Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information…
1. After 3 straight weekly gains that brought Gold to a 2-and-a-half month high, bullion is off $6 an ounce at $1,221 as of 7:00 am Pacific as new support at $1,220 is tested…Silver is down 8 cents at $14.52…base metals are steady with Copper, Nickel and Zinc unchanged at $2.82, $5.62 and $1.22, respectively…Crude Oil has eased off another 73 cents to $68.39 a barrel while the U.S. Dollar Index has edged higher to 95.73 as it attempts once again to overcome resistance around 95.50…Poland continues to purchase Gold and add to its reserves…the nation’s central bank started buying Gold over the summer with a purchase of 9 tons over the course of July and August…in September its Gold reserves rose to 3.75 million ounces, up from 3.61 million ounces a month earlier, representing a 3rd straight month of buying…Kazakhstan also boosted its reserves September to 10.77 million ounces, up from 10.65 million ounces the month prior…meanwhile, Hungary’s central bank unexpectedly boosted its Gold reserves tenfold, purchasing over 28 tons and bringing total holdings to 31.5 tons…investors will get their first look at U.S. growth for the 3rd quarter on Friday…following the robust 4.2% expansion of the 2nd quarter, growth is forecast to have moderated to 3.3% in Q3, which still represents above trend growth for the U.S. economy…
2. Copper prices climbed to 1-week highs early today on expectations of stronger demand after authorities in top consumer China said they would take measures aimed at bolstering growth and liquidity..China’s central bank governor said last week it would roll out targeted measures to help ease company financing problems and encourage commercial banks to boost lending to private firms…“The news from China is encouraging for metals,” said Eugen Weinberg, analyst at Commerzbank…“Measures that add liquidity will help in the short to medium term, but it won’t solve the problem of indebtedness, a problem for some years now”…China is “multiplying its efforts to support the economy, and in particular, the infrastructure sector amid domestic and international headwinds,” such as the trade dispute with the United States and high debt levels,research house Fitch Solutions said in a note…the country’s demand for Copper, an economic bellwether, “will improve over the coming months as property completions and grid investment picks up and demand from the autos and consumer sectors remain buoyant,” added the firm…
3. Royal Nickel (RNX, TSX) announced this morning that the first mobile diamond drill has arrived at site and underground drill crews have started the Gold exploration program at the company’s Beta Hunt mine near Kambalda, Western Australia…the objective of the program is to expand upon the Father’s Day vein high-grade Gold discovery at the A zone area of the Beta Hunt mine…drilling will step out both along strike and dip both above and below the known discovery area following the pyritic sediment horizon in the Lunnon basalt…understanding the depositional model for this new Gold mineralization provides potential for future exploration and discovery of additional high-grade Gold material at the sediment contact, which has previously been intersected along two of the main Gold-bearing shears at A zone and Western Flanks located at the Beta Hunt mine….“With the arrival of the first drill at site during the past week, exploration activities will begin to ramp up as part of an aggressive exploration campaign. The geology team is continuing to advance their work on understanding the sediment structures with the potential for additional high-grade coarse Gold. The high-grade Gold potential of the mine remains largely unexplored,” stated President and CEO Mark Selby…
4. Balmoral Resources (BAR, TSX) announced this morning that it has commenced a borehole EM survey, managed by Discovery International Geophysics, on a series of recently completed and ongoing drill holes which are targeting Nickel-Copper-Cobalt-Platinum-Palladium mineralization within the Grasset Ultramafic Complex (“GUC”) on the company’s 100%-owned Grasset and Fenelon Properties in Quebec…all 4 holes completed to date, plus each of the 2 holes currently in progress, have successfully intersected sulphide mineralization within the GUC…the BHEM system will be used to guide follow-up drilling in each of the 2 areas currently being explored…in addition to surveying the recently completed and ongoing drill holes, the BHEM system will probe several historic holes on the properties which have not been previously surveyed…to the south, drilling is targeting vertical and lateral expansions of the Grasset system in the footwall to the H3 Zone of the Grasset deposit…previous BHEM work in and around the deposit identified a series of conductive plates which generally correlate with the highest grade portions of the deposit…the second drill is currently testing shallow targets in an area approximately 8 km northwest of the deposit, where 2015 drilling by Balmoral discovered Nickel sulphide mineralization over significant widths within a high-level intrusive portion of the GUC…drilling of targets within the GUC is expected to continue into November…
