Gold has traded within a narrow range between $1,278 and $1,284 so far today…as of 11:00 am Pacific, bullion is up $2 an ounce at $1,280 as technical momentum and geopolitical concerns are keeping bids firm…Silver is up slightly at $17.55…Copper is flat at $2.55…Nickel has retreated 2 pennies to $4.00…Crude Oil is 30 cents lower at $47.35 a barrel while the U.S. Dollar Index is relatively unchanged at 96.77…
In the wake of yet another terrorist attack in her country, one that also killed a Canadian, British Prime Minister Theresa May validated President Trump’s deep concerns regarding radical Islamist terrorism when she claimed over the weekend that there’s “too much tolerance” of Islamist extremism in the UK…with just days before British voters go to the polls, May has vowed a clampdown on radical Islam: “We cannot and must not pretend that things can continue as they are. Enough is enough,” she declared…
Momentum is building in the Gold market as hedge funds and money managers continue to add to their bullish positioning, driving the price closer to the key technical and psychological $1,300 level…net longs increased for the 2nd consecutive week, but what’s even more significant is that Gold positioning is still hovering around its 5-year average…that means there’s plenty of upside over the summer and through the balance of 2017…meanwhile, there’s been a “Death Cross” in the U.S. Dollar Index with the plunging 50-day moving average (SMA) falling below the 200-day…within a month or two at the latest, the 200-day should reverse to the downside and that will usher in a wave of new selling in the greenback and fresh 2017 lows…
Sean Roosen’s Osisko Gold Royalties (OSK, TSX) continues its buying rampage – OSK has entered into a definitive agreement with Orion Mine Finance Group to acquire a high-quality precious metals portfolio of assets consisting of 74 royalties, streams and precious metal offtakes for total consideration of $1.12 million, creating a growth-oriented, world-class and Gold-focused royalty and streaming company…the combination of Osisko and Orion’s portfolios will result in the company holding a total of 131 royalties and streams, including 16 revenue-generating assets…the company’s cornerstone asset remains the 5% net smelter return royalty on the world-class and long-life Canadian Malartic Gold mine (Canada’s largest producing Gold mine) and its 2% to 3.5% NSR royalty on the world-class Eleonore Gold mine…through the transaction, the company gains a 9.6% diamond stream on the Renard diamond mine and a 4% Gold and Silver stream on the Brucejack mine in the Eskay Heart of Gold Camp, in addition to a 100% Silver stream on the substantial Mantos Blancos Copper mine in Chile…
Given his familiarity with Quebec and the Cadillac Trend, we’re wondering when Roosen might turn his attention to Granada Gold (GGM, TSX-V) and its multi-million ounce Granada deposit which is permitted for open-pit production in the LONG Bars Zone and is showing exceptional high-grade promise at depth to the north (1.5 million Inferred ounces comprising 10.4 million tonnes averaging 4.6 g/t Au at a cut-off grade of 1.5 g/t Au)…
Gold in Canadian Dollars Above $1,725
Gold in Canadian dollars remains in a powerful new uptrend that started late last year after a 17% correction…over the last several years, the metal in loonie terms has gradually recorded higher highs within an ongoing bull market and the next obvious target is measured Fib. resistance at $1,880, about $150 or nearly 9% above current levels and within shouting distance of an all-time high…
Keep this raging Gold bull market in Canadian dollars in mind as you scan the landscape of Canadian-based Gold juniors and producers…
Cobalt (And Silver) Country – Northern Ontario
It’s truly amazing that the Klondike Gold Rush has been so thoroughly embedded in Canada’s historical conscious yet the Cobalt Silver Boom of the 1900’s – in many ways so much bigger than the Klondike Gold Rush – is largely unknown…
By all accounts, the Greater Cobalt area between 1903 and 1966 officially produced at least half a billion ounces of Silver (that’s just what was documented, local experts we’ve spoken to believe the unofficial figure is closer to 750 million ounces), making it one of the world’s Top 3 Silver producing regions during that time…this prolific district was the birthplace of Canadian hard rock mining…
The impact of the Cobalt region’s amazing Silver discoveries – over 100 mines were in operation at one point – was profound and widespread…
Understanding the basics of the dramatic history of the Cobalt Camp is critical because that provides answers for what’s happening today and how the future may unfold, creating enormous wealth-building opportunities for investors…ironically, the metal for which the town of Cobalt was named wasn’t the metal that drove the incredible build-up of wealth during the first half of the 1900’s but it is the reason for the district’s current revival…there were issues in the 1900’s with recovering both the Cobalt and Silver from the ores of this region, so miners and prospectors made what was an easy decision to focus on the exceptionally high-grade Silver…this meant that much Cobalt was left behind, and in grades that are generally among the very best in the world (within narrow veins that can pinch and swell for hundreds of feet)…
Today, of course, technological advances have created hot new demand for Cobalt, and global supply is rather tenuous…the bottom line is that the world needs more Cobalt, and many believe that the best place to find it and mine it is in northern Ontario given the region’s advantages in terms of grades, potential supply, infrastructure and historic activity…investors who grasp what’s happening could make fortunes as the Cobalt Rush intensifies over the next year…
Castle Silver Resources (CSR, TSX-V) – The Cobalt Kings?
