BMR Morning Market Musings returns tomorrow as part of a broader format we’re introducing at the site.
1. Gold has traded between $1,235 and $1,238 so far today…as of 7:00 am Pacific, bullion is off its lows of the day, down $10 an ounce at $1,239 while Silver has fallen 9 cents to $18.31…Gold took a hit this morning after data showed U.S. jobless claims fell to a 44-year low…some analysts believe that labor tightness, combined with rising inflation, could encourage the Federal Reserve to raise interest rates at its March 14–15 policy meeting…Fed Chair Janet Yellen and Vice Chairman Stanley Fischer will both be speaking tomorrow – a hawkish spin from Fisher, at least, seems likely and that has put Gold bugs on the defensive today…
2. Crude Oil is under some pressure this morning, off $1 a barrel to $52.84, after U.S. Crude stocks hit an all-time high and official data showed Russian Oil production unchanged in February with no further cuts to tighten the market and drain global over-supply…Crude inventories in the U.S., the world’s biggest Oil consumer, rose by 1.5 million barrels last week to a record 520.2 million barrels…however, WTIC has consistently shown resiliance to this type of bearish information…significantly, OPEC cut its Oil output for a 2nd month in February, a Reuters survey found, showing the cartel has boosted already strong compliance to around 94%…
3. The Venture is down 4 points at 818 as of 7:00 am Pacific after snapping a 3-session losing skid yesterday with a 5-point advance…high-flier Saint Jean Carbon (SJL, TSX-V) has slipped 2 pennies to 27.5 cents after climbing as high as 35.5 cents intra-day yesterday…more than 140 million shares have traded in SJL the last 2 days since the company’s news Tuesday regarding a graphite anode order from Panasonic…updated chart for subscribers was posted pre-market this morning…exceptional Venture support ranges from 800 to the 780’s…the Dow and TSX are both off slightly in early trading…
4. Ventripoint Diagnostics (VPT, TSX-V) is this morning’s big mover on the Venture, more than doubling in value to 20.5 cents (just 32 million shares O/S) on high volume after the company announced that it has received a licence from Health Canada for the new VMS-PLUS machine and the four-chamber (4C) heart analysis system…
5. Deveron UAS (DVR, CSE) continues to build momentum and is now threatening to push past resistance at 40 cents…the company reported earlier this week that it completed over 500 commercial drone flights (incident free) in 2016, clearly establishing DVR as North America’s leading drone-based data provider to the agricultural industry…Deveron, which started operations in Ontario, has secured some important partnerships and is now expanding aggressively into Western Canada…it will be able to provide drone data solutions throughout the 2017 grow season to customers in Alberta, Saskatchewan and Manitoba – a potential market of 50 million acres…according to PwC, the commercial drone industry is reported to be $127 billion, with agriculture making up $32.4 billion…DVR is up 1.5 cents at 39.5 cents as of 7:00 am Pacific for a market cap of only $6.6 million…
6. Marathon Gold (MOZ, TSX) is off slightly at $1.03 after 2 strong sessions following release of more solid results from drilling at the Valentine Lake Gold Camp…numbers included 2.1 g/t Au over 125 m and 4.08 g/t Au over 43 m in MA-17–162, and 1.9 g/t Au over 82 m and 3.20 g/t Au over 22 m in MA-17–163…
7. Manganese X Energy (MN, TSX-V) is up 3 pennies at 23 cents after announcing this morning that it has “entered into its next phase”, consisting of an innovative metallurgical project financed by the company’s recent $1.45-million oversubscribed financing…CEO Martin Kepman stated, “This innovative metallurgical project is developing a process in order to produce a Manganese concentrate to be utilized for production of Electrolytic Manganese Dioxide which is also known as EMD. EMD is a high value Manganese product which is utilized within various applications especially for Lithium ion battery cathode material for electric vehicles. Manganese is the critical link in the Lithium ion storage chain. The reason we refer to it as innovative is that the company is focused on producing a cost effective, environmentally friendly concentrate for the Lithium ion battery market which is currently in high demand within North America.”
