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1. Gold has traded between $1,571 and $1,583 so far today as the Fed gathers for the first time in 2020 for a 2-day policy meeting…as of 7:00 am Pacific the yellow metal is off $6 an ounce at $1,575…Silver has retreated 39 cents to $17.68 but has superb support between the low $17.40’s (50-day SMA) and Fib. level $17.27…Copper is in danger of suffering its 10th straight daily loss…it’s down another 2 pennies at $2.59…the metal is regarded as a bellwether of the global economy and has given up all of its gains since early December when a rally pushed prices up nearly 10% to 8-month highs as investors welcomed the Phase 1 of a U.S.-China trade deal and hoped for a rebound in economic growth…“Chinese demand accounts for about 50% of the majority of base metals,” noted BMO Capital analyst Timothy Wood-Dow…“On Friday, we didn’t know this, it (the coronavirus) seemed quite contained. Now this wider geographical spread is very concerning, so that’s feeding through to the market”…Chinese economic growth could still hit 6% this year if the virus is quickly contained, aided by the government’s determination to bolster the economy…however, the number of cases could also be much higher than what the Communist government is officially revealing…Nickel has rebounded 4 cents to $5.74 while Zinc is 2 pennies lower at $1.08…Crude Oil is relatively flat at $53.07 while the U.S. Dollar Index has climbed more than one-tenth of a point to 98.10…a Commerce Department report this morning showed U.S. durable-goods orders rose by a healthy 2.4% to $245.5 billion in December…
2. Chinese President Xi Jinping told the visiting chief of the World Health Organization today that he’s confident of winning the battle against a “devil” coronavirus that has killed more than 100 people and spread across the world, though not in large numbers outside of China…a growing number of countries are planning to evacuate their citizens from Wuhan, a central city of 11 million people and epicenter of the outbreak…a chartered plane taking out U.S. consulate staff is set to leave Wuhan tomorrow, according to the U.S. embassy in Beijing…WHO chief Tedros Adhanom Ghebreyesus and Xi discussed ways to protect Chinese and foreigners in areas affected by the coronavirus and “possible alternatives” to evacuations, a WHO spokesman said…“The virus is a devil and we cannot let the devil hide,” state television quoted Xi as saying…the disease is not spreading through human-to-human contact in the U.S. and the risk to the public right now is still considered low, according to the National Center for Immunization and Respiratory Diseases…
3. In a surprise move, The U.K. government has given the green light for Huawei Technologies to build part of its next-generation 5G cellular network, dismissing calls from the Trump administration to boycott the Chinese telecom-equipment vendor over security fears…the government said Huawei would be given permission to build noncritical parts of the country’s 5G network…Britain’s National Security Council concluded that the security risks the Chinese company presented could be managed…Huawei officials have repeatedly denied claims that its equipment could be used by the Chinese state to spy on countries or incapacitate key infrastructure…the decision is a setback for American-led efforts to clamp down on the use of Huawei products, and could embolden other countries to follow the U.K.’s lead…Germany is expected to make a decision on whether to allow Huawei to build sections of its own 5G network later this year…
4. K92 Mining (KNT, TSX-V), which hit a new all-time high yesterday, says it expects another significant year-over-year increase in Gold equivalent production of 34% to 46% while also delivering low-cost production…the strongest production and lowest costs are expected in the 2nd half of 2020 as the Stage 2 expansion ramp-up to run-rate throughput is forecast to be achieved by the end of 2020…exploration activities are also forecast to increase, with 2 new surface drill rigs and 1 new underground drill rig targeting delivery in Q2…the drill rigs are planned for both near-mine and regional exploration, including expanding exploration activities to drill new targets…between $8 to 10 million has been budgeted for exploration, which is included as part of the operating costs, sustaining capital and growth expenditures…growth capital is forecast to be between $20 to 25 million, which includes completing the Stage 2 Expansion and twin incline development…the twin incline is designed for a throughput capacity of up to 2 million tonnes per annum…K92 has recently commenced early earthworks on the twin incline…John Lewins, K92 CEO, stated, “2019 was a transformational year for Kainantu, exceeding our upgraded guidance while making significant progress towards our Stage 2 expansion. In 2020, we expect to consolidate these gains, with production taking a significant step forward to over 110,000 ounces Gold equivalent and achieving run-rate stage 2 expansion throughput by year-end. We are also very excited about our exploration programs in 2020. Three new drill rigs are set to arrive in Q2 2020, providing an increase to our rate of exploration and importantly an increase to our capacity to test new, high potential, targets”…KNT is up a nickel at $3.56 as of 7:00 am Pacific…
5. Gran Colombia Gold (GCN, TSX), another strong-performing Gold stock this year, has arranged a non-brokered private placement for gross proceeds of up to $40 million (7,142,858 units at a price of $5.60 per unit which includes a 3-year full warrant exercisable at $6.50)…net proceeds will be used for general working capital and corporate purposes, including repurchases of the company’s listed warrants under its normal course issuer bid…Serafino Iacono, Executive Chairman of Gran Colombia, stated, “We see the increased interest from strategic and institutional investors in Gran Colombia as a continuing endorsement of our successful turnaround of the company and the potential for further appreciation in our share price, which doubled in 2019 and is up by almost 300% over the past 3 years, as we execute our strategy to unlock value in our portfolio of quality assets. We have ramped up our near-mine and regional exploration programs at our high-grade Segovia operations for the coming year and we are unlocking value in our Marmato project through the spin out to Caldas Gold which we anticipate will be completed within the next couple of weeks”…
