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Kootenay Gold Awaits Results on a New Treasure of the Sierra Madre at Promontorio, Sonora
By Christina de Wit
October 15, 2007
There are three things the Sonoran Desert demands from those who seek to make their living from it: resilience, resourcefulness, and a long time horizon. These qualities are embodied by one of the Sonora’s most famous denizens– the agave, or century plant. After years of marshalling its energy reserves in its sharp leaves, the agave drives up a long spike and flowers spectacularly.
It’s an apt scenario for Kootenay Gold’s (TSX.V:KTN) management and shareholders, as they await Phase I drilling results on the company’s Promontorio Silver Project in Sonora State, Mexico. The company has focused the bulk of its resources toward work on its claims in the Sierra Madre Occidental volcanic province – a system considered highly prospective for gold, silver, and copper deposits. Promontorio is 75 km northeast of Ciudad Obregón, the second largest city in Sonora State, and about 500 km south of Tucson, AZ. The area is easily accessible, with an international airport at Obregón and dry-season road access to the property.
The project consists of four contiguous claims totalling nearly 37,000 hectares. The company has staked an additional 400,000 hectares in the area – making Kootenay one of the largest landholders in the Sierra Madre Gold and Silver Belt. The claims are 100%-owned by Kootenay (save for a small NSR to the original landowners).
The rapid development of the Sierra Madre Occidental Belt can be compared to that of Nevada’s Carlin Trend – the Western Hemisphere’s richest gold area. Six years ago, there were no producers in the Sierra Madre Belt. Today, there are five profitable mines producing 1,000,000+ oz Au in the area, with two more mines coming on stream over the next 18 months.
Operators include Pan American, GoldCorp, Agnico-Eagle, Piedras Verdes and Alamos. Jim McDonald, Kootenay’s CEO, was one of the founders of National Gold, which subsequently merged with Alamos. In the early 1980s, the Carlin Trend experienced a similar major takeoff with the upsurge in the price of gold.
Promontorio has seen sporadic production over the past 100 years, with limited open-pit production during the 1960s and 1980s. Artisanal mining and previous small-scale production are usually precursors for big deposits. Old workings on the property include three shafts (the deepest one reaches an inclined depth of 158.5 meters), as well as an open cut 85 meters long ranging from 7 to 25 meters wide and 20 meters deep. Historic (non-43-101) calculations from a 1973 feasibility report outline an ore reserve estimated at 384,000 metric tons grading 0.12% Cu, 2.80% Pb, 1.74% Zn, 367 g/t Ag and 1.5 g/t Au, to a depth of 100 m. As reported in the company’s July 17th press release, recent chip sampling from Promontorio in the Pit Breccia has returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199 ppm lead and 17,284 ppm zinc over an estimated true width of 19 meters. The 1990s saw the closure of the mine as a consequence of high interest rates and low metal prices. Kootenay acquired the ground at the early stages of the current bull market – making it the first company to apply the latest modern exploration methods to the property.
According to the company’s website, Promontorio “is highly prospective for large shallow level, intermediate-sulphidation epithermal system that may have developed close to a shallow level porphyry system and concentrated at the intersection of the regional WNW to NW fault zones.” The property’s Main Zone has a documented silver dominant polymetallic (Zn/Pb/Cu/Ag/Au) deposit, which has been the focus of the past 11 months’ work. The broad extent of alteration and mineralization found at surface is strongly suggestive of an underlying deposit. Only drilling will confirm this model, which with successful results could prove be the next discovery in the Sonoran Desert.
So far, the company has been diligent in doing its homework. Detailed mapping, geochemical sampling, and geophysical surveys have been completed along with Phase I of the drill program to confirm historic mineralization.Assay results are anticipated over the next 3 to 6 weeks.
Kootenay’s management is confident that its focused, methodical approach to fieldwork, financing, and risk management will pay off for the company’s investors. “Promontorio’s one that could be a real company maker,” said Ken Berry, Kootenay’s president. Management has laid a solid foundation for making a new discovery through years of dedicated effort. By building close relationships with key officials early on, the company was able to amass a comprehensive land package around Promontorio. Expert technical direction and careful financial management has enabled the project to advance to Phase II of the drilling stage, in which new prospects associated with the known mineralization will be delineated.
Given this stage of the market, it is rare to find a junior that has managed to stay in the game for six years, while maintaining a relatively tight share structure (23.7 million, fully diluted). This is due in part to the company’s having been privately financed for four years by Mr. McDonald.
Kootenay is also engaged in an ongoing, advanced drilling program with joint-venture partners at its Jumping Josephine Project near Castlegar, British Columbia.
“We’re making sure we’ve got lots of opportunities for success and at the same time, we want to spend our money in the ground, while minimizing dilution to the shareholders.” said Mr. Berry.
There’s a Mexican folk saying, ‘Acocote nuevo, tlachiquero viejo.’ that describes the process of extracting agua miel, (honey water) from the agave to make pulque, Mexico’s national drink. It translates roughly as “A difficult task must be done by someone who has the skills or experience to do it.” The market perception is that management is certainly up to the task at Promontorio – as per its Oct. 5th press release, the company raised $1.5 million in a non flow-through, non-brokered (and oversubscribed) private placement of 1.7million units @ $0.90/unit.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Tribune Uranium Seeking Value in Spin Offs, New Properties
By Anne Fletcher
October 15, 2007
As signs of a split corporate personality start to appear, Tribune Uranium Corp. (TSX.V: TCB) is looking to cure the condition by spinning off its non-core assets, including giving shareholders an unanticipated dividend.
The Vancouver-based exploration company announced October 9 it has two letters of intent (LOI) in hand for gold and copper-zinc properties in Manitoba’s Reed Lake mining district, near the recent VMS Ventures Inc. (TSX.V: VMS) copper discovery.
But Tribune was set up as a uranium company and plans to stay that way, says chief executive Graham Harris.
“We just happened to have a couple of opportunities,” Harris said in an interview. “They came at a good price and they are drill-ready.”
So the Manitoba properties will join Tribune’s Potonico gold property in El Salvador - brought on board initially because vice-president, exploration, Marco Montecinos, knows the region - in a new stand-alone company.
The legal work to create that company may take up to six months, Harris said, and, by that time, as Tribune continues its active search for drill ready properties, he expects to have another non-uranium acquisition to bolster value.
Tribune will have no stake in the new corporation, which will have completely separate management, Harris said. Tribune shareholders can expect shares in the new company in some ratio to their current holdings, for example 1:5, he said.
With plans for a first-quarter 2008 drill program in place once the 90-day period for due diligence is up, work on the newly-acquired Manitoba properties may be well underway before shareholders get a look at that company.
Under the LOIs with W.S. Ferreira Ltd., Tribune can earn a 100% interest in the Quartz Claims, northeast of Snow Lake, Man. and the Green Claims, south of Snow Lake, for $170,000 cash and an aggregate of 500,000 common shares over five years, for each property. The company will also pay a finder’s fee of $50,000 for each property to an arm’s length party, for a total of $100,000, subject to final TSX approval.
Assay results released by VMS Ventures of North Vancouver on Oct. 4 include 10.5 metres of 11.19% copper and 2.50 metres of 15.30% copper from drill hole RD 07-02 on its new Reed Lake project, near Snow Lake.
That project, as well as Tribune’s new properties, lie within the Flin Flon-Snow Lake Volcanogenic Massive Sulphide (VMS) belt that to date has yielded more than 20 VMS deposits of copper-zinc along with gold and silver, producing ore worth more than $29 million.
The belt’s average 5 million tonne VMS deposit has a gross metal value of more than $1.5 billion.
The Quartz Claims was last drilled in the 1980s by Hudbay Minerals Inc., but Harris said those old results look more interesting today as discoveries over the ensuing years have helped in understanding the geology of the area.
The Quartz Claims cover a 4,800-foot-long electromagnetic conductor, interpreted as lying in a fold axis. The old drill results turned up significant gold mineralization, along with the alternation mineralization commonly associated with VMS. Results from the eastern end include 0.64 oz/t (18.14 g/t) Au over 4.2 feet and 0.43 oz/t (12.19 g/t) Au over 4.5 feet.
The untouched western end of the conductor, with two EM conductor bodies, will be the site of the 2008 drill program.
Old drill results from the Green Claims to the south, straddling the east shoreline of Blue Lake, turned up copper and zinc, including 0.75% Cu over 46.9 feet and sulphide exhalite grading 3.12% Cu and 2.25% Zn over 1.3 feet.
For both properties, “we’ve got some pretty good drill targets based on past exploration,” Harris said.
Work on the 149.5-square-kilometre Potonico property in El Salvador rests in limbo right now as local opposition to mining makes even the first step tricky. “We’re negotiating with the local bishop to gain access to the property,” Harris said. “I think we can come to an agreement with him.”
But drilling programs are underway on Tribune’s joint venture properties in northern Saskatchewan’s uranium-rich Athabasca region, currently home to the world’s largest uranium mine, owned by Cameco Corporation (NYSE:CCJ, TSX:CCO) and minority partner Areva Resources Canada Inc. That mine is producing 18.7 million tonnes per year of 20.5% uranium, the highest grade in the world.
Tribune is currently working on its 60%-owned, 100,000-hectare North Shore Property, just north of Lake Athabasca and 10 km west of Cameco’s Maurice Bay uranium deposit, discovered in 1977 and containing an estimated 1.3 million pounds of uranium.
The company also recently announced winter drilling programs for its joint venture properties of Dufferin Lake-East, on the southern edge of the Athabasca Basin and adjacent to Cameco’s Virgin River uranium project with its recent Centennial zone discovery, and for its near-by Botham Lake property.
As well, the shopping spree continues, with Tribune close to making a “significant” uranium acquisition, Harris said.
But a $3.4 million private placement in May, 2007 is enough to keep Tribune going. “We’re fully funded right now,” he said. “I don’t anticipate raising any capital.”
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Teryl Resources Creates a Buzz Near Bisbee’s Copper Queen
By Christina de Wit
October 12, 2007
Teryl Resources (TSX.V:TRC) is set to take flight as it moves into the next stage of an ambitious drilling program on its Gold Hill property near Bisbee, Arizona. The company has just signed a drilling contract for the project, with work to commence as soon as a drill becomes available. The program will target several copper showings on the property. The Gold Hill Mine property comprises 14 patented mining claims that include the Old Gold Hill, Superior, and Baston mines. Old shallow placer diggings are found throughout the property as well as small shafts, pits and cuts. Gold Hill is located less than four miles west of Phelps Dodge’s (since bought out by Freeport McMoRan for $26 billion) Copper Queen/Lavender Pit, which was one of the world’s biggest and richest mines during its heyday from 1954-1970. This open-pit operation yielded 75 million tons of gold, silver and copper ore for Phelps Dodge. The company has expanded its holdings in the area by staking another dozen patented claims near Copper Queen. Teryl has a chance to earn a 100% interest in the property, with a small royalty payable to the original owners.
Teryl’s other major project consists of four strategically-located claim blocks (the Gil Project, the Fish Creek claims, the Stepovich claims, and the West Ridge property) in the Fairbanks Mining District of Alaska– where it is one of the main landowners- with holdings contiguous to Kinross’ (TSX: K; NYSE: KGC) Fort Knox Project. Fort Knox is the largest producing gold mine in Alaska, with a 4,000,000 oz. Au ore deposit.
Other properties in the company’s portfolio include a joint venture silver prospect located in northern British Columbia, as well as revenue-producing oil and gas projects in Texas and Kentucky.
Production in the Bisbee Mining District dates back to 1880 with the discovery of the copper carbonate deposit at the Copper Queen. New reserves are still being found, and as of 2006, there were 11 producing copper mines in Arizona. According to a monograph by Spencer Titley and Lukas Zurcher of the University of Arizona, the geology of the area is recognized as “Nevadan-aged plate convergence [which] was attended by formation of rhyolite calderas in a WNW-trending belt that overlaps the international border and, of which, Bisbee, Arizona (ca. 200Ma) may be a product. Extension of the Chihuahua terrane into southern Arizona reveals a distinctive crustal block characterized by Laramide igneous activity and Cu-related intrusion centered ore systems in a metal province than transgresses the border.” Results on the property so far support such a hypothesis– with 3% Cu in surface sampling, with gold values as well. Recent very deep penetrating geophysics in Arizona has revealed new deep-seated copper resources previously unknown by past operators. The company’s analysis of its geophysical info has defined 3-4 highly anomalous drill targets.
Teryl’s strategy is simple in that it looks for deposits near major existing or former producers. This approach allows the company to maximize reward potential while mitigating risk for investors. The company is also applying this philosophy to its program in Alaska. Teryl has entered into a joint venture agreement with Kinross, with 80% Kinross/20% Teryl, on the Gil Project. The main Gil Zone consists of a 3000 ft. strike length. According to Teryl’s website, the company has spent $1.6 million on exploration that has defined a resource of 400,000 ounces of gold (10 million tons grading 0.04 ounces per ton gold).
The company’s management isn’t afraid to think big. “All we need to do is find another Fort Knox,” says John Robertson, Teryl’s president. The company also has a 50-50 joint venture agreement with Linux Gold (of which Mr. Robertson is also president), on the Fish Creek claims. The company has recently completed a $400,000 private placement– with $150,000 earmarked for drilling targeted zones on the Fish Creek property that were identified as geophysical anomalies.
Alaska is usually regarded as an expensive place to work; however, Teryl is particularly well situated to run a low-cost operation. The property is only 22 miles north of Fairbanks– hence workers can stay in town- thus eliminating the need for company-constructed housing. The area’s infrastructure is excellent, given the property’s close proximity to the Fort Knox mill and to a major highway.
Several key factors allow the company to offer its investors an attractive risk-reward ratio: the ability to defray its overhead costs; two work programs entering the drilling stage; properties in the backyards of major producers in historically rich (and politically stable) areas, and high metals prices.
Any exploration success at Bisbee will undoubtedly garner interest from the majors like Rio Tinto (owners of Bear Creek), Freeport McMoRan, and Newmont. Mr. Robertson is optimistic regarding the company’s direction, as “the price of gold is moving to new highs, and Teryl is very well-positioned”.
Teryl offers unparalleled value at its current price range- with the downside risk being minimal– while the ongoing program at Gold Hill shows very high upside potential. Few companies at this price range have this much potential. This could well be a play that floats like a butterfly– and stings like a bee.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Grenville Gold Digs into its Geological Cake at Silveria
By Christina de Wit
October 11, 2007
It looks as if Grenville Gold (TSX.V:GVG) has all the ingredients needed for success at its Silveria project in Peru. The company recently released a 43-101 report on Silveria which outlines its exploration and development plan for a potential silver-zinc-lead-copper resource. In addition to its three Peruvian properties, the company has a property in Ecuador which has a history of artisanal gold mining.
Silveria is located in Huarochiri Province, 80 km WNW of Lima. The property consists of 2,797.16 hectares in 224 concessions that cover four historical mining areas (Germania, Millotingo, Pacococha and Silveria). The area is well-serviced and there are several mills in the area, including an operable, 350 tonnes per day mill with related buildings at Millotingo. The Pacococha Mine (which eventually absorbed the Germania and Silveria operations), saw 30 years of production from high-grade mineralization. The Millotingo and Pacococha mines closed in 1992, due to weak metal prices and political turmoil.
The project is in the early phase of development, and Grenville has so far focused on consolidating the available database of historical Pacococha mine records, plans and sections into digital, 3-D format. This information will be superimposed on topographic maps to create a 3-D model that will provide a solid blueprint for underground channel sampling programs, drilling programs and a scoping study.
According to the company’s NI 43-101 report, the structural picture at Silveria suggests that the general area was subjected to severe tectonic compression that produced strong fracture patterns, on a regional scale, that in part allowed for the intrusion of polymetallic mineralization within quartz sulfide veins that filled open fractures. There are approximately 33 mineralized veins in the Pacococha mining area– seven mineralized veins at Germania-Silveria and two mineralized veins at Millotingo. It is suggested that this mineralogical environment is analogous to the one found at the neighboring Coricancha mine– recently reopened by Gold Hawk Resources, which will soon reach 600 tpd production.
The property is dotted with adits left by past producers. 86,000 tonnes of mineralized rock have been identified as being accessible in the short-term. Grenville’s long-term objective is to identify potential resources in the existing underground workings and then explore below this level for disseminated deposits
Of particular interest are the tailings dams adjacent to the Millotingo mill. The company plans to sample these tailings to assess the viability of heap leaching to recover the contained silver and gold. Other potential mineral resources that have been identified are numerous small- to medium-sized mineralized surface rock dumps (not including dumps left by artisan miners for collection and sale); unmined veins in the underground mine workings, on existing production levels, and in newly developed areas both beyond and beneath the developed limits of the existing production levels; and various surface exploration targets.
34 grab samples from the rock dumps returned assay results showing anomalous to low-grade gold values in all the Pacococha and Germania mine samples, but ore-grade gold values from Millotingo mine. Silver grades are consistently high in all the dump samples, with assays ranging from 3.50 g/t to 2,220 g/t Ag. Base metal values vary between 0.007% and 3.90% Cu, 0.01% and 7.15% Pb and 0.07% to 19.70% Zn, thus pointing to a high-grade polymetallic nature of the veins from all the districts.
The company has a particularly innovative strategy to leverage its short-term costs and generate significant cash flow. In order to safely explore the old workings, workers clean out the loose, high-grade rock that was stockpiled in the stopes by previous operators. That ore is then marketed to nearby mills that are working below capacity. It costs between $17-$18/t to get the rock to the mill, where it sells for between $100-120/t. According to the company’s president, A. Paul Gill, “[the process is] producing 500-600 tons a week”. The 43-101’s provisional and preliminary long-term scenario estimate of an average on-site operating cost is US$45 per tonne milled.
The old chestnut that states that “the best place to find a new mine is near an old one”, certainly applies in this situation. Soaring copper prices make formerly producing mines (especially in Peru) worth reexamining. Management has capitalized on market interest by recently launching a far-reaching market awareness campaign, with conference appearances in Calgary, Frankfurt, Munich, Zurich, Geneva, and London.
Grenville is led by individuals with many years of successful exploration experience in key development roles on major projects. The company’s chairman, Mr. Len de Melt, is a graduate of the renowned Haileybury School of Mines and was instrumental in starting and building six mines, including Gulf Oil's Rabbit Lake mine (uranium), Syncrude mine (oilsands), Denison Mines' Quintette (coal), Homestake's Golden Bear mine (gold), BHP's Ekati mine (diamonds) and Goldust's Croiner mine (gold). Mr. A. Paul Gill, the company’s president, held senior positions with Norsemont Mining Inc. and is a Director of Lomiko Resources.
Grenville provides investors the opportunity to have their cake and eat it too: with properties that have a proven history and merit further exploration, a pragmatic, structured approach that lends itself to both short and long-term valuation possibilities, a current revenue stream, a comparatively tight share structure given today’s market (32,694,200 fully diluted), an international promotional effort in full swing, a mining-friendly climate in Peru, and record metals prices.
If the proof is in the eating, the market is showing a healthy appetite– GVG closed at $0.55, up $0.05 on Wednesday.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
ValGold’s Mochila Mojo
By Christina de Wit
There’s an old Venezuelan proverb that says “Join with good men and you will be one of them.” ValGold Resources’ (TSX.V:VAL) management team appears to have taken this piece of wisdom to heart as the company embarks on an ambitious drill program at the Chicanan West Complex located approximately 50km northwest of the Kilometre 88 gold camp in Bolivar State, Venezuela.
This latest phase of development represents an expansion of the company’s presence in Venezuela. ValGold has completed the first stage of drilling of its program at the Los Patos gold occurrence within the Lo Increible 3 Concession, also located in Bolivar State, Venezuela. Lo Increible 3 is 20km northeast of the town of El Callao and 4.5km northeast of Crystallex’s La Tomi gold mine. ValGold’s other projects include properties in Guyana and northwestern Ontario.
The Chicanan West Complex consists of 11 mining concessions comprising a sizeable land holding of 522 km2. This area is located within the Guiana Shield, which hosts a greenstone belt that is known to be highly prospective for gold. The Complex is characterized by an island-arc sequence with intermittent periods of volcanism and sedimentation with ancillary quartz-porphyry dikes – an environment considered by many geoscientists to be favorable for mineral discoveries.
The program’s primary target is the Mochila (Spanish for ‘knapsack’) gold occurrence, represented by Proterozoic-age mafic to intermediate intrusive to metavolcanic rocks in an area covering about 10km2. Gold occurs as enrichments along the contacts of specific layers or units with the Mochila Layered Complex and along a north-trending lineament. Proterozoic-age rocks are the major source of mineralization in the world. Well-known examples of major, defined deposits with very similar geology in the area include Crystallex’s Las Cristinas and Gold Reserve’s Brisas discoveries.
