Gold has traded between $1,250 and $1,258 so far today…as of 10:15 am Pacific, bullion is up $5 an ounce at $1,256…Silver is up 4 cents at $17.42…Copper is flat at $2.11…Crude Oil has eased off 48 cents to $49.87 while the U.S. Dollar Index has retreated one-quarter of a point to 97.87…
Gold continues to be underpinned by exchange-traded-fund inflows but held back by a muscular U.S. dollar. “Admittedly, Gold is finding support from moderate but continual ETF inflows; since the beginning of the month, holdings have been increased by 19 tonnes, which is more than in the whole of last month,” Commerzbank stated this morning. “However, Gold is facing headwind on the one hand from the firm U.S. dollar, which appreciated for a time to a 2.5-month high against the euro this morning. On the other hand, rising stock markets and higher bond yields are keeping the Gold price in check.”
Yields on 10-year U.S. Treasuries have climbed to a 4-and-a-half-month high…
Hedge funds and money managers again reduced their net long positions in COMEX Gold and Silver contracts in the week to October 11, U.S. Commodity Futures Trading Commission data showed on Friday (that’s a bullish contrarian sign, hopefully they’ll reduce net longs even more)…meanwhile, holdings of SPDR Gold Trust rose 0.40% Friday to 965.43 tonnes…
U.S. industrial production barely rose in September as a rebound in manufacturing output was offset by a decline in utilities production, suggesting just a moderate acceleration in economic growth in the 3rd quarter…the Federal Reserve said today that industrial output edged up 0.1% last month after a downwardly revised 0.5% decline in August…interestingly, mining production increased 0.4% as gains in Oil and gas drilling offset a drop in Crude Oil extraction…that left mining output rising at a 3.7% rate in Q3 following 6 consecutive quarterly declines…
Indian Households Spend More On Gold Per Month Than Clothing
A favorable monsoon season has given a lift to Gold buying out of India which is bringing some much-needed support to bullion at a time when the metal has temporarily lost technical momentum after the drop below $1,300…
Indian households have the largest private Gold holdings in the world at an estimated 23,000 tonnes…that’s worth close to $1 trillion, and the amount surpasses the combined official Gold reserves of the United States, Germany, Italy, France, China and Russia…
Gold makes up a significant portion of Indian households’ regular monthly expenditures – more than clothing, utilities, consumer durables and entertainment and communication, according to a 2013 survey by the Federation of Indian Chambers of Commerce & Industry (FICCI)…
Oil Update
Data on Friday from Oil services provider Baker Hughes showed U.S. drillers added 4 more rigs in the week to October 14…that’s the 16th week in a row that Oil drillers have gone without making cuts, indicating more production to come…but the market is fundamentally supported by expectations that OPEC members would take action to support prices at their meeting in Vienna at the end of November…
Saudi Arabia is courting investors for what could be a whopping $15 billion-plus bond deal…it’s a massive offering that’s likely to see good demand, and possibly more so if OPEC succeeds in completing a deal that would trim production…unlike the situation in late 2014, the Saudis have every incentive now to help push Oil prices higher…the debt offering comes at a time when the Saudis do need to shore up their finances…the kingdom has been hit hard by the long period of Oil prices and the costly war in Yemen…with about three-quarters of its revenues coming from petroleum, Saudi Arabia has been running high deficts – $100 billion last year alone as Oil prices plummeted 30%…the debt offering will be the kingdom’s first international bond issuance…it should become the clear sovereign benchmark, allowing for broader development of debt capital markets in the country, according to Standard & Poor’s…
In Today’s Morning Musings…
1. Cannabix Technologies (BLO, CSE) takes off to a new 52-week high…
2. Aggressive accumulation continues in Orex Exploration (OX, TSX-V)…
3. Daniel’s Den – the value in Osisko Gold Royalties (OR, TSX)…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
Dbv prepares to resume drilling at the hat year around
Comment by Sameer — October 17, 2016 @ 9:55 am
Further weakness in the S&P 500 (only indicator that matters to Fed Heads), though hard to imagine, will put December hike in doubt. Ma Yellen talks about merits of “running the economy hot” last Friday. Inflation is already here– things people don’t need cost less, but things people do NEED cost more and more every year. Talk of inflation will evolve into “stagflation” soon enough.
