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October 23, 2015

BMR Morning Market Musings…

Gold has traded between $1,158 and $1,180 so far today…as of 8:30 am Pacific, bullion is down $4 an ounce at $1,162, reversing after being up as much as $14 an ounce earlier this morning…Silver, which was above $16 an ounce this morning, is now relatively unchanged at $15.83…Copper is off 2 pennies to $2.35…Crude Oil has fallen 76 cents to $44.62 while the U.S. Dollar Index is surging again today, up half a point to 97.03 after yesterday’s powerful climb…97 is key resistance…

China has delivered another jolt of stimulus…China’s central bank cut interest rates for the 6th time since November today, and it again lowered the amount of cash that banks must hold as reserves in another attempt to jump-start a slowing economy…China’s monetary policy easing is at its most aggressive since the 2008-09 global financial crisis, underscoring concerns within Beijing about the health of the world’s second-largest economy…the People’s Bank of China said on its website that it was lowering the 1-year benchmark bank lending rate by 25 basis points to 4.35%…that still leaves them plenty of room to cut further…in addition, China has additional flexibility given the fact it’s running a budget surplus and holds $3.5 trillion in foreign exchange reserves…

Gold reserves still make up only 1.7% of China’s total reserves, according to Reuters‘ calculations, a factor that is likely to drive the PBOC to continue buying the yellow metal after official purchases of 50 tonnes the last 3 months…China should increase its Gold holdings to around 5% of its total reserves to help diversify currency risks, a World Gold Council official said earlier this year…

In today’s Morning Musings

1.  Updated Venture chart – Index finds support where it was expected to…

2.  Claude Resources (CRJ, TSX) threatens to hit a new multi-year high…

3.  Updates on Lingo Media (LM, TSX-V), Doubleview Capital (DBV, TSX-V) and Walker River Resources (WRR, TSX-V)…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

56 Comments

  1. WRR- Over a distance of 96 meters of drift 42.23 meters of sample were sampled and give a content of 23.85 gr./tons weighted calcul

    Comment by Guy Delisle — October 23, 2015 @ 8:07 am

  2. Jon, don’t mean to be picky but should have read 10km West,not east.

    Comment by Dan1 — October 23, 2015 @ 8:12 am

  3. Jon, you stated that DBV is within a week of winning their court injunction…I know there have been rumours of a suggested 21 waiting peroid for Chad Day’s response – just curious if you have confirmed that. Thanks!

    Comment by ChetBaker — October 23, 2015 @ 8:18 am

  4. Of course, Dan, you’re right…usually John spots my typos!….thank you for that, fixed…

    Comment by Jon - BMR — October 23, 2015 @ 8:20 am

  5. (I meant to say POTENTIALLY within a week of winning their court injunction….)

    Comment by ChetBaker — October 23, 2015 @ 8:21 am

  6. The 21 days finish yesterday at midnight !

    Comment by Guy Delisle — October 23, 2015 @ 8:30 am

  7. Thanks Guy, do we know that for sure though?

    Comment by ChetBaker — October 23, 2015 @ 9:11 am

  8. This is my calculation with the garde in the website, we have chance with drilling to find this grade in hole on 100 meters.Potential of a very high grade !

    Comment by Guy Delisle — October 23, 2015 @ 9:25 am

  9. Hello Guy where are you getting the WRR information from?

    Comment by Ed — October 23, 2015 @ 9:32 am

  10. Grade anb lenght on the website !

    Each grade X each length divided by total length = grade weighted

    Comment by Guy Delisle — October 23, 2015 @ 9:54 am

  11. DBV – if the 21 days finished yesterday the + 6 days would indicate a response from the court on or before Oct.30th. This nonsense of Chad’s is coming to end . I wonder how happy the workers and Tahltan drillers are about having the last four months off. I’m thinking it’s got to be like being around a hornets nest in the summer heat.

    Comment by Les — October 23, 2015 @ 12:05 pm

  12. Les…..you’re correct. I expect the team to head up there immediately to resume drilling once injunction is in hand…..

    Level 2 bids starting to grow as we get closer to resumption of drilling!

