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 $1,268 and $1,275 so far today…as of 7:00 am Pacific, the metal is off slightly at $1,273…nearest technical support is $1,260…Gold bugs will have much to chew on this week with 3 central bank meetings, including the Fed tomorrow and Wednesday, an expectation of an announcement from President Trump on who will be the Fed chair after January, and non-farm payrolls on Friday…Silver has retreated 9 cents to $16.75…Copper and Nickel are steady at $3.10 and $5.20, respectively…Crude Oil continues to climb, up another 42 cents to $54.32 a barrel, while the U.S. Dollar Index has eased off one-tenth of a point to 94.73 but remains locked in an uptrend…
2. U.S. consumer spending recorded its biggest increase in more than 8 years in September, driven in part by households in Texas and Florida replacing flood-damaged motor vehicles, but underlying inflation remained muted…the Commerce Department reported this morning that consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1.0% last month…the increase, which also included a boost from higher household spending on utilities, was the largest since August 2009…
3. The only thing growing faster than the U.S. economy right now is U.S. debt…$1 trillion annual deficits are rushing back to Washington, and that has to be considered bullish for Gold prices in 2018…a new analysis from the Bipartisan Policy Center adds new disaster relief spending and the costs of GOP tax-cut plans to earlier projections from the Congressional Budget Office…its conclusion is that the deficit could reach $1 trillion as early as 2019 – 4 years earlier than the CBO calculated in January…the only previous episode of trillion-dollar annual deficits began during the Great Recession and financial crisis…as the economy recovered, the deficit fell below that level in 2013…but now, as retiring baby boomers rapidly swell the rolls of Social Security and Medicare, trillion-dollar deficits are on track to return during a strong economy…higher interest rates on the debt won’t help, either…noting deficit trends since 1980, the analysis adds that the nation “has piled up debt more than twice as fast as economic growth”…
4. President Trump is expected to name a new Fed chair to replace Janet Yellen prior to his departure Friday for a 12-day trip to Asia…according to data from political predictions market website PredictIt, Jerome Powell is the runaway leader in the race to become the next chair of the central bank…Powell is considered much less hawkish than his nearest competitor, John Taylor…of the 5 individuals believed to be in the running for the position, including Ma Yellen, only one really strikes any fear into the market’s heart and that’s Taylor…a Stanford economist and proponent of a rule bearing his name, he has expressed a preference for the Fed returning to its pre-crisis mechanics for monetary policy…it’s quite likely he would push the Fed into a considerably different direction than investors have been used to for the past 12 years…
5. On an after-inflation basis, the S&P/TSX Composite Index lost money over the past decade, despite Friday’s record-high close of 15,953…the TSX averaged a gain of just 1.1% per cent annually for the 10 years to late October, while inflation averaged 1.6%…the Venture performed much worse during that time, of course, losing more than 2,300 points or nearly 75% of its value…by contrast, the NASDAQ has soared 134% over the last decade, jumping more than 3,400 points to Friday’s record close of 6,701, while the Dow has gained 68% by adding 9,500 points after Friday’s close at 23,434…
6. The Dow is off 34 points through the first 30 minutes of trading on some profit-taking after last week’s strong gains…in Toronto, the TSX has added 55 points as it climbs above 16,000 for the first time…Robert Friedland announced this morning that Ivanhoe Mines (IVN, TSX) has agreed to rebuild 34 km of track to connect the Kipushi mine with the Democratic Republic of the Congo national railway at Munama, south of the mining capital of Lubumbashi…Friedland said the resumption of rail service along the Kipushi spur line is the most economical and reliable solution for the transportation of Kipushi’s projected annual output of approximately 530,000 tonnes of Zinc concentrates…the Venture is 2 points higher at 789 as of 7:00 am Pacific…LeoNovus (LTV, TSX-V), which soared 70% last week, once again tops the most active list in early trading, pushing 4 cents higher to 55 cents as it attempts to overcome Fib. resistance at 54 cents…
7. Jaxon Mining (JAX, TSX-V) has firmed up this morning after announcing that it’s commencing a 2,000-m Phase 1 diamond drilling program this week at its Max target, the key high-grade prospect defined to date at its 440 sq. km Hazelton Project in north central British Columbia…Max is characterized by VMS high-grade Silver, Zinc and Lead mineralization in sporadic outcrops over a roughly 1 sq. km area…recently completed 2-D and 3-D induced polarization (IP) geophysical surveys indicate extensive high-chargeability and low-resistivity anomalies from surface to a depth of approximately 150 m…these anomalies are interpreted by Jaxon geologists to be related to sulphide-rich material…JAX is up 2.5 cents to 24 cents as of 7:00 am Pacific…
The Template For The Next 10% Move In Garibaldi Resources
The Nickel Mountain Magma Highway
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Look at Giga Metals. One of the hard sought after
Nickel plays in safe jurisdiction!!
