Archive for Financial News – Page 3

The Analytical Overview of the Main Currency Pairs on 2021.01.21

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2126
  • Prev Close: 1.2105
  • % chg. over the last day: -0.17%

EUR/USD was the weakest pair at the end of Wednesday. The day closed in the red despite the negative dynamics of the dollar index. This indicates significant pressure from the bears and the need to be careful with the euro bulls. Perhaps this is due to the upcoming ECB meeting, which will be held today at the end of the European session.

Trading recommendations
  • Support levels: 1.2059, 1.1799
  • Resistance levels: 1.2158, 1.2222

The main scenario for trading EUR/USD is buying. Despite the apparent weakness of the euro compared to other currencies, the technical characteristics still show the likelihood of growth. The ADX still only reacts to the northern movement, demonstrating high growth potential. The MACD is holding above zero, and the price is fixed above the moving averages.

Alternative scenario: if the price manages to fix below the level of 1.2059, the pair may move to a decline to 1.1799.

EUR/USD
News feed for 2021.01.21:
  • – ECB Interest Rate Decision (Jan) at 15:45 (GMT+2);
  • – US Initial Jobless Claims at 16:30 (GMT+2);
  • – ECB press conference at 16:30 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3628
  • Prev Close: 1.3651
  • % chg. over the last day: +0.17%

The sterling is showing strong bullish potential on par with commodity currencies. Discussion of the plan to rescue the economy had a positive impact on the foreign exchange market. The Chancellor of the Treasury Rishi Sunak is expected to provide an assistance program that will keep workplaces for those on vacation during the quarantine period and pay salaries up to 80%.

Trading recommendations
  • Support levels: 1.3622, 1.3517
  • Resistance levels: 1.3716, 1.4386

The main scenario in GBP/USD is buying. Sterling renewed its highs and when the price fixes above 1.3716, the pair’s immediate resistance will lie at the spring 2018 levels at 1.4386. The technical specifications are showing strong bullish potential. The ADX shows that the pound is able to go about 80 more points before the first rollback.

Alternative scenario: if the pair fixes below 1.3622, the pair is likely to return to 1.3517.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 103.89
  • Prev Close: 103.46
  • % chg. over the last day: -0.42%

It seems as if the yen has completely lost contact with the stock markets. The negative value of the close of the day turned out to be even greater than the dollar index showed. At the same time, the stock market was able to renew highs. A price fixation below the weekly range levels indicates a presence of bears in this pair.

Trading recommendations
  • Support levels: 103.18, 102.89
  • Resistance levels: 104.20, 104.40

The main scenario is sales. Specifications indicate continued southbound traffic. But the ADX is giving a weak signal. This suggests that if there is a decline – it will be very slow. Convergence has formed on the MACD, and there are no hints of stopping the fall yet.

The alternative scenario assumes the price-fixing above 103.77. In this case, the pair may be able to return to 104.20.

USD/JPY
News feed for 2021.01.21:
  • – US Initial Jobless Claims at 16:30 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2731
  • Prev Close: 1.2631
  • % chg. over the last day: -0.80%

The stabilization of oil prices near the highs and the absence of hints from the Bank of Canada to increase economic stimulus are factors that significantly supported the Canadian dollar. The pair managed to break through an important support level and now threatens to go far down. If the dollar continues to lose ground, there will be almost nothing to prevent the Canadian dollar from strengthening against the USD.

Trading recommendations
  • Support levels: 1.2523, 1.2450
  • Resistance levels: 1.2797, 1.2834, 1.2875

The main scenario is sales. All technical specifications indicate continued southward movement. A triple convergence has formed on the MACD. The ADX can’t reach the short-term overvalued area, and the bearish potential remains high. The pair can go about 50 more points before the first rollback.

Alternative scenario: if the price can fix above 1.2713, the pair may return to 1.2797.

USD/CAD
There is no news feed for today.

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Metals Break Higher On “Biden Bounce”

By Orbex

Gold

The yellow metal surged higher over the last 24 hours in response to the swearing-in of the 46th president of the United States, Joe Biden.

With Biden’s inauguration comes the expectation of a big shift in US policy towards more expansive fiscal policy and less influence over the Fed and the US dollar.

During the course of Trump’s presidency, he was often heard talking the dollar down. He also criticized the Fed and called on the need for more and greater rate cuts.

Under the new era of Biden and former Fed chair Yellen as treasury secretary, the market is expecting major new stimulus along with less of a focus on the exchange rate.

Consequently, the US dollar looks likely to come under pressure as the government increases its borrowing to ramp up fiscal spending. This is keeping the outlook for gold bullish.

