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1. Gold has firmed up nicely today, trading between $1,459 and $1,482 on fresh U.S.-China trade concerns…as of 7:00 am Pacific, the yellow metal is up $16 an ounce at $1,478…Silver has jumped 25 cents to $17.13…TD Securities on Gold: “Gold continued to hold above $1,450/oz despite record highs in equities and record online Black Friday sales, as the asymmetry in the U.S. central bank’s reaction function suggests that while the Fed may cut rates, they are far from hiking and are likely to allow inflation to creep higher, thereby suppressing real rates and maintaining the allure of Gold in a portfolio. Deceleration in growth will ultimately provide the market with the impetus to pressure the Fed into cutting rates twice more in 2020“…U.S. consumers remain in strong shape but sentiment in the U.S. manufacturing sector dropped further into contraction territory last month, according to yesterday’s data from the Institute for Supply Management (ISM)…ISM’s manufacturing index came in below expectations for the 5th consecutive month and contracted for the 4th straight month…base metals are under modest pressure…Nickel, Copper and Zinc have slipped to $6.12, $2.64 and $1.02, respectively…Cobalt remains steady at $16.10…Crude Oil has shed 11 cents to $55.85 while the Dollar Index has fallen more than one-tenth of a point to 97.73…President Trump, perhaps exercising more negotiating leverage, said this morning that a trade agreement with China might have to wait until after the U.S. elections in November 2020, denting hopes of an imminent/near-term Phase 1 deal…“I have no deadline, no. In some ways, I think I think it’s better to wait until after the election with China,” Trump told reporters in London, where he was due to attend a meeting of NATO leaders…if China somehow thinks Trump won’t win next November, they could be in for a nasty surprise – the House potentially could flip in Trump’s favor as well…
2. Canada is not keeping up with the competition!…as multiple Canadian pipeline projects linger in limbo, with leftists/climate change alarmists claiming we must “save the planet” from catastrophe within a dozen years and not build any additional pipelines, Russia and China have just turned on the taps on a natural gas behemoth long enough to connect Timmins to Burnaby…Russian President Vladimir Putin and Chinese President Xi Jinping brought the Power of Siberia Pipeline, which will stretch 3,000 km from Siberia into northeast China, online yesterday…the $55 billion (U.S.) pipeline is expected to carry 5 billion cubic m of natural gas into China in 2020, with production eventually ramping up and hitting 38 billion cubic m by 2025…the Oil and gas haters in Canada are living in a delusionary world – if we don’t help fill the global demand void, someone else will (the U.S. is already way ahead of us, and so are others) and Canada loses…what’s also so ridiculous is that for every pipeline and well and LNG plant that is not built in Canada (and we feature some of the highest environmental, engineering and labor standards in the world), the Chinese and Indians will simply burn more dirty coal…the naive left just doesn’t get it…they’ve been allowed to inflict great damage on this country in recent years and now it’s time for a major pushback…
3. Wallbridge Mining (WM, TSX) announced this morning that it has intersected visible Gold and abundant sulphide mineralization over a 16-m core length in drill hole FA-19–99 in the Lower Tabasco zone at Fenelon, extending this zone a further 230 m down-dip to a vertical depth of 850 m…in addition, complete assays have been received for drill hole FA-19–086, surrounding the previously reported 27 g/t Au over 38.39 m…the full intersection is now confirmed as 22.7 g/t Au over 48.01 m…high-grade assays have also been received from drill holes testing the newly discovered Orion Corridor located over 400 m to the southeast (43.2 g/t over 0.75 m; 121 g/t Au over 0.51 m; and 31.37 g/t over 0.50 m), further demonstrating the impressive Gold endowment in this system over the entire 1 km strike length explored so far…President and CEO Marz Kord stated, “It is quite remarkable that our current initial wide-spaced drilling with holes spaced 75 m to more than 200 m apart continues to consistently intersect mineralization, given the typical size of ore shoots in typical Archean Gold systems. The results to date show the exceptional quality of Fenelon and increases our continued understanding of the deposit. The recent drilling, particularly our 230-m undercut in the Lower Tabasco zone, suggests that at depth this zone appears to follow the contact of Jeremie Pluton in a sub-vertical manner, suggesting that further deep drilling in this area is warranted”…WM is up 4 cents at 72 cents through the first 30 minutes of trading…there was a $42.5 million bet on Wallbridge Friday in the form of a PP – follow the money…
