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Sounds like you've got it covered. I say Friday before we head back up as it won't be until then that all of that stuff will be over with finally, but we shall see how it all pans out.
I have a little cash and will be looking for bargains tomorrow afternoon.
Rebound begins Friday after options expiry for gold contracts. GATA love these free markets!
GORO is down because gold is down and some fear it may be dropping further in the near term, simple as that, same thing with every other gold stock out there.
GORO is "down" all the way to the low $8 range. Keep in mind that $8 was a new all-time high just three weeks ago. Nothing goes straight up. Back and fill, consolidate, etc. Ignore the short term BS and keep your eye on the long term prize. Gold will get going back higher probably sooner than later, and GORO will be producing it and paying us dividends in a much more efficient way than 99% of other gold companies out there.
http://watch.bnn.ca/#clip227643
Goro on BNN - Michael Smedley, chief portfolio manager, Morgan Meighen & Associates, shares his top picks.
New all-time high of $9.29 right now. People not too worried about start-up from this experienced management team.
Off to the races again! Yeeeeeeehaaaaaaaaw!
TLR traded as high as $5.70 a couople of years ago. This is all one big dip as far as I'm concerned.
I personally much prefer frank discussion of both pros and cons. I don't notice huge intraday moves on stocks discussed here, seems more like discussions on those moves after they happen. This is no intraday pump and dump board whatsoever. Good frank discussion of fundamentals is what keeps me coming to this board.
This company is finally getting some of the recognition it deserves. Yes! Check this out:
http://www.thestreet.com/_yahoo/story/10610758/1/timberline-resources-pump-up-the-volume.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Timberline Resources: Pump Up the Volume
COEUR D'ALENE, Idaho (TheStreet) -- Timberline Resources (TLR Quote) shares rallied sharply higher Tuesday on heavy volume after the company increased its gold mineralization estimate on a joint venture project.
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Timberline Resources Corporation| TLR UPTimberline Resources said it has completed an updated calculation of the estimated gold mineralization at its Butte Highlands Gold Project joint venture, increasing its total anticipated mineralization to over 750,000 ounces of gold at an overall grade of 0.26 ounces per ton.
"This additional mineralization is expected to significantly increase our mine life, and there is still the possibility of increasing the mineralization and the mine life as we get into production," said Timberline's Executive Chairman and Vice-President of Exploration Paul Dircksen.
The increased calculations came on a day when gold touched a new record high of $1069.70 an ounce.
Shares of the mining company were jumping by 33 cents, or 29%, to $1.47. Earlier in the session, the stock touched an intraday and new 52-week high of $1.58. More than 1.1 million shares changed hands after two hours of trading Tuesday, compared to the stock's three-month average daily volume of 289,000, according to the Yahoo! Finance.
Timberline Resources has a 29 million-share float with a short interest float of 2.1% as of Sept. 10, according to Yahoo! Finance. More than 19% of the company's shares are held by insiders with only 0.7% owned by institutions.
Read more about today's high-volume stocks like 21st Century Holdings in earlier "Pump Up the Volume" posts.
-- Written by Robert Holmes in New York.
Does GORO need the cash? I don't think so. So they have no need to do a PP. Just cuz Hoch may want one doesn't mean they will get one. The Reids have proven to be nothing but shareholder friendly so make Hoch got to the open market. They have no other choice.
Unless they could use some extra cash to ramp up exploration and add more drills? They do have more places to drill than they know what to do with at the moment. Nice problem to have.
I guess the difference here is that i don't put a whole lot of stock into those apples or oranges when there is some meat laying around.
And for me the meat is the actual physical market, and not how people trade a bunch of pieces of paper instead of the real thing.
I highly suggest you read this other short essay, also posted today at GoldSeek, by Rob Kirby. http://news.goldseek.com/GoldSeek/1255111200.php
Sorry to mix up the OI number with the net short number earlier, but if you go to the Hamilton essay i linked to earlier you will find the numbers you are looking for. Here is that paragraph:
"In late 2005, commercial net shorts surged to their 5th major record of this bull. Yet right then gold had just launched a powerful rally that would take it from around $475 to $700. Similarly in late 2007 commercial net shorts surged to another record, pushing what was then an unbelievable 250k contracts. Yet gold still managed to rally strongly from around $825 to $1000 right out of that commercial net-short record."
