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Check back during the day for a possible additional post and refer to our comments section for updates and helpful information.

1. Gold has traded in a tight range between $1,209 and $1,214 so far today…as of 7:00 am Pacific, bullion is off $3 an ounce at $1,211 while Silver is flat at $15.63…base metals are all slightly higher, led by Zinc with a gain of 1.2% to $1.28 a pound…holdings of physically backed Gold exchange-traded funds, at 54.61 million ounces, are down more than 1% since June 14 which accounts for some of the pressure on bullion…the U.S. Dollar Index is flat at 96.00 ahead of Fed Chair Janet Yellen’s semi-annual testimony before Congress tomorrow and Thursday…

2. UBS on the current Gold market: “Unsurprisingly, the pullback in Gold has coincided with the rise in U.S. real yields to the year’s highs as well as the sharp increase in real yields in Europe to the highest levels in more than a year…we maintain our view that Gold should recover from this latest pullback as the move higher in real rates is unlikely to be sustained and we see longer-term value around these levels.”

3. The Venture is off 2 points at 750 as of 7:00 am Pacific but volume remains light…Enforcer Gold (EGM, TSX-V) just reported that it has discovered high-grade mineralization in a new vein exposure at the Montalembert Gold Project in northern Quebec…in addition, the company says that preliminary IP results from surveying to the north of the Galena and No. 2 veins indicate that both structures continue for a considerable distance in this direction…Enforcer’s large-diameter core drilling program on the Galena and No. 2 began 1 week ago…the stock is up 1.5 cents at 22 cents as of 7:00 am Pacific…the TSX is off 37 points while the Dow is down 8 points through the first 30 minutes of trading…

4. Tower Resources (TWR, TSX-V) has intersected 247 m of 0.51% Cu and 0.34 g/t Au (0.75% CuEq) at its flagship Rabbit North Project near Kamloops, 14 km west of the New Afton mine and less than 30 east of Highland Valley…mineralization in RN17–015 begins at 208 m downhole and consists of chalcopyrite and lesser pyrite as fine-grained disseminations associated with intense, overprinting inner propylitic (chlorite, magnetite, epidote, carbonate) and sodic (albite) alteration of host Nicola Group volcaniclastic rocks…the drill hole was collared 180 m southeast of a 2016 drill hole that intersected 200 m of 0.30% Cu and 0.15 g/t Au which expands and upgrades the zone of known porphyry related mineralization at the Western Magnetite zone…drilling is ongoing at Rabbit North and Tower is awaiting remaining assays which are expected over the coming weeks…TWR is up a penny at 28 cents as of 7:00 am Pacific…

5. Klondike Gold (KG, TSX-V) has released encouraging initial assay results from the first 2 holes of 18 drilled so far at its Lone Star target in Yukon…LS17-81 returned 41.1 m grading 2.1 g/t Au…this drill hole was a new 50-m step-out to the west of LS16–58 drilled in 2016 which assayed 2.4 g/t Au over 37.0 m…meanwhile, LS17–82 assayed 2.4 g/t Au over 40.9 meters from 10 m downhole, a direct 25-m undercut of LS16–58…the Lone Star target strike length is now 750 mand remains open to east, west and down-dip…assays from a further 12 holes at Lone Star, and 4 from other targets, are pending from Phase 1 drilling…KG is unchanged at 33 cents in early trading…

6. Colorado Resources (CXO, TSX-V) has commenced diamond drilling at the Inel target at its KSP Project in the Eskay Heart of Gold Camp…a total of 7,500 m are expected to be completed by the end of next month which will satisfy the agreement requirements with Seabridge Gold (SEA, TSX) to earn an 80% interest in the propert…detailed reviews of the geological, geochemical and geophysical data in the context of last year’s important drill results have resulted in the selection of more than 20 drill sites at Inel (multiple holes could be drilled from each site)…many of this year’s drill holes will be longer (up to 350 m) in order to test downdip of the relatively shallow mineralization encountered in the 2016 drill program…meanwhile, at the company’s recently expanded North ROK Project near Red Chris, more than 10 new separate areas of Copper mineralization associated with the eastern contact of the Mabon stock and other intrusive dike rocks have been identified on the original ROK-Coyote Property through a a total of 2,208 soil samples and 159 rock samples…

