BullMarketRun.ca

Visit the BMR comments section throughout the day for updates and helpful information…

1. Gold has traded between $1,224 and $1,233 so far today…as of 7:00 am Pacific, the yellow metal is up $3 an ounce at $1,230…soft U.S. inflation figures in September have prompted some investors to re-evaluate the Fed’s hiking path beyond December…with President Trump’s recent criticism of the Fed adding to the factors that have weakened the dollar, Gold seems likely to maintain its momentum during this last half of October…Gold prices could easily post more gains due to record short positioning, with prices potentially rallying to near $1,280 an ounce, according to respected TD Securities‘ analyst Bart Melek…“Considering that Gold is sitting very near a key resistance point ($1,228/oz, 100-day SMA) and that there is record short exposure, it would not be surprising to see a breakout toward the 200-day SMA near $1,277 should U.S. equities show additional weakness,” Melek commented…Silver is up 9 cents at $14.75…Copper is off 3 pennies at $2.83…Nickel is 4 cents lower at $5.67 while Zinc is flat at $1.19…Cobalt has shot up $2.04 a pound to $28.35…Crude Oil has eased off another 24 cents to $71.51 a barrel while the U.S. Dollar Index is up one-fifth of a point at 95.19…

2. Cannabix Technologies (BLO, CSE) announced this morning that it has short listed 2 potential medical device development companies in order to develop the next version of its Marijuana Breathalyzer as well as create multiple devices that would be used for pilot testing…meanwhile, the company commented on tomorrow’s “historic” day in Canada when recreational marijuana officially becomes legal…“The introduction of legalized marijuana use in Canada is a watershed moment as it relates to public safety on our roads and workplaces.  Cannabix applauds the significant efforts that are underway by the Government of Canada and others to increase public awareness of the dangers of drugged driving on our roadways and the acute problems of being under the influence of drugs in the workplace.  A recent survey by the Angus Reid Institute (September 25, 2018) finds a majority of Canadians lack confidence in the ability of their community police to assess and punish those driving under the influence of marijuana.  Furthermore, according to MADD Canada, drugs are present in fatal crashes nearly twice as often as alcohol and that Canada’s existing system does a very poor job of detecting drivers under the influence of drugs (news release May 29, 2018).  The Human Resources Professionals Association in January 2018, conducted a survey in Ontario and found that 71% of its members do not feel prepared for legalization, with almost 48% citing concerns about ensuring a safe workplace.  As the issue of drugged driving and influence of drugs in the workplace becomes increasingly acute, Cannabix is using its technology, research and development (R&D) and scientific experience to develop effective tools to aid law enforcement and help governments and the public transition to marijuana legalization in various jurisdictions”…BLO is up 2 pennies at $2.25 as of 7:00 am Pacific…historically, big moves have occurred in BLO after reversals to the upside around the same time in its 50 and 100-day SMA’s (a recent technical development)…

3. It’s a disgrace that Canadian politicians seem more concerned about getting pot to market than Oil to market…what have we become as a country?…we’re teaching our kids that Oil is “dirty” and is “killing” the planet, but smoking dope is just fine?…who took us down this slippery slope?…Canadian Oil companies are scrambling to find places to store or ship their “distressed barrels” amid record-setting $50 (U.S.) per barrel discounts, which is hitting a large proportion of their production, due to a lack of pipeline capacity…this is a national economic tragedy, costing Canada billions of dollars, yet the vocal left is more concerned about pinning Canada to a globalist “climate change” agenda that has turned into a tax-hiking, Big Government scam…Calgary-based heavy Oil producers have been scrambling to hedge, frantically searching for more railway cars (environmentally less friendly than pipelines, ironically!) or storage space…if you add it all up, GMP FirstEnergy analyst Michael Dunn said, the 3.5 million barrels of per day of total Western Canadian Oil production is trading at a minimum $30 (U.S.) per barrel discount, which means producers are losing out on around $100 million in revenues every day…governments (taxpayers) are also losing out, too…Canada has been blessed with Oil, it helped create the wealth Canadians take for granted, but marijuana is more of a priority now than pipelines…go figure…

