Gold has traded between $1,175 and $1,185 so far today…as of 8:30 am Pacific, bullion is down $2 an ounce at $1,180…Silver is off 16 cents at $15.87…Copper is down 2 pennies at $2.67…Crude Oil has slipped 62 cents to $60.15 while the U.S. Dollar Index has retreated one-fifth of a point to 94.87…
While weak physical demand and outflows from exchange-traded funds continue to weigh on the metal, bullion is nonetheless headed for its 1st weekly rise in 4…
U.S. producer prices in May recorded their biggest increase in more than two-and-a-half years as the cost of gasoline and food rose, suggesting that an Oil-driven downward drift in prices could be nearing an end…the Labor Department said this morning Friday its PPI for final demand increased 0.5% last month, slightly above expectations and the largest gain since September 2012…that followed a 0.4% decline in April…
In the year to May, the PPI fell 1.1%, marking the 4th straight 12-month decrease…prices dropped 1.3% in the 12 months through April, the biggest fall since 2010…
Oil Update
Should we be surprised?…word has come out that the Alberta NDP energy minister’s top staffer, Graham Mitchell, is a radical Toronto-based anti-pipeline activist who, among his many “credentials”, was (until just a few days ago) the Executive Director for LeadNow, an environmental lobby group that’s aggressively opposed to Canada’s energy sector and its ambitions…
What a horrible message this sends to Alberta’s Oil and gas industry…
From wrong-headed energy policies to corporate tax hikes and a host of other economically damaging plans, the Alberta “Advantage” is gone under the NDP – your capital and skills, Albertans, are more than welcome in neighboring British Columbia and Saskatchewan…
CRB Index 10-Year Monthly Chart
This long-term CRB Index chart gives us hope that the 2nd half of this year for the commodity space will be much different than last year’s second half which of course featured a major sell-off from September through December…
Historically oversold RSI(14) conditions are gradually beginning to unwind, -DI has formed a bearish “M” and is in decline (bullish), and an unusual gap still exists between the current level of the CRB (224) and the long-term downtrend line…we expect this gap to narrow over the coming months…
Today’s Equity Markets
Asia
China’s Shanghai Composite finished at a new 7-year high overnight, climbing 45 points or nearly 1% to finish the week at 5166 – its highest close since January 2008…
Europe
Greek stocks led European markets lower Friday after the latest setback in the country’s financing talks…the Athens stock market, which closed before the IMF announcement, declined 2.8% Friday, after climbing more than 8% yesterday…
“The [IMF] news has put a clear dent in what was the now false optimism that appeared to be building in the previous few days,” said Deutsche Bank strategist Jim Reid in a Wall Street Journal report. “Greece and its creditors still appear to be no closer to aligning views,” he added.
North America
The Dow is off its lows of the morning but has still shed 108 points as of 8:30 am Pacific…in Toronto, the TSX is off 72 points while the Venture is down a point at 681…
Everyone knows there’s a lot of “monkey business” on the Venture Exchange…now there’s actually a “Flying Monkey”…a new capital pool shell, Flying Monkey Capital Corp. (FMK.P, TSX-V), is now listed on the Venture…it’s the 1st shell to arrive this month and the 8th this year, up from 6 by this time last year…Canaccord Genuity Corp. sold Flying Monkey’s $300,000 IPO of 3 million shares at 10 cents…
Discovery Ventures Inc. (DVN, TSX-V) Update
Yet another interesting B.C. story that’s heating up again is Discovery Ventures (DVN, TSX-V) which announced Wednesday that it has solidified an agreement with a major new investor (Dan Omeniuk) for $7 million in credit facilities to advance the company’s high-grade Willa-Max Gold-Copper Project near Castlegar…
The synergies between the Max mill and mine facilities and the Willa deposit 130 km to the south are obvious…the Willa deposit has been around for a while, and also has excellent expansion possibilities, but it lacked a cost-effective mill solution until the Max came into the picture…the company was able to acquire it for a fire-sale price after a previous molybdenum operation there couldn’t survive a price downturn…Omeniuk brings other powerful synergies to the equation – not only financial strength, but he runs a successful transport company in Winnipeg…he has powerful business contacts, access to equipment, labor and services…he’s a tremendous strategic fit for Discovery…
