Gold has traded between $1,121 and $1,138 so far today…as of 8:45 am Pacific, bullion is down $7 an ounce at $1,126…Silver is off 40 cents to $14.81…Copper has slid 8 cents to $2.30 on Asian growth fears…Crude Oil is down $1.33 a barrel to $45.35 while the U.S. Dollar Index has climbed nearly one-quarter of a point to 96.21 (strong resistance around 96 )…Credit Suisse today heavily cut China demand assumptions, commodity prices and earnings estimates, battering commodities and the mining sector…
The expected actions from central banks could keep a lid on Gold prices, according to Commerzbank. “In recent days, a number of Fed members have expressed the belief that the U.S. Federal Reserve will hike interest rates before this year is out,” the bank noted…based on the fed fund futures, a nearly 50% probability of an interest-rate hike in December is now priced into the market…meanwhile, European Central Bank representatives appear to be going in the opposite direction, claiming that the ECB “would forcefully react” if its inflation target were at risk…this, according to Commerzbank, will lead to increased speculation about an expansion of the ECB’s program of quantitative easing, and help to give the U.S. dollar a lift…
Meanwhile, Mike McGlone of ETF Securities has a different view, which we tend to agree more with, and brings up an interesting comparison between Gold and the S&P 500:
“Many of the bearish drivers for Gold appear to have shifted or reached extremes including: the record setting stock market rally, overly optimistic Fed tightening expectations, the strong U.S. dollar and the substantial decline in Crude Oil prices,” he said yesterday in an interview with Kitco News…McGlone added that he was not surprised the Fed didn’t hike rates last week (as many observers expected) since the economy is not ready to withstand tightening. “The primary reason for the Fed to raise rates is to suppress inflation and inflation expectations but the greater risks remain towards disinflation or deflation. Declining commodities, declining stock prices and the strong U.S. dollar are deflationary forces,” he added…
According to the research director, it may also be good for gold investors to look closely at the U.S. stock markets’ next moves because, based on historical data, the metal may be poised for some gains. “When Gold peaked in 2011, it was near $1,900 an ounce while at the same time the S&P 500 bottomed near 1,200. Now in 2015, Gold is near $1,200 and the S&P 500 is near 1,900. The levels basically transposed since 2011. The risk is that these markets continue to revert – potentially back to near 1,600,” he noted…
Mexico Beefs Up Infrastructure With Canadian Help
Quebec’s pension fund manager plans to invest $1.4 billion on infrastructure projects in Mexico after teaming up with a consortium of Mexican institutional investors, the Globe and Mail has reported…the co-investors plan to spend $2.8 billion over 5 years in what the Caisse de dépôt et placement du Québec says is a first partnership in North America between Mexican financial institutions and a large international pension fund manager…
The Mexican government plans to spend a whopping $614 billion over 4 years on infrastructure investments, targeting energy and transportation projects…the new investment vehicle will focus on energy generation, including renewable energy, transmission and distribution, as well as transportation and public transit projects…
Today’s Equity Markets
Asia
China’s Shanghai Composite gained 30 points or about 1% overnight to close at 3186…Japanese markets, meanwhile, were closed for a holiday…
Despite the Shanghai’s advance, investors remain nervous about a flash PMI for September due tomorrow…according to a Reuters poll, the preliminary reading of China’s massive manufacturing sector likely edged up to 47.5 from August’s 47.1…however, it’s expected to remain near a 6-and-a-half-year low, pointing to a 7th straight contraction in activity on a monthly basis…
Attention has also turned to Chinese President Xi Jinping’s state visit to the U.S. which begins this morning in Everett, Washington…Xi’s anticipated schedule has him in the Seattle area until Thursday morning when he then departs for the “other” Washington back east…
Europe
European markets were down sharply today, generally more than 3%…a new report from the Asian Development Bank (ADB) gave a more negative view of the region’s growth outlook after slowdowns in China and India, and the soft recovery in developed markets…
North America
The Dow is off 270 points as of 8:45 am Pacific, pressured by continued anxiety over slowing global growth following the Federal Reserve’s decision to keep rates unchanged…in Toronto, the TSX has plunged 306 points while the Venture is off 6 points at 544…
Equitas Resources Corp. (EQT, TSX-V) & Garland Camp Update
Equitas Resources (EQT, TSX-V) has backed off slightly again this morning but as John pointed out in a chart over the weekend, EQT remains firmly within an upsloping channel as drilling draws near at its Garland Nickel Project 20 miles southeast of the Voisey’s Bay mine…
That neighborhood is becoming more crowded – certainly an endorsement of the exploration potential of this grassroots region…Athabasca Nuclear (ASC, TSX-V), through its CEO Ryan Kalt, announced yesterday that it is “pleased to become the largest mineral tenure holder in the Garland exploration camp. In addition to its exploration potential, advances in technology are another compelling reason to examine this area, a sentiment which is exemplified by the recent staking rush seen in the region.”
