Check back during the day for updates and helpful information in our comments section. BMR Morning Market Musings returns tomorrow.
1. Gold has traded between $1,222 and $1,228 so far today, ahead of tomorrow’s important non-farm payrolls report from the Labor Department…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,224 while Silver has retreated 10 cents to $15.98…Gold’s nearest support is $1,215, and the metal’s technical posture suggests a turnaround is not far off…minutes from the U.S. Federal Reserve’s monetary policy meeting yesterday showed no consensus on the pace of interest rate hikes…
2. Job creation in the U.S. private sector tailed off more than expected in June in another sign that the economy is getting closer to full employment, according to a report today from ADP and Moody’s Analytics…companies added 158,000 positions for the month, still strong but well below the robust 230,000 number the report showed in May. “The job market continues to power forward,” Moody’s Analytics’ chief economist Mark Zandi said in a statement. “At this pace, which is double the rate of labor force growth, the tight labor market will continue getting tighter.”
3. After a sharp correction yesterday, Oil prices have resumed their upward trend this morning…traders today will be looking to see if data from the American Petroleum Institute (API) showing Crude inventories fell more sharply than expected last week are confirmed by government figures scheduled to be released within the hour…Russian Energy Minister Alexander Novak says the global pact by OPEC, Russia and other producers to cut Oil output has dampened price volatility and is reducing bloated inventories, so no immediate extra measures are needed to prop up prices…WTIC is up 83 cents at $45.96 as of 7:00 am Pacific…
4. A sign of the times – Tahoe Resources (THO, TSX) has received a provisional decision from the Supreme Court of Guatemala in respect of an action brought by the anti-mining organization, CALAS, against Guatemala’s Ministry of Energy and Mines (MEM)…the action alleges that MEM violated the Xinca indigenous people’s right of consultation in advance of granting the Escobal mining license to Tahoe’s Guatemalan subsidiary, Minera San Rafael…the provisional decision is in respect of a request by CALAS for an order to temporarily suspend the license to operate the Escobal mine until the action is fully heard…Tahoe says its understanding is that no Xinca representative or community is currently participating in the CALAS lawsuit against MEM…the company says it will take legal steps possible to have the ruling reversed and the licence reinstated as soon as possible, including immediately appealing the decision to the Constitutional Court…based on similar cases in the past, Tahoe estimates the Constitutional Court would rule on an appeal within 2 to 4 months…Escobal, approximately 40 km east-southeast of Guatemala City, is one of the largest Silver mines in the world…it has completed 3 years of production (21.2 million ounces of Silver in concentrate last year) and contains Proven and Probable reserves of 23.7 million tonnes grading 351 g/t Ag (267.5 million ounces)…THO has plunged $3.07 a share to $7.69 through the first 30 minutes of trading…
5. The Venture is up 2 points at 765 as of 7:00 am Pacific but volume remains light…Zecotek Photonics (ZMS, TSX-V), which jumped yesterday on high volume after news of a deal with a German car manufacturer, is off a penny at 31.5 cents in early trading…a 4-year weekly chart shows ZMS threatening to break out above a downtrend line that formed in 2014 and a 1.5-year horizontal channel…key resistance in the low 30’s…the broader markets are under some pressure this morning…the Dow, dragged down by tech stocks, is off 116 points while the TSX has slipped 74 points as of 7:00 am Pacific…
6. Imperial Metals (III, TSX) was halted pre-market this morning and then announced that 2nd quarter production results from the Red Chris mine were 15.4 million pounds of Copper and 6,159 ounces of Gold…the results are weaker than expected and similar to the production levels achieved in the 1st quarter of the year…Copper recovery continues to be lower than planned and even though higher grades of ore are scheduled to be mined in the 2nd half of the year, the company says it’s unlikely to meet the lower end of its 2017 targeted Copper production level of 85 million pounds of Copper…the revised production target for the year is in the range of 80 to 83 million pounds of Copper…Gold production at Red Chris for 2017 is expected to be approximately 40,000 ounces, the lower end of the targeted range of 40,000 to 45,000…
7. Trifecta Gold (TG, TSX-V), a recent spinout from Strategic Metals (SMD, TSX-V), has announced a proposed $1.5 million financing this morning consisting of up to $1 million in flow-through units at 25 cents and $500,000 in non-flow-through units at 20 cents…a half warrant is attached to each unit…field crews will soon mobilize to Trifecta’s Eureka and Trident properties in preparation for diamond drilling which is expected to commence late this month…
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Jon, is today the day we finally hear from Steve. It’s been 6 long weeks since the last NR. Starting to get a little antsy.
