Check back later today for Daniel’s Den and visit the comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,301 and $1,306 so far today, shrugging off a 3-year high in the Empire State Manufacturing Survey…as of 7:00 am Pacific, bullion is steady at $1,303…Silver is also unchanged at $17.41…both metals are hovering around 3-week highs after strong moves Friday…Copper and Nickel continue to surge, aided by additional encouraging economic data out of China over the weekend…Copper has jumped 12 cents to $3.22 while Nickel is up 9 cents to $5.37…Crude Oil has added to last week’s gains as Iraqi forces have moved into the Oil-rich city of Kirkuk, taking territory from the Kurdish Regional Government…the U.S. Dollar Index is up modestly at 93.22…
2. Nothing like a flare-up in the Middle East to give to Oil a good kick to the upside…Iraq launched an operation in the multi-ethnic Kiruk region yesterday as the crisis between Baghdad and the Kurdish Regional Government (KRG) escalated…tensions have been building since the KRG voted for independence in a September 25 referendum…today, Iraqi Kurdistan stopped operations at the Bai Hasan and Avana Oil fields, setting up an imminent production loss of around 350,000 barrels per day according to Reuters…until recently, Iraqi forces and Kurdish fighters had cooperated against ISIS but as the threat posed by the terror group recedes, the disparate forces that came together to fight it are turning on each other…
3. The Dow is up 63 points as of 7:00 am Pacific for a promising start to a new trading week…the TSX has gained 36 points while the Venture, on the cusp of an important breakout, is up a point at 798…Garibaldi Resources (GGI, TSX-V), which gapped up and zoomed as high as $4.20 intra-day Friday on a bullish exploration update from Nickel Mountain, has eased off for the first time in 3 sessions, down 15 cents at $3.42 through the first 30 minutes of trading…remarkably, GGI has hit on each of its first 12 drill holes at Nickel Mountain (broad sections of disseminated to blebby net-textured sulphides) with initial assays pending…the high tenor of the sulphide (4.8% to 8% Ni and 2.1% to 10.9% Cu) has been confirmed by XRF analysis…abundant pentlandite in the drill core has striking textural features which further supports the potential for exceptional grades and easy processing…drilling of this first-ever Nickel-Copper-rich sulphide discovery in northwest British Columbia continues with 2 rigs as geologists vector in toward a massive sulphide core…HIVE Blockchain Technologies (HIVE, TSX-V) is on the move again this morning after surging $1 last week…Datametrex IA (DM, TSX-V) is also one of the Venture’s early volume leaders, up half a penny at 13 cents, while Calyx Bio-Venture (CYX, TSX-V) continues to firm…Cornerstone Metals (CCC, TSX-V), an emerging Vanadium play, has hit a new high of 27 cents…
4. GT Gold (GTT, TSX-V), restrained technically by a now declining 20-day SMA since late September, is under pressure in early trading after releasing more drill results from its Saddle South Gold discovery near Iskut…the strike length at Saddle South has increased to 1,000 m while Saddle North has returned some encouraging intercepts, enhancing the high-grade epithermal potential and suggesting discovery potential for a large-scale Copper-Gold porphyry…however, GTT has retreated 41 cents to $1.44 through the first 30 minutes of trading…
5. MGX Minerals (XMG, CSE) and engineering partner PurLucid Treatment Solutions have reported an advancement in Magnesium extraction…the pre-treatment removed all of the 76,000 milligrams per litre of Magnesium, reducing the post-treatment concentration to non-detect levels (less than 1 mg/L) from Lithium brine bulk samples shipped from a U.S. site currently under evaluation. Jared Lazerson, MGX CEO, stated: “Magnesium in brine, often referred to as hardness in water, has traditionally been one of the major issues in processing of Lithium concentrate. The Lithium Magnesium ratio was traditionally one of the primary factors in consideration of the viability of Lithium brine projects. One of the major factors in development of South American brine sources was the relatively low Magnesium content. Alternatively, high Magnesium content brine sources have been slow to develop such as those in the United States, China and the Middle East for this reason. Removal of very high levels of Magnesium opens up a large number of global Lithium brine sources for consideration that were previously considered too high in Magnesium. This represents a triumph of technology over perceived resource quality, in particular, that the Magnesium has been extracted in a common form of widely used industrial mineral compound.”
