US Tariff Deal, Fitzroy Minerals Breaking Out

Gold ETFs Up!

U.S. Tariff Deal

Stephen Miller, was on Fox news, he is U.S. homeland security advisor and deputy chief of staff for policy, the meeting with PM Carney went well. Miller says U.S. President Donald Trump has helped to secure a new trade and defense relationship with Canada, following the first meeting between Trump and Prime Minister Mark Carney.

“President Trump has opened up a completely new relationship with Canada because of his strength and because of his diplomacy,” Miller said and Canada is “finally” discussing increasing military spending to meet the NATO requirement of 2 percent of GDP on defense, “so they’re not a free rider with the United States anymore.”

He also highlighted that Carney “acknowledged the need to strike a fairer trade deal with the United States” and that Ottawa is taking additional steps to secure the Canada-U.S. border and reduce illegal immigration and drug smuggling.

This was never the big deal or the big bad orange man that the election narrative played out. It was just a big con that fooled a lot of Canadians. A solution is not hard to do.

PM Carney's cohorts in the U.K. announced a deal with the U.S. today. Bank of England governor Andrew Bailey said it was “excellent that the UK is leading the way” with an expected trade deal with the U.S., which will “help to reduce uncertainty”.

The key benefit for the U.K. is that Britain will be able to send 100,000 cars into the U.S. with a tariff of just 10% - down from 25%. In addition, the U.K. steel industry will no longer face tariffs thanks to today’s deal after the U.S. tariff was cut from 25% to zero.

Both countries will be able to sell beef to each other. And the U.K. will remove the tariff on ethanol – which is used to produce beer - coming into the U.K. from the U.S., down to zero. But the general U.S. tariff on most other U.K. exports will remain. The deal includes plans for the U.K. to be part of an "economic security alignment with the United States".

The removal of the U.K. steel tariff is a joke as their steel industry like the North Sea oil and gas has collapsed under net zero/carbon policies. The highest tax rate in the world (78%) for oil and gas is shuttering that industry and this year it was announced the last two blast furnaces for steel at Scunthorpe would be closed. U.K. will be the only G7 country that can't make it's own steel, but Scunthorpe was owned by Jingye, a Chinese company anyway. Will removing the tariffs reverse the closure decision?

Gold ETF Flows Go Higher, Driven by Asia

According to World Gold Council today, this is the strongest inflow since March 2022 and the continued gold price surge pushed global gold ETFs’ AUM to US$379bn, 10% higher in the month. North America decreased some from the pace in February and March, probably because of some selling to make margin calls early in the month.

Yesterday, the Fed announced what many of us know and that is they don't know what they are doing. “There’s just so much that we don’t know,” Powell conceded. “I think, and we’re in a good position to wait and see, is the thing. We don’t have to be in a hurry.” The problem is there is no good policy for stagflation because it is like a trap of weak growth and high inflation that basically ties the Fed's hands. It appears their plan is to try and buy time, or maybe waste it.

The market will end of dictating where things go and right now the signal that gold is giving, it won't be very nice.

Fitzroy put out a drill update today and the stock appears to be breaking out on the chart.

Fitzroy Minerals - - - TSXV:FTZ, OTC:FTZFF - - - Recent Price $0.36

Entry Price - $0.15 - - - - - - Opinion – buy this break out

We have over a double in the stock now, but since we first bought, the company has made a major discovery so higher prices are warranted.

At the Caballos Copper Project, a 2,700 m, Phase 2 drilling program is underway. Drilling will focus on depth and strike extensions to the discovery identified in CAB-DDH001 at the Chincolco anomaly.

200 m grading 0.46% Cu, 591 ppm Mo, 0.07 g/t Au, (0.83% CuEq ).

At the Buen Retiro Copper Project, a two-rig 8,000 m drilling program is progressing, with six holes already completed and core samples submitted for assay. Drilling is principally focused on stepping-out from known copper oxide mineralization in the top 150 m from surface.

At the Polimet Au-Cu-Ag Project, 12 Phase 1 drill holes comprising 2,486 m, have been completed and core samples submitted for assay. Initial assay results from the Buen Retiro and Polimet projects are expected shortly.

There is a lot of drill news coming:

• A 2,800 m Phase 2 drilling program underway at the Caballos Copper Project.

• A 8,500 m drilling program underway at the Buen Retiro Copper Project; six drill holes completed and assays from initial holes are imminent.

• A 2,500 m Phase 1 drilling program at the Polimet Au-Cu-Ag Project is complete and assays are imminent.

This graphic of their new discovery at Callabos shows the two anomalies and the 10 kilometre potential in between. First will be step out drilling in the Chicolco anomaly from the discovery hole.

Unless the stock retreats by end of day, it looks like we will have a higher close and break out.

Unfortunately, the drill news of the discovery hole came out just ahead of the big market sell off in early April. This next drill news will be out in a better market and with good drill numbers, we could easily see a run to $0.50 or so.

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