Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has traded between $1,264 and $1,269 so far today…as of 7:00 am Pacific, the yellow metal is up $2 an ounce at $1,266…a pick-up in Asian demand has helped support Gold prices in the $1,260’s this week…premiums in China increased to $8 to $10 above the international benchmark from $3 to $4 an ounce last week, while India has reported strong sales related to Akshaya Tritiya, the 2nd-biggest Gold-buying occasion in India after Dhanteras, which falls in October-November…while solid technical support for Gold 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…however, the broader picture remains very positive and bargain hunters would likely step in vigorously on any additional minor weakness in Gold…
2. The U.S. economy turned in the weakest performance in 3 years in the January-March quarter as consumers sharply slowed their spending…the result repeats a pattern that has characterized the recovery since 2009 – lackluster starts to the year…the Commerce Department says GDP grew by just 0.7% in Q1 following a gain of 2.1% in the 4th quarter…economists polled by Reuters had expected a growth rate of 1.2%…the slowdown primarily reflected slower consumer spending, which grew by just 0.3% – the poorest showing in more than 7 years…however, business and consumer confidence have both shot up significantly during the first few months of the new Trump administration and that should translate into much better growth numbers later in the year…deep corporate and individual tax cuts, as proposed by the White House Wednesday, would also be a major boost if they can be pushed through Congress…
4. It has been a rough week for the Venture but an ideal time for astute investors to scoop up bargains given the tremendous technical support underpinning the Index between 780 and 800…the Venture has recovered 3 points to 803 as of 7:00 am Pacific on this final trading day of the month…PyroGenesis (PYR, TSX-V), which has climbed nearly 50% this week, is up a penny at 74 cents…in Toronto, the TSX has added 73 points with the Gold Index rebounding 4 points to 206…it fell as much as 8.2% this week…the NASDAQ has jumped another 14 points to 6063…Mitek Systems (MITK, NASDAQ), which we’ll have an update on in Morning Musings, is trading robustly after reporting record revenue and profitably for fiscal Q2…the Dow is off 16 points through the first 30 minutes of trading…
5. Enforcer Gold (EGM, TSX-V) just raised another $5 million (hard dollar at 20 cents, flow-through at 25 cents), completing the final tranche of an over-subscribed financing as announced yesterday…that’s $9 million the company has raised over the past 4 months as it prepares to commence a major exploration program set to commence in mid-May and run uninterrupted through late fall at its Montalembert Gold Project in northern Quebec…drilling is anticipated to commence in mid-to-late June and will initially test 4 high-priority targets based on the company’s review of historical data…VEIN is unchanged at 18 cents in early trading…
6. A top-performing stock this week has been Deveron UAS (DVR, CSE), one of our favorites which is in the midst of completing a game-changing financing for at least $2 million (the initial tranche for $1.3 million has already closed)…the company’s recently announced multi-year deal with Thompsons Ltd. is further evidence that DVR is dominating and leading innovation in drone-data-related precision agriculture…Norm Lamothe, the original owner and developer of UAS business Eagle Scout acquired by DVR last year, stated: “There are so many opportunities to apply technology to the 88 million acres of farmland in Canada, and our UAV service delivers data analytics and solutions while saving the farmer the additional burden of owning hardware, interpreting data, planning flights and dealing with the regulatory system.” Deveron UAS is making new inroads into Western Canada as well as the United States…
7. Keep an eye on RJK Explorations (RJX.A, TSX-V) which has started Phase 2 of a 5,000-m drill program at its 100%-owned Maude Gold Property located on the Pipestone fault within the Timmins-Matheson Gold corridor…what’s significant is that the RJK is now targeting the area below the 330-m level where where historical drilling had returned high-grade Gold intersections including 8 m of 19.5 g/t Au at the 375-m level and 2.5 metres of 12.3 g/t Au at the 475-m level…potential to intersect significant high-grade zones exists with downplunge drilling…with only about 17 million shares outstanding, RJK’s current market cap is just $2.4 million with the stock trading at 14 cents…
The most popular recent BMR articles…
A 50,000-m Drill Program? The Explorer That’s Punching Way Above Its Weight Class!