The 3 most popular recent BMR articles…
The Drone Revolution: Deveron UAS Carves A Niche In The Booming AgTech Sector
Jon – what are your thoughts re: CPO current trading/levels. I know it is above support, but it has been pulling back lately. First PP just closed, still a second one to close (soon I would think) – likely keeping it down.
Thanks
Comment by Foz1971 — March 2, 2017 @ 8:03 am
As I mentioned previously, Fox1971, I wasn’t thrilled with the dilutive nature of the CPO financing as I believe they could have done a raise at a higher price than 8 cents (hard dollars) and 12 cents (flow-through). Most, if not all, companies in the district have also done just hard dollar raises. So you’re right, I think until the 2nd PP closes the stock is constrained. Having said that, I really like the group—they’re very serious on the exploration side and have carried out a really systematic program, leading to a drilling phase soon, at the Smith Project next to the past producing Deer Horn mine. CEO Andreas Rompel is an expert in structural geology, so his insights into the CPO property and the district as a whole should be very valuable. Bottom line—-market cap is cheap, they’re cashed up and stock will do very well in the coming months IMHO. Think BIG, not small, with regard to this Camp.
Comment by Jon - BMR — March 2, 2017 @ 8:51 am
Thank you Jon. Agree, I am impressed with their in-house knowlege and their comprehensive, systematic approach to their property. share price will move soon. F
Comment by Foz1971 — March 2, 2017 @ 9:01 am
right on,getting close to bargain time again on ggi…
Comment by Laddy — March 2, 2017 @ 9:40 am
SJL….Trading Halted
Comment by John - BMR — March 2, 2017 @ 9:42 am
It will be interesting to see what the news is for SJL. Why not halt it before market open instead of letting it trade for a couple hours? It’s like something unexpected came up? Hopefully something good but who knows.
Comment by Danny — March 2, 2017 @ 2:49 pm
Laddy, we have had enough bargain times with ggi, been in it a long time. Obviously Coffin’s comments have influenced some people. He has been in this game a long time so there is no doubt his comments are viewed as credible by his followers.
Comment by Danny — March 2, 2017 @ 2:53 pm
If everyone’s bullish and on the same side of the fence, Danny, that’s often the time to sell. Skeptics are good and they are not to be feared, as when they get better informed – many have much catching up to do in this case – they represent a source of fresh new buying power.
Comment by Jon - BMR — March 2, 2017 @ 4:33 pm
Jon: what do you think of the recent sell-off on CPO? CSR? TSX Venture, cobalt stocks,etc.
Comment by MERIDEX — March 2, 2017 @ 5:32 pm
The market day featured quite a bit of red but there were some individual standouts which we’ll touch on more tomorrow…
Huge move for VPT (see 7 @ 7:00) as it skyrocketed 59 cents to close at 69 cents and actually climbed as high as 93 cents on news of a Health Canada license for its new VMS-PLUS machine and the four-chamber (4C) heart analysis system…
Deveron UAS (DVR, CSE) is waking up – this is one we’ve followed since last year and the move this time likely has staying power and traction—-perhaps just 1 more news release from really exploding…closed at .395, very bullish and just a $6.7 million market cap…big move into western Canada and they’re making inroads in U.S. Get in before the crowd. We envision something really exciting here. Would love to see some skeptics pop out and say we’re wrong on DVR!
Aurvista Gold (AVA, TSX-V) bucks the trend in Gold stocks, jumping 7.5 cents to 42.5 cents on updated resource estimate for Douay in Quebec – 4.4 million ounces…$57 million market cap….
Castle Silver—working on an update with post likely for tomorrow, best value in the Cobalt camp on this pullback to 18 cents and a market cap of $6 million…resource dollars are looking to go somewhere—-the Cobalt space will be hot for quite some time and the best area is northern Ontario…happily added to my position today.
Daniel has an excellent video presentation overview on Benton Resources that we’ll be posting tonight. Great source of info for those following developments along the Cape Ray Fault with a host of companies including also Marathon Gold and Altius. We’re very much on top of this district, plus of course the Eskay Heart of Gold Camp and the Northern Ontario Cobalt Camp.
