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1. Gold has traded between $1,279 and $1,286 so far today as equity markets remain wobbly…as of 7:00 am Pacific, the yellow metal is up $3 an ounce at $1,282…greenback strength is acting as a partial constraint on Gold, at least for now…Silver has added 8 cents to $14.42…Nickel, Copper and Zinc are all off slightly at $5.44, $2.66 and $1.22, respectively, while Cobalt is unchanged at $15.42…Crude Oil has come under pressure again, down $1.65 a barrel to $57.49, on concerns that deteriorating U.S.-China trade relations could trigger a global economic downturn…however, relatively tight supply amid OPEC output cuts and political tensions in the Middle East do offer some support…the U.S. Dollar Index has jumped more than one-tenth of a point to 98.08 as it continues to try to gain traction above that important 98 level…unnerving European traders this morning was news that Germany’s unemployment rate unexpectedly surged this month…the country is the economic workhorse of the European Union…
2. Long-term U.S. government debt yields continued to fall below rates on short-term notes and bills during today’s session, an unusual bond market phenomenon often heralded on Wall Street as a recession prognosticator…the yield curve inversion between the 3-month Treasury bill and the 10-year note widened to its deepest level since the financial crisis, with the latter rate falling to its lowest level since September 2017 before a slight recovery…the 3-month bill, anchored by Federal Reserve policy, held steady at 2.36% while the 10-year note yield last traded at 2.23%…many investors – now expecting a 13 basis point premium for holding 3-month bills over 10-year notes – are increasingly warning about economic growth in the United States…under normal market conditions, those that buy debt from the U.S. government for years are compensated with better interest rates than those who loan money for a matter of months…of course these aren’t exactly normal times…
3. Another foreign Oil company has given up on Canada: Canadian Natural Resources (CNQ, TSX) has signed a deal to buy the Canadian operations of Devon Energy (DVN, NYSE) for $3.8 billion…the assets include thermal in situ Oil sands production and conventional primary heavy Crude Oil operations located adjacent to existing Canadian Natural assets…the production acquired under the deal totals 128,300 barrels per day, including 108,200 from the thermal in situ operations and 20,100 from the conventional operations…Canadian Natural says the deal also includes 607,000 hectares of land, of which 405,000 hectares are undeveloped, providing significant upside value and opportunities…Devon, which put its Canadian assets up for sale February, is the latest foreign company to flee the Canadian Oil sector in recent years…other companies that have made similar moves include Norway’s Statoil, France’s Total SA, Arkansas-based Murphy Oil and Houston-based ConocoPhillips…anyone who believes that’s good for Canada – the “green” lobby certainly does – is delusional…
4. Is Beijing gearing up to use its dominance of rare earths to hit back in its deepening trade battle with Washington?…a flurry of Chinese media reports today, including an editorial in the flagship newspaper of the Communist Party, raised the prospect of Beijing cutting exports of the commodities that are critical in defense, energy, electronics and automobile sectors…the world’s biggest producer, China supplies about 80% of U.S. imports of rare earths, which are used in a host of applications from smartphones to electric vehicles and wind turbines…meanwhile, rare earth play Defense Metals (DEFN, TSX-V) is showing breakout possibilities after recently receiving its exploration permit from the B.C. government that allows for the establishment of up to 51 separate drill site locations at the Wicheeda REE Property northwest of Prince George…upcoming drilling by Defense is planned to further delineate the Wicheeda carbonatite intrusion that hosts important REE mineralization at the Wicheeda deposit…this carbonatite body is currently open to the southeast, north and west, where it is interpreted to be potentially down dropped by faulting…DEFN is up 2.5 cents at 21.5 cents as of 7:00 am Pacific…
5. Charlotte’s Web Holdings (CWEB, CSE) has received conditional approval for the listing of the company’s common shares on the TSX with trading on the big board expected to commence this Friday (May 31) under the same symbol (accordingly, CWEB is voluntarily delisting from the CSE after the close of trading tomorrow)…the move from the CSE to the TSX comes just 9 months after the company’s successful IPO on August 30, 2018, and is a reflection of both the company’s continued growth and the improving regulatory environment for hemp in Canada and the United States…while Charlotte’s Web previously met operational, governance and capital requirements for a TSX listing at the time of its IPO, uncertainties regarding the federal legality of hemp in the United States at the time were not clear enough to satisfy TSX listing policies…with the passing of the Agricultural Improvement Act of 2018 (also known as the 2018 Farm Bill) in December of last year, hemp and hemp products were permanently removed from the Controlled Substances Act (CSA) and out of the jurisdiction of the Drug Enforcement Administration (DEA)…hemp became an agricultural commodity governed by the U.S. Department of Agriculture (USDA)…
