BullMarketRun.ca

Check back later today for an additional post and visit the BMR comments section throughout the day for updates and helpful information. BMR Morning Market Musings returns after Labour Day.

1. Gold has traded between $1,302 and $1,311 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,310…holdings of Gold in physically-backed exchange traded funds jumped to 54.176 million ounces on Monday, up more than 2% since August 9, before some minor selling the last couple of days…Silver is relatively unchanged at $17.41…Copper has edged up another penny to $3.07…Nickel is 4 cents higher at $5.26…Crude Oil has gained 67 cents to $46.57 while the U.S. Dollar Index has rallied one-fifth of a point to 93.10 ahead of tomorrow’s non-farm payrolls report…

2. U.S. Crude Oil prices are on track to post the steepest monthly losses in more than a year as concerns spread over falling demand in the world’s top Oil-consuming country after storm Harvey knocked out almost a quarter of its refineries…prices have rallied in the Oil products markets, however, with U.S. gasoline futures hitting a more than 2-year high above $2 a gallon, buoyed by fears of a fuel shortage just days ahead of the Labor Day weekend that typically sees a surge in driving…Harvey, which brought record flooding to the U.S. Oil heartland of Texas and killed at least 35 people, has paralyzed at least 4.4 million barrels per day (bpd) of refining capacity, according to company reports and Reuters‘ estimates…

3. U.S. consumer spending rose slightly less than expected in July and annual inflation increased at its slowest pace since late 2015, which could bolster expectations that the Federal Reserve will delay raising interest rates until December…the Commerce Department reported this morning that consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3% last month after an upwardly revised 0.2% rise in June…economists polled by Reuters had forecast consumer spending rising 0.4% in July after a previously reported 0.1% gain in June…the report still suggested the economy got off to a strong start in the 3rd quarter after GDP increased at a 3.0% annualized rate in the April-June period, the fastest in more than 2 years…

4. Copper prices have hit their highest level in almost 3 years, taking gains in August to 7.5% after an unexpected acceleration in Chinese manufacturing boosted the outlook for demand in the world’s top metals consumer…Copper is set to post its 3rd consecutive monthly gain with Aluminium, Nickel and Zinc on track for their biggest monthly increases in several years…supply side reforms and government policy supports to the private sector appear to be having a positive impact on China’s economy, and that’s certainly bullish for the entire base metals sector…

5. The Dow is up 69 points as of 7:00 am Pacific…the TSX is also stronger in early trading, up 42 points…the Venture has added 1 point to 774 as it continues to work through resistance in the 770’s entering September…GT Gold (GTT, TSX-V) remains halted pre-market, pending news…Maya Gold & Silver (MYA, TSX-V) has hit a new multi-year high of 36.5 cents…

6. Klondike Gold Corp. (KG, TSX-V) has closed the second tranche of its non-brokered private placement financing originally announced August 1 for gross proceeds of $2.1 million in flow-through funds…after closing a $2 million placement in early April, this additional $5 million private placement has allowed the company to expand this year’s drill program and is anticipated to fund an expanded program through all of 2018….Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, now owns and controls 11 million KG shares and 5.5 million share purchase warrants, representing approximately 12.6% of Klondike’s issued and outstanding shares…KG is up 3 pennies at 54 cents through the first 30 minutes of trading…

7. Castle Silver Resources (CSR, TSX-V) has completed 2,400 m of drilling at the past producing Castle mine near Gowganda, Ontario…22 holes mostly tested structures on the first and second levels of the mine from surface, targeting areas prospective for Cobalt mineralization ahead of further drilling from underground as well as bulk sampling…in addition, IOS Services Geoscientifiques recently deployed Niton XRF technology on the first level of the Castle mine which supported the potential for high-grade Cobalt…meanwhile, additional chip samples from underground have mysteriously returned significant Gold values from a second lab – an average of 3.7 g/t Au in 5 samples…another lab reported 5.7 g/t Au from an 82-kg sample earlier this summer (along with 1.08% Cobalt and 46 g/t Ag) that was crushed to minus 10 mesh and blended…Castle was mined exclusively for high-grade Silver in the 1900’s but clearly appears to have polymetallic potential…after a 300% price increase this year, CSR has corrected to its rising 200-day moving average (SMA) at 19 cents which represents the top of a very strong support band…

Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember

How To Bring A Junior Resource Market To Life!

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

Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine

BullMarketRun.com Special Report

Eskay Camp, British Columbia

Blue skies have turned grey again in the Eskay Camp with some loud thunder this morning that may have been an omen of things to come on the exploration front.

