4. The Venture is off slightly at 802 as of 7:00 am Pacific with North American equity markets under modest pressure in early trading…Lithium X Energy (LIX, TSX-V) has completed previously announced transactions with Pure Energy Minerals (PE, TSX-V) consisting of the sale of its interests in Nevada and its subscription for 3,571,000 Pure Energy units at 56 cents per units (gross proceeds to Pure Energy of $2 million)…Strategic Metals (SMD, TSX-V) is up a penny at 69 cents, matching its 2017 high…the TSX is 75 points lower while the Dow has slipped 59 points as of 7:00 am Pacific…
Check back later today for a special evening edition of BMR Market Musings.
1. Gold has traded between $1,259 (potential new support) and $1,269 so far today as it continues to attempt a confirmed breakout above $1,260 to close out the month…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,264…Gold finished April at $1,268, so a late rally today would give the metal a chance to avoid its first losing month of the year…going back 2 decades, no back-to-back months on the calendar have been weaker than May and June as we’ll show in a seasonality chart in today’s Morning Musings…the fact Gold has held up so well with another Fed rate hike expected June 14 should be interpreted as a bullish sign for the metal going into the summer….traders and investors are looking ahead to Friday’s U.S. employment report for May from the Labor Department, arguably the most important U.S. economic data point for the month…the key non-farm payrolls number for May is forecast to come in at around 210,000…Silver is off 7 cents at $17.31 as of 7:00 am Pacific…
2. Global Gold mine supply is closing in on its cycle peak, according to analysts with Standard Chartered…Gold output growth in 2016 slowed to 0.4%, its weakest rate since it turned positive in 2009, the bank said…although it forecasts that mine production will grow further in 2017 to a record high of 3,229 tonnes, it also sees the growth rate slowing to 0.2%…meanwhile, the firm says the average grade of Gold grams mined per tonne has fallen sharply from 2.5 in 2000…
3. Bitcoin’s price has the potential to hit over $100,000 in 10 years which would mark a nearly 3,500% rise from its recent record high, an analyst who correctly predicted the cryptocurrency’s rally this year told CNBC yesterday…in December, Saxo Bank published its annual report called “Outrageous Predictions” with one of the forecasts calling for Bitcoin to hit $2,000 in 2017…at the time the note was published, Bitcoin was trading in the $700’s, so the target price represented a 165% rise…but now, Kay Van-Paterson, the analyst behind the call, is looking long-term and believes Bitcoin’s move is just in its infancy…
5. Trouble brewing in British Columbia – the NDP, which has only brought misery to investors and the population at large during the limited time it has ever held power there, has cut a backroom deal with the eco-fascist Green Party to usurp power from the Liberal free enterprise coalition that has ruled the province successfully for the past 16 years…Premier Christy Clark, who won a majority of the seats and the popular vote in the May 9 elections, will put her government to a test of confidence when she recalls the legislature next month but even Clark admits an imminent “transfer of power” appears inevitable…the NDP and Greens, in a written agreement, have vowed to “employ every tool available” to kill the Kinder Morgan Trans Mountain Pipeline Project which risks immediately branding the province as hostile to the energy sector and the resource industry in general…the pipeline expansion has been approved at all levels, and construction is scheduled to commence in September, but the NDP-Green coalition could easily find ways to delay the project and force the federal government to take the province to court…meanwhile, Kinder Morgan just raised $1.75 billion in the biggest IPO in the energy sector in 2 years, though shares in Kinder Morgan Canada (KML, TSX) immediately came under pressure in the stock’s debut yesterday due to the new uncertainty in British Columbia…KML is off 16 cents at $16.08 as of 7:00 am Pacific, nearly $1 below the IPO price…
6. Canadian Zeolite (CNZ, TSX-V) has signed a non-binding Letter of Intent (LOI) to acquire 100% of a manufacturer and distributor of Zeolite products based in the United States…according to news this morning from CNZ, the target company has a state-of-the-art, GMP-certified (good manufacturing practice) research and development lab in Arizona where it develops its product formulations and manufactures product lines…the facility can accommodate bulk Zeolite warehousing and distribution of manufactured Zeolite products into the U.S. market…the company is focused on creating nutraceutical products for human use, as well as enhanced fertilizers and water filtration systems…CNZ is up 8 cents to 69 cents as of 7:00 am Pacific…we’ll have an updated CNZ chart in today’s Morning Musings…
7. Critical Elements (CRE, TSX-V) is approaching its yearly high of 95 cents after releasing positive results Monday from a pilot plant program recently completed by the company to demonstrate easy and efficient conversion of CRE’s spodumene resources into battery quality Lithium carbonate (Li2CO3) using the thermal leaching process…this well-known conversion process (calcination, thermal leaching, and bicarbonization and crystallization) from spodumene concentrate to Lithium carbonate showed strong results with extraction rates of 88.4% and very high purity of Lithium carbonate at 99.9%…this extraction rate surpasses the worldwide average of between 70% and 75% which is accepted as an industry standard…CRE is up a nickel at 85 cents as of 7:00 am Pacific…
The most popular recent BMR articles…
How The Eskay Heart of Gold Camp Will Help Drive The Coming Venture Up Wave (Part 1)
“Beyond the Supercycle”: 15 Predictions About The Future Of Natural Resources
Tech-Savvy Junior Captures Cobalt Camp Advantage
Venture Update – The Surprise That’s Just Around The Corner!
