Good afternoon
markets are bouncing! There is little doubt, that we will continue to get used to this short term volatility, I fear! With Trump always good for a surprise, elections coming up soon in the US, and the world right in the middle of the second corona-wave ( and probably more waves coming, before somebody will discover a vaccine!), nothing will be smooth!
Equities are making up some of the lost ground today in Europe, and are slightly up in the US. The support is - once again - coming from the tech sector.
Base metals are also bouncing - copper is nearly back to the recent high from 2 days ago, zinc also up by 1,2%, but nickel is lagging , managing only a 0,5% rise by mid afternoon.
Gold is still mirroring the US$, which is very slightly up - so gold is very sllightly down! Interesting, that yeesterday , which saw the largest fall in gold in more than a month, saw the largest inflow in Gold ETF´s in a year, according to Bloomberg.
The Tesla Battery Day presentation is only starting at 1.30 Californian time, so only in a few hours and too late for this report.
Strike / Warrego - as expected, the JV has now started drilling the very important West Erregulla well. Important to get a better fel for the size of the discovery, which has already been confirmed! Watch this space - but I think it will be definitely 2 month or even more, before we know, as a 5000m well needs a lot of time!
Chalice - this is hot indeed! The company has discovered several, very large anomalies, which look substantially larger than the original one, which led to the discovery of the Julimar Ni/Cu/PGM/gold discovery. Realistically, it´s way too arly to quantify this - but geologists are very excited indeed! They are talking about this disovery of a new province / a Voisey Bay or Olymic Dam- style ( in terms of size ) discovery, or one of the largest disovery for a few decades! But to havee you not too excited - an anomaly is just that, and drilling results will have to follow. Also, the main anomaly is within State Forest, and the company doees not yet have approvals to conduct even not-ground-disturbing xploration there. They are commenting, though, that they are in positive talks with the relevant authorities. Generally, Western Australia is obviously very supportive of mining.
One thing is for sure - this thing is very large - just how large, and how economically feasible, only much further work will tell. In the meantime, I continue to hold a slightly reduced position - waiting also for the results of 50 as yet unreported drillholes!
Have a nice evening!
WS