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7 @ 7:00 - BullMarketRun.com

March 16, 2017

7 @ 7:00

BMR Morning Market Musings resumes tomorrow.

1. Gold has traded between $1,223 and $1,235 so far today, reacting bullishly to yesterday’s Fed rate hike and statement…as of 7:00 am Pacific, bullion is up $8 an ounce at $1,228 while Silver has added 3 cents to $17.36…as expected, the Fed raised interest rates for the 2nd time in 3 months but officials stuck to their outlook for 2 more rate hikes this year and 3 more in 2018…Fed Chair Janet Yellen said that the central bank would maintain a gradual path of interest rate increases even if inflation runs above its 2% target…inflows into the SPDR Gold Trust, the world’s biggest Gold-backed ETF, continued for a 3rd straight day yesterday and have already nearly erased last week’s outflows…the U.S. Dollar Index is flat at 100.50 as of 7:00 am Pacific while Oil prices are also relatively unchanged at $48.82

2. President Donald Trump has called for sharp cuts to spending on foreign aid, the arts, environmental protection and public broadcasting to rebuild the American military and create a more secure border in a fiscal 2018 budget blueprint released this morning…the plan shows how the administration hopes to offset an increase of $54 billion in military spending with an equivalent amount of reductions across other programs to avoid increasing the budget deficit, which the Congressional Budget Office has projected at $487 billion for 2018…that should be music to the ears of the Gold market as the deficit will likely exceed that, in our estimation, while the debt will surpass $20 trillion…Trump’s proposal leaves untouched roughly $2.5 trillion in annual outlays on Medicare, Social Security and other mandatory spending that Washington doesn’t want to touch…according to data from the CBO, spending on non-defense discretionary programs is already historically low…as a share of the economy it’s at its lowest level since 1998, well below where it was 50 years ago…

3. After its best single-day performance since December 28, the Venture is up another 5 points at 812 through the first 30 minutes of trading…Fed rate hikes have proven to be bullish for the Index since the first one in nearly a decade in December 2015…the TSX has climbed 67 points while the Dow is up 40 points as of 7:00 am Pacific

4. Golden Predator Mining (GPY, TSX-V) released assay results this morning for the final 25 holes of its winter 2016 drill program at the 3 Aces Project in southeastern Yukon…drilling has confirmed high-grade Gold mineralization with good continuity in the Ace of Hearts vein with additional veining identified at depth…the Hearts zone was tested with 15 holes totaling 1,541 m and significant Gold mineralization (minimum interval of 3.0 g/t Au) was encountered in 13 of those holes; 2 holes did not reach the target depth…highlights from separate holes included, at true width, 7.6 m grading 6.4 g/t Au, 17.3 m @ 4.8 g/t Au, 7.4 m @ 9.4 g/t Au, while hole 3A16-DD-082 bottomed in mineralization intersecting 13 m of 16.7 g/t Au from a depth of 42.7 m, including 3.4 m of 61.7 g/t Au, which included 0.54 m of 315 g/t Au…the Ace of Hearts zone is located approximately 1 km west of the Ace of Spades zone and approximately 1.6 km south of the Queen of Clubs zone where drilling results were previously reported…GPY, which closed a $17 million financing earlier this week, commenced a 20,000 m drill program in February and is initially focusing on the Spades Zone before expanding to other areas of the property…GPY is up 12 cents at $1.74 as of 7:00 am Pacific

5. Colorado Resources (CXO, TSX-V) touched a monthly high of 32 cents during the first 30 minutes of trading this morning and is up 2.5 cents at 31 cents as of 7:00 am Pacific…results are pending from the company’s recently completed drill program at its newly-acquired Green Springs Project in Nevada…as CXO gears up for a major campaign at its KSP Project in the Heart of Gold Camp, earlier this week it acquired the ROK-COYOTE Property in the Red Chris area to double the prospective strike at its North ROK Cu-Au porphyry deposit…

6. Castle Silver Resources (CSR, TSX-V) has completed an oversubscribed private placement for $952,000, all in “hard” dollars at 15 cents, setting the stage for a ramping up of the company’s exploration efforts at its past producing Silver-Cobalt mines in northern Ontario’s Greater Cobalt Camp…a distinguishing feature of CSR is the advanced nature of its Castle and Beaver properties from extensive work carried out over the last 6 years, ahead of the Cobalt boom…on January 31, CSR reported Silver and Cobalt recoveries of 98.5% and 70.5% respectively, produced an extremely high concentrate grade of 11,876 grams per tonne Silver and 10.5% Cobalt using a simple flotation process…the mineralized material surface rock sample was a composite collected from the waste pile assaying 2,064 g/t Ag and 5.6% Cobalt at the Beaver mine…CSR, whose $7.9 million market cap still significantly trails the average valuation in the district, is up a penny at 20 cents as of 7:00 am Pacific

7. First Cobalt (FCC, TSX-V) has secured an option to acquire 100% of the historic Keeley-Frontier Silver-Cobalt mine, the largest past producer of Cobalt in Silver Centre, part of northern Ontario’s Greater Cobalt Camp…the Keeley and Frontier mines produced over 3.3 million pounds of Cobalt and 19.1 million ounces of Silver from approximately 300,000 tonnes of ore, for an estimated recovery of 0.5% Co and 1,800 g/t Ag…Keeley-Frontier was the largest past producer of Cobalt in Silver Centre and is believed to have had the highest ratio of Cobalt to Silver of all the major producers in the Greater Cobalt Camp at 1 pound of Cobalt for every 5.8 ounces of Silver…FCC hit a new high of 92 cents in early trading before backing off to the mid-80’s

