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October 3, 2017

The Template For The Next 10% Stake In Garibaldi Resources

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December 13, 2019

7 @ 7:00

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

1. Gold has traded between $1,466 and $1,476 so far today…as of 7:00 am Pacific the yellow metal is up $an ounce at $1,472Gold’s nearest resistance is in the high $1,480’s followed by $1,500…the bullish technical posture of many Gold producers suggests a breakout above $1,500 is in the cards for Q1Silver is unchanged at $16.90…Palladium continues to run, up another $29 an ounce at $1,954…Nickel is the star among base metals this morning, climbing 14 cents to $6.31…an exceptionally strong support band stretches from $6 to $5.50 and that’s where Nickel appears to have bottomed in its 4th correction since a new bull cycle started in 2016…Copper is trading at its best levels since July, thanks to a thawing of U.S.-China trade relations…the metal is steady at $2.77 after trading higher earlier in the session…China consumes half the world’s Copper and the dispute with the U.S. has weighed on the market since early 2018…given its widespread use in industry, construction, transport and power distribution the metal is very sensitive to global economic conditions…Zinc has added a penny to $1.03 while Cobalt is flat at $15.65Crude Oil has gained 17 cents a barrel to $59.35 while the Dollar Index has tumbled nearly half a point to 96.97…U.S. retail sales increased less than expected in November as Americans cut back on discretionary spending, which could see economists dialing back economic growth forecasts for the 4th quarter…the Commerce Department reported this morning that retail sales rose 0.2% last month…data for October was revised up slightly, but the November print was well below expectations of a 0.5% increase…

2. China is now holding a briefing regarding trade talks with the United States with word just out that the Chinese have agreed to the text of a trade deal…up until now, China had been quiet ever since news broke yesterday that the U.S. had agreed to a Phase 1 deal in principle…a notice to reporters a short while ago said China will discuss “issues on relevant progress of China-U.S. economic and trade consultation”America’s initial trade pact with China “looks like a real breakthrough”one expert says, marking President Trump’s 2nd victory this week on a key campaign promise (yet Democrats in the House, not focused on the priorities of taxpayers, are on the verge of impeaching Trump)…the Phase 1 agreement, which reportedly includes promises by Beijing to purchase $50 billion of U.S. agriculture, stronger intellectual-property protections and an end to China’s currency manipulation, will further cool the 21-month-long trade battle between the world’s 2 economic superpowers…the U.S. has agreed not to put 15% tariffs on $160 billion of Chinese goods on Sunday…“There’s a matter here that the Chinese may have given him so much that he doesn’t really want to embarrass them by making it all public so it may be a lower-level signing agreement, not him and President Xi and not some sort of long 20-page deal,” stated Michael Pillsbury, director of the Center for Chinese Strategy at the Hudson Institute, in an interview with FOX Business’ Lou Dobbs…

3. Socialists have been crushed in the UK (the U.S. is next, followed by Canada)…Prime Minister Boris Johnson will retain power with a thumping majority after his Conservative Party secured its best election result last night since 1987…with 1 seat still up for grabs, the Conservatives have secured 364 parliamentary seats, a majority of 78 in the House of Commons and a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union…Labour’s at 203 seats, the worst result for the party since 1935, after offering voters a 2nd referendum on Brexit and the most radical socialist government in generations…Labour leader Jeremy Corbyn said he would step down…markets liked the results – the FTSE 100 has shot up 2% while sterling has strengthened significantly against the greenback…early today, President Trump promised to move quickly on talks for a new U.S.-U.K. trade deal…“Britain and the United States will now be free to strike a massive new Trade Deal after BREXIT,” Trump tweeted…“This deal has the potential to be far bigger and more lucrative than any deal that could be made with the EU”

4. Canada Cobalt (CCW, TSX-V) has drilled into visually spectacular mineralization (massive native Silver and Cobalt) at Castle East, just 750 m from the old workings of the Siscoe (O’Brien) mine that churned out 41 million ounces of rich Silver in the prolific Gowganda Camp…assays from CCW’s first wedge hole, highlighted by 4.65 m of exceptionally high-grade mineralization given the extent of native Silver, are possible prior to Christmas…the Robinson Zone discovery, striking northwest-southeast and dipping to the south, is also within just 600 m of the past producing Capitol mine and 1.9 km from the Castle #3 Shaft…the vein shoot described by CCW in last night’s news release following an all-day trading halt matches the deposit model of this incredible district (Northern Ontario Silver-Cobalt Camp) that historically has produced over half a billion ounces of Silver, making it the most prolific primary Silver producing region in Canadian history as described by Peter Fancy in a riveting series of books (“Temiskaming Treasure Trails”)…the “low-hanging fruit” was picked off last century with more than 100 mines that made the region the birthplace of Canadian hard rock mining…however, modern exploration methods featuring new technologies are destined to discover a lot more deposits in an area with such impressive metal endowment, and Canada Cobalt is leading the way…it should come as no surprise, then, that a Kirkland Lake Gold (KL, TSX, NYSE) resource geologist – Matt Halliday – has switched teams to become CCW’s VP-Exploration starting this coming Monday…short wedge holes have been completed off CA-1108 (1,194 oz/ton over 0.45 m within 3.1 m core length @ 189 oz/ton), giving geologists a clear understanding of vein orientation while extending the shoot to at least 15 m…CCW has just commenced a series of new drill holes from surface to build out the discovery and hit potential new vein systems higher up in the system and even further at depth – should be lots of news flow as drilling continues right up until Christmas and resumes during the first week of January…this discovery, interestingly, occurs in the lower middle portion of the Nipissing diabase around a vertical depth of ~420 m – the upper contact closer to surface and the Archean package should be very prospective, while the lower contact deeper down could feature very rich Silver and Cobalt as well…plenty of potential scale here – keep in mind that historically, just a single shoot in this district that extends for just 100 feet has yielded millions of ounces of Silver due to such unusual grades…CCW is off half a penny at 41.5 cents through the first 30 minutes of trading, but this is the type of news that typically has a lot of legs and will give fresh oxygen to the overall CCW uptrend into Christmas and month-end…

5. The Dow is 16 points higher through the first 30 minutes of trading…the S&P 500 has rallied 26% this year, on pace for its best annual performance in 6 years…the rally has been underpinned by pro-growth policies from the Trump administration and a dovish Federal Reserve which has cut interest rates 3 times this year to shore up growth, a sharp reversal after 4 increases last year…the central bank wants to see significantly higher and sustained inflation before raising rates again, meaning no more rate hikes are likely until at least 2021…in Toronto, the TSX is up 26 points…the Gold Index is back above 250, up a point at 251 – it’s just a matter of time before there’s a confirmed breakout above that key 250 level…the Venture is 2 points higher at 539 as it continues to prepare for a breakout through 540…in the Northern Ontario Silver-Cobalt Camp they measure Silver in kilos – elsewhere, it’s in grams…nonethless, Kootenay Silver (KTN, TSX-V) delivered a healthy result yesterday as it reported 415 g/t Silver over 11.5 m (true width) in drill hole CDH-19030 at its Columbia Project (E and J veins) in Chihuahua state, Mexico…the intercept is within a new type of mineralization hosted within silicified breccias in close proximity to a district lithologic contact…the overall interval averaged 200 g/t over 25.85 m intercepting quartz veinlets and hydrothermal breccias across the J vein structure…GoGold (GGD, TSX) has just reported net income of $8.1. million (U.S.) on record revenue of $27 million for its fiscal year ending September 30 (net income included a gain on the sale of the Santa Gertrudis royalty of $11.8 million)…total precious metal sales were just over 1 million ounces of Silver and 8,752 ounces of Gold on record production of 1,781,080 Silver equivalent ounces, an increase of 37% from the prior year’s record…all-in-sustaining costs were $14.82 per Silver equivalent ounce (an average of $13.70 over the last 6 months)…GGD is unchanged at 61 cents…

