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7 @ 7:00 - BullMarketRun.com

November 27, 2018

7 @ 7:00

Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,219 and $1,229 so far todayas of 7:00 am Pacific, bullion is off $1 an ounce at $1,220…Silver has added 15 cents to $14.34…base metals have retreated slightly…Copper, Nickel and Zinc are at $2.81, $4.88 and $1.14, respectively, while Cobalt remains steady at $25.06…Crude Oil is 16 cents higher at $51.79…WTI is still vulnerable, however, to a dip below $50 to test key support in the mid-to-upper-$40’s…the U.S. Dollar Index is unchanged at 97.04…Chinese Gold imports through traditional conduit Hong Kong are significantly lower this year but the country is likely getting metal elsewhere, according to Commerzbank…the 439 tonnes of Chinese Gold imports from Hong Kong in the first 10 months of the year were 22% lower year-on-year…“That said, there is much to suggest that the trade routes have changed – i.e. China is increasingly importing Gold from other countries, such as Switzerland.  China imported 400 tonnes of Gold directly from Switzerland between January and October – 60% up on last year.  Thus the Hong Kong data paint a distorted and overly negative picture of Chinese Gold demand, in our opinion”…if only the same concern over 2,500 GM workers in Oshawa unfortunately losing their jobs were expressed regarding the many more thousands of Western Canadians whose livelihoods have been affected by the crisis in the Oil sector in this country (much of it inflicted by a climate change-obsessed federal government)…the CBC yesterday gave the Oshawa GM story full national-crisis treatment while nearly every significant political player commented within a couple of hours…Albertans rightfully feel screwed by Trudeau’s disastrous National Energy Program and abandoned by much of the country which can’t be positive for national unity…Calgary’s downtown office towers have been hollowed out…the vacancy rate in a once-booming sector is now 28%…the city’s towers have lost $12.6 billion in assessed value since 2015

2. Oil prices have steadied, at least temporarily, on expectations that Oil exporters will agree to cut a output at an OPEC meeting next week…“The Oil price correction has become a rout of historic proportions,” U.S. investment bank Jefferies said in a note today…“The negative price reaction is as severe as the 2008 financial crisis and the aftermath of the November 2015 OPEC meeting, when the group decided not to act in the face of a very over-supplied market,” the bank said…however, Jeffries‘ comments are somewhat alarmist as lower Oil prices are akin to significant personal tax cuts and will put more money in consumers’ pockets at a critical point in the economic cycle…as far as the U.S. Oil sector is concerned (Canada is a different story because of severe price differentials caused by a lack of pipeline capacity), it can remain strong at current or even lower prices as shale production is far less speculative, and much more efficient, than it was just a few years ago…even though the U.S. is pumping record amounts of Crude now, the Oil industry has become lean and mean based on a variety of key metrics…as of last month, there were 153,200 Oil and gas extraction jobs in the country, according to the Labor Department, which compares with 200,700 jobs 4 years earlier…

3. In typical Trumpian fashion, President Trump continues to play hardball with China…in an interview with The Wall Street Journal just days ahead of his high-stakes meeting with Chinese President Xi Jinping at the G-20 in Argentina,  Trump said he’ll forge ahead with raising tariffs on $200 billion in Chinese imports to 25% from the current 10% and repeated his threat to slap tariffs on all remaining imports from the country if necessary…“The only deal would be China has to open up their country to competition from the United States,” Trump stated…“As far as other countries are concerned, that’s up to them”

4. Online shoppers were scouring the web in search of sales on Cyber Monday, but GMP Securities marked the occasion by pointing investors to a different source of potential deals: the hurting stock market…the Toronto-based equity research firm and investment bank issued a shopping list of 13 stocks that have faced much heavier losses – greater than or equal to 30% – than the markets as a whole…at the top of the shopping list is Curaleaf Holdings (CURA, CSE), trading around $8 this morning…GMP is projecting the Massachusetts-based cannabis company will see its share price shoot up to $20 – a 150% increase…the stock, which began trading October 29 after a reverse takeover on the CSE, hit a high of $11.49 in early November…while another cannabis company, Moncton-based OrganiGram Holdings (OGI, TSX-V) also appears on GMP’s list, they’re more bullish on Curaleaf because it’s expanding operations in the United States…Curaleaf, according to GMP, now has 17 dispensaries in Florida and has seen 143% growth to its network in the state since the 2nd quarter of 2018, far surpassing the investment bank’s projections…this is significant, the report notes, because more than 25% of Curaleaf’s sales come from Florida…

5. Two strong turnaround stories in the mining sector we’ve been highlighting recently are New Gold (NGD, TSX) and Imperial Metals (III, TSX)…Imperial is up sharply on news this morning with the company announcing, among other things including a reorganized management structure, that it has received net payments totalling approximately $108 million (CDN) for damages arising out of the August 2014 failure of the permitter embankment at the Mount Polley mine…“The settlement provides liquidity for the company to allow its Special Committee additional time to complete the process of reviewing, identifying, negotiating and potentially implementing all strategic alternatives including the sale of the company’s assets, joint ventures, a recapitalization, and a sale or merger of the Company”

