Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,285 and $1,294 so far today…as of 7:00 am Pacific, the yellow metal has bounced off its low and is off $1 an ounce at $1,289…Gold has been under pressure this week due to gains in the greenback and a jump in U.S. 10-year Treasury yields to 7-year highs…Silver has recovered 6 cents to $16.42…Nickel remains robust, up 10 cents to $6.63…Copper has added a penny to $3.09, Zinc is flat at $1.38 while Cobalt is unchanged at $41.28…on the Oil front, WTIC has jumped 36 cents to $71.85 while Brent prices have hit $80 a barrel for the first time since November 2014…several banks in recent days have raised their Oil price forecasts, citing tighter supplies and strong demand…the U.S. Dollar Index is flat at 93.37…the euro remains under pressure, hovering near a 5-month low on concerns that political developments in Italy could cause wider disruption in the common currency bloc…
2. Peak Gold?…all major Gold deposits have already been found, according to Goldcorp (G, TSX) Chairman Ian Telfer who added that mining production can only go downhill from where it’s at now. “We’re right at peak Gold here,” Tefler told the Financial Post. “Gold produced from mines has gone up pretty steadily for 40 years. But this year or next it will start to go down, or it’s already going down.” The dwindling production will boost Gold’s prices in the long-run, says Telfer, who remains very bullish on the yellow metal despite this week’s drop below $1,300 an ounce…Telfer says he sees Gold prices heading all the way up to $1,500 or $1,600 an ounce by the end of this year…the argument of peak Gold has been gaining support within the mining industry…the World Gold Council (WGC) said in September that annual global Gold production will not be able to exceed current levels in the future…for Goldcorp, production has been on the decline since 2015…its output since then has fallen from 3.4 million ounces to 2.8 million (2016) and 2.5 million (2017)…notably, Goldcorp has taken more interest in the Eskay Camp for potential new Gold discoveries in that high-grade district, while the Golden Triangle’s best new Gold discovery is being watched carefully by some majors as GT Gold (GTT, TSX-V) commences drilling shortly at Saddle South – about a 2-hour drive north of the prolific Eskay Camp…
3. Marathon Gold (MOZ, TSX) has released an encouraging maiden Preliminary Economic Assessment (PEA) for its 100%-owned Valentine Lake Gold Camp Project (open-pit) in central Newfoundland…highlights include an after-tax NPV (5%) of $367 million (U.S.) and an after-tax IRR of 25%…average annual production would be 188,000 ounces per year with a 2.8-year after-tax payback period, an 11-year mine life and a life-of-mine average cash cost of $557 (U.S.)…pre-production capital would be $380 million (U.S.)…Phillip Walford, President and CEO of Marathon commented, “The results demonstrate that a very robust, low cost operation is possible. The study has also identified several opportunities to enhance the mine plan and economics of the project as well as to extend mine life. There is exploration potential for additional open-pit resources at the Sprite Deposit including the bog extension area, the Marathon deposit to the southwest, the Victory deposit and other mineralized zones such as the Frank zone and the Rainbow zone. There is also a large underground resource at the Marathon deposit that is not at present drilled off in sufficient detail to develop into a mine plan. Additional drilling in 2018 is planned to further define this underground resource in time for the next economic study. The cost of finding a new ounce of Gold on the property remains at $10 per new ounce so our exploration program continues to be highly cost-effective.” MOZ is up 6 cents at $1.09 through the first 30 minutes of trading…
4. “I’m ready and prepared to turn off the taps,” says Alberta Premier Rachel Notley…Alberta has passed landmark legislation giving it sweeping powers to intervene in Oil and gas exports that could result in punitive price spikes in British Columbia in the dispute over the Trans Mountain pipeline expansion. “Albertans, British Columbians and all Canadians should understand that if the path forward for the pipeline through B.C. is not settled soon, I’m ready and prepared to turn off the taps.” The comments are the most direct threat Notley has made regarding the province’s new powers to cut off all Oil shipments to B.C. in light of the Horgan-Weaver (Green Monster) illegal, unconstitutional obstruction that the federal government has so far done nothing about…all export pipelines leaving Alberta are full and that has resulted in Canadian Oil being heavily discounted relative to U.S. and global Oil benchmarks…if Alberta does turn off the taps, the result would be an immediate increase of 30 to 45 cents per litre in Vancouver, according to GasBuddy senior analyst Dan McTeague…the current average wholesale price of gasoline in the Vancouver area is $1.56 per litre, the highest in the country. “The numbers clearly show that the market is extremely sensitive to these kinds of disruptions,” McTeague said, noting the existing Trans Mountain pipeline and refineries in Edmonton currently supply most of the Oil used in Vancouver and in cities like Kamloops and Kelowna…the Kinder Morgan pipeline expansion has received all necessary approvals, and even public opinion polls show a strong majority of B.C. voters support the project…yet, the radical new NDP-Green coalition, with a razor-thin majority in the B.C. legislature, remains glued to climate change extremism and insists on playing politics by courting its urban base…
