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Gold has traded between $1,130 and $1,143 so far today…as of 9:50 am Pacific, bullion is down $4 an ounce at $1,134…Silver is up 38 cents at $15.64…Copper has added 2 pennies to $2.34…Crude Oil has jumped by more than $1 a barrel to $46.63 on reports that Russia has indicated it’s “ready” to meet other Crude producers to “discuss the market”…rest assured, Vladimir Putin will likely do everything in his power, whatever he deems necessary, to give Crude a boost…Oil and gas revenues, of course, are critical to Russia’s economy and Putin’s ability to carry out an aggressive strategy on the global stage during the final 15 months of the Obama presidency…the U.S. Dollar Index is up one-quarter of a point to 96.15 after falling as low as 95.50 this morning…

In response to their country’s stock market sell-off, Chinese investors may be returning to precious metals as a safe haven…retail sales of Gold and Silver in China during August rose 17.4% year-over-year, representing about $3.9 billion in sales…

Glencore, which has had a tough 2015 and really got hammered early last week before beginning to recover, surged again today on reports that the miner was (or is) in talks with a few parties including a Saudi Arabian sovereign wealth fund to sell a stake in its agricultural business with the aim of cutting its debt load…the firm, however, said it’s “not aware of any reasons for these price and volume movements” in a statement issued this morning…meanwhile, Ivan Glasenberg, the billionaire head of Glencore, said at a news conference in London today that Copper prices should rise as more companies cut back mine production (historically, Copper producers have shown to be quite astute at doing this)…Glasenberg said that inventories of the metal will decline and supplies will eventually tighten…Glencore has said it will close Copper mines in the Democratic Republic of Congo and Zambia that account for about 2% of global supply…

Canadian Energy Takeover

Calgary-based Suncor Energy Inc. (SU, TSX), Canada’s biggest energy company, has made an unsolicited offer to buy out Canadian Oil Sands Ltd. (COS, TSX) for about $4.3 billion, taking advantage of plunging Crude prices to add production in Alberta…Suncor is offering a 43% premium to Friday’s closing COS share price and promised higher dividends to Canadian Oil Sands shareholders if the proposal is accepted.  “This is a financially compelling opportunity for COS shareholders,” Steve Williams, Suncor’s President and CEO,  said in a statement this morning.  “We’re offering a significant premium to COS’ current market price and also providing exposure to a meaningful dividend increase.”

COS is up nearly $3 a share to $9.15 through the first 3+ hours of trading today while SU has dipped 83 cents to $34.54…

Crude Oil Update

Saudi Arabia yesterday made deep reductions to the prices it charges for its Oil, hard on the heels of cuts last month by rival producers in the Gulf…with U.S. production still increasing despite low Oil prices, OPEC members are still battling to keep their share of growing markets in Asia…in a list of official prices sent to customers, state-owned Saudi Aramco cut the price of its light Crude deliveries to Asia by $1.70 a barrel…as a result, it switched to a discount of $1.60 a barrel against the rival Dubai benchmark from a premium of 10 cents a barrel previously…the company also cut its prices for heavy Oil by $2 a barrel to the Far East and by 30 cents a barrel to the United States…the move came as Iran, Iraq and other countries in the Middle East made deeper cuts in their official prices than Saudi Arabia last month…

Russian Oil output rose to a post-Soviet record last month as producers continue to take advantage of the weak ruble to push ahead with drilling…

While there are certainly some supply issues regarding Oil at the moment, the demand side is clearly picking up with the global growth rate higher than at any point since 2010…according statistics collected by the Joint Organization Data Initiative (JODI), Oil demand rose 3.3% in the first half of 2015 compared to the same period in 2014…this data comes from 59 countries that together account for about 80% of the world’s Oil consumption and suggests that in 2015, demand will increase by an average of 1.65 million barrels per day…this figure is in line with the International Energy Agency’s (IEA) estimate that global Oil consumption this year will increase by 1.7 million barrels per day…the major share of the increase belongs to China, which reported a petroleum consumption growth of 1.3 million barrels per day, a more than 13% lift…the Chinese are Oil guzzlers…we love it…

Where Are All The “Environmentalists” & Canada’s Left-Wing Media On This One? 

