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BMR Morning Market Musings... - BullMarketRun.com

January 9, 2017

BMR Morning Market Musings…

Gold has traded between $1,172 and $1,186 so far today…as of 10:30 am Pacific, bullion is up $13 an ounce at $1,185…Silver has climbed 19 cents to $16.63…Copper and Nickel are both flat at $2.52 and $4.67, respectively…Crude Oil has plunged $1.62 a barrel to $52.35 while the U.S. Dollar Index has lost nearly one-third of a point to 101.98

Gold could fare better in 2017 than many analysts think due to the potential for further destabilization of the euro and a pick-up in physical demand from low levels in key Gold-consuming Asian nations, according to INTL FCStone…the firm released its monthly commodities outlook today which also includes a forecast for the full year…INTL FCStone sees a 2017 range of $1,050 to $1,400 in Gold

Investors plowed a net $14 billion into so-called specialty commodity funds in 2016, making it the biggest year of inflows so far since 2010, according to data from fund tracker Morningstar…this also matches with 2016 being the best year for the Venture since 2010…two-thirds of the money invested in such funds went into ETFs that specialize in Gold, with SPDR Gold Shares (GLD) alone taking in more than $7.2 billion…over the year, investors also snapped up funds that specialize in other precious metals, such as Silver, Platinum and Palladium…in all, nearly three-quarters of the money that flowed into specialty commodity funds during 2016 went to precious metals…

Oil Update

U.S. energy companies have added Oil rigs for a 10th week in a row, according to the latest data from Baker Hughes, extending a recovery in activity into an 8th month as Crude prices remained at levels at which many drillers can operate profitably…this has raised concerns that U.S. production could undermine efforts by OPEC and others to cut output….there’s no threat, however, of major new U.S. supply coming onto the market during the 1st half of the year…the last half of 2017 could be a different story, however…according to a recent report from JP Morgan, sustained Crude prices of $50 a barrel would aid U.S. shale growth of 200,000 barrels a day for the 2nd half of the year while the jump would be much more significant at 600,000 barrels a day if Crude prices move up to $60 a barrel…any further rise may even see shale production growth breaching 1 million barrels a day…

WTIC 15-Month Weekly Chart

Technically, regardless of today’s weakness, the outlook for Crude Oil for Q1 is decidedly bullish following the predicted breakout above the “neckline” at $50 which now serves as new support…an inverted head-and-shoulders pattern formed over a period of more than a year between late 2015 and late 2016, finally leading to a breakout last month…

Such a pattern suggests Crude prices could climb as high as the $70’s at some point this year, a level that few analysts are currently predicting…however, John’s WTI charts in late 2014 correctly warned of a potential collapse to $25

In Today’s Morning Musings

1. FLY hits a nearly 2-year high…

2. Silver’s time to shine again?…

3. Gold-S&P 500 ratio hits lowest level in more than a decade…

4. Daniel’s Den the sleeping giant that could awaken…

And more!

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…


  1. Biggest 1 day volume for Greencastle (VGN)in over 2 years today, are investors finally starting to notice?

    Comment by Danny — January 9, 2017 @ 11:21 am

  2. Interesting, Danny, I would say this is the most important part of this morning news: “With Deveron’s transformation complete, Greencastle management focus will shift to unlocking value in our Nevada gold assets and generating new opportunities.”

    Looks like TR has something in the works for VGN.

    Comment by Jon - BMR — January 9, 2017 @ 11:29 am

  3. Agree Jon, found that part very interesting. His positive comments about Deveron were also interesting. I think the days of buying this stock at .08 are over. Proves again that generally the best time to buy these juniors is when things are quiet (lower risk) as long as you have some patience. Now we just need to get CLE moving and I will be a real happy camper.

    Comment by Danny — January 9, 2017 @ 11:42 am

  4. Mr. Mike Ferguson reports


    Gensource Potash Corp., as of Jan. 4, 2017, has successfully completed the two-well exploration drilling program in its 100-per-cent-owned Vanguard project area. The program builds upon the two wells drilled on the property in 2012, and will enable Gensource to advance the determination of the resource extent, grade, and ultimately allow for updating and issuing of a revised National Instrument 43-101 report.

    Mike Ferguson, Gensource’s president and chief executive officer, commented: “It is a significant milestone for Gensource to successfully complete our exploration drilling program and retrieve the full core from the Prairie evaporite from both drilling locations. We are proud to say that the work was accomplished safely, with no reportable incidents during the program, and initial observations of the core look very promising.”

    Assay data from samples of core from well No. 1 are expected very shortly, and further information will be provided once the data have been analyzed.

    With respect to well No. 2, a full Prairie evaporite core of 67 metres was retrieved. Upon initial inspection, the core from well No. 2 is similar to that of the first well, and reveals that:

    All three members of the Prairie evaporite (Patience Lake, Belle Plaine and Esterhazy) are present and intact.
    Thicknesses of the three members are consistent with adjacent wells, meeting and exceeding expectations.
    Significant sylvinite mineralization is present, especially the Patience Lake and Belle Plaine members.

