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December 30, 2015

BMR Morning Market Musings…

Gold has traded between $1,059 and $1,073 so far today…with Gold prices down roughly 10% this year, the precious metal is on track to record its 3rd straight annual loss in U.S. dollar terms, its longest yearly losing skid since 1998as of 7:15 am Pacific, bullion is down $9 an ounce at $1,060…Silver is off 13 cents at $13.81…Copper is flat at $2.13…Crude Oil has lost more than $1 a barrel, trading at $36.84, while the U.S. Dollar Index is up slightly at 98.28

Global economic growth will be “disappointing” next year, the head of the International Monetary Fund said in article in a German newspaper (Handelsblatt) today…IMF Managing Director Christine Lagarde said the prospect of rising interest rates in the U.S. and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide…in addition, growth in global trade has slowed considerably and a decline in raw material prices is posing problems for economies based on these, while the financial sector in many countries still has weaknesses and financial risks are rising in emerging markets, she added.  “All of that means global growth will be disappointing and uneven in 2016,” Legarde said, adding that low productivity, aging populations and the effects of the global financial crisis were putting the brakes on growth…

The global economy will certainly be tested in 2016 by an unusual divergence among the world’s leading central banks with the Federal Reserve mapping out a course for higher interest rates while its counterparts in Europe and Japan engage in full-throttle monetary easing…such a divergence didn’t work so well for the ECB in 2011 when it briefly attempted to raise rates while the Fed was still in the midst of an easing program..the ECB quickly found the euro zone economy wasn’t strong enough to sustain higher rates…the European stock market tumbled and the continent’s debt crisis intensified…by the end of the year, the ECB was forced to backtrack on its monetary policy and started cutting rates again…

Crude Oil Update

Rising Oil inventories are another sign that the oversupply, which has battered the market for more than a year, is continuing unabated – the only way this can be solved is through significantly lower prices…Crude is already on track to fall by more than a third this year as big suppliers such as Saudi Arabia and Russia have continued pumping Oil in a bid to defend their market share…meanwhile, U.S. Crude output has been resilient despite the big drop in prices, and much of the excess has gone into storage…

U.S. Oil stockpiles remain near levels not seen for this time of the year in around 80 years…technically, as John’s recent charts have shown, WTI has major resistance at $40 a barrel, so the current risks are skewed to the downside…

Oil Drilling

At 7:30 am Pacific, the U.S. Energy Information Administration (EIA) will report the latest Crude inventories and U.S. production estimates…while U.S. output has fallen from a peak of 9.6 million barrels a day in April, it has remained stable at around 9.1 million bpd in recent months…

In another sign of the global Oil glut, China’s export of refined products rose 68% year-over year in November while imports dropped 21%…still, analysts expect China’s Crude appetite to remain high as the country continues to take advantage of the low Oil prices to fill its strategic reserves and local refiners capitalize on the cheap Crude…

In today’s Morning Musings

1.  A bullish Dow chart entering 2016

2. Venture non-resource stock trading at just 5 x estimated 2015 net earnings (on a fully diluted basis)…

3.  Canadian Gold producer breaks out despite sluggishness in the metal…

4.  Updates on 3 juniors that have performed very well in Q4

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…

60 Comments

  1. New core photos ggi

    Comment by Tombc — December 30, 2015 @ 8:14 am

  2. EQT- from Shawn Kingsley

    https://twitter.com/Canuckoholic/status/680157290599612416

    Comment by murf — December 30, 2015 @ 9:45 am

  3. Nice, could that be a new hole?

    Comment by Martin — December 30, 2015 @ 10:32 am

  4. The first one on the left as to be 15 G/T gold more,

    Comment by Martin — December 30, 2015 @ 11:19 am

  5. Any geologist here that care to comment on the 4 new Grizzly core pics?

    Comment by Dan1 — December 30, 2015 @ 11:38 am

  6. Robin – Did you see the latest Presentation on GEM.V? They are in advanced talks with a Chinese company to build the processing plant at Elliot Lake. Hence why they changed the company name.

