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7 @ 7:00 - BullMarketRun.com

June 6, 2019

7 @ 7:00

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1. Gold, which has jumped about $60 in the past week, has traded as high as $1,339 so far todayas of 7:00 am Pacific, bullion is up $6 an ounce at $1,336Gold’s strength is based largely on the prompt change in the market outlook regarding Fed interest rate strategy…having suspended a 3-year monetary tightening campaign earlier this year, the Fed is now widely expected to cut rates, especially after comments from Chairman Jerome Powell that the central bank will closely monitor the economic impact of trade conflicts…President Trump told reporters this morning that tariffs on China could be raised by another $300 billion if necessary…“Our talks with China, a lot of interesting things are happening.  We’ll see what happens…I could go up another at least $300 billion and I’ll do that at the right time.  But I think China wants to make a deal and I think Mexico wants to make a deal badly,” he said at the Irish airport of Shannon on his way to France for a D-Day commemoration…the CME FedWatch Tool shows that markets are pricing in a more than 75% chance of a rate cut as early as July…for the year, markets see the possibility of 3 rate cuts, a radical change in expectations from just a few months ago…Silver has jumped 12 cents to $14.90…Copper is up a penny at $2.63…Nickel is steady at $5.31 while Zinc is a penny higher at $1.20…Crude Oil is relatively unchanged at $51.70 after nearly touching a 5-month low yesterday…the U.S. Dollar Index remains under pressure, down more than one-tenth of a point at 97.17

2. Royal Nickel (RNX, TSX) or “RNC Minerals” is sizzling in early trading, up 9.5 cents at 51 cents, after confirming another high-grade Gold discovery at its Beta Hunt mine where the company has encountered coarse Gold in quartz veins on the level beneath the Father’s Day vein discovery, timely news as the Gold price nears $1,350…an estimated 987 ounces of coarse Gold have been recovered in 238 kilograms of rock from a series of veins…the accuracy of this estimate at this stage is considered to be plus 10%/minus 25%, according to the company, based on the measurement of the estimated Gold content for each of the samples by specific gravity determinations…RNC will provide a final estimate of ounces recovered once this material has been processed…“We are thrilled to have encountered high-grade coarse Gold in the area below the Father’s Day vein,” stated President and CEO Mark Selby.   “This most recent discovery provides further support for our geological model that predicts that the areas where the mineralized shear zone and sedimentary sulphides intersect are capable of generating Father’s Day-vein-style coarse Gold mineralization, and proves that such areas extend at least 25 m below the Father’s Day vein discovery.  We look forward to continued mining in this highly prospective area, with the potential to find other veins containing coarse Gold”

3. In the Eskay Camp, Pretium Resources’ (PVG, TSX) 2019 deep underground exploration drilling program has confirmed expectations for Brucejack-style mineralization and proximity to porphyry-style mineralization at depth and to the east of the Brucejack mine, with 5.6 g/t Au intersected over a core length of 107.5 m (including 185.5 g/t over 1.5 m)…Pretium, trading at a 10-month high, now has a new vector into high-grade mineralization that could easily lead into even better numbers…2 deep holes totalling more than 3,500 m were drilled toward the southeast and northeast under the Flow Dome zone, an area approximately 1 km east of the Brucejack mine where drilling in 2015 intersected Valley of the Kings-style high-grade Gold…holes VU-1785 and VU-1787, both of which encountered Brucejack-style, Gold-Silver-bearing quartz carbonate stockwork, were drilled from the eastern edge of the 1,110-m level in the Valley of the Kings underground development…of particular note, hole VU-1787 intersected a zone of mineralized stockwork, including visible Gold, extending over 107 m (between 198 m and 305 m downhole) approximately 240 m to the east and below the eastern limit of the existing Valley of the Kings mineral resource…the potential to find substantial new resources in the Valley of the Kings makes profitable Pretium an even more attractive takeover candidate…the Brucejack mine features 6.4 million ounces of Gold in Proven and Probable reserves (16 million tonnes grading 12.6 g/t Au) with average annual production estimated at 525,000 ounces of Gold over the first decade…PVG is up 3 cents at $12.20 as of 7:00 am Pacific

