Gold has traded between $1,167 and $1,176 so far today…as of 10:50 am Pacific, bullion is off $2 an ounce at $1,168…Silver, at $16.68, has retreated 4 cents…Copper is also down 4 pennies at $2.66…Nickel is flat at $5.24…Crude Oil has slipped $1.11 a barrel to $50.68 while the U.S. Dollar Index has gained one-third of a point to 100.55 after testing new support at 100…
Amid continued selling in Gold ETFs, hedge funds and money managers shed their bullish Gold bets and increased their short exposure for the 3rd week in a row, according to the latest data from the Commodity Futures Trading Commission…Commerzbank says Gold’s net length is now at its lowest level in 9 months, down 14% from the previous week’s levels…overall bullish positioning is down almost 61% from its all-time highs seen in July…
TD Securities suggests the Federal Reserve will hike interest rates next week – just about everyone is expecting that – but nevertheless anticipates policymakers will signal that they won’t be overly aggressive, which could help Gold. “Last Friday’s somewhat tame jobs report gave precious metals a small boost from the lows, but was certainly enough to green light the Fed hike in December,” TDS says. “However, the current data is less suggestive that the Fed has enough ammunition to start pounding a more hawkish tone. We are expecting a more dovishly messaged hike in December. This would give precious metals a much-needed boost.”
U.S. services sector activity hit a 1-year high in November, with a surge in production boosting hiring, further evidence that the economy is on a strong enough footing for the Fed to pull the trigger on rates for only the 2nd time in a decade…
Interest rates futures imply that traders see a 93% chance the Fed will raise rates by a quarter point to 0.50-0.75% next week, according to CME Group’s FedWatch…
Meanwhile, traders are forecasting a 0% chance of the Bank of Canada increasing rates tomorrow which demonstrates how the U.S. and Canada are on diverging economic paths…if the Fed acts as expected next week, U.S. rates will push past Canadian rates for the first time since 2007…Canadian risks are still skewed to the downside, thanks in part to government policy choices, and Bank of Canada Governor Stephen Poloz likely won’t be a in position to hike until 2018…
Alberta Plunges 18 Spots On Global Ranking Of Best Places To Invest In Oil & Gas
Alberta continues to lose ground to Saskatchewan as an attractive place to invest for Oil and gas companies, according to the latest annual global survey of energy-sector executives by the Fraser Institute…
A report released today by the Fraser Institute said Alberta dropped a whopping 18 spots to 43rd out of 96 jurisdictions worldwide on a “policy perception index” which measures the extent that government policy discourages Oil and gas investment…
In 2014, Alberta ranked in the top 15, but fell to 25 last year…now it’s 43rd…will someone emerge to help make Alberta great again?…
“The Alberta government has introduced policies that are confusing and possibly costly, creating uncertainty for the Oil and gas industry, which can invest elsewhere,” said Kenneth Green, senior director of the Fraser Institute’s Centre for Natural Resources and co-author of the 2016 Global Petroleum Survey…
Alberta earned low marks for regulatory duplication and inconsistencies, high taxation and uncertain environmental regulations, the report said…
Saskatchewan rose from 7th to the 4th most attractive jurisdiction in the world to invest in petroleum exploration and production – behind only Oklahoma, Texas and Kansas…Rachel Notley is Saskatchewan’s MVP…
In Today’s Morning Musings…
1. Fresh zeal for Canadian Zeolite (CNZ, TSX-V)…
2. Probe Metals (PRB, TSX-V) finds new high-grade Gold zone at depth at Val d’Or East, expands program…
3. U-Turn – Uranium stocks head north (NexGen Energy update)…
4. The significance of a Ni-Cu-PGE-Au-Co system 11 miles southwest of Eskay Creek in a world class district…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
Re: GGI. Thanks as usual for great analysis. In particular concerning GGI. I hold shares and considering adding more. However, I am wondering even if it breaks out short term (and I think it will based on technicals) do you think it will fall back to this area again over January and February when activity (in particular drilling) on E&L will not be possible?? Or do you think it will form a new base at higher levels??
Thank you,
Foz
Comment by Foz1971 — December 6, 2016 @ 11:37 am
Jon, I mentioned yesterday that it was possible GGI would require financing. Didn’t receive any comments from anyone and BMR haven’t spoke about it lately. I know Regoci has been very astute when it comes to financing and has kept dilution to a minimum. GGI will definitely need cash to move their project forward and with the newest members of the team, Makela and Goldie there will probably options issued as well. What’s your thoughts?
