Gold is enjoying a strong day, thanks to short-covering, weakness in the greenback and equity markets, and other factors…as of 9:00 am Pacific, bullion is up $26 an ounce at $1,156…it has traded between a low of $1,133 and a high of $1,158 (resistance at $1,160)…Silver has added 38 cents to $15.16…Copper is off a penny at $2.30…Crude Oil is up slightly at $44.73 while the U.S. Dollar Index, continuing to meet stiff resistance around the 96 level, has fallen half a point to 95.72…
Some UBS analysts are starting to cozy up to Gold again. “The prospect of Fed normalizing policy has been the main driver for Gold’s correction over the past few years,” they wrote in a note…but they believe the market has gone too far, punishing Gold ahead of presumed (and now delayed) rate hikes…in this, UBS sees a new – and lower – world order of interest rates which could be seen as bullish for bullion…
Holdings in SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, rose for a 2nd straight session yesterday, providing some support for prices…the fund added a modest 0.60 tonnes, bringing total holdings to 676.40 tonnes…some fresh accumulation here is long overdue, and that’s one factor that could give Gold prices a further lift going into year-end…
Meanwhile, Gold purchases in India are predicted to climb in the final quarter to the highest level since 2012, adding to signs that lower prices are spurring a resurgence of buying in Asia…demand may jump as much as 15% from a year earlier, according to Bachhraj Bamalwa, a director with the All India Gems and Jewellery Trade Federation…that would boost consumption to about 230 tons, the highest for the quarter since 261.9 tons in 2012, World Gold Council data show…demand usually peaks in the final quarter in India with gifting during festivals which begin at the end of this month and culminates with the start of the wedding season in November…
Analysts at Capital Economics confirm the above – they expect the metal to get solid support from improving physical demand out of Asia. “We expect total imports by China and India to pick up substantially in the remainder of the year as low prices and a lack of attractive investment alternatives prompt additional buying,” they said in a research note today…
Asia
Japan’s Nikkei average tumbled 500 points or nearly 3% overnight after a 3-day holiday…the Markit/Nikkei Japan flash manufacturing PMI was released this morning and came in at 50.9 in September from a final 51.7 in August…the index remained above the 50 threshold that separates expansion from contraction for the 5th straight month, but fell for the 1st time in 3 months…
China’s Shanghai Composite added 28 points to close at 3144…
Europe
European markets were down sharply today…on a positive note, German business sentiment rose in September…the business climate index came in at 108.5, a slight tick up from August’s revised figure of 108.4…
North America
The Dow is under pressure for the 3rd straight session, off 201 points as of 9:00 am Pacific…investors are positioning ahead of a speech later today, after the market closes, by Fed Chair Janet Yellen…she’ll be speaking on inflation before an audience at the University of Massachusetts (no questions allowed)…
Caterpillar Inc. (CAT, NYSE), a major Dow component, projected further revenue declines this morning and announced plans to cut more than 10,000 jobs over the next 3 years as the maker of engines and heavy equipment continues to feel the impact from weakness in the energy and construction markets…the company also reduced its 2015 revenue view by $1 billion to about $48 billion, marking the 3rd straight year that its revenue has fallen…Caterpillar sees its 2016 revenue dropping another 5% from 2015, which would be the first time in its 90-year history that revenue has decreased 4 years in a row…
The U.S. manufacturing industry lost momentum in August, though the headline number was in line with expectations…according to the latest data from the Department of Commerce, new orders for long-lasting manufactured goods fell by $4.8 billion, or 2%, to $236.3 billion in August, snapping 2 consecutive months of strong gains…stripping out the volatile transportation sector, demand for manufactured goods was unchanged at $158 billion in August from July (vs. expectations of a 2% rise)…
In Toronto, the TSX is getting some help from a strong Gold Index today and is down just 108 points as of 9:00 am Pacific…two producers whose bullish charts we examined yesterday are having a solid day…Kirkland Lake Gold (KGI, TSX) has surged 59 cents to $5.98, while Klondex Mines (KDX, TSX) is up 14 cents to $3.38…
The Venture is off 2 points at 543 as of 9:00 am Pacific…drilling has commenced at Equitas Resources’ (EQT, TSX-V) Garland Nickel Property near the Voisey Bay’s mine (refer to our piece last night)…EQT is off a penny at 18 cents as of 9:00 am Pacific after trading as high as 19.5 cents…EQT is looking very healthy, trading within both a broad upsloping channel and a pennant formation similar to the one in August…
