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1. Gold has traded between $1,509 and $1,490 to begin an important new week…as of 7:00 am Pacific, it’s off $12 an ounce at $1,492…Wednesday’s anticipated rate cut by the Fed, which would be its 3rd since July, could end up being a “hawkish” cut given the language it may choose in its new policy statement and the tone of Chairman Jerome Powell’s comments in a news conference that follows…as TD Securities noted this morning, “Our macro team is looking for the committee to communicate patience in deciding future policy moves as they assess the impact of the 3 cuts they have already delivered and look for the Fed to temporarily pause before resuming rate cuts in Q1 2020, which could see the yellow metal look for the lower bound of the range in the near-term”…Silver, after shooting into the $18.30’s late last week, has eased off 20 cents to $17.80, the top of a resistance band (potential new support) beginning at $17.70…Nickel is steady at $7.56 (see below)…Copper is also unchanged at $2.67 while Zinc has added a penny to $1.17…Crude Oil is up slightly at $56.70 while the Dollar Index has fallen nearly one-tenth of a point to 97.77…profits at Chinese industrial companies fell for the 2nd straight month in September as producer prices continued to slide, highlighting the impact of a slowing economy and a protracted trade battle with the U.S. on corporate balance sheets…the left is back in power in Argentina…voters have rejected the austerity measures of conservative President Mauricio Macri who has conceded defeat to rival Alberto Fernandez, but they’ve also embraced the policies that failed in the past and led to the current crisis…the ticket of Fernandez and former populist President Cristina Fernandez de Kirchner won a decisive victory…just hours after the election the central bank imposed significantly stricter controls on the purchase of U.S. dollars, underlining the scale of the economic challenge the country faces…inflation has ballooned to more than 50% while GDP is expected to shrink by 1.2% by the end of the year…the European Union has agreed to extend the Brexit deadline until January 31, opening the way for an early U.K. election if Prime Minister Boris Johnson can persuade opposition parties to agree to hold one…under the EU extension offer, if the U.K. and the EU both ratify the withdrawal deal that Johnson struck with the leaders of the bloc’s member states earlier this month, the country could leave earlier than that date…
2. 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 today…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…
3. The Dow is up a healthy 181 points as of 7:00 am Pacific…the one word that’s not being uttered on conference calls this earnings season is “recession”…the U.S. consumer – the engine of U.S. and global growth – is still holding up, according to CEOs and CFOs who have spoken on their company conference calls in the last few weeks…it’s a big reason why U.S. equity markets could race new record highs this week, opening the door to a fresh leg up in equities…almost 200 companies in the S&P 500 have now reported 3rd-quarter earnings…most have beaten expectations while the economic narrative on conference calls has shifted from “recession” earlier in the year to “slower, but stable growth”…for the first time since the Bank of Canada began fixing the date of its interest rate announcements in late 2000, we have rate decisions scheduled from the Bank of Canada and the Fed on the same day on Wednesday…in Toronto, the TSX is 31 points higher…Wallbridge Mining (WM, TSX) is up a penny at 52 cents…the stock jumped 43% last week, adding about $75 million in market cap, after the company delivered a whopper of a drill hole – 27 g/t Au over 38.4 m (core length, true width unknown) at a vertical depth of 500 m in the Tabasco zone of its Fenelon Property in Quebec…technically, a confirmed breakout has occurred above 47 cents…refer to our Sunday Sizzler for additional insights…neighbor Balmoral Resources (BAR, TSX) is trading at 18.5 cents with the company increasing the size of its private placement for the 2nd time to $3.5 million from the original $1.4 million…
4. Canada Cobalt (CCW, TSX-V) is on the move in early trading after news post-market Friday…underground drilling on the first level of the Castle mine at Gowganda near Kirkland Lake is hitting new massive Cobalt, Nickel and Silver mineralization, but what’s also fascinating is that an entirely new high-grade discovery at depth is brewing about a couple of km to the east-southeast…a well-mineralized system immediately east of the Castle and 2 other past producing high-grade Silver mines is showing Gold and base metal potential in the under-explored Archean rocks near-surface and rich Silver-Cobalt potential below the Archean package in the Nipissing diabase at depth…with a new understanding of Castle East geology, aided by multiple drill holes, surface mapping, sampling and geophysics over the past 2 years, drill hole CA-11–08 in the middle of the Nipissing basin is now interpreted to have clipped the edge of a potential new deposit with 1,194 ounces per ton Silver and nearly 1% Cobalt over 0.45 m within a 3.1-m core length grading 189 ounces per ton Silver at a vertical depth of 420 m…the odds of this being