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December 10, 2015

BMR Morning Market Musings…

Gold has traded between $1,069 and $1,077 so far today…as of 9:45 am Pacific, bullion is down $2 an ounce at $1,071…Silver is off a nickel at $14.09…Copper is flat at $2.09…Crude Oil is off 38 cents at $36.78 while the U.S. Dollar Index has added half a point to 97.88

Gold may be trapped in a volatile range with edgy two-way trading until the conclusion of next week’s meeting of the Federal Open Market Committee, according to HSBC…the Gold market and the broader financial markets expect a rate hike, but Fed Chair Janet Yellen’s language around that hike will be key…Fed-funds futures show an 80% chance that policymakers will raise rates next week…

Holdings in global Gold-backed exchange-traded products rose 0.2 metric tons to 1,465.4 tons as of Tuesday, data compiled by Bloomberg show…that was the first increase since November 17 and up from the lowest in more than 6 years…

Strong Chinese auto sales bode well for platinum group metals even if they are not rising in the short term, according to Commerzbank…analysts cite data from the China Association of Automobile Manufacturers showing that around 2.2 million cars were sold in the country during November, a record level…

OPEC reported today that its total production rose in November by 230,100 barrels a day from the previous month, to 31.695 million barrels a day – the organization’s highest output level since the spring of 2012…last week, the divided group decided to abandon its output ceiling as Saudi Arabia in particular attempts to increase market share…

Oil is among the markets that have become “completely unhinged”,  according to Allianz Chief Economic Adviser Mohamed El-Erian who was interviewed on CNBC’s “Squawk Box” this morning…he added that such moves can lead to “unpredictable correlations…when you get an unhinged market, good names get hit quite hard, and unjustifiably so,” he stated…

In today’s Morning Musings

1.  “Golden opportunity” in Gold stocks…report from Morningstar plus long-term TSX Gold Index chart…

2.  Updated charts for EQT, CDB and GSV

3.  With more than $30 million in its bank account, and a very promising joint venture with a major, Reservoir Minerals (RMC, TSX-V) is poised for a strong 2016

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

39 Comments

  1. CRS starting to move

    Comment by kelly — December 10, 2015 @ 10:14 am

  2. I’m hearing CRS is going to be a very strong well.

    Comment by dave — December 10, 2015 @ 11:14 am

  3. Jon – your right. ABR might be onto something, I just don’t like that CEO. I have dealt with so many of his companies in the past. that’s just me though.

    Comment by dave — December 10, 2015 @ 11:17 am

  4. GBB – making IR calls to stoke that puppy, hoping to see shovels in the ground in Jan

    Comment by david — December 10, 2015 @ 11:26 am

  5. Anyone have thoughts on today’s news from NEV?

    Comment by LAJ — December 10, 2015 @ 1:41 pm

  6. NEV – how are they going to do Clayton different that Bharti did with Rodina? rodinialithium.com/news/index.php?&content_id=64

    Comment by david — December 10, 2015 @ 2:15 pm

  7. NEV – how are they going to do Clayton different than Bharti did with Rodina? rodinialithium.com/news/index.php?&content_id=64

    Comment by david — December 10, 2015 @ 2:15 pm

  8. ABR – Not only you Dave. See my post on the previous musings.

    Comment by Dan1 — December 10, 2015 @ 2:16 pm

  9. Rarely do this , but here’s a heads up. CYP a stock I
    hold, halted today, pending news. News not yet released,
    but their website shows maps of newly acquired Lithium claims
    in Nevada, close to Silver Peak Lithium Mine. Tomorrow could be
    very interesting!

    Comment by Bob — December 10, 2015 @ 2:21 pm

  10. NEV – RM spent almost $3MM on that property and dropped in 2012. I cant remember all the details, but I do remember, a company slime I knew personally, talking about how the plant next door was old and in need of replacement, the first few holes RM drilled were screwed up since they didn’t know how to do it and there was talk regarding the water and whether there was a ‘wall’ between the two props. But this is going back a few yrs , so don’t treat as gospel (except the part about the slime that was working for RM !)

    Comment by david — December 10, 2015 @ 2:27 pm

  11. Well Bob, don’t hesitate to do it more if you think it might be good. that’s what we are here for, to try and make money. Thank you for bringing CYP up, low shares out and low market cap. Whew hew, lets hope news is good.

