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1. Gold has surged to a new 2-week high as it gains traction above $1,500…the yellow metal has traded between $1,502 and $1,515 so far today…as of 7:00 am Pacific, it’s up $9 an ounce at $1,509…Silver, a reliable leading indicator in a precious metals uptrend, was making noise earlier this week and has really caught fire today, exploding through a resistance band between $17.70 and $17.80 before cutting through $18 like a knife through butter…the metal is now up 49 cents at $18.27…$20 Silver is now not far off…a number of factors are driving Silver including an improved industrial demand outlook…many investors are also realizing they have been under-positioned in Silver relative to Gold…Palladium is holding above $1,750…Nickel is 5 cents lower at $7.57…Copper is up slightly at $2.65 while Zinc is unchanged at $1.15…Crude Oil has retreated 12 cents to $56.11 while the Dollar Index has added one-fifth of a point to 97.80…overseas, the European Central Bank has lowered its expectations for euro zone growth, predicting the rate will decline to 1.0% next year before rebounding modestly to 1.3% in 2021…inflation is expected to remain muted at 1.2% in 2020 and 1.4% in 2021…fresh U.S. economic data just out – consumer sentiment dipped slightly in October to 95.5, according to the University of Michigan’s Surveys of Consumers…that’s down from a preliminary reading of 96, but above a final September print of 93.2…
2. Voters in South America’s 2nd-largest country will head to the ballot box on Sunday, less than 3 months after a dress rehearsal for the vote set off a shockwave in financial markets…it is widely expected that Argentina’s President Mauricio Macri will be defeated by the opposition ticket of leftists Alberto Fernandez and ex-leader Cristina Fernandez de Kirchner…socialist policies and corruption were the genesis of today’s problems in Argentina – at present, inflation is running at an annual rate of 55%, the peso has plummeted, billions of dollars of foreign reserves have fled the country, the economy has been in a deep recession and the country has also had to delay payments on around $100 billion of local and foreign debt…
3. The political left in Canada seems to have no problem with the concept of surrendering this country’s sovereignty to foreign institutions…case in point yesterday when the B.C. provincial government introduced legislation, the first of its kind in North America (also advocated by Trudeau, not surprisingly), to bind the province to the United Nations Declaration on the Rights of Indigenous People which states that resource developments require the “free, prior and informed” consent of affected Indigenous peoples…the proposed law, Bill 41, drafted in consultation with Indigenous leaders, is meant to ensure that all provincial laws and policies align with “internationally recognized rights” of Indigenous people…Premier John Horgan stated, “I’m very excited about putting to rest the notion that there’s a veto involved here (over resource projects). “It’s about having certainty, and the first order of business is to ensure that the people who inhabit the lands and have inherent rights and title to those landscapes are full participants in a discussions about development”...the bill, per se, does not grant First Nations “veto power” over resource development, but does promise redress and restitution (not defined) when consent is not granted…in effect, however, First Nations will have “veto power” and some will attempt to use it…we’ll see how this process plays out (the Bill still has to be passed by the B.C. legislature) but we’ve seen through the pipeline fiasco that NDP Premier Horgan cannot be trusted…
4. The war against Alberta continues…does federal Green Party leader Elizabeth May want Canada to plunge into a constitutional crisis?…May says NDP Leader Jagmeet Singh should make cancelling the Trans Mountain pipeline expansion a condition for co-operating with the federal Liberal minority government…she says Singh would be exposed as “insincere” in his opposition to upgrading the pipeline if he does not use opposition to the project as a bargaining chip in talks with the government…“The NDP has a lot more power to stop the pipeline,” she said, adding the New Democrats should be prepared to use that power…Singh has declined to discuss his plans for talks with the Liberals on parliamentary co-operation…after the election, Singh continued to express opposition to TMX, but said it is too early to say what the NDP would want in exchange for supporting a Liberal minority government…Trudeau said this week that he wants to pipeline project to be completed as “quickly as possible”, but of course we’ve heard those words before – talk is cheap…May said the Trudeau government’s support for the pipeline expansion did not pay off with seats for the governing party…“Pandering to climate deniers is not a good strategy,” she said…May has it wrong – a majority of British Columbians and Canadians support the TMX…the Liberals’ clumsiness on this issue, their inability to push the project ahead swiftly and the fact they campaigned in Quebec against Western Canada’s Oil and gas industry, cost them seats in Manitoba, Saskatchewan, Alberta and British Columbia…