Comment by Dan1 — December 6, 2016 @ 11:46 am
Dan1, if you look at the deal with the Chinese, the fact that Makela and Goldie are on board, and the significance of the E&L Project as a whole (not to mention Mexico), I would say GGI is in excellent shape in terms of having assurances of whatever it needs to move fwd right now…with I’m sure more dollars to be raised at significantly higher prices in 2017, keeping with Regoci’s practice of keeping dilution minimal. They’re in a very favorable position.
Comment by Jon - BMR — December 6, 2016 @ 11:59 am
CXO picks up property in Nevada, smart move to add a winter project…nice historical hole to chase—GS15-06 drilled in the unmined E zone returned 41.1 metres of 4.57 grams per tonne gold and bottomed in 1.52 metres of 1.66 grams per tonne gold (at depth of 105.2 metres). This hole has never been followed up.
Mr. Adam Travis reports
COLORADO OPTIONS NEVADA CARLIN GOLD PROPERTY FROM ELY GOLD
Colorado Resources Ltd. has entered into a definitive option agreement with Ely Gold and Minerals Inc. through their respective wholly owned U.S subsidiaries to acquire a 100-per-cent interest (subject to underlying royalties not to exceed 3 per cent) in the Green Springs property, located in eastern Nevada.
Adam Travis, Colorado’s president and chief executive officer, stated: “The Green Springs acquisition provides us with a year-round exploration opportunity in the top gold mining jurisdiction in the world, adding to our portfolio of significant holdings in the Golden Triangle of northwestern B.C. We have the opportunity during the winter and early spring prior to our 2017 B.C. field season to drill test along strike and beneath a past-producing mine that has seen little modern-day exploration since mining occurred in the late 1980s. Potentially higher-grade feeder structures in the underlying Pilot shale, which have been recognized as important hosts elsewhere in Nevada, also provide a compelling target. Numerous jasperiod bodies to the east of the historical mining location have returned greater than one gram per tonne gold from surface samples and have never been drill tested. Field due diligence work is ongoing, and we can quickly transition from surface work into initial drill testing as soon as permitting allows.”
The Green Springs property consist of 193 unpatented claims (1,416.2 hectares) held or under option by Ely, and is located in the eastern Great Basin approximately 50 miles south of Kinross’s Bald Mountain/Alligator Ridge mine and 35 miles west of Ely Nevada. It is a classic Carlin-style gold system that represents part of a growing number of Carlin-type systems and new discoveries located outside the main Carlin and Cortez camps in largely underexplored parts of Nevada.
From 1988 to 1990, U.S Minerals Exploration Company (USMX) mined 1.1 million tonnes at an average grade of 2.1 grams per tonne gold at a 0.7-gram-per-tonne cut-off from three shallow pits at Green Springs with heap-leach recoveries estimated at 80 per cent. Mining occurred at shallow depths (typically less than 30 metres) from the Lower Chainman shale formation. At least three other zones were left unmined when in 1988 USMX elected to move its mining operations.
Green Springs sat idle from 1990 with only minor surface programs completed between 2004 and 2008, until it was acquired by Ely in 2013. Ely later consolidated holdings in the district by acquiring surrounding ground held by Bronco Creek Exploration Inc. (a subsidiary of Eurasian Minerals Inc.) and completed an environmental assessment (EA) over 324.2 hectares of the property. This EA will allow exploration and drill hole permitting to be expedited in the main areas of interest. In 2015, Ely completed 14 reverse circulation (RC) holes totalling 2,065 metres, with eight out of the 14 drill holes returning intercepts greater than one gram per tonne gold. Drill hole GS15-06 drilled in the unmined E zone returned 41.1 metres of 4.57 grams per tonne gold and bottomed in 1.52 metres of 1.66 grams per tonne gold (at depth of 105.2 metres). This hole has never been followed up.
The option
Pursuant to the terms of the option, subject to TSX Venture Exchange approval, Ely has granted the exclusive option to Colorado to acquire Ely’s 100-per-cent interest in and to the Green Springs property by making the following payments and share issuances over four years.
Initial — $50,000 (U.S.) cash and the issuance of 300,000 common shares upon exchange approval;
Year 1 — $100,000 (U.S.) cash and the issuance of 500,000 common shares;
Year 2 — $200,000 (U.S.) cash and the issuance of 600,000 common shares;
Year 3 — $400,000 (U.S.) cash and the issuance of 850,000 common shares;
Year 4 — $2.25-million (U.S.) cash (the final option payment). Colorado may at its election make the final option payment 50 per cent cash and 50 per cent common shares based on a 30-day volume-weighted average price.
