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December 11, 2016

Compelling Zinc-Copper Play With High-Grade Gold Bonus

Capturing The Investment Opportunities In Zinc & Copper

At BMR, we’ve recently brought forward some outstanding opportunities for our subscribers in the Zinc space, not the least of which was a stock flying completely under the radar – Morumbi Resources (MOC, TSX-V) – that has already tripled in price from our initial introduction in late September at 10 cents.

Early-mid December is the best time of the year to be on the buy side in the junior exploration sector.  Continuing with the Zinc and VMS theme, we’ve identified another gem that’s clearly undervalued given its current Zinc-Copper resource, strategic partner, the strong potential for a cluster of deposits, cash in the bank (~$5 million), share structure, and high-grade Gold properties.

We expect this company to take steps to increase its profile in the near future as a new milestone is reached in its flagship project, so now is the ideal time to get positioned in this play.

Click here to learn more about this Zinc-Copper play, and access all BMR subscriber-only content, by taking out a Pro, Gold or Basic subscription, or login with your username and password.

November 4, 2018

Sunday Sizzler Report!

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October 21, 2018

Sunday Sizzler Report!

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October 14, 2018

The Week In Review And A Look Ahead!

AltaGas Camp, Eskay District 

Northwest British Columbia flexed its muscles again this past week as GT Gold (GTT, TSX-V) more than doubled in value on additional evidence that the company has made the most significant grassroots Gold-Copper porphyry discovery in the province in many years, perhaps since Mount Milligan in the 1990’s.  Keep in mind, Saddle North was never even drilled until last year, and widely spaced world class intercepts of Gold-rich porphyry mineralization are now being reported including:

  • 904 m grading 0.51 g/t Au and 0.30% Cu in hole #93 (including 1.02 g/t Au, 0.51% Cu and 1.72 g/t Ag over 363.1 m)
  • 494.1 m @ 0.25 g/t Au and 0.26% Cu in hole #90 (including 0.39 g/t Au, 0.39% Cu and 0.80 g/t Ag over 169.3 m)
  • 822.2 m @ 0.42 g/t Au and 0.26% Cu in hole #85 (including 0.70 g/t Au, 0.41% Cu and 0.84 g/t Ag over 404.5 m)

As per last Tuesday’s news, 7 diamond drill holes have been completed in 2018 at Saddle North with results pending for 4 of them as drilling continues with 2 rigs.  All 7 holes have achieved strong visual intercepts of the target mineralized monzodiorite over considerable intervals, demonstrating broad lateral and depth continuity.

Charlie Greig, VP-Exploeration for GT Gold, commented: “Porphyry discoveries of this scale and tenor are uncommon.  Our exploration team is excited by the visual intercepts of sheeted vein, vein stockwork and disseminated-style Gold-Copper-Silver mineralization, and by our ability to hit the host monzodiorite intrusion in follow-up holes, even with large step-outs.  It’s also exciting to know that the mineralized body is essentially intact, and largely uneroded, at surface beneath relatively thin overburden, and that it extends to depth, both downdip of our known intercepts, and along strike.  We see tremendous upside for expansion and, as was the case with the nearby Red Chris deposit, potential grade increases at depth.”

The Saddle North Intrusive Complex appears to be similar lithologically to the nearby Red Chris porphyry system, but with high-potassium calc-alkalic rocks predominating.

Greig is one of B.C.’s most respected geologists who correctly predicted the high-grade Gold discovery at the adjacent Saddle South target based on extensive geochemistry that led to stunning results from first-ever drilling last year.  High-grade Gold intercepts at Saddle South reported in August and September have confirmed what was suspected all along, that Saddle North is the porphyry “heat engine” driving the entire Saddle mineralized system.

The Benefits Of “Climate Change”

To the south in the Eskay Camp, Mother Nature is uncovering more Nickel-Copper-rich massive sulphide mineralization in outcrop than ever previously seen at Garibaldi Resources‘ (GGI, TSX-V) Nickel Mountain Project.  One has to believe that this bodes very well for recently completed and upcoming drill holes at the Golden Triangle’s first magmatic Nickel sulphide deposit with Nickel grades in massive sulphides that are among the very best in the world.

