David Erfle - Gold Market Commentary – Tue 14 Jan, 2020

Levels to watch for gold and GDX and comments on the recent Skeena drill results

Dave Erlfe joins me today to share some the levels he thinks gold and GDX will correct to through this current correction. We then look at the drill results released today by Skeena Resources (TSX.V: SKE, OTCQX: SKREF) from the Eskay Creek Project. As a developing story in the Golden Triangle could this be the next takeover in the area?

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Click here to read over the recent news on the Skeena drill results.

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Comments:
  1. On January 14, 2020 at 11:37 am,
    Matthew says:
    • On January 14, 2020 at 1:37 pm,
      cfs says:

      Skeena drills 36.85 m of 14.73 g/t AuEq at Eskay

      2020-01-14 09:39 ET – News Release

      Mr. Walt Coles reports

      SKEENA INTERSECTS 14.73 G/T AUEQ OVER 36.85 M AT ESKAY CREEK

      Skeena Resources Ltd. has released additional gold-silver drill results from the 2019 phase 1 surface drilling program at the Eskay Creek project located in the Golden Triangle of British Columbia. Four surface drill rigs were utilized for the 2019 phase 1 program in the 21A, 21E and HW zones to infill and upgrade areas of inferred resources to the indicated classification. Drill hole results reported in this release are from the 21A, 21E and HW zones. Reference images are presented at the end of this release, as well as on the company’s website.

      Phase 1 Eskay Creek drilling highlights:

      10.14 grams per tonne (g/t) gold (Au) and 345 g/t silver (Ag) (14.73 g/t gold equivalent (AuEq)) over 36.85 metres (m) at 21A (SK-19-170);
      2.90 g/t Au and 278 g/t Ag (6.60 g/t AuEq) over 57.90 m at 21A (SK-19-153);
      4.14 g/t Au and 151 g/t Ag (6.15 g/t AuEq) over 61.50 m at 21A (SK-19-151);
      7.01 g/t Au and 114 g/t Ag (8.53 g/t AuEq) over 37.89 m at 21A (SK-19-160);
      4.09 g/t Au and 52 g/t Ag (4.78 g/t AuEq) over 59.00 m at 21A (SK-19-148);
      6.34 g/t Au and 42 g/t Ag (6.91 g/t AuEq) over 34.00 m at 21A (SK-19-167);
      8.33 g/t Au and 51 g/t Ag (9.02 g/t AuEq) over 18.45 m at 21A (SK-19-164).

      Reported core lengths represent 80 to 100 per cent of true widths and are pretty good results if you ask me . cfs

  2. On January 14, 2020 at 12:54 pm,
    markedtofuture says:

    Does Sprott and the BOYZ screw 30,000+ Allied Nevada warrant holders?

    Mudrick Capital Acquisition Corporation To Combine With Hycroft Mining Corporation $HYCT aka $ANVANV.TO ANV.TO aka $HYMC – Warrant holders still have the option to convert the warrants to shares, however the warrants are not in the money?

    https://www.gjsentinel.com/news/colorado/mudrick-capital-acquisition-corporation-to-combine-with-hycroft-mining-corporation/article_9896d0ca-2cc4-5dc0-9399-d91d02261732.html

  3. On January 14, 2020 at 1:13 pm,
    RICHARD/DOC says:

    EQX continues to buck the trend of this recent fall back in PM pricing. It broke out again after a period of consolidation. The technicals continue to look strong.

  4. On January 14, 2020 at 1:39 pm,
    David says:

    Missed it. Azimut Resources had some great drill resorts and a big run today.

    • On January 14, 2020 at 3:29 pm,
      Excelsior says:

      Yeah, I saw all the comments over at ceo.ca. Great discovery hole for Azimut (AZM) and it was up a whopping 200% on the day. Gadzooks!!!

      Also (CVB) Compass Gold did the opposite and put out crappy holes and dusters and it sold off 41%.

      At least good or bad exploration is getting noticed and getting results from the marketplace. What a wild sector to invest in.