With the government attempting to pass a $1.9 trillion stimulus package, the Fed has been given some breathing room for the time being.

However, with the pandemic still at a critical point, the likelihood of further Fed easing in the coming months remains high, again creating support for gold.

Gold Rises Off Key Support

Following a period of consolidation along the 1826.71 level support, buyers have now taken price back up on the level.

Price is now close to retesting the bearish trend line from 2020 highs following a break above the trend line earlier this month.

If price breaks the trend line once again, focus will turn back to the 1919.92 level resistance next. To the downside, should price reverse and break below the 1826.71 level, the next major support to watch is down at the 1700 level.

Silver

Silver prices have tracked gold higher this week with the market moving back above the 25.1018 level.

Along with the upside in gold which is lending support, silver prices have also been boosted by the strong rally in US equities.

This rally has seen the S&P and the Dow both breaking out to fresh, record highs.

The boost in industrial stocks is particularly encouraging for silver bulls. And, along with USD weakness, this should keep silver prices supported in the medium term.

Silver Prices Turn Higher

Following the dip back below the 25.1018 level, silver prices found buying interest as they approached the broken bearish trend line from 2020 highs.

While the 25.1018 level holds as support, the focus is on further upside with a fresh challenge of the 27.4502 resistance the next key test for bulls.

By Orbex

US stocks post new record high; Yellen, ECB in focus

By Han Tan, Market Analyst, ForexTime

US stocks welcomed the latest occupant of the White House, President Joe Biden, by posting a new record high.

For the S&P 500 that had hung around sheepishly around the 3800 mark for the past two weeks, the blue-chip index took another major stride towards the 3900 handle, led by stocks in the IT, communication services, and consumer discretionary sectors.

Although the futures contracts are pushing even higher at the time of writing, their 14-day relative strength index is once again teasing the 70 mark which denotes overbought conditions.

The overall outlook for US equities this year remains conducive for further gains, considering market expectations for more incoming US fiscal stimulus and the accommodative Fed stance.

And with a new administration at the helm, fresh policies pertaining to the US health response to the pandemic may also hasten the recovery in the world’s largest economy.

Yellen be chillin’ on the Dollar

And the Washington watch doesn’t end with yesterday’s presidential inauguration – Janet Yellen’s confirmation as the new US Treasury Secretary could happen later today.

Just earlier this week, Yellen conveyed perference to let markets decide the Greenback’s value. This is a marked shift from the weaker Dollar policies pursued by the Trump administration; neither did Yellen state a preference for the strong Dollar policies of the mid-90s.

Yellen’s stance may have given Dollar bears the green light to push the Greenback back into its downward channel, with many traders already crowding in on the Dollar shorts.

However, they must first wait for US yields to pare back recent gains, with the Fed’s meeting next week potentially serving as the next catalyst.

 

ECB to stand pat while major risks hang overhead

The European Central Bank is due to make a rate decision today, though policy settings are expected to be left untouched at this meeting as the central bank continues to digest near-term risks.

Extended lockdowns, a slower-than-expected vaccine rollout, and political tensions out of Italy present major headwinds for the EU’s economic recovery.

Such concerns have also weighed on the Euro, which is posting a year-to-date decline against all of its G10 peers barring the Swedish Krona. Still, the bloc currency continues to trade around its highest levels against the US Dollar since 2018, while the trade-weighted Euro is close to its record high. A weaker Euro would enable the ECB to reach its post-pandemic inflation targets faster.

Coupled with Yellen’s relatively “hands-off” approach to the Dollar, the DXY’s performance may be heavily influenced by the Euro’s performance moving forward, considering that the shared currency accounts for 57.6 percent of the Dollar index.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Markets celebrate the peaceful presidential transition with new record highs

By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

Global stocks hit an all-time high early Thursday on optimism that the new US administration will take bold steps in reviving growth and speed up vaccine distribution.

All three major US indices climbed to new records on President Biden’s swearing in, with the S&P 500 posting its best Inauguration Day gains since President Reagan second term in 1985. While markets are optimistic that a massive US economic relief will be approved by the Senate sometime soon, it wasn’t the only reason helping risk assets. Despite many warnings of armed protests at state capitols across the country, the lack of violence on Wednesday helped revive risk appetite. With this additional equity risk premium diminished, we are likely to see stock markets make more new highs in the weeks to come.

