Gold has traded between $1,062 and $1,078 as the FOMC prepares to announce a likely 1st hike in the Fed funds rate in nearly a decade…as of 9:45 am Pacific, bullion is up $14 an ounce at $1,075…Silver has surged 43 cents to $14.19…Copper has added 2 pennies to $2.09…Crude Oil has fallen more than $1.50 a barrel to $35.80 on bearish new supply data, while the U.S. Dollar Index has gained one-tenth of a point to 98.21 (98 is resistance, we’ll see if that’s a level the index can hold following the Fed’s policy decision)…
Investors continue to dump holdings of Gold-backed ETPs…assets fell to 1,464.24 tons on Monday, the lowest since February 2009, according to data compiled by Bloomberg…
Since 2013, around 38 million ounces of Gold ETF holdings have been sold, but over 50 million remain, UBS points out…
“We do not anticipate a repeat of 2013 ETF liquidations,” UBS says. “That Gold ETFs are back to 2008–2009 levels suggests a lot of adjustment has already taken place. That holdings are more geographically diversified also suggests that ETFs outside the U.S. are likely to be more resilient amid monetary policy easing elsewhere and broader macro risks. While some more fine-tuning may still be in store, we expect this to be limited.”
China Growth Update
China’s annual economic growth is likely to slow to 6.8% next year from an expected 6.9% this year, the People’s Bank of China said in a working paper published today…the world’s 2nd-largest economy still faces downward pressure and the impact of fiscal and monetary policies that were rolled out this year will be evident by the first half of 2016, the central stated in its report: “Although downward pressures on growth will persist for a while due to overcapacity, profit deceleration, and rising non-performing loans, we expect that the number of positive factors will gradually increase in 2016.”
Meanwhile, the Chinese Academy of Social Sciences (CASS), a top government think tank, predicted in its “blue book” the economy could expand at a slower pace in 2016, between 6.6% and 6.8%, due to weak external demand and cooling domestic investment…the think tank recommended that China should widen its fiscal deficit to 2.12 trillion yuan ($327.6 billion) next year from a planned 1.62 trillion yuan in 2015, keeping the deficit to GDP ratio within the warning level of 3%…
Crude Oil Update
The OPEC cartel will be forced to call an emergency meeting within weeks to stabilize the market if Crude prices fail to rebound after crashing below $35 a barrel earlier this week, two member states have warned…Emmanuel Kachikwu, Nigeria’s Oil minister and OPEC President until last week, said the cartel was still hoping the Oil market would recover by February as low prices squeeze out excess production from U.S. shale, Russia and the North Sea (not likely in our view)…nerves among some OPEC members are beginning to fray…
“If it doesn’t, then obviously we’re in for a very urgent meeting,” he said (so what, the Saudis and their Gulf allies are probably thinking)…Indonesia has issued similar warnings over recent days, suggesting the OPEC majority may try to force a meeting if Saudi Arabia’s strategy of flooding the market creates a deeper crisis…
Meanwhile, as WTI trades in the mid-to-upper $30’s, some producers are already living with the reality of much lower prices… in western Canada, some producers are selling heavy Oil for less than U.S. $22 a barrel (getting Oil to market in Alberta is critical)…a mix of Mexican Crudes is already valued at less than U.S. $28, an 11-year low, according to data compiled by Bloomberg…Iraq is offering its heaviest variety of Oil to buyers in Asia for about U.S. $25…
“More than one-third of the global Oil production is not economical at these prices,” Ehsan Ul-Haq, senior consultant at KBC Advanced Technologies Plc, stated in a news report. “Canadian Oil producers could have difficulty in covering their operational costs.”
Crude came under pressure again this morning after data from the U.S. Energy Information Administration showed Crude inventories rising by 4.8 million barrels in the last week, compared with analysts’ expectations for a decrease of 1.4 million barrels…the global oversupply problem will only be solved by lower prices that boost demand and take excess supply off the market – more rebalancing is required…
In today’s Morning Musings…
1. The myth that Gold suffers during a Fed rate hike cycle…
2. How the broader equity markets normally behave after the start of Fed rate hike increases…
3. Two Uranium plays well-positioned for a recovery during the Venture’s period of seasonal strength…
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…
A big OMG for the assay results released by EQT today. That’s all I will say. I’m sorry for your loss.