6. The U.S. Army plans to fund construction of rare earths processing facilities, part of an urgent push by Washington to secure domestic supply of the minerals used to make military weapons and electronics, according to a government document seen by Reuters…the move would mark the first financial investment by the U.S. military into commercial-scale rare earths production since World War Two’s Manhattan Project built the first atomic bomb…it comes after President Trump earlier this year ordered the military to update its supply chain for the niche materials, warning that reliance on other nations for the strategic minerals could hamper U.S. defenses…China, which refines most of the world’s rare earths, has threatened to stop exporting the specialized minerals to the United States, using its monopoly as a cudgel in the ongoing trade spat between the world’s 2 largest economies…“The U.S. rare earths industry needs big help to compete against the Chinese,” said Jim McKenzie, CEO of UCore Rare Metals (UCU, TSX-V) which is developing a rare earths project in Alaska…“It’s not just about the money, but also the optics of broad support from Washington”…the Army division overseeing munitions last month asked miners for proposals on the cost of a pilot plant to produce so-called heavy rare earths, a less-common type of the specialized minerals that are highly sought after for use in weaponry, according to Reuters…responses are due by next Monday (Dec. 16)…UCore, Texas Mineral Resources (TMRC.PK) and a joint venture between Lynas (LYC, AX) and privately-held Blue Line are among the expected respondents, according to company officials…

7. The government of Ontario has announced it will abandon the current lottery system for cannabis retail and move towards an open licensing system beginning in January that will see the removal of a cap on the number of private cannabis stores across the province…the Alcohol and Gaming Commission of Ontario (AGCO), the provincial regulatory body that is in charge of the cannabis retail system, will begin accepting operator licence applications from prospective retailers on January 6, followed by store authorization applications on March 2, 2020, according to a Financial Post report this morning…store authorizations will be issued starting April at a rate of approximately 20 a month, similar to the pace in which Alberta awards cannabis store licences…“In response to the federal government’s decision to legalize cannabis, our government is determined to open the cannabis market as responsibly as possible,” said Attorney General Doug Downey…“We have said all along that opening more legal stores is the most effective way to combat the illicit market, protect our kids and keep our communities safe.  That is our number one priority”…the announcement is bound to reinvigorate investor confidence in cannabis companies, which has been waning partly because of limited accessibility in Ontario that has, to date, just 24 stores…licensed producers, many of which have experienced declining revenues and are sitting on a pile of cannabis inventory, are banking on the creation of hundreds of new retail outlets to boost cannabis sales…

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December 12, 2019

7 @ 7:00

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

1. Gold has traded between $1,470 and $1,488 so far today…as of 7:00 am Pacific the yellow metal is off $4 an ounce at $1,471…it firmed up yesterday following the final FOMC meeting of the year and then climbed further this morning until a tweet moments ago from President Trump who declared, “Getting VERY close to a BIG DEAL with China.  They want it, and so do we!”...Gold’s nearest resistance is in the high $1,480’s, as demonstrated again this morning, followed by $1,500Silver is now down 2 cents at $16.82 after climbing as high as $17.21…Palladium continues to surge, up another $22 an ounce at $1,918…base metals are getting support from a possible U.S.-China Phase 1 trade deal…Copper, trading at a 4.5-month high, is up slightly at $2.77…nearest resistance is the July high of $2.81…Nickel has advanced 6 cents to $6.24 while Zinc has added a penny to $1.02Crude Oil has gained 68 cents to $59.44OPEC says it now expects a small deficit in the Oil market in the next year, suggesting the market is tighter than previously thought – even before the latest pact with other producers to curb supply takes effect…the revised forecast by OPEC marks a further retreat from a prediction of a glut in 2020 as U.S. production growth begins to slow (perhaps only temporarily)…Crude Oil prices and energy stocks, often in lockstep, have split apart this year…as Crude prices have jumped significantly in 2019, Oil and gas stocks have mostly fallen…the Dollar Index has slipped nearly one-fifth of a point to 97.24…Conservative Prime Minister Boris Johnson is in a strong position to win a solid majority in today’s UK general election…the snap vote was called by the government due to parliamentary impasse over the Brexit deal he had negotiated with the EU…North Korea is asking for trouble…the rogue regime accused the United States of “hostile provocation” today for criticizing its ballistic missile tests during a United Nations Security Council meeting and warned that the Trump administration may have “blown its chance” to salvage nuclear negotiations…U.S. producer prices were unchanged in November, according to fresh data released this morning, as increases in food and gasoline prices were offset by declining costs for services, pointing to muted inflation despite a recent uptick in consumer prices…

2. Should the Federal Reserve be careful what it wishes for (more inflation?)…Fed Chairman Jerome Powell said yesterday that he’d prefer to let inflation rise and hold above the central bank’s target before considering future interest rate hikes, meaning there appears to be a lower threshold to reduce rates rather than to raise them…“In order to move rates up, I would want to see inflation that’s persistent and that’s significant,” Powell explained at his post-statement news conference…“A significant move up in inflation that’s also persistent before raising rates to address inflation concerns: That’s my view”concluding a year that saw the central bank take down its benchmark rate 3 times, the FOMC met widely held expectations yesterday and kept the funds rate in a target range of 1.5%-1.75%…meanwhile, the Fed’s updated “dot plot” chart released yesterday showed that most central bank officials don’t expect the Fed will need to raise rates until 2021

3. Canadian royalty and streaming company Triple Flag Precious Metals has cancelled its planned IPO, citing difficult market conditions, underscoring lacklustre demand for new issues in the mining sector…this would have been the biggest IPO in the sector in 2 years…Toronto-based Triple Flag, backed by hedge fund Elliot Management Corp., last month said it aimed to raise $360 million by selling 20 million shares at $15 to $18 each for a valuation of up to $2.12 billion…the company provides up-front financing to miners in exchange for future revenue or a share of production…the planned listing had been closely watched by investors…in a statement yesterday, Triple Flag said it had been encouraged by investor interest but that the environment for share offerings “continues to be challenging”…the company did not say when or if it would revisit markets…Triple Flag, led by a former Barrick Gold executive, holds royalty interests in Alamos Gold’s (AGI, TSX, NYSE) Young-Davidson mine in Ontario and Kirkland Lake Gold’s (KL, TSX, NYSE) Fosterville underground mine in Australia…lead underwriters for the offering included Bank of America Securities, CIBC World Markets and Scotia CapitalTriple Flag is the 2nd Canadian company to ditch plans for a public float in recent weeks…last month, waste management company GFL Environmental abandoned plans to raise up to $2.42 billion

4. Shares in Aramco jumped on their 2nd day of trading to reach Saudi Crown Prince Mohammed bin Salman’s coveted valuation target of $2 trillion…in early trading today the Oil giant’s share price on Saudi Arabia’s Tadawul exchange rose 8% to 38.15 riyals ($10.30 U.S.), giving the Oil giant a market capitalization of $2 trillion…that was up from a $1.7 trillion valuation set during the company’s IPO, the world’s largest ever…the shares increased 10% on their market debut yesterday, hitting an upward limit set by the exchange…the increase in value is partly a function of the outsize impact that the company’s tiny 1.5% share float has on its valuation…it took only $300 million in shares traded yesterday to drive the value of Aramco up by nearly $200 billion…at a price of 38 riyals, Aramco’s 1.5% free float means shares owned by the public are worth $30 billion