The Greenback fell against most high beta currencies on Wednesday and has continued its slide today. Commodity currencies benefited the most from the better risk sentiment, with the Canadian Dollar outperforming after the Bank of Canada kept policy unchanged, defying expectations of a micro rate cut. The Australian Dollar also approached its yearly highs following better than expected employment data released overnight. Meanwhile, the Euro failed to catch up with the trend due to expectations of more economic pain as the new variant of coronavirus will likely lead to extended and additional lockdowns. Investor’s and trader’s focus will shift to the ECB meeting later today.

Short term risks are mounting in the Eurozone given the extended lockdowns in the region and the Italian political mess. Chances of another contraction in GDP this quarter are higher than when the central bank last met in December. However, the longer-term outlook is brighter as European countries are stepping up vaccine purchases and increasing production. With more vaccine products hitting the market in 2021 there is optimism that a strong recovery will take hold in the second half of the year.

Trying to find a balance between short term risks and longer-term optimism is kind of tricky and there’s little monetary policy can do to revive economic growth. The biggest concern is likely to be the stronger Euro which could keep headline inflation suppressed. Overall, we do not expect any changes on the policy front and the big test is likely to be Christine Lagarde’s communication to the market, and what messages she will send to curb further strength in the single currency.

In commodity markets, oil gave up some of yesterday’s gains after American Petroleum Institute data showed inventories increased 2.6 million barrels last week versus expectations of 1.2 million drop. A one-time increase in data should not have a substantial effect on prices, but if it persists over the next couple of weeks, that could be a warning signal that triggers profit-taking. So far, it is the supply side of the equation that’s moving prices; however if demand falls further, problems may arise for OPEC+ who are doing their best to keep the equation balanced.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Trump: I’ll Be Back!

By Orbex

Dollar Hanging in There

The greenback ended on an even keel as investors digested Joe Biden officially beginning his first term in office.

The departing Donald Trump wished the new administration great luck and success but vowed that he will be back.

Stronger risk appetite, as evidenced by ever-higher US equities, has diminished some of the recent demand for the US dollar.

The impulse of further aid relief is likely to remain the key driver for the dollar in the coming days, amid an otherwise quieter US economic calendar through to the end of the week.

Investors Looks for ECB Relief

The euro closed 0.18% lower on Wednesday after initially touching the 1.21 handle.

Eurozone inflation was stuck at -0.3% as it remains in negative territory since August.

Warnings continued for the bloc as the extension of containment measures across the eurozone at the start of Q1 are likely to weigh strongly on services.

The ECB is in action this afternoon, with the markets expecting the press conference to be the key driver for the currency pair.

Sterling Hits 8-Month High

The pound was up by 0.21% yesterday, as intraday pricing saw the currency hit an 8-month high.

A faster pace of the UK’s covid-19 vaccine rollout fuelled hopes of accelerated economic recovery.

The price of goods in the UK as measured by the consumer price index rose at an annual rate of 0.6% in December.

This suggests that the Bank of England is less likely to make further cuts to interest rates that would dent the pound.

Wall Street Closes at Record High

Wall Street greeted new US President Joe Biden by climbing even higher on Wednesday, closing at record highs amid promises of big economic stimulus and relief aid.

The tech-rich Nasdaq led the charge, jumping 2%. This was fuelled, in part, by a huge gain in Netflix shares following a strong earnings report.

In addition, the Dow rose 0.8%, whilst the broad-based S&P 500 climbed 1.4%.

Gold Drives for $1,900

Gold closed almost 2% up yesterday capping off a 2-week high.

The precious metal was supported above a mixed US dollar, as investors favored the stock markets on Wednesday.

However, bulls sided with an element of caution, as previous rallies have lacked the conviction necessary to stage a confident break higher.

WTI Slips on API

Oil dropped by 0.20% on Wednesday as it fell through the $53 level.

The black gold stood on slippery ground as the latest API report saw a jump in inventories.

Also weighing on oil prices was Joe Biden’s decision to cancel the controversial Keystone XL Pipeline on his first day in office.

By Orbex

Optimism is returning to the stock markets after Janet Yellen’s statements and the ZEW Institute report

by JustForex

On Tuesday, the ZEW Institute released data on economic expectations, which showed the growth after a strong decline since October last year for the second consecutive month. The index for Germany was the strongest. Expectations rose by 6.8 points to 61.8, slightly above market expectations of 60.0. The outlook for the German economy has improved amid rising export expectations and despite the uncertainty caused by tightening social restrictions due to the pandemic. About 71% of surveyed economists expect an improvement in economic activity in the coming months, 9% expect a continuation of the decline in the future, and 20% left their estimates unchanged. The current economic situation remains in the negative zone at -66.4.