Athabasca, playing the “closeology” game for now, has surrounded Equitas‘ holdings on all sides…such a strategy will certainly payoff big-time in the event EQT makes a drilling discovery…
Athabasca Long-Term Chart
Athabasca is worthy of our readers’ due diligence not only for the above, but a confirmed breakout above a long-term downtrend on this 2.5-year weekly chart is a strong clue that some strength could come into this play in the coming weeks…near-term resistance is 4.5 cents…with a modest $1.5 million market cap, a clean balance sheet and some other properties that are being worked, ASC certainly has some upside potential entering the final quarter of the year…
Pretium Resources Corp. (PVG, TSX) Update
Interesting results from Pretium Resources (PVG, TSX) yesterday from a grassroots exploration drill program…Pretium intersected high-grade Gold at depth up to 1 km east of the rich Valley of the Kings…hole SU-657 returned 21.87 g/t Au over 9 meters (932 m to 941 m depth) including 203 g/t Au over 0.5 m, 41.2 g/t Au over 0.5 m, and 33.5 g/t Au over 0.6 m…those results were 650 m east of the Valley of the Kings…a further few hundred meters to the east, SU-654 intersected 16.9 g/t Au over 1.5 m while SU-658 returned 6.2 g/t Au over 2.3 m, including 10.7 g/t Au over 1.2 m…additional drilling is planned to determine if this mineralization is a continuation of the Valley of the Kings or a new stockwork zone…
Brucejack is a world class project with construction commencing and commercial production targeted for 2017…
As we pointed out last Thursday, Charlie Grieg, M.Sc. P.Geo., one of Pretium’s senior geologists, is also playing a key role in helping Garibaldi Resources (GGI, TSX-V) make a new discovery in the prolific Sheslay district approximately 120 miles to the northwest…Greig is highly respected in the B.C. geological community, and his team’s data compilation and insight will be instrumental in pinpointing a potential discovery hole in upcoming drilling at Grizzly Central…
Veteran geologist Charlie Greig (C.J. Greig & Associates Ltd.) at Pretrium’s high-grade Brucejack Project.
