Gold has traded between $1,127 and $1,148 so far today as it comes under further pressure following comments by Fed Chair Janet Yellen after markets closed Thursday…as of 8:30 am Pacific, bullion is down $12 an ounce at $1,134…Silver is off 58 cents at $14.55…Copper is trading at $2.27…Crude Oil has declined 90 cents to $44.80 while the U.S. Dollar Index has reversed lower, down more than one-tenth of a point at 96.03…
Despite Yellen’s remarks regarding the “likelihood” of a Fed interest rate hike before the year is out, the central bank may have already missed its window to raise rates given a slowing global economy and the looming threat of a U.S. government shutdown in December…long-time Fed foe Peter Schiff was more blunt and colorful in his latest assessment of the Fed during an interview on CNBC. “The whole world has been fooled by this Fed con,” said the Euro Pacific Capital CEO. “Most people believe the Fed. They believe the Fed is going to raise rates,” he added.
Schiff has long posited that the Fed will never raise interest rates, contrary to general consensus…in fact, he believes the likelihood of another round of easing is greater than a rate hike. “I don’t think she ever intended to hike rates,” he said. “They are in a monetary roach hotel, and they will never be able to raise rates back up.”
One should never say never, but one thing’s for sure – the Fed’s credibility is really on the line during Q4, and that’s a potential bullish set-up for Gold…several Fed officials are scheduled to speak this week, keeping the focus firmly on U.S. monetary policy…
As of last Friday, holdings in ETF’s backed by Gold increased 10.4 metric tons since the Sept. 17 Fed decision…options trading is showing bears may be starting to back away…the put-to-call ratio for SPDR Gold Shares fell last week to the lowest since 2012, according to data compiled by Bloomberg…
Russia Flexes Its Muscles Again
Another troubling sign of declining American influence in the world under President Obama as Iraq has joined Russia, Iran and Syria in a new agreement to strengthen cooperation against the Islamic State terrorist group, extending the Kremlin’s reach in the Middle East…in recent days the Russian government has stepped up criticism of the U.S. program to train and equip Syrian rebels to fight ISIS, an effort that the U.S. military acknowledges has only produced a handful of fighters…Vladimir Putin and Obama will hold their first formal meeting in more than 2 years at the U.N. later today…Putin continues to play Obama like a fiddle…words are cheap…speaking at the U.N. this morning, prior to his meeting with the Russian leader, Obama declared, “I lead the strongest military that the world has ever known, and I will never hesitate to protect my country or our allies.”
More Weak Data From China
Chinese industrial profits declined 8.8% on year in August, their sharpest fall since 2011, according to China’s National Statistics Bureau…analysts said the report wasn’t surprising given the string of recent weak economic indicators, such as tumbling producer price inflation and factory activity…
Attention now turns to China’s official September PMI and the final Caixin/Markit PMI, both due on Thursday…the reports will be closely watched after Caixin’s preliminary reading for September touched a 6-and-a-half-year low of 47, well below the key 50-level…
Today’s Equity Markets
Asia
China’s Shanghai Composite added 9 points overnight to close at 3101 while Japan’s Nikkei slid 235 points or 1.3%…markets in Hong Kong, South Korea and Taiwan are closed today…to help mitigate the impact of a slowing China, India is expected to cut its key lending rate tomorrow amid low inflation, sluggish industrial output, and a below normal monsoon…
Europe
European markets were down significantly today, generally more than 2%…shares in commodities giant Glencore PLC fell by about 30% to a new all-time low as the trader and miner struggles to convince investors that it will be able to meet its debt targets if commodity prices remain low or fall further…
North America
The Dow has slid 212 points as of 8:30 am Pacific…fewer Americans signed contracts to buy homes in August, as pending sales slumped amid broader concerns about the U.S. stock market and global economy…the National Association of Realtors says its seasonally adjusted pending home sales index fell 1.4% to 109.4 last month…meanwhile, U.S. non-farm payrolls for September will be released by the Labor Department on Friday…
