Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has traded between $1,230 and $1,236 to begin the new week…as of 7:00 am Pacific, bullion is down $3 an ounce at $1,231 while Silver has slipped 14 cents to $17.81…Fed Chair Janet Yellen said Friday that the Federal Reserve was set to lift benchmark U.S. interest rates provided jobs and inflation data held up, comments seen as cementing plans for a hike at next week’s meeting…respected INTL FCStone analyst Edward Meir observed, “The U.S. labor market is tight, inflation is picking up…investment is revving up, consumer confidence readings are increasing and both housing and equity valuations are moving higher. All this should be enough to persuade the Fed to make a move should it want to get at least 1 of its 3 advertised rate hikes out of the way for this year.”
2. Physical Gold holdings in exchange-traded funds have fallen since last week, partly due to the stronger dollar, but at 54.855 million ounces they are still more than 3% higher than at the start of February…Gold has built very strong technical support in a band between $1,215 and $1,195, and is expected to benefit from the uncertainty of upcoming European elections…
3. The Venture is up 1 point at 819 as of 7:00 am Pacific while the TSX and Dow are both down modestly in early trading…the Venture is coming off its worst week of the year, a loss of 18 points or 2.1%, as PDAC begins in Toronto, though the Index rebounded from an intra-day low of 806 Friday…very strong Venture support ranges from 800 to 770…
4. Tinka Resources (TK, TSX-V) has cut high-grade Zinc in the first hole of its 10,000-m drill program at its Ayawilca Project in Peru…what’s particularly impressive is that drill hole A17–56 is located approximately 400 m south of the existing Zinc Inferred resource, and over 250 m from any previous drill hole at the property…partial results (to 238 m depth only) are highlighted by 62.4 m grading 5.6% from 127.5 to 189.9 m including an interval of 17.9 m grading 11.6% Zn…mineralization in the hole is associated with massive to semi-massive sulphide replacements of carbonate and clastic sediments which also host the known mineralization elsewhere…A17–56 will continue to the base of the favourable limestone unit with further high-grade Zinc intersections expected…Tinka is mobilizing a 2nd drill rig to the site immediately…TK is up 7.5 cents at 40.5 cents as of 7:00 am Pacific…
5. Probe Metals (PRB, TSX-V) has drilled into the highest grades ever found at its 100%-owned Val d’Or East Project…a new high-grade zone hosted in diorite dyke 300 m west of the former Beliveau mine was intersected in drill hole PC-16–100 which returned 1,122 g/t Au uncut over 0.7 m and 25.5 g/t Au over 0.8 m, forming part of a larger interval of vein mineralization averaging 92.7 g/t Au over 8.7 m at a depth between 272.3 m and 281 m…the new zone represents a further expansion of the New Beliveau deposit to the west, with mineralization remaining open in all directions…results released this morning were from the remaining holes of the 2016 campaign…4 drill rigs are currently in operation as the 2017 drill program of 50,000 m that was announced in January is underway…PRB is up 3 pennies at $1.48 through the first 30 minutes of trading…
6. GoldQuest Mining (GQC, TSX-V) has landed a big fish…the company announced this morning that Agnico Eagle Mines (AEM, TSX) has agreed to acquire, through a non-brokered private placement, 38.1 million common shares of GQC at a price of 60 cents per share for a total investment of $22.9 million (CDN)…upon closing of the financing, Agnico will own approximately 15% of GoldQuest’s issued and outstanding shares…GQC is up 9 cents at 56 cents as of 7:00 am Pacific…
7. Anfield Resources (ARY, TSX-V) has closed an over-subscribed private placement, raising $2.9 million through the issuance of 29 million units at 10 cents per unit…Corey Dias, Anfield’s CEO, stated, “With these funds, Anfield will both advance its current projects and pursue acquisition opportunities as we remain extremely optimistic with regard to the Uranium market and its future prospects. It is important to note that the 447 commercial nuclear reactors now operating in 31 countries across the world currently meet 11% of global electricity demand; however, with 59 reactors currently under construction and a planned and proposed reactor pipeline totalling more than 500, it is clear that nuclear power will remain an integral part of the global energy mix.”
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Red Pine Exploration update, very good intersections that are shallow.
Red Pine drills 3.14 m of 57.31 g/t Au south of Surluga
2017-03-03 06:38 ET – News Release
Mr. Quentin Yarie reports
RED PINE EXPLORATION DISCOVERS HIGH-GRADE GOLD 3 KM SOUTH OF THE SURLUGA DEPOSIT; DRILLS 57.31 G/T GOLD OVER 3.14 METRES
Red Pine Exploration Inc. has received partial results for holes DG-17-53 to DG-17-56.