5. Teck Resources (TECK.B, TSX) plans to cut 500 full-time-equivalent jobs as it focuses on trimming $500 million from its budget through to the end of 2020…Teck wants to improve efficiency and productivity after reporting its 3rd quarter profit fell to $369 million, down from earnings of $1.28 billion last year…”While our financial position remains strong, we have implemented a company-wide cost reduction program with reduced spending,” said Teck chief Don Lindsay on a conference call…the company said in a regulatory filing earlier this year it had about 10,000 full-time “regular” employees as of the end of 2018, with about 4,400 in Coal operations, 2,500 in Copper and 2,200 in its Zinc mining sector…the job cuts will be made through attrition, the expiry of temporary contract positions and current job vacancies…the spending reduction target for the balance of 2019 is $170 million, with $120 million in capital reductions and deferrals…for 2020, the company plans to trim a further $330 million in spending, including $130 million from its capital plans…
6. The Dow is up 46 points as of 7:00 am Pacific…robust earnings from Intel (INTC, NASDAQ) helped ease worries about the impact of an ongoing trade battle on chipmakers…Intel’s results and upbeat forecast also helped lift other chip stocks..the benchmark S&P 500 index is set for its best week in 6, while the NASDAQ is eyeing its biggest percentage gain in 7 weeks after most high-profile companies reported rosy results…however, Amazon took a minor hit after disappointing quarterly results (first year-over-year profit decline since 2017), though one bright spot was Amazon’s advertising business which appears to be picking up speed again…more than 38% of S&P 500 companies have posted Q3 earnings thus far, according to FactSet…of those companies, 78% have beaten analyst expectations…the TSX is up slightly with precious metal stocks leading the way…Yamana Gold (YRI, TSX) has reported a strong 3rd quarter with the stock up 33 cents at $4.77 in early trading…the company posted adjusted net earnings of $49.5 million or 5 cents a share, more than double the consensus estimate…Yamana also reported net free cash flow of $99.9 million, exceeding the average of the 3 previous quarters…the 4th quarter is historically Yamana’s strongest…First Majestic (FR, TSX) is breaking out above a bullish flag formation, jumping 54 cents to $14.20…Alexco Resource (AXU, TSX), also looking strong technically, has climbed 21 cents to $2.65…on the junior side, Canada Cobalt (CCW, TSX-V), which announced earlier this month that’ll it’ll be carrying out its first official Silver pour by the end of next week, has an opportunity to gain considerable traction on a breakout in Silver…the Venture has added 4 points to 547 as it pushes above its 10 and 20-day moving averages (SMA’s) for the first time since September…more layoffs in Canada’s cannabis sector this morning…embattled grower CannTrust Holdings (TRST, TSX) announced last night that iw was laying off 140 workers, a quarter of its workforce, between late October and the end of the year…
7. Eric Sprott’s recent words on Silver and bank liquidity issues are worth repeating in light of the action in the precious metal markets yesterday and today…“There is going to be a shortage of Silver. We get information from dealers looking for supply and paying premiums, which is almost unheard of. And when I look at the amount Silver going into ETFs and going into India, there is no way that there is not going to be a shortage”…on top of that, there is “a huge problem” happening under the surface – ongoing bank liquidity issues and how the Federal Reserve is responding to it…“There’s something happening underneath the surface where bank illiquidity is encountering a huge problem, and we are not being told. Who knows what’s going on behind the scenes? The most likely thing is somebody has blown up their derivatives book, and all the banks are calling in loans to other banks for fear…of the domino effect. The repo market has come under tremendous stress”…the problem became visible to investors in mid-September when the repo rates surged close to 10%, he added…“The fact that they let it happen. The fact that they weren’t aware that it was happening. So there’s this huge illiquidity situation in the banking business which they thought they solved”…
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CLM news.