Adam Hamilton delves into this subject in this article today http://news.goldseek.com/Zealllc/1255107600.php
The two paragraphs below pretty much sum up my argument on the subject in question:
"This shatters a common OI myth from the CoT priesthood, that record-high gold OI is always bearish for gold. In its mild form, analysts claim record gold OI levels warn of an imminent pullback or correction. This is certainly true at times. But in its extreme form, I’ve heard analysts claim some particular OI record means this secular gold bull is coming to an end. That is just nonsense. Check out the OI records above compared with gold itself.
Sometimes, record-high OI does precede a correction. Early 2003 and early 2008 are great examples of this. But other times, despite record OI gold soars higher. In mid-2007, gold OI first approached 425k contracts. I remember well CoT analysts at that time claiming gold had to correct hard because OI looked frothy. Yet from those $675 levels, gold soon soared to $1000 in early 2008 (and gold OI went even higher)."
$9.00 nice!
I don't know that GORO would do another PP with Hochschild. They should have enough cash and will be generating their own soon. No need to dilute anymore. Hochschild may not have a choice other than the open market. Although the Reids may help arrange some large blocks for them with funds that have to sell as GORO grows percentage wise over their maximum holding amount. Nice problem to have.
TLR - Amazing! UP over 60% on over 16x avg. volume to $1.33 after a 15 cent gain yesterday. More to come tomorrow I hope!
Up over 50% now!
Haven't ever sold a single share of GORO, and don't have any plans to anytime soon. Gold is breaking out and taking GORO with it. There is much more development to come here.
No news needed for TLR. It was severely undervalued and still is so its just catching up to where it should be.
From Ian Cassel's site yesterday - TLR ($0.68): TLR’s Butte Highlands Gold Project is fully funded to production and is staged to produce gold by year end 2010. At $1,000 Gold and $400 cash cost/oz, TLR will likely cash flow $15m in Year one growing to as much as $25m in years following. TLR currently has a $27m market cap.
Hochschild raising money today to buy more GORO it seems, from their PR today -
Additionally, Hochschild has the right to increase its stake in Gold Resource Corporation ("GRC")from 24% to 40%, with the full support of the GRC board. GRC, which has a current market capitalisation in excess of $315 million, is a precious metals mining company with a number of 100% owned, high grade development projects in southern Mexico including the El Aguila project. This project is scheduled to begin production by the end of 2009 and the company expects to produce approximately 70,000 ounces of gold (4.2 million silver equivalent ounces)in its first full year of production. Hochschild is extremely confident about the long term potential of this investment. After the standstill period ends in February 2011, Hochschild can purchase additional shares in GRC without restriction.
I think they are at 24% now, and will likely use some of this money raised to bring them up towards their 40% cap.
The whole thing is a bit sticky, but GORO is climbing to new all time highs at the moment, so I am happy.
Here is they key paragraph taken from Hochschild's website and their PR today:
Additionally, Hochschild has the right to increase its stake in Gold Resource Corporation ("GRC")from 24% to 40%, with the full support of the GRC board. GRC, which has a current market capitalisation in excess of $315 million, is a precious metals mining company with a number of 100% owned, high grade development projects in southern Mexico including the El Aguila project. This project is scheduled to begin production by the end of 2009 and the company expects to produce approximately 70,000 ounces of gold (4.2 million silver equivalent ounces)in its first full year of production. Hochschild is extremely confident about the long term potential of this investment. After the standstill period ends in February 2011, Hochschild can purchase additional shares in GRC without restriction.
It's my understanding that they can't buy more than 40% of GORO until Feb. 2011. Plenty of time to realize full value before then.
TLR is going berserk this morning!
Heck ya! Nice day today too. Pushing towards a dollar in early trade.
New all time high for gold, new all time high for GORO. I like it.
Winner winner chicken dinner!
Don't have time to explain this fully at the moment, but look up articles on "commercial signal failure." Bill Murphy of GATA talks about it all the time and it may very well be happening now. It happened 2-3 years ago when the "all knowing" commercials had to cover their net shorts as gold rose from something like $375 to $530 or something like that.
Sometimes that mugger runs into a black belt and gets his butt knocked out!
Here's an article from early 2006 - http://news.goldseek.com/LemetropoleCafe/1136782751.php
Beem pretty dead here lately. Where's the love? Off to new highs here soon.