      • On January 14, 2020 at 4:25 pm,
        Excelsior says:

        Azimut drills 3.15 g/t Au over 102.0 m including 10.1 g/t Au over 20.5 m at the Patwon Prospect, Elmer Gold Property, James Bay Region, Quebec

        by @newswire on 14 Jan 2020

        https://ceo.ca/@newswire/azimut-drills-315-gt-au-over-1020-m-including-101

        • On January 14, 2020 at 5:02 pm,
          Wolfster says:

          What????? No list of area plays Ex????😏🤣🤣🤣

          • On January 14, 2020 at 8:07 pm,
            Excelsior says:

            We’ll keep tabs on it as it develops. 😉

          • On January 15, 2020 at 7:42 am,
            Excelsior says:

            There is some chatter about Dios Exploration (DOS) and (CJC) Quebec Precious Metals as being nearology plays, and possibly (HAR) Harfeng Exploration.

            I haven’t spent much time reviewing maps of that area that are gold related, but it will take a great deal of follow up drilling to confirm what they really have there and get more interest in it as an area play.

            Osisko (+Beaufield takeover) and Bonterra (+Metanor takeover) have had a number of drills turning on their properties for the last 2-3 years and they’ve had great success, and it still isn’t a raging area play. There are about 5-6 other companies with near-ology plays, but it takes a while to prove out a thesis.

            Or look at the Pilbara with Novo’s big discovery on the gold nuggets, and then there were about 6-10 other companies that went from Zero to Hero overnight, but 2 years later, most have crashed back down.

            The Detour Gold takeover by Kirkland Lake has spiked the good exploration work done by Wallbridge and Balmoral, and there are about 4 other companies trying to get in on the action, but it will still take much more time to really get the area buzzing.

  5. On January 14, 2020 at 1:46 pm,
    David says:

    Azimut Exploration. Can’t even get the name right.

    • On January 14, 2020 at 3:11 pm,
      Matthew says:

      A triple in one day and I bet it’s going much higher based on that drill hole and C$88M market cap. And I used to own it. Ouch.
      https://stockcharts.com/h-sc/ui?s=AZM.V&p=W&yr=6&mn=6&dy=0&id=p47246021993&a=713575393

      • On January 14, 2020 at 3:50 pm,
        David says:

        Hurts even more when you used to own it. I have turned over many due to impatience, so I know it is pretty easy to miss a couple of good hits. Looks like a Chart worth framing.

  6. On January 14, 2020 at 3:30 pm,
    Excelsior says:

    Unstoppable rally: World’s most precious metal Rhodium is now 5 times more costly than Gold

    13 Jan, 2020

    https://www.rt.com/business/478123-rhodium-price-unstoppable-rally/

  7. On January 14, 2020 at 3:35 pm,
    Matthew says:

    It is bullish enough when the miners dramatically outperform the metals but today was extra bullish since the miners did well while the metals fell.
    So there’s a good chance that gold has bottomed but a better chance that the miners have. If gold does make a new low, it probably won’t be by much, maybe 5 bucks.
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=6&dy=0&id=p36268485342&a=680403506

  8. On January 14, 2020 at 3:39 pm,
    Matthew says:
  9. On January 14, 2020 at 4:40 pm,
    David says:

    Ex:
    Good stuff and I have read stuff on Group Ten before. I have to admit I blew it off before…now, I have to make some choices. Thanks

    • On January 15, 2020 at 3:52 am,
      Excelsior says:

      I’ve been invested in the story for a while because I followed Greg Johnson from Wellgreen Platinum (now Nickelcreek Platinum – run by Dianne Garrett from Romarco), over to Group Ten (PGE) and Metallic Minerals (MMG) – Alexco’s neighbors at Keno Hill, Yukon. I also was a shareholder in (SWC) Stillwater mining before Sabanye took them over, because of their huge Palladium/Platinum/Base Metals mine in Montana. It turns out (PGE ) has the adjacent land and it appears the Platinum/Palladium/Rhodium/Nickel/Copper trend continues onto their Stillwater West property.

