Gold has traded between $1,152 and $1,160 so far today…as of 10:50 am Pacific, bullion is down $4 an ounce at $1,154…Silver has retreated 16 cents to $15.34…Copper is off 2 pennies at $2.51…Crude Oil has reversed higher, up 60 cents at $52.80 while the U.S. Dollar Index has fallen one-third of a point to 96.66 on disappointing U.S. retail sales numbers…
Holdings in global Gold ETFs are showing tentative signs of stabilizing, as flows turned positive yesterday for the 1st time since June, according to UBS…most of the buying came from SPDR Gold Shares, the world’s largest Gold ETF…SPDR’s website shows an inflow of 1.49 metric tons of Gold yesterday…UBS says although the total flow of 65,000 ounces globally “is not a substantial volume, it more or less offsets the net outflow from last week.”
So far this month, Gold ETFs have declined by a total 114,000 ounces, continuing the trend from May, UBS stated. “Year to date, ETF positions are essentially flat,” UBS says. “We continue to expect Gold ETFs to show a modest recovery this year.”
Oil Update
WTIC has reversed its earlier losses after Tehran and 6 global powers reached a landmark nuclear deal that left sanctions on Iran in place for now, continuing to limit its Crude exports…how the Republican controlled U.S. Congress will view this agreement will be quite fascinating to know…
The Oil market will be looking out next for an industry group report due later today that will indicate supply-demand for U.S. Crude…the American Petroleum Institute’s report for last week will land ahead of official Crude inventory data due tomorrow from the U.S. government…
Saudi Arabia has borrowed $4 billion from local markets in the past year, selling its first bonds for 8 years as part of efforts to sustain high levels of public spending amid weak Oil prices…Fahad al Mubarak, the governor of the Saudi Arabian Monetary Agency, said the government would use a combination of bonds and reserves to maintain spending and cover a deficit that would be larger than expected…Saudi Arabia needs an Oil price of $105 a barrel to meet planned spending requirements, but the average price for the year is estimated at $58 a barrel, he said…it’s believed that if the government continues business as usual and draws done like this it will deplete reserves faster than expected, by the end of 2018 or early 2019….in the late 1990‘s, domestic debt had risen to about 100% of GDP in Saudi Arabia…that figure had fallen to only about 1.6% of GDP at the end of 2014…
Today’s Equity Markets
Asia
The “Dangerous” Shanghai Composite
A few analysts are comparing the current situation with the Shanghai Composite to that of the Dow evolved in 1929…we’re not ready to draw that comparison yet, but the Shanghai certainly isn’t out of the danger zone after authorities threw everything they could at this market since last week to prop it up from the key 3400 support level…government manipulation like that has the potential to backfire – traders also sense “desperation”…
The bounce up from 3400 wasn’t surprising, especially given the very oversold conditions that emerged on short-term charts after the 30% slide…what we believe has been occurring in recent days is a “B” wave correction to the upside that should encounter stiff resistance around 4055…then, watch out…this rally is weak given the flat RSI(14)…at the very least it’s reasonable to expect a retest of the 3400 area, and perhaps a panic among Shanghai investors if the index can’t hold that level…keep in mind, margin levels are still very high in this market…
The Shanghai closed down 44 points overnight at 3926…
Europe
European markets were mixed today with Greece and Iran in focus…there are concerns that Greek Prime Minister Alexis Tsipras could face a revolt from his own party over the terms of the 86 billion euro ($95.2 billion U.S.) bailout deal…
North America
The Dow is up 62 points as of 10:50 am Pacific…U.S. retail sales unexpectedly fell in June as households cut back on purchases of automobiles and a range of other goods, another sign the economy is a little wobbly…the Commerce Department said this morning that retail sales slipped 0.3% last month, the weakest reading since February…May’s retail sales were revised down to show them rising 1% instead of the previously reported 1.2% jump…economists polled by Reuters had forecast retail sales rising 0.2% last month…
In Toronto, the TSX is up 47 points while the Venture has added 2 points as of 10:50 am Pacific…
Tahltan-Sheslay District-Doubleview Capital Corp. (DBV, TSX-V) Update – Another Bombshell
The facts continue to pile up that Tahltan Nation President Chad Day is engaging in a public misinformation campaign while using the dynamic Doubleview Capital (DBV, TSX-V) Hat Project discovery and the prolific possibilities of the Sheslay district in general as weapons of leverage against the B.C. government over a broader Tahltan territory land use agreement that Day is hoping to seal with the province, as we outlined yesterday…is this “economic terrorism?”…you be the judge…don’t forget, a long-term employee of the Tahltan (THREAT project manager, involved in land use issues for the Tahltan, abruptly resigned last month)…there are clearly internal Tahltan divisions over Day’s militant actions…
This morning, we begin to take a closer look at the news release put out by Day a week ago while he made his 1st-ever visit to the Hat Property with a group of selectivity chosen activist Elders to stage a blockade (a “media show”) to interrupt drilling at a key moment for DBV…the illegal blockade was also, in effect, a blockade against other Tahltan as 3 of the 4 members of the Tahltan Services drilling team were Tahltan…1 of them speaks out this morning in another BMR exclusive…
Day’s July 8 News Release
“TCC President Chad Day also issued an open letter to the Province and a junior mining company Doubleview,” the July 8 news release stated, “reminding them of the Tahltan Nation’s requirement (our emphasis) that all mining activity in the Sheslay stop.”
