Check back later today for a separate BMR posting. BMR Morning Market Musings resumes tomorrow.
1. Gold has traded between $1,250 and $1,259 so far today…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,257 while Silver has added 9 cents to $18.18…what Gold needs to do to create more instant believers is break out convincingly above its 200-day moving average (SMA) at about $1,260…the yellow metal reacted at its 200-day last month and is trying once again to overcome that resistance…an analysis of all of Gold’s technical indicators suggests the metal will continue to trend higher during this 1st half of 2017 – it’s not a question of “if” but only “when” Gold conquers its 200-day…
2. Investors will be evaluating comments from key Fed officials today…on the data front, U.S. consumer confidence surged to 125.6 in March – the best level in 17 years and much higher than the consensus estimate of 114…meanwhile, the S&P/Case Shiller 20-city home price index showed U.S. home prices rose 5.9% to a 31-month high in January…
3. What a refreshing change – rather than trying to regulate and control the climate at the expense of jobs, as Canada and other countries are doing, President Trump will be signing an executive order today with the goal of boosting U.S. fossil fuel production and achieving energy independence…Trump’s order is rolling back a number of Obama-era climate policies, according to a senior administration official, and this comes just days after his approval of the Keystone Pipeline Project that was rejected by the previous administration…
4. The Dow will try to snap an 8-session losing skid today…the index has also declined in 10 out of the last 11 sessions with RSI(2) at extreme levels and the rising 50-day SMA providing support…bodes well for a rebound into month-end…the Dow is off 4 points through the first 30 minutes of trading…the TSX has climbed 52 points while the Venture is 3 points higher at 808…a key Fib. resistance band for the Venture runs from 817 to 824…a breakout above that band would set the market up for a strong upside move…
5. Chile is in the spotlight in the mining sector today as Exeter Resource (XRC, TSX) has shot up 90 cents or nearly 60% to $2.44 on a friendly all-share buyout offer from Goldcorp (G, TSX)…Exeter’s Caspiche Project is located in the Maricunga Belt of Chile, between Barrick (ABX, TSX) and Kinross’s (K, TSX) Cerro Casale Gold-Copper deposit 10 km to the south and Kinross’s Maricunga mine 15 km to the north…meanwhile, even more significantly, Goldcorp and Barrick have entered into an agreement to leverage potential synergies within the prolific Maricunga Gold belt through a 50–50 joint venture…part of that deal involves Goldcorp purchasing Kinross’s 25% interest in Cerro Casale…the move is aimed at reducing development costs and risks while ultimately enhancing the Goldcorp and Barrick production profiles…another junior to watch in the Maricunga Belt is Atacama Pacific Gold (ATM, TSX-V), an opportunity we highlighted in a video presentation yesterday…it’s up 2 pennies at 47 cents in early trading…
6. Cannabix Technologies (BLO, CSE) is showing continued strength this morning following yesterday’s news of highly encouraging results from preliminary human subject testing with its Cannabix Marijuana Breathalyzer…ironically, the news came as the federal government rolled out a much anticipated schedule for legalizing recreational use of marijuana just in time for Canada’s 150th birthday July 1, 2018 (liberals insist that’s progress)…live testing of the Cannabix breathalyzer is ongoing and more updates from BLO can be expected in the coming weeks…the ability to detect THC and its metabolites in human breath marks a significant scientific breakthrough that allows for real-time pharmacokinetic analysis…Dr. Bruce Goldberger, senior advisor to Cannabix, stated, “The Cannabix Marijuana Breathalyzer utilizing FAIMS will allow the company to zero in on impairment with ‘recency of use’ like no other currently known device out there.” BLO is up 2 pennies at 76 cents as of 7:00 am Pacific…
7. A mining company needs some help – can BMR readers come up with something better in terms of a new name for Silver Standard Resources‘ (SSO, TSX) than what the company proposed yesterday?…we had some interesting responses to our comments in this space that management could have been much more creative after announcing that it will seek shareholder approval May 4, 2017, to rename the company “SSR Mining” (symbol SSRM)…surely, they could have come up with a better choice than something that sounds so similar to the S.S. Minnow from Gilligan’s Island…Paul Benson, President and CEO, said: “With Gold representing approximately 70% of our revenue, the current name does not accurately reflect our business. We have evolved from a Silver-focused producer to an intermediate precious metals producer with 3 mines in the Americas. The proposed name, which includes the initials of our existing name, is a natural evolution in our more than 70-year history. While we are recommending a change to our name, our relentless focus on creating shareholder value remains.” (that’s goes without saying, we would hope!)…a miner with such a storied history as Silver Standard has missed a great marketing opportunity around a name change…
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Jon..for a long time I cannot rationalize the GGM (gold in the ground price)
of ~ $9/oz, and ICG with a price of ~ $115/oz. GGM with a 2.6M oz resource,
a mining permit and a new consultant that may take them to production. Am I
missing some inherent negative to the Granada project or is the market just
unaware. The market certainly took little time to awaken to CSR, once it was
realized that Co actually is a larger component than Li in batteries. Neither
GGM or CSR have been strongly marketed by Frank.