    Comment by DDD4 — October 23, 2015 @ 12:25 pm

  13. Once the Chad Day nonsense is out of the way, I expect we should get the results of the last assays.

    Comment by Tom UK — October 23, 2015 @ 12:37 pm

  14. Tom UK , the only core samples that would have gotten to the lab were the remainder of hole 23 . Farshad and the crew would have had no time to prep and send samples from # 24 and # 25 . IMO

    Comment by Les — October 23, 2015 @ 12:59 pm

  15. Les, I thought that after they stopped drilling, they stayed there for a couple of days at least. If they did not get the core samples off the site in July, will they still get through QC/QA?

    Comment by Tom UK — October 23, 2015 @ 1:26 pm

  16. Jon core pics on the web site!!!!

    Comment by Martin — October 23, 2015 @ 1:30 pm

  17. Which company Martin?

    Comment by Tom UK — October 23, 2015 @ 1:33 pm

  18. garibaldiresources.com/s/Photo_Gallery.asp?ReportID=604184

    Comment by Tom UK — October 23, 2015 @ 1:35 pm

  19. Don’t expect ANY drill results from DBV anytime soon, after they resume drilling…..

    Comment by DDD4 — October 23, 2015 @ 1:51 pm

  20. Yes, Martin, this strongly suggests GGI is right into a system very quickly…classic potassic alteration (first photo) which is really critical, quartz monzodiorite with k-feldspar, biotite, magnetite, epidote…wow…those are all great signs for a grassroots discovery, consistent with the district…plenty of veining in all 3 samples……what I also picked up in this first core photo, Martin, is the depth – 44 m……this shows the overburden is not that thick, and at shallow levels they’re immediately into the right rock and alteration package….looks like they decided to put this out after the market close today…news Monday, perhaps?…great way to start the weekend!

    Comment by Jon - BMR — October 23, 2015 @ 2:05 pm

  21. Yes Jon, they are very aggresive, i have alot of DD to do, Do these core relate to those seen elsewhere in the area you think. Is this more epithermal or porphyry?

    Comment by Martin — October 23, 2015 @ 2:17 pm

  22. Nice core! Picked up more GGI today at 12.5 cents. It’s going to be a great weekend!

    Comment by Dan1 — October 23, 2015 @ 2:21 pm

  23. I don’t see anything in these photos that’s out of character with the district, Martin…this is obviously a “snapshot” – exciting but very early…if this is the first hole, to get right into the potassic alteration directly underneath the overburden, the glacial till, is amazing…shows you how pregnant this district is and how these rocks are really cooked up…..first hole ever drilled on the property, 10 km west of DBV’s Lisle Zone, and you’re into that almost immediately?….speaks volumes about the potential here…

    Comment by Jon - BMR — October 23, 2015 @ 2:25 pm

  24. Amazing how quick eqt has fallen out of favor. We need some renewed daily commentary from dave to get her going. Dave, what are u hearing? You seemed to have the inside scoop on this play.

    Comment by Seamus — October 23, 2015 @ 2:28 pm

  25. This will be huge Jon :-),

    Comment by Martin — October 23, 2015 @ 2:31 pm

  26. I am happy now, this anomalies is at least .5km x 2km. What a team of pro GGI are!!

    Comment by Martin — October 23, 2015 @ 2:41 pm

  27. Seamus, my take on EQT is as follows:

    1. There were obviously some speculators in this hoping for a massive sulphide hit right off the bat, and that apparently hasn’t occurred given the news Tuesday, so that accounts for probably most of the selling which has been quite orderly with plenty of buyers willing to soak up loose paper. Nickel deposits are never easy to find, as we’ve emphasized, but EQT is still very early into the game at Garland. They could be looking at multiple geological possibilities here, including potentially a high-grade system more at depth. This is very grassroots and lots of targets remain to be tested. There are real pros studying this that know what they’re doing, such as Everett Makela. For sure they haven’t hit a home run yet, or even a single for that matter, but they also haven’t struck out yet. They’re still up to bat. Either is still possible (a home run or a strike out), or something in between. If they strike out at Garland – everyone knew this was a swing for the fences, and Hardy himself said that – they’re well funded to execute on a plan “B”.