4. Further to the story that BMR broke last Friday, Sable Resources (SAE, TSX-V) announced this morning that it’s the new owner of a nearly 2,000 sq. km land package in British Columbia’s southern interior…as we reported, the belt was originally staked by 2 individuals connected with Barkerville Gold (BGM, TSX-V) at the end of September, but who was really behind that staking remained to be seen until now…the land package covers over 70% of workable ground of the Spences Bridge Gold Belt (SBGB), a 200-km-wide, emerging low-sulphidation epithermal Gold Belt that Sable believes to be prospective for Fruta del Norte style high-grade epithermal mineralization…Sable also announced this morning that it has formed a strategic alliance with Westhaven Ventures (WHN, TSX-V) which released high-grade intercepts at its Shovelnose Project (part of the SBGB) October 2…the alliance brings together Sable’s and Westhaven’s technical expertise and combined control of 86% of the Gold Belt (225,000 hectares)…the CEO and Chairman of Sable is long-time industry player Tom O’Bradovich, the former President and CEO of Barkerville (January 2015 to July 2016)…

5. The Wall Street Journal reported this morning that Uber Technologies recently received proposals from Wall Street banks valuing the ride-hailing company at as much as $120 billion in an initial public offering that could take place early next year…that eye-popping figure is nearly double Uber’s valuation in a fundraising round just 2 months ago and more than General Motors, Ford Motor and Fiat Chrysler are worth combined…Goldman Sachs and Morgan Stanley last month apparently delivered the valuation proposals to Uber…these documents, which typically advise on how to position shares to potential investors, are a common step before banks are formally hired to underwrite IPOs…the bank presentations show Uber gathering momentum toward an IPO that is among the most hotly anticipated on Wall Street and Silicon Valley and could come sooner than expected as the new-issue market sizzles…founded in 2009 and sustained by an ample supply of private capital, Uber is seen as a bellwether for a crop of highly valued startups that have delayed tapping the public markets…

6. The Dow has jumped 257 points as of 7:00 am Pacific, and the S&P and NASDAQ are broadly higher, on positive earnings news from the likes of heavyweights Morgan Stanley, Goldman Sachs, Johnson & Johnson and UnitedHealth…in Toronto, the TSX has climbed 80 points while the Venture has slipped 6 points to 705 on weakness in the cannabis sector…Aben Resources (ABN, TSX-V) is under pressure after releasing assay results from 3 holes drilled (the first ever) at its South Boundary target, 1.5 km from strong precious metal mineralization drilled into at the North Boundary zone…hole FK18–21 intersected 379.2 meters of 0.10 g/t Au starting at a depth of 4.8 m, including 89 m of 0.24 g/t Au and 9 m of 0.95 g/t Au…Gold values in all 3 holes at South Boundary ranged from trace amounts to greater than 5 g/t in the 1 or 2-meter sample intervals…certainly won’t get the market excited but geologists are encouraged by the broad zones of pervasive alteration with abundant quartz-sulphide veins and mineralized breccia zones in this first-pass drilling…Aben has completed drilling at its Forrest Kerr Project with results pending for 24 more holes from North Boundary…

7. PyroGenesis Canada (PYR, TSX-V), the world leader in the design, development, manufacture and commercialization of advanced plasma processes, announced this morning that it has completed construction of its cutting-edge additive manufacturing metal powder production facility…the facility will be strictly dedicated to the production of plasma atomized Ti-6Al-4V powders, primarily targeting the aerospace and biomedical industries…“We are very excited about having completed this milestone.  It puts PyroGenesis squarely on the map as a quality supplier of Ti-6Al-4V powder for the AM industry,” stated Massimo Dattilo, VP of PyroGenesis Additive…“In parallel, we are also investigating other materials which can be produced with our other reactors, currently in our main facility”…this $2.5 million facility now houses 1) a new plasma-based atomization unit, incorporating some of the previously announced advances;  2) inventory storage; and (3) logistics operations…these changes have reduced capital cost significantly, according to the company, while future innovations (once completed) will increase yield and production rates…PYR appeared to bottom in early September in the high 30’s…it’s off a penny at 50 cents as of 7:00 am Pacific…

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Visit the BMR comments section throughout the day for updates and helpful information, and watch for the latest version of Daniel’s Den.