https://crystallakemining.com/crystal-lake-announces-initial-diamond-drill-assay-results-from-burgundy-ridge-results-include-91-26m-of-0-38-cu-0-30-g-t-au-4-12-g-t-ag-near-surface-on-180m-step-out/
Comment by Bryan — October 25, 2019 @ 8:54 am
That is a very respectable first hole for CLM! I am surprised at market reaction.
Comment by Felix — October 25, 2019 @ 11:13 am
Encouraging news just out from CCW:
Canada Cobalt Drills Into Visible Cobalt, Nickel And Silver At Castle
COQUITLAM, BC, Oct. 25, 2019 /CNW/ – Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to provide the following corporate update.
Underground Drilling
Multi-directional diamond drilling on the first level of the Castle Silver-Cobalt mine is expanding the footprint of massive cobalt, nickel and silver mineralization near the adit entrance where drilling last year returned high grades (refer to Nov. 2, 2018 news release).
A total of 13 drill holes have already been completed in the adit entrance area with visible mineralization noted in a majority of them. Niton XRF (X-ray fluorescence) analysis of these new holes is consistent with values reported Nov. 2, 2018, in sections over a broad area as drilling fans out to fully test the continuity of the main vein. This near vertical vein extends for a minimum of 80 meters from the adit entrance and also features sub parallel veins.
Multiple prospective areas of the first level, which extends for hundreds of meters east-west and north-south, will be tested during this second phase of underground drilling including the newly-discovered “Jackpot” zone near Shaft No. 3 that was inaccessible last year.
Cobalt grades intersected in the Castle mine (refer to Feb. 19, 2019 news release), previously only exploited for its native silver, are considered very high in a global context. From the same Castle waste material, Canada Cobalt has poured initial silver dore bars (refer to Oct. 16, 2019 news release) while its proprietary and environmentally friendly Re-2OX Process has demonstrated the ability to remove 99% of the arsenic to produce a battery grade cobalt sulphate (refer to Aug. 15, 2018 news release).
Canada Cobalt is now permitted to carry out underground blasting at Castle which will greatly assist the company’s exploration efforts during this new phase of drilling.
Castle East Update
Compelling new geological interpretations are emerging regarding deposit potential east and northeast of Castle and the Gowganda Camp’s two other past producing high-grade silver mines, Capitol and Siscoe, all located within a radius of less than two kilometers. These mines were at the narrow, shallow edge of the Nipissing diabase, and the Archean rocks to the east and the deeper parts of the Nipissing diabase (both recently shown to be very fertile) were never systematically explored.
Canada Cobalt’s surface drilling in the summer and fall of 2018 outlined a robust near-surface hydrothermal system with multi-gram gold-bearing quartz veins and a halo of disseminated nickel and copper mineralization in Archean volcanics in between the Siscoe mine, several hundred meters to the west, and a 2011 drill hole that has yet to be followed up on. This drill hole pushed through the Archean volcanics and entered the Nipissing diabase (gabbro), cutting a remarkable 40,944 grams per tonne silver (1,194 ounces per ton) as well as 0.91% cobalt over 0.45 meters within a broader core length of 3.1 meters grading 6,476 g/t silver (189 ounces per ton) and 0.14% cobalt (refer to Aug. 25, 2011 news release, Granada Gold) at a vertical depth of approximately 420 meters.
