Hour 2 – A Focus On Precious Metals – Gold’s outlook, an M&A transaction, and how to analyze drill results
In this hour we are focusing on the precious metals sector. Everything from gold and GDX technicals to junior stocks and exploration drilling programs.
Please let me know what you think of the format of this weekend’s show. I love hearing from all of you. My personal email address is Fleck@kereport.com.
I hope you all enjoy the second hour of the show!
- Segment 1 – Doc kicks off the second hour by sharing his outlook for GDX, gold, and silver. We focus on when the best time is to move into the stocks on your watch list.
- Segment 2 – Dave Erfle, Founder of the Junior Miner Junky joins me to discuss the Yamana (TSX:YRI – NYSE:AUY) takeover offer of Monarch Gold (TSX:MQR – OTC:MRQRF). We focus on the value attributed to the gold ounces in the ground compared to past M&A deals as well as a possible bidding war.
- Segment 3 – Steve Todoruk, Investment Executive at Sprott Global outlines the key aspects to focus on when analyzing drill results. Especially when it comes to new discoveries and expanding on the initial discovery holes. If you want Steve’s thoughts on any companies in your portfolio you can email him at STodoruk@sprottglobal.com.
- Segment 4 – Newcore Gold (TSX.V:NCAU – OTC:PRCNF) just announced it has increased it’s current drill program from 8,000 meters to 58,000 meters – a 50,000 meter increase. Luke Alexander, President and CEO of Newcore Gold joins me to outline the targets and overall goal for the drill program. Click here to visit the Newcore site and follow along in the Company Presentation.
This format with a new focus in hour2 is very much appreciated, thank you.
Benchmark drills 128.1 m of 3.02 g/t AuEq at Lawyers
2020-11-06 16:23 ET – News Release
Mr. John Williamson reports
BENCHMARK DRILLS 128.10 METRES OF 3.02 G/T GOLD EQUIVALENT AND SUBSTANTIALLY EXPANDS THE CLIFF CREEK SOUTH AREA
Benchmark Metals Inc. has released new drill results from the Cliff Creek zone where it has defined gold-silver mineralization from surface over a 1.2-kilometre strike length, up to 200-metres width that extends to a vertical depth exceeding 550 metres. The volume expansion has the potential to positively impact the new mineral resource estimate expected in Q1 2021. Benchmark’s flagship Lawyers gold-silver project is located in a road accessible area of the Golden Horseshoe in north-central British Columbia, Canada.
Doc, are you driving down to the snake pit in Bloomington for the Indiana-Michigan game?
Is this the year that the Hoosiers finally beat Wolverines? Go I.U. !!!
I believe they do beat Michigan. Jim Harbaugh is toast after this year. The drums are starting to beat.
Gold’s $1,980 has been identified as key resistance by TD Securities commodity strategist Daniel Ghali, who sees gold as overbought for the moment.
“The reason behind that is because gold prices outperformed real rates,” he told Kitco News on Friday. “The most likely outcome is Biden presidency with Republican Senate, which means less fiscal stimulus and gridlock in the near term.”
Sounds like TD agrees with Doc.
The retard, does not know what he is talking about……
If, they get ANY Stimulus package at all…..gold is a solid long term hold……
Just what are they going to do with the stimulus money..????????
Just exactly what they did with the last stimulus money……going to the big boys….first, and the sheeple are left with the DEBT……
Bet against the DEBT……it is not going down one dime……
Gold and the whole sector looks good but I wouldn’t be surprised if we see a sharp (but healthy) pullback on Tuesday.
Gold weekly:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=4&mn=3&dy=0&id=p75209161732&a=712774405
Textbook goodness shouldn’t be ignored:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=1&dy=0&id=p40677431355&a=825179902
Last quarter and this quarter, the quarterly upper Bollinger Band has been strong SUPPORT for gold. There was only one other quarter in which that Bollinger Band so precisely marked support and that was the first quarter of 1980. Gold never spent a single entire quarter above that Bollinger Band for the last 40 years.
Gold is also about to finish above the quarterly Bollinger Band for the 7th straight time. Again, you’d have to go back to the 1970s to find the last time that happened. 4 times was the record during the 1999-2011 move (2007-2008).
Bottom line: Gold has power right now that very few recognize or understand.
Prediction: If the USD closes November below 91.75, it will drop to 88.xx in the first quarter of next year and send gold way above its recent all-time high.