7. Cartier Resources (ECR, TSX-V) has launched a 25,000-m drill program on the Chimo mine property near Val d’Or…the program is designed to increase the size of the known Gold zones and to highlight the potential for discovery of new Gold zones…the first phase of 20,000 m will explore the lateral and depth extensions (250 m to 650 m) of 24 Gold zones while a second phase of 5,000 m will explore the deep extension of the main Gold zone, 5M, of the old Chimo mine (1,050 m to 1,550 m)…historically, the Chimo mine produced 379,012 ounces of Gold of which two-thirds originated from the 5M zone…in total, 44 drill holes will potentially cut up to 177 times the extension of the known gold zones and up to 281 times the structures that host the Gold zones…Agnico Eagle (AEM, TSX) owns 19.9% of Cartier…

The most popular recent BMR articles/videos…

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Crude Oil Update

Several key OPEC ministers will meet non-OPEC Russia on July 24 in St Petersburg, Russia, to discuss the current situation in Oil markets…Kuwait said yesterday that Nigeria and Libya had been invited to the meeting and their production could be capped earlier than November, when OPEC is scheduled to hold formal talks, according to Bloomberg…Libya said today it was ready for dialogue but added that its political, economic and humanitarian situation should be taken into account in talks on caps…

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

1. Gold has traded between $1,204 and $1,216 so far today…as of 7:00 am Pacific, bullion is off $1 an ounce to $1,211 while Silver has retreated another 18 cents to $15.39 after last week’s 6% tumble…holdings at SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, fell 0.63% to 835.35 tonnes on Friday from 840.67 tonnes Thursday…meanwhile, hedge funds and money managers in the week to July 3 reduced their net long positions in COMEX Gold and Silver for a 4th straight week, according to Friday’s U.S. Commodity Futures Trading Commission (CFTC) data…

2. A bright spot for bullion: India’s Gold demand surged during the 1st half of 2017 as imports came in at 521 tonnes, beating the totals from the entire previous year…reasons for the climb were more attractive Gold prices and preparations ahead of the new 3% goods and services tax that is now being rolled out…India imported 521 tonnes of Gold during the first 6 months of this year, which is higher than the 510 tonnes imported during all of 2016…Gold imported by India on an annual basis during the past 5 years averaged around 709 tonnes…if the demand for Gold in India holds up for the rest of 2017, the annual total imported could beat 900 tonnes or $40 billion which would mark the best results since 2012 according to Business Standard…

3. The Venture is off 1 point at 754 as of 7:00 am Pacific as volume remains light…Ryan Kalt’s Clean Commodities (CLE, TSX-V) is again a volume leader this morning with the stock up another 4.5 cents to 11 cents on news the company has expanded by 7-fold the tenure base of its newly-acquired Ogilvie Quarry Zeolite Project in Nova Scotia…meanwhile, Canadian Zeolite (CNZ, TSX-V) has just announced that it has signed a non-exclusive distribution agreement with Ross Enterprises Ltd. for distribution in Eastern Canada with a primary focus in Ontario and Quebec…with the 2017 shipping season now underway, CNZ says that securing additional distributors has been a primary objective for the company…the TSX is 34 points higher at 15,061 while the Dow has retreated 12 points through the first 30 minutes of trading…

