ORENINC INDEX falls though financings strong

 

ORENINC INDEX - Monday, September 11th, 2017

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Last week index score: 70.51

This week: 67.02

 

NuLegacy Gold (TSXV: NUG) reported assays from reverse circulation holes drilled in the North Iceberg and newly discovered Serena zone of its Red Hill property in Nevada, USA.

LiCo Energy Metals (TSXV: LIC) entered into a property purchase with Glencore.

Castle Silver Resources (TSXV: CSR) signed a memorandum of understanding with Granada Gold Mine for the consideration of the processing of mineralised material from the Granada mine.

 

The Oreninc Index fell in the week ending September 7th, 2017 to 67.02 from 70.51 the previous week although there was strong bought deal activity, as the Labor Day holiday distorted the index.

Total fund raises announced increased to C$151.3 million, a ten-week high, which included five brokered financings for C$47.2 million, a two-week low, and four bought-deal financings for C$40.0 million, also a two-week low. The average offer size grew to C$6.1 million, a 27-week high, whilst the total number of financings announced decreased to 25, a two-week low.

The growth in metals prices of late ran out of steam at the end of the week as investors took profits, suggesting that prices may have gotten ahead of themselves.

The news focuses this week was on natural disasters with Hurricane Irma slamming into Florida as I write and as Hurricane Katia hits Mexico, following hot on the heels of Hurricane Harvey that recently hit Houston, Texas, and preceding Hurricane Jose that so far is following a similar course as Irma. At least 90 have also been killed by an 8.1 magnitude earthquake of the century just off Mexico’s southern coast. Many see such things as a sign of things to come as global warming effects change on weather patterns and increases the ferocity, damage potential and frequency of hurricanes. Such events should have profound implications for the rebuilding of coastal communities and where and in what form development can occur, but will public policy be up to the task?

Gold continued its climb to strength although it saw some profit-taking as the week ended, closing at US$1,346/oz up from US$1,325 last week. Gold is now up 17.4% since the start of the year. The van Eck managed GDXJ was lifted by the gold price increase and is now up 17.2% so far in 2017 to close the week at US$36.96. The recently launched US Global Go Gold ETF also had a strong week to close at US$13.74 from US$13.48 last week. The SPDR GLD ETF saw increased to raise inventories to 840 tonnes before profit-taking saw it close at 834 tonnes compared to 831 tonnes the previous week.

In other commodities, having recently broken through the US$17/oz mark silver raced on through the US$18/oz level before retreating slightly to close at US$17.97. Having experienced steady growth in recent weeks the red metal saw a sharp sell off on Friday to close at US$3.02/lb from US$3.12/lb the previous week. Oil also saw a sharp sell off on Friday, although still slightly up on the week, closing at US$47.48 per barrel, from US$47.29 per barrel last week.

After starting the week on a downward trajectory, the Dow Jones Industrial Average closed down at 21,797 from 21,987 last week. Canada’s S&P/TSX Composite Index downward bent was straight as an arrow as it closed down at 14,985 from 15,191 the previous week. The S&P/TSX Venture Composite Index also fell to close at 772.02 from 778.45 the previous week.

The Oreninc team recorded the latest in its series of podcasts this week with Mercenary Geologist, Micky Fulp. The recording will be posted to Oreninc.com shortly.

 

Summary:

 

 Financial news highlights

Novo Resources (TSXV: NVO) undertakes non-brokered equity private placement with Kirkland Lake Gold.

 

 Major Financing Openings:

Major Financing Closings:

 

Company news

NuLegacy Gold (TSXV: NUG) reported assays from reverse circulation holes drilled in the North Iceberg and newly discovered Serena zone of its Red Hill property in Nevada, USA.

Analysis

As the company’s understanding of the geology of the area it is encountering more higher-grade areas that are associated with Carlin-type gold deposits. Drilling at Serena, in addition to confirming the discovery, also suggests possible convergence with the North Iceberg deposit.

 

LiCo Energy Metals (TSXV: LIC) entered into a property purchase with Glencore.

Analysis

The property is adjacent to the company’s Teledyne cobalt property, which therefore increases the land available for exploration. The acquisition also gives the company access to the exploration data previously generated on the Glencore property that will assist the effort to discover and define new mineralisation. Should economic deposits be discovered, the agreement also outlines the potential for an offtake agreement with Glencore that would dramatically assist in its commercialisation.

 

Castle Silver Resources (TSXV: CSR) signed a memorandum of understanding with Granada Gold Mine for the consideration of the processing of mineralised material from the Granada mine.