1. Gold has traded between $1,329 and $1,339 so far today…as of 7:00 am Pacific, bullion is up $6 an ounce at $1,332…Silver is 4 cents higher at $14.76…Copper, Nickel and Zinc are relatively unchanged at $2.65, $5.36 and $1.21, respectively…Crude Oil has slipped $1.01 a barrel to $52.26 while the U.S. Dollar Index has added one-tenth of a point to 96.79…the shale revolution powered U.S. Oil and gas production in 2018 to the largest annual increases ever recorded by any country, according to energy giant BP…surging global energy demand is fueling the production boom, even as Oil and gas prices rise and economic growth slows, according to BP’s annual statistical review published yesterday…world-wide demand for energy grew 2.9% in 2018, its fastest rate since 2010…unusual weather spurred some of the stronger-than-expected growth, as a greater number of extremely hot and cold days drove up air conditioning and heating use around the world, particularly in China, the U.S. and Russia, the company said…in the U.S., energy consumption rose by 3.5% in 2018, with Oil at 20.5 million barrels a day and a total of 817 billion cubic m of gas consumed during the year…Natural gas dominated 2018’s energy growth, accounting for almost half of total demand growth as the world continues to pivot toward the cleaner-burning fuel…
2. U.S. inflation remains muted: Consumer prices barely rose in May as a rebound in the cost of food was offset by cheaper gasoline, pointing to weak inflation that could increase pressure on the Federal Reserve to cut interest rates…the Labor Department said this morning that its consumer price index edged up 0.1% last month…the CPI gained 0.3% in April…in the 12 months through May, the CPI increased 1.8%, slowing from April’s 1.9% gain…excluding the volatile food and energy components, the CPI nudged up 0.1% for the 4th straight month…the so-called core CPI was held down by a sharp decline in the prices of used motor vehicles and trucks as well as medical care products…in the 12 months through May, the so-called core CPI rose 2.0% after advancing 2.1% in April…the Fed’s preferred inflation measure, the core personal consumption expenditures (PCE) price index, increased 1.6% in the year to April…data for May will be released later this month…the core PCE price index has consistently been running below the Fed’s 2% target…
3. Crystal Lake Mining (CLM, TSX-V) has kicked off its 2019 exploration program in the Eskay Camp, announcing that one of several high priority zones is the newly-defined Chachi Corridor on the northeastern side of the 430 sq. km Newmont Lake Project…this is shaping up to be a significant new discovery shortly after the find at Burgundy Ridge approximately 15 km to the west-southwest…Chachi is a large Copper-Gold porphyry target, with high-grade Gold potential, trending northeast along the McLymont Fault system…it has a current strike length of greater than 8 km x 3 km wide, based on historic data (rocks, soils, geophysics), and features glacial retreat of approximately 2 to 4 km since parts of it were last investigated with ‘boots on the ground’ in 2008…a team of approximately 20 at any given time will be exploring and validating the Chachi Corridor ahead of a major drill program…Phase 1 consists of extensive prospecting, lithological and alteration mapping, airborne and ground geophysics, and geochemical and alteration vectoring using the latest in-field mobile and hyper spectral and XRF technology to quickly define targets for summer drilling…limited historic rock sampling on the eastern side of the Corridor returned values up to 14.2 g/t Au, with 8 of 28 samples grading >8 g/t…Richard Savage, President and CEO, commented, “The right people, the right area, the right time – we’ve assembled an amazing team that’s planning an expansive initial exploration program that will be systematic and discovery-driven, applying state of-the-art exploration strategies”…CLM is up a penny-and-a-half at 35 cents in early trading…
4. The Dow is flat as of 7:00 am Pacific…in Toronto, the TSX is off 28 points…Kirkland Lake Gold (KL, TSX) has hit a new high of $52.17 in early trading as Gold stocks push higher again…the Venture has added 1 point to 590…Great Bear Resources (GBR, TSX-V) has arranged a bought deal flow-through financing to raise $5.45 million at a price of $5.45 per share…Chris Taylor, President and CEO of Great Bear, stated, “By raising an additional $5.5 million, we will have over $15 million in cash on hand and will have funded the expansion of our ongoing drill program by an additional 30,000 m, for a new total of 90,000 m of drilling. Coupled with the potential for an additional $7.8 million from warrant exercise, Great Bear will remain very well funded with the flexibility to significantly expand and extend our drilling as required. We are strongly positioned to benefit from one of our industry’s most significant exploration drill campaigns through 2019 and 2020″…GBR is off 2 pennies at $4.14 through the first 30 minutes of trading…May statistics show that the Venture welcomed 9 new issuers (7 capital pool companies, 1 mining company and 1 life sciences company) in May compared with 10 the previous month and 13 in May 2018…total financings raised last month decreased by 22%, compared with the previous month, and were down by 48% when compared with May 2018…there were 126 financings in May 2019 compared with 133 in the previous month and 117 in May 2018…