Comment by pole — July 6, 2017 @ 7:59 am
Maybe, maybe not, pole…we’ll see…very soon I’m sure, but all is on track and I’m only anxious about seeing that first hole cut through the known mineralization and then test the conductor.
Comment by Jon - BMR — July 6, 2017 @ 8:08 am
Hi Jon,
Will you be a seller of GGI if there is a run prior to the results of the first hole?
Comment by David D — July 6, 2017 @ 8:19 am
That’s a good thing to be anxious about Jon 🙂
Comment by Foz1971 — July 6, 2017 @ 8:24 am
Thanks Jon.I guess that’s why they say patience is a virtue.
Comment by pole — July 6, 2017 @ 8:24 am
I mentioned DEC a month or so ago. Fidelity had accumulated over 3 million shares on the open market. they continue to be the major buyer the last 2 days off that news release.
Comment by dave — July 6, 2017 @ 8:25 am
You’d be wise, pole, to be patient and accept the interpretation of one of the world’s foremost Nickel sulphide experts in Dr. Lightfoot with regard to the E&L…
Just speculating, but it’s quite possible the conductor below the historic mineralized zone at the E&L is so stunning that Geotech is double and triple-checking final results…
Look at the diagram on the latest E&L presentation and understand where the TOP of this conductor is based on preliminary data…and keep in mind that the deepest hole drilled from surface by Sumitomo went to a depth of 121 meters and finished in massive sulphides in the final meter…much high-grade mineralization defined in those near-surface holes…
In terms of vertical depth, Sumitomo may have missed a monster by less than 50 meters.
How the conductor could be related to anything but massive sulphides at this point, given all that’s known about the E&L, is inconceivable.
Comment by Jon - BMR — July 6, 2017 @ 9:52 am
CSR looking good today
Hopefully it will break out of this obviously manipulated trading range
Need a good NR and some volume and up she goes
This cobalt demand is not going away anytime soon
Almost everyday you see or hear about a auto manufacturer increasing their electric car production by 2018-2020
Comment by Gregh — July 6, 2017 @ 2:30 pm
You’re right, Greg. Excellent volume in CSR today and fresh news does look imminent.
The physical Cobalt market is very tight, much has been gobbled up. These good Cobalt plays could go to the moon anytime over the next 6-9 months on a major spike in the Cobalt price, beyond what we have seen already.
Lots of opportunity for new discoveries in northern Ontario plus production possibilities from what currently exists.
Perhaps Tahoe Resources (THO, TSX) will appreciate even more the benefits of northern Ontario – 4 million ounce Gold deposit just west of CSR – after a bunch of fascists were able to shut down their Silver mine in Guatemala today through a court order.
Justin Wynne on the way out as Premier next year, so a favorable political trend in Ontario makes that jurisdiction more attractive than it has been for many years, relative to other parts of Canada.
Comment by Jon - BMR — July 6, 2017 @ 2:43 pm
Couldn’t help but notice a 300,000 share buy on CPO in the last minute of trading. Hopefully that person knows something.
Comment by Danny — July 6, 2017 @ 10:00 pm
Over 12 million shares traded in CPO over the last 5 sessions, Danny…cleans up a lot of that spring PP paper. The silence is intriguing. No news from the company since drilling started in late May.
Comment by Jon - BMR — July 6, 2017 @ 10:07 pm
Mr. Jason Cubitt reports
NEW MASSIVE SULPHIDE OCCURRENCES IDENTIFIED AT HAZELTON PROPERTY
Jaxon Minerals Inc. has provided an update on the exploration program at its 100-per-cent-owned Hazelton Ag-Au-Zn-Pb (silver-gold-zinc-lead) project. The company’s goal in this first phase is to establish the continuity and extent of previously identified high-grade, stratified massive sulphide beds, which have been historically mapped over an area of roughly one square kilometre.
Jason Cubitt, president of Jaxon Minerals, stated: “Our field crews have done a fantastic job exposing both historic and newly discovered massive sulphide beds, and the scale and extent of mineralization at surface is incredibly impressive. With initial assay results soon to be received, I am excited by our progress.”
Highlights:
New discoveries;
Airborne geophysics survey assessment;
IP (induced polarization) and mise a la masse survey plan;
122 rock samples received by assay lab;
Structural geologist engaged.
New discoveries
Several new significant massive sulphide occurrences have been identified at the Max zone — both stratiform and feeder/breccia systems to the overlying stratiform mineralization. The new showings and eight newly discovered extensions to existing historical showings (along both strike and adjacent bedding) are distributed on the hillside from elevations of 539 metres to 753 metres (214-metre vertical extent) and over approximately 1,000-metre lateral extent.