FR.to article copied from Lone Clone's Mexican board:
First Majestic Silver Aims To More Than Double Production To 12 Million Ounces Of Silver By 2012
By Charles Wyatt
http://www.minesite.com/nc/minews/singlenews/article/first-majestic-resources-aims-to-more-than-double-production-to-12-million-ounces-of-silver-by-2012/1085.html
Silver has long been First Majestic’s thing. It currently owns and operates three silver mines in Mexico - La Encantada, La Parrilla, and San Martin. It’s also working up the Del Toro silver project, which is currently undergoing a pre-feasibility study. No wonder, then, that when First Majestic decided that it wanted to participate in the trend to consolidation currently in evidence across the Canadian junior sector, it went for a silver company. The company in question, Normabec, has a primary asset in the northern portion of San Luis Potosi state in Mexico called Real de Catorce. It also has an interest in the Pitt Gold property in Quebec, and this is where the clever thinking behind the whole deal manifests itself. Knowing that there would be a number of Normabec shareholders who would like to cling onto the local gold play as the gold price continues to advance, Pitt and all the other mineral interests currently held by Normabec in Quebec are going to be put into a separate company. This company, which is being given the name of Newco while a better name is sought, will be run by the Normabec management as before.
In one sweep, therefore, the most likely arguments against the deal have been swept away. The directors of Normabec retain their jobs and the shareholders continue to have stakes, rather than a single stake, in its silver and gold assets. First Majestic clearly knows what it is doing in Mexico as it has done it all before, so it should advance Real de Catorce, while Newco focuses on the Pitt gold property. Everyone should be happy with this arrangement, and so they seem to be. It has the unanimous support of the boards of directors of both Normabec and First Majestic, and the Normabec board of directors is going to recommend that their shareholders vote in favour at the special meeting which should take place early in November once a full information document has been circulated in mid-October. Lockup and support agreements have been signed by each officer and director, as well as the largest shareholder of Normabec.
First Majestic is paying 0.060425 of a First Majestic share for each Normabec share, but Normabec shareholders will also receive shares in Newco. And just to show willing, and get Newco on the move, First Majestic is going to invest C$300,000 through a private placement. This will give First Majestic an interest in around 10 per cent of Newco. As one of the Rothschild family once said: “the best deals are those when both parties think they have won.” It is not often that one comes across an example, but this comes close. A value of C$0.1806 is assigned to each Normabec share - C$0.1406 of it from First Majestic shares and C$0.04 from Newco shares - and this represents a premium of nearly 50 per cent, based on the average prices of First Majestic and Normabec shares for the 20 trading days prior to 11th September, 2009.
Keith Neumeyer will certainly be getting what he wants too. The Real de Catorce silver project which consists of approximately 6,326 hectares of mineral rights containing a drilled NI 43-101 compliant resource of 33.69 million ounces of silver in the measured and indicated categories, and 13.10 million ounces inferred. As Keith explains, this equates to an acquisition cost of US18 cents per ounce of silver in the ground, which does not look bad against First Majestic’s finding cost of US12 cents per ounce. First Majestic has been looking at the project for some time, has already carried out due diligence on it, and reckons it will make a great strategic fit with the current portfolio. Robert Ayotte , chief executive of Normabec sees the advantage to his shareholders as being the speed with which Real de Catorce can be developed by First Majestic. He clearly sets a lot of store by the proven expertise of the First Majestic technical and mining team, and his shareholders now stand to benefit from First Majestic’s new production profile.
The deal follows closely on the heels of a successful placing by First Majestic which consisted of two tranches, raising a total of C$9.58 million. The new money will be used mostly to fund the major new 3,500 tonnes per day cyanidation mill at La Encantada. This has just about been completed and commissioning should be finished by the middle of next month. When it is working to full capacity the new mill should be able to produce 4.3 million ounces of silver dore a year, and it is the initial impact of this that has encouraged Keith to forecast production of five million ounces of silver for 2009. The important bit of news behind the figures is that although silver recoveries at the three mines increased from 60 to 64 per cent in the second quarter of this year, the introduction of cyanidation at La Encantada will take recoveries there way up to 85 per cent, and this is a project that will account for over 60 per cent of total production next year.
The next priority will be to bring the Del Toro mine into production, Keith explains, as he drives to Spokane for a silver mining conference. At the same time drilling will be carried out at Real de Catorce to reinforce understanding of the geology and to increase the silver resource. As a result of the new mill the company is targeting production of 6.5 million ounces in 2010, but with Del Toro on stream production should rise to nine million ounces in 2011. Well before then attention will also be on Real de Catorce, which should be capable of driving annual production up to 12 million ounces of silver in 2012. Keith points out that production has doubled in the last two years and will double again in the next two. By that time First Majestic will be up there with the biggest of the mid-tier producers and the rating should soon start to reflect this potential.
No need for shame over enthusiasm here, GORO just plain kicks major butt. Perhaps the easiest stock I've ever bought and hold.