And if the USD bulls don’t “win” next week, we will probably see 88 before this year is over.
https://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=6&mn=3&dy=0&id=p59358528841&a=788644509
The odds are extremely good that the September low (.382 Fib retracement) was THE low:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=0&mn=8&dy=0&id=p47808565580&a=816617331
The miners now need to break out versus gold:
https://stockcharts.com/h-sc/ui?s=%24HUI%3AGLD&p=D&yr=1&mn=3&dy=0&id=p73638457761&a=834570331
And SILJ:GLD suggests that they will:
https://stockcharts.com/h-sc/ui?s=SILJ%3AGLD&p=D&yr=1&mn=0&dy=0&id=p02913494381&a=836612833
Can we ever , not be surprised………..healthy pullback…..for gold, …., I would hope gold would go sideways, and have silver play catch up and break $49 overhead resistance., and fill that cup……hopeful thinking I know….I am.Way to optimistic….. 🙂
I am Waiting for Glen to fill us in………. 🙂
Jerry, the pullback I’m talking about will be meaningless and quick, probably a day or two. Such action is as natural as can be so beware anyone who thinks it should, one day, disappear.
Thanks Matthew……….I am positive on gold, silver, and I think you guys are spot with the miners…..
Btw……..what is your gut feeling on silver……no commitment here, …just guy feeling,
Or….Ok, how about you chartist thinking cap….either way…. 🙂
I like silver a lot more than gold because of the leverage that it offers. Since the March low, gold is up 34% and silver is up 120% and since the September low, gold is up 3% while silver is up 18%. Now that the 3 month correction is almost certainly over, silver looks ready to move up strongly versus gold once again:
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=D&yr=1&mn=0&dy=0&id=p45395122624&a=751955672
Hey Matthew….agree silver is the better leverage play. I’ve got Impact Kootenay and Brixton as my larger plays. Brixton has lagged a little on the recent rally but it looks like it’s ready to break again….nice flag ……the other two I’m expecting new 52 highs on this run up
Matthew….thanks for the above
Since I screwed up the question………..I should have ask you for a target date on the silver price…..When , approximately , do you see silver filling the cup….and going over $49 per oz….
Just your gut feeling, and no one should hold you to the question….thanks….
Wolfster, I think Brixton will easily also hit a new 52 week high on this move. It is probably a little a slow out of the gate this time because of Robert Friedland’s recent financing at a great price (for him) and possibly because it topped later than the others in the summer, weeks later than Impact (July 21 vs August 10):
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=0&mn=6&dy=0&id=p42795057841
A weekly close above .35 should help and I bet that will happen this week.
https://stockcharts.com/h-sc/ui?s=BBB.V&p=W&yr=5&mn=5&dy=0&id=p65914914377&a=643350638
Jerry, I think silver will make a new all-time (nominal) high in 2022. Based on the last cyclical bull market, that might seem a little soon but this part of a secular bull market delivers very different action as we’ve already seen.
I think at least half of next year will be spent correcting so I very much doubt a new high so soon.
MATTHEW………..THANKS FOR THE REPLY………..as always I appreciate the insight….
The next hard down day (2%+?) in the miners is a strong buy in my book. The same goes for silver which was stopped at resistance on Friday…
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=3&dy=0&id=p20452128348&a=449326423
A pleasure to read all your posts this morning. Thank you much for posting and commenting as you have. Great addition to the comments that Cory’s guests brought to the page.
Newcore: I caution investors to be careful with these thinly traded gold miners operating in tier3 jurisdictions, especially at this stage of the cycle. If you want to invest in gold miners, I suggest looking at some Australian producers… tier1 jurisdiction, making money already. RMS. AX or SLR. AX are just two examples
The copper miners are in sync with the gold and silver miners and COPX finished last week almost 9% higher at its highest level since mid 2018…
https://stockcharts.com/h-sc/ui?s=COPX&p=W&yr=5&mn=6&dy=0&id=p86875503928&a=792025091
I believe Silver will soon hit $30 US before it takes a breather. The US has a distaste for socialism and they realize that the economic system can’t carry on as it is unbridled. The Federal Reserve doesn’t understand the country’s business but gold and silver do and the populace will soon understand that the most vital situation for America is having honest money backed by precious metals. DT
We have a bullish turn in our Gold Trend Indicator.
Buy DGP Monday at the open at the market price.
DGP is the DB Gold Double Long ETN, which is levered 2x gold.
DGP closed Thursday at $47.68
My CBX took off like a rocket Thur Fri.
Have fun.