Comment by Daniel — October 17, 2016 @ 10:02 am
Jon… BLO warrants at 25 look good here yes? If and when BLO ‘calls’ the warrants, they would expire in 30 days.
with the placement of 13 million share in the PP what would you expect to happen to the SP once the warrants get called???
Comment by Jeremy — October 17, 2016 @ 10:03 am
Jon… BLO warrants at 25 look good here yes? If and when BLO ‘calls’ the warrants, they would expire in 30 days.
with the placement of 13 million share in the PP what would you expect to happen to the SP once the warrants get called???
BTW there is a 3 cent differential between US and cdn prices.. buy cdn sell us and you make 3 cents a share:)
Comment by Jeremy — October 17, 2016 @ 10:17 am
Jon – I also see that BLO is no longer part of your portfolio?????
Comment by Jeremy — October 17, 2016 @ 11:41 am
Sold at .45 last week on more than a double to lock in profits, Jeremy, then came back in today with a fill at 0.52 on the breakout above the .46 Fib. resistance. Not a strategy I would necessarily recommend in terms of buying back in, but the momentum was very strong morning. John will have an updated chart in the am.
Comment by Jon - BMR — October 17, 2016 @ 4:26 pm
Thx Jon.. I have lightened up at 47 and 62:) still have the warrants to rise with.. and yes it IS very strong.. all weed related stocks are crazy .. glh on the CSE is one to look at.. know the CEO.. just gone nuts!!
any comment on my post #3????
Comment by Jeremy — October 17, 2016 @ 8:05 pm
Jeremy, it’s a big “if” on whether BLO would exercise the “accelerator” clause on the warrants. They already have more than $2 million in the bank, so their cash situation is strong, and some warrants of course would just be naturally exercised near/short-term without the accelerator clause being invoked. This is a group that understands the markets quite well and the importance of a strong share price to facilitate business development, so they’re careful in all that they do with a constant eye on the market. Great volume in this stock, and volume (like grade in an ore deposit) solves a lot of issues.
Comment by Jon - BMR — October 17, 2016 @ 9:56 pm
Nice hole delivered by Seabridge this morning at KSM Project, confirming the extension of the Iron Cap Lower Zone with an intersection of 556 meters at 0.83 g/t Au, 0.24% Cu and 4.4 g/t Ag.
Seabridge Gold Inc. has provided an update. A core hole drilled this summer to test the Iron Cap lower zone at depth has successfully found the down plunge extension of Iron Cap’s higher grade core while also discovering a previously unknown deposit with initial gold and copper grades among the best found to date on the KSM Project. Early indications are that the new discovery could represent a new core zone with a potentially positive impact on the project. The newly discovered zone is being evaluated for additional drill testing in 2017. The KSM Project in northwestern British Columbia is wholly-owned by Seabridge.