    2. Maintaining momentum and investor enthusiasm at any time, even during the exploration/drilling process, is always a challenge, especially during the current market environment. So there will be periods in the phase of a stock when momentum falls off a bit, and the stock experiences a healthy pullback. This is certainly a good example of that. What Equitas needs to do is ramp up its game again, and get back into the flow they were in before. This is a very capable group and I’m sure they’re not happy with the week that just ended. The stock is off 5 days in a row and 8 days out of 9. They have to counter-punch next week – that’s what I would expect from this group;

    3. Having stated the above, what we’re seeing technically is really quite normal once some investor “fatigue” sets in with lack of excitement right this minute on the ground and of course a PP that everyone is waiting to see get wrapped up. Just saw a fresh chart from John – extreme oversold RSI(2) conditions at the moment, so this implies a rebound coming very soon. Strong Fib. support at .125. The current pullback is no more severe than the one we saw in EQT during Q2 into the early summer, and that’s when it was able to re-energize for a powerful move above the previous high. This is the speculative junior exploration market, and it involves a lot of volatility. If you’re a trader, you need to buy low (grab the dips) and sell into strength.

    Comment by Jon - BMR — October 23, 2015 @ 3:46 pm

  28. EQT— Has anyone stopped to think why they are sending so many samples to the lab not even 4 weeks after drilling? They wouldn’t send anything if they didn’t think it was worth it. They just don’t pump or speculate in the NR the way some “people” would have preferred. They aren’t going to say massive sulphides or this is huge without some testing.

    They are professional.. and this stock has the potential to retire many people.

    Comment by McIlroy — October 23, 2015 @ 5:43 pm

  29. Posts 27 and 28 are excellent and exactly why a subscription to this site is worth the money. Great job gents!

    Comment by Jamie — October 23, 2015 @ 6:56 pm

  30. Dave is here, but has had a bad situation come up. I will try and monitor as much as possible but probably won’t be every day. Aside from listing my house and getting things fixed for it to sell, I have an emergency situation with my daughter that has come up and it is going to take me away from this computer a lot.

    I will also say that Post # 27 and # 28 are excellent and tell it like it is. Massive sulfides aren’t mentioned in the first drilling update and everyone freaks out. The PP HAS to close on Monday for the price protection to remain in place. If it doesn’t, its not my fault. I have read the posts from the last couple days and see that people mention how I continually post about PP’s closing in a day or 2 and even having insider information on it.

    It’s amazing how some members just read the posts they want or skim them and don’t read every post. If you had, you would clearly know that we have talked about 2 separate PP’s since July with 2 tranches to each. That totals 4 closings, so yes there is a constant mentioning of when the next tranche closes. I don’t close them, I merely relay information that I get from people that are in the know. I try to bring you the very best (non-insider) information I can. I say non-insider because not everything is material. What they are seeing on the ground or in the cores does not have to be reported and if word gets out from drillers or helicopter pilots or whomever, so be it. This is your so called leaks. Legal or illegal on any ones perception, it occurs in almost every stock that is drilling. However, with that being said, Hardy has this locked up tighter than a drum.

    1. You DON’T send 173 samples to the lab if your not seeing something of significance. THINK about the news release and the clues Hardy wants to give.
    2. Hardy is on record saying that he WILL NOT report massive sulphides even if they are seeing them, and there is GOOD REASON for this.
    3. A possibility is they have hit hydrothermal Graphite.
    4. NICKEL is always very near to Graphite.
    5. If they in fact did, think about where this stock can go. Example – ZEN.

    Do I know, no I don’t know for sure. But what I do know is 173 is a lot of core off to the lab.

    I have repeatedly stated to you members that I don’t like to see anyone lose money. We are all here to make money. But in my opinion, EQT is worth more now than before that news release. And it is trading at a serious discount if any of the above are good or true.

    Not to be disrespectful at all to anyone on this board because we all know why we are here. I don’t have the luxury of interest as to whether a stock rises a penny or falls a penny due to a serious situation that has entered my life as of yesterday. I am still in EQT and will remain.

    My ex-wife and her husband are currently with my daughter giving me a short break. I must get back there to her.

