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1. Gold has traded between $1,322 and $1,330 so far today…as of 7:00 am Pacific, bullion is off $5 an ounce at $1,323…Silver has pulled back 13 cents to $15.75…strong technical support exists in the $15.70’s…base metals are holding firm…Copper is steady at $2.97, Nickel has added 5 cents to $5.88 while Zinc is up a penny at $1.25…the U.S. Dollar Index is flat at 96.02…Oil prices are up by $1 a barrel this morning, buoyed by an unexpected decline in U.S. Crude inventories and after Saudi Arabia appeared undaunted by pressure from President Trump to prevent prices from climbing much higher…Saudi Energy Minister Khalid al-Falih said OPEC and its partners were “taking it easy” in response to a tweet from Trump on Monday that called on the group to ease off on its restrictions on Crude production…“We are taking it easy. The 25 countries are taking a very slow and measured approach. Just as the second half of last year proved, we are interested in market stability first and foremost,” Falih said in Riyadh when asked to comment on Trump’s tweet…Falih added that he is leaning toward extending the deal to curb output into the 2nd half of 2019, but OPEC remains flexible and will assess market conditions before making a decision…President Trump is in Vietnam where he praised his “special relationship” with North Korean leader Kim Jong Un and said “a lot of things will be solved” during the 2 leaders’ historic second summit as they prepare for a full day of formal talks…meanwhile, as the North Korea threat eases thanks to a different approach than Obama took, Pakistan and India clashed in the skies over the nuclear-armed rivals’ disputed border today…each side said it had downed at least 1 warplane belonging to the other in a sharp escalation of hostilities that ended with Pakistan capturing at least 1 Indian pilot…Indian warplanes have struck inside Pakistan for the first time since a 1971 war, prompting world powers to urge restraint…
2. History shows that Big Gold, like Barrick’s (ABX, TSX; GOLD, NYSE) Mark Bristow is embracing with his proposed takeover of Newmont (NEM, NYSE), doesn’t always produce big results…over the past 5 years, Newmont and Barrick have gone in opposite directions, with Newmont producing a total return of 81.6% (in Canadian dollars) and Barrick saddling its shareholders with an 18% loss…the fact the latter has made a hostile all-share takeover bid below the former’s current share price is absurd…however, even Newmont has not matched the payoff of some stellar smaller miners, such as Kirkland Lake Gold (KL, TSX), Wesdome Gold Mines (WGO, TSX) and Endeavour Mining (EDV, TSX), who can be more focused…meanwhile, the recent mega mining mergers point to an uptrend in the mining industry, according to Corvus Gold (KOR, TSX) CEO Jeff Pontius, adding that there is a reason Nevada is at the centre of all the recent M&A activity…“Nevada turned out to be one of the cheapest places that we can actually operate as a Gold industry right now. And I think that is why it is the focus of all these big mergers right now,” Pontiuis told Kitco News on the sidelines of the BMO Global Metals & Mining Conference. “We do most of our economics based around $1,200 an ounce – that is the base case scenario. But, $1,350-$1,400 is all gravy for Gold guys”…
3. Amex Exploration (AMX, TSX-V) has pulled back modestly on news in early trading after climbing as much as 63% over the last 6 sessions…continuing drilling of the Eastern Gold zone (EGZ) at the company’s Perron Project north of Rouyn-Noranda has successfully expanded the high-grade zone (HGZ) laterally on both sides of previously identified mineralization…drill hole PE-19–27 intersected 56.75 g/t Au over 8.50 m including 581.6 g/t Au over 0.80 m at a vertical depth of about 225 m and a lateral distance of about 25 m to the east from the previously defined vertical section of the high-grade zone…the intersected mineralization consists of 2 quartz veins located on either side of a foliated and fine-grained mafic intrusive crosscutting a large unit of silicified rhyolite…each of these 2 quartz veins contains pyrite, sphalerite, and numerous visible Gold as coarse grains, flakes or points…an additional step-out drill hole, PE-19–26, intersected the 2 veins on both sides of the mafic intrusive with values of 5.7 g/t Au over 0.95 m and 9.3 g/t Au over 0.50 m at a vertical depth of about 160 m, but this time at a lateral distance of about 25 m to the west of the previously defined vertical section of the high-grade zone…a minimum lateral width of 50 m has now been confirmed with the results from PE-19–26 and PE-19–27 as well as from visual indicators from additional unreleased holes (assays pending)…the zone has now been intersected over a vertical distance of approximately 150 m and a lateral distance of 50 m pierce point to pierce point with a spacing varying from 25 to 50 m…the high-grade zone extends to a depth of approximately 275 m below surface and remains open toward surface, to depth and along strike…Amex completed a $5.4 million financing last week at 75 cents per unit with Eric Sprott subscribing for $3 million or 55% of the PP…
