Gold has traded between $1,094 and $1,104 so far today…as of 10:00 am Pacific, bullion is down $3 an ounce at $1,098…Silver is off 4 pennies to $14.06…Copper is flat at $2.00…Crude Oil has rebounded more than $2 a barrel to $31.60 while the U.S. Dollar Index is up one-fifth of a point at 99.40…
The Mario Draghi stock market rally picked up steam after the ECB President said yesterday that fading growth and inflation prospects will force the bank to review its policy stance in March, a strong signal that more easing could be coming later this quarter…his comments lifted the dollar against the euro and prompted a rally in equity markets…that, in turn, has put some slight pressure on bullion…the Federal Reserve meets next week and will likely strike a dovish tone given a rough start to 2016 for equities, and fresh concerns regarding deflationary pressures and global economic weakness…
Gold is showing some positive technical signs but an increase in buy pressure is needed in order for the metal to stay above $1,100 and build from there…
Holdings in the world’s largest Gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose another 1.8 tonnes yesterday, data from the fund showed…that brought its inflow for the week to 4.2 tonnes…
Asian demand recently has not been as strong as it could be, however…premiums for Gold prices in China rose only slightly this week and sellers in India were offering discounts…
Oil Update
Oil is staging its strongest rally in 3 months but that bounce is not surprising given temporary very oversold conditions that emerged this week…a cold front sweeping the U.S. and Europe as well as firmer financial markets have given traders reason to cash in on record short positions…WTIC, which faces a big wall of technical resistance beginning at $35, is poised for its first weekly gain of the year…however, there has been no shift in the fundamental backdrop of supply that far exceeds demand and swelling inventories of Oil and Oil products…
Montreal Mayors Say NO To Energy East
As we wrote yesterday, the anti-Oil, anti-fossil fuel cancer has spread far and wide, and it’s killing jobs and hurting economic prosperity in this country…Prime Minister Trudeau did nothing in Davos this week to help eradicate that cancer – in fact, he contributed to its growth by trying to rebrand Canada away from resources in a keynote speech…that generated a sharp rebuke from liberal Calgary mayor Naheed Nenshi, but many more people in this country – especially those in positions of influence – must stand up to this negative narrative regarding Oil and resources in general and make their voices heard…Saskatchewan premier Brad Wall, supposedly a champion of Canadian common sense, has been strangely timid recently, or perhaps he’s just more interested at the moment in collecting some of the $20 billion in “infrastructure” spending Trudeau is about to toss around as the rookie Prime Minister’s #1 strategy to jump-start a deteriorating national economy (and saddle it with more debt)…
Montreal Mayor Denis Coderre – this former Liberal member of parliament is a piece of work – vowed yesterday to fight the Energy East Pipeline Project which would carry Crude Oil from the Alberta Oilsands to a refinery in New Brunswick…Coderre, who thought nothing about dumping massive amounts of raw sewage into the St. Lawrence River, said the Montreal Metropolitan Community, which represents 82 municipalities, decided unanimously to fight the project (the feds have the final say) because the economic benefits for Quebec would be small compared to the possible clean-up costs of a “spill”…
“At the end of the day, it’s all about our territory,” he said…
Again, the Calgary Mayor jumped into the fray yesterday: “This is a pipeline that already goes to Montreal,” Nenshi correctly pointed out. “This is a project to modernize it, to bring it up to even better standards.”
Nenshi said the alternative is to ship more Oil by rail, “and Quebec knows the dangers of Oil by rail, tragically,” referring to the 2013 Lac-Megantic rail disaster that killed 47 people…
Furthermore, of course, freighters are coming up the St. Lawrence and delivering Oil from Saudi Arabia and Venezuela…why would Coderre and other Quebecers prefer Oil from questionable foreign dictatorships, most of whom are breeding terrorists to try to kill us, over western Canada?…
Alberta Wildrose leader Brian Jean stated, “While Mr. Coderre dumps a billion liters of raw sewage directly into his waterways and benefits from billions in equalization payments, his opposition to the Energy East pipeline is nothing short of hypocritical.”
Brad Wall did chime in, ableit mildly, calling it a “sad day for our country.” He also tweeted, “I trust Montreal-area mayors will politely return their share of the $10 billion in equalization payments supported by the West.”
