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June 7, 2016

BMR Morning Market Musings…

Gold has traded between $1,234 and $1,245 so far today…as of 11:00 am Pacific, bullion is flat at $1,254…Silver is off 8 cents at $16.36…Copper has tumbled 6 cents to $2.07…Crude Oil, hitting a nearly 8-month high today, is up 37 cents at $50.06 while the U.S. Dollar Index has slid one-tenth of a point to 93.86

China’s Gold reserves were unchanged at 58.14 million ounces at the end of May, from the end of April, according to a statement from the country’s central bank today…

Holdings in the world’s largest Gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, fell slightly to 881.15 tonnes yesterday but have increased 12.5 tonnes over the past week…

BMO Capital Markets remains bullish on Gold for the 2nd half of 2016, commenting that “pullbacks should be viewed as buying opportunities.  The underlying driver for our positive view on Gold prices remains safe-haven demand in an uncertain global economic environment. We believe focusing on the Fed alone is simplistic and only drives very near-term sentiment and volatility. We believe the potential impact of sluggish global growth on the U.S. economy should not be ignored. Despite the central banks in Europe, Japan and China recently lowering rates, money supply growth has stalled along with inflation. Global industrial output remains lackluster.”

Britons Leaning Toward “Brexit”?

Three new large-scale opinion polls by different companies published Sunday and yesterday showed the Vote Leave side with a lead of between 3 and 5 percentage points, pushing it beyond the margin of error for the first time in the closely fought campaign over the UK’s continued membership in the EU…the apparent surge in support for a so-called “Brexit” is due to a growing number of Britons seemingly swayed by the argument that their country needs to quit the EU in order to take back control of its borders and immigration policy, a theme that’s also resonating with American voters leading up to November’s U.S. elections…keep in mind, however, that British pollsters took a drubbing after last year’s general election where none predicted the eventual outcome which was a majority victory for David Cameron’s Conservatives…

Government Greed/Intimidation As Kyrgyzstan “Turns Up Heat” On Centerra Gold

The left always bemoans “corporate greed” on a global scale but it conveniently ignores government greed which is on great display in North America and throughout the world…the Central Asian state of Kyrgyzstan, dealing with a deteriorating economy, wants more from the prized Kumtor Gold mine and has been “turning up the heat” on Centerra Gold (and others) in recent weeks for a bigger slice of mining profits…this greed has also crossed all legal boundaries…in the past 5 weeks, the Canadian Gold miner and its investors have been attacked by Kyrgyzstan authorities on numerous fronts…Centerra was fined around $100 million for “environmental damage” by a court in Kyrgyzstan, another regulator filed a $230 million lawsuit against it while its local offices have also been raided…yesterday, Centerra announced that the Kyrgyz general prosecutor’s office has launched a criminal case over allegations that certain company managers abused their authority and engaged in commercial transactions that harmed the state…the company has initiated international arbitration proceedings to challenge the Kyrgyz Republic’s claims and actions, while it’s also evaluating the full range of additional options for dealing with the government’s over-reach…CG is under some additional selling pressure this morning, down 36 cents at $6.83 as of 11:00 am Pacific

In today’s Morning Musings…

1.  Homestake Resource (HSR, TSX-V) has a big new neighbor…

2.  Lithium plays dominate the Venture volume leaders this morning…

3.  A 2-cent stock coming out of hibernation with a Quebec Gold play…

4. A Zinc junior worth having on one’s radar screen…

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15 Comments

  1. Also Macarthur (MMS) is having a great day on big volume, hopefully something is up there.

    Comment by Danny — June 7, 2016 @ 10:46 am

  2. CT – another new Li deal – in Salta, Argentia. 100% interest. Li + bismuth + tantalum. Was a past producing (small scale) tantalum+niobium mine.
    up 20% on news

    Comment by david — June 7, 2016 @ 10:58 am

  3. NEWS…..NTY up 170%…TODAY!!!!!

    Comment by John - BMR — June 7, 2016 @ 11:42 am

  4. Nice rebound for MMS today…it failed in its first attempt to break thru the .15 resistance but the story is strong…

    Comment by Jon - BMR — June 7, 2016 @ 12:10 pm

  5. CT – is up 38%.

    Yep, NTY made some money for some people. Looks like the Canadian lithium stocks are out performing Nevada area for now.

