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Check back during the day for updates and helpful information in our comments section. BMR Morning Musings returns tomorrow.

1. Gold has traded between $1,251 and $1,266 so far today in the wake of yesterday’s widely anticipated Fed rate hike, though comments by Janet Yellen and some stronger than expected economic data this morning have brought bullion off its intra-day high of $1,280 yesterday…main support levels are $1,260 followed by the $1,230’s…the manufacturing sector in the New York region is seeing renewed momentum as sentiment has risen to its highest level in 2 years, according to the latest survey data from the New York Federal Reserve…

2. Jurisdictional risk pops up again:  Newly announced widespread changes to South Africa’s charter for mining companies raise serious concerns about the country’s commitment to protection of property rights, among other significant issues…quite simply, the changes are “investment negative” as social costs of mining in the country are likely to keep rising, according to Citi analysts…South Africa’s Chamber of Mines said it will challenge the new mining charter in court, saying the industry was not adequately consulted and the new rules will hurt investment…

3. The Venture is off 3 points at 776 as of 7:00 am Pacific, dragged down by lower Oil and Gold prices…the Venture’s RSI(2) on the daily chart is at extreme oversold levels as the Index nears strong support at 770 with its rising 300-day moving average (SMA) immediately below that…the TSX has dipped 32 points while the Dow has fallen 61 points in early trading…

4. Jaxon Minerals (JAX, TSX-V) has announced the discovery of 3 new massive sulphide units in field work being carried out at its Hazelton Silver-Gold-Zinc-Lead Property, a VMS target, near Smithers…preliminary reconnaissance is focused on an area approximately 1,000 m x 300 m in and around the known mineralization at the Max zone…the team also conducted geological mapping over 1.5 km to the south-southeast of the historic Max zone…meanwhile, JAX has arranged a non-brokered private placement to raise up to $1 million at 25 cents per unit…each unit will include a half warrant at 35 cents, good for 2 years…JAX is up a penny-and-a-half at 29.5 cents as of 7:00 am Pacific…

5. Critical Elements (CRE, TSX-V) hit a new all-time high of $1.04 intra-day yesterday, and is up 3 cents at $1.00 through the first 30 minutes of trading this morning…the company is advancing its promising Rose Lithium-Tantum Project in northern Quebec…a final feasibility study is due soon according to company’s latest news release yesterday…

6. Taku Gold (TAK, CSE) which has been firming up recently in conjunction with a private placement, announced this morning that it is “contemplating a certain mineral property acquisition in the White Gold area of the Yukon from an arm’s length party, Golden Predator Mining (GPY, TSX-V).  In conjunction with the transaction, the vendor intends to invest in Taku, subject to the successful execution of the acquisition.”  TAK closed at a new 52-week high yesterday of 19 cents, though on light volume given the tight share structure…

7. Trifecta Gold (TG, TSX-V), a spinout of Strategic Metals (SMD, TSX-V), has just commenced trading on the Venture this morning…Strategic has distributed a total of 19,872,254 common shares of Trifecta to Strategic’s shareholders and continues to hold 2,127,747 Trifecta shares for investment purposes…this represents representing 9.19% of the 23,150,001 shares of Trifecta currently issued and outstanding (22 million are free of any resale restrictions). “We are very pleased to begin trading today,” stated Dylan Wallinger, Trifecta’s President and CEO. “Once a trading range for the company’s shares has been established, we expect to arrange additional financing to accelerate exploration at our projects in Yukon’s White Gold District.” 

