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1. Gold has traded between $1,527 and the mid-$1,530’s so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,532…Silver has jumped 31 cents to $17.95, confirming a breakout above key resistance in the $17.20’s…the Gold-Silver ratio appears to have peaked, a bullish technical development for Silver which could be in the early stages of a new trend in which it outperforms Gold…Nickel is 4 cents higher at $7.18…Copper is flat at $2.56 while Zinc is up 2 pennies at $1.03…Crude Oil has added 43 cents a barrel to $54.07 while the U.S. Dollar Index has retreated more than one-tenth of a point to 97.93…Gold bugs are committing to their long positions, according to TD Securities, which projects a continued attractive environment for the yellow metal…“Despite the lack of acknowledgement of an imminent easing cycle ahead, the market continues to comfortably call the Fed’s bluff, with 60bps of cuts priced for this year and another 50bps priced for 2020, as the escalating trade war and deteriorating economic circumstances in Europe embolden the macro bears. With the ECB likely set to restart QE and push EU yields deeper into negative territory, U.S. rates remain relatively attractive which should continue to compress rates and keep the bid in Gold alive”…
2. U.S. consumers remain very confident, and they account for two-thirds of GDP: U.S. consumer confidence for August exceeded expectations with a reading of 135.1, well above the consensus estimate of 129.5…the August number was less than a point below July’s very strong reading which was upwardly adjusted to 135.8…“While other parts of the economy may show some weakening, consumers have remained confident and willing to spend,” stated Lynn Franco, the Conference Board’s senior director of economic indicators…meanwhile, the “present situation gauge” shows consumers in a very buoyant mood…that indicator rose to 177.2 from 170.9 – the highest reading in nearly 20 years…the mainstream media will ignore this as it doesn’t fit with their virulent anti-Trump narrative…
3. Seabridge Gold (SEA, TSX; SA, NYSE) has commenced drilling to target high-grade Gold mineralization at its KSM Project in the Eskay Camp…2 core rigs have been mobilized to complete 4,000 m of drilling in 16 shallow holes within the proposed pit of the Sulphurets deposit…Seabridge Chairman and CEO Rudi Fronk commented, “Our original plans for this year at KSM were focused on completing geophysical surveys to help refine the limits of the existing four porphyry deposits and look for a fifth. A concept to expand the 1,500 g/t intersection drilled last year grew out of these surveys and the target was too compelling to ignore. This new target is within the proposed Sulphurets pit plan, so if the program is successful, we will immediately capture new resources”…during 2018, waste characterization and geotechnical drilling of the proposed Sulphurets pit encountered high grade-Gold intersections in 3 holes including 2 m of 1,580 g/t Au (>50 oz/tonne) and 209 g/t Ag from 69 m to 71 m in S-18–81 (true width unknown)…some high-grade intersections were also encountered from previous drill campaigns in the same area…these intersections are clustered within a newly-identified northeast to southwest trending structure having at least 800 m of strike length…high-grade Gold in these intersections is associated with veins that contain chlorite, biotite and abundant pyrite and visible Gold…an IP survey conducted over this area has confirmed the structural trend while interpretation of the data continues…expectations are that this epithermal-style structure consists of anastomosing veins with abundant pyrite and localized zones of high-grade Gold…successful delineation of this target would have a positive impact on the Sulphurets resource since the pit block model currently classifies this area as waste…Westhaven Ventures (WHN, TSX-V) has just reported that it has discovered a 3rd vein zone at its Shovelnose Property near Merritt, intersecting 1.2 m @ 36.8 g/t Au and 259 g/t Ag within a broader interval of 7.1 m grading 9.4 g/t Au and 69.4 g/t Ag (370.09 m to 378 m)…true width is estimated at 80% to 90%…
4. The Dow has added 104 points through the first 30 minutes of trading…in Toronto, the TSX is 75 points higher while the Venture is up 1 point at 584…key resistance remains 600…GoGold Resources (GGD, TSX) is up a nickel at 61 cents in early trading as it charges toward a new 2-year high…GGD announced last week that it has entered into various agreements with private Mexican owners to accelerate the acquisition of the 29 concessions that comprise its promising Los Ricos Property…these agreements replace the option agreement GoGold had for the property, ultimately saving the company $5.4 million (U.S.)