P 500’s drive to a new all-time high – progress in trade talks, better-than-expected corporate profits and a likely Fed rate cut tomorrow…however, there’s a chance that tomorrow’s cut could be a “hawkish” one…all eyes tomorrow will be on whether the FOMC statement changes its pledge to “act as appropriate to sustain the expansion” – an indicator of future rate cuts – to wording that appears less committed to further easing…there is no new economic or interest rate forecast from the Fed tomorrow, so its communications will be limited to the post-meeting statement and comments from Fed Chairman Jerome Powell at his press briefing…meanwhile, bubbling under the surface is recent stress in the short-term funding markets…Powell will surely be questioned on this by reporters…market pros say it’s possible the Fed may ultimately have to expand its balance sheet even more through a new quantitative easing program, in addition to steps it has already taken…it also is expected to make a permanent, standing repo operation, instead of just temporary ones…
3. The Dow is up slightly as of 7:00 am Pacific…the S&P 500 hit a new all-time high yesterday just ahead of what is typically the best 2 months of the year for U.S. equities, November and December…not a good day, though, for Beyond Meat (BYND, NASDAQ) which has plunged nearly 20%…today is the first time since the IPO that insiders can sell the stock…roughly 75% to 80% of the outstanding stock is available to trade following the lockup expiration…in Toronto, the TSX is off 16 points while the Venture has lost 2 points to 539…Wallbridge Mining (WM, TSX), which has jumped nearly 70% in value since announcing a whopper of a drill hole result last week, announced this morning that it has expanded its relationship with Lonmin Ltd., a wholly-owned subsidiary of Sibanye-Stillwater…Lonmin will engage the services of Wallbridge to operate and manage all operations of Lonmin in Canada directed by Sibayne-Stillwater, including the advanced stage Dennison Property, through privately-held Loncan…aside from existing joint venture agreements with Wallbridge, Lonmin owns a 100% interest in Dennison which was previously part of its JV agreement with Vale Canada…Wallbridge gets a 20% ownership interest in Loncan and a seat on its board of directors…Wallbridge will also receive compensation in the form of cash and/or shares of Loncan and additional compensation for milestones achieved in the development of projects as agreed upon by both parties at a later date…“This agreement complements Wallbridge’s strategy of separating its Gold and base metal assets and enables work on the Sudbury-area properties to be funded entirely within privately-held Loncan,” stated Marz Kord, President and CEO of Wallbridge…”Distinct operating teams will advance development of our Fenelon Gold Property and will work to unlock the value of our Copper-Nickel-PGM assets separately. The agreement allows our existing, dedicated, Sudbury-based team to continue their work of generating value from the Copper-Nickel-PGM assets with resources independent of those driving our Gold strategy”…Dennison features significant historic resources of typical contact and footwall-type Ni-Cu-PGM mineralization of potential economic grades…highlight intersections from drilling in recent years (currently not part of any resource estimate) include 1.69% Ni, 2.28% Cu and 2.37 g/t Pt, Pd and Au (total precious metals, “TPM”) over 8.23 m in the 99 Shaft zone and 1.87% Ni, 0.95% Cu and 3.14 g/t TPM over 6.16 m in the 109 West zone…Wallbridge is up another 3 cents at 62 cents in early trading, while Fenelon neighbor Balmoral Resources (BAR, TSX-V) has added a penny to 21.5 cents…
4. Radisson Mining (RDS, TSX-V) is one of the few junior exploration companies that has been on a gradual uptrend throughout 2019…this morning, the company released high-grade Gold intercepts from a 20,000-m program underway at its O’Brien Gold Project located along the Larder Lake-Cadillac Break halfway between Rouyn-Noranda and Val d’Or in northwest Quebec…drill hole OB-10–92w2b cut 66.71 g/t Au over 4.7 m, 300 m below the deepest known mineralization on there 36E zone (true thickness estimated at 70% to 80%)…“We are encouraged by this new high-grade Gold discovery, suggesting potential continuity for high-grade Gold mineralization up to 300 m below the current resource area at the 36E zone. This is a first and very important sign of