Check back later for today’s BMR Morning Market Musings.
1. Gold appears to be finally breaking out above the top of a resistance band at $1,235…as of 7:00 am Pacific, the yellow metal is up $10 an ounce at $1,247…expect a near-term challenge of the 200-day moving average in the $1,260’s…Silver has jumped 16 cents to $18.15…yesterday’s minutes of the latest Federal Reserve policy meeting further dampened expectations for an interest rate hike next month, lowering U.S. bond yields and stalling upward momentum in the dollar…
2. Oil prices are firm this morning as well, buoyed by a lower dollar and after U.S. data showed a surprise decline in inventories…WTIC is up $1.06 a barrel to $54.65 as of 7:00 am Pacific…
3. The Venture touched a nearly 30-month high yesterday, just a hair below 850, before profit taking forced a retreat to support at the EMA(8) at 837…the Index has reversed higher this morning, however, and is up 7 points at 844 after 30 minutes of trading with Oil and precious metals showing strength…as part of our Greater Cobalt Camp due diligence, BMR has entered the main adit of Castle Silver Resources‘ (CSR, TSX-V) Castle Property where “Cobalt bloom” was immediately noted in multiple areas…we’ll have more on this by tomorrow… CSR is off a penny-and-a-half at 22 cents as of 7:00 am Pacific, giving it a $6.3 million market cap for 2 important high-grade past producers in the region that have been advanced through a combined $4 million in investment since 2011…
4. Some fresh excitement for Engold Mines (EGM, TSX-V) at its 100%-owned Lac La Hache Property in British Columbia’s Cariboo…the first drill hole of EGM’S 2017 campaign, collared in an area with no previous drilling, has encountered a 27-m intercept of intensely mineralized material identified by company geologists as skarn-type Copper-magnetite…vertical drill hole G16–01 intersected 27 m of “high-grade, massive mineralization containing abundant chalcopyrite, pyrite and magnetite” within a near-horizontal skarn bed within the Nicola volcanic host rocks 1.8 km southeast of the existing Copper-Gold-Silver-magnetite resource defined at the Spout deposit…the new zone, believed to occur within the same host strata as the Spout deposits, was hit 337 to 370 m downhole…drilling continues to depth…core is being logged and prepared for assay, which will be done on a rush basis according to the company’s news release issued post-market yesterday…EGM, which has about 174 million shares outstanding, is up 6 cents at 23 cents as of 7:00 am Pacific…
5. Golden Predator Mining (GPY, TSX-V) has commenced a 20,000-m drill program at its 100%-owned 3 Aces Project in southeastern Yukon…drilling will initially focus on targets in the Spades Zone where 2016 results included a new vein discovery at depth plus 7.5 m of 33 g/t Au at the Ace of Spades…the program will expand to other areas of the property including the Clubs and Hearts Zone…investors continue to hold a good hand with GPY, up 7 cents at $1.69 as of 7:00 am Pacific…
6. Effective this morning, Cruz Capital (CUZ, TSX-V) is now Cruz Cobalt with the same trading symbol and no changes in the share structure…Cruz holds multiple Cobalt prospects in northern Ontario, B.C. and Idaho but its focus is on 4 properties, notably the Hector prospect, in the burgeoning Greater Cobalt Camp…CUZ has averaged about 3.6 million shares in daily volume over the last 14 trading sessions, a great example of the growing interest in Cobalt and the high-grade northern Ontario Cobalt district…
7. NexGen Energy (NXE, TSX) has reported strong initial results from 2017 winter drilling at its Rook 1 Project in the Athabasca Basin…several drill holes have intersected significant mineralization in previously untested areas located outside the maiden A2 and A3 resource grade shells of the Arrow deposit to the northeast, including some of the most intense mineralization encountered in the A3 shear to date….the winter program utilizing 7 drill rigs will comprise 35,000 m…NXE has cash on hand of approximately $70 million and will be issuing an updated NI-43–101 resource estimate during this 1st half of 2017…continue to keep a close eye on neighbor Purepoint Uranium (PTU, TSX-V), the operator of the Hook Lake JV where drilling continues…
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Jon, past mid week and still nothing on the Makela and Goldie interviews
Comment by Dan1 — February 23, 2017 @ 7:54 am
Bare with us, Dan1, we’re getting to it. Certain things are worth the wait!
Comment by Jon - BMR — February 23, 2017 @ 8:29 am
Ok, hope so Jon. Thanks
Comment by Dan1 — February 23, 2017 @ 9:06 am
Post-market edition of Musings today as we work around some visits.
Comment by Jon - BMR — February 23, 2017 @ 10:45 am
Dennis – I agree with you … but also with Jon.. once one of the properties is developed for grade etc, and the volume starts to dry up as well as insider sells begin (which they will) is the point where we bail.
there is no question that a heavily promoted stock has to be treated as a short term stock… how short term i s the issue eh!!!:)
Comment by Jeremy — February 23, 2017 @ 12:07 pm
Do you know how much cash GGI has on hand? Do any of you at BMR have any knowledge of a potential financing by GGI in the near future?
Comment by donald — February 23, 2017 @ 1:25 pm
Donald, it goes without saying there’s going to be a significant financing of GGI at the right time — and in this kind of market and given the prospects for the E&L, it’s not a question of if but which institution is the lead. The E&L is being looked at in that respect, and intensely, that’s all I know. It’s reasonable to expect that to come together in March.
Comment by Jon - BMR — February 23, 2017 @ 5:01 pm