…GGD’s Paral Tailings Project also continues to advance nicely with back-to-back quarterly production records (451,000 Silver equivalent ounces in the 3-month period ended June 30)…Silvercorp Metals (SVM, TSX), which earned $17.3 million (U.S.) in its first fiscal quarter for 2020, is up 23 cents at $5.53 as it approaches its best levels in nearly 3 years…earlier this month, Silvercorp reported that Silver produced and sold up was up 27% in fiscal Q1 to approximately 1.9 million ounces…Silvercorp is a low-cost producer with multiple mines in China…Brixton Metals (BBB, TSX-V) has commenced a Phase 2 drill program at its Silver-rich NW B.C. Thorn Project…approximately 7,000 to 10,000 m of HQ and NQ size core drilling with 2 drills will be completed on 2 distinct porphyry targets within the Camp Creek Copper Corridor and the Chivas zone…geophysical surveys will also be carried out…the company has also staked an additional 862 sq. km of mineral claims for a new total mineral claim area of 1,858 sq. km of wholly-owned tenure – an exceptionally large land package…Brixton also recently completed 22 shallow holes at its Atlin Goldfields Project with assays pending…BBB is up a penny at 34 cents in early trading…Westhaven Ventures (WHN, TSX-V) has just reported that it has discovered a 3rd vein zone at its Shovelnose Property near Merritt, intersecting 1.2 m @ 36.8 g/t Au and 259 g/t Ag within a broader interval of 7.1 m grading 9.4 g/t Au and 69.4 g/t Ag (370.1 m to 378 m)…true width is estimated at 80% to 90%…
5. Benchmark Metals (BNCH, TSX-V) announced this morning that 11 holes have intersected significant widths of intense alteration and multi-phase veining across a 1-km strike length extension of the Cliff Creek resource area at its northern B.C. Lawyers Project…CEO John Williamson stated, “With our initial drilling results and reinterpretation of historical work, we have discovered a continuation of mineralization along strike from the established Cliff Creek resource area. In response, the Cliff Creek South drilling plan has been expanded from 3 holes to at least 9 holes for a total of approximately 2,400 m with the 5th hole currently under way. Drilling at step-outs of 50 to 100 m has expanded the CCS zone significantly. With historical and new drilling results showing mineralization right from surface, we are developing a large resource target. CCS mineralization remains open in all directions and offers an excellent opportunity to expand our Gold-Silver resources with high-grade and bulk-tonnage intercepts”…BNCH is up a penny at 36 cents as of 7:00 am Pacific...
6. Blue Moon Zinc (MOON, TSX-V) came to life this morning on news that the company has joint-ventured its Zinc-Gold-Silver-Copper-rich VMS project in Mariposa County to Australian-listed Platina Resources (PGM, ASX)…Platina will also participate in a $300,000 private placement in Blue Moon at 5 cents per share, a 100% premium to the previous day’s closing price…to earn an initial 50% interest in the project, Platina must make a cash or share payment to MOON of $250,000 and spend $3 million within 18 months which will include a minimum of 10,000 m of drilling…to boost its interest up to 70%, Platina must then fund the next $5 million in expenditures (including MOON’s share of funding) which will include the completion of a pre-feasibility study…Platina must also make another cash or share payment to MOON of $500,000…the Blue Moon mineral resource is a high-grade Zinc-Gold-Silver-Copper-rich massive sulphide deposit with mineralization open to surface, depth and along strike… it’s located just 150 km from an export port facility and 1 km from power sourced from hydroelectric generation…the project will also benefit from low corporate tax rates and minimal royalties…MOON’s last drill hole at the property, announced early this year, assayed 30.3% Zn, 1.7% Copper, 1.7 g/t Au and 71 g/t Ag over 9.35 m within a broader interval of 36.5 m that returned 9.5% Zn, 0.58% Cu, 1.1 g/t Au and 43 g/t Ag…the hole was drilled within a previously untested area of the Main and West Zones (~55% true width)…MOON is now actively searching for another project that could bring some sizzle into its market…rumor has it they are looking at areas within the Golden Triangle…
7. Successful opening day in China: Costco (COST, NASDAQ) was forced to shut its first store in China early on its first day today, according to state media, after large crowds flocked through the door and caused traffic jams in the Shanghai neighbohood…videos posted on Chinese social media showed thousands of people crowding the aisles of the store in Shanghai’s Minhang district, while signs outside warned incoming shoppers that they might have to wait 3 hours to park…Costco announced last month that it would open its first store in China…it entered the country in 2014 by opening an online store on Alibaba Groups‘ Tmall online marketplace…Costco’s busy first day came as other big-name Western retailers such as Amazon, Tesco and Carrefour are retreating from China, having struggled to win market share in the face of strong competition from domestic rivals…Costco, however, was careful to make sure Chinese consumers knew the brand…it also helps that Sam’s Club, another membership-based warehouse, has been in China for more than 20 years…quite simply, Chinese consumers are ready to pay for a membership card that grants them an exclusive privilege to buy at a warehouse store – it’s not a new concept in the country…in addition, one of Canada’s busiest Costco warehouses is in Richmond, on the outskirts of Vancouver, which has the highest proportion of immigrants in Canada – mostly ethnic Chinese…
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