Garibaldi Updated Chart
Significant about this 2.5-year weekly GGI chart are the price and RSI(14) breakouts above downtrend lines, the increasing buy pressure (CMF), and a dramatic weakening of the bearish trend since late July (ADX indicator)…in fact, a bullish +DI/-DI cross appears to be in the works in the near future, coinciding perhaps with the start of drilling at Grizzly Central…this is not the kind of chart you bet against…
Cardiff Resources (CRS, TSX-V) Update
On September 9, John pointed out how Cardiff Resources (CRS, TSX-V) appeared to have bottomed around the 10-cent level and was posed for a potential near-term comeback…indeed, it has bounced back and yesterday closed at 16.5 cents on volume of nearly 2 million shares (all CDN exchanges)…on September 8, the company announced that after changing drilling contractors, the company was confident it would complete the Clayton No. 1H well in Texas over the near-term…
Technically, the current CRS pattern is defined by Fib. support at 14 cents and resistance at 22 cents, so a further advance is certainly possible here…CRS is off half a penny at 16 cents as of 8:45 am Pacific…
Cannabix Technologies Inc. (BLO, CSE, BLOZF, OTC) Update
Quietly, Cannabix Technologies (BLO, CSE) has been forming a solid base in recent months and needs to be watched closely for the possibility of another explosive move to the upside by year-end…as readers know, this has been a very volatile play, but volatility provides opportunities…
Critical support in the mid-teens (CDN) held over the summer and BLO is now up against its still-declining 100-day SMA on the CSE, with a gently rising 50-day SMA directly beneath it…it’s seems quite possible the 100-day could reverse to the upside by the end of October, so that’s something to watch for…
Below is the Cannabix chart based on its OTC trading (Stockcharts.com charts not available yet for CSE listings)…a double bottom appears to have formed, so this could get interesting again in the near future…volume has been relatively light on the CSE since the beginning of August, especially…
BLO is up a penny at 22.5 cents on the CSE as of 8:45 am Pacific…
Note: John and Jon both hold share positions in EQT and GGI. Jon also holds a share position in BLO.
Somethink in can’t figure out is why Dbv not releasing hole 23 result!??
Comment by Martin — September 22, 2015 @ 8:05 am
Probably DBV wait the injunction after that, hole 23 help to keep DBV higher !
Comment by Guy Delisle — September 22, 2015 @ 8:25 am
I think once DBV gets the injunction things will happen fast…..Farshad is eager to get the ball rolling and will agressively pursue his mission!
Comment by DDD4 — September 22, 2015 @ 8:35 am
Does anyone know the court date set for the DBV hearing ?
I’m thinking it has to be public knowledge.
Comment by dwudrick — September 22, 2015 @ 8:41 am
DBV didn’t drill this summer, but they were certainly able to get holes 23, 24 and 25 analyzed…!
Comment by Jeffrey — September 22, 2015 @ 9:01 am
Jeffrey, just to clarify, DBV DID drill this summer, holes 24 and 25 in early July which is when Chad Day and his rent-a-protest team blockaded the property. Hole 25 was in progress at 270 m when the blockade stopped all activity. The property was vacated very shortly after Chad shut things down. I highly doubt 24 and 25 even got to the lab – all the core is probably still up there. As for 23, that was the best hole yet (through 400 m) that got Chad greedy. We haven’t yet seen the bottom of that hole in terms of results but perhaps there are good reasons for that, we don’t know.
Comment by Jon - BMR — September 22, 2015 @ 9:34 am
EQT – Last call to board.
Comment by dave — September 22, 2015 @ 10:14 am
Dave, with all due respect, your starting to sound I like the “boy that cried wolf”. Hope your right this time but I’m not holding my breath.
We can all say the same about GGI and WRR. These markets are brutal and its hard to pinpoint a run on any stock.
Comment by Jeff — September 22, 2015 @ 11:04 am
Jeff – “the boy who called wolf”, “hope your right THIS time”.
When have I been wrong????? Last time I called to get in it ran to .22
But if your nervous, sell your shares.
Whatever the opportunity the market gives anyone tomorrow at these prices, it’s the time to be buying, not selling.
Comment by dave — September 22, 2015 @ 2:55 pm
Jeff, dave has provided a lot of great insight on EQT but you are also right that these are tough markets and really hard to pinpoint when a run is going to happen. Because of the tough markets I think people are now quick to take profits on any run up in prices which limits some of the upside potential. I also think we need to hear word that the drills are going before we get much more action on EQT and GGI. I own both and anxiously wait for word on when the drills will be fired up.
Comment by Danny — September 22, 2015 @ 3:14 pm
I want that new out saying GGI start drilling!!