5. According to news reports, the Trudeau government is rejecting almost all of the 187 amendments proposed by Conservative senators to controversial Bill C-69, a seriously flawed piece of pending legislation that will make it nearly impossible to ever build another Oil and gas pipeline in this country…about 90% of the Conservative amendments will not be agreed to, including allowing the new Impact Assessment Agency flexibility to decide whether to take into account a project’s effect on Indigenous rights or “climate change”…the government is also rejecting amendments that would make it harder to challenge a project approval in court and limit who can participate in review hearings…Conservative senators, the Canadian Association of Petroleum Producers and 5 Conservative premiers have all said that every single amendment has to be accepted or the bill will be the death knell for Canada’s Oil and gas sector…
6. What was dubbed by organizers as the largest pro-Oil and gas rally in Canadian history carried a unified national message yesterday afternoon, as politicians from across the country promised to take the energy sector’s message straight to Ottawa…organized by Canada Action, up to 4,000 people attended the rally held outside the annual Global Petroleum Show on the Calgary Stampede grounds, chanting the familiar “build that pipe” message and carrying signs protesting proposed federal legislation many believe would be detrimental to Canada’s Oil and gas sector…speakers included conservative politicians from across Canada, including B.C., Saskatchewan, Ontario and Quebec…“When you look around, this is what community support looks like. This is what standing up for a balanced conversation about the energy sector looks like,” said Cody Battershill of Canada Action…“This is not an Alberta conversation. This is a Canadian conversation”…many speakers took aim at Bill C-48, which would forbid the export of Alberta petroleum products off B.C.’s north coast, and Bill C-69, which seeks to overhaul Canada’s environmental assessment process for major resource sectors…in just 4 months Canadians will head back to the polls and will have a chance to take their country back…
7. Canada’s DeepGreen Metals, a start-up planning to extract Cobalt and other battery metals from small rocks covering the seafloor, has secured the bulk of the $150 million it needs to carry out its first feasibility studies…the financing, provided by Switzerland-based offshore pipeline company Allseas Group, is a welcome sign of progress for the deep sea mining sector, which has been stalled due to regulatory uncertainty and environmental concerns…unlike other seafloor mining companies, including pioneer Nautilus Minerals, the Vancouver-based explorer doesn’t want to drill, blast or dig the bottom of the ocean…DeepGreen’s main goal is to scoop up small metallic rocks located thousands of meters below the surface in the North Pacific Ocean…its exploration focus is the Clarion-Clipperton Zone (CCZ), a mineral-rich, 4,000-km swath of the Pacific that stretches from Hawaii to Mexico, where billions of potato-sized metals-rich rocks lie in a shallow layer of mud on the seafloor…the deep sea, more than half the world’s surface, contains more Cobalt, Nickel, Copper, Manganese and Rare Earth metals than all land reserves combined, according to the U.S. Geological Survey…companies exploring or already developing projects to mine the seafloor argue the extraction of those deep-buried riches could help diversify the sources currently supplying metals needed for electronics and evolving green technologies, such as electric vehicles and solar panels…academics and scientists, however, are concerned by the lack of research on the possible impacts of high seas mining…they fear the activity could devastate fragile ecosystems that are slow to recover in the highly pressurized darkness of the deep sea, as well as having knock-on effects on the wider ocean environment…“Our partnership with Allseas will ultimately help us open up a new, disruptive source of battery metals for the green revolution and transform the mining industry as we know it,” said DeepGreen’s Chairman and CEO, Gerard Barron…
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