Visit the BMR comments throughout the day for updates and helpful information!
1. Gold has broken out to a new 5-year high in dramatic fashion…as of 7:00 am Pacific, bullion is up $21 an ounce at $1,381 after climbing as high as $1,387…markets have reacted well to yesterday’s Fed statement and Jerome Powell news conference…the Fed said it stands ready to battle growing global and domestic economic risks as it takes stock of intensifying trade tensions and growing concerns about inflation (or lack thereof)…Silver is finally catching fire, up 21 cents at $15.34 as it attempts confirmation of a major breakout above a resistance band on the short-term chart between $15 and $15.23…Copper has jumped 5 cents to $2.70 while Nickel has shot up 11 cents to $5.51…Zinc is slightly higher at $1.18…Crude Oil has surged $2.35 a barrel to 56.11 as U.S.-Iran tensions escalate following the shooting down of a U.S. drone by the world’s leading state sponsor of terror…President Trump just tweeted, “Iran has made a big mistake”…the U.S. Dollar Index has fallen half a point to 96.68…
2. The Federal Reserve may be on its way to delivering a half-point interest rate cut next month even though economic conditions don’t seem to warrant such an aggressive move, according to Goldman Sachs’ economists…in a substantial revision to its prior forecasts that the central bank would stand pat, Goldman now sees a likelihood of 2 rate cuts this year (they’ve caught up with most everyone else’s views)…prior to this week’s FOMC meeting, the bank had indicated that “the hurdle for mid-cycle easing is rather high”…however, a reading of yesterday’s post-meeting statement combined with remarks Fed Chairman Jerome Powell made at his news conference and a realignment of individual members’ forecasting “dots” has shifted Goldman’s outlook considerably…7 of 17 committee members indicated they see a 50 basis point cut in the funds rate by the end of the year, falling just short of being the consensus call, which now remains at no cuts but is expected to change…“The results of this week’s meeting suggest that many FOMC participants are increasingly influenced by the expectations embedded in bond market pricing and other outside influences,” Jan Hatzius, Goldman’s chief economist, said in a research note…“The FOMC might well deliver a 50 [basis point] cut for fear of disappointing the market, even if the economic data do not paint a particularly worrisome picture”…importantly, the Fed is clearly losing its fear of inflation pressures at this stage of the economic cycle, increasing the incentive to lower rates…
3. Oil pushes higher as Iran heightens conflict in the Strait of Hormuz: U.S. military officials returned fire – verbally – hours after Iran blasted a Navy high-altitude drone out of the sky over the Strait of Hormuz, with U.S. Central Command leaders this morning slamming the “unprovoked” strike and Tehran’s subsequent “false” justifications for it…the downing of the drone, via surface-to-air missile, is only the most recent Iranian provocation in the region, coming on the heels of a disputed attack on a pair of Oil tankers in the Gulf of Oman last week…evidence suggests Iran was behind the tanker attacks…today, Iran claimed the U.S. drone was over Iranian airspace when it was shot down but American officials stated unequivocally the incident occurred in international airspace…U.S. Central Command said in a statement that a U.S. Navy Broad Area Maritime Surveillance ISR aircraft, known as a BAMS-D, was shot down at approximately 7:35 p.m. ET last night…
4. Crystal Lake Mining (CLM, TSX-V) has become the largest landholder in the Eskay Camp, expanding its Newmont Lake Project by 115 sq. km to 551 sq. km through staking…the newly-defined Chachi Corridor, prospective for high-grade Gold and Copper-Gold porphyry, has been extended with the addition of “Chachi East”, a 17.5 sq. km package straddling the northeast boundary of the Newmont Lake Project…meanwhile, on the western side of the project, Crystal Lake has also staked the 74 sq. km “Ridge West” block which represents the possible southwesterly extension of the Burgundy Ridge drilling discovery announced in early March…a large new gossan zone is exposed on the Ridge West block within Stikine volcanics…amazing that this ground could be available just for staking but in 2016, Garibaldi Resources (GGI, TSX-V) grabbed the E&L and what’s now the Nickel Mountain trend for a song, a move that would later make fortunes for investors…Maurizio “Mars” Napoli, Crystal Lake’s VP Exploration, commented: “We have managed to gain control of the potential extensions of two large and prospective corridors on the Newmont Lake Property. Vectoring of soil anomalies into Chachi East and the numerous mineral occurrences on Ridge West add to an already impressive land package at the Newmont Lake Project”…exploration is ramping up throughout the Newmont Lake Project in advance of a major drill program commencing next month…
5. The Dow has soared 222 points through the first 30 minutes of trading…the Dow and NASDAQ are just short of new all-time highs but the S&P 500 officially hit a new all-time high at the open…in Toronto, the TSX has added 85 points while the Venture has jumped 5 points to 590 as of 7:00 am Pacific…a new Venture uptrend appears to be in the works after 585 support was successfully tested…Garibaldi, up 7 cents at $1.20, is now trading above its 200-day moving average (SMA) for the first since last September as a major technical breakout coincides with bullish fundamentals on the ground at Nickel Mountain…the 25-year GGI chart, which correctly predicted the move to $5 in 2017 by the early summer of that year, is lined up in such a way that suggests a hole better than EL-17–14 is on the way…north of the Eskay Camp, drilling has started at GT Gold’s (GTT, TSX-V) Saddle North discovery with the stock now attempting another breakout through a key resistance band between 90 cents and $1…2 inexpensive juniors with strong exposure to high-grade Silver that are ready to bust out from 2019 lows are Dolly Varden (DV, TSX-V) and Canada Cobalt (CCW, TSX-V)…Dolly Varden has announced the start of a 10,000-m drill program at its Dolly Varden Property near Stewart where geologists will be advancing targets north of existing NI-43–101 resources…Canada Cobalt, meanwhile, will soon be following up on Phase 1 high-grade Silver intercepts and potential new Silver shoots on the first level of the Castle mine where drilling returned a spectacular 385.2 ounces per ton Ag and 3.8 g/t Au over half a meter within a broader zone that also included 76.4 ounces per ton Ag over a core length of 5.51 m starting at just 1.46 m…in addition, CCW is engaged in final discussions with the Ministry of Northern Development and Mines in order to initiate a low cost but potentially very profitable tailings program at Castle that would recover high-grade Silver from nearby historic stamp mill tailings…
6. Ero Copper (ETO, TSX) has reported the highest-grade-meter intercept drilled to date by the company on its Vale do Curaca Property at its Vermelhos mine in Brazil, intersecting 28.1 m grading 12.6% Copper including 18 m @ 15.6% Copper…meanwhile, initial drilling beneath the main orebodies at Vermelhos encountered high-grade mineralization approximately 70 m below the Toboggan orebody, intersecting 13.4 m (core length) grading 5.9% Copper including 8.4 m grading 7% Copper from 306.3 m downhole…26 drill rigs are now operating throughout the Curaca Valley, including 13 within the Vermelhos district and 13 within the Pilar district…3 of these drill rigs are testing high-priority regional exploration targets located within these districts…in addition, a truck-mounted drill rig, which will focus on expediting regional exploration drilling, has just arrived on site and will be mobilized in the coming weeks…there are seven drill rigs operating at the NX Gold mine…David Strang, President and CEO, commented: “The latest results from our ongoing exploration programs continue to highlight significant opportunities for expansion of the known mineral resources around our operating mines. In particular, we are impressed by the drill results at the Vermelhos mine where we continue to see very high grades over significant widths. We are excited by the new high-grade mineralization encountered approximately 70 m below the Toboggan orebody, but cautious to draw any definitive conclusions from this single intercept until we have further evaluated the surrounding area with two newly mobilized underground drill rigs”…
7. Chemesis International (CSI, CSE) announced this morning that it has received its hemp cultivation and processing licences in the state of Michigan…with these licences, the company will begin its initial planting process in the coming weeks…the licences are a significant step forward in Chemesis’s long-term goals of establishing itself as a major cannabis multi-state operator…the company will also continue to evaluate assets and apply for licensing in the previously announced states such as Wisconsin, Illinois and Missouri…in receiving these licences, Chemesis now has U.S. operations in California, Arizona, Michigan and Puerto Rico…the company’s long-term growth strategy involves continuing to expand into other states with favorable regulations and assets that complement Chemesis’s current operations and capabilities…Michigan is projected to be in the top 5 of largest medical cannabis markets in the United States…the total legal market is expected to be $755.7 million (U.S.) by 2020, with a CAGR (compound annual growth rate) of 7%…
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Hey Jon, what do you think is holding back CLM. It seems any rally that starts is sold into and extinguished. Back to January levels, would have thought there would be more excitement now that we are into June.
Comment by Weatheritout80 — June 20, 2019 @ 12:09 pm
Weatheritout80…I think with CLM that it’s just anticipation of all those shares coming into the market in July, those who are in cheap are taking some profit before all those .225 cent shares become free trading.
On another note the volume has really picked up on IMR.
Comment by Danny — June 20, 2019 @ 12:37 pm
Weatheritout80, what’s holding it back, though just temporarily, is a supply issue IMHO, but that’s what also makes now an ideal accumulation period…like you see in virtually every stock these days, there is some early selling of a PP which in this case is from CLM’s March financing…4-month holds are not 4-month holds when it comes to certain sophisticated pro traders, so that accounts for some unusual activity which appears to have started earlier this month…in the case of CLM, what’s important to note is that the March PP went mostly into very tight hands (strong retail, not brokers or funds) and from what I saw only a tiny handful of “pros” participated which would have accounted for about 20% of the PP or about 4 million shares…on the ground, things are looking fantastic for CLM and drilling begins in 3-4 weeks…lots of news prior to that, I’m sure, including early exploration updates…trading volume will pick up and we’ll see new highs in the SP over the summer…
Comment by Jon - BMR — June 20, 2019 @ 2:40 pm
Nice bounce on the v today, and nice to see some volume on most of these plays that have been a little quiet of late, let’s hope volume continues and gold keeps going, it’s good for everyone.
Comment by Laddy — June 20, 2019 @ 3:18 pm
Looks like a new uptrend has commenced going into month-end, Laddy…
Comment by Jon - BMR — June 20, 2019 @ 3:35 pm
And of course another excellent day for GGI. Have a feeling 2019 will be our best year yet.
Comment by murf — June 20, 2019 @ 3:55 pm
There is no doubt that nothing has a more positive effect on the venture exchange than the price of gold going up. Great to see.
Comment by Danny — June 20, 2019 @ 4:57 pm