Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for helpful information and updates.
1. Gold has traded between $1,327 and $1,335 so far today…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,333…Silver has added 3 cents to $17.91…ETF demand for Gold has actually picked up this week during Gold’s pullback with Commerzbank reporting that global ETF holdings are now at their highest level since mid-November of last year…Copper has lost a nickel to $2.96…Nickel has declined 20 cents to $5.20…Crude Oil is up 44 cents at $48.67 after the International Energy Agency said the global Oil surplus was starting to shrink due to robust demand and an output drop from OPEC and other producers…however, a Wall Street journal piece this morning detailed how OPEC Oil exports continue at surprisingly high levels as some countries in the cartel are selling Oil out of storage or reducing domestic consumption, leaving more Crude available to ship overseas despite the modest drop in Oil output…the Saudis are now pushing for monitoring of exports, rather than just production, at a September 22 meeting of producers in Vienna…the U.S. Dollar Index is off one-tenth of a point at 91.78…
2. U.S. producer prices rebounded in August, albeit slightly less than expected, driven by a surge in the cost of gasoline…the Labor Department said its producer price index for final demand increased 0.2% last month after slipping 0.1% in July…in the 12 months through August, the PPI rose 2.4% after advancing 1.9% in July…a key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.2% last month after being unchanged in July…the so-called core PPI increased 1.9% in the 12 months through August after a similar gain in July…inflation is still running below the Fed’s desired rate…
3. The Dow is off slightly as of 7:00 am Pacific…Apple (AAPL, NYSE) has retreated about 1% in early trading after its unveiling of iPhone® X (“10“) yesterday which the company calls the future of the smartphone – the iPhone X is expected to cost about $1,000 (U.S.), a pricey psychological threshold for consumers that Apple will try to overcome with augmented reality features and other new technology…a JPMorgan strategist has noted that NYSE net debit balance of margin accounts, which is a measure of how much leverage individual investors are using for their stock investments, has been “rising over the past year and the current reading is very close to the record highs seen in mid-2015 or in early 2000“…meanwhile, an analysis by Goldman Sachs reveals that there’s little chance of a stock market slide anytime soon because investors are so worried that one might be coming…correction calls have abounded lately, based at least in some part on the fact that it has been so long since one has occurred…the S&P 500 has gone 14 months without a 5% drop and 19 months since the last full-blown correction, or drop of 10%…the TSX is up 7 points while the Venture has added 1 point to 776 through the first 30 minutes of trading…Spearmint Resources (SRJ, TSX-V) is once again the volume leader after acquiring more ground in the Eskay Camp…
4. Colorado Resources (CXO, TSX-V) has hit high-grade Gold in 2 locations at Inel – in its most northerly drilling along the AK trend, and at Inel Ridge approximately 500 m to the southwest…at the former, CXO cut 1,670.5 g/t Au over 1.4 m including a Pretium-like 4,470 g/t Au (158 ounces per tonne) over half a meter at a shallow depth of just under 40 m in drill hole #81…6 more holes have been drilled immediately north of #81 and results are pending, while additional holes are being completed on the AK trend with CXO expanding its 2017 drilling into the fall…meanwhile, drill hole #55 at Inel Ridge was consistently mineralized from 102 m to the bottom at 249 m including a 2.6-m intercept grading 31.6 g/t Au (1.1 m @ 63.6 g/t)…more drilling is being carried out in this target area where only a limited number of holes have ever been drilled…CXO is up a penny at 40 cents through the first 30 minutes of trading on brisk volume of 1.6 million shares…