Janet Yellen impressed the investors, although everything she said was in line with expectations. The lack of desire to race to reduce the value of the dollar and the need for a huge infusion of stimulus funds into the economy are priorities that the stock market “liked”. The S&P 500 returned to its January highs immediately. However, bullish fervor may be subdued. First, the market didn’t hear anything new, and the Republicans will hinder new bills. Secondly, there is no positive sentiment in the credit market. The Treasury yield remained below 1.10%.

Another factor that may deter investors is the lack of a visible desire to extinguish the trade war with China. According to Janet Yellen, China is undermining the position of American companies by erecting trade barriers and providing illegal subsidies to corporations. It also “steals intellectual property and uses methods that provide an unfair technological advantage”. The Celestial Empire was called “an important strategic competitor,” and all available tools will be used to counter it.

So, not much will change for investors considering the impact of Asian business. Apparently, in this part, the political course remains the same, and in the context of an ongoing pandemic for investors, it means additional uncertainty.

Main market quotes:

S&P 500 (F) 3,802.12 +11.62 (+0.31%)

Dow Jones 30,930.52 +116.26 (+0.38%)

DAX 3,899.80 +84.74 (+0.61%)

FTSE 100 6,720.87 +7.92 (+0.12%)

USD Index 90.412 -0.064 (-0.07%)

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Analyst: Mining Project in Quebec Boasts ‘Zone Showing Promise’

Source: Streetwise Reports   01/18/2021

Troilus Gold’s new drill results and their implications are discussed in a Haywood Capital Markets report.

Troilus Gold

In a Jan. 12 research note, Haywood Capital Markets analyst Pierre Vaillancourt noted that Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) announced the findings from the two initial holes drilled at the Troilus property as part of its fall-winter 2020 campaign. “The drill results demonstrate promising potential for the Southwest zone to become the center of gravity for the Troilus deposit,” he added.

Vaillancourt noted that the two holes showed extension of gold mineralization inside and outside of the Southwest zone open pit as defined in the 2020 preliminary economic assessment (PEA).

TLG-ZSW20-204, a 200 meter (200m) stepout hole, encountered broad gold mineralization between 50 meters and 450 meters from surface, outside of the resource envelope and the proposed pit.

Hole TLG-ZSW20-201 confirmed that mineralization extends into an undrilled area in the PEA pit. Mineralization, located 3 kilometers (3 km) from the main resource area, extends for more than 1 meter and remains open.

Further, the holes returned highlight intercepts, the grades of which were higher than those in the existing resource. Specifically, hole TLG-ZSW20-204 showed 1.95 grams per ton gold equivalent (1.95 g/t Au eq) over 20m and 1.5 g/t Au eq over 9m, and included higher grade intervals.

TLG-ZSW20-201 demonstrated 2.48 g/t Au eq over 6m and 2.5 g/t Au eq over 5m, within a broader intersection of 1.74 g/t Au eq over 21m.

Vaillancourt pointed out that mineralization of Southwest, while lithologically similar to that of the other zones at Troilus, contains “more intense alteration, with stronger silica alteration and more veining.” This alteration, considered with the recent drill results, suggests that the Southwest mineralization could have higher grades than the other zones and, therefore, potentially become larger than the other Troilus deposits, the analyst noted.

To further delineate this Southwest mineralization and drill test the recently discovered Beyan and Testard target areas, Vaillancourt noted, Troilus Gold plans to carry out 50 km of drilling at Troilus this year.

“We remain positive as the 2021 drilling program gets underway, which we believe could be transformative for the resource and the outlook of the project,” Vaillancourt concluded.

Haywood has a Buy recommendation on Troilus Gold and a target price on it of CA$4 per share. The stock is currently trading around CA$1.09 per share.

 

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Haywood Securities, Troilus Gold Corp, January 12, 2021

Analyst Certification: I, Pierre Vaillancourt, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Of the companies included in the report, the following Important Disclosures:
▪The Analyst(s) preparing this report (or a member of the Analysts’ households) have a financial interest in Troilus Gold (TLG-T).

▪ Haywood Securities, Inc. has reviewed lead projects of Troilus Gold (TLG-T) and a portion of the expenses for this travel have been reimbursed by the issuer.

▪ Haywood Securities, Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Troilus Gold (TLG-T) in the last 12 months.

▪ Haywood Securities, Inc. or one of its subsidiaries currently provides market making services to Troilus Gold (TLG-T), for which Haywood is compensated by the issuer on a monthly basis.

Long-Awaited Drilling About to Commence at Val-d’Or Projects in Quebec

Source: Streetwise Reports   01/18/2021

Black Tusk aims to find out if adjacent gold mineralization continues onto its property.