4. Golden Predator (GPY, TSX-V) is up modestly in early trading after releasing more assay results (23 RC drill holes) from its 3 Aces Project in southeast Yukon, highlighted by 6.9 m grading 20.1 g/t Au from a depth of 19 m (hole 3A17-100), and 6.1 m of 22.3 g/t Au from a depth of 12.9 m (hole 3A17–127) in the Spades zone…this has expanded mineralization in a southeasterly direction (down dip) and along strike with mineralization remaining open…43 RC holes were drilled in the first round of the 2017 program, completed on May 15, from an area measuring over 450 m x 700 m in the Spades zone (results from 4 more holes from the first round are pending)…since June 1, an additional 13 RC holes for 718 m and 20 PQ diamond core holes for 1,906 m have been drilled in the Spades zone to complete the second round, results pending…the fully-funded 40,000-m drill program will continue throughout 2017…

5.  Kirkland Gold Gold (KL, TSX) this morning reported record quarterly Gold production…consolidated Gold production in Q2 2017 totaled 160,156 ounces, a 24% increase from Q2 2016 and 23% higher than the previous quarter…production at the Fosterville mine in Australia was a record 77,069 ounces, more than double the 37,245 ounces production in Q2 2016…the record results at Fosterville in Q2 2017 mainly reflected a significant improvement in the mill grade, which averaged 17.2 g/t Au in Q2 2017 versus 7.5 g/t Au a year earlier, as well as record recoveries of 94.7% compared to 90.8% in Q2 2016…the Macassa mine in Ontario produced 45,699 ounces of Gold in Q2 2017 based on mill throughput of 105,084 tonnes at a mill grade of 13.9 g/t Au and recoveries of 97.0%…Q2 2017 production at Macassa increased 17% from the same period a year earlier, when production totaled 38,929 ounces based on 103,052 tonnes milled at an average grade of 12.2 g/t Au and recoveries of 97.3%…

6. CSE-listed Friday Night (TGIF, CSE) was halted pre-market with the company reporting that its 91%-owned asset, Alternative Medicine Association LC (AMA), continues to achieve record sales in Las Vegas…AMA earned $902,000 in gross revenues for the month of June, a $611,000 or 210% increase over the prior month’s sales…this was due to retail demand leading up to the July 1 roll-out of adult-use cannabis sales…the first 4 days of legal cannabis sales in the state brought in $3 million (U.S.) which generated $500,000 (U.S.) in tax revenue…the company says it expects this strong demand to continue and it’s planning accordingly…due to this expected increase in demand for dried cannabis and derivative products, the company is currently evaluating real estate options in Las Vegas, with the goal of finding a larger footprint for the AMA facility to take full advantage of the current landscape…

7. Aurora Cannabis (ACB, TSX), which started on the CSE last year, has received conditional approval from the Toronto Stock Exchange to graduate from the Venture and list its common shares on the TSX…upon receiving final approval, Aurora shares will continue to trade under the symbol “ACB“.  “Aurora’s graduation to the TSX, for which we anticipate receiving final approval imminently, is another exciting milestone, reflecting our remarkable pace of growth and expansion, both across Canada and internationally,” said Terry Booth, CEO. “Since we began commercial operations 18 months ago, Aurora has established itself as a driving force, with one of the strongest brands in the cannabis industry, due to constant innovation and consistent execution. Tangible developments, such as the construction of Aurora Sky, our 100,000 kg per year cannabis production facility, the acquisitions in Quebec and Germany, as well as our strategic investments in Cann Group in Australia, and Radient Technologies in Alberta, reflect how Aurora continues to set new standards in the industry.”