5. Cobalt Power Group (CPO, TSX-V) has commenced Phase 2 drilling at its Smith Cobalt Property near the town of Cobalt…the 2,000-m program will feature 10 to 15 holes and will initially focus on evaluating a newly discovered mineralized zone, an impressive outcrop discovery containing multiple individual vein swarms that display at least 3 different orientations…a channel sample taken across 1 of the veins assayed 12.5% Cobalt, 82.2 g/t Ag, 5 g/t Au and 0.53% Ni as reported by the company July 17…CPO also announced this morning that assay results have been delivered to the company by SGS Canada for approximately two-thirds of the samples taken from the Phase 1 drill program…QA/QC is underway and final results will be released when all assays have been received and reviewed…CPO is unchanged at 14.5 cents as of 7:00 am Pacific…
6. The Mackenzie Valley Environmental Impact Review Board has recommended approval of the proposed all-season road for Canadian Zinc’s (CZN, TSX) Prairie Creek mine in the Northwest Territories…Canadian Zinc has obtained all the significant regulatory permits and “social licenses” required to complete construction and development and undertake mining and milling at Prairie Creek, now including construction and use of a winter access road to the mine site…Prairie Creek hosts Measured and Indicated Resources of 8.70 million tonnes grading 9.5% Zn, 8.9% Pb and 136 g/t Ag, which includes a reserve of 7.60 million tonnes averaging 8.9% Zn, 8.3% Pb, and 127.6 g/t Ag…in addition, a large Inferred Resource of 7.05 million tonnes grading 11.3% Zn, 7.7% Pb and 166 g/t Ag and additional exploration potential…the 2016 PFS indicates average annual production of approximately 60,000 tonnes of Zinc concentrate and 55,000 tonnes of Lead concentrate, containing approximately 86 million pounds of Zinc, 82 million pounds of Lead and 1.7 million ounces of Silver…CZN is up 1.5 cents at 21 cents as of 7:00 am Pacific…
7. The Tanzanian government continues to target miners…in another example of global jurisdictional risk, the government authorities there have seized millions of dollars worth of diamonds from a British mining company…the East Africa nation said it’s planning to nationalize the diamonds which were on their way to Belgium for export…London-listed Petra Diamonds (PDL:LN) allegedly under-declared the value of the minerals heading for export, according to government officials…
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Jon, you didn’t mention GGI above. Given its 30 cent dive this morning, it deserves some comment/explanation, particularly with the pending PP closing, and lack of news on hole 2. There is obviously nervousness amongst the retail investors. You did mention Clive Maund and I notice he has an update on GGI in his blog this morning. Any idea what he said?
Comment by dermo63 — September 13, 2017 @ 7:43 am
well,nothing fell off my tree,what is that now 14 15 days in a row of mill + shares for ggi….think its getting noticed!!
Comment by Laddy — September 13, 2017 @ 7:55 am
Hey Jon…. do we have any confirmation that a second drill was actually brought in? I know we’re kinda presuming but nothing was actually confirmed by GGI
Comment by Weatheritout80 — September 13, 2017 @ 8:05 am
I have a question about Spearmint. Seems every day I get an email promoting their latest acquisition – and touting the fact that they are still selling for under five cents. Their strategy seems to be to always chase the fire. Not long ago they established a portfolio of Lithium properties. I don’t know if they did anything with them besides creating headlines for each acquisition. Now they are running around the GT, pounding stakes in the ground next to whichever play is hot. Are they just trying to market a dog that’s chasing its tail, or is there meat on those bones?
Comment by Tad — September 13, 2017 @ 8:07 am
Dermot, what you’re seeing today is normal profit taking and volatility. Expect further volatility in both directions. That’s always what happens in these situations and one needs to have a stomach for that. When you have volatility, you also get more pro traders involved as they play the swings. They love the swings.
Comment by Jon - BMR — September 13, 2017 @ 8:49 am
I’m not a fan of Spearmint, Tad…they’re not serious explorers, they just play the closeology game…it’s a paper play, that’s all it is…experienced traders can make some bucks by playing for a half penny or a penny…
Comment by Jon - BMR — September 13, 2017 @ 8:50 am
Jon, thanks for the response. I’m not concerned with the volatility; that’s expected and swings like this are welcome every now and then to take the froth off the top. What I’d like to know is what triggered this? Was it something to do with the PP or events on the ground up on the mountain? Also, is this a sign that retail are no longer driving this?