Venture 4-Month Daily Chart
The Venture’s key hurdle remains its EMA(20) which the Index has repeatedly and unsuccessfully tried to overcome the last few weeks…above the EMA(20) is also chart resistance at 560…so that’s the area that needs to be cleared in order for the Venture to gain traction…RSI(14) on this 4-month daily chart has worked its way out of oversold conditions but has fluctuated in a narrow range throughout September so far…a break above 50% would be significant…
Pure Energy Minerals (PE, TSX-V) Update
Pure Energy Minerals (PE, TSX-V) has been under technical pressure since a pivotal trading day September 16 when it gapped up and hit a new multi-year high of $1.03 before going into reverse…some “exhaustion” had set in, as John’s charts pointed out, with temporarily very overbought RSI(14) conditions that simply needed to unwind (PE quadrupled in just 2 months, and the 75-cent Fib. resistance level is where we got a little nervous)…
Exceptional support exists around 50 cents, and this morning PE touched a low of 51 cents before turning higher…as of 9:00 am Pacific, it’s now up 7 cents at 62 cents on perhaps another “pivotal” session…John’s updated 2.5-year weekly chart shows how the RSI(14) unwound to 61% yesterday…bargain-hunters stepped in this morning on PE in the low 50’s…it’s possible that area could be tested again, but clearly that’s where superb support does exist…the long-term trend remains very positive here, and the pullback was a healthy development…
Kaminak Gold Corp. (KAM, TSX-V) Updated Chart
Yesterday, we reported how Kaminak Gold (KAM, TSX-V) has been able to “sweeten up” its Coffee Project in the Yukon with an updated resource estimate showing increases in both grade and tonnage…meanwhile, the company’s feasibility study, initiated in the summer of last year, is on track for completion during the 1st quarter of next year…capital costs, operating costs and production metrics are tracking in line with estimates in the PEA, Kaminak confirmed yesterday…the PEA outlined a high-margin, 11-year, open-pit Gold-mining opportunity using a Gold price of $1,250 (U.S.) and a Canadian/U.S. exchange rate of 95 cents, generating a pretax net present value of $522 million and an internal rate of return of 33%…the much lower Canadian dollar – if it remains around current levels – could turn out to be very helpful for the economics of this project – just as Pretium Resources (PVG, TSX) is experiencing at Brucejack where mine construction is starting…
KAM is up 3 cents at 85 cents as of 9:00 am Pacific…lots of value here fundamentally, and what’s encouraging about this 2.5-year weekly chart is the head-and-shoulders bottom…KAM is also now pushing above its 200-day SMA (not shown on this chart) which is rising gently…
NexGen Energy Ltd. (NXE, TSX-V) Update
As reported Tuesday, NexGen Energy (NXE, TSX-V) continues to hit high-grade uranium mineralization as a major drill program continues at its Rook 1 Project in the Athabasca Basin…the Arrow zone now comprises 4 high-grade shear zones – A1, A2, A3 and A4 – that are subparallel to each other in sequential order from northwest to southeast…
Technically, NXE is fighting some resistance at its declining 50-day SMA (69 cents) but RSI(14) has unwound to support at the 50% level and has also formed a bullish “W”…excellent chart support at 60 cents…with continued strong results, and the potential for an improved overall market, NXE could be poised for another “leg up” beginning in October…
NXE is off a penny at 68 cents as of 9:00 am Pacific…
Note: John and Jon both hold share positions in EQT. Jon also holds a share position in PE.
EQT – If it stays in this triangle pattern and you look at John’s chart from yesterday, you will see that the lines touch on the last day of Sept. So next Tuesday or Wednesday she should break out. Again, it’s amazing how timing can run in sync with news. The PP should be announced closed on Monday. They will be in day 34 or 5 of drilling the first hole. It all adds up. The trading range is already narrowing as you can see by todays action. The lowest I am expecting is .165 or .17 and the high .185, then she breaks open.
Comment by dave — September 24, 2015 @ 9:52 am
oops, meant day 4 above
Comment by dave — September 24, 2015 @ 9:53 am
Anyone have any thoughts on the first hole? Is this just an exploratory hole until they have the drill target at anomaly Q? There seems to be intense interest at this newly discovered anomaly as it is very large.
Comment by Dan1 — September 24, 2015 @ 10:19 am
Area D was one of 4 main targets. A and B are out. Despite new targets, D and C hold the most promise and depth to top of D is only 20m. My guess is they already are at depth and if there was anything earth shattering it would have been halted by now. Just my opinion.