Comment by Tran — October 30, 2017 @ 10:55 am
John – while I am not a TA guy, it seems that GGI could come down and meet the 21 day around 3 bucks… some momentum may have been lost due to the assays being so long… what does everyone think of the odds are of THAT happening??
Comment by Jeremy — October 30, 2017 @ 1:48 pm
I would love that, Jeremy, but that involves some very wishful thinking…John will have an updated chart GGI chart tonight as part of an Evening post…
Comment by Jon - BMR — October 30, 2017 @ 3:24 pm
Hi Jon,
Any comment on ais movement today?
Comment by DC777888 — October 30, 2017 @ 3:27 pm
That would be nice, I’m ready to pull the trigger on more at 4 or under.
Comment by Laddy — October 30, 2017 @ 3:28 pm
The promotion with GGI is starting to happen, Northern Miner article out today with Regoci interviewed and I understand Brent Cook has told his subscribers that he is watching closely and will make a recommendation after GGI releases results. If you haven’t read the Big Score and are invested in GGI I would highly recommend it,found it interesting Friedland did not release the VTEM map either, left it up to Inco and Falconbridge Geo’s to fiqure out tonnage on their own.
Comment by GREGH — October 30, 2017 @ 3:30 pm
Normal trading, DC777888…stocks in a big uptrend like this often have a pattern of 2 steps forward, 1 step back…the chart is profoundly bullish, as are the fundamentals, so you have to stay focused on the big picture and take full advantage of any dips in these type of situations…dips during an uptrend are not a time to become fearful or nervous, just the opposite – successful traders/investors embrace those opportunities…
Comment by Jon - BMR — October 30, 2017 @ 3:36 pm
I figured as much…I actually continued to add all the way down. I appreciate your opinions and timely response.
DC
Comment by DC777888 — October 30, 2017 @ 3:44 pm
Thanks Jon. Your opinion and quick response is much appreciated.
Comment by DC777888 — October 30, 2017 @ 3:47 pm
Hello BMR team, what do you make of this latest ggi financing boondoggle? Seems like ggi is getting blasted by the exchange. Secondly, what kind of exploration update are you expecting here? 1 hole? A couple holes? Confirmation of massive? All the best.
Comment by Seamus — October 30, 2017 @ 4:00 pm
Thx Jon and Gregh.. 3 bucks seems like nahhhhhh aint goona happen but the bots may be involved now.. if it gets there it wont be there for long I presume:)
Comment by Jeremy — October 30, 2017 @ 4:04 pm
Jeremy my friend you are my contrarian indicator lol!
Comment by Gregh — October 30, 2017 @ 4:40 pm
Gregh – lovin it:) believe me I couldnt stand the pain!!
Comment by Jeremy — October 30, 2017 @ 7:06 pm
Here is the Northern Miner article.
Regoci says he’s baffled by the staggering gains in the company’s share price since the junior began drilling in August at its historical E&L nickel-copper property in northwestern B.C.’s Golden Triangle district.
The share price has surged 2,500% to $4.50 at the time of writing, propelled higher on the company’s Sept. 1 and Oct. 13 announcements that all 12 drill holes returned “broad sections” of nickel-bearing pentlandite, chalcopyrite and pyrrhotite.