4. More robust drill results from Kirkland Lake Gold’s (KL, TSX, NYSE) Fosterville mine in Australia…significantly, recent underground drilling shows impressive continuity of mineralization in the Lower Phoenix System which continues for at least 950 m down-plunge of the deepest mineral reserves…intercepts released this morning include 87.6 g/t Au over 7.6 m, 45 g/t Au over 5.2 m, 14.8 g/t Au over 5.9 m, 6.2 g/t Au over 18 m, and 7.3 g/t Au over 8.8 m (core lengths)…drilling has now defined continuity of mineralization between the Swan and Lower Phoenix South Resource blocks (Swan South Zone) and, with a high frequency of 30 gram-m intercepts, it’s anticipated that substantial additions of Inferred resources will be realized in end-of-year model updates as a result of this program…“We have an extensive exploration program at Fosterville covering 4 main target areas – Lower Phoenix down-plunge of Swan, Cygnet, Harrier and Robbin’s Hill,” explained KL President and CEO Tony Makuch…“Today’s results focus on the Lower Phoenix area. They are encouraging as they include the extension of high-grade, VG-bearing mineralization 80 m down-plunge of the Swan Zone and demonstrate that Lower Phoenix is an extremely large Gold system, with continuity of the system having been confirmed to over 950 m down-plunge of our deepest mineral reserves. In addition, we continue to get strong results from drilling of the Cygnet Zone, where we have intersected high-grade, VG-bearing mineralization, including 239 g/t Au over 1.2 m (ETW 0.9 m). Such results provide significant resource growth potential immediately adjacent to existing underground infrastructure”…KL is up 47 cents at $56.32…those who panicked and threw their shares away last week at $50 left a lot of money on the table…
5. The Dow has tumbled 360 points through the first 30 minutes of trading…in Toronto, the TSX is off 101 points, cushioned by a sharp jump in the Gold Index which is threatening to break out above the 250 area…it’s up 7 points at 252 as of 7:00 am Pacific…Yamana Gold (YRI, TSX; AUY, NYSE) hit a new multi-year high of $5.11 on the TSX during the first 30 minutes of trading…SilverCrest (SIL, TSX) has announced an $80 million financing at $7.28 per share (11 million shares)…SIL has pushed 10 cents higher in early trading to $7.74…the Venture has added 3 points to 536…potentially, this could be an unusual December (not the typical selling pressures during the first half or two-thirds of the month)…it’s possible the lows for the year may have come early this time around, in late November, especially if precious metals continue on a run…Turmalina Metals (TBX, TSX-V) made its debut on the Venture this morning…the company is focused on the exploration and development of high-grade Gold-bearing tourmaline breccias at the San Francisco Project located in San Juan, Argentina…yesterday, Turmalina announced results from a series of recently completed diamond drill holes at San Francisco which included a 36.95 m core length grading 6.3 g/t Au, 122 g/t Ag and 0.88% Copper starting just 34.5 m downhole…the company has $7 million in cash and 49 million shares outstanding…it opened at 70 cents and is trading at 63 cents as of 7:00 am Pacific…
6. GT Gold (GTT, TSX-V) continues to outline a large Gold-Copper-rich porphyry system at Saddle North…drill hole TTD133 cut 627 m grading 0.53 g/t Au, 0.37% Cu and 1.23 g/t Ag, though this intersection started 648 m downhole…it included 362 m @ 0.73 g/t Au, 0.45% Cu and 1.58 g/t Ag…meanwhile, drill hole TTD134 returned 558 m @ 0.61 g/t Au, 0.35% Cu and 1.28 g/t Ag starting 450 m downhole…the core zone at Saddle North comprises a south-southwesterly-plunging, northerly-elongate body of higher-grade mineralization with down-plunge, strike and width dimensions of 1,200 – 1,600 m, 200 – 400 m and 40 – 450 metres, respectively…it expands to depth and displays excellent continuity…Saddle North remains open at depth, and highly prospective targets remain untested along strike to the west and east…“These results continue to demonstrate the robust nature of Saddle North,” commented CEO Paul Harbidge…“The excellent continuity of the Gold and Copper mineralization to depth supports the large scale of this porphyry system, a system which becomes even more attractive when considering the proximity of first-rate infrastructure and location in the Tier 1 jurisdiction of British Columbia. Now that this year’s drilling is complete, we are making good progress with detailed re-logging of core and assimilation of the full range of empirical and geochemical data collected during the field season. This work is moving us toward our goal of constructing a detailed geological model for Saddle North, which is projected for completion in Q1 2020. The model will form the foundation for our initial NI-43–101-compliant resource, which is anticipated to be released in Q2. Furthermore in 2020, our team will be focused on reaching our larger goal of delivering a Preliminary Economic Assessment to our stakeholders by year-end”…GTT is up a penny at 97 cents as of 7:00 am Pacific…
7. The Federal Reserve could be in store for some pain…that’s according to Jim Bianco, President of Bianco Research, who says the recent market narrative reminds him of the former boxer Mike Tyson’s quote that “everybody has a plan until they get punched in the mouth”…Bianco, a well respected market analyst, says that while the Dow, S&P 500 and NASDAQ have been hitting new all-time highs and the Fed seems poised to hold off on continuing to cut interest rates, the central bank hasn’t been tested with a “punch to the mouth” that could drastically alter its plan…“We’ll have to see if this will hold up on a 5% to 7% correction. I kind of have my doubts,” Bianco said on CNBC yesterday…“The markets are looking for 1 cut maybe next year. I wouldn’t be surprised if it winds up being 2 or 3 once all is said and done”…the final 2019 meeting of Federal Reserve policymakers is scheduled for next week…Chairman Jerome Powell has signaled that rates are likely to hold steady as the central bank remains committed to meeting its 2% inflation goal…Bianco says the lack of inflation is one of the reasons pressure will remain on interest rates in 2020…
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