5. Infill drilling continues to yield intercepts of high-grade, Gold-rich semi-massive to massive sulphide mineralization within the VMS deposit at Salazar Resources‘ (SRL, TSX-V) El Domo Project in Ecuador, optioned to Adventus Zinc (ADZN, CSE)…latest results reported this morning included 7.1 m grading 3.9% Copper, 3.3 g/t Gold, 154.9 g/t Silver, 5.9% Zinc and 0.74% Lead (CURI-259)…the Indicated resource at El Domo totals 8.8 million tonnes grading 1.6% Cu, 2.4 g/t Au, 2.4% Zn, 29 g/t Ag and 0.14% Pb, while there’s also an Inferred resource totaling 2.6 million tonnes…to date, drilling within a higher-grade portion of the open-pit constrained resource has successfully completed approximately 3,500 m from a planned 7,500-m work program which is expected to be completed by the end of June…17 infill drill holes have been completed and results for 11 more are pending…
Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,293 and $1,307 so far today…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,297…Silver has retreated 7 cents to $16.36…Nickel has added 7 cents to $6.74, Zinc is up 2 pennies at $1.40 while Copper and Cobalt are unchanged at $3.11 and $41.28, respectively…Crude Oil is off 97 cents to $66.91…OPEC countries are due to meet June 22 in Vienna…the U.S. Dollar Index is flat at 94.39…political turmoil in Italy has added to investors’ worries today, sending the euro to its lowest level against the dollar this year…the euro zone’s 3rd-largest economy has been struggling to establish a government since inconclusive elections in March, with anti-establishment forces abandoning their effort to form a ruling coalition over the weekend…meanwhile, euro zone concerns have also extended to Spain where the country’s parliament is set to vote whether to oust Prime Minister Mariano Rajoy and his center-right party this Friday…
2. The latest COT data showed that hedge funds continue to shed their bullish bets on Gold, but that’s not deterring Gold bulls such as Bloomberg Intelligence commodity analyst Mike McGlone who issued a report yesterday: “Since the inception of the rate-hike cycle, the number of ounces estimated held by Gold ETFs has increased more than 2 x the price of Gold, 52% vs. 22%. The 75 million ounces in Gold ETFs equates to Gold near $1,600, if the price appreciated at the same pace. Despite the Gold price being unchanged from June 2016, ETF holdings have increased substantially. If history is a guide, the recent flush of futures-speculator net longs is a green light for higher prices.”
3. What a tangled web Canadian politicians obsessed with climate change and government-knows-best thinking have weaved: The federal government, with help from various provinces, has bungled the energy file in this country so badly, now it’s buying a pipeline in order to try and fix a problem of its own making…would this ever happen in the United States? – not a chance…Federal Finance Minister Bill Morneau announced this morning that the Liberal government (Canadian taxpayers) will pay $4.5 billion to buy Kinder Morgan’s (KML, TSX) Trans Mountain pipeline…in return, Kinder Morgan will go ahead with its original plan to twin the pipeline with construction starting this summer (really? – where is the plan to deal with the Green Monster, the B.C. government?) while the sale is finalized, which likely won’t happen until August…Morneau says once the sale is complete, Canada will continue the construction on its own, with a view to eventually selling the whole thing down the road, once market conditions would allow it to get the best price…Morneau says the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government…good grief…this morning’s announcement by Morneau amounts to an admission of total failure on part of the feds, an example of how Justin Trudeau’s ill-conceived National Energy Program (like his father’s in the early 1980’s) has been a huge financial disaster while also flaming regional tensions…history has repeated itself…Canadians should be outraged that governments have made such a mess out of things, the private sector isn’t interested in building pipelines in this country anymore…they’ve suffocated the private sector with enough regulatory red tape, carbon taxes, “gender-based analysis” garbage and other globalist-driven policies (not a Canada-first agenda) to circle the globe a hundred times…shameful that this has happened to a country blessed with the world’s 3rd-largest Oil reserves…