Several gold occurrences (as well as base and precious metal occurrences), have been identified on the property, with two types of gold mineralization. The first, hosted by the Mochila Layered Complex, is found along a regional fault. This is an example of axial plane foliation, in which hot waters carrying metal ions are forced into cracks created by folding and faulting. The second type of gold mineralization is found within the sericitized Chicanan Shear Zone.
The major area of interest is the upper contact of the middle gabbro unit of the layered complex. According to the company’s 43-101 report (p.60), the “Mochila Lineament contains numerous artisanal workings covering a surface area of more than 14km by 3km. Within this area, several world-class deposits could be developed. Three target areas have been identified in a selected area of the lineament and are ready for drill testing.” A minimum of 5000m of coring in 15-20 holes is planned at this stage.
Venezuela has had a long history of successful gold exploration. Presently, several companies have operating mines in the Venezuela’s Guiana shield: Crystallex, Hecla, Gold Fields (JSE:GFI), Gold Reserve (GRZ), and Rusoro (RML). Chicanan West is located in the same belt as two major deposits: Las Cristinas (Crystallex), and the Brisas (Gold Reserve), which reportedly host a combined estimated gold resource of 31 million ounces. These success stories plus the current run on gold underscore the potential for well-placed junior explorers to achieve a comparable level of growth.
There are several advantages to investing in Venezuela. It should be emphasized that there has never been an expropriation in the country’s history. Labour costs are low, and diesel is only 15¢ a litre. The government also does not demand a royalty on production, instead preferring a streamlined corporate taxation structure.
Despite negative American press coverage of Hugo Chavez’s governance, explorers and operators in Venezuela have largely enjoyed a progressive work environment. The Chavez administration has not deterred serious investors and players from working and profiting in Venezuela. According to Jeff Stuart, ValGold’s head of Investor Relations, the current government has made considerable efforts to create a hospitable mining investment climate. “The government [has] actually been really, really good to us,” he said. Bureaucratic red tape is not an issue, as “we got permits in six days”. They have provided the company with government assistance and who have facilitated its work program, and have helped ValGold to avoid conflicts with artisanal Brazilian miners working in the area.
The company’s management has a lifetime history of dealing with properties of merit. Its chairman, Andrew Milligan, is a former president of Glamis Gold Ltd., Tom Pollock, the company’s vice president of exploration, was the China Country Manager for BHP during his 20-year career with them, and ValGold’s president, Stephen Wilkinson, is past president of Northern Orion (currently trading around $6.50 per share). Pedro “Peter” Tinoco, one of the company’s directors, was the president of the Venezuelan Chamber of Mines for two consecutive terms, as well as the president of the Latin American Mining Organization from 1996-2006. Since 1989, he has been the vice president of the mining division of the Venezuela-based Cisneros Group of Companies, one of the largest privately held media, entertainment, telecommunications and consumer products conglomerates in the world. Through Mr. Tinoco, ValGold has strong ties to some of the most influential people in South American mining – a few good men and women indeed.
ValGold is uniquely well-placed for success in Venezuela, as several key factors make it a wise buy-and-hold investment in this rising gold market: Seasoned management with a stellar Latin American track record, projects at drilling stage, large holdings close to major producers in a still-underexplored region, a solid relationship with a mining-friendly government, and a roaring gold market. This is particularly auspicious timing for investors, as drill results from La Mochila are expected to roll in over the next 8 to 10 weeks.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Relative to other metals, silver has yet to really break out. It ran up in August/September with the other metals, but it's just approaching their 2007 highs (while others are making new highs every day). I think we have some room to run yet, and opening new silver mines is going to be a great thing going forward
http://www.profitquotes.com/commodities-quotes.mpl?c=SI&s=7Z
Two New Properties in Premier Russian Gold Region Make Golden Reign a Great Deal
Doug Hadfield
To look at Golden Reign’s (TSXV: GRR) stock chart, the company looks like either a bargain or a wash out: It was trading at $0.40 at the end of 2006. Since that time, shares in GRR have taken a hammering down to $0.15 per share. To me, this usually indicates a company mismanaged, but occasionally it indicates something much juicier – an overlooked, value-priced junior. After some thorough due diligence, including speaking to the company officers and reading two NI43-101 reports on the company’s two 50% JV deals, I bought in on a respectable position.
Why? It’s a bit of a no brainer, to me. The company is trading at $0.15 with two properties, both of which have proven widely disseminated gold mineralization in an area with resources of over 120 million ounces gold, nearby infrastructure, with excellent roads and transportation and the protection of an operator on the project that is a prominent Russian bank – Status LLC. What else do you want from a value-priced junior? It’s going no place but up.
Let’s go over the details. First, why has the company been sinking on the TSX Venture? Simply put, they were shafted by local politics. After pouring $300,000 into exploration last year, the government sniffed gold on the property and handed it to a local company in the next land auction.
The temporal aspect of the land auction process in Russia ensures mineral properties are actually explored, which is a good thing. There are two types of permit available at auction: A 5-year exploration license and a comprehensive 20-year mining license. Golden Reign had the former, which left it vulnerable because, when it came time to auction off the 20-year mining permit for the property, Golden Reign’s application to take part was rejected.
This time around, they have a solid high-level partner and a 20-year mining permit already in place.
I spoke with both CFO Kim Evans and Larry Myles, who runs the corporate communications department for Golden Reign. They were exuberant that the company’s slide down the TSX charts now poses a value opportunity for investors – I obviously agree.
“It’s entirely different this time,” Myles told me. “When we started in Russia, we were going from the ground up. In Russia, if you’re working with a bank or a governmental agency, you’re working from the roof down. You’re protected.”
Golden Reign’s partner, Status LLC, is the mining division of CentroCredit Joint Stock Commercial Bank, which is headquartered in Moscow, with another branch office in London. CentroCredit is a member of the Association of Russian Banks, the Moscow Banking Union and National Stock Association participating in the Russian Trading System (RTS), the Moscow Stock Exchange (MSE) and the Saint-Petersburg Stock Exchange. As of January, 2006, it was ranked the 38th largest in equity capital amongst the top Russian banks. In other words, it is the real deal.
The rest of the piece is here: http://www.resourcexinvestor.com/news.php?id=2342
Kootenay Gold (TSXV: KTN) Keeps the Drills (and Heads) Turning
By Doug Hadfield
This year, the summer doldrums in the resource sector were anything but dull for the boys at Kootenay Gold (TSXV: KTN). With drills turning at Jumping Josephine (BC), Promontorio (Mexico) and Connor Creek (BC), autumn is proving to be a harvest season of results and new announcements by the company and its various JV partners.
Most notable was the announcement regarding Jumping Josephine (JJ), a joint venture effort with Astral Mining (TSXV: AST). With most Phase I drill results already in from JJ, the central question on most investors’ minds was: Would the work completed to date warrant a Phase II drill program?
Jumping Josephine is an 11,665 hectare gold property in southern British Columbia. The property hosts the historic Granville Mountain mining camp and several newly discovered vein-hosted gold showings, including JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass. Previous work on the property by a number of other exploration companies turned up assays of interest, but it was not until Kootenay’s early exploration work uncovered the JJ Main and West, Albion-Dubrovnik and Bonanza Pass targets that serious exploration work took place.
The Phase I drill program comprised 2000 meters on three targets: twenty holes at the JJ Main Zone, 400 meters in five holes on the Albion and Dubrovnik targets and a further 500 meters in two holes at the Bonanza Pass. Final results were reported on September 11, along with the exciting news that exploration would indeed continue at JJ in a minimum 3500 meter (approximately 12,000 ft) Phase II drill program.
Phase I work on the JJ Main showing during 2006 revealed a gold bearing stockwork zone up to 10m in width and 240m long. This area yielded assays up to 133.91 g/t gold from one-meter channel samples. Notably, there was a consistent return of high-grade intervals, too, including 5m grading 19.2 g/t Au, 7m grading 31.19 g/t Au, 4m grading 25.24 g/t Au and 10m grading 5.0 g/t Au, and so on. The JJ Main zone is characterized by silicified and sericitized quartz monzonite hosting a distinct zone of multiphase stockwork veining and breccia zones. Mapping and geochemistry completed to date suggest that this structure may extend for over three kilometers.
The most recent results returned from JJ Main were variable. Hole 07JD016 included 10 meters (32.8 ft) averaging 1.17 grams per tonne gold from hole 07JD016, with one meter at 4.14 grams per tonne gold. Although all holes were mineralized, some drill cores were sent to another independent laboratory for a second opinion. Nevertheless, the results at Jumping Josephine did warrant a Phase II program, to begin this fall, which will target what Kootenay and Astral believe is a strong south-plunging mineralized shoot within the JJ Main gold zone.
According to a recent news brief, “The shoot has been intersected to date by holes drilled on the southernmost two sections, spaced 60 meters apart, and so far it appears to be increasing in width to the south. The drill is currently completing a fence of holes along a section 30 meters further to the south. Astral has only just begun to test the potential of JJ Main structure which, based on mapping, geophysics and surface geochemistry, may extend for over three kilometers.”
Kootenay appears to be proving its acumen for choosing properties with potential for early stage discoveries that increase shareholder value. The JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass targets at Jumping Josephine were all discovered by Kootenay after the company purchased the property. Between September and December 2006, Kootenay four times reported notable sampling and trenching results at JJ, including 21.43 g/t Au over five meters. Consequently, the company’s stock steadily increased from about $0.56 to $0.66. Finally, on the news of 7.0 m of 31.19 g/t Au, the stock jumped to over $1.
The case at Kootenay’s Promontorio Silver Project, which consists of four contiguous claims covering 37,000 hectares in northwestern Mexico, may prove to be even more providential. Chip sampling in the Pit Breccia returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199-ppm lead and 17,284-ppm zinc over a true width of 19 meters. These findings lead to the presently ongoing 3000-meter drill program, of which 13 holes are complete and have been sent for laboratory testing. Results are imminent, but what can we expect from this previously producing mine camp?
The only feasibility study completed for Promontorio was prepared in 1973, prior to Canadian Securities Commission’s NI-43-101, which regulates disclosure by Canadian exploration companies listed on the TSX Venture – in other words, it doesn’t necessarily stand up to post-Bre-X standards. That said, no one is claiming Promontorio to be the next world-class polymetallic mine. The original ore reserve estimate was fairly modest: 384,000 metric tons grading 0.12% Cu, 2.80% Pb, 1.74%, Zn, 367 g/t Ag and 1.5 g/t Au, to a depth of 100 m below the floor of the open cut. Certainly with those grades at such a shallow depth, such a reserve estimate would indicate an economically viable mine. Yet the shallow, open-at-depth nature of this potential ore deposit argues for a substantial exploration program to both confirm and expand up the historical work. As such, the present 3000-meter drill program could make (or break) Promontorio as a major participant in the Mexican resource sector.
Maybe it’s the clairvoyant vision of director Richard Hughes (widely seen as the Canadian mining icon partly responsible for bringing Hemlo to production) or the mine-finding prowess of CEO James McDonald who co-founded multiple successful mining companies, but each of the stories behind this growing company (19 million shares outstanding) is beginning to take form. Keep a close eye out for more results this fall.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Teryl Resources Working With Closeology and Superlatives
By Doug Hadfield
Teryl Resources Corp. (TSXV: TRC) operates within the intelligent realm of closeology and superlatives in Alaska and Arizona. By closeology I mean, of course, that the company is exploring for gold and copper very close to existing or previously producing mines. By “superlative” I mean that these mines are exceptionally large and profitable.
At Gold Hill, for example, Teryl is drilling three targets just three miles away from Phelps Dodge Corp.’s Lavender Pit. If you know mining or tourism, then you know that Lavender Pit was one of the biggest mines in the world. Between 1954 and 1970, Phelps Dodge extracted 75 million tons of gold, copper and silver ore from this open pit mine of giant proportions. Check out the satellite photographs on Google – it’s a sight to behold.
At Lavender Pit, mineralization was low-grade disseminated chalcocite with local spots of other copper and zinc sulfides.The deposit evenly blanketed the area in a brecciated intrusive porphyry plug adjoining altered Paleozoic limestones along the Dividend fault. Freeport-McMoRan Copper & Gold Inc. has fired up the drills at Lavender Pit again due to the historically high copper prices caused by the present superbull in mineral commodities. Freeport-McMoRan paid $26 Billion for Philips Dodge in March this year.
At this stage, it may be difficult to say that the mineralization at Gold Hill is the same or similar geological structure to Lavender Pit or the large low-grade Cochise Project area – hence the current drill program. As well, Teryl announced in April that it had purchased aeromagnetic data for the project area, and that the information from that lead to a recommendation of an induced polarization survey, to test for the presence of disseminated sulphides at depth.
Read the rest here: http://www.resourcexinvestor.com/news.php?id=2296
SVMFF - Starting DD on this one. Anyone who wants to help me DD it, add comments or suggestions please do.
http://investorshub.advfn.com/boards/board.asp?board_id=10631
Kootenay Gold Employs Sound Strategy
Kootenay Gold Employs Sound Strategy to Maximize Mineral, Minimize Dirt
By Katherine Young
My thirteen year-old daughter is studying mining in her grade eight social studies class. She tells me that when asked for the first three things they thought of about mining, the students in her class named: dirt, explosives and gold. My daughter then informed me that following their logic, a good mining company basically has less dirt and more gold. There was something elegant and simple to her conclusion, I thought. All these exploration companies with different strategies, different exploration and management styles, all essentially attempting to maximize gold, or silver as the case may be, and minimize dirt.
Kootenay Gold (TSX.V:KTN) is a company with a sound strategy for dirt, explosives and gold. Notice how the company describes its approach: To create generative exploration discoveries, establish junior venture partnerships and acquire advanced stage projects.
Clearly, Kootenay is strategic in its effort to find minerals and see projects grow and flourish. Kootenay’s teams are actively exploring in BC and Mexico to find resources that could become a real resource and mine. Their strategy of creating joint venture agreements with other companies allows them to increase their chances of finding something by casting their net wide, while simultaneously decreasing risk.
In the company’s Management Discussion and Analysis dated June 30, 2007, Kootenay listed six separate generative exploration projects in Mexico and British Columbia. Relying on joint venture agreements with companies like Klondike Silver and Astral Mining reduces risk to Kootenay because it minimizes dilution to Kootenay stock. Instead of having to raise funds on the stock market, Kootenay creates revenue by, in effect, selling a percentage of the spoils of exploration. At the same time, Kootenay is able to leverage the success of the exploration they jointly undertake by holding stock in the partner company.
Read the rest of the piece here: http://www.resourcexinvestor.com/news.php?id=2336
Article on Golden Reign
Two New Properties in Premier Russian Gold Region Make Golden Reign a Great Deal
Doug Hadfield, ResourcexInvestor.com
Sept 28, 2007
To look at Golden Reign’s (TSXV: GRR) stock chart, the company looks like either a bargain or a wash out: It was trading at $0.40 at the end of 2006. Since that time, shares in GRR have taken a hammering down to $0.15 per share. To me, this usually indicates a company mismanaged, but occasionally it indicates something much juicier – an overlooked, value-priced junior. After some thorough due diligence, including speaking to the company officers and reading two NI43-101 reports on the company’s two 50% JV deals, I bought in on a respectable position.
Why? It’s a bit of a no brainer, to me. The company is trading at $0.15 with two properties, both of which have proven widely disseminated gold mineralization in an area with resources of over 120 million ounces gold, nearby infrastructure, with excellent roads and transportation and the protection of an operator on the project that is a prominent Russian bank – Status LLC. What else do you want from a value-priced junior? It’s going no place but up.
Let’s go over the details. First, why has the company been sinking on the TSX Venture? Simply put, they were shafted by local politics. After pouring $300,000 into exploration last year, the government sniffed gold on the property and handed it to a local company in the next land auction.
The temporal aspect of the land auction process in Russia ensures mineral properties are actually explored, which is a good thing. There are two types of permit available at auction: A 5-year exploration license and a comprehensive 20-year mining license. Golden Reign had the former, which left it vulnerable because, when it came time to auction off the 20-year mining permit for the property, Golden Reign’s application to take part was rejected.
This time around, they have a solid high-level partner and a 20-year mining permit already in place.
I spoke with both CFO Kim Evans and Larry Myles, who runs the corporate communications department for Golden Reign. They were exuberant that the company’s slide down the TSX charts now poses a value opportunity for investors – I obviously agree.
“It’s entirely different this time,” Myles told me. “When we started in Russia, we were going from the ground up. In Russia, if you’re working with a bank or a governmental agency, you’re working from the roof down. You’re protected.”
Golden Reign’s partner, Status LLC, is the mining division of CentroCredit Joint Stock Commercial Bank, which is headquartered in Moscow, with another branch office in London. CentroCredit is a member of the Association of Russian Banks, the Moscow Banking Union and National Stock Association participating in the Russian Trading System (RTS), the Moscow Stock Exchange (MSE) and the Saint-Petersburg Stock Exchange. As of January, 2006, it was ranked the 38th largest in equity capital amongst the top Russian banks. In other words, it is the real deal.
To earn its 50% of the new company, simply called Gold Mining Company LLC (GMC), Golden Reign must pay $6 million in expenditures over the next three years – the company raised $4 million last year in its IPO, so another small private placement (PP) or debt financing is in the offing.
Both of the two properties Gold Mining Company has in its portfolio have favourable NI43-101 reports; and both are posted on Golden Reign’s website: Goldenreignresources.com.
The Dorozhni property covers 8.8 square kilometers in the centre of Magadan Province. The property lies along an all-weather road approximately 17 kilometres west of the community of Susuman – the nearest service centre.
According to the 43-101 technical report, previous exploration work and mining of the Dorozhni gold deposit was focused on shallow dipping sub parallel gold-bearing quartz veins. The veins have been traced for lengths of 450 metres along strike and 380 metres down dip with veins ranging from 0.4 metres to 2.4 metres in width, occasionally expanding up to 17 metres (such as the Burovoya vein).
To date, gold mineralization has been reported in five separate quartz veins. Historical reports state that placer mines from Dorozhni Creek produced approximately 95,000 oz of gold.
The rest of the article is here: http://www.resourcexinvestor.com/news.php?id=2342
Intrepid and Aura to Commence Drilling at Taviche Project, Mexico
Monday October 1, 1:00 pm ET
http://biz.yahoo.com/ccn/071001/200710010416363001.html?.v=1
TORONTO, ONTARIO--(Marketwire - Oct. 1, 2007) - Intrepid Mines Limited (TSX:IAU - News; TSX:IXN - News; ASX:IAU - News) and Aura Silver Resources Inc. (TSX VENTURE:AUU - News) are in receipt of the environmental permit for a minimum eighteen hole (4,000 metre) drill program at the West Taviche joint venture project in Mexico. Rig mobilization from an adjacent property is anticipated mid-month.
The drill program will focus on target three areas: La Noria, San Martin and El Portillo and will consist of at least six holes in each targeting epithermal veins hosting significant gold and silver values.
The Taviche District is located in central Oaxaca, Mexico about 10 km south-southeast of the city of Ocotlan (Figure 1). The Intrepid/Aura holdings are contained in two blocks: the West Taviche Block (6,254 hectares) and the East Taviche Block (7,494 hectares). The location of these two blocks is shown in figure 2 relative to the central Taviche district.
The companies have contracted Construccion, Arrendamineto de Maquinaria y Mineria, S.A. de C.V. (CAMMSA) for the completion of a 4,000 metre core program to commence mid-October. CAMMSA is currently drilling the adjacent San Jose project for Fortuna Silver Mines, Inc. with three core rigs and has established logistics and developed considerable technical expertise in the Taviche district.
In preparation for the drill program, access and water usage agreements have been signed with all neighboring communities. Extensive consideration was given to these agreements to assure a long-term relationship based upon mutual trust and assuring environmental stewardship, community participation and sound corporate social responsibility practices.
About Intrepid Mines:
Intrepid Mines Limited is an international precious metals production, development and exploration company. The Company's producing property is the Paulsens Gold Mine, located in northwestern Australia. The Company's advanced development property is the Casposo Project located in San Juan Province, Argentina. The Company's exploration properties are located in Argentina, El Salvador, Mexico, Australia and Canada. The issued capital is 164,374,243 shares comprised of 146,487,090 ordinary shares of Intrepid Mines Limited on the TSX:IAU and ASX:IAU and 17,887,153 Exchangeable Shares of Intrepid NuStar Exchange Corporation quoted on the TSX:IXN.
About Aura Silver:
Aura Silver Resources Inc. is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in North America with a focus on silver. The Company has 34,470,967 common shares outstanding.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX & ASX has neither approved nor disapproved the information contained in this press release. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
Please note: Figures 1 and 2 are available on the Marketwire website at the following link - http://www.ccnmatthews.com/docs/iau1001.pdf.
Contact:
Ann Candelario
Intrepid Mines:
Intrepid Mines Limited
(416) 368-4525
Paul W. Pitman
Aura Silver:
Aura Silver Resources Inc.
(905) 456-5436
--------------------------------------------------------------------------------
Source: Intrepid Mines Limited, Aura Silver Resources Inc.