an isolated “high-grade” hit are extremely low given how these vein systems work in this district…those are exactly the kind of results that led to the discovery of the 3 other high-grade mines within a radius of 2 km…meanwhile, CCW is targeting significant Silver recovery from environmental rehab programs at both the Castle and Beaver mines, while the company reports that its due diligence period for the acquisition of the PolyMet Lab and mineral processing facility is proceeding positively and ahead of schedule…that facility would become the new home of CCW’s proprietary and environmentally friendly Re-2OX Process…CCW is at the cutting edge of the environmental trend with Re-2OX which is highly adaptable and solves an arsenic problem while effeciently recovering multiple metals…there are major economic opportunities related to the clean-up of a district that was the birthplace of Canadian hard rock mining…CCW is up 2 pennies at 37 cents as of 7:00 am Pacific…technical strength continues to build on the confirmed breakout through 33 cents…the rising 50-day is also preparing to cross above the 200-day…
5. Probe Metals (PRB, TSX-V) continues with a minimum of 10,000 m of drilling to expand current Gold resources and extend the coverage of regional exploration at its promising Val d’Or East Project…for the remainder of 2019, the drill program is focused on resource expansion and testing new target on the unexplored ground around the Pascalis and Courvan Gold trends…the exploration program also includes geophysical surveys that will broaden the scope of the company’s regional exploration…David Palmer, President and CEO, stated, “The Val-d’Or East Project has continued to exceed expectations in all aspects of exploration and resource growth. The recently filed NI-43–101 Resource Estimate saw Gold resources more than double from the previous estimate and we see significant upside in the project going forward. Our belief in the Gold potential of this historically under-explored eastern half of Val-d’Or has been confirmed by our results to date and we will continue to unlock value from this area. With a strong treasury, we intend to maintain this momentum during the remainder of 2019 and throughout 2020 with extensive drilling and exploration programs”…
6. Barrian Mining (BARI, TSX-V) continues to generate strong volume…this morning the company announced results from a 3rd drill hole from a recently completed 1,838-m RC program at its flagship Bolo Gold-Silver Project in Nevada…hole BL19-01 represents one of the highest-grade Gold intercepts to date at Bolo, yielding 3.34 g/t over 29 m, including a higher-grade zone of 4.97 g/t over 13.7 m…the intercept occurs within a broader envelope of mineralization averaging 1.37 g/t gold over 84 starting from surface…these intercepts expand the footprint of Gold mineralization approximately 35 m vertically below the previous drilling on section…mineralization remains open at depth…Maximilian Sali, CEO and co-founder, commented, “We are thrilled with the impressive drill results we continue to release at Bolo, which rank very favourably among all other publicly reported Nevada Gold drill intercepts this year. The results demonstrate exceptional grade and width figures for Carlin-type oxide Gold deposits in Nevada. Barrian’s choice to focus on Nevada was due to its exceptional Gold endowment combined with the generally low processing costs of heap-leachable Carlin-type oxide Gold deposits. While Bolo is still an early-stage project, achieving one of the highest-grade intercepts to date with hole BL19-01 further reinforces our belief that there is excellent potential to significantly expand the known Gold zones and make new discoveries. We continue to look forward to additional results from the South Mine fault and the Uncle Sam silver gold prospects”…BARI is unchanged at 22 cents through the first 30 minutes of trading…
7. A distinct, new high-grade occurrence of Gold mineralization has been found on McEwen Mining’s (MUX, TSX) Stock Property, part of the Black Fox Complex near Timmins…drilling at Stock West has returned 4 significant intersections – 6.7 g/t Au over 39 m (S19-101), 5.6 g/t Au over 30 m, including 9.1 g/t over 13 m (S19-98), 5.6 g/t over 29.1 m, including 15 g/t over 5.1 m (S19-105), and 3.2 g/t over 17.5 m, including 4.3 g/t over 9.5 m (S19-04)…”Results from our first drill holes suggest the potential to define a significant new zone of mineralization at Stock West…Sylvain Guerard, VP-Exploration, stated, “The economic importance is enhanced by being well located right next to our mill and the underground workings of the historic Stock mine”…all 8 holes that were drilled (assays are pending for 2 more holes) intersected the favorable host rock, a coarse-grained magnesite-fuchsite-dolomite carbonated altered ultramafic unit…assay values from the well-mineralized intersections are consistent across the intervals, with Gold present in both the veinlets and within the ultramafic itself…in addition, a pyrite-rich felsic dyke has been intersected in 3 holes…this dyke occurs next to the ultramafic intrusive unit and carries visible Gold throughout…these styles of mineralization differ from most other mineralization on both the Stock and Black Fox properties…
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