4. The Dow is off 3 points through the first 30 minutes of trading after rallying more than 700 points the last 2 days on expectations of Fed interest rate cuts…in Toronto, the TSX is 3 points higher while the Venture is down 1 point at 596…cannabis stocks are trying to find their footing…the Canadian Marijuana Index has retreated another 4 points at 526Nighthawk Gold (NHK, TSX), closing in on a new 52-week high, has wrapped up its bought deal financing, raising gross proceeds of $12.6 million…this will allow the company to increase its current drill program to 35,000 m at its promising Colomac Project in the Northwest Territories…last week the company reported 35 m true width grading 13.5 g/t Au, its best result yet…Tudor Gold (TUD, TSX-V) has bumped up its flow-through and non-flow-through financing by $300,000 to $2.3 million – another example of Eskay Camp/Golden Triangle juniors who are having no trouble attracting capital…Benchmark Metals (BNCH, TSX-V) has hit its highest levels in more than 2 years as the company gears up for a major drill program at its Lawyers Project, a past producer, 45 km northwest of the Kemess Copper-Gold mine in north-central British Columbia…Benchmark believes its program has the potential to significantly increase the existing Gold-Silver resource to a new resource target of greater than 5 million Gold equivalent ounces (Gold and Silver) while remaining remain open in width, at depth and along strike for further expansion with future drilling programs…there appears to be no shortage of high-grade targets…

5. Chinese Rare Earth prices are set to climb further beyond multi-year highs hit following a flurry of state media reports that Beijing could weaponize its supply-dominance of the prized minerals in its trade battle with Washington…Rare Earths, a group of 17 elements that appear in low concentrations in the ground, are used in a wide-range of products stretching from lasers and military equipment to magnets found in consumer electronics…China supplied 80% of the Rare Earths imported by the United States from 2014 to 2017, with Chinese state newspapers last month reporting Beijing could use that as leverage in the ongoing trade dispute between the two…“(Magnet-related rare earths) are the ideal materials to weaponise…because they are so critical to high-demand, highly-competitive, price-sensitive industries,” stated Ryan Castilloux, managing director of Adamas Intelligence, a consultancy that tracks rare earths markets….“(Such rare earths) are collectively responsible for over 90% of the demand market’s value each year…(so they) will yield the most juice for the squeeze”…prices of dysprosium metal, used in magnets, high-powered lamps and nuclear control rods, are currently assessed by Asian Metal at their highest since June 2015 at 2,025 yuan ($292.98 U.S.) per kg…that is up nearly 14% from May 20, the day Chinese President Xi Jinping visited a Rare Earth plant, sparking speculation the materials could be the next front in the Sino-U.S. trade dispute…the price of neodymium metal, critical to the production of some magnets used in motors and turbines, has risen to its highest since last July at $63.25 a kg, up about 30% since May 20, according to Asian Metal

6. More potential problems for Canadian CrudeEnbridge (ENB, TSX; NYSE) has been warned by the State of Michigan to set a date for shutting down a major Crude Oil pipeline, or face legal action…Michigan Governor Gretchen Whitmer, another far left Democrat, says she will work with Enbridge to “identify a firm date for shutdown” of the dual pipeline section that passes underwater across the Straits of Mackinac, and agree on “a reasonable path forward” for the possible construction of a tunnel and replacement pipeline…Enbridge has proposed a new, underground pipeline to be built by 2024, but Michigan officials warn the project is vulnerable to delays…Whitmer’s letter suggests the state wants Enbridge to close the Line 5 pipeline well before 2024, but it did not include a particular closing date…the Line 5 is a key conduit for Western Canadian Oil producers as well as refiners in southern Ontario…at 540,000 barrels a day, it ships more than half of the Crude Oil that arrives in the Sarnia region, site of 3 refineries and a hub that supplies others in Ontario, Quebec and Ohio…a shutdown would worsen an already tight situation for shipping Canadian Crude…

