Check the BMR comments section throughout the day for updates and helpful information. Morning Musings returns tomorrow.
1. Gold has traded between $1,271 and $1,290 so far today in advance of UK election results…meanwhile, the ECB has left its key interest rates unchanged while also removing a reference to the possibility that it might lower interest rates, suggesting some confidence in the euro zone’s economic recovery. “The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases,” the central bank said…at its last meeting, the ECB left the door open for lowering rates…the euro is flat in the wake of the ECB announcement while the greenback is up slightly…as of 7:00 am Pacific, Gold has retreated $13 an ounce to $1,274…Silver has slipped 26 cents to $17.30 while Copper and Zinc are leading base metals modestly higher…Crude Oil is flat at $45.76…
2. Global Gold ETFs posted inflows of 14.6 tonnes yesterday, the most in 11 months, a massive increase in demand that reflects a surge in safe-haven buying of the metal…almost 10 tonnes were attributable to the SPDR Gold Trust. “Clearly investors are seeking to hedge against the numerous risks,” Commerzbank noted…these risks include not only the U.K. election and a congressional hearing involving former FBI Director James Comey, but also events in the Middle East after 2 terrorist attacks in the Iranian capital of Teheran yesterday. “Although ISIS was probably behind the attacks, Iran is also holding Saudi Arabia partly responsible,” Commerzbank says. “There is thus the risk of tensions escalating further between Saudi Arabia and Iran – the two leading powers in the region – in addition to the latent crisis surrounding the Gulf emirate of Qatar.”
3. Tinka Resources (TK, TSX-V) has drilled one of the best intersections to date at its 100%-owned Ayawilca Zinc Project in central Peru…all 5 holes released this morning are from the South Ayawilca area…hole A17–063 returned 47.7 m grading 11.3% Zinc and also featured high Indium credits…this hole was collared about 200 m northeast of South Ayawilca discovery hole A17–056 which intersected 2 high-grade Zinc sulphide zones including 17.9 m at 11.6 % Zn and 51.9 m at 10.1% Zn…drill results reported so far in 2017 have defined high-grade Zinc mineralization at South Ayawilca over a northeast-southwest strike length of 370 m, connecting the South Ayawilca discovery area to the Central Ayawilca Zinc resource…this could add an additional 500 m of mineralization along strike extension to Tinka’s existing resources…TK is up a nickel at 64 cents as of 7:00 am Pacific…
4. On the subject of Zinc, Blind Creek Resources (BCK, TSX-V) has hit a new multi-year this week as it pursues fresh exploration at one of Western Canada’s largest undeveloped Zinc-Lead-Silver deposits in the central Yukon with robust exploration upside…meanwhile, the company recently acquired the fully permitted Engineer Gold mine in northern B.C. where it’s pursuing small-scale but exceptionally high-grade production (Inferred resource at 1.75 oz/ton using a 25 g/t cut-off)…a large land package strategically assembled around that deposit by BCK features a “Porgera style” epithermal system with 25 known veins and 2 major shear structures, providing plenty of exploration upside…proceeds from a $2 million recently announced financing will go toward summer programs at both properties…BCK, with just 20 million shares currently outstanding, is off 2 pennies cents at 30 cents as of 7:00 am Pacific after reaching a new multi-year high of 38 cents Tuesday…
5. The Venture is off 2 points to 791 as of 7:00 am Pacific as weakness in Crude Oil the past few days has put some downward pressure on the Index…powerful support extends from the rising 300-day moving average (SMA) around 770 into the low 780’s…the TSX and Dow are both up slightly through the first 30 minutes of trading…Arizona Mining (AZ, TSX) has appointed 2 high profile individuals to the company’s board of directors – former Speaker of the House John Boehner and investment banker William Mulrow…Chairman Richard Warke stated, “The addition of these distinguished directors to our Board will greatly enhance our profile in U.S. markets and emphasizes the importance of Hermosa-Taylor as a top tier Zinc-Lead-Silver project with an exciting future.”