The company’s PEA for the Willa-Max Project, released in May of last year, was highly robust, and of course since then Oil prices have declined substantially while the Canadian dollar has also dropped…
Technically, this 3-year chart is strongly bullish and points to another very active summer for DVN…SS and RSI(14) are showing increasing up momentum, and the 100-day moving average (SMA, not shown on this chart) has flattened out and appears ready to reverse to the upside…big possibilities for this over the next few months given this week’s developments…
DVN is up another penny at 20.5 cents as of 8:30 am Pacific…
Canada Zinc Metals Corp. (CZX, TSX-V) Update
Field crews have mobilized to Canada Zinc Metals Corp.’s 100%-owned Akie Zinc-Lead-Silver Property located in northeast British Columbia to initiate a summer drill program…the planned 5,000 m of diamond drilling will target the Cardiac Creek deposit with a focus on resource growth…holes will target the lower elevations of both the indicated and inferred sections of the mineral resource…CZX is unchanged at 23.5 cents as of 8:30 am Pacific…
Calibre Mining Corp. (CXB, TSX-V) Update
Calibre Mining (CXB, TSX-V) released another set of results yesterday from its 2015 drilling program on the Eastern Borosi Gold-Silver Project in Nicaragua, which is being financed under an option agreement with Iamgold (IMG, TSX)…
Diamond drilling on the Guapinol vein system has further extended to depth (300 vertical m) the high-grade mineralization including 1.4 m grading 98.7 g/t Au and 49.1 g/t Ag (GP15–034) on the Guapinol vein (the deepest intercept and the highest grades yet from the 2014–2015 drilling), and 7.1 m grading 6.2 g/t Au and 41.4 g/t Ag (GP15–037) on the Vancouver vein…
Drilling continues on Iamgold-optioned ground (in green)…
Technically, CXB is attempting to overcome Fib. resistance at 15 cents…it’s underpinned by a rising 50-day SMA at 14.5 cents…CXB has strongly outperformed the Venture since the spring of last year, and that trend appears likely to continue…the stock is unchanged at 15.5 cents through the first 2 hours of trading…
Probe Metals Inc. (PRB, TSX-V) Update
We’ve been pointing out the opportunity in David Palmer’s Probe Metals (PRB, TSX-V) since the spin-out began trading in March and was hovering in the mid-30’s, well below cash value…the company, which was formed out of the recent Probe Mines-Goldcorp deal, is evaluating opportunities while sitting on nearly $20 million – a great time in the market cycle to be sitting on that amount of cash…
With only 34 million shares outstanding, PRB’s current market cap now more closely approximates its cash value with the stock having moved from the mid-30’s to the 50-cent level where it could meet temporary technical resistance…PRB has 3 properties in Ontario, including the Black Creek chromite deposit, but an exciting new story – whenever that comes – should give this a nice lift…
Bacanora Minerals Ltd. (BCN, TSX-V)
Bacanora Minerals (BCN, TSX-V), which just 2 years ago was trading below 20 cents, is having success with Lithium and Borate projects in Mexico, and is certainly worthy of our readers’ due diligence…a key technical level to watch is $1.80 where is both chart and Fib. resistance…BCN closed at $1.70 yesterday…
Western Lithium USA Corp. (WLC, TSX)
Western Lithium (WLC, TSX) closed an $8 million bought deal this week, priced at 70 cents and led by Dundee Securities…
There are good reasons to be bullish on Lithium, and WLC is developing its Kings Valley Lithium deposit in Nevada into potentially one of the world’s largest strategic, scalable and reliable sources of high quality lithium carbonate…
This 2-year weekly chart shows WLC in an ideal position, resting just slightly above an uptrend trend, Fib. support and and its still-rising 200-day SMA…
WLC is off 3 cents at 69 cents as of 8:30 am Pacific…
Note: John, Terry and Jon do not hold share positions in DVN, CZX, CXB, PRB, BCN or WLC.
