Check back later this morning for today’s Morning Market Musings.
1. Gold is finishing 2016 on a mildly positive note after a sharp pullback since early November…bullion hit another 2-week high overnight, reaching $1,162, and appears headed to finish the year with a gain of about 9% to snap a 3-year losing skid…Gold equities performed much better…as of 7:00 am Pacific, Gold is up slightly at $1,160 while Silver has added 7 cents to $16.20…Palladium has been the best-performing precious metal this year, up 19% entering the final trading session of 2016…
2. Gold buying in India, where Prime Minister Modi’s government has been conducting a war on cash, remains subdued…dealers were offering a discount of up to several dollars an ounce this week over official domestic prices that include a 10% import tax…there are rumors that the import tax will be reduced to 6% when the government introduces its 2017 budget February 1…
3. Crude Oil prices are on track for their biggest annual percentage gain since 2009 on the back of an agreement struck between OPEC and non-OPEC countries to cut production starting in January…WTI futures have climbed around 43% this year while Brent futures have risen about 50%…the 2016 gains in the Oil market are the best since the 2009 rally when Brent and WTI rose 78% and 71%, respectively…WTI is off slightly around $53.50 as of 7:00 am Pacific…
4. The Venture is above its 50-day moving average (SMA) for the first time since late September…meanwhile, the average December gain for the Venture over the past 15 years has been 4.1%, and as of 7:00 am Pacific the Index is up 3.8% for the month at 765…the key resistance band is 770 to 784…the broader markets are mixed in early trading with the TSX up 3 points and the Dow down by 23 points…
5. Gatekeeper Systems (GSI, TSX-V), a leading provider of high resolution video security and safety systems for mobile applications, posted record quarterly revenue of $4.1 million to close out its 2016 fiscal year that ended August 31 as reported by the company yesterday…for the full year, GSI’s revenues increased 67% to $9.9 million while net income was almost $700,000 vs. a net loss of $921,000 during fiscal 2015…GSI is unchanged at 30 cents as of 7:00 am Pacific…
6. FLYHT Aerospace Solutions (FLY, TSX-V) carries a very positive chart into 2017, with the stock just half a penny off its highest price (24.5 cents) in nearly 18 months…FLY provides real-time aircraft intelligence and cockpit communications for the aerospace industry, and the company has been making major inroads into China recently…
7. Colorado Resources (CXO, TSX-V) is armed with nearly $4 million in cash as the company prepares to launch a 1–2 punch with drilling early in the New Year at its recently acquired Green Springs Gold Property in Nevada followed by another major exploration program at its flagship KSP Project in the Heart of Gold Camp…yesterday, CXO closed a $950,000 flow-through financing with strong individual supporters…the stock is showing bullish new momentum and is unchanged at 28.5 cents as of 7:00 am Pacific…
I guess we have to wait until the new year to hear from GGI Jon.Should be an exciting 2017.
Comment by pole — December 30, 2016 @ 7:45 am
DBV – financing expected to close today. looking for price to start upward march.
Comment by Foz1971 — December 30, 2016 @ 8:00 am
If we don’t see something today, pole, which is still possible, then I certainly expect we’ll hear from GGI to kick off the New Year on Tuesday…
Comment by Jon - BMR — December 30, 2016 @ 8:02 am
DBV is looking good today, Foz1971…chart and fundamentals remain nicely aligned…results in January and I’ll eat my hat if we don’t see something really good…
Comment by Jon - BMR — December 30, 2016 @ 8:05 am
“A prominent News Letter writer is going feature the Hat Project and Doubleview in January.” Any idea which news letter this is?
Comment by Sameer — December 30, 2016 @ 8:10 am
Thanks Jon.It sure would be nice for GGI to start off the new year with a bang.
Comment by pole — December 30, 2016 @ 8:11 am
Do you mean that red hat Jon, ha! I’d rather see them both start off the new year with a great Big Bang!!
Comment by Laddy — December 30, 2016 @ 8:12 am
We’re always on top of developments with DBV, Sameer, but if we have some company in that regard, that’s great…the Hat certainly deserves broader coverage…
Comment by Jon - BMR — December 30, 2016 @ 8:14 am
# 5.. if true, I would guess.. Brent Cook??
Comment by GregJ. — December 30, 2016 @ 8:39 am
Garibaldi provides B.C. property update
2016-12-30 17:00 ET – News Release
Mr. Steve Regoci reports
GARIBALDI READIES E&L
10-KM-LONG MINERALIZED CORRIDOR DEFINED AT RED LION WITH CU-AU-CO-RICH VALUES
Garibaldi Resources Corp. has provided an update on several of its B.C. properties as it follows a strategic path to make 2017 a breakthrough discovery year for the company in both British Columbia and Mexico.
