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

1. Gold has traded between $1,217 and $1,229 so far today following light trading yesterday on the 4th of July…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,220 while Silver has retreated 18 cents to $15.93…Gold’s nearest support ranges from $1,215, the May low, to $1,200…geopolitical tensions are ramping up which should help maintain bullion’s floor at $1,200…North Korean leader Kim Jong Un went ballistic yesterday, delighting in the global furor created by his nation’s first launch of an ICBM as Americans celebrated the 4th of July…the dictator vowed today that North Korea will never abandon nuclear weapons and will keep sending Washington more “gift packages” of missile and atomic tests…on the domestic front, Fed minutes will be released at 11:00 am Pacific and should reveal some details about the Fed’s plan to begin the unwind of its $4.5 trillion balance sheet…

2. Oil prices are backing off today after posting their longest winning streak – 9 straight sessions – in more than 5 years…WTI is down 93 cents a barrel at $46.14 as of 7:00 am Pacific…the market was looking for an excuse to digest strong recent gains and found one after data compiled by Thomson Reuters Oil Research showed that Oil exports by OPEC climbed for a 2nd straight month in June…OPEC exported 25.92 million barrels per day (bpd) in June, up 450,000 bpd from May and 1.9 million bpd more than a year earlier…the rise in exports comes despite OPEC’s vow to rein in production until March 2018 and follows hot on the heels of Reuters’ monthly OPEC production survey which found output jumped to a 2017 high last month as members Nigeria and Libya (not part of the production cut deal) continued to pump more…however, with OPEC’s jaw-boning to prop prices back up, a possible slowdown in global supply growth and seasonally firming demand, Q3 should see a stabilization in prices with the possibility of an upside surprise…

3. The Venture is flat at 764 as of 7:00 am Pacific as volume remains light…Cornerstone Capital (CGP, TSX-V), just a few pennies shy of a new multi-year high, announced this morning that it has mobilized a 5th drill rig to its Cascabel Copper-Gold porphyry JV exploration project in northern Ecuador…2 more rigs will be active by the end of next month…Hole 23R-D1 (Rig 1 Alpala Central) is at a current depth of 988 m, following deviation from the parent hole (Hole 23R) at 710 m depth…hole 23R-D1 is a “daughter” hole testing for extensions to the high grade early quartz diorite intrusion intersected in Hole 23R, which recently returned 1,030 m @ 1.16 % CuEq (0.59% Cu, 0.90 g/t Au, true width of 824 m)…Granada Gold (GGM, TSX-V) has released a Technical Report on its updated Granada Gold Property resource estimate that outlines 5 million ounces of Gold in a revised Block Model and states the case for strong potential for the discovery of new high-grade resources at depth immediately north of the LONG Bars Zone pit-constrained Measured and Indicated near-surface resource…one of the best undeveloped opportunities on the Cadillac Trend, trading at support at 6.5 cents…the TSX is off 58 points through the first 30 minutes of trading while the Dow has retreated 47 points…

4. The Venture’s early trading leader is Zecotek Photonics (ZMS, TSX-V), up 3.5 cents at 29 cents, which announced this morning that it has signed a joint development agreement with one of Germany’s leading automobile manufacturers, to develop a brand-specific, 3-D head-up display (HUD) and entertainment console.  “We have signed a contract to develop the world’s first 3-D HUD system with a highly respected automobile manufacturer with a clear path to commercialization and widespread adoption,” said Dr. A.F. Zerrouk, Chairman, President and CEO of Zecotek.  “The co-operation agreement with a major German automobile manufacturer is a major milestone for our company and our 3-D display program. Our patented 3-D display technology has significant competitive advantages over systems in operation today.”

5. Barkerville Gold Mines (BGM, TSX-V) released additional high-grade drill results this morning from its continuing 130,000 m Phase 2 Island Mountain program at the company’s flagship Cariboo Gold project..the Company is currently exploring and delineating the Valley and Shaft Zones with 7 drill rigs, while an 8th drill rig is conducting exploratory drilling at Barkerville Mountain…the Valley Zone continues to corroborate veining corridors as demonstrated by drill hole CM-17–057 which intersected a broad network of veining averaging an impressive 17.3 g/t Au over 7.5 m at vertical depth of 170 m below surface…at the same elevation 130 m along vein strike to the southwest, drillhole CM-17–048 delineated additional veining grading 12.3 g/t Au over 4.5 m…in a previously unexplored portion of the Valley Zone, another new veining occurrence averaging 11.3 g/t Au over 3 m was discovered by drill hole CM-17–053 at a vertical depth of 140 m…because of the wide hole spacings and scarcity of historical drilling in these areas, all occurrences are open for expansion…BGM is off 2 pennies at 88 cents as of 7:00 am Pacific…

