Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has pushed back above $1,300 after the White House this morning called off the June summit with North Korea…“Based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have this long-planned meeting,” President Trump wrote in a letter to Kim Jong Un today. “Therefore, please let this letter serve to represent that the Singapore summit, for the good of both parties, but to the detriment of the world, will not take place.” A close tomorrow above $1,300 would confirm the recent bullish formation on the charts after the yellow metal tested very strong support around $1,280…Silver has jumped 16 cents to $16.61…Copper, Nickel and Zinc are all flat at $3.09, $6.61 and $1.37, respectively, while Cobalt has jumped 50 cents to $41.73…Crude Oil has eased off $1.16 a barrel to $70.68 while the U.S. Dollar Index has retreated more than one-tenth of a point to 93.75…
2. Oil prices recorded their largest 1-day drop in 2 weeks today, with expectations building that OPEC may agree to increase production due to concerns about dwindling supplies from Venezuela and Iran…an unexpected jump in Crude Oil inventories in the U.S. also weighed on prices, driving the spread between Brent Crude and West Texas Intermediate to its widest in 3 years…however, technical support for WTI is very strong in the upper $60’s and the bullish trend points to significantly higher prices in 2018…this is consistent with a large drop in global inventories and continued robust demand…
3. Canada Cobalt (CCW, TSX-V) is about to become only the second junior this year in North America to drill for high-grade Cobalt underground…the first one, US Cobalt (USCO, TSX-V), got bought out in an all-stock deal valued at more than $150 million in March, even before first results were available…CCW’s Castle mine in the Northern Ontario Cobalt Camp features 11 levels and 18 km of underground workings and was last mined for exceptionally high-grade Silver in the 1980’s by Agnico Eagle (AEM, TSX)…abundant Cobalt was left behind, and CCW crews are now underground on the first level preparing to drill…sampling has returned impressive Cobalt values, well-mineralized Cobalt was left behind in the stopes above the first level as confirmed in news yesterday, and multiple vein structures are being targeted…a high-performance Scooptram, the first one used in the Cobalt Camp, can haul out material at a rate of 2 tonnes every 6 minutes…in addition, CCW’s proprietary Re-2OX process is turning Cobalt concentrate into Cobalt sulfate products for evaluation by Asian battery sector clients that provided CCW with specifications…CCW is up 2 pennies at 34 cents as of 7:00 am Pacific…
4. Corvus Gold (KOR, TSX), one of the top-performing Gold stocks this year, has drilled 24.4 m grading 3.1 g/t Au and 22.9 m grading 1.48 g/t in western step-out holes at its Mother Lode deposit in Nevada…the company will continue with its resource definition drill program through the summer into the start of a 30,000 m Phase 3 program expected to be launched in September. Jeff Pontius, President and CEO of Corvus, stated, “The recent western step-out results in conjunction with the Gold mineralization at Flatiron have been encouraging and support our plans for the Phase 3 drilling program of approximately 30,000 m to address an expansion of the Mother Lode deposit to the west, east, north and at depth. The Phase 3 program is scheduled to begin in September with the addition of 2 more drill rigs. The goal of the program is to evaluate our expanded deposit footprint of 800 by 500 m with ~30 m drill centers to a nominal depth of about 300 m. It is an exciting time with the Mother Lode exploration program as every round of drill results received to date has expanded our vision of the deposit and its potential.”
5. The Dow has slipped 161 points as of 7:00 am Pacific with the North Korea situation causing some anxiety…in addition, traders got nervous on the news that the U.S. Department of Commerce has started an investigation into automobile imports to determine whether they “threaten to impair the national security” of the United States…in Toronto, the TSX is unchanged at 16,133 while the Venture is flat at 781…China’s ambassador to Canada has said Canada is being too “sensitive” about Chinese capital flows into Canada, and likened the national security review to “looney” behaviour…yesterday, the federal government rejected the $1.5 billion sale of Aecon Group Inc. to a state-backed Chinese buyer, effectively bowing to fierce opposition to the deal as Canada navigates sensitive trade talks with the Trump administration…Datametrex (DM, TSX) announced this morning that it has secured and is now delivering on an initial contract for approximately $670,000 CDN with the retail division of the Lotte Group…Lotte is the 5th largest conglomerate in Korea with annual revenues of approximately $60 billion (U.S.) consisting of over 90 business divisions…it’s engaged in diverse industries that include hotels, resorts, fast food, beverages, retail, financial services, heavy chemicals, electronics, IT, construction, publishing, confectionary products, and entertainment…DM is up half a penny in early trading at 9.5 cents…
6. Alamos Gold (AGI, TSX) has released impressive new results from the continuing surface and underground exploration drilling programs at the Island Gold mine in northern Ontario…early results have been successful in extending high-grade mineralization along strike and down-plunge from existing mineral reserves and resources across 3 main areas of focus: the Main Extension, the Eastern Extension, and the Western Extension…highlights include 32 g/t over 4 m (Main Extension step-out), 71.3 g/t over 4.9 m and 44.3 g/t Au over 6 m (Eastern Extension, outside of Inferred resources), and 31.5 g/t Au over 5 m (Western Extension, outside of resources)…meanwhile, infill drilling has returned multiple high-grade intersections, confirming continuity of mineralization which is expected to support mineral resource conversion…highlights include 128 g/t over 6.4 m, 58.8 g/t over 8.8 m, and 134.4 g/t over 3 m…the rich Island Gold mine will be a major driver for AGI in the years ahead as production continues to ramp up…AGI has climbed 37 cents to $7.10 as of 7:00 am Pacific…
7. Mineral Mountain Resources (MMV, TSX-V) announced this morning that it will resume drilling the remaining 9 holes of a 12-hole program within the next week…3 diamond drill holes totaling 1,322 m have been completed on the company’s Standby mine target in the Rochford district (Black Hills of South Dakota)…results were reported May 3, with the stock falling from 60 cents to support just above 30 cents…however, information from the initial holes does provide a strong vector toward higher-grade Gold mineralization down plunge of the section that was drilled…the company plans to utilize a state-of-the art Borehole EM Survey (TDEM-Time Domain EM) designed to locate the highest conductivity zones in the footwall and the hanging wall rocks to the iron formation, along the major shear structures, to help target its future drilling structurally low in the iron formation…at Homestake, this position is where many of the ore bodies are spatially located…this cutting edge survey will be carried out by Discovery Geophysics International, which has also been doing work at Nickel Mountain, and will be initiated after the completion of the next drill hole…
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