Check back later this morning for today’s BMR Morning Market Musings.
1. Gold dipped as low as $1,207 overnight but firmed up modestly after the release of the U.S. jobs report for January which showed 227,000 jobs created vs. the consensus estimate of 170,000…however, hourly wages were muted and November’s employment report was revised down to 164,000 from the initial report of 204,000…as of 7:00 am Pacific, bullion is up slightly at $1,216…the Dollar Index pushed briefly above 100 but is now flat at 99.84…Oil prices are up on Trump sanctions against Iran announced moments ago, and that should help Gold today as well…
2. In other U.S. economic news just out, December factory orders rose 1.3% and the January read on the ISM non-manufacturing index came in at 56.5, slightly below December’s 56.6…
3. The Dow has added 111 points through the first 30 minutes of trading…in Toronto, the TSX is 14 points higher while the Venture has gained 2 points to 818 as it aims for its 4th straight winning session and 6th straight weekly advance…
4. The Cobalt sector is heating up and could be in for quite a quarter as the metal’s price continues to track higher and more retail investors familiarize themselves with this space…among the early Cobalt movers on the Venture this morning, CobalTech Mining (CSK, TSX-V), showing favorable chart patterns, is up 2 cents to 26 cents while Cruz Capital (CUZ, TSX-V), also with technical strength, has edged up half a penny to 19 cents…
5. Pretium Resources (PVG, TSX) announced this morning that it’s accelerating the commissioning of the Brucejack mine by 2–3 months…capital costs have increased 16% from the February 2016 estimate but economics remain robust…based on an updated forecast, internal rates of return and payback have improved marginally in comparison with the project economics from a year ago…base case post-tax NPV (5% discount) is $1.53 billion (U.S.) while post-tax IRR is 28.5%…PVG is off slightly at $14.21 as of 7:00 am Pacific…
6. 20 miles west of Brucejack, and 11 miles southwest of Eskay Creek in the “Heart of Gold Camp“, this high-grade Gold district’s first magmatic Nickel-Copper-rich massive sulphide system with PGE, Gold and Cobalt values have lifted Garibaldi Resources‘ (GGI, TSX-V) more than 40% this week to 17 cents in early trading today…GGI will soon be releasing a 3D geologic model for the E&L deposit at Nickel Mountain which shows high Nickel and Copper tenors of 4.8% to 8% Ni and 2.1% to 10.9% Cu in 100% sulphide…
7. MGX Minerals‘ (XMG, CSE), which we’ve been tracking since the beginning of the year, was halted briefly this morning for further details and clarification on its Lisbon Valley Petro Lithium Project acquisition in Utah announced yesterday… the stock has more than quadrupled so far this year to $2.13 and resumes trading at 7:30 am Pacific following the halt…
GGI – if they do not make some moves and push some concrete news releases than we will see the same thing that happened last year and it will head back down below 0.10. I am not buying until then. I prefer to buy higher than lose again.
Comment by Dennis — February 3, 2017 @ 8:08 am
DYG is up 1c(40%) today on 1M shares.
Comment by John - BMR — February 3, 2017 @ 8:53 am
CSR is taking off, breakout…another Cobalt play.
Comment by Jon - BMR — February 3, 2017 @ 9:10 am
Csr is the most compelling junior Cobalt stock imho.
A mine is already there and super high grade Silver and Cobalt!!
Comment by Tran — February 3, 2017 @ 9:17 am
Yes, CSR has a lot going for it, Tran, and still a very low market cap under $4 million…
Comment by Jon - BMR — February 3, 2017 @ 9:23 am
Physical gold purchases… what are the options?? just asking! thx all…
Comment by Jeremy — February 3, 2017 @ 9:24 am
You’re trapped in the past, Dennis…unfortunately you don’t get what’s going on with the E&L, and the urgency with which GGI is also giving it…do you not understand the significance of those tenors, the known massive sulphides and mineral assemblage, the sulphide source, the gravity highs, the Q anomaly, the extent of the mafic-ultramafic intrusion, the known deposit, the district, the recruiting of Voisey’s Bay experts such as Goldie and Makela, etc., etc.???…this is going to blow a lot of people away…this is the first magmatic Ni-Cu-rich massive sulphide deposit with PGE’s, Gold and Cobalt in the entire Golden Triangle…hello????? combine that with a major technical breakout on the stock…new thinking immediately required re: GGI…those trapped in the past are going to lose out big-time…no question about that whatsoever…
Comment by Jon - BMR — February 3, 2017 @ 9:25 am
Ditto on that Jon. Dennis the train is leaving the station in regards to GGI. Don’t miss out and kick yourself later.
Comment by pole — February 3, 2017 @ 9:31 am
Jon
just for fun what would be a realistic market cap for GGI if they hit massive sulfides and the E&L is another Voisey Bay type of Nickel deposit?..