5. Late to the party – Colorado Resources (CXO, TSX-V) announced this morning that it has (finally) acquired drill permits for its 100%-owned Kinaskan-Castle Property immediately adjacent to GT Gold’s (GTT, TSX-V) Tatogga Property in northwest B.C. where world class Gold-Copper porphyry drill results have recently been reported for Saddle North…“We are preparing to initiate our exploration program during the 2019 field season,” stated CEO Robert Shaw, which begs the question – what has he been doing for the past 8 months at the helm of Colorado besides driving the share price into the ditch?…this is the same President and CEO who stated in a September 14 news release, “We believe that the current trading price of Colorado’s shares does not reflect the value of our mineral exploration assets”…in that release, Shaw also stated the company was borrowing half a million dollars from Goldcorp (G, TSX), a major CXO shareholder, for working capital purposes, at an 8% annual interest rate with CXO also throwing in bonus shares and securing the loan against its KSP, Kinaskan-Castle and North ROK properties…incompetence at the highest level of many Venture-listed companies, with Colorado serving as an excellent example, helps explain the current state of the junior resource sector…
6. The Dow has retreated 96 points as of 7:00 am Pacific, though the NASDAQ is in positive territory…the corporate earnings season is off to a strong start…more than 15% of S&P 500 companies have reported through last Friday and 83% have topped analysts’ expectations, according to FactSet…in Toronto, the TSX has slipped 96 points…the 62 companies that make up the Solactive North American Marijuana Index traded at an average of almost 84 times sales entering today’s trading…by contrast, the average company in the S&P/TSX Composite trades at a little less than 3 x sales…the Venture is 10 points lower at 672 with cannabis stocks under pressure…Westhaven Resources (WHN, TSX-V), one of last week’s big winners, is unchanged at 76 cents after the first 30 minutes of trading while GT Gold (GTT, TSX-V) has added 2 pennies to $1.75…
7. White Metal Resources (WHM, TSX-V) is under pressure this morning after announcing that the majority of the 689 channel samples from its recently completed surface program at the Gunners Cove Gold Property in northwestern Newfoundland have returned below detection Gold with only a few anomalous Gold concentrations ranging from 5 to 209 ppb…“Although disappointing as a first pass of detailed channel sampling, management’s technical team remains encouraged about the Property and is committed to continued exploration and examining alternatives to furthering development at Gunners Cove,” this morning’s news stated….President and CEO Jean-Pierre Colin noted that selected detailed Gold zone coverage by this first channel sampling program examined a very small percentage of the project area, having an initial look at 5 of the 16 Gold zones discovered to date by prospecting…there is still much to learn about the geological environment of the property – defining, interpreting, and targeting will take considerable time and effort…Gunners Cove is an unexplored Gold system that has been traced intermittently for approximately 18 km along strike (north-south) and from 1.3 to 3 km in width (east-west)…
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Further to the WHM news release, does BMR recommend it’s subscribers to sell their position or hold on for future good news?
Comment by Raffi14 — October 22, 2018 @ 8:07 am
Daniel has a better handle on this play than I do, Raffi14, but I certainly wouldn’t be selling anywhere near today’s levels…
Comment by Jon - BMR — October 22, 2018 @ 8:21 am
I’m out of WHM. Can’t win them all and this will take a long time to recover. Better to move on to something with momentum like BAR, CCW or even SAE which I don’t own.
Comment by Patrick — October 22, 2018 @ 8:33 am
Jon. Benge Galliger, on BNN just now, gave his opinion of GGI and was not very positive about it. Care to comment? Richard
Comment by richard — October 22, 2018 @ 9:43 am
Blew out my position in WHM too. Unfortunately dead money for the foreseeable future and will be under pressure with tax loss selling. Like Patrick said not all are winners. Picked up another 50000 shares of GGI.
Comment by Weatheritout80 — October 22, 2018 @ 1:29 pm
That Benge Galliger obviously has not done any DD on GGI or he would not be commenting on dilution, funny how Irwins comments come out today and this Galliger on BNN and over the weekend this Tomszabo guy was all over CEO.ca but he got banned for spewing false info over and over. Share price down today, coincidence?
Comment by gregh — October 22, 2018 @ 3:15 pm
Yeah and who says there no conspiracy going on here, daaa!! They want your shares.
Comment by Laddy — October 22, 2018 @ 4:01 pm
There does seem to be an entity employing these people to keep GGI’s share price down. Bob Moriarty said recently that GGI is still drilling the same discovery as the 1970’s. This is similar nonsense to the dilution nonsense that Calliger has come out with and any tiny amount of research would easily disprove either remark. It seems to me that both of these men and Brent Cook have been employed by some entity to keep GGI’s SP low. Probably the same entity that bought out Irwin’s shares?? When you are dealing with a potential Norilsk type discovery I suppose it is no surprise to see this type of behavour and to be aware of the motives of the people behind it.
Comment by Patrick — October 23, 2018 @ 4:50 am