Comment by dermo63 — September 13, 2017 @ 9:03 am
SRJ show me da map. the we can talk. nice vol trader though
Comment by david — September 13, 2017 @ 9:03 am
Dermot63, as I postulated earlier, nothing to do with events on the ground…a combination of technical and pro traders…
Comment by Jon - BMR — September 13, 2017 @ 9:11 am
Jon any view on some of the other smaller companies in the area. OK, MTB, AUX, DEC are a few that might be of interest to invest with some of the profits.
Comment by Patrick — September 13, 2017 @ 9:13 am
Patrick, OK is south of Stewart and also well north of Eskay Camp around Dease Lake, but very good projects and drilling in progress…MTB and DEC with “Mr. Ed” – what’s notable with DEC is the amount of paper Fidelity has been accumulating for more than a year…AUX needs to raise some money which is why the stock may have woken up…
Comment by Jon - BMR — September 13, 2017 @ 9:34 am
GGI….This is just a “Tree shaking/Float cleansing day” that occurs after a good run up and GGI has had a good run. Not only is it traders but in this case I am sure some of the trades are going into L/T safe hands which reduces the public float for a while. There is no fundamental change to trigger this volatility as this is a natural trading system occurrence.
This is good stuff for the stock…..and notice, it is happening around the Measured FIB. Resis. at 1.50.
Comment by John - BMR — September 13, 2017 @ 10:04 am
Re Ggi are there any big boys that you can mention holding stock?
Comment by donald — September 13, 2017 @ 10:51 am
The 5 year cobalt chart is looking pretty, up 10% from may now we just need some decent drill, trench and bulk sample results in Ontario?
Comment by donald — September 13, 2017 @ 10:55 am
CXO is either a GOOD BUY or a goodbye. No love today.
Comment by Marshall — September 13, 2017 @ 11:33 am
The volume in CXO is good, Marshall, because it’s cleaning out the funds that were involved in the flow-thru PP in late March – that’s where the paper supply appears to be coming from.
Comment by Jon - BMR — September 13, 2017 @ 11:48 am
Jon
any best guess at all as to what is going on up on Nickel Mtn, when GGI may release the next NR? would think that the 2nd hole should be done,but who knows? If they have hit MS they are doing an excellent job of keeping it quiet in my opinion, Hope we hear something good soon, my wife says to me every morning wow you look tired…. didn’t you get any sleep again, lol. Not losing sleep worrying, losing sleep because of excitement..
Comment by Gregh — September 13, 2017 @ 11:51 am
Jon, what do u think are the chances of massive sulfides being discovered in hole 2? What kind of intercept are u expecting and how will the market react? Cheers
Comment by Seamus — September 13, 2017 @ 11:56 am
Given the benefits of the downhole probe, Seamus, it’s reasonable to believe the 2nd hole could deliver even more joy in terms of the intensity of mineralization.
Comment by Jon - BMR — September 13, 2017 @ 12:07 pm
We got a crazy GGi haircut today,Jon. When do we get news?
Comment by Johnz — September 13, 2017 @ 1:03 pm
Well the good news for GGI is with today’s close, at least RSI 14 is back below 70.
John, what is the next support level?
Comment by dermo63 — September 13, 2017 @ 1:13 pm
John .. GGI correction down to the 21 day… 90 cents.. make sense??
Comment by Jeremy — September 13, 2017 @ 1:17 pm
Rough day for GGI shareholders Jon. What’s your thoughts on it? Think it’s strictly trading, or some in the know?
Comment by Dan1 — September 13, 2017 @ 1:17 pm
Well, Dan1, simply a healthy pullback…started with CM this morning, so you have TA mixed in with computerized trading, pro traders, the financing – everything, essentially, not related to what’s happening on the ground…the volatility could easily come right back the other way…one thing’s for sure—-pro traders are attracted to these price swings, so once volatility starts to set in (in both directions) it usually continues…
Comment by Jon - BMR — September 13, 2017 @ 1:39 pm
Dan1.. all 4 plays went down… trading… CXO’s results amy not be perceived as being all that good?? a simple reason for a corrective move.. as much as I wish I would have sold and bought back in.. the longer term focus needs to be kept in focus:) profound eh!
Comment by Jeremy — September 13, 2017 @ 1:39 pm
anyone know what CM actually said??
