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November 3, 2015

BMR Morning Market Musings…

Gold has traded between $1,116 and $1,139 so far today…as of 9:45 am Pacific, bullion is down $15 an ounce at $1,118 after falling through support at $1,130…Silver is off 17 cents at $15.23…Copper has added a penny to $2.35…Crude Oil has climbed more than $1 a barrel to $47.42 while the U.S. Dollar Index has jumped one-third of a point to 97.24, putting pressure on Gold

Fed-funds futures, used by investors and traders to place bets on central bank policy, yesterday showed a likelihood of 47% that Fed officials will raise interest rates at their Dec. 15-16 policy meeting, according to data from CME Group…the likelihood was just 8% a month earlier…Friday’s non-farm payrolls report is eagerly anticipated…

Crude Oil is getting some help today from a couple of fronts…Bloomberg has reported that Crude exports from Libya’s eastern port of Zueitina have been indefinitely suspended…Libyan production has fluctuated in recent years amid ongoing violence and unrest…exports from Zueitina were halted by protests for 5 months earlier this year before restarting in October…though the country has the capacity to produce about 1.5 million barrels a day, its output stood at just 432,000 barrels a day early last month…in addition, Brazil’s biggest Oil-sector union began a strike 2 days ago…the union represents workers on Oil platforms, among other areas…

Global deflationary pressures continue…the Paris-based OECD think tank reports that annual inflation in the 34 major economies of the world slipped to 0.4% in September from 0.6% in August…this is well below the 2.0% annual inflation rate most major central banks would like to see…the OECD report also adds to already worrisome notions that price deflation is getting a stranglehold on many economies…

In today’s Morning Musings

1.  Garibaldi Resources (GGI, TSX-V) reports it has drilled into a “robust system” at Grizzly Central…

2.  The “two seasons” of the Venture, and why now is such a great time for accumulation of high-quality juniors…

3.  A “Golden Cross” for Discovery Ventures (DVN, TSX-V)…

4.  Long-term chart for the NASDAQ shows why August 24 was such an important trading day…

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…

36 Comments

  1. GGI, it takes something really special to move this stock.

    Comment by Treb — November 3, 2015 @ 12:49 pm

  2. From DBV,July 11/2013…

    Diamond drilling commenced on May 24, 2013 and six drill holes with total length 1380 metres were completed. Drill holes Hat01 – Hat05, directed to the area of a highly regarded geochemical and geophysical anomaly, intersected altered andesitic volcanic rocks and dioritic intrusive rocks with intercepts of pyrite and chalcopyrite mineralization and abundant magnetite. Drill hole Hat06, the initial test of a geophysical target located 800 metres south of holes Hat01 – Hat05, intersected similar altered andesitic volcanic formations and varying amounts of sulphide mineralization, including pyrite, chalcopyrite and minor bornite.

    From GGI November 03/2013…

    A robust and widespread hydrothermal system with abundant pyrite, finely disseminated chalcopyrite and magnetite;
    Alteration zoning that is indicative of a copper-gold porphyry environment;
    K-feldspar and hydrothermal biotite forming potassic zones in both diorite and quartz monzodiorite, commonly accompanied by quartz veining, intense pervasive epidote alteration and widespread sericite;
    The quartz monzodiorite commonly contains fine-grained chalcopyrite disseminated and along select veinlets.

    In addition, while most of Grizzly Central is covered by a thin to variable layer of glacial till, geologists have outlined a newly mapped mineralized outcrop along trend up to 800 metres southwest of current drilling. This area features intense potassic alteration associated with quartz-chalcopyrite plus or minus bornite veinlets…

    Are we not looking at mirror images of each other?