      In addition, Group Ten has another property Kluane that is adjacent to the current Nickel Creek Platinum land. Greg & team should be very familiar with this area and geology after doing much of the exploration work as the team in the previous incarnation of NCP.

      Regardless, just Stillwater West, their flagship, will be a company maker.

      There aren’t that many good North American Platinum / Palladium stories to follow, so Group Ten stands out in that sense.

      (PGE) Group Ten – Corporate Presentation:

      https://grouptenmetals.com/site/assets/files/3631/2019-1-09_groupten_short_presentation_final.pdf

  10. On January 14, 2020 at 6:49 pm,
    Matthew says:

    It looks like Eric Pomboy is one of the few reading the COT reports correctly:
    “For Gold to re-enter long-term bull channel, Net Commercial Position would necessarily explode to around -600k contracts…suggesting much higher Gold price ahead. $1850+ before a real correction/consolidation would not be out of the question under such a scenario.”
    https://kingworldnews.com/wp-content/uploads/2020/01/KWN-Gra-III-1132020-1024×774.jpg

  11. On January 14, 2020 at 6:52 pm,
    Matthew says:

    Another strong day in the miners tomorrow would be very helpful to the short term outlook.
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=5&dy=0&id=p53543934597&a=645955035

  12. On January 14, 2020 at 8:00 pm,
    Dick Tracy says:

    https://jaytaylormedia.com/media/MoriartyCook0191224.mp3metals appoints Dr. Quinton Hennigh Hannan metals appoints Dr. Quinton Hennigh to it’s Geological team, syl, HAN TSX-V

  13. On January 15, 2020 at 1:16 am,
    Blue says:

    Platinum rocks!!
    Rallying above 1000,
    Took a nice position at 999.
    This train is leaving the station. Following in the backwash of Palladium

    • On January 15, 2020 at 4:07 am,
      Blue says:
      • On January 15, 2020 at 4:31 am,
        Excelsior says:

        (PTM) (PLG) Platinum Group Metals Ltd. Reports First Quarter Results

        by @newsfile on 14 Jan 2020

        “The Company is focused on advancing the palladium dominant Waterberg Project located on the North Limb of the Bushveld Complex in South Africa. An independent Definitive Feasibility Study for the Waterberg Project was published on September 24, 2019 and was unanimously approved by the shareholders of Waterberg JV Resources (Pty) Limited on December 5, 2019. The Waterberg DFS concludes that the Waterberg Project will be one of the largest and potentially lowest cash cost underground PGM mines globally.”

        “The Waterberg DFS projects a fully mechanized, shallow, decline access palladium, platinum, gold and rhodium mine at an annual production rate of 420,000 4E ounces and a 45 year mine life.”

        http://www.platinumgroupmetals.net/investor-relations/news/press-releases/press-releases-details/2020/Platinum-Group-Metals-Ltd-Reports-First-Quarter-Results/default.aspx

        • On January 15, 2020 at 4:41 am,
          Blue says:

          Thanks Ex👍

          • On January 15, 2020 at 4:47 am,
            Excelsior says:

            Cheers Blue.

            It is nice to see Platinum gaining a bit on Palladium.

            Besides (PGE) Group Ten Metals, and (PLG) Platinum Group Metals, one of my other positions for Platinum, Palladium, and Chrome is the tailings processor and developer (JLP.L) (JUBPF) Jubilee Metals Group. They have fantastic margins, and finally started getting noticed over the last year.

            _______________________________________________________

            Jubilee Metals – All of the Upside and very little of the down

            Crux Investor 17 Nov, 2019

            Interview with Leon Coetzer, CEO of Jubilee Metals Group (AIM:JLP)

            “Mining but with none of the risks of mining. Tailings is the next big thing in the mining space and Jubilee is set to take the lead.”