    My daughters life is in extreme danger right now, and she is my life and all that matters to me right now. I will check in when I can.

    Comment by dave — October 23, 2015 @ 10:18 pm

  31. Kudos Dave. That was one hell of a post. We will all pray that your daughter will be ok.

    Sincerely

    Dan

    Comment by Dan1 — October 24, 2015 @ 8:37 am

  32. Amen, Dan. Thank you for sharing that, Dave, and the prayers of all of us at BMR are with you and your family.

    Comment by Jon - BMR — October 24, 2015 @ 8:43 am

  33. Dave, we’re thinking about you and your daughter. I’ve got 3 girls and they are my world. Family first.
    Eqt-my last post was kind of tongue in cheek. I do believe that those cores were sent for a reason. I also know that a company has to be very careful about disclosing misleading info in press releases so I do think that hardy is doing a good job being tight lipped.

    Comment by Seamus — October 24, 2015 @ 8:49 am

  34. Best of luck Dave, I sincerely hope things work out for you and your daughter. I think most of us here have kids and understand how precious they are.

    I read “The Big Score” at your suggestion and learned a lot. What a lot of people don’t realize is that a lot of holes turned up nothing when they were looking for the original Voisey Bay deposit. It’s a long process hence why I have sold some along the way to protect my original capital and will keep some of my shares until this is fully played out.

    Comment by Danny — October 24, 2015 @ 9:27 am

  35. Dave- sincerely- hope and pray everything works out regarding your daughter!!

    Comment by GregJ. — October 24, 2015 @ 10:23 am

  36. Good luck Dave!

    Comment by Martin — October 24, 2015 @ 10:41 am

  37. corbettgeology.com/anatomy_of_porphyry-related_au-cu-ag-mo_mineralised_systems.pdf

    Look at Figure 1, the grizzly model explain from grizzly west to central .

    Comment by Martin — October 24, 2015 @ 10:49 am

  38. Dave
    Just saw your post.

    Thoughts and prayers are with you and your family….when our children are sick or hurt we parents go through hell.

    May your daughter pull through this……all of us are with you.

    God Bless.

    Sincerely
    John BMR

    Comment by John - BMR — October 24, 2015 @ 11:22 am

  39. Dave my man… know exactly how you feel regarding your daughter… you have no reason to make any excuse for being anywhere… keeping your head clear and grounded is what u need and not to be bothered by a stock chat blog..
    Wishing you courage and strength for the days to come in your support for your daughter mate… just know that you have many positive vibes pointed your way..
    Hoping she is close to you – geographically I mean.. allows more of your positive energy to be given to her..

    Comment by Jeremy — October 24, 2015 @ 12:18 pm

  40. Thought this was an interesting post from CEO.ca chat…..again Dave, best wishes to you and your daughter…
    IF $EQT is doing petrography, suggests that they have intersected ultramafic rocks where the mineralology is unclear in core. Many ultramafic deposits occur in layered bodies, where certain layers are better cumulate host units. If they are hitting low, but interesting sulphide content, petrography can help tell if it’s pentlandite (nickel sulphide) or pyrrhotite (iron sulphide); nickel can substitute into olivine up to the .15% range. Sounds encouraging; discussing the presence of sulphide can be very speculative in a news release; remember the Cartaway visual estimates of chalcopyrite…

    Comment by Bob — October 24, 2015 @ 12:52 pm

  41. Jon

    in the GGI photos of the core it shows 44 meters, if they are hitting mineraliztion at that shallow of depth could this be the high grade starter pit that you have referred to in the past?
    thanks

    Comment by Greg — October 24, 2015 @ 1:35 pm

  42. just as a btw.. PHM.V corrected big..
    smallcappower.com/posts/patient-home-monitoring-tsxv-22-10-2015
    info on targets and revenue.. its a health care/tech play..

    Comment by Jeremy — October 24, 2015 @ 1:42 pm

  43. those ggi cores are nice but I’d like to see them being a lot darker (ore) with a lot less grey ( rock). Being a development miner for vale I know what ore looks like and those cores posted sure have a lot of rock in them. Assays will tell but it would have been nice to see a core with a few metres of nice dark material on display and not as much grey in them.I’m Still holding my shares though.

