Check our comments section throughout the day for updates and helpful information. 7 @ 7:00 is a daily BMR feature while BMR Morning Market Musings is featured Mondays, Wednesdays and Fridays.
1. Gold has traded between $1,254 and resistance at $1,260 so far today…as of 7:00 am Pacific, the yellow metal is down $2 an ounce at $1,256…yesterday’s minutes from the most recent Federal Reserve meeting suggested the central bank could take a more cautious approach to interest rate increases later this year, though another rate hike is still widely expected next month…Silver is relatively unchanged at $17.21…Copper has added 3 pennies to $2.59 while the U.S. Dollar Index is modestly higher, just above nearest support at 97.00…
2. OPEC surprised no one this morning as the cartel agreed to extend cuts in production by 9 months to March 2018, hence Crude prices have backed off somewhat on the news that was already largely baked into the price…some investors were hoping to see OPEC actually do more to help balance the market…ahead of a closed-door meeting today, Khalid Al-Falih, Saudi Arabia’s energy and industry Oil minister told CNBC, “Nine months with the same level of production that our member countries have been producing at is a very safe and almost certain option to do the trick“...WTI has retreated 21 cents to $51.15…
3. In another intra-day jump of more than $200, Bitcoin has surged to a new all-time high of $2,790 this morning on strong Asian buying, more than double its price at the end of April…there will be a correction and it could be severe, but it’s unclear if that correction will start from current prices around $2,800 or from some place considerably higher…trade denominated in the Japanese yen accounted for about 31% of trade volume overnight, while Chinese yuan and Korean won accounted for 16% and 12%, respectively, according to CryptoCompare…Japanese interest in Bitcoin has risen ever since the local government approved it as a legal payment method last month…over the weekend, yen-denominated trade volume accounted for more than half of total volume, helping send Bitcoin above $2,000 for the first time…Bitcoin has surged nearly 50% since last Thursday and more than 180% this year…
4. Garibaldi Resources (GGI, TSX-V) announced this morning that its recently completed VTEM survey has outlined multiple large conductors at the E&L deposit and surrounding claims in the heart of the prolific Eskay Camp in northwest British Columbia, with new data continuing to be analyzed…each conductor is at least half a km long (up to 1 km) and 3 of them appear to be part of the same mineralized system over a 3 km trend…EM response south of the known mineralized zone also confirms the potential for massive sulphides…significantly, each of the 5 conductors features core areas of B-field responses, indicative of highly conductive bedrock sources as would be expected for significant accumulations of massive sulphides…there is now overwhelming geological and geophysical evidence of a mineralized system at Nickel Mountain that is robust and widespread – likely the largest and richest Nickel sulphide deposit ever found in British Columbia…GGI will commence a field program at the E&L shortly, followed by a major summer drill program…the company has also arranged a $1.3 million financing, mostly for the E&L, but some of the proceeds are being directed toward Mexico where GGI has several promising properties including ground next to Marlin Gold’s (MLN, TSX-V) La Trinidad mine that delivered one of its best Gold intercepts ever yesterday…GGI is up half a penny at 16.5 cents as of 7:00 am Pacific…its 1,000-day SMA is now reversing aggressively to the upside for the first time since 2004 when a 10-fold move took the stock to nearly $1 per share…
5. Barkerville Gold Mines (BGM, TSX-V) has intersected 12.7 m grading 24.13 g/t Au in continuing Phase 2 Island Mountain drilling at the company’s flagship Cariboo Gold Project…the company is currently exploring and delineating the Valley Zone with 4 drill rigs…the new high-grade intercept reported this morning is located 160 m down plunge of the former Mosquito Creek mine at a vertical depth of 100 m below surface…this new faulted occurrence correlates 35 m up plunge to previously reported Phase 1 drill hole BGM-16–553 which intersected 56.3 g/t Au over 4.1 m…BGM is up 2 pennies at $1.19 as of 7:00 am Pacific…
6. The Venture is flat at 802 through the first 30 minutes of trading…another strong session for Jaxon Minerals (JAX, TSX-V) which is up 3 pennies at 21.5 cents…the Venture volume leader is Skeena Resources (SKE, TSX-V) which is off half a penny at 5.5 cents after announcing a $5 million financing the other day “in the context of the market” – that’s the kind of dilution investors ought to be concerned about…the TSX has gained 63 points while the Dow has added 65 points as of 7:00 am Pacific…
7. Scientific Metals has changed its name to U.S. Cobalt and has started trading under that new name on the Venture this morning…the new stock symbol is USCO…CEO Wayne Tisdale stated, “We are excited to announce the rebranding of the company from Scientific Metals to U.S. Cobalt Inc. This change highlights the corporate focus we’ve undertaken at our flagship Iron Creek Cobalt Project in Idaho, USA. We believe strongly that the demand for homegrown and ethically sourced Cobalt will continue its meteoric rise. Many people are not aware that the current exponential growth in demand for Lithium-ion batteries directly correlates with the increased demand for Cobalt. Cobalt is an essential component of the batteries that power everything from electric vehicles to consumer electronics. Additionally, the Cobalt supply chains of brands such as Apple, Tesla, GM and Microsoft are being closely scrutinized. In excess of 50% of the world’s Cobalt comes from the Democratic Republic of the Congo. The DRC has a deplorable record when it comes to human rights and labour practices. The company is well positioned to provide a solution to this dilemma. There is no question that President Trump and his administration are strongly in favour of developing American solutions to issues such as this and we look forward to being part of that development.”