1. Gold is building on last week’s gains, hitting a new 10-week high this morning…the yellow metal has traded between $1,220 (potential new support) and $1,234 so far today and is up $12 an ounce at $1,230 as of 7:00 am Pacific…holdings of SPDR Gold, the largest Gold-backed ETF, rose nearly 2% last week…that was the biggest weekly inflow since January, having registered declines of more than 4 million ounces since hitting a peak in late April…the International Monetary Fund last week said that risks to the global financial system, which have risen over the past 6 months, could increase sharply if pressures in emerging markets escalate or global trade relations worsen…Silver is up 15 cents at $14.73…Copper is steady at $2.86…Nickel has added 4 pennies to $5.75 while Zinc is flat at $1.20…Cobalt is unchanged at $26.31 a pound…Crude Oil has eased off 14 cents to $71.20 a barrel while the U.S. Dollar Index has fallen one-quarter of a point to 95.11…

2. U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly 2 years…the Commerce Department reported this morning that retail sales edged up only 0.1% last month, well below the consensus estimate, after a similar gain in August…however, excluding automobiles, gasoline, building materials and food services, so-called “core” retail sales jumped 0.5% last month…core retail sales correspond most closely with the consumer spending component of GDP…

3. Sears, the once-dominant retail chain that changed how North Americans lived, filed for bankruptcy this morning…the 132-year old company, which had already shut its Canadian stores, has been struggling for years…the final straw was a $134 million debt payment due today that it could not afford…Sears Holdings (SHLD, NASDAQ), the parent company of Sears and Kmart, is among dozens of prominent retailers to declare bankruptcy in the era of Amazon…however, many of Sears‘ problems were self-inflicted…its management tried to compete by closing stores and cutting costs…it slashed spending on advertising and failed to invest in the upkeep and modernization of its outlets…Sears and Kmart stores grew barren and rundown, sales declined, losses piled up in the billions of dollars, debt mounted, and the company’s cash reserves disappeared…the company sold many of its most valuable assets, including its massive real estate footprint, to raise the cash it needed to survive…although retailers typically file for bankruptcy with the intention of staying in business, many end up going bust after filing…

4. Hampered by a labor shortage and other issues, Aphria (APH, TSX) says it does not have enough recreational cannabis to satisfy the initial orders made by provincial distributors…most growers, in fact, do not have enough product to satisfy their orders so “there will be sold-out signs” at on-line and in-store retailers across Canada soon after recreational cannabis become legal on Wednesday, Aphria CEO Vic Neufeld says, adding that he hopes the industry will have resolved the issues by January…“This situation will need 2 or 3 months of unravelling as a) more harvest comes on and b) we get a better understanding of consumer uptake,” Neufeld said Friday on Aphria’s Q1 earnings call…“It’s like trying to merge a 5-lane highway into a 1-lane country road.  It’s tough to get everything through the bottleneck on a timely basis”…Neufeld’s comments come a week after 4 provinces, including British Columbia and Nova Scotia, warned that there will initially be less inventory and variety available to consumers because growers have shipped less product than expected…