In today’s Morning Musings…
1. Goldman Sachs’ new warning regarding China…
2. Will Gold follow-through after some encouraging technical signs this week?…
3. Updates on WRR, GSV, PE, DJI and NEV…
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…
I can’t stand to go to Montreal on my way to Cuba that was poor about the huge salary for the guy to meet the immigrants you could have lured the Wal Mart greeter away for 15 an hour more corruption even taking Scott in that trade Montreal has gone down hill now back to penny stocks
Comment by Hugh — January 22, 2016 @ 11:33 am
Pipeline – Its Montreals way (learnt from the FN’s) is to say no first… and what are you going to give me to say yes?
Comment by Jeremy — January 22, 2016 @ 2:33 pm
Perhaps, perhaps not, Jeremy. The radicalization of Quebec against the oilsands, against a lot of things, has become alarming in recent years. Elizabeth May of the Green Party had Coderre at her side at a campaign event in Montreal in the recent election – that should tell you something. So I think it’s beyond just a negotiating ploy. Coderre doesn’t seem concerned either that he’s firing up east-west tensions. And where is Trudeau and his “sunny ways” in all of this?
Can you see what’s evolving in Canada again – just like the days when the other Trudeau was PM, it’s an eastern power grab, the “Laurentian elites” are running the country again, like they believe it’s their right to, and the West is getting screwed. Hence, the de-emphasizing of Canada’s resource industry (very much driven by the West) in Trudeau’s speech the other day. It’s very clear what the agenda is.
I predict this is going to help create a very aggressive, united new conservative movement in Alberta, and it’s not going to make life very fun for Trudeau. There are a lot of angry Albertans right now, angry as well at Notley’s NDP, who will rally big-time around a charismatic, fire-breathing new conservative leader (PC’s are finished, Wildrose needs to unite the right).
Comment by Jon - BMR — January 22, 2016 @ 2:52 pm
Jon, sometimes your rants are a little over the top, this is a “Montreal-Quebec” thing not necessarily an Eastern power grab. I don’t think Ontario is onside with this and certainly not the Maritimes, aren’t they in the East. Having said that I understand the frustration, Quebec has been receiving equalization payments for years, it’s more than annoying that they are trying to milk this for more money. Trudeau has a ton of challenges ahead of him and I don’t think he will make tough decisions. I see the debt being much higher than original forecasts. I am guessing in a couple years people will look back and think Harper wasn’t so bad after all. Anyway, enough about politics.
On a brighter note, GGI is looking much better. I am cautiously optimistic.
Comment by Danny — January 22, 2016 @ 3:26 pm
Thank you, Danny, I’ll take that as a compliment…however, I was referring to the eastern power grab more in the context of the current federal alignment. Ontario/Quebec have always dominated when the Liberals have been in power in Ottawa. Under the earlier Trudeau, of course, it was quite extreme and I was around during the NEP and when he literally gave the finger to a group of protesters in B.C. That sort of summed up his attitude toward the West. The NEP was a form of rape, a huge wealth transfer from west to east. The West really didn’t start to get its voice until the emergence of the Reform Party, followed by Harper’s election in 2006. That’s when a shift in power back toward the West really began, creating a more level playing field. The current Trudeau despises everything Harper stood for, and very much resembles his father – Big Government, eastern-focused, same world view. He’s just as dangerous, if not more so, than his father. That’s why Canada is in for some major problems – wait for a year and see.
I was willing to give young Justin the benefit of the doubt when he came into office, but from the budget (he’s already broken his promise on no more than a $10 billion deficit, and it won’t be balanced by Year 4 as promised) to terrorism issues, from his climate change fanaticism to his overturning of the First Nations Financial Transparency Act, from the reckless fashion in which he’s handled the Syrian refugee situation, to “talking down” the Canadian resource industry…3 months tells the story of where things are headed.
He’s already done a lot, Danny, and he is going to leave his mark – count on it…
Comment by Jon - BMR — January 22, 2016 @ 3:51 pm
Jon, totally agree about the NEP, the West got screwed no question. I don’t think Justin is the same as his father, not nearly as hard line. I don’t see him doing anything to screw the West, I just don’t see him doing much period. I am concerned about big government though as governments do a lousy job spending money.
Of course it was a compliment!
