Check back later today for an evening edition of Daniel’s Den (BMR Morning Musings returns Friday as Jon is travelling on special assignment).
1. This is a special early edition of 7 @ 7:00 due to travel in preparation for some BMR special coverage…Gold, at a 2-week high with growing evidence of significant further upside potential through the balance of this quarter, has traded between $1,241 and $1,247 so far today as it continues to benefit from political distractions in Washington, concerns over North Korea and a U.S. dollar that continues to suffer technical deterioration…the Dollar Index has fallen to its lowest level since early November; increasingly, the trend in the greenback for the balance of the year is looking unfavorable and that’s bullish for commodities and the Venture…as of 3:00 am Pacific, bullion is up $9 an ounce at $1,246…the Fed is still expected to raise interest rates next month, though futures traders have cut the odds from 100% to about 75%…what will the Fed be able to do after June 14 is the question many traders are starting to ask and that’s one reason why the greenback has come under pressure…
2. The world’s two biggest Oil producers, Russia and Saudi Arabia, sent Crude prices higher yesterday with a rare joint statement that output cuts should be extended into March 2018…the Russia-Saudi message is the strongest signal yet that OPEC and a coalition of producers outside the cartel will continue their efforts to influence Oil prices by cutting supply, despite production increases in North America and elsewhere…OPEC’s 13 members and 11 non-OPEC producers agreed last year to cut almost 1.8 million barrels a day through June in hopes of bringing supply and demand back into balance…those efforts have been more challenging than expected but are yielding some results…WTI, trying to reclaim support above $48, is off slightly at $48.53 as of 3:00 am Pacific…
3. The Venture posted its 5th straight advance yesterday, closing at 808 and just 1 point below its monthly high which came on May 1…one notable mover yesterday was Barkerville Gold (BGM, TSX-V) which closed at a new 4+ year high of $1.26…markets will take the path of least resistance and the Venture’s superb support in the high 700’s appears more powerful than resistance around 850 as the bull market prepares for its next phase…futures are pointing toward a lower open on Wall Street this morning…
4. Nighthawk Gold (NHK, TSX-V) climbed 8 cents yesterday to close at a new 5-year high of $1.06, confirming a breakout above 97 cents Fib. resistance on a long-term monthly chart…Nighthawk started a 25,000-m drill program early last month at its 100%-owned Indin Lake Gold Property in the Northwest Territories which includes the Colomac Project and multiple other targets within a highly prospective regional package with obvious multi-million ounce potential…
5. Granada Gold (GGM, TSX-V) has revealed a maiden high-grade Inferred resource of 10.4 million tonnes grading 4.6 g/t Au (1.5 million ounces) at a cut-off grade of 1.5 g/t Au over 600 m of strike length in a new discovery area at depth immediately north of its previously outlined LONG Bars Zone near-surface deposit at the Granada Gold Property near Rouyn-Noranda, Quebec…only a fraction of the total area of 1.8 km x 2.1 km north of the Measured and Indicated LONG Bars Zone has been drill-tested, and GGM will be targeting additional tonnage and even higher grades in this under-explored part of the property…meanwhile, the company’s updated Block Model reveals 4.98 million ounces at Granada (1.53 million M&I, 3.45 million Inferred) in areas drilled to date, nearly double the amount estimated in the initial 2012 Block Model, a figure that along with the new high-grade underground resource will draw the attention of several companies that could be looking at Granada…DRA Global, one of the world’s leading vertically integrated engineering firms, continues to examine innovative solutions to put the open-pit deposit into production…technically, GGM has confirmed a breakout above 7 cents and a downsloping channel going back 1 year…Secutor Capital’s flow-through share supply is also rapidly dwindling and the near-term removal of that supply from the market will have bullish implications…
6. RJK Explorations (RJX.A, TSX-V) is getting a $1 million boost to its treasury, a major development for a company with just 17 million shares outstanding…RJK has entered into a purchase agreement with New Gold (NGD, TSX) to sell to the producer all of its interest in its claims in the Blackwater district of British Columbia for total cash consideration of $1 million as NGD continues to consolidate the Camp…the sale is expected to close by the end of next month immediately following anticipated approval from RJK shareholders at a special meeting June 26…RJK is current in the midst of a drill program at its very prospective high-grade Maude Lake Gold Property north of Kirkland…
7. Marathon Gold (MOZ, TSX) has released its updated financials, showing the company had $5 million cash on hand at the end of March…it’s also in the process of completing a $16 million bought deal this month through a syndicate of underwriters led by RBC Capital Markets…the proceeds from the financing will fund an aggressive program of infill and extension drilling at the Marathon and Leprechaun deposits; exploration drilling focused on showings between the Victory Northeast area and the Leprechaun deposit and extensions of the Spite deposit with favorable geophysical characteristics; a summer field exploration program including mapping, geochemical soil sampling and prospecting focused on the northeastern part of the Valentine Lake Property where there are indications of Gold mineralization but limited historical exploration activity; advanced environmental studies which will be used in economic studies on the project and for permitting; and a preliminary economic assessment following a resource update to incorporate the results of Marathon’s aggressive 2017 drilling program…MOZ closed at $1.15 yesterday and is viewed as one of our top Gold stocks for 2017…
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