    Comment by 02charoc — December 30, 2015 @ 11:38 am

  7. Or Jon have you spoken to any of your geologist friends on the new drill core posted by GGI?

    Comment by Dan1 — December 30, 2015 @ 11:47 am

  8. Martin, I don’t think it is a new hole. I’m sure they would have told us if they had re-started drilling. My guess is a couple if not all photos are from hole 5.

    Comment by Tom UK — December 30, 2015 @ 12:09 pm

  9. Could someone post a link to those GGI core photos as I’m having trouble locating them.

    Comment by Les — December 30, 2015 @ 12:15 pm

  10. Les, on GGI website, drop down menu for ”photos”, Grizzly is at bottom, click on it and all photos appear.

    New photos are the 4 in top left corner

    Comment by Tom UK — December 30, 2015 @ 12:31 pm

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

    Comment by ConcernedCitizen — December 30, 2015 @ 12:57 pm

  12. everyone here needs to read this asap!!!!
    stockhouse.com/news/newswire/2015/12/23/the-state-smallcap-nation-an-end-year-rant

    it bores into the heart of the venture and the crapola surrounding it… while BMR may be above the games being played, there are many that are so not even close.
    beware the CEO … shoot on site!

    Comment by Jeremy — December 30, 2015 @ 12:59 pm

  13. Make sense Tom, than my guess is that they where suprise with the richness of this hole wich lead them to redefine their program. how do you describe all this in just one press release!

    Comment by Martin — December 30, 2015 @ 1:00 pm

  14. Another positive day for the venture. HOpe this “rally” continues once everyone gets back after the new year.

    Comment by Tony T — December 30, 2015 @ 1:47 pm

  15. Dave- thoughts on EQT? Certainly looks like speculation has increased…

    Comment by John — December 30, 2015 @ 2:24 pm

  16. Some say mining is dead…others say it only looks dead.

    http://moneywise411.com/junior-resource-stocks-look-dead/

    Comment by weatheritout — December 30, 2015 @ 3:02 pm

  17. I believe as well the last 4 core pics are from hole # 5. Question is what is GGI trying to convey to us? Is hole 5 transitioning into a different system – like a rich copper/gold porphyry system with other minerals as well such as silver,lead, zinc? I am not a geologist but just observing the core photos and comparing them to other pics from other systems. What ever they are into, GGI management are not the only ones eagerly waiting for the assays.

    Comment by Dan1 — December 30, 2015 @ 3:14 pm

  18. Jeremy – that was a great rant by Chris Parry. A lot of truth to it. Many years ago I went to PDAC and went out for many beverages after with some people who worked in the industry. People have a way of opening up after a few drinks. It was a real eye opener for me and I realized as Chris Parry suggested that the odds are heavily stacked against the average investor on the Venture. The only way you can hope to make money is by being very very disciplined, never chase the heavily promoted stock.

    Comment by Danny — December 30, 2015 @ 4:10 pm

  19. Thx Danny – sell sell sell… everyones a salesman – lessons learned.. a bit late I might add tho!:)

    Comment by Jeremy — December 31, 2015 @ 6:31 am

  20. Thought I’d do a quick round up of the GGI press releases since the start of drilling.

    Nov 3rd: 2 holes completed, assays being sent to lab immediately

    Nov 10th: 3rd hole finished probably 308m in length

    Nov 20th: 4th hole completed, camp winterized. Hole 4 from 139m contains similar rock formation to holes 1 and 3.

    Dec 10th. No details given of 5th hole but geologists deciding where to locate next set of holes.

    It will be 8 weeks since the first assays were sent to the labs, even allowing for Christmas and New Year break, I would expect the results back very soon in the new year. I would hope that this would then trigger further news flow from Mexico operations.

    I wonder how deep hole 5 went given the 20 day gap in the news releases compared to 10 and 7 day gaps previously.
    Hole 4 could be reported a week or so after the first 3 holes are released.