MiMiC,
Good question; I haven't seen him posting.
I was so busy with my gardens this summer that I lost track of a lot of people.
BUT I still find time to post to my Peak Oil site daily.
keep in touch,
sumisu
PMI Gold Adds Nearly 1M Oz to Portfolio
PMI Gold Adds Nearly 1 Million Ounces In Ground to Portfolio
By Doug Hadfield
Junior exploration company PMI Gold Corp. (TSXV: PMV) has added a fourth past producing mine to its portfolio in Ghana’s famous Ashanti Gold Belt. The new concession is located just twenty kilometers away from Anglogold Ashanti’s 55 million ounce Obuasi mine and is within southwest Ghana’s Golden Triangle, which has combined current reserves and historical gold production of over 170 million ounces.
Kubi has seen extensive work to date. Project exploration and development costs total more than US$20 million. In the 1920s, artisans completed numerous adits and provided a foundation for later work by BHP, which included a program of ground geophysics and drilling. BHP later optioned the property to NS Ghana, who completed extensive exploration throughout the 1990s.
The geological picture of mineralization at Kubi is described as a one to 15 metre thick blanket of gold mineralization over a span of 1,800 metres long by up to700 metres deep. The mineralized block is contained within a northeast trending shear zone straddling a major contact between the Birimian and Tarkwaiian. According to a report by The Resource Investor, more than 100 million ounces of gold have been identified within the Birimian Gold Belt. The presence of Tarkwaiian rocks is also closely linked to many large gold deposits found in Ghana.
According to a September 2007 NI43-101 technical report for the Kubi property, “The “Ashanti Trend” is a structural feature that hosts many of the gold deposits in the Obuasi area is interpreted to run through the western part of the Kubi property. Exploration in this area has not been exhaustive and additional potential for Ashanti style deposits is possible.”
Between 1996 and 2006, Ashanti mined 58,696 ounces of gold from two open pits on the property. The total ore milled was 500,230 tonnes grading 3.65 g/t. The recovered grade was 28 per cent higher than expected per Ashanti's mine modeling. Seven mineralized zones have been defined on the property, within three major generative corridors, with 85% of the reserve base currently within a zone known as the Main Garnet Zone.
Significantly, the technical report notes that a “Garnet Zone equivalent has been intersected with associated grade in boreholes drilled at (the nearby) Kubi South.” Any future drill program will make this mineralized zone a primary target. The Kubi Main Zone has been traced for two kilometers along a consistent strike and is open at a depth of 700 metres.
The details of the transaction stipulate that PMI will acquire all the shares of Nevsun Resources (Ghana) – a subsidiary of Nevsun Resources (TSX: NSU) – for nine-million shares in PMI, plus an additional $3-million in cash or stock payments. Nevsun’s holdings may not exceed 20% of the outstanding shares of PMI. Ghanaian tax and royalty considerations will be offset by project expenditures to date. At $0.28 per share of PMV.V, the total cost of the transaction to PMI is approximately US$5.5 million. Following the transaction, Nevsun will hold approximately 9% of PMI on a fully diluted basis.
Prior to announcing its acquisition of the Kubi concessions, PMI hired Golder Associates Africa to prepare a NI43-101 resource estimate on the property. Using data from NS Ghana’s work, which included 212 drill holes – and by subtracting the resource already mined by AngloGold Ashanti – Golder showed that the Kubi deposit has close to 920,000 ounces inferred and indicated.
PMI has noted that a portion of the Kubi mining lease is covered by a forest reserve. The company stated, “[We] will proceed with an underground operation “by shaft or decline from the non-forest reserve area and trucking the material off site for processing, and therefore will not be overly impacted by forest reserve issues.” The main Kubi mining lease covers 19.2 square kilometres and has a renewable 10-year term valid to April 29, 2009.
The qualified person on the project, David Farrow, stated that the Kubi Main trend “contains significant resources drilled to a depth of 700 meters vertical.”
The region in which Obuasi and the Kubi mines are located is rich in gold and historical gold mines. The Obuasi gold mine has been in continuous production for 110 years. Ghana is famous for its Ashanti Gold Belt, which is part of a volcano sedimentary belt and presently includes seven producing mines. In fact, Ghana is Africa’s second largest gold producer, mining about 80t of the yellow metal per year. Ghana is already producing over two million ounces of gold per annum This is an area of majors, too, with companies like Anglogold Ashanti, BHP, Newmont and others operating large both large scale exploration and mining activities in the region.
Over the past few years, PMI Gold has acquired three other former gold producing mines in Ghana: Nkran, Abore and Adubiaso. All were previously operated as the Obotan Gold Mine by Resolute Amansie Limited, a subsidiary of Resolute Mining of Australia.
According to PMI documents, between 1997 and 2002, “the Nkran pit at Obotan produced an average of 146,000 ounces of gold per year for a total of 590,000 ounces of gold at an average grade of 2.2 g/t. The Abore and Adubiaso pits located 12.5 km and 4.0 km northwest respectively of Nkran, together produced a further 140,000 ounces at similar grades.”
The mine was mothballed in 2002 after Resolute struggled for five consecutive years of low gold prices, averaging approximately US$300 per ounce. The price of gold on September 24th remained over $730 per ounce. Many gold bulls continue to argue that gold is undervalued and that demand for bullion (and therefore it’s price tag) will increase with the declining US dollar and diminishing production.
In 1997, a bankable feasibility study (BFS) reported 38 million tonnes grading 1.96 g/t for 2.823 million ounces at for the Obotan Gold Mine. In total, Resolute mined over 730,000 ounces of gold before closing the mine. PMI Gold believes there is an exploration target below the Nkran pit of one to two million ounces of gold grading from 3 to 6 g/t Au.
PMI Gold (TSXV: PMV) has 77 million shares outstanding including the 9 million for the Kubi acquisition (105 million fully diluted). Its 12-month high-low is $0.47 – $0.14. On September 24, 2007 the company opened at $0.27 per share.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Bayfield Ventures Upbeat on Rainy River Project
By Doug Hadfield
September 26, 2007
As I’ve noted for some time, you can tell a lot about Bayfield Ventures (TSXV: BYV) by having a look at Rainy River Resources’ work next door. Bayfield owns some important concessions, including Blocks A, B and C, in and around Rainy River’s major gold discovery zone. That discovery zone brought Rainy River to the forefront of the junior exploration scene last January, when step-out drilling from an area with no previous drilling assayed 5.42 grams per tonne gold over 43 metres with a core interval of 17.67 g/t Au over 9.5 metres. When Rainy River announced the results in November last year, the company’s stock rocked from $2.87 to $4.85 in less than a week.
Now Bayfield is hoping that its own drill results, which are expected sometime before December this year, will tap into some of the same mineralized trend.
Don Myers, who is a director at Bayfield with 20-years experience in pubco management and corporate communications, says both Bayfield and its investors are pleased with progress on the ground at Rainy River.
“We’re constantly sending off assays to the labs, but because we make it our policy to release all our results together we haven’t been able to release any yet. It’s obvious we’re more than satisfied – we’re still aggressively seeking land in the area, we’re planning more drill holes.”
If and when Bayfield does pick up new land in the area, they won’t be the only ones doing so. In August, Rainy River reported an option agreement for a 100% interest in an additional 1,570 acres of farmland in the Sifton, Richardson and Tait townships in the Rainy River district in Northwestern Ontario.
Myers told me, “Rainy River Resources is on a major land acquisition – their last six or so news releases show that they’re acquiring more land, they’re surrounding more of our properties than just the B Block – after their Canaccord Capital financing they’ve been acquiring much more land in the area. This means they’ve got lots of money to continue drilling and purchasing.”
I have a feeling Bayfield has something similar coming up in the near future: With all the drilling activity going on, the incredible results coming out of RR.V, land purchasing, this Rainy River area is really on fire. As well, Bayfield has been drilling all summer and has finished ten drill holes of the present drill program.
“Now’s a great time for us,” Myers says. “We’re still awaiting assay results, but we’ve got three blocks of land to drill. On the B Block we’ve drilled five holes. We’ve drilled five holes on the A Block. Now we’re going back to the B Block and do two more holes there, then the C Block for two or three more. That’ll wrap up the drill program, and then you’re looking at typically four to six weeks for results.”
Read the rest of the article here:
http://www.resourcexinvestor.com/news.php?id=2343
IMPACT Silver Corp. Commences Construction of Third Mine and Increases Production
Thursday September 20, 6:12 pm ET
http://biz.yahoo.com/ccn/070920/200709200414590001.html?.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2007) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce both the commencement of construction activities at the new high-grade silver Chivo Mine as well as an increase in production throughput to 300 tonnes per day ("tpd") at the Royal Mines of Zacualpan Silver District, Mexico.
CHIVO MINE
Permitting is now complete and groundbreaking has begun to put the new Chivo Mine into production. Chivo will be the third producing mine at the Royal Mines of Zacualpan Silver Project and the second put into production by the IMPACT team. The Chivo Mine is located in the central part of the district. Underground access is expected to reach the main Chivo Silver Shoot in late October. Once there, development work will commence to open multiple headings on the mineralization, creating development muck that will be processed in the mill. Production from stoping will commence at 60 tpd in early 2008 and will significantly boost IMPACT's overall silver production.
Chivo was discovered in 2005 when IMPACT crews found high-grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins assayed 1,095g/t silver and 0.38g/t gold across 1.25m true width ("TW") in the workings and 2,640g/t silver and 1.36g/t gold across 0.85m on surface.
Two subsequent drill programs consisting of 18 holes returned highlights of 937g/t silver, 0.35g/t gold, 1.88% zinc and 0.75% lead across 2.7m TW (Drill hole Z-06-10) and 378g/t silver, 0.30g/t gold, 4.25% zinc and 1.76% lead across 4.7m TW (Drill hole Z07-03) (See IMPACT news releases dated October 12, 2006 and July 12, 2007). This drilling outlined a silver shoot measuring 100m horizontal by 220m down dip which remains open for expansion to the northeast and southwest. The program also discovered a possible second shoot, the Chivo Northeast Zone, with four holes which returned highlight results of 451g/t silver, 0.43g/t gold, 3.86% zinc and 1.32% lead across 1.4m TW.
As part of the ongoing 10,000m drill program, surface drilling is further outlining extensions of the Chivo Northeast Zone and several nearby parallel veins. Underground drilling to further expand the main Chivo Silver Shoot is being done by IMPACT's wholly-owned underground drill. IMPACT geologists believe that the cluster of veins in the Chivo area will form the basis for another significant mining hub in the Royal Mines of Zacualpan.
THREE HUNDRED TONNES PER DAY PRODUCTION ACHIEVED
IMPACT's two existing mines, the Guadalupe and Gallega Mines, have achieved consistent production of 300 tpd, more than double the original production level of 145 tpd when the Royal Mines of Zacualpan was purchased by IMPACT in January 2006. It is IMPACT's goal to achieve production of 500 tpd before the end of next year. Production increases are anticipated to come from the Chivo Mine when it comes on line, expanded production in the other existing mines and two other zones being assessed for near term production.
Frederick W. Davidson, President and CEO of IMPACT, said: "This is an important milestone within our overall growth strategy. In 18 months we increased production from 145 tpd to 300 tpd. We're making excellent progress on the ground towards our near term goal of ramping up production at the Royal Mines of Zacualpan to 500 tpd."
George Gorzynski, P.Eng. and Nigel Hulme, P.Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release. Drill core was NTW size (5.71cm diameter) and BTW size (4.20cm diameter). Half core samples were collected with a rock saw, tagged for identification and securely stored at the IMPACT base camp until shipment. Chip and channel samples were collected from cleaned rock faces in old mine workings and from bedrock outcrops over a continuous representative interval using a moil and hammer. A total of 5% assay standards and blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara, Mexico, where they were fine-crushed (70% passing a 2mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada, where a 30-gram split of each was assayed for gold and silver by standard fire assay and a 10-gram split was analysed for an additional 30 elements by ICP spectrometry.
IMPACT Silver Corp. is a silver focused mining and exploration company with a producing silver operation at the Royal Mines of Zacualpan, Mexico, an advanced project with a producing mill at Zacatecas, Mexico, and other projects in the Dominican Republic. Energold Drilling Corp. (TSX VENTURE:EGD - News) who was the contractor for the drill programs, owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
Frederick W. Davidson, President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: http://www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
Great Panther Commences Deep Drilling Program at Guanajuato; Provides Production Update for Both Mines
Wednesday September 19, 11:21 am ET
http://biz.yahoo.com/iw/070919/0304385.html
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 19, 2007 -- GREAT PANTHER RESOURCES LIMITED (Toronto:GPR.TO - News) is pleased to announce that a deep underground drilling program has commenced at its 100% owned Guanajuato Mine in central Mexico. The program is designed to twin, then fill in between, diamond drill holes completed in the 1980's and 1990's by the previous owners that indicated the continuation of silver-gold mineralization for approximately 200 metres below the existing mine workings.
Intercepts reported from this historic drilling included 863 g/t Ag and 4.33 g/t Au over 3.30 metres, 347 g/t Ag and 1.69 g/t Au over 3.05 metres, 377 g/t Ag and 20.0 g/t Au over 0.40 metres and 141 g/t Ag and 7.4 g/t Au over 0.60 metres. As both the drill core and drill logs for these holes are incomplete and assay certificates were not kept at the time, the results cannot be used for NI 43-101 purposes and cannot be relied upon. This has been one of the major limiting factors in why the Company has not been able to produce a new NI 43-101 compliant resource for the Guanajuato Mine. Similarly, most of Great Panther's surface drilling cannot be used for this purpose due to the inability of an independent engineer to validate the location of the boundaries of old mine workings around the holes. This limits the ability to calculate volumes, and therefore tonnages, of mineralized rock. New, deep holes will have no such limitations and can then be used to calculate a new NI 43-101 compliant resource.
At present, six drill stations have been prepared on the 345 level (345 metres below surface) just southeast of the Cata shaft. As several holes can be drilled from each station, 30 core holes are currently planned, representing 7,000 metres. The full 4.2 kilometre strike length of the Guanajuato orebody is open to depth and previous drilling indicates significant potential to expand the mine below the existing workings. As additional drill stations have yet to be prepared elsewhere in the mine, it is anticipated that this will be an ongoing program and the Company hopes to add a second drill once the underground infrastructure is in place to support it.
On the production side, refurbishing of the Guanajuato plant is continuing. The third ball mill is now operational and the crushing circuit has been modified to produce smaller, more consistently sized ore to the ball mills. The flotation circuit is undergoing minor modifications and column cells are being considered for installation in order to improve recoveries. Improvements are also being made to the thickeners and disk filters. Throughput at the plant is averaging approximately 700 tonnes per day (tpd), although it has been tested at a rate exceeding 900 tpd. As the plant last operated at its rated capacity of 1,200 tpd in 1991, each new increase in throughput tests the limits of the aging equipment, usually requiring the replacement of some components.
In the mine, development in the Guanajuatito area is continuing with the production of higher grade material but the development of higher grade stopes at deeper levels of the Rayas and Cata Mines has been slower than planned. As such, the overall head grades are continuing to average approximately 165 g/t silver equivalent (Ag Eq). In the short term, the Company is expecting head grades to improve as production increases from the Cata and Rayas stopes.
The Guanajuato Mine has seen steady quarter-over-quarter increases in output since Great Panther commenced production in June 2006. The slower than anticipated development, however, has caused management to revise its production forecast for the mine to approximately 845,000 Ag Eq Oz for 2007.
At the Company's 100% owned Topia Silver-Lead-Zinc Mine in Durango, the third ball mill is now operational, with a capacity of 200-225 tpd. Operating this larger mill instead of the two smaller ones will result in immediate cost savings. The operation of all three mills at once will ultimately require a new substation and a boost in electrical supply from the Federal Electrical Commission, both of which are currently being negotiated. In the mine itself, recently encountered narrow vein widths have resulted in a slight increase in dilution and an overall decrease in tonnage such that throughput at the plant is approximately 170 tpd with a head grade in the range of 600-650 g/t Ag Eq. While this is still a respectable grade, the Company aims to get back to the 800-850 g/t range by year end.
Under current circumstances, the production guidance for Topia for 2007 has been revised to approximately 675,000 Ag Eq Oz. The combined total production for the Company for 2007 is now estimated to be approximately 1,520,000 Ag Eq Oz (metal prices of US$600/oz for Au, US$12/oz for Ag, US$0.60/lb for Pb and US$1.50/lb for Zn were used in the conversion to Ag Eq Oz). While the ramp up at both mines has been slower than anticipated, management is nonetheless pleased with the steady increase in production and the potential for continued growth through exploration and development.
At the Guanajuato Mine, a new state-of-the-art assay laboratory has been constructed on site and is now operational. Built and operated under contract by SGS Labs, the facility is considered to be independent of the Company and all assay results will qualify for NI 43-101 reporting purposes. The lab has a design capacity of approximately 180 samples per day and, once at this rate, should have the ability to process all samples from the Guanajuato mine and mill as well as all of Great Panther's exploration samples. Turn around time for the mine samples is less than 24 hours while exploration samples can be processed in 48-72 hours. It is expected that the lab will pay for itself within a year and ongoing unit costs are anticipated to be substantially less than commercial rates, resulting in a significant saving for the Company. In addition, the new lab is environmentally friendly in that a bank of dust collectors filters all air coming off of the crushing and grinding equipment and all acids used in the sample digestion process are neutralized, with the resulting water being recycled into the plant.
The underground drilling program at Guanajuato is being conducted by Canrock Drilling of San Luis Potosi, Mexico. Robert F. Brown, P.Eng. and Vice-President of Exploration for Great Panther and its wholly owned subsidiary, Minera Mexicana El Rosario, S.A. de C.V., is designated as the Qualified Person for the drilling at the Guanajuato Mine under the meaning of NI 43-101 and has reviewed this news release.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2006 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
SEC 20-F Statement Filed; Standard & Poor's Listed
Contact:
Contacts:
Great Panther Resources Limited
Brad Aelicks
(604) 685-6465
Great Panther Resources Limited
Don Mosher
(604) 685-6465
(604) 899-4303 (FAX)
Email: info@greatpanther.com
Website: http://www.greatpanther.com
--------------------------------------------------------------------------------
Source: Great Panther Resources Limited
Orko Silver Reports High Grade Assay Results from Transversal Vein
Tuesday September 18, 8:38 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2007) - Orko Silver Corp. (TSX VENTURE:OK - News) is pleased to announce that it has received further assay results from the current diamond drilling program on La Preciosa Project in Durango, Mexico.
Gary Cope, President of Orko, adds, "We are excited with the results from the Transversal Vein. These latest assays are another in a series of many that have continued to deliver positive results for the Company including the newly discovered Martha Vein. We are anticipating releasing more assays results and updating our NI 43-101 Compliant Resource Estimate very soon."
The following holes highlight results from drilling completed northward to intersect the east striking, southward dipping Transversal Vein target.
[continued in following link]
http://finance.yahoo.com/q?d=t&s=OK.V
Washington Ballistic Rolls
Hi. I m new here. Question: can anybody tell me if Washington Ballistic Rolls (2007) are considered to be a gold asset? These are gold coins (I don't know how pure)that have never been circulated and were released 2 months ago.
Great Panther Outlines Expansive Geophysical Anomalies and Updates Phase 1 Drilling Program on Mapimi Silver-Lead-Zinc Property
Friday September 14, 11:46 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 14, 2007 -- GREAT PANTHER RESOURCES LIMITED (Toronto:GPR.TO - News) is pleased to announce that Phase I of the Company's integrated exploration program on the Mapimi Project (formerly Km 66) in northeastern Durango State, Mexico has outlined kilometre-scale geophysical targets in addition to the growing silver-lead-zinc resource being delineated by diamond drilling.
Twenty nine core holes, representing 6,298 metres, were completed in the Phase I program on the Mapimi Project with Phase II drilling anticipated to commence in mid-October. Drilling has so far focused primarily on the La Gloria zone and results of the first 19 holes were released on April 16 and May 9, 2007. A parallel zone, called Las Palmitas, lies roughly 100 metres to the west and contains a small resource while the third batch of ten core holes (SK07-020 to SK07-029 totaling 2,449 metres) discovered a similar parallel zone 100 metres to the east. The latter, named La Gloria East, was located using the Aero Quest airborne magnetic survey data and to date contains somewhat erratic mineralization, but is still open to the north.
Highlights of the third batch of drill holes in the Phase I drilling program include 166 g/t silver equivalent (Ag Eq) over 19.46 metres in hole SK07-020; 107 g/t Ag Eq over 36.60 metres and 256 g/t Ag Eq over 55.60 metres in hole SK07-028; and 110 g/t Ag Eq over 47.52 metres and 147 g/t Ag Eq over 13.00 metres in hole SK07-029, all in La Gloria, while La Gloria East returned slightly lower grades over narrower intervals. The last ten holes of the program continued to intersect multiple mineralized intervals within La Gloria and several of the holes were drilled on the fringes of the mineralization, in order to determine its limits. Additional details of the intersections, including individual assays for silver, gold, lead and zinc are presented in the table of results below and an updated map of the various mineralized zones can be found on the Company's website at www.greatpanther.com.