Note that in his May 21 letter, the 1st time he ever raised objections to exploration in the district, Day stated, “We respectfully request (our emphasis) that you refrain from proceeding with any mineral exploration activities in the region while we work to negotiate formal arrangements with the province” (he didn’t send this letter to Teck Corporation by the way, and the letter has also now been removed from the Tahltan website)…
Last week’s news release continued, “The TCC has repeatedly asked (our emphasis) for Doubleview’s drilling rig to be removed because the Tahltan Nation strongly opposes mineral exploration in the area surrounding the Sheslay River” (“repeatedly” gives the impression of a process that has carried on for a considerable period when, in fact, May 21 was the 1st time Day ever raised any concerns)…
Furthermore, what exactly does Day mean by the “area surrounding the Sheslay River”?…keep in mind, the Hat discovery is approximately a whopping 18 km southeast of the Sheslay River (the river itself by existing B.C. laws is already protected)…
Of course, as we pointed out yesterday, Day has no credibility when he states the Tahltan oppose mineral exploration in the general district because this was certainly never made known by the Tahltan during the various permitting processes…in addition, the Tahltan, through their business arm – the Tahltan Nation Development Corporation (TNDC) and other exploration-related services – have actually been active participants in the ramping up of drilling and other work in the area over the last 2 years with no objections (not even from Day – until May 21 – after he was elected TCC President in July of last year)…heck, even Day’s uncle, Roderick (Roddy) Day, is one of the Tahltan who has enjoyed the benefits of employment from this exploration…
Then there are the historical facts – all the Tahltan exploration and development-related activity in the district going back more than half a century including the building of the Golden Bear mine road in the late 1980‘s that led to the past-producing Golden Bear high-grade Gold mine east of Garibaldi Resources‘ (GGI, TSX-V) Grizzly Project…there was also a bridge built over the Sheslay River (yes, the infamous Bridge Over The River Sheslay) to help connect the access road to that mine…the Tahltan carried out regular maintenance on that access road as well, earning income from their work…
“Traditionally,” Day’s news release continued, “Sheslay was occupied by the western Tahltan people. There are grave sites for many of the Tahltan clans here (our emphasis) and the whole area was occupied and used. Today, Sheslay remains an important cultural, spiritual and traditional use area to the Tahltan people.”
We’re going to explore that rich statement above in more detail in the days ahead, beginning this morning, as it commands some serious attention, though no one is disputing that Doubleview, Garibaldi and others – including Teck which hasn’t been singled out by Day – are exploring in Tahltan traditional territory (that’s different from any legal title)…of course DBV and GGI have the full legal authority to drill as they’ve received multi-year permits from the B.C. Ministry of Energy & Mines and the Tahltan were included in the consultation process as required…
Significantly, of course, no objections to Hat or Sheslay district exploration were raised by the Tahltan or Day until late May following fresh results from the Hat (H-23) and public disclosure by Doubleview on April 21 that “the company believes that the Hat property may be host to a major, world-class deposit.”
