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Check back later today for Daniel’s Den. BMR Morning Market Musings returns Friday.

1. Gold has traded between $1,235 and $1,245 so far today…as of 7:00 am Pacific, bullion is flat at $1,242 as it tries to gain traction past the critical $1,230’s while Silver has added 5 cents to $16.31…Copper and Nickel are both steady at $2.70 and $4.38, respectively…Crude Oil has jumped 23 cents to $46.63 while the U.S. Dollar Index is off slightly at 94.67 (nearest support at 94)…

2. Global Gold exchange-traded funds posted renewed outflows of 4.6 tonnes yesterday…UBS believes that buying in Gold is more likely to be short covering than fresh longs in the immediate future. “Positioning has been in Gold’s favor, with most recent data showing that net length is at the lowest level since January last year,” UBS says. “In addition, shorts have started to become more active in recent weeks, raising upside risks in the near-term (should those traders buy to cover).”   In fact, the bank adds, the recovery from the low $1,200’s over the past week was likely short covering while longs are “likely taking their time and are in no rush to jump in for now.”

3. Volume remains light but Venture technical strength continues to improve with the Index finally pushing above its EMA(8) with that short-term exponential moving average also reversing to the upside…that typically indicates the early stages of a market turnaround…the Venture has completed 3 straight winning sessions and is up another point at 765 as of 7:00 am Pacific…Zecotek Photonics (ZMS, TSX-V) has arranged a non-brokered private placement of at a price of 30 cents per unit to raise gross proceeds of $1.55 million…funds raised will be used to complete the transfer of technology for the purpose of immediate commercialization, strengthening and maintaining patents of the company’s IP (intellectual property) portfolio…the TSX is 32 points higher at 15,181 while the Dow has added 11 points through the first 30 minutes of trading…

4.  A Silver producer in Morocco continues to gradually build on solid gains over the past 2 months…Maya Gold & Silver (MAY, TSX-V) is up half a penny at 19 cents after announcing this morning that it has intersected 907 g/t Silver over 3.6 m adjacent to the highest grade intersection ever drilled by the company (reported last week) since it took 85% ownership of the Zgounder Property in Morocco…last week, drill hole 2000-T28–17–124 returned 3,809 g/t Ag over 18 m from 3.6 to 21.6 m (including 9,430 g/t over 7.2 m)…the company had monthly production of 31,942 ounces of Silver during the month of June at an average head grade of 338 g/t…meanwhile, on the topic of Silver, analysts at RBC Capital Markets in a report issued today said Pan American Silver (PAAS, TSX, NASDAQ), Wheaton Precious Metals (WPM, TSX, NYSE), Hochschild Mining (HCHDF, NASDAQ) and Coeur Mining (CDE, NYSE) are its favorite Silver stocks and offer the best upside in a rising price environment…

5. Osisko Mining (OSK, TSX) is higher in early trading after releasing fresh drill results from Windfall Lake including 24.9 g/t Au over 31 m (16.4 g/t Au over 31 m cut) including 145 g/t Au over 1 m and 319 g/t Au, also over 1 m…the hole hit multiple mineralized intercepts over a 100-m section of the FW1 zone…the current 400,000-m drill program combines definition drilling above the Red Dog intrusion, expansion drilling above and below Red Dog, and expansion/definition drilling in the Lynx deposit located immediately to the NE of Windfall…significant new assays from 28 intercepts in 13 drill holes focused on infill and expansion drilling in the Underdog zone of the Windfall deposit…

6. Otis Gold (OOO, TSX-V) has commenced an approximately 25-hole, 8,000-m drill program at its promising Kilgore Project in Idaho…the primary goal of the program is to follow up at depth on strong drill intercepts achieved in 2016 at the existing Kilgore deposit, primarily in the prospective Aspen formation host unit…drilling will continue through November…on a parallel basis, the company is implementing an approximately 250-line-km ground magnetometer survey to complement the magnetic survey work completed last year…this will give Otis ground magnetic coverage over its entire Kilgore land package…Agnico Eagle took a 9.5% ownership position in Otis earlier this year…

7. Canada was the clear leader when it came to mining exploration last year, reporting the biggest budget than any other country, PricewaterhouseCoopers (PwC) confirms in its Mine 2017 report…“Exploration dollars poured into Canada at a faster rate than anywhere else in the world last year,” the report said…overall, the country attracted 14% of the total global exploration budget, ahead of Australia with 13% and the U.S. with 7%…on the other hand, Africa suffered one of the biggest declines. “The entire continent absorbed only 13% of global spending in 2016,” according to PwC…the report is based on the financial performance analysis of the Top 40 mining companies ranked by market capitalization…

The most popular recent BMR articles/videos…

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine

Check back throughout the day for a possible additional post as well as helpful information in the BMR comments section.