Results from the entire 29-hole Phase I drill program are now being used to update and expand the existing NI 43-101 Inferred Mineral Resource (Great Panther news release September 11, 2006), of 22.3 million ounces of silver equivalent, contained in 4,969,800 tonnes at a grade of 59 g/t Ag, 0.13 g/t Au, 0.81% Pb and 1.31% Zn (139 g/t Ag Eq). This resource was calculated by Wardrop Engineering from previous data on the La Gloria and Las Palmitas Zones only, so it is anticipated that the additional holes into these zones plus the discovery of La Gloria East will result in a significant increase in the size of the resource.
The 550 line kilometre airborne survey completed over the property earlier in 2007 outlined a number of features interpreted to reflect large zones of hydrothermal breccia. One of these features contains the zones of known silver-lead-zinc mineralization, which is hosted in brecciated sediments adjacent to rhyolite dykes. In the La Gloria East Zone, the rhyolite itself is mineralized. Recognizing the extensive nature of these magnetic features (most more than 1,000 metres in diameter), Great Panther contracted Peter Walcott and Associates Ltd. of Vancouver to conduct an induced polarization (IP) geophysical survey focused over the known mineralized zones and the priority airborne magnetic features. In addition, the size of the property was enlarged by staking from the previous 3,508 hectares to approximately 15,000 hectares (the exact area will be determined upon receipt of the formal concession titles) as these are district-scale features.
A total of 103 line kilometres of ground IP has now been completed over four kilometre-scale targets identified from the airborne magnetics. The La Gloria zones (including Las Palmitas and La Gloria East) show up as distinct IP anomalies; a magnetic high, dubbed the Bulls-Eye Zone, is overprinted by a much larger, 2000 metre long by up to 800 metre wide, chargeability high; and a northern magnetic feature is associated with a fairly linear 1000 metre long IP anomaly. The fourth airborne magnetic feature, west of the La Gloria zone did not return any significant IP results. Preliminary ground follow-up of these anomalous zones has revealed Au, Ag and Pb mineralization in outcrop over the Bulls-Eye Zone while visible Cu and Pb mineralization have been sampled over the North Anomaly (assays pending). It is interesting to note that the mineralization at La Gloria sits at the southern tip of the extensive Bulls-Eye Anomaly and is reflected by only modest IP readings.
[continued in following link]
http://biz.yahoo.com/iw/070914/0302399.html
Drilling Results Increase Klondex's Gold Resource By Extending Main and Far North Gold Zones at Fire Creek
Friday September 14, 8:23 am ET
Klondex Updates Progress on Permitting for Underground Development
http://biz.yahoo.com/bw/070914/20070914005108.html?.v=1
VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX - News) reviewed progress from the Phase 6 drilling program at its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada. The goal of the drilling program is to add to the existing mineral resource base and find new zones of significant gold mineralization at the Fire Creek property. These goals are being accomplished utilizing:
1. "Extension" drilling in the boiling zone of the Main and Far North resource area, and
2. "Exploration" drilling of potential mineralization targets identified by an induced polarization (IP) survey conducted last year.
All thirteen Phase 6 "extension" holes have contributed valuable information regarding the structural control and continuity of the Main Zone and Far North Zone veining and are expected to increase both the tonnage and grade from the previously announced NI 43-101 compliant indicated resource at Fire Creek of 1,054,738 ounces of gold in 1,636,555 tonnes (19.88 grams per ton "gpt"). The Company has also completed eleven "exploration" holes to test IP anomalies. While these holes have not encountered new economic intercepts, several have reported anomalous gold values and a few are considered highly encouraging.
Commenting on the Company's progress, Robert Sibthorpe, Technical Director, commented, "Our Phase 6 drilling program progresses well and ahead of schedule, with results that will certainly enable Klondex to expand its indicated mineral resource in our next formal resource update. We believe our investment in exploration this year, estimated at approximately $3.3 million CDN, is delivering a very attractive return on investment to our shareholders in terms of driving an increase in our gold and silver resource and the inherent value of our company.
"On the permitting front, we are making good progress with several agencies, however some unavoidable regulatory delays have required that we extend our timelines for approvals and the commencement of underground development by a few months. In the interim, we continue to develop our underground plans, and our dialogue and negotiations with several potential mining contractors continue, as do our conversations with potential milling partners. While regulatory delay is unfortunate but not unusual during this very active period in the industry, we are making good use of the extra time to advance our planning."
As previously announced, Fire Creek's current Plan of Operations is being amended to include up to 3,000 meters of underground workings to permit access to the Main Zone on two levels. The permitting and contractor selection processes associated with the Main Zone underground program are progressing, though behind the company's original schedule. Final permits are now anticipated by year-end 2007 or early 2008 with development work commencing immediately thereafter. The underground workings will facilitate in-fill drilling to further improve knowledge regarding grade and vein continuity.
Klondex has made application for designation as a "Small Scale Facility" as defined by Nevada Regulation NAC 445A.377, allowing for the extraction and processing in the Main Zone of a series of bulk samples of not more than 33,180 metric tonnes of ore per year and no more than 109,090 metric tonnes in total. Based on the Company's NI 43-101 compliant resource estimate, the weighted average grade of the target areas for the bulk sample is 67 grams of gold per tonne.
Based on preliminary estimates developed in-house for permitting, underground access, exploration, drilling, mining and other costs, Klondex believes it could generate a substantial operating profit during a three-to-four year underground development/bulk sampling program, assuming no unforeseen circumstances.
PHASE 6 DRILLING RESULTS TO DATE
A plan map setting out hole locations is available on the Company's website at http://www.klondexmines.com/s/News.asp
Fire Creek Resource Zone
The gold mineralization in the Main Area is in a swarm of epithermal low-sulfidation quartz-carbonate veins striking NNW within a corridor about 300 meters wide and about 1 kilometer in length. There are at least 12 veins carrying significant gold values in the Main and Far North Zones. The individual veins are usually 100-400 meters in length. Important gold values are generally restricted in a vertical sense to a "boiling zone" between 1750 to 1500 meters above sea level. Thirteen new holes have been drilled during Phase 6 to test the large gaps between or beyond drill intercepts used in the calculation of the September 2006 resource estimate in an effort to increase the overall indicated mineral resource while staying within its given restrictions.
From north to south, these holes produced the following results:
SECTION 800N: Hole FC0727 tested the 100 meter gap between FC0525 (13.2gpt/9.8m) and FC0612 (34.1/3.2 m) and reported intervals of 7.8 gpt over 6.1 meters and 29.5 gpt over 1.52 meters in the Far North Zone.
SECTION 400N: Hole FC 0709 tested the high grade Vein Set 7 through 4 at the bottom of the "boiling zone." As it approached Vein 7 from the west, a low grade interval (1.3 gpt over 13 meters) was reported followed by 1.5 meters of 42.5 gpt and at the projection of Vein 4 a 0.3 meter sample assayed 98.5 gpt. These veins are linked to the strong gold values on Section 350N.
SECTION 250N: Hole 0706 reported no significant values on the down dip extension of Vein 3 on this section.
SECTION 200N: Hole FC0705 tested the 120 meter gap between intercepts on Vein 3 in holes FC0408 (14.2 gpt/2.1m) and FC0416 (5.6gpt/3.66m). It returned a broad zone of 1.7 gpt over 13.7 meters, indicating that the vein may have entered a porous host rock. Higher up the hole, between projections of Vein 5 and 6, an interval of 13.0 gpt over 3.05 meters was recorded.
SECTION 150N: Hole FC0704 (previously reported) had an intercept of 11.1 gpt over 5 meters. Hole FC0710 was collared on top of the Main Zone to test IP anomaly "0" to the west and thus did not impact the main Zone resource. It produced sub-ore intercepts, possibly representing the new vein at IP anomaly "0".
SECTION 100N: Hole FC0703 targeted the down dip extensions of the high-grade intercept in FC0621 on Vein 3. FC0703 returned an intercept of 10.5 gpt gold and 160 gpt silver over 2.1m, 50 meters deeper. Hole FC0711 (previously reported) was drilled westward, directed at IP anomaly "0" outside of the Main Zone. As it passed through the siliceous cap rock over the Main Zone it intersected 11.3 gpt over 3.05 meters in the RC portion of the hole about 50 meters below surface. FC0711 also returned an intercept of 6 gpt over 3 meters which could represent the IP "0" anomaly, a new vein some 100 meters west of the current Main Zone boundary.
[CONTINUED IN FOLLOWING LINK]
http://biz.yahoo.com/bw/070914/20070914005108.html?.v=1
Peak Gold! - A Primer on True Hedging, Part Two
-- Posted Monday, 10 September 2007
A. E. Fekete
All rights reserved
Copyright © 2007
aefekete@hotmail.com
Hedging Fraudulent
In earlier papers I have explained that virtually all activities of gold mines that go under the name „hedging” are fraudulent. To the extent hedges go out into the future more than one year, or they exceed the quantity of one year’s production, they are naked forward sales, carrying unlimited risk (the risk that the gold price goes to infinity, as it has in the wake of every hyperinflation).
To understand the motivation to resort to fraud, and to shoulder unlimited risk to boot, we must remember that the combined short positions in the futures and derivatives markets on gold greatly exceed monetary gold in existence. Without compulsively selling paper gold, a short squeeze and even a corner in cash gold could develop if the longs decided to call the bluff. Thus any exposure to the short side forces pyramiding to fend off the danger. On the other hand some shorts, especially bullion banks, have found the creation of ersatz gold a profitable business. They play a cat-and-mouse game with the longs. They have fashioned the rules of gold exchanges and ETF’s in their own favor in order to make delivery a cumbersome, expensive, and time-consuming procedure. As a result the price of gold could be thrown into a hole so that, whenever it tried to climb out, ’hedgers’ and speculators would rush in and club it down. The shorts can get away with it because the supply of paper gold (futures and option contracts) as well as unmined gold in the ground is virtually unlimited and can be mobilized in the anti-gold campaign.
It speaks volumes of the inherent strength of gold that it could climb out of the hole in 2001 in spite of a terrible assault to push it back. The 20th century belonged to the enemies of gold. There is no need to make predictions here about the 21st.
Changing the nature of gold speculation
Significantly, the so-called hedging activity of gold mines has altered the strategic line-up in the gold market. Speculators have typically been on the long side. They have photographic memories and recall the propensity of governments to cry down the value of the national currency in terms of gold from time to time. The opposite procedure, writing up the value of the national currency in terms of gold is virtually unknown in the annals of monetary history. Given mine hedging, so-called, speculators have changed sides and compete with the mines to sell (paper) gold at the first sign of a bullish move in the price. The fraternity of speculators conceive of risk-free profits on the short side of the market as they attempt to forestall the mines. They have abandoned their traditional haunt on the long side. Peak Gold is a predictible consequence. Unhedged gold mines, too, feel compelled under the threat of a falling gold price to produce gold at break-neck speed while neglecting prospecting and the development of gold properties. Once the producing mines get exhausted, the supply of new gold will decline.
In summary we might say that fraudulent hedging carries with it its own punishment: Peak Gold. It leads to ruthless exploitation of gold mining resources, with no prudent provision for replenishing them through prospecting and new mine development.
’Give a dog a bad name, might as well shoot him’
It is unfortunate that the perfectly honest and useful word „hedging” has been allowed to be abused and given a completely distorted meaning. As the saying goes, ’give a dog a bad name, might as well shoot him!’ It is difficult to explain the distinction between ’hedging true’ and ’hedging false’ when the connotation of the word ’hedging’ in the minds of the people is unsavory. It turns them off. Yet the mission of the monetary scientist obliges him to continue on the path of truth even if it is uphill all the way.
Hedging is a wide-spread practice of producers in all walks of the economy. To be valid and effective, it must be carried on at two levels: upstream and downstream. The former refers to the input, the latter to the output of production. At the input level the producer buys the resources that go into his final product. At the output level the producer is marketing his final product. The need for hedging arises as price fluctuations at either level, especially if they occur faster than adjustments can be made, may cause losses. Thus, worrying about the downstream, the producer is anxious to lock-in a favorable selling price as it may become available for his product prior to the end of the current production cycle. Worrying about the upstream, the hedger aims at locking-in a favorable buying price as it may become available for a major ingredient of his product prior to the beginning of his next production cycle.
Upstream and downstream hedging
Hedging is most efficient if it is bilateral. As it has been practiced in gold mining, hedging is unilateral. It involves forward sales by way of downstream, to the exclusion of the forward purchases by way of upstream hedging. It is a caricature of hedging. It pretends to overcome the fluctuation of the gold price as it affects the output of new gold. I say ’caricature’ because it is counter-productive. Rather than allowing the producer to sell high while preserving the value of his unmined reserves, it forces him to sell low, and sell it fast, as the message is that the price is going to fall, and any delay in selling will involve losses.
Yet, if done properly, either type of hedge should contribute to profitability as well as husbandry. In combination they are a legitimate form of arbitrage, provided that the hedges are carried in the balance sheet, and profits (losses) are reported in the income statement. Hedges carried off-balance-sheet are not legitimate as they conceal a liability with the result that the income statement is falsified. Shareholders and creditors are misled. Directors and managers lock themselves into a fools’ paradise. Especially dangerous are downstream hedges carried off-balance-sheet, for the reason that the short leg (forward sale) represents an unlimited liability. By contrast the long leg of the upstream hedge (forward purchase) represents but a limited liability. The difference is due to the fact that while the price of a commodity can never fall below zero, there is no identifiable limit above which it may not rise. Another way of expressing it is to say that the downstream hedge is subject to a squeeze and possibly to a corner. By contrast, there is no way to squeeze or to corner a producer with an upstream hedge.
Capital destruction
I must confess that I cannot understand the utter lack of business acumen on the part of gold mining executives, still less on the part of investment bankers that finance their activities, in embracing such a contradictory and self-defeating strategy of marketing gold. They should be interested in maximizing the price of their product. Instead, they engineer a falling price trend. They should be interested in maximizing the working life of their gold producing property. Instead, their marketing policy directly contributes to the premature exhaustion of the mines. A lot of observers jump to the conclusion that the gold mines and the bullion banks, in partnership with the government, form a conspiracy to club down the gold price. Theirs is a hidden agenda. The gold mine management is interested in defalcation, that is to say, to trick their stockholders out of their equity. The bullion banks think that they can harness perpetual motion in the artificially induced oscillating movement in the price of gold. Governments look at the gold price as a messenger with an embarrassing message about the depreciation of currency. The messenger had better be shot. Governments know that a steep increase in the gold price will cause panic. Such a panic has historically served as the harbinger of hyperinflation. It must be prevented by hook or crook.
I find this reasoning unattractive. Such a conspiracy can never be proved or disproved. Governments probably use more subtle methods.
Double standard
Most ’hedged’ gold mines are in violation of the important restriction that downstream hedges must not exceed one year’s gold output and they must be lifted before the end of the fiscal year. Their practice transgresses not only the limits of prudence, but also the limits of upright business management. A gold mine selling forward in excess of one year’s output is guilty of fraud. It is concealing a potentially unlimited liability. The accounting profession, the commodity exchanges, and the government’s watchdog agencies have never offered an acceptable explanation for the double standard they apply, one for the gold mining industry, and another one for everyone else. While they allow gold mines to sell forward several years’ production, they would immediately blow the whistle if, for example, an agricultural producer tried to do the same. It is well understood that forward sales in excess of one year’s production are a predatory practice designed to hurt or destroy competition. It is also hurting other market participants downstream.
There is no justification for this double standard. It is scandalous that the government grants legal immunity to gold mines using fraudulent hedges. Worse still, the fraud is facilitated by central banks willing to lease gold which, as the bank well knows, the mine will sell for cash. Central banks are accomplices in the scheme of fraudulent hedging since they report gold that has been leased and sold as if it were still sitting in their vault. It is a form of double-counting gold by modern accounting techniques.
Selling forward more than one year’s output is not hedging. It is outright speculation on the short side of the market in anticipation of a decline in the gold price. Not only is such a ’naked bear speculation’ illegitimate as it falsifies the balance sheet and conceals an unlimited liability, but it also makes the prospectus meaningless. There is no mention in the prospectus of any intention to indulge in short selling that inevitably results in the premature exhaustion of ore reserves and in the dissipation of the most valuable resources of the mine at artificially low prices. On this ground alone the gold mine is open to class action suit by the shareholders. (I am grateful to Tom Szabo of www.silvewraxis.com for pointing out that the double standard is repeated in case of a number of other industries, see FASB Statement No. 133. He also mentions that Barrick’s Gold Sale Contracts have been exempted, along with others, from the regulation as „cash-flow hedges” and thus have no required financial statement inclusion).
Shareholders being hit three times
Furthermore, naked bear speculation makes no economic sense for the mine. By virtue of its net short positions the gold mine assumes a vested interest in a lower and falling gold price which clashes with its main mission of selling newly mined gold at the highest possible price. Such division of loyalties is inadmissible for a firm commissioned by its shareholders to convert wealth represented by ore reserves into wealth represented by bullion in a most advantageous manner. The managers of the ’hedging’ gold mine have a schizophrenic stance as they are prompted to pray for a higher and a lower gold price all at the same time. No enterprise with a schizophrenic management team can survive the vicissitudes of market competition and shareholders’ ire for long. Shareholders get hit three times through the schizophrenic action of the managers. First, income is shaved every time the gold price is forced lower through short selling. Second, capital is being destroyed as the falling gold price makes payable ore reserves to disappear (i.e., become non-payable). Third and most serious is the fact that the richest ore reserves are being frittered away for a pittance at the artificially suppressed gold price, thereby materially shortening the working life of the mine. Naturally, the share price will show not only the shaving of income and destruction of capital, but the premature aging of the gold mine as well.
Paper profit no profit
Advocates of this senseless practice, in particular, the officers of Barrick Gold argue that these losses are more than compensated for by the extra income the firm generates from ’investments’ made with the proceeds of forward sales. But insofar as this extra income is encumbered with unlimited liabilities represented by the fraudulent downstream hedge, it consists of paper profits that should not be paid out in the form of dividends. In fact, they should not be reported as profits in the first place. „There’s many a slip between cup and lip”, as the proverb says. Hidden liabilities may force the firm out of business before it has a chance to realize its paper profits. The practice of window-dressing income statements using unrealized paper profits, especially as they are encumbered with unlimited liability, is blatant fraud and no amount of sophistry or government connivance will change that fact. It is the height of insolence on the part of management to treat shareholders as simpletons unable to understand the difference between paper profits on an open forward sale contract, and profits that have been consummated by having them closed out.
Bilateral hedging
Apologists for the practice of naked bear speculation by gold mines try to push the blame on to the banks. They point out that mines could not get financing unless they heeded the bid of banks to sell forward several years of output as collateral for the loan. Let us leave aside the fact that the banks in setting conditions involving fraud become partners in crime. It is possible that they enjoy the same immunity from criminal prosecution as the mines. Even then the argument is not persuasive. The banks are not micro-managing the mines. The responsibility for fraudulent forward sale of several years of output rests with mining management. It could have used true hedging to satisfy the banks.
In the third, concluding part of this series I shall describe in full details bilateral hedging. It is proper hedging that gold mines can practice without harming anyone. It involves upstream hedging that consists of forward purchases of gold, to compensate for the forward sales of downstream hedging. This reveals that the compensating long leg of Barrick’s straddle is missing. Therefore the so-called hedges of Barrick constitute no valid arbitrage. They are merely tools for illegitimate naked short speculation. They invite severe punishment in a bull market. By contrast, bilateral hedging is for all seasons. The mine prospers in a bull market as well as in a bear market.
A unilateral short hedge can always be converted into a bilateral hedge through adding a compensating unilateral long hedge. Forward sales should be matched by forward purchases. A bilateral hedge is the combination of a downstream and an upstream hedge. It is a legitimate hedge, as forward sales are compensated by forward purchases. It never gives rise to unlimited liability.
For example, an upstream hedge is created by the gold mine when a sudden fall occurs in the gold price. Since management is on the look-out for new gold-bearing properties to buy, in order to replace ore reserves that are being exhausted by its mining activities, the sudden fall in the gold price represents a godsend. Yet the opportunity is ephemeral. The falling gold price knocks down the value of gold-bearing properties and that of the stakes of prospectors. However, the opportunity to buy the property or the stake at such an excellent price is likely to elude the gold miner who has to go through the lengthy process of searching the title and checking the quality and quantity of gold ore in the ground. By the time this process is completed, the gold price might have surged forward making the opportunity to add to ore reserves at a reasonable price disappear.
