Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has traded between $1,255 and $1,271 so far today…as of 7:00 am Pacific, bullion is down $12 an ounce at $1,256…Silver has fallen 35 cents to $16.30…Copper is flat at $2.86…Nickel has retreated 4 cents to $4.65…Crude Oil has slipped 13 cents to $48.90 while the U.S. Dollar Index has rallied out of temporarily oversold conditions by two-thirds of a point to 93.36…market expectations for interest rate hikes remain relatively unchanged…CME 30-Day Fed Fund futures are pricing in a 45% chance of a 25 basis-point hike by December…traditionally, the U.S. central bank does not raise interest rates when expectations are below 50%…
2. The U.S. economy added 209,000 jobs in July, modestly more than expected, and the unemployment rate was 4.3%, according to this morning’s report from the Labor Department…the number of employed Americans also hit a fresh new high at 153.5 million…the employment-to-population ratio moved up to 60.2%, its highest level since February 2009…average hourly earnings matched expectations by rising 0.3% from the previous month…the year-over-year gain in earnings is 2.5%, essentially in line with what most analysts had expected…today’s numbers aren’t enough, however, to make investors especially concerned about inflation but they did give a boost to the dollar and prevented a drop in Treasury yields that could have followed a weaker reading….hence, Gold is under mild pressure…
3. Canada’s jobless rate fell last month to 6.3%, the lowest since October 2008, as the nation’s labor market enjoyed its 8th straight employment increase…the country added 10,900 jobs in July, according to Statistics Canada data, though that figure was below expectations…the decline in the jobless rate was also due in part to a lower participation rate which fell to 65.7% from 65.9% as people left the labor force…a separate trade report showed a pullback in June for exports, down 4.3% during the month and a trade deficit of $3.6 billion that was the widest since September 2016…
4. The Venture is off 1 point at 765 as of 7:00 am Pacific…2 of this week’s big gainers are up again in early trading as Garibaldi Resources (GGI, TSX-V) has added a penny to 39.5 cents while neighbor Metallis Resources (MTS, TSX-V) has gained a penny-and-a-half to 27 cents…Metallis, which has only about 20 million shares outstanding, adjoins the southern border of GGI’s E&L Nickel Mountain Project with its 100 sq. km Kirkham Property…drilling begins in about 10 days at Kirkham which features a high-grade Gold target (King) with a plate-like conductor 3 x the size of the Snip deposit to the northwest…King is also adjacent to a known 6-km long mineralized monzonite porphyry at Kirkham which will also be drilled below historic intercepts (Gold and Copper grades increased at depth in 5 shallow holes in 2009)…Tudor Gold (TUD, TSX-V), meanwhile, continues to inch higher with volume picking up as well this morning as Tudor continues its drilling in the Camp…the TSX is up 11 points through the first 30 minutes of trading while the Dow remains above 22,000 with a gain of 23 points as of 7:00 am Pacific…
5. Goldcorp (G, TSX) is acquiring a 14.25% interest in Colorado Resources (CXO, TSX-V) through a strategic equity investment that will raise just over $7 million for the Eskay Heart of Gold Camp junior…in addition, and this is also very significant, CXO is acquiring 100% ownership of its flagship KSP Project in a deal with Seabridge Gold (SEA, TSX)…Seabridge will receive $1 million in cash, 2 million CXO shares and a 2% NSR on the property, half of which can be repurchased at any time for $2 million…Adam Travis, President and CEO of Colorado, stated “This is one of the most important milestones in Colorado’s 8-year history. The company’s 2016 exploration focused on the Inel zone at KSP and highlighted significant results (see news release December 19, 2016). Goldcorp’s investment will not only allow us to increase our ownership of KSP to 100%, it will also provide additional funding to expand our 2017 exploration program and drill-test targets we would not otherwise be able to explore this year. We look forward to welcoming both Goldcorp and Seabridge as shareholders and now have the opportunity to advance KSP with significant support on all levels.” CXO is off half a penny at 33 cents…Goldcorp’s financing is at 26 cents (hard dollar) and 36.5 cents (flow-through)…
