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KRO Weekly Summary: July 28 to August 3, 2019


KRO Weekly Summary: July 28 to August 3, 2019
The KRO Summary lists all Trackers and Blogs published during the designated weekly or monthly period so that so readers can easily catch up on what they may have missed. We no longer notify KRO members by email about new material except in special circumstances. When a Tracker is posted at KRO we notify members through the KaiserResearchOnline Slack Workspace. If you are an active KRO member and not registered on Slack, please let us know and we will send the invite. We will email the link to the KRO Summary to all KRO members when it is published. We will also Tweet the link so that Twitter followers can catch up at their leisure. The title links to the Tracker or Blog, the charts in the Discovery Watch Blog link to the YuoTube audio segment for that company, and the Tracker charts link to the free Corporate Profile. On occasion we may include commentary on the state of the market.
Activity in the junior resoruce sector picked up during July as gold managed to claw its way back over $1,400 several times, finishing off the month with new highs since 2013 as Trump responded to the single 0.25% cut in the federal interest rate by escalating the trade war with China with a 10% tariff on an additional $300 billion worth of exports to the United States which reaches into goods purchased directly by consumers. It is supposed to come into effect on September 1, just in time to impact the Christmas shopping period that turns retailers income statements positive, which has unleashed a lot of squawking from American businesses. Federal Reserve Chairman Jay Powell explained this as a "one time" adjustment to negative economic pressures created by America's trade policies which are linked to Trump's America First strategy. The message was that this modest reduction was not the beginning of a rate lowering trend, which initially hurt the price of gold because the lower that interest rates get, the better the case for owning gold. Trump, who some cynics suspect needs lower interest rates for his private empire's variable rate debt, got the message and made his trade war escalation decision.which was inevitable because the showdown between China and America over the destiny of China as a global power rivaling the Unietd States really does not have any resolution short of an abject capitualtion by China, which is not going to be done voluntarily as long as ruler for life Xi Jinping is driving China's new agenda as a totalitarian power. China has responded by instructing its state owned entities to stop buying all American agricultural products which is good for gold because Trump will have little choice but to shield his ase with taxpayer bailouts which boost the $22 trillion debt and does nothing to boost the economy. China has also "allowed" its renminbi to slide above the symbolic 7:1 rate. Trump's winner=take-all attitude toward global trade has created the TINA trap for the US dollar, which everybody else wants to stop using, but really cannot in the short to medium term. It seems the worse Trump behaves, the stronger the dollar gets, which undermines the competitive advantage his tariffs are supposed to create for domestic producers. While the market remains focused on interest rate related drivers for the gold price trend, the big picture really is the growing uncertainty about where will all this lead? At the Sprott Conference I made the case in my presentation Potential Trends for a World in Flux that gold is in the early stages of a major repricing into the $2,000-$3,000 range similar to what happened in the seventies which will have profound implications for gold optionality plays and gold exploration because it will not be linked to the usual song and dance about fiat currency debasement and hyper-inflation. This message does not really resonate with the traditional gold bug audiences because this sort of thumbs up for gold is an implicit thumbs down for Trump and his agenda.This creates an oppotunity for liberals who have traditionally shunned gold as the bailliwick of right-wingers to embrace gold over the next 16 months, and if a Democrat manages to take the US presidency we have a perfect storm as traditional gold bugs re-embrace gold with a full-throated roar while liberals, cognizant that the Senate will continue to be Republican, will hardly feel inclined to abandon gold because the Democrats will "fix" things. And of course if "infrastructure renewal" finally gets embraced as something America needs to do to make itself great again, the resulting debt escalation will not push gold into a downtrend.. Meanwhile it is really hard to imagine why senior equities will remain near their highs while Trump uses trade war escalation to harm the economy so that he gets a frantic lowering of interest rates by the Federal Reserve.
Aug 2, 2019 - Tracker - Tracker: Can South Grass Valley define a new Carlin Trend?
Nevada Exploration Inc provided an update on August 1, 2019 which did not report any assays for hole #9 but did include a strip log that shows an increase in gold and pathfinder values in the bottom 50 m of the hole before it was lost at 621 m depth. While the gold values are stronger than in earlier holes, they are still pretty much below 50 ppb, so we do not yet have that ore grade interval the market is waiting for. Hole #10, which was located 400 m northwest of hole #9 to target shallower be...
Aug 2, 2019 - Tracker - Tracker: Partial Mythril results still fall sort of a confirming a major James Bay copper discovery
Midland Exploration Ltd reported on July 30, 2019 that it has completed a 16 hole program (5,200 m) on the 100% owned Mythril project for which the results of the first 5 holes covering 1,300 m of the original dipole-dipole IP anomaly have been provided. These initial holes were located to over and under cut the holes drilled in March-April which had revealed that the high grade copper boulders were coming from narrow zones tracking the contact between south-dipping, east-west striking granitic ...
 
 

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