Comment by Martin — September 22, 2015 @ 3:30 pm
If Jon is able to pin point drill target by now, GGI knows exactly where to drill. Let’s get moving!
Comment by Martin — September 22, 2015 @ 3:37 pm
Jon, have you some news for GBB. We can see a big volume of trade today. Something will happen soon?
Comment by Carl — September 22, 2015 @ 3:44 pm
Martin, let me emphasize, a geologist I am not, though I’ve learned plenty about the Sheslay district over the last 2+ years from speaking with some of the best in the business when it comes to knowing these things…the map we put out, highlighting areas “1”, “2” and “3” at Grizzly Central, based on what is now known about the district, the far left corner of area “1” is considered particularly promising for a potential discovery given its proximity to a mag high, the nearby cross-cutting structures, and strong geochem (this area is bounded by the faults). Pinpointing the precise location and the angles/directions of the initial holes is obviously key. As GGI stated, they are moving aggressively toward drilling – they are going thru the final stages of making sure they’re selecting the target with the best chance of success right off the bat…this is not a case of “messing around”…this is VERY serious business, gentlemen, because if things are carried out properly and wisely, a very important discovery could be made here that could have really significant consequences…we know the window they have to drill…they’re on pace, within that window…
Comment by Jon - BMR — September 22, 2015 @ 4:27 pm
Totally agree Martin, enough messing around. Time to start drilling!!
Comment by Danny — September 22, 2015 @ 4:27 pm
Dave
26.EQT no drilling before mapping, propecting, survey…….2-3 months !
Comment by Guy Delisle — July 30, 2015 @ 7:10 am
28.Guy – they will be drilling no later than last week of August.
Comment by dave — July 30, 2015 @ 9:01 am
Comment by Guy Delisle — September 22, 2015 @ 4:29 pm
For those who like report, this is where GGI was at assessing the grizzly in 2009
google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB8QFjAAahUKEwjXkM2U-YvIAhVMGT4KHTw6DaY&url=http%3A%2F%2Faris.empr.gov.bc.ca%2FArisReports%2F31145.PDF&usg=AFQjCNH0MktYN6csrHK99Laibvu2SnYZOw&bvm=bv.103388427,d.eXY
Comment by Martin — September 22, 2015 @ 5:00 pm
You right Jon, just can’t wait anymore! 🙂
Comment by Martin — September 22, 2015 @ 5:05 pm
Notice the mega pipe trending NNE on grizzly south central!
Comment by Martin — September 22, 2015 @ 5:08 pm
What’s interesting, Martin, is you’ve got that structure at the far south of the current Grizzly Central target area, with geochem and mag signatures as well, so a 5 km N-S trend, stretching 5 km east-west, is what has been defined so far, based on historical, recent and current work…95% is overburden-covered…we know from the Regoci interview that some test pits are showing the Stuhini rocks as little as a few feet under in some instances…I’m guessing the overburden goes from as little as a meter to 25-30 meters in some areas…there are targets all over here…the trick is to pinpoint the best possible location for drill holes right off the bat…the knowledge of the district, and the Grizzly, have grown literally exponentially over the last 2 years, perhaps even by a factor of 100…Farshad confirmed a discovery on his 8th hole in 2013, knowing far, far less about the Hat and the district than he does now…that’s why I’m saying GGI has a greater chance at a discovery more quickly at Grizzly Central…historical drill hole success rate in the district is in excess of 70%…you’ve got to like these odds, they’re about as good as it gets in the industry. I hope I’m right on my call – within 3 holes we have a new discovery in the Sheslay district, and that will have an enormous impact on not only GGI, but DBV as well…and give the overall market a shot-in-the-arm…the market is starving for a new grassroots discovery, and the chances here are unusually good.
Comment by Jon - BMR — September 22, 2015 @ 5:23 pm
This part of the main anomaly was assess because easy helico access!