5. The Dow, coming off a 4%+ decline last week, is relatively unchanged as of 7:00 am Pacific…S&P 500 companies are expected to report earnings growth above 20% for the 3rd straight quarter, according to FactSet…Apple (AAPL, NASDAQ) earnings, however, may end up disappointing investors thanks to a marked deterioration in Chinese demand for iPhones, according to Goldman Sachs in a note published yesterday…in Toronto, the TSX has climbed 50 points…the TSX Gold Index, which advanced 7.2% last week, is up another 5.5 points or 3.3% at 174…the resurgent Venture is 8 points higher at 707 through the first 30 minutes of trading…the Venture fared much better than the broader indices last week, losing just 1% while the Dow, S&P 500 and the NASDAQ slipped 4.2%, 4.1% and 3.7%, respectively…cannabis stocks are strong this morning, just 2 days shy of legalization of recreational marijuana…it’s a great week for an update from Cannabix Technologies (BLO, CSE) on development of its marijuana breathalyzer…BLO is on the cusp of a major technical breakout, up 4 cents at $2.22 in early trading…Chemesis International (CSI, CSE) has added 3 pennies to $1.98, just 6 cents off its high…GT Gold (GTT, TSX-V) has hit a new yearly high of $1.64 on the heels of more world class drill results last week from its Saddle North Gold-Copper porphyry discovery in Northwest British Columbia…to the south, in between the Red Chris district and the Eskay Camp, Golden Ridge Resources (GLDN, TSX-V) has cut 20 m grading 11.6 g/t Au, including 2.85 m @ 67.3 g/t Au, in the 1st of 3 holes drilled over the summer in the Boiling zone at its Hank Property, northeast of the northern edge of Aben Resources‘ (ABN, TSX-V) Forrest Kerr Project…the hole has revealed a new mineralization style never previously encountered on the Hank Property…in the Northern Ontario Cobalt Camp, rumors are swirling around the hot Gowganda area with multiple companies active including Canada Cobalt (CCW, TSX-V), up nearly 40% last week, iMetal Resources (IMR, TSX-V), Tahoe Resources (THO, TSX) and privately held Battery Mineral Resources…

6. Great Bear Resources (GBR, TSX-V) reported this morning that it has identified a critical ultramafic rock unit in outcrop with an interpreted strike length of at least 2 km, a new geological discovery at its Dixie Project in the Red Lake district…the unit is folded into the D2 fold axis that is associated with Gold in the primary drill areas at Dixie…ultramafic rocks, together with D2 folding, are considered to be primary controls on high-grade Gold mineralization across the Red Lake district…a fully-funded 30,000-m drill program (150 holes) is currently in progress at Dixie and will continue through the remainder of 2018 and 2019…Chris Taylor, President and CEO of Great Bear, commented: “With generally a few metres of overburden covering most of the project, bedrock is mostly concealed at Dixie and the extensive Gold system was completely missed during the historical Red Lake Gold rush.  This also means our drill area was not geologically mapped.  Great Bear’s geological interpretation suggests we are drilling a dominantly mafic greenstone belt with comparable geological, structural, alteration and Gold mineralization characteristics to the main Red Lake greenstone belt, where over 30 million ounces of Gold has been produced from 28 Gold mines”…

7. Westhaven Ventures (WHN, TSX-V) is up 2.5 cents at 37 cents in early trading…BMR has learned that two individuals connected with Barkerville Gold (BGM, TSX-V) have staked a nearly 200-km-long belt of claims in the interior of British Columbia from Clinton to Princeton, covering Spences Bridge geology prospective for Gold…this is believed to be the largest single claim block staked by one entity in B.C. exploration history, a total of 189,000 hectares – nearly 2,000 sq. km – acquired for a total cost of $331,000…the question is, who’s really behind this?…interestingly, the claims were staked over a 12-hour period September 29 and 30, just a couple of days prior to a news release issued by Westhaven whose Chairman and largest shareholder is Gren Thomas…on October 2, WHN released partial results from a recently completed drill campaign at its 155 sq. km Shovelnose Gold Property, located within the Spences Bridge belt, approximately 30 km south of Merritt…initial results from 10 holes (3,721 m) of drilling featured the highest-grade Gold assays to date at the property including 1.65 m grading 175 g/t Au and 249 g/t Ag, visible Gold in 5 drill holes including 6 separate areas in hole SN18–14, and a 20-m quartz vein in SN18–15…the strike length of the South zone was extended an additional 300 m southeast for a total of 700 m..