5. The Dow has shot up 208 points through the first 30 minutes of trading following President Trump’s tweet…an analyst at Credit Suisse says Apple’s iPhone sales in China fell sharply in November by 35.4% on a year-over-year basis…in Toronto, the TSX is up 62 points…the Gold Index quickly pushed as high as 254.52 in early trading until the Trump tweet and then backed off as Gold prices reversed – just a matter of time, however, before there’s a confirmed breakout above the key 250 level…the Venture is 2 points higher at 539 as it continues to prepare for a breakout through 540…as expected, Discovery Metals‘ (DSV, TSX-V) shareholders have passed a resolution approving 2176423 Ontario Ltd., a corporation beneficially owned by Eric Sprott, to become a control person…the conversion of Sprott’s subscription increasing to approximately 21%…Blue Moon Zinc’s (MOON, TSX-V) exploration partner, Australian-listed Platina Resources (PGM, ASX) has intersected massive and semi-massive sulphide mineralization in the 1st drill hole  of this year’s program at the Blue Moon Zinc-Copper-Gold Project in Mariposa County…hole BMZ79 intersected 40 m of mineralization from 410 m (core length), approximately 30 m from the mineralized intercept in BMZ78…the 2nd hole is now in progress…Westhaven Ventures (WHN, TSX-V) is up a penny at 88 cents after falling 12 cents yesterday on the latest drill results (very respectable but not spectacular) from Shovelnose, highlighted by SN-1926 which returned 42.8 m @ 2.6 g/t Au and 27.8 g/t Ag, including 15.46 m of 4.8 g/t Au and 61.2 g/t Ag in Vein Zone 1…Vein Zone 1 has been extended by 460 m to a total strike length of 1.3 km…the company has also staked an additional 21 sq. km on the northeastern border of the Shovelnose claim package…

6. The U.S. Army plans to fund construction of rare earths processing facilities, part of an urgent push by Washington to secure domestic supply of the minerals used to make military weapons and electronics, according to a government document seen by Reuters…the move would mark the first financial investment by the U.S. military into commercial-scale rare earths production since World War Two’s Manhattan Project built the first atomic bomb…it comes after President Trump earlier this year ordered the military to update its supply chain for the niche materials, warning that reliance on other nations for the strategic minerals could hamper U.S. defenses…China, which refines most of the world’s rare earths, has threatened to stop exporting the specialized minerals to the United States, using its monopoly as a cudgel in the ongoing trade spat between the world’s 2 largest economies…“The U.S. rare earths industry needs big help to compete against the Chinese,” said Jim McKenzie, CEO of UCore Rare Metals (UCU, TSX-V) which is developing a rare earths project in Alaska…“It’s not just about the money, but also the optics of broad support from Washington”…the Army division overseeing munitions last month asked miners for proposals on the cost of a pilot plant to produce so-called heavy rare earths, a less-common type of the specialized minerals that are highly sought after for use in weaponry, according to Reuters…responses are due by next Monday (Dec. 16)…UCore, Texas Mineral Resources (TMRC.PK) and a joint venture between Lynas (LYC, AX) and privately-held Blue Line are among the expected respondents, according to company officials…

7. Cannabis retailers in Ontario sold the most cannabis of any province in the first year following legalization, even though there was only one online store and 24 brick-and-mortar stores in operation for most of that period, according to new Statistics Canada data…Ontario accounted for $217 million in recreational cannabis sales, or 24% of the overall Canadian market, from October 2018 to September 2019, followed by Alberta and Quebec, which sold $196 million and $195 million worth, respectively…on a per capita basis, Alberta leads the way in sales – no surprise as they’ve reached out to the private sector more than any other province…the year following legalization saw more than 400 brick-and-mortar stores established across the country…total adult-use cannabis sales from online retail stores amounted to $908 million for that period, far short of many estimates prior to legalization…

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December 11, 2019

7 @ 7:00

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

1. Gold has traded between $1,462 and $1,469 so far today…as of 7:00 am Pacific, the yellow metal is up $4 an ounce at $1,468Silver is 4 cents higher at $16.67…Palladium, on a 13-session winning streak, is up $13 an ounce at $1,892…it zoomed past $1,900 for the first time ever yesterday as a power crisis halted production at mines in major producer South Africa, exacerbating concerns over supply and extending the autocatalyst’s record run…South Africa produces 40% of the world’s Palladium…Copper, looking much better these days, has added 2 pennies to $2.76…Nickel has rebounded 13 cents to $6.13…a strong band of technical support stretches from $6 to $5.50 as the metal bottoms in its 4th correction since 2016…Zinc and Cobalt are quiet at $1.01 and $15.65, respectively…Crude Oil has backed off 9 cents to $59.15 while the Dollar Index is relatively unchanged at 97.45…the Federal Reserve is expected to conclude its December meeting this afternoon by signaling it’s in no hurry to do anything to change its neutral stand on interest rates…the Fed releases its post-meeting statement at 11:00 am Pacific…no significant changes are expected from the previous statement but the Fed will release its interest rate forecast and latest economic projections at the same time, and it could show some improvement particularly after November’s increase in payrolls of 266,000…inflation remains muted…it was reported this morning that the U.S. Consumer Price Index rose 0.3% in November after a 0.4% rise in October…stripping out volatile food and energy prices, core inflation rose by 0.2%, in line with expectations…will there be an “eleventh hour” announcement about a U.S.-China trade deal on Saturday night?…more tariffs – 15% on about $160 billion in Chinese exports to the U.S. – are set to kick in on Sunday as both economies remain locked in negotations for a Phase 1 agreement…the Wall Street Journal has reported that both countries are taking steps to delay those tariffs…the European Central Bank will hold its first monetary policy meeting and news conference with Christine Lagarde as President tomorrow…polling shows that British Prime Minister Boris Johnson is on track to win a solid majority in tomorrow’s election…the main opposition Labour Party promises a new referendum on Brexit as well as renationalization of utilities and railroads in its most left-wing platform in decades…America’s liberal mainstream media strikes again – 16 year-old climate activist Greta Thunberg has become the youngest individual ever to be named TIME’s Person of the Year…TIME concluded, “She has succeeded in creating a global attitudinal shift, transforming millions of vague, middle-of-the-night anxieties into a worldwide movement calling for urgent change.  She has offered a moral clarion call to those who are willing to act, and hurled shame on those who are not”

2. Saudi Aramco, the world’s largest IPO, surged past expectations as it debuted on the country’s stock exchange this morning…shares of the state-owned Oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit…the price gives it a valuation of $1.88 trillion and makes it the largest listed company in the world, comfortably ahead of Microsoft and AppleAramco’s public debut, which listed 1.5% of its shares locally on the Saudi Tadawul, is the biggest on record – topping the $25 billion Alibaba raised when it went public in September 2014…the long-awaited IPO of world’s most profitable company forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 program aimed at transforming the Saudi economy…the crown prince first floated the idea in 2016, stunning market observers by suggesting a head-spinning valuation of $2 trillion…that figure was brought down by financial advisors and banks earlier this year to a range of between $1.5 trillion and $1.7 trillion

3. Chevron (CVX, NYSE) is writing down the value of its assets by more than $10 billion, a concession that in an age of abundant Oil and gas some of its holdings won’t be profitable anytime soon…in the largest write-down by an energy producer in years, Chevron said yesterday that it was cutting the value of a number of properties, notably its U.S. shale holdings in Appalachia, by a combined $10 billion to $11 billion…the company is also restructuring its operations to focus on fewer prospects in the face of persistently low natural gas prices, and will explore sales of some assets including its interest in the Kitimat LNG Project in northwest British Columbia…Chevron said it will keep its 2020 capital budget at $20 billion (U.S.), the 3rd consecutive year it hasn’t boosted spending…U.S. natural gas futures prices have slumped this year amid a supply glut, and are now averaging about $2.54 per million British thermal units…this could turn out to be the lowest average price for natural gas in any year since 1999

