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1. Gold has traded between $1,279 and $1,287 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,284 as the Fed concludes a 2-day policy meeting with a statement at 11:00 am Pacific…the central bank will leave interest rates unchanged as it seeks to balance robust economic growth against low inflation…Silver has slid 10 cents to $14.82…Copper has retreated 6 pennies to $2.86…Nickel is off slightly at $5.51 while Zinc is steady at $1.31…Cobalt remains unchanged at $15.76…Crude Oil has pulled back 65 cents to $63.93 on a bigger-than-expected increase in U.S. Crude stockpiles…traders are keenly watching events in Venezuela where “Operation Liberty” is attempting to oust corrupt socialist dictator President Nicolas Maduro…the U.S. Dollar Index is down another one-fifth of a point to 97.32…more signs of strength in the U.S. economy – private payrolls grew by 275,000 last month, the biggest increase since July, when they expanded by 284,000…services-providing jobs increased by 223,000 in April, led by a gain of 59,000 jobs in professional and business services…“The job market is holding firm, as businesses work hard to fill open positions,” stated Mark Zandi, chief economist at Moody’s Analytics…
2. The Trump economy is booming…the Trudeau economy is a bust…Canada’s economy returned to its sluggish ways in February with a drop in output that will reinforce expectations of a slow start to the year…GDP fell 0.1% in February, consistent with an economy that continues to grapple with a number of headwinds and may have barely grown at all in the 1st quarter of 2019, compared to a sizzling 3.2% rate of growth in the United States…the reason for the difference, of course, rests in how the Trump and Trudeau administrations view the role of government in the economy – the U.S. has been emphasizing deregulation and lower taxes, unshackling the power of the private sector, while over-regulation, over-taxation and productivity issues continue to restrain the Canadian economy…climate change extremism has been harmful…Trudeau’s National Energy Program and other policies have clobbered the resource sector – falling resource production was the main culprit of negative GDP in February, with the mining and Oil and gas sector down 1.6% according to Stats Canada…that’s the 6th consecutive monthly drop…while the Oil and gas sector continued to show weakness, the big decline was in mining and quarrying outside of energy…that component fell 4.4%, driven by reduced output of most types of metals…this is not good and it’s also un-Canadian…Canada was built on resources, and it’s time for more governments in Canada like the one now in Alberta that stand up for the crucial resource sector…the country’s prosperity is at stake…meanwhile, British Columbia is launching a constitutional challenge against Alberta after new Premier Jason Kenney proclaimed legislation yesterday that could potentially restrict Oil supplies to B.C. if that province continues to obstruct the Trans Mountain pipeline expansion…the NDP/Green government on the Left Coast seems to forget that Alberta is the world’s 6th largest producer of Oil and natural gas combined, behind only the U.S., Russia, Saudi Arabia, Iran and China…Alberta is consequential to the world’s energy needs, not just Canada’s…
3. Australia’s Gold output is expected to fall the most in the next 5 years as the nation’s aging mines begin to “run out of Gold,” according to S&P Global Market Intelligence…Australia is currently the 2nd biggest Gold producer in the world after China…S&P Global estimates, however, that the mining nation will fall into 4th place by 2024, surpassed by Canada and Russia…“Australia’s production is expected to fall the most. The current 2nd-largest Gold producing nation behind China is expected to fall to 4th place globally in 2024,”the report says…“Russia’s production is expected to essentially equal Australia’s in 2020 and then surpass Australia. Meanwhile, in Canada, the startup of Meliadine and continued ramp-up of Rainy River, Eleonore and Hope Bay, among others, drive some of the fastest national growth that is expected to last for several years”…
4. Simon Ridgway’s Radius Gold (RDU, TSX-V) has hit new multi-year highs following this morning’s release of impressive first results from the 2nd round of its diamond drill program at the Amalia Gold-Silver Project in Chihuahua, Mexico…the program is operated by Radius and funded by Pan American Silver (PAAS, TSX, NASDAQ) under a joint venture agreement…the first hole of 2019, AMDD19–010, has intersected 44 m grading 12.4 g/t Au and 309.3 g/t Ag including an 11-m section grading 39.9 g/t Au and 323 g/t Ag…estimated true width of the mineralized zone is 34 m…Radius’s initial drill program at Amalia (results issued Dec. 4) tested the San Pedro structural zone with 5 diamond drill holes, intercepting Gold and Silver mineralization in all 5 holes along a 650-m strike length…the previous hole