1. Gold has traded between $1,235 and $1,240 so far today…as of 4:50 am Pacific, in this early edition of 7 @ 7:00, bullion is up $4 an ounce at $1,238 while Silver has gained 5 cents to $16.13…Nickel again leads the base metals today, up slightly at $4.37…Crude Oil has jumped 47 cents to $46.49 while the U.S. Dollar Index has tumbled half a point to 94.66 (nearest support at 94)…

2. Bullish contrarian alert – for the 5th week in a row, hedge funds reduced their bullish exposure to Gold and turned outright bearish on Silver, according to the latest trade data from the Commodity Futures Trading Commission…Gold’s net length dropped 31% from the previous week…according to the data, Gold’s bullish positioning is at its lowest level since January 2016…Gold positioning has declined by as much as 69% or a total of 15.55 million oz over the past 5 weeks and now looks very light at only 19% of the all-time high…meanwhile, Silver gross shorts have increased by a total of 219 million oz over the past 5 weeks to reach a fresh all-time high of 470 million oz on July 1…

3.  Copper is trading at 4-month highs after getting another boost yesterday when the Chinese government released GDP and industrial production data…both metrics outperformed consensus expectations, with industrial production at 7.6% growth beating the FXStreet.com forecast of 6.5% growth…keep in mind that China accounts for 45% of global Copper demand…meanwhile, it was reported this morning that average new home prices in China’s 70 major cities rose a healthy 10.2% from a year earlier, though that was off slightly from May’s 10.4% gain, according to Reuters‘ calculations based on an official survey…home price growth in China’s largest cities is expected to stay on a mild slowing trend for the next 12 months…

4.  Final VTEM survey data from Geotech has confirmed a stunning “bulls-eye” massive sulphide target about to be drilled at Garibaldi Resources‘ (GGI, TSX-V) E&L Property at Nickel Mountain, 11 miles southwest of Eskay Creek…a strong, broad conductive response begins at a depth of 140 m and is now interpreted as evidence for large massive sulphide zones below and east of the 12 shallow drill holes (maximum depth was 122 m) completed from surface by Silver Standard Resources in the mid-1960’s…all 12 holes were consistently mineralized and led to an historic non-compliant resource…significantly, DDH-4–1966 returned 1.3% Nickel and 0.79% Copper (from 38.7 m to the end of hole at 76.5 m) including 5.9% Ni and 1.7% Cu over 2.74 meters near the bottom of the hole…Nickel sulphide deposits and the tectonics of the Eskay Camp were poorly understood at the time…final VTEM data correlate with other current and historic geophysical and geological data compiled by Garibaldi’s team of Nickel sulphide experts, suggesting that “the Golden Triangle’s only Nickel-Copper magmatic massive sulphide system is much larger than originally thought,” GGI stated in a news release last night…high Nickel-Copper “tenor”, a sulphur source and the fact that intrusions the size of the E&L tend to be very efficient “magma highways” support the contention for a major new discovery in the middle of the Eskay Camp…

5. Venture technical strength continues to improve with sell pressure (CMF) having declined rapidly while the Index has been able to hold support at its EMA(500) as it did both times it touched that level during the 2nd half of last year…the Venture added another 5 points yesterday to close at 762 for its first back-to-back daily gains since the middle of June…the TSX lost 9 points yesterday to finish at 15,165…Canadian home sales in June posted their largest monthly drop in 7 years, driven by a plunge in the Greater Toronto market, the Canadian Real Estate Association said yesterday…transactions last month were down 6.7% compared with May on a national basis, the 3rd consecutive monthly decline, with the Greater Toronto Area registering a whopping 15.1% drop…irresponsible governments need to be very careful what they wish for…Dow futures are flat 2 hours ahead of trading this morning with earnings season in the spotlight…

6. First Cobalt (FCC, TSX-V), which remains halted pending pending further review by the exchange of filings related to the company’s recent major transaction with Cobalt One, has announced the acquisition this morning of more strategic ground in the northern Ontario Silver-Cobalt Camp…FCC has added a property that joins its Keeley-Frontier project to the east and west, hoping to capture extensions to a Silver-Cobalt vein system.  “This eastern area has largely been forgotten due to the low Silver versus high Cobalt characteristics,” explained Frank Santaguida, VP Exploration for First Cobalt.  “This transaction demonstrates our commitment to consolidate the meaningful property positions within the Camp.  Our strategy is to be the first to approach this Camp from a bulk mining perspective.”