The E&L glacier, approximately 1.6-km-long and 1-km wide and part of the Nickel Mountain gabbroic complex, is breaking up and melting north of any previously drilled holes, thanks to an unusually warm spring and summer, providing exciting new drill targets and compelling evidence that this unique deposit – open in all directions – may extend well under the untested icefield to the north and northeast.

Below is a picture taken north of the Discovery zone and northeast of the historic Northwest zone.  As the ice melts, one of the most exciting discoveries in British Columbia exploration history heats up!

The most extensive pullback of ice ever seen at Nickel Mountain has provided geologists with important new drill targets that could result in the discovery of additional new zones of magmatic Nickel-Copper-rich sulphide mineralization.

BMR subscribers have enjoyed market-trouncing returns through our boots-on-the-ground research and unbeatable technical and fundamental analysis of speculative niche sectors.

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September 19, 2018

7 @ 7:00

Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information

1. Gold has traded between $1,200 and $1,207 so far todayas of 7:00 am Pacific, bullion is up $5 an ounce at $1,203net-short positions in Gold are still at a very high level, and momentum in the U.S. Dollar Index appears to be waning, so the metal is looking better than it has in quite a while…bullish signs are also appearing in the TSX Gold Index…Silver is up 7 cents at $14.21Copper is flat at $2.75…Nickel and Zinc continue to rally, at $5.75 and $1.09, respectively, while Cobalt is steady at $28.46…Palladium has regained the $1,000 level and Rhodium has quietly continued its march higher, now north of $2,400Crude Oil has climbed another 35 cents to $70.20…Oil prices have been given a boost thanks to heightened geopolitical tensions after Russia (of course) blamed Israel for the loss of one of its reconnaissance planes shot down by Syrian defense systems…the U.S. Dollar Index is relatively unchanged at 94.59

2. Big Pharma is coming:  Pharmaceutical companies have to start thinking about partnering with cannabis companies as a “hedge” against the burgeoning marijuana industry, Brendan Kennedy, the CEO of medical cannabis producer Tilray (TLRY, NASDAQ) stated on CNBC…the stock is up nearly 40% in early trading, surging $56.57 a share to $211.65“They have to hedge this,” Kennedy told “Mad Money” host Jim Cramer in an exclusive interview.  “Cannabis is a substitute for prescription painkillers, prescription opioids, and so if you’re an investor in a pharmaceutical company or you’re a pharmaceutical company, you have to hedge the offset from cannabis substitution”the CEO said the same goes for alcohol producers, some of which, namely Constellation Brands (STZ, NYSE), have already begun to invest heavily in marijuana companies…“I think all the alcohol companies need to enter this industry. It’s a great hedge for them,” Kennedy told Cramer…“Whether you’re an alcohol company or an investor in an alcohol company, this is a global opportunity”

3. Kirkland Lake Gold (KL, TSX, NYSE) has released new high-grade results from ongoing underground drill programs at its Fosterville mine in Victoria, Australia…drilling continues to target down-plunge extensions of Swan mineral Reserves with results providing confirmation of the geological model and continuity of high-grade, visible Gold-bearing mineralization on the Swan structure…results from 19 new drill holes, totalling 6,482 m, outside of the Measured and Indicated resources in the Swan zone as of the end of 2017, continue to return intervals of exceptionally high grades with visible Gold (7.45 m @ 289 g/t Au including 2,857 g/t over 0.75 m; 11.9 m @ 155 g/t Au including 1,566 g/t over 1.1 m; 3.55 m @ 423 g/t Au including 760 g/t over 1.95 m)…rich quartz veins extend at least 200 m down plunge from current Reserves…Tony Makuch, President and CEO of Kirkland Lake, commented:  “We are quickly establishing Fosterville as a new, world-class Gold camp, with the new drill results at Swan being the latest indication that there is much more to be found in terms of mineral Reserves and mineral resources…with the new results, we are increasingly confident that our upcoming December 31, 2018, mineral Reserve and mineral resource estimates will include a considerable increase in mineral Reserves in the Swan zone and a higher overall average grade and increased mineral Reserve base for the Fosterville mine as a whole”…meanwhile, KL says it has upped its stake in Osisko Mining (OSK, TSX) by acquiring some 14.7 million common shares through private placement financing at $1.70 per share for a total of $25 millionKL now owns 13.6% of Osisko