4. A new report from CIBC economists Benjamin Tal, Andrew Grantham and Katerine Judge estimates the pipeline crisis has cost the Canadian Oil patch a whopping $12 billion in forgone revenues during the past several years…CIBC’s report quantifies the level of dismay in the Oil patch thus far, where tensions are mounting ahead of Finance Minister Morneau’s sold-out speech in Calgary tomorrow. “Wider spreads and transportation uncertainty have been holding back investment in the energy sector recently, and by extension real economic activity” in Canada, the report stated…while capital expenditures related to Oil and gas in the United States began to rebound in the middle of 2016, in Canada capital expenditures have continued to languish and could continue to fall without new pipeline capacity…CIBC added that Canada’s “reputation could…be dented by further delays in major projects”…the fact is, Canada’s reputation among international investors in the Oil and gas sector has already been dented and it’s only going to get worse…
6. Equity markets are under mild pressure to begin the new trading week in the U.S. after yesterday’s Memorial Day holiday…the Dow has slipped 147 points after 30 minutes of trading...in Toronto, the TSX is down 37 points as it tries to snap a 5-session losing skid after 11 straight winning sessions…the Venture is flat at 771…Blind Creek Resources (BCK, TSX-V) has received shareholder and court approval for the plan of arrangement with privately-held Engineer Gold Mines…Blind Creek shareholders of record as of June 1 will be entitled to receive 1 Engineer Gold Mines common share for every 2 Blind Creek common shares they hold (due to settlement period, that means you must own Blind Creek by tomorrow if you wish to receive the “dividend”)…Engineer Gold has also received conditional approval to list its common shares on the Venture, though no date has yet been set for trading…
7. Drills start turning this week at Garibaldi Resources’ (GGI, TSX-V) Nickel-Copper-rich massve sulphide discovery at Nickel Mountain…weather conditions are rapidly improving after a foot of snow fell in parts of the Eskay Camp including Nickel Mountain over the weekend…meanwhile, further north, GT Gold (GTT, TSX-V) crews mobilize Friday at Saddle South (Tatogga Project) where the first priority is to extend a promising near-surface high-grade Gold discovery made last year in first-ever drilling…south of the Eskay Camp near Stewart, Ascot Resources (AOT, TSX-V) reported initial infill drilling results this morning for the first 11 holes from the 602 zone at the company’s flagship Premier-Dilwroth Project…several holes intercepted wide intervals of high-grade Gold mineralization including 12.1 m of 11.65 g/t (P18–1605) and 9.6m of 24.6 g/t (P18–1609)…Derek White, President and CEO, stated: “This helps to build our confidence in the robustness of our geological model, the planned mining approach and associated mining methods that will be used in the 602 zone. Given the positive results, the company is considering additional drilling in this area”…Ascot is working towards recommencing underground production at the Premier site using existing facilities and infrastructure (mill, power and tailings facilities, underground development, and road access)…
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There are no jewels left in the pants of our fed gov’t or the pm. Let’s see now, the government is going to build the pipeline,hum, when and if it gets built, the cost will be ahh I’ll say about 20 billion, maybe more. Then in about 5 or 6 years kmp will buy it for about 2 or 3 billion… mark my words,
Comment by Laddy — May 29, 2018 @ 9:22 am
The feds are boasting about buying a pipeline, Laddy, which is merely Trudeau spin on a very bad situation – they have created conditions where the private sector no longer wants to invest in a pipeline project in this country…when is it ever a good thing when the private sector, the engine of the economy, no longer wants to invest in something, especially something as big and important as this?…and the Feds haven’t addressed the problem of the B.C. government, and they won’t…what is their plan to deal with a provincial govt. that won’t accept this already approved project and is quietly encouraging radical groups to prevent construction from starting?…a very black mark on Canada that things have come to this…
Comment by Jon - BMR — May 29, 2018 @ 10:12 am
Yes Jon, just a very big head shake from side to side..unbelievable…
Comment by Laddy — May 29, 2018 @ 10:23 am
The blind creek spin-out, Engineer gold mines is quite interesting. Even though it needs a little work, a mill is on site. High-grade historical gold production. A current high-grade gold resource open to expansion and some very intriguing shear zones. Looks like tomorrow is the last for the share div.