To lock in a favorable price is possible nevertheless through the forward purchase of gold. The miner creates a straddle or upstream hedge, the long leg of which is a long position in the futures market, while the short leg is the gold-bearing property under negotiation. Care is taken to match the value of the property with the number of futures contracts to purchase. When the deal is closed out and the property is bought, the long leg is lifted and the upstream hedge unwound. The point is that the miner is under no time pressure to close out the deal prematurely. Even if eventually he is paying more in consequence of the surging gold price, the miner is compensated for that by profits on the long leg of his straddle. It is true that there would be a loss on the long leg if the gold price fell further. This is no problem, since the lower price paid for the gold-bearing property will take care of that loss. Adding the upstream hedge converts unilateral into bilateral hedging. It makes the illegitimate forward sale of several years’ mine output legitimate. The short leg of the downstream hedge is compensated for by the long leg of the upstream hedge. The forward purchase removed the unlimited liability that was created by the forward sale of gold. The fraternity of gold speculators will return to their traditional haunt, the long side of the gold market. Gold investors are not hurt by the hedging activities of the gold mines, provided the hedges are proper.
Figuratively we may describe the proper hedges of a gold mine as a four-legged straddle. Two legs are in the upstream and the other two in the downstream market. The short leg downstream (forward sales) is counter-balanced by the long leg upstream (forward purchases) — just as the long leg downstream (gold in the ground about to be mined) counter-balances the short leg upstream (gold property about to be acquired).
The gold mine is uniquely positioned to take advantage of the fluctuating gold price through buying and selling gold futures virtually risk free. Bilateral hedging may increase the profitability of a gold mine manifoldly.
Gold Standard University Live
Gold Standard University Live has just completed its Session Two at the Martineum in Szombathely, Hungary. Session Three is planned in Bessemer (nearest airport Birmingham), Alabama, U.S., in February 2008. It will feature a one-week course entitled Adam Smith’s Real Bills Doctrine. An advocatus diaboli from neighboring Mises Institute will be invited to come and challenge the wisdom of Adam Smith.
The session in Alabama will also feature a blue ribbon panel discussion on the subject of True Hedging for Gold Mines. Representatives of hedged and unhedged gold mines will be invited to participate. The present series Peak Gold! is a primer on true hedging, and a book is planned that would cover the proceedings of the conference.
For the benefit of prospective participants from Europe, Session Three may be repeated at the Martineum in early March, 2008, provided that a sufficient number register.
This is a preliminary announcement only. Stay tuned. For more information please contact: GSUL@t-online.hu
References
A. E. Fekete, Peak Gold! (Part One), www.gold-aegle.com , August 17, 2007
A. E. Fekete, Have Gold Bugs Been Barricked by the U.S.? www.gold-eagle.com, July 12, 2007
A. E. Fekete, Gold Vanishing Into Private Hoards, www.gold-eagle.com, May 31, 2007
A. E. Fekete, To Barrick Or To Be Barricked, That Is the Question, www.gold-eagle.com
August 11, 2006
A. E. Fekete, The Texas Hedges of Barrick, www.goldisfreedom.com , May, 2002
Charles Davis, So Big It’s Brutal, Report on Business, The Globe and Mail: Toronto, June 2006, p 64.
Bob Landis, Readings from the Book of Barrick: A Goldbug Ponders the Unthinkable, www.goldensextant.com , May 21, 2002
Richard Rohmer, Golden Phoenix: The Biography of Peter Munk, Key Porter Books, 1999
Ferdinand Lips, Gold Wars, Will Hedging Kill the Goose Laying the Golden Egg? p 161-167,
New York: FAME, 2001
Antal E. Fekete, Towards a Dynamic Micreoeconomics, Laissez-Faire (Universidad Francisco Marroquín, Guatemala City) No. 5, September, 1996, pp 1-14)
George Bush’s „Heart of Darkness” — Mineral Control of Africa, Executive Intelligence Review, January 3, 1997, see in particular:
Barrick’s Barracudas
Inside Story: The Bush Gang and Barrick, by Anton Chaitkin
George Bush’s 10 billion giveaway to Barrick, by Kark Sonnenblick
Bush abets Barrick’s Golddigging, by Gail Billington
See also: http://american_almanac.tripod.com/bushgold.htm
Stop the Press!
There is wild speculation in Newmont stock on rumors that it is a candidate for a hostile takeover by Barrick. Barrick has denied the rumors; Newmont refused to comment. (Reuters, August 28). So it boils down to the question whether you can believe Barrick. A penny for my thought? Newmont is worth far more under its present management that has courageously unhedged it, than it could ever be worth under the management of Barrick, which is grieviously lacking both in courage and vision. Barrick is still wedded to its idiotic hedge plan, stewing in its own juice as a consequence. Newmont could introduce bilateral hedging, the only true hedge plan for a gold mine, to be described more fully in the next instalment of Peak Gold! I cannot help but think that Barrick is acting out of desperation, in trying to dilute its hedgebook through hostile takeover of unhedged mines. For the latter, it is a kiss of death. Where is Homestake, the legendary flagship of the American gold mining industry?
Barrick’s management could spend its money far more efficiently if it bought back its hedge book, rather than buying out Newmont, which has a vision Barrick is sorely lacking. What are we to make of Barrick’s masochistic prognostocations of a higher gold price both in the short and long term? Company spokesman Vincent Borg is cheering shareholders that they can expect to derive further leverage as Barrick will continue to expand margins. The only fly in the ointment is that it may not be Barrick, but its successor picking up the goodies from receivership, who will reap those benefits.
The key risk for Barrick at this point is in the future course of gold lease rates. This much was admitted in the company’s 2006 Annual Report. It is true that they do have some lease rate swaps. However, these do not protect them against gold going into backwardation as a result of gold lease rates significantly exceeding U.S. dollar interest rates. Another way of saying this is that Barrick would be in a heap of trouble if gold demand greatly exceeded available lease supply. There is no way to hedge against this. The key to Barrick’s fate can be gleaned from the second paragraph on page 54 of its 2006 Annual Report. It was this statement — clinging to the hope of maintaining the status quo on the future availability of leases — that convinced me Barrick was going to be in a huge amount of trouble if it did not amend its ways, and soon. Judging by its insistence on the self-anointed brilliance of the remaining „Project Gold Sales Contracts” (having closed out, for the most part, its „Corporate Gold Sales Contracts”), Barrick has earned the title of THE tragic figure of gold mining: a latter-dayTantalus: hungry and „tantalised” by the sight of most gorgeous foodstuffs floating by he mustn’t touch.
Barrick has staked its very existence on a continuing surplus of leasing over hoarding — at best a dubious assumption. Thus Barrick has made itself into the corporate antithesis of the monetary ascendence of gold.
My fears have been sadly confirmed. Barrick does not have and is unable to raise the money to buy back its hedge book, but it apparently tries to wriggle off the hook through acquiring more unhedged companies. It would pay for the acquisition with Barrick stock. No, not again! Stockholders of Barrick are to be barricked to death!
If the rumors are true, the takeover drama is not without its humorous aspect. The poison pill of unilateral hedging that has been swallowed by Big Fish by now it is causing indigestion and cramps. Now Big Fish wants to feed on fish that have just regurgitated theirs!
DISCLAIMER AND CONFLICTS
THE PUBLICATION OF THIS ARTICLE IS SOLELY FOR YOUR INFORMATION AND ENTERTAINMENT. THE AUTHOR IS NOT SOLICITING ANY ACTION BASED UPON IT, NOR IS HE SUGGESTING THAT IT REPRESENTS, UNDER ANY CIRCUMSTANCES, A RECOMMENDATION TO BUY OR SELL ANY SECURITY. HE HAS NO POSITION, LONG OR SHORT, IN BARRICK STOCK, NOR DOES HE INTEND TO ACQUIRE ONE. THE CONTENT OF THIS ARTICLE IS DERIVED FROM INFORMATION AND SOURCES BELIEVED TO BE RELIABLE, BUT THE AUTHOR MAKES NO REPRESENTATION THAT IT IS COMPLETE OR ERROR-FREE, AND IT SHOULD NOT BE RELIED UPON AS SUCH.
PEAK GOLD!
A Primer on True Hedging, Part One
Antal E. Fekete
Gold Standard University
aefekete@hotmail.com
Copyright © 2007
All rights reserved
August 15, 2007
http://www.gold-eagle.com/gold_digest_05/fekete081507.html
Maximize life, not profits!
In a previous article Gold Vanishing Into Private Hoards I have examined the future of gold from the demand side. Now in Peak Gold! I examine it from the supply side.
For the title I am grateful to Tom Szabo of www.silveraxis.com . He said in his comments dated August 3, 2007: "the unanswered question is: are we approaching 'Peak Gold'? We often hear the term 'Peak Oil', but there are probably some pretty good arguments against being able to predict when the 'peak' date will arrive. Certainly no oil company has put out a prediction of peak production, much less one predicting that oil output will drop by 10 to 15% within a decade."
In this new series of articles I wish to provide a definitive answer to Tom Szabo's question: yes, we are approaching 'Peak Gold' if we have not already passed it. The last twenty-five years in the history of gold mining has been a gross aberration during which gold was mined as if it were a base metal, namely, at the top grade of ore reserves (that is, most recklessly). This is in the sharpest contrast with how gold has been mined traditionally as dictated by the economics of gold mining, namely, at the marginal grade of ore reserves (that is, most conservatively). The world is witnessing a sea change: gold, having been mined qua a base metal, is once more being mined qua a monetary metal.
By marginal grade of ore is meant that grade which can still yield a profit (i.e., is payable), however, any lower grade is already submarginal (i.e., is non-payable). Clearly, marginal grade varies inversely with price: it goes higher as the price goes down, and vice versa. Gold mining used to be the very opposite of base metal mining which must, of necessity, maximize profits, just like any other enterprise. Not many people realize that gold mining is the only exception to this rule. The goal of the gold miner is not to maximize profits. Far from it. His goal is to maximize the life of the gold property. There are several reasons for this, the outstanding one being that gold is the monetary metal par excellence. Whenever private enterprise rather than the government or its central bank controls its creation, new money is not railroaded (should we say air-dropped by helicopter?) into circulation. Money creation is then guided by economic rather than political considerations.
Worst grade first, top grade last
Historically, the propensity of governments is to debase the currency rather than maintaining its value. The longer gold stays underground locked up in the gold-bearing ore, the longer it stays outside of the government's reach. We must remember that gold in the ground can still be an efficient store of value. The aberration of the last twenty-five years of mining gold at break-neck speed, and selling it forward, in some case as much as fifteen years of mine production, is ending. All mines will realize that premature exhaustion of their gold property is suicidal. They will have to learn again the wisdom of gold miners of old: worst grade first, best grade last. Ben Franklin's dictum that "experience runs an expensive school, but fools will learn in no other" applies here as well and, therefore, the learning process may take some time. Be that as it may, the smartest gold miner has probably shifted back to mining at the marginal grade already. He reasons as follows: "If I can only keep my mine operational long enough, dollar debasement will catch up with my submarginal grades and will make them go through a metamorphosis. My submarginal grades of ore will become payable. My expiring gold mine will be rejuvenated and given a new lease on life, thanks to the misguided monetary policies of spendthrift governments. Ergo I had better work my mine as conservatively as possible and lengthen its working life by all available means". This line of thinking is well summarized by the adage: "in and out of ground gold teaches man husbandry".
Barrick bringing good tidings for gold bugs
The present negative roller coaster ride for monetary metals is leading to an increase in absolute terms of the price, which appears unstoppable. (Negative, because an ordinary roller coaster ride ends at the lowest, not the highest, level.) The latest confirmation has come from a most unexpected source. Barrick, the gold miner held in contempt by most gold bugs (for its presumed activities in trying to cap the gold price, nay, to club it down) is now saying that the price of gold will rise during the next five to seven years because supplies from the mines will drop more than anyone in the market can anticipate. This is an extraordinary statement coming, as it is, from a gold producer with a millstone-size and weight of a hedge book around its neck.
As Dorothy Kosich reports on Mineweb in her article Barrick Opines on Gold Supply and Price (Aug. 3, 2007), during a conference call Barrick delved into its future prospects including gold prices. President and CEO Greg Wilkins, and Executive Vice President and CFO Jamie Sokalsky revealed that Barrick has been "digging in very deeply on the supply side of the business" working with a research firm to uncover evidence and trends increasing Barrick's optimism for the future gold price. Mark the word optimism. Perhaps it should read pessimism. Barrick's hedgebook is so hopelessly under water that the company cannot afford to buy it back, as did Newmont making it the largest 'unhedged' gold mine, while the going is still good. The future gold price spells disaster for Barrick that cuts the pitiable figure of a moose standing on the train track fixated on the headlights of the fast approaching train.
"Timeo Danaos et dona ferentes"
Barrick is still studying the research reports, but Sokalsky already told analysts that "our initial analysis shows the buy side (sic) is likely to drop a lot quicker and more than most in the market are anticipating." While he insisted that "it is still too early to talk about any specific numbers", Barrick's research has uncovered much that "should be a lot more positive for the gold price". Sokalsky has divulged that a 10 to 15% drop should occur in overall mine supply of gold within the next five to seven years. That's a volte-face if there ever was one. Ten years ago gold was fetching $300 an ounce and Sokalsky boasted that if horribile dictu the gold price went to $600, Barrick would still be O.K. It could not get a margin call on its gold leases for fifteen years. It need not sell into its hedge book at a loss. It could always sell its output in the open market at a profit. 'Barrick would make every cent of that increase'.
Every cent? The gold price presently is well over $600, and the same Sokalsky is talking about much higher gold prices for the next five to seven years. He must have Santa Claus for bullion banker who carries Barrick's short position most cheerfully, regardless of staggering losses. (Since then we have been told that there is no Santa Claus, not in the gold mining business anyway. The bullion banks have barred Barrick from speculating in the bond market with the proceeds from the sale of leased gold. Moreover, they took away Barrick's freedom to sell its output in the open market without putting a prescribed amount of gold into the hedge book. In effect, Barrick's gold production is in escrow. In all but name the company is foreclosed on its gold leases. The 15-year moratorium on margin calls is a myth that has been exploded by the market.)
Tom Szabo seems to be a bit skeptical about Barrick being the first to report the bad news (bad, that is, from the point of view of those who have endeavored to cap the price of gold during the last decade of the last century. Who knows, maybe the research shows an even bigger than 15% decline in output, but Barrick has opted to tamper with the data in order to show a smaller anticipated decline in gold production than justified by the research, as part of its undending quest to keep the lid on the gold price. Tom Szabo adds that, joking aside, these projections are incredibly bullish for the long-term gold price. What Barrick implies, in effect, is that despite billions of dollars thrown at exploration during the past 2 or 3 years, there are not enough new projects even in the early discovery stage (much less in the late development stage) to maintain the current level of output, as production at the existing sites will start to decline in the next few years.
I myself am also skeptical. "Timeo Danaos et dona ferentes" (Virgil, Aeneid, ii.49): I fear the Greeks especially when they bear gifts. President Wilkins is on record that, while reducing its hedge book some, Barrick will retain its hedge plan as an "essential risk-management tool" and a means of "stabilizing revenues". It gives Barrick "needed flexibility" and, Barrick's creditors, necessary collateral. I think Wilkins should have come clean during the conference call. The talk about 'risk-management' and 'stabilizing revenues' is for the birds. Wilkins should repudiate the hedge plan in no uncertain terms and put the whole unpleasant affair behind him for once and all. Barrick and its creditors need the so-called hedge plan as they need pain in the neck. Unless… unless… there are yet more skeletons in Barrick's cupboard.
Logic would dictate that Barrick lift its short hedges first, and release the research report afterwards. Doing it in the wrong order could cost a pretty penny. Barrick brings the dictum of Cicero to mind: Mendaci neque quum vera dicit, creditur (a liar is not to be believed even when he speaks the truth).
Ruthless exploitation
During the past twenty-five years gold was mined following the worst traditions of ruthless exploitation of a resource. Barrick served both as brain-trust and ring-leader, by mining gold at the top grade of ore defying the tradition and economics of gold mining, and by promoting a thoroughly mendacious, false, and self-defeating forward sales program under the banner of 'hedging'. At one point during the past fifteen years Barrick had to close down operations at no fewer than ten of its gold producing sites as a result of exploitation, because ore reserves became submarginal in the wake of the falling gold price. For years, Barrick has been selling gold forward with wild abandon at ridiculously low prices, in effect blocking its own escape route to short covering should the need arise. It is hard to imagine a gold mine managed more incompetently from a global point of view. Of course, Barrick's highly touted 'hedges' are no hedges at all. In so far as they mature over one year, and their volume exceeds one year's mine output, they are naked forward sales misrepresented as hedges. The whole scheme has been a mindless and extravagant exploitation of a world resource.
In all likelihood it has also been a 'gold laundering' scheme. I have coined this expression to describe clandestine transfer of shareholder equity, either to management (a.k.a. embezzlement), or to an unnamed third party (a.k.a. defalcation). We do not know whether Barrick is guilty of embezzlement, defalcation, or both, and perhaps never will.
Forewarned but not forearmed
We need not keep guessing. I submit that Barrick has been put on notice that its so-called hedge plan would invite charges of unfaithful stewardship as soon as the bear market in gold is over. I warned Sokalsky in person ten years ago at Barrick's headquarters. The meeting took place at the suggestion of Chairman Peter Munk with whom I exchanged letters on the matter. Sokalsky and I discussed Barrick's hedge plan for an hour and a half. I can testify that he understood my point very well. At the end of our meeting I presented to him a 50-page document entitled Gold Mining and Hedging: Will Hedging Kill the Goose To Lay the Golden Egg? which treated this issue exhaustively. He promised to read it and to pass his comments on to me within a month. I have never heard from him again.
In my document the process whereby a rising gold price inevitably makes world gold output shrink (in terms of tonnes) is very clearly demonstrated. To explain this, first I have to discuss another remarkable difference between the ways gold and base metals are traditionally mined. This is the deliberate variation of the rate at which mill capacity is being utilized. The base metal miner is under constraint to mine at the top grade of ore. But he is free to vary the rate of mill capacity utilization in response to changing market conditions. Accordingly, he will increase it if he has to increase output, and vice versa. Not so the gold miner, who is under constraint to run his mill full time, as close to capacity as practicable. But he is free to vary the grade of ore at the mill in response to changing market conditions. Whenever the price of gold rises he decreases, and it falls he increases the grade. He does this because the marginal grade of ore varies inversely with the gold price. If he is to run his mine economically, the gold miner is compelled to go after the marginal grade of ore and leave the better grades alone. He knows that premature exhaustion of his gold mine means dissipating shareholder equity and wasting capital resources. The prematurely exhausted gold mine would have a lot of valuable ore-reserves left behind that would become payable later when the dollar is sufficiently debased. But then it would be too late. Once the gold mine is closed down, it could be prohibitively expensive to re-open it.
Mechanism of Peak Gold
For example, whenever the gold price rises, the marginal grade of ore falls as heretofore submarginal grades become payable. Since gold mines run their mills close to capacity, output shrinks every time the gold price has reached a new high plateau, provided that they are managed economically. Uneconomically managed gold mines get exhausted prematurely and fall by the wayside, as they well deserve.
Peak Gold can be confidently predicted since the increasing gold price (an inevitable consequence of deliberate dollar debasement) causes a world-wide shift in the marginal grade of every gold mine. The marginal grade of ore drops. Since the combined milling capacity of the world's gold mines is a given quantity, and it can only be increased slowly, after a great capital outlay which management may well be reluctant to make (as it would eat into profits and shorten the life of the gold property to boot), the upshot is that the gold content of mill output is falling. World production of gold shrinks (in terms of tonnes) with the rise in the price of gold.
But what about opening new gold mines? As Tom Szabo has hinted, the artificially induced bear market in monetary metals between 1981 and 2001 has resulted in a great reduction in prospecting, exploration of known sites, and development of mines at proven sites. We must realize, however, that the whole episode of explosive increase in world gold production from 1914 through the end of the century was a great anomaly. Even though it was engineered by governments on the warpath, the feat cannot be repeated. The inflationary escapades of governments, either acting in solo or in concert will of course continue. The governments can stay on the warpath and can expand their pet welfare projects as long as they want. In vain: the nexus between the welfare-warfare state's inflationary design and the value of gold, or the tectonics of marginal gold ore underground, has decisively been broken. Governments have expended their ephemeral power to work the miracle of multiplying cash gold through multiplying paper gold. Ditto, no longer can they pretend that gold locked up in ore deposits below surface is a valid substitute for cash gold. From now on it is "cash gold on the barrel". Falsecarding in the gold business has been exposed and discredited.
The great increase in world gold output during the twentieth century was a non-repeatable event, largely due to the inflationary propensities of governments under the gold standard artificially suppressing, as they did, the value of gold. This has caused a world-wide shift in the marginal grade of ore in every gold mine. The marginal grade was boosted and, with it, the world's gold output. That is the background that has created Peak Gold in the first place: a reckless exploitation of a world resource whose production would have increased much more evenly in the absence of inflationary escapades.