7. Canada was the clear leader when it came to mining exploration last year, reporting the biggest budget than any other country, PricewaterhouseCoopers (PwC) confirms in its Mine 2017 report…“Exploration dollars poured into Canada at a faster rate than anywhere else in the world last year,” the report said…overall, the country attracted 14% of the total global exploration budget, ahead of Australia with 13% and the U.S. with 7%…on the other hand, Africa suffered one of the biggest declines. “The entire continent absorbed only 13% of global spending in 2016,” according to PwC…the report is based on the financial performance analysis of the Top 40 mining companies ranked by market capitalization…

The most popular recent BMR articles/videos…

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine

“Extraordinary”.

Given last night’s news, that’s the only word to properly describe the opportunity Garibaldi Resources (GGI, TSX-V) has with its “bulls-eye” massive sulphide target within just 150 m of surface in the heart of one of the richest parts of the planet, the incredible Eskay Heart of Gold Camp that has produced Eskay Creek, Brucejack, KSM and Snip.

Nothing is “small” or impossible in this world class Gold-Copper district on the verge of what appears to be a game-changing Nickel-Copper-rich massive sulphide discovery with Platinum, Palladium, Cobalt and Gold as potential by-products.

Dr. Peter Lightfoot, regarded as one of the world’s foremost Nickel sulphide experts.

Nickel Mountain has all the makings of quickly becoming the exploration story of the year in Canada, exactly what the junior resource market needs to spring back to life.  As Dr. Lightfoot stated, “an important new discovery (at the E&L Project at Nickel Mountain) would have profound implications for the study and pursuit of Nickel sulphide deposits in the Canadian Cordillera.”

It would also have profound implications for the market. Phase 1 drilling begins shortly, during this second half of July.

Last night, Garibaldi’s team of Nickel sulphide experts led by Dr. Lightfoot, geophysicist Alan King and others revealed how “12 months of intense research” producing one clue after another has been capped by the stunning results of a VTEM survey that show a strong, broad conductor interpreted to be the final compelling piece of evidence for “massive sulphide zones below and east of 12 shallow drill holes (maximum depth was 122 m) completed by Silver Standard Resources in the mid-1960’s.”

One has to wonder, if the strong conductive response begins approximately 20 to 110 m below where the following holes were drilled, what could the mineralization be like between about 140 m and, say, 300 m?

• 37.8 m grading 1.3% Nickel and 0.79% Copper (from 38.7 m to the end of hole at 76.5 m) including a whopping 5.9% Ni and 1.7% Cu over 2.74 m near the bottom of the hole (DDH-4–1966);
• 27.7 meters @ 1.2% Ni and 0.65% Cu including 4.8% Ni and 1.9% Cu over the final 3.35 m of that hole (DDH-5–1965);
• 63.6 m @ 0.47% Ni and 0.44% Cu in the deepest drill hole (DDH-3–1966) which featured massive sulphides in the final m at a depth of 122 m;
• 30.5 m @ 0.69% Ni and 0.48% Cu with grades increasing at depth in a 175-m step-out to the east (DDH-4–1966), also just east of the Anomaly “D” conductor.

Garibaldi will drill across the heart of the historic mineralized zones into the conductor, verifying Silver Standard’s grades, the existence of other metals, and potentially a major new discovery if Anomaly “D” represents new large zones of massive sulphides as suspected.

Every hole drilled by Silver Standard half a century ago hit Nickel-Copper-rich sulphide mineralization, leaving this unique system open in all directions.  Impressive mineralization was drilled over an east-west distance of 175 m.  The conductor is at least 260 m long “and its potential depth extent has not been delimited in any way.”  The system also includes Platinum, Palladium, Gold and Cobalt based on GGI’s channel sampling of outcrop at the top of Nickel Mountain last summer (8 m of massive-semi-massive-disseminated sulphides returned 2.3% Ni, 2.2% Cu, 0.32 g/t Pt, 0.39 g/t Pd, 0.19 g/t Au and 0.10% Cobalt).

Knowledge of the Eskay Camp was limited in the 1960’s and so, too, was the understanding of Nickel sulphide deposits and how smaller intrusions such as the E&L can be extremely efficient “magma highways”.  Any major Nickel sulphide deposit also requires a significant source of sulphur, and GGI’s team appears to have found that as well in the Hazelton black shales.

We also now know that the E&L displays high Nickel and Copper “tenor”, potentially critical to the economics of a deposit there.

Click on the arrow as Dr. Lightfoot discusses the importance of “tenor” in an exclusive interview with BMR (tenor at the E&L compares favorably with top Nickel sulphide deposits around the world).

As significant as last night’s news is, another potential big “game-changer” could come any day if crews on the ground investigating other conductors along a 6-km trend at Nickel Mountain confirm the presence of Nickel-Copper sulfides at those locations.  That would create a possible scenario of a “cluster” of E&L deposits like “pearls on a string”.

Note:  John, Jon and Daniel hold share positions in GGI.