    Good luck to all longs of GGI in the new year.

    Comment by Tom UK — December 31, 2015 @ 6:52 am

  21. GGI – I suspect that assays will be back from lab within the first 2 weeks after the break based on how long it’s taken other companies to get assays back recently.

    Comment by George — December 31, 2015 @ 7:15 am

  22. Any recommendations for a good iPhone app to track cdn stocks. I find many of the apps won’t track certain stocks on the cdn side. Blo for example

    Comment by Matt — December 31, 2015 @ 7:21 am

  23. Sorry for delay John – Just got my new laptop and got online since the move. Learning this new laptop, ugh.

    EQT – I can only share what I heard yesterday, which was actually the 30th. Heard news on plan B coming and it was suppose to be halted, but here it is the 31st and no halt. One of my people said that he felt the stock ran up to the price of the news meaning its priced in at .09. Another said it’s going to go higher. I guess we will have to just wait and see what the news is and how stock re-acts.

    A happy New Year to everyone in case I get busy.

    Comment by dave — December 31, 2015 @ 8:24 am

  24. GGI – its having a great trading day down to 0.12

    Comment by George — December 31, 2015 @ 8:52 am

  25. Happy New Year all. FYI…that small scotiatrade on GGI this morning is mine….sorry, needed some cash in short order. Still holding GGI.
    Cheers
    Foz

    Comment by Foz1971 — December 31, 2015 @ 8:55 am

  26. Jeremy – I love that article by Chris Parry – Prime example why I trade and not invest to hold long term.

    Comment by dave — December 31, 2015 @ 9:00 am

  27. Charts of ggi doesn’t look so good.

    Comment by Martin — December 31, 2015 @ 9:13 am

  28. Martin – I mentioned a week ago that the GGI chart was trending down.

    Comment by dave — December 31, 2015 @ 9:23 am

  29. Yes i remenber that Dave,

    Comment by Martin — December 31, 2015 @ 9:27 am

  30. I remember too Dave. Luv ya You’re amazing.

    Comment by moemoney — December 31, 2015 @ 9:35 am

  31. pick up more this morning 10000 those where Foz1971

    Comment by Martin — December 31, 2015 @ 10:03 am

  32. Dave – no one cares about your chart analysis of GGI last week. We care about where it’s going after the assays. What good is your chart, not like we can trade GGI with the low volume. So either we are in and going to wait, or we aren’t in and will buy later.

    Comment by George — December 31, 2015 @ 11:40 am

  33. George, well said I agree as I really don’t pay too much attention to GGI charts, let the assays do the “talking”.

    Comment by Jeff — December 31, 2015 @ 1:25 pm

  34. For those who don’t understand TA charts mean nothing , for those that do , its not something cast in stone but a helpful indicator in what a stock is doing . Good luck to everyone in their trading decisions in 2016.

    Comment by Les — December 31, 2015 @ 1:38 pm

  35. Happy New Year everyone! I hope 2016 brings you prosperity, happiness and above all, peace. Too many are denied this last wish by the simple fact of where they were born. I’m making an assumption here that most of the bmr clientele are ‘western’ and by being born in either Canada, Germany, Australia or wherever ‘western’ we have effectively already won the geographic lottery. We have the freedom to do, say, and pursue the causes that we hold dear that in other countries are limited or outright outlawed by either politics, religion or both. We are truly blessed, not by any doing of our own but by those that have forged the path before us, yet not one of us living now was alive a hundred and twenty years ago. Yet the ideologies that separate us persist, dictate our freedom, our standard of living … but not our potential. We are all human, we care for our kids more than life itself, we hope, dream and love. These are the tenants that bind us despite our so called differences that chance has dealt us.

    Be thankful, humble, and charitable. Aspire to lift up our fellow man that pure chance has seperated us.

    That’s my New Years rant. :). Best wishes everyone!!!!!!

