Check back later this morning for today’s Morning Musings.
1. North American markets are open today but volumes will be modestly lower than usual due to this being Remembrance Day in Canada and Veterans Day in the United States…we salute all the brave men and women who have served and are serving in our respective armed forces…the Dow is off 17 points as of 7:00 am Pacific, the TSX has declined 175 points while the Venture has slipped 5 points to 738…the Venture, in extreme oversold RSI(2) conditions, is trading near the bottom of a downsloping channel that formed after the August high of 848…
2. Copper soared to a high of $2.73 early today on the “Trump Infrastructure Bet” for its steepest weekly move since 1980…
3. Garibaldi Resources (GGI, TSX-V), which yesterday reported a tenor/grade range of 4% to 8% Ni and 2.1% to 10.9% Cu in 100% sulphide at its E&L Ni-Cu-PGE Project in the Heart of Gold Camp, is up half a penny at 9.5 cents in early trading…taking into consideration the very high Nickel tenor, the large target (the broad “Q” magnetic anomaly with a 600-m-long “keel” less than 1 km south of the original deposit, and an in-situ analysis based on historic (non-Ni-43–101) resources at the E&L, GGI’s risk-reward ratio has become exceptionally attractive at 9.5 cents where the stock is breaking out technically…the E&L has become a company-changer for GGI…
4. A Venture Copper opportunity just 9 cents off a new multi-year high that’s worthy of consideration over the coming weeks is Atico Mining (ATY, TSX-V)…recently, the company reported production for Q3 of 4.52 million pounds of Copper and 2,813 ounces of Gold in concentrates at its high-grade El Roble mine in Colombia, an increase of 39% for Copper over the same period in 2015…
5. Canadian Zeolite (CNZ, TSX-V), which has doubled in value this week, is holding steady at 84 cents through the first 30 minutes of trading…updated CNZ chart in today’s Morning Musings…
6. American Manganese (AMY, TSX-V), the Venture’s most active stock yesterday with a 60% gain on total volume (all exchanges) of 22.5 million shares, is up another penny to 27.5 cents on more than 2 million shares through the first 30 minutes of trading…we’ll examine the AMY chart and opportunity in today’s Morning Musings…
7. Lithium X (LIX, TSX-V) soared 42 cents yesterday and is up another 14 cents to $2.31 in early tradingafter bottoming out at its rising 200-day moving average (SMA) in late October/early November…fresh LIX chart in today’s Morning Musings…
i thought WRR results were very good? 12 cents now….
Comment by STEVEN1 — November 11, 2016 @ 7:28 am
The headline number was very good but there were other issues we highlighted in our morning report, Steven1. Also, Gold’s drop hasn’t helped WRR.
Comment by Jon - BMR — November 11, 2016 @ 7:32 am
GGI..ANY positive news and the few shares at 11c are gone….oooops…already gone.
CXO seems to have found a bottom at 21.5c.
Comment by John - BMR — November 11, 2016 @ 7:51 am
Gold stocks taking a beating today. Not a good time to be holding. Dumped most of my gold stocks before the drop. Base metals are the flavour right now.
Comment by Dan1 — November 11, 2016 @ 8:00 am
It’s funny that a lot of people thought (including myself) that a Trump victory would be good for gold, now it’s looking like the base metals may benefit the most although it’s still early in the game. Love the volume on GGI.
Comment by Danny — November 11, 2016 @ 8:32 am
GGI will have to announce a pp soon and put another lid of the stock price.
I’m out of CGC and MT today.
PMA, I’m hoping some interest comes back in
Comment by Dennis — November 11, 2016 @ 8:36 am
Certainly increased volatility in Gold since Tuesday evening, Danny…yes, early in the game as you say…I would consider this to be a “head fake” in advance of a big push higher again in about a month after the Dec. Fed meeting…higher U.S. deficits, which I don’t believe many investors are factoring in at the moment, should also be very supportive of Gold…as for the Venture, this is the last gasp of the correction that began in August and that’s a fabulous set-up for a huge move next month…this is something to embrace, not to panic about…
Comment by Jon - BMR — November 11, 2016 @ 8:37 am
Jon, agree with your comments, I expect US deficits to be higher which should be good for gold. Trump’s promises will cost money.
Comment by Danny — November 11, 2016 @ 8:42 am
Jon- you amaze me with your glass half full outlook and spin!! while the wait and see will determine the actual outcome I fear that the recent rally was a bear market rally… and a bull market it is not.