    Comment by robinandthe7hoods — November 3, 2015 @ 1:08 pm

  3. Jmo,but the market values DBV over GGI at this stage when one,DBV,is essentially halted,and the other,GGI, just puts out a PR basically saying they have hit and both trade for the same price.
    Imo,this happens when someone has no clue how to pump their stock.GGI should be at .25-.30 with what they could have pumped the last while.
    I will wager if/when DBV comes to an agreement with the Tahltan and they announce it,they will get a bigger push in the stock than GGI did with today’s PR.
    It has nothing to do with the property as all 3,PGX,DBV,and GGI,have basically the same properties.PGX,when they were working their property had someone who knew how to push the stock.DBV likewise has that with Farshad.
    GGI has a CEO who doesn’t appear comfortable doing that,thus the lagging share price,when it should be flourishing.
    This area play badly needs Farshad back and pumping and Peter Bernier of PGX back working his property and pumping.
    I don’t dislike Mr.Regoci.I’m just pointing out what I see.But GGI will benefit greatly from DBV and PGX getting back working their properties.
    It will take until next spring,but if Regoci doesn’t drag his heels,and PGX comes back,which I expect will happen,and DBV is going full bore,all 3 will be trading well north of here.PR after PR from properties all connected.BMR will have a field day,as will the rest of the market.
    If all 3 CEOs were smart,they’d have a meeting planning a huge drilling program entailing all 3 properties with the goal of pumping the area putting out PR after PR.3-4-5 per month,results after results and choose one leader to be the lead promoter to the industry.I’m sure they could,as a group,raise $15-20 million in the market for this play.
    The results would be astronomical.

    Comment by robinandthe7hoods — November 3, 2015 @ 1:39 pm

  4. Not sure if anyone remembers, but I posted here that GGI would hit on the first hole. Looks like they did.

    Comment by Dan1 — November 3, 2015 @ 1:45 pm

  5. The market can be fickle at times. The news today from GGI de-risked a lot of the project. GGI is doing everything they should be doing at this point. Hat’s off to them. I am confident that the share price will increase throughout the week. Today’s news release was fantastic. The market will catch on….again what the market does short term is anyones guess. However as far as the stability of the Grizzly project….great day today.

    Comment by weatheritout — November 3, 2015 @ 1:57 pm

  6. Jon,it would be interesting if you would ask Mr. Regoci what he would think about teaming up with PGX and DBV in a huge PP and work together in a major promotion with coinciding drill programs next spring with the goal being to drive each other’s share prices as high as possible,while proving the properties to sell to a major in the end.
    Instead of being stand alone plays where no one knows in this environment whether they will benefit in a way they would in other time periods,they would be a unit while working individually.
    One person would be the point man in the promotion.
    In order to reach full potential in life,sometimes people and companies have to think outside the box.This could be one of those times that would greatly benefit everyone,including shareholders.

    Comment by robinandthe7hoods — November 3, 2015 @ 2:33 pm

  7. Don’t forget this quote

    “Gold bearing magnetite may be found in massive deposits where the gold is often invisible to the naked eye with the gold often being disseminated throughout the entire deposit of magnetite.The usual tenor of this sort can vary from that measured in grams to about 4 ounces per ton.”

    Interesting…we will see what Grizzly holds

    Comment by weatheritout — November 3, 2015 @ 2:48 pm

  8. robinandthe7hoods- that’s not a bad concept and I’m sure it will happen at some point and they will discuss their company’s best interests for a major to come in.

    I think its still early for this to happen. I wonder just how much co-operation and discussing there was amongst them with the Chris Day thing.

    In the end, I see them getting together to discuss their options once GGI and DBV results prove that this is indeed lucrative for a major to come in and take a few properties……

    Comment by DDD4 — November 3, 2015 @ 3:58 pm

  9. EQT- the forgotten one…….nice bounce off the 200 DMA and with strong support. I expect it to start trending up soon as we get close to the drill results of holes 1 & 2! The labs are that busy right now so maybe by the end of next week we might see the results.

    Comment by DDD4 — November 3, 2015 @ 4:06 pm

  10. In my opinion GGI will not show any significant upward pressure until assays come in. We can all talk promotion until we are blue in the face but this market needs the facts first. Promotion with facts in hand can be much more effective

    Comment by Jamie — November 3, 2015 @ 5:14 pm

  11. I agree Jamie, I thought the news was excellent but in this market people are so quick to take profits. I long for the BRE-X days when just a whiff of something would send a stock soaring.

    Comment by Danny — November 3, 2015 @ 7:45 pm

  12. I also miss those days! All we need is a new discovery and speculation will attract money to the juniors……people will be searching for the next discovery after seeing how quickly some made money.

    Hopefully DBV, GGI or EQT can revive this market!