    Comment by Treb — December 31, 2015 @ 4:33 pm

  36. Treb
    Well said
    Happy New Year to you and yours!

    Comment by GREGH — December 31, 2015 @ 6:45 pm

  37. Great New Years “rant”!!!!!

    Comment by GregJ. — December 31, 2015 @ 10:32 pm

  38. #17-20-28
    Why are there no bids for a stock waiting for first results?Ask yourselves this.

    Comment by jim niles — January 1, 2016 @ 11:06 am

  39. What stock are u referring to, Jim?

    Comment by Jon - BMR — January 1, 2016 @ 11:11 am

  40. Jim- be careful…..negative comments against GGI aren’t tolerated well here….

    Comment by DDD4 — January 1, 2016 @ 12:11 pm

  41. Happy new year to all, Jon you seems quiet about GGI, financing ahead of result, chart look weak, lack of volume, these are thing to think off. I am long on this stock, but for now, everythink is about hole 3 and this 205,6m intersection of black pyrite magnetite. To do dd on this we have three pics plus Regoci word and release. Any tought ahead of results.

    All the best to you and your family!

    Martin

    Comment by Martin — January 1, 2016 @ 3:01 pm

  42. Jim, what are the sell orders like for whatever stock you are asking about?

    Comment by Tom UK — January 1, 2016 @ 3:10 pm

  43. You can make all the negative comments you like DDD4 , I just find it very contradictory on your part when DBV management basically has and does the same thing as GGI and you think it’s great…and not one negative word out of you….for some reason you have had a problem with GGI from the very beginning and everyone here has noticed and basically is tired of it… We don’t need you to protect us from dis appointment in GGI or any other stock we are all big boys ……

    Comment by Greg — January 1, 2016 @ 3:11 pm

  44. Jon, I was looking through the photographs on GGI Grizzly section of the website. Before they started drilling they identified 7 likely holes. They were spaced out over an area. However it looks to me that what actually happened is that they drilled the first hole (top one in photo) and instead of moving the drill to the 2nd intended location, they drilled from exactly the same location but in the opposite direction. Hole 3 was done as per the plan but holes 4 and 5 are big step outs and located well outside the original planned area.

    I’m trying to figure out why they undertook such a change to the original plan. My first conclusion is that the 1st hole hit good mineralisation and they wanted to see what lay in the opposite direction.

    Hole 3 was drilled parallel to hole 1 and it would appear from NR that it hit similar type of rock deposit. Due to the fact that they then did massive step out, I’m assuming that hole 3 also hit excellent mineralisation.

    After the first three holes were drilled they knew they were on to a winner and had nothing to lose but everything t gain from doing a couple of large step out holes. If they don’t hit, they still have their 1st target as a winner and if they do it, the SP will go higher than it would if they had 5 holes on the original target.

    Am I making sensible assumptions?

    Comment by Tom UK — January 1, 2016 @ 5:08 pm

  45. Greg- I have criticized DBV many times and Farshad is far from perfect! I have been a shareholder of GGI on a few occasions and probably held more shares at one point than many here. You say that DBV management basically has and is doing the same as GGI but this is very false…..Farshad doesn’t promote the story like GGI does. I’m very skeptical of GGI’s self promotion because what I heard is contradictory to what is being promoted and just passed it on….I have nothing to gain or lose with it. From past experience the more a company talks the more the market is disappointented.

    Comment by DDD4 — January 1, 2016 @ 5:14 pm

  46. GGI pros:

    -Photos show crustiform-colloform banded epithermal quartz veins, multiple generations of sulfides, hard rock gold
    -The hype died, weak chart, PP prior to assays and results taking so long resulted in people discounting the upcoming grades. No pump = good.
    -Track record speaks volumes; La Patilla, Rodadero, … like bloodhounds smelling the high grade stuff. They had years to study the Grizzly
    -Grizzly property is surrounded by porphyry deposits and the past producing high grade Golden Bear mine

    Cons:

    -Negative sentiment as explained above, depending on your vantage point could be a positive
    -Gold, copper are down from their highs
    -First ever drilling rarely hits the jackpot

    Comment by ConcernedCitizen — January 1, 2016 @ 6:09 pm

  47. DDD4 – So just what is contradictory to what is being promoted regarding GGI? If you say that here, then you should back up with facts. Regoci did an interview and basically said we like what the XRF analyzer is revealing. Other than that and a few pics we have to wait for the assays. Are you saying someone knows what the assays are?