6. The Dow is off 176 points as of 7:00 am Pacific…Apple shares came under renewed pressure, a day after President Trump suggested the U.S. could place a 10% tariff on iPhones and laptops made in China…in Toronto, the TSX is 38 points lower…Bank of Nova Scotia reported an 8% rise in 4th quarter earnings this morning but that was slightly below analysts’ expectations…the Venture is down for the 11th session out of the last 14, a drop of 81 points or 12%…however, the Index is quickly approaching a strong support area from early 2016 as oversold conditions become extreme…

7.  Alberta’s energy rout is expected to be front and centre as the Big Six banks release their 4th quarter earnings over the next two weeks…falling Oil and gas prices and the unusually wide differential between U.S. and Canadian benchmarks is expected to create headwinds for Canada’s biggest lenders…CIBC may have the highest exposure to the sector, according to a new report by RBC analyst Darko Mihelic…analysts will not only be looking at each bank’s direct exposure to the sector, such as the likelihood that loans to Oil and gas producers could sour…they will also be studying how the possible contagion could spread to other areas of the economy, affecting everything from credit card loans to mortgages to consumer spending…although the price of U.S. benchmark Oil has recovered somewhat from 2016 lows, the Canadian energy sector continues to lag as a lack of pipeline capacity and refinery shutdowns in the United States are forcing Western Canadian producers to accept steep discounts for their Oil and gas products – the price Canadian politicians on the left want us to pay to help “save the planet”…

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16 Comments

  1. USD is on a tear…

    Comment by flyinthruu — November 27, 2018 @ 11:34 am

  2. I’m hearing lots of analysts saying the usd will lose steam soon, not a year, but months away from a steady decline, maybe sooner.Won’t be long before trump talks it down imo.

    Comment by Laddy — November 27, 2018 @ 5:36 pm

  3. Just out, more high-grade Gold at Gowganda West for IMR – 39.3, 16.5, 11.5 g/t Au from newly discovered outcrop consisting of Kirkland Lake style Timiskaming sediments and green carbonate mafic rocks…approx. 500 meters south of Tahoe’s (soon to be Pan American Silver’s) 4-million ounce Juby deposit…game changer for IMR given style of mineralization, rock types and alteration…maiden drilling starting shortly…

    Gary Grabowski, Ministry of Mines district geologist for Northern Ontario for 35 years: “Gowganda in general has been very under-explored and offers potential for Kirkland Lake-style mineralization and deposits.”

    New discovery east of Castle mine for CCW, combined with IMR at Gowganda West, is going to light this Gowganda area up big-time…

    IMETAL SAMPLES 39.3 G/T GOLD AT GOWGANDA WEST

    iMetal Resources Inc. has discovered a new area of highly mineralized outcrop (Zone 1 South) at its 100-per-cent-owned Gowganda West property, contiguous to Tahoe Resources’ Juby gold deposit and 15 kilometres west of Canada Cobalt’s Castle mine and property.

    Highlights:

    A total of 14 chip sample assays from Zone 1 South have returned values ranging from 39.3 g/t Au (sample #5901) to 0.60 g/t Au. Nine of the 14 samples exceeded 2 g/t and also included 16.5 g/t and 11.5 g/t;

    Zone 1 South, as defined to date, features a 50-meter wide package of rusty-weathered and silicified jasper pebble conglomerate and green carbonate-altered diabase, exposed over a length of 60 meters before disappearing under cover. The zone strikes north-south;

    Prospecting crews are currently mobilizing to the site to channel sample Zone 1 South which is open along strike and potentially may be structurally linked with Zone 1 approximately 200 meters to the north near the property boundary with Tahoe;

    Preparations continue for near-term maiden drilling at Gowganda West.

    Gary Grabowski, iMetal’s advisory board member who served as district geologist for Ontario’s Ministry of Northern Development and Mines for more than 35 years, commented: “This is another pleasant surprise for the Gowganda West Project and adds to iMetal’s growing list of drill targets. Gowganda in general has been very under-explored and offers potential for Kirkland Lake-style mineralization and deposits.”

    Zone 1 South Details

    Sample #5901 (39.3 g/t Au) was collected from a 10-meter high ridge in silicified and oxidized conglomerate with quartz stringers, red jasper clasts and finely disseminated pyrite and local concentrations of chalcopyrite. Five other samples, ranging in grade from 4.38 g/t to 0.60 g/t Au, came from this area. The remaining eight samples (16.5 g/t to 0.63 g/t Au) were collected immediately to the east, in lower lying outcrop, across two north-south trending, 1- meter wide quartz carbonate veins with finely disseminated pyrite. Overburden cover between the green carbonate altered mafic rocks and the conglomerate to the west will be mechanically stripped with an excavator to expose the bedrock.