GGI looks like their warming up the chopper.
April 28, 2017
Garibaldi Launches E&L Vtem Survey With Geotech
Vancouver, British Columbia, April 28, 2017 – Garibaldi Resources (TSX.V: GGI) (the “Company” or “Garibaldi”) is pleased to report that final staging by technical crews from Geotech of Aurora, Ontario, is under way for the first-ever helicopter-borne Versatile Time-Domain Electromagnetic (VTEM) and magnetics survey over the company’s flagship E&L massive sulphide nickel-copper-cobalt deposit in the heart of the prolific Eskay Camp in northwest British Columbia.
The modern VTEM method is ideally suited for locating the discrete conductive anomalies associated with nickel sulphide deposits, with a maximum depth of detection of approximately 300 meters plus range. Previous less advanced airborne EM surveys at E&L in the 1990’s had a maximum depth of detection of approximately 75 meters.
The VTEM survey is on schedule and the Company expects to have interpretations completed and initial drill targets selected by the end of May. A Notice of Work application, filed with the government in February, proposes 5,000 meters of diamond drilling as part of Phase 1 exploration during 2017.
Steve Regoci, Garibaldi President and CEO, commented: “Garibaldi’s nickel team is eagerly anticipating the completion and interpretation of the VTEM survey. Having the ability to compare signatures from the known sulphide zones to the “Q” anomaly and other areas around the deposit that were overlooked historically will be invaluable. The VTEM data will provide the final pieces to our puzzle by connecting modern geophysics with the associated geological evidence collected since last summer, which strongly indicates the potential for an important new discovery at Nickel Mountain.”
In addition, Garibaldi is pleased to announce that it has executed a communications agreement with the Tahltan Central Government to ensure a mutually beneficial long-term dialogue committed to co-operating with local communities with regard to collaborative resource development.
E&L Fact Sheet
To view an updated E&L Fact Sheet, please visit the company’s homepage or the following URL:
http://www.garibaldiresources.com/i/pdf/GGI_EL_Project_Fact_Sheet_2017.pdf
E&L Geologic Model
To view the E&L geologic model, and a comparative of nickel tenors, please visit the company’s homepage or the following URL:
http://www.garibaldiresources.com/i/pdf/GGI-E-and-L-Tenor-Comparative.pdf
Qualified Person
Mr. Everett Makela, P.Geo., a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical disclosure in this news release.
About Garibaldi
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in Mexico and British Columbia.
Comment by Laddy — April 28, 2017 @ 8:17 am
Greg – I dont think its about change – I honestly think its about doing the right thing… we as an electorate want transparency and proper stewardship of our money and country… when one party fks up, well whos next… noone seems to consider the consequences of what their actions will bring.
Oleary I think knew the outcome before it happened – honesty??? not sure.. I know Mike Harris was involved in his campaign, but think that he at least raised the profile of the party which in my mind is good.
But really – please just do the right thing as elected politicians… but most just cozy up the trough.
With us here, political decisions can ruin our portfolios.. look at the ring of fire, and Northern Dynasty… lots of dollars lost for no reason.
they can even help themselves!!
If people knew the consequences of their vote and not be apathetic about it we would be in better shape. Wynne in Ontario is a perfect example. a balanced budget my A$$!!!! smoke and mirrors.
Comment by Patricia — April 28, 2017 @ 8:26 am
Glad to see Regoci came thru with promised NR.He sounds as positive about the E&L as he did on the phone yesterday.Can hardly wait for their interpretations of the VTEM results in the next few weeks.Lots going on behind the scenes with GGI which is great.
