Gold has traded between $1,092 and $1,110 so far today…as of 10:15 am Pacific, bullion is up $14 an ounce at $1,108 following yesterday’s push through key resistance at $1,080…Silver is 33 cents higher at $14.32…Copper has dropped 6 cents to $2.03…Crude Oil is 12 cents lower at $33.71 while the U.S. Dollar Index is off two-thirds of a point to 98.62…
Not surprisingly, China has had to backtrack on the ridiculous circuit breaker system it introduced for the beginning of this year after trading was halted overnight for the remainder of the day for the second time in 4 sessions to start 2016…Chinese regulators have used the halts and other measures in an attempt to control downward pressure amid volatility…however, the circuit breaker system that was designed had the opposite effect of what authorities had intended (they should have known better) and actually increased investor jitters about the health of the Chinese market (and how authorities there are handling the big-picture economic situation)…this in turn has impacted markets on a global basis…
Effective Monday, a 5% rise or fall on the CSI 300 Index, which tracks stocks in Shanghai and Shenzhen, triggered a 15-minute trading halt…a move of 7% at any time, or 5% in the 15 minutes before markets close, stopped trading for the rest of the day (this merely creates uncertainty/panic, and investors don’t like not having liquidity)…the U.S. has circuit breakers but it takes a level “3” decline of 20% to stop trading for the day…after just 4 days of this poorly thought-out new system, Chinese authorities have finally figured out that it wasn’t such a smart idea…unfortunately, it’s like closing the barn door after some horses have already fled but it’s better to fix this problem now than wait any longer…
The resurgence of Chinese stock market turmoil has investors increasingly betting that Federal Reserve officials will lose some of their resolve and delay future interest rate hikes…traders see only a 43% chance that policy makers in Washington will lift the benchmark rate by their April meeting, down from 52% as recently as Tuesday, according to a report this morning from Bloomberg…
The World Bank has cut its forecast for global growth this year given weakness in the developing world…the aid agency said yesterday that it expects the world economy to expand 2.9% in 2016, down from the forecast of 3.3% it made in June…the global economy grew 2.4% in 2015…several big developing economies – including Brazil and China – are slowing or shrinking…their troubles have disproportionately hurt their smaller trading partners, which have also been squeezed by depressed commodity prices…the World Bank expects developing countries to collectively grow 4.8%, up from a 6-year low of 4.3% in 2015…China, the world’s second-biggest economy, is expected to register 6.7% growth, down from 6.9% percent in 2015 and the slowest pace since 1990…meanwhile, the World Bank expects the U.S. economy to grow 2.7% this year, up from 2.5% 2015 and the fastest pace since 2006…it’ll be interesting to see if that forecast holds up…we doubt it…
In today’s Morning Musings…
1. Updated chart for Gold (the most reliable one on the planet) as bullion rips through resistance at $1,080…
2. Kaminak Gold (KAM, TSX-V) delivers a robust feasibility study for its Coffee Gold Project…
3. The opportunity in Kootenay Silver (KTN, TSX-V)…
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…
John Kaiser was on BNN Commodity Report this morning and recommended SCY Scadium International Mining and KAM Both recently discussed on BMR.
Comment by John — January 7, 2016 @ 12:56 pm
Am I the only one that is dumbfounded that Dbv is at 10 cents?? Does no one else see the potential here?
Comment by Sameer — January 7, 2016 @ 1:48 pm
EQT … Plan B seems to be the reason for the season… am I to assume that the Garland is now dead cause the first drilling showed less than desirable results???
Comment by Jeremy — January 7, 2016 @ 2:24 pm
Remember my post yesterday. There was a very good reason for the delay. Bureau Veratis performing multi-element assay analysis on all samples. There was a post on SH after that and no it wasn’t me that said information from IR indicates that the lab called GGI on Monday to inform them of extra analysis using a different method of some sort. GGI hit something unexpected in hole 3.
Comment by Dan1 — January 7, 2016 @ 2:36 pm
Jeremy, the answer to that is no, because a second project in my opinion was in the works long before drilling even started at Garland. The results from Garland, while weak in terms of actual assay results, provided technical evidence that a high-grade Nickel system may indeed exist there, so the next round of drlling has something to go on – the chances of a hit increase going forward. The timing of the next round of drlling there will depend on a range of factors. In the meantime, they may regain momentum with a second project.