Comment by Jon - BMR — March 2, 2017 @ 5:41 pm
Danny – what did coffin say about GGI?
Comment by Dennis — March 2, 2017 @ 6:30 pm
News just out from CSR…
– $750 K financing @ 0.15
– Work program at Castle in progress and will accelerate
– Beaver program to start soon
$6 million market cap vs. $13 million average in Cobalt camp, no-brainer for continued accumulation…BMR report Monday…
COQUITLAM, BC, Mar 3, 2017 (Canada NewsWire via COMTEX) — Castle Silver Resources Inc. (CSR) TAKRF, -7.10% (frankfurt:4T9B) (the “Company” or “Castle”), an exploration leader in the prolific Cobalt-Gowganda silver-cobalt district in northern Ontario, is pleased to provide a corporate update including details on a proposed private placement expected to close shortly.
The month of February featured a significant upswing in market activity for Castle. This can be largely attributed to dynamics in the energy metals space, a breakout in the price of cobalt to new multi-year highs above $20 a pound (U.S.), and a major revival of interest in the Cobalt-Gowganda Camp. This region historically featured over 100 mines and contributed powerfully to the growth of the Canadian mining industry after a spectacular initial discovery in 1903.
Starting in 2011, well before the current upswing in the Cobalt market driven by new technological demand as well as supply concerns, Castle strategically positioned itself in this unique district with approximately $4 million invested over the last six years to advance its Castle Property in Gowganda and its Beaver Property in Cobalt. Both were well-known silver-cobalt producers beginning in the early 1900’s and were also among the final few active mines when Agnico Eagle ceased production in the region just over 25 years ago due to a plunge in silver prices.
Castle Private Placement
Proceeds from a proposed non-brokered $750,000 private placement in Castle at 15 cents per unit (non-flow-through) will be used, in part, to expand an ongoing exploration program at the Castle Property following a recently completed IPower3D (induced polarization) survey to identify potential new silver-cobalt drill targets. Importantly, the Company enjoys full access to the underground workings in the main adit after a closure plan accepted by the Ontario government and an agreement with local First Nations.
Meanwhile, the Company eagerly anticipates commencing a new work program at Beaver, also funded through proceeds from this financing, following release of preliminary results from bench-scale metallurgical flotation and gravity testwork as reported in the Company’s news release January 31, 2017.
Private Placement Details
Each unit of the private placement comprises one share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the Company at an exercise price of $0.20 per share for a period of two years from closing, subject to TSX Venture Exchange (“Exchange”) approval. The expiry of the warrants may be accelerated if the closing price of the Company’s shares on the TSX Venture Exchange is at least $0.30 per share for a period of 10 consecutive trading days during the term of the warrant. The Company may accelerate the expiry of the warrants to 20 calendar days from the date express written notice is given by the Company to the holder. Proceeds of the private placement will also be used for general working capital purposes. Finder’s fees will be paid in connection with the private placement, subject to Exchange policies and approval.
All securities issued in connection with the private placement are subject to a four-month and a day hold period in accordance with applicable Securities Laws.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing on the exploration and development of former silver and cobalt mine properties in northern Ontario including the Castle Silver mine near Gowganda and the Beaver and Violet mines near Cobalt. Additional information on the Company’s properties is available by visiting its website at http://www.CastleSilverResources.com.
“Frank J. Basa” Frank J. Basa P. Eng. President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Castle Silver Resources Inc.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2017/03/c1611.html
SOURCE: Castle Silver Resources Inc.
Comment by Jon - BMR — March 3, 2017 @ 5:19 am
I guess it’s time to buy some oversold Cxo once again, going up next week when they announce .32 financing is in place. Oh ya don’t forget the results from Nevada drilling as well… Way oversold!!
Comment by Greg — March 3, 2017 @ 6:03 am
It will also be interesting how Seabridge reacts to the fact that Cxo will control 80% of kSP later this year, Seabridge, I’m sure would love to have Cxo out of the picture!
Comment by Greg — March 3, 2017 @ 6:22 am