Gold has traded between $1,161 and $1,179 so far today…as of 9:30 am Pacific, bullion is down $8 an ounce at $1,168 after a better than expected U.S. jobs report for May…Silver is off a nickel at $16.02…Copper fell to a 6-week low of $2.66 but has since recovered to $2.69, up a penny…Copper stockpiles are near 14-month highs as tracked by the London Metal Exchange…Crude Oil is down slightly at $57.94 while the U.S. Dollar Index has jumped three-quarters of a point to 96.43…
PwC’s latest global mining industry report, Mine 2015, shows that the combined market capitalization of the top 40 mining companies in the world plummeted 16% in 2014 to $791 billion – the same level it was 10 years ago…
Gold didn’t get the help it needed from this morning’s jobs report – U.S. employers ramped up hiring last month and wage gains accelerated, suggesting the labor market has stabilized and is gaining momentum after a weak start to 2015…we’ll see if that momentum can be sustained…non-farm payrolls rose a seasonally adjusted 280,000 in May, the Labor Department reported this morning, led by gains in professional and business services, leisure and hospitality and health care…the unemployment rate, which is obtained from a separate survey of U.S. households, was 5.5% in May, up slightly from 5.4% the prior month…
While private sector average hourly earnings aren’t surging, they modestly exceeded expectations (up 8 cents or 0.3% in May to $24.96)…
Meanwhile, Canada’s employment rolls surged in May, with about 58,900 new jobs created overall – most of those being full-time positions and mainly in the private sector…the unexpectedly large jump in employment was the best performance since October 2014 when 62,200 more people found work…the previous big gain was 93,000 in April 2012, Statistics Canada said today…last month’s net new job total surpassed economists’ forecast for an increase of about 10,000 positions…
Oil Update
No surprise here – OPEC has decided to maintain its official production levels (30 million barrels per day) for at least another 6 months, Saudi Arabia’s Oil Minister Ali al-Naimi announced today…oversupply has dominated markets following the group’s decision not to cut production at its last meeting in November…
OPEC members have been pumping Oil at full tilt in recent months, with analysts suggesting they have in fact breached their 30 million-a-day ceiling…Saudi Arabia in particular has deep pockets and continues to focus on market share while trying to inflict some pain on regional rival Iran and put the squeeze on marginal North American shale producers…
Russia In Focus At Upcoming G-7 Meeting
President Obama plans to urge European leaders this weekend not to waver from sanctions against Russia, pursuing what the White House is calling a “steady as she goes” policy while accusing Moscow of flagrantly violating a ceasefire agreement in Ukraine…for the second year in a row, Russia’s moves on Ukraine are looming over the G-7 Summit which is bringing leaders of the world’s largest industrialized democracies to Germany for 2 days of meetings starting Sunday…the gathering comes a year after the leaders booted Russian President Vladimir Putin from their group in protest over the Ukraine crisis that now has killed more than 6,400 people…
Canadian Prime Minister Stephen Harper told the Associated Press yesterday that Russia should never be allowed back in the G-7 as long as Putin is President…
Cyber-Espionage?