Comment by Ted — December 16, 2015 @ 9:58 am
Hardy himself said this was a big swing for the fences, Ted, and it looked increasingly likely after their Oct. 20 news that they hadn’t hit much of significance…now it’s up to Hardy to bounce back and put something into EQT that will allow it to regain momentum and make things happen…this is where diversification is always important…
Comment by Jon - BMR — December 16, 2015 @ 10:01 am
Kingsley Three technical successes at the mid-way point of the #EQT drill program. Our exploration model has been in searching for buried analogues of Voisey’s Bay-style mineralization. Intercepting disseminated sulphides shows us the possibilities are there. What we have achieved thus far warrants immediate follow-up when safe and we have the funding already to do so.
Comment by murf — December 16, 2015 @ 10:02 am
EQT- Todays Rockstone Report
http://rockstone-research.com/images/PDF/Equitas8en.pdf
Comment by murf — December 16, 2015 @ 10:17 am
I understand the the three technical successes. My OMG pertains to all the pumping on Stockhouse.
Comment by Ted — December 16, 2015 @ 10:27 am
GGI – what kind of move can we see on GGI if the results are as good as we are expecting?
Comment by George — December 16, 2015 @ 11:26 am
EQT- Just to be clear, the three technical successes comment above was made by Sean Kingsley not me.
Comment by murf — December 16, 2015 @ 11:31 am
Going to post the interview today Jon? Regoci.
Comment by Dan1 — December 16, 2015 @ 11:34 am
Just spoke to GGI’s IR people. It’s the AGM today – anyone attending?
They are waiting until assays come back before drilling hole 6. Hole 3 is definitely the one that has got them excited. Depending on results, the next 2 holes will either be step out, or infill in the area between 2,3 and 4.
Even though the FT must be spent before 31st Dec, they are not rushing anything.
Comment by Tom UK — December 16, 2015 @ 11:51 am
George, we are all hoping for good results but I don’t know how good. It will obviously be speculation, but is anyone willing to stick their necks out and put some numbers on the assays?
Personally I am hoping that as a first drill on the grizzly that GGI have hit something that is on a par with the best of what DBV and PGX have hit with all their drilling. There may be some intercepts of gold on some holes that I hope are in excess of 1g/t. I also believe that the market has not factored anything much in to the share price of GGI with relation to hitting anything at the Grizzly.
Comment by Tom UK — December 16, 2015 @ 12:10 pm
Thanks Tom. Five trading sessions left after today before the Christmas break. When I spoke with IR last week they said assays should be out prior to Christmas. Will it be a lump of coal in our stockings this year, or something shinier?
Comment by Treb — December 16, 2015 @ 12:13 pm
EQT- selling may be overdone here, considering they have drilled
only 5/10 anomalies, and of the 5, 3 will have follow up. So, with
only half the program complete, I will let the storm blow past.
Comment by Bob — December 16, 2015 @ 12:15 pm
Jon are you attending GGI shareholder meeting?
Comment by Martin — December 16, 2015 @ 12:48 pm
Treb, they did say that there were a lot of samples belonging to GGI at the lab and that the lab was somewhat short of staff compared to recent years. 3 or 4 geologists will look at the results before a NR is released.
Comment by Tom UK — December 16, 2015 @ 12:52 pm
Too busy to even get downtown today, Martin, and most AGM’s are typically a waste of time.
Comment by Jon - BMR — December 16, 2015 @ 1:04 pm
Hey gang. EQT – ugh. Well, the move not going well, cant get the wireless going where I moved too, so I am looking to remove and hopefully get situated soon. I kinda figured this would happen to EQT, most don, thit on first holes. On my daughters laptop, notuse to this thing. Venture dropped below 500, Yikes. Canadian dollar getting creamed. Where does it end.
Comment by dave — December 16, 2015 @ 1:22 pm
Tom, then assays coming out prior to Christmas might be optimistic then. The stock saw a good run after the Nov 3rd and 10th NR’s and a small bump after the Nov. 20th NR but whatever buying came in after the latest update Dec. 10 quickly fizzled out. Sitting right at it’s upsloping trend line in an area of support, if we’re going to see any speculative buying that BMR is calling for prior to assays then now would be a good time. If it starts to trade below support where it sits then I’ll be less confident going forward. Just my take.
