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November 10, 2015

BMR Morning Market Musings…

Gold has traded between $1,085 and $1,096 so far today…as of 10:30 am Pacific, bullion is down $3 an ounce at $1,089…Silver is off 16 cents at $14.42…Copper has slipped 2 pennies to $2.24…Crude Oil is 39 cents higher at $44.26 while the U.S. Dollar Index has jumped one-quarter of a point to 99.19

Moody’s today warned of lackluster global economic growth, as well as authorities lacking “buffers to protect their economies from potential shocks”

Gold assets held in the world’s biggest exchange-traded product backed by the metal have fallen to their lowest level since the financial crisis…holdings in SPDR Gold Shares slid 0.4 percent yesterday, the 7th straight daily decline, to 666.11 metric tons, the lowest since September 2008…of course that’s the month that Lehman Brothers collapsed, spurring a rout across global markets…last week, global holdings in bullion ETPs fell 26.9 metric tons, the most since July…

UBS analyst Joni Teves is pointing to declining demand in China as a headwind for Gold’s at the moment.  “Conversations with local market participants in China revealed that sentiment towards Gold remains broadly negative in line with global trends, Teves said in a reesearch note today.  “The sense is that lower Gold prices appear to be the path of least resistance for now, and few were willing to step in front of that trend in the near-term,” she said.

Physical demand from India, the other significant consumer apart from China, has also been relatively muted during the current peak season for festival-related demand, which will culminate with the festival of lights, Diwali, tomorrow…purchases by India’s farmers have been hit by scanty monsoon rains, leaving them with less spare cash to spend on Gold…buying support from that country in the weeks ahead will be a key factor in determining whether bullion can hold above its summer multi-year low…

In a report issued this morning, the International Energy Agency (IEA) stated that Oil is unlikely to return to $80 a barrel before the end of the decade, despite unprecedented declines in investment, as annual demand growth struggles to top 1 million barrels per day…the IEA estimated that investments in Oil will decline more than 20% this year and the trend would continue into 2016…Oil majors have cancelled a total of 80 projects across the world this year because of low Crude prices, and have cut capital expenditures by as much as $22 billion, according to BP’s head of exploration and production…the decline in investment, however, has not been enough to reverse Oil’s price weakness…

In today’s Morning Musings

1.   China’s equity rebound, and how soon may we see 20000 on the Dow?…

2.  The drill keeps turning as a Grizzly finds a sweet source of nutrition in the Sheslay district…

3.  Nemaska Lithium (NMX, TSX-V) breakout…

4.  Canopy Growth (CGC, TSX-V) updated chart and an interesting new Forum Research survey on the potential size of a legal marijuana industry in Canada…

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…

64 Comments

  1. GGI gets some exposure ….

    Drilling a long-shot for a copper-gold porphyry discovery

    POSTED ON November 10, 2015 BY James Fraser
    CATEGORY Doubleview Capital, Garibaldi Resources, Prosper Gold, Stories,

    One Venture-listed company trying to make the next discovery is Garibaldi Resources (GGI:TSXV). A company update was provided this morning on the first-ever drilling campaign at the Grizzly property in the Sheslay district of northwestern British Columbia.

    Junior mining speculators know the TSX Venture Exchange is desperate for a major discovery that could turn the markets around. Historically, major discoveries have created wealth that has generated excitement among investors (speculators) about the markets and the potential to make 10x-100x your money.

    However, the odds of finding an economic deposit are said to be 1 in 3,000. Very few companies are funding drill programs these days as it seems nobody can raise money.

    Garibaldi is trying to beat those odds. Three holes have been completed and are being sent off to the assay lab for results.

    The target here is the type of copper-gold porphyry B.C. is well known for, one that is big enough to be economic.

    Garibaldi will be hoping to hit better intersections than neighbours Prosper Gold (PGX:TSXV) and Doubleview Capital (DBV:TSXV) if they want to see a share price lift.

    A reminder on some of the holes in the region.