E&L Project
Detailed 3D modeling of the E&L magmatic Ni-Cu-PGE-Au-Co system, the first deposit of its type in northwest British Columbia’s prolific Eskay camp, is expected to be completed in the coming weeks and will provide further insight into the morphology and distribution of the intrusions and massive sulphide component of the system. The Garibaldi E&L team, led by Special Advisor Everett Makela, P.Geo., is incorporating historical data pertaining to the deposit with new information obtained by the Company during the last several months, including high Ni-Cu tenors and the broad “Q” magnetic anomaly with a 600-m-long conduit-shaped “keel” (see Nov. 10, 2016, news release). The “Q” is immediately south of the original discovery at the top of Nickel Mountain and is already a prime target for the 2017 E&L drill program.
The E&L deposit is 11 miles southwest of Eskay Creek and 20 miles west of Pretium’s high-grade Brucejack gold mine which is progressing toward production during the second half of 2017.
Elsewhere at Garibaldi’s 63 sq. km and 100%-owned E&L Project, geologists continue to review the recently confirmed Brass Hill target in a volcanic package approximately 2.7 km northeast of the E&L deposit. Exceptionally high-grade Zinc assays were recently obtained from chip samples at Brass Hill within a cluster of mineralized showings (Zn-Cu-Au-Ag) near a receding glacier (see Oct. 28, 2016, news release).
Updates on Garibaldi’s other holdings in the district are expected during Q1. In total, Garibaldi controls just over 200 sq. km in this high-profile mining camp.
Red Lion Property: 10-Km-Long Mineralized Corridor Above Kliyul
Extensive geophysical and surface sampling programs carried out by Garibaldi, combined with compilation and contouring of historical soil sampling results from RL Ridge, has revealed a 10-km long northwest-southeast trending mineralized corridor at its 100%-owned Red Lion Cu-Au Project in the dynamic Quesnel Trough. This large corridor is parallel to the Omineca mining road and power lines to Kemess that strategically pass through the Red Lion claims.
The Red Lion, never previously drilled, was gradually expanded to 75 sq. km from the original 35 sq. km acquired by Garibaldi in early 2014. The property is contiguous to Kiska Metals’ Kliyul Project and drill permits are pending.
On December 22, AuRico Metals announced that it’s acquiring all of the issued and outstanding securities of Kiska by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia).
Three Major Target Areas Along Red Lion Corridor
An extensive copper-in-soil anomaly at the RL Ridge target stretches NW-SE for 4.2 km and east-west for 400 meters to 800 meters within a broader anomaly up to 1.7 km wide;
Parallel to the east of this large geochemical anomaly is a 2.4-km-long IP chargeability high, open to the north and south, that continues up slope from the Omineca road. The IP high coincides with anomalous copper- gold rock, soil and stream sediment results along with a magnetic high that’s known to be underlain by a diorite to a monzodiorite intrusive in a largely overburden-covered area (RL East target);
A second chargeability high, 1.8-km-long, is located less than 2 km northwest of RL Ridge at the RL West target, and also coincides with anomalous copper-gold rock, soil and stream sediment results and a magnetic high underlain by a diorite intrusive.
Significantly, the 4 chip samples at RL West with the highest measured chargeability were associated with abundant pyrite and assayed the highest grades in gold, copper and cobalt. Those values ranged from 1.07 g/t Au to 37.5 g/t Au, 0.21% Cu to 13.6% Cu, and anomalous Co to 0.55% Co. Extensive outcropping exists at RL West and numerous areas have yet to be sampled. The fact that the chargeability high appears to be related to sulphides carrying mineralization is extremely encouraging.
The IP chargeability highs at Red Lion are similar to those measured at the adjoining Kliyul Property to the south.
More details on the Red Lion are expected in the near future.
Steve Regoci, Garibaldi President and CEO, commented: “The Red Lion has proven to be an exceptional acquisition near the bottom of a bear market cycle in the resource sector. The quality of these targets that have been systematically identified over a 10-km-long corridor speaks to the Red Lion’s exciting exploration upside. Surrounding infrastructure and the prolific nature of the Quesnel Trough district make the Red Lion even more compelling. We are currently examining all options to unlock the full value of this significant asset for Garibaldi shareholders.”