In Toronto, the TSX is off 190 points while the Venture is 6 points lower at 535 as of 8:30 am Pacific…too bad there aren’t any Venture companies (yet) with claims on Mars…NASA scientists today are reporting quite a significant discovery on that planet – Mars appears to have not only frozen water but flowing streams of salty water, at least in the summertime…they say their latest observations “strongly support” the long-time theory that salt water flows down certain Martian slopes each summer…
Equitas Resources Corp. (EQT, TSX-V) Update
Equitas Resources (EQT, TSX-V), which commenced drilling last week at its Garland Nickel Project south of the Voisey’s Bay mine, continues to look strong, up another penny-and-a-half to 19.5 cents through the first 2 hours of trading today…technical momentum is very obvious in this morning’s updated 3-month daily chart from John…RSI(14) bounced off support at 50% last week, cleansing temporarily overbought conditions that emerged early this month…you’ll note that a second pennant formed recently, within a broad upsloping channel, similar to the 13-session consolidation pennant in August that preceded an important breakout…a push above the current pennant appears to be in the works…EQT volume (CDN exchanges) has exceeded 1 million shares for 22 straight trading days, including today, so investors’ appetite for this “swing for the fences” discovery opportunity remains intense and could continue to build as the drill keeps turning…
Labrador Still Vastly Underexplored
Below is a chart from the Newfoundland & Labrador Department of Mines & Energy that shows the boom in exploration expenditures that occurred in the 1990’s following the rich Voisey’s Bay discovery, 20 miles northwest of the Garland camp where Inco got very curious a decade later…
The fact that over $250 million was spent in exploration in Labrador in the few years following the Voisey’s Bay discovery has led some to conclude that the area has been thoroughly investigated, but this is NOT the case…although $250 million seems like a large amount, keep in mind that the Voisey’s Bay project itself accounts for about half of this total, and most of the money was spent within a few miles of Discovery Hill…exploration budgets elsewhere in Labrador typically allocated about half the total spending to support services, notably helicopters, thus, the amount of money actually invested on the ground in exploration work is less than it first appears…finally, many of the junior companies (some of which had existed for only a few months previously) were attempting ambitious programs with essentially no experience in either Nickel exploration or the hostile, remote environment of Labrador…some programs were well-managed and systematic, but many weren’t…in some cases, assessment reports were never even submitted to government, and the exploration results cannot be evaluated…the post-Voisey’s Bay exploration boom did not locate a second deposit, but it did result in the discovery of numerous new examples of magmatic sulphide mineralization, many of which merit further attention…at Garland, EQT’s 280 sq. km land package had but 1 hole drilled into it historically prior to the commencement of this aggressive campaign…various corporate distractions got in the way of Inco completing a major program there as some of its geologists wanted to a decade ago…
Athabasca Nuclear Corp. (ASC, TSX-V) Update
Athabasca Nuclear (ASC, TSX-V) has been gently firming up in recent sessions, though many investors are probably still not aware of the company’s recent extensive staking surrounding Equitas‘ land package…this includes ground featuring the presence of troctolities contiguous to EQT’s western extension of its southern response trend (SRT) at Garland…
In an exclusive interview with BMR, Athabasca CEO Ryan Kalt stated, “Like Equitas, we recognize that advances in technology have created opportunities to identify new prospects and look at ground in a new light. Whether it’s the availability of VTEM or drones, accessing newly-released satellite imagery or crunching large volumes of assessment reports through the cloud, the exploration game is changing, and quickly. While new technology certainly doesn’t put ore in the ground, it does make searching for it far more effective. For this reason, it is strange that more people do not regard the exploration part of mining as more of a technology sector since at the end of the day, hardware, software and science are playing an ever increasing role. For efficacy and cost-reduction, a great deal of technology can and should be deployed well before a drill starts turning.”