    Comment by Dan1 — January 1, 2016 @ 6:35 pm

  48. Thanks for your post CC. As far as the cons go, there is nothing there that suggests that they have not hit something good. The SP and market cap have not built anything in for a new discovery, so IMO if they come out with anything that suggests they have found a deposit of any grade or size, the SP should react in a positive fashion.

    Comment by Tom UK — January 1, 2016 @ 6:39 pm

  49. Hole 4 was drill to test a bornite malachite showing freshly discovered and it was on trend with hole 1 and 3. Hole 5 was drilled as planned but the opposite way.

    Comment by Martin — January 1, 2016 @ 6:42 pm

  50. As far as black pyrite and magnetite core are concerned, gold is invisible to nacked eye, so nobody on site could tell how good they are.

    Comment by Martin — January 1, 2016 @ 8:22 pm

  51. Martin, the XFR analyser at the site would tell them what they had on their hands.

    Comment by Tom UK — January 2, 2016 @ 1:55 am

  52. ^^^ XRF analyser.

    Martin, are you sure hole 5 is located as per the original plan? I think they moved the drill over the mound to the adjacent ”valley”. Check out the 2 maps and look at the scale for distances:

    original plan:

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

    actual location:

    garibaldiresources.com/i/maps/Grizzly/Grizzly-Central-Magnetics.pdf

    Comment by Tom UK — January 2, 2016 @ 5:22 am

  53. Comment section disappeared again

    Comment by ConcernedCitizen — January 2, 2016 @ 6:17 am

  54. Most comments have vanished.

    Comment by Les — January 2, 2016 @ 8:41 am

  55. Note to readers: The intermittent problem we’ve been having with the comments section over the last 10 days or so has been fixed. We isolated the technical glitch that was occurring after 50 or more comments to a daily post, and it should not occur again. We appreciate our readers’ patience with this issue since late December.

    Comment by Jon - BMR — January 2, 2016 @ 9:14 am

  56. Dan1- I can’t as my post about it keeps getting deleted….sorry.

    Comment by DDD4 — January 2, 2016 @ 9:38 am

  57. The plans with this hole was to test the fault, by drilling the opposite way they could have a idea of what is underneath grizzly central central, surprise, they are into ephitermal material there as well, witch lead them to think grizzly central or the most part of this 25 sq km could host epithermal gold mineralisation. Regoci says somewhere that mineralisation extend further than they initially mapped. Low sulphidation epithermal are mostly flat lying, adjacent to pluton and on the continental side of it. Then you have wolverine to the south east to think of.i will not says here and now when i get into bullish thinking how many ounce of gold i think grizzly central could hold 🙂

    Comment by Martin — January 2, 2016 @ 9:57 am

  58. None of your posts has been deleted, DDD4, unless you’re referring to the morning glitch (now solved) that automatically deleted (now restored) all comments once the total exceeded 50.

    Comment by Jon - BMR — January 2, 2016 @ 9:59 am

  59. Jon- I know all the comments temporarily vanished and now they’re back but my reply to Dan1 isn’t there anymore…..

    Comment by DDD4 — January 2, 2016 @ 10:06 am

  60. The system is working fine, DDD4, and all comments submitted are online – importantly, there is also no record on our back-end of the comment you’re referring to. We would see it on our back-end but it’s not there anywhere, and nothing could have been deleted or could have vanished from there. So I would suggest simply re-sending the message you are referring to – the problem may have been technical on your side.

    Comment by Jon - BMR — January 2, 2016 @ 10:41 am

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