Exclusive Insights on the Gold Market – Wed 31 May, 2017

Potential Big Picture Drivers For Gold

Jordan Roy-Byrne and I usually focus on the charts for the metals and those have us neutral to slightly bearish. For this interview we take a step back and look at some of the big picture drivers that will impact precious metals. These include a potential reversal of Fed policy, drop in the stock market, and even worse economic news.

Click here to visit Jordan’s website for more of a focus on gold and silver.

Click download link to listen on this device: Download Show


Featuring:
Jordan Roy-ByrneCory Fleck
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Comments:
  1. On May 31, 2017 at 12:34 pm,
    silverbug dave says:

    Thought I am not entirely convinced there is some elegant bullish geometry in gold right now (charts):
    http://1000gold.blogspot.co.uk/2017/05/quite-elegant-bullish-geometries-in.html

  2. On May 31, 2017 at 1:05 pm,
    CFS says:

    Well at least Arizona mining is beginning to climb back out of the hole it dug!

    • On May 31, 2017 at 2:05 pm,
      Excelsior says:

      AZS did take a bounce today…. but that was a big hole it dug yesterday.

      They do have more assays coming out that have haven’t been released yet.

      • On May 31, 2017 at 4:40 pm,
        OOTB Jerry says:

        Arizona, big cat dead bounce…………

        • On May 31, 2017 at 4:42 pm,
          OOTB Jerry says:

          I think Arizona is safer than South Africa………..

    • On May 31, 2017 at 2:52 pm,
      Excelsior says:

      The (AZS) Arizona Silver Exploration room over at ceo has been buzzing with reactions:

      https://ceo.ca/azs

  3. On May 31, 2017 at 1:42 pm,
    Silverdollar says:

    Damn, PPP. How low will it go??

    • On May 31, 2017 at 2:03 pm,
      Excelsior says:

      PPP went on sale the last 20 minutes of regular trading (and I was buying) but It’s on sale for even less in the after-hours trading at $.39.

      It called Primero Limbo….. How low can it go? How low can it go?

      How Low Can You Go ?

      https://www.youtube.com/watch?v=LSPuVFWiyhY

    • On May 31, 2017 at 2:04 pm,
      Matthew says:

      It is very interesting that one of Rick Ackerman’s targets months ago was in the mid to high .30s – I can’t remember the exact number. And that was way before the workers strike when it was still in the .70s. It seems the only logical explanation for such accuracy is that someone knew the strike was coming. Either way, the hidden pivot method is impressive.

      • On May 31, 2017 at 2:31 pm,
        Excelsior says:

        Rick A is absolutely uncanny with his hidden-pivot method. Cheers!

  4. On May 31, 2017 at 2:34 pm,
    Excelsior says:

    Scorpio Gold Reports Financial Results for First Quarter of 2017
    May 30, 2017

    Brian Lock, CEO, comments, “Despite lower production in Q1 of 2017 compared to Q1 of 2016, operating cash flows increased significantly from Q1 2016. Even though the Company sold slightly fewer ounces in Q1 of 2017 compared to Q1 of 2016, a decrease in gold inventories and higher average realized prices, compared with Q1 last year, were primary factors in the increase in operating cash flow.

    Based on the Company’s updated mine plan, the Company currently anticipates mining of gold at Mineral Ridge through August 2017. Due to permitting timelines, the Company anticipates production of gold at Mineral Ridge to be 20 – 25,000 ounces through to August 2017 from the Mary LC, Brodie and Bluelite south pits. The Custer pit and other areas for which permitting is outstanding, are not included in this production estimate and will be evaluated for economics of associated mining timelines when permits are received. There can be no assurances that, when the permits are received, production on the Custer Pit and other areas will commence if it is not economically viable to do so. Total cash costs are expected to be $1,050 – $1,100 per ounce of gold sold. This increase in costs is due to the projected lower production level in 2017 while fixed costs remain relatively constant.

    The 2017 mine plan calls for an average daily production rate of 11,500 tonnes which includes an average of 1,798 tonnes of ore delivered to the crusher on a daily basis over the 226 scheduled mining days. The decreased metal production in Q1 of 2017 is attributed to reduced mining rates, somewhat offset by higher grade and favorable leach pad recoveries.