6. Enforcer Gold (VEIN, TSX-V) has commenced diamond drilling at the Montalembert Gold Project in northern Quebec…the company has budgeted for 5,000 m to 8,000 m of during this 2nd half of 2017.  “We are very excited to get drilling on the Galena and No. 2 veins and test the continuity and grade of the mineralized structures at depth,” stated President and CEO Stephen Roebuck.   “This will be the first ever large-diameter core drilling on the veins, which from our experience will be key to assessing their potential. The Galena and No. 2 veins are currently the most advanced drill targets on the property, but there are several other high-priority targets that we will be advancing to drill-ready stage in the coming months.”

7. Goldstrike Resources (GSR, TSX-V) has commenced the largest drill campaign to date on its flagship Plateau Property in the Yukon, backed by Newmont which has an option to earn up to a 75% interest in the project which hosts a newly-discovered Gold system that extends for 50 km in the Yukon…prior to the start of drilling, a 10,000 line km airborne magnetic survey and a district-scale geochemical program were completed at Plateau utilizing Newmont’s exploration team and equipment in addition to its proprietary techniques and technologies…

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

There is much to be encouraged about when examining the current state of the Venture, especially if you’re a contrarian (you have to possess some contrarian instincts to win big in this business).

Last summer, the Venture ran out of steam by early-mid August after a 7+ month run that sent the Index up a whopping 82%.

This summer, the Venture is ideally positioned to be gaining momentum by the middle of August given the bull market chart pattern that goes back to the beginning of 2016.

Furthermore, there are some striking similarities between the current bull cycle and the one during 2010–2011.  Of particular note, investors forget how sentiment at this time in 2010 was almost identical to the current period.  By late July 2010, after spending a few weeks below its rising 300-day moving average (SMA), the Venture snapped out of a “Wave 4”  consolidation and suddenly took off to the upside in a powerful move that greatly accelerated by late August and continued, almost unabated, until early March 2011 as the U.S. dollar plunged.

Today, the Venture is also in a “Wave 4” pattern and has fallen slightly below its 300-day SMA for the first time during this bull market, just like the Index did in the early summer of 2010.

The greenback is also in trouble now, from a technical standpoint, as it was during the summer of 2010.  President Trump, it should be noted, has no strategic advantage in coming to the aid of a struggling dollar.  In fact, he has been encouraging its fall.

To use a hockey analogy, the top stars succeed in part because they possess tremendous peripheral vision and can anticipate, more effectively than other players, how plays are about to develop and where the puck is going.

Applying “peripheral vision” to the markets, discernment and the skills of anticipation will make you a better investor, one who leads rather than follows or reacts.  Tonight’s 2 charts will help you with that.

In the coming days we’ll examine some fundamental factors that could drive the Venture much higher, including the top major discovery opportunities in British Columbia.

2016-2017 Venture Bull Market

This chart is one of the most important ones John has produced since the Venture bull market began early last year.

Key takeaways:

• Note the uptrend line from the spring of last year – the Venture is bouncing along that uptrend support!  
• For the first time during this cycle the Venture has fallen below its 300-day SMA – that’s a good sign as major near-term reversals to the upside have always occurred during a Venture bull market following a dip below the 300-day
• RSI(2) is at extreme oversold levels on this weekly chart
• %K (SS indicator) is at or near previous support
• This is no time to be discouraged or bearish – all the ingredients are in place for a big upside event!

The conclusion is simple:  The Venture is in the “last gasp” of its consolidation that started in August of last year.  Now is the ideal time to be accumulating in anticipation of a major move to the upside starting this quarter.  One can’t rule out the possibility of a “false breakdown” below the uptrend support and further beneath the 300-day, but history shows such a move would be brief and likely followed by a powerful wave higher given the rising 300-day and current oversold conditions.

2010-2011 Venture Bull Market

Note how the “Wave 4” pattern in 2010, just like now, took the Venture slightly below its rising 300-day SMA.  While that occurred, RSI(2) and the ADX indicator were both positioned very similar to where they are now.

Key resistance for the Venture in 2010 was around 1,690, just like 860 is key resistance now.  The 2010 resistance took time to overcome – nearly 9 months, just like the current resistance is taking time to conquer.

Be patient and have confidence that much better days are about to unfold for the Venture.

