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March 3, 2017

BMR Morning Market Musings…

Gold has traded between $1,223 and $1,235 so far today…as of 10:45 am Pacific, the yellow metal is down $8 an ounce at $1,226…Silver is off 2 pennies at $17.70…Copper is flat at $2.69…Nickel has jumped 10 cents to $4.96…Crude Oil is 51 cents higher at $53.12 while the U.S. Dollar Index has fallen one-third of a point to 101.81

Gold is on track for its biggest weekly loss in nearly 4 months as speculation grows that the Federal Reserve will press ahead with an increase in interest rates at its March 1415 meeting…the probability of a Fed move in less than 2 weeks grew to nearly 80% by late yesterday from 66% mid-week, Fed funds futures showed, after hawkish comments from New York Fed chief William Dudley and San Francisco Fed President John Williams…

Gold bugs should be hoping for a rate increase at this next meeting – following the only 2 rate hikes over the past decade, big upswings have occurred in bullion and in Gold stocks…

Moments ago, Yellen gave a strong signal that another hike is coming this month when she stated in a speech at the Executives Club in Chicago, “We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect. Indeed, at our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.”

Bring it on, Ma!…give us another rate hike!…

Meanwhile, Franco-Nevada (FNV, NYSE) chairman Pierre Lassonde said today that Fed rate hikes are “meaningless”, that Gold already bottomed late last year and will continue its overall upward trend…we believe he’s right!

Data just in – U.S. drillers added Oil rigs for a 7th week in a row, extending a recovery into a 10th month as energy companies, including Exxon Mobil, boost spending plans to take advantage of a Crude price recovery…

In Today’s Morning Musings

1. New technological advances in mining on display at PDAC

2. Money lines up behind CSR as its activity intensifies in the Greater Cobalt Camp – you know what that means!…

3. This stock could soon fly even higher than its drones…

4. Daniel’s Den this BUD’s for you!…

Click here to receive, via email, BMR’s “Who’s Who” List of the Greater Cobalt Camp – the top dozen or so companies active in the district.

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23 Comments

  1. hopefully ggi picks up again next week looks like were headed sub.10 soon

    Comment by bcguy — March 3, 2017 @ 12:48 pm

  2. hopefully ggi picks up next. looks like sub .10 at the rate it`s going

    Comment by bcguy — March 3, 2017 @ 12:50 pm

  3. Picked up CSR shares today. Hopefully the pp closes fast and we go back up!

    Comment by Dan1 — March 3, 2017 @ 12:51 pm

  4. Well, nice bounce back for the venture, and don’t you just love what the philippine government is doing to the nickel miners, this bodes well for the next E&L BAY…!will Monday be MODEL day!!

    Comment by Laddy — March 3, 2017 @ 1:27 pm

  5. Yellen..
    http://www.kitco.com/news/2017-03-03/Gold-Pares-Losses-As-Yellen-In-Q-A-Appears-to-Back-Pedal-On-March-Rate.html
    hmmmmm

    Comment by Jeremy — March 3, 2017 @ 1:42 pm

  6. WHy am I so impatient…. ??? lets get this party started!!!!

    Comment by Jeremy — March 3, 2017 @ 3:05 pm

  7. Jon

    Have you heard anything more regarding the Golden Fountain Resources group, if they are going to have any financial involvement going forward with GGI..

    Comment by greg — March 3, 2017 @ 3:14 pm

  8. I’m with you Jeremy seems like the longest winter ever…

    Comment by Greg — March 3, 2017 @ 7:06 pm

  9. Good recovery in TSX Venture today! We needed a bounceback today. Right before PDAC!

    Comment by STEVEN1 — March 3, 2017 @ 7:57 pm

  10. Major support zone is 800 to the 780’s, Steven1, so the bargain hunters started to step in aggressively just above 800 when the Index touched 806 in morning trading.

    Comment by Jon - BMR — March 4, 2017 @ 7:46 am

  11. CSR will be at the PDAC tomorrow. Hope their presence will give them more exposure to big institutional investors.

    Comment by Dan1 — March 4, 2017 @ 7:56 am

  12. They certainly don’t need them for their current financing, Dan1, which is essentially all spoken for, but you’re right – institutional investors are big on the Cobalt space right now and CSR is going to grab their attention. I see them getting their hands on CSR paper at higher prices a little later.

    One of the distinguishing features of CSR is its ability, through a process called reaction oxidation that leaches all metals into one solution, to obtain exceptionally high recoveries of Silver, Cobalt and other metals – they haven’t talked about it up to this point but it’s something that Basa helped perfect during his time with Agnico Eagle in the 1980’s when they were a producer in the region. He has the formula. No one understands the metallurgy of this district better than Basa – big advantage for CSR, not to mention they have full access to the main adit at Castle and two very strong past producers in the Castle and the Beaver where it’s believed that much Cobalt and Silver was left behind. Really strong play, speculatively and fundamentally, IMHO.

    Comment by Jon - BMR — March 4, 2017 @ 8:15 am

  13. Hello Jon,

    Did you also read Frank’s comments on the GBB/GGM forum. Like ‘silence before the storm’. And his recent contact in Denver with Gekko. He is also meeting with them and other business contacts at PDAC. He mentuoned that the paperwork and parties involved did take more time perhaps than expected. But he is expecting that this all will come to a closure shortly after PDAC. My guess this has to to with financing and a mill/ milling? What do you make out of this Jon. Seems with GGM and CSR and his background/expertise Frank Basa has 2 great plays in place to benefit in the near future. Have a great weekend.

    Regards,

    Arjan

    Comment by Arjan — March 4, 2017 @ 8:35 am

  14. Arian
    How and where do you access this forum that you mentioned above
    Thanks

    Comment by Greg — March 4, 2017 @ 9:48 am

  15. Greg.. the old GBB and temporary GGM websites have been removed
    and the new GGM website has no link as yet.. so just google GBB forum
    and log in..

    Comment by bob — March 4, 2017 @ 12:28 pm

  16. Jon

    did you say that GGI and CSR would have a booth at PDAC?
    don’t see either of them on the attendee’s list as of 2/2/8/2107?

    Comment by greg — March 4, 2017 @ 2:12 pm

  17. I did not say that, Greg; someone else commented about CSR. Ray Goldie and I believe Everett Makela are both at PDAC, and of course Basa for CSR is there as well. CSR could be sharing a booth, I’m not sure.

    Comment by Jon - BMR — March 4, 2017 @ 2:31 pm

  18. Ok thanks Jon

    Comment by GREGH — March 4, 2017 @ 3:08 pm

  19. http://www.goldbulliondevelopmentcorp.com

    and then forum

    Frank Basa, CSR/GGM is at PDAC in person. He mentioned not with a booth though. And he seems to have business meetings planned ahead…

    Comment by Arjan — March 4, 2017 @ 3:58 pm

  20. Thanks Arjan

    Comment by Greg — March 4, 2017 @ 7:13 pm

  21. Arjan
    Who is Gekko in Denver you mentioned above?
    Thanks

    Comment by Greg — March 4, 2017 @ 8:23 pm

  22. Gekko is a company from Australia building mills. Frank has a for a long time contact with them. I got the feeling something could be brewing in this direction knowing he has met them 2 weeks ago in Denver and again on PDAC.

    Comment by Arjan — March 4, 2017 @ 11:42 pm

  23. Thanks again Arjan

    Comment by Greg — March 5, 2017 @ 8:43 am

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