With the summer doldrums upon the markets and pretty much complete silence from DBV or GGI , if there is not some agreement between the Jrs. in the Hat area and The Tahltan look for the stock prices to drif even lower. Over the last couple of months I had the idea that DBV was moving and assembling equipment and drilling , I was wrong in making that assumption as it appears not to much has been going on since the parties have been negotiating. For all parties involved including us shareholders , the sooner they get a deal the better.
Comment by Les — June 12, 2015 @ 1:04 pm
The stakes are high, Les, and we’re in for a dramatic summer at Sheslay. If Dr. Razique is correct in his analysis of the Hat corridor, simple math tells us this is a system that could easily contain 3 billion tonnes. Add to that, what could exist at the Grizzly, plus the Star, and the numbers are staggering. Possibility too of a stand alone gold system.
No summer doldrums at Sheslay. Mount Kaketsa is going to erupt.
Comment by Jon - BMR — June 12, 2015 @ 5:24 pm
Hopefully negotiations will not drag on all summer, it seems that no news will be issued as negotiated and no drilling from the 3 juniors!
Comment by Guy Delisle — June 12, 2015 @ 6:22 pm
Jon
Do you have any info when GGI will start drilling in the Shesley? They were supposedly going to start drilling last summer and that didn’t happen and here we are almost half way into June and still no news on when they are going to start drilling
Thanks
Comment by Greg — June 12, 2015 @ 8:05 pm
I stopped by the UK Building at Granville and Hastings this afternoon to visit our GGI and DBV friends, Greg. Rest well tonight – Farshad and Regoci were fired up today like I’ve never seen them. This is when leadership and certain skill sets are really put to the test. I really believe what’s going to unfold here will positively impact not only both companies, but the entire market.
Comment by Jon - BMR — June 12, 2015 @ 8:44 pm
Thanks for the update Jon.
What negotiations are they having? What is the reason for the delay with drilling?
Comment by Tom UK — June 12, 2015 @ 11:26 pm
Jon we are still waiting for your thoughts on GBB. You once loved it but have been silent on GBB for quite some time. Should we infer that you no longer own shares and are not recommending GBB?
Comment by Ted — June 13, 2015 @ 2:35 am
So that else did you learn from them Jon, you should have got plenty of important info?
Comment by Martin — June 13, 2015 @ 3:36 am
Thanks Ion
I hope it happens soon
Comment by Greg — June 13, 2015 @ 4:40 am
There’s much at stake here for all players, Greg. The natives must be dealt with respectively, of course, but the Tahltan have demonstrated through recent agreements including Red Chris that they appreciate how development brings jobs and important benefits for their people. They formed their own Economic Development Council and exploration services arm for a reason.
It is no coincidence, in terms of how the Hat and Grizzly are proceeding, that this controvery has erupted now. We’re at hole 23 at the Hat, rumors of a very keen major, and Grizzly Central or Grizzly West is about to be drilled for the first time (we know what the district hit ratio is).
I predict 3 things: 1) Drilling will proceed at the Hat, Grizzly and even the Hackett; 2) New discoveries will be made this summer; 3) This has all the makings of a national story.
Summer “doldrums”? Just the opposite is about to happen here, and that’s going to be great for these companies and will help the market in general. The Sheslay district is going to stand out in a very big way, and a huge new stamp of value has been placed on the area by the Tahltan. We’re talking about BILLIONS of tonnes of potential resources in the ground. There’s only one sensible way for Doubleview and Garibaldi to proceed IMHO.
Comment by Jon - BMR — June 13, 2015 @ 5:57 am
Jon – Great incite as to the Sheslay district and the potential size of its deposit . The results from the 23 holes show the mineralization is there and it needs to be proven with more hole before any major steps into the picture . It appears the agreement with the Economic Development Council must be ratified before any more drilling will take place , I just hope these negotiations don’t bog down and drag on as many others in Canada have .