            “Great set of results yesterday and the announcement of a capital raise of $6.5M to reinvest in to the deliver a raft of new project with 50-75% margins. This group of solid, technical management are starting to scale up and have the capital and people to be able to deliver continued growth for shareholders in a prudent and realistic way. Very excited to see if they can continue this momentum.”

            https://jubileemetalsgroup.com/investors/presentations/jubilee-metals-all-of-the-upside-and-very-little-of-the-down/

  14. On January 15, 2020 at 4:06 am,
    Excelsior says:

    So here’s another Aussie Mid-tier Producer, divesting a big mine in Australia, to continue focusing abroad, and we just discussed RSG.AX over the weekend.

    Through this transaction, Resolute mining is going to continue putting more focus on African Gold projects with the proceeds, but still gets some of the upside from the Ravenswood mine it is selling as part of the transaction). I’m wondering if they are now going to acquire one of the smaller miners that they have a strategic position in already?

    __________________________________________

    (RSG.AX) (RMGGF) Resolute Sells Ravenswood Gold Mine for Total Proceeds of Up to A$300 Million

    15 January 2020

    “World class consortium comprising EMR Capital and Golden Energy and Resources commits to progress the Ravenswood Expansion Project”

    “Attractive commercial terms provide ongoing upside for Resolute from REP success”

    “Immediate value to Resolute of A$100 million with up to A$200 million in contingent upside”

    “Removes obligation for Resolute to fund future Ravenswood capital requirements”

    “Transaction supports Resolute’s strategy of focusing on African gold opportunities”

    “Upside exposure retained through structured payments linked to production and gold price”

    https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RSG/14384300.html

  15. On January 15, 2020 at 4:16 am,
    Excelsior says:

    Tavi Costa – Gold and Silver Miners are Set Up to Push a Lot Higher

    @PalisadeRadio on 15 Jan 2020 #AudioInterview

    https://ceo.ca/@palisaderadio/tavi-costa-gold-and-silver-miners-are-set-up-to-push-a-lot-higher

  16. On January 15, 2020 at 4:22 am,
    Excelsior says:

    (MUX) McEwen Mining: 2019 Full Year and Q4 Production Results

    by @nasdaq on 15 Jan 2020

    Rob McEwen, Chairman and Chief Owner commented: “2019 was a year of exploration highs overshadowed by production lows. After issuing two disappointing reductions in production guidance we finally achieved our guidance. The problems that plagued us in 2019 were largely unique events that will not be reoccurring. Exploration will continue to be a key focus at Stock West, Grey Fox, Black Fox and Gold Bar, where we see the potential to create the greatest near-term value.”

    https://ceo.ca/@nasdaq/mcewen-mining-2019-full-year-and-q4-production-results

  17. On January 15, 2020 at 6:45 am,
    Dick Tracy says:

    The mania for mining juniors has definitely begun, let the good times roll! This is a day traders market. YOWZER! DT

  18. On January 15, 2020 at 6:54 am,
    Blue says:

    Its nice to have investments besides gold and silver
    Palladium is a very strong momentum investment and Platinum is just
    starting to show some nice moves. Im hoping to catch platinums bull move above 1000 usd
    This time Im invested just in the metal and not in the shares. Bought a leveraged position.
    Good luck Ex, hope the shares will give you some good profit.
    🍻

    • On January 15, 2020 at 7:01 am,
      Excelsior says:

      Agreed. Thanks Blue and may your positions have a good profit as well. I agree about having investments in other sectors, which has served me well over the long haul, but I’m currently about 2/3 in Gold & Silver miners in my trading portfolio (not retirement portfolio), because I see PMs hitting their stride in 2020 and 2021.

      I’ll likely increase my holdings in base metals like Copper/Zinc/Nickel and the energy sector (mostly Uranium/Lithium/Cobalt but maybe a few Oil & Gas plays eventually), as I pull profits out of the PMs over the next 2 years and rebalance.

      Yeah, I only have 3 main PGM mining positions at present (Group Ten, Platinum Group Metals, and Jubilee Metals), but I may add a few more as time progresses.

      • On January 15, 2020 at 8:33 am,
        Blue says:

        I really think you will succeed to make good money. You have total control in your investment plan. Just keep adapt to the markets, they are in charge and we need to follow them😉