Check for an additional post later today and be sure to frequent our comments section throughout the day for updates and helpful information. BMR Morning Market Musings returns tomorrow.

1. Happy Independence Day to our American readers!…U.S. equity markets are closed, which means light volumes today in Canada, but Gold has traded between $1,221 and $1,227 so far today after yesterday’s plunge below a support level in the mid-$1,230’s…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,225 while Silver is off 4 cents at $16.07…base metals have retreated slightly after strength last week…meanwhile, Cobalt is hovering around another new post-2008 high of $27 a pound…the U.S. Dollar Index has edged up one-tenth of a point to 96.26…

2. Oil prices are up for the 9th straight trading session, 7 cents higher at $47.14…that’s the longest winning streak since 2012…Crude took a pounding through most of June but sentiment began to shift recently when U.S. data showed a dip in American output and a slight fall in drilling for new production…combined with OPEC’s jaw-boning to prop prices back up, a possible slowdown in global supply growth and seasonally firming demand, Q3 should prove to be much better for Oil prices than Q2…

3. Commercial production has officially started at Pretium Resources‘ (PVG, TSX) Brucejack mine in the Eskay Heart of Gold Camp…under the credit agreement among Pretium and its lenders, the commercial production date is defined as the first day of the calendar month immediately following the first calendar month during which the process plant processes ore at an average rate of 60% of one-12th of yearly nameplate capacity (985,500 tonnes per year or 2,700 tonnes per day)…during the month of June, the process plant at Brucejack processed 70,805 tonnes of ore (87.4% cent of one-12th of yearly nameplate capacity) for an average of 2,360 tonnes per day…higher-grade ore is now being introduced to the process plant as work continues on optimizing recoveries in the gravity and flotation circuits…

4. The Venture has retreated 4 points to 763 as of 7:00 am Pacific in light trading…the TSX, meanwhile, is off 34 points while U.S. markets of course are closed after a buoyant session yesterday to begin the 2nd half of the year…financials led the way as the Dow notched another record high…later this week, the Federal Reserve will release the minutes from its June meeting while the Labor Department will release its monthly jobs report on Friday…

5. Orca Gold (ORG, TSX-V) is scheduled to close a $15 million non-brokered private placement tomorrow through the issuance of 37.5 million units at a price of 40 cents per unit.  “With the recent discovery of a new water source near our Block 14 Project, we are now conducting an extensive drill program to expand the overall resource base of the project towards the completion of a feasibility study and a construction decision,” stated CEO Richard Clark. “We look forward to delivering a steady flow of news from this program over the coming months. The government of Sudan has been extremely supportive of our efforts in developing a modern commercial Gold mine in the country. Over the past few years, we have witnessed Sudan’s growing success in cultivating a positive relationship with its Gulf neighbours and the U.S. and expect to soon see more of our international peers join us in uncovering the prolific Gold endowment of this mineral-rich country.”

6. Hong Kong billionaire Li Ka-shing, bullish on Uranium, has more than doubled down on his investment in NexGen Energy (NXE, TSX)…NexGen jumped 23 cents Friday and is up again in early trading today after announcing $110 million (U.S.) in financing from CEF Holdings, 50% owned by Li’s CK Hutchinson Holdings…that follows a previous deal for $60 million (U.S.) a year ago…

7. Canadian Zeolite (CNZ, TSX-V) was one of last week’s top performers on the Venture, jumping 40% to close Friday at 84 cents…news flow has picked up since late May while the stock’s 50-day moving average (SMA) recently reversed to the upside after being in decline since February…

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

BullMarketRun.com Special Report – Part 3

Northwest British Columbia’s Eskay Camp has the right geology to produce world class deposits and mines as evidenced by Eskay Creek, Snip, KSM and Brucejack.  More big discoveries are really just a matter of when, not if, and multiple drill programs over a broad area this summer will be testing such highly prospective ground that this prolific Camp could suddenly produce some results that immediately command the attention of the entire market.  It has happened before and odds are it’ll happen again.

Dr. Peter Lightfoot, now heading up Lightfoot Geoscience after 2 decades with Inco and Vale.

Of particular interest, as it could rewrite the geological playbook for the Canadian Cordillera, is the concept of a Nickel-Copper-rich massive sulphide deposit in the heart of this Camp, with potential by-products such as Gold, Platinum, Palladium and Cobalt.  Such a possibility has become more than just wishful thinking for a determined group of geologists and geophysicists who have spent many months compiling and reinterpreting historical data from the intriguing 1960’s E&L discovery at Nickel Mountain, just 11 miles southwest of Eskay Creek, and meshing that with fresh data including a recently completed VTEM survey with highly encouraging preliminary results and last summer’s promising surface sampling.