Near-Term Drilling At Tora Tora Property
Garibaldi’s 100%-owned Tora Tora Property, 25 km north of the producing Copper Mountain mine and contiguous to a large block of claims held by High Power Exploration Inc., a private mineral exploration company indirectly controlled by mining entrepreneur Robert Friedland, is expected to be drilled early in the New Year. Tora Tora lies within the historic Princeton placer gold-palladium and porphyry copper-gold camp.
Garibaldi Acquires Au-Ag-Zn-Pb Past Producer
Garibaldi is pleased to announce the acquisition of an option to acquire a 100% interest in the 24 sq. km SID gold- silver-zinc-lead polymetallic prospect at Sidina Mountain, 22 km northeast of Hazelton, B.C. Primary targets are broadly defined intrusive-related vein deposits. According to MINFILE 093M038, 143 tonnes of mined material in 1981 from the Silverton deposit at SID produced 250,655 grams of silver, 415 grams of gold, 9,168 kilograms of lead and 13,066 kilograms of zinc. The property features excellent road access and overall nearby infrastructure.
Acquisition terms for the SID are two million Garibaldi shares over a 4-year period (100,000 upon signing followed by 100,000 shares, 200,000 shares, 600,000 shares and 1 million shares in the second, third and fourth years, respectively) and a total work commitment over 4 years of $1 million ($25,000, $100,000, $250,000 and $625,000 from the first to fourth year, respectively).
Corporate Developments
Garibaldi has closed a non-brokered private placement of flow-through shares at 15 cents per share (no warrants) with strategic investors for total gross proceeds of $350,000. Proceeds from the financing will go toward exploration of the Company’s B.C. properties, including near-term drilling at Tora Tora, and the shares are subject to a hold period ending April 30, 2017. In connection with the offering, the Company paid $22,000 in cash finders’ fees.
Garibaldi extends best wishes to all shareholders for a safe, healthy and prosperous New Year.
Corporate Fact Sheet
To view the latest corporate Fact Sheet for Garibaldi Resources, please visit the following URL: http://www.garibaldiresources.com/i/pdf/GGI-Fact-Sheet-December-2016.pdf
Quality Assurance/Control
Chip samples from Red Lion were taken directly from outcrop and placed in a marked poly sample bag with an identifying sample tag. Sample bags were then sealed and subsequently placed into a rice bag which was also sealed and secured for transport. The samples were then delivered directly to Bureau Veritas Mineral Laboratories by Garibaldi personnel. All samples underwent 4 acid digestion with ICP-MS analysis and 50g fire assay fusion Au by ICP-ES. Samples which returned greater than 10 g/t Au subsequently underwent lead collection fire assay 50G fusion with a gravimetric finish. Samples greater than 1% Cu subsequently underwent a 4-acid digest with AAS finish.
Duplicates, standards and blanks were tested by the qualified laboratory. No significant QA/QC issues are present in the results.
Qualified Person
Mr. John Buckle, P.Geo., P.Geoph., a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical disclosure in this news release.
We seek Safe Harbor.
Comment by Michael — December 30, 2016 @ 2:44 pm
Very interesting Red Lion scenario, seems they kept quiet on things there as they doubled the land package to 75 sq. km…….”detailed 3D modeling of E&L”, I bet that model really gets things cooking…
The surprise is winter drilling coming up at Tora Tora in B.C. interior – Friedland’s company is butted right up against GGI…I read previously on Tora Tora that an historical hole hit a nice section of high-grade Gold and high-grade Palladium…will have to go back and check those values but they were impressive…could be what they’re targeting, possibly…nice to see a drill turning…
Comment by Jon - BMR — December 30, 2016 @ 3:05 pm
Jon: question here… Why this news release, on many topics, could not have been the subject of 3-4 different news releases…??? Like: to generate a buzz… Don’t get me wrong, glad we have something out, but gees… It’s like if he told himself: oups, forgot to update shareholders on all of this, let’s pack this up in a multi-section news release, and wish them happy new year…
Sorry for the rant, and wish you all a great year 2017 !
Comment by rgiroux — December 30, 2016 @ 3:18 pm
That’s a good question, rgrioux, but I think the answer might be that they are already looking at a very busy news flow schedule in January to aid in creating that “buzz” you’re referring to…E&L…Red Lion…drilling at Tora Tora…and Mexico….to me this looks like a “scene-setter”, the foundation, for a lot of rapid-fire stuff early in the New Year…if that’s the case we’re in for a lot more fun…
Comment by Jon - BMR — December 30, 2016 @ 3:25 pm