Comment by Jeremy — September 13, 2017 @ 1:41 pm
Clive just said it was a ten bagger for subscribers and based on technicals it was a good time to sell and buy back at lower levels
Comment by Weatheritout80 — September 13, 2017 @ 1:47 pm
That’s what I was also wondering, Jeremy.
Comment by Laddy — September 13, 2017 @ 1:51 pm
It’ѕ actually verʏ complex in this busy life to listen news on Television, so I only use inteｒnet for that ρurpose, and obtain the most up-to-date іnformation.
Comment by high — September 13, 2017 @ 1:52 pm
Forgot about Clive we have boots on the ground Jon! How can Clive who I have never heard of until today have more influence then the BMR team. Anyhow just a technical pullback as everyone and grandma are trading GGI and will panic at the slightest downdraft.
Comment by large — September 13, 2017 @ 2:29 pm
Good afternoon Jon, I have a questions about the drilling time and the pp: The first drill hole took approx. 8 days from start to when they gave us the sulphide intercept length. We are now on day 10 or so with this second hole. There has been some word that the pp has to be announced complete before they announce anything on hole #2. But there has also been talk that the pp was price protected, and as such, news on hole #2 could be released prior to the pp closing.
Can you please clear the air for me on this once and for all? And would it be your opinion that the extra time on this hole only suggests that they are drilling deeper than the first hole? Meaning perhaps they are still in the sulphides???
Thanks,
Comment by Phil — September 13, 2017 @ 2:32 pm
Clive done good. supposedly he says buy again.
MTS website. new pics of rocks. Look familiar? Thunder North and South pics
Comment by david — September 13, 2017 @ 2:33 pm
I sold yesterday at 1.50. I also sold at 1.00 and 50 cent so there is no perfect strategy, I am happy with mine and will continue with it. Next sale is 2.00. I have 60,000 left and will see where that leads. These pullbacks always happen although this was some run.
Comment by Patrick — September 13, 2017 @ 2:37 pm
Volatility is the norm, not the exception, in discovery plays and we’ve seen that also in GT Gold…over 3 days recently, GT dropped 31% from $1.88 to $1.26, then surged higher…GGI experienced a 33% correction over 3 days in early August (.72 to .485) and today’s dip was a 27% haircut from yesterday’s $1.66 high… GT experienced another haircut last week, falling 20%, and today hit a new high…
Comment by Jon - BMR — September 13, 2017 @ 2:47 pm
That darn PP got to close. And then we need a catalyst to drive it back up. Question is, will we get that catalyst?
Comment by Dan1 — September 13, 2017 @ 2:48 pm
I wouldn’t read too much into what Clive Maund said… it was strictly a technical call. Nothing to do with fundamentals. I am a subscriber of his newsletter as well and I didn’t sell a share today.
Comment by Weatheritout80 — September 13, 2017 @ 2:50 pm
Phil, you can have “price protection” on a PP, but that’s not worth the paper it’s written on when it’s the Exchange’s ball, bat and game…the order of things should be official closing of the PP followed by more news…the Exchange may very well decide to re-price the PP higher…that won’t deter the placees in this case IMHO…
Comment by Jon - BMR — September 13, 2017 @ 2:53 pm
Jon, what to you ultimately expect from GGI on Nickel Mountain?
Comment by Seamus — September 13, 2017 @ 3:02 pm
A reprice to .91c or thereabouts would be reasonable on the GGI PP given thats where the stock closed after the news of the first hole. Such things wouldn’t surprise me but they have to redo all that paperwork which has caused this delay. I would also assume they are drilling way deeper and hit something which is why the delay on hole 2. Its frustrating but I think our patience can pay off in the next few days and would be well rewarded. Why drill deeper and waste time unless there was something to keep drilling into 🙂
Comment by large — September 13, 2017 @ 3:21 pm
Weatheritout80- did CM put out a buy recommendation today? Just looking for an answer to a rumor.
Comment by Johnz — September 13, 2017 @ 3:22 pm
Nevermind…I read a bit more carefully.
