Check out Daniel’s Den later today and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,332 and $1,349 so far today…as of 7:00 am Pacific, bullion is up $10 an ounce at $1,342 thanks to fresh U.S-China trade tensions…Silver has slipped 11 cents to $16.29 as the Gold-Silver ratio widens to 82.38, an historically high reading…Copper, Nickel and Zinc are all under modest pressure at $3.00, $5.94 and $1.48, respectively…Cobalt is off 11 cents at $42.30…Crude Oil has fallen $1.40 a barrel to $62.11 but should rebound as news is just out from the Energy Information Administration (IEA) that Crude inventories fell by 4.6 million barrels last week vs. analysts’ expectations for an increase of 246,000…the U.S. Dollar Index is off slightly at 90.06…Bitcoin dropped as low as $6,843 this morning…
2. U.S. Commerce Secretary Wilbur Ross told CNBC this morning that China’s new tariffs do not represent a threat to the United States…China’s tariffs “amount to about three-tenths of a percent of our GDP. So, it’s hardly a life-threatening activity. It’s relatively proportionate to the tariffs we put on based on the intellectual property,” Ross stated…earlier today, China announced additional tariffs on 106 U.S. products, less than 24 hours after President Trump unveiled a list of Chinese imports that his administration aims to target as part of a crackdown on unfair trade practices, in particular China’s theft of American (and Canadian) intellectual property…
3. The U.S. should take notice of China and Russia’s increasingly close military ties, a top Chinese official said yesterday…Gen. Wei Fenghe, China’s new defense minister, gave the remarks in Moscow following a meeting with Russian Defense Minister Sergey Shoigu, according to Russian state news agency TASS. “I am visiting Russia as a new defense minister of China to show the world a high level of development of our bilateral relations and firm determination of our armed forces to strengthen strategic cooperation. The Chinese side has come (to Moscow) to show Americans the close ties between the armed forces of China and Russia…we’ve come to support you.” Wei added that Beijing is ready to express with Moscow “our common concerns and common position on important international problems at international venues as well.”
4. U.S. companies kept up the hiring pace in March, adding 241,000 positions as employment in construction and manufacturing surged, according to a report this morning from ADP and Moody’s Analytics…economists surveyed by Reuters had been expecting the report to show that private payrolls had increased by 205,000…it’s the 5th straight month that private payrolls have jumped by at least 200,000…March 2018 nearly doubled the 122,000 total from the previous year. “The job market is rip-roaring,” stated Mark Zandi, Moody’s Analytics’ chief economist. “Monthly job growth remains firmly over 200,000, double the pace of labor force growth. The tight labor market continues to tighten.” Job gains were broad-based, spread across both business size and sector…the Labor Department provides its monthly jobs report Friday…
5. The same factors which have inflated the discount paid for Canadian Oil sands heavy Crude compared with U.S. Oil are also driving a substantial increase in the discount for light Canadian Oil…a report from accountant Deloitte shows the difference between West Texas Intermediate and Edmonton light Oil prices widened to $7.32 (U.S.) a barrel in January, an 86% jump over the average of $3.93 (U.S.) a barrel in the 4th quarter of last year…this is what climate change fanatics and pipeline protestors do not understand (or maybe they do and they don’t care) – the Canadian economy is losing at least $16 billion a year, according to a recent bank report, because of challenges in terms of getting its Oil to market…the country urgently requires more pipeline capacity, and the Kinder Morgan expansion would open critical markets in Asia…Deloitte’s Andrew Botterill stated, “We really only have one major market and that major market has been developing their own resources, requiring ours less and less. There’s optionality for them to buy Canadian Oil volumes or not and when there’s that optionality, it ends up eroding value for Canada.”