6. Step-out drilling by IDM Mining (IDM, TSX-V) at its Red Mountain Project near Stewart has returned encouraging assays from 2 exploration holes north of current resources, which could help extend the potential mine life of the deposit…drill hole U17–1248 returned 7.5 m grading 4.9 g/t Au and 23.4 g/t Ag 250 m along strike from current resources in the “SF” zone…meanwhile, in the same zone, drill hole U17–1247 intersected 7.3 g/t Au and 5.2 g/t Ag over 5.4 m approximately 125 m along strike from current resources…
7. Nighthawk Gold (NHK, TSX) is off slightly in early trading after releasing initial drill results from 8 holes (2,658 m) at its Colomac Gold Project in the Northwest Territories…drilling focused on 2 zones along the Colomac sill, Zone 1.5, and Zone 2.0…all holes returned broad intercepts of mineralization highlighted by Zone 1.5 intersections where C17–04B cut 50.3 m @ 2.6 g/t Au, including 23.7 m of 4.8 g/t…drilling continues to support the zone’s consistency and continuity of mineralization, and true widths up to 50 m, that characterize its high-grade nature…Zone 1.5 maintains a steep to sub vertical plunge to the north and has now been traced to a vertical depth of 300 m and remains open…the 2017 drill program is targeting 25,000 m of drilling with 3 drills now active, focused on further expanding the high-grade Gold mineralization at Zone 1.5 down plunge and to the north, which was delineated late last year…
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High Volume Alert(s) ! …GG +90% …CSR +200% …BLFS +200% …RMO +250% …VPT +500%
Comment by Daniel — June 8, 2017 @ 2:12 pm
CPO – nice to see some volume and uptick
Comment by Foz1971 — June 8, 2017 @ 3:41 pm
I think you could include CPO in your high volume alert, traded 1.2 million shares today.
Comment by Danny — June 8, 2017 @ 4:16 pm
Yes, Fox 1971, CPO finally got a good cleanup today! The offers were taken out and this thing looks ready to go back up! They are drilling and anything is possible. Jon, can you get an update on things?!
Comment by STEVEN1 — June 8, 2017 @ 5:37 pm
I guess gold was a head fake the other way this time, wonder if it will bounce back next week, hum.
Comment by Laddy — June 9, 2017 @ 5:55 am
Hi Jon, GGI going down when you expect it should be going up. What I would like to see is management putting their money where there mouth is. If they think the property is host to massive sulphides, why aren’t we seeing insider buys?
Comment by Dan1 — June 9, 2017 @ 6:42 am
And to add to my last statement, – very big ask at 15.5 cents
Comment by Dan1 — June 9, 2017 @ 6:43 am
Look at the RSI(2) on GGI, Dan1, and support, and you’ll feel better. In terms of the ask, have u thought that a) it could be related to financing in some way; or b) maybe an astute trader is trying to scare a few nervous nellies into giving up some cheap shares?
GGI has its money and the ground game starts as soon as the snow is gone. There was less snow over the winter, however the spring melt in the district has taken longer than usual. Rather than a June 15 start-up date, probably looking at 2 weeks from now.
Comment by Jon - BMR — June 9, 2017 @ 6:46 am
Jon, you said GGI has it’s money. The closing hasn’t been announced yet. How do you know this? Thanks
Comment by Dan1 — June 9, 2017 @ 6:53 am
GGI. 1/2MM offer is a tad overkill. not many people,groups have that leverage, so I’m sure they know who it is and to do this 3 wks into a PP, suggests , to me, someone thinks they want it lower. Steve, cash the chqs you have and move along!
Comment by david — June 9, 2017 @ 7:05 am
I know this, Dan1, because it’s my job to know, to be on top of things. I keep my ears open on the street. I’m aware of some of the people who are in.
Comment by Jon - BMR — June 9, 2017 @ 7:17 am
Thanks Jon
Comment by Dan1 — June 9, 2017 @ 7:24 am
Jon
Can you share the names of those people that are in GGI PP in a private email alert?
Comment by Greg — June 9, 2017 @ 7:45 am
I’m sure if Jon is aware on rumblings on the street, these then would be bigger players, Jon?
Comment by Laddy — June 9, 2017 @ 8:06 am
Greg, that’s a privacy issue of course, and if those individual consented, no problem. Bottom line, I see strong participants and the geo crews are chomping at the bit to get on the ground and test those large conductors with some surface sampling to further delineate drill targets, as soon as ground conditions permit. The show goes on as they say. NO ONE in this camp is happy with their share price at the moment – CXO at 25 cents for example is ridiculous. But that will all change as work on the ground begins for everyone and overall market sentiment improves. It’s a game of patience right now. Important to stay focused on the end game.
Comment by Jon - BMR — June 9, 2017 @ 8:51 am