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1. Spot Gold has traded between $2,024 and $1,937 so far today…as of 7:00 am Pacific, Gold is off $85 an ounce at $1,934 in a healthy pullback…the yellow metal made another failed attempt yesterday to reach the record high it posted at the end of last week, triggering some significant profit-taking…“The scale of the upswing over the past 4 weeks has been excessive,” stated Commerzbank…“This was made clear by the extremely high RSI and the pronounced deviation from the 100-day moving average. Sentiment towards Gold became positive in the extreme, with only a minority of participants sounding a note of caution”…Silver, also overdue for a minor correction, has slipped $2.16 an ounce to $26.98…Nickel is up slightly at $6.43…Copper has retreated to $2.91 while Zinc is steady at $1.08…Crude Oil has gained 63 cents a barrel to $42.57 while the U.S. Dollar Index is off one-fifth of a point at 93.36…U.S. producer prices increased by the most in more than 1.5 years in July, but the overall trend in producer inflation remains subdued…a little more than half of U.S. elementary and high school students will attend school only virtually this fall, according to a new study, as education officials struggle with unprecedented decisions amid the Wuhan COVID-19 pandemic…the study by Burbio, which aggregates school and community calendars nationwide, found that 52% of students will go to school virtually only and just 25% will attend every day…the remaining 19% will have some form of hybrid schooling, combining online and in-person learning…4% of districts remain undecided…
2. New Found Gold (NFG, TSX-V), a great example of the powerful bull market we’re now in, made its Venture debut this morning after completing a $27.3 million IPO at $1.30 per share…if NFG confirms the deposit it believes exists at its Queensway Project near Gander, Newfoundland, the implications for the Canadian exploration sector (and the junior market in general) will be profound…Queensway is an under-explored district scale 1,500 sq. km land package within the highly prospective Central Newfoundland Gold Belt and features a similar geologic setting to Kirkland Lake’s (KL, TSX, NYSE) Fosterville mine in Victoria, Australia…New Found Gold’s first drill hole, announced early this year, intersected 93 g/t Au over 19 m including 285 g/t over 6 m, starting just 96 m downhole…100,000 m of drilling is planned in 2 phases, including on multiple targets along 7 km of high priority strike length…the project is surrounded by excellent infrastructure, located just 12 km west of Gander, and is bisected by the Trans Canada Highway…NFG also boasts a proven leadership team and a strong shareholder base with a “Dream Team” led by the likes of Collin Kettell, Eric Sprott, Rob McEwen, Cal Everett, Paul Matysek and Quentin Hennigh…LabGold (LAB, TSX-V) is unquestionably the best “area play” in this large district, an ideal way to leverage the potential success of NFG and a possible continuation of that system through at least the southern section of LAB’s extensive property holdings where a fresh exploration program is now under way …Labrador Gold is the brainchild of GroundTruth founder and prolific Yukon explorer Shawn Ryan…3 years of recent exploration work on LabGold’s Kingsway Project outlined a very large Gold anomaly in till, vegetation and soil associated with the same fault zone structure that contains the NFG discovery…his theory that Newfoundland was grossly under-explored and contained rich precious metals deposits was certainly validated when LabGold’s immediate southern neighbor, New Found Gold, drilled its 93 g/t discovery hole…
3. The Dow, riding a 7-session winning streak, is up another 281 points in early trading to begin the new week…the S&P 500 is on the cusp of a fresh all-time high, within 1% of its February 19 record of 3,393, amid a rotation out of technology shares and into stocks that would benefit from a reopening of the economy and a vaccine, such as cruise lines and airlines…airline stocks surged for a 2nd straight day after Transportation Security Administration data out yesterday showed the number of travelers who went through airport screenings on Sunday was the highest since shutdowns began in mid-March…in Toronto, the TSX is under pressure due to Gold’s pullback with the TSX Gold Index off 23 points at 366…strong support exists in the 360’s…the Venture is down 25 points at 722 but is well supported at and just above 700…Metallis Resources (MTS, TSX-V) has completed its Phase 1 field program at its 100%-owned Kirkham Property in the Eskay Camp and is now preparing for the commencement of drilling, targeting high-grade Gold as well as a potential new district Nickel discovery at K-9 immediately southwest of the historic Northwest Zone at Nickel Mountain…GR Silver Mining has cut 6.8 m grading 716 g/t AgEq (191 g/t Ag, 1.9 g/t Au and 10.5% combined Pb-Zn) in latest drill results released this morning from the Plomosas mine at its Plomosas Silver Project in Sinaloa…results reveal the presence of wide zones of Gold mineralization in addition to attractive near-surface polymetallic (Ag-Pb-Zn) mineralization…results to date define a mineralized strike length of up to 700 m, with field evidence and underground mapping indicating further continuity along strike and down dip…Discovery Metals (DSV, TSX-V) has closed a $35 million private placement with Eric Sprott increasing his ownership on a non-diluted basis to 26.4%…