6. Cornerstone Metals (CCC, TSX-V) has returned more impressive drill results from its Carlin Vanadium Project in Nevada including strong evidence that historic grades were understated…diamond drill hole DDC18–09 specifically twinned a Union Carbide rotary hole (R111A) from 1967 to confirm and compare rotary results (depth, thickness and grade of the high-grade Vanadium unit) to diamond drill core results, besides comparing historic to modern analytical techniques…DDC18–09 compared very well with R111A in the depth and thickness of the high-grade Vanadium unit…interestingly, though, the grade encountered in DDC18–09 (1.47% V2O5 over 46.5 m) was 65% higher than in the historic rotary hole R-111A…Cornerstone President and CEO Paul Cowley stated, “Many of our verification holes within the confines of the historic resource area have returned higher grades than their neighboring historic holes. Now, with this first twinned hole, there is growing evidence to suggest that historic grades may be understated.” The Carlin Vanadium Project hosts one of the largest, richest primary Vanadium deposits in North America according to a U.S. Geological Survey (USGS) report from late last year…
7. The Dow has tumbled 362 points through the first 30 minutes of trading…in Toronto, the TSX has slid 143 points…the incompetent Wynne government’s “Fair Housing Plan” is contributing to plunging real estate values in the Greater Toronto Area (GTA)…the average price in March 2018 was $784,558 for all housing categories in the GTA, including detached, semi-detached, townhomes and condos, vs. $915,126 in March last year…that’s a staggering drop of $130,500 or 14.3% – the biggest drop in 30 years…whenever socialist governments start interfering in the housing market to “make prices affordable”, run for the hills…meanwhile, if the Wynne government is re-elected and implements its latest grotesque tax-and-spend agenda, it will take all the province’s tax revenues from alcohol and tobacco just to cover the expected increase in interest expenses on a massive debt over the next few years, according to the CD Howe Institute…interest expenses at roughly 8.5% of revenues are set to be the 2nd-fastest-growing type of government expense in Ontario, besides children’s and social services…Wynne is simply economically illiterate but in 2 months she should be gone…the Venture is off 9.5 points at 760 with marijuana stocks leading the decline…closest technical support is 750, last year’s low…since mid-February, Orca Gold’s (ORG, TSX-V) major shareholders have exercised approximately 7.9 million warrants at 55 cents from the company’s July 2017 private placement, injecting another $4.35 million into the treasury which will go toward continued exploration and a Feasibility Study on the Block 14 Gold Project in the Sudan…another 11 million warrants from that financing have yet to be exercised…more drill results this morning from Barkerville Gold (BGM, TSX-V)…Island Mountain Shaft Zone hole IM-17–249 intersected 48.2 g/t Au over 9.95 meters, 45 m down dip from previous reported hole IM-17–151 which assayed 72.2 g/t Au over 12.05 m…Valley Zone hole CM-17–106 intersected 12.2 g/t Au over 11.4 m, 40 m down dip of a modelled vein corridor and 40 m up dip from previously reported hole CM-17–096 which intersected 12.5 g/t Au over 8.00 m and 11.74 g/t Au over 5.15 m further down hole…Tinka Resources (TK, TSX-V) has closed its previously announced bought deal financing, including the exercise in full of the underwriters’ over-allotment option…a total of 16.79 million units of Tinka were sold at a a price of 48 cents per unit for total gross proceeds of nearly $8.1 million…
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Comment by PatrickLamane — April 4, 2018 @ 10:32 am
Another baddddd day and no one has the strength left to type a comment !!! Not much to write about, however who really knows the severity of the ” WATER ISSUE ” with CCW ?? We know there is an ” underlying problem ” with water, but seriously, at what Level is it a serious problem for Frank to figure out ……… this has got to be corked …….. Farmer T
Comment by farmer — April 4, 2018 @ 11:04 am
Jon, any idea if we can expect a BMR update with respect to the latest on AIS and/or MOON?
Comment by Raffi14 — April 4, 2018 @ 1:01 pm
Jon has been to Castle. If there was a major water issue, I assume we would have known about it. I believe they can still mine level 1 while de-watering other levels…..market is totally overacting to this tariff stuff. We don’t even know if it’ll go through – that gets decided in May.
Comment by BigBid — April 4, 2018 @ 1:51 pm
No water issues at all with the Castle mine, BigBid…you’re right, they’ve got a lot of real estate on level 1 to work with, and dewatering level 2 can be done very simply at a certain rate per day within their existing permit…same with levels 3 and 4, I believe…the selling in CCW is way overdone to the point of being ridiculous…not 1 “up” session in the last 12…that is about to change very quickly, IMHO…same with CLM…nervous nellies giving up their paper for no good reason…
Comment by Jon - BMR — April 4, 2018 @ 4:29 pm
Folks, the selling in a boatload of stocks is way overdone. Jon is correct. Very few venture stocks are holding their own the past couple of months, with the exception of GGI of course. 🙂
My portfolio is all red right now, with the exception of GGI, but this is the time to be patient and not panick if you haven’t sold already. If you were smart and saw this downturn coming, then now is the time to be greedy. IMO of course.
Comment by Dan1 — April 4, 2018 @ 4:37 pm
What is being avoided in the CCW discussion is the point that someone made a while ago that many or all of the neighbouring mining operations had openings through to each other. This means that the dewatering process has to take this into consideration. What are the facts. If CCW is connected to one or more neighbouring mining operations then the dewatering is not as simple as dropping a high volume pump down the shaft. The volumes to be pumped could be tripled plus and therefore a very expensive and time consuming operation. Do not just gloss over the physical facts. Get the answers Jon.