    Prosper
    •SO49 -324m of .44% Cu and 0.219 g/t Au (CuEq .57%)
    •SO24 – 312.6m of .37% Cu and o.24 g/t Au
    •SO26 – 263m of .35% Cuand 0.15 g/t Au

    Doubleview Capital
    •H-23 – 0.73 per cent copper equivalent (0.36 gram per tonne gold and 0.47 per cent copper) in a 110.9-metre section

    Steve Regoci, Garibaldi President and CEO commented, “Visual evidence from the first three holes firmly indicates the powerful influence exerted by the Kaketsa pluton 2 km west of Grizzly Central drill targets. Geological processes appear to have involved a tremendous amount of heat and fluids. It’s exciting to see what Mother Nature has cooked up in these rocks over the millennia. The geology speaks volumes for the potential to add to the unfolding story of the Sheslay district where two porphyry deposits have already been defined including Doubleview Capital’s gold-rich Hat discovery 10 km east of our current drilling.

    Garibaldi stock suffered in July/August as Sprott blew out a large position that was part of a $1.25-million flow-through financing.

    The stock has recovered up to the 14-cent level on excitement of the ongoing drill program at the Grizzly project.

    Personally I have no position and am waiting for assays to come back.

    At the end of July, Garibaldi had just over $1 million in the till. I would assume that most of that will be gone by years’ end and $GGI will be looking to finance again.

    If you want to know more about Garibaldi the guys over at BullMarketRun seem to cover the stock every few days. Of course they are biased and disclose they own the stock. Not sure if Garibaldi pays them for the coverage as well as they have yet to disclose that?

    Comment by Treb — November 10, 2015 @ 11:10 am

  2. oops! Should have included in the last post that this article comes from CEO.ca

    Comment by Treb — November 10, 2015 @ 11:14 am

  3. EQT- bids building nicely…

    Comment by Bob — November 10, 2015 @ 11:40 am

  4. DBV… Signs of a news to come…

    Comment by Phil — November 10, 2015 @ 12:49 pm

  5. Maybe GGI is on hole # 4 now on that 800 meter step out. One things for certain, the area they are drilling is fairly flat and looks easy to maneuver a drill around.

    Comment by Dan1 — November 10, 2015 @ 1:07 pm

  6. Nice Close.

    Comment by Martin — November 10, 2015 @ 1:15 pm

  7. The fireworks are just starting, Martin. 16 m of massive quartz in dark red core in hole 3, followed by more than 200 m of pyrite + magnetite could be dynamite. Can’t believe there’s not some nice Gold in there. It appears this area of the Grizzly became detached from Kaketsa, way back in time, shifting over a couple of km. Uplifting has also probably occurred with Kaketsa. So those forces may have produced something quite unique at Grizzly Central from the rest of the district, along with the common copper-gold porphyry environment.

    Comment by Jon - BMR — November 10, 2015 @ 1:27 pm

  8. Just curious about the last interval (pyrite occurs as very fine-grained polished shear surfaces in a black, strongly magnetic unit)Does this corespond to the last second and third photo or something slightly different. Could this interval be high grade gold to?

    Comment by Martin — November 10, 2015 @ 2:09 pm

  9. In the last interview, Regoci attitude have change, he speak faster, he is in a rush mode id you wich, more conviced, you can tell went someone think he is on something big!

