Gold has traded between $1,169 and $1,177 so far today…as of 9:00 am Pacific, bullion is flat at $1,172…Silver is off 18 cents at $15.95…Copper is up 2 pennies at $2.70…Crude Oil is 92 cents lower at $58.21 while the U.S. Dollar Index has slid three-quarters of a point to 95.68…
Retail sales of Gold by the Perth Mint and the U.S. Mint have been declining as investors have been chasing returns in the stock market…this has also affected Gold holdings in the largest U.S. Gold ETF…assets in the SPDR Gold Trust have fallen to 6-year lows, pulling the fund out of the top 10 largest ETFs in America…
In a recent note, Macquarie Research analysts concluded that the biggest winners in the Gold sector going forward could be the intermediates. “As opposed to their larger peers, our intermediate producers are not faced with challenging leveraged balance sheets,” the analysts wrote…they also noted that free cash flow is set to grow more strongly for intermediates in their universe…they favor Detour Gold (DGC, TSX) and B2Gold (BTO, TSX)…among junior producers, Macquarie likes Richmont Mines (RIC, TSX), Teranga Gold (TGZ, TSX) and Kirkland Lake Gold (KGI, TSX)…
Oil Update
China, the world’s biggest net Oil importer, bought nearly a quarter less Crude in May than it did in the previous month, official data show…China’s imports of Oil products also fell by more than 6% while Oil product exports slipped 10%…the Chinese data came after OPEC agreed Friday to maintain Oil output at levels well above current demand, exacerbating a glut where millions of barrels of Crude are stored without a buyer…
The U.S. Oil rig count fell by 4 to 642 in the latest week, according to Baker Hughes Inc., marking the 26th straight week of declines…the number of rigs, a proxy for activity in the Oil industry, has fallen sharply since prices headed south last year…there are now about 60% fewer rigs working since a peak of 1,609 in October…
Euro Update
The euro has been gradually recovering from its early March low, and the key potential technical event to keep an eye on over the near future is a euro breakout above the downtrend line shown in this 1.5-year weekly chart…if this were to occur, the U.S. Dollar Index would come under further pressure which has important implications for commodities and the Venture…the euro could certainly surprise to the upside over the second half of the year…
The euro is up 1% this morning to 1.12…
Today’s Equity Markets
Asia
China’s Shanghai Composite soared another 109 points or 2.2% overnight to a new 7-year high…traders interpreted the mixed bag of trade data as impetus for further policy easing…the mainland’s yuan-denominated imports tumbled 17.9% in May from a year earlier, while exports fell by a smaller-than-expected 2.5%…also helping to support the index was expectations for China ‘A’ shares to be included in the MSCI Emerging Markets Index, which MSCI will announce tomorrow…blue-chips such as banking stocks, which are seen to be largest beneficiaries if the inclusion comes true, were on a tear today…
China will release economic data related to Fixed Asset Investment and Industrial Production this week…
Europe
European markets were down moderately today…leaders from the G-7 meeting in Germany over the weekend decided to keep sanctions against Russia in place until its President Vladimir Putin and Moscow-backed separatists fully implement the terms of a peace deal for Ukraine…meanwhile, complex negotiations between Greece and its international creditors over a reform package are expected to continue this week with Greece facing a June 30 deadline for a large payment to the IMF…
North America
The Dow is off 49 points as of 9:00 am Pacific…Thursday’s retail sales will be an important number this week to gauge the latest trends in consumer spending…bond markets have stabilized this morning after the 10-year Treasury yield jumped by more than 28 basis points last week to close at 2.40% on Friday, the largest weekly advance since early February…the 10-year Treasury yield has broken above some important resistance which is potentially short-term problematic for Gold given the strong inverse relationship between the two so far this year…
In Toronto, the TSX has tumbled 205 points as of 9:00 am Pacific while the Venture has declined 4 points to 686…North American Nickel (NAN, TSX-V) has arranged a $10 million financing (“in the context of the market”) through a syndicate of agents co-led by Paradigm Capital Inc. and Edgecrest Securities Corp., as announced this morning…net proceeds of the financing will be used for the company’s summer exploration and drilling programs at its 100%-owned Maniitsoq Nickel Project in southwestern Greenland…
Venture 6-Month Daily Chart
What’s encouraging about this chart is the Venture’s strong support around 680, defined by Fibonacci analysis and the uptrend line from the December all-time low…
Sell pressure, dominant for the month of May, has been replaced with buy pressure, a pattern that’s typically a prelude to gains in the Index…
Tribute Pharmaceuticals Inc. (TRX, TSX-V) Update