Comment by Danny — January 22, 2016 @ 4:02 pm
Jon… I understand that… but there is a hidden agenda somewhere… can you trust anything that comes from a community lead by someone who would willingly dump sewage into a river because they failed the test of management and then cross their arms and say NO .. not in my backyard?? agenda Somewhere….
Comment by Patricia — January 22, 2016 @ 4:12 pm
On another note.. I saw a great graph – and since we cant post graphics – imagine that this Venture bear market has been here for 1200 days+… has dropped the index 80% … which is the worst it has ever been in 25 years… in both depth and breadth…
the absolute worst it has ever been – worth repeating…
and I believe that this is the reason why BMR started their pay service… they see a recovery and a big boon to the juniors as long as we can get some volume … but I firmly believe that the pay service is a great launching point for the V…. no comment required Jon 🙂
Comment by Patricia — January 22, 2016 @ 4:16 pm
The one really encouraging, thing, Patricia, is how the Venture has outperformed a lot of markets in recent months. That’s a change of pattern that tells us there could be a nice turn in commodities at some point this year, or a huge run in Gold, who knows. So this is not a time to be giving up on the junior market – just the opposite. John’s chart this morning was also quite fascinating – note how buy pressure (CMF-20) has held up through this latest slide. Interesting.
Comment by Jon - BMR — January 22, 2016 @ 4:26 pm
True professionals prove their worth in Bear markets…anyone can make money in Bull markets. I thought I was a genius in 2003-2007 junior mining markets. Turns out a monkey could have picked them during that time and made money..which I did.
Comment by weatheritout — January 22, 2016 @ 4:30 pm
Jon, I have googled til I can google no more looking for pics of black mafic drill core that look similar to what GGI has hit. Nothing even close to it yet. It is definitely something unique to the district. Is it something unique to the world?
Comment by Dan1 — January 22, 2016 @ 4:37 pm
Dan1, Kaketsa is capable of anything. That’s what first drew my attention to the district in 2013. A large, fertile pluton like that, one that his risen up from deep below, can lead to many things around it. The oldtimers went after the easy stuff that they could see in the district — 10-30 m of glacial till and a dense forest hid everything at Grizzly Central.
Comment by Jon - BMR — January 22, 2016 @ 5:02 pm
WRR closing Friday at .065 was a pleasant surprise.I expected a pullback and a close around .055,but it closed above resistance.
What is your opinion on that for next week,Jon?
Comment by robinandthe7hoods — January 22, 2016 @ 5:07 pm
WRR pulled back a little at the open today, which wasn’t surprising, but firmed as the day progressed, showing new support at 6 cents. Has momentum going for it and a confirmed breakout, so it appears ready to head higher during next week. I imagine news is soon. Great volume which is what you like to see on a breakout. We’ll have an updated chart in our Sunday report. I’m convinced they’ll have some high-grade Gold intersections – would be hard to miss at Lapon Canyon on the first go-around. This one was definitely worth the wait and the frustration around the delayed start to drilling. Hope no one panicked during that recent 3-cent dump which was just an offside investor.
Comment by Jon - BMR — January 22, 2016 @ 5:17 pm
Thanks,Jon.
Comment by robinandthe7hoods — January 22, 2016 @ 5:30 pm
Jon, does BMR intend on allowing non-subscribers to continue to view comments for the foreseeable future?
Comment by Johnz — January 22, 2016 @ 6:36 pm
Another rookie mistake, my condolences to the families in the small town in Saskatchewan where four people died today, Trudeau released wrong information today from Davos Switzerland, before the rcmp did, Justin, it’s not up to you to blurt out information without facts, another blunder to add to his short resume, Justin keep your mouth shut, where ever you go. Gezz!
Comment by Tombc — January 22, 2016 @ 6:39 pm
Me to Dan1, best i could find is this article, http://goldminingandprospecting.blogspot.ca/2011/02/association-of-gold-and-magnetite.html.
Comment by Martin — January 22, 2016 @ 7:02 pm
No, Johnz.
Comment by Jon- BMR — January 22, 2016 @ 7:08 pm
On a lighter note, I’ve seen that a while back Martin, I remember bc’s very own tony beets, say several times where it’s black core and sand mixture, that’s where the gold is. Timing will be key with ggi and dbv, the whole valley will lite up big time.