4. Orca Gold (ORG, TSX-V) has increased Indicated and Inferred resources to 3.3 million ounces and 711,000 ounces, respectively, for its Block 14 Gold Project in Sudan…the updated estimate will form the basis for the Feasibility Study due in November…the Indicated resource for the Galat Sufar South (GSS) and Wadi Doum deposits comprises 79.9 million tonnes grading 1.3 g/t Au for 3,342,000 ounces, while the Inferred resource is 18.5 million tonnes grading 1.2 g/t for 711,000 ounces of Gold (cut-off grade is 0.6 g/t)…notable intercepts from the 2018 resource expansion drilling program include 123 m @ 1.96 g/t Au, 78 m @ 1.92 g/t, 68 m @ 3.48 g/t, and 50 m @ 3.05 g/t…“The drilling completed in 2018 has been specifically aimed at developing mineral reserves as part of the Feasibility Study,” stated Orca CEO Richard Clark.  “Given the increase in the scope of the Block 14 Project, driven by the 2017 discovery of a major fresh water aquifer system and the successful resource drilling campaigns, we expect to see a significant positive change in the scale and scope of the project with the delivery of the Feasibility Study in November.  Exploration will now focus on the expansion of high-grade zones identified at Wadi Doum towards further enhancement of the economics and production potential at Block 14 and drill testing of additional high-grade targets previously identified.  Block 14 has exceeded our expectations and continues to demonstrate that it has a lot more to offer.  The delivery of our Feasibility Study will establish the initial economics of this project and will form the base for further growth of this exciting Gold camp”

5. The Dow has jumped 129 points through the first 30 minutes of tradingin Toronto, the TSX has gained 26 points…Aurora Cannabis (ACB, TSX) is looking at listing shares on a major U.S. stock exchange in October, according to one of its executives quoted in a Financial Post article…such a move, of course, would continue to broaden the scope of Aurora’s would-be investors, including U.S. institutional players, not all of whom are able to trade in OTC-listed securities…the Venture has eased off 2 points to 722 as of 7:00 am PacificChemesis International (CSI, CSE), one of our favorite new marijuana plays, has hit a fresh high of $1.24 in early trading…also on the CSE, Cannabix Technologies (BLO, CSE) is showing renewed technical strength with the stock up a dime at $1.92Canada Cobalt (CCW, TSX-V) has reversed higher after a healthy retrace of 50% of its big move from May to the end of July, setting the stage for a powerful new wave to the upside for the world’s top-performing Cobalt play in 2018…privately-held Battery Mineral Resources, funded out of New York Australia, is focusing its Northern Ontario Cobalt Camp strategy on its claims bordering Canada Cobalt with Battery having launched a major program within just 300 m of CCW’s Shaft #3…meanwhile, CCW continues with 2 separate drill programs (underground and at surface in a potential new discovery area east of the mine)…Cornerstone Metals (CCC, TSX-V) reported this morning that Phase 2 RC drilling continues at its Carlin Vanadium Project in Nevada with a total of 33 drill holes completed to date…2 drill rigs are currently turning on the property, to infill and expand the deposit, and plans are to complete approximately 60 holes before the end of September…initial assay results are expected shortly…the Carlin Vanadium deposit is considered one of the largest, highest grade primary Vanadium deposits in North America, according to a 2017 report from the USGSSokoman Iron (SIC, TSX-V) has started preparations for a 10,000-m Phase 2 drill program utilizing 2 rigs at its Moosehead Project in Newfoundland…at least 50% of the proposed meterage will focus on the Eastern and Western Trends to follow up and expand on results from Phase 1 drilling that turned SIC into a quick 10-bagger…the stock is at 17.5 cents this morning, trading just above very strong support in the mid-teens…

6. Marathon Gold (MOZ, TSX) has cut new wide and continuous intervals of Gold mineralization at open-pit depths in both the footwall and hangingwall margins of the main mineralized corridor of its Marathon deposit, including 105 m grading 1.41 g/t Au…current infill drilling is expected to decrease the open- pit strip ratio and move Inferred material into the Measured and Indicated categories as the company moves toward a Feasibility Study.  “These great Gold intercepts (reported this morning) are expected to add significantly to the upgrading of the next Marathon resource update,” stated Phillip Walford, President and CEO of Marathon Gold