Black Tusk Area Map

Black Tusk Resources Inc. (TUSK:CSE; BTKRF:OTCMKTS; 0NB:FSE) is about to start its first drill program—a initial 3,000-meter program—at two of its projects, McKenzie East and Lorraine, both located in the Val-d’Or district in Quebec.

Val-d’Or, literally “Valley of Gold,” has seen gold mining since the 1920s; Agnico Eagle Mines, Bonterra Resources, El Dorado Gold, Yamana Gold, QMX Gold and Monarch Gold—which is being acquired by Yamana Gold—all have operations there. The Canadian Malartic Mine, Canada’s largest mine and a 50-50 joint venture between Yamana Gold and Agnico Eagle, is located not far from McKenzie East.

The lion’s share of Black Tusk’s inaugural drill program is expected to take place at its flagship project, McKenzie East, a 1,676-hectare property that borders Monarch Gold’s McKenzie Break project.

In preparation, over the last year Black Tusk has conducted rock and MMI soil sampling at the project—grab samples have returned assays as high as 241.8 grams per tonne gold (g/t) and 107.2 g/t gold—followed by a drone magnetometer survey and OreVision 3D induced polarization surveys. “This work has given us the first targets that we will be drilling, five or six holes, with some going as deep as 400 and 500 meters,” Black Tusk CEO Richard Penn told Streetwise Reports.

Black Tusk wants to find out if Monarch’s adjacent McKenzie Break deposit continues onto Black Tusk’s side of the border. “Monarch’s McKenzie Break has a proven resource and they have been hitting some incredible numbers. It’s been coming up on trend with what we’re seeing in all the sampling that we’ve done,” said Roman Rubin, Black Tusk’s CFO and a director of the company.

“What we want to do is prove up that the same deposit as Monarch’s is on our ground; Monarch actually expanded its land package to touch ours. By drilling, we are looking to see if that resource is actually much bigger and is underneath us as well,” Rubin explained.

Geologist Dr. Mathieu Piche, a director of Black Tusk who has also done work for both Monarch and a company on the other side of Black Tusk’s property, “believes that the same trend on those two properties carries through our property. Hopefully we can prove that we are right in the middle,” Rubin said.

Yamana’s CA$200 million takeover of Monarch was “one of the biggest acquisitions in Val-d’Or in 2020, if not the largest,” Rubin explained.

Black Tusk expects to start its McKenzie East drill program with about five or six holes, and expand the program based on the assay results. “We are funded to do a lot more that these first holes,” Rubin said. The company expects it will take around two months for the lab to deliver the assay results.

The company will also conduct some drilling at its Lorraine property, also located in Val-d-Or, southwest of McKenzie East. “The holes at Lorraine will be shallower, about 100 meters deep, because the deposit is closer to surface, and we expect to begin with around five holes. The area has platinum group metals, copper and gold,” Penn said.

Black Tusk is fully funded for the drill program, having around CA$2.5 million in its treasury.

“For investors interested in exploration, this is the time to get into a company like Black Tusk,” Penn concluded.

The company is listed on the Canadian Securities Exchange under the symbol TUSK and has approximately 138 million shares outstanding.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Black Tusk Resources Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Black Tusk Resources, a company mentioned in this article.

This Canadian Exploration Play Already Has a Resource

Source: Ron Struthers for Streetwise Reports   01/18/2021

Ron Struthers of Struthers Resource Stock Report profiles this explorer and explains why he sees low downside risk.

Clarity Gold Map

This chart compares gold (GLD) to gold mining stocks, measured by GDX, the seniors and GDXJ, the more junior producers, since the bull market topped out in 2011. It is easy to see that while gold has recovered to its 2011 highs and did break higher, the gold stocks are a long ways from that. The GDX is about -35% below 2011 levels and the GDXJ -65%. This is an opportune time to accumulate still undervalued gold stocks.

One of our most successful junior explorers last year was Amex Exploration in the Abitibi Greenstone Belt in Canada. For a quick refresher, the Abitibi is the world’s largest mineral-rich greenstone geological belt, hosting many major gold and base metal deposits. It is a 450 km long by 150 km wide geological structure that runs through the Canadian Shield, from west of Timmins, Ontario, then eastward to Chibougamau, Quebec.

Gold was found in the area in the late 1800s, but significant gold mining activity accelerated with the discovery of the Dome, Hollinger and McIntyre mines near what is now Timmins, Ontario, around 1909. Since that time, more than 100 mines have produced in excess of 170 million ounces of gold. While the belt is known primarily for its prolific gold mining history, base metals mines in the region have produced over 400 million ounces of silver, 15 billion tons of copper and 35 billion tons of zinc.

