Check the BMR comments section throughout the day for updates and helpful information, and visit BMR for possible additional posts today. Morning Musings returns tomorrow.
1. Gold has traded between $1,259 (potential new support) and $1,269 so far today as it attempts a confirmed breakout above $1,260 to close out the month…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,264…TD Securities stated, “Given the current political circumstances and emerging uncertainty surrounding U.S. rate hikes and broader monetary and fiscal policy, we believe there could be further room for Gold to move higher still. The yellow metal may well trend toward a technically determined high near the upper bound of the trading range just under $1,290“…Silver is up slightly at $17.34…political uncertainty in Europe is another factor in Gold’s favor…in particular, investors are nervous about the German vote September 24 along with mounting speculation that Italians could head to the polls in autumn though elections aren’t due there until May 2018…euro zone finance ministers’ failure to agree on Greek debt relief with the International Monetary Fund last week has also added to risk aversion…
2. Goldman Sachs‘ analysts have trimmed their longer-term forecasts for Oil prices, saying that falling U.S. production costs will keep supply rising for years to come…the bank said that once OPEC’s production growth resumes after its self-imposed cuts, U.S. and OPEC output would rise by 1 million to 1.3 million bpd between 2018 and 2020…Goldman, however, remains bullish on near-term prices as inventories normalize…
3. The Venture is flat at 810 through the first 30 minutes of trading…Jaxon Minerals (JAX, TSX-V) continues to trade robustly, up a penny at 24 cents…it has momentum in its favor as it attempts a breakout above that resistance…Arizona Silver (AZS, TSX-V) was halted at 6:45 am Pacific, pending news…AZS has climbed dramatically this month after the company reported May 11 that it had intersected massive silica with locally banded quartz-chalcedony veins over a downhole distance of 44.2 m at its Ramsey Silver Project in Arizona…Orca Gold (ORG, TSX-V) is pushing higher after reporting this morning that an extensive airborne geophysical survey carried out to the west of its 70%-owned owned Block 14 Project in Sudan has resulted in the discovery of a new and larger water resource for the project – a significant development…the TSX is 25 points lower while the Dow has slipped 37 points as of 7:00 am Pacific…Amazon (AMZN, NASDAQ) traded above $1,000 per share this morning for the first time ever…
4. Golden Predator Mining (GPY, TSX-V) is up modestly in early trading after releasing assay results for 16 of 43 drill holes completed as of mid-May at its 3 Aces Project in southeastern Yukon…step-out drilling has successfully encountered mineralization 150 m from previous Ace of Spades drill intercepts while this morning’s results also featured the highest-grade drill intercept received to date on the Ace of Spades vein…assays included 39.6 m @ 13.3 g/t Au from a depth of 9.1 m (hole 3A17–098); 14.5 m of 15.3 g/t Au from a depth of 8.4 m (3A17–099); and 3.05 m @ 8.12 g/t Au (3A17–111) from a depth of 16.8 m…the 2017 drill program started in February and is initially focusing on the Spades Zone before expanding to other areas of the property…the fully funded 40,000-m drill program will continue throughout 2017…
5. RJK Explorations (RJX, TSX-V) has cut an interesting deal with Earth Science Services Corp. (ESSCO) which has identified a promising area at RJK’s Maude Lake Gold Property in northern Ontario using its proprietary target modeling interpretation system (Maude Lake has already delivered some impressive results this year and features abundant historical intercepts including 19.5 g/t Au over 8 m at depth)…ESSCO will complete 1 drill hole to test its model…if the hole returns mineralization that RJK determines, at its sole discretion, deserves further evaluation and drilling of the target area, RJK will then issue to ESSCO 1 million shares…RJX.A is up more than 50% this month, closing yesterday at 23 cents – just 1.5 cents below a new multi-year high…
6. Lundin Gold (LUG, TSX) has arranged a project finance package of $400 million to $450 million with the Orion Mine Finance Group and Blackstone Tactical Opportunities, underscoring the growing support for mining investment in Ecuador as Lundin works toward development of the rich Fruta del Norte Project…Ron Hochstein, Lundin President and CEO, says the financing “confirms the strength of this project and gives us the ability to move full speed ahead with construction.” The company says the expected first Gold production has been moved forward several months, from the 1st quarter of 2020 to 4th quarter of 2019…average annual Gold production is anticipated to exceed 300,000 ounces over 15 years at an average life-of-mine cost of $561 an ounce and all-in sustaining cash cost of $609 an ounce (U.S.)…life-of-mine production is expected to be approximately 4.5 million ounces of Gold and 5.5 million ounces of Silver…estimated project capital cost is $684 million…
7. Osisko Mining (OSK, TSX) reported significant new assay results this morning from 13 intercepts in 10 drill holes focused on infill and expansion drilling in the main Windfall deposit and Lynx Zone at its Windfall Lake Gold Project in Urban township, Quebec…highlights included OSK-W-17–837 in the Lynx Corridor which intersected 97.4 g/t Au over 8.5 m (33.7 g/t Au over 8.4 m cut) and 116 g/t Au over 2.4 m (46.4 g/t Au over 2.4 m cut) in OSK-W-17–814 in the new Lynx 5 discovery…the 400,000-m drill program continues…the Windfall Lake deposit is currently one of the highest grade resource-stage Gold projects in Canada…the bulk of the mineralization occurs in the Main Zone, a southwest/northeast trending zone of stacked mineralized lenses, measuring approximately 600 m wide and at least 1,400 m long…the deposit is well defined from surface to a depth of 500 m, and remains open along strike and at depth…mineralization has been identified only 30 m from surface in some areas and as deep as 870 m in others, with significant potential to extend mineralization up and down-plunge and at depth….