    Comment by Martin — November 10, 2015 @ 2:34 pm

  10. EQT….from Kingsley

    https://blu175.mail.live.com/?tid=cmh8yDGPSH5RG3MAAjfeSdAA2&fid=flinbox

    Comment by John - BMR — November 10, 2015 @ 2:55 pm

  11. John – your link goes to Outlook??

    Comment by Bob — November 10, 2015 @ 3:10 pm

  12. Can’t open the link John – can you tell us what it says?

    Comment by George — November 10, 2015 @ 3:41 pm

  13. No clue what that’s supposed to be,John.Looks like an ad,that’s all.Are you sure that’s what you wanted to show?

    Comment by robinandthe7hoods — November 10, 2015 @ 3:42 pm

  14. John- your EQT link doesn’t work.

    Comment by DDD4 — November 10, 2015 @ 4:02 pm

  15. Jon, the link you just posted from Kingsley takes me to outlook.com. That’s it.

    Comment by Dan1 — November 10, 2015 @ 4:04 pm

  16. Target price for GGI ?

    Comment by leslie — November 10, 2015 @ 4:11 pm

  17. EQT – news. Raised less money in the PP. But how? The exchange approved it? Where was the mistake?

    Comment by George — November 10, 2015 @ 4:21 pm

  18. Hey John, could you repost please. That link goes to the Hotmail sign-in page. Thanks.

    Comment by Treb — November 10, 2015 @ 4:55 pm

  19. John- I clicked on the link in post #8 and it took me to the Microsoft log in page. Not sure what the link is for or what to do with it??

    Comment by DBReese — November 10, 2015 @ 5:08 pm

  20. Did anyone else get routed to outlook?

    Comment by Ivan — November 10, 2015 @ 5:25 pm

  21. EQT- news….I guess some insiders got nervous and cancelled their cheques…..lol. With the lack of rumours from the camp I would be nervous too if I would have put a lot of money into the PP with a 4 month hold…..

    Comment by DDD4 — November 10, 2015 @ 5:25 pm

  22. Les, GGI..any day now, look for a halt at the company’s request pending news!! Stock will gap up on expected good to excellent drill results.

    Comment by Jeff — November 10, 2015 @ 5:37 pm

  23. Sorry folks….here it is…but without the video.

    Date: Tue, 10 Nov 2015 13:43:34 -0800
    Subject: Equitas’ Maritime Conference a Success
    From: [email protected]
    To: [email protected]

    Back now at the office catching up with phone calls, emails and setting up meetings and conference calls for Equitas. I’d like to give everyone an update of the Mineral Resources Review Conference we attended in St. John’s Newfoundland & Labrador. The attendance was well attended in my point of view. I am very glad Equitas Resources, Zimtu Capital and GTA Resources attended the show and do encourage more companies to consider it for next year.

    Nick Rodway represented Zimtu Capital and Advantage plus Equitas like a star. Little did I know of the rich history the Rodway Family have on being settlers on the ‘Rock’, they seem to be connected to everyone in some way over there. He spent time speaking with all of the prospectors and public companies and the feeling is there are huge opportunities in the Maritimes. Wayne Reid from GTA Resources is also a well-fond of Islander.

    Several representatives of the Nunatsiavut Government came by to say hello. Director of Non-Renewable Resources Harry Borlase wished us the best of luck. Though we are not in claimed first nation lands the prospect of a major discovery would spark large exploration interest in the area. It would once again offer more jobs and opportunities for the region. He mentioned to me that Quest Rare Minerals is proposing to build a road from their rare earth deposit on the other side of the border in Quebec to close enough to the Voisey’s Bay mine site. This would greatly benefit Labrador, mineral exploration & mining development and Equitas.

    Equitas’ consulting geologist is a prominent and well respected individual on the coast. Several people came by the booth to say hello to Dan Lee. As we know Dan was the base camp manager for Archean Resources which managed the discovery phase of the Voisey’s Bay. Speaking of Archean, the number one geologist in charge of picking where the drill holes went for the discover was Kerry Sparkes (now VP – Geology of Franco-Nevada) which didn’t make it out but he did send an earlier email to us to forward to Dan;

    “Could you pass this email along to Dan Lee, with congratulations at being back doing what he was always best at, and that is good grass roots exploration, especially on the nickel side. There is no one better suited to Labrador Exploration and Geology than Dan. Also, a hello to Everett Makela, and to go easy on the pan fried char!” – Kerry Sparkes

    Dawn Evans-Lamswood stopped by Day 1 of the conference hoping to catch up with Equitas’ VP Exploration Everett and Consulting Geologist Dan. She was, as I understand through reading ‘The Big Score’ book, was the second in charge geologist for the Voisey’s Bay discovery. She’s currently Manager of Exploration for Vale’s North Atlantic projects.