Comment by Treb — December 16, 2015 @ 1:26 pm
One positive today. Gold was up. Now if GGI can release something monstrous then maybe we have a chance. Major discovery is what this market needs.
Comment by Dan1 — December 16, 2015 @ 1:50 pm
$EQT blog post – pennyminingstocks.com/equitas-resources-arena-minerals-insider-buying/
Comment by Jonas — December 16, 2015 @ 3:23 pm
Reduced my position in EQT before it dropped today and picked up more GGI. Now very heavily weighted in GGI and hoping for the big hit. We know the cores look good and the xrf analyzer has them excited. Jon, when will your latest interview with Regoci be released.
Comment by Dan1 — December 16, 2015 @ 3:57 pm
Those doing tax loss selling DBV have sold me stock and if the selling persists in the next few days I’ll be picking up more in small amounts . Drilling starts in January as it made no sence to send in a drilling crew for a few days before Christmas break..
Comment by Les — December 16, 2015 @ 4:37 pm
Bummer to see those eqt results. I’m sure INCO knew long before.
Comment by tony t — December 16, 2015 @ 4:42 pm
When you purchase a stock like EQT you should be playing the speculation process not wishing/hoping for a big hit, those happen but are very very infrequent. I learned that lesson a long time ago. It’s unfortunate the first few holes didn’t hit but that is the norm. At least GGI has more than one iron in the fire. I give EQT credit for being able to raise money in a tough environment and assemble a good team. They gave it their best shot and still have some good targets but I think this is dead money for a while.
Comment by Danny — December 16, 2015 @ 4:56 pm
Jon what could be a bullish scenario in terms of grade in hole 3. We have three different zone of mineralisation with two having high grade gold potential.
Comment by Martin — December 16, 2015 @ 5:37 pm
You’re right, Danny, the other thing too is that Nickel deposits are notoriously difficult to find, unlike porphyry systems or other deposit types that have much larger alteration footprints. Garland, as Hardy himself indicated, was a major swing for the fences. The structural package is there at Garland but that property is still in its very early stages and there was not much of a signature map to go on with this first round of drilling. They had the right people and the right technology to hit it lucky on the first try, but they just didn’t. That’s unfortunately what can happen. That second discovery after Voisey’s Bay remains elusive. With that as their only project, they got dumped on today, but I do believe they have a “Plan B” that will help turn things around when they unveil it. In the Sheslay district, unlike Voisey’s Bay, DBV made that critical second discovery which supports a multiple deposit thesis for an area that has a phenomenal drill hole hit ratio (about 70% from 90 holes).
Comment by Jon - BMR — December 16, 2015 @ 5:48 pm
Martin, you’re right, 2 of the 3 zones in Grizzly Central hole 3 have high-grade Gold potential (which would be in the multi-grams) within the massive quartz veining/hematite zone from 86 to 102 m, and then in the fine-grained pyrite-magnetite zone from 102 to 308 m. Geologists I’ve spoken to believe there’s a strong chance for electrum in the sulfides. It’s a very different hole for the district, and appears to be epithermal. The heightened confidence in this hole is rooted in a number of factors, including, no doubt, the XRF results. This single hole could change the entire district – let’s leave it at that for now and let the assays tell the story.
Comment by Jon - BMR — December 16, 2015 @ 6:13 pm
Ok let’s do that!
Comment by Martin — December 16, 2015 @ 6:43 pm
Les, do you know if Dbv has secured financing?
Comment by Sameer — December 16, 2015 @ 7:22 pm
Not to worry about financing Sameer , there are backers with deep pockets whenever Farshad needs more funding. Getting those cores to the lab before Christmas break is the priority and they will resume drilling in the new year , just hope they don’t get a cold snap or excessive snow in January.
Comment by Les — December 16, 2015 @ 8:22 pm
Great news regarding funding Les. When will these backers put the cash in to DBV’s bank account in order to get drilling going?
Comment by Tom UK — December 17, 2015 @ 12:20 am
Les is correct on the funding. This is absolutely not an issue and some key players and deep pockets want in as they see the value and potential in the HAT. Drilling will only resume in January and like Les said the priority is getting the core to the lab so we get results ASAP.
Comment by DDD4 — December 17, 2015 @ 4:52 am
Thanks BMR for the alert earlier today. The quote from Regoci should be enough to keep any nervous nellies from selling whilst we wait for the assays…….