On the subject of burial sites, which Day’s news release implies exist perhaps all over the Hat Property, click on the arrow below to listen to a portion of an exclusive BMR interview with a Tahltan driller who has extensive experience drilling at the property and was part of the crew that was shut down last week…
Click on the arrow to listen:
A Call To Action
If you’re as fed up as we are with Chad Day’s antics which are in reality embarrassing his own people – we’ve met many wonderful Tahltan individuals, and we fully support the Tahltan Nation’s right to a sustainable future – we suggest you contact MARR (B.C. Ministry of Aboriginal Relations and Reconciliation)…a spokesperson for the B.C. Ministry of Energy & Mines recommended to BMR that citizens interested in the Sheslay district controversy contact MARR, which has also indicated it enjoys hearing from concerned individuals…so go for it…
MARR Contact Person: Fred Oliemans, Smithers office: 1.250.847.7289
Gold In Canadian Dollars
Typically, we look at Gold in U.S. dollars…today, an updated 2.5-year weekly Gold chart in Canadian currency…given the drop in value of the loonie, Canadian producers with their cost structures in line (helped by weak Oil prices) are doing very well with Gold currently around $1,475 CDN…
A symmetrical triangle has formed in this chart – watch for a potential confirmed breakout above this triangle and Fib. resistance at $1,471…in general, these are bullish technicals for Gold when expressed in Canadian currency…
Claude Resources Inc. (CRJ, TSX) Update
Claude Resources (CRJ, TSX-V) has stabilized this morning after dropping 5% yesterday on news that the company is temporarily suspending underground mining operations at its Seabee Gold mine in northern Saskatchewan due to nearby forest fires (8 km away)…however, production from the mill has not been affected, and the facility will continue to operate…CRJ currently has a stockpile of approximately 10,000 tonnes of ore available on surface, representing 12 days of production…the company also confirmed that at this time it expects to meet its production guidance for the year…
Like Richmont Mines (RIC, TSX), Claude has been a stellar performer since last year thanks to improving fundamentals…technically, it’s sort of “teetering on the edge” of some important support – RSI(14) and the price uptrend line in place since last summer…in the worst-case scenario, we see Fib. support holding at 55 cents which is also just above the rising 200-day moving average (SMA)…
CRJ is up a penny at 66 cents as of 10:50 am Pacific…
Reservior Minerals Inc. (RMC, TSX-V)
Another high-quality situation that should be on everyone’s radar screens – Reservoir Minerals (RMC, TSX-V)…
Reservoir, which had $35 million in working capital as of the end of February, is in a JV with Freeport-McMorRan (FCX, NYSE) at its Timok Project in Serbia…the major is the operator (assuming all expenses) and an $18.7 million U.S. budget was approved to advance this project in 2015…
Reservoir climbed as high as $7.43 last year before falling by more than half as the overall market tanked in Q4…very oversold conditions (September to early November) mirrored the overbought conditions that emerged in February/March 2014 when it was a good time to take profits…
RMC has regained its footing and appears to be gearing up for a solid finish to 2015 over the next 5-and-a-half months…
Buy pressure is steadily increasing, the stock successfully broke above its downtrend line, and the 200-day SMA is also starting to reverse to the upside…
RMC is up a penny at $4.41 as of 10:50 am Pacific…
Tribute Pharmaceuticals Canada Inc. (TRX, TSX-V) Update
John gave the correct warning signal when high-flying Tribute Pharmaceuticals (TRX, TSX-V) hit and briefly surpassed Fib. resistance at $2.09 while in a very temporarily overbought state…TRX found support at the $1.70 level and is regaining momentum…a confirmed breakout above the nearest Fib. resistance ($2.09) would be another bullish development here…
TRX is down 2 cents at $1.90 as of 10:50 am Pacific…
Note: John and Jon both hold share positions in DBV.
Jon , are you aware of any scheduled meetings between the parties involved and DBV ?
Have there been any meeting in the past few months involving the government, the Tahltan and DBV ?
Comment by Les — July 14, 2015 @ 10:22 am
Les, more on that tomorrow probably…we continue to confirm new facts.
Comment by Jon - BMR — July 14, 2015 @ 10:24 am
Hear Chad Day in this (First Nations) radio interview, two short clips. Good to hear him speaking, sounds like the big issue is with the BC Government and DBV caught in the middle.
http://cfnrfm.ca/tahltan-blockade-mine-exploration-site/
Comment by vepper — July 14, 2015 @ 10:34 am
“Tahltan-Sheslay District-Doubleview Capital Corp. (DBV, TSX-V) Update – Another Bombshell”
Seems like maybe not looking at the DBV chart for a while is the safest bet for my personal sanity… Ugh…
I see a couple other deals that were brutally rolled back starting to recover – GNH-TSXV and APE-TSXV…. didn’t buy any GNH but wish I had, and picked up a few shares of APE at $0.22….. no real news out from either deal – any one hear anything?
Comment by Rob Mills — July 14, 2015 @ 11:29 am
Ok, comming back to that DBV new interpretation video, and looking at the google earth map, GGI golden bear claim could be a mirror of the hat. On one side you have the Ho on the other the volverine. It look fracture about the same. And further more PGX must have many deposits on their side. How could you drill a area of 500 x 500 on a 10000m campain at the star. what a mess they did last year.
Comment by Martin — July 14, 2015 @ 12:33 pm
Jon, If you look at the data (geochem and magnetic)of prosper’s 43-101 do you see something interesting, like if their deposit would be from North Star going SE?
