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April 7, 2016

BMR Morning Market Musings…

Gold has traded between $1,225 and $1,244 so far today…as of 7:05 am Pacific, bullion is up $19 an ounce at $1,241…Silver has added 24 cents to $15.30…Copper is off a nickel at $2.12 due to global growth concerns…Crude Oil is down 33 cents at $37.42 while the U.S. Dollar Index is up slightly at 94.53

Holdings in SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, ended a recent slump and rose 0.51% to 819.60 tonnes yesterday…

Central banks slowed their Gold purchases in February, snapping up 25 tons of the yellow metal against a combined 41 ton purchase in January, according to data today from the World Gold Council…the purchases were also outweighed by monthly sales by certain banks, pushing collective Gold holdings of global central banks to decline by 16 tons on a net basis in February, the first decline since January 2015…seasonal factors may have been at play…most of the purchases in February were by China and Russia who added 10 and 11 tons of the precious metal to their holdings, respectively…

Bullard:  U.S. Should Rely Less On Monetary & Fiscal Stimulus

St. Louis Federal Reserve President James Bullard spoke some common sense yesterday in an economic address at the St. Louis Fed…he said the United States needs a long-term economic plan including tax and education reform to revive growth, not rely on more monetary or fiscal stimulus for a short-term boost.  “The U.S. needs a medium-term growth strategy that is less oriented towards stabilization policy, stimulus, and is more oriented to what kinds of things would improve the long-term and medium-term growth prospects,” Bullard said. “Tax reform is in that category. Education reform is in that category. Immigration reform is in that category. There are a host of things that would not have immediate impact…but if you look out 5 to 10 years would have handsome payoffs.” 

Oil Update

The U.S. Energy Department’s weekly Oil data release yesterday showed its estimate of domestic production edged down yet again last week, but continues to cling stubbornly above the 9 million barrel level…U.S. output fell to 9.008 million barrels a day last week, down from 9.022 million the week before, the department said…U.S. Oil production has now fallen about 7% from its peak last year, a decline of nearly 700,000 barrels a day, but still remains 62% above its level 5 years ago…

Oil Drilling

Meanwhile, WTIC got a strong boost yesterday when it was announced by the Energy Information Administration (EIA) that U.S. Crude supplies unexpectedly fell by 4.9 million barrels in the week ended April 1 (vs. estimates of a rise of more than 3 million barrels)…the prior week, Crude stockpiles stood at the highest level in more than 80 years…the inventory drawdown was due to a decline in imports and an increase in refinery activity, the EIA said…

Bad Call By Wall Street?

Wall Street is overwhelmingly anticipating that Hillary Clinton will be the next U.S. President, so it’s probably wise to take a contrarian approach and expect a different outcome in November…more than 70% of respondents to a recent Citigroup poll of institutional clients viewed the former Secretary of State, first lady and New York senator as the likely 45th President…just over 10% give Donald Trump the nod, while fellow Republican John Kasich is a few points behind…Republican Ted Cruz and Democrat Bernie Sanders barely register (the poll was taken before Cruz and Sanders scored big primary wins Tuesday in Wisconsin)…

In today’s Morning Musings…

1.  Lithium plays continue their torrid pace – new one for consideration this morning…

2.  Pure Energy (PE, TSX-V) mobilizes for fresh drilling at Clayton Valley South…

3.  The latest addition to the BMR Top 50 Opportunities List on new stirrings in a prolific high-grade area of NW British Columbia…

Plus more… to view the rest of today’s Morning Musings, login with your username and password, or click here to register and gain full access to this and other exclusive BMR content and features…

Comments (8)

8 Comments

  1. Anyone heard rumours about a potential deal being struck with Farshad and Chad Day/Tahltan this past weekend? I’m certainly taking this with a grain of salt based on the source, but someone on SH stated that a rumour is circulating…

    Comment by ChetBaker — April 7, 2016 @ 7:54 am

  2. DBV, its possible, since GGI may have already had talks with Chad in the past month supposedly. If Farshad can drop the suit (cause IMO its gonna be a waste of time,money and confrontational) and Chad can agree to drilling , maybe all could be good.

    Comment by david — April 7, 2016 @ 8:57 am

  3. Sweet finish for the venture, be nice to see above 600 to finish the week!!

    Comment by Laddy — April 7, 2016 @ 12:19 pm

  4. Very nice volume on PRG today, also bids increasing on VGN. ELT is my only dog on the venture right now. I am very tempted to buy EQT again, I like the people running the show just think there may be too much paper out there now.

    Comment by Danny — April 7, 2016 @ 1:48 pm

  5. Chet I never read stockhouse as over the years I have always found it full of nonsense. Personally I have not heard anything but one thing for sure, if Farshad does go forward with his court date to obtain the revised injunction and wins, it may carry some added weight in a civil lawsuit trying to recoup funds from the Tahltan. Things have been very quiet lately with DBV and I do think that there is a reason for this. If there have been talks I am pretty sure Farshad would not want to release any news or provide any info until he gets his agreement signed, sealed and delivered. With a Tahltan election in the upcoming future, no doubt Chad would love to have some positive news to assist his political cause. Either way it would be great to finally have Farshad stop spending time and energy on native issues and focus on the proving up this property once again.

    Comment by Jamie — April 7, 2016 @ 3:24 pm

  6. Agreed laddy. The venture busted out today!!

    Comment by tony t — April 7, 2016 @ 4:07 pm

  7. Very interesting news release today that shows all the property east of DBV’s HAT property has been scooped up.

    2016-04-08 09:13 ET – News Release

    Mr. Ryan Kalt reports

    ATHABASCA NUCLEAR CORPORATION ACQUIRES HAT AU-CU EAST PROPERTY

    Athabasca Nuclear Corp. has acquired the Hat East gold-copper property.

    The Hat Au-Cu East Property is located in the Sheslay region of British Columbia and was acquired through staking. The project is represented by mineral title 1043333 and is approximately 2,061 acres in size. An initial objective for the property is the identification of Au-Cu porphyry targets.

    A map of the Hat Au-Cu East Property may be viewed at:

    athabascanuclear.com/wp-content/uploads/2016/04/ASC-Hat-East-Au-Cu-Property.jpg

    The Hat Au-Cu East Property shares a contiguous property border with the Hat Project being advanced by Doubleview Capital Corp. and includes, among its other attributes, all of the mineral tenure previously comprising the Hackett North project formerly belonging to Alix Resource Corp.

    “The increase in domestic gold prices is resulting in an ongoing renaissance of gold exploration in Canada. Our acquisition of the Hat Au-Cu East Property is one that we believe offers an attractive opportunity to benefit from ongoing advancements in the Sheslay gold-copper district. As we develop our exploration plans for the Hat Au-Cu East Property we will look to conduct local stakeholder engagement.

    Athabasca Nuclear has enjoyed considerable success when acquiring contiguous ground to upcoming exploration districts – including at our flagship Preston uranium exploration project which shares a lengthy 30+km contiguous property border with Nexgen Energy Ltd.’s Arrow-hosting Rook-1 property. We continue to look for project opportunities that add value for our shareholders,” stated Ryan Kalt, CEO of Athabasca Nuclear.

    Qualified Statement

    The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Carl Schulze, B.Sc., P.Geo, a Director of Athabasca Nuclear and a Qualified Person.

    We seek Safe Harbor.

    Comment by Jamie — April 8, 2016 @ 5:34 am

  8. Re: ASC, boy this market is confusing. How does a company acquire a property when it has no cash, no assets and no income. How is it going to do anything with it?

    Comment by DavidW — April 8, 2016 @ 6:26 am

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