( Yes I have pumped out two old deep mines in my day)
Carver
Comment by David — April 4, 2018 @ 6:49 pm
Anyone here following Newstrike ….. better known as The Hip ?? HIP-x Weed stock with $100M in the Kitty !!! Warrants trading as well !!
Comment by farmer — April 4, 2018 @ 7:52 pm
Jon: wouldn’t mind seeing a weekday Sizzler to see what you think on most of these oversold conditions and the TSX Venture,etc? Good rebound today?!
Comment by MERIDEX — April 4, 2018 @ 8:04 pm
We’ll have an update in the am, pre-market, Meridex…
Comment by Jon - BMR — April 4, 2018 @ 8:59 pm
Thanks Up. I know it’s been a few tough weeks but there could be amazing opps right now!
Comment by MERIDEX — April 4, 2018 @ 9:48 pm
Thank you Carver for your comments on the WATER ISSUE that has been saddled on CCW !! This situation didn’t just ” spring up ” overnight and for this reason I am going to hold off on any new investment dollars into the CCW. We need to hear some serious commitment from Frank and his Team as to what they plan on doing with this water problem. Farmer
Comment by farmer — April 5, 2018 @ 2:17 am
Jon, please comment on David’s feedback.
Comment by BigBid — April 5, 2018 @ 4:40 am
THERE IS NO DEWATERING ISSUE at Castle, BigBid, because all the action and attention at this point and for many months ahead is on the first level of the mine – a broad area – which of course has already been dewatered.
I have been through the entire first level of the Castle mine – that area alone will keep CCW busy well into next year (and beyond in a mining scenario). Meanwhile, dewatering of the 2nd level can easily be carried out within the existing CCW underground permit. Would take no more than about 2 months if it’s done the slow way. What David is referring to is something CCW doesn’t even have to concern itself with at the moment which is dewatering at lower levels that connect to other underground workings in the Gowganda Camp (a bonus) – but this has absolutely no relevance to the current situation and can he handled at the appropriate time.
No other company in the northern Ontario Cobalt Camp even has underground access – they’d love to talk about dewatering but can’t !!!
Comment by Jon - BMR — April 5, 2018 @ 5:55 am
Fake news, Farmer – get your facts straight before making such a ridiculous statement re: a “water problem”.
Comment by Jon - BMR — April 5, 2018 @ 6:12 am
Sounds good Jon …… thanks for the Clarification on the ” water ” issue ….. still no word on the $20M Mill ??? Maybe no News is good news ?
Comment by farmer — April 5, 2018 @ 6:16 am
CCW would not have engaged Wood, one of the top firms in the business, if the mill plans (including the funding) weren’t firm. The immediate key for CCW is to start drilling underground and I expect we’ll hear something on that very shortly.
Comment by Jon - BMR — April 5, 2018 @ 6:20 am
Thanks Jon. Certainly not trying to press you guys. If Agnico was only mining the first level at Castle and it was one of their best producers, you’d THINK that alone would justify a MC higher than what CCW currently has…JUST ON SILVER. Lol. I think one thing that can make some of us nervous is could there be a large and unexpected financing that we weren’t anticipating. Just trying to cover all ends.
Comment by BigBid — April 5, 2018 @ 6:39 am
Agnico mined 11 levels, BigBid, and they didn’t even know they had Gold in the ore there until the very end…they didn’t touch Silver veins that were under 3 oz/tonne and that means there’s also a lot of Cobalt there as underground sampling to date has already shown…CCW has no need to do a financing right now, let alone a “large” one…ain’t happening at these levels, so that’s another rumor that (pardon the pun) holds no water…
Comment by Jon - BMR — April 5, 2018 @ 7:06 am
Thanks for the near term clarification re the water situation
Carver
Comment by carver — April 5, 2018 @ 7:34 am
Special Note: BMR is covering an event involving the Prime Minister today in Vancouver – 7 @ 7:00 will be an evening edition instead as a result, likely around 4:00 pm Pacific or 7:00 pm eastern…
Comment by Jon - BMR — April 5, 2018 @ 8:28 am
Let”s see, what are wynne”s liberals up to now ??? Ohhh, I see, what they are always up to. spending, spending, spending, spending, spending, spending, more spending, the libs need to take care of us ”cause we can”t, spending, spending, more spendingspendingmore spending !!!!!!!!!!!!! That”s great folks,..now we can sleep good tonight knowing we are all in good hands with wynne. Seriously folks ????????????????
Comment by chamberberk — April 6, 2018 @ 2:39 pm