6. Good news for Blind Creek Resources (BCK, TSX-V) – the company has received an amended permit from the provincial government that authorizes Blind Creek to conduct exploration, underground mining and on-site milling activities at its 100%-owned historic Engineer Gold mine property near Atlin…the company is awaiting exploration results from a recently completed geological mapping, sampling and MMI soil survey targeting additional narrow-vein high-grade and shear-hosted bulk tonnage Gold mineralization south of the Engineer and on the southern Wann claims…in addition, an updated NI-43–101 technical report on the Engineer Gold mine property will be released in the near-term…results will provide additional basis for a significant exploration and test-mining/milling program in 2018…BCK also owns a significant Zinc-Lead-Silver deposit in the Yukon where some work was carried out over the summer…
7. An Australian Cobalt company backed by Robert Friedland is eyeing a listing on the TSX...Clean TeQ Holdings, co-chaired by Friedland who owns a 16.5% interest as the company’s biggest shareholder, has a current market valuation of more than $700 million…Cobalt has been one of the star performers in the metals markets this year because of a combination of strong demand and tightening supply…Clean Teq is looking to follow the success of Cobalt 27 Capital (KBLT, TSX-V), a pure play on physical Cobalt, that raised $200 million CDN earlier this year in an offering on the Venture…
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Jon, if a strategic investor or company was to come in and acquire another 10% of GGI, do you think that maybe Steve would use the extra funds and consider a winter drilling program? I know that it would be extremely challenging but proving up more of Nickel Mtn would be fantastic. Just wondering what your thoughts were on this.
Comment by pole — October 16, 2017 @ 8:42 am
Jon just reading over the full XMG.c NR “Commercial offtake agreement status Lithium chloride recovered from brine has been tested and accepted for upgrade to lithium hydroxide based on previously shipped samples to MGX’s United Kingdom-based upgrader. Lithium hydroxide is the primary form of lithium used in lithium-ion batteries as an electrolyte. Additional samples were shipped this week to a major consumer of lithium feedstock for evaluation. Negotiations remain continuing for large volume offtake.”
Do you think this could be big winner going forward?
Comment by large — October 16, 2017 @ 9:42 am
Jon, seeing the GTT results out today very thin veins. My concern with GGI I believe they will hit high grade nickel and copper but it’s how many meters. Thanks for all the great updates! I’m hoping for atleast 30 – 40 meters at 2-4% nickel and 2% copper your thoughts?
Comment by steve — October 16, 2017 @ 11:20 am
Steve, the 2 intersections in EL-17-01 should answer that question for you…
Comment by Jon - BMR — October 16, 2017 @ 2:01 pm
Interesting trading in Datametrex (DM), it has traded over 14 million shares the last couple sessions but the price has barely moved despite not having a large float as insiders own about half of the 80 million shares outstanding. You would think at some point it would have to bust out if this volume continues or something is not right.
Comment by Danny — October 16, 2017 @ 2:01 pm
DM – Danny, I’m sure you are aware…. but for other readers, DM started trading on the Frankfurt exchange on Thursday last week. This may be some reason for the increased volume and liquidity. I hope the timing of the Frankfurt listing and the volume has some surprises in store. I’m encouraged by the higher lows.
Comment by Vepper — October 16, 2017 @ 2:37 pm
Hey guys, are you planning another interview with Makela?
Cheers
Comment by Seamus — October 16, 2017 @ 3:15 pm
Working on that, and a few other things, Seamus…
Comment by Jon - BMR — October 16, 2017 @ 3:18 pm
Hey Jon, do you have any plans for geologist, directors, advisory board members or CEO conversations within Metallis Resources?
Comment by Vepper — October 16, 2017 @ 3:39 pm
Vepper, thanks for the reply, was aware of that. I am guessing there is a PP coming up, hence the people selling to participate as they need 2.7 million to close the deal they made. If that’s the case then we could be in this range (.10 – .14) for a little while. If this volume continues then it will soak up this selling pretty quickly.
Comment by Danny — October 16, 2017 @ 4:09 pm
Danny, Agree on DM and thought it would have went by now with the volume. Looking at the chart a few more days getting squeezed into the .12 to .13 range forms the tip of the pennant/triangle formation and it should break to the up side.
Comment by DBReese — October 16, 2017 @ 4:32 pm
DBReese, thanks for the comment. I am thinking it’s a good time to accumulate in the .12 – .13 range and then have a little patience.
Comment by Danny — October 16, 2017 @ 5:27 pm
Garibaldi Resources arranges $10-million financing
2017-10-16 20:46 ET – News Release
Mr. Steve Regoci reports
GARIBALDI ARRANGES $10 MILLION FINANCING
Garibaldi Resources Corp. has arranged a non-brokered private placement to raise gross proceeds of up to $10-million. The exclusively hard-dollar financing at $3.15 per unit is being subscribed for by strategic investors and is expected to close shortly.
The company will issue a total of 3,174,604 units. Each common share unit at $3.15 comprises one common share in the capital of the company and one full non-transferable share purchase warrant. Each warrant is exercisable into one common share at a price of $4.50 for a period of two years.
All units from the private placement are subject to a four-month hold period from the date of issuance. The financing will include finder’s fee commissions on a portion of the placement and is subject to TSX Venture Exchange approval.
Proceeds from the financing will be used to further advance the company’s 100-per-cent-owned E&L Nickel Mountain project, other British Columbia properties, and the company’s gold and silver properties in Mexico.
Comment by diesel — October 16, 2017 @ 5:55 pm