September 15, 2020
September 14, 2020
7 @ 7:00
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1. Spot Gold has traded between $1,939 and $1,961 so far today…as of 7:00 am Pacific, Gold has shot up $19 an ounce to $1,959 while Silver has jumped 44 cents to $27.15…TD Securities noted this morning that there is a lot of pent up demand in the marketplace as investors continue to buy Gold on dips…“As expected, we did not witness a deeper shakeout in positioning, with recent price action signaling there were not many weak longs remaining in the market,” the analysts said…”Furthermore, the ECB’s decision to brush off the exchange rate appreciation has crossed off an important hurdle for Gold bugs as investors can refocus on the weak USD narrative. In addition, a dovish FOMC meeting could clear the second hurdle for yellow metal bulls, opening the path for a renewed run toward $2000/oz”…base metals are firming up again with Copper at $3.09, Nickel at $6.88 and Zinc at $1.11, respectively…Crude Oil is off slightly at $37.29 while the U.S. Dollar Index has tumbled more than one-third of a point to 92.94, giving Gold and Silver a lift…major central bank meetings are in the spotlight this week…the Federal Reserve, Bank of England and Bank of Japan all have monetary policy meetings in the coming days…the Fed’s meeting will be closely scrutinized following its shift to a more pro-inflation stance…the World Health Organization reported a record single-day spike in global Wuhan COVID-19 cases yesterday, tallying more than 307,000 new infections in 24 hours…that’s more than 1,000 new cases higher than the previous single-day record set on September 6…India, the United States and Brazil contributed the most new cases to that total…global deaths rose by 5,537 yesterday to top 917,000…Pfizer’s (PFE, NYSE) coronavirus vaccine could be distributed to Americans before the end of the year if it’s found to be safe and effective, according to CEO Albert Bourla…the U.S. pharmaceutical giant has been working alongside German drugmaker BioNTech (BNTX, NASDAQ)…both stocks are higher in trading this morning…Pfizer on Saturday submitted a proposal to the FDA to expand its late-stage trial to include up to 44,000 participants, a third more than its previous target…
2. OPEC has cut its forecast for Oil demand growth this year, citing a weaker-than-expected recovery in India and other Asian countries, and warned risks remain “elevated and skewed to the downside” for the 1st half of next year…in a closely-watched monthly report published this morning, the group of Oil producing nations downwardly revised its outlook for global Oil demand to an average of 90.2 million barrels per day in 2020…that’s down 400,000 bpd from the previous month’s estimate and reflects a contraction of 9.5 million bpd year-on-year…the report comes as energy market participants become increasingly concerned about a faltering economic recovery and stumbling fuel demand in the wake of the pandemic…meanwhile, BP declared today that the relentless growth of Oil demand is over, becoming the first Oil giant to call the end of an era many thought would last another decade or more…Oil consumption may never return to levels seen before the pandemic took hold, BP said in its report…even its most bullish scenario sees demand no better than “broadly flat” for the next 2 decades as the energy transition shifts the world away from fossil fuels…
3. Kodiak Copper (KDK, TSX-V) has a major new strategic investor, adding Teck (TECK.B, TSX) as a 9.9% shareholder…the investment will provide Kodiak with capital to fund the company’s ongoing work at its 100%-owned MPD Copper-Gold Porphyry Project in Southern B.C, including an expanded drill program…Claudia Tornquist, President and CEO of Kodiak, commented: “Kodiak is delighted to welcome Teck as a shareholder. We view Teck’s investment as a strong endorsement of the MPD project and Kodiak’s management. With the proceeds of this private placement we will be able to expand on the momentum of our recent Gate Zone discoveries, and test other porphyry targets across the MPD Property through 2020 and 2021“…the placement will consist of 1,038,868 common shares of the company at $1.95 per share and an additional 3,013,839 flow-through common shares expected to be placed through a charity flow-through arrangement at an average price of $2.82 per share (a cost to Teck of $1.95 per share), for total gross proceeds of approximately $10.5 million…Teck will then own approximately 9.9% of the issued and outstanding common shares of Kodiak on a non-diluted basis…in the best drill result ever at MPD, Kodiak recently reported 282 m of 0.70% Cu and 0.49 g/t u, including 45.7 m of 1.41% Cu and 1.46 g/t Au, in drill hole MPD-20–004, a 75-m step-out from the Gate Zone discovered early this year (102 m @ 0.53% Cu and 0.16 g/t Au)…KDK is up sharply in early trading with a gain of 57 cents to $2.40 as of 7:00 am Pacific…only 37 million shares outstanding ahead of the Teck deal…
4. Plenty of green on Wall Street to begin the new week...as of 7:00 am Pacific the Dow is up 294 points…shares of New Jersey-based Immunomedics (IMMU, NASDAQ), up 100% in 2020 entering today, doubled again this morning (up $43.95 at $86.20 as of 7:00 am Pacific) after California-based Gilead (GILD, NASDAQ) agreed to buy the cancer drug maker…the $21 billion deal gives Gilead access to Trodelvy, a FDA-approved treatment for metastatic triple-negative breast cancer…Gilead is working on an inhaled version of remdesivir, its antiviral drug approved for emergency use on COVID-19…in Toronto, the TSX has climbed 140 points while the Venture has added 9 points to 742…Copper Mountain (CMMC, TSX), 1 of our favorite Copper plays, has hit another new 52-week high of $1.10…Gran Colombia Gold (GCM, TSX) says it produced a total of 20,644 ounces of Gold in August, up 14% over the previous month’s production…this brings the total for the first 2 months of the 3rd quarter of 2020 to 38,755 ounces, up 5% over the same 2-month period last year…Gran Colombia’s total Gold production for the first 8 months of 2020 is 143,230 ounces, compared with a total of 155,359 ounces for the same period in 2019…this reflects the impact of COVID-19 on its mining operations predominantly in the 2nd quarter of this year…the company continues to expect its 2020 annual production will range between 218,000 and 226,000 ounces of Gold…CEO Lombardo Paredes stated, “We are pleased with the improvement in our operating results in August. Segovia continues to run steadily and at Marmato, we are beginning to see the benefit of our mine optimization work in the Upper Zone mine on our production results in August now that we have a full complement of workers available to us”…Gatekeeper Systems (GSI, TSX-V) announced this morning that it has received an initial purchase order for 4 of the company’s recently launched intelligent temperature sensing systems (ITSS) from a leading OEM (original equipment manufacturer) school bus dealer located in northeastern United States…