Drill hole IC-16-62 was collared well north of previous drilling in an area covered by rubble and ice which had prevented surface mapping and geophysical surveys. The hole was designed to be “steered” into the target zone using down hole navi-drilling tools to obtain an intersection below the existing resource of the Iron Cap Lower Zone and about 400 meters below the intersection in drill hole IC-14-59 (593 meters of 1.14g/T gold, 0.37% copper and 3.7g/T silver). The new hole confirmed the extension of the Iron Cap Lower Zone over an interval of 556 meters at 0.83g/T gold, 0.24% copper and 4.4g/T silver in rocks that closely resemble IC-14-59. This intersection is likely to increase the inferred resource for this deposit. (see http://www.seabridgegold.net/pdf/NOct18-16-map.pdf)
In the shallow part of hole IC-16-62, a distinctly separate mineralized zone was also intercepted, yielding a 61 meter interval averaging 1.2 g/T gold, 0.95% copper and 4.1 g/T silver. This zone consists of an intensely-veined porphyritic intrusive rock similar to KSM’s Mitchell deposit, juxtaposing against the disseminated silica-potassic alteration of Iron Cap along a normal fault. Although the scale of this discovery is not yet known, it rests below the Sulphurets Thrust Fault as do the other major deposits at KSM, it bears evidence of a powerful mineralizing system and its mineralogy closely resembles the higher-grade core zones found on the KSM property.
Seabridge Chairman and CEO Rudi Fronk commented: “Once again, exploration at KSM continues to generate upside surprises. Since 2012, our exploration focus at KSM has been to find core zones with higher grade material to improve overall project economics. This focus resulted in the discovery of the higher grade Deep Kerr and Lower Iron Cap zones. Earlier this month, we released the results of a Preliminary Economic Assessment including these new deposits and the potential impact on economics was highly significant.” (see http://seabridgegold.net/News/Article/630/).
“Although we have only one hole into it, this new discovery has all the same hallmarks that proved to be relevant in the first holes drilled into Deep Kerr and Lower Iron Cap and which led us to pursue these deposits. Our exploration team thinks this discovery could be the elusive Mitchell North deposit which they have hypothesized since 2009,” said Fronk. Results from drill hole IC-16-62 include:
Drill Hole IDTotal DepthFrom (meters)To (meters)Interval (meters)Gold (g/T)Copper %Silver(g/T)
IC-16-62 1038.4
New Discovery Zone (*) 173.0 183.0 10.0 0.53 0.55 1.2
201.0 261.7 60.7 1.20 0.95 4.1
Lower Iron Cap projection353.5 909.0 555.5 0.83 0.24 4.4
(*) NOTE: No core was recovered from 150 to 173 meters and from 183.0 to 201.0
meters while the orientation of the drill hole was being modified using down hole
navi-drilling tools. It is likely that these intervals were also mineralized.
The interval reported for Lower Iron Cap approximates the true width of the zone as identified in previous drilling. True width of the newly discovered zone cannot be established from this first intersection and requires additional drilling before making a definitive statement on the width of the zone.
Comment by Jon - BMR — October 18, 2016 @ 4:39 am
Jon – thank you!!:) appreciated sir!!
Comment by Jeremy — October 18, 2016 @ 5:23 am
Strong open for BLO this morning.
Comment by Jon - BMR — October 18, 2016 @ 5:27 am
News release from CNX:
“Callinex Mines Inc. has made a new high-grade zinc, gold, silver and copper discovery at the company’s Pine Bay project, located near Hudbay’s operations in Flin Flon, Man. The discovery hole, 284-3-93-DPN, intersected 10.3m grading 13.1% zinc equivalent mineralization (“Zn Eq.”) containing 6.0% Zn, 1.8 g/t Au, 60.4 g/t Ag, 0.7% Cu and 0.4% Pb including a higher grade interval over 4.2m grading 20.8% Zn Eq. containing 11.8% Zn, 2.4 g/t Au, 73.8 g/t Ag, 0.7% Cu and 0.7% Pb. The discovery was made by extending a historic Placer Dome drill hole by 38 meters. The historic drill hole, which ended in copper-bearing sulphide mineralization, was initially drilled as part of their mandate to discover a 30 million tonne Volcanogenic Massive Sulphide (“VMS”) deposit at the Pine Bay Project.”
Comment by Jon - BMR — October 18, 2016 @ 5:30 am
See the spike on the US OTC chart?? silly peeps putting in market orders:) one wonders how far this can go?? all weed related stocks are ‘active’..
