Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,283 and $1,291 so far today…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,284…the yellow metal, after a promising start to September, is headed for its biggest monthly fall this year amid a rally in the greenback and rising prospects of a U.S. rate hike in December…Silver is off 13 cents at $16.72…on the base metal front, Copper is steady at $2.94 while Nickel has rebounded 8 cents to $4.75…Palladium is trading at a premium to Platinum for a 3rd straight day after prices for the two metals hit parity for the first time since 2001 on Wednesday…WTI Crude Oil is flat at $51.44 and will post its 4th consecutive weekly gain and a monthly advance of approximately 9%…the Dollar Index has retreated one-tenth of a point to 93.08…
2. Tensions around Iraqi Kurdistan have helped Brent Crude prices enjoy their strongest 3rd quarter performance in 13 years…Turkish President Tayyip Erdogan called the Kurdish independence vote illegitimate and has threatened to break with past practice and deal only with the Baghdad government over Oil exports from Iraq…in addition, Erdogan said he could use force to prevent the formation of an independent Kurdish state and might close the Oil “tap”…most Oil that flows through a pipeline from Iraq to Turkey comes from Kurdish sources and a cut-off would severely damage the Kurdish Regional Government which relies on sales of Crude for almost all its hard currency revenues…
3. U.S. consumer confidence is still strong but declined more than expected in September after hitting a 7-month high in August…the consumer sentiment index, a survey of consumers by the University of Michigan, registered 95.1 in September in a final reading today…in other economic news, the Federal Reserve’s preferred measure of inflation posted its slowest pace of annual increase since November 2015…that’s not good news for Ma Yellen and crew as the Fed continues to grapple with a lack of inflation…the personal consumption expenditures index, excluding food and energy, rose just 1.3% in the 12 months through August, according to the Department of Commerce…
4. The Canadian dollar is down for the 8th session out of 9 with domestic data showing the economy stalled in July, further dampening prospects of a another interest rate hike by the Bank of Canada next month…Canada’s economy was unchanged in July following 8 consecutive months of growth, including a 0.3% increase in June, Statistics Canada said…the report is consistent with the widely expected moderation in growth during the 2nd half of the year…what’s more troubling for the Canadian dollar, and the Canadian economy, is the individual and corporate tax cut plan introduced by Republicans south of the border as it would put the tax hiking Great White North at a competitive disadvantage…
5. Mineralized olivine gabbro (the favored type at Garibaldi Resources‘ growing E&L Nickel Mountain deposit) has been discovered in outcrop immediately south of Nickel Mountain on Metallis Resources‘ (MTS, TSX-V) Thunder North claims straddling the GGI border…this lends further support to the existence of multi-phased northeast-southwest trending mineralized gabbros that offer the potential for a cluster of Nickel sulphide deposits in the heart of the Eskay Gold Camp…meanwhile, MTS has also announced that drilling has commenced in the central part of Thunder North, just 4 km southeast of current GGI drilling, where altered gabbroic units are also outcropping…MTS, with just 25 million shares outstanding, hit a new high of $1.12 in early trading while GGI is up 3 pennies at $1.84…
6. The Venture has added 3 points to 779 through the first 30 minutes of trading…Orca Resources (ORG, TSX-V) has hit a new multi-year high of 63 cents…ORG is benefiting from restrictions being lifted on Sudan where it’s developing the Block 14 Project amid one of the world’s great Gold rushes of the last century…Blue Moon Zinc (MOON, TSX-V) is one of the most active stocks in early trading, up 2.5 cents to 8.5 cents, as it works on advancing a Zinc deposit in the U.S. southwest…Cornerstone Metals (CCC, TSX-V) is boosting its previously announced 14-cent financing to $1 million…the TSX has added 35 points while the Dow is off 27 points as of 7:00 am Pacific…September has been strong, though, for the Dow which will post its 8th straight quarter of gains for the first time since 1997…