The E&L“checklist“ is truly compelling and has caused Dr. Peter Lightfoot – one of the world’s foremost Nickel sulphide experts – to refer to the project as being “in the top quartile of early stage Nickel sulphide prospects in the world.”  That says a lot coming from an individual who served as chief geologist responsible for regional and near-mine exploration at Voisey’s Bay, Sudbury and Thompson, and who also wrote the first major textbook on the geology of the ore deposits at Sudbury. 

The ground game to attempt to confirm the district’s only Nickel sulphide system as a potential major new deposit has now started for Garibaldi Resources (GGI, TSX-V).

Revisiting And Reinterpreting Geological “Hotspots” 

The fact that not a single drill hole has been completed at Nickel Mountain in nearly 50 years, after such encouraging near-surface results in the 1960’s that produced an historic (non-compliant) resource of 3 million tonnes grading 0.80% Nickel and 0.62% Copper, speaks to how even more incredible this district could be if aggressive modern exploration efforts and “outside the box” thinking were applied on a grand scale at under-explored properties throughout the region.  That process has started at KSP, Snip, SIB, Treaty Creek (Tudor) and the Iskut Project (Seabridge) in addition to the E&L as you can see on the map, but still has a long way to go.

E&L’s Impressive Surface/Near-Surface Mineralization

Channel sampling of outcrop at the top of Nickel Mountain last summer by GGI crews returned an 8-m section of massive, semi-massive and disseminated sulphides grading 2.3% Ni, 2.2% Cu, 0.19 g/t Au, 0.32% Pt, 0.39% Pd and 0.10% Co.

Meanwhile, sulphur analysis showed high tenor ranging from 4.8% to 8% Ni and 2.1% to 10.9% Cu (tenor is the metal content in 100% sulphide and exceptional levels such as these suggest very good potential for a high quality style of mineralization at the E&L).

Limited near-surface drilling in the 1960’s – a total of 12 backpack and diamond drill holes to a maximum depth of only about 120 m (400 feet) – intercepted several well-mineralized zones (leading to an initial resource) and included the following interesting facts (source: GGI Oct. 14, 2016 news release):

• 1 hole in 1965 was lost at approximately 28 m and graded 2.05% Ni and 0.92% Cu between 18 m and 27.5 m (core recovery just 67%);
• 4 diamond drill holes in 1966 in the NW zone totaled 342 m and returned average grades of 0.85% Ni and 0.67% Cu while the deepest hole (DDH66–3) was actually stopped at a depth of 121 m even though it encountered visible massive sulphides in the final meter of the hole; 
• At this point, in a critical decision that would ultimately sideline the project for decades, explorers decided to drive a 450-m tunnel into Nickel Mountain toward the west, at a depth of 390 m (nearly 1,300 feet) below the surface showings and approximately 550 m due south of those showings in an attempt to intersect the mineralized zones from underground – even though it was still “early stages” and geologists had little understanding yet regarding the geometry of a system that would turn out to be the only Nickel-Copper-rich magmatic massive sulphide system discovered to this day in what is now a proven world class mining Camp. 

Historical Mistakes Lead To Exceptional Initial Drill Targets For Garibaldi

Below is the image released recently by GGI as part of its expanded E&L Nickel Mountain Fact Sheet.

Around 1970 Sumitomo was able to complete a series of “blind” drill holes from underground, but new information today makes it hard to understand the strategy behind the direction their holes were drilled.  The gabbro host rocks were found to extend down to the adit level but only low-grade mineralization was intersected in Sumitomo’s holes, inferring that pipe-like structures plunged much differently than they had assumed.  It’s believed that one of their drill holes actually went right through the side of the mountain into the crisp air!

Amazingly, Sumitomo never tested to any significant degree the highly prospective target area defined by GGI’s team of Nickel sulphide experts who have had the benefit of hindsight, a new understanding of Nickel sulphide deposits in small intrusions that has developed over the last couple of decades, and a level of geophysics that simply wasn’t available in the 1960’s.  VTEM data are obviously very encouraging regarding this area and suggests that tonnage has the potential to build dramatically while grades could increase as well if a strong conductor is related to massive sulphides.

Click on the arrow to listen to Dr. Lightfoot’s interpretation of what may have gone wrong for Sumitomo:

Moving Forward

Mistakes made in underground drilling in 1970, hard to fathom today but understandable in an historical context, led to disappointing results after the early excitement from surface and killed the E&L Project at that time, especially with Sumitomo needing to write a check in the many millions of dollars as part of its option deal.

