Gold has traded between $1,047 and $1,070 so far today…as of 11:05 am Pacific, bullion is down $20 an ounce at $1,052…Silver has tumbled 43 cents to $13.74…Copper is off 3 cents at $2.06…Crude Oil is 69 cents lower at $34.83 while the U.S. Dollar Index is up again, more than half a point at 99.23…the Venture is holding steady, bucking the general downward trend today, another sign that its traditional December reversal is drawing near…
The Federal Reserve finally got a rate hike out of the way yesterday, the first in nearly a decade, but the Fed will now attempt to do what no central bank has been able to accomplish over the past decade – successfully keep interest rates above zero once they were cut that low, with recent examples that hiked and then returned to zero including the Bank of Japan and the ECB…the Bank of Canada, which raised rates to as high as 1% following the 2009 recession as the Canadian economy rebounded, reversed that hike with two cuts this year and recently discussed the possibility of negative interest rates…
When the Fed moves next will depend importantly on how inflation evolves…the Fed’s preferred measure of inflation has run below its 2% objective for more than 3 years…the central bank focused extra attention on the inflation outlook in its statement yesterday, saying it would “carefully monitor” actual and expected progress toward the goal…this point implied the Fed will be reluctant to raise rates again unless it sees inflation actually moving up…for now, officials said they were “reasonably confident” inflation would rise – but the Fed has so far underestimated deflationary pressures, including the depth of the Crude Oil problem…they’re hoping that tightness in the labor market will exert upward pressure on wages, thereby giving overall inflation a kick, but there are counter-forces at work on the inflation front including the effects of a strong U.S. dollar which has also hurt the U.S. manufacturing sector…
In today’s Morning Musings…
1. World Gold Council sees more Gold-supportive measures on the way in Asian markets…
2. Updated Venture chart as the Index holds up well today despite broad pressures…
3. Gold Standard Ventures (GSV-V) challenges resistance as it hits a new 52-week high on strong volume…
4. Garibaldi Resources’ (GGI, TSX-V) potentially dramatic high-grade “double play”…
5. FerroAtlántica cancels major Quebec project…
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…
Very interesting…still holding my full position on GGI and expecting I will watch all this play out. Some companies are worth holding and not risking playing for a few pennies.
Comment by weatheritout — December 17, 2015 @ 11:42 am
Must admit though…the waiting is hard. Not in the aspect that I’m going to sell with the news…but more the excitement to see exactly what we have. Then it’s easier to just sit back and watch. I do have a feeling that it’s going to be exciting
Comment by weatheritout — December 17, 2015 @ 11:49 am
Hello Jon,
What do you think about HGU and NUGT since a couples of days. I don’t understand why there is such volatility…I know that the FED raise the rate but it seems more a manipulation kind of thing….are you still bullish ?
Thank you
Comment by Sylvain — December 17, 2015 @ 12:29 pm
You’re right, Sylvain…major volatility here…over the last 5 months, the HGU has been bouncing around in a horizontal channel between $14 and $22…there are several different indicators to look at, but the pattern of the flattening out of the 100-day SMA (after a period of decline) has preceded the other significant moves in the Gold Index in 2012, 2014 and at the beginning of this year…that’s where we’re at again now…it’s just hard to believe that Gold and Gold stocks won’t turn higher for at least a strong rally rather soon…
Comment by Jon - BMR — December 17, 2015 @ 12:45 pm
nice close at .15$ thanks to anonymous, update tonight?
Comment by Martin — December 17, 2015 @ 1:16 pm
Thank you Jon
Comment by Sylvain — December 17, 2015 @ 1:32 pm
Phase I encourages Equitas Resources’ winter drill campaign southeast of Voisey’s Bay
by Greg Klein | December 16, 2015
Bolstered by geophysics and its first round of drilling, Equitas Resources TSXV:EQT looks forward to continuing its search for Voisey’s Bay-type mineralization. Results announced December 16 show three areas of focus on Garland, a 23,386-hectare property 30 kilometres from Labrador’s historic nickel-cobalt-copper discovery. With the rig still on site and money in the bank, Equitas plans to resume drilling as soon as winter conditions allow.
Phase I encourages Equitas Resources’ winter campaign southeast of Voisey’s Bay
With positive autumn results and funding in place,
Equitas Resources plans winter drilling at Garland.
The company took on the newly assembled property earlier this year, based partly on the fact that the great nickel deposits of Sudbury, Norilsk, Thompson and Raglan occur in clusters. But Equitas also saw specific merits in these claims, which hadn’t previously undergone modern exploration. Now assays and geophysics instil further confidence in the project, says president Kyler Hardy.