The above map comes from a great article on the Abitibi Belt here.

We bought Amex Exploration (AMX) on a pull back, just a couple months after its discovery at a market valuation of C$70 million. Just two months earlier it was only valued at C$10 million. For sure I wanted to get in my next pick in the belt early with Clarity Gold. It has a current market valuation of C$24 million.

Clarity Gold Corp. (CLAR:CSE; CLGCF:OTC) Recent Price $1.20

Shares outstanding: 20.37 million, fully diluted, 23.24 million

The next graphic shows that Clarity is on the same break/fault as Amex Exploration. What is unique about this break/fault is that it does not have as much gold surface showings as the Destor Porcupine and Cadillac Larder Lake to the south and the Detour and Casa Berardi to the north. The Chicobi break where Amex and Clarity are located has some over burden, so it has had much less exploration. That is a good thing as much more potential remains as proven by Amex Exploration.

Another important point is that Clarity has a head start over what Amex Exploration had because it has a 43-101 resource of 360,000 Indicated gold ounces and 247,000 Inferred ounces on one small area of the project. And just like Amex when it started out, most of the previous drilling was at shallow depths when the Abitibi is known to go down to deep depths.

Management

James Rogers, Director, CEO, is a resource professional and entrepreneur active in the exploration and mining sector for over 13 years, and has developed projects in the Americas, Europe and Africa. Rogers is the principal of Longford Exploration Services. Since 2017, James and his teams have identified and vended over 90 resource properties to public and private companies. James specializes in generating projects through focused-area selection from large databases. Results are achieved by employing a number of GIS, 3D software and remote sensing solutions, along with the timely execution of field exploration.

Andrew Male, Director, is an experienced director and executive officer of public and private companies in the resource and investment sectors. A former founder and CEO of a TSX Venture Top 50 company ranked 9th, Male guided the company through the initial financing phases, project acquisitions, deployment of exploration programs, development financing, transitioning mining assets from greenfield to brownfield and the acquisition of adjacent producers and eventual sale to Private Equity. As a seasoned director and officer, Male has sat on a number of boards and worked with multiple companies in varying capacities.

Theo Van Der Linde, Director, is a Chartered Accountant with 20 years extensive experience in finance, reporting, regulatory requirements, public company administration, equity markets and financing of publicly traded companies. He has served as a CFO and director for a number of TSX Venture Exchange and Canadian Securities Exchange (CSE) listed companies over the past several years.

Ian Graham, Advisor, has over 20 years of experience in the development and exploration of mineral projects, corporate transactions, project evaluations and exploration. Graham’s experience is mostly at major mining companies, namely Rio Tinto and Anglo American, including as chief geologist with the Project Generation Group at Rio Tinto. He has been involved with evaluation and predevelopment work on several projects in Canada and abroad, including Resolution Copper (Arizona, USA), Diavik Diamond Mine (Northwest Territories, Canada), Eagle Nickel (Michigan, USA), Lakeview Nickel (Minnesota, USA) and Bunder Diamonds (India).

Michel Robert, Advisor, (B.A., B.A.Sc. (Hons), M.A.Sc (Hons)) is a metallurgist and mining engineer with over 45 years of diverse technical experience in the mining industry, both identifying assets for acquisition and then putting those mines back into production. Robert’s experience in mining operations with major companies, include Quebec Cartier Mining Ltd., Teck Corp., SNC, Lac Minerals (now Goldcorp), AMEC, Minero Peru, Fluor Daniel and Pan American Silver Corp., where Michelıs roles have ranged from foreman to President. As senior vice president for Pan American Silver Corp. from 1995 to 2001, Michel managed operations in Latin America including the expansion of the company into Peru, Mexico and Bolivia.

Michael Williams, Advisor, has over 24 years of experience as a senior mining executive. He has held the role of executive chairman with several different public companies, including Underworld Resources Ltd, which was sold to Kinross Gold Corp in 2010 for $138 million.

Rory Kutluoglu , Advisor, is a professional geologist with over 15 years of international mineral exploration experience and executive management roles in North American and European companies. Kutluoglu was the exploration manager for Kaminak Gold Corp., leading their team to deliver the maiden and updated resources on the Coffee Gold Project prior to Kaminak’s acquisition by Gold Corp. in 2016.

Properties: Destiny, 100% option, 5,013 hectares

Being in a prolific gold belt, there is very good infrastructure with road access to the project. It is located 75 km NNE of Val d’Or Quebec.