The false assumption that the E&L could be no more than just a very small deposit, with not enough tonnage to ever become a mine, unfortunately evolved into “fact” over the years in the minds of explorers and investors which helps explain why the property was never seriously revisited until just a year ago, immediately after the conclusion of a 5-year resource bear market and at a time when much more has been learned about the prolific but geologically complex Eskay Camp.

High-grade Nickel sulphides outcrop at the top of Nickel Mountain with massive sulphides intersected to a depth of 400 feet in 1960’s drilling.

This industry is rife with such examples, excellent prospects that people gave up on far too early that eventually were re-evaluated and developed into stunning deposits and robust new mines.

With some very good luck, Sumitomo just as easily could have hit something huge half a century ago.  They essentially threw some darts from underground and missed as they simply didn’t have a handle on the geometry of the system.  Of course, all this activity occurred PRIOR to the huge discoveries made in later years at Eskay Creek, Snip, KSM and the Valley of the Kings.  There was limited knowledge of this incredible district in the 1960’s, and so much more has been learned about Nickel sulphide deposits since then as well.

The “truth machine” will soon go to work in an effort to prove that the E&L is a much bigger Nickel-Copper-rich sulphide system than  originally outlined, perhaps one of world class grade and size considering that nothing in this district is on a small scale.

It’s still very early in the game but the ride could be wild, perhaps creating the kind of excitement seen in 1989 when Murray Pezim hit the jackpot at Eskay Creek and the entire Venture exploded out of an early summer slumber.

Part 2:  Nickel Mountain, Western China and the Eskay Camp Shocker

Part 1:  Where Some “Shock And Awe” Could Come From To Ignite The Venture

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

Disclaimer:

BullMarketRun.com (BMR) is reader-funded and we accept no advertising on our site. No fee or compensation was paid to BMR or its personnel for the creation or distribution of this report. Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulation in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time. Owner/Publisher of BullMarketRun.com is Terry Dyer of Powell River, British Columbia.

Welcome to a special CANADA DAY BMR post!

• Extraordinary new Venture chart from the beginning of the bull market that provides dramatic new clues!…
• The “State of the Loonie” (you may be surprised!) as Canada celebrates its 150th birthday…
• Daniel’s Den – Daniel returns with valuable nuggets of info after visits to Engineer Gold mine and Blende Zinc-Lead-Silver deposit!…

In addition, check back soon for Part 3 with Dr. Peter Lightfoot, renowned Nickel sulphide expert, on the growing possibility of an important new Nickel-Copper-rich massive sulphide discovery in the heart of northwest B.C.’s Eskay Camp.

Part 2:  Nickel Mountain, Western China and the Eskay Camp Shocker

Part 1:  Where Some “Shock And Awe” Could Come From To Ignite The Venture

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!

To read today’s report, click here or login as a current subscriber with your username and password.

Happy Canada Day to our many Canadian readers!

Today marks a very special Canada Day because this great nation is celebrating its 150th birthday.

As Canadians, we must never forget how incredibly blessed we are to live in this country.  And it must be stressed that our good fortune has not occurred by accident – young Canadians, especially, need to be reminded about that consistently.

Unfortunately, the facts are that we have stumbled into our 150th birthday with a host of problems from pipelines that can’t get built, thanks to climate change fanaticism, to multiple political and social leaders across the nation who know how to distribute wealth but possess little understanding of how to actually create it.  External threats, such as radical Islamist terrorism, are downplayed due to the new political correctness that has infected this country like a cancer.

Canadians going back to the 19th century built a great nation through a hard working entrepreneurial spirit, an unshakable commitment to freedom and democracy, visionary leaders at all levels of society, courageous men and women in uniform, and compassion and respect for others.  What was built, and how it was built, should never be taken for granted.

God has gifted each of us and has protected our nation – to Him we must be grateful.

Significantly, our freedom has not come without a price – think today of all the countless brave men and women who have fought for our country to protect our freedoms and democracy, and how so many of them made the ultimate sacrifice to help keep our nation free and prosperous.

On our nation’s 150th birthday in particular, remember those who gave their lives for you to help Canada get to 150!  If you know a war veteran, make a special attempt to thank him or her for their service.  And keep in your prayers and thoughts those who are currently serving in our armed forces.

From our entire team at BMR, enjoy a safe and awesome Canada Day with your friends and family.

Check back for separate BMR postings later today and tomorrow.  Canadian markets are closed Monday.