Gold has traded between $1,286 and $1,295 so far today…as of 11:00 am Pacific, bullion is off $6 an ounce at $1,288…any dips will be met with strong buying support due to technical momentum and geopolitical concerns…Silver is off 11 cents at $17.57…Copper is flat at $2.55…Nickel has slipped 2 pennies to $3.97…Crude Oil is getting hit hard, down more than $2 a barrel to $45.91 thanks to an unexpected rise in U.S. inventories…the Dollar Index is unchanged at 96.61…
An even weaker U.S. dollar during the 2nd half of the year could be one of the key triggers that confirms a bullish prediction by metals’ analyst Mike McGlone of Bloomberg Intelligence, based on unusually low volatility readings at the moment…
“With 60-day index volatility at 10% – the lowest since the 10-year bottom in 2014 at 9% – the stage could be set for the next breakout move in metals,” noted McGlone, Bloomberg Intelligence commodity analyst, in a report yesterday…
“A ho-hum May is pressuring volatility on the Bloomberg All Metals subindex to its lowest level in 3 years, just prior to the big dollar rally and metals collapse in 2014. Metals peaked as the dollar bottomed in 2011. They appear poised to continue to retrace that selloff, notably if the dollar has peaked.”
Yes, the greenback has peaked as we’ve shown in multiple charts though stubborn dollar bulls have not yet thrown in the towel – they will later this year in what is going to be one of 2017‘s Big Investment Themes…
Gold, stocks and bonds have all moved higher the last 3 months…using hedge fund quant tool Kensho, CNBC found 15 occasions during the last 20 years when stocks, bonds and Gold all advanced in a similar fashion over 3-month periods…during the next 3 months, the S&P 500 posted an average increase of 3%, moving into positive territory on 73% of the occasions, while Gold kept moving higher, too…bonds, however, declined, causing yields to back up slightly…
Seabridge Plunges Into Nevada “Snowstorm”
Interesting news from Seabridge Gold (SEA, TSX) this morning as the company has completed the acquisition of a 100% interest in the Snowstorm Project from PFR Gold Holdings LP (PFR)…Snowstorm consists of 31 sq. miles of landholdings strategically located at the projected intersection of 3 of the most important Gold trends in northern Nevada: Carlin trend, Getchell trend and Northern Nevada rift zone…
Seabridge completed the acquisition by purchasing all of the outstanding shares of the private company that owns a 100% interest in the Snowstorm Project in exchange for issuing PFR 700,000 Seabridge common shares ($~10 million) plus 500,000 common share purchase warrants exercisable for 4 years at $15.65 per share…in addition, Seabridge has agreed to pay PFR (i) a conditional cash payment of $2.5 million (U.S.) if exploration activities at Snowstorm result in defining a minimum of 5 million ounces of Gold resources compliant with National Instrument 43–101; and (ii) a further cash payment of $5 million (U.S.) on the delineation of an additional 5 million ounces of Gold resources…
Snowstorm consists of 700 mining claims and 5,800 acres of fee lands carefully assembled in a private company over a 15-year period and explored over the past decade…Seabridge has staked an additional 260 claims totalling 5,200 acres that are contiguous to the claims purchased from PFR…
Rudi Fronk, Seabridge Chairman and CEO, stated: “For some time now, we have been looking for a large-scale asset in Nevada which remains one of the world’s best environments for finding large Gold deposits. The Snowstorm acquisition accomplishes this objective. This project has all the earmarks of an outstanding exploration play and we appreciate the opportunity to capitalize on its exceptional potential.”