7. Australis Capital (AUSA, CSE) commenced trading on the Canadian Stock Exchange (CSE) this morning, following the completion of the distribution of common shares and warrants of Australis by Aurora Cannabis to its shareholders…“The Australis team is excited to begin trading today and grateful to our friends at Aurora Cannabis as the genesis to what will be a compelling and complimentary U.S. mandate,” stated Scott Dowty, CEO of  Australis. “We are laser focused on creating shareholder value through disciplined execution, operational expertise and a go-to-market strategy fueled by defined growth vectors”Australis Capital will be focused predominately on opportunities in the United States…investments may include but are not limited to equity, debt or other securities of both public and private companies, financings in exchange for royalties or other distribution streams, and control stake acquisitions…

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August 22, 2018

7 @ 7:00

Check back later today for Daniel’s Den, and visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,192 and $1,202 so far todayas of 7:00 am Pacific, bullion is up $1 an ounce at $1,197…Silver is off 5 cents at $14.70…Copper is unchanged at $2.72…Nickel has added 6 cents to $6.16…Zinc is a penny higher at $1.11 while Cobalt is steady at $29.26…Crude Oil has jumped $1.36 a barrel to $67.26…the American Petroleum Institute reported late yesterday that U.S. Crude stocks fell last week by 5.2 million barrels, more than 3 times the drop analysts were expecting…the government’s official figures are due within the hour…the U.S. Dollar Index has slipped one-fifth of a point to 94.96today’s Fed minutes are expected to cement market assumptions for 2 more interest rate increases this year, though this is already largely factored into the Gold price…Gold bugs should be excited by this – net shorts in COMEX Gold contracts rose to a record high in the week ending August 14 at 77,273 contracts, according to data from U.S. Commodity Futures Trading Commission…with weakness now appearing in the U.S. Dollar Index after last week’s surge above 96, the possibility of a near-term significant short squeeze in Gold is very real…

2. This morning’s results from Target (TGZ, NYSE) underscore the strength of U.S. consumers“There’s no doubt that, like others, we’re currently benefiting from a very strong consumer environment – perhaps the strongest I’ve seen in my career,” Target Chairman and CEO Brian Cornell told analysts on a call this morning…Q2 results beat on earnings, revenue and comparable store sales…just when many investors have written off brick-and-mortar retailers, Target is seeing its biggest jump in foot traffic and best growth in sales at stores open for more than a year, the company said this morning…“We’re seeing a great consumer response, unprecedented traffic.  As we go back and look, we’ve never seen traffic growth like this,” Cornell told CNBC’s “Squawk Box”

3. The Dow is off slightly through the first 30 minutes of trading…with the S&P 500 Index poised to set a new record today for the longest bull market in U.S. history, there’s no apparent reason it can’t run further…the Fed’s rate increases since 2015 are moving too gradually to hold it back, though President Trump wants rate hikes to be even more gradual…he told Reuters this week that he’s “not thrilled” with the Fed’s rate increases under Chairman Jerome Powell, his own appointee, and that he should be “given some help” by the central bank in his trade battle with China…in Toronto, the TSX is 51 points higher while the Venture, on a 4-session winning streak, is off a point at 691 as of 7:00 am PacificOsisko Gold (OSK, TSX) has cut 5.2 m grading 510 g/t Au, including 2,930 g/t Au over 0.90 m (476.8 m to 477.7 m) at its Windfall Lake Project in Quebec…the intersection contains local visible Gold in veinlets and as disseminated grains and 5% pyrite stringers in a crustiform vein hosted in a sericite and fuchsite altered gabbro…the Lynx zone infill hole also featured 2 other Gold zones…Canopy Growth (WEED, TSX), which hit a new all-time high of $52.48 yesterday, announced this morning that it has received amended licenses from Health Canada that increase the size and sophistication of its national footprint…increased production capacity at its Smiths Falls and Mirabel sites will increase Canopy’s ability to reach consumers in every market once recreational sales are permitted in mid-October…

