Visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,322 and $1,335 so far today…as of 7:00 am Pacific, bullion is up $7 an ounce at $1,335…$1,350 is the next logical immediate/near-term target…Silver has added 4 pennies to $15.81…a confirmed breakout above the critical $15.70’s could sent the metal rocketing higher…Copper, Nickel and Zinc all up modestly at $2.86, $5.67 and $1.21, respectively…Copper stockpiles available to the market in LME-registered warehouses are near 13-year lows and LME time spreads have tightened rapidly, suggesting a shortage of nearby metal…WTI is up another 15 cents a barrel to $55.75…supply cuts led by OPEC have lifted Crude prices by more than 20% this year, despite a global economic slowdown…U.S. sanctions against Iran and Venezuela have also tightened the market…the U.S. Dollar Index is relatively flat at 96.77…another socialist has entered the Democratic primary for the battle against President Trump in 2020, which won’t be much of a battle if it’s Trump vs. socialism…Bernie Sanders, who of course was beaten by Hillary Clinton in the 2016 Democratic primary, confirmed today that he’s seeking the 2020 Democratic Presidential nomination in an increasingly crowded field (mostly far left) vying to take on Trump in the general election…
2. A new round of talks between the United States and China to resolve trade tensions will take place in Washington today, with follow-up sessions at a higher level later in the week…the talks follow a round of negotiations that ended last week in Beijing without a deal but which officials said had generated progress on contentious issues between the 2 trading partners…the talks are aimed at “achieving needed structural changes in China that affect trade between the United States and China. The two sides will also discuss China’s pledge to purchase a substantial amount of goods and services from the United States,” the White House said in a statement…
3. Spot Palladium rose to a peak of nearly $1,500 an ounce overnight, its highest on record…autocatalyst manufacturer Johnson Matthey said in a report last week that the deficit in the Palladium market will widen dramatically this year as stricter emissions standards increase demand…”The market is fundamentally strong,” Julius Baer analyst Carsten Menke said…“(The) ongoing deficit and autocatalyst producers saying they are not seeing broad-based substitution from Palladium to Platinum really reinforce the prevailing positive sentiment”…both metals are primarily consumed by automakers for use in catalytic converter manufacturing, but Platinum is more heavily used in the diesel vehicles that have fallen out of favour since the Volkswagen emissions-rigging scandal broke in 2015…Palladium, unlike Platinum, has benefited from a switch to petrol engines and expectations for growth in hybrid electric vehicles, which tend to be partly gasoline-powered…this has helped the metal largely ignore falling car sales across the globe…
4. Copper prices are up since yesterday on concerns that supply will tighten after a court ruling cast doubt on the future of a smelter in India…India’s Supreme Court has refused to allow reopening of Vedanta’s Copper smelter plant which was at the centre of massive protests (hysteria) over pollution concerns, but granted the company liberty to approach the high court…in doing so, the Supreme Court set aside an order by an environmental court which had cleared the way for reopening of the smelter…the government of Tamil Nadu state ordered the smelter shut permanently in May after violent protests at the plant in the city of Thoothukudi in which 13 people were killed…in December, India’s National Green Tribunal (NGT) revoked the state decision to shut the plant, prompting the state government to appeal in the Supreme Court…
5. The Dow is off slightly in early trading after a 444-point surge Friday…the index has climbed for 8 straight weeks…Walmart (WMT, NYSE) has reported earnings and revenue for the holiday quarter that topped analysts’ expectations, as its e-commerce sales surged 43% thanks to more shoppers using its online grocery delivery service and spending more per trip…CEO Doug McMillon said “a favorable economic environment” has been helping Walmart grow sales and take market share from rivals…in Toronto, the TSX is 71 points higher on strength in the metals sector…the TSX Gold Index is rapidly approaching a new 52-week high…the Venture is up 4 points at 620 as it pushes through its declining 100-day moving average (SMA), resistance since the early part of last year…Khiron Life Sciences (KHRN, TSX-V) has jumped out of the gate quickly this morning, adding 23 cents to $3.28 – a new high – as of 7:00 am Pacific…the cannabis company announced a $25 million bought deal financing earlier this month at $2.20…red-hot Amex Exploration (AMX, TSX-V), which has been drilling into high-grade Gold at its Perron Property north of Rouyn-Noranda, has crossed the $1 level for the first time in 5 years…Canada Cobalt (CCW, TSX-V) has been halted, pending more news…on Friday, following the market close, CCW announced that nearly 2,000 m of drilling in holes CS-18–15 through CS-18–18 had intersected a pyrite-rich Archean Gold system at Castle East in association with newly discovered fault structures and a strong geophysical signature approximately 1.5 km east of the Castle mine and 2 other past high-grade Silver producers in Gowganda, 75 km from the Kirkland Lake Gold Camp…fresh drilling at Castle East begins this week…assays are pending but visuals (abundant fine-grained pyrite, intense quartz veining, multiple styles of alteration) back up the model for Gold in the area…the fine-grained pyrite can run very high in Gold…iMetal Resources (IMR, TSX-V), CCW’s Gowganda neighbor to the west, is also in the midst of a new Gold discovery contiguous to Pan American Silver’s (PAAS, TSX) deposit…Gowganda West has never been previously drilled but initial holes are showing that the rocks, veining and alteration found at surface (chip samples returned high-grade Gold values) are present at depth…IMR has broken out powerfully above a multi-year downtrend line and appears to be ready to conquer 20 cents on the charts after a 67% gain last week on record volume, one of the best indicators of all…
6. Gran Colombia Gold (GCM, TSX) has firmed up this morning, hitting new highs, thanks to rising Gold prices and news from the company regarding the opportunity it sees in the evolving changes in Venezuela to recover and develop its Gold exploration assets that were nationalized in 2011…this would add to GCM’s pipeline of Latin America-based projects which could fuel the company’s mid-to long-term growth objectives…Gran Colombia says it recognizes Juan Guaido as the legitimate interim President of Venezuela and has communicated to its government the company’s firm intention to re-start its mining project in Venezuela as soon as circumstances allow…for the purposes of holding, developing and financing its Venezuelan assets and carrying out its Venezuelan investment strategy, Gran Colombia intends to spin off such assets into a separate listed special purpose vehicle…through the spin off, Gran Colombia will retain a major stake in the new company while leveraging the capital markets to provide the funding required for exploration and development of the mining assets…Serafino Iacono, Executive Co-Chairman of Gran Colombia, stated, “We are incredibly excited with the future prospects of Venezuela and are eager to be a partner in the reconstruction of the country. We have been successful in executing our turnaround strategy over the last couple of years, focused primarily on implementing our mining plan at our core producing asset, the Segovia Operations, which remains at the heart of our exploration and development programs for near-term growth. We believe Gran Colombia is uniquely positioned to use this experience to efficiently develop Gold mining assets in Venezuela through a separate listed vehicle in a sustainable and environmentally responsible manner. We are the largest Gold and Silver producer in Colombia with a 2018 output of 218,001 ounces (equivalent to approximately 6.8 tons) of Gold and our senior management team has unmatched experience in the Venezuelan greenstone belt, having also financed and developed what was, until the nationalization of the Gold industry, the largest operating Gold project in the country”…
7. Canopy Growth (WEED, TSX) managed to lock down nearly a third of Canada’s recreational cannabis market last year, according to a Financial Post report over the weekend…BMO Capital Markets estimates Canopy’s recreational sales volume during the quarter ended December 31 represented a market share of 30%…CEO Bruce Linton expects to “dominate” the weed market in Canada…rival Aurora Cannabis (ACB, TSX) reportedly had about 20% of the recreational market…Canopy has made a number of acquisitions over the past year, including the purchase of hemp researcher Ebbu…It has vowed to make further investments where it was granted a hemp processing and production licence in January…subsidiary Canopy Health Innovations has begun “in-human” clinical trials to test out the use of medical marijuana in treating insomnia…Canopy reported Friday that it got off to a solid start in the early days of cannabis legalization in Canada, although rising costs associated with breaking into the market dampened some of the enthusiasm…the company booked a profit of $74.9 million for the 3 months ended Dec. 31, up from $11 million a year before…
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Any thoughts why MOON has not performed as expected?