Gold down $61…….before market open………humm
Humm indeed Jerry. Typical trading action trying to get ahead of the presidential result digestion. First push it higher then pull the rug out post haste! Same thing happened in 2016 when Trump won. A predictable short tern tank for gold. Just hope it does not inflict damage in the interim.
Short term could be damaging, but, long term , we are still ok,…….jmo of course…..
Matthew put out some good thoughts in the other section…
wait, I lost track of where I am…..should be, see above for good comments from Matthew… 🙂
I am still dazed, at the election results, and the lack of any form of govt..for we the people of the usa, ….real shame going forward……Rome at it’s best…. 🙂
Jerry, above I mentioned that we would have a sharp decline but I thought/guessed it would be tomorrow/Tuesday. All good, I bought the heck out of this decline with a focus on GDX and SILJ (split 45/55).
My XOP jumped 16% today and several others also jumped as much as 10%+ so I’ve been busy this morning on the buy AND the sell!
Very nice moves in Oil and E&P. I sold half of my XOM.
Do you think silver miners are buy today?
Yes. I put 6-figures into SILJ this morning but still wonder if it will fill its 11/5 gap as GDX already has.
That’s for CaliJoe
Very nice Matthew. Thanks. I’m thinking of buying a large position in PAAS. My gains from Exxon makes want to be a riverboat gambler. Lol
I know what you mean. I had XOP for 2 days and suddenly it’s up 15-16%!
Just bought more SILJ and GDX.
Matthew. I admire your optimism and your skills. I hope it pays off.
Thanks, Norrareal1968 . It’s a wild sector, that’s for sure!
Gold update!
Hey guys sorry for the delay I just figured same old stuff and wanted time to pass before posting. Here we are once again! Looks to me like my $1780 “May” become a good possibility with tomorrow’s push down. This is the opportunity I have been waiting for and called repeatedly for sometime. So to the ones who follow me or some of my work, tranche 4 is getting ready to be deployed. Impact was hit hard this morning I expect more follow through. How low? Not sure but more shares for sure.
Big moves and percentages down today. As always stay humble and nibble and never jump the gun to fast. Patience is key.
Glen
I’m reading your post Glenfidish… always do.
Thanks, though I’d like to learn what you’ve bought once you do it.
Kodiak Copper drills 192 m of 1.21% CuEq at MPD
2020-11-09 07:47 ET – News Release
Ms. Claudia Tornquist reports
KODIAK DRILLS 192 M OF 0.74% COPPER AND 0.48 G/T GOLD (1.21% CUEQ*), WITHIN 515.8 M OF 0.41% COPPER AND 0.22 G/T GOLD (0.63% CUEQ*)
Kodiak Copper Corp. has released further drill results from the Gate zone from its continuing fully financed exploration program at the 100-per-cent-owned MPD copper-gold porphyry project. MPD is located near producing mines in the prolific Quesnel trough in Southern British Columbia, with excellent infrastructure and year-round accessibility from paved highways 5A and 97C.
Vizsla drills one m of 2,401 g/t AgEq at Panuco
2020-11-09 07:32 ET – News Release
Mr. Michael Konnert reports
VIZSLA EXPANDS PAPAYO AND SAN CARLOS PROSPECTS WITH MULTIPLE INTERCEPTS AT PANUCO PROJECT, MEXICO
Vizsla Resources Corp. has provided results from six new holes at the Papayo prospect and six new holes at the San Carlos prospect at the Panuco silver-gold project in Mexico.
Origen samples up to 175.7 g/t Au at Wishbon
2020-11-09 11:06 ET – News Release
Mr. Blake Morgan reports
ORIGEN REPORTS HIGH-GRADE GOLD RESULTS AT WISHBONE, 175.7 GRAMS/TONNE; SIGNIFICANT COARSE GOLD CONTENT REVEALED
Origen Resources Inc. has received the final assay results from its phase 1 exploration program at the Rat and Windy prospects on the company’s Wishbone property, B.C. These final eleven assays demonstrate that six of the 11 samples have a significant component of coarse gold contributing 13 per cent to 70 per cent of the total gold.
MUX fell to double fork support:
https://stockcharts.com/h-sc/ui?s=MUX&p=W&yr=5&mn=9&dy=0&id=p10176771648&a=825435084
Thanks Cory i really appreciate you, you make KEreport one of the very few places I can get good info. I like new format. I also enjoy the blog of many of the regulars that i also like.
Thanks Cory….Some great thoughts from Doc…Thanks Richard.