Comment by greg — February 3, 2017 @ 9:40 am
Jon
another question re: GGI do you think the 3D model is going to get enough attention from Institutional investors that GGI will be able to do a finance at much higher prices than it is now, or do you there is someone or someone’s out there right now that may be talking to Regoci about financing and they want to keep the price down before they release the 3D model…
thanks
Comment by greg — February 3, 2017 @ 9:42 am
Just look at what Noront did, Greg, in Aug-Sep-Oct 2007…interestingly, NOT also picked that property up on the cheap earlier that year…
What makes the E&L even more compelling than Eagle’s Nest is the district setting—–geologically, of course, plus you have all the infrastructure there now…Brucejack opening up later this year, power, new roads, camps, etc…incredible what has occurred there in the last few years…..Noront’s problem has been the infrastructure side of things…
Also, glacial retreat…I suspect we’ll find out from GGI that there are multiple new areas around the E&L where things at surface could never be seen before that suddenly are now visible due to glacial retreat…..huge.
Comment by Jon - BMR — February 3, 2017 @ 9:46 am
Dennis
GGI is definitely ‘unloved,in an uptrend,and cheap’, looking forward to the potential of the ‘heart of gold’ camp. Will 2017 bring muti year highs? All time highs? Most of the buying seems to be from BMR subscribers, as no other nlw are covering the unfolding story.I expect that to change.
Comment by Dave2 — February 3, 2017 @ 9:51 am
Thanks Jon
in order for GGI to complete the 3D model would they have had to complete the VTEM survey?
Comment by greg — February 3, 2017 @ 9:58 am
Kambalda type deposits – associated with Fe. Have we seen samples with that yet? nothing in the news releases. Stve did say they had Coblat, but there were no #’s associated with that comment. After 20 cents, next SP target is a 3 yr high of 28 I think. Feb 10th perhaps?
Comment by david — February 3, 2017 @ 10:00 am
I pretty sure the sale is all but done with ggi, imo low 20’s will still be a bargain, hold, and hang on tight for the ride.
Comment by Laddy — February 3, 2017 @ 10:06 am
From Mining Markets article Sept 2008
The best of the bunch is Noront’s Eagle One copper-nickel-platinum group elements deposit, the discovery that touched off the staking rush last fall. An initial resource estimate for the find shows an indicated resource of 1.8 million tones grading 1.96% nickel and 1.18% copper and an inferred resource of 1.1 million tonnes. The resource includes a higher grade core of about 200,000 tonnes grading more than 6.5% nickel.
Obviously GGI does not have an Initial resource estimate but the tenors from 4.8% to 8% nickel and 2.1% to 10.9% copper seem to be on the high side from what I am finding in my research this morning, am I correct Jon? Don’t you want to see at least 3% nickel?
Comment by greg — February 3, 2017 @ 10:14 am
Hi Greg, nope…
Comment by Jon - BMR — February 3, 2017 @ 10:39 am
If you followed Noront in 2007 like Jon referenced you can see the significance of what is at E&L and the potential. If GGI is able to hit sulphites in the first couple holes anything under $1.00 is a steal. We’ll see who has the nerves to hold a position right to drill results. I know I will have enough skin left in the game to make drill results worth it 🙂
Comment by weatheritout — February 3, 2017 @ 10:43 am
David, a few things to clarify your confusion…first off…the Goldie comparison wasn’t between deposit types…it was pointing out how, after many decades of exploration and mining of Gold deposits, a Nickel camp at Kambalda was discovered within the Gold Camp…and there are multiple Nickel deposits there now…in the Heart of Gold Camp/Eskay Camp, the Kambalda experience is valuable because it shows how all of a sudden high-grade Nickel deposits can be found right next to high-grade Gold deposits…and you have a mafic-ultramafic component in the Heart of Gold Camp which can certainly support more than 1 Ni-Cu-rich massive sulphide deposit…note also how large the gravity highs are…35 km x 15 km and 65 km N-S…within that, there is a significant mafic-ultramafic component…
With regard to your Cobalt point, yes, there are Cobalt numbers (assays) associated with the E&L…check out the Nov. 10 news…Cobalt values comparable to Voisey’s Bay in the sampling of the massive sulphides at the top of Nickel Mountain…
Comment by Jon - BMR — February 3, 2017 @ 10:50 am
SP of CSR is about to go into the stratosphere, Cobalt grade
Of 5,6%!!
Comment by Tran — February 3, 2017 @ 11:08 am
GGI – possibly multiple Ni targets within the area and possibly found next to high-grade Gold along with the huge 35kmx15km gravity high that runs along the East side of E+L. Suggests that both MTS and ESK are worth accumulating since E+L is close (enough) to the property edge of both these juniors. Thx for the Co NR date
Comment by david — February 3, 2017 @ 12:18 pm