Comment by Jeremy — October 18, 2016 @ 5:47 am
Jon – Lifeloc (booze) has a marketcap of 23mill US… BLO already has a market cap of 35+… I am assuming that LifeLoc is one of the preeminent suppliers to the cops. any thoughts on when to get nervous about marketcap???
Comment by Jeremy — October 18, 2016 @ 5:57 am
New map just posted by GGI with a sample of channel-sampled rock that mines are made of – massive-semi-massive chalcopyrite, pentlandite and pyrrhotite with bornite.
http://www.garibaldiresources.com/i/maps/EL_Project_Map_Oct_17.jpg
Comment by Bucky — October 18, 2016 @ 6:05 am
sold some more blo at 75… like wow… over 1 mill shares in the first 1/2 hr… way overbought on the blozf chart.. I am in uncharted territory here…
can it continue??? not likely… it is so far above the 200 day.. but momentum is just that!! yikes
Comment by Jeremy — October 18, 2016 @ 6:11 am
Probably a smart move, Jeremy, as you’ll see in a chart this morning…never hurts to take some profits off the table when you get such a buying surge…
Comment by Jon - BMR — October 18, 2016 @ 6:22 am
That’s a beautiful piece of rock (polished channel sample), magmatic massive sulphides…will undoubtedly grade very well…that’s what you find in an ore deposit…if there’s more of that, as the Q anomaly with the “tail” would suggest, then we’re in for a spectacular show. Hopefully GGI can give us total sulphide content from the channel sampling of the outcrop, that would be valuable to know.
Comment by Jon - BMR — October 18, 2016 @ 6:25 am
EQT hit a nickel today. another half penny to go to hit the year low.ouch
Comment by david — October 18, 2016 @ 7:37 am
EQT – firmly believe that Kyler Hardy was a PT Barnum .. raised money for a hole with high expectations, dropped it then went for other things and who knows how much dough went to administration purposes..
Remember how much Dave pumped this ??? No disrespect meant, but we should have known….
Comment by Jeremy — October 18, 2016 @ 8:49 am
DBV quiet after the good news release…I guess everyone is waiting for the actual financing to get arranged and drilling to start. Could be an interesting winter now that they have winterized their camp.
Comment by Steve A. — October 18, 2016 @ 9:24 am
Jon, I am guessing ESK will have to go to market to arrange financing for the anticipated drilling of the SIB property in 2017. Wondering how that will effect the share price going forward.
Comment by pole — October 18, 2016 @ 9:34 am
How would that effect the share price, pole? It would be a very positive development as one of the best pieces of ground in the country would get the kind of drilling required for a potential new Eskay Creek discovery. Ten deep holes (at least 1,000 m), spaced about 100 m apart, over a 1 km trend would generate enormous excitement and geologists also believe this would give ESK a real chance at another Eskay Creek discovery. Keep in mind, a lot of work has been carried out at this project over the years. The understanding of the geology is better than ever.
Seabridge makes a new discovery and extends Iron Cap deposit to depth…ESK has a chance at a major new discovery at SIB…CXO and Skeena are both making great progress at KSP and Snip, respectively…Tudor is advancing Treaty Creek…ABN has a fabulous project in Forrest Kerr that’s just getting started…MTS will surprise with Kirkham…Garibaldi may have stumbled on something very big at E&L…Pretium of course is going into commercial production next year and has a good shot at new discoveries as well…it goes on and on…what will happen in this district over the next 12 months is going to make everyone’s heads spin…
Comment by Jon - BMR — October 18, 2016 @ 9:41 am
Thanks for that Jon. 2017 could be quite the year for the Golden Triangle. Fingers crossed that this comes true.
Comment by pole — October 18, 2016 @ 10:06 am
It’ll happen, pole. It’s starting to unfold now. This summer was merely a dress rehearsal for the Big Show yet to come.
Comment by Jon - BMR — October 18, 2016 @ 10:16 am