Company News – Wed 18 Oct, 2017

By Cory

Secova’s First Rushed Assays from Duvay/Chenier Confirms Near-Surface Gold Mineralization

Here are the first drill results from Secova Metals. These results only encompass the top 46.5 meters of the first drill hole out of a total of 3,207 meters drilled. Still a lot of news to come out but the Company seems encouraged by the near surface results. Also note that Secova is raising money to fund the Phase 2 program that is planned.

I will be chatting with Brad Kitchen, Chariman and CEO of Secova about these results later today. If you have any questions for Brad or I please comment or email at Fleck@kereport.com.

Click here to visit the Secova website.

VANCOUVER, BRITISH COLUMBIA – October 18, 2017 – Secova Metals Corp. (“Secova” or the “Company“) (TSXV: SEK, Frankfurt: N4UN, USA: SEKZF) is pleased to announce it has completed the Phase 1 drill program at the Duvay/Chenier gold project (the “Property”), located 15 kms northeast of Amos, Quebec.

“These initial results are extremely encouraging as they show the presence of near surface gold mineralization in a deformed white quartz vein system which was intersected in this initial drill program,” stated Brad Kitchen, Chairman & CEO of Secova. “This is merely the beginning as there are currently over 1,000 assay results in the lab which include similar structures and further mineralized zones that continue at depth. This initial drill program was intended to provide knowledge of the structure of the project, which has been accomplished, but even better, it has also returned significant gold results.”

The drill program comprised 20 drill holes totaling 3207 m, and tested three main target areas. These three target areas are: 1) the northeast shear zone/strong induced polarization (IP) chargeability target; 2) the Duvay Zone Principal, and 3) coincident magnetic/electromagnetic (EM) and structural targets 2 kms northwest of the Zone Principal, near Lake Obalski.

The first forty sample results have been returned from the laboratory. These samples cover only the top 46.5 meters of the first drill hole (DUV17-01) which were rushed for assay, but already reveal a new zone of significant gold mineralization. Drill hole DUV17-01 tested the strong chargeability anomaly identified from the IPower 3D survey and coincident with the northeast shear zone at Duvay. The sample results include 10.0 m of gold mineralization at 0.66 g/t Au from 18.0 m to 28.0 m depth, including an enriched interval of 2.55 g/t Au over 2.0 m from 21.0 to 23.0 m (Table 1). This mineralized interval includes a 5.4 m deformed white quartz vein, with zones of substantial sulfide mineralization and black schist. The true thickness of this zone is not yet known.

Table 1: Gold bearing interval from the first forty samples sent to the lab. Note that the received sample results extend from 3.0 to 46.5 m depth in drill hole DUV17-01. The remaining core from DUV17-01 extending to the end of hole at 201 m is at the lab.

More than 1,000 additional samples have been delivered to the lab, covering the remainder of the first drill hole (DUV17-01), and two other drill …read more

Source:: The Korelin Economics Report

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Scotiabank to offload gold trading unit

By analyst

By Cecilia Jamasmie

The Bank of Nova Scotia, A.K.A. Scotiabank, is offloading its gold business in the wake of a massive money laundering scandal involving smuggled gold from South America by one of its clients.

The Canadian lender’s ScotiaMocatta business is one of London’s main gold trading banks and, according to Financial Times, had among its clients a US refinery accused in March of money laundering using “billions of dollars of criminally derived gold” mostly from Peru.

Moves comes on the heels of massive money laundering scandal involving smuggled gold from South America by one of the bank’s clients.

Court documents filed in Florida claim that workers at a subsidiary of Elemetal, a precious metals refinery in Dallas, “knowingly conspired to purchase gold with the intent to promote the carrying on of organized criminal activity, including illegal gold mining, gold smuggling and the entry of goods into the US by false means and statements to US Customs, and narcotics trafficking,” FT reported.

Elemental’s unit, NTR Metals, is said to have imported more than $3.6 billions of gold from Latin America between 2012 and 2015.

Chinese buyers are rumoured to be the key targets of the Scotiabank sale, which is being led by JPMorgan.

Scotiabank (TSX, NYSE: BNS) is Canada’s international bank and a leading financial services provider in North America, Latin America and Asia-Pacific, with more than 24 million customers and 88,000 employees.