It’s important to emphasize that ASC is not just a Garland “area play”, though its large land position there could nonetheless give the stock a substantial lift over the near-term if the right events unfold for Equitas…the company is active on several Uranium and diamond projects, has a clean balance sheet and only 52 million shares outstanding…Kalt controls 25% of the stock, and the balance is believed to be in retail hands (no major funds involved which is good)…
We noted recently how ASC has broken out above a long-term downtrend line, a very bullish development in the current junior resource climate…the 200-day SMA, currently 3 cents, is also now turning to the upside, so a major reversal appears to be in its early stages here…more on ASC later in the week…
Garibaldi Resources Corp. (GGI, TSX-V) Update
As Kalt pointed out, not only are advances in technology allowing for important reinterpretation of areas around the rich Voisey’s Bay discovery that were poorly explored or overlooked in the 1990’s, but Garibaldi Resources (GGI, TSX-V) is a great example of a company that has used relatively new technology (hyperspectral remote sensing) to make discoveries in Mexico – the most recent of which was a first-strike high-grade drill hole (Silver Eagle discovery) at Rodadero in Sonora State…
Meanwhile, in northwest B.C.’s prolific Sheslay district, Garibaldi has been using the latest technology to “unmask” a large area at Grizzly Central which has been overlooked historically due to 95% overburden cover…this is truly an emerging world class district, one that we identified for our readers through extensive research more than 2 years ago…given the information that is now known about the region, and Grizzly Central, it’s our view that GGI is on the cusp of another new discovery that could become the third deposit defined along the under-explored, 30 km long mineralized Sheslay corridor…the drilling stage is drawing near…
Technically, GGI has many factors in its favor at the moment including a 50-day SMA that has reversed to the upside, and RSI(14) and price breakouts above downtrend lines…
Biorem Inc. (BRM, TSX-V) Update
In the non-resource area, we’re very excited about Biorem Inc. (BRM, TSX-V) given its revenue and earnings momentum…we first introduced BRM to our readers when it was trading around 30 cents a few months ago…it more than doubled in value at the end of August/early September after its Q2 financial results were released…that created temporarily overbought conditions with the anticipated pullback showing strong support in the 40’s…
With only about 13.5 million shares currently outstanding, Guelph-based BRM is an environmental biotechnology/engineering company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds and hazardous air pollutants…may not sound glamorous but these guys are making money (9 cents per share on total revenue of $9.3 million for the first 6 months of 2015) and that’s what counts…they’re also a major beneficiary of a low Canadian dollar…
John’s latest chart shows an unwinding of the temporarily overbought conditions at the beginning of this month…plenty of Fib. support around current levels as well as a rising 50-day SMA at 38 cents…
Silver Short-Term Chart
Today’s trading is yet another demonstration of how volatile Silver has been since the beginning of last month…the metal has swung between strong Fib. resistance just below $16 and solid support around $14…the band of Fib. resistance between $15.30 and $16.60 has proven to be very stubborn since early June, certainly due to the reality of a slowing global economy with Silver having a lot of industrial uses…
Silver’s immediate challenges are to overcome Fib. resistance at $15.29 and $15.79…RSI(14) continues to trend higher which is encouraging…
Silver Long-Term Chart
An explosive push higher (eventually) – is this actually a scenario that could unfold in Silver over the next couple of years?…quite possibly, given the look of this 34-year monthly chart, though at the moment it’s hard to understand all the factors that could come into play to generate the kind of “Wave 5” move that could develop…
Have we seen the bottom of “Wave 4”?…that’s quite possible, but still too early to tell…encouragingly, RSI(14) has so far managed to hold support which goes back to 2001…
Sell pressure continues to remain very strong, however, as shown by the CMF – amazingly, at levels not seen in nearly 25 years since the low of $3.51…this intense sell pressure at the moment, which started modestly in early 2013, could continue for a while yet…this should be viewed in a larger context as a bullish contrarian indicator given historical patterns…it doesn’t necessarily mean, however, that Silver has found a bottom just yet…
Note: John and Jon both hold share positions in EQT and GGI. Jon also holds a share position in DBV.