Here’s another irony – the company that doesn’t even have Cobalt in its name is actually the most advanced in terms of potential Cobalt mining and recovery in northern Ontario…
Castle Silver Resources (CSR, TSX-V) is the first Cobalt player with underground access in this district, and it also has its own proprietary recovery process that could revolutionize the region…
CSR quietly but effectively developed its Cobalt and Silver assets in this Camp well ahead of when it began trading publicly in 2015, and before many others were even thinking about this district…significantly, CSR has 100% ownership of Re-2OX, a proprietary hydrometallurgical process, developed in conjunction with the National Research Council, that will convert material sourced from the Castle mine into high purity, client-specific Cobalt powders for near-term battery sector end user evaluation…
BMR has made it underground into CSR’s Castle main adit, the first of the mine’s 11 levels, where mineralized material is now being extracted…we’ll have several video excerpts in the days ahead – click on the arrow to view today’s 1-minute piece…
In today’s Morning Musings…
1. A junior with a high-grade Gold deposit cut-off grade of 25 g/t Au!…
2. Two Gold producers attractively priced and ready for a strong summer…
3. A stunning 2nd half of 2017 for Silver?…
4. Daniel’s Den – Precipitate Gold (PRG, TSX-V) news, plus the “Foxconn Insider” with “secrets” about Apple…
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Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
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Cobalt – you’re right the world needs more cobalt (and lithium). Recently read that India plans to make every single car electric by 2030 in bid to tackle pollution…Imagine! Also receiving praise from Elon Musk (planning to set up shop there – rumoured)…
Comment by Foz1971 — June 5, 2017 @ 11:48 am
High volume alert(s)! CEM up 300%… ORG up 500%
Comment by Daniel — June 5, 2017 @ 2:10 pm
Jon,
Do you expect this week any news on CSR or GGM? Thank you in advance.
Cheers from Holland…
Comment by Arjan — June 5, 2017 @ 2:12 pm
Thx Daniel … volume always leads:)
Comment by Jeremy — June 5, 2017 @ 4:56 pm
Daniel,
Are you expecting Benton Resources to announce a drill program by Nordmin this month?
Thanks,
Comment by Charles — June 5, 2017 @ 5:35 pm
Charles, that’s a great question. I will give Stephen Stares / Benton a ring tomorrow and get an answer for you. Surely he will have some plans to share regarding Nordmin, Bedivere, and perhaps some of their own on 100% owned ground along the Cape Ray fault.
Comment by Daniel — June 5, 2017 @ 8:13 pm
thanks Daniel, I appreciate that!
Comment by Charles — June 5, 2017 @ 10:26 pm
Iamgold Corp. has entered into an investment agreement with Sumitomo Metal Mining Co. Ltd., based in Tokyo, Japan, which is a mining company and a global leader in the development and mining of non-ferrous metals, and a wholly owned subsidiary of Sumitomo, whereby Iamgold will form a joint venture with Sumitomo. All monetary amounts are expressed in U.S. dollars, unless otherwise indicated. Sumitomo will pay an aggregate $195 million to IAMGOLD for a 30% undivided participating interest in IAMGOLD’s ownership interest in the Cote Gold Project in Ontario.IAMGOLD ANNOUNCES STRATEGIC AGREEMENT WITH SUMITOMO METAL MINING FOR THE DEVELOPMENT OF COTE GOLD
Under the terms of the Investment Agreement, on closing, Sumitomo will acquire a 30% undivided participating joint venture interest in IAMGOLD’s ownership interest in the Cote Gold Project for an aggregate $195 million, of which $100 million is payable upon closing. The remaining $95 million is payable on the earlier of: (i)18 months following closing, or (ii) the date of public filing of a feasibility study with respect to the Cote Gold Project. Closing of the transaction is expected to occur before the end of the month.
IAMGOLD will be the operator of the Cote Gold Project during development and once in operation. Each party will be responsible for funding its proportionate share of expenditures, including initial and sustaining capital expenditures for the Cote Gold Project.
