Visit the BMR comments section throughout the day for updates and helpful information. BMR Morning Market Musings returns tomorrow.
1. Gold has traded between $1,259 and $1,266 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,262…Silver has added 17 cents to $16.43…Copper is flat at $2.89…Nickel is off slightly at $4.68…Crude Oil, up earlier in the session, has retreated 40 cents to $48.99 while the U.S. Dollar Index is relatively flat at 93.35 after Friday’s big jump…holdings at the SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, fell to 786.87 tonnes yesterday…BNP Paribas has upwardly revised its outlook for Gold on scaled-back expectations for Federal Reserve monetary tightening, although it’s not forecasting a big rally from current levels until the 2nd quarter of next year…in a research report today, BNP Paribas hiked its Q4 Gold forecast by $90 – compared to the end of March – to $1,255 an ounce…
2. Oil traders got news today of lower Crude supplies from Saudi Arabia but that offset higher output from other large producers, including the United States…Saudi state Oil company Aramco will cut allocations to its customers worldwide in September by at least 520,000 barrels per day, according to a report from Reuters…officials from a joint OPEC and non-OPEC technical committee are meeting in Abu Dhabi today to discuss ways to increase compliance with the deal to cut 1.8 million bpd in production…traders will be paying close attention to fresh data tomorrow from the U.S. Energy Information Administration which will release its weekly petroleum status report, giving details on stockpiles and refinery runs…meanwhile, final hearings on the Keystone XL pipeline began in Lincoln, Nebraska, yesterday, with testy exchanges between a lawyer for Nebraska landowners who oppose the project and a company executive and a local economist whose studies support the benefits of the venture…the Nebraska Public Service Commission hearings are expected to last 5 days and pose the last major regulatory hurdle for proponent TransCanada Corp. in its 9-year quest to build the $8 billion (U.S.) pipeline which would deliver Oil from Alberta to Texas…
3. China’s exports and imports grew much less than expected in July, though analysts caution about placing too much emphasis on 1 month of data from that country…in addition, the numbers are still significant…China’s export growth slowed to 7.2% in July from a year earlier, the weakest pace since February and cooling from an 11.3% rise in June…China’s imports rose 11%, the slowest growth since December and down from a 17.2% advance in the previous month…Oil imports increased robustly, however…on the metals front, year-over-year growth in Chinese imports of Copper concentrate slowed from June’s pace, while imports of iron ore and coal declined outright compared with both a month and a year earlier…reports of capacity cuts and planned curbs on scrap imports by the world’s largest metals consumer have driven Copper prices up 7% and iron ore prices up more than 20% since the end of June…
4. The Dow, pushing for its 9th straight record close, is off 15 points through the first 30 minutes of trading…large caps are getting a tailwind from a declining U.S. dollar and they’re also getting strong growth outside the U.S., pushing profit growth to 12% in Q2…the TSX is up 17 points in early trading while the Venture has added 2 points to 768…a key band of resistance for the Venture stretches from 770 through the 780’s…once that is overcome, the Index could accelerate rapidly…
5. Kirkland Lake Gold (KL, TSX) this morning released very impressive high-grade drill results from its Fosterville mine in Australia where underground definition drilling continues to infill and target down-plunge extensions of the rich Swan Zone of the Lower Phoenix Gold system…continuity of high-grade visible Gold mineralization in the Swan Zone has now been defined over a strike extent of 300 m and vertical extent of 200 m…today’s fresh results from 6 underground holes totaling 2,652 m into existing mineral resources and extensions of the Swan Zone include 338 g/t Au over 33.6 m, including 4,177 g/t Au over 0.95 m, in UDH2081A; 42.9 g/t Au over 49.5 m in UDH2084D; and 11.4 g/t Au over 18.65 m UDE138…Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “The Swan Zone is the highest-grade area of the Fosterville mine, with a recently released Mineral Reserve including 532,000 ounces at an average grade of 58.8 g/t Au. Today’s results include 2 intercepts that are located between 70 and 90 m down plunge of the current Swan Zone Mineral Reserve, with additional high-grade mineralization being intersected to the south and at depth of the Zone. The results we are seeing from the ongoing drilling program are increasing our confidence in the geological controls and continuity of grade within the Swan Zone. They are also supporting our view that the potential exists to significantly grow the Swan Zone Mineral Reserve, where the average grade is well in excess of Fosterville’s overall underground Mineral Reserve, which includes 1,030,000 ounces at an average grade of 17.9 g/t Au.” Keep in mind that AuRico Metals (AMI, TSX) holds a 2% NSR on the Fosterville mine which is 100% owned by Kirkland…separate from the mine, Kirkland also holds exploration licenses covering an area over 500 sq. km, encompassing the known strike extent of the Fosterville Goldfield…AuRico’s 2% NSR also covers that large land package…
6. Copper Mountain Mining (CMMC, TSX) is up modestly in early trading after reporting Q2 net earnings of $10.11 million, or 5 cents per share, on revenues of $67.1-million from the sale of 21.1 million pounds of Copper equivalent, including 17.6 million pounds of Copper, 6,300 ounces of Gold and 62,700 ounces of Silver…total cash cost for the quarter ended June 30, 2017 was $1.74 per pound of Copper sold, net of precious metals credits…Jim O’Rourke, President and CEO, commented: “We remain bullish on global Copper markets and with our production on target we are well positioned to benefit from an upswing in the Copper price. We will continue to focus on cost control and operational improvements to further strengthen the company’s balance sheet.”