6. Osisko Gold Royalties (OR, TSX, NYSE) is hiking its dividend after a profitable 2nd quarter in which the company expanded its Gold streaming and royalty business…a quarterly dividend of 5 Canadian cents per share will be payable on October 16 for shareholders of record as of the close on September 30, representing a 25% increase from the previous quarter, the company reported late yesterday…net Q2 earnings were $11 million (CDN) or 10 cents, compared to $15.7 million (CDN) or 15 cents, a year ago…the company enjoyed record quarterly revenues of $18.4 million, a 16% increase compared with the 2nd quarter of 2016…on July 31, Osisko closed the acquisition of a precious metals portfolio of assets from Orion Mine Finance Group consisting of 74 royalties, streams and offtakes, including a 9.6% diamond stream on the Renard diamond mine and a 4% Gold and Silver stream on the Brucejack mine in the Eskay Camp, all of which are new mines in Canada, in addition to a 100% Silver stream on the Mantos Blancos Copper mine in Chile…
7. Junex (JNX, TSX-V) was halted pre-market as it announced the signing of a partnership agreement with Ressources Quebec Inc., acting as mandatary for the government of Quebec, and Gestion Bernard Lemaire Inc., which will lead to investments estimated at $14 million for the Galt Oil and Gas Project on the Gaspe peninsula…under this new partnership, Ressources Quebec will invest $8.4 million, representing approximately 60% of the anticipated expenditures for the upcoming exploration campaign…in return, Ressources Quebec will acquire from Junex an undivided interest of 17.13% in the joint properties comprising the Galt Project…Junex will retain an interest of 52.87% in the project and will invest 10% of the anticipated expenditures for the exploration program ($1.4 million)…Gestion Bernard Lemaire will maintain its 30% interest in the Galt Project…drilling commences in the coming weeks with the Galt No. 6 horizontal well…JNX has jumped 11.5 cents to 52 cents after 30 minutes of trading…
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You guys got me interested in OREX EXPLORATION many years ago. They have been bought out by ANACONDA MINING. Wondering when you are going to take a hard look at. This article is awesome and explains future plans. How can this stock be 6 cents ??? https://ceo.ca/@Newton/60-minutes-with-dustin-angelo-ceo-anaconda-mining-anx
Comment by KD Dougan — August 4, 2017 @ 9:32 am
I’m not so sure there a lot of regoci doubters left. I mean really, it’s gone from 17 to 42, the drill may be turning as we speak.he’s probably to busy beating away majors, nr next week, I’ll say Monday…..
Comment by Laddy — August 4, 2017 @ 9:33 am
Is GGI new leaking out? New high. Maybe anticipating news.
Comment by Marshall — August 4, 2017 @ 9:54 am
You’re awfully quiet today Jon. Hopefully busy talking to Lightfoot and eyes bulging!! LOL
Comment by Dan1 — August 4, 2017 @ 10:19 am
That’s funny, Dan1…just got off the phone with him, actually, discussing our interview plans!…
Great market action, GGI keeps doing its thing…mystery American buyer…MTS is looking very strong as well…
Comment by Jon - BMR — August 4, 2017 @ 10:21 am
Lol Jon! Hopefully you will have more evidence for your subscribers!!!
Comment by Dan1 — August 4, 2017 @ 10:23 am
Yes, indeed, Dan1…
Comment by Jon - BMR — August 4, 2017 @ 10:40 am
Whoa
I guess GGI doesn’t need any news, Sorry Jon, guess Ill just keep my mouth shut from here on out and enjoy the ride….
Looking forward to Lightfoot interview..
Comment by Gregh — August 4, 2017 @ 11:27 am
CSR
Maybe if I do some complaining about CSR it will go up too..lol.. I think everyone has forgotten all about the cobalt camp for the time being, as Jon says that is when the big things happen, when no one is watching then KABOOM…
Comment by Gregh — August 4, 2017 @ 11:29 am
ABN not participating… sniff sniff… wrong horse????
Comment by Jeremy — August 4, 2017 @ 12:35 pm
Morning Mornings slightly delayed ’til shortly after close…
Comment by Jon - BMR — August 4, 2017 @ 12:44 pm
Jon, you were hearing photos on the website early this week. What happened I wonder? Their strategy I cannot figure out, not complaining about the share price though. I am wondering if they want to gather as much information as possible to be closer to drilling anomaly A shortly after D. Reason: This is only an assumption but if they hit big on D, they may get hostile takeover bids before they have a chance to sink the drill bit into A. Maybe that’s the reason the VTEM is not released yet as well. It will probably be after drilling D before the VTEM is released publicly. I may be way off, but it’s wishful thinking anyway. There certainly won’t be any shortage of funds offered for drilling if D is a hit.