Venture getting hammered today. Not sure how the confidence will return to this exchange..
Comment by tony T — September 28, 2015 @ 9:33 am
One drill hole can look after that, Tony. It’s a very bullish sign when many investors have given up hope – the opposite of course to “everyone’s all in” at the top of the market, and it can’t do anything but go higher.
Comment by Jon - BMR — September 28, 2015 @ 9:49 am
I hear you Jon. But if there is no demand for what’s in that hole then how does that hole.reverse the trend ?( ie: China slowing down)
Comment by tony t — September 28, 2015 @ 10:03 am
Another good day for WRR !
Comment by Guy Delisle — September 28, 2015 @ 10:41 am
Tony t , that scenario indicates commodity prices stay low for a long time.
Comment by Les — September 28, 2015 @ 11:20 am
Carl Icahn has a few interesting comments in this article and video. Icahn has recently taken a large position in Freeport Mac.
http://money.cnn.com/2015/09/28/investing/carl-icahn-stock-market-bubble/index.html
Comment by Les — September 28, 2015 @ 11:26 am
Last week Goldman Sachs predicted the slump in the copper price could last years due to the slowdown in China and that prices will probably drop to $4,800 a metric ton by the end of December and $4,500 at the end of next year as the market suffers from oversupply of 530,000 tonnes next year 2016 rising through 2019 to reach 657,000 tonnes oversupply.
Others are less bearish with Citigroup predicting production cuts and mine disruptions will send the market back into deficit in 2016. According to Bloomberg Citigroup analysts are predicting mine output this year will total 18.9 million tonnes leading to small primary surplus. But the market will return to a deficit of 284,000 tonnes next year and stay in deficit – albeit a shrinking one – through 2019. The investment banks sees copper trading above $5,700 by the fourth quarter.
Comment by ConcernedCitizen — September 28, 2015 @ 11:32 am
Tony – I fear that the venture will die a slow death about which we wont see until its too late… volumes have softened and with a 90% drop you would think that peeps would be lined up to buy quality (if there is any) companies..
while my brush is wide, I think that it will take more than a single discovery to turn the index around… there is a lack of interest, and I dont think one discovery will do it..
having said that… once greed returns then boom… one just wonders if human nature will be different this time!
Comment by Jeremy — September 28, 2015 @ 12:18 pm
Sure is dead here today. For what its worth Tony I personally agree with Jons thinking that one new discovery will pump some steam and excitement back into the junior mining market. Demand will always go up and down with world economic conditions but the majors are always looking long term to replenish and grow their assets. Dwindling demand or supply excess, will certainly dictate whther new mines are put into production or not but the majors will ensure they are sitting on cost effective assets that can be put into cash flow mode when they deem the time is right. Of course market condiitons will also have an effect on the price that new deposits are bought out for as well but thats just business.
We all have our own opinions but I am looking forward to potential discovery excitement with EQT, DBV and GGI. Nothing is for sure but I like the odds thus far.
Comment by Jamie — September 28, 2015 @ 12:32 pm
What a blood red day. Wonder if it’s related to the 4th blood moon last night here and tonight overseas.
At least EQT was strong.
Comment by dave — September 28, 2015 @ 12:40 pm
EQT – Not bad today considering the overall market. Once that PP closes, it should be free to fly. When is the 2 million dollar question.
Comment by Dan — September 28, 2015 @ 1:09 pm
The sooner GGI and DBV can get those drills turning the better and hopefully the AU content is high which will make these ore bodies more attractive .
Comment by Les — September 28, 2015 @ 1:29 pm
Just ran across this peace about the big banks being investigated again for price manipulation in the precious metals markets . When will the manipulation end ?
http://money.cnn.com/2015/09/28/news/companies/bank-investigation-metals-market-switzerland/index.html
Comment by Les — September 28, 2015 @ 1:45 pm
In my opinion it’s not the still unclosed PP that’s stopping EQT from running it’s lack of positive drill news. Soon we should get a sense of whether the core visuals are good by market activity assuming it leaks out otherwise the market will be waiting official assay results.