The 3 most popular recent BMR articles…

Update:  Who’s Who In The Northern Ontario Cobalt Camp

The Drone Revolution:  Deveron UAS Carves A Niche In The Booming AgTech Sector

7 @ 7:00: Respected Gold producer CEO: “I don’t think, in my 20 years, I’ve ever seen the stars so aligned for a better Gold price”


  1. The proposed $54 billion US military increase compares with Russia’s total military budget of less than $70 billion. We can’t cut back on our 800 overseas military bases or the great ranks of military brass of course. (draining the swamp, yeah that’s the ticket).
    It’s similar to the great promise to reduce illegal immigration. All they really need to do is enact mandatory Everify, where employers need to verify residency or face a stiff fine, and much of the problem would go away in months. This could have been done under Reagan when he made millions of illegals legal. The powers that be don’t want to stop it. It lowers wages, busts unions, and fattens big biz. (it’s likely added a lot to US malaise where real wages haven’t gone up in 37 years) Industry needs people to be able to afford to buy things in order for business to prosper–duh.
    Oh well, all the continuing BS is good for gold and gold companies.

    Comment by Carl N — March 16, 2017 @ 8:51 am

  2. Jon .. Cruz Capitals NR… a valiant attempt to prop the share price up??? is it normal to put out a NR to say you are applying for a permit.. rather that saying you have one??
    just asking mate – thx

    Comment by Jeremy — March 16, 2017 @ 10:15 am

  3. CSR moving

    Comment by dave — March 16, 2017 @ 10:31 am

  4. It’s a promo play, as we’ve pointed out, Jeremy…your point is a valid one…having said that, doesn’t mean their efforts won’t materialize in terms of adding shareholder value…

    There are several plays that are very different with truly exceptional situations on the ground and those include CSR and CPO…CSK and FCC mean business as well, but you have to really like the valuations for CSR and CPO at the moment…CSR appears to have the most momentum, technically and on the ground…looking forward to finding out which pros may have participated in CSR’s financing…could provide some important clues for what’s developing there! An oversubscribed hard dollar PP for nearly $1 million at 15 cents shows investor confidence in the CSR game plan.

    Comment by Jon - BMR — March 16, 2017 @ 10:35 am

  5. Thx mate:) and yes I know/knew… maybe the viel has been lifted.. like Spearmint Resources..:) yikes eh!

    Comment by Jeremy — March 16, 2017 @ 11:16 am

  6. As mentioned by previous posters, it’s looking like Bayhorse (BHS) is finally turning the corner and is getting production going. Will likely buy more tomorrow, can’t see it staying under .20 for much longer.

    Comment by Danny — March 16, 2017 @ 3:57 pm

  7. No
    Any rumours out there yet on was involved with the CSR financing?

    Comment by Greg — March 16, 2017 @ 8:06 pm

  8. This is interesting, Greg, and points to why CSR so quickly closed a financing as over-subscribed as Venture rules would allow:

    With 39.5 million shares now outstanding (one of tightest share structures in district), CSR’s market cap is still just $8.7 million. Peers Equator Resources (EQU, ASX), First Cobalt (FCC, TSX-V) and CobalTech Mining (CSK, TSX-V) have an average market cap of $43 million.

    In multiple ways, as we’ll explain in an updated CSR report Monday, CSR is more advanced with its Castle and Beaver properties given what has been invested in them since 2011 and CSR’s ability to fully access the Castle main adit through a closure plan with Ontario govt. In addition, and we believe this will come out in due course, there is going to be a “tech” angle with CSR given CEO Frank Basa’s experience with Agnico Eagle in the 1980’s and a ReOX (reaction oxidation) process he was instrumental in creating back then that leaches all metals (Cobalt and everything else, including Gold) into one solution with very high recovery rates. That, shall we say, is explosive! Basa is the top metallurgist in the district, and this ReOx process has the potential to produce a big-time re-rating of CSR’s valuation. Now you know why we’ve been so excited with this opportunity…just catching up with its neighbors EQU, FCC and CSK would put CSR at $1 per share. They may play more than just “catch up”.

    Comment by Jon - BMR — March 17, 2017 @ 3:05 am

  9. Wow are you saying Paul Matysek may have bought into CSR?

    Comment by GREGH — March 17, 2017 @ 3:38 am

  10. No, not Matysek (not yet, anyway). But CSR has the attention of serious Howe Street players, Greg…I can assure you of that, and Aussie-land could yet come into the picture given their appetite for strong Cobalt plays.

    Comment by Jon - BMR — March 17, 2017 @ 5:21 am

  11. Jon, any idea if GGI has completed the VTEM at the E&L. Its been 2 weeks since Regoci said they were doing it immediately (weather permitting).

    Comment by pole — March 17, 2017 @ 8:23 am

  12. I’m sure they would news release something pertaining to that, pole—-that’s what I would be waiting for.

    Comment by Jon - BMR — March 17, 2017 @ 10:12 am

  13. Thanks Jon.

    Comment by pole — March 17, 2017 @ 10:18 am

  14. Jon
    The reason I mentioned Matysek being involved with CSR is when I asked last night about the rumors of who took down the financing their was a post from BMR that referred to the March 6 special alert from BMR and Matysek was the guy in the Alert
    Darn I was hoping it was true lol

    Comment by GREGH — March 17, 2017 @ 11:08 am

  15. Gregh, Matysek is a very important figure in this Camp as Chairman of Australian-listed Equator, so that’s why we’ve been pointing him out…the fact he would jump into Equator (soon to be renamed Cobalt One) at this stage of the game is a very bullish sign—–Matysek is a leader, not a follower, and never jumps in after the masses…

    Comment by Jon - BMR — March 17, 2017 @ 11:59 am

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