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1. Gold has traded between $1,572 and $1,578 so far today…as of 7:00 am Pacific the yellow metal is up $7 an ounce at $1,573…Silver has jumped 21 cents to $17.66…Palladium has added $5 an ounce to $2,305 as it continues to trade within a bullish symmetrical triangle on the short-term chart…action this week suggests Palladium could be nearing another major breakout…base metals are up slightly with Copper, Nickel and Zinc at $2.61, $5.96 and 98 cents, respectively…the U.S. Dollar Index is relatively flat at 98.99 while Crude Oil has gained 55 cents to $51.72…global Oil demand is now expected to see its first quarterly contraction in over a decade, according to the International Energy Agency (IEA), as the coronavirus and widespread shutdown of China’s economy hits demand…in a news conference today, China said it confirmed 15,152 new coronavirus cases and 254 additional deaths…those figures include the ones reported earlier by Hubei province under its new diagnosis methodology…previously, infections were only allowed to be confirmed with nucleic acid tests, which can take days to process, but Hubei province is now using CT scans which can diagnose the virus more quickly…the epidemic will hit China’s auto sales and production hard over the short-term, according to the China Association of Automobile Manufacturers…preliminary data for January shows vehicle sales tumbled 18% while sales of battery electric and other so-called new energy vehicles plunged 54.4%, down for a 7th month in a row…meanwhile, Canada is not without its share of problems these days…thousands of Alexandria Ocasio-Cortez’s have been mobilized across the country by the aboriginal extremist Wet’suwet’en “hereditary chiefs” and far-left foreign-funded affiliates who are determined to disrupt infrastructure, the resource sector and the broader economy as much as possible…in B.C., one of multiple provinces affected, rail shipments of perishable food, chlorine for water treatment and raw materials for manufacturers have been halted…unfortunately, this comes at a time when there is a huge vacuum of political leadership in Canada, particularly at the federal level…an extremist minority voice is being allowed to declare that it is the only true voice, and it’s ignoring court orders and using blockades to prevent companies from going about their lawful business…capital is going to increasingly flow to the United States if this craziness in Canada is allowed to continue…the unelected, unaccountable, foreign funded, anarchist and anti-capitalist “hereditary chiefs” are also undermining legitimate, moderate and entrepreneurial First Nation groups across the country who want to lift their people out of poverty…what’s happening here is a national disgrace…

2. The Palladium market was in a supply/demand deficit of more than 1 million ounces in 2019, and the shortage is expected to be even worse in 2020, according to Johnson Matthey in a report issued yesterday…analysts generally have cited strong auto-catalyst demand that is causing a continuing wide supply deficit…“The Palladium market deficit widened to over 1 million ounces in 2019, as combined primary and secondary supplies grew only modestly, while auto-catalyst demand surged higher on the back of new (emissions) legislation in China and more stringent testing regimes in Europe,” Johnson Matthey noted…the company said that average Palladium loadings rose by 14% in gasoline-powered cars…this drove automotive demand for Palladium to a record high of 9.7 million ounces, despite lower auto production in most regional car markets…all forms of Palladium demand amounted to 11.5 million ounces in 2019, up from 10.2 million in 2018, Johnson Matthey said…mine production eased to 6.89 million ounces from 7 million, hurt by lower shipments from Russia…however, recycling climbed to 3.42 million ounces from 3.12 million…investment demand remained negative, although the pace of liquidations slowed considerably from the previous several years…some 700,000 ounces of Palladium were in ETF vaults at the start of 2019, down from a peak of nearly 3 million in 2015…by August, the total fell to 590,000 before some moderate ETF buying in the final quarter of 2019, leaving them at around 660,000 ounces at the end of the year…imagine if ETF buying were to accelerate…“The Palladium deficit is likely to deepen in 2020, as an increasing number of Chinese and European vehicles meet China 6 and Euro 6d legislation, respectively,” Johnson Matthey added…“This is expected to drive up global average loadings on gasoline catalysts and could lift world automotive demand above 10 million ounces”…