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America’s Loony Left Has Become VERY Dangerous

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

1. As the Fed gets set for what’s widely expected to be another rate hike later today, Gold held new support around $1,260 this morning and suddenly took off to the upside following release of disappointing U.S. retail sales and CPI data…retail sales fell 0.3% last month, marking their biggest drop in 16 months…meanwhile, CPI declined 0.1% in May, down from April’s increase of 0.4%…consensus forecasts were calling for a CPI rise of 0.2%…last month’s annual core inflation of 1.7% is the lowest since last year, though core inflation is not the Fed’s preferred inflation measure…as of 7:00 am Pacific, Gold is up $9 an ounce at $1,275 while Silver has jumped 34 cents to $17.15 after testing strong support around $16.80…

2. Crude Oil prices are off about 30 cents, touching the $46 level this morning…OPEC’s output rose by 336,000 barrels per day in May to 32.14 million bpd, though that’s still under the cartel’s 32.5 bpd output target…American Petroleum Institute data yesterday showed U.S. Crude stocks rose by 2.8 million barrels in the week to June 9, versus expectations for a decrease of 2.7 million barrels…meanwhile, the International Energy Agency said today that it expects growth in non-OPEC supply to be higher next year than growth in overall global demand…nonetheless, many analysts do see a normalization of global Crude inventories during the 2nd half of 2017 to the 5-year average which should give prices a lift…a lower U.S. dollar would also help Oil…

3. Both Gold and the Venture have shown a pattern of bottoming immediately around each Fed rate hike since December 2015…the Venture is up 4 points at 789 as of 7:00 am Pacific…White Gold (WGO, TSX-V) just announced that it has successfully completed its previously announced acquisition of a series of properties held by Kinross Gold (K, TSX) for $10 million in cash, the issuance to Kinross of 17.5 million common shares of the company and up to $15 million in deferred payments specifically related to the advancement of the White Gold properties…WGO has also completed its private placement financing with Agnico Eagle (AEM, TSX) which maintains its pro rate ownership interest in WGO by subscribing for $8.7 million in stock at $2.01 per share…

4. PyroGenesis Canada (PYR, TSX-V), which equaled a multi-year high yesterday of 98 cents, announced this morning that it has created a new division under the name of PyroGenesis Additive, dedicated solely to PyroGenesis’s additive manufacturing business line…this is the first step to the company’s previously announced strategic spinoff…PyroGenesis is the inventor of Plasma Atomization, using this process to produce very small, uniform, fully dense and spherical metal powders that flow like water…these powders are highly sought after in the additive manufacturing industry…PYR is off a penny at 95 cents as of 7:00 am Pacific…

5. First Cobalt (FCC, TSX-V) announced this morning that it has started a surface sampling program at its Canadian flagship project, the Keeley-Frontier mine near Cobalt, Ontario, ahead of diamond drilling…sampling will improve the understanding of the controlling structures in the mineralized system and assess the extent of disseminated Cobalt mineralization outside of previously mined structures…by testing for metals away from the main vein system, First Cobalt intends to determine if a Cobalt-rich halo extends beyond the high-grade vein system that could be amenable to large scale bulk-mining methods…Trent Mell, President and CEO commented, “Many Canadian Gold mines built over the past 2 decades resulted from revisiting old high-grade mines and recasting them as lower grade but higher tonnage operations. This is our vision for the Cobalt, Ontario, camp and our exploration program will now begin to assess the Keeley-Frontier project for bulk mining potential. Surface sampling is an effective and efficient way to test the metal dispersion around the known Silver mineralized zones. We expect assay results in a few weeks. Structural mapping of these stripped outcrops is also necessary to understand the broader region’s bedrock geology and will improve our targeting for the summer drill program.”