    Proposed exploration activities for 2017, which are dependent on the Company’s finances, are intended to include geological mapping, geophysical surveying, sampling and drilling activities at Mineral Ridge’s Drinkwater pit, North Springs, Tarantula and Eagle Canyon areas, as well as at the Orleans and the Goldwedge properties. Also included in the proposed exploration activities is an evaluation of potential unrecovered mineralization of the Mineral Ridge leach pad with a view to initiating a feasibility study for building a mill facility to recover additional gold mineralization.”

    http://www.scorpiogold.com/s/news.asp?ReportID=791022

    • On May 31, 2017 at 2:46 pm,
      Excelsior says:

      (SGN) is at a very interesting place, where they have a number of balls up in the air and nobody knows which ones will land.

      Most pressing is their end of mine life on several of their pits coming up in August for the Mineral Ridge mill. The upside is that they have a number of other feeder pits they are working to get Custer permitted to feed that mill, as well as drilling and exploration to extend the mine life on Mineral Ridge. However, those are still wildcards at present and there are no guarantees. It seems the continued selloff is due to this uncertainty.

      In addition, there is more potential upside in that Scorpio Gold is exploring using the old tailing material to fee the mill. My buddy @MadeOfRubber just got an update from the CEO yesterday and he had this to say:

      “The samples for the heap leach pad drilling were submitted to Kappes Cassiday for metallurgical testing and we expect to get preliminary results by the 3rd week in June and will update the market shortly thereafter.” – $SGN

      Also, the other mill at Goldwedge is back in the picture after being on care & maintenance for some time, as they are going to do toll milling there. I like that they are monetizing that plant and putting it back to work:

      ___________________________________

      Scorpio Gold Commences Milling of Lode-Star Ore at its Goldwedge Property
      May 08, 2017

      http://www.scorpiogold.com/s/news.asp?ReportID=789120

      • On May 31, 2017 at 3:03 pm,
        Excelsior says:

        With so many miners in sell off mode over the last 2 months, it’s been hard to determine where to put one’s dry powder. I’m still constructive on Scorpio Gold but at this point it’s a waiting game to see what permits they get, if they do a capital raise for drilling, if their assays from the Tailings will be recoverable, and how the toll milling goes.

        I’ve also been deploying some funds to their neighbors West Kirkland Mining. (WKM)

        Here’s a map of the area. Corvus Gold is on the same Walker Lane Gold trend:

        http://wkmining.com/_resources/projects/hasbrouck_overview/fig1.jpg

        • On May 31, 2017 at 3:04 pm,
          Excelsior says:

          Waterton is very busy in that area of Nevada as well.

        • On May 31, 2017 at 4:38 pm,
          OOTB Jerry says:

          Didn’t Custer get scalped……….everything is in a name……. 🙂

          • On June 1, 2017 at 1:03 am,
            Excelsior says:

            good one.

  5. On May 31, 2017 at 3:41 pm,
    Excelsior says:

    Second round of hearings for #Nunavut #gold mine rejected by review board kicks off
    Cecilia Jamasmie | about 11 hours ago $SBB $SGSVF #Permitting

    http://www.mining.com/second-round-of-hearings-for-nunavut-gold-mine-rejected-by-review-board-kicks-off/

  6. On May 31, 2017 at 3:44 pm,
    Excelsior says:

    Miners frozen out as South Africa readies empowerment rules
    Bloomberg | about 2 hours ago

    http://www.mining.com/web/miners-frozen-south-africa-readies-empowerment-rules/

    • On May 31, 2017 at 4:35 pm,
      OOTB Jerry says:

      I see some further problems with investing in these areas………….I have mentioned this before…and this area of the world is not getting any better……jmo.

      • On June 1, 2017 at 1:08 am,
        Excelsior says:

        Agreed OOTB. I’m not a fan of South Africa in general, but have some exposure through a few PGM stocks. In contrast, I’m much more constructive and bullish on West Africa, and have invested in 7-8 countries that seemed worth the risk.