This is being described by U.S. officials as one of the largest known thefts of government data in history – The Wall Street Journal reported this morning that U.S. officials suspect that hackers in China stole the personal records of as many as 4 million people in one of the most far-reaching breaches of government computers…the FBI is probing the breach, detected in April at the Office of Personnel Management…the agency essentially functions as the federal government’s human resources department, managing background checks, pension payments and job training across dozens of federal agencies…
U.S. 10-Year Treasury Yield Vs. Gold
U.S. Treasuries are plunging today, sending yields soaring, after the monthly jobs report came in stronger than expected…
This 2.5-year weekly chart shows how the TNX (10-Yr Treasury yield) has broken out above a downtrend line in place since the beginning of last year…Fib. resistance at 2.32% has also been cleared today (currently at 2.39%)…since late last year, Gold has mostly moved in the opposite direction of the TNX…
Today’s Equity Markets
Asia
China’s Shanghai Composite surged another 1.5% overnight, reaching a fresh 7-year high as it closed the week at 5023…
Europe
European markets were down moderately today…Greece had a 300 million euro payment due to the International Monetary Fund today but it informed the fund yesterday that it would bundle 4 payments due this month into 1 lump payment of 1.5 billion euros, which is due June 30…so they’ve kicked the can down the road for a few more weeks…
North America
The Dow is down 54 points as of 9:30 am Pacific…in Toronto, the TSX is off 28 points while the Venture is bucking the trend and is up 4 points to 688…
VANC Pharmaceuticals Inc. (NPH, TSX-V) Update
VANC Pharmaceuticals (NPH, TSX-V) has repeatedly tested Fib. resistance at 55 cents since breaking above a short-term downtrend line in early April…the 50-day SMA has flattened out and is now just starting to turn higher, while RSI(14) has formed a bullish “W”…this is looking good but patience with this one has been the key over the past couple of months…
NPH is off a penny at 54 cents through the first 3 hours of trading…
Fairmont Resources Inc. (FMR, TSX-V) Update
Fairmont Resources (FMR, TSX-V) announced this morning that drilling is expected to commence next week at its Forestville quartzite property in Quebec…interestingly, while doing reconnaissance work in preparation for drilling, geologists identified a new quartzite zone located 2 km east of the main quartzite horizon…the new zone is exposed on surface for a minimum 25 m by 300 m, and is in the vicinity of a previously reported sample that returned 99.91% SiO2…the chemical and physical properties of the quartzite at Forestville are being tested as a potential raw material source of high-purity glass, fibre optics, ferrosilicon and silicon metal…meanwhile, Fairmont is continuing discussions with potential customers for its Buttercup dense aggregate property which is fully permitted for production…
FMR is off a penny at 15 cents as of 9:30 am Pacific…
Fission 3.0 Corp. (FUU, TSX-V) Update
John first alerted us to bullish technical developments in the chart for Fission 3.0 (FUU, TSX-V) near the end of April when the stock was trading at 11.5 cents…FUU is performing according to script with buy pressure (CMF) still increasing…RSI(14) held key support at 50% and continues to climbing higher…
Fission 3.0 is armed with about $5 million in cash and a strategic portfolio of uranium properties in the Athabasca Basin upon which to build shareholder value in the coming months…
FUU is unchanged at 14 cents as of 9:30 am Pacific…
Skeena Resources Ltd. (SKE, TSX-V)
An interesting development in the market this week that most investors probably overlooked was the announcement Wednesday that Skeena Resources (SKE, TSX-V) has closed $8.1 million in financings, more than originally anticipated, to be directed primarily toward advancing the company’s flagship high-grade Gold project, known as Spectrum, which is about 75 km southeast of the Sheslay district in northwest British Columbia…keep in mind, the chairman of this company is Ron Netolitzky who was recently inducted into the Canadian Mining Hall of Fame for his two past successes in NW B.C. – the Snip and Eskay Creek mines…
We’ll get into more detail regarding Spectrum next week, a fascinating project that features high-grade Gold zones within a broader halo of Cu-Au porphyry mineralization…the company is targeting 2–3 million ounces grading 12 g/t Au in multiple closely spaced, steeply dipping parallel zones…an historical resource (please note that this precedes NI-43–101 and as such is not to be relied upon) outlined 614,000 tonnes grading 12.3 g/t Au (244,000)…the deposit was drilled to an average of only 100 to 150 m below surface, and the East Creek target approximately 1.5 km to the north of the Central Zone appears very promising – quite possibly an extension of the system…
Below is a map from Skeena’s web site showing the location of the property…Skeena completed the Spectrum acquisition late last year…the project was inactive for more than 20 years due to a park and right-of-way issue that has now been resolved…
The company anticipates drilling this summer…we suggest our readers put Skeena on their radar screens and consider taking a position only after drill permits have been received…
SKE 2-Year Weekly Chart
This 2-year chart shows how SKE has strong support at 6 cents (Fib. level) which is also just above the bottom of a downsloping flag…if they can drill beginning in July as hoped (again, permits are pending), SKE could be a strong performer during Q3…
Note: Jon holds a share position in FMR.
SKE – another potential deposit to be mined in northern BC near The Red Chris Mine . Even with the CDNX in a funk , savvy investors have to be taking notice and most likely picking up shares of the Jrs. in the area. It will most likely take a major mining company to become involved with one of these Jrs. before it attracts the attention of the general public and the institutions that have been sitting on their hands for quite some time.