    I enjoyed a lengthy and very knowledgeable conversation with Andy Kerr on Day 2 of the Mineral Resources Conference in St. John’s. Dr. Andy Kerr worked alongside colleague Bruce Ryan and other’s with the Newfoundland & Labrador Government’s Natural Resources division when the Voisey’s Bay discovery happened and he wrote several publications on it such as this one – Voisey’s Bay and the Nickel Potential of Labrador.

    After his successes in the White Gold district Yukon Prospector Shawn Ryan has focused his attention to drones. He was present at our booth and shared his developments with the drone project he’s been working on which is indeed an innovative tool for our industry. From 3D mapping to attaching induced-polarization systems to do surveys onto the drone will be favored by more companies as a way to bring down exploration costs. If no one has coined it yet I will call it Google Earth on Steroids.

    Al Keats was an amazing fellow with some highly interesting projects. He had so many stories there just wasn’t enough time to speak with him. He reminded me a lot like Mike ‘Mr. Mine Finder’ Muzylowski where he could go non-stop with amazing stories and if you have the time could go for hours. Al’s father Ted Keats was Patriarch of Newfoundland’s first family of prospecting. The family has grown and the business continues to span generations. March 2006 at the PDAC the Keats-Stares family won the Prospector of the Year award.

    All in all it was a conference most worthy of attending. All investors, stakeholders and individuals of Equitas are excited to see our drill results.

    “If you want to find a mine the best place to start looking is right next to one” – Old Mining Proverb

    Sean Kingsley | Manager, Corporate Communications

    Equitas Resources Corp. | Nickel Exploration in Labrador

    Comment by John - BMR — November 10, 2015 @ 5:52 pm

  24. Thanks John- EQT results can’t be far off as it was Oct 20th (3 wks ago)
    that they did the update stating they had sent the samples to Activation labs.

    Comment by Bob — November 10, 2015 @ 6:05 pm

  25. Kingsley – certainly leaves the impression that something will be found at the Garland, or has already. If individuals of Equitas are excited to see the drill results, then I take that to mean they hit something other than barren rock.

    Comment by Dan1 — November 10, 2015 @ 6:14 pm

  26. DDD4 – a fund couldn’t come up with the funds in time to be part of the PP. Insiders took down over 50percent of the 0.125 financing PP as per Sean Kingsley.

    Comment by George — November 10, 2015 @ 6:31 pm

  27. First, I can give a rats ars about a conference and all the suited chatter glamour. That does nothing for the stock, however, I picked up on something different than Dan.

    “If you want to find a mine the best place to start looking is right next to one.”

    Comment by dave — November 10, 2015 @ 6:34 pm

  28. John BMR- Thanks for that,conference took place Nov.4-7, now it is my understanding that Hardy (Equitas)/Zimtu Capital, are allso doing a conference some time this week i beleive in Germany( or next week ?) So maybe lots of eye’s coming into what happens with the results ?Its all on the results, tick , tock, tick, tock…….good luck to all.

    Comment by bigbear — November 10, 2015 @ 6:37 pm

  29. Jeff – Look for a halt pending news, stock will gap up on excellent drill results! – Do you have insider information we should know about?

    Comment by dave — November 10, 2015 @ 6:43 pm

  30. If my funds is available by tomorrow I’ll Phone in a rather large limit order to purchase GGI. Just so you guys know if you see a monster bid in the next couple of days that it is me soaking up the shares at 0.15 limit and the huge volume is not there because of mega news or anything like that.

    Comment by ConcernedCitizen — November 10, 2015 @ 6:54 pm

  31. Bigbear – I am not 100% sure, but I believe the conference is in L.A. with a team of American investors. I heard some time ago about November in L.A. – But that could have changed or the info I was getting could have been wrong.