Comment by Treb — September 24, 2015 @ 10:22 am
With regard to my previous comment, I was referring to what was ‘known’ after the VTEM. Obviously their focus has shifted given their new understanding as per the latest update.
Comment by Treb — September 24, 2015 @ 10:31 am
No way Treb, they just got the drill turning, have to give it a few days.
Comment by dave — September 24, 2015 @ 11:01 am
Anomaly D (582800E | 6223725N) is modelled as a 300m, east-west striking, flat-lying plate with a dip extent of 100m. Conductance is modelled at 30 Siemens. Depth to top is interpreted at 20m.
Drilling of anomoly D had already commenced prior to the update 2 days ago. How long do you figure it takes to drill to those depths? Like you I’m hoping for them to hit but just don’t think D will be it. I sincerely hope I’m wrong though. 🙂
Comment by Treb — September 24, 2015 @ 11:31 am
I don’t see it breaking out till next week seriously, the PP should close Monday. The Symmetrical triangle will complete its down cycle for probably the last time tomorrow. All is good right now. I’m expecting a strong breakout.
Comment by dave — September 24, 2015 @ 11:38 am
Starting off they should be able to drill 80-100 meters per day. Treb, how do you know the drill started two days ago? The new ground geophysics more than likely picked up a more detailed model of anomaly D. Who knows the good stuff may be deeper.
Comment by Dan1 — September 24, 2015 @ 12:05 pm
From the update: “Springdale Forest Products have commenced drilling with borehole GP15-001 (collar at 582975E, 622376N, NAD 27 – UTM Zone 20N, Az. 290, Dip -55).” I assumed this meant that the bit was turning but I’ll defer to more knowledgeable types to correct me. Depth to top is 20m but you are correct. The good stuff, if any may be further down and a new model may suggest something entirely different.
Comment by Treb — September 24, 2015 @ 12:53 pm
It’s time to get news from DBV!
Comment by Guy Delisle — September 24, 2015 @ 2:09 pm
Equitas Resources (TSXV:EQT; FSE:T6UN) VP of Exploration Everett Makela discussed their Garland nickel property with CBC radio. The Garland Property, which has started drilling, is located in Labrador.
In the interview Mr Everett is quoted as saying:
We are In the right place, poised to drill and expect to have results in the coming months. If we find something it is going to be big, we have a 25 person camp and morale is high
The Garland Property is a large, under-explored land package in an early-stage world-class nickel district and near the Voisey’s Bay Mine, one of the world’s largest and highest-grade nickel mines.
http://investingnews.com/daily/resource-investing/base-metals-investing/nickel-investing/equitas-resources-discusses-garland-property-with-cbc-radio/
Comment by Dan1 — September 24, 2015 @ 2:17 pm
Wow, you have to listen to the interview. He is as confident as anyone I have ever heard regarding a hit. The interviewer said it could be worth millions, Everett corrected her and said no, it would be billions!! He said he is a poker player and he really likes his cards here. I am stoked!!
Comment by Dan1 — September 24, 2015 @ 2:36 pm
She also asked him it it would be a couple of months before results. Makela said it would be as soon as they know which could be shortly. That means any sign of visuals and we will know.
Comment by Dan1 — September 24, 2015 @ 2:39 pm
Sorry for all the post but here is the direct link to the interview.
http://cdn.investingnews.com/wp-content/uploads/EquitasCBC2015.mp3
Comment by Dan1 — September 24, 2015 @ 2:41 pm
Treb, I believe the news release said they started drilling yesterday. Again, the PP has to close Monday and they will only have completed 3 days of drilling. I have never known for a stock to announce drilling and the next day announce a finding. Again, I don’t expect it to break out till the triangle sets up for it, and that would be mid week next week.
Comment by dave — September 24, 2015 @ 3:36 pm
Jon, you said you would be elaborating on this statement last night.
“Dave, we’ve come across some new information tonight concerning the extension to the west that is interesting, and we’ll be elaborating on this more as soon as we can.”
When should we expect the update?
Thanks,
Comment by Dan1 — September 24, 2015 @ 4:27 pm
Drilling next week Jon?