Previous work on the property includes:

  • 172 Diamond drill holes comprising approximately 50,400 meters
  • Reconnaissance till sampling from 11 Sonic drill holes
  • 2,430 MMI geochemical samples
  • 982 line km of airborne VTEM surveys
  • 171 line km of ground magnetics surveys
  • 128 line km of IP

There are numerous historical high grade intersects, such as:

  • 23.95 g/t over 3.1 meters from 118.8m (Dac zone)
  • 22.14 g/t over 1.4 meters from 161.8m (Dac zone)
  • 19.49 g/t over 2.7 meters from 166.0m (Dac zone)
  • 167.0 g/t over 1.0 meter from 221.7m (Dac zone)
  • 25.65 g/t over 1.1 meter from 372.9m (Daria zone)
  • 90.3 g/t over 1.0 meter from 87.5m (Gap zone)

Dac deposit: the 2011 NI 43-101 Resource consists of Indicated resources of 360,000 oz Au at 1.05 g/t and Inferred resources of 247,000 oz Au at 0.92 g/t

This next graphic is from CLAR’s presentation that gives a very good picture how this could easily grow into a multimillion ounce deposit. There is at least 3.5 km of strike that has sporadic drill holes that have assayed grades similar to the Dac deposit. You can see how small the area is that makes up the Indicated resources of 360,000 oz Au and Inferred resources of 247,000 oz Au at Dac. Most of the drilling is relatively shallow so there is lots of potential at depth, especially when we know mines in the Abitibi go to depths to a thousand meters and more. The largest mine in the Abitibi is Agnico Eagle’s LaRonde mine, about 50 kms from CLAR’s Destiny and has produced over 6 million ounces and still has 2.9 million ounces of reserves. The current underground mining operation are through the 2.2-km-deep Penna Shaft, the deepest single-lift shaft in the Western Hemisphere. The LaRonde mine extension (“LaRonde 3”) allows access to even deeper ore at the lower part of the ore body. All the high grades hits I quoted on the previous page on CLAR’s Destiny project were at intervals of 222 meters and less. Most drill holes are on angles, so actual depth would be far less.

CLAR has three other projects in British Columbia, but the focus for now is the Destiny project in the Abitibi Belt. There is more info on the website here. The Empirical project had a drill intersect of 21 meters at 3.67 g/t Au. The other two projects have some high-grade surface assays.

Financial

Last financials show $790,000 in cash and no long-term debt. Since then Clarity completed a first tranche of a non-brokered private placement, issuing 1,563,956 units at a price of 96 cents per unit for gross proceeds of C$1,501,397.76. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant is exercisable into one additional share at a price of C$1.25 per share for a period of one year from the closing date. The company expects to close a second tranche shortly. The company is planning a minimum of C$3 million in financing and a maximum of C$9.6 million that will go along way funding the first round of exploration and drilling.

Conclusion

The stock is cheap and the story not well known yet, an ideal time to buy. This will be an exploration play, but they already have 360,000 ounces in the indicated category. At C$1.20 per share, the value on these indicated ounces is about US$50 per ounce, not very much for a project in the Abitibi with strong upside potential.

Amex Exploration hit C$4.00 per share within 18 months of their discovery hole. This was a market valuation of about C$310 million. If we assume another financing after this one, for a total than of 30 million shares out, a C$310 million valuation would be about C$10 per share. I think a reasonable target for 2021, with successful drill results would be between C$5 and C$7 per share, If the gold bull market continues and gold prices go higher as I expect, than we could easily see higher prices on the CLAR stock.

The historical drilling means that downside risk is very low. It also means that targets are already well defined and I doubt there will be too much surface exploration before drilling begins. The company has a good handle on the gold zones and their orientation.

I am only showing a 6 month chart because the stock just started trading beginning of July. It has been consolidating between C$1.15 and C$1.30 since October making a good base here. A break above C$1.30 will be a clear sign the stock is going up to the next level. It is probably still in this range because of the C$0.96 financing announced and that will probably close soon. This project will have no trouble getting financed.

Ron Struthers founded Struthers’ Resource Stock Report 23 years ago. The report covers senior and junior companies with ample trading liquidity. He started his Millennium Index of dividend stocks in 2003 – $1,000 invested then was worth over $4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after 30 years in customer service, systems and business analyst, also developing his own charting software. He has expertise in junior start-ups and was a co-founder of Paramount Gold and Silver.

 

Disclosure:
1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Clarity Gold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: Clarity Gold is a paid advertiser at playstocks.net. Additional disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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Struthers Disclosure: All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.