7. Panamanian President-elect Laurentino Cortizo, a Texas educated businessman, says his government would review a mining contract awarded to First Quantum Minerals (FM, TSX), casting another cloud of uncertainty around the world’s largest new Copper mine…Cortizo, who takes office on July 1, told reporters that while the new government values the security of contracts, “the company has to respect that we have the right as Panamanians to review clause by clause”First Quantum says it has “fully complied” with local rules in operating Cobre Panama, and vows to collaborate with Panamanian officials…“We will gladly share all relevant documentation related to the extension of the contract,” the company said in a statement…“We do this with the conviction that the Cobre Panama Project, which employs more than 9,000 Panamanian employees during its current construction phase, can then proceed without any additional legal uncertainty.  The project has attracted $6.3 billion in foreign direct investment”...the Toronto-based company owns 90% of Minera Panama, which was awarded the concession for the Cobre Panama Project in 1997…but the country’s Supreme Court of Justice declared the underlying law unconstitutional last year after a challenge by a radical anti-mining group…at full production in 2021, Cobre Panama will turn First Quantum into a top Copper producer alongside giants like FreeportMcMoRan and BHP Group

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2 Comments

  1. COQUITLAM, BC, June 6, 2019 /CNW/ – Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to announce that Global Energy Metals Corp. (“GEMC”) has received approval from the TSX Venture Exchange for the acquisition of Canada Cobalt’s Re-2OX technology to accelerate the advancement of the Lovelock mine and Treasure Box projects.

    Highlights

    – Re-2OX skips the normal smelting process to achieve exceptionally high recovery rates for cobalt, nickel and copper, while also removing 99% of arsenic expanding the potential of the Lovelock mine by potentially creating battery grade cobalt sulphate.
    – The hydrometallurgical process will complement a wider exploration and drilling program that will allow for reinterpretation of historic data and a better understanding of the ability to unlock potential from GEMC’s Nevada based projects.
    – GEMC is currently formulating plans for exploration and drilling programs to advance the battery minerals project.
    – The Lovelock and Treasure Box projects represent an unique opportunity to make a new battery metals discovery in Nevada, a proven mining district ranked as the most attractive mining jurisdiction by the Fraser Institute’s Annual Survey of Mining Companies, 2018.

    The Transaction

    Details of the transaction is described in GEMC’s news release announced on May 30, 2019, pursuant to which the GEMC has agreed to purchase a right to use for a period of one year the Company’s Re-2OX technology. In consideration for use of the technology, GEMC shall pay to Canada Cobalt a cash payment of $50,000 and issue 2,000,000 units (“Units”) of GEMC at a price of $0.075 per Unit for deemed consideration of $150,000.

    Each of the Units shall consist of one common share and one transferable common share purchase warrant (collectively, “Warrants”) with each of the Warrants entitling the holder thereof to acquire one common share of GEMC at the exercise price of $0.10 per share for a period of 36 months from the date of issuance of the Warrants. Warrants are subject to an acceleration clause whereby if on any 10 consecutive trading days occurring after four months and one day has elapsed from their issuance, the daily volume weighted average trading price of the common shares of GEMC is at least $0.20 per share, GEMC may accelerate the expiry date of the warrants to the 30th day after the date on which GEMC gives notice to Canada Cobalt in accordance with the terms of the Warrants of such acceleration.

    Qualified Person

    The technical information in this news release was prepared under the supervision of Frank J. Basa, P. Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.

    About Canada Cobalt Works Inc.

    Canada Cobalt is focused on immediate and longer-term value drivers at its past producing Castle mine and adjoining land package in the historic Northern Ontario Silver-Cobalt district, Canada’s cobalt heartland since the start of the electric vehicle revolution. The Canada Cobalt “advantage” includes underground access at Castle, an innovative tailings program with a plan to recover silver, gold and cobalt, a recently installed pilot plant to produce gravity concentrates on site, a proprietary hydrometallurgical process known as Re-2OX, and exciting exploration discovery potential at Castle East.

    “Frank J. Basa”
    Frank J. Basa, P. Eng.
    President and Chief Executive Officer

    Comment by John - BMR — June 6, 2019 @ 2:46 pm

  2. CLM news out!!!!!!! Oh wait June 6th and still no news my mistake. Thought it was going to be different this year

    Comment by Weatheritout80 — June 6, 2019 @ 6:51 pm

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