Comment by Tombc — January 22, 2016 @ 7:38 pm
Personally,I think Trudeau’s quick response to the tragedy in Saskatchewan should be commended.So he made a mistake on the number.He might have been given that number before he commented.
Even Milos Raonic kept his comments after his Australian Open match today to the Tragedy.It shows Canadians the world over care.
This is not a negative,it’s a positive.As much as I thought Harper did a pretty good job in the middle of a recession,I am convinced he was happy to lose that election,because the econ0my was about to worsen even more,through no one’s fault in Canada.
Trudeau has been dealt a tough hand,and yes,his words so far haven’t added any jobs and makes it sound like they are against the importance of mining and oil in this country because of greenhouse gases etc,I think he needs some time to get down to actual business planning.He hasn’t had that yet,since he’s been elected,as he’s been going from one gathering to another overseas.
That will be over soon,we will see the condition of the markets,and will begin to get a true look at what the Liberals are planning.So,far Canada has survived for almost 500 years and we are still here.
Now,if in 6 months,he has blundered colossally like Wynne has,then he should be hung for treason.In the meantime,the condition of the markets are mostly not Canadian made.We are just 29 million people on the ride and have to find ways to adjust when commodities are all in a glut condition.
When a company like Walmart is closing almost 300 stores,and 100s of thousands of jobs have been lost in the oil industry because of a glut,this is about more than a PM in Canada.Jmo.
Comment by robinandthe7hoods — January 22, 2016 @ 10:56 pm
Of more importance,WRR is looking like a Murray Pezim special about to take off,and I like the fact it appears we don’t have an idiot CEO looking to keep everything under wraps and killing any momentum in his stock.He’s letting word leak it appears to me,based on this crazy volume and strong stock strength on a Friday close.
This is how you push your stock in any market,let alone a weak one like this.
Murray would be proud.Next week should be a great one to witness.
Comment by robinandthe7hoods — January 22, 2016 @ 11:01 pm
I am thinking about the term “Significant discovery” from a GGI/Regoci perpective. What does that mean exactly! From my DD, if i am saying Significant “black unit” discovery, wow, watch out! I have seen few lab assays reports on the net and the sample are mesures in ounce/t au, some ag lest that 6 g/t and base metal. Guess we are about to know now.
Comment by Martin — January 23, 2016 @ 6:39 am
We don’t know what kind of metals(s) we’re looking at here, Martin. The key will be the extent of mineralization in the “black unit” (does it run from top to bottom?), metal value per tonne, the potential for expansion/tonnage, and what this tells us about what may exist elsewhere on the property. If this is a 3rd deposit on the 3rd property drilled in the district, then this would be important not only for GGI, but the entire region. It’s not nothing…and it’s not copper-gold porphyry, though there are some aspects of the core (alteration features) that suggest a porphyry environment could be proximal to this. Dan1 wrote about the possibility of something quite unique. I’m leaning in that direction, given the look of the core and the very high chargeability and mag readings. The Hat and Star porphyry deposits occur in more subdued chargeability/mag settings. Without a doubt, it’s safe to say at this point that GGI has found a new deposit “type” and that means the district would be wide-open to almost anything – it’s not just a corridor of copper-gold porphyry. Something fresh may give the district a real lift.
GGI definitely thought outside the box here, which is how discoveries are made. I guess that comes with their experience in Mexico. Originally, I thought they were going to drill a different target as it appeared to have more of a Hat/Star code. They went after something that looked unusual. That was risky but may have paid off big-time.
Comment by Jon - BMR — January 23, 2016 @ 7:03 am
My guess is we will hear next week…probably…or the week after that…maybe the next week
Comment by weatheritout — January 23, 2016 @ 7:03 am
GGI- One pick look for Nickel or Cobalt !
Comment by Guy Delisle — January 23, 2016 @ 7:15 am
GGI – It’s something quite unique but I believe it’s gold that is the main mineral and high grade in my opinion, given the core descriptions. Possibly disseminated throughout the entire “Black Unit”. But there may another metal/s that may surprise the market. What is it?
Comment by Dan1 — January 23, 2016 @ 8:13 am
And I wouldn’t rule out Nickel or other PGM’s – what do you think Jon?