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Source:: Infomine

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These Countries May Move to Ban Cash

By Matthew Carr There’s a war on cash.

“Old money” is outnumbered, fighting multiple fronts.

The rise of credit and debit cards has eroded the need for cash. Meanwhile, the quick uptick of mobile payments over the last several years has been pushing physical money to the brink of obsolescence.

It’s a war cash isn’t likely to win…

In fact, in many countries, cash is already disappearing. In several, it could soon be banned altogether.
Businesses Embrace the Cashless Society
“We’re focused on putting cash out of business.” That was Visa (NYSE: V) CEO Al Kelly at the company’s investor day in June.

During the summer, Visa announced it would grant up to $10,000 to 50 small merchants if they stopped accepting cash completely, instead accepting only debit cards, credit cards and mobile payments.

Some restaurants, like Sweetgreen, have already phased out cash as a form of payment in many states.

That’s a credit card executive’s dream. And more importantly, I believe that’s what a credit card CEO should be focused on – eliminating cash. It’s their competition.

Consumers are foreseeing cash being eliminated much more quickly than executives are.

A recent survey found that consumers thought they’d be using 32% less cash in the future. Executives in the same survey thought the decline would be a more conservative 5%.

At the same time, a study by NTT Data found that companies that accept mobile payments are growing faster and are more profitable than those that don’t.

Of companies that reported annual revenue growth of 11% or more, 43% offered an app that supported purchases and payments.

So executives – if they haven’t already – really must sit up and take note.
AliPay and WeChat Take China Cashless
There may be no more perfect picture of a cashless society than what we’re seeing in Asia.

In China, cash is gravely wounded and on its deathbed.

And if you don’t have a mobile payment account, you’re going to have a difficult time accomplishing even the most basic tasks.

Mobile payment volume in China doubled to $5 trillion last year.

No surprise, China’s tech giants dominated this sector.

Alibaba’s (NYSE: BABA) Alipay accounted for 54% of the market, while Tencent’s (OTC: TCEHY) WeChat Pay represented 40%.

And here we have to remember the economies of scale. Both are largely China-centric. Given the size of its domestic economy, why race to expand internationally?

Alibaba’s Alipay has 520 million users.

Tencent’s WeChat messaging app – the most popular in China – has 963 million monthly active users.

Just for comparison, Facebook’s (Nasdaq: FB) Messenger – which spans the globe – has 1.3 billion monthly active users.

[iu-adbox]

Because of the country’s sheer size, China’s embrace of mobile payments is forcing surrounding countries to follow suit.

For example, earlier this year, it was announced that the number of stores accepting Alipay in Japan would double to 45,000. That’s solely to accommodate Chinese tourists. And Alipay is gaining a foothold among Japanese consumers as a result.

You also can’t ignore that Alipay encourages people to invest by linking to the online money market fund Yu’e bao. With its near 4% interest rate and Alipay’s help, Yu’e bao became …read more

Source:: Investment You

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Vale puts stake in New Caledonian nickel unit up for sale

By analyst

By Cecilia Jamasmie

Brazil’s Vale (NYSE:VALE) is looking to sell a stake in its loss-making New Caledonian nickel operations as part of a wider review of low performing assets after new Chief Executive Fabio Schvartsman took charge in June.

Production costs at Vale New Caledonia (VNC), one of the world’s top nickel mines, are currently are too high for it to be profitable and there has been ongoing rumours that point at the imminent closure of the operation.

Company said to be working with Scotiabank to sell the stake in VNC, on the South Pacific island of New Caledonia.

According to FT.com (subs. required) the miner is working with Scotiabank and as held discussions with a number of Chinese groups including Gem Co, a Shenzhen-based company that recycles and refines nickel cobalt for use in batteries.

The company, the world’s No.1 iron ore producer, has said its goal is to slash costs to $10,500 to $11,000 a tonne at VNC by the end of the year, as it ramps up production and prices of by-product cobalt soar — it’s up 80% so far this year.

The company has already flagged its intention to halt two of its high-cost Canadian mines this year.

Nickel miners are coming under renewed pressure to cut costs or close capacity as a flood of cheap ore enters the market, hurting prices for the commodity. While the metal is up about 18% this year to roughly $12,000 a tonne, they have still more than halved since 2011.