    Comment by tony t — October 24, 2015 @ 1:44 pm

  44. Much too early to tell, Greg. What I like is the fact they are clearly into a system, the right geology, the right mix of rocks, and the glacial till appears to be limited in depth which is very positive. I expect they are looking at multiple intrusive events in this area at Grizzly Central. The faulting, the mag and IP signatures, the geochem responses…these are all critical signs one looks for in discovery/deposit potential. It’ll be very interesting to know the alteration and sulphide assemblages as the drilling continues and they get deeper. More evidence I’m sure in the coming week. Very encouraging start. We’re working on trying to connect some dots.

    Comment by Jon - BMR — October 24, 2015 @ 2:29 pm

  45. Anyone else care to comment on the core pics? I took a look at all of DBV’s core and some of them were darker but a lot were lighter colour. This may be a different type of deposit. Are all sulfides dark in colour? I didn’t think they were. Any geos here that can comment on them? Wouldn’t the type of rock be an indicator, like potassium, K-feldspar, epidote, Magnesium, etc? Jon, maybe you know a geologist or two that can provide some input?

    Thanks,

    Comment by Dan1 — October 24, 2015 @ 2:29 pm

  46. Maybe more GGI core pics to come before Monday morning?

    Comment by Dan1 — October 24, 2015 @ 2:30 pm

  47. The message I suspect that Regoci is trying to send, Dan, is that GGI is into a “system” early on. I’m sure we’ll hear and see considerably more in the coming week. Evidence in the district has shown that things can really “heat up” in terms of mineralization between a depth of 150 m to 300 m. My guess is that widespread glacial till at Grizzly Central, from a few meters in some places to perhaps as much as 50 m, has indeed “masked” potential deposits as GGI has been claiming, which makes sense. Historical prospectors would have had no clue given that 95% of the area is overburden-covered. The limited outcrop GGI has seen is highly encouraging and confirms the Stuhini rocks with sulphides. The chargeability high, if you read that map, is VERY intense by any measure – perhaps the highest numbers seen in the district (70 mv, that’s really high). Combined with the mag, the geochem, the limited outcrop, the initial core photos…if it looks like a duck and quacks like a duck, it’s a duck. Very early stages still, and this is going to get even more interesting I’m sure. They’re certainly applying their expertise. What every company also needs in a situation like this is a little luck.

    Comment by Jon - BMR — October 24, 2015 @ 2:42 pm

  48. That is what I suspect as well Jon. These cores are shallow and the deeper they go should get better and may very well hit massive sulfides. I suspect they are already into the sweet stuff. We could hear more Monday morning.

    Comment by Dan1 — October 24, 2015 @ 2:51 pm

  49. Good luck Dave, I hope your daughter will get better soon. I’m sending some good vibes your way.
    Thank you for your insight, it is very valuable to me.

    Comment by jasi — October 24, 2015 @ 4:10 pm

  50. Best wishes to you and your family Dave.

    Comment by Treb — October 24, 2015 @ 5:51 pm

  51. Dave, our thoughts are with you and your family. Like many others here we have benefitted from your insight.

    Comment by Gary — October 24, 2015 @ 7:03 pm

  52. Dave, my thoughts are with you and your family. God Bless!!

    Comment by Jeff — October 24, 2015 @ 7:46 pm

  53. Dave, your insights and info have been such a blessing. I sincerely hope everything works out for your family. My family will be praying for you and your daughter.

    Comment by DBReese — October 24, 2015 @ 9:53 pm

  54. Dave- thoughts and prayers go out to you and your family. Take care of family and come back to BMR once family is taken care of.

    Comment by DDD4 — October 25, 2015 @ 5:11 am

  55. Dave- my thoughts also are with you and your family, and I’m hoping for positive news about your daughter. Thanks for your contributions to this board, and for your sense of responsibility to us in keeping us informed in the midst of your present personal crisis.

    Comment by Terry — October 25, 2015 @ 8:00 am

  56. Dave, my thoughts and prayers are with you and your daughter. I sure appreciate all your stock suggestions and input. Take care

    Comment by Rebecca — October 25, 2015 @ 3:52 pm

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