4. Gold should benefit from continued “ultra-loose” monetary policy in 2020, rising to an average price of $1,550 an ounce in the 4th quarter of the New Year, Commerzbank says…Silver and Platinum are likely to ride the coattails of Gold higher, analysts said…however, the bank looks for high-flying Palladium to finally run into an “overdue correction” and push lower…Gold has backed down from its early-September high just shy of $1,560 an ounce, but still remains 14% stronger for the year, Commerzbank pointed out…this would be the best annual gain since 2010“We envisage an increase to $1,550 per troy ounce by the end of 2020.  The high optimism among speculative financial investors and the subdued demand in Asia will initially preclude any higher prices, so we expect to see the lion’s share of the upswing in the 2nd half of the year.  Monetary policy pursued by the major central banks will remain ultra-loose.  Admittedly, the U.S. Fed ruled out any further rate cuts.  All the same, they are not entirely off the table, and are still more likely than rate hikes”

5. The Dow is up slightly through the first 30 minutes of trading…companies are on track to raise more money through initial public offerings on NASDAQ this year than on the New York Stock Exchange, the first time that has happened since 2012’s bungled Facebook (FB, NASDAQ) offering…in Toronto, the TSX is up 51 points as Gold stocks push higher…the Gold Index is up 3 points at 248 – just a matter of time before there’s a breakout above the key 250 level…the Venture is a point higher at 538 as it continues to prepare for a breakout through 540Barrick Gold (ABX, TSX; GOLD, NYSE) is well on its way to achieving its goal of raising $1.5 billion in cash as it sells its stake in another non-core asset…Barrick announced yesterday that it’s selling its 90% stake in the Massawa project in Senegal to Teranga Gold (TGZ, TSX) for $430 million…the stock-and-cash deal consists of $300 million in cash with $80 million worth of Teranga shares…Massawa is one of the highest-grade undeveloped open-pit Gold reserves in Africa…Teranga has also arranged a $140 million financing at $5.10 per share…investors have reacted positively to the deal…Teranga has eased off 17 cents to $6.02 in early trading after surging 56 cents yesterday on high volume…

6. This BEE keeps buzzing:  Bee Vectoring Technologies (BEE, TSX-V) announced this morning that it has filed an international patent application for the latest version of its honeybee hive dispenser system that the company has tested and is bringing to market…“The agricultural industry is in the midst of a new green revolution, and the company’s more cost effective and highly targeted delivery systems will assist with the increased adoption of new biological compounds currently being developed to replace more chemicals,” stated CEO Ashish Mailk…this application strengthens the patent protection for the honeybee system by building on the previously filed application…the system is computer-controlled, enabling metered and uniform delivery of plant protection products to crops using commercial honeybees…this is the latest product addition to BVT’s natural precision agriculture system…patents are one of BVT’s key strategies to ensure legal protection as the company continues its post-EPA approval commercial expansion…“The cost to growers will be reduced as only minimal amounts of natural product is required, less than 1% of the amount used in conventional spraying, since bee vectoring enables the delivery of product to where it will do the most good, the blooms,” Mailk added…the new honeybee system is part of BVT’s growth strategy to increase its addressable market fully to include the entire estimated 2.5 million commercial bee hives in the U.S. and 91 million worldwide…leveraging both honeybee and bumblebee systems extends the company’s market reach of crops in all markets, which means the company can address 100% of the bee vectoring market for flowering crops…this includes high volume crops such as almonds, sunflowers and apples and high value crops such as blueberries, melons, strawberries and raspberries…BEE is up 2 cents at 43 cents as of 7:00 am Pacific

7. Pan American Silver (PAAS, TSX, NYSE), which has been a superb market performer this year, has released an initial mineral resource estimate for the large polymetallic deposit discovered last year at the company’s La Colorada mine in Zacatecas, Mexico…the Inferred mineral resource totals 72.5 million tonnes, averaging 44 g/t Silver, 0.17% Copper, 2.02% Lead and 4.40% Zinc, assuming a cut-off value of $60 (U.S.) per tonne after accounting for transportation, smelting and refining costs…the deposit remains open in nearly all directions for resource expansion…“The initial inferred mineral resource estimate containing 102 million ounces of Silver and a large volume of base metals indicates the significance of this new discovery,” stated Christopher Emerson, Pan American’s VP for Business Development and Geology…“In just over a year since we first announced the discovery, we have completed 54,000 m of drilling into the deposit and developed the geological model for this initial resource estimate.  An aggressive drilling program is planned for 2020 to further explore the deposit’s potential”

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December 9, 2019

7 @ 7:00

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

1. Gold has traded between $1,460 and $1,466 so far today…as of 7:00 am Pacific, the yellow metal is up $3 an ounce at $1,462Goldman Sachs says the “strategic case is still strong” for investing in Gold and has reiterated its call for the precious metal to rise to $1,600 an ounce next year…“Overall, while we acknowledge the risks related to still-high Gold positions, we believe the strategic case is still strong, particularly for investors with long-term horizons.  This is based on a deteriorated attractiveness of long term DM [developed-market] bonds as portfolio diversifiers and real return generation instruments, exposure to growing EM [emerging-market] wealth, limited mine supply growth, elevated political risks and a potential increase in debasement concerns sparked by rising airtime of Modern Monetary Theory”…Silver is 4 cents higher at $16.60Copper has added 3 pennies to $2.72…China’s imports of Copper in November rose 12.1% on the previous month as an improvement in the manufacturing sector stoked higher demand for the red metal…Nickel remains under pressure (see below), off 8 cents at $5.98, while Zinc and Cobalt are both flat at $1.02 and $15.88, respectively…Crude Oil has backed off 37 cents to $58.83 after surging 7% last week on fresh OPEC-led production cuts…the Dollar Index has retreated one-tenth of a point to 97.59…Paul Volcker, the Federal Reserve Board chairman who vanquished the inflationary upsurge that sapped America’s global prestige and power in the 1970’s and early 1980’s, has died at the age of 92

2. Saudi Arabia spearheaded a deal on Friday that will see OPEC and other allied producers (OPEC+) commit to some of the sector’s deepest output cuts in a decade (the U.S. comes out the big winner, plus Aramco investors – the largest of which is Saudi Arabia)…the Saudis, together with Russia, backed a plan that could see cuts of as much as 2.1 million barrels a day…the figures include an extra 500,000 b/d in cuts to take the OPEC+ target to 1.7 million b/d, or 1.7% of global demand, plus Saudi Arabia will continue to cut 400,000 b/d more than its quota…OPEC+, which includes more than 20 producers, pumps more than 40% of the world’s Oil…the group is taking action ahead of expected output increases next year by countries not participating in the cuts led by new top producer the United States…OPEC+ will meet again in early March to decide its next move…meanwhile, Prince Abdulaziz predicts that Saudi Aramco’s $1.7-trillion IPO valuation would soon soar above the level long coveted by his brother, Crown Prince Mohammed Bin Salman…Aramco will be higher than the $2 trillion, and they can bet that this will happen,” Prince Abdulaziz said…the state-controlled company would reach that valuation “in a few months” after its shares start trading later this week, he added…

3. Investors are anxiously waiting to see whether a new round of tariffs on Chinese consumer goods takes effect next week, one of the few remaining hurdles for the broader equity markets in 2019…chances are the Trump administration’s December 15 deadline for new tariffs on China will be delayed while talks continue between the U.S. and China…despite fears that trade uncertainty would continue denting the world economy, activity picked up in the global manufacturing and services sectors last month, purchasing managers’ indexes show…many central banks have also slashed borrowing costs to support growth, and inflation is nowhere in sight thanks in part to continued low Oil prices…in the U.S., employers continue to hire at a steady pace (November was a banner month), bucking the mainstream view that tariffs would cause a sharp slowdown in the labor market…American consumers account for more than two-thirds of economic output and have shown few signs of limiting spending…

4. China’s exports in November shrank for the 4th consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. trade battle, but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand…imports unexpectedly rose 0.3% from a year earlier, according to fresh data released yesterday, marking the first year-on-year growth since April and compared with a 1.8% decline forecast by economists…China’s trade surplus for November stood at $38.73 billion, compared with an expected $46.30 billion surplus in the poll and a $42.81 billion surplus recorded in October…meanwhile, China’s official factory activity gauge returned to growth for the first time in 7 months in November, with a private survey showing activity expanding at the quickest pace in almost 3 years…falling industrial profits and factory prices remain a concern, however…