    Comment by dave — June 7, 2016 @ 12:22 pm

  6. Jon what are your thoughts on the sell off with Dbv? Shaking the tree?

    Comment by Sameer — June 7, 2016 @ 1:02 pm

  7. Nice day for NTY with those surface samples from the NWT…bolsters the case for Athabasca Nuclear with its recently acquired Torp and Phoenix claims in Nunavut and the NWT…

    “Past channel sampling work on this spodumene-bearing pegmatite (Torp) has returned 6 metres grading 4.5 per cent lithium oxide and 7 metres grading 3.3 per cent lithium oxide. The channels were located 78 metres apart and orientated perpendicular to the north-south strike of the pegmatite.

    “Lithium is contained in the mineral spodumene, high concentrations of which are observable within the McAvoy pegmatite over a 110-metre strike length with widths of 10 metres to 15 metres. Testing the downdip and additional along-strike potential of the McAvoy pegmatite will require a program of ground geophysics and drilling. Mineralogical analysis, completed by SGS Canada Inc., of a composite sample indicated excellent liberation of spodumene (99 per cent) and microprobe analysis confirmed the spodumene is exceptionally pure and clean of major elements, particularly iron and manganese.

    “The McAvoy pegmatite is a potential source of premium-priced rare technical-grade spodumene.”

    Comment by Jon - BMR — June 7, 2016 @ 1:39 pm

  8. Extremely High-Grade Lithium Assays at Surface from 92 Resources Corp. and Alset Energy Corp.5 hours ago by Accesswire ZURICH, SWITZERLAND / ACCESSWIRE / June 7, 2016 / Today, Stephan Bogner from Rockstone Research published a report on 92 Resources Corp. (TSX.V: NTY) and Alset Energy Corp. (TSX.V: ION). Today, 92 Resources Corp. published the assays from a first sampling program on its fully owned Hidden Lake Lithium Project near Yellowknife, NWT, Canada. The results confirm extremely high-grade lithium right at surface: 1.65%, 2.45%, 2.69%, 2.89% and 3.06% Li2O (average: 2.54 Li2O). For comparison: The Whabouchi Deposit in Quebec from Nemaska Lithium Inc. (market capitalization: $390 million CAD) averages 1.5% Li2O.

    Interestingly, there is a comparable company by the name of Alset Energy Corp. which published similar high-grade lithium assays from its hard-rock lithium property in Ontario 9 trading days ago (also from a first surface sampling program): 0.95%, 1.4%, 1.45%, 1.47% and 1.75% Li2O (average: 1.4% Li2O). Thus, the rocks from 92 Resources are 81% higher graded with lithium than Alset. 6 trading days ago, Alset published more assays from its sampling program: 1.23%, 1.44%, 2.19% and 6.38% Li2O, thus the total average is now at 2.03% Li2O and 92 Resources has 25% higher grades than Alset. During the last 9 trading days since publication of the first assays, Alset’s stock increased strongly with high volumes and has a current market capitalization of $27 million CAD. For comparison: 92 Resources published higher grades today and has a current market capitalization of $3 million CAD.

    The full research report can be accessed with the following links:

    English (PDF): rockstone-research.com

    German (PDF): rockstone-research.com

    Comment by TheSkipper — June 7, 2016 @ 2:26 pm

  9. VENTURE UP 10PTS ALREADY INTO 2 MINS OF TRADING???!!

    Comment by STEVEN1 — June 8, 2016 @ 5:33 am

  10. Yes, indeed, 708 resistance is crumbling…

    Comment by Jon - BMR — June 8, 2016 @ 6:02 am

  11. CXO – back up to 48 cents in a heart beat this morning. Wonder if the drill is starting to turn? If they hit visible gold which is very likely given the historic high grade intercepts then look out!

    Comment by Dan1 — June 8, 2016 @ 6:49 am

  12. That heart is going to start beating a whole lot faster very soon, Dan1…

    Comment by Jon - BMR — June 8, 2016 @ 7:09 am

  13. the Hecla news is interesting – as Hecla hasn’t done exploration in years – that I am aware of.
    wonder if they are in JV talks with HSR

    Comment by Mmurphy — June 8, 2016 @ 7:50 am

  14. Clearly something going on, and DV is feeling the effect as well…

    Comment by Jon - BMR — June 8, 2016 @ 8:14 am

  15. HSR – interesting day so far. 90% of selling is by RBC. – 90% of buying is by Anon. hmmmmmmmmm

    Comment by dave — June 8, 2016 @ 8:57 am

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