7. First Nations issues continue to impede progress on the Oil pipeline front in Canada…the Federal Court of Appeal has ordered Ottawa to renegotiate the terms under which the Trans Mountain pipeline crosses a First Nation’s reserve in British Columbia, raising new questions about the fate of Kinder Morgan’s federally approved plan to expand the pipeline…the court ruled that the feds failed in their duty to protect the interests of the Coldwater Indian Band in 2014 when it approved the transfer to Kinder Morgan of an easement agreement on the original pipeline which was completed in 1952…as a result, Ottawa must make a “re-determination” on the easement before Kinder Morgan can boost the flow of the pipeline as part of its expansion project…Coldwater is one of several First Nations communities in B.C. that are challenging the federal government’s approval of the $7.4-billion Trans Mountain expansion, claiming Ottawa failed to properly recognize indigenous rights…they now have the support of the NDP-Green provincial government…the Coldwater hearing begins next week…
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JOn .. CNZ… what are thoughts on this play??? funny that they have a real business…. but no one cares…. just asking:)
Comment by Jeremy — September 29, 2017 @ 5:12 pm
Ggi md&a posted to sedar. Lots of properties with updated details including some info on Mexico. Sounds like they have a number of promising sites
http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00004262
Comment by Matt — September 30, 2017 @ 5:53 am
I’m looking for an important bottom this quarter in CNZ, Jeremy, and a great buying opportunity…this shows how important momentum (technical and fundamental) is in this business…CNZ had tremendous momentum in the second half of last year when their business was less developed than it is now…they’ll get that momentum back, I’m sure…
Comment by Jon - BMR — September 30, 2017 @ 7:53 am
What’s really important to understand about GGI, Matt, is that not only do they appear to have the most significant Nickel sulphide discovery in Canada in at least a decade (perhaps since Voisey’s Bay), but there are several properties in their package of 14 or so 100%-owned properties that could be “company makers” for any Venture junior (Nickel Mountain will be a company maker for GGI)…
Success at Nickel Mountain is going to be a catalyst for unlocking huge value from those dozen or so other properties…GGI has the cash now to pick, say, 3 of the best in Mexico and B.C. (after Nickel Mountain), and take them to new levels…look how they cashed in years ago on the Temoris option in Mexico, and now on Nickel Mountain…there are other properties they can do the same thing with, without losing focus on their #1 asset…
Also…imagine for a moment if a certain major comes along during Q4 after Nickel Mountain assays start rolling out and decides, like Teck did with Diamond Fields before there was even a 43-101, to acquire 10% of GGI by doing a strategic investment at dollars per share to bring $50 million or more into the company…the possibilities here are absolutely staggering…
Comment by Jon - BMR — September 30, 2017 @ 8:08 am
Thx jon for your 2 responses:) CNZ lost momentum for sure.. by next summer the pot question should be no more and organics will be the only way to go…
wish that BLO would have a bit more ummph to it,.. they are very quiet.. hope its by design:)
cheers
Comment by Jeremy — September 30, 2017 @ 10:06 am
GGI
Hi Jon
Great job on GGI and MTS, I have a question regarding anomalies A thru C, are they going to be tested this season by GGI, and where do they fit in any buyout scenario at this early stage. I believe GGI has received the assays from A by now so wonder how they will exploit this info
Thx
Comment by George — September 30, 2017 @ 3:00 pm
Thanks, George, the trend going toward and to Anomaly A and beyond is of very intense interest, and unquestionably adds big blue sky potential to GGI and the Nickel Mountain discovery. Definitely fits into the scenario of “corridors of deposits” that Dr. Lightfoot alluded to as a speculative possibility in my interview with him in July before drilling even began, corridors of deposits (of different types) actually stretching from MTS’ Kirkham and continuing north/northeastward through all of Garibaldi’s E&L ground.
I suspect there is also more than just A, B and C in terms of VTEM anomalies going northeastward – GGI has already stated these are the “highest priorities”, inferring there are more that are in the process of being better defined. These anomalies will not be ready for drilling until next year. I envision a massive exploration program along this trend, delineation of the best drill targets and then drilling, concurrently with definition and expansion drilling at Nickel Mountain – perhaps by a major as by then GGI could be bought out.
Comment by Jon - BMR — September 30, 2017 @ 3:50 pm
My two cents on GGI and MTS: GGI will not have time to drill anomaly A to C this year, so GGI shared data with MTS so MTS would drill and “prove” the corridor is real. If MTS hits based on the data of GGI, then A to C could be proved by extension…
If I was in GGI situation, this is what I would do.
Only an opinion from me, do your own DD.
Comment by rgiroux — September 30, 2017 @ 3:50 pm