Comment by maxwell — May 29, 2018 @ 7:24 pm
Time for CLM to get some Promotion behind it >>>> they raised another $ million plus and Wally keeps active buying and selling and the share price is now back over .70 having the PP announced last week as Closed !! So it’s onward and upward and I’m sure some Newsletter writers will be on it right away ….. let’s see when Eric is pumping it !!!
Comment by farmer — May 29, 2018 @ 11:47 pm
Not too many Stocks standing after some nice moves earlier on in the year and going back to late 2017 …… GGI and GTT remain the strongest performers while CCW finally turned things around as well as CLM !! GGM IMR MOON WHM DM CYX FIN WLF ….. had their runs and hopefully people here cashed in cuz anyone who didn’t sell and move on are now stuck !!! AIS is another blow to the gut for those who were over $1.10 …. remember, a gain is a gain and unless you own GGI, there’s no reason to stay ” married ” to any other investment. imho
Comment by jerseyman2 — May 30, 2018 @ 5:28 am
Unfortunately there are a lot of bust so far this year, still hoping for turnaround with ais……I admit not looking good for them
Comment by Gregory — May 30, 2018 @ 7:07 am
Why is it that we didn’t see some nice movement with Orca Gold? We have a major taking a 15% stake in the company and injecting $22M at .67 per share, and we moved up a penny on low volume?
Comment by Tfred — May 30, 2018 @ 7:48 am
Delayed reaction IMHO, Tfred…ORG chart continues to look very good, just a matter of getting thru some minor resistance in the upper 60’s…no question the primary trend is up with ORG…
Comment by Jon - BMR — May 30, 2018 @ 7:50 am
GTT – strong momentum today.
Comment by BigBid — May 30, 2018 @ 8:00 am
Wow, jerseyman2, you are writing off a lot of stocks that appear to have great futures. If you are a trader, fine. You could have made some money. But to say that the big move has already been had by the likes of MOON, for instance, seems insane. Good thing North Korea’s nukes are in the hands of a steadier finger than yours.
Comment by Tad — May 30, 2018 @ 9:17 am
Agreed Jerseyman that GGI,GTT and CCW look very strong. Took nice profits on both DM and CYX so no complaints there. Still strong on MOON AIS and IMR and hopeful they can all pull a rabbit out of the hat. AIS should bottom soon because the lithium shortage is not going away. Moon badly needs the drill permits but once they arrive it should start to move. IMR need to get started at their drill program but the soil samples are very positive so still hopeful there also. Haven’t paid myself from the portfolio since January but the junior market is very sluggish at the moment and no way am I giving away cheap shares. Might even add a little more before I sit back and watch them all pop over the summer. GGI should get the ball rolling shortly.
Comment by Patrick — May 30, 2018 @ 9:18 am
Nice accumulation in GTT today, BigBid, as momentum builds…all signs point toward triple digits very soon if you examine the chart as drilling approaches…at Nickel Mountain, the value of high-grade near-surface Nickel-Copper is huge…at GTT’s Saddle South, their near-surface high-grade Gold discovery is also a rare find days and has all the earmarks of an open-pit deposit…immediately adjacent to it, looks like a big porphyry system, and there appears to be a Saddle South look-a-like 7-km to the south at Tatogga…only a very robust overall system could produce all of this…
Comment by Jon - BMR — May 30, 2018 @ 9:26 am
Jon, NGZ didn’t get a HUGE reward from great results on their recent news release but it’s around a $40 mill MC now. AIS $17 mill MC. You’d think solid results at Chiron would really help right?
Comment by BigBid — May 30, 2018 @ 9:53 am