Thanks..Your thoughts would be appreciated.
Comment by bob — March 28, 2017 @ 8:15 am
Pretty nice bump to nickel so far today….
Comment by Laddy — March 28, 2017 @ 10:01 am
Nickel – Hearing that it is just the beginning. Kaiser did special report on it.
Comment by dave — March 28, 2017 @ 12:37 pm
Granada Gold news – fascinating, comes completely out of the blue after the close – significant potential implications as well for Cobalt Camp and CSR:
Mr. Frank Basa reports
GRANADA GOLD MOVES QUICKLY ON TURNKEY SOLUTION TO BOOST POTENTIAL GOLD PRODUCTION AT GRANADA MINE
Granada Gold Mine Inc. management and geological consultants met last week at the Granada property and two other proposed mill processing sites in nearby Northern Ontario with The selection of a site for a planned 1,200-tonne-per-day processing mill to go along with a planned 12,000-tonne-per-day (500-tonne-per-hour) preconcentration ore sorting officials from DRA Americas Inc., a subsidiary of DRA Global, pursuant to the letter of intent recently entered into between the company and DRA (see March 6, 2017, news release).
facility at the Granada mine, designed by DRA to maximize annual gold production beyond what was envisioned in the June, 2014, prefeasibility study for Granada, will be made during the upcoming quarter concurrent with a final technical and financial proposal DRA will deliver to Granada Gold.
DRA will outline terms of a potential turnkey BOOT (build, own, operate, transfer) financing solution for Granada as well as other financial options, similar to arrangements DRA and clients have carried out successfully elsewhere around the globe. DRA is active on five continents and has a 30-year record of delivering innovative mining solutions on time and within budget.
The near-term proposal from DRA would be followed by an updated Granada prefeasibility study as the technical feasibility and economic viability of this new scenario has not yet been established.
Preconcentration, ideally suited for Granada mineralization, can substantially reduce overall costs as it allows downstream processing to be undertaken on a richer stream of material.
Strategic options for mineral processing plant
The two Northern Ontario brownfield sites under consideration for the planned 1,200-tonne-per-day mineral processing plant are in Gowganda and Temagami.
Both sites hosted past-producing mines and feature excellent infrastructure as well as local first nations support for development.
Significantly, the broader area is experiencing a major acceleration of interest in the exploration and extraction of cobalt as well as gold and silver. Establishing a new processing plant in this mining-friendly district, still within easy access to the Granada deposit, may therefore allow Granada Gold to capture robust regional synergies. The company also owns a 50-per-cent interest in the Golden Corridor section of Castle Silver Resources’ 33-square-kilometre Castle property hosting its flagship silver-cobalt project.
Updated Granada resource estimate expected early in Q2
As a result of new discoveries made at Granada since fresh drilling began late last year, a new resource estimate for the LONG Bars zone including the Granada “Deep” high-grade area is scheduled to be released by the end of April. The estimate is being prepared by the company’s geological consultants at Goldmines Geoservices and will be supported by a full technical report in accordance with NI-43-101 that will supersede the 2014 PFS technical report. Data from historical holes not previously used will be incorporated into the new resource model and estimate.
More results are pending from the recently completed drilling which is showing continuity of the high-grade gold vein system north of the existing pits while near-surface drilling on the western side of the property has confirmed a new mineralization model associated with intrusive dikes similar to the Canadian Malartic mine as well as the Barry and Windfall models.
Qualified person
Frank J. Basa, PEng, president and chief executive officer of Granada, is a qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.
About Granada Gold Mine Inc.
Granada Gold Mine (formerly Gold Bullion Development Corp.) is developing the Granada gold property near Rouyn-Noranda, Que. The highly prolific Cadillac trend cuts through the north part of the property. The Cadillac trend has been the source of more than 50 million ounces of gold produced in the past century on a line running from Val d’Or to Rouyn-Noranda.
Comment by Jon - BMR — March 28, 2017 @ 3:39 pm
Dave- any more details to add re:Kaiser/nickel? Wonder how long it will take for him to catch onto GGI..or other analysts.
Comment by Johnz — March 28, 2017 @ 4:32 pm