Comment by Les — June 13, 2015 @ 7:22 am
Jon, if Regoci and Farshad were as fired up as you say they were, then maybe a deal is done with the Tahltan? Summer is already upon us and if there is any delay in reaching an agreement, the summer will be lost and we will have to wait until next summer to drill.
Comment by Dan — June 13, 2015 @ 10:09 am
Dan, you’re right that there’s a sense of urgency in getting the drills turning, for several reasons. Now is the only option here the way the companies are looking at it – they do have a path forward. And I’m confident they’ll make it happen quickly. Far too much is at stake here.
Comment by Jon - BMR — June 13, 2015 @ 10:50 am
With these guys ;fired up’ we also need to remember that they know who Jon is and dont want any negativity associated with the story .. lest we forget BLO and the stupidity of the C-Levels there… remember that everything is a story until proven otherwise… submitted respectfully
Comment by Jeremy — June 13, 2015 @ 11:31 am
Hi Jon, What did you think of Walker Rivers (WRR) recent news of getting things ready at Lapon Canyon? Visible Gold showings. With roads and drill pads ready do you think it will be long before drill turn there? What is your opinion of the management team?
Comment by Ed — June 13, 2015 @ 11:35 am
Could GGI reach a agreement with a major without having drilled a single hole? I don’t ses how Regoci could be so fired up else than a game changer at roradero. 43-101 is just not realease yet!?
Comment by Martin — June 13, 2015 @ 12:43 pm
My opinion is they need help to fast track the grizzly? 286 squares km vs one million budjet. But i might not be right we are missing info i guess?
Comment by Martin — June 13, 2015 @ 12:47 pm
Martin, you’re right – very large property, not easy to nail down precisely where to start drlling – but that’s what this last 2 years has been about for GGI. We know they were the first in the district on the ground this year, back in February. They should have it figured out now on the target area.
This is my guess based on the research we’ve done on the district and the opinions of numerous geologists/geophysicists – as interesting as Grizzly West is, a prominent, large anomalous feature at low-lying Grizzly Central is what GGI will go after with the drill. That’s where the third district discovery is most likely buried. and it could be very rich if it’s a source area. The Hat, growing impressively, and Grizzly Central make this the mining camp that’s at the heart of the dynamics – money, power and politics – that have suddenly erupted.
Comment by Jon - BMR — June 13, 2015 @ 1:20 pm
JON YOU SEEM TO AVOID THE GBB WORD?! LOST INTEREST?! Have a good weekend. Cheers…
Comment by Arjan — June 13, 2015 @ 11:53 pm
Waiting for the CA, Arjan….we are working on something that we’ll be posting likely in the coming days, but only 2 things can move GBB at the moment – the CA, or a takeover…can’t dismiss the possibility of a takeover, especially given what we’ve seen in the overall market recently on the M&A front in this sector…the resource numbers at Granada are looking good and it appears they will enhance the economic model with a lower strip ratio which is positive…still tremendous upside on the exploration front…other posters in this forum have commented on this the last couple of months—when the CEO is sounding frustrated and negative, yes, that’s when investors can quickly start to lose interest…Frank’s GBB forum has become a negative feedback loop, it’s part of the problem, not the solution…the suggestion in a recent NR of the possibility of a rollback did not help…the Castle spin-off has been a distraction, I was nervous about that from the start as soon as it was announced in March…there are certain advantages to that idea, but it has taken time away from focusing on the key asset – Granada…and stripping an asset out of GBB can’t help the GBB share price…think about it…
With regard to the CA, GBB stated July 14, 2014, “Gold Bullion also announces the certificate of authorization request was formally submitted to the appropriate Quebec authorities on June 20, 2014. It is anticipated the certificate will be awarded by mid to late September, 2014.” That was an unfortunate statement to make…I believe there must have been some confusion around this because CA’s aren’t awarded in 3 months…the first response from Quebec authorities to the CA may come within 90 days, but not the actual permit…unfortunately, the bureaucracy in Quebec is very difficult to deal with, so I sympathize with GBB on that point…
We had hope that the CA might come by the end of Q1, especially after IAMGOLD received its amended CA in January, but even that proved optimistic…the length of this process, challenging overall market conditions and massive amounts of FT paper have taken their toll on GBB…but things can change…
Comment by Jon - BMR — June 14, 2015 @ 6:13 am
If GBB manage to get the 3% NSR attached to the shares, will this help the SP? If it does, then maybe a rollback will be done before the next financing.
