Check back later today for additional posts including Daniel’s Den. Check the BMR comments section during the day for updates and helpful information.
1. Gold has traded between $1,293 and $1,300 so far today…as of 7:00 am Pacific, bullion is up $7 an ounce at $1,298…Silver has jumped 24 cents to $17.29…base metals have backed off slightly with Copper trading at $3.01 while Nickel is at $5.12…Crude Oil is down modestly, trading just above $47 a barrel, following the devastating affects of the worst hurricane to hit Texas in 50 years….the U.S. Dollar Index is flat around 92.40 after last week’s close below key support at 93…speculators have raised their net long position in COMEX Gold for the 6th straight week ending August 22…
2. At Jackson Hole Friday, Federal Reserve Chair Janet Yellen made no reference to U.S. monetary policy but instead focused on financial regulations, leading traders to expect interest rates to be raised more slowly (Gold-bullish)…Mario Draghi also gave no major hints of future monetary policy for the ECB, though he did emphasize that the euro zone’s economic recovery had taken hold due to ultra-loose monetary policies…Commerzbank stated, “According to the Fed fund futures, nothing has changed since Friday as far as rate-hike expectations are concerned…as before, they are pricing in only a 35% probability of another rate hike this year. The probability of a rate hike by the end of 2018 is only a good 70%.”
3. The eventual insured losses from Hurricane Harvey could be as much as $10 billion to $20 billion, making it one of the 10 most costly hurricanes to hit the U.S., according to JP Morgan…the firm told clients today that the hurricane’s cost could be “slightly less” than one-quarter of the insurance industry’s earnings…over 2 million bpd of refining capacity is estimated to be offline as a result of the storm, causing a spike in U.S. gasoline prices…U.S. traders are seeking Oil product cargoes from North Asia, with transatlantic exports of motor fuel out of Europe expected to surge…it isn’t clear how long affected refineries could stay closed…when plants flood, as they did in Louisiana during Hurricane Katrina in 2005, it can take weeks or months to get new electrical equipment and other parts installed…
4. The Dow is off 15 points as of 7:00 am Pacific while the TSX has edged 61 points lower…the Venture has added 4 points to 773 as it attempts to push through a stubborn resistance band in the 770’s…Klondike Gold (KG, TSX-V) climbed as high as 57 cents in early trading, a penny below Friday’s multi-year high of 58 cents…the company has added a second drill rig to its exploration program to accelerate testing of numerous targets within its 527 sq. km Klondike Project…results from the recent Gold-in-soil survey reported from the Lone Star target show a continuous Gold-in-soil anomaly extending 4,000 m that is coincident with the 800-m strike length of Gold mineralization in drill holes so far this year…up to approximately 40 new drill holes for 4,000 m of core are expected to be completed in the Phase 3 program in the coming weeks to bring this season’s planned total to approximately 8,000 m drilled…
5. First Cobalt (FCC, TSX-V) has resumed trading after more than a 2-month halt triggered by the company’s acquisition of Australian-listed Cobalt One…the stock is off 21 cents at 55 cents as of 7:00 am Pacific as some impatient investors were obviously craving liquidity…this morning, the company announced that about 20% of its maiden 7,000-m Keeley-Frontier diamond drill program has been completed…5,000 m are targeting a 2-km strike length…the remaining 2,000-m will be drilled on regional exploration targets to identify new mineralized systems…meanwhile, the company has appointed Jason Rickard, a former senior geologist for both Vale and Goldcorp, to the new position of exploration manager who will be based in Cobalt and will work under Dr. Frank Santaguida, VP-Exploration…
6. Resource investors now know another area of the world where it’s not safe to put their money…Tahoe Resources (THO, TSX) is holding around Friday’s close after plunging to an all-time low after the company said Guatemala’s constitutional court upheld the license suspension of its top mine…the move backed a lower court’s preliminary decision to provisionally halt operations at Escobal, which is one of the world’s largest Silver mines…Tahoe lost $1.28 to close at $5.58 Friday after an intra-day low of $5.35…the court is assessing whether Tahoe appropriately consulted with Guatemalan indigenous communities after an agenda-driven radical anti-mining environmental organization argued that did not happen…in a statement, Tahoe said the constitutional court’s hearing on the “definitive” constitutional claim is scheduled for today and a ruling is expected “several months” afterward…it added there are no signs of an immediate resolution of a blockade by protesters of the municipal road to the Escobal mine…RBC Capital Markets analyst Stephen Walker believes it could take 12 to 18 months to resolve the constitutional claim…
7. Subject to wildfire and safety conditions, Engold Mines EGM, TSX-V) reported this morning that it plans to recommence drilling on September 7 at its 100%-owned Lac La Hache Copper-Gold-Silver Property in the Cariboo region of British Columbia. “We are looking forward to reactivating our program in the Cariboo,” said Engold President & CEO David Brett. “It’s been a very challenging summer for communities in the Cariboo, and safe and responsible exploration of Engold’s exciting Lac La Hache Property remains our top priority.”
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