    The core was securely transported to Saskatoon, where it is being logged. Once logged, the core will be sampled, and the samples will be crushed and assayed to provide chemical composition data, most specifically KCl grade.

    Additional highlights from the second well include:

    67 metres of 3.5-inch-diameter core cut and retrieved from the Prairie evaporite formation. Of the 67 metres, the three target potash-bearing members of the formation aggregated approximately 40 metres;
    Total vertical depth of 1,559 metres;
    19 days on site and over 4,600 man-hours worked with zero injuries and zero reportable incidents;
    Several geophysical logs were run, including hole volume, directional, neutron-density-PE, induction, spectral gamma ray, dipole sonic and cement bond logs. These logs are run to help characterize the geological formation in terms of potash grade and density/porosity of the various formations logged.

    The scientific and technical information contained in this news release was reviewed and approved by Louis Fourie, PGeo, president of Terra Modelling Services Inc., an independent consultant and qualified person under National Instrument 43-101.

    We seek Safe Harbor.

    © 2017 Canjex Publishing Ltd. All rights reserved.

    Comment by Jon - BMR — January 9, 2017 @ 2:18 pm

  5. Daniels den was on point about trumps tactical error, because when this bubble pops he is going to take all the blame. He should’ve just shut his mouth, but his ego gets in the way.

    Comment by Sameer — January 9, 2017 @ 2:36 pm

  6. Jon, any idea when the drill will be turning at Tora Tora? You said last week that there were rumblings that GGI was mobilizing a crew. Will you be interviewing Regoci anytime soon?

    Comment by Dan1 — January 9, 2017 @ 2:38 pm

  7. If my take on the Dec 30 news was correct, Dan1, we should be hearing from GGI very soon. We might be interviewing Makela or Goldie before we interview Regoci.

    Comment by Jon - BMR — January 9, 2017 @ 3:52 pm

  8. Cool, that’s even better Jon. Makela is the man to talk to regarding E&L. ?

    Comment by Dan1 — January 9, 2017 @ 5:09 pm

  9. Mr. Bill Fisher reports


    Goldquest Mining Corp. has made a polymetallic discovery named Cachimbo from the latest four-hole batch of drill results of its continuing minimum 40-hole, 10,000-metre 2016/2017 drill program on its 100-per-cent-owned Tireo concessions in the Dominican Republic.

    The Company made this discovery on the third target of the twenty targets being tested in this campaign. Drillhole number TIR-16-09, intersected a new Volcanogenic Massive Sulphide (VMS) zone which returned high grades of precious and base metals — notably gold and zinc — on three horizons (see Table 1 below). This new discovery is located 20.5 kilometres south of GoldQuest’s multi-million ounce Romero gold/copper project (see Tables 3 and 4 below).

    “This discovery once again validates our rigorous exploration approach in the previously unexplored large Tireo Belt land package,” commented Bill Fisher, GoldQuest’s Executive Chairman. “The discovery of high grade zinc is especially fortuitous since zinc prices have risen 75% during the last year. With this discovery on merely the 3rd target of 20 such targets, we are optimistic as to the potential of the district, as VMS mineralization often occurs in clusters. Along with the Romero project in full permitting mode, GoldQuest is well-funded and positioned to be one of the most active mineral exploration and development companies of 2017 as we explore the emerging Tireo Belt which has the potential to become a mining district.”

    About the Cachimbo Discovery

    The Cachimbo discovery is confirmed as VMS mineralization. VMS orebodies host some of the largest and richest mines in the world including Kidd Creek in Canada and Rio Tinto in Spain. The high level of precious metals intersected in Cachimbo are particularly encouraging. The discovery hole is collared 80 metres from at-surface sampling that returned 167 g/t (5.4 oz/t) of gold. The new mineralization is open in both directions along strike.

    Importantly, the Cachimbo discovery hole displays a 60 metre mineralized package from 51 metres depth to 111 metres depth with multiple significant horizons. The upper horizon returned 4.6 metres grading 4.5 g/t gold and 73 g/t silver with minor base metals from 56.4 metres depth and the main VMS horizon was discovered below with a 4.9 metre interval grading 13.8 g/t gold 74 g/t silver, 11.8 % zinc and 1.1% copper and 0.7% lead within a wider horizon of 15 metres grading 5.3 g/t gold, 31 g/t silver 4.2 % zinc and 0.4% copper and 0.3% lead from 70 metre depth.

    The ongoing drilling program is on hole 14 in this campaign targeting a separate zone approximately 8 kilometres to the north of hole TIR-16-09. Further drilling at Cachimbo is anticipated to take place systematically once the Company has tested the remaining 17 exploration targets along the belt.

    Areas where drilling identifies significant mineralization, such as Cachimbo, or high potential for mineralization will be considered for follow up drilling.

