Check back later this morning for today’s Morning Musings.
1. Outflows in global Gold ETFs continued for an 18th straight day yesterday but the metal is getting a lift today from short covering ahead of tomorrow’s ECB meeting and next Wednesday’s Fed meeting…yields on 10-year U.S. Treasury notes have eased slightly today as well…as of 7:00 am Pacific, Gold is up $10 an ounce at $1,179 while Silver has powered 43 cents higher to $17.11…
2. The TSX Gold Index has rebounded 7% to 196 from its November 23 intra-day low of 183…we’ll have an updated Gold Index chart later this morning…the Venture is up 3 points in early trading to 751…
3. What’s next for Canadian Zeolite (CNZ, TSX-V)?…one of the top-performing stocks on the Venture this quarter hit a new high of $1.95 during the first 30 minutes of trading…we’ll have an updated chart in today’s Morning Musings…
4. Colorado Resources (CXO, TSX-V) has supplemented its flagship KSP Project in the Heart of Gold Camp with the acquisition of an advanced Gold property in Nevada with high-grade potential that can be worked on outside of the exploration season in the Golden Triangle…CXO has completed a deal on favorable terms to earn 100% of the Green Springs Property where a hole drilled in an un-mined zone last year returned 41.1 m grading 4.6 g/t Au near-surface and bottomed in 1.6 g/t Au at a depth of 105 m…the 14 sq. km property is located approximately 50 miles south of Kinross Gold’s (K, TSX) Bald Mountain/Alligator Ridge mine…the turnaround has started in CXO, and we’ll have an updated chart in today’s Morning Musings…
5. Nevsun Resources’ (NSU, TSX) latest drilling at its Timok Copper-Gold Project in Siberia continues to confirm continuity and the high-grade nature of the Upper Zone…results released this morning featured 182.3 m grading 4.2% Cu and 4.8 g/t Au including 40.5 m @ 11.6% Cu and 12.9 g/t Au…an aggressive infill drilling program continues (only 25% has been completed) in addition to work on the Pre-Feasibility Study…
6. Vendetta Mining (VTT, TSX-V), advancing a high-grade Zinc-Lead project in Australia with NYSE-listed Solitario, touched a new 52-week high of 16 cents in early trading today…we’ll be uncovering another overlooked Zinc stock in today’s Morning Musings…
7. Natan Resources (NRL, TSX-V) has increased its financing to $4 million, half of which is hard dollars at 20 cents while the other half is flow-through at 25 cents…Natan recently entered into an option agreement with Globex Mining to acquire a 100% interest in the 32 sq. km Montalembert Gold property 100 km southwest of Chibougamau in Quebec’s Abitibi mining district…Montalembert is an under-explored high-grade opportunity within 5 km of a paved highway…
NATAN = NRL
Comment by david — December 7, 2016 @ 8:28 am
Thanks, David, Freudian slip!…corrected…
Comment by Jon - BMR — December 7, 2016 @ 8:41 am
Took a position in NRL, hearing good things from my canadian contact up there. Same one that tipped me off on cnz. I like it.
Comment by dave — December 7, 2016 @ 9:05 am
GGI – looks ready to motor higher – FINALLY!!
Comment by dave — December 7, 2016 @ 9:07 am
ggi fact sheet update,nr around the corner?
Comment by Laddy — December 7, 2016 @ 9:09 am
Patricia – I hope you took advantage of NF at .13 to help your wounds. I can’t even buy it. I cant buy “c” stocks, don’t trust the illiquid U.S. side.
Comment by dave — December 7, 2016 @ 9:21 am
Hey Dave>> got into NF at 16… havent lost money so far on any C stocks.. just lost opportunity!! and sorry for the ID issue.. my wife registered and if I am not logged in I am her:) same IP address etc…
Comment by Jeremy — December 7, 2016 @ 9:51 am
MTB – doing well today
NRL – has held up really well considering 5 cent paper was free trading in late Oct and aside from a couple volume days, hasn’t budged from this level or seen appreciable selling
Comment by david — December 7, 2016 @ 9:56 am
Cruz Capital and weed stocks – this is why BLO is different – patents and hardware
http://www.financialpost.com/m/wp/investing/buy-sell/blog.html?b=business.financialpost.com/investing/buy-sell/still-opportunities-in-the-small-cap-space-this-fund-manager-says
“I think the sector was getting somewhat overheated, as a lot of junior lithium companies have popped up,” he said. “Many of them are promotional and most of them will fail, so we’ve transitioned the portfolio a bit from lithium to cobalt.”
Palmer states…”Another holding, Cruz Capital Corp. (CUZ/TSX-V), has accumulated quite a few properties that are prospective for cobalt, and will be initiating work programs on some of them shortly.”
“The big issue with cobalt is that a lot of the production is out of the Democratic Republic of the Congo, but there are some issues there in terms of human rights,” Palmer said. “People are trying to avoid supporting that industry there, so the focus is on cobalt in legitimate jurisdictions like North America.”
The manager also noted that since cobalt is a by-product of copper production, investors can opt for a larger miner for their exposure to the commodity. The problem is these large mining stocks are primarily driven by the copper price or other base metals, not cobalt.
Since cobalt, like lithium, is used in rechargeable batteries, the demand for these commodities is growing significantly along with electrical vehicle usage and energy storage facilities.
Another very hot sector in the junior resource space has been marijuana stocks. It’s an area Palmer has largely avoided, as he is quite negative on the sector as a whole.
“I think investors need to be very cautious because these stocks are trading at crazy valuations, and there is nothing proprietary about the majority of them,” he said. “I believe they are all going to 10 cents within a couple of years, and it may happen sooner rather than later, when people realize these companies are not going to be as profitable as they thought.”
Palmer likens it to growing tomatoes. Companies are simply growing a plant, and the margins are going to get squeezed.
Comment by Jeremy — December 7, 2016 @ 10:06 am
David…don’t you believe it..Freud had nothing to do with it!!!!LOL.
Comment by John - BMR — December 7, 2016 @ 10:13 am
Hopefully we hear something soon from GGI in regards to the Red Lion property. Sounds very promising.
Comment by pole — December 7, 2016 @ 10:27 am
Something is coming on GGI, this buying is not for kicks. big bid at .14 just appeared.
NRL – I hear the big boys are coming.
Comment by dave — December 7, 2016 @ 11:13 am