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TSX Venture Exchange and Gold

Why savvy traders are smiling with regard to the Venture right now…

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Gold is now at its lowest levels since March and has shed about 6% since touching a 7-month peak of $1,296 on June 6…a modestly stronger U.S. dollar and higher yields are weighing on the market today after the headline U.S. non-farm payrolls number beat expectations, although the critical wage growth component was a disappointment…

Nervous nellies should keep in mind that the current action is very much a replay of December – Gold is on pace for its 5th straight negative week for the first time since December 23…what a great buying opportunity it was in late December, just as the masses were giving up on the yellow metal…if you’re not a contrarian in this business, you will get fleeced most of the time…

There are tremendous opportunities to make money in the current market, but perhaps Omar Khadr is smarter than all of us – he has just proven that all you have to do is become a convicted terrorist, especially if you’re a Muslim, and you’ve got a great chance at sucking multi millions of dollars out of the Canadian government (taxpayers) for “violating” your Charter rights (and an apology to go with the loot!)…the federal government is targeting hard working Canadians for having too much success with their TFSA’s, yet it has no problem writing a check to Khadr for $10.5 million…it’s an upside down world we’re now living in, as evidenced also by the fact that British Columbia just issued a gender-neutral birth certificate for a new baby…

Fischer: Productivity Growth Is Key

Federal Reserve Board Vice Chair Stanley Fischer is calling on U.S. government policymakers to do more to boost business investment, spur innovation, and train and educate workers to jumpstart a “dismal” record of productivity growth…

“Reasonable people can disagree about the right way forward, but if we as a society are to succeed, we need to follow policies that will support and advance productivity growth…governments can take sensible actions to promote more rapid productivity growth,” Fischer said in a speech yesterday…he did not address the current state of the U.S. economy or monetary policy, but focused instead on the importance of output per worker as a fundamental driver of economic growth and standards of living…

Gold vs. 10-Year U.S. Treasury Yield

Global bond yields have been increasing recently with U.S. 10-year Treasury notes no exception as they inched up slightly again today…

Though not always the case, there’s typically a close correlation between Gold prices and the benchmark 10-year Treasury notes (TNX) which are yielding 2.389% as of 11:45 am Pacific…

From a relative standpoint, Gold is neither overbought or oversold vs. the TNX…one of them should move strongly higher during the 2nd half of the year, and we suspect it’ll be Gold…

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

1. Gold has traded between $1,214 and $1,229 so far today with some downside pressure following release of a modestly stronger than expected U.S. jobs report…as of 7:00 am Pacific, bullion has fallen $10 an ounce to $1,215 while Silver has retreated 30 cents to $15.73…Silver experienced a “flash crash” shortly after 7:00 p.m. EDT last night, dropping $1.70 in minutes on huge volume of 8,500 contracts…it appears a firm or individuals couldn’t cover margin requirements and were forced to liquidate…such events typically occur at or near turnaround points in the market…base metals are relatively flat but Cobalt continues to shine – it has hit yet another new 9-year high of $27.90, giving fresh strength to some of the Cobalt plays including Ontario-based Castle Silver Resources (CSR, TSX-V), breaking through resistance at 26 cents, and Cobalt Power (CPO, TSX-V)…

2. The U.S. economy created more jobs than expected in June – 222,000 – while the the unemployment rate held at 4.4%…the key metric of wage growth was little changed from prior months as average hourly earnings for private sector workers rose 0.2%, a little less than expected which is not what the Fed wants to see…despite the fact the unemployment rate is at historically low levels, wage pressures are simply not kicking in…investors are placing about a 60% chance on the Fed lifting rates 1 more time before the end of the year, according to CME Group data based on fed funds futures contracts…

3. In what should be interpreted as a strong message to Canadian governments, Apache Corp. (APA, NYSE) announced last night that it has exited the country – Apache has sold its assets in British Columbia, Alberta and Saskatchewan for close to $1 billion…the Houston-based Oil and gas company explained that leaving Canada was part of its goal of streamlining its portfolio to focus on projects in the United States, the United Kingdom and Egypt – a polite way of saying that Canada is no longer such a great place to do business when it comes to Oil and gas, thanks to climate change fanaticism, increasing regulatory burdens, higher taxes, and native issues…jurisdictions reap what they sow…in the good old days under Ralph Klein, companies could get a drill permit in Alberta in 2 weeks – now it can take many months…Canada is making it more difficult to do business in this critical sector, in a misguided effort to “save the planet”, while at the same time the United States and other countries are making it easier…investment dollars will flow accordingly…

