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March 8, 2017

BMR Morning Market Musings…

Gold has traded between $1,219 and $1,206 so far today…as of 11:00 am Pacific, the yellow metal is down $7 an ounce at $1,209…Silver has fallen 21 cents to $17.27…Copper is off slightly at $2.60…Nickel has retreated 21 cents to $4.60…Crude Oil has tumbled $2.21 a barrel to $50.93 while the U.S. Dollar Index has rallied nearly two-thirds of a point to 101.53

After this morning’s robust private payrolls report (ADP), it’s safe to assume that Friday’s government report will also show strong jobs growth in February and that means Ma Yellen and the Fed have every reason to pull the trigger on a rate hike next Wednesday, only the 3rd in the last decade or so…

Gold will attempt to hang on to strong support around $1,200 going into the Fed meeting…any dip below $1,200 over the near-term could be very limited and brief with bullion reasserting itself by month-end…

Canada’s former minister of foreign affairs, John Baird, told Kitco News at PDAC that the U.S. is going to become a lot more competitive as a mining jurisdiction under the Trump administration, and Canada therefore has to get its act together.  “For Canadian companies that extract here, we’re going to have to seek competitive advantage by getting our government to try to ensure our regulatory environment here is better than it is today,” he told Daniela Cambone…

The S&P 500 just posted its 100th consecutive trading day without a decline of 1% or more, its longest such streak since 1994, according to Paul Hickey of Bespoke Investment Group who tracks these quirky things…

Oil Update

Oil prices are off more than 4% today, hitting 7-week lows, after the U.S. Department of Energy reported a much larger increase than expected in domestic Crude inventories…that has some traders concerned that a supply glut could persist even as OPEC seeks to prop up prices with output curbs that are being adhered to…

U.S. Crude inventories rose by 8.2 million barrels in the last week, quadruple analysts’ expectations for an increase of 2 million barrels, as refineries cut output and imports rose…

In Today’s Morning Musings

1. Venture updated chart – what to watch for in this pullback…

2. Specific themes and opportunities to profit on…

3. Nighthawk Gold (NHK, TSX-V) update…

4. Daniel’s Den “Captain Obvious” on BNN scares the nervous nellies on this stock…

Click here to receive, via email, BMR’s “Who’s Who” List of the Greater Cobalt Camp – the top dozen or so companies active in the district.

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22 Comments

  1. Thanks for all the great information !! Any thoughts on v. csr. Volume has been extremely light. Cobalt appears to be stable.

    Comment by goldilo — March 8, 2017 @ 12:16 pm

  2. CSR is acting just as it should, just prior to the closing of a financing…the real fun should begin shortly thereafter IMHO…

    Comment by Jon - BMR — March 8, 2017 @ 12:28 pm

  3. now that pdac is over lets hope the venture will resume it upward tick

    Comment by bcguy — March 8, 2017 @ 1:16 pm

  4. Daniel
    I sat in a conference a few years back in San Francisco and Brent Cook was the speaker and this was right about the time GoldQuest was making their Discovery at Romero and I’ll never forget Brent Cook saying that it would never amount to anything he did not like the project at all , who just invested millions in GQC ? Agnico I believe…
    I think way too many investors put way too much faith in guys like him and Coffin
    Their egos are way out of whack in my opinion…

    Comment by GREGH — March 8, 2017 @ 2:44 pm

  5. GGI – If they are looking for a window to conduct the VTEM survey, then the next 3 days are ideal. -17 and sunny in the Lava Forks Park area which is fairly close to E&L property.

    Comment by Dan1 — March 8, 2017 @ 2:56 pm

  6. Not quite that easy, Dan1. Local conditions are extremely variable, but we’ll see.

    Comment by Jon - BMR — March 8, 2017 @ 3:34 pm

  7. Gregh – I agree with your statement but unfortunately their opinions sway investors and sometimes good projects lose their value because of it. It can also work in our favour as well. We can pick up shares at lower prices and sometimes it pays off.

    Comment by Dan1 — March 8, 2017 @ 3:52 pm

  8. Completely agree, Greg..

    Comment by GregJ. — March 8, 2017 @ 4:03 pm

  9. Hi guys,
    Where does one find uranium spot prices? You quoted around $26 a pound? I can only find quotes for $22 to $23.

    Comment by John — March 8, 2017 @ 6:03 pm

  10. Daniel
    you are correct it can work in our favor, however it is very frustrating when they make negative comments and they have not even done any real DD on the area or the property and the share holders that already own it and sometimes at higher prices suffer as too many investors take their word as the gospel…. anyway keep up the good work…

    Comment by GREGH — March 8, 2017 @ 6:30 pm

  11. John, check out this:
    https://www.uxc.com/Default.aspx

    and this is from Kitco…
    Uranium Mar 07, 2017
    Ux U308 price: 26.18
    Change from
    previous week +0.50

    Comment by Jon - BMR — March 8, 2017 @ 7:25 pm

  12. GREGH – I agree with you. the big letter writers often get it wrong. I find that they are stereotyped into certain situations. The ceo board is influenced by them but this is ok. All it takes is for one news release to change ones thinking. I bet if one of them were paid to make coverage it would be done. The beauty is when they discover that they might have been wrong and pile in. It’s a domino affect at that point. And where do you think the share price can go with no warrants or options in its way. It is frustrating now, but things change.

    Comment by dave — March 8, 2017 @ 7:50 pm

  13. Thx Jon. Bookmarked it.

    Comment by John — March 8, 2017 @ 10:38 pm

  14. Cxo selling is unreal, someone is tanking her purposely Soon it will move back to the 30s and beyond. Great buy at the levels!

    Comment by Greg — March 9, 2017 @ 6:26 am

  15. sjl halted again

    Comment by bcguy — March 9, 2017 @ 6:28 am

  16. Yes, no worries about CXO, Greg…just stupidity, quite frankly, on the part of some traders to be selling at these levels at this particular time…it’ll march right back up…

    Comment by Jon - BMR — March 9, 2017 @ 6:42 am

  17. The Venture showing a reversal and now just ‘green’!

    Comment by STEVEN1 — March 9, 2017 @ 6:50 am

  18. GTT – has the cash ($2MM) , has an amazing website and super presentation, Greig loves targets (he worked up the Griz targets for GGI), shr structure similar to GGI, reported their field sampling from summer/fall 2016 w samples running from 6 to 72gpt and has already committed to 98 holes of drilling this summer. The management team has done 2 years of work to get here and they are well regarded. Attendance at their booth was good. they will move .

    Comment by david — March 9, 2017 @ 7:00 am

  19. I wouldn’t blame regoci one bit if he doesn’t release anything till next week,to volatile at this point,heart of gold camp will bounce back shortly.

    Comment by Laddy — March 9, 2017 @ 7:00 am

  20. CXO oversubscribed per the talk at their booth .

    Comment by david — March 9, 2017 @ 7:02 am

  21. He seems to like Fridays, Laddy…wouldn’t be surprised to see something before the weekend.

    Comment by Jon - BMR — March 9, 2017 @ 7:10 am

  22. with non farm in the morning, we will see some big swings,but I’m sure everyone here would love to be pleasantly surprised,me included..

    Comment by Laddy — March 9, 2017 @ 7:24 am

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