Increasing demand for electric vehicles nickel-manganese-cobalt (NMC) batteries is expected to have a major impact on the beleaguered industry. The change won’t happen overnight, but by 2025 experts predict that batteries would account for 13% to 15% of the nickel market, with demand for the metal growing 20% in average each year until then.

Nickel mining is a key industry in New Caledonia, which holds as much as a quarter of the world’s known reserves. Vale’s plant is the second-largest employer in the southern province of Goro, with some 3,500 permanent workers and contractors.

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Source:: Infomine

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Dow Domination: 23,000 and Counting!

By Greg Guenthner

This post Dow Domination: 23,000 and Counting! appeared first on Daily Reckoning.

The best part about my new “Dow 23,000” hat is that I can use a Sharpie to easily turn it into a “Dow 28,000” hat in just a few months as this unstoppable bull market continues its charge…

Yes, the Dow Jones Industrial Average registered another mundane milestone on Tuesday as it finally crossed 23,000 intraday (we’re still waiting on a close above the round number). After an excruciating wait of more than two months, we finally have another 1,000-point climb to celebrate!

Of course, these little 1,000-point parties are completely ridiculous. If you stay glued to the financial news, you might even feel the market mania starting to set in. Word’s getting out: the stock market is hot.

Back in early August when the Dow first eclipsed 22,000, I said I wouldn’t be surprised if the milestone marked the beginning of a late summer pullback in stocks. My reasoning was simple: whenever investors start to get cocky, the market finds a way to knock ‘em down a peg or two.

But a legitimate pullback never materialized. August can be a trying month for traders. Same goes for September. But not this year. After a short sideways pause, the major averages stormed back to new all-time highs in September. They haven’t looked back since.

We had our fun when the Dow crossed 20,000 back in February. After all, it took several stalled-out attempts to crack the magical 20,000 mark. We had to wait two agonizing months for the real breakout to happen. Ridiculous!

Thankfully, the 1,000-point wins are beginning to cluster.

The market gods gave us the break above 23,000 a mere 53 trading days after 22,000 was first breached. It’s the fourth round-number milestone the Dow has hit in 2017. And it might not be the last. Dow 24,000 is just a little more than 4% away from yesterday’s close.

“However, each clamber higher for the Dow will make its 1,000-point achievements far less momentous — at least arithmetically speaking,” MarketWatch reports. “That’s because, as the market rises, each 1,000-point advance becomes smaller in percentage terms. For example, the rally between 10,000 and 11,000 in 1999 marked, of course, a 10% rise, while the move from 19,000 to 20,000 was a 5.3% move, and the climb from 20,000 to 21,000 for the Dow marked a 5% rise.”

But let’s not allow some pesky mathematics to get in the way of our fun…

The market continues to march higher. Winning trends and consistent trading gains are yours for the taking. Way back in the summer, we noted that a 5% pullback would scare plenty of weak hands out of stocks and provide the perfect setup for a blazing fourth-quarter rally. Our reasoning was simple: Most investors have forgotten what a pullback even feels like. Even a mild correction could induce some serious short-term panic.

Turns out even a 5% drop wasn’t a necessary ingredient for the start of our predicted fourth-quarter melt-up. Instead of taking breaks, …read more

Source:: Daily Reckoning feed

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Gold Market Commentary – Tue 17 Oct, 2017

By Cory

Gold & Silver- Desperately need this to hold!

The chart below is courtesy of Chris Kimble over at Kimble Charting Solutions. I am not a short term trader so I try to stay away from the short term charts. However when presented with a 30+ year chart I take note. Chris is simply showing us there is a strong support line in the silver/gold ratio that we are approaching. The important aspect to note is that an increasing chart is indicative of a bull market. No telling on where we go but it is important for this ratio to bounce soon.

Click here to visit Chris’s site and read more of his technical analysis.

Below looks at the Silver/Gold ratio over the past 30-years. Metals bulls (both Gold & Silver) want to see the ratio moving higher, to send a quality bullish message to both.

The ratio has spent the majority of the past 30-years inside of rising channel (1). When the ratio hit the top of the long-term rising channel back in 2011, the ratio put in a large bearish reversal pattern at (A). This is where both Gold & Silver both started turning weak.