6. Find a director, real quick!…the 1-week trading halt in Aldershot Resources (ALZ, TSX-V), instituted after the company slipped to just 2 directors, was lifted this morning after President and CEO Jeremy Caddy frantically searched around the globe for someone who would serve with him, and found a chartered accountant…this is the same company that reported “high-grade Cobalt showings” in the headline of a news release April 5, 2017, but made no mention of “high-grade Cobalt showings” in its actual news…Caddy needs to step aside in order for Aldershot to move forward effectively with its optioned Gowganda Gold Project…

7. The Globe and Mail reported this morning that Argentina’s national government and the governors of 20 provinces signed a mining deal yesterday to harmonize taxes and regulations in hopes of attracting investment…the agreement, which needs approval from Congress and the 20 provincial legislatures, sets a 3% ceiling on royalties mining companies pay to provinces…“It’s an activity that could be one of the pillars of job creation,” Argentine President Mauricio Macri said of mining at the signing ceremony…“We can develop it with perfect care of the environment”…Latin America’s 3rd-largest economy has fallen behind Chile and Peru in attracting mining investment…shortly after taking office, Macri’s centre-right government eliminated export taxes on metals and lifted a prohibition on companies sending profits overseas, 2 moves celebrated by the sector…however, 7 of the country’s 23 provinces still prohibit certain practices, such as open-pit mining and the use of cyanide…Barrick Gold (ABX, TSX) recently ran afoul of local environmental laws after multiple cyanide spills…

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Check the BMR comments section during the day for updates and helpful information. Morning Musings returns tomorrow.

1. Gold has traded between $1,259 and $1,267 so far today as a Federal Reserve monetary policy meeting convenes…as of 7:00 am Pacific, bullion is down $4 an ounce at $1,261 while Silver has slid 19 cents to $16.70…Gold held in exchange-traded products has gathered momentum and holdings are up 24 tonnes so far in June, according to Standard Chartered…for all of 2017 so far, holdings have increased 110 tonnes…at current prices, metal held in trust does not look exposed to loss-making positions…keep in mind that the last 3 rate hikes have coincided with important lows in both Gold and the Venture…

2. The Venture is up 1 point at 787 through the first 30 minutes of trading…Ascot Resources (AOT, TSX-V) is up 15 cents at $2.09 after reporting results for 22 additional drill holes in an ongoing program featuring 6 drill rigs at its Premier mine near Stewart…P17–1269 returned 1,135 g/t Au over half a meter within a wider interval grading 36.3 g/t Au (uncut) over 16.15 m…to date, 112 holes have been completed in 34,893 m of drilling with results pending at the moment for another 46 holes…the TSX has slipped 70 points while U.S. markets are bouncing back…the Dow and NASDAQ are both up more than 40 points in early trading…

3. Historically throughout the 1900’s, explorers and miners focused exclusively on the exceptionally high-grade Silver of the Castle mine in northern Ontario and ignored the potential of other metals including visible Cobalt, in part due to recovery issues which have since been solved…yesterday, Castle Silver Resources (CSR, TSX-V) reported assays from the first 5 chip samples taken inside the mine after an underground work program started there just over a week ago…CSR–17-S03 returned 1.8% Cobalt, 8.5% Nickel and 25.2 g/t Ag…CSR–17-S04 graded 1.6% Cobalt, 5.3% Ni and 17.5 g/t Ag…all 5 samples averaged 1.06% Co, 5.3% Ni and 17.5 g/t Ag…underground sampling covering multiple target areas continues at Castle ahead of near-term drilling…the shallow-dipping 300-m-thick Nipissing diabase intrusive that underlies a large portion of the 33 sq. km Castle Property is interpreted to be a heat source that mobilized Silver, intimately associated with Cobalt, Nickel and likely other metals as well…CSR is the only junior with underground access in the prolific Silver-Cobalt Camp in northern Ontario and the first to report assays from 2017 work…the numbers reported by CSR bode well for the company’s program, now underway, to produce high purity Cobalt powders through its proprietary Re-2OX process for end user evaluation by the battery sector…CSR has bounced between 25 and 26.5 cents in early trading…