Comment by DavidW — February 19, 2019 @ 11:23 am
wow.. GGI.. great move… guess noone cares??? really quiet here!!!!
Comment by Jeremy — February 19, 2019 @ 1:37 pm
Venture volume is speaking:)
Comment by Jeremy — February 19, 2019 @ 1:38 pm
CCW – rumor involves Battery Metals…
Comment by Jeremy — February 19, 2019 @ 4:45 pm
I believe something will evolve with Battery Minerals, Jeremy – I don’t think it’ll be this news but I certainly see it on the horizon…
Comment by Jon - BMR — February 19, 2019 @ 4:54 pm
Jeremy, I don’t believe that rumour at all, just people speculating. Too early for someone to take a run at CCW. Need drill results first which is my bet on the news coming.
Comment by Danny — February 19, 2019 @ 5:04 pm
Guys .. thats what a rumor is….. geeezzzzhhhhh
Comment by Jeremy — February 19, 2019 @ 6:00 pm
I too am interested in why MOON has not performed as expected with regards to share price.
Comment by Sooch — February 19, 2019 @ 7:02 pm
Agnico Eagle hit a glory hole at Castle at Shaft #3 (it put the mine into a decade of production) that was missed by just 20 feet by the oldtimers…CCW could be on to its own glory hole with a discovery just 55 meters away…lots of juicy tidbits in NR, we’ll highlight the highlights early in AM (note – major Re-2OX program to be elaborated on by CCW shortly, as noted in news, and blasting throughout the first level of mine is also a key point)…
CANADA COBALT DRILLS INTO BONANZA GRADES AT CASTLE
Canada Cobalt Works Inc.’s first-pass underground phase 1 drilling on the first level of the Castle mine near Gowganda, 75 kilometres from Kirkland Lake, has returned multiple high-grade cobalt and silver intercepts at very shallow depths.
Drill results have also revealed areas overlooked by historical explorers that show potential to host very high-grade “shoots” of silver and cobalt-silver mineralization, mixed with occasional nickel and gold, that may extend to considerable depths outside of historical drilling or workings.
Highlights:
– New discovery of very high-grade silver vein structures approximately 55 meters southwest of the #3 Shaft where a silver discovery in 1979 put the Castle mine back into production for a decade – CA-18-54 cut 93.7 ounces per ton Ag (3,213 grams per tonne) over one meter including 286.3 ounces per ton (9,816 g/t) over 0.33 meters starting just 9.71 meters downhole, with the hole drilled across the structure at 25 degrees to core axis and then bottoming in high-grade mineralization from 18.84 meters to 20.50 meters;
– 385.2 ounces per ton silver (13,208 g/t), 0.67% cobalt and 3.77 g/t gold over half a meter within a broader 5.51-meter zone that also included 1.87% cobalt over 2.54 meters and 76.4 ounces per ton Ag (2,620 g/t) over a core length of 5.51 meters starting at just 1.46 meters (CA-18-02, collared near the adit entrance, was drilled perpendicular to the strike of the targeted vein structure, sub-parallel to the dip of the vein);
– All 47 assayed shallow underground test holes intersected cobalt mineralization with an impressive one-quarter of those holes returning high-grade intercepts of 1.05% to 3.7% cobalt over an average core length of 1.77 meters (true widths unknown at this time);
– A series of key initiatives, already in motion, will drive an expanded Phase 2 program to immediately build on these results and accelerate the broader 2019 corporate goal to leverage the company’s proprietary Re-2OX technology simultaneously with heightened activity at the Castle mine in ways that continue to keep CCW share dilution to a minimum.