7. EnGold Mines‘ (EGM, TSX-V) latest drill hole, G17–23, located 112 m west-southwest from discovery hole G16–01, has intersected 18.75 m grading 1.13% Cu, 0.14 g/t Au, 5.55 g/t Ag and 26.3% iron…although the geometry of the mineralization has yet to be determined, this hole extends the zone to 250 m from recently announced G17–16 (43.45 m grading 1.31% Copper, 0.20 g/t Au, 4.06 g/t Ag and 31.14% iron)…drill holes G17–18 through G017–23, also released this morning, returned no significant intercepts…the company has also been notified that exploration activities at the Lac La Hache Property in the southern B.C. interior may not resume until further notice due to the extreme fire danger rating within the project area…although no fires are burning on or close to the property, and evacuation orders have recently been lifted for nearby communities such as Williams Lake and 100 Mile House, the reported fire danger level remains at the highest level within the project area, requiring EnGold to cease field work…
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Anyone want to guess which of the Eskay Heart of Gold Camp juniors will come out with significant news first?
Comment by Marshall — August 8, 2017 @ 8:35 am
GGI
all I can say is wow!! No news and she just keeps on going up…
Comment by GREGH — August 8, 2017 @ 8:36 am
Jon
I know all the focus has been on GGI and the GT and rightfully so, should I be getting concerned about CSR and the Cobalt Camp? Thinking there may have been several investors that sold CSR to get more of GGI? Your thoughts?
thanks
Comment by GREGH — August 8, 2017 @ 8:40 am
Hey, anyone have any idea why ggi is surging so hard? I understand the fundamentals here but worried this could be a setup to ‘sell the news’.or alternatively, it could be the start of something massive? Hard to tell without a drill result.
Comment by Seamus — August 8, 2017 @ 8:48 am
Hey, anyone have any idea why ggi is surging so hard? I understand the fundamentals here but worried this could be a setup to ‘sell the news’.or alternatively, it could be the start of something massive? Hard to tell without a drill result.
Comment by Seamus — August 8, 2017 @ 8:49 am
Jon
GGI: you said we would know when the institutions started buying, it looks like they may have started today? Crazy….
Comment by GREGH — August 8, 2017 @ 8:51 am
Jon
GGI: you said we would know when the institutions started buying, is today the day?, crazy…
Comment by GREGH — August 8, 2017 @ 8:52 am
@BMR
are you hearing anything to justify this move in GGI even before drilling starts?
Cheers
Comment by Seamus — August 8, 2017 @ 9:12 am
I wouldn’t be at all concerned about the northern Ontario Cobalt Camp, Gregh…that’s another important “Big Picture” prolific Canadian exploration story, and it’s going to play out in a profound way (and more than just Cobalt)…at the moment I’m sure there are some investors temporarily switching over to the Eskay Camp, not just from northern Ontario but other situations as well – that’s normal in these days of chasing quick returns…
My count is that 10 drill programs are either in progress, or very quickly about to begin, in the Eskay Heart of Gold Camp…think about that for a minute…one of the most mineralized parts of the entire planet, one of the world’s highest-grade Gold mines now in commercial production and any one of multiple companies capable of finding a major new discovery…this has the look and feel of developing into another 1989…
On top of that, of course, the situation with GT Gold near Red Chris with a very important new high-grade Gold discovery and drilling about to ramp up there…
The Perfect Storm for northwest BC…
Comment by Jon - BMR — August 8, 2017 @ 9:12 am
ABN hasn’t been participating in the rally the last couple days. Weird
Comment by Sameer — August 8, 2017 @ 9:22 am
Thanks Jon
could be a crazy summer, imagine if several of those companies hit!
