Check back later this morning for today’s Morning Musings.
1. Gold is trading below $1,200 an ounce for the first time since early February…it was driven below that level immediately after a 5:30 am Pacific report that showed new orders for U.S. manufactured capital goods rebounded much more sharply than expected in October, driven by rising demand for machinery and a range of other equipment…it’s the latest indication of an acceleration in economic growth early in the 4th quarter and gave traders even more confidence that the Fed will hike interest rates December 14…the U.S. Dollar Index pushed higher, dragging bullion down, and is up more than two-thirds of a point at 101.65 as of 7:00 am Pacific… overbought/oversold conditions continue to build in the greenback and Gold, respectively, approaching the Fed’s December 13–14 meeting – an ideal time for a reversal in both if the Fed initiates a rate hike as expected…
2. An infill drill hole has returned 71.4 g/t Au over 8.4 m, including 127 g/t Au over 4.6 m, at Lion One Metals‘ (LIO, TSX-V) 100%-owned and fully permitted Tuvato Gold Project in Fiji…drilling of infill and extensional targets continues at Tuvato with one surface rig currently operating and one underground rig onsite and ready to be mobilized as soon as dewatering of the Tuvatu decline progresses…Lion One has 96 million shares outstanding and $35 million in cash after a financing at 92 cents in late September…LIO is up 2 pennies at 77 cents as of 7:00 am Pacific…
3. Canadian Zeolite (CNZ, TSX-V) has reached a supplier agreement with Natural Ventures LLC, a Puerto Rico-based licensed grower and manufacturer of medical marijuana…CNZ will now be working with Natural Ventures to enhance its growing production per square foot with Zeolitic fertilizers and substrates…Natural Ventures is located near San Juan, Puerto Rico, and has an indoor growing facility of 100,000 square feet…currently there are over 60,000 registered medical marijuana patients in Puerto Rico and that number is expected to increase significantly in 2017…CNZ is up 8 cents at 78 cents as of 7:00 am Pacific…
4. Medical marijuana stocks came under renewed pressure at the opening bell this morning but are now rebounding…Canopy Growth (CGC, TSX) – updated chart in today’s Morning Musings – touched a low of $7.65 but is now up 46 cents at $8.71 as of 7:00 am Pacific…Aphria (APH, TSX-V) dropped as low as $4.05, just above its 50-day moving average, but has recovered to $4.45 (down 10 cents) after 30 minutes of trading…
5. Northern Shield Resources (NRN, TSX-V) is mobilizing a drill crew to its 100%-owned Sequoi Property in the southern Labrador Trough…5 to 7 drill holes totaling 1,000 m are planned to test 5 geophysical targets that the company has interpreted to represent large-scale Ni-Cu-PGE magmatic deposits…the targets are clustered over a deeper magnetic body believed to be an ultramafic chamber…updated NRN chart in today’s Morning Musings…Clean Commodities (CLE, TSX-V) holds a large land package contiguous to Sequoi with one of the SQ VTEM anomalies straddling the NRN–CLE border…
6. Encouraging initial drill results from Kootenay Silver’s (KTN, TSX-V) RAM target adjacent to its La Cigarra high-grade Silver resource in Mexico…results released this morning were highlighted by 166.5 g/t Ag over 6 m in CC-16–09…drilling returned continuity of Silver grades across a 400-m strike length of the 3,800-m-long RAM structure, and widespread Silver mineralization was encountered in all but 2 of the 11 holes, confirming the structure’s large-scale potential…
7. Cruz Capital (CUZ, TSX-V) has expanded its Cobalt holdings in northern Ontario, adding past producing claims to its portfolio of 4 properties in the Larder Lake mining division…Cobalt prices are up more than 10% since the beginning of October…
Jon, it looks like the market is telling us something different than your scenario for gold, the market usually gets these things right. The chart can’t be looking good for gold right now. It’s certainly looking much more positive for base metals.
Comment by Danny — November 23, 2016 @ 7:11 am
We said the other day to expect a drop below $1,200, Danny, in advance of a December turnaround…you have very oversold conditions in Gold at the moment and quite overbought conditions in the U.S. dollar, a scenario similar to last year at this time in advance of the Fed rate hike…let it play itself out, there is no reason to be rattled…extremes often emerge in situations like this…do you see the Venture tanking?…it’s taking this in stride and will not violate its key support zone…that’s your best clue as to the turnaround that will take shape next month…the 2 best things for Gold near-term are a rate hike, when it comes (Dec. 14), and a worsening U.S. deficit/debt trend which will soon come more into focus…
Comment by Jon - BMR — November 23, 2016 @ 7:17 am
I also keep remembering what trump said repeatedly on the campaign trail that the us markets are in a great big fat bubble, well, it’s getting fatter, the prick is coming, holding firmly onto my gold stocks…
Comment by Laddy — November 23, 2016 @ 8:15 am
News from Lion One.
First drill hole in 2 years–not too shabby. At $80 mill CA, the company is way undervalued.
Initial drilling results include 71.41 g/t Au over 8.41 meters from infill drill hole TUDDH 406, including 126.67 g/t Au over 4.56 meters, drilled from surface to a vertical depth of 92 meters.
Comment by Carl — November 23, 2016 @ 10:33 am
OGI, APH, and CGC all have the same chart pattern, same drop to before they surged higher and same rebound above yesterdays drop. I thought it was unique.
Comment by dave — November 23, 2016 @ 11:19 am