Comment by Jon - BMR — January 7, 2016 @ 3:52 pm
They hit something unexpected beginning in hole 1, Dan1. And much more of it in hole 3. And it continued in hole 4, half a km or more to southwest. Geophysics show a large system, that’s another clue. Those are facts based on all the publicly available data. That’s not a wild guess. This will redefine the district, guaranteed.
Comment by Jon - BMR — January 7, 2016 @ 3:58 pm
SCY looks like a very interesting play. I am in. I think this is one where you definitely have a core position and a trading position as there will be a lot of spikes and some pull backs over the next year. I have always had a high regard for John Kaiser, he hasn’t been right all the time but I think he has done his homework here.
Looking forward to results from GGI. Jon, you sound very confident “This will redefine the district, guaranteed.” That is confidence. I know a lot of people here have high expectations for GGI, I still own some and hope it comes through. Also noticed a couple days ago DDD4 was getting flak because he preferred DBV over GGI. I don’t get that. I know a lot of people here have a lot invested in GGI (me too) but I think some are being a little too sensitive because someone has a preference for DBV. I don’t think DDD4 deserved the criticism he got. Just my 2 cents.
Comment by Danny — January 7, 2016 @ 5:32 pm
Jon, you are correct. The black mafic unit showed up in hole 1, 3 and 4. Not sure about hole #5 but who knows, maybe they went deep enough and hit it there as well.
Comment by Dan1 — January 7, 2016 @ 5:45 pm
To add to my post above, the drill ended in mineralization. If the system is at least 1 km long, imagine how deep this could run as well.
Comment by Dan1 — January 7, 2016 @ 5:48 pm
Sameer, no-one’s pumping the stock, why would it raise? The company hasn’t released anything for a while, things are in some kind of a stall. It isn’t a bad sign, considering the context IMO.
Let’s hope the old saying goes….calm before the storm.
Comment by Chromatix — January 7, 2016 @ 6:05 pm
Jon – thanks for the insight … while opinion.. it does make some sense… wish the company would be more transparent.. or at least more communicative:)
Comment by Jeremy — January 7, 2016 @ 6:29 pm
Well I guess the venture’s little rally was indeed a
“dead cat bounce”. Gold pushes through 1080 and 1100.00 and the venture loses mother 6 pts and back down to 513…… Sigh….
Comment by tony t — January 7, 2016 @ 6:35 pm
Just back toward the rising 20-day SMA for the Venture (currently 511), Tony, which so far is a very normal retrace after 8 straight days to the upside and 3 points within Fib. resistance at 531. Be patient. It’s out-performing the broader equity markets and, importantly, the CRB Index. Venture down just 2% so far this week vs. 4.5% decline in the CRB Index and a 5% drop in the Dow. The time to be really concerned is when the Venture is leading everything to the downside, but that has certainly not been the case since the start of Q4.
Comment by Jon - BMR — January 7, 2016 @ 7:16 pm
I have a XBOX one connected to my 55 inch HD TV(wich i have 4k), Through this i have connected myself to garibalbi web site. Really impressive those pyrite magnétite core. They are pyrite loadded plus little peck of gold everywhere . The ankerite one (the one of message from president message) is really something, There is a chunk of gold just to the right of where “grizzly central drill” is written plus gold everywhere.
Comment by Martin — January 7, 2016 @ 7:43 pm
I wonder if DBV went into hibernation like the area bears , in which case nothing stirs until the snow melts .
Comment by Les — January 7, 2016 @ 8:13 pm
Regarding comments of something ”unexpected” being found at the Grizzly, has anyone got any ideas as to what it could be? What requires a different type of analysis after a fire assay.
Comment by Tom UK — January 8, 2016 @ 1:14 am
Martin, that sounds interesting. I only have a smallish screen and poor eyesight. Has anyone else managed to identify flecks of gold from GGI’s photographs.
Comment by Tom UK — January 8, 2016 @ 1:34 am
Regarding the DBV comments…I too wonder what’s happening up there…I thought we’d have hit the ground running after the CD mess or at least have a news release by now letting us know whats happening…
Comment by ChetBaker — January 8, 2016 @ 6:22 am
You would think that if there were visible gold in the core loose lips would have prevented price slip.
Comment by Ivan — January 8, 2016 @ 6:24 am
In my opinion, Tom, what would be more significant than any visible Gold would be Gold that can’t even be seen by the naked eye – could be very finely disseminated in the rock…if it’s carried in electrum, there would be no way of even seeing it, yet grades could run quite high in grams…
Comment by Jon - BMR — January 8, 2016 @ 6:35 am
How much did you pay for that tv dude? All I’m seeing on mine is a silver screen.
