Gold has traded between $1,244 and $1,254 so far today…as of 10:45 am Pacific, the yellow metal is up $3 an ounce at $1,252…Silver is off 5 cents at $18.17…Copper has retreated 4 cents to $2.60 while Nickel has shed a dime to $4.41…Crude Oil has backed off 25 cents to $50.35 a barrel while the U.S. Dollar Index is flat at 100.53…
There’s plenty of room for growth on the bullish side of the Gold trade – Gold positioning on both the Comex market and for exchange-traded funds remains relatively “light”, according to Citi Research…the bank commented that money manager positioning of roughly 99,000 lots for futures and options combined is still roughly 60% below the average net-long position from the 3rd quarter…Gold ETF holdings, meanwhile, have climbed some 60 tonnes for the year to date but remain around 170 tonnes shy of the 2016 peak, Citi added…the only time to be fearful is when those statistics hit extremes…Gold’s major near-term technical challenge is to conquer its 200-day moving average (SMA) around $1,260 as the metal reacted at the 200-day in both February and March…
Silver Shines In Q1
Silver enjoyed a solid 1st quarter and quite often it does lead Gold to the upside…Silver jumped 14.2% in Q1, outpacing the gains in Gold (8.6%) and Copper (5.9%)…
Meanwhile, the Gold/Silver ratio is currently near 69 vs. the historical average near 60 which is calculated from the start of the precious metals bull market in 2001…
Gold Seasonality Chart
Going back 2 decades, no month has had a better winning percentage for Gold (68%) than April (a total reversal from March)…given a subdued U.S. dollar and a myriad of geopolitical concerns such as North Korea, Iran and upcoming European elections, combined with U.S. deficit and debt issues expected to grab more attention later this month in Congress, Gold has a strong chance of pushing through resistance in the $1,260’s over the next several weeks – especially when one considers the metal’s historical performance in April…
In Today’s Morning Musings…
1. Tinka Resources (TK, TSX-V) drills into rich mineralization south of resource at Ayawilca Zinc Project…
2. Road map for the Venture bull market…
3. Daniel’s Den – “The biggest Gold mining rush in history, bar none”…
Click here to receive, via email, BMR’s top picks in the northern Ontario Cobalt Camp…
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Excellent call on Tinka Jon! The stock has increased +300% since you started recommending it!!
Comment by Daniel — April 3, 2017 @ 11:26 am
Jon, will you guys be visiting the cobalt camp this week?
Comment by Dan1 — April 3, 2017 @ 4:16 pm
Getting ready, Dan1…will update everyone as soon as we finalize more details.
Comment by Jon - BMR — April 4, 2017 @ 4:27 am
Jon
when is the heart of gold camp special going to be available, still says coming soon?
thanks
Comment by greg — April 4, 2017 @ 5:24 am
Jon: Do I see Gold breaking out ‘upwards’??? 1260$$
Comment by STEVEN1 — April 4, 2017 @ 5:36 am
Yes, we’re continuing to work on it with our new web team, Greg. Soon…but I’ll have a better idea of exact timing later this week.
Comment by Jon - BMR — April 4, 2017 @ 6:29 am
I do, Steven, but the precise timing is the question…just based on Gold’s historical performance in April, which I’m surprised no one has pointed out but us, I’m of the opinion we’ll see that key breakout sometime this month. The fact it is such obvious resistance, and was a wall in both February and March, will make the breakout that much more important when it actually occurs.
Another thing to keep in mind, Steven, the Venture is a leading indicator so watch for a breakout above the 817-824 band. When that occurs, Gold won’t be far behind.
Glad I added some CSR yesterday. That chart is amazing and why has an Australian company been staking around the Castle?
Comment by Jon - BMR — April 4, 2017 @ 6:32 am
Serengeti Announces Positive PEA Results: 21% IRR Pre-tax for Kwanika Copper-Gold Project
Mon Apr 03 16:30:32 2017 EDT
VANCOUVER, BRITISH COLUMBIA, Apr 03, 2017 (Marketwired via COMTEX News Network) —
VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 3, 2017) – Serengeti Resources
Inc. (TSX VENTURE:SIR)(FRANKFURT:34S) announces the completion of an independent
NI 43-101 compliant Preliminary Economic Assessment (“PEA”) for its 95% owned Kwanika
copper-gold porphyry project located in the Quesnel Trough of North-Central British
Columbia, Canada. The results of the PEA demonstrate the potential technical and
economic viability of establishing a new copper-gold mine and mill complex on the
property.
PEA Highlights: Pre-tax NPV7% of CDN $324 million, 21.1% IRR, 15 year mine life. Life of mine (LOM) metal production of 601 million pounds copper, 676,300
ounces gold, and 2.66 million ounces silver in concentrates. Annual metal production of 50.4 million pounds of copper, 70,100 ounces of
gold, and 181,100 ounces of silver in concentrates for the first eight years.
Initial capital cost of CDN $476 million plus LOM sustaining capital of $37
million for a 15,000 tpd (5.4 million tpa) mill and combined open pit, underground
mining operation.
Projected C1 (Direct cash cost of production per pound of copper net of gold,
silver credits) of US$0.70/lb/Cu for first eight years or US$1.20/lb LOM
“We are very pleased to have achieved this important milestone for the Kwanika
project,” commented David W. Moore, Serengeti President & CEO. “Kwanika represents
an opportunity to develop a midsize green field copper-gold project in an excellent
location and proven jurisdiction. Furthermore there remains excellent potential
to expand and upgrade the resources considered in this study, both in the Central
and South Zones. The results of this PEA have confirmed what the partnership believed
was the possibility for higher grade production from the Central Zone at Kwanika
and the resultant positive impact on project economics. Given the economic value
we have demonstrated in this PEA, we expect our partners Daewoo Minerals Canada
will elect to fund the next $7 million expenditure to earn an additional 30%
interest in the project and we look forward to working with them in advancing
the Kwanika project towards production,” stated Moore.
PEA BASE CASE ECONOMIC RESULTS
Parameter Unit Base Case
Capital Cost CDN$ M $476
Sustaining Capital LOM CDN$ M $37
Average Op Cost/tonne CDN$ $21.15
Pre-Tax Net Revenue CDN$ M $710.1
Pre-Tax NPV7% CDN$ M $324.4
Pre-Tax IRR and Payback 21.1% and 3.7 years
Post-Tax Net Revenue CDN$ M $475.1
Post-Tax NPV7% CDN$ M $191.2
Post-Tax IRR and Payback 16.6% and 4.0 years
Metal Price Cu US$/lb $2.90
Au US$/oz $1,270
Ag US$/oz $19.00
Exchange Rate US$/CDN$ 0.77
Comment by moemoney — April 4, 2017 @ 6:53 am
SIR
moving on positive pea
Comment by moemoney — April 4, 2017 @ 7:09 am
Yes, pretty decent numbers, moemoney, and another example of the prolific nature of the Quesnel Trough and B.C.’s rich metal endowment. “Given the economic value we have demonstrated in this PEA, we expect our partners, Daewoo Minerals Canada, will elect to fund the next $7-million expenditure to earn an additional 30-per-cent interest in the project, and we look forward to working with them in advancing the Kwanika project towards production.” – David Moore, Serengeti President and CEO.
Comment by Jon - BMR — April 4, 2017 @ 8:04 am