But this is history. The present reality is that uneconomic increases in production and naked forward selling are over for good. On the supply side, limited and diminishing injections of newly mined gold shall replace unlimited and ever increasing dumping of paper gold. When you need gold, you demand cash gold, the supply of which from the mines is going to decrease from now on. It is satisfying to see Barrick acknowledge this first.
Hedging proper
In the next part of this series Peak Gold! I shall explain, as I have explained to Jamie Sokalsky ten years ago, the principles of proper hedging. I suggested to him that Barrick should announce a bilateral hedge plan to succeed its notorious unilateral plan. The latter involves short hedges (forward sales) to the exclusion of long hedges (forward purchases). The former involves both.
Just as its forward sales are balanced by Barrick's need to market future production, forward purchases, had they been entered, could have balanced Barrick's future need to acquire new gold properties in anticipation of the exhaustion of its ageing sites. Had Barrick listened to my advice, Peak Gold would not have been to its chagrin. Not only would profits on the long hedges have outstripped losses on the short ones; they would have covered the hefty increases in the price that Barrick has now to pay for new gold properties. Barrick could have scaled Peak Gold with the flying colors, and without a penny loss on its short hedges. What is more, it could have plenty of money left on its long hedges to pay for the acquisition of fresh gold properties in preparation for a bright future bringing higher gold prices in its wake. Barrick would have been ready for the new bull market and could contemplate its own future with genuine optimism.
Gold Standard University Live
Session Two of Gold Standard University is taking place between August 17 and 24, 2007, at Martineum Academy in Szombathely, Hungary. It is featuring a one-week course (13 lectures) entitled Gold and Interest, as well as a blue-ribbon panel discussion on the subject of Last Contango - Basis As an Early Warning Sign of the Collapse of the International Monetary System. Tom Szabo will chair the panel. He is the world's foremost expert on the gold and silver basis who on his website www.silveraxis.com has been tracking the basis for half a year. He is a member of the research team of GSUL.
Session Three is planned to take place in Bessemer, Alabama, U.S.A., in February 2008. It will feature a one-week course entitled Adam Smith's Real Bills Doctrine. An advocatus diaboli from neighboring Mises Institute will be invited to challenge the wisdom of Adam Smith. The session in Alabama will also feature a blue ribbon panel discussion on the subject of True Hedging for Gold Mines. Representatives of hedged and unhedged gold mines will be invited to participate. The present series Peak Gold! is a primer on true hedging.
This is a preliminary announcement only. Stay tuned. For more information please contact: GSUL@t-online.hu
DISCLAIMER AND CONFLICTS
THE PUBLICATION OF THIS ARTICLE IS SOLELY FOR YOUR INFORMATION AND ENTERTAINMENT. THE AUTHOR IS NOT SOLICITING ANY ACTION BASED UPON IT, NOR IS HE SUGGESTING THAT IT REPRESENTS, UNDER ANY CIRCUMSTANCES, A RECOMMENDATION TO BUY OR SELL ANY SECURITY. HE HAS NO POSITION, LONG OR SHORT, IN BARRICK STOCK, NOR DOES HE INTEND TO ACQUIRE ONE. THE CONTENT OF THIS ARTICLE IS DERIVED FROM INFORMATION AND SOURCES BELIEVED TO BE RELIABLE, BUT THE AUTHOR MAKES NO REPRESENTATION THAT IT IS COMPLETE OR ERROR-FREE, AND IT SHOULD NOT BE RELIED UPON AS SUCH.
References
A. E. Fekete, Have Gold Bugs Been Barricked by the U.S.? www.gold-eagle.com, July 12, 2007
A. E. Fekete, Gold Vanishing Into Private Hoards, www.gold-eagle.com, May 31, 2007
Charles Davis, So Big It's Brutal, Report on Business, The Globe and Mail: Toronto, June 2006, p 64.
Bob Landis, Readings from the Book of Barrick: A Goldbug Ponders the Unthinkable, www.goldensextant.com , May 21, 2002
Richard Rohmer, Golden Phoenix: The Biography of Peter Munk, Key Porter Books, 1999
A. E. Fekete, The Texas Hedges of Barrick, www.goldisfreedom.com, May, 2002
Ferdinand Lips, Gold Wars, Will Hedging Kill the Goose Laying the Golden Egg? p 161-167, New York: FAME,
A. E. Fekete, To Barrick Or To Be Barricked, That Is the Question, www.gold-eagle.com August 11, 2006
George Bush's "Heart of Darkness" - Mineral Control of Africa, Executive Intelligence Review, January 3, 1997, see in particular:
Barrick's Barracudas
Inside Story: The Bush Gang and Barrick, by Anton Chaitkin
George Bush's 10 billion giveaway to Barrick, by Kark Sonnenblick
Bush abets Barrick's Golddigging, by Gail Billington
See also: http://american_almanac.tripod.com/bushgold.htm
August 15, 2007
Aura Silver Expands Mexican Project Eastward, Exits El Salvador
Wednesday September 5, 8:45 am ET
http://biz.yahoo.com/ccn/070905/200709050411305001.html?.v=1
BRAMPTON, ONTARIO--(Marketwire - Sept. 5, 2007) - Aura Silver Resources Inc. (TSX VENTURE:AUU - News; the "Company" or "Aura Silver") is pleased to announce progress from its reconnaissance activities on its East Taviche Concession, Mexico. Exploration on the Company's Taviche property has been ongoing since early spring, 2007.
When Aura Silver and Intrepid Mines Limited ("Intrepid") teamed up to explore the Taviche Project area in 2006 very little was known about mineralization on the East Concession. At that time, few veins had been identified, and a stream sediment program was being considered to explore this 7,500ha concession. However, preliminary prospecting surveys by the Company's geological consultants and Intrepid personnel resulted in the identification of an area of about 8 square kilometers with at least 15 significant quartz-carbonate-sulfide veins, several with surface exposures ranging to over 500 meters in strike length. This work resulted in a significant upgrade to the geologic potential and priority of the East Taviche Concession. Nearly all of the veins have at least minor historic workings along them; several have been developed up to 100 meters below surface. Initial investigations and sampling of the mine dumps have returned high silver and gold values (see June 5, 2007 press release). Detailed geologic mapping continues and has to date only covered about 3 square kilometers of the outlined district, including the area surrounding the Rosario, Carolina, and Vichache mines. It is material to note that surface mapping and sampling of the Rosario and neighboring vein systems (see June 5, 2007 press release) identified abundant silicification of the volcanic rocks and broad zones of quartz veining and stockwork at surface containing silver values less than 100 g/t and gold values less than 1 g/t.
Mapping and sampling is advancing southward towards the San Carlos and Rio Calabaza areas. The majority of assay results are pending, being anticipated in mid-September. Along with initial gold-silver analyses, vein geochemistry indicates a north-south zonation with marked decreases in base metals (Cu-Pb-Zn) and pronounced increases in pathfinder elements such as arsenic and antimony. These trends suggest that vein exposures in the southern part of this sub-district are higher in the epithermal vertical zonation model. This is also supported by increased wallrock silicification in the same zones.
Aura Silver and Intrepid will continue their focus on this exciting area of high grade silver-gold veins while they await the approval of the environmental permit necessary to commence a drilling program on vein systems on the West Taviche Concession.
As previously noted in press releases, the Aura Silver and Intepid properties in the Taviche Mining District consist of two blocks: the West Taviche Block with 6,254 Hectares and the East Taviche Block with 7,494 Hectares. The Taviche Project is located in central Oaxaca State, Mexico about 10 km South-Southeast of the City of Ocotlan and is owned by Plata Panamericana S.A. de C.V., a wholly owned subsidiary of Pan American Silver Corporation. Jointly Aura Silver and Intrepid can earn a 70% interest in the project.
Aura Silver is also pleased to report that it has concluded a definitive agreement with Tribune Uranium Corp. ("Tribune", formerly Tribune Resources Corp.) for the sale of the Company's Salvadoran subsidiary holding all of the Company's El Salvador assets (previously announced on February 26, 2007). Under the terms of the agreement, Tribune will purchase the Company's Salvadoran subsidiary (Martinique Minerals El Salvador S.A. de C.V.) and work toward establishing environmental permitting and social license for a period of one year from the date of signing the definitive agreement. Tribune can continue with the project by issuing to Aura Silver 800,000 common shares of Tribune stock over a period of three years. If the purchase is completed, Aura Silver will retain a 1% NSR royalty. The exploration licenses held by the Company's El Salvadoran subsidiary are subject to a 50/50 joint venture agreement with Intrepid Mines Limited. Paul Pitman, President of Aura Silver reports, "We are very pleased to allow Tribune the opportunity to advance exploration on the properties in Central America while Aura Silver continues to focus on it's exploration at Taviche, Mexico and to expand opportunities in this silver rich country".
FORWORD LOOKING STATEMENTS
This Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this press release.
Contact:
Paul W. Pitman, P.Geo.
Aura Silver Resources Inc.
President and designated QP
905-456-5436
paul@aurasilver.com
Aura Silver Resources Inc.
Investor relations:
Dani Wright
866-981-4588 ext. 242
ir@aurasilver.com
http://www.aurasilver.com
--------------------------------------------------------------------------------
Source: Aura Silver Resources Inc.
Freegold Completes Initial Drill Program on High-Grade Rob Property Targets
Thursday August 30, 9:41 am ET
TSX: ITF, OTC BB: FGOVF, Frankfurt: FR4
VANCOUVER, Aug. 30 /PRNewswire-FirstCall/ - Freegold Ventures Limited (the "Company") is pleased to announce results from recent surface sampling programs, and the completion of an initial 17 hole (3,514 foot) drill program at its Rob project In east-central Alaska. Surface samples collected from five separate vein systems within the 4,240 acre property in late 2006 and more recently in June 2007 continue to return high grade gold assays from a number of vein systems on the property. Drilling has now been conducted by Freegold on two of these vein systems, Gray Lead and O'Reely, both of which have intersected quartz veins averaging true widths of 10 and 4 feet respectively within surrounding gneissic host rocks. Final assays from these core holes are expected to be reported within the next few weeks.
Freegold acquired the Rob property in 2002 and has a 100% lease interest in the property. Rob is located 110 miles southeast of Fairbanks, and lies within the Goodpaster Mining District on the eastern end of the same gneissic dome that hosts gold mineralization at Teck Cominco/Sumitomo's recently commissioned Pogo gold mine. Pogo, located approximately 20 miles west from Rob, is currently the largest underground gold mine in Alaska with planned production over its 10 year-life estimated at 350,000 to 450,000 oz/year. Pogo's 5.6 million ounce gold resource is hosted within stacked, flat-lying quartz veins that average approximately 0.5 ounces of gold per ton. Gold at Pogo is associated with a distinctive geochemical trace element suite (gold, bismuth, arsenic) similar to the mineralization discovered at Rob. Since the opening of the Pogo mine in 2006, this district has received considerable investor attention, most notably with the consolidation of a 513,000 acre land package through staking and joint venturing by Goldcorp founder Rob McEwen. This large land package (subsequently merged into Rubicon Minerals) surrounds the Pogo mine and the Rob property, and was acquired due to the shared belief that the gold mineralization at Pogo is not a unique occurrence in the district.
The first systematic exploration on Rob was undertaken from 1995 to 1998 by Sumitomo Metal Mining and WGM, during which time they conducted over $1.3 million in airborne/ground geophysics, soil/rock geochemical sampling, geologic mapping, trenching and limited diamond drilling. This program successfully identified numerous target areas, many of which have not been tested to date. The program also confirmed that the high-grade quartz veins at Rob are related to similar low-sulphur, high temperature intrusive events similar to Pogo, and that the host rocks have been cut by similar high angle NE and NW fault systems.
Freegold's initial work in 2002/2003 centered on rock sampling and top-of-bedrock auger soil sampling programs designed to confirm results previously reported in the 1990's. This program confirmed high-grade gold occurrences at a number of target locations throughout the property. Significant assays from this 2002 sampling program include:
2002 Significant Freegold Grab Sample Results
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http://biz.yahoo.com/prnews/070830/to391.html?.v=26
IMPACT Announces Second Quarter Results
Monday August 27, 8:00 am ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2007) - IMPACT Silver Corp. (TSX VENTURE:IPT - News; "IMPACT" or "the Company") is pleased to announce its results for the quarter ended June 30, 2007. The Company's consolidated financial statements include the results of the Royal Mines of Zacualpan Project ("Zacualpan") that was purchased on January 16, 2006 and resumed production on January 18, 2006. For the 2007 second quarter, the Company's net revenues were $1,677,000 (2006 - $1,977,000) and net loss of $48,000 (2006 - $103,000). Year to date net revenues were $3,536,000 compared to $3,124,000 for the same period in 2006 with net earnings of $219,000 compared to $75,416 in the first half of 2006. The Company's loss for the quarter included a provision for foreign exchange losses of $172,000 compared to a gain in the comparative period in 2006 of $158,000.
The comparative results for the second quarter of 2006 have been restated in accordance with the recommendations contained in CICA handbook 1506.42. While there has been no change to the net income for the 2006 year, there was a significant timing difference and its impact on net income for the comparative 2006 second quarter earnings as a result of the restatement of the forward sales contract liability incurred during the acquisition of the Zacualpan mine.
In the second quarter of 2007, the Company achieved higher levels of throughput at the Zacualpan mine, averaging 279 tonnes-per-day ("tpd"). The amount of silver produced in the quarter was 13% lower, however production in lead increased 95% and zinc by 74% over the comparable quarter in 2006. The number of total tonnes processed also increased by 75%.
Production
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http://biz.yahoo.com/ccn/070827/200708270409612001.html?.v=1
Two New High-Grade Gold Zones Discovered at NFX's Larder Lake Property
Wednesday August 15, 5:00 pm ET
Hole 11 intersected 10.4g/t Au over 5.2m and 13.3g/t Au over 6.0m
TORONTO, ONTARIO and LONGUEUIL, QUEBEC--(Marketwire - Aug. 15, 2007) - Maximus Ventures Ltd. ("Maximus") (TSX VENTURE:MXV - News) and NFX Gold Inc. ("NFX") (TSX VENTURE:NFX - News) are pleased to announce the discovery of two new high-grade gold zones at the Larder Lake Gold Project located in eastern Ontario, Canada. Hole 11 cut an average of 10.4 g/t gold over 5.2 meters (m) at a hole depth of 587m in the carbonate ore type, followed by 13.3 g/t Au over 6.0m at a hole depth of 667m in flow-type ore. These ore types are the host to several major gold deposits in the region.
"Hole 11 intersected two of the highest grade zones recorded on the Larder Lake property to date," said Francois Viens, President and CEO of Maximus. "Based on the assay results from holes 7 to 11, all drilled within a 600m stretch of the Bear Lake fault, it appears that the fault acted as a major gold mineralization conduit. Additional drilling is planned to investigate the extent of this high grade mineralization still open in all directions. The Bear Lake area has received very little drilling over 4 kilometers length between the Cheminis and Barber Larder zones of gold mineralization."
Details of Drill Results
Hole NFX07-11, located in the Bear Lake Area, intersected 2 distinct zones of high grade gold mineralization. The first zone, located at 587m (-485m vertical), is within altered ultramafic rocks with 1-2% pyrite ("Carbonate"-type mineralization) and yielded 10.4g/t Au over 5.2m, including 20.8g/t Au over 1.5m. The full length of this intersection remains to be determined as assay results to date show the presence of gold at both the top and bottom of the intersection. Additional core sampling has been completed and assaying is in process to determine the true thickness of the mineralization.
The second gold zone in hole NFX07-11 intersected at 667m (-550m vertical) consists of strongly altered variolitic basalt, cut by several "albitized" and strongly pyritized (up to 30% pyrite) intermediate intrusives and graded 13.3g/t Au over 6.0m, including 18.6g/t Au over 4.2m. This is interpreted as being "Flow"-type mineralization, characteristic of major gold deposits in the region.
Both of these new high-grade gold zones in hole NFX07-11 are open up-dip, down-dip and for at least 400 metres laterally, indicating significant upside potential.
Both high-grade gold zones intersected in hole NFX07-11 are within altered high-iron mafic and/or ultramafic volcanic rocks locally cut by albitized dykes. These rock types are the typical host to significant gold deposits at the nearby Kerr-Addison Mine and other historic and current gold producers in the region. The presence of the albitized dykes is a newly recognized feature on the Larder Lake Property. The occurrence of these dykes has only been identified thus far,in the high-grade "Flow-Ore" shoots at the Kerr-Addison Mine located some 6 km to the East.
Holes #7, #8 and #10, were all drilled on strike within 400m from hole #11, and encountered the same rock units as in hole #11. Although highly anomalous in gold (see table), the host rocks in these holes are less altered and contain less sulphides, suggesting a significant enrichment of gold content towards the Bear Lake Fault Area, which could have acted as a conduit for gold-rich mineralizing fluids.
All the significant gold deposits/zones found to date along the Barber-Larder Break plunge steeply at 85degrees to the East. Therefore, there is a high probability that the new gold zones would also plunge in that direction. The follow-up drilling program, scheduled to start shortly, will reflect that general vector for mineralized trends.
Check assays of the high-grade intersections are in progress; however, Maximus has no reason to believe there could be errors in the results, based on the results of its QA/QC program.
Bear Lake Area Assay Results - Larder Lake project (2007)
---------------------------------------------------------------------------
From To Length Au
Hole no. (m) (m) (m) (g/t) Mineralization Type
---------------------------------------------------------------------------
NFX07-07 96.8 108.5 11.7 0.4 "Flow"-type
---------------------------------------------------------------------------
Including 98.2 98.7 0.5 2.5 "Flow"-type
---------------------------------------------------------------------------
Including 106.5 106.9 0.4 4.2 "Flow"-type
---------------------------------------------------------------------------
---------------------------------------------------------------------------
NFX07-08 92.9 96.4 3.5 0.3 "Flow"-type
---------------------------------------------------------------------------
197.5 268.5 71.0 0.3 Qz-carb veining + 1-5% Py
---------------------------------------------------------------------------
Including 197.5 198.0 0.5 6.8 Qz-carb veining + 5-10% Py
---------------------------------------------------------------------------
Including 208.4 233.3 24.9 0.2 Qz-carb veining + 1-5% Py (loc. 15%)
---------------------------------------------------------------------------
Including 254.4 255.8 1.4 4.3 Qz-carb veining + 1-5% Py (loc. 15%)
---------------------------------------------------------------------------
Including 267.0 268.5 1.5 4.3 Qz-carb veining + 1-5% Py (loc. 15%)
---------------------------------------------------------------------------
Interm. dyke, stockwork qz-albitite
694.5 732.0 37.5 0.4 (10-15% Py)
---------------------------------------------------------------------------
Including 708.7 709.5 0.8 4.2 Strong albitization + 20% Py
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Altered basalt -- stockwork qtz-
carbonates (25%) "Flow"-type;
NFX07-10 573.2 576.2 3.0 0.8 fuchsite; 5-15% Py
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Altered ultramafic; fuchsite; cut
NFX07-11 538.4 543.6 5.2 0.4 by interm. dyke, (5-10% Py)
---------------------------------------------------------------------------
Including 538.4 538.7 0.3 2.5
---------------------------------------------------------------------------
Ultramafic, strong sil.; albitized
587.5 592.7 5.2 10.4 ("Carbonate"-type); tr-1% Py
---------------------------------------------------------------------------
Including 588.0 589.5 1.5 20.8
---------------------------------------------------------------------------
Altered basalt -- stockwork qtz-
carbonates (5-40%) -- "Flow"-type; up
667.0 673.0 6.0 13.3 to 30% Py
---------------------------------------------------------------------------
Including 668.85 673.0 4.15 18.6
---------------------------------------------------------------------------
---------------------------------------------------------------------------
NFX 09: No significant assay
---------------------------------------------------------------------------
Larder Lake Property
The Larder Lake Project consists of the Cheminis, Bear Lake, and Fernland properties (all 100% NFX owned) and the Barber Larder property (75% NFX owned). Under the Option and Joint Venture Agreement between Maximus and NFX signed March 3, 2006, Maximus has the right to earn a 60% interest in NFX's interest at Larder Lake by expending $6 million on exploration by December 31, 2008.
The technical content of the information related to Larder Lake was reviewed by Mr. Bernard Boily, P. Geo., responsible for supervising the drilling campaign and qualified person for Maximus under the guidelines of National Instrument 43-101. The analytical method for gold is one (1) assay-ton fire assay, AA determination with gravimetric finish on all samples reporting over 2 grams per tonne (g/t) gold. Assaying is done at Laboratoire Expert Inc. in Rouyn-Noranda, Quebec. The quality control process includes inserting blank samples and certified standards within each batch sent to the laboratory.
Forward-looking Statements
This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
Contact:
Thomas G. Larsen
NFX Gold Inc.
President and CEO
(416) 360-8006
(416) 361-1333 or Toll Free: 1-800-360-8006 (FAX)
Website: www.nfxgold.com
Francois Viens
Maximus Ventures Ltd.