4. Constantine Metal Resources (CEM, TSX-V) has commenced a 7,000-m program with 2 drills at the Palmer JV Project in Alaska as part of a $7 million (U.S.) total budget…Palmer is a high-grade VMS project with an Inferred resource of 8.1 million tonnes grading 1.4% Cu, 5.2% Zn, 0.32 g/t Au and 31.7 g/t Ag…it features considerable exploration upside as most targets (hydrothermal alteration zones and high-grade base and precious metal mineralization exposed at surface) have never been drill tested…the majority of 2017 drilling is dedicated to discovery of new mineral deposits while the balance is for expansion and upgrade of the existing South Wall-RW Zone resource, and geotechnical studies…

5. Satori Resources (BUD, TSX-V) announced this morning that the company has commenced diamond drilling at its 100%-owned Tartan Lake Gold mine located in Flin Flon, Manitoba…drilling is designed to expand and extend the known high-grade mineralization – plenty of upside potential here – and will consist of approximately 4,000 m split into 2 phases…Tartan Lake consists of a processing plant, related infrastructure, and a decline providing access to developed mining blocks within the Main and South Zones to a vertical depth of 320 m…47,000 ounces were produced between 1987 and 1989…a NI-43–101 resource estimate was recently completed, showing an Indicated mineral resource of 1,180,000 tonnes @ 6.3 g/t Au (240,000 ounces) and an additional Inferred resource of 240,000 tonnes @ 4.9 g/t Au (37,000 ounces), using a 3.0 g/t cut-off…

6. Field crews have mobilized to Canada Zinc Metals‘ (CZX, TSX-V) Akie Property in northeast B.C. to commence the company’s 2017 diamond drilling program that will focus primarily on the Cardiac Creek Zn-Pb-Ag deposit…the Company owns 100% of 11, large, contiguous property blocks that comprise the Akie and Kechika regional projects including the flagship Akie Project hosting Cardiac Creek…a majority of the upcoming drilling will target the deposit with a focus on expanding the down-dip limits of the high-grade core of Cardiac Creek as well as other expansion targets down-dip and along strike…CZX is trading at its 2017 lows…

7. Nemaska Lithium (NMX, TSX) has announced that it’s raising $50 million on a bought deal basis through a syndicate of underwriters led by National Bank Financial Inc. – 47.62 million common shares of NMX at a price of $1.05 per share…Nemaska will use the net proceeds of the offering to continue development of the Whabouchi Lithium mine, the Whabouchi spodumene concentrator and the Shawinigan hydrometallurgical plant…the offering is expected to close within approximately 2 weeks…Nemaska Lithium says it’s also actively engaged in discussions with prospective lenders regarding terms and conditions of the project debt financing and has recently started the due diligence phase of the process with certain parties…the company expects to reach an agreement with the lenders by the end of September…NMX is off 12 cents at $1.06 as of 7:00 am Pacific…

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Gold has traded between $1,263 and $1,271 so far today…as of 11:00 am Pacific, bullion is flat at $1,267…Silver has retreated 23 cents to $16.94…Copper has eased off 2 pennies to $2.59…Nickel has slid 10 cents to $3.96 while Zinc is down 2 pennies at $1.11…Crude Oil, at $46.25, has added 42 cents while the U.S. Dollar Index is off one-fifth of a point at 97.06…

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

1. Gold has traded between $1,263 and $1,271 so far today to begin a week highlighted by a Fed meeting tomorrow and Wednesday which will likely result in another rate hike…as of 7:00 am Pacific, bullion is down $2 an ounce at $1,264 while Silver has slid 16 cents to $17.01…interestingly, the 35-year monthly Silver chart (see today’s Morning Musings later this morning) shows buy pressure (CMF) has recently climbed to its highest levels since late 2011, an indication that the metal could be preparing for a major move over the summer and during the 2nd half of 2017…Palladium, which soared 7% Friday to its highest levels since 2001, is up another $7 an ounce at $868 as of 7:00 am Pacific…Crude Oil has rebounded 59 cents to $46.42…the U.S. Dollar Index is down one-tenth of a point at 97.12…