Gold Resource Corporation Intercepts 3.28m of 2203g/t Silver at La Arista Vein
Encounters High-Grade Gold and Silver Mineralization Outside El Aguila Open Pit Model
Press Release
Source: Gold Resource Corporation
On Tuesday September 29, 2009, 9:00 am EDT
Companies:Gold Resource Corp
DENVER, CO--(Marketwire - 09/29/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) reports intercepting 3.28 meters of 2203 grams (70 ounces) silver per tonne and 2.07 grams gold per tonne in its La Arista polymetallic vein system. GRC also reports intercepting a high-grade mineralized area while mining its El Aguila open pit that has yielded the highest values encountered to date at the property, 2.5 meters of 904 grams (29 ounces) gold per tonne and 9720 grams (312 ounces) silver per tonne. This rock chip sample was taken over 2.5 meters for grade control purposes but for an area that was previously outside the mineralized open pit model. This area of silicified breccia may correlate with a possible feeder vein for this deposit. Stockpiling of the Aguila open pit ore continues in preparation for the commencement of production at GRC's El Aguila Project in the southern state of Oaxaca, Mexico. The Aguila mill is in the final phase of construction and is targeting gold production in 2009 subject to equipment delivery and construction schedules.
Continued exploration drilling at GRC's La Arista polymetallic vein system returned high-grade with infill and stepout holes.
La Arista vein deposit highlights include:
Hole # 109006 (infill)
-- 3.28 meters of 2.07 g/t gold, 2203 g/t silver, 0.47% copper, 0.50% lead, 1.32% zinc, (or a gold equivalent* value of 34.56 g/t (1.11oz/tonne))
Hole # 109005 (stepout, second deepest intercept extending mineralized vein)
-- 1.80 meters of 0.15 g/t gold, 1057 g/t silver, 0.02% copper, 0.71% lead, 2.35% zinc, (or a gold equivalent* value of 16.45g/t (0.53oz/tonne))
Arista vein system intercepts include:
�
Hole Angle From Length Au Ag Cu Pb Zn AuEq AuEq
(m) (m) ppm ppm % % % ppm oz/tonne
109004 -65 294.70 1.20 3.67 1,120 0.82 2.53 6.04 24.33 0.78
109005 -65 616.75 1.80 0.15 1,057 0.02 0.71 2.35 16.45 0.53
109006 -48 432.72 1.08 -0.01 3,320 0.79 0.65 1.73 48.93 1.57
109006 -48 433.80 0.95 -0.01 2,620 0.39 0.68 1.78 38.56 1.24
109006 -48 434.75 1.25 5.41 921 0.26 0.22 0.61 19.11 0.61
109006 432.72 3.28 2.07 2,203 0.47 0.50 1.32 34.56 1.11
Assays by ALS Chemex, Vancouver, BC Canada Gold Equivalent (AuEq*)
calculated at:
Au $850/oz, Ag $12.00/oz, Cu $1.60/lb, Pb $0.55/lb, Zn $0.55/lb
Gold Resource Corporation's open pit geologists collected a 2.5 meter rock chip sample from an area of silicified breccia during the removal of open pit waste rock. The sample returned 904 grams gold per tonne and 9720 grams silver per tonne. Other samples included 174 grams gold per tonne and 3090 grams silver per tonne. Based on the previous widely spaced exploration drill holes, this area was considered waste material located outside the mineralized open pit model. Air track holes were drilled for grade control into the silicified zone.
Open pit silicified zone intercepts include:
�
Hole Length Gold Silver
1091862 1.0 meter 43.5 g/t 157.0 g/t
and 1.0 8.8 g/t 31.5 g/t
1091537 3.0 meters 26.9 g/t 43.3 g/t
1091551 5.6 meters 24.3 g/t 845.0 g/t
1091579 6.0 meters 18.4 g/t 119.0 g/t
All assays performed by ALS Chemex.
Mr. Reid stated, "These exceptional high-grade samples won't lead us to change any of our production targets but 904 grams gold (29 ounces) per tonne and 9720 grams silver (312 ounces) per tonne does speak to the exciting character of this high-grade mineralized system."
Mr. Reid continued, "However, this high-grade area may be part of the potential feeder vein for this deposit. In an early round of exploration drilling at this deposit we intercepted 4 meters of 55 grams gold per tonne and 701 grams silver per tonne which may correlate to the potential feeder as well."