Comment by Les — June 5, 2015 @ 9:24 am
What’s fascinating about Spectrum deposit, Les, is the mix here – high-grade Gold, plus what appears to be a Cu-Au porphyry system, in Stuhini volcanics…if you look at the regional map, you can see the NW/SE trend going from Spectrum, though the Sheslay district, and to the past producing high-grade Golden Bear mine…what I’m saying, and quite a few geologists have mentioned this, is that somewhere in the Sheslay district – who knows where – there’s a very good chance of finding a high-grade Gold deposit (there is historical info regarding high-grade Gold showings along the Hat/Hackett border)…
Comment by Jon - BMR — June 5, 2015 @ 9:53 am
Nothing yet on GBB? Bit dissapointing!
Comment by Arjan — June 5, 2015 @ 10:23 am
We’re working on it, Arjan, very busy. As good as the Granada deposit looks, Arjan, the bottom line is this – the company needs the permit. Right now that’s all that matters. It’s all about the final permit (CA).
Comment by Jon - BMR — June 5, 2015 @ 10:25 am
Jon, any updates on WRR? Is drilling going to start soon? What’s been the delay?
Thanks
Comment by Jeff — June 5, 2015 @ 11:08 am
Jon, did you see the La Patillo drill core on GGI’s website? Not sure if this is recent or last years core, but visuals look pretty good and looks like a fairly long intersection at least a 100 meter drill hole. Any way nothing from Rodadero in 3 months and nothing from the Grizzly forever.
Comment by Dan — June 5, 2015 @ 12:04 pm
Dan
very disappointing the lack of any kind of news from GGI, there has to be something going on that would at least warrant a letter to shareholders or something, just an update, just because of the FT shares doesn’t mean you cant keep your loyal shareholders updated….. very disappointing.
Comment by Greg — June 5, 2015 @ 12:12 pm
What happened to TDC?
Comment by Theodore — June 5, 2015 @ 12:48 pm
Well, just heard from GGI on the Grizzly.
Read the news on Garibaldi web site (Jun 5, 2015)
Comment by Dan — June 5, 2015 @ 1:11 pm
Just spoke to Regoci re: this news, Greg. I have a hunch today is just the start. We should be hearing something from Mexico very shortly.
Comment by Jon - BMR — June 5, 2015 @ 1:26 pm
Jon, did you ask him if the core photos of La patillo were recent?
Comment by Dan — June 5, 2015 @ 1:31 pm
Jon – BMR . Where can one access a regional map of the Sheslay district. Could you please post a link or site . Thanks
Comment by Les — June 5, 2015 @ 1:50 pm
Guys take a look at IGO. Management that have done very well in the past and the company trades at less that half it’s cash value.
Comment by Ryan — June 5, 2015 @ 2:08 pm
Jon
I’ll just have to keep on complaining, maybe we will get more news ,lol
Sure hope your hunch is right
What did Steve have to say about the news release or can you share that?
Thanks
Comment by Greg — June 5, 2015 @ 2:10 pm
Guys, take a look at IGO. Successful management and trading at half it’s cash value.
Comment by Ryan — June 5, 2015 @ 2:11 pm
Sorry for the duplicate post.
Comment by Ryan — June 5, 2015 @ 2:11 pm
Les, GGI web page has a good map of the area.
Comment by Robert — June 5, 2015 @ 3:15 pm
Dan the drill core were recently added, the first picture is probably the extension of that 81g/t over one meter.
Comment by Martin — June 5, 2015 @ 4:29 pm
nice news today, they have acquires the wolverine showing. Looking forward to read that 43-101. Should be out soon now.
Comment by Martin — June 5, 2015 @ 4:38 pm
regarding-IGO-V.. looks very goodThanks. Ryan!!
Comment by Greg J. — June 5, 2015 @ 6:03 pm
Jon any comment on friday new, don’t you think it would be smart form GGI to option some of the claims at grizzly, for instance grizzly west, to another cie. It would help them move think foward. So much to do over there!
Comment by Martin — June 6, 2015 @ 5:45 pm
Martin, GGI has held on to every square inch of its property since they first staked the Grizzly, and of course they’ve also expanded the package over the last year-and-a-half. I believe they see this as so valuable, they don’t want to option any parts of it to anyone – for now that’s probably a wise strategy. The Golden Bear claims – nice pick-up, also road access along with high-grade Gold showings. Those claims have been coveted for a couple years by various parties – they would have come at a much higher price a year ago.
Comment by Jon - BMR — June 6, 2015 @ 6:02 pm