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TSX Venture Exchange and Gold

The Venture experienced its worst week of the year, tumbling 18 points or 2.1%, but a late Friday rally was an encouraging sign as the Index rebounded from an intra-day low of 806 – just above a band of key support – to close at 818 going into the start of PDAC.   It was the Venture’s second consecutive weekly loss after an 8-week winning streak created temporarily overbought technical conditions.

Astute investors who embraced the pullback and reacted quickly to certain company news releases fared extremely well.  The “Mother of All Bull Markets” continues, though that doesn’t rule out more turbulence as spring approaches.

Click here to receive, via email later today, BMR’s updated “Who’s Who” List of the Greater Cobalt Camp – the top dozen or so companies active in the district. 

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Sign up NOW or login as a current subscriber with your username and password.

Gold has traded between $1,223 and $1,235 so far today…as of 10:45 am Pacific, the yellow metal is down $8 an ounce at $1,226…Silver is off 2 pennies at $17.70…Copper is flat at $2.69…Nickel has jumped 10 cents to $4.96…Crude Oil is 51 cents higher at $53.12 while the U.S. Dollar Index has fallen one-third of a point to 101.81…

Gold is on track for its biggest weekly loss in nearly 4 months as speculation grows that the Federal Reserve will press ahead with an increase in interest rates at its March 14–15 meeting…the probability of a Fed move in less than 2 weeks grew to nearly 80% by late yesterday from 66% mid-week, Fed funds futures showed, after hawkish comments from New York Fed chief William Dudley and San Francisco Fed President John Williams…

Gold bugs should be hoping for a rate increase at this next meeting – following the only 2 rate hikes over the past decade, big upswings have occurred in bullion and in Gold stocks…

Moments ago, Yellen gave a strong signal that another hike is coming this month when she stated in a speech at the Executives Club in Chicago, “We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect. Indeed, at our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.”

Bring it on, Ma!…give us another rate hike!…

Meanwhile, Franco-Nevada (FNV, NYSE) chairman Pierre Lassonde said today that Fed rate hikes are “meaningless”, that Gold already bottomed late last year and will continue its overall upward trend…we believe he’s right!…

Data just in – U.S. drillers added Oil rigs for a 7th week in a row, extending a recovery into a 10th month as energy companies, including Exxon Mobil, boost spending plans to take advantage of a Crude price recovery…

In Today’s Morning Musings…

1. New technological advances in mining on display at PDAC…

2. Money lines up behind CSR as its activity intensifies in the Greater Cobalt Camp – you know what that means!…

3. This stock could soon fly even higher than its drones…

4. Daniel’s Den – this BUD’s for you!…

Click here to receive, via email, BMR’s “Who’s Who” List of the Greater Cobalt Camp – the top dozen or so companies active in the district.

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Sign up NOW or login as a current subscriber with your username and password.

Check back later this morning for today’s BMR Morning Market Musings.

1. Gold has traded between $1,225 and $1,235 so far today…as of 7:00 am Pacific, bullion is down $7 an ounce at $1,227 while Silver is flat at $17.70…Fed Chair Janet Yellen is set to speak at the Executives Club of Chicago at 10:00 am Pacific in her last scheduled public remarks before the central bank’s March 14-15 policy meeting…Fed Vice Chairman Stanley Fischer, Fed governor Jerome Powell, Richmond Fed President Jeffrey Lacker and Chicago Fed President Charles Evans are also speaking today…in recent days, a slew of top Fed officials indicated that tighter monetary policy may be coming soon which has contributed to a pullback in precious metal prices…we all know what happened after the last 2 rate hikes, the only ones of the past decade – Gold and Gold stocks went up…

2. Randgold Resources (GOLD, NASDAQ) CEO Mark Bristow says although Gold is experiencing a bumpy ride at the moment, the metal will turn the corner in a major way:  “I don’t think, in my 20 years, I’ve ever seen the stars so aligned for a better Gold price,” he told Kitco News at the annual BMO Metals & Mining conference…

3. The Venture is flat at 810 as of 7:00 am Pacific…yesterday’s high-flier, Ventripoint Diagnostics (VPT, TSX-V), is off 9 cents at 60 cents through the first 30 minutes of trading (chart from John in today’s Morning Musings) while Saint Jean Carbon (SJL, TSX-V), which soared earlier this week, has slipped 6 pennies to 19 cents after clarifying news from Tuesday…exceptional Venture support ranges from 800 to the 780’s…the Dow and TSX are relatively unchanged in early trading…

4. Castle Silver Resources (CSR, TSX-V) has positioned itself as a leader in the prolific northern Ontario Cobalt-Silver Camp with a corporate update this morning that included news of a $750,000 private placement at 15 cents expected to close shortly…CSR also confirmed it has a work program in progress at its Castle Property which will be accelerated through this financing while a fresh work program will start soon at the Beaver Property near the town of Cobalt…both properties were very significant past producers…results are pending from a recently completed IPower3D (induced polarization) survey at the Castle to identify potential new Silver-Cobalt drill targets…importantly, the company enjoys full access to the underground workings in the Castle main adit after a closure plan accepted by the Ontario government and an agreement with local First Nations…CSR is unchanged at 18 cents as of 7:00 am Pacific and its market cap remains well below that of the dozen or so Venture-listed companies on our coverage list in this burgeoning district…