USCO moving up lately. Cobalt making it’s comeback finally! Jon: what is the price of Cobalt lately?
Comment by STEVEN1 — May 31, 2017 @ 8:11 am
Yes, even CUZ is showing signs of strength, Steven1. Cobalt is trading at $25.51, now just 12 cents below its yearly high and decade high. USCO had a great session yesterday. CSR has been the strongest Canadian-based Cobalt junior the last few months and will continue to lead the way given its underground access and initiatives in the battery sector with the Re-2OX process and product sourced from the Castle mine.
Comment by Jon - BMR — May 31, 2017 @ 8:43 am
Note: Morning Musings will be delayed to a special Evening Edition today due to some late developments.
Comment by Jon - BMR — May 31, 2017 @ 11:31 am
GGI fact sheet update today, more coming shortly!!
Comment by Laddy — May 31, 2017 @ 11:38 am
CSR. Frank, stay on point, especially when talking to a NLW at a show. “One of those making silver noises was Castle Silver Resources (CSR.V), which has a nice cobalt play up in Cobalt, Ontario (which has quickly become a camp of note), and also has a technology play in the lithium ion battery recycling business, but whose execs were talking out the side of their mouths that, “Hey, you know, this cobalt play used to be a silver mine and, frankly, we like silver… we might just aim in that direction.”
per Chris Parry
Comment by david — May 31, 2017 @ 12:40 pm
CUZ & CSR & USCO MOVING. CPO SOON TO CATCH UP?
Comment by STEVEN1 — May 31, 2017 @ 12:40 pm
Sure would be nice if the late developments had something to do with GGI.
Comment by pole — May 31, 2017 @ 2:23 pm
Jaxon continues to act boldly, secures large land package in Eskay Heart of Gold Camp…
Mr. Jason Cubitt reports
JAXON MINERALS ACQUIRES PRECIOUS METAL RICH DISTRICT IN BC’S PROLIFIC GOLDEN TRIANGLE
Jaxon Minerals Inc. has entered into a binding letter of intent (LOI) to acquire a 100-per-cent interest in the Foremore property. The 15,500-hectare property is located 45 kilometres north of Barrick Gold Corporation’s legendary historic Eskay Creek Mine, in the heart of British Columbia’s famed Golden Triangle. The property adjoins Jaxon’s recently acquired Wishbone property (see news release dated March 27, 2017).Bonanza samples on both Wishbone and Foremore propertiesJaxon now has two district-sized projects, Foremore and HazeltonSubstantial data sets to compile and leverage over the next six months
Jason Cubitt, Jaxon’s President and CEO, states, “We were looking hard for a chance to increase our exposure in the region, and when the offer presented to pick up a 100% interest in a land package of this size and quality, adjoining our southern border, we jumped at it.” Mr. Cubitt continues, “Consolidating these properties fits perfectly within our mandate to develop district scale precious metals-rich properties in premier mining districts.”