Confidence In U.S. Economy Continues To Improve
U.S. corporate executives’ confidence has hit a 3-year high according to a just-released survey…the latest Business Roundtable CEO Economic Outlook Index has hit its highest level since the 2nd quarter of 2014 as belief grows that the pro-growth policies of the Trump administration will yield long-term benefits…that came even though the executives see GDP growth of just 2% in 2017, down from the 2.2% pace in March. “The survey results reflect confidence from America’s leading employers in the prospects for tax reform, as well as the tangible economic benefits that tax reform will produce,” said Business Roundtable Chairman Jamie Dimon in a statement. “CEOs are also responding to the administration’s commitment to creating a more favorable regulatory environment, protecting the safety and health of our citizens while also protecting jobs,” added Dimon, CEO of JPMorgan Chase, the largest bank by assets in the U.S.
The discombobulated Clinton News Network, meanwhile, still very bitter over its stunning election loss last November, pays scant attention to the economy, the stock market, radical Islamic terrorism and agenda-driven illegal leaks within the government bureaucracy while it continues to focus on peddling a false narrative around Russia, the election and the Trump administration as if the average American worker in Ohio, Pennsylvania, Wisconsin or Florida really cares…it’s just simply bizarre how these new liberal McCarthyites are exploring every imaginable “tie” to Russia (except the Clintons’ ties, of course)…
Venture Seasonality Chart
At first glance, this may not appear to be a positive chart as the Venture going back nearly 20 years shows a negative return in every month from April through November with June being the worst of all – an average decline of 1.9%…gains have occurred in June only one-third of the time…
When broken down into bull market and bear market years, however, the June to September period features some spectacular gains…keep in mind, also, that the chance of positive returns during August, September and October doubles from May and June…
Cobalt (And Silver) Country – Northern Ontario
One of the most remarkable individuals in Cobalt, Ontario, is lifelong resident Gino Chitaroni, President of PolyMet Labs who’s truly the “Cobalt King” – he knows everything about the Greater Cobalt Camp and of course is also extremely knowledgeable about the metal itself…
He’ll be sharing his fascinating insights with BMR readers in the coming days as our coverage of this district continues…
Gino Chitaroni predicts a move in Cobalt to least the $40 level.
In today’s Morning Musings…
1. Two low market cap Gold juniors that must be on your radar screen!…
2. Jaxon Minerals (JAX, TSX-V) starts ground program at Hazelton Property…
3. The coming surge in the TSX Gold Index…
4. Daniel’s Den – Southwest Newfoundland update (3 stocks)…
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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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It’s been two weeks since GGI released the preliminary VTEM results. If the geological team has ruled out graphite because resistivity values are two high, given the property already host a deposit, we should be fairly confident the rocks that are sending back these em signals are not barren of nickel, copper, cobalt. But why isn’t there more interest at this time? The PP is probably one reason but sometimes a PP doesn’t hold back the volume. I have seen stocks go crazy on VTEM results but nothing when drilled. Given the history of E&L and the known mineralization I would expect the same; however not the case. Hopefully the detailed results change that and the market wakes up. Jon, have you talked to Regoci since the last NR? Didn’t he say there may be some surprises? Hopefully it’s a barn burner update related to the Q anomaly. We need something to spark the market and get everyone excited and dreaming again!!
Comment by Dan1 — June 7, 2017 @ 2:54 pm
High Volume Alert(s) ! …AWE +4000% …OCN +1400% …ATM +250% …KNT +250% …PRG +200%
Comment by Daniel — June 7, 2017 @ 3:09 pm
Daniel.. really appreciate the volume alerts. Thx.
Comment by GregJ. — June 7, 2017 @ 7:14 pm
Another interesting deal in northern Ontario (north of Kirkland Lake) is RJK Explorations (RJX.A, TSX-V)…should be more drill results soon (deeper holes) that have the potential to be a game-changer if they intersect high-grade structures, but limited downside with market cap of only $3.5 million, more deep drilling on an intriguing target underway, and $1 million cash coming from New Gold at end of month.