Wow…if there’s a leak at a tailings pond, “environmentalists”, other “activists” and the left-wing media herd go on a stampede…but if you’re a city that’s dumping 8 billion liters of raw sewage into a river system, that’s perfectly okay…where are all the mining and pipeline haters on this one?????

Montreal officials are moving forward with a controversial plan to dump 8 billion liters of raw sewage into the St. Lawrence River…the sewage dump, which has come under some criticism, was temporarily put on hold so the city could study alternatives…but officials confirmed Friday that emptying a major sewer interceptor into the river is the only viable option that will allow necessary construction on the Bonaventure Expressway to be completed…officials have said the raw sewage will not affect drinking water, but residents are being asked to avoid coming in direct contact with the water on the southeast shores of the Island of Montreal and to avoid recreational activities like fishing during the dump…Environment Canada has said it cannot authorize the sewage dump, but stopped short of saying whether it has the power to stop the city from proceeding…

Today’s Equity Markets

Asia

Japan’s Nikkei reclaimed the 18000 level overnight as it added 280 points or 1.6% to close at 18005…China’s Shanghai remains closed for the extended National Day holiday…an extended national holiday…

Europe

European stocks were up strongly today, extending gains from Friday, after a weak U.S. employment report dampened expectations that the Fed will start raising interest rates soon…

North America

The Dow, coming off its biggest intra-day reversal in 4 years Friday, is up another 239 points as of 9:50 am Pacific…in Toronto, the TSX has climbed 196 points while the Venture is up 4 points at 530…

Biorem Inc. (BRM, TSX-V) Update

Biorem (BRM, TSX-V), one of our favorite non-resource opportunities and a profitable enterprise, announced this morning that it has received 3 new orders totaling $2.4 million…the orders are for air emission abatement projects in North America and China with anticipated delivery in early 2016…

“These recent orders support management’s strategy for market diversification,” said Derek Webb, BRM President and CEO.  “Facing the challenge of high-profile dense urban applications, customers are turning to Biorem to ensure they meet their compliance obligations. On one of the orders, Biorem is providing an advanced solution for an underground waste water treatment facility in China, while on another, we are providing a standard modular unit for a North American customer requiring a simple and cost-effective solution.

“These recent orders demonstrate our ability to compete in both the high-value and commodity segments of the global air emissions abatement market with our innovative product offerings. We continue to be excited at the opportunities being developed by Biorem across diverse geographical areas,” Webb concluded. 

BRM is up 3.5 cents at 50 cents as of 9:50 am Pacific…

Garibaldi Resources Corp. (GGI, TSX-V) Update

Garibaldi Resources (GGI, TSX-V), which is looking very powerful technically and fundamentally at the moment, has pushed above resistance on strong volume morning as accumulation begins ahead of what could be some very exciting near-term developments on the ground at Grizzly Central as reported by the company September 17…

A picture can tell a thousand words, so we urge our readers to look at the Google Earth map below and understand the importance of a fertile pluton, the Kaketsa “heat engine”, which appears to be intimately associated with the fascinating structures at Grizzly Central where a new grassroots drilling discovery in this part of the Sheslay Corridor is a distinct possibility in our view…

Technically, the turning point for GGI came in mid-August when it broke above a downtrend line in place since early in the year…we do exhaustive technical research at BMR, and this is one of the most potentially explosive individual charts we’ve come across on the Venture at the moment…

The breakout above the price and RSI(14) downtrend lines, the reversal to the upside in the 50-day SMA, the near-term reversal of the 100-day (not shown on this chart), the increasing buy pressure (CMF), and the potential for a near-term bullish +DI cross all suggest that indeed there could be “masked deposits” under the extensive overburden at Grizzly Central…the drill rig, the truth machine, will soon start providing some answers…

GGI is up 2 cents at 11 cents on volume of nearly half a million shares as of 9:50 am Pacific…