Comment by Dan1 — January 23, 2016 @ 8:24 am
Witch one Guy the 292 of hole 5?
Comment by Martin — January 23, 2016 @ 8:36 am
321gold.com/editorials/moriarty/moriarty081006/0764_ted_closeup.jpg
321gold.com/editorials/moriarty/moriarty081006/0764.jpg
This is the closest pic I could find that look similar to GGI’s. Not saying it is what GGI has but the cores look similar. It is nickel.
Comment by Dan1 — January 23, 2016 @ 8:43 am
I don’t know the answer to that one, Dan1. We know there’s a significant gold showing some km to the south, but there’s no visual evidence of Gold in the core photos provided. It would have to be very finely disseminated in the core, or carried in electrum (naked to the visible eye), and that’s impossible to speculate on. Whatever it is, it needs to kick in value and show growth/tonnage potential. Given the thickness of the black unit in hole 3, and the fact the unit was intersected 200 m south of the black unit at the bottom of hole 1, and hole 4 intersected this about 600 m to the west, early indications are this could have a lot of tonnage to it.
Comment by Jon - BMR — January 23, 2016 @ 8:48 am
Regoci led us to think in therm of gold from hole 3 with the Golden bear signature story,
Comment by Martin — January 23, 2016 @ 8:49 am
I believe he was referring in a broader sense to Grizzly Central and the 7 regional targets, Martin. Yes, they’re quite convinced a gold system is there somewhere, and the Golden Bear and the Spectrum deposit (Spectrum in Stuhini volcanics) on trend to the southeast strongly support that theory (I also believe part of the Hat has high-grade gold possibilities). The black unit is a mystery, albeit a fascinating one. What we do know is that it’s not Cu-Au porphyry. That in itself is very important as, whatever it is, it could go a long way toward redefining the district and opening up all sorts of possibilities. This district could literally be a massive jewelry box.
Comment by Jon - BMR — January 23, 2016 @ 8:51 am
I heard a while ago that they were hitting nickel…..probably also hitting other stuff along with it but I don’t know what else.
Comment by DDD4 — January 23, 2016 @ 9:06 am
Nickel has never been hit or sampled before in this district, DDD4, but anything is possible in this intriguing black unit. Gross metal value per tonne will be critical. The district needs to show some higher values.
Comment by Jon - BMR — January 23, 2016 @ 9:15 am
quote
“Re bacanora $BCN nr. U gotta love this jr mining sector! The would be director gets a USD20,000 per month consulting contract for his personal private co. And he rents the co his residence (home) for USD7,163 per month. http://finance.yahoo.com/news/bacanora-announces-consultancy-agreement-option-213000822.html #lithium”
unquote
Comment by Barry_R — January 23, 2016 @ 9:17 am
Yes, there’s a lot of that going on, unfortunately, Barry. In BCN’s case, at least they have something of value. What’s particularly irritating are these lifestyle companies with CEO’s who are using the treasury like their personal banking accounts. It’s an epidemic. You would think the crash in the Venture would have eradicated a lot of these companies but they have proven to be more resilient than expected.
Comment by Jon - BMR — January 23, 2016 @ 9:22 am
Jon- I know…just passing on what I heard a while ago. Could be a first though…..we will soon know. Whatever they come up with let’s hope it puts the Sheslay in the spot light.
Comment by DDD4 — January 23, 2016 @ 9:38 am
“The district needs to show some higher values.” Jon, you were absolutely right with this comment. There seems to be little doubt that GGI has hit mineralization but the grade will obviously be the key. Low grade deposits don’t excite anybody these days.
Comment by Danny — January 23, 2016 @ 9:42 am
Yes, Cu-Au porphyry isn’t working right now, Danny, that’s the bottom line. It will again later; right now, GGI would do the district and itself a favor if it can show something different, and with higher gross metal values per tonne. Looks like they will indeed show something different. And whatever it is, I like the odds of Kaketsa boiling up a delicious mix.
Comment by Jon - BMR — January 23, 2016 @ 9:56 am
Want to guess something Jon? 🙂
Comment by Martin — January 23, 2016 @ 10:13 am
Jon…you were eluding to ggi having a high grade gold kick in your emails sent out…hinting at a share price of $1.00 or more. It sounds like you are less and less convinced it’s gold….thoughts?