4. Wallbridge (WM, TSX) has cut 24.6 g/t Au over 15 m from the Lower Cayenne Zone at Fenelon, expanding the high-grade domain of this zone by 260 m downdip to a vertical depth of 825 m…“This impressive Gold intersection in hole FA-20–148 demonstrates that Tabasco-style wide, high-grade domains are also present in the Lower Cayenne Shear Zone,” stated Attila Pentek, VP-Exploration of Wallbridge…“Being 260 m below another strong intersection of Lower Cayenne in hole FA-19–059, it opens up another parallel structure at depth for high-grade resource growth potential. At a vertical depth of 825 m, this is also the deepest intersection of high-grade and high (>200) metal factor Gold mineralization so far at Fenelon”…
5. Brigadier Gold (BRG, TSX-V) has acquired an option to purchase a 100% interest in the 39 sq. km hectare Picachos Gold-Silver Property, centred over the historic Viva Zapata national mineral reserve in Sinaloa, Mexico…Picachos is located between Vizsla Resources‘ (VZLA, TSX-V) Panuco Project and GR Silver Mining’s Plomosas Project…more than 160 known historic underground mines, workings and prospects at Picachos are on Gold-rich veins such as San Agustin which has never been tested with diamond drilling…San Agustin mine underground channel sampling by a prior operator returned an average grade of 81.2 g/t Au and 73.4 g/t Ag across 1.2 m…BRG CEO Ranjeet Sundher commented, “Closing the Picachos acquisition marks our official entry into the Sierra Madre epithermal belt, which has seen tremendous drilling success from neighboring exploration companies. Brigadier is well funded, having closed $4.2 million in financings over the last 30 days, and is preparing to initiate a maiden 5,000 m drill program targeting the high-grade historic San Agustin mine. In addition to the high-grade San Agustin mine, Picachos offers exceptional exploration potential, with over 160 historic mines and workings throughout the Property”…the largest vein system at Picachos trends northeasterly for 7 km along a major fault zone…
6. Russian President Putin announced this morning the registration of what Russia claims to be the world’s first vaccine for COVID-19, and said one of his daughters had already taken it…“As far as I know, a vaccine against a new coronavirus infection has been registered this morning, for the first time in the world,” Putin stated…“Although I know that it works quite effectively, it forms a stable immunity and, I repeat, has passed all the necessary checks,” he added, though Putin’s words should be taken with a grain of salt…clinical trials of the Russian vaccine have been completed in less than 2 months and Phase 3 trials are set to begin tomorrow, despite the vaccine having already been “registered”…no data has yet been published by the researchers and the long-term effects and safety of this possible vaccine currently remain unclear…Dr. Scott Gottlieb, the former U.S. Food and Drug Administration commissioner, urged caution about Russia’s coronavirus vaccine, telling CNBC today that he would “certainly not” take it outside of a clinical trial where patients are closely monitored…“They’ve cleared the equivalent, really, of a Phase 1 clinical trial in terms of putting it in 100 to maybe as many as 300 patients so it needs to be evaluated in a large-scale clinical trial,” he said on “Squawk Box“…Russia’s vaccine development is “certainly not ahead” of the United States, added Gottlieb, who is a board member of Pfizer, which is developing a potential vaccine…
7. Silver remains the top pick for TD Securities due to its positioning levels…“Silver…remains our precious metal favorite as a clean positioning slate, strong investment flows and robust industrial demand combine for strong performance at a time when the microstructure creates a disincentive for Silver bullion traders to sell”…meanwhile, TD strategists noted yesterday – prior to Gold’s pullback today – that positioning in Gold was “increasingly bloated” and investors should be ready for modest consolidation…“The bulls are vulnerable to a modest consolidation in the macro drivers that have supported Gold length over the past few months. As positioning has grown to increasingly bloated levels, leaving little dry-powder remaining for the bulls, the frenzied retail speculation has further increased the risks of a positioning squeeze for Gold bugs”…the healthy pullback in Gold should be viewed as a buying opportunity, an ideal time to accumulate high quality plays that have been running hard recently and are now taking a much-needed breather…
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I find it hard to believe metals could drop dramatically further from here (e.g. silver below $21 or gold below $1850). Who is going to sell at those low prices when everyone knows and expects gold and silver to soar with the deficit spending, currency devalualation/money printing, and 0% interest rates / negative real rates, as BMR explains in the weekly wrap up every week? Not to mention rumors of a calamity developing in the COMEX with so many buyers standing for delivery. It can’t be long before weak hands get shaken out and nobody that’s left is willing to sell.
Comment by schiffwasright — August 11, 2020 @ 3:44 pm