validation for our new geological interpretation, with further follow up drilling, hole 19–92w2b is one of the most significant drill holes in the history of the company. I’m confident we will have a steady flow of encouraging news supporting the new interpretation through the remaining of the drilling campaign,” commented Mario Bouchard, President and CEO…the newly reported intercept occurred at a vertical depth of 850 m (OB-19–92w2b) within a smoky quartz vein that carries visible Gold and arsenopyrite-pyrite mineralization in association with typical biotite alteration…this package is hosted by the quartz porphyry and conglomerates of the Piche Group, like the ones above in the resource area (from surface to 550 m depth), and the old O’Brien mine which produced down to a depth of 1,150 m and remains untested below…RDS is unchanged at 22.5 cents as of 7:00 am Pacific…
5. Palladium One (PDM, TSX-V), which is up 50% this year on the strength of record high Palladium prices, has a new friend in Eric Sprott…the company late yesterday announced a $3.2 million financing at 6 cents per unit (53.3 million shares) with Sprott taking about one-third of that offering (18.2 million units) to give him a 19.99% non-diluted interest in the company…the company will use the funds to ramp up exploration activities at its Palladium-dominant LK Project in Central Finland and its Tyko Project (Nickel sulphide) in Ontario…using a 0.3 g/t Palladium cut-off, LK features an optimized pit-constrained mineral resource of 635,000 PdEq ounces of Indicated resources grading 1.80 g/t PdEq contained in 11 million tonnes, and 525,800 PdEq ounces of Inferred resources grading 1.5 g/t PdEq, also in 11 million tonnes…significant potential exists for additional tonnage and higher-grade discoveries…the LK Project remains wide open with less than 4 km of the current ~25 km mafic-ultramafic basal contact systematically drill tested…the favourable basal contact at Kaukua remains open along strike both to the east and west, while the deepest drill hole to date is only 420 m long…following the private placement, Palladium One will conduct high resolution IP geophysics and then initiate a 5,000-m diamond drill program…PDM is up half a penny at 7.5 cents through the first 30 minutes of trading…
6. Trans Mountain is beefing up its workforce, much to he chagrin of climate change alarmists who are more interested in the flaky concept of “saving the planet’ than saving jobs, prosperity and livelihoods in Canada…Trans Mountain says 2,200 new positions have been added since September 30 for the expansion project, with a focus on Indigenous, regional and local workers…among the positions added include heavy equipment operators, engineers and construction managers – high paying jobs…the project, which would see the existing pipeline between Edmonton and Burnaby twinned, has encountered multiple obstacles since the federal government purchased it for $4.5 billion from Kinder Morgan…it must move ahead quickly without any further delays or the minority Trudeau government, which lost seats all across Western Canada in the October 21 election, will face a mutiny from the West…
7. Indonesia has suspended exports of Nickel ore with immediate effect after a planned ban on shipments from the beginning of next year led to a rush to beat the deadline…the mineral meant for exports during the rest of the year will be absorbed by domestic companies with smelters, Indonesia’s Investment Coordinating Board Chairman Bahlil Lahadalia told reporters in Jakarta yesterday…the government and Nickel miners agreed to halt exports immediately…Indonesian companies with outstanding export contracts will need to find ways to avoid possible penalties, Lahadalia said…China’s imports of Nickel rose to a 5-year high in September, suggesting that users there were in a rush to secure material…almost all of Indonesia’s Nickel ore goes to China…the move to halt Nickel ore exports is in line with President Joko Widodo’s plan to turn Indonesia into a processor of its mineral resources as opposed to a mere suppliuer of raw materials…in August, the government brought forward a planned ban on exports of Nickel ore by 2 years to the start of January, potentially removing millions of tons of supply from the market and threatening a global shortage…
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October 28, 2019
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