11:00 am Pacific 

(Exclusive to BMR Subscribers – Not for Distribution or Posting on any Board!)

Morning Highlights

• Uranium stocks are pushing strongly higher today including BMR recommendations NexGen (NXE, TSX), Fission (FCU, TSX), Dennison (DML, TSX), IsoEnergy (ISO, TSX-V), Baseload (FIND, TSX-V), CanAlaska (CVV, TSX-V), Purepoint (PTU, TSX-V) and Skyharbour (SYH, TSX-V);
• WTI prices soared to their highest since October 2014 this morning, hitting $83.73 before pulling back on profit-taking. As of 11:00 am Pacific, WTI is off 29 cents at $81.99. “Easing restrictions around the world are likely to help the recovery in fuel consumption,” analysts from ANZ Bank said in a note this morning, adding that Gas-to-Oil switching for power generation alone could boost demand by as much as 450,000 barrels per day in the 4th quarter;
• Bitcoin is up 2.1% at 61,834 as of 11:00 am Pacific – see further below for fresh Bitcoin charts (short-term and long-term) and an update on 1 of our favorite Bitcoin plays, Fortress Technologies (FORT, TSX-V)

“One Of The Best Cores I’ve Seen”

Our first BMR interview with Rowland Howe, President of Atlas Salt (SALT, TSX-V), has convinced us even more that SALT is 1 of the best finds we’ve ever made in the junior resource sector – a stock destined to push much higher given that “this is the one (the Salt deposit in eastern North America),” Howe says, “that has all the pieces including deep water access.” 

Rowland Howe is “Mr. Salt”. He is deeply respected and trusted in the North American Salt industry, so shareholders can take comfort in knowing that he is taking this project across the goal line – quickly, it appears, to a buyout.

What investors have to understand – and what some institutional players are now beginning to realize – is that Great Atlantic is the deposit that will determine the reliability of road Salt supply in North America for the next 50 years and beyond. That’s how important this resource is, and that fact is going to force Compass Minerals (CMP, NYSE), Mark Demetree (Stone Canyon/Kissner) or even another group to pay a premium price for this asset. Probably a bidding war on the horizon.

Indeed, SALT’s Great Atlantic is the best opportunity to help lift eastern North America out of a domestic road Salt production shortfall that has turned into a major security of supply problem. Up to 10 million tonnes of road Salt each year are being imported from North Africa and Egypt where skyrocketing overseas shipping costs are threatening that much-needed supply required to fully satisfy annual North American demand of 25 to 30 million tonnes. No new underground Salt mines have been built in North America in the last 20 years, partly due to the fact that so few suitable locations exist.

Trading Alert: SALT has been a retail-dominated stock up until this time. However, there is evidence in the market since Friday’s news that some institutional players are beginning to step in and take a keen interest in this deal. They love situations like this that are advanced and very de-risked. It doesn’t take a rocket scientist to figure out what institutional accumulation in the open market could do to the SALT share price!

SALT is up 4 cents at $1.10 as of 11:00 am Pacific. Technically, SALT is poised to accelerate dramatically as soon as it conquers some relatively minor resistance around $1.20. The all-time high is $1.42 from early summer and that could be toppled very quickly.

Interview Highlights – Part 1

• The existing northernmost drill hole at Great Atlantic, from which Atlas is stepping out 500 m to the north in the direction of the Turf Point Port, represents “one of the best cores I’ve seen” in more than 30 years in the Salt industry, Howe emphasizes (335 m grading 96.8% Salt with the top 125 m of that intercept grading 98%);
• This northernmost hole was collared 3.5 km from port. Howe reiterates his belief that this big step-out will deliver similar spectacular results and that the deposit extends even closer to the port, heightening the prospects of an efficient low-cost operation accessing the resource through an inclined ramp;
• Great Atlantic includes a mysterious but extremely pure Salt core with a dark appearance that’s even higher in grade than the traditional lighter-coloured core that’s also prevalent in this massive homogeneous deposit;
• Visuals from drilling – investors won’t need to wait for months for assay results like with traditional exploration in the metals’ space. Once you’re into high-grade Salt, you know it. As soon as a hole is completed, investors will know the intersection and approximate grade.

Click on the arrow to listen to Part 1 of Jon’s conversation with Rowland Howe. If you like Part 1, you’ll love Part 2 coming soon!

Rowland Howe, President of Atlas Salt

Bitcoin Short-Term Chart

Bitcoin is on the cusp of new highs and is showing no signs of slowing down given this very bullish 10-month daily chart.

• Measured Fib. resistance is $80,062 (CDN) – Bitcoin could react/pause at that level briefly, but ultimately we’re expecting a major breakout well beyond $80,000 (CDN)
• Bullish “W” in the RSI(14), now at 71% which demonstrates very strong momentum

Bitcoin Long-Term Chart

• Bitcoin’s rising 200-day SMA acted as great support during the correction from April through late July along with the Fib. 61.8% level
• %K continues to rise – still well below extreme levels
• Bullish trend (ADX indicator) still has plenty of room to strength
• It’s hard to image that Bitcoin won’t reach #2 measured Fib. at $143,430 (CDN) over the coming months given its technical posture and current adoption rates

Fortress Technologies (FORT, TSX-V)

Fortress Technologies (FORT, TSX-V) announced this morning that it has purchased 180 new Whatsminer M30S Bitcoin mining machines. These machines will operate alongside Fortress’s existing machines at the company’s Washington state site and are expected to be installed within the next 30 days.

Once fully deployed, the new machines are expected to increase Fortress’s total hash rate at the Washington site to 33 petahashes per second. The purchase also increases Fortress’s total contracted hash rate to 191 PH/s.

BMR subscribers need to continue to hold for further gains. Expect a near-term test of measured Fib. at 89 cents.

Note: John, Jon and Daniel hold share positions in SALT. Jon also holds share positions in CVV, DML, FORT, ISO and PTU.