    Table 1. Tireo Drilling Intersections

    Hole From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) Zn (%)
    TIR-16-07 164.0 174.9 10.9 0.35 1.78 0.01 0.08

    TIR-16-08 No significant results

    TIR-16-09 51.2 60.96 9.76 2.54 39.97 0.07 0.52
    Including 56.39 60.96 4.57 4.50 72.60 0.52 3.51

    And 70.0 85.24 15.24 5.27 30.62 0.42 4.21
    Including 73.15 78.04 4.89 13.75 73.73 1.12 11.78

    And 99.06 111.03 11.97 0.56 11.86 0.02 0.33

    TIR-16-11 4.57 50 45.43 0.45 6.02 0.02 0.12

    *Interval grades are calculated using uncapped assays. Gold values
    did not exceed 20.7 gpt. Intervals may not represent true widths.
    There is insufficient drilling to determine the orientation of the
    mineralized bodies at this time.

    The Company will release the results of the remaining drill results in batches as the assay results become available.

    Romero Project:
    Table 3. Mineral Resource Estimate for Romero Project

    Category Zone Tonnes Au (g/t) Cu (%) Zn (%) Ag (g/t) AuEq (g/t) Au Ounces AuEq Ounces
    Indicated Romero 18,390,000 2.57 0.65 0.31 4.2 3.43 1,520,000 2,028,000
    Romero South 1,840,000 3.69 0.25 0.18 1.6 4.01 218,000 237,000
    Total Indicated
    Mineral Resources 20,230,000 2.6 0.61 0.30 4.0 3.48 1,738,000 2,265,000
    Inferred Romero 2,120,000 1.80 0.39 0.36 3.2 2.32 123,000 158,000
    Romero South 900,000 2.57 0.20 0.21 2.1 2.84 74,000 82,000
    Total Inferred
    Mineral Resources 3,020,000 2.03 0.33 0.32 2.9 2.47 197,000 240,000

    (1) Effective data for the Mineral Resource is September 27, 2016

    (2) Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.

    (3) The quantity and grade of reported Inferred Resources in the estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

    (4) Gold Equivalent Metal prices used were $1,400/oz Au, $20.00/oz Ag and $2.50/lb Cu and recoveries of 78.1% for gold, 94.6% for copper and 58.6% for silver.

    (5) Columns may not calculate precisely due to rounding errors.

    Table 4. Mineral Reserve Estimate for Romero Project

    The Probable Mineral Reserves are the economically minable portions of the Indicated Mineral Resource.
    Mine Tonnes Au Ag Cu Au Eq (1)

    (Cut off $70 (g/t) (oz) (g/t) (oz) (%) (M lb) (g/t) (oz)
    NSR) (2)

    Total Probable 7,031,000 3.72 840,000 4.33 980,000 0.88 136 4.9 1,117,000

    (1) Gold equivalent metal prices $1,300/oz Au, $20.00/oz Ag and $2.50/lb Cu

    (2) Cut-off NSR metal prices: Cu $2.50/lb Au $1,250/oz Ag $17.00/oz; Recovery: Cu-96.8 Au-71.7 Ag-54.4, Payable: Cu-96.5 Au-90.0 Ag-95.0, TCRC: $257.83/dmt, Cu concentrate 20%

    QA/QC As part of the Company’s Quality Assurance and Quality Control procedures (QA/QC), most of the high grade intervals are re-assayed and the Company is awaiting these check samples. In addition, systematic re-assaying of intervals is in progress, to confirm compliance of blanks and duplicates checks. The Company also reviews results from Certified Standard Reference materials (CRSM or Standards), which are inserted at a rate of five per 100 samples. Within the results disclosed herein there were two samples that had results above the recommended tolerances for zinc. Both of the samples were in a batch from hole TIR-16-08 which had no significant results. In GoldQuest’s drill programs, composite intervals were chosen using a combination of geological criteria and mineralization, averaging around two metres core length. The drill core is cut in half with one half of the core sample shipped to ACME Labs by GoldQuest technicians. The remaining half of the core is kept at the Company core shack for future assay verification, or any other further investigation. Assays within intervals below the 0.005 g/t detection limit for Au were given a zero value. All drill samples were prepared and screened by ACME Labs (Vancouver); metallic fire assay and multi-element ICP-MS were assayed by ACME Analytical Laboratories (Vancouver). Gold values are determined by standard fire assay with an AA finish, or, if over 10.0 g/t Au, were re-assayed and completed with a gravimetric finish. Copper and zinc values exceeding 0.2% were re-assayed with a 4-acid digestion and AAS finish. When zinc values exceeded 10% a classic titration was carried out for zinc. QA/QC included the insertion and continual monitoring of numerous standards, blanks and duplicates into the sample stream, at random intervals within each batch. The comprehensive GoldQuest Quality Assurance and Quality Control protocols can be viewed on GoldQuest’s website at: http://www.goldquestcorp.com/index.php/corporate/corporate-governance.

    The information in this press release has been reviewed and approved by Mr. Jeremy Niemi, P. Geo., Vice President, Exploration of GoldQuest and a Qualified Person for the technical information in this press release under NI 43-101 standards.

    Comment by Jon - BMR — January 10, 2017 @ 5:49 am

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