5. Nickel is most of the way through a 4th major correction since a new bull market started in early 2019…$5.50 to $6.00 is the bottoming area based on our latest charts…the metal is once again being pulled in 2 different directions…a weak stainless steel market has been pushing Nickel prices down at the same time as increasing EV demand empties LME warehousesa sharp fall in LME inventory threatens a repeat of the time-spread turbulence that rocked the London market during Q3…headline exchange inventory has fallen to 68,922 tonnes from 152,604 tonnes…moreover, 42% of that is awaiting physical load-out leaving a mere 39,588 tonnes of what the LME terms “live” tonnage…while Nickel may be on the electric vehicle investment grid because of its widespread use in Lithium-ion batteries (Nickel demand for EV batteries will ramp up significantly next decade), an old driver is reasserting itself – namely the state of the stainless steel market…demand for stainless steel, which accounts for most of the world’s Nickel usage, has been “depressing” everywhere but China, according to analysts at JP Morgan (“Metals Quarterly” Nov. 22, 2019)…the bank is forecasting that stainless steel production in the rest of the world will fall 1.7 million tonnes this year, a contraction of 7% and the sharpest year-on-year decline since 2009…production in China, however, continues to grow (12.6% in the first 9 months of 2019), and it’s outpacing demand growth at the moment…as a result, stainless steel stocks are building at China’s exchanges and along the broader supply chain, and prices have been falling…since launching in late September the Shanghai Futures Exchange stainless steel contract has dropped from 15,575 yuan per tonne to today’s just below 14,000…Chinese production margins have been negative almost the entire year, according to Goldman Sachs, but producers are caught in a “prisoner’s dilemma” and aren’t cutting production to balance the market because each fears losing market share if others don’t join in (“Metals: The ‘Prisoner’s Dilemma’ of China’s Stainless Steel Industry,” Dec. 4, 2019)…capacity utilization therefore remains high, as does demand for Nickel units, a big factor in its outperformance this year relative to its base metal peers…JP Morgan thinks the Chinese stainless steel stand-off is unsustainable and expects mills to start curtailing production into 2020, while Goldman Sachs is not so sure, arguing that only small high-cost producers will be washed out of the market…

6. The Dow is 35 points lower through the first 30 minutes of trading after strong gains to finish last week…in Toronto, the TSX is flat while the Venture – up in 10 out of the last 13 sessions – has added another 2 points to 540…the Index will accelerate to the upside on a breakout through 540Kirkland Lake Gold (KL, TSX, NYSE) has acquired a 9.9% interest in Wallbridge Mining (WM, TSX), pursuant to WM’s mysterious $42 million private placement announced (and closed) on November 29…in addition, KL President and CEO Tony Makuch has joined WM’s board of directors…“We are excited to have Kirkland Lake as a strategic shareholder and we welcome Tony Makuch to the team as a member of the Board of Directors,” stated Wallbridge Chair Alar Soever…“Tony’s extensive experience in operations, resource development, capital markets and M&A will be very beneficial to all shareholders as we advance Fenelon toward production”WM has pushed to a new high, up 6.5 cents at 85 cents as of 7:00 am PacificWallbridge neighbor Balmoral Resources (BAR, TSX) has added a penny-and-half to 32.5 cents…Canada Cobalt (CCW, TSX-V), on the cusp of a potentially significant new high-grade Silver discovery in Northern Ontario, is up a penny at 42.5 cents near a fresh 9-month high…Gran Colombia Gold (GCM, TSX) has produced a new monthly record of 21,835 ounces of Gold in November, surpassing its previous best month in February earlier this year…this brings the total for the first 11 months of 2019 to 217,600 ounces, up 9% over the first 11 months of 2018…CEO Lombardo Paredes stated, “We are on track to finish the year in the upper end of our production guidance range of 225,000 to 240,000 ounces of Gold.  Our mining operations at Segovia continue to deliver on expectations and, for the 2nd consecutive month, we have realized an improvement in the head grades at Marmato, setting us up nicely as we proceed with the spin-out of the mine to Caldas Gold as part of our initiative to unlock value in our Zona Baja mining assets at Marmato”

7. Canopy Growth (WEED, TSX; CGC, NYSE) is pushing higher in early trading after news that Constellation Brands’ (STZ, NYSE) Chief Financial Officer David Klein has been appointed the new CEO of Canopy, approximately 6 months after former co-CEO and founder Bruce Linton was ousted from his role…Klein will take over from interim CEO and co-founder Mark Zekulin, who will be stepping down from his position effective December 20, according to this morning’s statement…“It has been an incredible 6 years at Canopy Growth, and I have witnessed the team and company grow from 5 people in an abandoned chocolate factory, to thousands of people across 5 continents,” said Zekulin…Klein stated, Canopy Growth sits at the forefront of one of the most exciting new market opportunities in our lifetime.  Thanks to the efforts of Mark and the entire team at Canopy Growth, no company is better positioned to win in the emerging cannabis market.  I look forward to working with the team to build on the foundation that has been laid, to develop brands that strongly resonate with consumers, and to capture the market opportunity before us.  Together we will drive sustainable, industry-leading growth that benefits employees, shareholders and the communities in which we operate”

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December 6, 2019

7 @ 7:00

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

1. Gold has traded between $1,481 and $1,460 so far today…as of 7:00 am Pacific, the yellow metal is off $14 an ounce at $1,461 on a knee-jerk reaction to a very strong U.S. jobs report…meanwhile, White House economic adviser Larry Kudlow just told CNBC that a U.S.-China Phase 1 trade deal is “close” as “intense” discussions continue, but President Trump is prepared to “walk away” if some conditions are not met…Silver is also under temporary pressure, off 33 cents at $16.60…the TSX Gold Index, however, is holding up relatively well, down less than 3 points at 245.18TD on Gold: “Loss-aversion will be a growing theme next year because real rates are subdued around the developed world, which will drive capital towards ‘safe assets’, which are scarce.  CTAs are eyeing a break north of $1,500/oz to add to their length.  We suspect that a break north of this range would kick-start the next leg of the yellow metal’s rally”...Palladium also looks good in the new year with prices potentially heading to $2,000, according to TD“Palladium continues to make new all-time highs as the ‘ESG’ trend is gathering steam, and will result in increasing emissions controls across the globe – 2020 will be the year in which the largest number of emissions legislation changes will be adopted, which will continue to increase loadings”…base metals are up modestly this morning…Nickel has added 3 cents to $6.05, Copper is 2 cents higher at $2.67 while Zinc is up slightly at $1.02…Cobalt remains unchanged at $16.10…Crude Oil is pushing to the upside, gaining nearly $1 a barrel to $59.38 on news that energy ministers from some of the world’s largest Oil producers have agreed to deepen recurring production cuts by an additional 500,000 barrels a day through March 2020…the Dollar Index has rebounded one-quarter of a point to 97.64…there are at least 2 Democrats in the U.S. House of Representatives with common sense…Rep. Jeff Van Drew of New Jersey says he plans to vote against all the articles of the Trump impeachment “unless there’s something that I haven’t seen, haven’t heard before”…he‘s warning Democrats to “be careful what you wish for” and he added that impeachment “is tearing the nation apart”…meanwhile, Minnesota Rep. Collin Peterson will also be voting against impeachment…“I don’t have an idea what they’re doing,” he said…House leader Nancy Pelosi, pushed by the radical far left in her party, is taking the Democrats on a suicide mission…more than 30 House Democrats in pro-Trump districts are in serious danger of being defeated next November as the House potentially flips from the Democrats to Republicans…