“We’ve seen indications of numerous mineralized zones,” Regoci stated in an interview we’ll be sharing more of in today’s Morning Musings. “This system runs far greater than we have mapped so far. The width of it is going to be intriguing.
“We all know this district is very, very rich. What we see based on this Grizzly Central drilling to date is that there’s going to be multiple different styles of mineralization in the Sheslay district – different deposits, Gold deposits, Copper deposits, epithermal deposits. The first chapters are just being written here with the Grizzly…it’s going to make an awful lot of shareholders happy.”
Comment by Tom UK — December 17, 2015 @ 6:31 am
Gold down today, but at the Venture is in the green so far which is a good sign…
Comment by Jon - BMR — December 17, 2015 @ 6:59 am
Someone posted it on SH. I don’t think anyone should post on SH if you receive an email from BMR.
Comment by Dan1 — December 17, 2015 @ 7:03 am
Correct, Dan…that’s also something in the process of just going out, sometimes people don’t follow the rules which is irritating.
Comment by Jon - BMR — December 17, 2015 @ 7:09 am
Did an alert go out today…never received one.
Comment by weatheritout — December 17, 2015 @ 7:13 am
Like I just replied to Dan1, weatheritout, it’s still going out to subscribers only.
Comment by Jon - BMR — December 17, 2015 @ 7:17 am
Ok…I’ll wait for it…Thanks Jon
Comment by weatheritout — December 17, 2015 @ 7:19 am
Just got it…looks good, thanks Jon
Comment by weatheritout — December 17, 2015 @ 7:21 am
Posting subscription material on others sites is very disrespectful of the work that BMRs does and it’s also disrespectful to subscribers that pay for the information.
Comment by DDD4 — December 17, 2015 @ 7:22 am
Can I ask the date the interview was conducted? “It’s going to make an awful lot of shareholders happy” could be more than groundless optimism if it’s very recent (yesterday/today). jmo
Comment by ConcernedCitizen — December 17, 2015 @ 7:56 am
while I would typically agree that BMR stuff not be posted elsewhere, if someone posted the GGI blast or an excerpt of it, I’d be happy as this forum has for the most part made up its mind on what it thinks of GGI.
GGI now needs to get a few more eyes on it. Might be wise to post excerpts and suggest people buy the real deal, if they want more info
Comment by david — December 17, 2015 @ 8:03 am
Anything posted from BMR on any site should only be done with BMR permission period. If permission is granted it should be stated that one has permission to re print and where it came from
Agree maybe we could get more eyes on GGI and other stocks but has to be done the right way in my opinion
Comment by Greg — December 17, 2015 @ 8:21 am
Just a few days ago, CC, but double-checked late yesterday that it’s still current…
Comment by Jon - BMR — December 17, 2015 @ 8:34 am
Thanks for the reply Jon. I’m fed up with baseless hyping. Knowing GGI’s team is highly skilled in tracking down high grade deposits, knowing what PGX & DBV & Golden Bear discovered next door; giving Regoci the benefit of the doubt.
Comment by ConcernedCitizen — December 17, 2015 @ 8:56 am
CC – are you saying that GI CEO is talking out of his a@@?
Comment by George — December 17, 2015 @ 9:23 am
George – I’m saying it’s a powerful quote, did his @$$ peek at scrumptious goodies?
Comment by ConcernedCitizen — December 17, 2015 @ 9:51 am
elt news coming ?????????
Comment by brian — December 17, 2015 @ 10:59 am
NOBODY should be posting anything from BMR on any site. I believe you agreed to that when you took your subscription. If BMR does it – their work, their choice. As to the benefits of posting information on other sites to get more eyes on a stock, would it really help? More eyes certainly helps on volume, but the bigger the pump, the bigger the dump. I prefer a nice, steady, decent volume run up like GGI on low news and low awareness, as opposed to a fast, high awareness, high volume, EQT style pump and dump with lots of eyes on it. People will find out soon enough if they have the goods, and better to be in strong hands when the goods are revealed.
EQT classic pump and dump. If you think it had a tight lid on it, look at WHEN they started drilling (Sept 23), WHEN the share price started tanking on volume (Oct 15), and recent drill results (DEC 16). Leaky leaky. Don’t believe what anyone says, especially insiders and CEO’s, the share price tells it all. Let that be a lesson to any novices on board.
Comment by DBReese — December 17, 2015 @ 11:12 am