CLICK ON CHART TO ENLARGE

Over the past 5-years, the ratio has created a series of lower highs and lower lows inside of falling channel (2), which is not long-term bullish for the metals. The ratio hit rising support at the start of 2016 and short-term counter-trend rally took place, which took it to the top of its falling channel last summer.

The lows over the past 13-years and rising support (1) come into play at (3), as a dual support test.

Gold & Silver bulls BIG TIME want to see support hold at (3)!!! If support would fail to hold at (3), it would send a long-term concerning message to Gold & Silver bulls. What happens at (3) should send a very important long-term message to the Gold and Silver markets.

…read more

Source:: The Korelin Economics Report

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BHP’s copper production up sharply, iron ore down

By analyst

By Frik Els

The world’s number one mining company BHP (NYSE:BHP) reported solid September quarter production across its business units on Tuesday and made no changes to its production and cost guidance for its current financial year to end-June 2018.

The Melbourne-based giant said improved mine productivity and record output at its Jimblebar operations in Western Australia
partially offset the impact of planned maintenance and lower opening stockpile levels following the fire at its Mt Whaleback screening plant in June 2017.

Production at its iron ore unit fell 3% year-on-year to 56m tonnes for the three months to end-September. Compared to the previous quarter output declined 8%.

BHP expects iron ore production for its current financial year to end June 2018 to rise 3–5% to between 239–243m tonnes on an attributable basis and to 275–280m tonnes in total.

Coking coal production was static at 11m tonnes for the quarter with record production at the Saraji mine and increased productivity across its Queensland mines offset by lower production at Broadmeadow. For its 2018 financial year BHP expects to produce 44–46m tonnes of met coal, an increase of 10–15% year on year.

The company’s output of coal used in power generation declined by 2% to 7m tonnes mainly as the result of bad weather at its Cerrejón operations.

In August, BHP approved the expansion of its Spence copper mine for a capital outlay of $2.5 billion to increase production by 185,000 tonnes per year and extend the life of the mine by more than 50 years

Copper production for the September quarter jumped 14% to 404,000 tonnes boosted by increased volumes at Escondida and the start-up of the Los Colorados Extension project and higher average copper grades and throughput. Los Colorados will ramp up to full capacity during Q4 2017.

BHP expects full year copper output for 2018 to recover by 25–35% overall as Escondida expansion plans push production at the mine to between 1.13m–1.23m tonnes. Strike action that lasted 44 days at Escondida saw output at the giant mine down by more than a fifth during the company’s previous financial year.

In August, BHP approved the expansion of its Spence copper mine for a capital outlay of $2.5 billion which will increase production by 185,000 tonnes per year and extend the life of the mine by more than 50 years.

BHP’s expects zinc output to reach in the region of 100,000 tonnes in its current financial year. Nickel production gained 20% year on year during the quarter and is expected remain unchanged for the full year at 85,100 tonnes.

BHP said exploration spending for the quarter totalled $43 million with greenfield exploration focused copper targets within Chile, Peru, Canada, South Australia and the southwest US.

Production from BHP’s oil and gas business, which after pressure from activist shareholders the company plans to sell, declined 8% to 50m barrels oil equivalent during the quarter due to natural field decline and the impact of Hurricane Harvey.

ADRs of BHP trading in New York did not react after hours on Tuesday. BHP stock is worth $107 billion after rising 18.6% since the start of the year.

The post <a class="colorbox" class="colorbox" rel="nofollow" …read more

Source:: Infomine

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Gold price bull Marc Faber under fire for racist comments

By analyst

Marc Faber under fire for racist comments

By Frik Els

Marc Faber in 2014. Image from archives

Well-known market commentator, contrarian investor and gold bull, Marc Faber, is coming under fire for comments made in his latest missive for the Gloom, Boom & Doom Report.

In the October edition of his closely-followed newsletter 71-year old Swiss-born Faber who lives in Thailand writes:

“And thank God white people populated America, and not the blacks. Otherwise, the US would look like Zimbabwe, which it might look like one day anyway, but at least America enjoyed 200 years in the economic and political sun under a white majority.”

“I am not a racist, but the reality — no matter how politically incorrect — needs to be spelled out.”

