Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information. BMR Morning Market Musings resumes after Labour Day.
1. Gold has traded between $1,317 and $1,329 so far today…as of 7:00 am Pacific, bullion is off $1 an ounce at $1,320…further strength temporarily came into Gold after a disappointing U.S. non-farm payrolls report, but bullion has since pulled back after a better than expected ISM manufacturing number…Silver is flat at $17.54…Copper has edged up another penny to $3.08…Nickel has shot up 10 cents to $5.40, leading the base metals today…Crude Oil has slipped 41 cents to $46.82 while the U.S. Dollar Index is one-tenth of a point lower at 92.55…
2. The U.S. economy created 156,000 jobs in August while the unemployment rate edged higher to 4.4%, according to the Labor Department’s much anticipated report this morning…economists surveyed by Reuters had been expecting payrolls to grow by 180,000 in August and the unemployment rate to hold steady at 4.3%…a broader measure that includes discouraged workers and those holding part-time jobs for economic reasons also was unchanged at 8.6%…despite the miss on the headline number, markets haven’t reacted much to the news so far…in addition to missing estimates, previous months’ job totals also were cut…June was revised down from 231,000 to 210,000 while July fell from the initially reported 209,000 to 189,000…
3. Hurricane Harvey will likely wind up being the most expensive natural disaster in American history, costing the economy about $190 billion, according to AccuWeather…in fact, the weather forecasting firm predicts it will wind up costing more than Katrina and Sandy combined. “This is a natural disaster that was not fully calculated,” stated Dr. Joel Myers, AccuWeather’s founder and President. “You had the greatest rainfall ever measured in the continental United States”…the storm has displaced more than 1 million people with 44 feared dead from flooding that paralyzed Houston…
4. The Dow is up 49 points as of 7:00 am Pacific…the TSX is off 40 points in early trading while the Venture has added 1 point to 778 as it attempts to push through key resistance in the 770’s…just a matter of time before that occurs, according to a variety of charts and improved fundamentals…Colorado Resources (CXO, TSX-V) has closed its strategic financing with Goldcorp (G, TSX), raising gross proceeds of $7.2 million…meanwhile, Barkerville Gold Mines (BGM, TSX-V) has announced a $28 million bought deal on flow-through shares at $1.12 per share…
5. GT Gold (GTT, TSX-V) is off slightly in early trading following a 52-cent or 30% surge yesterday on impressive high-grade Gold diamond drill results from the Saddle zone of the company’s Tatogga Property in the Red Chris district…multiple high-grade intercepts included 1.50 oz per ton Gold and 4.14 oz/ton Silver over 6.95 m (22.8 feet) in TTD007…this is B.C.’s Gold discovery of the year…Saddle South is a south dipping, east-west trending structurally hosted high-grade Gold-Silver quartz carbonate sulphide vein system with good continuity laterally and at depth…2 rigs are carrying out an aggressive drill program…President and CEO Kevin Keough stated, “These first-ever Saddle South core results (last month’s initial assays were from RC drilling) reveal a high-grade epithermal vein system bearing the key hallmarks – high grades, widths and continuity – required to advance the project. Saddle South appears to be evolving in the direction of robust, high-grade underground potential, with expansion drilling continuing to deliver a steady flow of fresh intercepts, now to 320 m down-dip, and we’re rapidly pushing out and deeper.”
6. Metallis Resources (MTS, TSX-V) has completed the first 2 holes of its drill program at the Kirkham Property bordering Garibaldi Resources‘ (GGI, TSX-V) Nickel Mountain Project and Colorado’s KSP Project in the Eskay Camp…MTS reported this morning that drill core in KH-17–01 and KH-17–02 intersected mineralized and altered monzonite throughout and supports the theory that mineralization improves with depth as the alteration becomes more potassic…meanwhile, crews continue to prepare for drilling at the King high-grade Gold target to the north, adjacent to the 6-km long Hawilson monzonite, while a new surface exploration program has been launched in the King East area…following a fresh interpretation of local and regional geophysical surveys, Metallis is launching an immediate geological mapping and surface sampling program in the King East area, approximately 1 km from the King Gold target, where a cluster of airborne magnetic anomalies are aligned parallel to the regional Eskay Rift…the flanks of the Hawilson porphyry are considered very prospective for high-grade Gold-bearing shear/vein deposits…MTS is up half a penny at 38.5 cents as of 7:00 am Pacific…
7. AuRico Metals (AMI, TSX) announced this morning that it has submitted its permit applications to the Major Mines Permitting Office for its 100% Kemess underground Gold-Copper Project in north central British Columbia…the Kemess underground project is undergoing a co-ordinated permitting review process, meaning that all of the required permit applications have been submitted and will be reviewed at the same time…the permitting process is anticipated to be completed in Q2 2018…as previously announced in March, the Canadian Environmental Assessment Agency issued a positive decision statement and the B.C. Environmental Assessment Office granted an environmental assessment certificate for the Kemess underground project…
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GGI something coming volume staring to pick up
Comment by bc guy — September 1, 2017 @ 8:18 am
Yes GGI I’m hoping they halt today and leave the shorts out to hang for Tuesday.