First Vanadium Pivots to Gold at Carlin Trend Project

Source: Streetwise Reports   01/18/2021

The company is targeting gold under its vanadium deposit, giving the company the potential for optionality.

First Vanadium

Digging deeper has seemed to do the trick: First Vanadium Corp. (FVAN:TSX.V; FVANF:OTCQX; 1PY:FSE) is drilling a Carlin-style gold system below its vanadium deposit on the Carlin Trend in Nevada.

First Vanadium originally explored for vanadium on the property and in 2020 released a positive preliminary economic assessment resource estimate of 180 million pounds of V2O5 flake mined over 11 years and processed over 16 years.

But the Carlin Trend is known for high-grade gold, and more than 84 million ounces have been produced there since the 1960s, with plenty more to come: The Carlin complex, operated by Nevada Gold Mines, the joint venture between Barrick Gold and Newmont Corp., is home to 30 million ounces in the Measured and Indicated category.

“We linked up with Dave Mathewson, the well-known geologist, a former Newmont regional exploration manager and probably one of the best explorers in the world for these types of projects; he has made six gold discoveries himself and tens of millions of ounces of gold,” First Vanadium CEO Paul Cowley told Streetwise Reports.

Mathewson, who now serves as a geological advisor to First Vanadium and is spearheading the gold drilling program, “conceptualized a gold target underneath the vanadium resource, and we’ve drilled on it in the late summer and announced in November that Dave was right; we have indeed intersected a gold system in a prolific world-class gold trend,” Cowley said.

The company has drilled seven holes to date and noted on December 22 that the first three holes “define a Carlin-style gold system with dimensions of at least 500 meters vertically and 1.4 kilometers in length.” First Vanadium expects to receive the assay results for the remaining four holes this month and next; the seventh hole was drilled to a depth of 2,500 feet.

“The first three holes were a pilot test of the system, which proved successful,” Cowley explained. “The subsequent four holes are to start to give us a better understanding of the system.”

The company plans to conduct induced polarization (IP) this month that should help define how big the system is; the results of that along with assays of the remaining drill holes will help guide further drilling.

“The combination of drilling plus geophysics, those tools will help us find the sweet spots in the system. What we’re trying to do now with this program, as well as subsequent programs, would be vectoring in on sweet spots, and that would be high-grade gold,” Cowley said.

The gold system starts at a depth of around 300 meters and goes to at least 760 meters. Cowley explains that this is a fairly intermediate depth for underground high-grade deposits in Nevada. “Two decades ago it was all about low-grade, open-pit mines in Nevada, but now probably 90% of the ounces in Nevada come from deeper, high-grade deposits. So this is realistic and not excessively deep.”

The area has extensive infrastructure: the project is located about 13 miles away from Newmont’s gold processing facility, about 6 miles from the town of Carlin and is easily accessible by road. “We are surrounded by claims owned by Newmont and Barrick,” Cowley noted.

First Vanadium

“We are beyond the proof of concept now. It’s a very exciting pivot from vanadium to gold, and a very real and substantial opportunity for First Vanadium shareholders,” Cowley said.

A gold resource would give the company optionality. The price of vanadium went sky high in 2018 after the Chinese government mandated its use in steel production, driving it to $34 per pound, but the price has since come down and now sits at around $7 per pound. “Vanadium prices should rebound with the deployment of vanadium redox flow batteries in large renewable energy projects around the world,” Cowley noted.

First Vanadium has on option agreement to earn 100% of the Carlin property. “We’ve completed all the terms except for the final payment of $1.9 million,” Cowley said. “That is due in about a year and a half.”

First Vanadium has also just added to its gold portfolio by optioning the AVP property from Dave Mathewson. This property, made up of 40 unpatented lode claims, is located on the southern extension of the Battle Mountain – Eureka Trend, and more specifically, on the southern extension of the Cortex-Gold Bar Trend, 23 kilometers east of Eureka, Nevada.

“We are very pleased to add this high-quality opportunity from Dave Mathewson who obviously has a proven eye for good gold prospects in Nevada. The terms are modest to manage, still allowing us to focus the bulk of our treasury on drilling the Carlin Vanadium-Gold Project,” Cowley said.

In the spring, the company plans to conduct a ground magnetics and gravity survey on the AVP property, followed by reverse circulation drilling in 5-10 holes in 1,500m (5,000 ft) this summer. “Drilling in the 1980s on AVP suggests mineralization remains open in almost all directions and, according to Dave Mathewson, may represent the tip of the iceberg,” Cowley stated.

First Vanadium has approximately 57 million shares outstanding and 76.2 million fully diluted.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: First Vanadium. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Vanadium, a company mentioned in this article.