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1. Gold has traded between $1,266 and $1,275 so far today, touching its lowest levels of the year, hurt by stability in the dollar and Treasury yields as investors weighed the Fed’s comments yesterday…Fed Chair Powell sees “no strong case” for moving rates in either direction, but remarks tied to inflation prospects cast a hawkish tone over an otherwise neutral policy decision…that has put Gold bugs a little on the defensive today…keep in mind, though, the Fed has consistently overstated inflation concerns (for years)…Silver has fallen 4 cents to $14.61…Copper is off 2 cents at $2.83…Nickel is up a penny at $5.51 while Zinc is a penny lower at $1.30…Cobalt remains steady at $15.76…Crude Oil has tumbled $1.58 a barrel to $62.02…record U.S. production rates of 12.3 million barrels per day, alongside a bigger-than-expected build in domestic Crude stocks, are offsetting bullish geopolitical tensions…the U.S. sharply tightened energy sanctions against Iran today, seeking to cut the Islamic Republic’s exports to zero…traders are also keenly watching events in Venezuela where “Operation Liberty” is attempting to oust corrupt socialist dictator President Nicolas Maduro, though Maduro is so far managing to cling to power with some outside help…the U.S. Dollar Index has rebounded one-fifth of a point to 97.78…U.S. worker productivity increased at its fastest pace in more than 4 years in the 1st quarter, depressing labor costs and suggesting inflation will remain benign…the report from the Labor Department this morning came on the heels of data this week showing moderate wage growth in the 1st quarter and a key inflation measure posting its smallest annual gain in 14 months in March…furthermore, President Trump has shown his determination and ability to keep Oil prices in check which in turn will keep inflation (and the Fed) tame…

2. The physical Gold market found broad-based support from investors and central banks during Q1, according to the latest report from the World Gold Council (WGC)…the WGC’s 2019 First Quarter Global Trends Report said that worldwide Gold demand increased to 1,053 tonnes in the first 3 months of the year, an increase of 7% compared to the 1st quarter of 2018…a positive trend in the marketplace was global investment demand, which increased to 298.1 tonnes or 3% in the first 3 months of the year…there was a 49% year-over-year increase in demand for Gold-backed exchange-traded funds…the global investment trend was limited with a 1% drop in worldwide bar and coin demand and an 8% drop in Chinese investment demand…the WGC noted that renewed investor interest in Gold comes during a time when equity markets have been hitting new record highs…“Despite U.S. stock markets generating their strongest quarterly returns in 10 years, investor sentiment in Q1 was underpinned by the shifting stance of the Federal Reserve, which adopted a more neutral monetary policy approach,” the WGC said in its report…“This more dovish outlook should underpin regional demand for the rest of 2019, although continued strength in the stock market would be a headwind”…

3. Radius Gold (RDU, TSX-V), yesterday’s big market mover with a gain of 139%, is holding up well in early trading as it temporarily digests a sudden and powerful surge…RDU hit multi-year highs on record volume yesterday when the company released first results from a 2nd round of drilling at its Amalia Gold-Silver Project in Chihuahua, Mexico…the first hole of 2019, AMDD19–010, cut 44 m grading 12.4 g/t Au and 309.3 g/t Ag including an 11-m section grading 39.9 g/t Au and 323 g/t Ag…estimated true width of the mineralized zone is 34 m…all of the major epithermal deposits of the northern Sierra Madre are hosted within the Lower Andesite super group volcanic units, which (notably) the last 2 holes at Amalia have successfully cut into (hole #9, released Dec. 4, returned 26 m @ 7.1 g/t Au and 517 g/t Ag)…geologists now know where they are in the system, and that bodes well for upcoming results…drilling continues at Amalia with holes stepping out 100 m along strike and +- 50 m below known mineralization…similar style major epithermal mines of the Sierra Madre (e.g. Palmerejo, Pinos Altos, La Cienga) located in the same regional volcanic belt as Amalia are known to have mineralization occurring over large vertical intervals between 600 and 750 m…Radius has granted to Pan American Silver (PAAS, TSX, NASDAQ) the option to earn up to an initial 65% interest in Amalia by making cash payments to Radius totaling $1.5 million (U.S.), of which $100,000 has been received, and expending $2 million (U.S.) on exploration over 4 years…Pan American may earn an additional 10% by advancing the property to preliminary feasibility…Radius has retreated 3.5 cents to 30 cents in healthy early trading…the stock has broken out in a major way, technically and fundamentally…