    Comment by DDD4 — November 3, 2015 @ 8:10 pm

  13. Jon
    When can we expect to hear the Regoci interview?
    The Shesley article you posted earlier today was awesome too
    Thanks

    Comment by GREGH — November 3, 2015 @ 9:39 pm

  14. Greg, we are aiming for Thursday am for that.

    What’s developing here is hugely explosive. Underway now, or very shortly, is a bold 800-meter step-out from the initial 2 holes that have visually confirmed key alteration and mineralogical features associated with deposits on adjoining properties, with a good chance for a significant Gold kick given the look of some of the core (magnetite). The step-out is in an area of outcrop showing intense potassic alteration (great sign) with quartz-chacopyrite and bornite veinlets (great signs also) within the Stuhini group volcanics and sediments, featuring a moderate mag and a 30 mv chargeability (ideal geophysical signatures).

    No company in the district has done an 800-m step-out this early in the game. If they hit, kaboom…that’s volume. And I don’t believe Regoci will waste any time letting the market know of a hit at that hole (based on visuals). That might be halt time for this stock. This bold approach, and the grades and widths encountered, are what gave DBV the huge run-up in early 2014. 8 and 11 were 1000 m from the important technical discovery in hole 6, and gave the Lisle Zone critical scale.

    Say all you want about Regoci – he has demonstrated tremendous fortitude and boldness in getting GGI to the drilling stage, given the developments over the spring and summer with Chad Day/Tahltan, and now he has created a huge leveraged opportunity for shareholders in the early going of drilling.

    Comment by Jon - BMR — November 3, 2015 @ 9:51 pm

  15. Thanks Jon

    Comment by GREGH — November 3, 2015 @ 9:59 pm

  16. Jon, obviously Grizzly will be the main talking point, but any info you have on what is happening with the Mexico properties would be appreciated. I see them as an asset that will be part of Regoci’s strategy over the next few months.

    Comment by Tom UK — November 4, 2015 @ 1:53 am

  17. You’re right, Tom, they’re approaching the right season now for Mexico, and there are important assets there (Rodadero, La Patilla, Iris) that Regoci has some major plans for. So the almost singular focus on B.C. in recent months is expected to shift to a more dual focus, no matter how busy it gets at the Grizzly and Red Lion.

    Comment by Jon - BMR — November 4, 2015 @ 2:24 am

  18. Thanks Jon, I seem to recall that 2 companies have made site visits to Rodadero. Cash could be generated by a sale. or by producing gold as per the Grainey LOI for La Patilla (7 results still awaited).

    Comment by Tom UK — November 4, 2015 @ 2:39 am

  19. Jon,it would be a big step in the interview if you would ask questions outside the box,and not just have run of the mill answers coming at you.We already know the basics and these CEOs tend to just repeat what is already known from the PRs released.
    Ask him on video if they will drill the Grizzly this winter past this drill program.
    Ask him if they will PR a hit on the 800 metre step-out and not just wait for his usual generic PR that they are sending the drill core to the lab when the drilling is all over.
    Ask him if he would ever consider working in a partnership with PGX and DBV in a 3-headed monster to create a major promotion of the whole Sheslay play.
    I know most interviewers tend to be gunshy about alienating the subjects they are interviewing,but this is how we see what the potential of the CEO as a promoter is and whether his company is one to watch and hold shares in,or one that will fade on lack of vision past his own drill program,which,let’s be honest,hasn’t moved the needle to this point.
    I realize I’m being aggressive here,but it’s a chance to see what Regoci is really thinking and a test for yourself to prove to be a respected journalist who is a notch above,which is what this website has the potential to become.

    Comment by robinandthe7hoods — November 4, 2015 @ 3:05 am

  20. EQT .. insider buying reported. Two buys of 90k shares each by Kyler Hardy. Nice to see. Reassuring.

    Comment by Treb — November 4, 2015 @ 3:27 am

  21. EQT .. those buys are actually a part of what KH took down in the recent pp .. NOT buys in the public market .. my bad.

