Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has traded between $1,198 and $1,206 so far today, and is down $6 an ounce at $1,198 as of 7:00 am Pacific…the U.S. Dollar Index, meanwhile, is up one-quarter of a point to 101.59…both will be impacted today by comments from Treasury nominee Steven Mnuchin at his confirmation hearing…
2. Gold endured a normal pullback on profit taking yesterday, its biggest fall in more than a month, after comments from Fed chair Janet Yellen were interpreted as hawkish…she indicated the U.S. central bank would press ahead with interest rate increases…Yellen speaks again tonight in San Francisco (5:00 pm Pacific) about the economic outlook and monetary policy on the eve of President-elect Trump’s inauguration…
3. The Venture is flat at 792 as of 7:00 am Pacific…the runaway volume leader is Encanto Potash (EPO, TSX-V) which has jumped 6 cents to 15 cents on nearly 8 million shares (all exchanges) after announcing post-market yesterday that it has finalized an historical offtake agreement with the National Federation of Farmers’ Procurement, Processing and Retailing Cooperatives of India Ltd. (NACOF)…the agreement provides for the supply of a minimum of 5 million tonnes per year for a guaranteed period of 20 years for muriate of Potash (MOP), the most common potassium source used in agriculture…food security obtained by procurement of an alternative supply of MOP and eliminating middlemen for Indian farmers is a fundamental objective for NACOF…
4. Otis Gold (OOO, TSX-V) released positive results this morning from the final 12 holes of 2016 drilling at its Kilgore Gold Project in Idaho…they included 128 m @ 1.79 g/t Au (hole #353), 27.5 @ 2.6 g/t Au and 80.8 m @ 1.87 g/t Au (hole #354), 120.4 m @ 1.18 g/t Au (hole #349) and 74.6 m @ 1.01 g/t Au and 35.9 m @ 1.12 g/t Au (hole #352)…the 40-hole drill program confirmed the presence of significant Gold mineralization in the underexplored Aspen Formation sedimentary host rocks…a majority of these intercepts were of higher grade and longer intervals than most of those encountered in prior drilling at Kilgore and thus demonstrate a clear potential to increase the overall size and grade of the deposit…the company is now working on a new resource estimate and plans for 2017 drilling…OOO is up 2.5 pennies at 30.5 cents as of 7:00 am Pacific…
5. Gold Standard Resources (GSV, TSX-V) provided fresh drill results this morning from its Railroad-Pinion Project in Nevada…drill hole DS16–33, collared on the southern edge of the North Dark Star, returned 33.1 m of 0.62 g/t Au within a larger lower-grade interval, confirming the finding from DS16–31 that the North Dark Star and the Main Dark Star oxide Gold deposits are connected and form a continuous Gold zone with a strike length of approximately 1,300 m…GSV is up slightly at $2.86 through the first 30 minutes of trading…
6. Precipitate Gold (PRG, TSX-V) is off sharply in early trading after disappointing low-grade results from the first 5 holes of drilling at its Ginger Ridge prospect in the Dominican Republic…the drill program, following up on a 2014 discovery, continues…just recently, GoldQuest Mining (GQC, TSX-V) made a VMS discovery in a drill hole just 2 km northwest of Ginger Ridge…
7. Callinex Mines (CNX, TSX-V) is another company taking a hit this morning for not meeting drill result expectations…CNX is off 12 cents at 31.5 cents after results from 2 holes at its continuing drill program at Pine Bay (VMS) near Flin Flon returned no better than 4.7% Cu and anomalous Zinc and Gold over less than 1 m…