“This transaction is significant for IAMGOLD as it validates the intrinsic value of the Cote Gold Project. It will enable us to move the Project into development and to significantly diversify our production profile as a result of future production from our Canadian operations,” said IAMGOLD’s President and CEO Steve Letwin. “After extensive due diligence by both parties, what solidified the relationship was the mutual trust and respect and the alignment around strategic priorities. In addition to providing us with the financial capacity to develop the Cote Gold Project, we are gaining a partner with business development and technical expertise who we can work with in the future to explore new possibilities.”
IAMGOLD began discussions concerning a potential strategic partnership with Sumitomo in August 2016. Since then, there has been extensive interaction between the two companies, with multiple site visits to Cote Gold involving Sumitomo’s senior management and technical teams. During the due diligence period, IAMGOLD visited the Hishikari Gold Mine in Isa, Kagoshima, and Steve Letwin and Don Charter, Chairman of IAMGOLD, spent time with Sumitomo’s President, Yoshiaki Nakazato, in Tokyo.
Sumitomo’s in-depth expertise in building and operating mines will complement IAMGOLD’s proven track record as a successful mine builder and operator. Additionally, IAMGOLD will benefit from Sumitomo’s access to Japanese suppliers to the mining industry, which will complement, where needed, existing supplier networks within Ontario. Both companies have strong business development capabilities and reach and a common interest in seeking opportunities beyond Cote Gold, which will support IAMGOLD’s objective to grow its production pipeline.
On Closing of the transaction, IAMGOLD and Sumitomo will form an unincorporated joint venture with respect to the Cote Gold Project, and will enter into a definitive joint venture agreement. Immediately following Closing, IAMGOLD will own 70% and Sumitomo 30% of the total outstanding participating interests under the joint venture agreement.
IAMGOLD and Sumitomo will have oversight of Cote Gold Project activities through an Oversight Committee, which will comprise six representatives consisting of four from IAMGOLD and two from Sumitomo, with decision making based on the proportionate participating interest. We remain committed to advancing Cote in coordination with the federal and provincial government, northern municipalities and local communities, and in particular with our indigenous community partners on whose traditional territory the project will be built and operated.
The Investment Agreement pursuant to which Sumitomo will make the initial investment contains terms, conditions, representations, warranties, and indemnities customary for transactions of this nature. Closing of the transaction is subject to customary closing conditions, but is not subject to any financing condition or regulatory approvals.
In connection with this transaction, RCI Capital Group acted as financial advisor and originator of the buy side on behalf of IAMGOLD, and Fasken Martineau acted as legal counsel to IAMGOLD, and DLA Piper (Canada) acted as legal counsel to Sumitomo.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational expertise.
CONFERENCE CALL
A conference call will be held on Tuesday, June 6, 2017 at 8:30 a.m. (Eastern Daylight Time) for a discussion with management regarding the IAMGOLD-Sumitomo transaction and highlights from the Cote Gold prefeasibility study. A webcast of the conference call will also be available through IAMGOLD`s website – http://www.iamgold.com.
Conference Call Information: North America Toll-Free: 1-800-319-4610 or 1-604-638-5340.
A replay of this conference call will be accessible for one month following the call by dialing: North America toll-free: 1-800-319-6413 or 1-604-638-9010, passcode: 1490#.
Comment by Jon - BMR — June 6, 2017 @ 4:44 am
CSR ACCELERATES BATTERY SECTOR STRATEGY AS UNDERGROUND BULK SAMPLING BEGINS AT CASTLE MINE
Castle Silver Resources Inc. has started underground extraction at its 100-per-cent-owned Castle silver-cobalt mine near Gowganda, Ont., as crews have removed a large sample from a quartz-carbonate vein structure containing visible cobalt on the first level of the mine.
Some of the mineralized material is being submitted for immediate assaying while the remainder will be put through the company’s proprietary Re-2OX hydrometallurgical process to produce high purity cobalt powders for battery sector end buyer evaluation. A series of bulk samples will be completed over the next several weeks in conjunction with the start of Phase 1 underground drilling.
Meanwhile, CSR is also using the highly adaptable Re-2OX process for testing recovery of cobalt and lithium from lithium-ion batteries as the Company vigorously pursues exciting opportunities in recycling technology.
A promising first stage of Re-2OX test work on a mixed sample of consumer electronic lithium-ion batteries has been completed by SGS Lakefield and CSR eagerly anticipates reporting results shortly. Re-2OX achieves recovery through stripping the casing, leaching the cathode of the batteries, and forming a high purity precipitate containing the valuable metals.
Qualified Person
Claude Duplessis, P.Eng., of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing on the exploration and development of past producing silver and cobalt mines in northern Ontario including the Castle Silver-Cobalt Project near Gowganda and the Beaver and Violet mines near Cobalt. Additional information on the Company’s properties and strategies related to the battery sector are available by visiting its website at http://www.CastleSilverResources.com.
Comment by Jon - BMR — June 6, 2017 @ 5:37 am