4. Aben Resources (ABN, TSX-V) has closed its previously announced non-brokered private placement financing at 30 cents for aggregate gross proceeds of approximately $4.3 million…the company intends to ramp up its drill program in the North Boundary zone of its Forrest Kerr Project in the northern part of the Eskay Camp following very encouraging results from the first hole of its 2018 program…meanwhile, approximately 4.8 million Aben warrants have been exercised since the beginning of June, raising an additional $721,000 in net proceeds for the company…President and CEO Jim Pettit, stated: “With the closing of this financing, we are pleased to welcome Eric Sprott as a large, strategic shareholder of Aben. The company is well positioned with over $6 million in the treasury to expand the 2018 drill program at its flagship Forrest Kerr Gold Project.  Additional drilling is warranted on the back of the results from the first drill hole in the program at the newly discovered North Boundary zone, which intersected 4 separate high-grade intervals, including 62.4 g/t Au over 6 m within 38.7 g/t Au over 10 m from 114.0 to 124.0 m. Aben has now completed 4,850 m of drilling in 16 holes and is awaiting assay results.  The majority of these holes were drilled at the North Boundary zone, and the company will provide updates as results become available”

5. Seabridge Gold (SEA, TSX) has commenced drilling the Quartz Rise high-grade Gold target at its 100%-owned Iskut Project in the Eskay Camp…last year’s drill program, the first ever at Quartz Rise, confirmed the presence of a Gold-bearing intermediate sulphidation epithermal system beneath the Quartz Rise lithocap – the company’s target concept…Rudi Fronk, Seabridge Chairman and CEO, commented: “The Quartz Rise target began as a theoretical concept based on our understanding of porphyry Gold-Copper systems at our KSM project.  In 15 months of work, we have learned a great deal and the concept has become a real, data-driven target.  We believe we can now find the source of the high-grade Gold associated with sulphide-bearing quartz veins at Quartz Rise.  Our research continues to uncover compelling reasons why the lithocap may be hiding a significant, near-surface epithermal precious metals system”…last year’s initial drilling intercepted several narrow, discontinuous intervals of high-grade Gold…a subsequent 3-D IP survey together with detailed geological mapping and sampling of available rock faces indicate that the 2017 drilling may not have been in the correct orientation…new results from cliff face sampling show exceptional Gold results that appear to correspond with a favourable IP chargeability anomaly under Quartz Rise…

6. Orca Gold (ORG, TSX-V) announced this morning that it has completed a further 96 drill holes15 holes for 3,811 m of diamond core and 81 holes for 12,662 m of reverse circulation – at its Block 14 Gold Project in Sudan…meanwhile, the company’s Feasibility Study is on track for completion in November and is expected to show that Block 14 is one of the best pre-development Gold projects in Africa today…drill results will be released in early September in support of an updated resource calculation for the project…this new resource will also form the basis of the November Feasibility Study….currently, Block 14 features an Indicated resource of 72.7 Mt grading 1.3 g/t for 3 million ounces of Gold, and an Inferred resource of 19.8 Mt grading 1.2 g/t Au for 750,000 ounces of Gold

7. Trudeau’s “annual recovery fee” (sounds better than a “tax”, doesn’t it?):  Canada’s major producers of cannabis are urging the federal government to suspend the introduction of an $82 million levy on their revenue (it also only helps the black market that Trudeau has insisted will be eliminated through the legalization of marijuana) in the wake of Ontario’s decision to delay the opening of physical stores by nearly 6 months…Health Canada proposed the creation in July of an “annual recovery fee” of 2.3% on the revenue of licensed producers to recoup the costs of regulating the cannabis industry…however, just as the consultation period on the federal fee ended less than 2 weeks ago, Ontario announced it was postponing the opening of physical stores in the province from October 17 to April 1, 2019…Health Canada is predicting it will eventually need to recoup more than $100 million a year from licensed producers to cover regulatory costs, but it remains unclear exactly how much revenue the licensed producers will earn and the exact level of any fee that should be levied on an annual basis…the executive director of the Cannabis Council of Canada said producers are unlikely to make as much money as the government anticipates in the early goings of legalization, which starts October 17

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August 1, 2018

BMR Evening Alert!

9:30 pm Pacific 

(Exclusive to BMR Subscribers – Not for Distribution or Posting on any Board!)

Tonight, updates on 3 plays (CLM, MOON, AIS) as promised in our most recent Sunday Sizzler.