“We think this is the start of something larger,” he says. “We’ve touched on something very exciting that can lead us to the bigger picture.”
Among highlights of the five-hole, 1,678-metre fall program was GP15-005, where two intercepts showed:
0.08% nickel, 0.1% copper, 70 ppm cobalt and 1.33% sulphur over 4.6 metres, starting at 19.9 metres in downhole depth
0.11% nickel, 0.14% copper, 93 ppm cobalt and 1.77% sulphur over 1.5 metres, starting at 54.5 metres
The intervals occurred within 69 metres of disseminated sulphides in a hole that revealed “an environment favourable for massive sulphide deposition,” said VP of exploration and Voisey’s veteran Everett Makela. Historic surface sampling found up to 0.15% nickel and 0.1% copper. Equitas has the area slated for a Crone pulse electromagnetic (PEM) survey when work resumes.
A downhole PEM probe of GP15-004 found “a complex anomalous response that may indicate a significant good quality conductor near the hole, in the modelled depth range for buried Voisey’s Bay-type deposits,” the company reported. Possible problems with the data call for an additional PEM survey prior to drilling.
On the property’s northern area, consulting geophysicist Alan King interprets a major east-west lineament as “representing the southern margin of the graben structure hosting the Voisey’s Bay mine.” The Garland structure coincides with VTEM anomalies and a nickel-copper-cobalt lake sediment anomaly “comparable to the anomalies adjacent to the Voisey’s Bay mineralization,” the company stated.
Overall, the autumn results give Equitas “three solid exploration focus areas for the next program, anticipated to commence as soon as safe lake ice and optimal late winter conditions are present,” Makela said. “We are fully funded for the next phase and have the economic and logistical advantages of a camp and drill rig already at site.”
Read more about Equitas Resources.
See a three-part infographic about Voisey’s Bay.
This article was posted by Greg Klein – Resource Clips on Wednesday, December 16th, 2015 at 9:56 am.
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Comment by Bob — December 17, 2015 @ 1:54 pm
Martin, I’m not sure what sort of update we can get. I don’t think they will decide where to drill hole 6 until the first assays have come back. Better details of hole 5 would be nice but if Regoci wanted to share that he would have done it on the NR of 10th Dec. I think the best we can hope for is assays before Thursday next week, but my feeling is that we will have to wait until January. I’m not sure how this affects their drilling as they need to spend the FT funding before year end. I’m sure Regoci will have a plan but it does feel that we are getting close to the wire with this one.
Comment by Tom UK — December 17, 2015 @ 2:29 pm
Tom my feeling is that hole 5 is also a game changer, epithermal mineralisation extend to the east, at challow depth, and who knows went it end. My opinion is that they want to follow the pyrite magntite structure first. This is big!
Comment by Martin — December 17, 2015 @ 5:01 pm
Hi BMR, can you discuss or touch upon the FT money that needs to be spent , year end? Thanks.
Comment by George — December 17, 2015 @ 8:46 pm
Yes Martin, I guess they are spoilt for choice as to where to put the next couple of holes. They will want to get the best bang for their buck with what funding they have left. Unless they have something to generate cash down in Mexico in the near future, they will have to raise cash from a placing. The higher the SP, the less the dilution – this is what is going through Regoci’s head I’m sure.
Comment by Tom UK — December 17, 2015 @ 11:16 pm
There are creative ways for any company to handle that, George, it’s not really an issue.
Comment by Jon - BMR — December 18, 2015 @ 3:42 am
GGi – It is so frustrating watching this stock. Im hopeful and ready for the news.
Comment by George — December 18, 2015 @ 6:32 am
jon: i guess a 10% increase in the Venture means a measly 50 pts upwards now???
Comment by STEVEN1 — December 18, 2015 @ 6:37 am
50 or 75 points, I think anyone would take that, Steven1…gotta start somewhere…doesn’t sound like much but equates to 200 or 300 when the Index was at 2000…
Comment by Jon - BMR — December 18, 2015 @ 7:05 am
yes but we’ve gone down how much to get back 10%? even in the last few months?….its almost like your saying that we bought at 495!
Comment by STEVEN1 — December 18, 2015 @ 7:35 am
That’s true, Steven1, it has obviously been a nasty slide…but historically, as even Greece showed, as well as the Venture previously, 80% wash-outs can be followed by dramatic moves the other way…
Comment by Jon - BMR — December 18, 2015 @ 7:56 am
NASDAQ – high 5000 approx. in 2000, low 1300’s in ’02 + 08, 5000 in ’15. cycles. nice ride over the past 4 yrs in particular there. copper was 70 cents a lb and gold $300 in 98. this sucks, but its a cycle
Comment by david — December 18, 2015 @ 9:24 am