5. The Dow has retreated 70 points through the first 30 minutes of trading…Walmart (WMT, NYSE) reported fiscal Q1 earnings this morning that beat expectations on the top and bottom lines, as its e-commerce business rebounded (U.S. online sales grew 33%)…Tesla (TSLA, NASDAQ) may require as much as $10 billion in additional capital by 2020 to fund the company’s operations, according to Goldman Sachs which adds, “We see several options available to the company to refinance maturing debt and raise incremental funds, which should allow Tesla to fund its growth targets”…in Toronto, the TSX is up 55 points while the Venture is off 1 point at 781…AnalytixInsight (ALY, TSX-V) is up another 2 cents to 50 cents in early trading after a significant jump yesterday on news that the company has added Thomson Reuters as a content distributor…
6. Drill result of the day goes to Wesdome Mining (WDO, TSX) which cut 77.4 g/t Au over 14.4 m (10.8 m true width) underground at the Kienna Deep A zone at its 100%-owned Kienna mine complex in Val d’Or…recent drilling has extended the known mineralization at least 50 m down plunge, and confirms the presence of 3 high-grade lenses…drilling continues with 3 rigs…a total of 20 holes comprising nearly 7,000 m have been completed to date at the A zone…Wesdome will continue to define the extent and geometry of Gold mineralization in multiple areas in advance of an updated resource estimate by the end of the year…Wesdome currently has $26 million in cash and recorded net income of $2.9 million (2 cents per share) in Q1…the stock is up 7 cents at $1.95 as of 7:00 am Pacific…
7. Aphria (APH, TSX) and Great North Distributors, a wholly-owned Canadian subsidiary of Southern Glazer’s Wine & Spirits dedicated to the representation of cannabis products, have signed an agreement for Great North Distributors to serve as exclusive manufacturer’s representative for Aphria’s adult-use cannabis products throughout Canada, following the legalization of recreational cannabis for adult-use anticipated later this year…the first-of-its kind deal gives Aphria 100% coverage of all cannabis retailers, whether provincially or privately operated, across Canada from the first day of legal adult-use sales. “With this agreement, Aphria has established an unparalleled sales network and will hit the ground running from the very first day of legal adult-use sales,” stated Jakob Ripshtein, chief commercial officer of Aphria. “Great North Distributors provides us with an experienced, dedicated team with a proven track record of driving sales and exceptional performance across all provinces. This deal will ensure that Aphria’s brands and products are proudly represented by cannabis retailers throughout the country.”
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Comment by flyinthruu — May 17, 2018 @ 7:36 am
Hopefully we will be hearing from Frank about plans moving forward regarding CCW. Nice move last week. Seems to be resistance in the 30-32 cent range. 2nd half of May is here. ??
Comment by Tycoon777 — May 17, 2018 @ 8:04 am
Great advice from BMR/Jon ” stop looking at it “
Comment by DavidW — May 17, 2018 @ 9:00 am
Regarding both GGM and CCW, do you have any thoughts as to what the management (Mr. Basa) of these companies needs to do to unlock some shareholder value? How is GGM’s market cap so small?
Comment by mike — May 17, 2018 @ 12:42 pm
What a snoozer of a market day…
Comment by flyinthruu — May 17, 2018 @ 12:47 pm
With regard to CCW, mike, it’s all about ramping up underground operations and proceeding to drilling – that’s what will unlock shareholder value because there’s no company in the Cobalt Camp better positioned than CCW with its underground access. They’ve been slower than expected in proceeding to that stage – doing it smartly and cost effectively has taken time to implement – but I do believe it’ll all start unfolding during this 2nd half of May. Then watch this stock fly because underground introduces a whole new dynamic to CCW.
Comment by Jon - BMR — May 17, 2018 @ 6:24 pm
Great ggi news today on Nickel Mountain!
By the way, do you have info re Palm Springs Property?
Comment by Donald — May 18, 2018 @ 5:18 am
Big week for Nickel, as high as $6.73 this morning…
Comment by Jon - BMR — May 18, 2018 @ 5:52 am
Mr. Steve Regoci reports
GARIBALDI GEARS UP FOR DRILLING AT NICKEL MOUNTAIN
Garibaldi Resources Corp. has provided the following exploration update as additional crews fill an expanded 40-person camp near the Eskay Creek mine to launch the most extensive drill campaign in company history at the nickel-copper-rich Nickel Mountain massive sulphide discovery.
Highlights:
– In support of drilling, which will commence in approximately 7 days, state-of-the-art geophysics utilizing HeliSam hybrid ground-air technology is now being carried out over a broad area in all directions surrounding the high-grade discovery zone;
– This cutting edge survey by Discovery Geophysics International (HeliSam) will provide valuable new information in real time for precise drill hole locations within the HC-1 conductor target area interpreted by renowned Sudbury geophysicist Alan King as drilling steps out initially to the south of EL-17-14 (see January 25, 2018 news release);
– Preliminary results from the VTEM survey completed during Q1 have extended the Nickel Mountain trend of conductors by 3.5 km to the northeast while also revealing multiple new gold-VMS target areas on the Palm Springs Property, part of Garibaldi’s 200 sq. km Eskay Camp land package.