Comment by Ivan — January 8, 2016 @ 6:43 am
Although come to think of it I did see a gold finger on my tv awhile back.
Comment by Ivan — January 8, 2016 @ 6:47 am
I kinda doubt that there is visible good in any of the core. With the in depth core descriptions that GGI has giving us surely they would have included that visible good could be seen. I’m with Jon on this one, ideally the gold isn’t visible and it is included in the dark mafic section of core.
Comment by weatheritout — January 8, 2016 @ 6:48 am
Wouldn’t it be wonderful if in the near future we could be singing of Mr Regoci…Goldfinger He’s the man, the man with the Midas touch A spider’s touch Such a cold finger Beckons you to enter his web of sin But don’t go in
Golden words he will pour in your ear But his lies can’t disguise what you fear For a golden girl knows when he’s kissed her It’s the kiss of death from
Mister Goldfinger
Comment by Ivan — January 8, 2016 @ 6:58 am
Yes Jon, lots of possibilities. Several assays done for different minerals/substances. Maybe something unexpected found in the dark stuff on the lower part of hole 3. Lots of quartz veining and alteration in various parts of each hole. All suggests various types of deposits IMO.
Martin raised the possibility of visible gold. Photo 13 dated Nov 29 has a circle around a goldish coloured blob set within some quartz. 2nd row down, photo on extreme left. Is that Au?
Comment by Tom UK — January 8, 2016 @ 7:00 am
I guess though we have to stop singing after the man with the Midas touch. We won’t be singing about any lies. Guess I got carried away thinking about all that gold in Fort Knox
Comment by Ivan — January 8, 2016 @ 7:09 am
“Finely disseminated gold” … Jon, would this be enough to redefine the district? When you write “something entirely different” it doesn’t lead me to think of gold since that’s what’s already been found and what they are shooting for. Van you elaborate please?
Comment by Treb — January 8, 2016 @ 7:17 am
Treb, I was just stating a geological fact…yes, obviously, the discovery of an epithermal gold system would certainly redefine the Sheslay district, or of course a deposit of another nature, or both…this is the #1 greenfield district in the entire province of B.C. and so far there are two confirmed Cu-Au porphyry deposits on the first 2 properties drilled (multiple deposits yet to be discovered)…some believe this is just a Cu-Au porphyry district…that is not the case in our opinion, and Grizzly Central is going to prove that…
Comment by Jon - BMR — January 8, 2016 @ 7:23 am
Thanks
Comment by Treb — January 8, 2016 @ 7:29 am
Tom uk,
that yellowish blob is described as honey sphalerite which is a zinc ore i believe.
Comment by moemoney — January 8, 2016 @ 8:18 am
Thanks moemoney, so maybe we can add zinc to the list of metals/minerals that they have had fire assayed. All depends on grade of course but it’s definitely getting interesting.
Comment by Tom UK — January 8, 2016 @ 8:53 am
Tom UK this is my amateuristic basic explanation of the photos, jmo:
Epithermal gold deposits are a type of lode deposit that contain economic concentrations of gold, silver and in some cases
base metals including copper, lead and zinc. Gold is the principal commodity of epithermal deposits. Epithermal deposits
are characterized as having minerals either disseminated through the ore-body, or contained in a network of veins.
These deposits are found near the surface and mineralization occurs at a maximum depth of 1 km, but rarely deeper than 600 m.
Hydrothermal fluids lead to the formation of epithermal deposits. Breccias are among the most widely distributed rock textures
found in hydrothermal vein-type deposits. A breccia is a rock composed of broken fragments of minerals or rock cemented together
by a fine-grained matrix. This porphyritic texture is indicative of multi-stage cooling of magma.
IMO We see multi-phase silicified breccias (mineralized rock-forming minerals coated by quartz-carbonate veins); porphyritic diorite
(composed principally of crystallized magma) with potassic alteration (typical of porphyry copper), andesite with sphalerite
(zinc sulfide), mineralised fragments in crustiform banded/brecciated quartz veins (indicative of gold-silver epithermal deposit).
Comment by ConcernedCitizen — January 9, 2016 @ 1:31 am
Thanks CC. Your explanation ties in with Regoci’s comment regarding different types of deposits situated at the Grizzly central.
Comment by Tom UK — January 9, 2016 @ 10:22 am