The forecast, however, is calling for sunny, almost hot conditions by the beginning of next week.  And “hot” is certainly an appropriate way to describe how the exploration scene is right now in this incredible multi-commodity district where the metal endowment is truly world class.  Numerous companies are drilling for everything from high-grade Gold to Copper-Gold porphyry to precious metal-enriched VMS to the Golden Triangle’s first Nickel-Copper-rich sulphide system.

Colorado Resources (CXO, TSX-V), which recently secured Goldcorp (G, TSX) as a major new shareholder, has been the most active junior in this Camp since 2014.  The company’s superb technical team, its efficiency on the ground and its massive land package (more than 600 sq. km) rich with known mineralization and deposit potential made CXO an ideal vehicle for Goldcorp to extend its reach into this burgeoning Camp.

Eskay Creek, Snip, KSM and Brucejack are products of exceptional Canadian exploration and mining ingenuity while the district has also been blessed by a plethora of new infrastructure in recent years, in part due to major investments by AltaGas (ALA, TSX).

Has the broader market woken up yet to the shear scale, mineral and grade potential of a Camp that covers more sq. km than the individual land masses of 75 countries?

BMR put that question to Colorado President and CEO Adam Travis at the CXO staging area, shared by several companies, near the McLymont Hydroelectric Facility – click on the arrow.

Colorado Catalysts

Colorado, which is expected to officially close its financing with Goldcorp any day now, has yet to report results from its summer drill program at KSP which began in early July.  Given normal lab turnaround times these days, initial numbers should start to flow by early September.  Significantly, KSP is now 100% owned by CXO after a deal earlier this month with Seabridge Gold (SEA, TSX) which has its hands full to the northwest with its Iskut Project (high-grade Gold potential) and to the east of course, with KSM which boasts the world’s largest reserves of Copper and Gold.

Rest assured, given what CXO learned from last year’s major drill program, KSP could flex its muscles in a very big way in September:

• The 53 drill holes at Inel last year had a 60% success rate in returning high-grade Gold intercepts (greater than 5 g/t)
• The 2016 drill holes at Inel tested just 1 of 10 surface Gold-in-soil anomalies and only to an average depth of 125 m;
• The Inel area hosts at least 6 other targets adjacent to the area drilled in 2016, and these targets range in size from 8 hectares to 18 hectares and returned average Gold values in soils from 0.66 g/t to 2.9 g/t Au
• Gold anomalous zones are not restricted to just the main contact between the volcanics and sediments in a semi-conformable nature as originally thought.  What that means is that exploration targets are now known to occur from near-surface and to greater depths than anticipated.  Mineralization is also hosted by a broader range of rock types than initially believed
• Multiple other project areas throughout KSP as indicated in the map above
  
• Keep in mind that the Snip mine, located 15 km northwest of Inel, hosted 1 million ounces of Gold within an overall strike length of 300 m and to 500-m depths while averaging 2.5 m in thickness
  
• The scale and geology of KSP has Goldcorp excited – regular investors should be, too
  

In addition to KSP and other holdings in the prolific Eskay Heart of Gold Camp, Colorado’s efforts at diversification over the past year have further strengthened the company with 2 new promising Gold properties – Green Springs in Nevada and Kinaskan in the Red Chris district. Kinasakan was expanded early this year when Travis cut an astute deal with Kaizen Discovery (KZD, TSX-V) to snatch the Castle Property contiguous to GT Gold’s (GTT, TSX-V) Tatogga Property where, of course, there has been a high-grade Gold drilling discovery.

It all adds up to what promises to be an exciting final 4 months of 2017 for Colorado Resources.

Note:  John and Jon hold share positions in CXO.

Check back later today for Daniel’s Den and visit the comment section throughout the day for updates and helpful information. BMR Morning Musings is preempted during our special coverage from the Eskay Heart of Gold Camp.

1. Gold has traded between $1,305 and $1,314 so far today after the release of better-than-expected U.S. Q2 GDP growth and private payroll numbers for August…as of 7:00 am Pacific, bullion is down $2 an ounce at $1,307 after touching its best levels since the U.S. presidential elections in early November…Silver is relatively unchanged at $17.37…Copper, trading at levels not seen since September 2014, is flat at $3.06 while Nickel has eased off 5 cents to $5.23…Cobalt is near its 2017 high, up 45 cents at $27.67…Crude Oil has backed off 41 cents to $46.03 while the U.S. Dollar Index has rallied one-third of a point to 92.72..

