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21 October 2019 07:33 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,34626,164182.000.70-2.09
S&P 5002,9192,89326.000.91-2.01
NASDAQ7,9047,82480.001.02-2.23
FTSE 100 Index7,1667,14323.000.33-1.40
DAX 3012,09411,970124.001.04-1.42
CAC 40 Index5,4995,45743.000.78-1.68
Nikkei 225 (Japan)21,45621,588-131.00-0.610.30
HKSE25,68325,893-211.00-0.81-3.75
SSE Composite Index2,9252,91411.000.39-3.19
S&P/TSX Composite Index16,38016,29486.000.53-0.95
NZ 5010,93010,941-11.00-0.10-1.91
US Volatility (Vix)19
Overseas Market Report

US sharemarkets fell on Friday by up to 1%. Shares in Johnson & Johnson fell by 6.2% after recalling baby powder products. Boeing fell by 6.8% on wire reports that it misled the Federal Aviation Administration. Shares in American Express lost 2% despite better than-expected earnings. The Dow Jones lost 256 points or 1.0% and finished near session lows. The S&P500 index fell by 0.4% with the Nasdaq down by 67 points or 0.8%. Over the week the Dow lost 0.2% but the S&P500 rose 0.5% and the Nasdaq rose by 0.4%.

Global oil prices were weaker by up to 0.8% on Friday. Optimism over a US-China trade deal balanced soft Chinese economic data. Brent crude fell by US49 cents or 0.8% to US$59.42 a barrel. And the US Nymex price fell by US15 cents or 0.3% to US$53.78 a barrel. Over the week Brent fell by 1.8% and Nymex fell by 1.7%.

Base metal prices were mixed on the London Metal Exchange on Friday. Tin, lead and nickel fell by up to 1.1% with other metals up by as much as 1.3%. Over the week nickel fell by 8.1% but all other metals rose by between 0.4-2.6%.

The gold futures price fell by US$4.20 or 0.3% to US$1,494.10 an ounce. The spot gold price was trading near US$1,490 an ounce in late US trade. Over the week gold rose by US$5.40 or 0.4%. Iron ore fell by US25 cents or 0.3% on Friday to US$85.70 a tonne. Over the week iron ore fell by US$6.95 or 7.5%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent58.3258.240.080.14-6.82
Oil - West Texas crude51.9652.59-0.63-1.20-9.48
Gold Spot $/OZ1,516.001,506.0010.500.692.04
Silver Spot $/OZ17.9017.700.200.87-0.66
Iron Ore94.6093.001.601.702.00
Thermal Coal Newcastle67.5066.900.500.822.90
APAC Hard Coking Coal FOB154.00153.001.000.652.33
Aluminium ($US/t)1,7361,744-8.00-0.44-2.13
Copper Mar-18 ($US/lb)2.552.57-1.70-0.64-2.26
Lead ($US/t)2,1252,143-18.00-0.840.79
Nickel ($US/t)17,49117,674-183.00-1.04-3.38
Zinc ($US/t)2,3272,3189.000.390.58
Tin ($US/t)16,41616,38235.000.21-5.27
Uranium ($US/lb)25.0025.000.000.00-0.80
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,6666,667-1.00-0.01-0.92
S&P/ASX 2006,5466,547-1.00-0.01-1.03
ASX 24 Futures6,521
Australian Market Report

Friday 18 October - close. An early afternoon recovery for the share market was stymied by weaker than expected growth figures from China. At the close of trade the ASX 200 was down 35 points or 0.52%. Notwithstanding today’s weakness the market rose for a second consecutive week with an improvement of more than 0.5% - although the sizeable falls early October means the Index is still down 0.6% for the month.