6. Wall Street is in a better mood this morning after yesterday’s broad sell-off, sparked by the China flu…the Dow is up 93 points through the first 30 minutes of trading after suffering its worst session yesterday since October…the S&P 500 logged in its first pullback of at least 1% in 74 sessions…the NASDAQ also had its biggest 1-day decline since August amid fears the spreading China coronavirus could hurt the global economy…in Toronto, the TSX is up 20 points…the TSX Gold Index, which ran up as high as 271 in early trading yesterday before reversing, is off another 3 points at 261…accumulation of producers on pullbacks has been the winning strategy for more than a year-and-a-half…Detour Gold (DGC, TSX) shareholders are expected to vote in favor today of the company’s acquisition by Kirkland Lake Gold (KL, TSX, NYSE)…the Venture has recovered 2 points to 576…a very strong support band stretches from 570 to 560…Skeena Resources (SKE, TSX-V) is the Venture’s early volume leader, up 7 cents at $1.01 following a 6.5-million share cross by TD…this BABY is rocking…Else Nutrition (BABY, TSX-V) has more than doubled since November and is up another 7 cents at 70 cents in early trading today…the company says it’s focused on revolutionizing infant and toddler nutrition through its 100% plant-based and non-soy alternative to dairy-based baby formula…winner of the “2017 Best Health and Diet Solutions” award at the Global Food Innovation Summit in Milan, Else’s innovative toddler formula will be launching in the United States this year…this morning the company released favorable results from a U.S. market research study of 1,858 statistically significant potential customers…
7. Hemp prices are plunging amid a “grossly oversupplied” market, says the head of the industry’s first price provider…hemp biomass prices reached a high of over $40 (U.S.) a pound in July, just before the 2019 harvest came in…today it’s trading under $10 a pound following a quadrupling of supply from 2018 to 2019…“Every way you slice it, the physical demand for the CBD market is much, much smaller” than the supply, Panxchange CEO Julie Lerner told Bloomberg…”I’m a little surprised that retail prices have not started to come down yet. There’s so much competition”…Panxchange, which Lerner founded in 2011, launched the hemp industry’s first suite of benchmark prices in January 2019, 1 month after the U.S. farm bill legalized the plant and added a trading platform in August…today the hemp market is “rife with desperate sellers and opportunist buyers,” said Lerner in a December analysis…meanwhile, U.S. prices for cannabis also fell in most states and categories in 2019 – the opposite of the trend seen north of the border…
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Comment by Weatheritout80 — January 28, 2020 @ 8:25 am
coronavirus….it wont last long…its made in china…
Comment by Jack — January 28, 2020 @ 8:45 am
I see that Mira presentation is now up on the ggi site. Interesting. I hope he starts updating and getting the word out after the email I sent him early this morning…
Comment by Laddy — January 28, 2020 @ 3:14 pm
Any thoughts about getting some more news from ccw this week? Don’t want to start expecting multiple nr’s per week, but it would sure be nice to keep momentum up and the technicals positive. We’ve been dancing around this price range all month – I’m ready for the next leg up!! Same share price as 18 mo the ago….
Comment by Phil — January 28, 2020 @ 5:51 pm
Phil, they’ve made it known they’re drilling in what has now been determined to be a very productive horizon (300-m thick sill with excellent lateral potential) featuring extensive veining and alteration, vein shoots, native silver-filled fractures as well as multiple structures interpreted to be spatially related to high-grade mineralization…same signatures as those from the 3 deposits immediately to the west that combined for ~70 million ounces ($1.6 billion CDN with today’s prices)…
In other words, a spectacular new hit could come at literally any moment…one of the major takeaways from yesterday’s news is that this discovery has quickly been de-risked because that bonanza grade wedge zone will more than pay for an exploration ramp while opening up a huge new discovery window…there’s a lot of money down there!…
Comment by Jon - BMR — January 28, 2020 @ 6:23 pm
Jon you mentioned the possibility of Ccw driving a ramp down into the new zone a few times now. Curious if that is Halliday’s and Basa’s intentions? All of the old timers just mined by following the veins so I’m curious if that is the intention with Ccw? If so how quick would they possibly start driving this new ramp to access underground in the Robinson zone?
Comment by Dwight — January 28, 2020 @ 7:04 pm
Hi Jon
Is Ccw doing any more step outswedges to follow the 4-8 inch silver within or bey d the 300 m. Reticle zone laterally? How big were the veins in the 1900’s or the nearby Sisco and Capital mines?
Comment by Donald — January 28, 2020 @ 7:09 pm
I agree and it’s going to be very exciting ! I’ve been waiting a long time for this to pick up speed – I just don’t want to see it lose steam…
Comment by Phil — January 28, 2020 @ 7:16 pm
Dwight, I would say that’s absolutely their intention – it’s exactly what mining Hall of Famer Paul Penna would have done…that’s how he took Agnico from 30 cents with $1,000 in its treasury in 1962 and turned it into a very successful company, the forerunner of what it is today – he understood the deposits in this district exceptionally well…the first sniff of ore and he drove a shaft or a ramp, knowing full well he’d find a lot more down there in the process…the grades are so high, it’s a no-brainer…Agnico had the infrastructure, just like CCW has successfully focused on acquiring…
Comment by Jon - BMR — January 28, 2020 @ 9:29 pm