Steve Regoci, Garibaldi President and CEO, commented: “Given ‘proof of concept’ achieved with geophysics at Nickel Mountain last year, which gave us this game-changing high-grade nickel sulphide discovery in the Eskay Camp, we have ‘doubled down’ on the best technology to efficiently target potential new massive sulphide zones.
“Supported by a treasury currently at $26 million, the Garibaldi base camp plus our operations at the top of Nickel Mountain have been expanded and upgraded to allow for drilling well into the winter season,” Regoci concluded.
Nickel Mountain Discovery Draws Industry Leading Geophysics
Industry leader Lamontagne Geophysics Ltd. is well known for its important contributions to new nickel sulphide discoveries in the Sudbury basin through its deep-borehole electromagnetic technology. At Nickel Mountain, Lamontagne will provide follow-up drill hole surveys for Garibaldi’s 2018 drill program with its proprietary BHEM tools to complement the Discovery Geophysics International HeliSam survey now underway to detect additional conductive anomalies at Nickel Mountain.
Discovery owns the exclusive North American rights to HeliSam hybrid ground-air technology which is ideally suited to locate conductors potentially representing massive sulphides in rugged terrain such as the Eskay Camp. Discovery will deploy approximately 18 kilometers of heavy gauge, insulated copper wire configured in a number of ground loops for deep and rapid airborne exploration using a helicopter towed high sensitivity B-field receiver system.
It should be noted that geophysical targets are interpretations subject to limitations on data and modeling. While geophysics has been effective at Nickel Mountain, geophysical targets should only be viewed as guides to drilling and sampling.
Everett Makela, Garibaldi VP Exploration Canada, stated: “Nickel Mountain is all about the ‘science of discovery’. Cutting edge technology and innovative new exploration concepts have helped reveal a unique 7-suite mineral system with top tier nickel grades in the heart of a producing gold camp. Our team is exceptionally upbeat and driven as we prepare to build out the Nickel Mountain discovery.”
Eskay Camp Area Map
To view the location of the E&L Project, Garibaldi’s other large landholdings in the Eskay Camp, and properties of all other companies in this prolific district, please visit GGI’s web site or the following URL:
http://www.garibaldiresources.com/i/photos/king/GGI-Aug-25-Eskay-Camp-Area-Map.jpg
Comment by John - BMR — May 18, 2018 @ 6:10 am
Is it correct that CLM are raising more money through a PP. Why now before the VTEM results. Surely if the results are good they should wait…do you have any insights?
Comment by Sulinder — May 18, 2018 @ 6:46 am
Palm Springs –
Maybe a whole new ball game>
from may 18 2016 news release:
…”Palm Springs Property
Much of the Palm Springs Property has been impacted by receding glaciers, exposing previously hidden favorable volcano-sedimentary stratigraphy similar to Eskay Creek. Historic surface sampling by Noranda returned high-grade gold and copper values and revealed unique Eskay Creek-type pathfinder minerals in trenches and outcrops below the Palm Springs showing. Mr. John Buckle, P.Geo., P.Geoph., who has been responsible for the discovery of several mineral deposits, will lead the upcoming exploration effort at Palm Springs.
Steve Regoci, Garibaldi President and CEO, commented: “We’ve been in this world class camp since 2009 and carefully deliberated the best areas to target for expansion given the recent infrastructure improvements and new surface discoveries brought on by significant glacial retreat. It promises to be a very busy and exciting summer in this district given multiple upcoming drill programs, construction of the Pretium mine and continued advancement of the Seabridge KSM Project. With the expansion of the King, and the acquisition of the Palm Springs Property which has many Eskay Creek characteristics, we believe we have strategically positioned our shareholders to capture maximum value from our upcoming exploration programs and the broader regional dynamics.”….
Comment by donald — May 18, 2018 @ 6:55 am
VERY quiet with AIS and GTT recently…surprised not as much excitement with Chiron yet but maybe I shouldn’t be….market hasn’t really factored it in.
Comment by flyinthruu — May 18, 2018 @ 7:10 am
Well, that’s interesting, Sulinder…I can’t see how they’re not going to have excellent VTEM results, so I take the opposite view on this and consider this financing to be very strategic in nature and probably instigated by 1 or 2 major investors…could be a bigger picture at play here as well…
Comment by Jon - BMR — May 18, 2018 @ 7:17 am
The Palm Springs Property is fascinating, Donald, but GGI’s focus is entirely on Nickel Mountain…however, I suspect Regoci will be getting a few phone calls – if he hasn’t already – about companies interested in optioning the property…interesting how, in rather subtle fashion, he slipped in that message on Palm Springs…
Nickel Mountain trend now appears to be in excess of 10 km long…
Comment by Jon - BMR — May 18, 2018 @ 7:20 am
Hope you’re right Jon,if memory serves I think you have quite a big stake in this too.
Comment by Sulinder — May 18, 2018 @ 7:33 am
PSP. There is a work commit due possibly? Last I saw it was $750k I thought for this season. Different crews I would think as well. Shouldn’t be hard for them to let er rip as a sidebar to the E+L
Comment by David — May 18, 2018 @ 10:41 am