President and CEO
(450) 677-1009
(450) 677-2601 (FAX)
Website: www.maximusventures.com
--------------------------------------------------------------------------------
Source: NFX Gold Inc., Maximus Ventures Ltd.
http://biz.yahoo.com/ccn/070815/200708150408024001.html?.v=1
Tyhee receives additional results from Nicholas Lake Main Zone, Yellowknife Gold Project
Thursday August 2, 8:00 am ET
VANCOUVER, Aug. 2 /CNW/ - Tyhee Development Corp. (TSX Venture, TDC) today announced additional gold and tungsten (WO(3)) results from the Nicholas Lake Main Zone, part of its wholly-owned Yellowknife Gold Project.
All of the diamond drillholes previously completed on the Nicholas Lake Main Zone have been resampled to assess the potential for a bulk-mineable resource at this location. Previously, only portions of these holes had been assayed. The final results from this program will be released upon receipt.
Significant intersections including 22.5 metres of 4.924 grams per tonne (gpt) gold in N051 and 47.5 metres of 2.116 gpt gold in N048 as well as 3.4 metres of 0.223 % WO(3) in N032 and 28.5 metres of 0.042% WO3 in N029 have been obtained.
"These intersections continue to define broad areas of gold mineralization within the Nicholas Lake Intrusion and adjacent metasedimentary rocks" said Dave Webb, Tyhee's President & CEO. "Of particular interest are the tungsten values occurring within or in close proximity to the gold mineralization. The results are significant, both in terms of grade and thickness on the central to eastern portion, with narrower zones appearing on the western portion of the deposit."
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http://biz.yahoo.com/cnw/070802/tyhee_nicholas_lake.html?.v=1
Brigadier Gold (TSX-V: BRG) Announces Drill Program at Hunter Mine
Tuesday July 17, 9:15 am ET
Program designed to test down plunge extension of ore body at past producing gold mine near Timmins, Ont.
TORONTO, ONTARIO--(CCNMatthews - July 17, 2007) - Brigadier Gold Limited ("Brigadier" or the "Company") (TSX VENTURE:BRG - News) today announced the details of its upcoming drill campaign, scheduled for September, that will test the down-plunge extension of gold mineralization at the Hunter Mine, a past producer located adjacent to the Dome Mine near Timmins, Ontario.
"Despite being a past producer, the Hunter Mine property is under-explored, and we're excited to kick-off our drilling with a minimum of 1,700 metres," said Herb Kokotow, President. "We've contracted with Benoit Diamond Drilling Ltd., and the program is scheduled to begin in the first week of September."
Gold mineralization at the Hunter Mine occurs as a high-grade shoot within a zone up to 15 metres thick, over a strike length of 470 metres and to a depth of 200 metres as defined by drilling and underground work. Importantly, the mineralization is open both along strike to the north and south, and to depth.
The shoot, which extends from surface, has an indicated length of 68 metres and an average grade of 10.3 g/t gold over a width of 1.3 metres. Previous drilling indicates that the zone persists to a depth of 150 metres, where intersections include 24.5 g/t over 2.7 metres, 26.1 g/t over 1.0 metre, 2.67 g/t over 1.3 metres and 8.85 g/t over 0.8 metres.
Brigadier will drill three 400 metre holes to test the continuation of this mineralization down plunge to the north between the 200 and 300 metre levels. A further three holes, totalling 500 metres, will test a favourable horizon to the southwest in an area that is on strike with the Dome Super Pit and in which there is no record of previous drilling.
Brigadier has an option to acquire, from ValGold Resources Ltd., an up to 80% interest in the Hunter Gold Mine, which is located adjacent to the renowned Dome Mine near Timmins, Ontario which has produced over 60 million ounces of gold. Exploration at the Hunter Mine is being supervised by Dr. Derek McBride, P.Eng., Brigadier Gold's Senior Geologist and a qualified person under National Instrument 43-101. Dr. McBride has reviewed and approved the contents of this news release.
About Brigadier Gold
Brigadier Gold Limited is an exploration company focused on Canada's historical gold mining camps. The Company's key assets are: an option to earn up to 80% of the Hunter Mine, a past gold producer in the Porcupine Mining Camp near Timmins, Ontario from which more than 60 million ounces of gold has been mined from numerous deposits including the Dome, Hollinger, Pamour and Hoyle Pond mines; and exploration projects in the Kirkland Lake-Larder Lake and Matachewan areas where over 37 million ounces of gold have been produced from 25 mines. Brigadier's common shares trade on the TSX-V under the symbol BRG.
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Brigadier, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Brigadier's expectations are disclosed under the heading "Risk Factors" and elsewhere in Brigadier's documents filed from time-to-time with regulatory authorities.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Herb Kokotow
Brigadier Gold Limited
President & CEO
(416) 410-7956
(905) 707-1520 (FAX)
Website: www.brigadiergold.com
--------------------------------------------------------------------------------
Source: Brigadier Gold Limited
http://biz.yahoo.com/ccn/070717/200707170402563001.html?.v=1
IMPACT Silver Announces Chivo Drill Results
Thursday July 12, 6:50 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2007) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce drill results from the Chivo Silver Shoot, as well as a new discovery named Chivo Northeast Zone at the Royal Mines of Zacualpan Silver Project, Mexico. These are the initial results from the first area tested in our 2007 Zacualpan 10,000m drill program.
CHIVO SILVER SHOOT
The Chivo Silver Shoot is located in the southern part of the Zacualpan silver district. Field sampling by IMPACT personnel in 2005 found a main vein and splay in old mine workings at Chivo (see news release dated September 7, 2005). Samples from the western vein assayed 1,095g/t silver and 0.38g/t gold across 1.25m true width in the workings and 2,640g/t silver and 1.36g/t gold across 0.85m on surface. Highlights of an initial drill program in 2006 returned an intercept of 937g/t silver over 2.7m including 2,380g/t silver and 4.83% zinc over 0.7m (see news release dated October 12, 2006).
The 2007 drill program at Chivo was designed to test the outer limits of the high grade silver shoot for mine planning purposes. Significant results from recent holes drilled at Chivo are as follows:
[continued in following link]
http://biz.yahoo.com/ccn/070712/200707120402135001.html?.v=1
PCFG - up 20% today
Golden Star Declares Commercial Production at Bogoso Sulfide Processing Plant in Ghana
Tuesday July 10, 4:51 pm ET
http://biz.yahoo.com/bw/070710/20070710006406.html?.v=1
DENVER--(BUSINESS WIRE)--Golden Star Resources Ltd. (AMEX: GSS - News; TSX: GSC - News) today announced that its new Bogoso Sulfide Processing Plant commenced commercial production as at the end of the second quarter.
Peter Bradford, President and CEO, commented, "While we continue to optimize certain aspects of the Bogoso Sulfide Processing Plant to achieve design throughput and recovery on a consistent basis, we are satisfied that the processing plant has successfully completed the commissioning phase and that the BIOX® process works well. We have achieved a steady improvement in overall throughput and recovery and expect to achieve design throughput and design recovery by the end of the third and fourth quarters of this year, respectively. Gold production projections for the second half of 2007 will be updated in our second quarter results news release."
"During the commissioning phase, we encountered a number of mechanical and design issues that have been or are being corrected. Of note, we suffered systemic failures of certain equipment associated with our BIOX® tanks which has impacted our BIOX® circuit throughput capacity and operation in the second quarter. However, we are pleased with the response from the manufacturers who agreed to fabricate new items and expeditiously mobilize these to Ghana. We expect that the remaining new items will have been delivered and installed by the end of August 2007."
Second Quarter
We expect to report our second quarter results on August 7, 2007.
Gold sales at Wassa for the second quarter are estimated at 28,372 ounces, a marginal improvement on the first quarter and in line with guidance. At the Bogoso oxide processing plant, gold sales for the second quarter of approximately 13,910 ounces were impacted by the supply of ore from the Pampe pit, prior to the grant of the mining lease and permit on June 6, 2007. As a result, cash operating costs for the second quarter are expected to be higher than previous guidance.
Because of the new Bogoso Sulfide Processing Plant did not achieve commercial production until the end of the second quarter, our operating results for the second quarter will not reflect any gold sales from it.
Wassa Mine Environmental Award
We are pleased to report that for the second year in a row, the Wassa Mine has been awarded the "most improved mine" in Ghana by the Ghana Environmental Protection Agency. Having received this award two years running is a testament to the dedication of our staff at Wassa and their continued achievement of best practices in mining.
Company Profile
Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America. Golden Star has approximately 233 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding future gold production, timing and rates of throughput, production and recovery at the Bogoso Sulfide Processing Plant and various components of the Bogoso Sulfide Processing Plant, the timing of the delivery and installation of new items for the Plant and future gold production from the Bogoso Sulfide Processing Plant. Factors that may affect such matters include delays in receiving needed equipment and parts, power shortages and interruptions, weather including excessive rainfall or drought and variations in ore grade or type, and technical or operating problems. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of risk factors in our Form 10-K for 2006.
Contact:
Golden Star Resources Ltd.
Bruce Higson-Smith, 800-553-8436
Vice President Corporate Development
or
Anne Hite, 800-553-8436
Investor Relations Manager
--------------------------------------------------------------------------------
Source: Golden Star Resources Ltd
PCFG: 8-K Out 7/10/07 After Market, Full Production Began July 2 @ Black Rock Canyon Mine, Operational Guidance Issued, Q3 Estimates Approx. 75,000 CY Gravels @ .03 (avg. ?) oz p/CY @ $635.00? = 1.4 million +
Strong Buy (in my opinion)
Happy Hunting! Fox
For the junior gold 'producer/exploration' company lovers out there-
I think COL.V is undervalued at this level (.20 cents cad)
-They are about to start producing gold in Sonora Mexico in Q4 according to management-
-good exploration upside as well, previous drilling shows good results indicating another ore body exists in the lower zone at Lluvia-
Great Panther Discovers New Silver-Gold Zones at Guanajuato
Monday July 9, 3:57 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jul 9, 2007 -- GREAT PANTHER RESOURCES LIMITED (Toronto:GPR.TO - News) is pleased to announce that surface diamond drilling has intersected four new silver-gold zones and provided further definition on the three previously known zones of silver-gold mineralization in the Promontorio area of the Company's wholly-owned Guanajuato Mine in Guanajuato, Mexico. All zones are sub-parallel and occur within 70 metres of the main Veta Madre. Having several zones within close proximity like this will significantly lower their development costs and plans are already in preparation for the exploitation of this area. The new mineralization lies between 70 and 150 metres below surface and is accessible by ramp.
This portion of the 2007 drill program comprised 2,135.8 metres in eleven holes (SG07-035 to SG07-045) and was focused on defining mineralization in the Promontorio / Garrapata area - the southern most area of exploitation in the Guanajuato Mine Complex. Previous results from this part of the mine were announced on Dec. 12, 2006. Mineralization in this area is now known to comprise at least seven parallel zones: the main Veta Madre, a hangingwall zone ('HW' - above the Veta Madre) and five footwall zones ('FW' - below the Veta Madre). The Veta Madre quartz breccia occurs at the fault contact between hangingwall conglomerates and a footwall mix of metasediments, metavolcanics, and intrusions. The hangingwall zones occur as quartz stockworks in the conglomerates. The footwall zones have been divided into the FW #1a, #1b, #1c, #2, and #3 zones and are associated with quartz stockworks and breccias. The FW #1 and #2 zones are hosted within diorite and quartz-feldspar porphyry intrusions, while the #3 zone occurs at the lower contact between the intrusions and footwall metasediments.
The HW zone was cut by drill holes SG07-035 to 037, and 040 to 045 and displays a higher gold:silver ratio than other zones. Examples of this include 21.2g/t gold and 52g/t silver over 0.88 metres in SG07-035; 11.1g/t gold and 13g/t silver over 1.15 metres in SG07-036; 9.95g/t gold and 477g/t silver over 1.05 metres in SG07-037; and 23.45g/t gold and 45g/t silver over 2.45 metres in SG07-043. The HW zone has been traced for more than 150 metres along strike and up to 100 metres down dip.
The Veta Madre itself was intersected in all holes except SG07-041, which was lost in an old stope. Signs of former mining along the Veta Madre were noted in seven of the eleven holes in this program, however no signs of previous mining were observed in the FW zones. Parts of the Veta Madre have been left in place as evidenced by several mineralized intersections, including 1.98g/t gold and 77g/t silver over 2.59 metres in SG07-038 and 2.39g/t gold and 202g/t silver over 3.55 metres in SG07-043. As such, an in situ and well mineralized portion of the Veta Madre zone has been traced for more than 150 metres along strike and up to 150 metres down dip.
The FW #1a zone was described in the last Promontorio news release (Dec 12, 2006) as the footwall #1 zone in drill holes SG06-033 and 034. The 2007 drilling has added to this with intersections in holes SG07-036 through 040, 042, 044, and 045. FW #1a is located 5-10 metres below the Veta Madre. Noteable intersections include 18.28g/t gold and 104g/t silver over 2.16 metres in SG07-036; 4.58g/t gold and 312g/t silver over 3.09 metres in SG07-037; and 2.02g/t gold and 265g/t silver over 3.60 metres in SG07-040. The FW #1a zone has been traced for more than 100 metres along strike and up to 100 metre down dip.
The FW #1b zone is located only 5 metres below the FW #1a zone, and was intersected in holes SG07-035, 036, 039, 040, and 042 to 045. Highlights from this zone include 0.93g/t gold and 181g/t silver over 2.47 metres in SG07-039 and 2.35g/t gold and 430g/t silver over 2.42 metres in SG07-040. To date, the FW #1b zone has been traced for more than 50 metres along strike and up to 75 metres down dip.
The FW #1c zone is located 5-10 metres below the FW #1b zone, and was intersected in SG07-036, 039, 040, and 045. Noteable intersections include 0.78g/t gold and 266g/t silver over 5.61 metres in SG07-036 and 1.26g/t gold and 292g/t silver over 3.10 metres in SG07-040. This zone has been traced for 50 metres along strike and up to 75 metres down dip.
A new footwall zone (designated FW zone #2) has been discovered approximately 50 metres below the Veta Madre and was intersected in holes SG07-035, 038, 039, 040, 042, and 045. This zone appears to be significantly thicker than some of the others with intercepts such as 6.15 metres of 1.20g/t gold and 206g/t silver in hole SG07-042 and 5.60 metres of 0.71g/t gold and 115g/t silver in SG07-045. The FW zone #2 has been outlined for more than 50 metres along strike and up to 50 metres down dip.
A second new discovery (designated FW zone #3) lies approximately 70 metres below the Veta Madre and was intersected by holes SG07-042 and 043a, approximately 25 metres apart. These holes returned 2.97g/t gold and 175g/t silver over 1.10 metres and 1.55g/t gold and 194g/t silver over 2.31 metres, respectively. Longitudinal sections showing all of the Promontorio drilling can be found in the Guanajuato Mine section of the Great Panther website at www.greatpanther.com.
There is no indication from drilling or a review of underground survey maps that the footwall zones have been previously mined. Drill hole spacing in this program was approximately 30 metres on average. At this spacing, the mineralized zones are observed to vary in thickness, and grades are also quite variable. Detailed drilling to further delineate and extend the zones will be required and will be carried out from existing underground workings that are now being re-habilitated.
To date 6,385 metres of surface drilling have been completed in 2007 at Guanajuato and the program is still underway, detailing and expanding the various zones associated with the prolific Veta Madre structure. This includes the aforementioned holes SG07-035 to 045 at Promontorio, holes SG07-046 to 052 at Tepeyac shaft (south of Valenciana Mine shaft), SG07-053 to 058 at Remedios shaft (north of Cata Mine shaft), and SG07-059 to SG07-065 at two other Promontorio area drill sites. Results from all areas will be released as they become available.
The discovery of these new zones at Promontorio is significant, not only because of the near term potential for development but also because they imply that much of the footwall and hangingwall to the Veta Madre has been largely unexplored and, therefore, undeveloped. With more than 4 kilometres of strike length existing on the mine property, the potential for additional zones to be found is excellent.
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http://biz.yahoo.com/iw/070709/0275509.html
Gold Mining Stocks - What's Happening
By Kenneth Gerbino, Kenneth J. Gerbino & Company
June, 21, 2007
[contained in following link]
http://resourcexinvestor.com/news.php?id=1713
Rob McEwen and Sprott Asset Management to Invest $6.21 million in Freegold Ventures
Monday June 18, 10:09 am ET
TSX: ITF, OTC BB: FGOVF, Frankfurt: FR4
http://www.freegoldventures.com
http://biz.yahoo.com/prnews/070618/to491.html?.v=21
VANCOUVER, June 18 /PRNewswire-FirstCall/ - Freegold Ventures Limited (the "Company") is pleased to announce that, subject to regulatory approval, Rob McEwen and Sprott Asset Management have entered into subscription agreements with the Company for the private placement of 5.4 million units at a price of C$ 1.15 per unit for aggregate proceeds of C$ 6.2 million.
Mr. McEwen is subscribing for 4.5 million units for proceeds of C$ 5,175,000, and Sprott Asset Management, as portfolio manager for various Sprott funds has subscribed for 900,000 units for proceeds of C$ 1,035,000. Each unit is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share for C$ 1.60 for a term of two years from the date of closing.
In addition, the Company will be issuing an additional 100,000 units on a non-brokered basis bringing the total placement to 5.5 million units with total proceeds of C$ 6.325 million. No finder's fee or commissions are being paid in connection with any of these financings.
Upon completion of the placement, Mr. McEwen will own 8.2% of the Company's issued shares. Sprott Asset Management, currently the largest shareholder of the Company, will be increasing its stake in the Company after completion of the placement from 9.9% to 10.5%.
Rob McEwen is Chairman and CEO of US Gold (AMEX & TSX: UXG) and Lexam Explorations (TSX: LEX - News) and was the founder and former Chairman and CEO of Goldcorp, which is the world's lowest cost million ounce gold producer. He has been honored with such awards as the Northern Miner's Man of the Year Award, the Prospectors and Developers Association of Canada's Developer of the Year award, the Ernst & Young's Ontario Entrepreneur of the Year Award in the Energy Category and was most recently recognized as Canada's most innovative C.E.O. by Canadian Business Magazine.
Proceeds of this financing will be used to continue to fund the on-going resource expansion drilling and economic evaluations at the Almaden Project in Idaho, to fund the ongoing shallow and subsequent deeper drilling programs at the Golden Summit project in Alaska, to commence new summer-fall exploration programs on the Vinasale and Rob projects in Alaska, to fund the continued investigation of acquisition opportunities, and for general working capital purposes.
About Freegold Ventures Limited
Freegold Ventures Limited is a North American exploration company with a new management team experienced in mine development and production that is actively exploring advanced-stage gold projects in Idaho and Alaska. Freegold holds a 100% lease interest in the Almaden gold project in Idaho. This large tonnage epithermal gold deposit was the subject of a feasibility study in 1997 calling for the development of a 95,000 oz/year open pit, heap leach mine. Freegold is currently finalizing a 34,000-foot drilling program aimed at further expanding the size of the resource prior to undertaking new economic evaluations in 2007. Drilling at depth and to the north and south of the known mineralization is continuing to identify new extensions to the deposit. Freegold is also discovering new high-grade veins and bulk tonnage shear zones in its 25,000-foot drill program at its Golden Summit project outside Fairbanks, Alaska. A 10,000-ton bulk sample collected in the fall of 2006 was successful in uncovered numerous zones of high-grade surface gold mineralization. Pending permit completion, on-site processing of this bulk sample material plus additional high-grade surface mineralization is expected to commence in late summer 2007. Freegold has also recently optioned the Vinasale Gold Deposit in Alaska, from Doyon, Limited. Geophysical, mapping and sampling programs will be carried out on the property in 2007.
On behalf of the Board of Directors
"Steve Manz"
Steve Manz
President and C.E.O.
The TSX has neither approved nor disapproved the contents of this news
release. CUSIP: 45953B107
DISCLAIMER
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, British Columbia Securities Commission and the United States Securities & Exchange Commission.
CONTACT: Kristina Walcott, VP Corporate Development, (604) 685-1870, 1-800-667-1870, jkw@freegoldventures.com
--------------------------------------------------------------------------------
Source: Freegold Ventures Limited
Aura Silver & Sterling Mining Complete Definitive Agreement on Pine Creek Property, Idaho; Exploration Underway
Monday June 18, 4:19 pm ET
BRAMPTON, ONTARIO--(CCNMatthews - June 18, 2007) - Aura Silver Resources Inc. (TSX VENTURE:AUU - News; the "Company" or "Aura Silver") announced today that the Company and Sterling Mining Company have completed a formal agreement to explore the Pine Creek Area Properties. This Agreement details the proposal for an exploration Joint Venture in the Silver Valley originally signed in 2006 between the two companies (see Aura Silver press release dated October 2, 2006).