Comment by large — September 1, 2017 @ 8:41 am
Shorts sometimes like halts, large…I don’t think GGI has ever halted its stock, the only time they will is perhaps when there’s a buyout…
Comment by Jon - BMR — September 1, 2017 @ 8:49 am
But, nothing stops them from putting out news that is game changing. Jon, I suspect the first NR will be visuals which probably won’t be a halt, but I think if assays come back and they are what we all expect, I believe a halt would happen.
Comment by Dan1 — September 1, 2017 @ 8:58 am
News just out – WOW…GGI goes AWAY from historic zones, hits 2 long intervals totaling 176 m of Ni-Cu sulphide mineralization (disseminated to heavy disseminated)…second rig on the way!
Comment by Jon - BMR — September 1, 2017 @ 10:21 am
What do you make of MTS SP trading down Jon? Was there unrealistic expectations of first NR after the start of drilling?
Comment by TD75 — September 1, 2017 @ 10:22 am
Don’t worry about MTS, will shoot higher…
Comment by Jon - BMR — September 1, 2017 @ 10:25 am
GGI news out and jump…
Comment by TD75 — September 1, 2017 @ 10:25 am
This says it all:
“The range in rock types, including the chaotic-textured rock types at E&L, are similar to those found in other global examples of nickel sulphide deposits hosted by small intrusions that provided very efficient ‘magma highways’ from the mantle,” Dr. Lightfoot concluded.
AND $6 MILLION TO GO AFTER THIS HARD!
This play is now very much de-risked at these levels with this kind of news this morning.
Who took the $6 million?
Comment by Jon - BMR — September 1, 2017 @ 10:26 am
Jon, if its been de-risked why is there so much selling? SP now back to where we started the day.
Comment by dermo63 — September 1, 2017 @ 10:43 am
no mention of massive sulphides… does it matter?? I’m no Geo just sews you know:)
Comment by Jeremy — September 1, 2017 @ 10:45 am
It has been de-risked, dermot63, but you’ll always have traders who will play for quick profits and throw some paper into the market immediately after news…wait ’til next week when this gets fully digested…GGI is well on its way given news like this…and $6 million to bring a 2nd drill rig in and pound the heck out of Nickel Mountain…then of course there’s the regional trend with much to come from the other areas defined in the VTEM survey and through sampling at Anomaly A…
You don’t have $6 million coming into a company on news like this on a 4-month hold unless these players thought this was headed much higher…
Comment by Jon - BMR — September 1, 2017 @ 10:50 am
Keep in mind, Jeremy, the high tenor of the sulphide at Nickel Mountain means that even in disseminated or heavy disseminated sulphides, you can see some spectacular grades and enough to make a mine…that comes straight from Lightfoot…great first hole but my take is it looks like it cut adjacent to the conductor which is not surprising given how the VTEM doesn’t give you the orientation of the conductor…we explained that earlier…the downhole probe should lead them into the massive sulphide body…
Rather than go for the easy hit in the historic zones, they drilled in the complete opposite direction which was a bold move…never imagined they would do that right off the bat…this is a robust system with the E&L Intrusive Complex intersected down to 441 meters…
This is huge news…watch what unfolds next week when after it has a chance to circulate…
Comment by Jon - BMR — September 1, 2017 @ 10:52 am
GGI ya bold move to drill away. why not use the bulls eye as #1 and then move away till it you get less? armchair geo David is wondering? Cant drill thru the winter can they? that area gets 50ft of now over the season, which is why the darn season always starts so late
Comment by david — September 1, 2017 @ 10:59 am
Thx Jon.. understood:)
Comment by Jeremy — September 1, 2017 @ 11:11 am
Interesting strategy, David, but obviously it paid off…one reason I believe they drilled this first hole the way they did was simply to optimize the location for the downhole probe to immediately get it into the best position to read things from depth…then they cut into what should be very nice mineralization over 2 long intervals…2nd rig will speed things up and I’m hearing they’ll drill in snow if they have to…Pezim did that with Eskay Creek…
The thing, too, that one must not forget in terms of how this is such a game-changer for GGI…$6 million gives them all they need to not only accelerate Nickel Mountain, but drill some of those other great targets elsewhere like the Sid (next to Jaxon Minerals), Red Lion, and of course Mexico which will spring to life…GGI will become a drilling machine…everyone agrees they’ve assembled a great property portfolio—–this puts a lot into play…
Comment by Jon - BMR — September 1, 2017 @ 11:13 am