Crystal Lake Mining Corp. (CLM, TSX-V)

The thesis for owning and holding Crystal Lake Mining (CLM, TSX-V) is as valid today as it was just a few weeks ago when the stock was trading at significantly higher levels:  If you believe in Dr. Peter Lightfoot, one of the world’s top Nickel sulphide experts, and Richard Savage, the highly successful former broker who’s viewed as a rising star among the Venture’s newest CEO’s, then don’t fret for a moment about any temporary weakness in the share price – these two individuals are focused on a much bigger picture that involves creating a lot of wealth for investors.

Keep in mind that Garibaldi Resources‘ (GGI, TSX-V) shareholders who put their faith in Dr. Lightfoot in the spring and summer of 2017 were handomsely rewarded with life-changing capital gains, and Eric Sprott just placed another $3 million bet on Lightfoot by adding 1.1 million shares to his GGI holdings at $2.80.

Dr. Peter C. Lightfoot

Yes, it has been frustrating that Crystal Lake hasn’t provided an update on its activities in recent months, other than news out of the blue in late May regarding the closing of a previously unannounced financing for $1.17 million at 55 cents per share.  Notably, financings have been completed at increasingly higher prices since last year when CLM came to life in the low 20’s.

When a company goes “quiet” like this, it can be a sign that something quite significant is developing behind the scenes.  That’s what we believe is happening in this case, and the outcome could be really exceptional, so it’s best to remain patient and let Savage and Lightfoot do their thing.

We shouldn’t have to wait much longer.  We have reasons to believe, based on our myriad of contacts in different exploration/mining districts around the country, that CLM is in the midst of discussions that could lead to a “transformational” development for the company.  It’s also worth noting that Savage has many contacts across multiple sectors in the markets.  It’s wise to assume that he’ll leave no stone unturned in his quest to make CLM a huge win for investors.  The company is blessed with a strong group of shareholders.  Savage is acutely aware of this and he can be expected to leverage that strength to the fullest extent possible.

What about the Nicobat Project, you ask, where exploration including drilling was launched in the spring?  This is a large project with a pipeline of Nickel sulphide targets, and we’re confident it’s even more prospective now than it was months ago after Lightfoot and his team have had a chance to accumulate a lot of data and work through it.  However, being a one-trick pony creates even greater risk in the junior exploration market, hence we fully support the idea of diversifying Crystal Lake and creating a compelling multi-opportunity play – that’s probably what both Savage and Lightfoot had in mind before exploration even started at Nicobat.  The best deals can often take many months to complete.

CLM 8-Year Monthly Chart

Despite CLM’s drop to a new yearly low this week, the “Big Picture” is still very positive from an overall technical point of view.

When you have a stock that features rising 500 and 1,000-day moving averages (SMA’s), you can have high confidence the primary trend is in your favor.  If you recall, we pointed out how foolish it was for investors to be selling Canada Cobalt (CCW, TSX-V) just a few months ago in the low 20’s after a pullback from is earlier 2018 high of 55 cents.  Some investors were literally throwing massive potential profits out the window when they were hastily dumping their CCW paper out of frustration at or near the rising 500-day SMA (with a rising 1,000-day SMA beneath that for additional support)!

In the case of CLM, the 500-day continues to rise and it’s currently at 41 cents on this 8-year monthly chart.  This morning, CLM dropped as low as 38 cents.  A “sweet zone” for accumulation at the moment is between 35 cents, the rising 1,000-day SMA, and the low 40’s.  Reinforcing this as a “sweet zone” is Fib. support at 37 cents.

Furthermore, Slow Stochastics (SS) is in a low position (typically where big moves to the upside begin) while the ADX indicator confirms a bullish primary trend. The value of monthly charts is that they really give you an accurate picture of the main trend and where key support and resistance levels are.

The “Wave 4” move down to very strong support in the mid-to-upper-30’s is interpreted to be part of what’s called a 5-Wave Motive Phase – Wave would involve an explosive move to the upside to new highs.

CLM closed today at 40 cents (42 cents on the Venture).