Equitas Resources (EQT, TSX-V) Update

Equitas Resources (EQT, TSX-V), which may have locked up some additional ground in the Garland Nickel camp according to government staking records viewed by our research team, is off 2 pennies at 18.5 cents as of 9:50 am Pacific after Friday’s major intra-day reversal when it broke above a pennant formation on a massive surge in volume…the interesting thing is the staking rush at Garland and completely surrounding EQT in advance of any drill results (EQT’s drilling at Garland started less than 2 weeks ago)…we can confirm this morning that there are now no contiguous/adjacent claim parcels available to be staked…all the more reason why investors should be taking a close look at Athabasca Nuclear Corp. (ASC, TSX-V) which has assembled a large land package around Equitas as the drill turns…

Athabasca Nuclear Corp. (ASC, TSX-V) Update

We noted recently how Athabasca Nuclear (ASC, TSX-V) has broken out above a long-term downtrend line, a very bullish development in the current junior resource climate…the 200-day SMA, currently 3 cents, is also now just beginning to turn to the upside, so a major reversal appears to be in its early stages here…it’s important to emphasize that ASC is not just a Garland “area play”, though its large land position there could nonetheless give the stock a substantial lift over the near-term depending on developments with Equitas…Athabasca is active on several Uranium and diamond projects, has a clean balance sheet and just under 52 million shares outstanding…President and CEO Ryan Kalt owns 25% of the stock, and the rest is believed to be mostly in retail hands (no major funds involved which is good)…

RSI(14) has pushed above the 50% level, so momentum is building…the lack of liquidity in this play at current levels can be viewed positively in the sense that existing shareholders see value here and very few of them are interested in selling at 3 or 4 cents…liquidity will improve as ASC attains a more reasonable valuation – that’s certainly what the chart is telling us…as always, perform your own due diligence…

ASC is off half a penny at 3.5 cents as of 9:50 am Pacific…

TSX 6-Year Weekly Chart

Below is an updated 6-year monthly chart for the TSX after Friday’s significant intra-day reversal…exceptional support around the 50% Fib. retracement level (12800) has held on the TSX through the turbulent last couple of months…this chart refutes the doomsayers’ prediction of a Q4 crash in the markets…

TSX Gold Index-Venture-Gold Comparative

An unusually large gap has opened between the price of Gold and the TSX Gold Index and the Venture…we see some “catching up” by both the Gold Index and the Venture before the year is out…

HGU (Horizons S&P/TSX Global Gold Bull Plus ETF)

The TSX Gold Index has a bullish tone to it at the moment, and the double-leveraged HGU appears to be in the process of a move that could take it to the top of the downsloping channel you see in this 2+ year weekly chart…the HGU is also now breaking out above its RSI(14) downtrend line, in place for most of the year, while the SS indicator is giving positive signals as well…Gold stocks are set for a run…

As of 9:50 am Pacific, the HGU is up 19 cents at $3.59…

Short-Term Silver Update

Silver continues to be volatile within a range between about $14 and $16…the band of Fib. resistance between $15.29 and $15.78 has proven to be very stubborn since early July, certainly due to the reality of a slowing global economy with Silver having a lot of industrial uses…

Silver’s immediate challenges are to overcome Fib. resistance at $15.29 and $15.79…RSI(14) continues to trend higher which is encouraging…

Silver Long-Term Chart

An explosive push higher (eventually) – is this actually a scenario that could unfold in Silver over the next couple of years?…quite possibly, given the look of this 34-year monthly chart, though at the moment it’s hard to understand all the factors that could come into play to generate the kind of “Wave 5” move that could develop…

Have we seen the  bottom of “Wave 4”?…that’s quite possible, but still too early to tell…encouragingly, RSI(14) has so far managed to hold support which goes back to 2001…

Sell pressure continues to remain very intense, however, as shown by the CMF – amazingly, at levels not seen in nearly 25 years since the low of $3.51…this intense sell pressure at the moment, which started modestly in early 2013, could continue for a while yet…this should be viewed in a larger context as a bullish contrarian indicator given historical patterns…it doesn’t necessarily mean, however, that Silver has found a bottom just yet…

Note:  John and Jon both hold share positions in GGI and EQT.  Jon also holds a share position in ASC.