Comment by Tom UK — June 14, 2015 @ 7:40 am
Hard to say, Tom. What’s frustrating is that GBB has a valuable asset (Granada) by all measurements that is significantly undervalued. They really need the CA because without that, the value that’s there in the ground and could be reflected in the market means nothing. The market is interested in one thing only and that’s the CA. Any other news, other than a merger/takeout, is irrelevant. Having said that, there’s no reason why Quebec authorities should not grant the CA. But the bureaucracy is under-staffed (numbers-wise and skill-wise), and keep in mind it was also hijacked by environmentalists during the reign of the PQ.
Comment by Jon - BMR — June 14, 2015 @ 8:26 am
Frank has commented on the GBB forum that ”communication tone and frequency have picked up recently”. I wonder if the litigation by Strateco has anything to do with it. Exert from news article:
The Quebec government’s refusal to grant the certificate of authorization needed to proceed with the Matoush project has placed Strateco in a situation where it has become impossible to interest investors in the Matoush project. Strateco is currently unable to meet its financial commitments in spite of the fact that it has implemented measures aimed at reducing costs.
Strateco’s principal asset is its litigious claim against the Government of Quebec, in which Strateco seeks up to $190 million in damages to offset the loss of its investment in the Matoush project. Strateco intends to seek, within the framework of the CCAA, the approval of an interim financing which would allow it to continue the prosecution of these proceedings for the benefit of all stakeholders, including its creditors and shareholders.
Comment by Tom UK — June 14, 2015 @ 8:34 am
Yes, good post, Tom, the mining bureaucracy in Quebec needs a shake-up and a wake-up call – a company winning a massive lawsuit against the Quebec govt. would be fantastic…the bureaucracy there got infiltrated by radical environmentalists during the PQ period (with the Liberals now in power, things are slowly improving)…same thing happened up in the Yukon…Alberta is probably next (disaster is unfolding there) to the benefit of B.C. and Saskatchewan.
Comment by Jon - BMR — June 14, 2015 @ 8:41 am
Hello Jon,
Thank you for your answer. Heard from GBB as well that the tone and frequency has picked up with the government. Seems that their consultant who before worked at the government is welcome again. Could Franks letter to the Minister of environmental have established this? Or maybe a little help from IAMGold who has jobs on stake at Westwood? Maybe a possitive surprise ahead in the comming weeks/months? Fingers crossed. Have a good evening.
Cheers,
Arjan
Comment by Arjan — June 14, 2015 @ 10:50 am
Jon, did Steve say anything about Mexico? Will we be getting news on how production is going with La Patilla’s feed of ”ore” to the mine?
Comment by Tom UK — June 14, 2015 @ 10:55 am
One of the 3 companies pgx,ggi,dbv will do a deal with large company with cash of around 700 million dollars
Dbv is very close to signing mou in which could be any day now
Comment by anon — June 14, 2015 @ 1:14 pm
Tom, I emphasized to him that investors are anxious to hear about Mexico, along with a Grizzly update of course, and he acknowledged that. They’re very busy on both fronts, and my guess is we’ll hear something very soon. I don’t think there’s any doubt that during this last half of June, perhaps even within the next several trading days, all the flow-thru selling will have completely exhausted itself. Then the move back up begins – with news I’m assuming.
Comment by Jon - BMR — June 14, 2015 @ 1:33 pm