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Venture Update – The Surprise That’s Just Around The Corner!
Jon,
I know GGI geologists are still interpreting the data, but have you talked to any of your geological consultants regarding the preliminary VTEM data? It’s interesting there was no mention yet of how highly conductive the responses were, but did say that the core repsonses of all conductors were in the B-field. Very little information on the Q-anomaly in this release but I’m sure we will get more details when they release the detailed analysis.
Comment by Dan1 — May 25, 2017 @ 7:39 pm
Dan, I spoke to Regoci briefly and, yes, as they indicated they are still reviewing data including fresh data but the geos and geophysicists were struck by the shear scale of these conductors, and there is intensity as well which they’ll be able to get into in the next update…they have completely ruled out graphite as an explanation for the strong responses, which of course is very positive, and keep in mind those reviewing include Peter Lightfoot (one of the top nickel experts in the world), Alan King (one of the top geophysicists) and other leading geos and geophysicists…the VTEM is telling them there is a much larger massive sulphide system at the E&L than previously believed (consistent with other data) and there could be some other “pleasant” surprises as well, which he wouldn’t elaborate on…we’re continuing to check with our people and should have something concrete by Sunday…
Comment by Jon - BMR — May 26, 2017 @ 6:09 am
Thanks Jon, very exciting times ahead for GGI and it’s shareholders.
Comment by Dan1 — May 26, 2017 @ 6:29 am
EAS.V … anyone have any idea why it continues to hit the clouds??? a triple in a week
Comment by Jeremy — May 26, 2017 @ 6:52 am
Jon: i hope you guys have a great Cobalt trip and can shed some light onto CSR/CPO. They appear to have very low market caps and CPO is drilling so anything is possible very shortly! Good timing for the trip!
Comment by STEVEN1 — May 26, 2017 @ 7:16 am
Just out from CSR…
CSR TARGETS HIGH-GRADE COBALT AND SILVER AT CASTLE, CLOSES SECOND TRANCHE AND INCREASES FINANCING TO $1.2 MILLION
Castle Silver Resources Inc. has closed the second tranche of an oversubscribed private placement and has provided an update on developments at its 100-per-cent-owned Castle silver-cobalt mine in Gowganda, Ont.
– Additional equipment and personnel have been mobilized to the mine site in preparation for a fully funded Phase 1 underground drilling and sampling program from the first level, commencing shortly;
– A high-grade cobalt vein structure featuring black sulphides and cobalt “bloom” has been identified on the first level and is the initial target of upcoming extraction that will utilize the company’s Re-2OX process to produce value added high-purity cobalt powder test samples for end users in the battery sector;
– A 3D underground model is being produced using extensive historical data from all levels that includes silver assays and many references of visible cobalt (no drill holes were assayed for cobalt). As an example of Castle’s exceedingly high silver values, 12 historical drill holes on the first level feature weighted average grades of 100 oz/ton silver (3,428 g/tonne) or better over 1-foot intervals (9 holes with one such interval each, two holes with two such intervals, and one hole with 3 such intervals).
Frank Basa, CSR President and CEO, commented: “Given a treasure chest of historical data, and visual analysis of the entire first level which requires just minor rehabilitation, we are very confident in our ability to target high-grade cobalt and silver mineralization in vein structures that were either overlooked or left untouched by Agnico Eagle in the 1980’s. Their focus, along with previous operators going back to the early 1900’s, was only on silver and at exceptionally high grades.”
Castle Mine Features 11 Levels
Historical data features silver assays for hundreds of drill holes in addition to locations of drifts and certain stopes throughout the 11 levels of the Castle mine. The total footprint of the underground workings extends as much as 2,400 feet (727 meters) east-west, 1,500 feet (455 meters) north-south, and 850 feet (258 meters) to depth.
Considerable exploration potential exists outside of the mined area at the property and the Company eagerly anticipates results from a recently completed IP program designed to expand drill targets.
The mine site includes easy year-round road access, buildings, core shack, water and power, with the community of Gowganda just a few kilometers away.
CSR Closes Second Tranche, Increases Financing to $1.2 Million
CSR has closed a second tranche of $466,500 in its recently announced private placement, bringing total gross proceeds to $966,500. Due to investor demand, CSR has increased this over-subscribed financing to $1.2 million.
The Company will be issuing 2,332,500 units in the second tranche closing. Each unit comprises one common share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the Company at an exercise price of $0.30 per share for a period of two years from closing, subject to TSX Venture Exchange (“Exchange”) approval.
All securities issued in connection with the private placement are subject to a four-month and a day hold period expiring on September 27, 2017, in accordance with applicable Securities Laws.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Castle’s President and CEO who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing on the exploration and development of former silver and cobalt mine properties in northern Ontario including the Castle Silver-Cobalt mine near Gowganda and the Beaver and Violet mines near Cobalt. Additional information on the Company’s properties is available by visiting its website at http://www.CastleSilverResources.com.
We seek Safe Harbor.
Comment by Jon - BMR — May 26, 2017 @ 8:05 am
Agree Jeremy, EAS, why cant GGI do that.
Comment by dave — May 26, 2017 @ 8:13 am
You’ll notice EAS tripled, though not on great volume, AFTER the closing of a cheap and very dilutive financing at 12 cents (27 million shares)…
Comment by Jon - BMR — May 26, 2017 @ 8:26 am