Comment by Martin — September 24, 2015 @ 6:35 pm
Probably over the weekend, Dan…we’re getting some assistance with regard to some government data and we want to verify some facts..I will say this, my opinion only…the southwest portion of Garland is where I believe they have the best shot…very interesting structures there…
Comment by Jon - BMR — September 24, 2015 @ 7:02 pm
GGI is drawing close, Martin…I would imagine they are completing some final geophysics to put the last pieces of the puzzle together with regard to the best location to drill at Grizzly Central…given that everyone already knows this is a mineralized corridor, with the strong probability of more deposits, this is not about “exploratory drilling” in my opinion…they should be able to take direct aim at a “sweet spot” to target a discovery within the first few holes simply by matching signatures…so this is about accuracy, pinpointing this so effectively they have a great shot at a first-hole strike like at Rodadero where they used hyperspectral data to connect instantly…
Comment by Jon - BMR — September 24, 2015 @ 7:10 pm
EQT – Dan, if you listen a couple times to that interview, his voice tonnage leads you to believe they found something significant at surface and they are extremely confident one of these first couple holes hits big.
Also, Makela says the drill will turn after the weather clears up so it may have been delayed from yesterday. They have been having a lot of early morning fog right now. I understand he had to leave the bush to take care of something very important and thus did the interview too. I understand of coarse that Mr. Lee is THE MAN and is standing right by the drill. I also understand that all wifi and communications to the camp will be turned off and Makela will be notified first of any significant hit. He will be the first outside of the crew there. However, Makela is expected back to the property shortly. Kyler’s visit in Aussie was very successful and he returns this weekend. Latest on the tid bits.
Look for a breakout come Tuesday or Wednesday.
Comment by dave — September 24, 2015 @ 7:51 pm
Oh, I realize that everyone wants to be a millionaire tomorrow, but let the chart do its thing for next week. Selling now would be like finding a tree with a strong rope.
Comment by dave — September 24, 2015 @ 7:57 pm
Dave- what was Kyler doing in Australia?
Comment by DDD4 — September 25, 2015 @ 3:25 am
EQT’s Hardy Interview
b-tv.com/equitas-resources-ceo-clip/
Comment by MURF — September 25, 2015 @ 4:41 am
Interesting, I had to listen 6 times to the final 10 seconds or so of what Hardy stated at the end of this, to make sure I heard it right…
Comment by Jon - BMR — September 25, 2015 @ 5:42 am
Jon, no kidding, very surprised to hear this at this time!!…almost miss it at the end!!
Comment by Bob — September 25, 2015 @ 5:52 am
DDD4 – Kyler in Aussie – chess game, rook taking pawn. Hint: notice no insider selling on this PP. he he he he
Comment by dave — September 25, 2015 @ 6:15 am
EQT gang – chill out. This should be a red day. The triangle is lining up nice. The apex crosses Next Wednesday.
Perfect timing for the PP to be closed and word coming out on the drill maybe. Understand that she should run regardless of word on drill, it will run on anticipation. Look for the .23 to be broken mid week next week and going forward.
I’m thinking a .165 close today and even with that I will have a great weekend. If she closes positive, all that means is she is gonna break up before the apex and something trickled out.
Jon, I listened 4 times to the end of his presentation. I am very excited and confident something big will be found somewhere on that property.
Comment by dave — September 25, 2015 @ 6:26 am
That is what he said Jon. What they are pulling out of the ground.
Comment by Dan — September 25, 2015 @ 6:33 am
This interview must have happened quite recently? That is so positive.. are people catching on???
Comment by Kenzie — September 25, 2015 @ 6:34 am
Copper will slump as the U.S. Federal Reserve starts to raise interest rates, demand growth stalls in China and stockpiles surge, according to Goldman Sachs Group Inc., which stood by a year-end forecast that signals the biggest annual drop since the global financial crisis.
Copper prices will probably drop to $4,800 a metric ton by the end of December and $4,500 at the end of next year, analysts including Max Layton and Jeffery Currie wrote in a report.
The New York-based bank said consumption in China wouldn’t grow at all this year, and forecast global surpluses of at least 500,000 tons from 2016 to 2019.
Comment by ConcernedCitizen — September 25, 2015 @ 6:35 am
So the interview… geologists are very excited about ‘what they ARE seeing ‘ coming out of the ground
How can they state anything like this when drilling has just started???? Interview was Sept 24th…
If they can drill 100m per day and drilling started only days ago.. one wonders … is this another CEO promotion????
Am I missing something here????
Comment by Jeremy — September 25, 2015 @ 6:36 am
One more thing I want to note, not that half of you will read this, but I’m throwing it out there anyway. We are at a point where the daily high and low is going to narrow. I sold and bought my trading position the last 2 weeks, but I am standing pat right here right now. I will only be a BUYER if it drops to .16 or .165 – We are to close to the apex and the price movement will be minimal. Next week this stock could be halted at any minute and you could be having to buy much higher. Just some words of advice to ya’ll.