VTEM (versatile time domain electromagnetic) survey assessment
As previously reported, Jaxon recently acquired historic data from an airborne resistivity/magnetics survey flown in 2012. Jaxon commissioned Condor Consulting Inc. to carry out processing and analysis of the EM and resistivity data on the 454-line-kilometre survey to assist in targeting at depth the highly mineralized VMS (volcanogenic massive sulphide) showings found on surface at the Max and Knoll zones.
Two of Condor’s target zones are ranked as high priorities, with one containing several strong single-point responses near a magnetic anomaly that suggests an eastern extension of the Max stock. The other contains several weak single-point responses associated with the Knoll mineral occurrence and a major fault interpreted from the magnetic tilt derivative. Additional interpretation is under way.
IP and mise a la masse survey plan
SJ Geophysics has completed its plans for the 3-D IP and mise a la masse surveys to be used to create a 3-D representation of conductive units at the Max zone. These results will be combined with airborne conductivity results, surficial outcrop and structural mapping, and data from historic diamond drilling logs to produce a detailed interpretation of the underlying geology at the Max zone.
122 rock samples received by assay lab
The first set of 59 rock samples, consisting of 42 channel samples and 17 selected grab samples, was received by MS Analytical of Langley, B.C., on June 21. A second shipment of 63 rock samples, consisting of 47 channel samples and 16 select grab samples, was received by the laboratory on July 4. Additionally, four samples containing high concentrations of fine-grained, antimony-silver sulphosalts were submitted to Vancouver Petrographics for polished thin section production and mineralogical analysis.
Structural geologist under contract
Jaxon has contracted a senior structural geologist to assist in generating the geological model at the Max zone through detailed structural interpretation. The consultant will be arriving at site on July 9.
Technical information in this news release has been reviewed and approved by Derrick Strickland, PGeo, a qualified person as defined in National Instrument 43-101.
About Jaxon Minerals Inc.
Jaxon is a base and precious metals exploration company with a regional focus on Western Canada. The company is currently focused on advancing its Hazelton project in north-central British Columbia and the Wishbone/Foremore project in B.C.’s Golden Triangle.
Comment by Jon - BMR — July 7, 2017 @ 5:24 am
CSR looks like it’s finally ready to run…
Comment by Jon - BMR — July 7, 2017 @ 6:41 am
Jon… without the rose colored glasses outlook we have support zones not holding.. the sky is falling again… thats what I see from the lack of interest in the general commodities market..
Trump and GS have them on a leash I bet!!!!
Comment by Jeremy — July 7, 2017 @ 7:28 am
GREAT VOLUME ON CPO AND CSR! COBALT STOCKS LOOKING GOOD!
Comment by STEVEN1 — July 7, 2017 @ 7:30 am
At what point to we throw in the towel????
Comment by Jeremy — July 7, 2017 @ 7:32 am
also the technical double top aug last year to June of this year… meaning????
Comment by Jeremy — July 7, 2017 @ 7:40 am
MTS. insiders took almost 300K shrs I think in the PPs per SEDI today
Comment by david — July 7, 2017 @ 7:55 am
May I remind you, Jeremy, the last time you were this discouraged was around mid-to-late December last year!…the current Venture pattern is almost identical to the bottom experienced in July 2010…would love to see some more nervous nellies sucked out of this market…
Comment by Jon - BMR — July 7, 2017 @ 8:03 am
What support zones aren’t holding, Jeremy?…and “the sky is falling!”——u are making me tingle all over this morning!
Comment by Jon - BMR — July 7, 2017 @ 8:05 am
Jeremy is right. Jon, do you not see the double top on the venture. Do you not see the drop today. The question is what support zones are holding. Yes, cobalt is at 28, but a correction can come at any time on cobalt, thus killing a rally temporarily.
Comment by dave — July 7, 2017 @ 8:29 am
Of course you can see that formation on the Venture, Dave…but that doesn’t change anything with regard to the ongoing bull market, or the similarities with the 2010 pattern…
As for Cobalt, good luck wishing for the “killing of a rally”…physical supplies have really been gobbled up and demand of course is strong…$25 is the new low for a market that’s headed to at least $40 – $50…
Comment by Jon - BMR — July 7, 2017 @ 8:39 am
This thing is about to get exciting; it may look painful now but in my experience extreme pain marks extreme buying opportunities. I have no doubt Gold, Oil and the venture are headed higher in this second half. My 2 cents. But maybe it’ll help buoy some emotions.
Comment by Charles — July 7, 2017 @ 10:20 am