Jon, you also mentioned possible quick ground geophysics to hone in on the motherlode. In any case, hope the drill turns next week.
Comment by Dan1 — August 4, 2017 @ 1:36 pm
Oops Monday closed, ok I’ll say Tuesday then, for an update..
Comment by Laddy — August 4, 2017 @ 1:41 pm
Jon, to add to post # 12, the summer is slipping away and we will soon be into the fall/winter/. My only concern now is the shortened drilling season. You would think they would be trying to get drilling going asap. After all, once they hit, drilling will ramp up big time but with very little time left in the season.
Comment by Dan1 — August 4, 2017 @ 3:19 pm
Dan1
I’ve been giving this some thought too since we did not hear anything about drilling starting this week and the last NR said imminent and Jon seems to think that Regoci would have put out an NR announcing drilling if they started, so since we didn’t see an NR announcing drilling that makes me believe that the Anomaly A was so compelling that they are re thinking their strategy, I still think they are going to drill into D first but they may be lining up another drill to drill into A also and really blow the lid off of this thing, maybe wishful thinking but there is definitely something big going on.. I don’t think we really have any idea of how big this is or can be.. but obviously something is going on for the share price to not just hold up this week with no news but actually go up.. maybe it’s just me but i’m sure all the regulars have noticed how quiet Jon has been this week on the board too… I think he knows a lot more than he can say.. or he is just really busy gathering more info for his subscribers?
Comment by GREGH — August 4, 2017 @ 5:20 pm
Agree Gregh, I also believe anomaly D first, but I have this tingling feeling that A is high on their priority list, especially since the ground truthing. They are certainly keeping their cards close to the vest. The VTEM is still not released and there has to be a reason why it isn’t. Most companies will release the VTEM to help prop up the sp. GGI’s share price is rising even without the VTEM details. That says something when the level of interest is this high without divulging the VTEM details. Something is definite afoot.
Comment by Dan1 — August 4, 2017 @ 5:54 pm
I agree, Gregh, no person with even just a basic knowledge of geology can reasonably argue that something very big isn’t going on here. We’ll expand on that theme in our Sunday Sizzler. I did think we’d hear from GGI this past week but no – not even photos on the web site. I’m sure they have some beauties! The silence will end soon enough, in the coming days, and maybe with a very loud boom!
Obviously drilling is very close to starting, but I’m speculating there has been a shuffling around in the order of things and parts of the overall tactical approach given the game-changing news July 27. Anomaly D is the no-brainer, absolute must location to commence drilling—-that’s not going to change IMHO, no matter how good A or the others are, because that’s the known historic deposit drilled to 122 m with a fat conductor beginning at 140 m. Having said that, carrying out some quick ground geophysics at Anomaly D is one possible last minute decision, and of course there’s also the issue of all the anomalies and ground truthing. What else may they have found? Perhaps there’s something at Anomaly A or elsewhere that could help them in understanding Anomaly D even better, who knows. A lot of moving parts. It’ll all come together soon enough. This is an extraordinary situation. Everyone in the resource sector needs to be rooting for GGI and all these companies in this district right now because I can’t think of any other place in the country where history can be made so quickly, within this month of August, and completely change the tenor of this overall market. This has the feeling that we’re about to experience another August 1989 when Pezim’s hole 109 at Eskay Creek created mayhem and set VSE records.
Comment by Jon - BMR — August 5, 2017 @ 5:52 am
Looking forward to the Sunday Sizzler Jon! There are 3 more days before trading starts and I sure GGI will have more to report next week.
Comment by Dan1 — August 5, 2017 @ 6:11 am
Jon
Tenor of this overall market, no pun intended, lol
Comment by Gregh — August 5, 2017 @ 7:38 am
RE:The findings in Anomaly A were RIght where the VTEM indicate
This post from another board is spot on this is what Jon has been trying to get thru our thick heads lol
.. Too simple here. Anomaly D just like anomaly A lite up like a Roman candle. Anomaly D sits about 20 meters below the mineralized core from 1960’s Silver Standard. The cores from Silver standard get a much higher percentagage right at the very end of those cores…. The VETM never lite up for the first 140 meters in anomaly D, which is under the E & L. The E &L was drilled by Silver Standard in the 60’s because of a large anomaly on the surface… Like anomaly A found just recently by the VTEM. I don’t need to be a geo to do the math and the notes for this are all in the press releases. Look and read the tail end of those core numbers and how rich they were getting at the end of 122 meters. Ask yoursekf, what on Earth could be 20 meters below that that the VTEM picked up on that didn’t”t really register on the first 120 meters. Than ask yourself, if the VTEM spotted anomaly A and it has a massive outcropping, bigger than E&L with anomaly D below that, what on Earth is at anomaly A that has the identical mineralized rocks as the E&L on surface. People this is called a huge find and those that are saying, it is overbought etc. Do not understand where the share price will be in a very, very short time frame.