4. Weekly U.S. government data showed yesterday that U.S. Oil production rose 1% to 9.34 million barrels per day, correcting a drop in the previous week that was down to one-off maintenance and hurricane shutdowns…the rise in U.S. output coincides with exports from OPEC climbing for a 2nd consecutive month in June to the highest this year…meanwhile, the Wall Street Journal reported this morning that OPEC is considering imposing production caps on Libya and Nigeria…the 2 countries are exempt from the output cut deal and both have raised production significantly in recent months

5. The Venture is down 2 points at 757 as of 7:00 am Pacific but volume remains light…Ryan Kalt’s Clean Commodities (CLE, TSX-V), now chasing Zeolite, is the Venture’s volume leader with the stock up a penny-and-a-half to 6 cents…it climbed as high as 7 cents where it hit at least a temporary wall at the declining 200-day moving average (SMA)…Castle Silver Resources (CSR, TSX-V) finally appears to be breaking out above key resistance at 26 cents and a symmetrical triangle after a high volume session yesterday and follow-through this morning…CSR is up a penny at 27 cents…more news on the Cobalt front is expected shortly from CSR…the TSX is off more than 100 points in early trading while the Dow is up modestly…

6. Expect some more high-grade surface sample results soon from Jaxon Minerals (JAX, TSX-V) from the company’s Hazleton Property near Smithers…Jaxon provided an exploration update this morning, noting that several new significant massive sulphide occurrences have been identified at the historic Max zone – both stratiform and feeder/breccia systems to the overlying stratiform mineralization…the new showings and 8 newly discovered extensions to existing historical showings (along both strike and adjacent bedding) are distributed on the hillside from elevations of 539 m to 753 metres (214-m vertical extent) and over a lateral extent of approximately 1,000-m…a total of 122 rock samples have been submitted to the lab for assaying including 89 channel samples…

7.  Corvus Gold (KOR, TSX) announced this morning that it has completed a $4.65 million private placement with Coeur Mining at 75 cents per share for a total of 6.2 million common shares representing 6.2% of Corvus‘ issued and outstanding shares…proceeds will be used to advance KOR’s new Mother Lode Project over the next 6 months…Coeur also has the option to complete a second private placement financing with Corvus for an additional $4.65 million (CDN) at any time until January 15, 2018, at a 5% discount to KOR’s 10-day volume weighted average price…the second financing would provide Corvus with funding for its second phase of project development work at Mother Lode and the analysis of the integration of the Mother Lode and North Bullfrog projects into a unified mining plan…Corvus acquired the past producing Mother Lode Property last month from Goldcorp USA…an important untested target for additional high-grade mineralization is the intersection of the major, low-angle east-northeast-trending Fluorspar Canyon fault zone and the high-angle north-northwest-trending feeder structures approximately 50 m below the existing Mother Lode deposit (historic non-compliant resource of 8.5 million tonnes at a grade of 1.6 grams per tonne gold totalling 430,000 ounces of Gold)…

The most popular recent BMR articles/videos…

Meet The “King of Cobalt”

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

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CSR Builds Momentum At Castle Mine

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

1. Gold has traded between $1,222 and $1,228 so far today, ahead of tomorrow’s important non-farm payrolls report from the Labor Department…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,224 while Silver has retreated 10 cents to $15.98…Gold’s nearest support is $1,215, and the metal’s technical posture suggests a turnaround is not far off…minutes from the U.S. Federal Reserve’s monetary policy meeting yesterday showed no consensus on the pace of interest rate hikes…

2. Job creation in the U.S. private sector tailed off more than expected in June in another sign that the economy is getting closer to full employment, according to a report today from ADP and Moody’s Analytics…companies added 158,000 positions for the month, still strong but well below the robust 230,000 number the report showed in May.  “The job market continues to power forward,” Moody’s Analytics’ chief economist Mark Zandi said in a statement. “At this pace, which is double the rate of labor force growth, the tight labor market will continue getting tighter.”