Comment by Jon - BMR — June 7, 2017 @ 7:40 pm
Dr. Graham Carman reports
TINKA DRILLS 48 METRES GRADING 11.3 % ZINC AT SOUTH AYAWILCA
Tinka Resources Ltd. has released results of five additional drill holes from its 100-per-cent-owned Ayawilca zinc project in central Peru. All five holes are from the South Ayawilca area. Hole A17-063 has returned one of the best intersections of zinc mineralization at Ayawilca to date, 47.7 metres grading 11.3% zinc, also with high indium credits. Hole A17-063 lies 200 metres northeast of the South Ayawilca discovery hole A17-056, which intersected two high grade zinc sulphide zones including 17.9 metres at 11.6 % zinc and 51.9 metres at 10.1% zinc (see Table 1). Drill results reported so far in 2017 have defined high grade zinc mineralization at South Ayawilca over a northeast-southwest strike length of 370 metres, connecting the South Ayawilca discovery area to the Central Ayawilca zinc resource.
Key Highlights
Hole A17-059:
0.8 metres at 37.5 % zinc, 0.5 % lead & 69 g/t silver from 50.3 metres depth (vein).
Hole A17-063 :
47.7 metres at 11.3 % zinc, 18 g/t silver & 313 g/t indium from 302.2 metres depth, including
9.8 metres at 17.4 % zinc, 28 g/t silver & 587 g/t indium from 303.3 metres depth; and
12.2 metres at 17.1 % zinc, 26 g/t silver & 495 g/t indium from 327.4 metres depth.
Hole A17-064:
0.5 metres at 15.6 % zinc, 11 g/t silver & 304 g/t indium from 269.9 metres depth; and
0.4 metres at 14.5 % zinc, 17 g/t silver & 39 g/t indium from 277.2 metres depth.
Hole A17-065:
19.3 metres at 4.7 % zinc, 7 g/t silver & 93 g/t indium from 219.5 metres depth, including
2.6 metres at 20.6 % zinc, 23 g/t silver & 529 g/t indium from 236.2 metres depth; and
26.6 metres at 3.6 % zinc, 4 g/t silver & 46 g/t indium from 266.4 metres depth; and
24.7 metres at 3.8% zinc, 5 g/t silver & 51 g/t indium from 307.3 metres depth.
Hole A17-066:
3.5 metres at 7.4 % zinc, 24 g/t silver & 111 g/t indium from 330.9 metres depth, and
5.0 metres at 11.3 % zinc & 37 g/t silver & 270 g/t indium from 345.0 metres depth;
Dr. Graham Carman, Tinkas President and CEO, stated: “These latest drill results continue to show strong zinc mineralization in our step-out drill program at South Ayawilca. There now appears to be continuity of the zinc mineralization between South & Central Ayawilca, which could add an additional 500 metres of mineralization along strike extension to our existing resources. Massive to semi-massive sulphides occur throughout the mineralized sequence. We are finding that the zinc mineralization is zoned around iron sulphides (mostly pyrrhotite with lesser pyrite) which may also host tin mineralization (note: tin assays are pending). We have also encountered an important northeast-trending fault, and can confirm that post-mineral movement has displaced mineralization laterally which opens additional exploration opportunities. ”
The Company has now released results from eleven drill holes of an estimated total of 30 holes planned for 2017. Seventeen holes have been completed. There are currently two rigs drilling at South and Central Ayawilca focussing on resource expansion and connection of these areas (see drill map, Figure 1). A third drill rig is currently testing the possible extensions of West Ayawilca. A fourth rig has started at Zone 3, a new area located 700 hundred metres northeast of the existing zinc resource area (see Figure 2).
Zinc mineralization is associated with gently dipping, massive to semi-massive, sulphide replacements of carbonate and clastic sediments. Minor veins are also noted. True thicknesses of the zinc intersections are estimated to be at least 85% of the downhole thickness, except where otherwise noted in Table 1. All significant results of the 2017 program are summarized in Table 1 with the strongest intercepts in bold text.
Comment by Jon - BMR — June 8, 2017 @ 5:40 am