AMDD18–009, intersected 26 m at 7.08 g/t Au and 517 g/t Ag, including 5 m at 14.7 g/t Au and 1,378 g/t Ag…drilling continues at Amalia with holes stepping out 100 m along strike and +- 50 m below known mineralization…similar style major epithermal mines of the Sierra Madre (e.g. Palmerejo, Pinos Altos, La Cienga) located in the same regional volcanic belt as Amalia are known to have mineralization occurring over large vertical intervals between 600 and 750 m…to date the Radius/Pan American JV has tested to only a 200-m vertical component of the system…the high-grade mineralization will be followed along strike and to depth with further drilling…Radius has granted to Pan American the option to earn up to an initial 65% interest in Amalia by making cash payments to Radius totaling $1.5 million (U.S.), of which $100,000 has been received, and expending $2 million (U.S.) on exploration over 4 years…Pan American may earn an additional 10% by advancing the property to preliminary feasibility…Radius is up 13.5 cents at 27.5 cents through the first 30 minutes of trading on high volume…a major breakout in this play, technically and fundamentally…
5. The Dow is up 41 points after the first 30 minutes of trading…Apple (AAPL, NASDAQ) is up 5% after its earnings and revenue for Q1 beat expectations…the tech giant’s guidance for the next quarter was also better than expected…in Toronto, the TSX is 16 points lower while the Venture is flat at 611…GoGold Resources (GGD, TSX) has intersected 22.4 m averaging 4.1 g/t Au and 182.1 g/t Ag, including 3 m of 25.1 g/t Au and 534 g/t Ag, as drilling continues at its recently acquired Los Ricos Project 100 km northwest of Guadalajara…“We’re seeing wide zones of Gold-Silver mineralization in the core holes that are consistent with the historical RC drilling and mining grades. Our exploration team is busy digitizing the assay results from over 6,000 legacy channel samples collected in the cross-cuts, raises, drifts and stopes of the old underground mine workings. This data will be used to help direct the location of the deeper core holes beneath the current limits of the legacy drill holes,” stated Brad Langille, GoGold President and CEO…Kerr Mines (KER, TSX) has drilled 16.8 m grading 40 g/t Au, including 3 m of 98.3 g/t (drill hole 18-21–06), in an exploration step-out hole as part of a resource expansion program at its Copperstone mine in Arizona…the zone is of significantly higher grade and thickness than initially anticipated with a total effective mining width of 17.9 m…Osisko Metals (OSK, TSX) has cut 18.25% Zn and 1.31% Pb over 32.2 m in the X-65 area within the North zone of the Pine Point mining camp…
6. Canada Cobalt Works (CCW, TSX-V), the first junior to produce a Cobalt sulphate product from its own mine material during the electric vehicle revolution, has made important new breakthroughs in its proprietary and environmentally green Re-2OX process for the recovery of Cobalt, precious metals and base metals…further optimization of Re-2OX has enabled SGS Lakefield in Peterborough, Ontario, to recover Silver and Copper for the first time while also increasing recovery rates for Cobalt (>99%) and Nickel (99%)…in refining the Re-2OX process through a 1-step leach extraction, overseen by Canada Cobalt adviser Dr. Ron Molnar, SGS has recovered over 99% Cobalt, over 99% Silver, 99% Nickel and 99% Copper while removing 99% of arsenic from a composite of gravity concentrates taken from a fully crushed representative sample (73 kg) of Castle mine waste material…significantly, the company is now initiating the patent process for Re-2OX and is immediately building a new model of “streaming” opportunities involving the proprietary extraction method with respect to other battery metal projects while protecting the process…
7. Newmont Goldcorp (NEM, TSX) gets tough: The world’s largest Gold producer says it has suspended payments and social programs to workers, suppliers, and villages around its Mexico’s largest Gold mine in response to a blockade by a contractor and members of 1 of the 25 communities…Newmont Goldcorp suspended operations Monday at the Penasquito mine because of the month-long blockade…among the programs affected are elementary and high school grants, productive projects, trusts and social investments, the company said…mining companies around the world seek to earn the support of villages and towns near their mines by contributing to local development projects…Goldcorp’s 2017 Mexico operations generated operating costs, wages and benefits, community contributions and government payments of $837 million, from $1.4 billion in revenue, the company said in its most recent sustainability report…
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Comment by John - BMR — May 1, 2019 @ 10:33 am
If FCC keeps making dumb moves like they just did, 10 million shares of ECS, CCW will own the Northern Ontario Cobalt Camp sooner than we think…
Comment by Jon - BMR — May 1, 2019 @ 10:53 am