3.  Another reason for Gold to continue to track higher:  The sea of red ink is getting deeper and deeper in Washington, with the federal government already racking up a budget deficit that is averaging close to $100 billion a month…Treasury Department data released yesterday showed the shortfall at $389.2 billion in the first 4 months of fiscal 2020…that’s a 25% gain over the same period last year and already about 40% of the total deficit for fiscal 2019-2020…over the past 12 months, the government has spent $1.06 trillion more than it has taken in…all the red ink has bought the total national debt to $23.3 trillion…receipts actually are on the rise comparatively, coming in at $1.18 trillion through January compared with $1.1 trillion a year earlier…however, the rate of spending is adding to the shortfall, with outlays coming in at $1.57 trillion vs. $1.42 trillion for the first 4 months of fiscal 2019…that’s a 9.6% spending increase…

4. As young adults from Generation Z start to carve out their career paths, they should not overlook the mining industry…there are 79,680 positions that will need to be filled in the mining field in Canada over the next decade, according to The Mining Association of Canada recently released annual report…a retirement wave is coming to the mining sector in the next decade which will see 25% of the industry’s current workforce retire by the year 2030, which represents around 57,000 positions…“The mining industry, both in Canada and abroad, faces a number of human resources challenges.  The 2020 edition of the Canadian Mining Labour Market Outlook estimates that the Canadian mining industry will need to hire 79,680 new workers over the next decade to 2030.  These new hires are required to replace retirees and fill new positions to meet baseline production targets”…on top of the retirement problem, the Canadian mining industry is facing an increasing brain drain when it comes to skilled workers…“Companies in other countries are actively recruiting Canadian graduates and workers, making retention challenging and recruitment highly competitive,” the report pointed out…

5. This should come as no surprise:  Two Wet’suwet’en “hereditary chiefs” are suing Ottawa in a bid to force the federal government to take action on climate change…if the claim filed in federal court this week by these 2 “hereditary chiefs” of the Likhts’amisyu Clan succeeds, Ottawa would be forced to revisit the approval of projects such as the $6 billion, 670-km Coastal GasLink pipeline, if they prevent Canada from meeting international commitments to lower greenhouse gas levels…”What the Likhts’amisyu are saying to the federal government is that you’ve talked the talk, now it’s time to walk the walk,” said Richard Overstall, the lawyer for the chiefs…“And allowing these high greenhouse gas emitting projects to continue for 40 years isn’t walking the walk”…the lawsuit describes global warming as an “existential threat” that has specific impact on the “rights” of the Wet’suwet’en as guaranteed under Section 7 of Canada’s Charter of Rights and Freedoms – the right to life, liberty and security of the person (of course these are the same aboriginal extremists and anarchists who refuse to abide by court orders and do not respect the laws of the country)…the chiefs want a declaration from the Supreme Court that the Crown has a constitutional duty to act to keep global warming between 1.5 C and 2 C above pre-industrial levels…they also want a declaration that Canada has an obligation to meet those targets under a section of the Constitution that requires government to maintain “peace, order and good government”…and they’re seeking a requirement for Ottawa to prepare “a complete, independent and timely annual account of Canada’s cumulative greenhouse gas emissions” with the ability to cancel approval for projects that threaten climate goals…

6. In their own words:  Who are these individuals supporting the Wet’suwet’en “hereditary chiefs?…a typical example is 24 year-old Simran Dhunna of Climate Justice Toronto, profiled in a story by the left-leaning Toronto Star:  “We’re a youth-led group of young people who are uniting in solidarity with Indigenous folks who are on the front lines of the climate crisis.  We really believe that we’re going to be able to only stop the climate crisis when we confront its root causes: colonialism, white supremacy and capitalism (our emphasis).  A lot of our membership and youth around the city and country know that the struggle for Indigenous sovereignty is the struggle for climate action.  That’s part of the reason I was one of the people who was involved in a nearly 24-hour occupation of Carolyn Bennett’s office this Monday, rallying with others outside.  We occupied for 3 key reasons.  We want the Canadian government to implement UNDRIP and to respect Wet’suwet’en’s rights to free prior informed consent, which Coastal GasLink had never obtained.  We want the RCMP to stand down, to leave Wet’suwet’en land immediately, and to not arrest land defenders or searching through the Unist’ot’en’s healing centre.  This movement is taking the lead from Wet’suwet’en nation.  The Unist’ot’en camp has released a supporter tool kit (our emphasis).   And so climate activists and community groups have taken that toolkit and organized their own non-violent direct actions around the country.  For as long as there is an RCMP presence and for as long as the government and Coastal GasLink try to gain access to Wet’suwet’en land without consent, we will continue to take non-violent direct action and disrupt business as usual.  The government says that they’re climate leaders, say that they’re about reconciliation,  What we’re really seeing is inaction and hypocrisy on part of the government at the provincial and federal level”…