Comment by Johnz — September 13, 2017 @ 3:23 pm
Seamus, what really sums things up from my perspective are Lightfoot’s words in the first NR. So I’ve resisted the temptation to sell, despite the 10-fold move, though everyone’s personal situation is different and I can understand how some subscribers or investors would want to lock in some profits on a move of that proportion. That’s what makes a market.
Comment by Jon - BMR — September 13, 2017 @ 3:45 pm
CEM, hit new high of 35 cents today and closed at .31. In 4 sessions beginning Aug. 18 pulled back nearly 30% to 22 cents, so just like GGI and GTT a discovery situation where volatility is the norm…understanding and dealing with that reality is hugely important for junior resource investors…you either sit through it or you try to trade through it, perhaps maintaining a core position while also utilizing a trading position…
Comment by Jon - BMR — September 13, 2017 @ 4:01 pm
Jon that recommendation you issued to your subscribers last ggi alert. Still stand by that?
Comment by Dan1 — September 13, 2017 @ 4:04 pm
Absolutely, Dan1, today wouldn’t change that at all.
Comment by Jon - BMR — September 13, 2017 @ 4:07 pm
Thanks Jon! All I need to know.
Comment by Dan1 — September 13, 2017 @ 4:13 pm
Patrick Re GGI…not holding out for the TP of $5-$7 ?
Comment by DavidW — September 13, 2017 @ 4:24 pm
Jon, after the PP for GGI finally closes is that when you expect the next bit of news from Steve.
Comment by pole — September 13, 2017 @ 4:46 pm
Having a crystal ball would have put 40K into my TFSA in one day… fack… anyone know where I can get one!!???? damn wish I had gotten the memo!!
as the saying goes.. thats the game… some dont play it others do… but not me.. I am holding strong for the drill results.. and a change from a momentum play to a value play..
It will come!
Comment by Jeremy — September 13, 2017 @ 4:48 pm
Right on Jeremy!!
Comment by Gregh — September 13, 2017 @ 6:44 pm
we are hopeful GregH!!!!!
Comment by Jeremy — September 13, 2017 @ 7:23 pm
Jon
One last question if you can answer it if not that’s fine
Was wondering if Lightfoot, Makela and Goldie are all on site at Nickel Mountain ?
Thanks
Comment by Gregh — September 13, 2017 @ 8:08 pm
Jon if you aren’t selling a single share then either am I
Comment by Sameer — September 13, 2017 @ 8:34 pm
What I’ve heard, Greg, is that they’ve now got a team of a couple of dozen on site, double the original size, and I know Makela as the VP-Exploration has been there the entire time; certain personnel will cycle in and out for occasional breaks. They announced Sept. 1 they were “accelerating” their program and that’s obviously what they’ve done.
Evening Alert with updates on 3 situations around 11:00 pm Pacific.
Comment by Jon - BMR — September 13, 2017 @ 9:44 pm
Wow Jon
That is very encouraging to hear , a couple of dozen geos love to be a fly on the wall in that tent…
Thanks Jon
Comment by GREGH — September 13, 2017 @ 10:29 pm
Looks like $1.10 on the open for ggi. Hope we get some news soon or this will trade right back down
Comment by Matt — September 14, 2017 @ 6:15 am
It’s obvious why that’s occurring, Matt, and it’s not because GGI needs news…pros are playing games ahead of PP closing…
Comment by Jon - BMR — September 14, 2017 @ 6:21 am
Jon, the NR stated news on the pp on or before the 15th. Do you think it will go beyond the 15th?
Comment by Dan1 — September 14, 2017 @ 6:37 am
It’s a fully subscribed PP ready to close, Dan1. Totally up to the Exchange now on precise timing. Games going on.
Comment by Jon - BMR — September 14, 2017 @ 6:48 am
A stock goes up 10 fold in 6 weeks then pulls back 30% and everyone is clamoring for information. Stocks fluctuate…it’s called trading! GGI could go back to 80 cents and the chart remain perfectly intact. Seeking the “reason” for the movement on a daily basis is amateurish. This is all very normal action after a stock goes up so much in a short period of time…
Comment by Eric — September 14, 2017 @ 8:45 am