4. The Dow is up 15 points after the first 30 minutes of trading…Fed Chairman Jerome Powell said yesterday that recent low inflation pressures may just be “transitory,” hinting that a rate cut later this year may not be on the horizon as many investors have been speculating…Powell’s comments, which contradicted remarks earlier this year, sent stocks lower in the final 2 hours of trading…more than half of the S&P 500 has reported calendar Q1 earnings and the results have largely outperformed expectations…according to FactSet, 74.7% of the S&P 500 companies have beaten earnings estimates…in Toronto, the TSX is 29 points lower while the Venture has retreated 3 points to 607 due to weakness in cannabis stocks…the volatile Canadian Marijuana Index is under pressure in early trading, slipping 13 points to 627 and dragging down the Venture…select resource opportunities should benefit from profit-taking in weed stocks…

5. Amex Exploration (AMX, TSX-V) is ramping up its drill program on the Eastern Gold Zone (EGZ) of the Perron Project near Rouyn-Noranda to 25,000 m from the previously announced 10,000 m with the addition of a 2nd rig…so far in 2019, Amex has completed 7,058 m in 23 drill holes…each of these holes has intersected reportable Gold mineralization (greater than 1 g/t Au over variable widths), including 16 that have returned intervals with grades >10 g/t…the 2nd rig will continue to drill on the EGZ in order to assist with exploration and definition drilling at the High Grade Zone and will also be used to extend several 2019 drill holes into another zone…in addition, this drill will also be testing several high priority regional exploration targets…AMX surged from 20 cents to nearly $1.50 over 6 weeks from mid-January to late February, raising $5.4 million at 75 cents in the process…temporarily overbought technical conditions have unwound with the stock now trading at 63 cents, slightly below its still-rising 100-day moving average (SMA) while the 200-day is approaching 40 cents…

6. Crazy Copper grades: Ivanhoe Mines (IVN, TSX) reported this morning that the strike length of the shallow, thick, massive Copper sulphide mineralization at Kamoa North in the DRC, discovered earlier this year when a drill hole cut an amazing 13% Copper over 22.3 m (true thickness), at a 2% Copper cut-off grade, has been significantly extended by assays received from continuing drilling…recent drilling has confirmed that the discovery zone of bonanza-grade Copper mineralization at Kamoa North is continuous over a strike length of at least 350 m and a width of up to 60 m…the mineralized zone has a drilled thickness of between 6 and 30 m, and is approximately 170 to 220 m below surface, with grades ranging as high as 18.5% Copper over 13.6 m, at both a 2% and a 3% cut-off grade…the Kamoa North Bonanza Zone represents a new style of Copper mineralization at Kamoa-Kakula, where massive to semi-massive chalcopyrite, bornite and chalcocite have locally replaced pyrite in the Kamoa Pyritic Siltstone…significant new drilling intercepts at Kamoa North include 16.7 m of 15.8% Copper; 13.15 m of 9.9% Copper; and 13.6 m of 18.5% Copper…

7. Alberta Premier Jason Kenney is warning that if a very flawed federal bill (Bill C-69) overhauling environmental assessments passes in its current form, it will threaten Canadian unity and there will be “an immediate constitutional challenge”…Kenney is at the Senate energy committee this morning to talk about Bill C-69 (opponents are rightfully calling it the “no more pipelines” bill), saying it flagrantly violates Alberta’s constitutional right to regulate its natural resources…Kenney wants all the amendments proposed by the former NDP government in Alberta accepted…“This bill does not need a nip and tuck,” he said…“It needs major reconstructive surgery or it needs to be put out to pasture”…Kenney says a recent poll suggests half of Albertans are prepared to secede from Canada…he says he thinks most people are just “blowing off steam” to express frustration, but contends that if support for seceding in Quebec was at 50%, no federal government would try to pass a bill causing so much anger…the legislation, already passed by the Liberal-controlled House of Commons, establishes a new process for reviewing major projects with a national scope or in federal jurisdiction…it amounts to another Justin Trudeau attack against the resource sector, something Pierre Trudeau was also famous for…

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