2. Tech stocks are under pressure again this morning after Friday’s losses when this year’s hottest sector knocked the S&P and NASDAQ off record highs…the NASDAQ is down more than 1% in early trading while the Dow has slipped 74 points…the Venture has added 2 points to 793 while the TSX is 18 points higher…

3. Goldstrike Resources (GSR, TSX-V) announced this morning that it has commenced a district scale exploration program at its Plateau Property in the central Yukon in conjunction with its new strategic partner, a Canadian subsidiary of Newmont Mining…the program, which will include the most significant drilling campaign ever conducted at Plateau, has started with a close-spaced helicopter geophysical survey covering the entire ~571 sq. km property, utilizing Newmont’s proprietary system…the results of that survey will be augmented with high resolution Radarsat-2 “bare-rock” surface mapping and half meter resolution satellite imagery to facilitate interpretation of the structural geology of the 50-km-long Gold mineralized corridor defined to date…

4. Also in the central Yukon (west-central), K2 Gold (KTO, TSX-V) is up 33% in early trading after announcing that it has commenced drilling at its Wels Gold Property…a diamond drill program of approximately 1,200 m will be completed in 5 to 8 holes with the goal of extending the Saddle zone mineralization, currently open in all directions…the Saddle zone is 1 of 3 anomalous areas defined by soil sampling over a zone of 3 km by 3 km within the 47 square km claim package…the contacts of an intrusion, where there could be higher-grade mineralization, have never previously been drill tested and are a target for this year’s program…

5. Volume is picking up in Blind Creek Resources (BCK, TSX-V) which is on pace for one of its highest volume sessions ever today…the company recently announced a $2 million financing at 25 cents as it pursues fresh exploration at one of Western Canada’s largest undeveloped Zinc-Lead-Silver deposits in the central Yukon with robust exploration upside…meanwhile, BCK also has major plans for its recently acquired and fully permitted Engineer Gold mine in northern B.C. where it’s after small-scale but exceptionally high-grade production (Inferred resource at 1.75 oz/ton using a 25 g/t cut-off)…a large land package strategically assembled around that deposit by BCK features a “Porgera style” epithermal system with 25 known veins and 2 major shear structures, providing plenty of exploration upside…BCK has just 20 million shares outstanding…

6. RJK Explorations (RJX.A, TSX-V) came within a penny-and-a-half of its 2017 high last week as more drill results from the company’s Maude Lake Gold Property in northern Ontario are due shortly…a “large number of samples” were sent in for assaying, as confirmed by the company in a news release this morning, which is encouraging…meanwhile, RJK has commenced the drilling of a deep hole (initial target depth is 1,000 m) to test a sizeable geophysical anomaly discovered by Earth Science Services Corp. (ESSCO) near a splay fault north of the historic deposit in an area never previously drilled…RJK’s current market cap is $4 million, and the company has $1 million coming from New Gold later this month from the sale of claims in the Blackwater district…RJK is up 2 pennies at 22 cents as of 7:00 am Pacific…

7. Marlin Gold Mining (MLN, TSX-V) released another round of encouraging drill results this morning from the company’s 100%-owned La Trinidad Gold mine in Sinaloa, Mexico…hole 17TRD52 intersected 2.7 g/t Au over 38.7 m (16.3 m true width), including 5.1 g/t Au over 14 m (5.9 m true width)…this drill hole was intended to target an area approximately 25 m north of 17TRD50 which intersected 7.6 g/t Au over 63.3 m (26.7 m true width), and approximately 50 m north of 17TRD44 which intersected 15.5 g/t Au over 15.4 m true width…as is the case with the upper intercepts of holes 17TRD50 and 17TRD44, the upper intercept of 17TRD52 was previously interpreted as waste, and will likely have a positive impact to the modeled grade and tonnage in this area of the deposit…

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TSX Venture Exchange and Gold

A Fed rate hike is likely on the way this coming Wednesday, June 14.  If the last 18 months are any indication, an interest rate increase is the perfect cure for what ails the Venture at the moment!

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