2. The Trump economy, unlike its Canadian counterpart weighed down by Trudeau’s anti-growth policies, was a job-creation machine in the month of November as non-farm payrolls surged to 266,000 while the unemployment rate fell to 3.5%, according to Labor Department data released this morning…those totals easily beat the Wall Street consensus…jobs growth was the best since January…the return of GM workers following a lengthy strike certainly helped, but even if you stripped that out of the equation the jobs gain was still well above 200,000…meanwhile, wages advanced a respectable 3.1% from a year earlier, slightly down from the prior month’s pace…the wage gains easily outpace tepid overall inflation but are still modest relative to other periods with historically low unemployment (retirement of highly paid baby boomers could be one of the factors)…

3. Why is it that the United States could post such robust job numbers in November while the Canadian economy suffered its biggest monthly job loss since the financial crisis?…the answer is quite simple, actually – Trump the businessman understands how an economy works, Trudeau the two-faced drama teacher does not…Stats Canada reported this morning that the Canadian economy LOST a staggering 71,200 jobs last month and the unemployment rate rose 4-tenths of a percentage point to 5.9% to its highest level since August 2018 when it hit 6%…the loss in jobs came as both full-time and part-time employment moved lower…the number of full-time jobs fell by 38,400 while part-time employment fell 32,800…the goods-producing sector lost 26,600 jobs in the month as the number of manufacturing jobs fell by 27,500 and the natural resources sector shed 6,500 positions…yes, another 6,500 jobs wiped out in the resource sector – part of that of course from Oil drilling rigs heading south to friendlier territory…

4. Yesterday’s Liberal Throne Speech means more of the same from the federal government when it comes to the West and the resource sector – in fact, Trudeau is doubling down on “fighting climate change” (that’s the overarching, #1 cause for this federal government) and his left-wing agenda…not surprisingly, Bloc Québécois leader Yves-François Blanchet said he would vote in favour of the Throne Speech because he saw opportunities to “make gains for Quebec”…he added that it was easier for him to vote in favour because there was nothing specifically about Oil in the speech (not a single word about the Trans Mountain Pipeline or the Oil and gas sector in general)…the Liberals only need the support of their leftist Bloc or NDP friends to get any House of Commons vote passed…Alberta Conservative MP Michelle Rempel vented her frustration on Twitter after the speech, “The ‘time continuum’ and ‘spaceship earth’ got more airtime and detail in Trudeau’s list of priorities for Canada than the workers in my province,” she wrote…

5. The Dow has shot up 286 points through the first 30 minutes of trading…in Toronto, the TSX has gained just 125 points while the Venture has slipped a point to 536…Eric Sprott, one of Kirkland Lake Gold’s (KL, TSX, NYSE) top 3 shareholders, now says he intends to vote for KL’s all-stock acquisition of Detour Gold (DGC, TSX)…initially undecided, Sprott said he came around after studying up on Detour and reflecting on Kirkland’s plans to boost performance at the struggling low-grade miner…Kirkland says it can materially increase Detour’s production over the next few years, and slash its costs…“I think it would be a pretty good cash-generating machine,” Sprott said of DetourKinross (K, TSX) says it’s selling its remaining shares of Lundin Gold (LUG, TSX) for $150 million (CDN)…Lundin Gold is developing the rich Fruta del Norte Gold Project in Ecuador…the mine is expected to produce 310,000 ounces Gold per year at an all-in-sustaining cost of just $583 (U.S.) per ounce…Kinross sold Fruta del Norte to Lundin Gold in 2014 for $240 million…buyers of Kinross‘ remaining 9.2% interest in Lundin Gold include Newcrest Mining and the Lundin Family TrustEskay Mining (ESK, TSX-V) actually halted its stock yesterday for news that it had closed a non-brokered private placement that raised hard dollars totalling $402,000 (3.35 million units at 12 cents per unit) and flow-through of $40,000 (250,000 units @ 16 cents per unit), notable only for the fact it’s the smallest raise of any company in the district this year…

6. Great Bear Resources (GBR, TSX-V) is significantly expanding its continuing drill program at its flagship Dixie Project in the Red Lake district of Ontario, from 90,000 m to 200,000 m…the company will be adding additional drill rigs beginning in January…the expanded program remains fully financed with a 2020 budget of $21 million, and the company has the ability to further augment the program with cash on hand…Great Bear currently has $31 million in cash and an additional ~$10-million of in-the-money warrants for a total potential cash position of approximately $41 million…the expanded Dixie exploration program will continue year-round and has a $21 million budget…drilling will focus on 1) Known Gold zones at the LP fault, Hinge zone, Dixie limb and North fault; and 2) Additional new targets across the 22-km strike length of the Dixie Property…higher-capacity drill rigs have been mobilized to the property to increase production rates at shallow depths and to allow penetration of up to a depth of 2,000 m as may be required…Chris Taylor, President and CEO of Great Bear, commented, “We are about to undertake one of Canada’s largest Gold-focused exploration drill programs in 2020, as we expect to have completed over 200,000 m of drilling by the end of next year.  It’s remarkable to think that when our drilling began 2 years ago, the Hinge zone and the multiple zones along the LP fault were still waiting to be discovered.  As we enter 2020, over 80% of the Dixie Property remains to be explored.  With over $30 million on hand, more and larger drill rigs, and the knowledge we’ve gained through our ongoing successes, we can now further accelerate that discovery process.  We anticipate 2020 will mark our most exciting year to date”…

7. Alberta’s new pro-energy government approved a new project by Grizzly Oil Sands yesterday – unbelievably, this Grizzly was in hibernation for 6 years as that’s how long this approval has taken thanks to the previous NDP government and the Progressive Conservatives before them…it’s a small example of a big problem in terms of what’s wrong with Canada right now – this country’s inability to push projects forward in a timely manner…the May River Project approximately 130 km southeast of Fort McMurray would produce 12,000 barrels a day in a first phase before eventual output of about 80,000 barrels a day, Grizzly President Serge Bisson confirmed…“Approval like this is extremely material for our company and allows us to move forward with our business,” Bisson said, noting the 6-year wait has been excruciating…”We’re very excited about the development opportunity here”

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December 5, 2019

7 @ 7:00

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

1. Gold has traded between $1,472 and $1,479 so far today…as of 7:00 am Pacific, the yellow metal is up $2 an ounce at $1,476…Silver has added 6 cents to $16.88…the $1,440’s remain a major support area for Gold while nearest key resistance is around $1,490 where the declining 50-day moving average (SMA) coincides with the top of what’s interpreted to be a bullish downsloping wedge on our short-term chart…provisional estimates indicate India’s Gold imports rose to a 5-month high in November and the local market swung to a premium…“For now, the physical market is providing a sufficient cushion against the downside, and we believe the macro environment presents upside risk to prices in 2020,” stated Standard Chartered…Nickel has rebounded 12 cents to $6.08…Copper is steady at $2.65…Zinc is off a penny at $1.02 while Cobalt remains unchanged at $16.10…Crude Oil has jumped another 47 cents a barrel to $58.90OPEC members are meeting today and tomorrow and are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year…the Dollar Index has lost one-quarter of a point to 97.42…China’s official spokespeople are keeping quiet on trade talks with the U.S. amid growing uncertainty on when a Phase 1 agreement can even be reached…“China believes if both sides reach a Phase 1 agreement, relevant tariffs must be lowered,” Gao Feng, Ministry of Commerce spokesman, said today, according to a CNBC translation of his Mandarin-language remarks…the comments reiterated the position Beijing has expressed in the last few weeks, since both countries indicated a rollback of tariffs would be part of a so-called Phase 1 agreement…