Jacques Monette, Canada Cobalt Director and career miner, commented: “These results from our first-ever underground drilling support the interpretation that much was left behind at the Castle mine, not just cobalt but very high-grade silver. This array of high-grade intercepts at shallow levels further energizes our team as we ramp up again and implement a greatly expanded second phase of our underground strategy.
“2018 was a pivotal year in the revitalization of the Castle mine,” Monette continued, “and we look forward to achieving key new milestones in the coming months. At the height of winter, we have a very active site and another drill program kicking off this week southeast of the mine as we build on a potential high-grade gold discovery at Castle East. This is an exciting new development as the Archean rocks east of the high-grade silver mines were never tested historically.”
Next Action Steps Underground
– Immediate priority is follow-up drilling targeting high-grade “shoots” near #3 Shaft and adit entrance;
– Through discussions with Canada Cobalt’s engineering consultant, and the Northern Ontario Ministry of Mines and Development, all material from the first level stopes will be dumped and removed in accordance with an amended advanced exploration permit (notably, Canada Cobalt can produce gravity concentrate on site). The stopes will then be available for back-filling with cemented tailings as part of a major new program involving Re-2OX that Canada Cobalt will be elaborating on in the very near future;
– As part of the amended exploration permit, blasting will be undertaken throughout the first level;
– Hydrogeological studies will evaluate dewatering of the remaining 10 levels of the Castle mine.
Underground Drilling Highlight Details
#3 Shaft Area
Drill hole CA-18-54 hit two very high-grade silver intercepts starting just 9.71 meters downhole, 93.7 opt (3,213 g/t) over one meter including 286.3 opt (9,816 g/t) over 0.33 meters, followed by 11.8 opt (406.1 g/t) over 1.66 meters at the bottom of the hole beginning at 18.84 meters. Drilling was across these structures, with the first intercept at 25o to core axis and the latter intercept cutting a new vein at a lower angle than the first intercept. This is a new discovery where there was limited previous work – follow-up drilling will track the vein, and potential associated veins, to depth.
Adit Entrance Discovery
A further review of historical work in addition to Canada Cobalt drilling including updates of previously released preliminary data, suggests a silver-cobalt rich vein intersected near the adit entrance in the first three drill holes may also extend much further to depth. CA-18-02 was one of several holes that attempted to follow the vein from a series of inclinations from approximately the same drill set-up through the Nipissing Diabase toward the second level in order to test grade potential. Veining is irregular, so contacts averaged approximately 25 degrees to core axis (refer to Nov. 2, 2018 news release).
High-Grade Cobalt Values Confirmed
For the first time at the Castle mine, high-grade cobalt values, along with occasional nickel and gold, have been confirmed through drilling to exist in vein structures, and as much as 174 meters apart (collar to collar) from near the adit entrance (23 meters below shaft collar) to the #3 Shaft area.
Multiple Target Areas Throughout Expansive First Level
Phase 1 drilling has provided the Canada Cobalt geological team with multiple highly prospective new targets for detailed follow-up utilizing a more versatile and powerful drill rig that can track high-grade veins to depth. Many vein structures have yet to be tested. Based on historical mining data, veins at Castle are known to pinch and swell and move in and out of high-grade and lower grade mineralization over considerable distances. The first level (there are 11 in total) is in excellent condition with a footprint of 365 meters east-west and 360 meters north south. A total of 58 holes were completed (47 have been assayed) in Phase 1, totaling 675 meters. A table of assay highlights/details will be posted on the Canada Cobalt web site.
Canada Cobalt Adds $500,000 From Exercise of Warrants
Canada Cobalt has received approximately $500,000 from the exercise of warrants over the past two months and will continue its Northern Ontario Cobalt Camp leading practice of keeping share dilution to a minimum while aggressively advancing its exploration and development strategies in a cost-effective manner.