    Comment by dave — November 10, 2015 @ 6:55 pm

  32. Those are sure some suttle hints from Kingsley I am picking up on. Could get interesting yet.

    Comment by dave — November 10, 2015 @ 6:57 pm

  33. George….thanks for the info on EQT PP.

    Comment by DDD4 — November 10, 2015 @ 7:31 pm

  34. those conferences have are to find us new meat to get the next leg going, part of any good PR/IR stuff and what Kinglsey reported is nothing new to us, but then he couldnt really write down exactly what he said to Keats, Sparkes and the gang w/o getting into trouble could he. the ol boys network at work, hopefully.

    Comment by david — November 10, 2015 @ 7:35 pm

  35. Your right David, and good point. Lets hope for the best with eqt.

    Comment by dave — November 10, 2015 @ 7:44 pm

  36. DDD4 – I believe George is correct. The funds from elsewhere got snagged by an exchange and EQT had to close it for the price protection. This is my guess also.

    Comment by dave — November 10, 2015 @ 7:47 pm

  37. Dave, all I can say is “no comment”..;-)

    Comment by Jeff — November 10, 2015 @ 8:30 pm

  38. The chart looks awesome for GGI. Stockscores gives it a rating of 98 which is the highest rating it can give a stock. We are going higher!

    Dave, regarding post #29, I think if Jeff had insider information he would be wise not to share too much of it on a public forum.

    Comment by Danny — November 10, 2015 @ 8:43 pm

  39. Let’s just say I am not disappointed the PP wasn’t filled. It means less dilution and if they should hit, funds will come but at higher prices which is good. I wasn’t tore up about the announcement that they were raising all that money at the lower price. I know funds are hard to raise these days and nickel is a little harder to pinpoint than say a porphyry deposit which is probably why they were trying to raise the extra cash.

    Comment by Dan — November 11, 2015 @ 3:56 am

  40. Nice to see GGI push through 14 cent resistance. If it can push through 15, watch out.

    Comment by Tony T — November 11, 2015 @ 4:03 am

  41. Ggi is sounding great , I may have to get out of dbv while I can and get a peice of the pie ,

    Comment by T — November 11, 2015 @ 6:05 am

  42. Until we receive assays, DBV is still the leader of the district with the most promising deposit but this may change after GGI gets some results out……TBC.

    Rumours indicate that DBV will soon get back to site to continue drilling and when it does, I think it the stock price will react accordingly. GGI seems to be stuck at this level. Its up to you to switch DBV for GGI….I sold my GGI for DBV last week then after more info I rebought the shares but didn’t sell my DBV though.

    Comment by DDD4 — November 11, 2015 @ 6:29 am

  43. Concernedcitizen- GGI seems to be waiting for you to get your shares before breaking through this resistance.

    Comment by DDD4 — November 11, 2015 @ 6:42 am

  44. WRR-I just spoke with Michel David, news next week about drilling !

    Comment by Guy Delisle — November 11, 2015 @ 6:42 am

  45. spoke too soon..lol…..hopefully that was you Concernedcitizen!

    Comment by DDD4 — November 11, 2015 @ 6:44 am

  46. Bought 150k more shares today in ggi. Let’s see what happens next!

    Comment by Kalkan — November 11, 2015 @ 6:50 am

  47. I’m waiting for funds to clear, could be bidding for GGI tomorrow. If GGI goes up past 0.15 I am moving my funds to DBV instead.

    Comment by ConcernedCitizen — November 11, 2015 @ 6:53 am

  48. GGI – my .05’s are getting greener.

    Guy – good news for WRR. They have a chance at pulling some big numbers. GSV just had a nice run from their Nevada property.

    Comment by dave — November 11, 2015 @ 7:19 am

  49. WRR – yikes, TD hammering it today.

    Comment by dave — November 11, 2015 @ 7:40 am

  50. WRR- TMXmoney reported insider selling yesterday which accounted for most of the day’s volume and today more sell orders.