Comment by Gregh — August 5, 2017 @ 7:52 am
Yes Gregh, that poster summed it up very well. Like Jon said earlier, a kindergarten student can understand it, it’s that simple. Mind you some kindergarten students are much smarter, so no offense intended.
What on earth could be at anomaly A? Given it’s the same visual outcrop only over a much larger area. As you said earlier, like to be a fly on the wall in their meetings. This may not just be big, it could be epic!
Jon, I’m betting Lightfoot can talk with even more confidence now after the last NR.
I keep going back to the last NR, and Regoci’s statement that this has all the earmarks of a game-changing discovery for our shareholders. I don’t think he was kidding! LOL
Comment by Dan1 — August 5, 2017 @ 9:41 am
Funny Dan1 I keep reading the last NR too and every time I read it I just get more excited !!
Comment by Gregh — August 5, 2017 @ 11:58 am
Just saw a post on the other board that Friday Aug 4th, a GGI insider sold 96000 shares. I checked it on Canadian insider and someone did sell $36000 worth. Who would that be I wonder?
Comment by Dan1 — August 5, 2017 @ 12:38 pm
Dan1
whoever it was probably needs some cash…
Comment by Gregh — August 5, 2017 @ 3:42 pm
The person might also need cash to get into a new private placement to fund drilling at Anomaly A.
Comment by Scott — August 5, 2017 @ 4:22 pm
Gregh, like you and others I thought that this was rather strange, but I urge everyone to focus on the broad situation as we know it and not the unimportant noise from the periphery or the peanut gallery. First off, in a recent conversation I had with Regoci, although he was very tight-lipped he did confirm he has imposed a blackout period on directors/management in terms of any trading (buying or selling) in the stock. That makes perfect sense given the very unique situation here.
So what happened in this particular instance? I haven’t seen the actual insider trading report online, but if it’s accurate, the 96,000 shares IMHO could only have been sold by Craig Gibson who’s currently in Mexico…probably so deep in the bushes he didn’t get the edict yet from Regoci, or maybe he had entered an open order a few weeks ago and forgot about it. I know Gibson, he’s a good guy and an excellent geologist, but he’s completely detached from events in B.C. and the market certainly isn’t his specialty. He lost work due to a takeover and of course he’s had little or no work from GGI the last couple of years because they decided to reign in Mexico temporarily to focus on B.C. and the E&L to avoid unnecessary dilution at ridiculous prices, so dollars are probably an issue for him (too bad, if he had only waited for another week or two!) and he likely had something to address or fund. Anyway, that’s my take and facts supporting it—-much more important things to cover and we’ll get into that tomorrow.
Comment by Jon - BMR — August 5, 2017 @ 6:42 pm
Jon
I totally agree Jon, makes no difference in the big scheme of things, if it was a million shares that may be a different story…
Comment by Gregh — August 5, 2017 @ 6:52 pm
Jon, i was trying to remember his name as he was selling a couple years ago. That’s who I suspect as well.
Comment by Dan1 — August 5, 2017 @ 7:05 pm
Does anyone know if you can buy GGIFF on a Canadian holiday?
Comment by Marshall — August 6, 2017 @ 5:56 am
Marshall….call your broker!!!
Comment by John - BMR — August 6, 2017 @ 7:52 am
Happy Sunday everyone. It’s Sizzler day at Bullmarketrun!
Comment by Dan1 — August 6, 2017 @ 8:29 am
You Canadians sure have a lot of things to celebrate tomorrow
How do you keep track of them all lol
Comment by Gregh — August 6, 2017 @ 9:24 am
We take extra holidays to add em alll up
Comment by david — August 6, 2017 @ 2:23 pm