    Zone 1 South is easily accessible, situated immediately adjacent to a logging road. Extensive clear-cutting at Gowganda West has helped to expose areas such as Zone 1 South as well as Zones 3A, 3B and 3C that occur several kilometers further south where chip samples returned values as high as 56 g/t Au and 2.6% Cu.

    Quality Assurance/Quality Control

    iMetal Resources employed a rigorous quality assurance/quality control program to ensure best practices in sampling surface rock-chip samples of approximately one kilogram in weight. Activation Laboratories Ltd. (Actlabs), ISO certified, carried out the sample analysis in its Timmins, Ontario, facility. Samples were prepared using Actlabs’ RX1 sample preparation which consists of crushing the entire sample to 80% and riffle splitting and pulverizing a 1 350-gram split to 95%. A 50-gram sub-sample of the pulverized sample was subjected to Actlabs’ 1A2-50 analysis (fire assay with AA finish) and any analysis over 3000 ppb was re-assayed using Actlabs’ 1A3-50 analysis (fire assay with gravimetric finish). Actlabs is independent of the company and has used internal quality assurance/quality control protocols.

    Qualified Person

    The technical content of this news release has been reviewed and approved by Mark Fedikow, Ph.D. P.Geo., a qualified person as defined under NI-43-101.

    We seek Safe Harbor.

    Comment by Jon - BMR — November 28, 2018 @ 5:09 am

  4. Hi Jon, has Imr considered that these outcroppings from zone 1 and zone 3 May connect underground? Does the outcroppings look anything like the Ccw outcroppings that are being drilled?

    Comment by Donald — November 28, 2018 @ 5:17 am

  5. Impressive samples Jon. Pretty exciting development…ccw with follow up news soon?

    Comment by flyinthruu — November 28, 2018 @ 5:22 am

  6. Grawbowski is also very familiar with Castle, flyinthru…I think he suspects something big is about to come down with regard to CCW’s drilling…I think that is what has been taking CCW time – they are into something on these drill holes to the east the likes of which they have never seen…

    Comment by Jon - BMR — November 28, 2018 @ 5:29 am

  7. Yes, Donald, no doubt they have considered that something connects at depth…at KL’s Macassa, where a new head frame just went up, they’re mining tremendous grades at 8,000 feet…

    Important new discovery in the making at
    Gowganda West where u have Kirkland Lake-style Timiskaming rocks and an emerging series of parallel zones across the property – outcrop that was all previously hidden by thin overburden and a lot of trees which are being knocked down like bowling pins…interesting idea, what if Juby is merely a lower grade halo around a much bigger high-grade system that begins at Gowganda West?…it’s the clear-cutting at Gowganda West combined with excellent prospecting that’s uncovering these fabulous outcrops…I expect IMR to drill a series of short holes very quickly – in December – to test for structure, alteration and continuity of high-grade mineralization to shallow depths initially…

    Comment by Jon - BMR — November 28, 2018 @ 5:52 am

  8. Jon..do you know if CCW is still drilling the new zone?
    If so they must have several holes done by now.

    Comment by bob — November 28, 2018 @ 6:01 am

  9. Their program continues, Bob…I expect we’ll hear from them literally any day now…

    Comment by Jon - BMR — November 28, 2018 @ 6:04 am

  10. IMR news is very exciting. If CCW comes out with a new discovery it will also light a fire under IMR as well, given both properties are in the general Gowganda area.

    Comment by Dan1 — November 28, 2018 @ 6:21 am

  11. Good for both companies to be drilling simultaneously and so close to each other…one does well, the other should benefit.

    Comment by flyinthruu — November 28, 2018 @ 6:40 am

  12. Hello Jon,
    Can you tell me where did you find the IMR news this morning…

    I’m looking around and cannot find the IMR news….even on their wed site ! Maybe that’s the reason why IMR seems relatively quite presently…

    Comment by Sylvain — November 28, 2018 @ 7:11 am

  13. Came over on Stockwatch around 5 am Pacific, Sylvain…

    Comment by Jon - BMR — November 28, 2018 @ 7:28 am

  14. Thank you Jon

    Comment by Sylvain — November 28, 2018 @ 7:55 am

  15. Sylvain – i agree the method in which imr has released its nr on Friday and today is quite under the radar. On bloomberg both days each nr doesnt show up in the default company news pages…you have to change settings in order to view

    Comment by Muskyhunter — November 28, 2018 @ 7:56 am

  16. Yes IMR news is not showing up on my IPhone app either. CCW had this issue earlier this year also. I phoned Ccw about it. The news wasn’t getting sent to the news wires properly I was told. IMR needs to rectify this ASAP. I bet a lot of people are missing IMR’s news. Jon maybe you can let IMR know??

    Comment by Dwight — November 28, 2018 @ 9:40 am

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