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1. Gold has traded between $1,487 and $1,496 so far today…as of 7:00 am Pacific, the yellow metal is up $5 an ounce at $1,492 as investors prepare for a Fed policy statement at 11:00 am Pacific followed by a Jerome Powell news conference…the Fed is widely expected to cut interest rates by another quarter point for the 3rd time since July, but it could also be a “hawkish” cut if they simultaneously announce a pause in this “mid-cycle adjustment”…markets (and President Trump) will be intensely focused on learning what Powell’s next moves are…Silver is up a penny at $17.79 after climbing as high as $18.04…Gold and Silver prices backed off slightly after U.S. Q3 GDP came in modestly better than expected…Nickel is 2 cents higher at $7.65…Copper is unchanged at $2.67 while Zinc is off a penny at $1.16…Cobalt remains steady at $16.10…Crude Oil has slipped 30 cents to $55.24 while the U.S. Dollar Index is flat at 97.69 ahead of today’s Fed decision…U.S. GDP grew faster than expected in the 3rd quarter, but slowed slightly from Q2 as business investment continued to decline…the Commerce Department said this morning that economic activity grew at an annualized rate of 1.9% in Q3, down fractionally from the 2% pace in the 2nd quarter…economists polled by Dow Jones had expected the first look at U.S. economic growth in the 3rd quarter to come in at a 1.6% rate…the better-than-expected print was the result of continued consumer spending as well as government expenditures…personal consumption expenditures, a gauge of spending by American households, rose at a 2.9% annualized rate while government spending grew at a 2% clip…

2. U.S. private payrolls grew at a faster-than-expected pace in October, but the solid growth was offset by a sharp downward revision for the previous month…companies hired 125,000 employees in October, according to ADP and Moody’s Analytics in data released this morning…economists polled by Dow Jones were expecting an increase of 100,000 payrolls…growth was led by the services sector which added 138,000 jobs…however, payrolls in goods-production businesses decreased by 13,000 in October (lowering net gains to 125,000) while September payrolls were revised down by 42,000 or 31% to 93,000…“Job growth has throttled way back over the past year,” stated Mark Zandi, chief economist at Moody’s Analytics…“The job slowdown is most pronounced at manufacturers and small companies.  If hiring weakens any further, unemployment will begin to rise”…all the more reason, it seems, for the Fed to remain accommodative, especially considering there is no inflation threat at this late style of the economic cycle…the Labor Department reports the closely-watched non-farm payrolls Friday…

3. Wesdome Gold Mines (WDO, TSX) is up strongly in early trading after reporting impressive high-grade intercepts from underground drilling at its wholly-owned Eagle River mine in Wawa, Ontario as the company continues to develop the 303 lens that was initially discovered in 2015…this lens is showing good continuity of Gold mineralization up plunge and down plunge with consistent high grades and widths as a result of local folding…the 303 lens, initially defined from the 750-m level to the 1,000-m level, has now been extended an additional 300 m down plunge to the 1,300-m level, while continuing to demonstrate above-average widths and grades…highlights of recent drilling released this morning include 92.8 g/t Au over 11.1 m (37.2 g/t cut over 6.4 true width) in hole 925-E-104; 70 g/t Au over 11.5 m (48.1 g/t cut over 7.4 m true width) in hole 925-E-106; and 72.2 g/t Au over 10.8 m (42.8 g/t cut over 5.4 m true width)…assays were cut to 140 g/t Au…President and CEO Duncan Middlemiss stated, “We are pleased with our ongoing exploration efforts at the Eagle River mine, in particular the continued expansion of the high-grade 303 lens that has provided above average reserve grades over 2019 and planned into 2020.  This additional expansion of the 303 lens, an additional 300 m down plunge, provides an opportunity to mine these high grades well into the future with additional mine development.  We expect to include the results into the existing resource and reserves base at year-end.  Elsewhere, we are continuing to aggressively explore the Eagle River deposit with 5 underground rigs and 1 surface drill rig to extend the known 7 East and 311 West zones that are proximal to existing development and infrastructure and testing for parallel zones of mineralization in the eastern portion of the mine diorite.  And, on surface, we continue to test the recently discovered Falcon zones where there exists good potential to define higher grade and wider zones of Gold mineralization that would be near mine infrastructure”…WDO has climbed 40 cents to $7.51 through the first 30 minutes of trading…