Comment by Jamie — September 28, 2015 @ 1:46 pm
GGI could not get worst market condition to start drilling!!
Comment by Martin — September 28, 2015 @ 5:35 pm
Actually, I think in some ways it’s the best time, Martin. Quite often, important discoveries have been made in very weak overall market conditions. When a company is drilling in situations like this, like Equitas at the moment and Garibaldi coming up, if they hit, they get ALL of the market’s attention (and money that goes with it). Unlike a rip-roaring market like 2010 when they would be part of a much bigger crowd.
Think back to Colorado in 2013. They hit right in the grips of the 2013 market low. The stock went crazy, even as the overall market struggled. It was the only game in town.
Doubleview was drilling in a horrible market in Nov/Dec 2013 and announced their discovery Jan. 20th, 2014. Stock became a 10-bagger, and helped lift the market out of its doldrums.
Equitas and Garibaldi have those same opportunities.
Comment by Jon - BMR — September 28, 2015 @ 6:26 pm
At Les above
My personal opinion Les is that the US GOV’T is behind the Banks Manipulation ie. JPMorgan Chase of the precious metals specifically gold and silver to keep the price down to protect the US dollar at any cost. The last thing the US Gov’t wants is the general public seeing gold and silver reaching new highs everyday and losing confidence in the dollar, it amazes me where I live here in Central California that I hear no one talking about buying gold or silver or mining stocks, maybe they are buying them and they just keep quiet about it as I do, it is interesting though that the physical market for silver right now is very tight as the premiums are the highest that I have ever seen at over 5 bucks over the spot price, something will give eventually, my concern is that when it does it wont be pretty, stock up on guns,ammo water and food…..
Comment by Greg — September 28, 2015 @ 9:37 pm
Glencore up 9%, now is it a dead cat bounce or is this the bottom? https://pbs.twimg.com/media/CQDUeJvW8AAHlBV.jpg:large
Some dude on Yahoo is saying Glencore is the mining sector’s Lehman. IMO This panic and fear mongering is overdone.
IMO China is gonna launch a massive stimulus package to support its industry very soon.
Comment by ConcernedCitizen — September 29, 2015 @ 2:28 am
India’s central bank unexpectedly cuts key interest rate to 6.75% from 7.25%, cites China’s slowdown
Comment by ConcernedCitizen — September 29, 2015 @ 2:31 am
If the stock market doesn’t stop hammering Glencore Plc shares, Chief Executive Officer Ivan Glasenberg should take the company private, according to analysts at Citigroup Inc.
“The markets response is overdone,” said Citigroup, which helped Glencore to list in 2011 and has worked on many key deals since. “In the event the equity market continues to express its unwillingness to value the business fairly, the company management should take the company private, whereby restructuring measures can be taken easily and quickly.”
Citigroup said that even with copper at $4,000 a metric ton and other raw-material prices stable, Glencore would post earnings before interest, taxes and amortization of about $7.5 billion.
Comment by ConcernedCitizen — September 29, 2015 @ 2:47 am
If GGI makes a discovery on the order of the kind of grade and length that Doubleview has made next door what in your IMHO should their market cap be?
Comment by Ivan — September 29, 2015 @ 4:02 am
I think, and this is just my opinion, the jury is still out regarding GGI drilling this year. Yes I know they have the money, etc…but it seems, with this company,they are extremely slow/methodical in their approach. They may just run out of time to drill. I hope I’m wrong as I do own GGI shares.