    Comment by dave — December 10, 2015 @ 2:43 pm

  12. Dan – from your post #8, ditto. I’ve seen enough red from that guy to fill a cherry farm.

    Comment by dave — December 10, 2015 @ 2:50 pm

  13. Dave – glad to bring it to your att’n. Don’t know about the deal as yet,
    until news, but their location close to the only operating lithium mine in
    the US has my att’n. Their geo. Marvin, has a lot of Nevada experience. They
    will likely need to raise some exploration $, but with lithium being the commodity
    in play, it should not be an issue. I now have 2 NRs to be delivered EQT, CYP.

    Comment by Bob — December 10, 2015 @ 3:17 pm

  14. DBV- Farshad bought on the open market last week. Although the amount isn’t a lot this is definitely a very good sign as I don’t remember seeing him buy on open market before in the last couple of years! Plus, the timing is interesting. If he buys more and on a regular basis this will be a reassuring sign of his confidence in his team and the property!

    Comment by DDD4 — December 10, 2015 @ 3:50 pm

  15. Bob – your already in CYP.

    EQT – get ready to buy or sell. I’m thinking buy, but ya never know.

    Comment by dave — December 10, 2015 @ 4:04 pm

  16. Ggi update….

    Comment by Tombc — December 10, 2015 @ 4:17 pm

  17. No comment on hole 5, drill orientation on the maps

    Comment by Martin — December 10, 2015 @ 4:58 pm

  18. Result new will include first three hole.

    Comment by Martin — December 10, 2015 @ 5:12 pm

  19. GGI – encouraging update. Assays out soon. Winterized camp. Drilling to start up in Mexico.

    Comment by George — December 10, 2015 @ 5:18 pm

  20. Some very intetesting new language here: “Kaketsa Corridor”, “unique”, “broad”, “mineralization styles”.

    I’m reading between the lines here and this is even better than I first thought in terms of what’s unfolding at Grizzly Central, plus Rodadero of course. Two programs at once.

    Comment by Jon - BMR — December 10, 2015 @ 5:29 pm

  21. GGI – distance between first 5 holes = 1.2 km. Nice size to start. Also like “array of mineralization styles”…evident in the drill core to date.

    Comment by Foz1971 — December 10, 2015 @ 5:52 pm

  22. ABR- last 2 PRs makes it look like ABR might have something interesting but its not moving for a reason. I’m also not a fan of ABR’s CEO due his other ventures so I’m not touching it no matter how interesting the story gets. Someone mentioned how the CEO sold before prior to results…..well he did it again as he sold some shares on the open market last week while they’re working on the property!

    Comment by DDD4 — December 10, 2015 @ 7:55 pm

  23. We’ve been critical of Mike England before as well, DDD4, but…I’m delighted to see that he’s drilling as that’s a major accomplishment for any company these days, especially one that was trading at a penny…usually, England does the area play thing…this time, he’s drilling a very legitimate property and getting some really interesting early indications, so good for him…I hope he hits it big…did he sell some stock recently? Probably, either to participate in the financing, or pay his drillers…the stock has doubled in a week but a lot of volume is needed here to clean up the market…it’s not a tight float, and a lot of traders are playing for a penny or half a penny…if he pulls a big hole, watch out…nothing would be better for the market than a 1-cent stock that becomes a success story…if Ashburton can make it, any company can…

    Comment by Jon - BMR — December 10, 2015 @ 8:08 pm

  24. Hi Jon,
    I wonder if you are still planning a site visit at the GGI Grizzly property in the Shestlay Valley ?

    Comment by Sylvain — December 10, 2015 @ 8:15 pm

  25. Yes, Sylvain, may camp out there to ring in the New Year.

    Comment by Jon - BMR — December 10, 2015 @ 8:36 pm

  26. This is the big news from Mexico we’re gonna drill some more?

    Comment by Ivan — December 10, 2015 @ 8:50 pm

  27. Thank you for the answer Jon, can’t wait to have details and news coming from this site visit!

    Comment by Sylvain — December 10, 2015 @ 8:58 pm

  28. There’s probably even more coming from Mexico, Ivan, given Regoci’s hints in the news and our recent interview, but starting a new drill program at Rodadero – concurrently with the Grizzly program – is very significant, given the shallow high grade Silver/Gold that has been found over a large area at Rodadero, through drilling and sampling…clearly has the potential to become a new mineral camp. Central Sonora is prolific – the Saudi Arabia of Lithium (BCN’s project) is just 30 miles NE of Rodadero, and of course there are producing Gold/Silver mines in all directions from Rodadero.

