ORENINC INDEX – Monday, October 15th 2018
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Last week index score: 19.06
This week: 16.72
Zinc One Resources (TSXV:Z) announced drill results from 16 of the remaining 35 holes in the Mina Grande Centro zone from its Bongará zinc mine project in Peru.
Avrupa Minerals (TSXV:AVU) announced a drilling programme to advance the Sesmarias Cu-Zn discovery on its Alvalade property in Portugal.
The Oreninc Index decreased in the week ending October 12th, 2018 to 16.72 from 19.06 a week ago with the market posting multi-month lows on key figures as financings evaporated as Canada enjoyed its Thanksgiving holiday.
Trade war. The tit-for-tat exchange of tariffs between the US and China looks to have stepped up into a full-blown trade war according to a statement released by the Chinese Commerce Minister, Zhong Shan, reported Bloomberg. This could prove to be the catalyst to ignite gold.
Market commentators have been calling a bottom in gold for many weeks and expounding on the confluence of factors that should result in a meaningful breakout for gold. The past week could have seen the first step in that breakout as a significant fall in equity markets saw gold jump well above the US$1,200/oz mark and maintain most of those gains as the week ended. Both the S&P 500 and Dow Jones Industrial Average saw significant falls of around 3%, whilst bond yields grew to their highest levels in seven years. Is capital beginning to move back towards old school havens?
On to the money: total fund raises announced decreased to C$10.1 million, a 196-week low, which included no brokered financings and no bought-deal financings. The average offer size fell to C$0.8 million, a 41-week low, whilst the number of financings decreased to 13, a nine-week low.
Gold hit a ten-week high as it closed up at US$1,217/oz from US$1,203/oz a week ago after hitting a mid-week high of 1,224/oz. It is now down 6.58% this year. The US dollar index pulled back to 95.22 from 95.62 last week. The van Eck managed GDXJ took a step forward as it closed up at US$29.30 from US$27.62 a week ago. The index is down 14.15% so far in 2018. The US Global Go Gold ETF also took a step forward as it closed up at US$11.02 from US$10.54 a week ago. It is now down 15.30% so far in 2018. The HUI Arca Gold BUGS Index closed up at 153.30 from 143.43 last week. The SPDR GLD ETF finally stopped shedding ounces and began accumulating with its inventory increasing to 744.64 tonnes from 730.17 tonnes a week ago.
In other commodities, silver shed a few cents as it closed down at US$14.58/oz from US$14.63/oz a week ago. Copper added a few cents to close up at US$2.80/lb from US$2.76/lb last week. Oil took a haircut as WTI closed down at US$71.34 a barrel from US$74.34 a barrel a week ago.
The Dow Jones Industrial Average took a big dump as it closed down at 25,339 from 26,447 last week. Canada’s S&P/TSX Composite Index followed suit as it closed down at 15,414 from 15,946 the previous week. The S&P/TSX Venture Composite Index also pulled back as it closed down at 698.60 from 705.69 last week.
Calibre Mining (TSXV:CXB) announced a non-brokered private placement financing of up to 11.4 million units @ C$0.44 post-consolidation to raise gross proceeds of up to C$5.0 million.
Major Financing Openings
Major Financing Closings
Zinc One Resources (TSX-V:Z) announced drill results from 16 of the remaining 35 holes in the Mina Grande Centro zone from its Bongará zinc mine project in Peru.
The Mina Grande Norte results were very high grade and so it can be expected that the area will make an important contribution to the overall resource estimate that the company plans to complete later in the fourth quarter.
Avrupa Minerals (TSX-V:AVU) announced a drilling programme to advance the Sesmarias Cu-Zn discovery on its Alvalade property in Portugal.
Resuming drilling on Alvalade will provide the company with the opportunity to show additional potential at the project with the aim of securing a partner to advance its exploration, whilst maintaining the work commitment requirement to maintain the concession in good standing.
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