Gold has traded between $1,078 and $1,094 so far today…as of 9:20 am Pacific, bullion is up $13 an ounce at $1,090 as it attempts to overcome stiff resistance at $1,080…Silver is flat at $13.96…Copper is down a penny at $2.10…Crude Oil has dropped more than $1.50 barrel to $34.33 while the U.S. Dollar Index is relatively unchanged at 99.38…
Gold is up for a 3rd straight day to begin 2016 as North Korea’s apparent first nuclear test in almost 3 years spurred demand for haven assets amid concerns that China’s slowdown is deepening…this 3-day rally is the longest run of gains since October 14…North Korea claims it has tested its first hydrogen bomb which would be the 4th time it has detonated a nuclear device, a move that reignites tensions with neighbors…
Federal Reserve Vice Chairman Stanley Fischer said today that North Korea’s claim to have successfully tested a hydrogen bomb has increased uncertainty in the markets…he added, however, that he’s unsure of the long-term impact, while concerns about a slowdown in China’s economy are perhaps more significant…
Crude Oil Update
Crude Oil prices have hit their lowest in over 11 years this morning as fresh tensions between arch-rivals Saudi Arabia and Iran make any cooperation between major exporters to cut output even more unlikely…in addition, part of the Saudi Oil strategy since last year has been to weaken the Iranian regime with lower prices…meanwhile, more evidence of slowing economic growth in China and India has fueled fears that even strong demand elsewhere may not be enough to mop up the excess Crude that has resulted from near-record production over the last year…
WTIC 2-Year Weekly Chart
As we’ve been maintaining, Crude Oil still has further to go on the downside and $30 appears to be a certain target (quite possibly lower) with the pending likely breach of another important support level at $35…the long-term downtrend line (dotted blue cutting through the $45 area at the moment) will have to be overcome in order for a major shift in sentiment to occur, and that’s not likely to happen anytime soon with such strong resistance…from a fundamental standpoint, prices have to drop to a level where supply and demand are in balance – ultimately that could take Crude into the $20’s…
In today’s Morning Musings…
1. Seasonality chart for Gold suggests this current move may have some “legs”…
2. A very interesting trend change in how the Venture is performing relative to the Canadian dollar…
3. Chart updates on SCY, NXE, and CXV…
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…
CXV – Funny how it piggy backs PHM too.
Comment by dave — January 6, 2016 @ 10:24 am
When they do release assays…I hope Garibaldi doesn’t release them at 6:00 pm like they have in the past. I know they are in Vancouver and all but the markets close at 4:30. Just feels kinda lackluster….hit us with a short pre market….or a halt Regocci
Comment by weatheritout — January 6, 2016 @ 11:49 am
GGI – The results will come when they come. Did anyone take notice to the last release that stated “Bureau Veritas are carrying out multi-element fire assay analysis for each sample” Now why would they do that? There is the possibility of a high grade gold deposit plus other elements that could change the dynamics of the Sheslay area. I believe this is the reason for the extra time for assays. This would be positive as well for DBV and PGX.
Regoci said, their geologist are excited. The drill core didn’t change since it was pulled from the ground.
Comment by Dan1 — January 6, 2016 @ 1:25 pm
Dan, your a smart man. Oh weather, markets close at 4pm.
I don’t think Regoci will halt, but who knows if the exchange will, but hey, what do I know right
Comment by dave — January 6, 2016 @ 6:13 pm
Sorry…brain fart…markets do indeed close at 4 ?
Comment by weatheritout — January 6, 2016 @ 6:45 pm
Interesting blog on SH by person who spoke with IR of GGI. to-day. Worth lookihg at.
Comment by charleybarley — January 6, 2016 @ 7:42 pm
Awfullll quiet on this board. Must have a Wednesday night Hooter’s special all over Canada.
Comment by dave — January 6, 2016 @ 7:56 pm
Good, at least we have somekind of update.
Comment by Martin — January 6, 2016 @ 8:40 pm
If that information on the SH posting is true, then it sounds like they’ve hit something that exceeds their expectations which requires further testing to confirm!!
Good news IMO!!
Comment by Jeff — January 6, 2016 @ 8:48 pm
BMR guys mentioned they would visit Hat before Xmas
Did they let you on the property?
Heard all the geo’s were there except for Farshad and they uncovered something new?
Can you guys add to this?
Comment by Blue Beryl — January 6, 2016 @ 9:25 pm
Blue Beryl, we stated we were finalizing logistics for a near-term visit to the district but the final piece of that is that it has to coincide of course with something concrete we can report about, which means drill results from GGI to confirm the discovery, and any information that DBV reports. I have nothing to add with regard to your comment about the Hat – it is merely a rumor, albeit a nice one, until it is actually reported by the company (same with previous comments by Jeff and Martin, nice rumors but facts are required).
Comment by Jon - BMR — January 7, 2016 @ 4:28 am
Well we are expecting gold or copper …so hitting something that they didn’t expect? Did they find some new molecular structure? SO according to IR possibly 2 more weeks for hole 3 to be analyzed…I don’t get it. Not in this day and age, cmon it doesn’t take that long. If it is true that we are still weeks away from results and the general market has now started to turn over and melt down we could be at the .10 mark or lower before results. Wake me up when January ends.