Aura Silver will provide exploration expertise and conduct the exploration programs to 2010 to earn a 50% interest in certain mining claims. In order to exercise the option, the Company must pay US $40,000 upon finalization of the definitive agreement, reimburse Sterling Mining for all claim renewal, staking and filing fees, incur aggregate exploration expenditures of US $3,000,000 by December 31, 2010, and issue an aggregate of 1,000,000 common shares by December 31, 2010. Details of the exploration expenditure requirements and share consideration are as follows:
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http://biz.yahoo.com/ccn/070618/200706180397676001.html?.v=1
Freegold Intersects More Gold Bearing Structures in 2,300 Foot Step-out Drilling at Golden Summit
Monday June 11, 8:06 am ET
- 37 shallow, close spaced holes drilled in a 200 x 275 foot area containing a recent 31 g/t (0.90 oz/ton) grab sample in gold bearing structures trending towards the multiple 150 to 375 foot wide zones picked up in Fences 1 to 5.
- High-grade drill intercepts of 23.0 g/t (0.67 oz/ton), 17.8 g/t (0.52 oz/ton) and 18.1 g/t (0.53 oz/ton) all over 3-foot widths hosted within broader zones of lower-grade, surface, bulk-tonnage mineralization.
- Mineralization in this Tolovana vein area remains open in all directions, and future drilling will seek to expand this zone to the north and south as well as to fill in the 2,300-foot wide area between Fences 5 and 6.
TSX: ITF, OTC BB: FGOVF, Frankfurt: FR4 www.freegoldventures.com
VANCOUVER, June 11 /PRNewswire-FirstCall/ - Freegold Ventures Limited (the "Company") is pleased to provide assay results from Fence 6 of the Phase 2, 20,000-foot drill program currently underway at the Company's Golden Summit project outside Fairbanks, Alaska.
Holes in Fence 6 tested a smaller 200 x 275 foot area in the Tolovana vein area, located 2,300 feet west of Fence 5. Drilling was undertaken in this area to follow up on a recent grab sample which assayed 31 g/t (0.90 oz/ton) in the face of an old surface mining cut in which the gold-bearing structures were seen striking in the general direction of the Currey Shear Zone.
As with the previous drilling in this program, the Fence 6 holes continue to intersect high-grade veins hosted within broader areas of lower grade, bulk-tonnage surface gold mineralization. Although the Tolovana vein, encountered in the 31 g/t grab sample in the face of the old mining cut, and in holes 336, 303, 311, 312, 334, 332, and 333 strikes in a more northerly direction than the structures seen in the vein swarms south of the Cleary Hill Mine area, the strike indicates that the Tolovana structure will intersect the south vein swarm somewhere in the 2,300 foot untested area in between Fence 5 and 6. The gold mineralization in this area remains open in all directions, and future drilling will aim to expand this zone, as well as to in-fill the areas between Fences 5 and 6 to determine how this structure ties into the broader zones of gold mineralization traced from Fences 1 to 5.
As with the previous fences, holes in Fence 6 employed shallow, close-spaced drilling to better define the large number of mineralized structures in the system. These 37 holes (holes 301 to 337) were spaced 25 feet apart in roughly a grid pattern, and were drilled to an average depth of 50 feet (see map of the drill hole locations on the company web-site).
Significant higher-grade intervals from Fence 6 include:
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http://biz.yahoo.com/prnews/070611/to339.html?.v=20
New Discoveries on Aura Silver's Taviche Project, Mexico: Drilling Program Approved
Tuesday June 5, 8:45 am ET
BRAMPTON, ONTARIO--(CCNMatthews - June 5, 2007) - Aura Silver Resources Inc. (TSX VENTURE:AUU - News; the "Company" or "Aura Silver") is pleased to provide an update on its Taviche Property that surrounds the San Jose silver-gold deposit owned by Fortuna Silver Mines Inc. ("Fortuna") and Continuum Resources. A press release (May 30, 2007) by Fortuna, outlined results from their recent drilling campaign in which one hole assayed 2.48 grams per tonne gold and 283 grams per tonne silver over 104.9 metres.
In mid April Aura and its partner Intrepid Mines Limited announced that the companies had completed detailed studies along the two known vein systems on the West Taviche Concession and had initiated reconnaissance prospecting over the remainder of the West Taviche Block, as well as over the East Taviche Block where the Mexican Government ("Consejo") had identified numerous gold-silver bearing vein prospects. Sampling by Aura and Intrepid is on-going and results are now available from the Veta Karina (Copales) Vein in the Garzona area on the West Concession, and the Carolina Mine - Rosario Mine structure, the Vichache Mine, the San Jose Mine, the Rio Calabaza Vein, the Satache Shaft and the South San Carlos Mine on the East Concession. In total, over 14 significant quartz-carbonate-sulfide veins averaging greater than 500 meters in length have been mapped. Nearly all of these veins have at least minor workings along them, in some cases with levels developed up to 100 meters below the surface. "The property hosts a bounty of riches with numerous targets to explore," said Paul Pitman, President of Aura, "as with other historical mining camps in Mexico, the Taviche area is remarkably endowed with metals".
In the Garzona area of the West concession, the Copales (Veta Karina) Mine was developed on the north, northwesterly-trending Karina vein. It has been traced over several hundred meters and is 1 to 2 meters in width. Grab samples from surface vein exposures reveal up to 6.34 grams per tonne gold (g/t Au) and 64.2 grams per tonne silver (g/t Ag). A publication from the Servicio Geologico Mexicano states that their sampling from the ore dumps assayed up to 500 g/t Ag, 3 to 7% zinc plus lead, and up to 7 g/t Au. Further sampling of other veins in the Garzona area is planned.
Numerous silver-gold bearing veins are present on the East Taviche concession. Cubilete is a robust northwesterly trending vein that has a strike length of at least 1,500 meters. It is the site of historical mining activity with several adits still accessible on either side of a prominent hill. Production of gold, silver and base metals occurred from levels, developed over about 140 meters of relief. In the San Carlos and Rio Calabaza areas, several veins with widths from 1 to 2 meters were sampled. Material from the San Carlos area contains from 1.34 to 5.58 g/t Au and from 179 to 620 g/t Ag. Sampling of the veins at Rio Calabaza revealed lower gold values (less than 0.318 g/t Au) but important silver values (from 391 to 548 g/t Ag). These significant silver grades in veins exhibiting classic epithermal textures will be the focus of additional detailed work.
[continued in following link]
http://biz.yahoo.com/ccn/070605/200706050395053001.html?.v=1
Freegold Drilling (Fence 5) Continues to Extend Gold Mineralization at Golden Summit
Tuesday June 5, 8:21 am ET
Step out drilling continues to intersect extensions of numerous high-grade veins and shear zones. - Individual intercepts include: 35.4 g/t over 3 feet, 9.1 g/t over 9 feet, 21.8 g/t over 6 feet and 15.6 g/t over 3 feet. - Numerous bulk tonnage zones, with grades comparable to those of the nearby Fort Knox Mine have been identified over widths exceeding 575 feet, with one 175-foot section grading 1.56 g/tonne (88% higher than Fort Knox 2006 average mill feed grade).
TSX: ITF, OTC BB: FGOVF, Frankfurt: FR4 www.freegoldventures.com
VANCOUVER, June 5 /PRNewswire-FirstCall/ - Freegold Ventures Limited (the "Company") is pleased to provide Fence 5 assay results from the Phase 2, 20,000-foot drill program currently underway at the Company's Golden Summit project outside Fairbanks, Alaska. A total of 71 vertical holes were drilled in a line oriented in a generally north-south direction in Fence 5 which is located approximately 385 feet further to the west of Fence 4 (reported on May 24, 2007). Fence 5 covers an area approximately 1,725 feet wide within the 5,000-foot long strike length of known mineralization in the Cleary Hill Mine Area. Drilling continues to intersect and extend the strike length of both low-grade, large-tonnage gold mineralization, along with high-grade vein intercepts that are exhibiting excellent correlation between the drill fences.
As with the previous fences, holes in Fence 5 employed shallow, close-spaced drilling to better define the large number of mineralized structures in the system. The holes, spaced 25 feet apart, were drilled to an average depth of approximately 50 feet. Because of difficult drilling conditions encountered in the mid-part of Fence 4, a gap of 450 feet was left within Fence 5 that will be completed later in the program. At the southern end of Fence 5, 27 holes covering 650 feet of surface width were drilled (starting from south to north with holes 230 to 233, then continuing with holes 254 to 234 and ending with holes 255 and 256). In the northern portion, 44 holes covering 1,075 feet of surface width were drilled (starting with hole 256 in the south and ending with hole 300 in the north). Subsequent drilling within the Fence 5 gap is expected to yield positive results, as assays from structures in the mid-part of Fence 4 that strike in the direction of this gap include a 175 foot zone of holes averaging 0.86 g/t (0.025 opt), including new veins assaying 36.7 g/t (1.07 oz/ton) and 4.4 g/t (0.13 oz/ton) over 3 feet.
Significant higher-grade intervals from Fence 5 (reported from north to
south) include:
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http://biz.yahoo.com/prnews/070605/to230.html?.v=51
Orko Silver Continues to Hit Major Silver-Gold Intercepts at La Preciosa
Monday June 4, 4:28 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jun 4, 2007 -- Orko Silver Corp. (CDNX:OK.V - News) is pleased to announce that it has received further assay results from the current diamond drilling program on La Preciosa Project in Durango, Mexico.
Of particular note are the major widths and high grades in the Abundancia and Martha veins in "Mina La Preciosa" sector from drill hole BP07-103. The Abundancia Vein yielded 11.76 metres grading Au 0.082 g/t and Ag 383.6 g/t, for a silver-equivalent of 388.5 g/t. It includes four samples over 1 kg Ag for 1.54 metres grading Au 0.346 g/t and Ag 2,050.1 g/t, for a silver-equivalent of 2,070.9 g/t.
The Martha Vein hit for 23.17 metres grading Au 0.532 g/t and Ag 216.5 g/t, for a silver-equivalent of 248.4 g/t. It includes 6.38 metres grading Au 0.869 g/t and Ag 433.6 g/t, for a silver-equivalent of 485.7 g/t.
Gary Cope, President of Orko, adds, "Last month we reported the assay results for Hole 102, which at the time was the best hole ever drilled at La Preciosa. With the reporting of the results from Hole 103 and its major intercepts in both Abundancia and Martha Veins, Hole 103 now becomes the best hole ever drilled at La Preciosa. Cumulatively, the results we have been consistently reporting are significant, impressive and improving. This gives us ever increasing confidence that we will achieve our objectives at La Preciosa. We are continuing to drill at a brisk pace and are looking forward to reporting further results as they become available."
Significant intercepts have been received for all five holes presented in this report.
BP07-103
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http://biz.yahoo.com/iw/070604/0261685.html
Time to look at HMI.V - Could move very quickly
HMI.V - Last @ .20 - Bouncing in the high teens...low .20s ....time to accumulate
http://www.stockscores.com/quickreport.asp?ticker=v.hm
Orko Silver Intercepts 19.05 Metres of 239.6 g/t Silver-Equivalent
Wednesday May 30, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2007) - Orko Silver Corp. (TSX VENTURE:OK - News) is pleased to announce that it has received further assay results from the current diamond drilling program on La Preciosa Project in Durango, Mexico.
Of particular note is the major width and high grade in the Abundancia Vein in "Mina La Preciosa" sector from drill hole BP07-101. The Abundancia Vein yielded 19.05 metres true width grading 226.0 g/t Ag and 0.227 g/t Au for a silver-equivalent of 239.6 g/t, including 11.97 metres true width grading 296.5 g/t Ag and 0.249 g/t Au for a silver-equivalent of 311.4 g/t. This hole also contained thickness and grade intercepts for Chabelita, Luz Elena and Martha Veins.
Gary Cope, President of Orko, adds, "The 19.05 metre true width intercept grading 239.6 g/t silver-equivalent in Abundancia Vein is extremely exciting. This intercept is remarkable not only for its width but also for its consistent high grade. La Preciosa continues to deliver and we are eagerly anticipating releasing further results as they become available."
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http://biz.yahoo.com/ccn/070530/200705300393739001.html?.v=1
AURC buyout offer for .55 per share for .13 stock. Any thoughts if its real or a scam??
Aurus Board of Directors Accepts $.55 Offer
Aurus Corp.'s (PINKSHEETS: AURC) board of directors is pleased to announce to its shareholders that it has decided to accept the offer of Kartex Financial Corporation to purchase all outstanding shares at $.55 and, consequently, it recommends to the shareholders to accept the offer.
The president, Fedor Dovgan, assures the shareholders that the procedure to conclude the transaction will be done in a very expeditious manner.
About Aurus Corporation
Aurus Corporation is a publicly traded mining holding company with several precious metal properties with over 5 million ounces in gold reserves, trading under the ticker symbol AURC on the US Pink Sheets market. Aurus seeks to continue to acquire proven gold and other precious metal reserves in Russia and other emerging countries and operate its mines through joint ventures and/or partnerships.
Contact:
Jeremy Krause
Managing Director
Business Development Consultants, LLC
1-858-384-0294
THE GOLDEN KEY
by George Kleinman
Editor, Commodities Trends
May 26, 2007
Let’s begin with some golden facts. Gold is so rare that the entire global supply could be compressed into just one 18-yard cube. To put it another way, more steel is made in one hour than all the gold mined over the history of mankind.
Man discovered gold in approximately 5000 BC. Gold jewelry was first manufactured around 3000 BC by the Sumerians in what is now southern Iraq. King Tut died in 1352 BC. Gold was found in his teeth and gold chains in his tomb. The Minoans of Crete produced the first known gold cable chains (still popular today).
The chemical symbol for gold is Au, from the Latin aurum, which means “shining dawn.” Aurora was the Roman goddess of dawn. (The warming color of the sun has been described as golden.)
Know what the difference is between 24-carat and 18-carat gold? The word carat was derived from the carob seed, used by ancient merchants in the Middle East as a unit of measure. Twenty-four carat is pure; 18 is 75 percent gold with an alloy making up the balance. Fourteen carat is only 58 percent gold.
Pure gold is yellow, white gold is an alloy of gold mixed with silver, and rose gold is an alloy using copper.
Gold is nontoxic, never corrodes or tarnishes and is virtually indestructible. Both women and men love it and its lustrous beauty for jewelry.
I admire gold for its beauty and value, and I also like trading it. My COMEX membership (where gold is traded) turned out to be one of the best investments I ever made. But is gold a good long-term investment? Is it a good trade right now? Consider the following.
Gold reached its all-time high price of $875 per ounce in January 1980. That price has never been exceeded in the past 27 years, despite inflation and the fact that many commodities reached new record highs during the past few years. The recent high price was $728, just about a year ago.
Actually the last dramatic commodity bull market took place between 1970-80, with not just gold but a variety of commodities benefiting. Back then it had to do with the booming Japanese economy. This time it’s China.
China is so big, however, that this commodity boom should last longer and go farther than the previous one. The Chinese, the Indians and millions of other people around the world love gold jewelry. Millions of them, for the first time, now have the discretionary funds to buy it.
And then there’s the investment factor--gold as money. The Chinese have a cash surplus of more than $1 trillion cash in US dollars alone, apart from their billions in surplus yen and euros. They’ve expressed a desire to diversify out of paper into hard assets, with gold near the top of their list.
To the first question--is gold a good longer-term investment?--my answer is yes. Over time, I see the path of least resistance as “higher,” perhaps much higher. How high is high?
Take a look at the copper market for guidance. For more than 100 years, every time the copper price approached the mid-$1.50 range (considered a “high” price), copper prices retreated. Then, in May 2005, copper prices exceeded this level, hitting $1.70 for the first time ever, and then rapidly proceeded to double again on the road to $4. The reason? Chinese demand.
When gold is finally able to breach the $728 mark, and then the all-time high of $875, who’s to say a double to $1,750 isn’t possible? Again, this is somewhere out there in the long term, and the way to play it may or may not be gold mining stocks, an area I have no expertise in.
Recently a hot gold mining stock, Bre-X, went way, way up and then all the way back down to zero. And there are literally hundreds of other gold stocks that have suffered the same fate.
Rather than worry about management, financial statements, environmental concerns and even possible fraud, why not just focus on the metal itself? Bullion, coins or, if you want to use leverage, gold futures or options fit the bill. Futures, however, can be risky. It’s all about timing, which brings us to the second question: Is gold a good trade right now?
Gold Futures
Source: Commodity.com
I try to first determine and then follow the trend of a market; in the short run, the gold trend appears to be down. A few weeks ago I wrote about a volume spike that took place in the gold futures market. Volume spikes can be associated with tops or bottoms. You have to watch the trend post-spike to determine which. Those two days of abnormally high volume took place on May 10 and May 11, with June gold trading between $666 and $683.
Since that time, gold has broken down below this area. If there’s a reason, I would attribute it to a somewhat stronger dollar. Dollar strength equates to gold weakness most of the time. However, the most-dynamic gold markets take place when gold action diverges from dollar action. For example, in 2005 the euro started the year at 1.36 to the dollar and ended the year at 1.18, but gold started 2005 at $420 and ended it at $520. So don’t believe those who tell you gold always moves opposite the dollar; it doesn’t.
To buy gold (as a trader), I’d first like to see the market able to trade above the area it was trading at during those two high-volume days. And here’s something else to watch for; let’s call it my key to the next great gold buying opportunity:
For a variety of reasons, I wouldn’t be totally surprised to see the dollar correct and strengthen in the coming months. However, when gold starts to move higher again (or even just ceases to move lower) in the face of a strong dollar…well that’s the key, the time to buy gold as a trade.
© 2007 George Kleinman
http://www.financialsense.com/editorials/kleinman/2007/0526.html
Benton Resources Corp. (BTC-V) starts drilling on Flying Loon Gold Zone
Tuesday May 22, 1:53 pm ET
THUNDER BAY, ON, May 22 /CNW/ - Benton Resources Corp. ("Benton") is pleased to announce that it has started a 1000-metre, three-hole diamond drill program on the Flying Loon project located in northwestern Ontario. The drill program will follow up on the gold zone intersected in the final hole (FL-06-10) of last year's drill program. Hole 06-10 was designed to test an 800m long magnetic anomaly with a coincident weak electromagnetic response and intersected 4.3 grams per tonne gold over 1.6 metres. The true thickness is unknown at this time. The current drill program will test the mineralization in both strike directions and vertically below the zone, and is expected to be complete prior to the end of the month. At that time, the drill rig will be mobilized to Benton's Bermuda property where it will join a second rig to initiate a minimum 20,000-metre program.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Corp.
"Stephen Stares"
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities.
For further information
Stephen Stares, 3290 Willard Ave, Thunder Bay, Ont., P7E 6J7, Phone (807) 475-7474, Fax (807) 475-7200, www.bentonresources.ca
Investor relations: In Canada: First Canadian Capital, Daniel Boase Phone, (416) 742-5600, Fax (416) 742-6410
In U.S.A: The Windward Agency, Kelly Boatright, Phone (704) 588-8600
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Source: Benton Resources Corp.
http://biz.yahoo.com/cnw/070522/benton_res_drilling.html?.v=1
This is a board for discussing various ways of investing in the Gold industry and creating a profitable portfolio of Gold Stocks. This room has been expanded to include other precious metals, particularly Silver.
Press or news releases for companies of all sizes, e.g., exploration, junior mining and large producers, are welcomed.
Articles pertaining to recent developments and trends that affect the price of gold and silver are included. For example, the dollar and other currencies reflect the value of gold. The Petrodollar is another gold measurement.
Silver and platinum are also precious metals that run in stride with gold and should or will be presented on this board.
Below are relevant links and related charts.
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LINKS:
A Beginner's Guide To Investing In Gold
http://www.moneyweek.com/file/23315/a-beginners-guide-to-investing-in-gold.html
THE GOLDEN KEY
http://www.investorshub.com/boards/read_msg.asp?message_id=19976151
Bill Cara On Gold
http://www.billcara.com/gold/
GoldSeek.com
http://www.goldseek.com/
SilverSeek.com
http://www.silverseek.com/
Junior Mining Companies: Other People's Money
http://biz.yahoo.com/seekingalpha/070220/27435_id.html?.v=1
Financial Sense Online resource Page: Precious Metals
http://www.financialsense.com/metals/main.htm
Financial Sense Big Picture Archive
http://www.financialsense.com/fsn/2007.html
Financial Sense Newshour Roundtable Archive
http://www.financialsense.com/Experts/roundtable/archive.html
GoldRadio.fm & Howe Street Video
http://www.howestreet.com/
Gold Statistics and Information
http://minerals.usgs.gov/minerals/pubs/commodity/gold/
Invest.com - Gold Section
http://www.investcom.com/moneyshow/gold.htm
Invest.com - Silver Section
http://www.investcom.com/moneyshow/silver.htm
The MMI Theory - What is MMI Geochemistry
http://www.mmigeochem.com/theory.htm
Alternative Measures of Labor
http://www.bls.gov/news.release/empsit.t12.htm
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