Tribute Pharmaceuticals (TRX, TSX-V) was halted just prior to the open but has resumed trading following the announcement that Pozen Inc. will acquire Tribute in a transaction valued at approximately $146 million (U.S.)…upon completion of the acquisition, which is expected to occur in the 4th quarter of 2015, the combined company will be named Aralez Pharmaceuticals plc and domiciled in Ireland…upon closing, Aralez is expected to trade on the TSX and NASDAQ…
The acquisition is aimed at creating a premier specialty pharmaceutical company with a broad portfolio of commercial products and a growth plan focused on innovative products and acquisitions and the commercialization of portfolio products in the U.S. and Canada…
TRX is up 22 cents to $1.52 as of 9:00 am Pacific after climbing as high as $1.62…
NexGen Energy Ltd. (NXE, TSX-V) Update
Drilling has commenced at NexGen Energy’s 100%-owned Arrow zone (Rook I Property) in the southwest part of Saskatchewan’s Athabasca basin…the summer program will utilize 5 diamond drill rigs…2 rigs are currently in operation with all 5 scheduled to be turning by June 20th…
Two drill rigs will focus on testing the extent of high-grade uranium mineralization in the A2 and A3 cores as the company drives Arrow toward an initial resource estimate…a 3rd rig will test previously undrilled areas of the A1, A2 and A3 shears targeting high-grade uranium mineralization similar to that found in AR-15–44b (40.45 m of off-scale radioactivity – assays pending)…the 4th and 5th rigs will test high priority regional geophysical targets on the Rook I Property along the Patterson and Derkson Conductor Corridors…
NXE is up a penny at 52 cents as of 9:00 am Pacific…
Discovery Ventures Inc. (DVN, TSX-V) Update
Interesting developments with Discovery Ventures (DVN, TSX-V) as we pointed out last week…the company has arranged credit facilities totaling $7 million to advance its Willa-Max high-grade Gold-Copper Project in southeast British Columbia, subject to satisfactory due diligence by investor Dan Omeniuk and Venture Exchange approval…
Discovery jumped 4.5 cents or 31% last week on strong volume…it’s digesting those gains today, backing off 2 pennies to 17 cents (previous Fib. resistance, now new support) as of 9:00 am Pacific…DVN has started strong upside moves over each of the last 3 summers as you can see on this 3-year weekly chart…
Silver Short-Term Chart
As expected, Silver is now testing support at the top of the downtrend line (dotted blue, $16) where it broke out from in May…it’ll be interesting to see if this holds…if not, next support is around $15.65…
Silver Long-Term Chart
An explosive push higher (eventually) – is this actually a scenario that could unfold in Silver over the next couple of years?…quite possibly, given the look of this 34-year monthly chart, though at the moment it’s hard to understand all the factors that could come into play to generate the kind of “Wave 5” move that appears to be in the works here…
It seems quite possible that the bottom of “Wave 4” came late last year when Silver briefly plunged to just above $14 an ounce…RSI(14) has managed to hold support which goes back to 2001…
Sell pressure continues to remain strong, however, as shown by the CMF – amazingly, at levels not seen in nearly 25 years since the low of $3.51…this intense sell pressure at the moment, which could continue for a while yet, should therefore be viewed in a larger context as a bullish contrarian indicator…
Note: John, Terry and Jon do not hold share positions in NAN, TRX, NXE or DVN.
CRS and MZI continue to trade strong.
EQT also a good one to accumulate.
Comment by dave — June 8, 2015 @ 10:19 am
CRS looking good. Picked up shares today. This one should really take off on speculation alone when the drill turns.
Comment by Dan — June 8, 2015 @ 12:02 pm
Dave, where do you see CRS trading pre flow rates?
Comment by Dan — June 8, 2015 @ 4:18 pm
good morning bmr boys I bring to your attention the latest press release from HERON RESOURCES(HER TEXCH)june 8 2015 “HERON RESOURCES ANNOUNCES APPOINTMENT OF CHIEF OPERATING OFFICER” regards walter emond
Comment by walter emond — June 9, 2015 @ 12:10 am
WRR FINALLY GET SOME NEWS….GREAT NEWS! VISIBLE GOLD! SHOULD START TO TRADE BETTER NOW!
Comment by STEVEN1 — June 9, 2015 @ 5:38 am
EAG/RYG/ WOW!
Comment by STEVEN1 — June 9, 2015 @ 6:18 am
Dan – .40 to .50 range, after flow, over a buck. One great comparison is JNX. 300+ bod more shares than CRS and it went to $2 when oil was crushed in the $40’s – CRS is a no brainer with the horizontal well.
NAR – ouch they were hoping for $200 a carat.
WRR – lets go with that visible gold boys, drill them holes
Comment by dave — June 9, 2015 @ 6:18 am
Steven, could you provide a link for the WRR news. Thanks.
Comment by terry — June 9, 2015 @ 6:21 am
High-grade gold hosted in what appears to be a quartz monzonite intrusive…can’t wait for the drilling to start at Lapon Canyon.
Comment by Jon - BMR — June 9, 2015 @ 6:23 am
Walker River finds visible gold at Lapon Canyon
Walker River Resources Corp (C:WRR)
Shares Issued 51,102,914
Last Close 6/8/2015 $0.025
Tuesday June 09 2015 – News Release
Mr. Michel David reports
WALKER ANNOUNCES LAPON CANYON EXPLORATION AND DRILLING UPDATE
Walker River Resources Corp. has progressed with its exploration drilling campaign on Walker’s wholly owned Lapon Canyon gold project, located approximately 60 kilometres southeast of Yerington, Nev.