    Comment by Treb — November 4, 2015 @ 5:15 am

  22. GGI…The bids are starting to come in…50k at 13c.
    A good day coming up.

    Comment by John BMR — November 4, 2015 @ 5:27 am

  23. Treb- re: EQT believe that was $90,000 @.125 or 720,000 shares
    purchased by KH. BTW hope Dave is ok….the attention could come
    back fast for EQT. They simply chose to be non-committal until lab
    results, and so no one other than KH and perhaps a handful of others
    know what we have visually. Any mention of sulphides and we will see
    $….GLTA

    Comment by Bob — November 4, 2015 @ 5:27 am

  24. EQT- Kyler participated in the PP and now after drilling 2 holes he adds a little more…..hmmm….lol. Unless he loves losing money he must be optimistic on something…..

    Comment by DDD4 — November 4, 2015 @ 5:29 am

  25. After interviewing Regoci and knowing DVB might have news any day if you didn’t own any shares of GGI or DBV which would you buy now or would you buy equal amounts of both?

    Comment by Ivan — November 4, 2015 @ 6:11 am

  26. I’m excited by both, Ivan, more than ever – how can one not be? This is a prolific district and it’s going to get hotter than ever. GGI’s success is DBV’s success, and vice-versa. The last hole DBV was drilling was in a zone of copper-gold mineralization 1 km from the Lisle Zone discovery when Chad Day came along. I’m expecting DBV to get back on the Hat soon, and if both companies are drilling ’til Christmas we’re all going to have a very merry Christmas indeed.

    Comment by Jon - BMR — November 4, 2015 @ 6:17 am

  27. Ivan- its best to own both but if you would dilute yourself too much by buying both I would be in DBV first. Until GGI says they will drill during winter I’m afraid that the excitement will be short lived once drilling at Sheslay stops for 5 months until next Spring. On the other hand, DBV has a few very interesting core pending…….the ones that convinced Chris Day to go block the drilling in hopes of getting a piece of the sky. Also, DBV is about to resume drilling and their camp is winterized….they plan on drilling continuously with the exception of a break for the holidays. Both have similar mkt caps and stock prices but imo DBV has much more value proven and has already demonstrated that they have early signs of a deposit. GGI so far has pictures with no visual gold/copper and 2 holes at the lab. In terms of CEOs, Farshad owns a much bigger stake in his company and DBV has the most experienced team of the region. GGI does own the biggest land package in the region and have good properties in Mexico to offset the risk. I like GGI’s potential and have been a shareholder twice…..I will again once I know the results for holes 1 & 2 and know that they will drill in winter. Most importantly, do your DD!

    Comment by DDD4 — November 4, 2015 @ 6:24 am

  28. Plus DBV’s share price is still suppressed due to the Chris Day issue which will be resolved any day now…..this alone and announcement of resumption of drilling will give a boost to the price.

    Comment by DDD4 — November 4, 2015 @ 6:34 am

  29. Glencore has announced this morning that it’s cutting more Copper supply than they had originally planned…should help hold up prices…

    Comment by Jon - BMR — November 4, 2015 @ 6:35 am

  30. CGC is quite overbought right now.

    Comment by 02charoc — November 4, 2015 @ 8:44 am

  31. Overbought?????? With yesterday excellent press release, GGI should be trading around .18 ahead of drill results, IMO

    Comment by Jeff — November 4, 2015 @ 9:16 am

  32. I said CGC is overbought, not GGI.

    Comment by 02charoc — November 4, 2015 @ 9:52 am

  33. CGC not GGI – Jeff

    Comment by Randy — November 4, 2015 @ 10:11 am

  34. I remember reading a comparison once. I guy went in to buy a truck at a car lot. He debated back and forth wether to buy it. It was his favorite color and had everything he wanted. He haggled with the dealer for a better price but he wouldn’t budge. He left to think about it for the night. Came back in the next morning and asked the dealer again if he would drop his price. Sorry the dealer said…it sold last night after you left. What????? Wait he said..I’ll give you full price. The dealer said sorry the buyer was coming in to pick it up. I’ll give you more than your asking!!! Sorry, no more left.

    It’s all about supply and demand. Just give GGI time…people are coming out to the car lot to check it out.

    Comment by weatheritout — November 4, 2015 @ 10:20 am

  35. Jon, one question you should ask Regoci is does he plan on drilling through the winter?

    Comment by Dan — November 4, 2015 @ 10:48 am

  36. Ops, sorry guys!! With all the constant chatter here on GGI, it looked like it was GGI you were talking about.

    Comment by Jeff — November 4, 2015 @ 11:26 am

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