5. Discovery Metals (DSV, TSX-V) has drilled 401.7 m averaging 134 g/t AgEq from 66.9 m in the South Corridor of its flagship Cordero Project in Chihuahua state, Mexico…the South Corridor has seen significantly less drilling than the North Corridor and will be a key area of focus for the remainder of the 55,000-m Phase 1 drill program…the goal of this drill program is to define a large-scale, high-margin project with excellent leverage to rising Silver prices…the 401.7 m intercept included 49 g/t Ag, 0.07 g/t Au, 1.0% Pb and 1.1% Zn…Taj Singh, President and CEO, states: “Hole C20–343 returned one of the best-ever intercepts at Cordero. The fact that it came from the South Corridor, an area of the deposit that has seen significantly less drilling, is even more encouraging. The remarkably long intercept begins at shallow depth and includes multiple zones of high-grade mineralization, including an interval of 112.3 m averaging 247 g/t AgEq. Initial drilling in our Phase 1 program has been successful in defining a higher-grade bulk-tonnage domain in the North Corridor with a strike extent of over 1.5 km. While this domain remains open along strike and at depth, the focus of our drill targeting for additional bulk-tonnage mineralization has now shifted to the South Corridor. The drills are now targeting areas of the deposit where there are significant gaps in previous drilling in order to efficiently grow the pit-constrained higher-grade resource at Cordero. Our initial results show tremendous promise and we look forward to follow-up drilling in the South Corridor”…
6. Ascot Resources (AOT, TSX-V) has discovered new high-grade Gold mineralization at the Day Zone at the company’s Premier Gold Project near Stewart with a 4.1-m intercept grading 20.6 g/t Au (drill hole P20–2212) and 54.6 g/t Au over 2.05 m (drill hole P20–2213)…the high-grade intercepts are located 300 m west from the planned underground development at Big Missouri…mineralization is open along strike to the north and the south…the Day Zone is located on the Big Missouri Ridge, approximately 5 km north of the Premier mill…as weather conditions improved in August, exploration was shifted to higher elevation targets at the Big Missouri Ridge after initial drilling was completed at Premier West…President and CEO Derek White commented, “We are excited about the discovery of another strategically located high-grade zone that could be transformative for Ascot. The new drilling referred to as the Day Zone is west of our known resources at the Big Missouri deposit and is within striking distance of our planned underground development. The Day Zone consists of quartz breccia hosted high-grade mineralization similar to Big Missouri. Additional drilling will have to be conducted to show continuity between the Day Zone and Big Missouri. We also completed additional drill holes at Premier West which improved our understanding of the orientation and boundary of the high-grade mineralization there. We are awaiting results from higher elevation drilling at Silver Hill and are commencing additional drilling at lower elevation targets such as Woodbine”…
7. Amex Exploration (AMX, TSX-V) is adding 4 more diamond drill rigs to the Perron Property near Rouyn-Noranda, bringing the total number of drills on site to 10…following the $11.7 million financing which closed last Thursday, Amex is increasing its fully-funded and planned drill program from 200,000 m to 300,000 m…the additional 4 drills will be delivered to site by the end of 2020, with 2 expected to arrive by mid-October…of the 10 drills, the company intends to assign 6 drill rigs to the Eastern Gold Zone (EGZ), of which 4 drill rigs will continue to define the depth extension of the High Grade Zone (HGZ), targeting mineralization down to depths of 1.5 km vertically, while 2 drill rigs are allocated to the Denise Zone, which is a wide shear-zone hosted system located approximately 50 to 100 m south of the HGZ….the Denise drilling will be targeting mineralization near-surface with a goal of defining a bulk tonnage Gold deposit…these drill rigs will also test the Denise Zone at depth to define the extent of the Gold-bearing mineralized envelope as well as continuing to identify high-grade lenses within the overall Denise system…in addition, 2 drill rigs will be dedicated to the Grey Cat and Gratien Gold Zones to continue to define near-surface mineralization identified to date…finally, 2 drill rigs will be dedicated to exploration, of which 1 will be conducting regional wildcat drilling, while the other will test areas within the Perron Gold Corridor to identify additional lenses within the 3+ km system already identified…drilling will take place year-round with small breaks in the spring and fall seasons for the winter break-up and Quebec hunting season…Kelly Malcolm, VP Exploration at Amex, noted, “The company is very well capitalized and staffed to expand and manage one of the largest drill programs currently running in Canada by a junior exploration company”…
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September 12, 2020
The Week In Review And A Look Ahead!
Could Gold average $2,500 an ounce in 2021? – a major bank believes it could…
Learn more in today’s Week In Review And A Look Ahead!
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