Comment by tony T — September 29, 2015 @ 4:22 am
Methodical is good, Tony, because that’s how discoveries are made, as GGI has already demonstrated in Mexico. The jury isn’t out on drilling, we’ve confirmed through our sources in Telegraph Creek that there are major supplies moving through the staging area just east of there, headed to Grizzly Central from the helicopter pick-up point. Those supplies and personnel aren’t for a Sunday picnic. They are gearing up to drill, very quickly. And the odds of a discovery at Grizzly Central are unusually high given the district model and the signatures that are appearing over this ground – almost identical to those seen elsewhere. Do the math. The district hit ratio on drill holes here is phenomenal.
Comment by Jon - BMR — September 29, 2015 @ 5:19 am
Glencore up 17% today amid talk of going private
Comment by ConcernedCitizen — September 29, 2015 @ 5:24 am
I kind of agree with you Tony T. I understand these things take time but GGI and DBV are running out of time and favourable weather. I understand that the drills can turn throughout the winter, but winter in northern Canada can be unpredictable and more drill delays are certainly a worry.
Comment by Steve A. — September 29, 2015 @ 5:27 am
Steve, sorry, what are u talking about?
First, DBV has a fully winterized camp – they can drill 12 months out of the year. Second, winter in the Sheslay district is far less severe than even other camps in northwest B.C. – it’s an area that is protected by the mountains immediately to the west. Very different climate factors in the Sheslay district – I’ve been there, experienced that for myself. Third, GGI will have no problem drilling into the first half of November before deciding to convert to a more winterized camp which is an easy process – DBV set one up in days in March of 2014. Fourth, for GGI in particular, drlling during the winter can actually be easier due to some of the “boggy ground” at Grizzly Central which freezes over. Fourth, the most difficult time of the year to drill in the Sheslay district is during spring break-up, not winter.
Let’s deal with facts, gentlemen, and an understanding of the district, not fiction.
Comment by Jon - BMR — September 29, 2015 @ 5:35 am
It’s my opinion/worry only Jon, not intentionally spinning any “fiction” as you say. I want to see GGI and DBV succeed as much as anyone.
Comment by Steve A. — September 29, 2015 @ 5:46 am
Yes Greg , I agree the central banks are very involved in protecting the fiat currency system , as Alan Greenspan said , ” they let gold get away on them in 1980 and they would never let it happen again “.
Comment by Les — September 29, 2015 @ 6:07 am
I understand that, Steve, but it helps when opinions are supported by facts, one way or the other…the facts are, you can drill 12 months out of the year in the Sheslay district, and DBV has the full capabilities for that…GGI can also do the same, very easily, especially after a discovery hole…there’s also a significant difference between winter conditions in this particular part of NW and other more remote areas of “northern” Canada…average snowfall levels, for example, change remarkably between the Sheslay district and just 40 or so miles to the south, due to the effect of the nearby western mountains which provide protection…when I was waiting at the staging area near Telegraph Creek for a helicopter flight into the district in April of last year, I felt like I was in Hawaii…I got a nice sun-tan. Weather is strange up there. Elevation-wise, GGI is working marginally on either side of the 1,000-m level at Grizzly Central, on relatively flat to gently sloping ground. Like I said, with some of the boggy areas at Grizzly Central, it actually gets easier to drill those when they freeze over.
Comment by Jon - BMR — September 29, 2015 @ 6:15 am
Jon , that is very good news about all the activity in the Telegraph Creek area with helicopters moving supply’s.. No doubt Regoci will be spending the cash from the flow through funds before year end as it’s use it or lose it. Once DBV gets the court injunction out of the way they will be going flat out to make up lost time and they’ll be drilling through winter.
Comment by Les — September 29, 2015 @ 6:18 am
Got it, thanks Jon.
Comment by Steve A. — September 29, 2015 @ 6:32 am
I’m no IT expert, so can anyone tell me if it is possible to use google earth to try and see if the drill has made an appearance at the site. Is there a zip code or such like for the area. I have time on my hands 🙂
Comment by Tom UK — September 29, 2015 @ 6:54 am
Any tidbits from EQT drilling yet or is locked down too well for leaks?