Quality Assurance/Quality Control
Canada Cobalt Works’ AQTK drill program employs diligent standards in drill core sampling and quality assurance/quality control. Core from the above holes was sent to Swastika Laboratories in Swastika, Ont., for analysis. Where silver was visually and significantly present, a pulp-metallic analysis was completed for the silver assays. The entire sample was dried, weighed and crushed over 95 per cent, then fully pulverized and passed through 147-micron screen to create a plus-147-micron fraction (metallics) and a minus-147-micron fraction (pulp). Approximately 50 grams of the metallic fraction was weighed, fused and assayed by fire assay. The resulting dore bead of gold and silver was weighed before adding HNO3 acid to dissolve the silver. The remaining gold bead was weighed and subtracted from the gold plus silver bead to give a silver weight and grade for the metallics portion. The minus-147 fraction (pulp) had two samples from entire pulp which were weighed and then digested by two-acid aqua regia and finalized by AAS reading for cobalt, silver and nickel. Final silver grade is a calculated weighted average using grades and weights from both pulps and metallics.
As gold was not assayed in the pulps, the final gold assay was calculated by weighted average, as for the silver, but assuming a grade of zero gram per tonne gold for the pulp portion. Cobalt and nickel were reported as a percentage grade. Other samples were assayed for cobalt, silver and nickel by AAS after aqua regia digestion. Analytical accuracy and precision are monitored by the analysis of reagent blanks and reference materials at the lab. Quality control is further assured by the insertion of blind certified standard reference material and blanks into the sample stream at regular intervals by Canada Cobalt Works personnel in order to independently assess analytical accuracy.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt is a pure play cobalt company focused on its past producing Castle mine in the Northern Ontario Cobalt Camp, Canada’s most prolific cobalt district. With underground access at Castle, a recently installed pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery.
We seek Safe Harbor.
Comment by Jon - BMR — February 19, 2019 @ 8:12 pm
Wow, those silver hits are truly Bonanza! I have a feeling CCW just getting started. Wait until they announce their gold discovery.
Comment by Dan1 — February 19, 2019 @ 8:23 pm
And right near surface, Dan1, like really really close to surface…you could shovel it out…these vein structures can extend for very long distances – they’ll pinch and swell and weave in an out of mineralization, but the grades are phenomenal and that’s how Agnico Eagle made this their key operation in the district…
Every hole intersects Cobalt, one quarter of them with grades 1.05% to 3.7% – can’t get much better than that…
Blasting throughout first level – that’s going to be key…plus dumping of all the stopes…
Comment by Jon - BMR — February 19, 2019 @ 8:27 pm
Absolutely Jon.
Comment by Dan1 — February 19, 2019 @ 8:29 pm
Bring on the bonanza zone!!!
Comment by MuskyHunter — February 19, 2019 @ 8:35 pm
I was about to hit the sack when the news dropped. I’ll sleep easier now, or not.
Comment by Dan1 — February 19, 2019 @ 8:48 pm
I think the biggest benefit for Frank/Ccw is better market credibility…he delivered…no reason not to expect it again gold wise. Thanks BMR for great coverage.
Comment by flyinthruu — February 19, 2019 @ 9:00 pm
Thanks for your work on CCW and IMR, Jon. The wait was frustrating at times but oh so worth it!
Comment by adrobyshev — February 19, 2019 @ 9:21 pm
Historical photos in the district. I think CCW needs a photo shoot this Spring with Miss Cobalt .
https://cobalt.ca/wp-content/uploads/2014/11/history-9.jpg
Comment by donald — February 20, 2019 @ 2:12 am
What about Moon , very quiet , in the sky next blue moon is May 18, 2019 . patience
Comment by robtr31 — February 20, 2019 @ 6:09 pm
Things in the works there, robtr31 – that last hole ensures things are going to work out really well…just a matter of precise timing…
Comment by Jon - BMR — February 20, 2019 @ 7:14 pm