Comment by pole — April 28, 2017 @ 8:40 am
GGI – Yes Pole, lots going on. Maybe she creeps up in May and breaks out in June
Comment by dave — April 28, 2017 @ 10:55 am
That’s what I’m hoping for Dave.The VTEM interpretation will definitely be the next catalyst to get the ball rolling for GGI.
Comment by pole — April 28, 2017 @ 11:15 am
A NR post VTEM would have gone much further. Not trying to be negative, but actions speak louder then words.
Comment by Charles — April 28, 2017 @ 1:32 pm
You’re exactly right, Charles…actions do speak louder than words…April 13 news said the last half of April and indeed, Geotech was engaged a week ago and their crews are on the ground, mobilizing to start the VTEM. I’m sure we’ll get more details on the VTEM (km’s flown, spacing, etc.) as soon as it has been completed, and perhaps they’ll decide to use Geotech to expand geophysics over other parts of their landholdings in the district. This VTEM is going to light up big-time because we know from the historical reports that the sulphides do extend well beyond the deposit that was outlined thru drilling. We’ll explain that in our Sunday Sizzler.
Again, with regard to actions, I’ve taken advantage of a “unique supply opportunity” by adding to my GGI position yesterday and Thursday below 15 cents which I consider a gift. When I say “unique supply opportunity”, I’m referring to the 473,000 PI flow-through shares that recently became free-trading but not much is now left. You’ll note that PI was the largest seller of GGI in April (322,000 shares). If you’re wondering why, it’s because they picked up 473,000 shares in the flow-through PP at 15 cents in December (GGI news confirmed their commission of $5,680, for those who pay attention to detail, so do the math at 8%). Of course those can be sold at .14 or .15 for a profit given the tax break on the flow-through. Brokers play this game all the time, it’s an automatic sale as soon as the stock is free-trading. Of course in the case of Secutor, we know they have a cute way of shorting so they make sure they sell before the 4-month hold is up—-their entire December flow-through position (1.3 million) was dumped into the GGI market in January/February.
So, we have PI to thank for the gift at .14-.15 right now on GGI and they don’t have a lot left, so grab while you can. I said the same thing about Secutor Jan. 31/Feb. 31 when they were unloading the last of their 1.3 million at 14 cents and the stock was up 50% in 5 days after that when the supply disappeared.
Comment by Jon - BMR — April 29, 2017 @ 5:36 am
Looking forward to the Sunday Sizzler Report Jon, and more about the E&L.
Comment by pole — April 29, 2017 @ 8:27 am
Jon, thanks for the context there. Like I said, I wasn’t trying to be negative; mostly just ignorance on my part because I was assuming we would not have another update until the results of the survey are in. My comment stemmed from the perspective of the current stock price in relation to any hard dollar financing in the near future. However, you’re saying there is likely to be an update post survey which is very encouraging.
Comment by Charles — April 29, 2017 @ 9:11 am
The VTEM will change everything, Charles, including limiting share dilution. The brokers would have loved to have done a big PP ($3+ million) on GGI at a dime but that wasn’t allowed to happen. There is high confidence the VTEM will demonstrate major tonnage possibilities for the E&L, and we already know the nickel tenor of the sulphide is very high which means accumulations of sulphides elsewhere beyond the known deposit will have the same tenor profile and high grades. Strong VTEM results will equate to a big move in GGI, reducing future dilution and pushing out the timing of it which is very positive for current shareholders.
Comment by Jon - BMR — April 29, 2017 @ 11:12 am
Jon, yes Regoci has done a great deal with very little financing or dilution. As with anything, timing can make huge differences. Again, thanks for the context, it’s encouraging!
I am very bullish on GGI and I have a strong position at a price that I like very much – I don’t plan to Let go of it anytime soon.
You guys at BMR rock. I have no where near the amount of savvy. 😉
Comment by Charles — April 29, 2017 @ 8:31 pm
Thanks for the explanation on PI. I dont see ggi staying down for long.
Comment by dave — April 30, 2017 @ 4:30 pm