Comment by Jamie — September 29, 2015 @ 7:09 am
According to our sources in Telegraph Creek, Tom, the drill isn’t on site yet, but all “prep” is underway at site. Depending on where the drill is, it can be brought on site almost immediately or within a few days. What I’m most intrigued in specifically at this immediate moment is drill target refinement and if through geophysics they’ve discovered anything new in advance of drilling – an IP, for example, if that’s what they have carried out, could really confirm some important information. The huge advantage for GGI is that they can take their data and target holes based on data from other successful holes in the district – in other words, they have a template. You have to consider the Sheslay district, in a general sense, as one very large system. There are different domains within that system, but the bottom line is that you have a 30 km long mineralized corridor with similar geophysical, geochemical and geological features throughout. That’s huge, and that’s what gives GGI such a unique and highly unusual opportunity for an important new Canadian grassroots drilling discovery. Based on much more limited knowledge at the time, DBV hit on its 8th hole in 2013, which is why it’s reasonable to suggest that GGI will score in 4, or less.
Comment by Jon - BMR — September 29, 2015 @ 7:12 am
|Every piece of prep work/equipment can be shipped up to the site, until that drill is turning and a NR is released its all speculation.
(I’m sorry, not trying to be a negative turd but I”ve been around long enough to know that nothing is proven until the NR is issued).
Comment by tony T — September 29, 2015 @ 7:17 am
You’re not incorrect, Tony. So let’s see what GGI has to say, in the coming few days I’m sure. Should prove very interesting.
Comment by Jon - BMR — September 29, 2015 @ 7:25 am
Jon, was any bornite found in any of DBV’s samples or by Prosper’s more extensive drilling?
Comment by Tom UK — September 29, 2015 @ 7:27 am
The first obvious indication of bornite at the Hat was in drill hole 6, Tom. Hole 6 was an important technical discovery by DBV in mid-2013 that was overlooked by the market. Based on that hole, they were able to determine they were in the right neighborhood…they hit the edge of a system with hole 6. Confirmation of an important discovery would come 2 holes later. Bornite is a really positive indicator. At Dirk’s presentation regarding the Star in November 2013, he was asked about bornite and he stated it hadn’t been observed yet at the Star. If GGI is seeing evidence of bornite in the limited outcrop at Grizzly Central, that’s very good.
Comment by Jon - BMR — September 29, 2015 @ 7:29 am
Thanks Jon, it is all looking very positive. Based on their extensive ground work, they are likely to hit within a few holes. The presence of bornite just a few feet below surface suggests that good grades could be present. Fingers crossed that the rill bit and assays will do us some favours.
Comment by Tom UK — September 29, 2015 @ 7:45 am
Jon do you have speak with Farshad recently ?
Comment by Guy Delisle — September 29, 2015 @ 7:50 am
Estimates of short-term Chinese copper demand vary. Deutsche Bank reckons it will grow by 3% a year on average over the next five years, down from 7.5% over the past five. Goldman Sachs takes a particularly bearish view, saying Chinese copper consumption will not grow at all this year and next.
One of the recent disappointments has been the roll out of electricity infrastructure in inland Chinese cities where investment was expected to surge this year. Analysts at BHP say such infrastructure accounts for the biggest share of copper consumption in China, more even than the construction industry. Yet a corruption crackdown at state-run energy companies slowed the grid-laying projects during the first half of the year, analysts say. Unless the infrastructure spending picks up again, as some expect, construction is the main fallback. But whereas cement and steel rods dominate the early phases of a construction cycle, copper comes in at the end, providing a building’s wires, pipes and air-conditioning systems, as well as home appliances.
In the meantime, supply needs to fall to balance the market. After a brief rally, copper traders shrugged off Glencore’s announcement last month that it was suspending operations at mines in Zambia and the Democratic Republic of Congo that produce 400,000 tonnes a year, or about 2% of global output. That left people wondering whether more cutbacks were needed.
Comment by ConcernedCitizen — September 29, 2015 @ 8:09 am