Blue Moon Zinc Corp. (MOON, TSX-V) 

Blue Moon Zinc (MOON, TSX-V) was the Venture’s most active stock July 20, climbing as high as 10.5 cents on total volume of 8.7 million shares (all Exchanges) on news that the company has received all necessary drill permits (multi-year) for its planned exploration and development programs at its advanced Zinc-rich VMS deposit in the foothills of northern California.  Since then, MOON has pulled back to 8 cents where we continue to encourage accumulation because there’s a low-risk opportunity here for substantial gains over the next month or two.

Now that permitting issues are settled, next up is drilling which we believe will commence between the 2nd half of August and early September.

Three key facts to keep in mind:

  • Quality historic deposits such as Blue Moon’s (ignored for many years like Nickel Mountain) offer great exploration upside, and the updated NI-43101 resource estimate clearly supports the potential for expanding resources and putting this deposit into production
  • Technical expertise – President & CEO McGrath, a Canadian now living in the U.S., has assembled a strong team that can unlock the value of this deposit which features clean metallurgy and an in-situ resource of nearly 800 million pounds of Zinc, 70 million pounds of Copper, 11 million ounces of Silver and 300,000 ounces of Gold
  • A Preliminary Economic Assessment, to be completed after drilling, is expected to show robust economics

Getting this deposit to a 10-million tonne size and beyond – certainly more than enough for a long-term production scenario – seems very feasible given how it remains open in multiple directions with many promising untested areas.  What we love about these historic deposits is that a lot was typically missed by early explorers, and new models/new technology have created prolific new possibilities (look at the success Wolfden ResourcesWLF – is now starting to enjoy at depth at its Picket Mountain VMS deposit in Maine).  A set of fresh eyes could turn the MOON deposit into a huge winner.

Political developments and recent tax changes in the United States (the corporate tax rate has been slashed from 35% to 21%) have certainly made Blue Moon’s project much more attractive.

Ni-43-101 Resource Estimate

At a 5% ZnEq cut-off, the Blue Moon deposit features 3.2 million tonnes in the Indicated category grading 5.5% Zn, 0.62% Cu, 0.25% Pb, 1.35 ounces per tonne Ag and 0.04 ounces per tonne Au for an overall ZnEq grade of 9.0%.

Inferred resources at a 5% ZnEq cut-off are 3.3 million tonnes grading 5.4% Zn, 0.38% Cu, 0.38% Pb, 1.53 ounces per tonne Ag and 0.04 ounces per tonne for an overall ZnEq grade of 8.6%.

Higher Highs + Higher Lows!

Technically, MOON is exactly the type of situation astute traders and investors look for.  The stock is in a pronounced uptrend that started at the beginning of 2016, and since then a series of higher highs and higher lows have occurred.

  • RSI(14) has established strong support at 50% and is on the upswing again at 55%
  • ADX indicator confirms a decidedly bullish trend with room to strengthen
  • %K (Slow Stochastics) is reversing higher
  • Stock continues to follow a long-term uptrend line
  • Key resistance is 10 cents

A.I.S. Resources Ltd. (AIS, TSX-V)

We’re not pleased with A.I.S. Resources‘ (AIS, TSX-V) President and CEO Mark Enright-Morin who has proven to be weak in terms of his market skills, from news release communication to raising money.  The fact this stock erupted from 20 cents last summer to nearly $1.50 in January and Enright-Morin wasn’t able to capture the benefits of that leverage through a financing was enough in our view to have him ousted.

There are 3 pieces of good news, however:

  1. Changes appear to be on the way as AIS has recently completed an interesting deal with MGX Minerals (XMG, CSE).  MGX is run by the very astute Jared Lazerson whose company’s award-winning extraction processes and clean technologies could be a perfect fit for AIS’s Lithium assets.  The recent property deal completed between AIS and MGX is likely the beginning of a broader relationship;
  2. Permitting approval for drilling and development of AIS‘ flagship Guayatayoc Project in Argentina is imminent following a successful UGAMP meeting in early July;
  3. The company has enough money in its treasury, plus access to funds, to complete a significant first phase program at Guayatayoc and demonstrate that this could be a near-term Lithium brine producer.

Technically, a strong support band between 20 cents and 15 cents is expected to hold.  The potential is for a powerful turnaround within the next month or two.

Note:  John, Jon and Daniel hold share positions in CCW, GGI and MOON.  Jon also holds share positions in AIS and CLM.

May 27, 2018

Sunday Sizzler Report!

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