3. After a sharp correction yesterday, Oil prices have resumed their upward trend this morning…traders today will be looking to see if data from the American Petroleum Institute (API) showing Crude inventories fell more sharply than expected last week are confirmed by government figures scheduled to be released within the hour…Russian Energy Minister Alexander Novak says the global pact by OPEC, Russia and other producers to cut Oil output has dampened price volatility and is reducing bloated inventories, so no immediate extra measures are needed to prop up prices…WTIC is up 83 cents at $45.96 as of 7:00 am Pacific…

4. A sign of the times – Tahoe Resources (THO, TSX) has received a provisional decision from the Supreme Court of Guatemala in respect of an action brought by the anti-mining organization, CALAS, against Guatemala’s Ministry of Energy and Mines (MEM)…the action alleges that MEM violated the Xinca indigenous people’s right of consultation in advance of granting the Escobal mining license to Tahoe’s Guatemalan subsidiary, Minera San Rafael…the provisional decision is in respect of a request by CALAS for an order to temporarily suspend the license to operate the Escobal mine until the action is fully heard…Tahoe says its understanding is that no Xinca representative or community is currently participating in the CALAS lawsuit against MEM…the company says it will take legal steps possible to have the ruling reversed and the licence reinstated as soon as possible, including immediately appealing the decision to the Constitutional Court…based on similar cases in the past, Tahoe estimates the Constitutional Court would rule on an appeal within 2 to 4 months…Escobal, approximately 40 km east-southeast of Guatemala City, is one of the largest Silver mines in the world…it has completed 3 years of production (21.2 million ounces of Silver in concentrate last year) and contains Proven and Probable reserves of 23.7 million tonnes grading 351 g/t Ag (267.5 million ounces)…THO has plunged $3.07 a share to $7.69 through the first 30 minutes of trading…

5. The Venture is up 2 points at 765 as of 7:00 am Pacific but volume remains light…Zecotek Photonics (ZMS, TSX-V), which jumped yesterday on high volume after news of a deal with a German car manufacturer, is off a penny at 31.5 cents in early trading…a 4-year weekly chart shows ZMS threatening to break out above a downtrend line that formed in 2014 and a 1.5-year horizontal channel…key resistance in the low 30’s…the broader markets are under some pressure this morning…the Dow, dragged down by tech stocks, is off 116 points while the TSX has slipped 74 points as of 7:00 am Pacific…

6. Imperial Metals (III, TSX) was halted pre-market this morning and then announced that 2nd quarter production results from the Red Chris mine were 15.4 million pounds of Copper and 6,159 ounces of Gold…the results are weaker than expected and similar to the production levels achieved in the 1st quarter of the year…Copper recovery continues to be lower than planned and even though higher grades of ore are scheduled to be mined in the 2nd half of the year, the company says it’s unlikely to meet the lower end of its 2017 targeted Copper production level of 85 million pounds of Copper…the revised production target for the year is in the range of 80 to 83 million pounds of Copper…Gold production at Red Chris for 2017 is expected to be approximately 40,000 ounces, the lower end of the targeted range of 40,000 to 45,000…

7. Trifecta Gold (TG, TSX-V), a recent spinout from Strategic Metals (SMD, TSX-V), has announced a proposed $1.5 million financing this morning consisting of up to $1 million in flow-through units at 25 cents and $500,000 in non-flow-through units at 20 cents…a half warrant is attached to each unit…field crews will soon mobilize to Trifecta’s Eureka and Trident properties in preparation for diamond drilling which is expected to commence late this month…

The most popular recent BMR articles/videos…

Meet The “King of Cobalt”

Nickel Mountain, Western China And The Eskay Camp Shocker

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine