Visit our comments section during the day for breaking developments. BMR Morning Market Musings returns tomorrow.
1. Gold has traded between $1,261 and $1,268 so far today…as of 7:00 am Pacific, the yellow metal is down $8 an ounce at $1,261…while support exists in the $1,260’s, the Fib. $1,235 level could certainly be tested given the recent breakdown below a short-term uptrend line…the World Bank’s latest and just-released Commodity Markets Outlook estimates that 2017 Gold prices will average $1,225 an ounce but will gradually fall over the next 3 years to $1,206 in 2018, $1,187 in 2019 and $1,169 by 2020 (previous World Bank Gold price predictions have proven to be wildly incorrect, so contrarians will like what they’re saying now)…they state that upside risks to their current forecast include “widening geopolitical tensions, stronger-than-expected physical demand in China, delays in anticipated central bank rate increases, and mine supply shortfall” (no mention of government debt issues across the globe)…the downside risks are “stronger economic growth, faster-than-expected increases in U.S. interest rates, and weaker physical demand.”
2. Oil prices have come under pressure again this morning, dipping below $49 a barrel…U.S. data yesterday showed a drop in Crude Oil stocks; however, gasoline inventories surged as refiners produced more fuel than the market could consume…if gas inventories remain elevated after the summer driving season, it could dent demand for feedstock Crude Oil…meanwhile, U.S. Crude Oil production continues to rise, up 10% since mid-2016 at 9.27 million bpd…amidst all of this, the current expectation that OPEC will extend its production cuts to cover all of 2017 should provide ample support for prices at key technical levels in the upper $40’s…
3. The NASDAQ hit another new all-time high in early trading of 6,046…Kopin Corp. (KOPN, NASDAQ), one of our favorite technology plays, jumped 35 cents yesterday for its highest closing price ($4.20) in more than 2 years…the Dow is up 8 points through the first 30 minutes of trading…in Toronto, the TSX has slid 64 points on softness in Gold and Oil while the Venture is 1 point lower at 806…PyroGenesis Canada (PYR, TSX-V) continues to look strong and is unchanged at 77 cents as of 7:00 am Pacific after its 7th straight daily advance yesterday…
4. Marathon Gold (MOX, TSX) has reported impressive results this morning from the deepest holes ever drilled at its Marathon deposit in the Valentine Lake Gold Camp…drill hole MA-17–175 intersected broad intervals of intermittent moderate to high-grade Gold to depths of 966 m, including 1.77 g/t Au over 101 m (196 m to 297 m)…other highlights from the same hole included 19 m @ 4.09 g/t Au (includes 5 m @ 12.54 g/t Au) between 531 m and 550 m, and 32 m @ 3.25 g/t Au (includes 5 m @ 11.08 g/t Au) between 881 m and 913 m…drill hole MA-17–174 featured 76 m @ 1.36 g/t Au (223 m to 299 m) and 35 m @ 1.80 g/t Au (342 m to 377 m)…deeper intercepts in hole 174 along the hanging wall edge of the mineralized corridor weren’t as strong as those for hole 175 (the 2 holes were spaced 180 m apart along strike), but both holes clearly demonstrate the potential for definition of additional Gold resources beneath the lower limit of the February 2017 resource body…Marathon is a classic orogenic Gold deposit, so it has strong underground mining potential to go along with its large near-surface open-pit resource…MOZ opened higher at $1.25 this morning and climbed as high as $1.30 before pulling back…it’s up a penny at $1.22 as of 7:00 am Pacific…
5. Eskay Mining (ESK, TSX-V) has finalized a formal option agreement with Silver Standard Resources (SSO, TSX) to accelerate exploration and development of ESK’s highly prospective SIB Property contiguous to the prolific Eskay Creek mine…under the terms of the deal, Silver Standard can earn up to a 60% undivided interest in the SIB, starting with an aggregate of $11.7 million in exploration expenditures over the next 3 years including $3.7 million in the first year…Carl Edmunds, chief geologist at Silver Standard, calls SIB an “extraordinary opportunity” given the fact it hosts numerous Gold-Silver occurrences over 4 km within the same volcanic rocks that host the Gold-Silver-enriched VMS deposits mined at Eskay Creek…historical drill results at the Lulu zone include 14.3 m @ 14.4 g/t Au and 1,060 g/t Ag, and 24.8 m @ 10.8 g/t Au and 766 g/t Ag…significantly, since those results in the 1990’s, Eskay Mining has found the extension of the Lulu and Eskay Creek host felsic volcanic rocks below a fault that had hindered further exploration efforts…the SIB is the best-chance immediate opportunity in British Columbia for another Eskay Creek-type deposit…at 44 sq. km, SIB represents just under 10% of ESK’s sprawling land package which features multiple other target areas prospective for various types of deposit styles including Eskay Creek-style mineralization…ESK was halted pre-market yesterday and has to be cleared to resume trading…
6. As we speculated yesterday in this space, Barkerville Gold Mines (BGM, TSX-V) seemed to have a financing in the works given a recent flurry of news releases on drill results from their Cariboo Gold Project…sure enough, the company this morning announced a $15 million bought deal at 95 cents with Haywood Securities as lead underwriter…meanwhile, BGM also intends to complete a concurrent non-brokered private placement of 16.7 million units on the same terms and conditions to Osisko Gold Royalties (OR, TSX) and Osisko Mining (OSK, TSX) for gross proceeds of $15.8 million, such that OR and OSK maintain their respective percentage ownerships in Barkerville…closing is expected by the middle of May…BGM, which already has more than 300 million shares outstanding, is off 4 pennies at 97 cents through the first 30 minutes of trading…
7. Pure Gold Mining (PGM, TSX-V) has intersected 133.4 g/t Au over 2 m in drill hole PG17–307 at a depth of 225 m below surface, the highest grade result to date from the McVeigh zone at its 100%-owned Madsen Gold Project where a 70,000-m, multiple drill rig exploration program continues…this intercept lies approximately 150 m below mined stopes on level 2 and outside of conceptual areas studied for potential mining development in the 2016 PEA…drilling has also confirmed that the structures hosting mineralization in the McVeigh extend over 600 m to the southwest as drill hole PG17–359 returned 13.9 g/t Au over 1.5 m in the Fork zone…the McVeigh, Fork and Starratt target areas link into a common mineral system extending for over 5 km…PGM is off a penny at 57 cents as of 7:00 am Pacific…
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A 50,000-m Drill Program? The Explorer That’s Punching Way Above Its Weight Class!
Hopefully CSR puts some news out soon….starting to build some selling pressure. Doesn’t look like it is quite ready to break out yet.
Comment by weatheritout — April 27, 2017 @ 10:18 am
Jon, have you heard anything in regards to Geotech flying the VTEM yet at the E&L this week, or is Regocci waiting for the completion of the VTEM to give us an update.Would be nice to hear something in that regards.
Comment by pole — April 27, 2017 @ 10:26 am
Love it when some nervous nellies, who simply don’t know, decide to part with CSR at these levels, weatheritout, especially with RSI(2) now at extreme oversold…we saw what happened last time at these levels…$7.8 million market cap, 30% below CUZ…ridiculous but only a few days I suspect before CSR puts its cards on the table…by the way, CSR’s Cobalt play is actually even more advanced than STM’s and they’ve got a market cap around $50 million…
Comment by Jon - BMR — April 27, 2017 @ 10:40 am
Jon,I just hung up the phone with Steve. Give him a call if you get a chance. He had lots to say and you can probably put it into words what he said a lot better than me.
Comment by pole — April 27, 2017 @ 10:44 am
My guess Pole is that we don’t hear anything for at least a month in regards to the VTEM. I could be wrong but by the time the results are analyzed and news release put out that would be my guess.
Comment by weatheritout — April 27, 2017 @ 11:15 am
A month is a reasonable time frame on results, weatheriout, though it’s possible something preliminary could surface prior to that, we’ll see. In the meantime, I suspect we’ll get news confirming the VTEM imminently plus updates on other ground in the area and elsewhere would be appreciated.
Comment by Jon - BMR — April 27, 2017 @ 11:26 am
Pole, perhaps for the benefit of us reading… you could be more elaborate?
Comment by Charles — April 27, 2017 @ 11:27 am
Cmon on Pole….spit it out
Comment by weatheritout — April 27, 2017 @ 11:28 am
You’re probably right weatheritout. But Steve did say that along with the E&L they would also include Brass Hill in the VTEM.The results will be interpreted by both Geotech and GGI’s team of experts. Steve is hoping for some big conducters to chase,and I couldn’t agree with him more.He said that GGI will be putting out a short NR for shareholders shortly.A few other surprising comments from Steve was that he was in talks with First Nations Groups which I found to be very constructive as things move forward.I also asked him if they planned on having “boots on the ground” at the E&L for June 1st, and he said with the below normal snow pack and quick melt that they will be ahead of schedule for the E&L.All in all it was a very interesting phone conversation. Glad I called him.
Comment by pole — April 27, 2017 @ 11:51 am
Pole, appreciate if you could make a few comments about your conversation with Regocci
Thanks
Comment by Dan1 — April 27, 2017 @ 1:23 pm
GGI – that was orchestrated trading on GGI today. Oh, by the way, the 6 figure sell order at .17 was there for 2 days and mysterously dropped off today. Can anyone see what is going on. Perfect opportunity to add.
Comment by dave — April 27, 2017 @ 1:41 pm
Trading action in both CSR and GGI almost suggests that it was a BIT subscriber that needed some money and had to sell out. Both being sold down into the bid. Someone needed some cash.
Comment by weatheritout — April 27, 2017 @ 1:57 pm
MITK – Reports record revenue and record profits in Q2 year over year. After hours trading up to $8.40 now. CEO says “Best quarter in company history”
http://www.stockwatch.com/News/Item.aspx?bid=U-z6746071-U%3aMITK-20170427&symbol=MITK®ion=U
Comment by Vepper — April 27, 2017 @ 2:01 pm
Why do I have a bad feeling here???? May coming… HUI and GDX/GDXJ getting trounced… gold steady…??
any rhyme or reason??? Goldcorp down 10% on good earnings.. this is not looking good at all from a miner perspective… add the nellies who will drop a stock 20% on 1000 shares I think we need a reset of expectations here….
could it be that we are not in a bull market??? but a bear counter trend rally since 2016??? the miners should not be behaving like this if the price of gold is expected to grow over the year..???
Comment by Patricia — April 27, 2017 @ 2:41 pm
GGI – month end cover on an acct is was it seems to be, especially if it was sitting and then had to whack out. maybe bot earlier this month on expectations. Unless, there is a financing under way, but there is no hype on SH, so those guys aren’t back in the game yet is my guess. All of the juniors in the area have to talk w the FN regularly and most get along, as long as there is a quid quo pro. DBV being an exception. Brass Hill is only 3 kms away from Q area, so makes sense to do the whole mtn, especially if you ascribe to the theory , that these things don’t happen in isolation in the Triangle
Comment by david — April 27, 2017 @ 5:25 pm
Jon, DVR closed pretty strong today. I wonder what’s next?
Comment by Charles — April 27, 2017 @ 5:58 pm
Tomorrow might be the last day for cheap CSR? We start a fresh month on Monday! GGM looked like it’s solid at this level 6.5-7.0.
Comment by STEVEN1 — April 27, 2017 @ 6:39 pm
Looks awesome, Charles. $2 million allows them to really ramp up the business. Double from here, easy, by summer.
Comment by Jon - BMR — April 27, 2017 @ 6:53 pm
Pole, thanks for the breakdown of your conversation with Regoci; sounds encouraging.
Jon, DVR, I like it. Looking forward to hearing from them next.
Comment by Charles — April 27, 2017 @ 7:34 pm
Good morning Jon, when do you think the team at Cxo will announce anything about a plan for the year? Also, I feel a lot of money is being held back till after the elections, what do you think?
Comment by Greg — April 28, 2017 @ 5:36 am
CPO: http://stocksyndicate.com/blog/first-drill-canadas-cobalt-hotspot-cpo-v/
Comment by STEVEN1 — April 28, 2017 @ 5:54 am
I’m sure we’ll hear from CXO in May, Greg…by early June conditions are ideal to commence ground programs in the Camp…Barkerville just got a bought deal for $15 million, and is doing another $15 million on top of that, just ahead of the election which is a good sign…I remain hopeful that British Columbians will do the right thing May 9 and keep the socialist hordes in the far reaches of the political wilderness where they belong…why would anyone with half a brain want to put the best-performing economy in the country at risk????…
Comment by Jon - BMR — April 28, 2017 @ 5:57 am
I 100% agree with you on the election front, that’s exactly what I thought. Why would anyone want to repeat what happened in Alberta. Too many people vote on just wanting change!
Comment by Greg — April 28, 2017 @ 6:11 am