Highlights from the drilling results include:
Intersection of two high-grade zones related to the Darwin-Grace mine;
Central high-grade zone contains 29.27 grams per tonne gold over 3.4 metres in DG-17-54;
Northern high-grade zone contains 42.22 g/t gold over 2.44 metres in DG-17-55 and 57.31 g/t gold over 3.14 metres in DG-17-56;
Drilling suggests that the mine is part of a much larger deformation system than what was indicated by historic work.
Quentin Yarie, president and chief executive officer of Red Pine, stated: “We are quite excited by the results of this initial exploration work in the Darwin-Grace mine area. This early drilling indicates that high-grade material remains in the vicinity of the mine and that the structure hosting the mine may be larger and more fertile than initially anticipated.”
Drilling results
The Darwin-Grace mine area is located three kilometres south of the centre of the Surluga deposit inferred resource (1). Red Pine hole DG-17-54 was designed to test the shallow extension of the central high-grade zone of the Darwin-Grace mine. Holes DG-17-55 and DG-17-56 tested the extension of the northernmost and underexplored high-grade zone discovered in the Darwin-Grace mine drifts shortly before its closure in the 1930s. Drilling results prove the near-surface extension of both high-grade zone. Hole DG-17-55 and DG-17-56 also indicate a down-plunge continuity of 22 metres. The geological measurements obtained from the drilling program also provided the geometrical attributes of the intersected high-grade zones for potential extension at depth.
Red Pine drilling in the area suggests that the deformation zone hosting the mineralized quartz veins is wider than anticipated. The zone of brittle-ductile deformation associated with the mineralized veins extends over 10-to-20-metre-long intersections downhole. Tectonic deformation in the Darwin-Grace mine area is also not restricted to the immediate vicinity of the main mineralized veins. Red Pine geoscientists observed stacked deformation zones that are 10 to 15 metres long and alternate with weakly deformed domains. This suggests a larger exploration potential into the deformation zones related to the Darwin-Grace mine.
HIGHLIGHTS OF DRILLING RESULTS
Hole From To Length* Gold
No. (m) (m) (m) (g/t)
DG-17-54 46.88 50.28 3.40 29.27
DG-17-55 51.75 54.19 2.44 42.22
DG-17-56 62.86 66 3.14 57.31
67.78 70 2.22 3.56
* Assay results reported over intersection length
estimated in the Grace deformation zone to represent
greater-than-70-per-cent true width.
Continuing drilling program
The continuing diamond drill program is focused on expanding the Surluga deposit, defining the gold structures of the Wawa gold corridor and quantifying the structures associated with the historic mines of the property.
Readers are cautioned that grab samples are selective by nature and are not necessarily representative of the mineralization hosted on the property.
On-site quality assurance/quality control (QA/QC) measures
Drill core samples were transported in security-sealed bags for analyses to SGS in Cochrane, Ont. Individual samples are labelled, placed in plastic sample bags and sealed. Groups of samples are then placed into durable rice bags and then shipped. The remaining coarse reject portions of the samples remain in storage if further work or verification is needed.
Red Pine has implemented a quality control program to comply with best practices in the sampling and analysis of drill core. As part of its QA/QC program, Red Pine inserts external gold standards (low to high grade) and blanks every 20 samples in addition to random standards, blanks and duplicates.
Qualified person
Quentin Yarie, PGeo, is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
About Red Pine Exploration Inc.
Red Pine has a 60-per-cent interest in the Wawa gold project with Citabar LLP holding the remaining 40-per-cent interest. Red Pine is the operating manager of the project and is focused on expanding the existing gold resource on the property.
(1) National Instrument 43-101 inferred resource of 1,088,000 ounces of gold at 1.71 g/t using a 0.40 g/t gold cut-off grade for pit-constrained and 2.50 g/t gold cut-off grade for underground-constrained resources, contained in 19.82 million tonnes open along strike and at depth. The cut-off grades are based on a gold price of $1,250 (U.S.) per ounce and a gold recovery of 95 per cent (mineral resource statement, Surluga-Jubilee gold deposit, Wawa gold project, Ontario, SRK Consulting (Canada) Inc. (effective May 26, 2015)).
We seek Safe Harbor.
Comment by Vepper — March 6, 2017 @ 8:02 am
What’s your opinion about XMG’s announcement today and the technology at all?
Comment by maikenders — March 6, 2017 @ 9:00 am
Granada Gold Mine Inc halted. On a monsay and PDAC as well ongoing. Good news on the way?! Frank comments last week sounded very positive…
Comment by Arjan — March 6, 2017 @ 9:30 am
CSR – Looking to make a move here, watch it
Comment by dave — March 6, 2017 @ 10:16 am