Comment by weatheritout — January 23, 2016 @ 10:24 am
Also…that pending interview…is it caboshed…or waiting till after results?
Comment by weatheritout — January 23, 2016 @ 10:27 am
Well, whatever like you said Jon, kaketsa boiled up, let’s just hope there’s lots of it.
Comment by Tombc — January 23, 2016 @ 10:49 am
Do you still think we can hit $1? Or possibly more?
Comment by Sameer — January 23, 2016 @ 10:51 am
Read all your posts Jon. Higher gross values per ton, you know exactly what it is! So give us some clues?
Comment by matt — January 23, 2016 @ 10:53 am
I’m more convinced than ever, weatheriout, that they’re onto a range of deposits that only Kaketsa could produce, from Gold to Cu-Au porphyry and other types…if that’s what the Grizzly has, then $70 million in market cap is on the very low side of where this could ultimately go…not even taking into account, of course, Mexico…the key as we’ve stated all along in the Sheslay district is that there needs to be a multiple number of deposits, and a high-grade starter area, for this to turn into a mining camp. The 2nd district discovery (deposit) by DBV was critical in terms of confirming the area’s potential, and the Hat should turn out to be very large. A third deposit on the third property drilled, in just 5 holes 1.2 km apart on a 300 sq. km property, what does that say? What does that tell you? It tells me this is a corridor hosting deposits like pearls on a string. And we know now that it’s not just Cu-Au porphyry. Those are very solid assumptions to make.
Comment by Jon - BMR — January 23, 2016 @ 11:00 am
What ever it is, the lab had to perform extra assay procedures on hole # 3. That in itself is very very interesting!
Comment by Dan1 — January 23, 2016 @ 12:15 pm
WRR! Wow! definetly worth the wait as it’s all cleaned up finally!
Comment by STEVEN1 — January 24, 2016 @ 8:12 am
Yes, Steven1, patience can have its rewards. “Cleaned up” is an accurate comment. It took a while to absorb that cheap PP from early last year, and of course they had some delays in getting to the drilling stage. But there has been no doubting the opportunity for success on the ground given what’s known about Lapon Canyon. They won’t shoot blanks, I’m sure of that. Poised to go higher after last week’s breakout on strong volume.
Comment by Jon - BMR — January 24, 2016 @ 9:04 am
thanks Jon…what about the warrants? i guess if there are about 7 Million? not sure but with the volume this week, they can be gulped up pretty quickly!?
Comment by STEVEN1 — January 24, 2016 @ 9:25 am
Jon, do you have any level of confidence in saying that GGI drilling, the black mafic unit in particular, is not simply an iron ore deposit? Versus serving as a host to other valuable minerals?
Had a nightmare about this last night LOL, must be because we are close to results!
Thanks
Comment by Foz1971 — January 24, 2016 @ 10:13 am
Rest well, Foz1971. Everything from graphite to an iron ore deposit (which would require exceptionally high levels of iron) has been ruled out by all the geologists we’ve spoken to, and for that matter Garibaldi itself. Alteration patterns, all the geochemical and geophysical evidence, the core descriptions and photos…all point in another direction.
Kaketsa is a very fertile pluton, shows some spectacular alteration and mineralogical features. After more than 2 years of intense study of this by a number of geologists, the general conclusion is that there’s likely a ring of porphyry systems immediately around it (on all sides – Grizzly West is the first example), and the strength and character of geochemical and geophysical signatures suggests the likelihood of additional deposits and deposit types extending outward (this would include Gold). Keep in mind there’s also another interesting dynamic going on in the south which isn’t fully understood yet and that’s the volcano straddling the GGI/Teck border. You have all the right features and geological processes, including very intense faulting, fracturing and fluid movement, to produce a series of deposits and different styles of mineralization. Think big, not just regarding the Grizzly but this entire district for its mineral wealth potential.
Comment by Jon - BMR — January 24, 2016 @ 12:22 pm
Updated website for Blo
#1 on the ihub breakout boards.
Now we just need some news!!!!
cannabixtechnologies.com/thc-breathalyzer.html
Comment by Matt — January 24, 2016 @ 1:43 pm
Thank you Jon. Sweet dreams it is.
Comment by Foz1971 — January 24, 2016 @ 3:25 pm