Canada’s Sprott Inc announced on Tuesday that Faber was asked to resign from the board of the $10 billion alternative asset manager and precious metals investment firm:

“The recent comments by Dr. Faber are deeply disappointing and are completely contradictory with the views of Sprott and its employees,” said Peter Grosskopf, CEO of Sprott.

Faber also sits on the board of Vancouver-based Novagold Resources which is advancing the Donlin project in Alaska and Ivanhoe Mines which has copper projects in the Congo and precious metals investments in South Africa.

Bloomberg reports Robert Friedland, founder of Ivanhoe, said by email that “he didn’t want to comment because he hadn’t read Faber’s report.”

Novagold announced Faber’s departure from its board in a terse statement on Tuesday afternoon noting the resignation from the board is effective immediately.

BusinessInsider reports a number of media outlets including Fox Business, CNBC and Bloomberg TV said they do not intend to book Faber in future, but Faber is standing by his report:

“If stating some historical facts makes me a racist, then I suppose that I am a racist,” Faber wrote in an email to Bloomberg and CNBC. “For years, Japanese were condemned because they denied the Nanking massacre.”

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Source:: Infomine

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Chris Vermeulen – The Gold and Oil Guy – Tue 17 Oct, 2017

By Cory Updates On Oil, USD, and Metals

The Gold and Oil Guy, Chris Vermeulen joins me today to recap some of the markets we cover most closely. Chris outlines an upside and downside scenario for oil. As for the US dollar we relate how moves here could impact the metals which have been performing nicely.

Click here to visit Chris’s website.

Download audio file (2017_10_17-Chris-Vermeulen.mp3)

…read more

Source:: The Korelin Economics Report

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Gold: Higher Highs and Lower Lows

By James Rickards

This post Gold: Higher Highs and Lower Lows appeared first on Daily Reckoning.

Gold could be in a long-term trend right now that spells dramatically higher prices in the years ahead.

To understand why, let’s first look at the long decline in gold prices from 2011 to 2015.

The best explanation I’ve heard came from legendary commodities investor Jim Rogers. He personally believes that gold will end up in the $10,000 per ounce range, which I have also predicted.

But Rogers makes the point that no commodity ever goes from a secular bottom to top without a 50% retracement along the way.

Gold bottomed at $255 per ounce in August 1999. From there, it turned decisively higher and rose 650% until it peaked near $1,900 in September 2011.

So gold rose $1,643 per ounce from August 1999 to September 2011.

A 50% retracement of that rally would take $821 per ounce off the price, putting gold at $1,077 when the retracement finished. That’s almost exactly where gold ended up on Nov. 27, 2015 ($1,058 per ounce).

This means the 50% retracement is behind us and gold is set for new all-time highs in the years ahead.

Why should investors believe gold won’t just get slammed again?

The answer is that there’s an important distinction between the 2011–15 price action and what’s going on now.

The four-year decline exhibited a pattern called “lower highs and lower lows.” While gold rallied and fell back, each peak was lower than the one before and each valley was lower than the one before also.

Since December 2016, it appears that this bear market pattern has reversed. We now see “higher highs and higher lows” as part of an overall uptrend.

The Feb. 24, 2017, high of $1,256 per ounce was higher than the prior Jan. 23, 2017, high of $1,217 per ounce.

The May 10 low of $1,218 per ounce was higher than the prior March 14 low of $1,198 per ounce.

The Sept. 7 high of $1,353 was higher than the June 6 high of $1,296. And the Oct. 5 low of $1,271 was higher than the July 7 low of $1,212.

Of course, this new trend is less than a year old and is not deterministic. Still, it is an encouraging sign when considered alongside other bullish factors for gold.

Where does the gold market go from here?

We’re seeing a persistent excess of demand over new supply. China and Russia alone are buying more than 100% of annual output each year.

Private holders are keeping their gold as well. On a recent visit to Switzerland, I was informed that secure logistics operators could not build new vaults fast enough and were taking over nuclear-bomb-proof mountain bunkers from the Swiss Army to handle the demand for private storage.

With gold sellers disappearing and large demand continuing, the price will have to go up to clear markets.

Geopolitics is another powerful factor. The crisis in North Korea is not getting any better; it’s actually getting worse. Syria, Iran and the South China Sea are additional flashpoints. The headlines may fade …read more

Source:: Daily Reckoning feed

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