Comment by Martin — September 22, 2015 @ 5:24 pm
This is huge, but area 1 west as you refer, Jon, is so crush and mixed that at some point you have to drill it to see I guess. Then, like Dr razique did with area 1A, get a better angle if required. (just a non geologist opinion)
Comment by Martin — September 22, 2015 @ 5:36 pm
The “sweet spots” tend to be near these fault structures, Martin, that’s the district model…that’s why area 1 is so interesting to many, it’s completely bounded by the faults and you’ve got some intense cross-cutting action…mag lows near mag highs…very good geochem…those are the district “discovery” signatures…we don’t know for sure that that’s where they’re going to drill first, but it’s an obvious area to hone in on…would love to also see them pop a hole into that pipe-like structure in the south, starts at a depth of 50 m and has a minimum 150 m diameter based on IP data…what the heck is it?
Comment by Jon - BMR — September 22, 2015 @ 5:45 pm
I am sure they will hit, at Star and Hat you have a massive NW-SE structure. This could not be as clear as when DR Razique wrote the bible of the area :-p
Now you have the same structure plus a even north south trend structure hitting each other. Bring on the grade!
Comment by Martin — September 22, 2015 @ 5:48 pm
Yes been wondering for some time now. Back to area one, you have copper creek with some historical grade of .47% cu meeting structure of copper creek of about the same result.
Comment by Martin — September 22, 2015 @ 5:55 pm
Dave, trust me I’m not nervous about EAR or GGI as I have a 6 digit position in both as well as WRR.
I have an open order to buy another 50,000 more EQT at .145 as think we’re going to have one more shake out before it’s “time to board the train”!!!
GLTA!!
Comment by Jeff — September 22, 2015 @ 5:55 pm
25.Yes been wondering for some time now. Back to area one, you have copper creek with some historical grade of .47% cu meeting structure of pyrrhotite creek of about the same result.
Comment by Martin — September 22, 2015 @ 5:58 pm
You think it could revive the cdnx, could we get a CXO GQC type of rally even in those brutal kind of market Jon?
Comment by Martin — September 22, 2015 @ 6:13 pm
If they hit a sweet spot, Martin, yes. Same applies with EQT, if they hit massive sulphides and make a new discovery near Voisey’s Bay. These are the 2 best near-term chances in Canada to liven up the market.
Comment by Jon - BMR — September 22, 2015 @ 6:25 pm
Jon, hopefully we’ll get a “Triple Play” with GGI, EQT and WRR which is drilling 6 high grade gold targets now!! If they all hit with excellent results, that would really lift the Venture!!!
Comment by Jeff — September 22, 2015 @ 6:35 pm
lets hope DBV, GGI and EQT together wake up this market soon! All will be drilling soon!
Comment by DDD4 — September 22, 2015 @ 6:40 pm
Jeff – If my info coming to me is correct, you won’t see .145
Comment by dave — September 22, 2015 @ 6:49 pm
Also Jeff, I am expecting a green close on EQT, Lets see what happens.
Comment by dave — September 22, 2015 @ 7:03 pm
Jeff and DDD4, I agree for sure. Lets get the drills turning. I also wanted to point out that EQT is doing a symmetrical triangle and today should have been the low, it should go up tomorrow. But then again!
Comment by dave — September 22, 2015 @ 7:06 pm
I like hat trick better
Comment by dave — September 22, 2015 @ 7:07 pm
Dave, you could be right but either way it will be a “Win-Win” for me. Still waiting for GGI press release on the start of drilling, not sure who’s going to drill first EQT or GGI??
Comment by Jeff — September 22, 2015 @ 7:16 pm
Actually could have a quad, with GGI,DBV,EQT and WRR , and who knows maybe 5 if GGB ever gets the permit??
Comment by Greg — September 22, 2015 @ 8:44 pm
China’s industry is currently in its biggest dip since the year 2009.
Stimulus package coming up?