Garabaldi’s drill campaign is targeting “Anomaly D,” a 260-metre long geophysical conductor sitting below the property’s historical E&L magmatic nickel-copper deposit. Assays for the drill holes are pending.
“There’s definitely potential here, but honestly, you have to shake your head. I wouldn’t have predicted prices like this,” Regoci tells The Northern Miner during a phone interview. “The same thing happened to Noront Resources in 2007, but their significant moves in stock price came after assays. We haven’t put out our assays yet so the movement in our stock is quite remarkable. The guys up on the hill aren’t shocked because they’re looking at the core, but we still have to see the assays.”
Regoci says that assay results from one drill hole have been received and those from the rest of the holes should arrive in the coming weeks.
Garibaldi Resources’ land holdings in northwestern B.C.’s Golden Triangle district with locations of regional showings and property targets. Credit: Garibaldi Resources.
The first significant move in the company’s stock came after Sept. 1, when initial results of the first drill hole at the Anomaly D target were released.
The company stated that the hole, which was drilled away from the historic mineralized zones into an untested area, entered a mineralized gabbro with disseminated sulphides at 51 metres depth and continued to 169.5 metres. A second section of sulphides with “metre-scale intervals up to 30% sulphides” was intercepted between 274.5 metres and 332 metres depth.
The second major price move was triggered by the Oct. 13 announcement that drilling intercepted “broad sections of disseminated and net-textured sulphides” in the remaining 11 holes, and that x-ray fluorescence analysis supported a “very high” tenor of nickel in the sulphides.
The press releases coincided with major investments by financier Eric Sprott, who raised his interest in Garibaldi from 7.7% to 10.7% on an undiluted basis after purchasing $2.5 million worth of Garibaldi stock in a flow-through and non-flow-through financing on Oct. 2.
Sprott raised his interest again on Oct. 20 to 11.7% after acquiring 1.6 million units at $3.15 per unit for a total of $5 million. Each unit consists of one share and one warrant, with each warrant exercisable at $4.50 for two years.
“There are networks on top of networks of people involved here. If the right people get involved in your stock they can cast quite a wide net, and if you get that kind of distribution going then it takes on a life of its own,” Regoci says. “I’m hoping it’s because they see us as something similar or half as big as Voisey’s Bay, but we don’t know that yet. It’s still early days.”
Gossanous outcrop at Garibaldi Resources’ “anomaly A” target, one of five high-priority geophysical anomalies noted on the company’s E&L nickel-copper project in northwestern B.C. Credit: Garibaldi Resources.
Garibaldi’s drill program is the first of its kind on the property in almost 50 years. Previous exploration at E&L outlined a historical resource of 2.9 million indicated and inferred tonnes of 0.80% nickel and 0.62% copper with anomalous values in gold, silver and platinum group metals (PGM).
The resource was based on 12 shallow holes drilled by Silver Standard Mines — now SSR Mining (TSX: SSRM; NASDAQ: SSRM) — in the 1960s, where intercepts included 37.8 metres of 1.3% nickel and 0.79% copper, and 27.7 metres of 1.2% nickel and 0.65% copper.
Magmatic nickel-copper deposits form when mafic magmas sequester sulphur and metals during their ascent through the crust, only to deposit sulphides in quiescent chambers, dykes or sills.
Regoci says that E&L is an “unusual” deposit type for the Golden Triangle district. The region is more known for a plethora of Jurassic-aged volcanogenic massive sulphide, porphyry and epithermal base and precious metals deposits such as Barrick Gold’s (TSX: ABX; NYSE: ABX) Eskay Creek, Seabridge Gold’s (TSX: SEA; NYSE: SA) KSM, and Pretium Resources’ (TSX: PVG; NYSE: PVG) Brucejack mine.
Mineralization at E&L — the Nickel Mountain gabbro — is hosted in stocks and dyke swarms that extend along a 3 km northeast trend, according to a B.C. MINFILE.
The age of the metal-rich intrusion is pegged between 185 and 110 million years old, which is significantly younger than the world’s largest magmatic nickel-copper camps.