6. The Dow, on a 5-week losing skid, has retreated another 205 points through the first 30 minutes of trading…the Dow, S&P 500 and NASDAQ are headed for their first monthly declines of 2019…in Toronto, the TSX is down 130 points in early trading while the Venture has eased off 2 points to 604…Great Bear Resources (GBR, TSX-V) is up another 27 cents at $3.79, hitting its highest level since early March, after announcing a stellar new drill result during yesterday’s session…GBR cut 14 m grading 12.3 g/t, including 31 g/t over 4.6 m, at its Dixie Project in the Red Lake Camp, and the stock jumped 58 cents to close at $3.52 on its 2nd-best volume in more than 2 months…significantly, this near-surface result came from a new area (Bear-Rimini zone) approximately 2.5 km north of the Hinge zone, hosted by a new exploration target (the LP fault and adjacent lithologies)…key Fib. resistance for GBR on its long-term chart is in the $3.60’s…Chemesis International (CSI, CSE) has received approval for 3 new cultivation licences for 3 additional farms located near Bogota, Colombia…currently, the company has 5 acres planted for its pilot spring harvest and has the ability to expand to over 100 acres once the initial harvest is complete…these new acres, to be planted soon, not only will be focused on producing biomass but will also contribute in expediting the expansion of La Finca’s seed stock, a crucial step in guaranteeing acreage growth is in sync with seed availability…the company has also established a non-profit organization with the sole purpose of promoting cannabis cultivation…the Association for the Promotion of Cannabis Cultivation offers a new agricultural model with focus on the inclusion of farming communities such as indigenous, Afro-Colombians, agroindustries and other small farmers with technical advice, seed and a crop purchasing program…CSI’s rising 200-day moving average (SMA), currently $1.60, has provided strong technical support for he stock since its big move began in September of last year…
7. Barkerville outlines 4.3 million ounces: Barkerville Gold Mines (BGM, TSX-V) has provided an updated underground resource estimate for its Cow, Island and Barkerville Mountain deposits at its 100%-owned Cariboo Gold Project…the Measured and Indicated resource now stands at 2.4 million ounces of Gold (13.2 million tonnes grading 5.6 g/t Au), a 50% increase from the 2018 resource, while the Inferred mineral resource is now 1.9 million ounces (12 million tonnes grading 5.0 g/t Au)…resources are defined over 6 km of BGM’s 67-km-long land package…infill and exploration drilling are ongoing…
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Dont blink but GGI is making some moves… low volume but encouraging
Comment by Jeremy — May 29, 2019 @ 8:28 am
BLO news out as well … they are finalizing the design, and what I like the most is the phrase design freeze so scope creep doesnt come in, – engineers need to be told when they are done!!:)
Comment by Jeremy — May 29, 2019 @ 8:30 am
FOMO – Fear of missing out in full effect on GGI this morning!
Comment by Marshall — May 29, 2019 @ 9:01 am
Oh boy, how all the doubters and nervious nellies are in for the shock of their lives, Marshall…
Comment by Jon - BMR — May 29, 2019 @ 9:20 am
Ya well, let’s see where it closes, the pigs have returned for their feeding.
Comment by Laddy — May 29, 2019 @ 9:56 am
Hope you’re right Jon,but since it has barely made a dent in the drop it’s sustained in the last 18 months I remain to be convinced. 1 or 2 days of price increase after months and months of downdraft are welcome but I guess nothing can go down in a straight line so there was bound to be a bounce.We did have spikes like these in Oct 18,Dec 18 and Feb 19 and they came to nothing.Now if it can make a higher high (a close above $1.40) then I think we have seen the bottom but until then…
Comment by keen1991 — May 29, 2019 @ 11:24 am
Hum, the iiroc police are already questioning Regoci? Doesn’t anyone have a CLUE what is going on at nickel mountain, I recommend some more dd then I guess. Volatile.. we’ve seen this picture before with some cnn/msnbc run ups..
Comment by Laddy — May 29, 2019 @ 1:44 pm
GGI has 15 million dollars in the kitty and set to drill into some very promising targets which they have worked diligently for 2 years to define.The project area now spans for 12 kilometers. They are now in the best position they have ever been in. I can’t wait to see that 3D model of the system and that exploration update on all their many promising properties. Personally I believe it’s a steal at these prices.
Comment by murf — May 30, 2019 @ 5:27 am
GGI down to $12MM in the kitty w potential for up to $20MM in wts by fall if all goes well. The costs for last yr’s exploration are over $15MM and on a crude metric, are almost twice that of 2017. $1MM was spent on other properties as well, but now news or assays released yet. A spinout from GGI makes sens and has been talked about for 2 yrs now. Wonder if we can get that this year ? $250K spent on VTEM over Grizzly, which is next to the HUDBAY JV w DBV . Wonder what they learned ? Also , it states clearly in the filings that GGI has a 3D model completed. But alas, the website cant handle that yet I guess ?
Comment by david — May 30, 2019 @ 2:33 pm
Gold up $15 at $1,303 now…Gold stocks firming up nicely…
Comment by Jon - BMR — May 31, 2019 @ 9:37 am