There are no work commitments or additional expenditures required other than Colorado’s obligation to maintain the underlying agreements and claim maintenance fees per year of approximately $50,000 (U.S.).
Upon exchange approval and the satisfaction of customary closing conditions, the transaction is anticipated to close within five days of exchange approval.
Qualified person
Dr. Jim Oliver, PhD, PGeo, is the qualified person as defined by National Instrument 43-101 who supervised the work program and/or preparation of the technical data in this news release.
We seek Safe Harbor.
Comment by Jon - BMR — December 6, 2016 @ 12:02 pm
The last line before the ggi chart should, in a nutshell, say it all. With the key words aggressively accumulate.i added. This one is going nowhere but up!!!!
Comment by Laddy — December 6, 2016 @ 12:13 pm
Seeing interesting trading in CEM.
Comment by Jon - BMR — December 6, 2016 @ 12:53 pm
Ksk up in volume, humm.
Comment by Laddy — December 6, 2016 @ 1:00 pm
Hey Jon … thx for your reply in previous post! I remember reading something somewhere on a ‘massive’ breakout is that most come back and test the breakout point.. but some stay at the top level and wait.. I chose to wait.. thus had no money for Zeolite.. and thus I am where I am..
I just hope Dave isnt right about this weed trend.. I hate it when he’s right:)
Comment by Jeremy — December 6, 2016 @ 2:47 pm
This new year will be the year that Cxo hits boys! Time to load the boat! Won’t be surprised to see this pop as fast as it dropped!!
Comment by Greg — December 6, 2016 @ 5:19 pm
Nice acquisition today as well by CXO, Greg, for a winter project to complement their flagship Heart of Gold Camp projects…it was really important to nail something down in that regard…I agree, they’re in a great position for big success with KSP next year after all that was learned last summer with some impressive results to go with it…2017 is breakout time for KSP…
Comment by Jon - BMR — December 6, 2016 @ 6:06 pm
Jeremy oh Jeremy, you did not get in on the zeolite craze. Second chance will be coming, hopefully a buck. As for the weed, Whether I am right or wrong, (I can handle being wrong despite what a person might think), I had a very interesting conversation over the weekend with a weed expert. First, I think we need to get more states involved, this will probably happen. So the weed craze could be around to stay. But prices may not go so weed crazy after a little while longer, meaning big gains quick. Anyway, the person I spoke to said the weed stocks that will do well are the ones that get involved in the real estate function of the business. It makes sense when you think about it. I know that ACB is one stock that is, another that has just gone through a major correction is NF. I am watching and learning this space. I like NF because of the share structure and the first earnings report will be out in Q1 of 2017. I know very little about other companies. But knowledge is power, right.
Comment by dave — December 6, 2016 @ 6:13 pm
Hi Jon,
Can you please provide us with an update on DBV? Do you still think is a good buy as stated before between 7-10 cents?
Thanks
Ryan
Comment by Ryan — December 6, 2016 @ 6:53 pm
Dave:) too funny … yeh I know… no disrespect but I have many tombstones of BMR’s recommendations… some have been good of course.. but I got very nervous in the last while so was very tardy in pulling any trigger..
and I have said previously the price typically comes back to test the breakout:) which would be close to 90ish!:) so I hope for that..
really didnt think it thru.. was too busy licking my weed wounds. for not taking a double in a week as a gift!!! was despondent!! 🙂
would much agree re the real estate functions… but I think as one said the tobacco companies will jump all over this… also heard an ad on TV for a major pharma company touting their pot ‘recipe’ … its only starting.. and the gov stuff in CDA will be released in Dec.. McLennan’s report..
will be a catalyst for sure…
we continue to hope yes??? like the second coming:) hope you are enjoying Peru… no winter there eh!!
Comment by Patricia — December 6, 2016 @ 8:31 pm
Ryan, nothing to update other than what we’ve already stated—-DBV has hit some nice mineralization to extend the Lisle Zone deposit, lots of samples from hole #26 in the lab, core photos look great. They may have stepped out considerably to other areas of the property which raises the possibility of a new discovery. Stock should strengthen into year-end IMHO, especially after financing is complete.
Comment by Jon - BMR — December 6, 2016 @ 10:11 pm
Dave – sorry forgot to login.. have BNN on today for some reason… every biz commercial is cannabis related ..so far… newest one was emblem cannabis… internet of the 2016’s:)
Comment by Jeremy — December 7, 2016 @ 6:55 am