Comment by dave — September 25, 2015 @ 6:37 am
PE is having a nice rebound. Congrats to anyone catching it and making money.
Comment by dave — September 25, 2015 @ 6:51 am
I just listened to Hardy’s interview. He said the crew is very excited about the fantastic intercepts….I thought we just started to drill? Yes I also listened a couple of times to the last 10 seconds or so. Perhaps I am missing something??
Comment by Jamie — September 25, 2015 @ 6:57 am
I’m a little perplexed by that as well, Jamie. Hardy’s exact words: “We’ve seen fantastic intercepts and our geologists, geologists that have a ton of experience in that camp, are getting very, very excited about what they’re seeing come out of the ground.” One could give him the benefit of the doubt regarding that statement – let’s just say it’s true, but to me it seems strange he would be stating those things at this stage of the game. Premature at this point to judge anything, but we’re trying to get some clarification from the company regarding those specific comments.
Comment by Jon - BMR — September 25, 2015 @ 7:14 am
Dave like others on here I appreciate all the information that you’re providing us on EQT.
I do have one question how are you affiliated with this company are you the IR person? just curious, keep up the good work buddy.
Comment by Jeff — September 25, 2015 @ 7:17 am
Jeff – No affiliation. Contacts are very important.
Comment by dave — September 25, 2015 @ 7:40 am
Maybe they started drilling sooner when we all thought?
Comment by Greg — September 25, 2015 @ 7:40 am
Jon – As the story of EQT has evolved so far to this point and with drilling taking place now, can you imagine what will happen to this stock if they pull a decent depth of 5% nickel up. It makes my head spin. Nice to dream a little.
Comment by dave — September 25, 2015 @ 7:50 am
CC – copper prices . Producers are also sitting with a huge surplus in their warehouses. Last report Antofagasta had 1.3 million pounds in storage.
Comment by Les — September 25, 2015 @ 8:18 am
Remember Noront … .50 to 2.. then to 4… then to 7 on a 7% hit… share structure at that time unknown…
Comment by Jeremy — September 25, 2015 @ 8:23 am
We just got clarification from EQT regarding those comments by Kyler, thanks to some digging by John…this comes straight from EQT – Kyler was referencing the VTEM data, not drill core…this wasn’t clear on the video that was produced (the interview was done before drilling started) and could easily be interpreted as referencing drill core, which didn’t make any sense to me…..there was no intention on Kyler’s part to mislead anyone – yes, indeed, the VTEM data is very, very good and has enabled their geologists to see under that “next slice” of rocks that were overlooked historically…this was a video production slip-up (not a Kyler slip-up) IMHO as the context should have been made more clear…Kyler has been very upfront and direct about everything regarding this project from Day 1…
Comment by Jon - BMR — September 25, 2015 @ 8:28 am
Thx Jon and John…. important to have that transparency!!
Comment by Jeremy — September 25, 2015 @ 8:41 am
TSX insider trade marker for yesterday shows one insider EQT buy for 18k shares @.19 cents. Nice to see considering insiders also participated in the ft pp.
Comment by Treb — September 25, 2015 @ 8:45 am
Link:
tmxmoney.com/TMX/HttpController?GetPage=SearchInsiderTrade&Language=en&Submit=Submit&QuerySymbol=eqt&x=28&y=8
Comment by Treb — September 25, 2015 @ 8:46 am
Indeed, Jeremy…nice video, it’s just that the producers (who may not be mining/exploration experts) should have provided better context with regard to those comments…Kyler was thinking and saying one thing, which was actually accurate and honest, but it’s too easy to misunderstand what he was referencing…
Comment by Jon - BMR — September 25, 2015 @ 8:49 am
Jon- thanks for that clarification on EQT video…..
Comment by Bob — September 25, 2015 @ 8:49 am
video explanation – ya – thats what I thought, since those things take a couple days to edit etc and Kyler is in Aussie land for a few days already, drill core would have been a stretch.
Im surprised that EQT didn’t see the video before it was posted, just to cover the butts of the production house, at which point EQT could have caught that comment. but it works well for keeping the mo-mo hot
Comment by david — September 25, 2015 @ 9:44 am
Also, that video was done a week ago in Toronto even though it has a 24th date on it.
Comment by dave — September 25, 2015 @ 9:48 am