7. The Dow has fallen 154 points through the first 30 minutes of trading…Tesla (TSLA, NASDAQ) is under further pressure this morning after Elon Musk’s automaker announced plans to raise $2 billion in a stock offering through underwriters Goldman Sachs and Morgan Stanley…Tesla says it plans to use the proceeds from the offering “to further strengthen its balance sheet, as well as for general corporate purposes”…in Toronto, the TSX is down 31 points, with the Gold Index bucking the trend with a 3-point gain to 261…the Venture is 1 point lower at 570 at the top of a strong support band…Amex Exploration (AMX, TSX-V) has drilled a whopper of a hole – 29.4 g/t Au over 8.5 m (hole PE-20–137) at its 100%-owned Perron Property near Rouyn-Noranda…this result is a major breakthrough as it opens up a whole new area of exploration in the Eastern Gold zone and is reminiscent of similar Abitibi Gold mines that have significant depth potential…PE-20–137 extends the Gold mineralization at depth by 150 m as well as along strike by 75 m…it’s also to the east of a late-stage diabase dike as shown in an image on the company’s website…the intercept was from 631.5 m to 640 m (true width estimated at 45% to 75%) and shows exceptional grade continuity over the composite interval including 60.5 g/t over 0.70 m, 11.7 g/t over 1.00 m, 48.7 g/t over 0.60 m, 50.3 g/t over 0.50 m and 279.7 g/t over 0.50 m…AMX is breaking out to new all-time highs, up 27 cents at $1.82 as of 7:00 am Pacific…Eric Sprott is a major investor in AMX and will cheer these results…Great Bear Resources (GBR, TSX-V) has cut 10.6 g/t Au over 21 m in fresh results released this morning from its Dixie Project in the Red Lake District…the company has completed a successful “first pass” 4.2 km drill test of the LP Fault…all 59 drill holes on 50 to 250-m spacings successfully intersected Gold mineralization…a continuously mineralized zone is now interpreted (the “LP Fault zone”) which remains open both along strike and at depth…Balmoral Resources‘ (BAR, TSX) has commenced its 2020 winter drill program targeting several known Gold-bearing zones along the Area 51 system at its wholly-owned Fenelon Property…drilling is anticipated to continue through to spring break-up in April with a minimum of 5,000 m planned during the current phase of the program…Balmoral’s current 2020 exploration plan calls for a minimum of 20,000 m of drilling, focused almost exclusively on Gold targets on the Detour Gold Trend Project, which will be completed in 2 phases…Galway Metals (GWM, TSX-V) has cut 6.3 g/t Au over 30 m in the George Murphy zone (GMZ) at its Clarence Stream Project in southwestern New Brunswick…Sixth Wave Innovations (SIXW, CSE), which made its debut on the CSE earlier this week, has a major partner to crow about – the company announced this morning that Sumitomo Corporation of Americas is acting as sales representative for its IXOS^®-Au product line…Sumitomo will introduce and promote IXOS^® to its extensive customer base in the Gold mining industry and receive a 5% commission on applicable sales…Sumitomo completed a rigorous analysis and assessment of Sixth Wave’s disruptive IXOS^® molecular imprinted nanotechnology used for Gold extraction, and is also interested in future Sixth Wave technological advancements for the extraction of other metals and contaminants associated with mining activities…SIXW raised nearly $14 million at 75 cents with no warrants…

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