Comment by ConcernedCitizen — September 22, 2015 @ 11:08 pm
The weak outlook for the nation’s factories puts more pressure on the government to step up fiscal and monetary stimulus between now and the end of the year to reach its target. Economists said China has more leeway to reduce interest rates given that the U.S. Federal Reserve held off on an anticipated rate increase. And it will likely cut required bank reserves to stem an outflow of capital seeking higher returns abroad.
“I think they still have plenty of room to ease monetary policy,” said BBVA Research economist Xia Le. “I think we’ll see it stabilize in the fourth quarter.”
Comment by ConcernedCitizen — September 22, 2015 @ 11:12 pm
PE- could finally be bouncing here on good bid support……the profit taking seems to be done
Comment by DDD4 — September 23, 2015 @ 5:32 am
Stink bids around .50 would be smart, DDD4.
Comment by Jon - BMR — September 23, 2015 @ 6:11 am
OK – What we thought was going to be news of the ground work turned out to be an update on the people and the camp in general. It was sent out to several people. So, we go with the theory that EQT is in the symmetrical triangle pattern and I can sure handle that as the apex will narrow soon.
Comment by dave — September 23, 2015 @ 6:18 am
PE- I think a bottom is about to be found…..probably mid .50s.
Comment by DDD4 — September 23, 2015 @ 6:21 am
PE – Stockta shows support at .52, but I think maybe .55 might be the bottom here. Jon would be correct with stink bids at .50 just in case.
Comment by dave — September 23, 2015 @ 6:23 am
.50 might be hopeful but a stink bid there would be a good strategy. I’m not sure I’d wait for .50, though. Mid-50’s, like you say, Dave, would probably deliver a nice short return.
Comment by Jon - BMR — September 23, 2015 @ 6:28 am
Checked TA.
EQT – moving to the positive
PE – The CCI is below zero. It is sometimes good to wait until it crosses zero the the + side.
Comment by dave — September 23, 2015 @ 7:21 am
Jon, I too would appreciate a comment on GBB. Do you guys still own shares? You did recommend purchasing GBB a while back so it’s only fair that you comment even if it’s now negative.
Comment by Ted — September 23, 2015 @ 7:23 am
Ted, nothing has changed with GBB…as we’ve been saying for several months, they MUST GET THE CA from the Quebec government…nothing will happen until that time. That process has dragged on for much longer than the company suggested it would last year, and both parties are to blame for that IMHO as GBB never should have given a timeline on this as they did. The CA is inevitable in our view, and the latest rumor is within a couple of months, prior to year-end…but that authorization is critical. As far as the project itself is concerned, Granada is looking as good as ever. It’s a multi-million ounce deposit and Frank Basa and his team have the know-how to make it work. So that’s your update, neither negative or positive really. It’s just that they need the CA. Unfortunately in Quebec, when the PQ came into power, the bureaucracy changed quite significantly, and this has slowed down the permitting process for many companies. Some environmentalists hijacked the bureaucracy. If GBB can get the CA quickly enough, they may be able to avoid doing a rollback. Longer-term, if you believe in higher Gold prices, GBB is sitting on a VERY valuable piece of property.
Comment by Jon - BMR — September 23, 2015 @ 7:38 am
biv.com/article/2015/9/lawsuit-week-mining-exploration-firm-claims-first-/
Comment by DDD4 — September 23, 2015 @ 8:14 am
Link above is about DBV’s lawsuit….hopefully national coverage is next….
Comment by DDD4 — September 23, 2015 @ 8:33 am
Right on that’s the first news to hit the media about the DBV position and it’s about time.
Comment by Les — September 23, 2015 @ 9:04 am
It’s high time the bs and the antics of Chief Day are exposed . We can all thank the BMR guys for their hard work in this process.
Now Mr. Day what will you have to say for yourself in court if you have the balls to show up.
Comment by Les — September 23, 2015 @ 9:15 am
Thanks, Les, Chad’s troubles may have only begun.
Comment by Jon - BMR — September 23, 2015 @ 9:17 am