The majority of world-class magmatic nickel-copper deposits — such as those seen in the Thompson Nickel Belt in Manitoba, the Cape Smith Belt (Raglan) in Quebec, Sudbury and Voisey’s Bay — formed during magmatic events in the late to mid-Proterozoic, some 1.9 to 1.3 billion years ago.
The world class Norilsk magmatic PGM-copper-nickel camp in Russia is different, having formed 250 million years ago in response to a massive surge in volcanism known as a flood basalt. (This particular event extinguished 95% of life on the planet due to global warming triggered by increased volcanism. The extinction is known by scientists as “the great dying.”)
In contrast, the Golden Triangle is focused within a cordillera, built by the accretion and subduction of outboard landmasses to the ancestral margin of North America between 150 million to 50 million years ago. (For more details on the geological evolution of the Canadian cordillera please click here.)
“The Golden Triangle is arguably one of the most metal-rich districts in the world,” Regoci says. “There are an awful lot of eyes in the speculative world looking at you if you have a significant land position here. With all the new infrastructure improvements and power, there’s an awakening on the district’s potential.”
Anomaly D is one of four high-priority geophysical conductors Garibaldi has identified on its 63 sq. km property. The targets are on razorback mountain ridges spanning 6 km around glaciers and snowfields.
Because the age of mineralization at E&L is younger than the other intrusion-related mineral systems in the Golden Triangle, the B.C. MINFILE on E&L suggested that the extensive Bowser basin to the east may also be prospective for similar magmatic-style nickel-copper deposits.
Shares of Garibaldi have traded in a 52-week range of 8¢ to $5.27, and closed at $4.50 at press time. The company has 86.3 million shares outstanding for a $439-million market capitalization.
Regoci is baffled by the share price but “the guys up on the hill aren’t shocked because they’re looking at the core, but we still have to see the assays.”
Must be some kind of core if the geo’s and drill crew appear to think the cores justify today’s share price.
Also Regoci states only one assay has been completed from one hole which I assume is the first one they drilled.
Subscriber John
Comment by John — October 30, 2017 @ 7:44 pm
Regoci is just a promoter. It is the views of Drs Lightfoot and Makela that are crucial. We should have the core from the hole vectoring towards or hopefully into the massive sulphides by now. I have a feeling that Dr Lightfoot is expecting something a bit bigger than “half the size of Voisey Bay especially with three other high priority conductors to drill next year. The big question is will GGI even be drilling them??
Comment by Patrick — October 31, 2017 @ 3:32 am
Given his experience and expertise with Nickel sulphide deposits – there’s really no one more qualified in assessing these things – Lightfoot in my view has really been the key to Nickel Mountain, Patrick, and why the market has embraced this play in the way that it has.
He knows exactly what’s emerging here without even knowing assay numbers yet, and astute investors such as Sprott and others have wisely picked up on that.
Comment by Jon - BMR — October 31, 2017 @ 4:34 am
Regoci says he’s baffled seems like an unfortunate choice of words and hopefully does not represent his actual mindset.
Comment by Marshall — October 31, 2017 @ 4:58 am
He wasn’t quoted as saying that, Marshall – reporter’s word choice, not his. An inexperienced reporter or one with an agenda (or both?).
Comment by Jon - BMR — October 31, 2017 @ 5:08 am
Re comment 16. Well said Jon. If Regoci was quoted properly by the N.M. writer then he should stop talking and let his experts do the talking. The article in the Miner needed some experienced editing.
Hopefully the PP is closed today or tomorrow. There is the fact (rule) that proper release of significant new data should be followed. GGI seems to be definitely dragging their heels on ‘timely exposure’
Keep up the good reporting Jon et al
Carver
Comment by carver — October 31, 2017 @ 5:19 am
Brent Cook will recommend a stock after assay results? Well, I think I could even do that Brent.
Comment by Laddy — October 31, 2017 @ 5:37 am
Brent cook and his buddy joe are slowly accumulating CXO right now!
Comment by Gregoire — October 31, 2017 @ 5:40 am
Kinda a weird article from northern miner…not really bullish per say.. and kinda odd wording. Anyways, I pay BMR to do my research and not NM.
Comment by Weatheritout80 — October 31, 2017 @ 5:59 am