    Comment by DDD4 — November 11, 2015 @ 7:46 am

  51. Hmmmm, now why would insiders be selling WRR if they are about ready to drill. Kinda makes no sense.

    Comment by dave — November 11, 2015 @ 7:58 am

  52. DDD4 I spoke with Michel and I told this, he said it is a mistake from summary insider selling after check all insider nobody sold share !

    Comment by Guy Delisle — November 11, 2015 @ 8:16 am

  53. WRR must be one of the slowest moving companies around. On June 9 they had a news release saying they were “pleased to announce it has progressed with its’ exploration drilling campaign”. What does that mean? How many times has it been next week? Glad I own GGI instead, must be frustrating for WRR shareholders and now insider selling reported on TMX money.

    Comment by Danny — November 11, 2015 @ 8:17 am

  54. TMXmoney also shows a correction for insider activity in EQT. Net + 170k shares on two trading days in August and October.

    Comment by Treb — November 11, 2015 @ 8:26 am

  55. I guess it doesn’t take much progress for WRR to be “pleased”…..lol.

    Comment by DDD4 — November 11, 2015 @ 8:43 am

  56. I am guessing WRR is having money issues like a lot of other juniors right now. I was a little bored today so I looked at their financials that was posted Oct 28. It said they had 3,712 dollars at the end of August. I know it’s a tough environment to raise money. They had a press release Sept 17 that said drilling would begin on or about Sept 20. I don’t mean to pick on them as it’s a tough environment for juniors but you shouldn’t make statements you can’t back up. Looks like a whole lot of red flags to me. But I could be wrong.

    Comment by Danny — November 11, 2015 @ 9:09 am

  57. hello WRR basher Danny. Are you an insider of WRR? Then you do not know what is going on. I see you read the lastest finanicials but neglected to read the last couple of news reports about the joint venture being executed on WRR’s Nevada property in which they were going to be paid $250000 US dollars for 25 % of the property and another $250000 for another 25 %. Amongst other monies for work to be done on the property. I know the opening statement may be a little harsh and be removed but I don’t like people bashing my stocks when they don’t know the whole story. Red flags…. i think green flags is more like it .. to drill that is into high grade gold my friend Danny.

    Comment by ed — November 11, 2015 @ 9:57 am

  58. I know that money is not a problem for WRR and more…. we drill for more than 4 month !

    Comment by Guy Delisle — November 11, 2015 @ 10:05 am

  59. Ed, well said regarding WRR as I’ve very recently spoken with David who confirmed that drilling will be starting *next week*. PR coming out very soon announcing drilling start up.

    Comment by Jeff — November 11, 2015 @ 10:13 am

  60. ed, don’t mean to bash anyone’s stock here as we don’t want to turn this into a stockhouse type board, heaven forbid. You are right, I didn’t include the release about the joint venture which should help them. I am not an insider. Best of luck with your investment in WRR, I hope it does well for you and the other shareholders of WRR on this board.

    Comment by Danny — November 11, 2015 @ 10:25 am

  61. I see exciting times ahead with the likes of GGI, EQT, DBV, WRR and the sheslay district. From the time I began trading stocks in 1998 I have seen many bumps in the road so there will be ups and downs. I love the idea of having a core position in many good quality junior stocks and then also a trading position to take advantage of market swings. Happy investing to all.

    Comment by ed — November 11, 2015 @ 10:42 am

  62. How come every time a stock comes to prominence or there is some spotlight on it (EQT or others) Stock house turns into a complete gong-show?

    The amount of time people spend trying to talk stocks down or spread lies is really disheartening. I wish SH would start taking action, I find it hard to even find poster’s due diligence often on those boards- or even an educated opinion.

    BMR is geared toward commodities but it is a really good discussion location, hopefully that never changes.

    Comment by Intraca — November 11, 2015 @ 12:02 pm

  63. Not a fan if seeing anon unloading Ggi shares.

    Comment by tony t — November 11, 2015 @ 12:17 pm

  64. Ed- nice portfolio….in the exact same stocks…….one makes up most of my portfolio though…lol.

    Comment by DDD4 — November 11, 2015 @ 1:26 pm

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