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I think assays also pending on rjx.a
Hopefully there positive as well
Comment by Silverhook — May 30, 2017 @ 9:10 am
Yes, RJX started Phase 2 drilling around mid-April…
“Phase 1 of the drilling program was successful in further defining the 5 zone at depths of less than 100 metres with intersections of 2.5 metres of 9.05 grams per tonne gold and 14 metres of 5.37 grams per tonne gold (true widths are not determined at this time).
“RJK believes the real potential for increasing the historical resource at the property lies with downplunge drilling below the 330-metre level, where historical drilling had returned high-grade Gold intersections, including 8.08 metres of 19.54 grams per tonne gold at the 375-metre level and 2.53 metres of 12.34 grams per tonne gold at the 475-metre level. The initial drill holes in this Phase 2 drilling will be targeting these areas.”
Comment by Jon - BMR — May 30, 2017 @ 9:40 am
Arizona silver – OOPS
Comment by david — May 30, 2017 @ 10:02 am
Glad we didn’t bite on that one, David, though the run-up on speculation was impressive. Doesn’t help when companies give visuals like they did and bomb on results. At 27 cents still has a $9 million market cap. Doesn’t deserve half that.
Comment by Jon - BMR — May 30, 2017 @ 11:07 am
Regarding Arizona Silver, just proves again that no matter good things look, how good the visuals are, the proof is always in the drill results. This applies to any junior in this sector. I like GGI but it is certainly not a sure thing, if it was the price would be higher.
Comment by Danny — May 30, 2017 @ 2:56 pm
Danny, all that Arizona Silver proves is how stupid and foolish many investors can be, and how mob mentality works, which should actually give u great encouragement with respect to certain other plays that are undervalued by any reasonable interpretation of geological facts that were obviously overlooked with AZS during its run-up.
Sooner or later a market re-set always kicks in, either positive or negative, and undervalued or overvalued plays are adjusted accordingly.
With AZS, countless crowd followers incapable of determining intrinsic value or real potential assumed what AZS had must be great simply because the stock price kept going up.
Astute investors will always look beyond a stock’s market price at any given moment to discern what the market is missing, misreading or not factoring in.
That’s how u make money – and by selling into speculations that become extreme.
That’s the only way to look at it.
Comment by Jon - BMR — May 30, 2017 @ 4:44 pm
Jon, those are good comments. You have to be rational, following the crowd never works. You have to get to the party early and not stay too late.
Comment by Danny — May 30, 2017 @ 6:05 pm
More news from CNZ this morning…stock looking much healthier technically…
Mr. Ray Paquette reports
CANADIAN ZEOLITE ANNOUNCES NON- BINDING LETTER OF INTENT TO ACQUIRE U.S. MANUFACTURER AND DISTRIBUTOR OF ZEOLITE PRODUCTS
Canadian Zeolite Corp. has signed a non-binding letter of intent (LOI) to acquire 100 per cent of a manufacturer and distributor of zeolite products based in the United States.
The target company has a state-of-the-art, GMP-certified (good manufacturing practice) research and development lab in Arizona where it develops its product formulations and manufactures product lines. The facility can accommodate bulk zeolite warehousing and distribution of manufactured zeolite products into the U.S. market. The company is focused on creating nutraceutical products for human use, as well as enhanced fertilizers and water filtration systems. The target company chief executive officer stated: “The ability to partner with a company that has 100-per-cent-natural Canadian zeolite is a tremendous opportunity for us. We have tested the Bromley Creek zeolite and test results have far exceeded our expectations.”
Ray Paquette, chief executive officer of Canadian Zeolite, stated: “We are currently conducting our advanced due diligence and assessing how the target company will complement our existing operations. The ability for us to enter the U.S. market with products infused with our natural zeolite is very exciting and will add immense shareholder value.”
At the time of signing of the non-binding LOI, terms had not been discussed. The company anticipates providing additional information regarding the transaction in the coming weeks.
Comment by Jon - BMR — May 31, 2017 @ 6:46 am