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AltaGas Camp, Eskay District 

Northwest British Columbia flexed its muscles again this past week as GT Gold (GTT, TSX-V) more than doubled in value on additional evidence that the company has made the most significant grassroots Gold-Copper porphyry discovery in the province in many years, perhaps since Mount Milligan in the 1990’s.  Keep in mind, Saddle North was never even drilled until last year, and widely spaced world class intercepts of Gold-rich porphyry mineralization are now being reported including:

• 904 m grading 0.51 g/t Au and 0.30% Cu in hole #93 (including 1.02 g/t Au, 0.51% Cu and 1.72 g/t Ag over 363.1 m)
• 494.1 m @ 0.25 g/t Au and 0.26% Cu in hole #90 (including 0.39 g/t Au, 0.39% Cu and 0.80 g/t Ag over 169.3 m)
• 822.2 m @ 0.42 g/t Au and 0.26% Cu in hole #85 (including 0.70 g/t Au, 0.41% Cu and 0.84 g/t Ag over 404.5 m)

As per last Tuesday’s news, 7 diamond drill holes have been completed in 2018 at Saddle North with results pending for 4 of them as drilling continues with 2 rigs.  All 7 holes have achieved strong visual intercepts of the target mineralized monzodiorite over considerable intervals, demonstrating broad lateral and depth continuity.

Charlie Greig, VP-Exploeration for GT Gold, commented: “Porphyry discoveries of this scale and tenor are uncommon.  Our exploration team is excited by the visual intercepts of sheeted vein, vein stockwork and disseminated-style Gold-Copper-Silver mineralization, and by our ability to hit the host monzodiorite intrusion in follow-up holes, even with large step-outs.  It’s also exciting to know that the mineralized body is essentially intact, and largely uneroded, at surface beneath relatively thin overburden, and that it extends to depth, both downdip of our known intercepts, and along strike.  We see tremendous upside for expansion and, as was the case with the nearby Red Chris deposit, potential grade increases at depth.”

The Saddle North Intrusive Complex appears to be similar lithologically to the nearby Red Chris porphyry system, but with high-potassium calc-alkalic rocks predominating.

Greig is one of B.C.’s most respected geologists who correctly predicted the high-grade Gold discovery at the adjacent Saddle South target based on extensive geochemistry that led to stunning results from first-ever drilling last year.  High-grade Gold intercepts at Saddle South reported in August and September have confirmed what was suspected all along, that Saddle North is the porphyry “heat engine” driving the entire Saddle mineralized system.

The Benefits Of “Climate Change”

To the south in the Eskay Camp, Mother Nature is uncovering more Nickel-Copper-rich massive sulphide mineralization in outcrop than ever previously seen at Garibaldi Resources‘ (GGI, TSX-V) Nickel Mountain Project.  One has to believe that this bodes very well for recently completed and upcoming drill holes at the Golden Triangle’s first magmatic Nickel sulphide deposit with Nickel grades in massive sulphides that are among the very best in the world.

The E&L glacier, approximately 1.6-km-long and 1-km wide and part of the Nickel Mountain gabbroic complex, is breaking up and melting north of any previously drilled holes, thanks to an unusually warm spring and summer, providing exciting new drill targets and compelling evidence that this unique deposit – open in all directions – may extend well under the untested icefield to the north and northeast.

Below is a picture taken north of the Discovery zone and northeast of the historic Northwest zone.  As the ice melts, one of the most exciting discoveries in British Columbia exploration history heats up!

The most extensive pullback of ice ever seen at Nickel Mountain has provided geologists with important new drill targets that could result in the discovery of additional new zones of magmatic Nickel-Copper-rich sulphide mineralization.