    Comment by Jon - BMR — December 10, 2015 @ 9:15 pm

  29. Great day for ABR. Also take a look at IGO, over 6mil in cash and trading at a 2.5m market cap.

    Comment by Jason — December 10, 2015 @ 9:48 pm

  30. ABR – Mike England strikes me as a sleazeball orchestrator of self-enrichment schemes.

    “Mr. Michael B. England is Chief Executive Officer Director of the Company. He is Selfemployed investor relations consultant since January 1995 President England Communications Ltd. since February 2009 President CEO and Director of Geo Minerals Ltd. from September 2005 to December 2011 Director President and CEO of GeoNovus Minerals Corporationration since October 2011 Director of Alston Ventures Inc. from November 2007 to July 2012 President CEO and Director of Alix Resources Corporationration since June 2007 Director of Kent Exploration Inc. from October 2007 to March 2012 Director of Caribou King Resources Ltd. since Sept. 2009 and CEO since February 2011 Director CEO and President of Ashburton Ventures Inc. since January 2007 December 2008 and September 2009 respectively Director of Zone Resources Inc. from May 2008 to April 2011 Director of Abbastar Resources Corporationration from April 2009 to April 2010 Director of BTU Capital Corporationration since April 2009 Director of Aintree Resources Corporationration since October 2009 Director of Archean Star Resources Inc. since January 2011 and Director of Discovery Ventures Inc. from November 2011 to June 2012.”

    A 1 for 10 reverse split was applied to ABR in 2012. Yep, ABR gets my stamp of disapproval too.

    Comment by ConcernedCitizen — December 10, 2015 @ 9:54 pm

  31. Nice to get an update from GGI. No mention of La Patilla where assays are pending and also the possibility of producing gold. Hopefully we will hear before Xmas.

    ”Multi-element fire assays for each sample” – this could explain the delay with the assays and is very interesting.

    Comment by Tom UK — December 11, 2015 @ 3:13 am

  32. ABR.v trading as high as up 400% off the Oct lows(0.005) and still the boo birds are deafening…for some peeps it’s just never enough lol…negativity so thick you can cut it with a knife ya gotta luv it…cheers…z

    Comment by zippy — December 11, 2015 @ 5:08 am

  33. “Multi-element fire assays”. Would someone be kind enough to explain how this is different from just .. assays? I’m not versed well enough in the lingo yet to understand its significance.

    Thanks.

    Comment by Treb — December 11, 2015 @ 5:18 am

  34. What the previous comment was probably referring to, Treb, is the possibility of a very broad sweep of elements in this fire assaying procedure. The usual gold, copper, silver plus a suite of other elements, if there’s a suspicion they could be present as part of the Kaketsa stock. For gold, fire assaying is usually considered best, and in this case that’s likely particulary important.

    Comment by Jon - BMR — December 11, 2015 @ 5:40 am

  35. A suite of other elements. Gotta love it – EQT.

    Comment by dave — December 11, 2015 @ 7:27 am

  36. Must be that olympic dam regocci made reference to in a past interview.I believe he said there was room for two on the property.Well one would fit just nice in my Christmas sock.

    Comment by moemoney — December 11, 2015 @ 7:58 am

  37. Thanks Jon for the explanation. It sounds very encouraging. I just hope the stock lives up to the hype. I’ve seen too many perpetually upbeat ceo’s that under-deliver. I hope Regoci breaks that mold.

    Comment by Treb — December 11, 2015 @ 9:01 am

  38. You’re welcome, Treb, and I agree with your point…in the case of Regoci, he has certainly delivered in Mexico, and now’s his chance to also make things happen in a big way in B.C…we all know how prolific this district is and that there are probably many more discoveries to be made…initially staking the Grizzly land package nearly a decade ago took a lot of foresight…

    Comment by Jon - BMR — December 11, 2015 @ 9:32 am

  39. Have to thank Carl for getting Ggi set up with that land package I spoke with him on the phone last week . They better send him a bag of gold if they hit .

    Comment by Randy — December 11, 2015 @ 3:24 pm

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