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1. Gold has traded between $1,244 and $1,252 so far today…as of 7:00 am Pacific, bullion is down $6 an ounce at $1,247 while Silver is off slightly at $18.15…an alarming but not surprising report just out from the Congressional Budget Office (CBO) which should comfort Gold bugs…U.S. federal government debt and budget deficits are both set to spiral higher in the coming 3 decades if current patterns hold…due largely to increases in Medicare and Social Security, federal debt will reach 150% of GDP in 2047, the CBO report says…the total current debt held by the public of $14.3 trillion is 77% of GDP…meanwhile, the CBO says the federal budget deficit will more than triple in relation to GDP from the projected 2.9% of GDP in 2017 to 9.8% in 2047…the deficit at the end of fiscal year 2016 stood at $587 billion and it’s hard to see how that will not increase in 2017, perhaps helping to fuel Gold prices…higher interest rates will only make the budget problems worse…
2. U.S. economic growth slowed less than previously reported in the 4th quarter amid robust consumer spending…GDP increased at a 2.1% annualized rate instead of the previously reported 1.9% pace, according to the Commerce Department’s 3rd estimate for the period released this morning…they also said that corporate profits after tax with inventory valuation and capital consumption adjustments decreased to an annual rate of 2.3% in Q4 vs. 6.7% in Q3…
3. The Dow is up 28 points through the first 30 minutes of trading…in Toronto, the TSX has shed 37 points, despite modestly higher Oil prices, while the Venture is flat at 812 after a nice move off its morning low yesterday…Alphinat (NPA, TSX-V), yesterday’s big gainer (>80%) on volume of more than 3 million shares, is off a penny at 14.5 cents…the company is gaining traction with its SmartGuide software system after announcing that a U.S. state and a Canadian province have selected SmartGuide in their efforts to modernize their digital government service delivery to constituents…PyroGenesis Canada (PYR, TSX-V) gapped up this morning and is currently 8.5 cents higher at 47 cents, near a 2-year high, after announcing that it has completed the assembly of its first powder production system, with the first powder run exceeding expectations and ramp-up already in progress…the company’s goal is to become a leading supplier of high purity powders catering to the growing Additive manufacturing industry…in addition, PyroGenesis also expects to be able to produce other materials such as Titanium alloys and Nickel based superalloys…
4. Granada Gold Mine (GGM, TSX-V) experienced one of its highest volume sessions (3.2 million shares) in the last few years yesterday on news that the company is making quick progress with DRA Americas Inc., a subsidiary of DRA Global, a leading international and vertically integrated engineering firm, toward a plan to put the Granada Gold mine in northwest Quebec into production on a ramped up scale that would incorporate a planned 12,000 tonne-per-day state-of-the-art pre-concentration ore sorting facility…meanwhile, GGM says it’ll soon be releasing an updated resource estimate for the Granada LONG Bars Zone (early in Q2) – the first update in nearly 5 years and it could show a major increase given recent discoveries, including through drilling this quarter, outside the existing resource…technically, GGM’s 50-day EMA is reversing to the upside which has immediately preceded other major advances in the stock since late 2015…GGM is unchanged at 7 cents as of 7:00 am Pacific…
5. Richmont Mines (RIC, TSX) has pulled a stellar hole – exploratory drilling has identified new high-grade mineralization approximately 800 m east of the main Island Gold mine deposit with GD-640–05 intersecting 20.6 g/t Au over 11.3 m (true width) at a vertical depth of 1,000 m…this new zone is the down plunge extension of a high-grade trend that was initially discovered last year…drilling at Island continues and is focused on 3 key priorities: 1) expanding near-mine resources outside the Expansion Case PEA area, both laterally and at depth; 2) further expanding the reserve base, primarily within the Expansion Case PEA area; and 3) continuing to test high priority regional Gold targets across the prospective Island Gold Mine property…
6. Enforcer Gold (VEIN, TSX-V), which has commenced a high-resolution aeromagnetic survey over the entire Montalembert Gold Project, released metallic sieve assay results this morning from last fall’s channel sampling campaign on the Galena vein and vein No. 2….this assay method generally returned higher grade results than the ones released in January including 1 sample that went from 5.6 g/t Au (fire assay) to 108.2 g/t Au (metallic sieve assaying is able to overcome the “nugget effect” of Gold by increasing the sub-sample size to 1,000 g and physically collecting the free Gold within the system using a 100-mesh sieve)…VEIN is unchanged at 26 cents through the first 30 minutes of trading as it attempts a breakout above resistance (the top of a horizontal channel) at 25 cents…
7. Shandong Gold Group Co., China’s No. 2 producer by output, says it has discovered what could be China’s largest ever Gold deposit…the Xiling mine in Shandong province hosts 382 tons of Gold reserves, with an average grade of 4.5 g/t, and the volume is expected to reach more than 550 tons within the next 2 years through further exploration…the deposit is apparently more than 2,000 m long and part of it has a thickness of 67 m…operating at full capacity, the mine would have a life of 40 years…Chinese Gold companies have been stepping up their search for domestic deposits and eyeing acquisitions as the nation seeks to increase reserves by 3,000 tons to as much as 14,000 tons by 2020, the Ministry of Information Technology said last month…
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ABN – one of the first companies to announce their plans for the Triangle property, Forrest Kerr. drill permit is in , and expected back in May and the teams to be all contracted in April. The lack of snow this year means they can start in early June on the ground.