Comment by GREGH — August 8, 2017 @ 9:24 am
Abn:
when I read the press release it sounded to me like they were not going to drill anything new, just trying to prove up the past, so I sold and bought more MTS, glad I did… for now anyway..
Comment by GREGH — August 8, 2017 @ 9:27 am
Jon,
It’s been a long time since you have spoken about GGM. Do you think Frank Basa can get the company to where GGI is heading?
Comment by Steven — August 8, 2017 @ 9:47 am
Big move on otc may be helping, looking good!!
Comment by Laddy — August 8, 2017 @ 9:53 am
Crazy is not even the right word for it, Gregh, if you were part of that incredible August-September of ’89 when Pezzim and Co. hit at Eskay Creek…
Comment by Jon - BMR — August 8, 2017 @ 9:57 am
Look at the move nickel is making Jon, WOW….
Comment by Laddy — August 8, 2017 @ 10:00 am
Jon with the heavy volume and increase in SP, do you think the drill may be ready to turn or already turning?
Comment by Dan1 — August 8, 2017 @ 10:01 am
Wow…up 16 cents on Nickel, all the base metals running all of a sudden…
Comment by Jon - BMR — August 8, 2017 @ 10:02 am
Steven….I don’t think anyone has answered a GGM question in quite a while…..waiting game.. 🙂
Comment by Frank — August 8, 2017 @ 10:40 am
Hi Jon, I was just wondering what you think the likely scenarios could be for GGM. Frank Basa had mentioned that with the increase in Oz in the ground to just shy of 5M it changed the dynamic of his talks with DRA, which BMR had called a game changer back when DRA was first announced.
I was just hoping you had some ideas as to what could be playing out for GGM in the near future. Frank seems very busy as he has had both of companies he is running having big developments, CSR is churning out great news releases steadily over the summer, and GGM had its big resource revision to 5M or so. Just hoping you can give some insight.
Thanks.
Comment by Karim — August 8, 2017 @ 10:52 am
http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aGGI-2492882&symbol=GGI®ion=C
Comment by Dan1 — August 8, 2017 @ 1:09 pm
I see Allan, Coffin, and Stateside all posted on CEO.ca today trying to warn investors and advised them to sell if they held big positions at a cheap entry point. Wonder if maybe all 3 are a little jealous that they didn’t get in on this one on the cheap. I am certainly rooting for GGI and also BMR as it seems letter writers don’t take you guys seriously. I hope we all become wealthy and sit around one day and reminous. Wouldn’t that be fun?
Comment by Dan1 — August 8, 2017 @ 1:30 pm
Dan1 – I believe that all people in the industry talk their book… Jim Sinclair is the biggest culprit in 2011-2014… they talk about what they want to have happen.
Coffin et al are no different. Cant look like a fool now can they, and GGI is doing just that. the area will soon prove up to the hype. As Jon said there are 10 companies getting ready to drill .. in one area… kaboom!!
Comment by Jeremy — August 8, 2017 @ 2:44 pm
@Dan1 I would not be surprised if some are “warning” investors to sell to maybe help fill a potential short position?
Comment by maxwell — August 8, 2017 @ 2:49 pm
Dan1
There is no doubt in my mind those well known newsletter writers have not taken the BMR group seriously for quite some time,I have mentioned that here in the past and in fact I think they may have been behind some shenigans with GGI and maybe CSR stock prices in the past… I hope they tell all of their following to sell, then when GGI is at 2-5 bucks they won’t have much of a following anymore lol, Go BMR and Go GGI!!! Seriously the more I think about that Anomaly A 6 KM AWAY and the the more I think about the original drill holes that went to 122m not showing up on the VTEM the more I am convinced this is going to be HUGE!
Comment by Gregh — August 8, 2017 @ 3:20 pm
Jon
GGI: okay tomorrow is Wednesday, no news so far this week, so what do you think is really going on behind the scenes? could they be already drilling?, or are they holding off because of more ground discoveries at anomalies B and C? So many possibilities, but what do you think Jon?
thanks
Comment by Gregh — August 8, 2017 @ 3:24 pm
I don’t know very much about this coffin character,or do I care too, but wasn’t he the one that was trashing ggi sometime ago. Ya Dan1, maybe pissed at himself that he totally missed this one.
Comment by Laddy — August 8, 2017 @ 3:25 pm
Yes Laddy, he was the one thrashing GGI in the past. He also pumped NRN hard, look what happened there. As for Allan, how did RLG work out for him? That’s the nature of exploration. You got to keep trying and we can certainly say, Regoci keeps trying. He also had success in the past. One thing I will give Regoci credit for and that’s keeping dilution to a minimum. And now he and all his team of geologist and investors may reap huge rewards.