I dont WANT to believe that, but the evidence is very clear right now…
so having said that what in your view determines the fact that the gold rally is dead.. and we go much lower cause noone cares anymore?
Comment by Patricia — November 11, 2016 @ 8:55 am
The Venture has already confirmed its new bull market, Patricia (not a bear market rally), and a dip to current levels after an 80% move to the upside is entirely within normal bull market correction parameters that have been outlined historically on the Venture…that’s not “spin”, that’s fact…emotions prevented a lot of investors from doing what they should have done in January when this market bottomed at 466…now is no different, except of course we’re at significantly higher levels…the support zone is very clear but the nervous nellies will lose out again…
Comment by Jon - BMR — November 11, 2016 @ 9:05 am
Patricia: we go lower before we go higher. That seems to always happen and, respectfully, Jon will say that December is going to be great but we go lower before Jon’s recovery…so, we go 5-10% lower and i think Jon sometimes thinks we sold everything already and then buy at the lows? Jon? so, if we go lower and then recover, where are we at? 0%?
Comment by STEVEN1 — November 11, 2016 @ 9:07 am
Jon, do you remember a stock called Golden Chalice Resources? They had a nickel play in Ontario called the Langmuir Project back in 2007. The initial drill hole showed 1.14% nickel over 72.5 meters including one interval graded at 2.23%.The stock zoomed from approx. 0.28 cents to over $3.00 in less then a month (than dropped). I know the price of nickel was higher back in 2007 than it is today but is this the kind of scenario we can envision going forward with GGI at the E & L if they hit good grades when they drill next year. If you have the time Jon look back at the old data from the Langmuir project and let us know what you think(might be a good comparison to the E & L). Could be some good food for thought.Thanks Jon.
Comment by pole — November 11, 2016 @ 9:11 am
Marty Armstrong,s computer models have been very accurate in many situations involving the markets, many times the movement of gold etc. His computers predicted the Trump victory a year ago, and still had him winning 3 weeks ago. His gold movement prediction is that it will start in 2017. We shall see.
Comment by charleybarley — November 11, 2016 @ 9:12 am
For many weeks we have pointed out the secondary support zone, Steven1, and the possibility of seeing that in the event the area between 760-784 did not hold…you’ll note that 708 was major resistance in 2015 and that is where that zone begins, though the low 740’s could quickly re-emerge as support as that’s the bottom of the downsloping channel since August (potential false breakdown today, in other words)…this is a classic set-up for a powerful finish to the year…love it!…and btw, if you think today’s move in GGI is impressive, I don’t think we’ve seen anything yet…just the beginning and next week will demonstrate that…
Comment by Jon - BMR — November 11, 2016 @ 9:13 am
THANKS JON!
Comment by STEVEN1 — November 11, 2016 @ 9:27 am
Pole – Golden Chalice Resources changed their name to Rogue Resources in 2010, then to Rogue Iron Ore in 2012, then back to Rogue Resources in 2013, symbol RRS so you can look them up. As far as I know they still hold the W4 Langmuir deposit but have not drilled it since 2011 as they have focused on their other projects, most notably their Radio Hill iron ore deposit.
Comment by DBReese — November 11, 2016 @ 3:55 pm
Thanks for that DBReese.
Comment by pole — November 11, 2016 @ 4:52 pm
No problem Pole. I also found this in case you don’t know. They started an environmental study shortly after this came out then nothing much after.
Golden Chalice’s Langmuir at 677 kt of 1% Ni indicated
2010-05-19 09:47 ET – News Release
Mr. Alan Campbell reports
GOLDEN CHALICE RESOURCES RECEIVES NI 43-101 RESOURCE ESTIMATE FOR LANGMUIR W4 NICKEL PROJECT
Golden Chalice Resources Inc. has received an independent mineral resource estimate prepared by SRK Consulting (Canada) Inc. for its wholly owned Langmuir W4 nickel deposit in Northern Ontario. The resource estimate statement includes an indicated mineral resource of 677,000 tonnes at an average grade of 1.00 per cent nickel and an additional 171,000 tonnes at an average grade of 0.89 per cent nickel in the inferred category.
Comment by DBReese — November 11, 2016 @ 5:25 pm
Also RRS recently did a R/S..10/1 .. late summer.. Last I checked they had $1 million in the bank and 9 mil? O/S..
Comment by GregJ. — November 11, 2016 @ 6:05 pm
Yes that’s correct GregJ. They also did a 1/5 December 2013 and a 1/9 October 2010 when they did their name changes so they like paper.
Comment by DBReese — November 11, 2016 @ 6:36 pm