4. Pure Gold Mining (PGM, TSX) has provided the results of a PEA for its Fork, Russet South and Wedge deposits that demonstrate the potential to add approximately $51 million to the Madsen Gold Project after-tax net present value…as a result of high Gold grades, near-surface resources, and use of existing infrastructure, mining of these zones will yield an after-tax IRR of 39%…the results of this PEA highlight the prospective upside at Madsen-Red Lake, the economic viability of Madsen, and demonstrates how Pure Gold would phase new discoveries into future mine plans…based on the current resource, development of these new discoveries could add approximately 4 years of production at below-industry average cash costs while generating robust cash flows…”Our PEA provides us with a blueprint of how we could expand our mine life and production profile at Madsen, and illustrates just how impactful and accretive new discoveries can be to the future of our district,” stated Darin Labrenz, President and CEO of Pure Gold. “We have deployed a modest amount of capital in discovering and delineating these new resources and the return on our investment is exceptional. This PEA, represents the first conceptual expansion scenario for the future phased growth of the Madsen mine complex”…
5. The Dow, aiming for a 10-week winning streak, is off 53 points after 30 minutes of trading…in Toronto, the TSX is 50 points lower…Tim Hortons (QSR, NYSE) opened its first Chinese store yesterday, and the iconic Canadian coffee and doughnut chain is making no secret of its ancestry despite simmering political tensions between the two countries…the store in Shanghai – the first of a planned 1,500 – has hockey sticks for door handles and abundant maple leaves, on cups and dusted on the tops of lattes…the Venture has lost 2 points to 622…Canopy Rivers (RIV, TSX-V) has closed its previously announced bought deal and concurrent private placement for total gross proceeds of approximately $93.5 million…Canopy Rivers works collaboratively with Canopy Growth (WEED, TSX; CGC, NYSE) to identify strategic counterparties seeking financial and/or operating support…First Vanadium (FVAN, TSX-V) was halted market with the company announcing a resource estimate for its Carlin Vanadium deposit near Elko, Nevada…Indicated resources are 24.64 million tons grading 0.615% V2O5 while Inferred resources are 7.19 tons @ 0.52% V2O5 at a cut-off of 0.30%…the resource as defined within the pit shell has a defined strike length of approximately 1,800 m and width averaging 600 m, starting at surface to depths of 120 m…the thickness of the main mineralized zone ranges from 15 m to 50 m…Benchmark Metals (BNCH, TSX-V) has added 1,751 hectares of new claims to its Lawyers Gold and Silver Project in the Golden Triangle….the new claims are contiguous to the southeast, increasing the Lawyers’ land package to nearly 120 sq. km, where there is good potential for finding additional Gold-Silver mineralization…CEO John Williamson commented, “The Lawyers trend is emerging as an important regional-scale prospect that follows a linear magnetic and radiometric anomaly with a northwest to southeast orientation connecting multiple Gold-Silver showings across the Lawyers land package. Several lines of evidence now support the potential that this anomaly may represent a regional-scale structure providing a conduit for gold- and silver-bearing fluids”…
6. CSE success story: Koios Beverage (KBEV, CSE) is the big mover on the CSE this morning, up 19 cents at 56 cents as of 7:00 am Pacific after the company announced the signing of a vendor agreement with Walmart (WMT, NYSE)…Koios developed a proprietary nootropic formula that has been shown to enhance brain function, including mental focus, memory, and concentration…its formula includes superfoods such as lion’s mane mushroom, which contains bioactive substances with beneficial effects on the body, brain, heart, and gut…the company produces the formula as a line of healthy, organic beverages and drink powders…launched last year, the Koios brand had been carried primarily in several health store chains, and various grocery chains until December when GNC – the largest health and wellness company in North America – initiated a vendor partnership…now, Walmart will soon be adding the Koios beverage line to its new functional beverage set…initially, Koios products will be available in 1,094 Walmart locations across the United States…the retail giant will carry Pear Guava, Blood Orange and Peach Mango beverages…the products will also be available through Walmart’s online portal and in stores starting April 1…
7. It’s unacceptable to have Canadian resource projects held hostage to internal strife within a native band...many native bands in Canada can’t even manage their own affairs properly, yet they insist on what amounts to veto power over resource projects in this country…The Globe and Mail reported this morning that Wet’suwet’en Nation chiefs who oppose TransCanada’s Coastal GasLink pipeline route in British Columbia stripped hereditary titles from 3 indigenous women who support the project…the women formed the Wet’suwet’en Matrilineal Coalition (WMC) in August, 2015, hoping that it would lead to a collective decision-making body…internal strife within the Wet’suwet’en Nation has grown in recent years, with conflict between hereditary chiefs administering their unceded territories (passed down through oral traditions) versus elected band councillors on reserves (codified by federal law)…it has placed a spotlight on the challenges faced by resource companies and governments when pursuing energy projects in British Columbia…the women say they have been ostracized behind the scenes since forming WMC and want to bring their case into the public light….the 3 indigenous women say they launched WMC in an effort to encourage Wet’suwet’en members to make informed decisions about contentious issues…hereditary chiefs say non-indigenous opposition from environmentalists to Hollywood celebrities is mounting against plans for the 670-km route – all the more reason, of course, for Canadian politicians to show leadership and backbone…they must stand up for Canada to prevent a fringe minority, partially organized and funded by foreign sources from Hollywood and elsewhere, from destroying jobs and eroding economic opportunities in this country…
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