Comment by Martin — July 14, 2015 @ 1:26 pm
Martin- In case you aren’t ware of this……Peter Bernier and Dirk Tempelman-Kluit evaluated something like 150 projects following their success with Richfield Ventures (bought by New Gold) and they approached Farshad as they were interested in taking the HAT from him (after evaluating it). Farshad wasn’t interested as he knew the potential of the HAT! Peter Bernier and Dirk Tempelman-Kluit took the Star Project from Firesteel which is right next door to the HAT. When they tasked a helo to do the magnetic thing (forgot the name) they noticed that it was looking very good on the SE border of their property and it continued onto the HAT property so they decided to over fly the HAT out of curiosity……lol. I am sure they probably wished Farshad said yes…..lol.
Comment by D4 — July 14, 2015 @ 2:09 pm
No i wasn’t aware of that D4, in 2013 that? (the take over proposal)
Comment by Martin — July 14, 2015 @ 2:25 pm
Because they totally miss it last year, flush at 29, 28.5 just before de last plunge
Comment by Martin — July 14, 2015 @ 2:27 pm
It was in 2013 or late 2012…..it was before Firesteel optioned the property to Proper Gold.
Comment by D4 — July 14, 2015 @ 2:42 pm
Jon and the BMR gang, appreciate everything you have been doing providing information, charts, opinions/alerts on companies, etc. But especially these past few days with what’s been happening in the Sheslay area. It certainly is providing us shareholders valuable information of what going on and the real intentions of Chad Day. Kudos!!
If we could just get more information out of Regoci? I know right now he is probably waiting to hear what DBV will do, but I would imagine the GGI team must be either consulting with either their legal council and maybe DBV to determine the next steps, or maybe reaching out to the Tahltan to try and come to some sort of resolution. The timing of the disruption was well planned as Chad knows time is of the essence for companies to get as many holes drilled as possible before the inclement weather.
The other thing I don’t understand is Regoci’s silence on Mexico. Wondering if exploration is slowed in Mexico due to nothing of significance to report? It is time for Steve Regoci to put out an update on Mexico. Going on 5 months without news is ridiculous not to mention lack of respect for his shareholders in my opinion.
Comment by Dan — July 14, 2015 @ 2:46 pm
Regoci should definitely ensure that the priority for Garibaldi is Mexico. As DBV seems to be the current face of the target, all of the other companies in the area are likely going to wait this out until the BC Government does something positive to bring this to a head.
Comment by Andrew — July 14, 2015 @ 2:56 pm
I wonder if those “majors” who were so interested in Regoci’s properties are waiting for the sp to go to a nickel before they buy…lol.
Comment by Bryan — July 14, 2015 @ 3:17 pm
Jon I hope that during the negotiations Farshad will ask permission to drill in Sheslay Tahltan !!!
Comment by Guy Delisle — July 14, 2015 @ 4:08 pm
It would just be fun to have a update from mexico as they are clearly triying to raise cashflow
Comment by Martin — July 14, 2015 @ 4:21 pm
Agree with your comments Dan. What the heck is going on with GGI in Mexico? Just checked the alternative monthly report for GGI, Sprott has unloaded all their shares as expected. It’s time for an update from GGI. Long overdue.
Comment by Danny — July 14, 2015 @ 5:52 pm
I agree, too, Danny…however, I would keep in mind that GGI is probably working around the clock on the Sheslay blockade issue, but they’ve shown before they can walk and chew gum at the same time. Now that GGI has confirmation that Sprott is gone, the coast is clear to start rolling out some news from both Mexico and B.C. Time to get on with the show.
Comment by Jon - BMR — July 14, 2015 @ 6:03 pm
Here here!!
Comment by Tombc — July 14, 2015 @ 6:55 pm
Could the reason why the remaining 250m of hole 23 at the Hat has not been released be due to the fact that there is a problem with QA/QC? I did not give it much thought at the time, but people (bashers) were saying that drill core should not have been left unattended for 3 months at the winter camp. I’m puzzled why it has taken so long for us to get the results.
Comment by Tom UK — July 15, 2015 @ 8:00 am
Could be any number of reasons, Tom…one theory I’ve heard is that DBV may have asked the lab to hold on to results for a while as it clearly appears since the late spring that every time something good comes out of DBV, Chad Day gets more aggressive and has more leverage…we’ll see…Farshad is a bulldog and my sense is he’s going to fight hard on this and get that drill turning again ASAP…
Comment by Jon - BMR — July 15, 2015 @ 8:10 am
Tom UK . Bashers will say anything to create doubt that may cause someone to sell their shares cheap . Bashers often work for someone wanting to accumulate shares or are trying to short a stock . Upon doing some research on them , they are paid by the number of reads they get on a BB and some chat boards give bashers free reign . Lying , innuendo , belittling the CEO or anyone supporting the stock or the drill crew and posting under many different names is common practice . Often a basher will use many different names that appear to be talking to each other , it is absolutely unbelievable what is going on at the ” stockhouse” BB with regards to DBV.
Comment by Les — July 15, 2015 @ 9:13 am