2. The U.S. economy grew faster than most analysts believed in the 2nd quarter, notching its quickest pace in more than 2 years, and there are signs that the momentum was sustained at the start of the 3rd quarter…GDP increased at a 3.0% annual rate in the April-June period, the Commerce Department reported in its 2nd estimate this morning…the upward revision from the 2.6% pace reported last month reflected robust consumer spending as well as strong business investment…growth last quarter was the strongest since the 1st quarter of 2015 and followed a 1.2% pace in the January-March period…economists polled by Reuters had expected that Q2 growth would be bumped up slightly to a 2.7% pace…

3. Gold’s momentum temporarily stalled and the greenback got a lift early today after news that U.S. firms in the latest ADP report created 237,000 new private-sector jobs in August…consensus estimates had called for around 185,000 new private sector jobs to be created…traders closely watch the ADP data as a precursor to the Labor Department’s monthly jobs report that normally comes out later in the same week…non-farm payrolls will be released Friday and are expected to rise between 170,000 and 180,000…the greenback is trying to rally after plunging Friday when Fed Chair Janet Yellen failed to mention monetary policy at the closely watched economic symposium in Jackson Hole, Wyoming…

4. The Dow is off 10 points as of 7:00 am Pacific…Goldman Sachs said Hurricane Harvey will have significant political implications for Congress later this year…the firm said the catastrophic storm would reduce the probability of a federal government shutdown to 35% from its previous forecast of 50% just weeks ago due to political risks from failing to fund Texas relief efforts…the TSX has climbed 11 points to 15,094…Toronto’s Air Canada Centre (ACC) is being renamed Scotiabank Arena in an $800 million deal over 20 years that marks one of the biggest spending on naming rights in North America…the agreement with Maple Leaf Sports and Entertainment is 10 x the annual $4 million Air Canada paid to attach its name to the home of the Toronto Maple Leafs, the Toronto Raptors and various shows…the Venture has slipped 2 points to 775 as it continues to work through resistance in the 770’s…GT Gold (GTT, TSX-V) was halted pre-market, pending news, with a 2nd batch of drill results expected from the Saddle discovery zone at its Tatogga Property in the Red Chris district…Maya Gold & Silver (MYA, TSX-V) is threatening to break out to a new high this morning, up 2.5 cents at 35 cents through the first 30 minutes of trading…MYA has “first mover” advantage in Morocco’s newly privatized mining industry…Morocco contains about 75% of the world’s estimated reserves of phosphates but is now significantly diversifying its mining industry…

5. ATAC Resources (ATAC, TSX-V) has pushed higher after releasing results yesterday of an additional 4 diamond drill holes from the Conrad and Osiris zones within the Osiris Project at the Rackla Gold Property in the Yukon…highlights from the Conrad zone included 12.5 m grading 20.78 g/t Au in OS-17–238 (newly identified and near-surface mineralization) while OS-17–236 intersected 4 high-grade Gold intervals…drilling also confirmed continuity along the western limb of the Osiris zone…

6. An exploration crew has been mobilized to Blind Creek Resources’ (BCK, TSX-V) 100%-owned Blende Zinc-Lead-Silver Project situated 63 km north of Keno Hill in north-central Yukon…the work program, conducted by Moose Mountain Technical Services, was commissioned earlier this summer by Blind Creek to prepare a NI-43–101 resource estimate and technical report for the historic Blende deposit…more than 24,000 m of diamond drilling in 125 holes has been completed at Blende to date with the majority of that drill core still stored on the property…

7. Kootenay Silver (KTN, TSX-V) is steady in early trading after reporting that it has extended a large new mineralized zone by 140 m northeast of original discovery hole CC-17–26 at its 100%-owned Venadas target area at La Cigarra in Mexico…assays from hole CC-17–28 returned a series of intercepts including 7 m @ 169 g/t Ag, 12 m @ 121.2 g/t Ag and 24.2 m @ 92.9 g/t Ag (true widths unknown)…the strength and intensity of brecciation, veining and alteration observed in hole CC-17–28 is consistent with discovery hole CC-17–26 which bottomed in veining…textures are indicative of a variant of an epithermal hydrothermal breccia complex…

Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember

How To Bring A Junior Resource Market To Life!

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

Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies

The Most Important Venture Development Since The New Bull Market Began

CSR Builds Momentum At Castle Mine

Eskay Heart of Gold Camp, NW British Columbia

8:45 pm Pacific

Dramatic moves in both Gold and Silver today, driven by a weak U.S. dollar and another serious provocation from North Korea.

Bullion is up a further $7 an ounce at $1,316 as of 9:00 pm Pacific while Silver is unchanged at $17.43.

Tonight, updated charts for Gold, Silver and the TSX Gold Index along with some money-making stock ideas.