Comment by david — March 30, 2017 @ 8:57 am
Jon, in your outline of GGM positives, you haven’t mentioned the more than 380 million shares outstanding. That’s surely a lot of loose paper to be sopped up before any big move upward. Do you not think that the weight of all these shares will hold the share price down?
Comment by dermo63 — March 30, 2017 @ 10:15 am
GGM processing plant – Hi Jon, you should let Frank Basa at Granada Gold (GGM & CSR) know about Cobalt Tech’s (CSK) fully permitted mill they just acquired. It’s right between Gowganda and Temagami near Cobalt Ontario. You have stated it needs work but it has only been closed down for a few years. They could partner and realize inefficiencies and both save money.
Comment by Vepper — March 30, 2017 @ 11:41 am
demo63… when I looked at the shares outstanding for GGM and the warrants outstanding for GGM I decided not to buy. It may go up but there will be a ton of people selling on any rise in my opinion. Share structure is the 1st thing I look at. I would expect a share consolidation at some point. Plus we are going into the time of season when the venture historically doesn’t do as well.
Comment by Danny — March 30, 2017 @ 4:50 pm
Dermot and Danny, you’ll notice that what I’m focused on is the market cap for GGM, currently $25 million, which values what we estimate to be the upcoming updated resource at only about $6 per ounce. I want to stress, emphatically, that that’s a ridiculously undervalued number by any standard in this industry and investors who understand this are positioned to make a very handsome profit over the next month or so. If a company has the project to support it, which GGM does in this case, 300 or 400 million shares outstanding doesn’t matter. Down the Golden Highway a little bit, Integra now has nearly half a billion shares outstanding but everyone’s buying it including the analysts (I see a better deal with GGM at the moment). Is the LONG Bars Zone resource undervalued at GGM’s current $25 million market cap? – without question it is. When you consider that, when you consider the DRA situation and what they’re proposing, when you consider the mining permit, when you consider that stock supply at these levels (a critical issue when you evaluate share structure) will soon dwindle drastically thanks to Secutor, when you consider the technicals because the chart is looking fantastic, you have the perfect recipe for a near-term double or better here (first half of Q2). You can take it or leave it, but the ones who take it now will be richer in a month at tax time.
I had this exact same discussion on shares outstanding with certain subscribers in early 2016 re: GGM (GBB) when it was trading at 5-6 cents and we suddenly gave a strong BUY recommendation. I said the same thing then—forget about the shares outstanding, you have to look at the market cap and the project. The stock tripled in 2 months, that was the opportunity some people missed out on because they were focused on only 1 thing (shares outstanding) and nothing else! Now it’s back at that level where you can make a lot of money, very quickly. Learn from the lesson of early 2016. Now, the dynamics are actually even better with DRA and the coming resource update. Also, one advantage of GGM’s share structure is liquidity, and I’m anticipating a LOT of liquidity in the month of April. That’s going to attract new investors. The action has already started. It’s only going to heat up. Great trading action today.
Funny…on the issue of shares outstanding, there were readers here who didn’t like GBB’s share structure and 80 million or so outstanding in late 2009 and wouldn’t buy the stock then at 6 or 7 cents! It went to 92 cents! You’ve got to open your eyes and look at the entire picture, folks.
Comment by Jon - BMR — March 30, 2017 @ 4:51 pm
From the GGM Forum Mar. 9th…regarding local custom-milling capacity.
– even if we did get one or more commercial milling agreements no one mill or combination of mills can mill our ore now. The capacity is just not there.
Frank
Comment by bob — March 30, 2017 @ 4:55 pm
A good point, Bob. The options that DRA are laying out are far superior to custom milling for GGM. Their own mill is the solution, along with the 12,000 tonne-per-day pre-concentration facility that investors still need to be educated about – it is a major game changer (higher grades and higher production levels).
Comment by Jon - BMR — March 30, 2017 @ 6:32 pm
Subscribers – be sure to check emails later tonight (within the hour) as an important alert is going out re: Cobalt.
Comment by Jon - BMR — March 30, 2017 @ 6:34 pm
Tinka Resources Ltd. has been halted at 6:15 a.m. PT on March 31, 2017, at the company’s request, pending news.
Comment by Jon - BMR — March 31, 2017 @ 6:20 am