Comment by Dan1 — August 8, 2017 @ 4:11 pm
I agree Dan1, let’s all not forget that over the cooling off period, when and if that arrives, regoci has Rambo,tora tora, caribou, silver eagle to SPRINKLE in when the time is rite.
Comment by Laddy — August 8, 2017 @ 6:29 pm
GGI has now eclipsed the ‘high mark’ that NRN hit based on their widely disclosed VTEM that was trotted out to analysts in NA and Europe. No person w/o a CA has seen the GGI VTEM yet, but we are closing in on $65MM mkt cap! yee ha
Comment by david — August 8, 2017 @ 9:08 pm
Dan1,
I checked out Coffin’s comments on CEO but didn’t see any comments where he was advising GGI shareholders to sell if they had a big gain.
Could you please post Coffins’s comment or qualify your statement that Coffin said to sell GGI?
Comment by John — August 9, 2017 @ 12:54 am
GGI director Burnett exercised 200k 10 cent options and then sold off 100k at 39 on Friday. Blackout period over I guess
Comment by david — August 9, 2017 @ 4:56 am
Actually my mistake. It was Allan that made that comment.
Comment by Dan1 — August 9, 2017 @ 5:14 am
Coffin said Wow. $60 million market cap for $GGI. I hope this “greatest project ever” works out better than their last three “greatest projects ever!”.
Comment by Ivan — August 9, 2017 @ 5:27 am
No, David, blackout period is in force according to what Regoci told us…we speculated that sale may have been Craig Gibson down in Mexico but it turns out to have been Burnett who likely decided to exercise options, just as the blackout period was imposed…he slipped in under the wire or may have missed the initial communication…
Comment by Jon - BMR — August 9, 2017 @ 5:28 am
Amazes me, Ivan, how little the mainstream newsletter writers have researched the entire Eskay Camp, including Nickel Mountain of course which they simply do not know the history of…but that’s ok…that’s how future buying comes in…
10 companies in the Camp with drill programs in progress or starting imminently…when’s the last time we saw that in a district in Canada?…perfect set-up for a major discovery…those who are currently asleep at the switch will be the ones chasing some of these companies at much higher valuations over the coming weeks…
Comment by Jon - BMR — August 9, 2017 @ 5:34 am
Jon,
What do you anticipate the next GGI news release to be about?….1)drill results 2)financing 3)general update 4) major buying in for JV
Bryan
Comment by Bryan — August 9, 2017 @ 5:55 am
Gold up $13 an ounce at 6 am Pacific…BGM Intersects 18.84 g/t Au Over 30.85 Metres at Shaft Zone…
Comment by Jon - BMR — August 9, 2017 @ 5:57 am
and yet BGM gets pounded down regardless… this market has been brutal.. would suggest it may remain the same until it doesnt!:)
Comment by Jeremy — August 9, 2017 @ 6:13 am
Jon
You do not seem to be answering any of our direct questions to you anymore like you used too? What’s up?
Thanks
Comment by Gregh — August 9, 2017 @ 6:40 am
Ivan
Can’t blame Coffin for making those remarks about GGI based on the past, unfortunately we are all judged on our past until we prove we have changed
Comment by Gregh — August 9, 2017 @ 7:24 am
Gregh, sorry…I’m just exceptionally busy as you can imagine…I’ll get to everything in due course…patience wins the day!…
Comment by Jon - BMR — August 9, 2017 @ 8:23 am
yes as a long term holder of GGI I’m well aware of its failure to communicate and execute but I find Mr. coffins criticism of GGI somewhat amusing as he seems far less critical when it comes to his own babies. I’m hoping Mr. C has a lot of egg on his face with GGI plus some gravy, bacon grease and maybe some jam.
Comment by Ivan — August 9, 2017 @ 2:57 pm
Everyone, Ivan, would be wise to heed the call of Dr. Peter Lightfoot, truly one of the world’s leading Nickel sulphide experts (20 years with Inco and Vale, last 7 as chief geologist, http://www.lightfootgeoscience.ca)…
“The E&L is in the top quartile of early-stage Nickel sulphide prospects in the entire world.” – Lightfoot.
Of course he could change his mind in the days ahead and turn even more bullish once he starts looking at some core, like some sections of several percent Ni and about 2% Cu like Silver Standard drilled into…
Comment by Jon - BMR — August 9, 2017 @ 4:19 pm