5. It has been a solid week for Deveron UAS (DVR, CSE) which is up nearly 50%…could be one of the next high-fliers given the sector that it’s in and how it’s providing a niche service to a potentially massive market…DVR, with just 17 million shares outstanding, is building momentum, now threatening to push past resistance at 40 cents…the company reported earlier this week that it completed over 500 commercial drone flights (incident free) in 2016, clearly establishing DVR as North America’s leading drone-based data provider to the agricultural industry…Deveron, which started operations in Ontario, has secured some important partnerships and is now expanding aggressively into Western Canada…it will be able to provide drone data solutions throughout the 2017 grow season to customers in Alberta, Saskatchewan and Manitoba – a potential market of 50 million acres…the company is also making inroads into the critical U.S. market…according to PwC, the commercial drone industry is reported to be $127 billion, with agriculture making up $32.4 billion…DVR is up 3 cents at 42.5 cents as of 7:00 am Pacific for a market cap of only $7 million…

6.  Aurvista Gold (AVA, TSX-V) is up half a penny at 42.5 cents after a nice jump yesterday following the release of an updated mineral resource estimate for its Douay Project in Quebec – 4.4 million ounces Inferred (129,979,000 tonnes @ 1.06 g/t Au using a 0.5 g/t cut-off)…the resource is valued at approximately $13 an ounce based on AVA’s current market cap…

7.  Orex Exploration (OX, TSX-V) is being acquired by Anaconda Mining (ANX, TSX-V) in an all-stock transaction with Orex shareholders to receive 0.85 of a common share of Anaconda for each common share they hold in OX…Orex shareholders aren’t thrilled with the transaction as OX has slipped a penny-and-a-half to 6 cents through the first 30 minutes of trading…surely, Orex management could have done better than handing itself over to a company that has gone nowhere for nearly 7 years…

The 3 most popular recent BMR articles…

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

BMR Evening Alert!

An Investor’s Guide To Who’s Who In The Greater Cobalt Camp

BMR Morning Market Musings returns tomorrow as part of a broader format we’re introducing at the site.

1. Gold has traded between $1,235 and $1,238 so far today…as of 7:00 am Pacific, bullion is off its lows of the day, down $10 an ounce at $1,239 while Silver has fallen 9 cents to $18.31…Gold took a hit this morning after data showed U.S. jobless claims fell to a 44-year low…some analysts believe that labor tightness, combined with rising inflation, could encourage the Federal Reserve to raise interest rates at its March 14–15 policy meeting…Fed Chair Janet Yellen and Vice Chairman Stanley Fischer will both be speaking tomorrow – a hawkish spin from Fisher, at least, seems likely and that has put Gold bugs on the defensive today…

2. Crude Oil is under some pressure this morning, off $1 a barrel to $52.84, after U.S. Crude stocks hit an all-time high and official data showed Russian Oil production unchanged in February with no further cuts to tighten the market and drain global over-supply…Crude inventories in the U.S., the world’s biggest Oil consumer, rose by 1.5 million barrels last week to a record 520.2 million barrels…however, WTIC has consistently shown resiliance to this type of bearish information…significantly, OPEC cut its Oil output for a 2nd month in February, a Reuters survey found, showing the cartel has boosted already strong compliance to around 94%…

3. The Venture is down 4 points at 818 as of 7:00 am Pacific after snapping a 3-session losing skid yesterday with a 5-point advance…high-flier Saint Jean Carbon (SJL, TSX-V) has slipped 2 pennies to 27.5 cents after climbing as high as 35.5 cents intra-day yesterday…more than 140 million shares have traded in SJL the last 2 days since the company’s news Tuesday regarding a graphite anode order from Panasonic…updated chart for subscribers was posted pre-market this morning…exceptional Venture support ranges from 800 to the 780’s…the Dow and TSX are both off slightly in early trading…

4. Ventripoint Diagnostics (VPT, TSX-V) is this morning’s big mover on the Venture, more than doubling in value to 20.5 cents (just 32 million shares O/S) on high volume after the company announced that it has received a licence from Health Canada for the new VMS-PLUS machine and the four-chamber (4C) heart analysis system…

5. Deveron UAS (DVR, CSE) continues to build momentum and is now threatening to push past resistance at 40 cents…the company reported earlier this week that it completed over 500 commercial drone flights (incident free) in 2016, clearly establishing DVR as North America’s leading drone-based data provider to the agricultural industry…Deveron, which started operations in Ontario, has secured some important partnerships and is now expanding aggressively into Western Canada…it will be able to provide drone data solutions throughout the 2017 grow season to customers in Alberta, Saskatchewan and Manitoba – a potential market of 50 million acres…according to PwC, the commercial drone industry is reported to be $127 billion, with agriculture making up $32.4 billion…DVR is up 1.5 cents at 39.5 cents as of 7:00 am Pacific for a market cap of only $6.6 million…

6. Marathon Gold (MOZ, TSX) is off slightly at $1.03 after 2 strong sessions following release of more solid results from drilling at the Valentine Lake Gold Camp…numbers included 2.1 g/t Au over 125 m and 4.08 g/t Au over 43 m in MA-17–162, and 1.9 g/t Au over 82 m and 3.20 g/t Au over 22 m in MA-17–163…

7. Manganese X Energy (MN, TSX-V) is up 3 pennies at 23 cents after announcing this morning that it has “entered into its next phase”, consisting of an innovative metallurgical project financed by the company’s recent $1.45-million oversubscribed financing…CEO Martin Kepman stated, “This innovative metallurgical project is developing a process in order to produce a Manganese concentrate to be utilized for production of Electrolytic Manganese Dioxide which is also known as EMD. EMD is a high value Manganese product which is utilized within various applications especially for Lithium ion battery cathode material for electric vehicles. Manganese is the critical link in the Lithium ion storage chain.  The reason we refer to it as innovative is that the company is focused on producing a cost effective, environmentally friendly concentrate for the Lithium ion battery market which is currently in high demand within North America.” 

The 3 most popular recent BMR articles…

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

BMR Evening Alert!

An Investor’s Guide To Who’s Who In The Greater Cobalt Camp