Ashanti Headlines

Cassini Resources Ltd (CZI.ASX, 9.3cps, m.cap A$38.6m with 415.5m SOI, Cash cA$8.1m, Base Metals Explorer)

  • CZI have announced the final results of its RC drilling program and future work plans at its 100% owned Mt Squires Project which demonstrates a unique, early-stage gold opportunity 
  • Best results are from holes previously released including 20m @ 1.27g/t Au, including 7m @ 2.54g/t Au from 23m in MSC0003, 27m @ 1.00g/t Au from 31m, including 3m @ 2.59g/t Au from 38m in MSC0004 and 19m @ 0.68g/t Au including 6m @ 1.26g/t Au from 38m in MSC0005.

  • Mineralisation is hosted within a hydrothermal breccia at the stratiform contact between a footwall rhyolite and hanging wall (predominantly barren) volcaniclastic unit. Mineralised lodes, defined as >0.1g/t Au, strike E-W to ESE-WNW and are steeply south-dipping. Mineralisation is possibly controlled by the intersection of NWSE and SW-NE trending structures. Mineralisation is outcropping at the eastern margin of the prospect, with an abundance of rock chip samples >0.5g/t Au. The hydrothermal breccia host plunges beneath the volcaniclastic unit (and thickening sand cover) to the west (and potentially north west). Extrapolation of recent and historical drill results indicates a potential mineralised strike of at least 600m, which remains open.
  • Whilst the current exploration focus at the Mount Squires Project is primarily for gold, recent surveying and mapping by Cassini has recognised a potential extension of the magmatic nickel-copper mineralised trend from the West Musgrave Project into the eastern half of the project area. This is supported by:
    • The emergence of the One Tree Hill Prospect within the West Musgrave Project, but only 200m outside the Mount Squires tenement boundary (See ASX release of 18 June 2019).
    • New aeromagnetic data confirming the continuity of broad geological domains and structure into the Mount Squires Project.
    • Field mapping identifying gabbro intrusions along strike of the mineralised trend which had been previously mapped as granites and gneisses.

Next Steps The Company now has multiple fronts on which to progress:

  1. A second RC infill and extension program at Handpump targeting the eastern margin where gold mineralisation projects to surface as well as the down plunge extension to the west and northwest where current drilling is too broad. A drill rig is currently being sourced to complete the program as soon as possible.
  2. A reconnaissance-style drill program to test the trend between Handpump and Centrifical Prospects in light of the new geological and structural interpretation. This program requires additional heritage and environmental clearances. This work is already underway and drilling is anticipated to commence in early 2020.
  3. Investigate the nickel-copper potential extension of One Tree Hill near the eastern boundary of the Project. A geophysical crew will be mobilised to site early next month to complete a moving loop electromagnetic survey which is expected to take approximately two weeks.
  4. Improve the geochemical dataset by infilling and extending the sampling coverage particularly in areas along the prospective gold and Ni-Cu magmatic corridors. An orientation survey, including a trial of Ultra Fine Fraction sampling, will determine the most effective sampling technique in the Mount Squires environment. Sampling will commence later this month.

Activities will continue at the Mount Squires Project until approximately the end of November when attention will turn to the Yarawindah Brook Ni-Cu Project, where a number of new EM conductors are ready to be drilled. The Company also looks forward to delivering the Nebo-Babel Pre-Feasibility Study in early 2020.

Cassini’s Managing Director Mr Richard Bevan commented “We’re delighted with the results from our maiden drill program at Mount Squires. The program, in tandem with our new aeromagnetic data, has demonstrated economic gold prospectivity, improved our geological understanding and generated new targets for future work programs. More broadly, it’s highlighted the potential strategic value of a new greenfield, belt-scale project in a new gold frontier. Mt Squires is the most advanced gold project in the Musgrave Province, with the nearest gold mine, Gruyere, being over 400km away, itself a fairly recent “new frontier” discovery. New frontiers are where some of the most recent and significant gold discoveries have been made in Australia. We see Mount Squires as a natural fit with activities at our West Musgrave Project. Strategically, we believe gold is a good complement to our base metal assets. Our extensive geological knowledge, operational capability and established community relationships provide us with a significant competitive advantage in the region."


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ERA Communications