The Lapon Project consists of 35 claims (720 acres) situated in the Wasuk Range, easily accessible by secondary state roads from the main highway (25 kilometres). A state grid power transmission line passes within three kilometres of the property.
The Lapon project is located within the Walker Lane shear zone, a 100 kilometre wide structural corridor extending in a southeast direction from Reno, Nevada. Within this trend, numerous gold, silver, and copper mines are located, notably the historic Comstock Lode mines in Virginia City, the past producing Esmeralda/Aurora gold mine, with reported production of some one million ounces, as well as the Anaconda open pit copper mine in Yerington. Nevada Copper’s new mine, Pumpkin Hollow, is also located within the Wasuk Range about 25 kilometres north of Lapon. Notably, this mine is within Porphry.
The Lapon project is cut by a series of steeply dipping cross fault structures cutting across the Walker trend, analogous to other cross fault structures responsible for many gold and base metal deposits in the world. These faults are heavily sheared and altered (sericite, iron oxides) with abundant silica. They vary in width from 60 to 300 meters. Four of these structures have been discovered at Lapon, and at least two can be traced for over four kilometers. Gold mineralization is located within en echelon structures within these faults. At least one of these shear zones, the Lapon Rose zone was the site of underground development, and shows a minimum strike length of 4 kilometers, has a width of over 60 meters and has a vertical extent of at least 650 meters.
Exploration work began in April and since that date, significant exploration progress has been made. Within the upper Lapon Rose Zone, gold mineralization in the form of Visible Gold has been noted in two different locations within the upper adit.
Samples within this adit were taken for rock identification purposes. The intense alteration and shearing makes on site identification difficult. The samples were cut and studied using a microscope confirming that the in situ rock is Porphry, in all probabilities, a quart monzonite intrusive. Copper mineraization, in the form of malachite and chalcopyrite has also been discovered within the Lapon rose zone.
A newly discovered shear/altered zone was discovered some 600 meters east of the Lapon Rose. Evidence of mining activities within this previously unknown zone were discovered with evidence of a collapsed mine portal.
Finally, another shear zone, some 1000 meters west of the Lapon Rose zone, shows intense iron oxide mineralization and silicification, with the presence of a previously unknown adit into the center of this new zone.
The drill access roads and all drill pad construction are complete, including the sourcing of sufficient water on site for drilling purposes. Six holes have been spotted, with planned lengths varying from 150 to 400 meters.
Small scale high grade mining began on the project in 1914. The mine area was at the top of the canyon at the Lapon Rose zone, and access to the site in those years was extremely difficult, indicating that the mine was rich enough to drag equipment and supplies up a steep canyon trail. About 600 meters of drifts and raises were developed from two adits and a two stamp mill was built. Further limited underground work was carried out, returning numerous assay values in the range of one ounce per ton, with a sample at the end of an adit returning 20.6 ounces per ton National Instrument 43-101, Montgomery and Barr, 2004)
Surface sampling by Walker returned a value of 0.398 ounces per ton gold in altered and sheared rock from the upper Lapon Rose zone.
Comment by STEVEN1 — June 9, 2015 @ 6:28 am
WRR News
Comment by John BMR — June 9, 2015 @ 6:43 am
Poor NAR…. dropped 50% due to results…
Comment by Theodore — June 9, 2015 @ 6:51 am
Jon – I’m looking forward to those drill results by WRR. Probably in Sept or Oct. which is perfect timing after the summer doldrums.
Comment by dave — June 9, 2015 @ 7:37 am
There’s no reason they shouldn’t drill into some nice grades right off the bat, Dave.
Comment by Jon - BMR — June 9, 2015 @ 7:42 am
yummy
Comment by dave — June 9, 2015 @ 7:54 am
Am I reading this right? Are they ready to start drilling any day now? According to the news release, drill pad construction is complete for 6 planned holes? It sounds like they are ready to go. Some interest….up 40% to 3.5 pennies with a market cap of under 2 million
Comment by Roger — June 9, 2015 @ 8:08 am
Some action From GGI
Comment by Martin — June 9, 2015 @ 8:12 am
http://web.tmxmoney.com/article.php?newsid=76010034&qm_symbol=EAG
This sounds exciting as I am an Eagle Hill shareholder. Has anyone got any ideas as to what sort of value my shares should be worth? I might take some profit and buy more Garibaldi shares.
Comment by Tom UK — June 9, 2015 @ 8:16 am
Volume can often be a precursor of something, Martin…chart looks good, lots of things on the go…
Comment by Jon - BMR — June 9, 2015 @ 8:18 am
We Will be testing best volume within Last six mounth by day’s end!
Comment by Martin — June 9, 2015 @ 8:21 am