2. Record highs in U.S. equity markets and renewed strength in the U.S. dollar weighed on Gold and led to ETF funds posting broad-based outflows last month, according to the latest data from the World Gold Council (WGC)…in its monthly ETF report, the WGC said that the Gold market saw $1.3 billion in outflows across all regions in November…but it’s not all bad news for the precious metal as holdings are still up significantly on the year…“Overall, global Gold-backed assets under management grew 35% this year as a result of increased investment demand and price appreciation,” the WGC said in its report…looking at the regional breakdown, North American funds saw the biggest outflows of 17.3 tons valued at valued at $731 million due to a strong U.S. dollar and equities at their best levels since June…meanwhile, European funds, led by U.K.-listed ETFs, had outflows of 13.3 tons valued at $538 million…the WGC noted that investor sentiment shifted in November as the deadline for the U.K. to leave the European Union was pushed to 2020…in Asia, the regional markets saw outflows of 2.1 tons valued at $119 million…the WGC noted that the outflows came as Gold prices fell 3.4% from October’s highs…however, even with November’s decline, prices are up 14% for the year…the WGC is optimistic that ETF demand will remain strong through 2020“Uncertainty surrounding 2020 Fed expectations, together with increased bullish market sentiment, is set to impact Gold’s price performance”

3. Gold miners look set to extend a deal spree into 2020 after notching transactions worth a record $30.5 billion this year, eclipsing the previous M&A binge when bullion prices peaked nearly a decade ago…led by top producers Newmont Goldcorp (NGT, TSX; NEM, NYSE) and Barrick Gold (ABX, TSX; GOLD, NYSE), miners are bulking up to replace dwindling reserves and win back investors who in recent years shunned the sector because of disappointing returns…this year has seen a whopping 348 deals worth more than $30.5 billion, including net debt, according to Refinitiv Eikon data…that’s up from $10.8 billion last year and surpasses a previous high of $25.7 billion set in 2010, the data show…Gold topped $1,900 per ounce in 2011, more than $400 higher than it is now, but the yellow metal has also hit new record highs this year in multiple currencies…nonetheless, the 2011 Gold boom prompted buyers to overspend on acquisitions, leading to billions in impairments when prices crashed in subsequent years…this time, acquirers are being more cautious as the premiums linked to recent sector transactions are far below those paid in the previous price boom…

4. Amex Exploration (AMX, TSX) has cut 41.3 g/t Au over 4.1 m in drill hole PEG-19104including 202.8 g/t Au over 0.80 m, in the Upper Gratien Zone at its Perron Project near Rouyn-Noranda…this intercept occurs at a shallow depth of about 65 vertical m…the Upper Gratien is an emerging new zone which has returned higher-grade intercepts than previously identified, indicating the potential of multiple high-grade lenses within the overall large (1+ km) kilometre) Gratien Gold system…meanwhile, drilling continues to define and expand mineralization at the Eastern Gold Zone (EGZ) where intercepts reported this morning included 2.8 g/t Au over 12.3 m (including 23.06 g/t over 0.70 m) in PE-19105 at a vertical depth of about 325 m, and 4.8 g/t Au over 4.2 m (including 26.2 g/t over 0.70) in PE-19109 (including 26.2 g/t over 0.70 m) at a vertical depth of about 325 m…Kelly Malcolm, VP-Exploration of Amex, commented, “I am very pleased with the high-grade intercept in the Upper Gratien zone, which is the strongest mineralization, on a metal factor basis, that has been identified in that zone to date.  The possibility of a multitude of high-grade lenses within the broader kilometre-long Gratien system is encouraging when contemplating either open-pit or underground mining scenarios.  The Eastern Gold zone also continues to intersect meaningful intervals in both the HGZ and Denise zone which continue to define and expand the system.  We are awaiting assays on a number of additional drill holes, many of which encountered visible Gold…the 3rd drill, which is scheduled to arrive on January 6, will be dedicated to the regional exploration program comprising approximately 20,000 m, of the 100,000 m drill program, targeting additional high-grade Gold mineralization in the underexplored portions of the highly prospective Beaupre rhyolite block…in addition, the company recently completed a 600-line-km survey of high-resolution drone magnetics at a very tight line spacing of 25 m, flown at a low altitude…AMX is up 2 pennies at $1.37 in early trading…technically, the stock has broken out above important resistance in the $1.20’s

5. The Dow is off slightly (33 points) points through the first 30 minutes of trading…in Toronto, the TSX has lost 61 points…the Gold Index, threatening to break out above 250, is up half a point at 247.32…the Venture has posted gains in 9 out of the last 11 sessions, unusual for this time of year and indicative of what could be a powerful finish to December and a strong start to 2020…the Venture is currently off 1 point at 539White Gold (WGO, TSX-V) announced this morning that it has staked 3 strategic claim blocks (Kodiak, Kirkman and Tea), totalling 689 claims, contiguous to its White Gold Property, Newmont Goldcorp’s Coffee Project and Western Copper and Gold’s Casino Project, all located in the prolific White Gold district in Yukon…the claims bring the company’s expansive land package to 21,207 quartz claims across 33 properties, totalling over 422,730 hectares, representing over 40% of the White Gold District…Eskay Mining (ESK, TSX-V) was halted pre-market, pending news…

6. Using a high-tech custom-built downhole camera that went to a vertical depth of more than 420 m, Canada Cobalt (CCW, TSX-V) geologists have a bull’s eye target to immediately build out a high-grade Silver discovery at Castle East just 1 km from the 40-million ounce Siscoe mine and 2 other past producers in the prolific Gowganda Camp…drilling has commenced at CCW’s newly-named “Robinson Zone” where an initial series of wedge holes is designed to pierce the high-grade structure at several different points above and below a spectacular native Silver discovery intercept of 1,194 oz/ton over 0.45 m within a 3.1 m core length grading 189 oz/ton…a new hole will then be drilled from surface to intercept the interpreted shoot higher up in the system…1,194 oz/ton Silver over 0.45 m and 189 oz/ton over 3.1 m doesn’t exist in isolation,” explained Doug Robinson, considered the Northern Ontario Silver-Cobalt Camp’s leading authority on the Nipissing Diabase, “and it’s the type of ore-grade intercept that built the other 3 mines less than 2 km to the west.  There’s a major vent in this area and a network of branching veins.  The downhole camera was the smartest way to go back on the 2011 drill hole, and this technology worked beautifully.  There’s now an understanding of the vein orientation and that de-risks the opportunity,” Robinson concluded…this drilling news has legs to it and can be expected to strengthen CCW’s uptrend going into Christmas…meanwhile, the company has repriced to 45 cents per Canada Cobalt share (from 34 cents) the share portion of its proposed acquisition of privately-held PolyMet Resources…the deal is expected to close shortly and will vertically integrate CCW with multiple revenue streams from its new headquarters in the historic mining community of Cobalt…

7. CPM Group has issued an intermediate-term (2-3 year) Silver buy recommendation to investors…this call has been long in the making…the last time CPM issued a recommendation on Silver was more than 8 years ago in May 2011 when prices reached $48.19 and CPM advised to sell…“The Silver market is at a critical vertex at present,” CPM Group’s Vice President in charge of research Rohit Savant said earlier this week…CPM has waited until now for a variety of reasons known to our clients.  For one, the market has not supported strongly higher prices over the past few years.  As a result, prices have not moved sharply off their 20152016 lows,” CPM managing partner Jeffrey Christian stated…