Comment by weatheritout — January 7, 2016 @ 4:29 am
Weatheriout, 2 things: Your comment is based on a Stockhouse post. Enough said. Second, one fact we do know is that by Christmas, GGI certainly did not have any assay results—or else they would not have been able to announce that financing or grant stock options as they did. I think they may have been anticipating some results just prior to Christmas, so it’s indeed quite conceivable – especially given the core descriptions and the unusual pyrite-magnetite unit that was intersected in most of the holes – that some additional procedures may have had to be performed. So when you say, “it doesn’t take that long”, that’s simply not correct. I’m more interested in getting an update straight from the horse’s mouth, which of course is the company. But we also have facts to go back on which are previous news releases, the core descriptions, the core photos, the district patterns, and that’s how we have concluded there is an important discovery here. And, as we stated in our report Sunday – it’s likely going to redefine the district because this discovery appears to be different from what has been seen at the Hat and the Star. A high-grade component to it would be very significant, and the core descriptions/photos do point to a distinct possibility of that.
Comment by Jon - BMR — January 7, 2016 @ 4:52 am
EQT-Halted at company’s request. Dave talk to us please!!!
Comment by Jeff — January 7, 2016 @ 5:20 am
EQT halted all…… what could it mean!??
Comment by Jeremy — January 7, 2016 @ 5:21 am
Plan B, Jeremy. Seems our hunch was correct, we’ll find out soon enough. They’ve certainly had a number of months to investigate possible second projects, I’m sure that was a process that started before they even began drilling at Garland.
On another note, excellent feasibility study numbers from KAM. 37% IRR, payback of capital within 2 years.
Comment by Jon - BMR — January 7, 2016 @ 5:31 am
EQT halted for all you eqt-ers. I hope it’s good news for you all.
Comment by Treb — January 7, 2016 @ 5:32 am
the KAM story should benefit other players in the area such as ATC and IGO
Comment by moemoney — January 7, 2016 @ 7:15 am
GI – lost track of which core is which on the site. which cores shown on the website are hole #3? thx . as for the lab, hopefully the addt’l assaying isn’t because they buggered up the first round attempts at the lab
Comment by david — January 7, 2016 @ 7:54 am
David, the core photo that was in Regoci’s message, I suspect, was from hole #3 (we expanded on that in our Sunday Sizzler), and of course the unusual black unit (pyrite-magnetite) is the really dark core that is shown in the photos on the web site, and that unit was intersected in most of the holes starting with hole #1…my only read on this, my best guess, is that it’s the dark unit that’s taking additional time for the lab to analyze, perhaps some extra steps…as best we know, this type of unit has never been intersected in the district before…GGI has already indicated/suggested (Dec. 10 news) that this unit is indeed mineralized (visual analysis, XRF?)…in hole 3, they have more than 200 meters of it and the hole ended in this structure…holes 1, 3 and 4 in fact all ended in this unit (we don’t know about 5) and that’s a broad area…tonnage will add up quickly on significant mineralization in the pyrite-magnetite…what’s also fascinating is the vein breccia in dolomite above the dark unit in hole 3, with massive quartz veining…this (Grizzly Central) is going to be an important discovery, we have little doubt, and as such it will redefine the district…
Comment by Jon - BMR — January 7, 2016 @ 8:07 am
2 row first 3 on the right
Comment by Martin — January 7, 2016 @ 8:13 am
cores – thx
Comment by david — January 7, 2016 @ 8:25 am
EQT – It is halted because of plan B. It was requested by the company and not the exchange. The exchange would have been better but we will take it.
NOW, I have always said that I call it how I see it. This does not change because its EQT.
It’s showing a .095 open right now which the market put it there based on the news they have in their hand. Of coarse this can change depending on the buy orders when it resumes. EQT has heavy resistance at .10
The offers currently showing are six figures up to .11 – The bid is six figures at .095 but not much below. This gives me a red flag on “will it run”. Again, will the level 2 change by open. Will EQT have to remain halted for some time if it is a new company that is merging.
I honestly don’t know and you know that I would legally be able to spit it out now that it is halted.
Keep in mind, they have a ton of warrants to chew through, its going to take something really big to keep EQT up and sustained above .10. glta
Comment by dave — January 7, 2016 @ 8:49 am
I will add that Kyler was in South America in early December but I had to sit on this cause when I mention something of significance on here my post wind up on stockhouse and I get in trouble. I am thinking Gold possibly in Ecuador.
Comment by dave — January 7, 2016 @ 9:02 am
Dave – Your right about SH because that’s where someone posted that you had SOLD 94% of your EQT holdings. Smart Move!!
Comment by Jeff — January 7, 2016 @ 9:44 am
eqt – are we not done with that selling comment yet? geesch
Comment by david — January 7, 2016 @ 10:09 am
Yes Jeff, and that’s crazy. It’s hard to believe anything on SH.
Now, I have 2 contacts up there and I am getting 2 conflicting stories about what plan B is with EQT. They are not even in the same ball park. So very soon I will know which contact to put in my hip pocket and who to throw in the trash. I think that I already know but the news will confirm.
Comment by dave — January 7, 2016 @ 10:12 am
GGI – everytime that .13 gets hit, more show up on the sell shortly after. It is frustrating for sure. I am hoping for everyone here that the news is good. It does not matter to me at what price I hop in if its good.
Comment by dave — January 7, 2016 @ 10:24 am