(The 2011 drilling and drill core sampling, including the quality assurance/quality control, were supervised by Mr. Doug Robinson, P.Eng. and project geologist. Core was sent to Accurassay Laboratory in Timmins, Ontario, for sample preparation and to their Thunder Bay laboratory for analysis. Silver was assayed by fire assay with AA check with additional pulp and metallics done on samples where significant silver was identified. Analytical accuracy and precision were monitored by the analysis of reagent blanks and reference materials at the lab. Quality control was further assured by the insertion of blind certified standard reference material and blanks into the sample stream at regular intervals by Mr. Robinson in order to independently assess analytical accuracy.)
Plans are underway for fresh drilling at Castle East to follow up on the high-grade discovery potential of this area. A comprehensive regional update, including a summary of last year’s results, will be provided in early November followed by planned new drilling.
Voluntary Environmental Rehab at Castle And Beaver
As an environmental leader in the Northern Ontario Silver-Cobalt Camp, Canada Cobalt is proceeding with voluntary rehabilitation at both the Castle and Beaver mines. These efforts are focused on areas where historic high-grade mining (stamp mills) left behind material believed to be metal and arsenic rich. Canada Cobalt views this opportunity for shareholders to be significant.
PolyMet Facility Acquisition
Canada Cobalt’s 90-day due diligence for the proposed acquisition of privately-held PolyMet Resources Inc. (see Oct. 10, 2019 news release) is proceeding positively and ahead of schedule. As contemplated through the binding LOI, completed at a strategic time in the precious metal cycle, the PolyMet Lab and mineral processing facility in the town of Cobalt vertically integrates Canada Cobalt and allows for multiple potential near-term revenue streams (bullion pouring, bulk sampling, commercial assaying and e-waste). This facility would be the new headquarters for Canada Cobalt and its Re-2OX Process.
Private Placement
Further to the company’s October 1, news release, Canada Cobalt is in the process of successfully completing its $1 million private placement at 35 cents per unit, and first closing is anticipated in the coming days.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.
“Frank J. Basa”
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2019/25/c4708.html
Contact:
Frank J. Basa, P.Eng., President and CEO, 1-416-625-2342; Marc Bamber, Director, [email protected], +44-7725-960939
Comment by John - BMR — October 25, 2019 @ 2:41 pm
Huge news for CCW on several fronts:
1) Looks like the tailings program can proceed at Castle under the umbrella of “voluntary rehab” which is a special category which greatly simplifies the process from a regulatory standpoint – certainly that is the case at Beaver which is patented ground and doesn’t require permits to carry out work;
2) Strong start to underground drilling with high readings consistent with first 3 holes last year around adit entrance area – means multi-percent Cobalt values and Silver in the tens of ounces per tonne, if not more; vein continues for at least 80 meters in this area with sub parallel veins as well;
3) Real opportunity to find new deposit at Castle East where Archean volcanics are well mineralized but key is the very high grade native silver from the 2011 hole (never followed up on) in the gabbro below the volcanics at 420 m vertical depth – this has all the signatures of an ore shoot with nearly 200 ounces per ton over 3.1 m core length. That kind of intercept never exists in isolation.
4) PolyMet acquisition proceeding ahead of schedule and first closing of PP shortly.
Comment by Jon - BMR — October 26, 2019 @ 5:12 am
Jon
CCW all great news and a very nice update from Frank, like the part regarding the “ stamp-mills” Canada Cobalt views this opportunity for shareholders to be significant.! CCW has so many potential revenue streams, just needs to execute and hopefully the share price will follow!
Comment by Gregh — October 26, 2019 @ 5:41 am
Jon
Sprott s comments above re the banks and I’ll liquidity is very concerning and sort of scary, need to buy more physical gold and silver and make sure you have some cash stashed away as well.
Comment by Gregh — October 26, 2019 @ 5:49 am
Jon, your point 1 is very interesting. If they don’t need a permit to proceed with the tailings program that would be great. Is that something you are going to confirm with Franks? Thanks. The chart does look good.
Comment by Danny — October 26, 2019 @ 7:07 am