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December 4, 2019

7 @ 7:00

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1. Gold has traded between $1,472 and $1,485 so far today…as of 7:00 am Pacific, the yellow metal is off $2 an ounce at $1,475…it tested nearest resistance at its 50 and 100-day moving averages (SMA’s) overnight until a Bloomberg report came out that raised hopes regarding a Phase 1 U.S.-China trade deal…that sent Gold lower and drove up Dow futures…Silver has retreated 18 cents to $16.97…the behavior of the TSX Gold Index, however, suggests precious metals have started a new uptrend…Nickel is on a 7-session losing streak, falling to its lowest level since July 29…it’s off another 5 cents at $6.01 where there should be some technical support…Nickel is the only base metal with gains this year, and the pullback is consistent with previous corrections since its bull cycle started in early 2016…Copper is up 3 pennies at $2.66…Zinc has added 2 cents to $1.03 while Cobalt is steady at $16.10…Crude Oil has jumped $1.87 a barrel to $57.87 while the Dollar Index has shed one-fifth of a point to 97.52…U.S. job growth slowed markedly in November, with private payrolls increasing by just 67,000, according to an estimate this morning from ADP and Moody’s Analytics…the count was well below the 150,000 consensus from economists surveyed by Dow Jones and the lowest month since May…the Labor Department releases non-farm payrolls Friday…meanwhile, U.S. services sector activity slowed more than expected in November amid lingering concerns about trade tensions and worker shortages…China said today that it would retaliate if the U.S. presses forward with sanctions over Beijing’s repression of Uighur Muslims – Washington’s second stand on China human rights in recent days as trade talks face uncertainty…after the House of Representatives passed a bill requiring sanctions on officials responsible for the widespread detention of Uighurs in China’s Xinjiang region, Beijing has issued furious statements calling it interference with China’s internal affairs under the pretext of human rights…the bill must be reconciled with a version passed by the Senate in September before it can become law…

2. The longer-term outlook for Copper, fueled by the metal’s use in electric vehicles and renewable power technologies, is stoking a $1.5 billion investment by Rio Tinto to expand mining operations at Kennecott over the next 6 years, extending the life of the mine on the west side of the Salt Lake Valley in Utah for more than a decade…“This is an attractive, high-value and low-risk investment that will ensure Kennecott produces Copper and other critical materials to at least 2032,” said Rio Tinto CEO Jean-Sébastien Jacques, adding that mine closures impacting supply are also a key factor in the expansion…“Kennecott is uniquely positioned to meet strong demand in the United States and delivers almost 20% of the country’s Copper production.  North American manufacturers have relied on high-quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade”…the Bingham Canyon mine is one of the top producing Copper mines in the world with production at more than 20 million tons (it’s also the largest human-made excavation on Earth, measuring 2.75 miles across at the top and three-quarters of a mile deep)…in addition to Copper, Kennecott is one of the largest producers of Gold, Silver and Molybdenum in North America, and is a potential source of critical minerals such as rhenium and tellurium…with this project, Rio Tinto has invested around $5 billion in modernization and mine-life extension initiatives since the Kennecott acquisition in 1989

3. Balmoral Resources (BAR, TSX) is under pressure in early trading after releasing Phase 2 drill results from the recently discovered Ripley Gold zone at Area 52 of its Fenelon Property in Quebec…all 9 holes completed during Phase 2 intersected mineralization near-surface to a vertical depth of 220 m, highlighted by 32.7 g/t Au over 0.39 m, 3.01 m @ 3.04 g/t Au and 22.08 m @ 0.68 g/t Au…clearly, the market was expecting better numbers (as always) but it’s still early days…Ripley is 1 of 3 zones of significant Gold mineralization intersected in Area 52, which is located immediately south and along trend from Wallbridge Mining’s (WM, TSX) Area 51 discovery…Ripley remains open at depth…recent results from below the 450-m vertical level on the adjacent Wallbridge Property have shown the potential for a significant increase in grade times thickness to depth within this Gold system…Balmoral’s Detour Gold Trend Project adjoins the holdings of Detour Gold (DGC, TSX), the subject of a current over $4.5 billion takeover offer – on its western end, surrounds and controls a portion of the rapidly expanding Area 51 Gold system, and features Balmoral’s wholly-owned Martiniere Gold and Grasset Nickel deposits…BAR is off 8.5 cents at 29 cents as of 7:00 am Pacific but has strong new technical support in the mid-20’s

4. Victoria Gold (VIT, TSX-V) is trading higher after releasing a new technical report, prepared to a feasibility study level, for its Eagle Gold mine in the Yukon…reserves have increased from 2.7 million to 3.3 million ounces (this update includes all Eagle and Eagle proximal drilling – 58 holes – completed after the 2016 Feasibility Study)…annual production is now estimated at 220,000 ounces vs. 200,000…cash cost per ounce is $577 (U.S.) while all-in-sustaining costs are forecast at $774 (U.S.) per ounce…post-tax NPV(5) is $1.03 billion“The results of this updated Technical Report demonstrate the value and continual growth of the Eagle Gold Mine,” stated John McConnell, President and CEO…”Reserves have increased by over 20% from the drilling of 58 holes completed post-2016 Feasibility Study and we continue to see meaningful upside potential at the Eagle and Olive pits as well as across the Dublin Gulch Property.  I remind the reader that we continue to ramp up operations at the Eagle Gold Mine and anticipate commercial production achievement during the 2nd quarter, 2020

5. The Dow has rebounded 194 points through the first 30 minutes of trading…in Toronto, the TSX is up 42 points…the Gold Index, threatening to break out above 250, has pulled back slightly to 249…the Venture is trading at its best levels since early November, up 2 points to 540…potentially, this could be an unusual December (not the typical selling pressures during the first half or two-thirds of the month)…it’s possible the lows for the year may have come early this time around, in late November, especially if precious metals continue on a run…significant accumulation is occurring in Fiore Gold (F, TSX), one of our favorite small producers, which surged to a high of 60 cents in early trading…it jumped 8 cents yesterday on 1.5 million shares on no news…as of 7:00 am Pacific, Fiore is up 2.5 cents at 51 cents…Calibre Mining (CXB, TSX) provided 2020 guidance this morning…the company forecasts Gold production of between 140,000 and 150,000 ounces at an all-in-sustaining cost of between $1,020 and $1,060 (U.S.) per ounce…the company says it expects to generate significant operating cash flows that will allow it to reinvest aggressively in resource expansion and discovery drilling, advancing the high-grade Limon Central open-pit, and progressing the Pavon Gold Project as a satellite ore source for the La Libertad mill…CXB is holding steady around 90 cents…

6. Bee Vectoring Technologies (BEE, TSX-V) announced this morning that it has closed a total of 10 deals with blueberry growers in Georgia for the coming growing season…this includes 8 new growers and 2 previously announced growers…these producers will be using BVT’s proprietary bee delivery system and U.S. EPA-registered product, VECTORITE with CR-7, on their blueberry crops…the blueberry growers will be using BVT on an estimated 500 combined acres of conventional and organic fields for the 2020 blueberry season in Georgia, where blooming starts in February…blooming marks the beginning of the blueberry season, when the BVT system is used, but crop season continues until harvest which occurs in the spring and summer…all but one grower are first-time users who will be piloting BVT on a small percentage of their total acreage with the expectation that they will progressively add BVT across their entire operations over 2 to 3 seasons…the growers farm on a combined total of about 1,500 acres…“The company’s growth strategy in the blueberry market consists of three key activities: initial market penetration, customer retention and expansion through exceptional customer service, and leveraging the initial experiences to gain new customers,” stated Ashish Malik, CEO of Bee Vectoring Technologies“Currently in Georgia, the company is focused on closing deals with growers that are prominent early adopters of new technologies in their communities – and these initial growers are all key influencers.  Over time through delivery of exceptional experiences, BVT expects adoption of its system to increase to 100% of these farmers’ acres through building loyalty and positive word of mouth.  Lastly, the company continues to onboard new, additional growers as we move closer to the next growing season.  This is the strategy that will be executed in each region, as the growing season progresses geographically across the United States”BEE is up a penny at 43 cents in early trading…

7. CPM Group has issued an intermediate-term (2-3 year) Silver buy recommendation to investors…this call has been long in the making…the last time CPM issued a recommendation on Silver was more than 8 years ago in May 2011 when prices reached $48.19 and CPM advised to sell…“The Silver market is at a critical vertex at present,” CPM Group’s Vice President in charge of research Rohit Savant said earlier this week…CPM has waited until now for a variety of reasons known to our clients.  For one, the market has not supported strongly higher prices over the past few years.  As a result, prices have not moved sharply off their 20152016 lows,” CPM managing partner Jeffrey Christian stated…

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