The area known as the Golden Triangle of British Columbia is among the world’s most prolific mining districts, host to past and current mining operations including Johnny Mountain, Red Mountain, Snip Mine, Premier Mine, Golden Bear, and Valley of the Kings.
The Foremore Project hosts an abundance of known precious and base metal-rich mineralized boulder fields, outcrops, as well as multiple geochemical and geophysical anomalies in multiple areas. Cominco Limited staked portions of the property after the original discovery of a 162 g/t gold Au quartz boulder and several massive sulphide boulder fields during helicopter reconnaissance in 1987. Since that time millions of dollars have been reportedly spent by Cominco and, subsequently, Roca Mines Inc., developing multiple target areas.
The Foremore targets extend north to Jaxon’s 3,900 hectare Wishbone Property which hosts Cominco’s original discovery, a grab sample from a float vein boulder assayed at 5.2 oz/ton. An even more spectacular sample was reported in a NI43-101 report for previous operator Roca Mines Inc. from the southern end of the Wishbone property, where an out cropping 2 to 3 cm vein carries visible gold at 3,240.9 g/t gold and 82,541 g/t silver (Sears and Wadkins, 2005; available on http://www.sedar.com). The vein cuts across the local foliation and it is difficult to determine if it is related to the abundant folioform veins cutting the schists and phyllites. Jaxon cannot verify this sample result, but intends to locate the vein and resample.
Gold enrichment has been observed by historical exploration in numerous outcropping vein styles and in sulphide zones across the property. It Includes a 1 metre chip sample by Cominco reported to grade 93.7 g/t gold and a Roca Mines grab samples reported to grade 81.7 g/t gold, from the north slope of the valley. Also, in 2004, drill hole FM04-04 returned 3.1 metres averaged 14.6 grams per tonne gold, 1114 grams per tonne silver, 0.2 per cent copper, 1.2 per cent lead and 6.6 per cent zinc, in the BRT showing (Exploration and Mining in BC 2004). This drill hole was never followed up nor was downhole geophysics utilised to better track prospective targets.
Jaxon believes new sulphide boulder trains and outcrops will be exposed from glacial melt- back across this well mineralized, partially covered property. The contemplated August 2017 work program will be shared after fully reviewing all available data previously generated on the property
Bruce Ballantyne, Jaxon’s exploration program manager at the Wishbone and Foremore properties states, “We have the benefit of an enormous amount of historical data to compile and interpret at these projects, covering almost 200 square kilometres and over $10m in work. We will focus on joining these two district-scale datasets, keeping our field expenditures to a minimum this year, prioritizing due diligence and then locating some of the spectacular results.”
Jaxon will provide a more comprehensive report on historic results at both the Wishbone and Foremore properties in an upcoming news release, after technical review.
Foremore Property Agreement Terms
The properties consist of contiguous claims covering 15,531.8 hectares. The terms of the Letter of Intent to acquire a 100% interest are as follows:
$5,000 on signing
$45,000 and 350,000 Jaxon shares on TSX-V Approval
$50,000 and 350,000 Jaxon shares on 1st anniversary (2018)
$75,000 and 400,000 Jaxon shares on 2nd anniversary (2019)
$125,000 and 450,000 Jaxon shares on 3rd anniversary (2020)
$200,000 and 500,000 Jaxon shares on 4th anniversary (2021)
$200,000 and 500,000 Jaxon shares on 5th anniversary (2022)
Additionally, on commencement of commercial production from the Property, $2,500,000 and 2,500,000 Jaxon shares are payable. Jaxon has 60-days to conduct due diligence, and in that time, the parties will prepare a definitive agreement to be submitted to TSX-V for approval.
The technical information present above is historical in nature from previous operators and has not been verified by Jaxon. However, Jaxon intends to use these results to focus its future exploration.
Technical information in this news release has been reviewed by Derrick Strickland, P. Geo, a qualified person as defined in National Instrument 43-101.
About Jaxon
Jaxon is a base and precious metals exploration company with a regional focus on Western Canada. The company is currently advancing its optioned Price Creek property in north-central British Columbia. The property has seen considerable historic exploration work and presents a volcanogenic massive sulphide-style target with reported potential Eskay Creek/Equity silver- style mineralization.
Comment by Jon - BMR — June 1, 2017 @ 5:56 am