4. The Dow is off slightly as of 7:00 am Pacific…so far, the corporate earnings season has been better than most pundits feared…of the S&P 500 companies that have reported, 74% have posted better-than-expected earnings, according to FactSet data…the S&P touched a new all-time high intra-day yesterday but failed to close higher amid mixed quarterly results and trade news…in Toronto, the TSX has retreated 22 points while the Venture has rebounded 1 point to 539…for the first time in 20 years, the Fed and the Bank of Canada will be announcing policy decisions on the same day…if the Fed cuts, it will have a lower rate range than Canada for the first time in 3 years…that would make the Canadian rate the highest not only in the G7 but across the industrialized world, according to Bloomberg…Pretium Resources (PVG, TSX) will be releasing Q3 quarterly financials following the close today…the company has posted 8 consecutive quarters of positive adjusted earnings…Q2 net earnings were $10.4 million (U.S.) or 6 cents per share on production at Brucejack of 90,761 ounces and total revenue of $113.2 million (U.S.)…Skeena Resources (SKE, TSX-V) has hit a new 2019 high of 57 cents in early trading…Pan American Silver (PAAS, TSX, NASDAQ) has cut 253 m grading 67 g/t Ag, 3.8% Pb and 3.6% Zn at its La Colorada skarn discovery in Mexico…Azimut Exploration (AZM, TSX-V) is building on yesterday’s sudden gains, up another 2 pennies at 44 cents…the Quebec explorer shot up 10 cents or 31% yesterday on record single-day volume of 1.1 million shares with no news, though the company reported more high-grade sampling results a week ago from the discovery of a 5.2-km-long mineralized boulder field spatially associated with mineralized outcrops at its 359 sq. km Pikwa Property…an additional 78 samples are pending…on the non-resource front, Antibe Therapeutics (ATE, TSX-V) has hit its best levels since early 2018, up 2 pennies at 52 cents…Bee Vectoring Technologies (BEE, TSX-V) has been creating a buzz recently…this morning the company announced that it has been granted a further favorable decision by the EPA in the United States – a new residue tolerance exemption for its registered active ingredient CR-7…tolerance exempted products such as CR-7 give growers an economic benefit by allowing them to capture greater value for their crop and/or by reducing the risk of an unplanned rejection with the U.S. government…if you’re not familiar with the story, BEE has created a way for bees to deliver a bacterial fungicide to blueberry, sunflower and other crops to help protect them from disease in a method it says is cheaper and more environmentally friendly (the company sets up bumble or honey bee hives on farms and installs special trays filled with Vectorite inside that the bees must walk through, picking up the powder on their feet, before flying away to pollinate nearby crops)…in August the EPA certified BEE’s proprietary ingredient and the company now plans to start selling the system to American farmers and expedite its push for approvals in other countries, including Canada…BEE is buzzing at 36 cents, up 3 pennies, as of 7:00 am Pacific…

5. U.S. agriculture officials said yesterday that a rule that allows farmers to legally grow hemp will be finalized this week, a move that many states have awaited for months so they can begin widespread hemp production…the rule is set to be published tomorrow and effective immediately…it establishes requirements for licensing, maintaining records on the land where hemp will be grown, testing the levels of THC – the active ingredient in marijuana that causes a high – and disposing plants that don’t meet the requirements…in addition, a national hemp-growing program that Congress authorized in the 2018 farm bill will be launched by the rule (the 2018 law removed industrial hemp from the list of illegal drugs and required the USDA to set up a national hemp growing program)…at least 47 states have passed laws to establish hemp production programs, according to the National Conference of State Legislatures… exceptions include South Dakota, Idaho and Mississippi…hemp and marijuana are both cannabis plants but have different levels of THC…industrial hemp can be used in food, fiber, paper, beauty products and other products, and the industry estimates it could grow nationally to be a $1.9 billion market by 2022…

6. Whether climate change alarmists like it or not, all studies point to a growing global demand for Oil over the next 2 decades – Canadians will decide whether they want to reap the full benefits of that or not, but what nation would not want to generate more wealth? (especially to pay for essential services, let alone all the extras that “progressives” want to distribute?)…”Oil Demand Deniers” have it wrong…the Canadian Association of Petroleum Producers’ most recent annual forecast projects the domestic Oil industry will produce 5.86 million barrels of Oil per day in 2035, up from 4.6 million bpd in 2018 (we should be able to do a lot better than that)…that’s a more modest projection than the federal government’s “Canada Energy Regulator” (CER) which estimated Canadian Oil production would reach 6.9 million bpd in 2040 in its base case, and it could rise to 9.1 million bpd in a scenario where Oil prices climb higher than expected…right now, and this is the crux of the problem in Canada, the Oil industry produces more than can fit into its pipeline network…the most recent data from the CER shows that 310,000 barrels of Oil per day were exported from Canada on railway cars in August, the last month for which data is available…the great irony is that the climate change alarmists, opposing new pipelines on the premise that they will only contribute to the “destruction of the planet”, are themselves contributing to environmental problems given the fact that pipelines have proven to be easier on the environment than Oil by rail (some studies have shown that transporting large volumes of Crude over long distances creates >50% more greenhouse gas emissions than Oil carried via pipeline)…

7. Another example of why it is so difficult in Canada now to get any big projects done:  A Manitoba Indigenous community is taking the province to court over a $453-million power transmission project it says it wasn’t properly consulted on before construction started this past summer…the Sagkeeng First Nation is to argue in Winnipeg Court of Queen’s Bench today for a judicial review of the province’s decision to give Manitoba Hydro a licence to build a 213-km, 500-kilovolt line to Minnesota…“When our ancestors signed the treaties, they agreed to share their land, not give it away,” Chief Derrick Henderson said in a news release…“Manitoba and Hydro need to learn that they have to treat our people with respect.  It is not respectful for Manitoba to treat First Nations as a nuisance to be disposed of in a sham consultation process”…the transmission line received approval from Natural Resources Canada in June but was subject to 64 Manitoba licence conditions and another 28 from the National Energy Board…the conditions included ongoing participation for Indigenous groups…the First Nation’s lawyer, Corey Shefman, said construction should stop until the province meets its duty to consult First Nations which will be affected…the project should also go through the environmental approval process again, he said…“You skipped some steps, Manitoba. You need to rewind this and go back to the part where you are consulting and accommodating Sagkeeng and the other First Nations,” Shefman said…“Then you can make your licensing decision”…construction began in August and the line is expected to be operating by June of next year…the province has said the line will displace more than 1.5 megatonnes of carbon emissions by removing the need for Coal south of the border…

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