Mr. Reid continued, "We are pleased that we continue to encounter such high-grade gold and silver values in both our open pit and in extending the depth of the Arista vein system. Couple this with the fact we are closing in on production and you can readily see this is an exciting time for Gold Resource Corporation."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1074910
Contact:
Contact:Jason ReidVP / Corporate Development303-320-7708
Gold Resource Corporation Intercepts 3.28m of 2203g/t Silver at La Arista Vein
Encounters High-Grade Gold and Silver Mineralization Outside El Aguila Open Pit Model
Press Release
Source: Gold Resource Corporation
On Tuesday September 29, 2009, 9:00 am EDT
Companies:Gold Resource Corp
DENVER, CO--(Marketwire - 09/29/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) reports intercepting 3.28 meters of 2203 grams (70 ounces) silver per tonne and 2.07 grams gold per tonne in its La Arista polymetallic vein system. GRC also reports intercepting a high-grade mineralized area while mining its El Aguila open pit that has yielded the highest values encountered to date at the property, 2.5 meters of 904 grams (29 ounces) gold per tonne and 9720 grams (312 ounces) silver per tonne. This rock chip sample was taken over 2.5 meters for grade control purposes but for an area that was previously outside the mineralized open pit model. This area of silicified breccia may correlate with a possible feeder vein for this deposit. Stockpiling of the Aguila open pit ore continues in preparation for the commencement of production at GRC's El Aguila Project in the southern state of Oaxaca, Mexico. The Aguila mill is in the final phase of construction and is targeting gold production in 2009 subject to equipment delivery and construction schedules.
Continued exploration drilling at GRC's La Arista polymetallic vein system returned high-grade with infill and stepout holes.
La Arista vein deposit highlights include:
Hole # 109006 (infill)
-- 3.28 meters of 2.07 g/t gold, 2203 g/t silver, 0.47% copper, 0.50% lead, 1.32% zinc, (or a gold equivalent* value of 34.56 g/t (1.11oz/tonne))
Hole # 109005 (stepout, second deepest intercept extending mineralized vein)
-- 1.80 meters of 0.15 g/t gold, 1057 g/t silver, 0.02% copper, 0.71% lead, 2.35% zinc, (or a gold equivalent* value of 16.45g/t (0.53oz/tonne))
Arista vein system intercepts include:
�
Hole Angle From Length Au Ag Cu Pb Zn AuEq AuEq
(m) (m) ppm ppm % % % ppm oz/tonne
109004 -65 294.70 1.20 3.67 1,120 0.82 2.53 6.04 24.33 0.78
109005 -65 616.75 1.80 0.15 1,057 0.02 0.71 2.35 16.45 0.53
109006 -48 432.72 1.08 -0.01 3,320 0.79 0.65 1.73 48.93 1.57
109006 -48 433.80 0.95 -0.01 2,620 0.39 0.68 1.78 38.56 1.24
109006 -48 434.75 1.25 5.41 921 0.26 0.22 0.61 19.11 0.61
109006 432.72 3.28 2.07 2,203 0.47 0.50 1.32 34.56 1.11
Assays by ALS Chemex, Vancouver, BC Canada Gold Equivalent (AuEq*)
calculated at:
Au $850/oz, Ag $12.00/oz, Cu $1.60/lb, Pb $0.55/lb, Zn $0.55/lb
Gold Resource Corporation's open pit geologists collected a 2.5 meter rock chip sample from an area of silicified breccia during the removal of open pit waste rock. The sample returned 904 grams gold per tonne and 9720 grams silver per tonne. Other samples included 174 grams gold per tonne and 3090 grams silver per tonne. Based on the previous widely spaced exploration drill holes, this area was considered waste material located outside the mineralized open pit model. Air track holes were drilled for grade control into the silicified zone.
Open pit silicified zone intercepts include:
�
Hole Length Gold Silver
1091862 1.0 meter 43.5 g/t 157.0 g/t
and 1.0 8.8 g/t 31.5 g/t
1091537 3.0 meters 26.9 g/t 43.3 g/t
1091551 5.6 meters 24.3 g/t 845.0 g/t
1091579 6.0 meters 18.4 g/t 119.0 g/t
All assays performed by ALS Chemex.
Mr. Reid stated, "These exceptional high-grade samples won't lead us to change any of our production targets but 904 grams gold (29 ounces) per tonne and 9720 grams silver (312 ounces) per tonne does speak to the exciting character of this high-grade mineralized system."
Mr. Reid continued, "However, this high-grade area may be part of the potential feeder vein for this deposit. In an early round of exploration drilling at this deposit we intercepted 4 meters of 55 grams gold per tonne and 701 grams silver per tonne which may correlate to the potential feeder as well."
Mr. Reid continued, "We are pleased that we continue to encounter such high-grade gold and silver values in both our open pit and in extending the depth of the Arista vein system. Couple this with the fact we are closing in on production and you can readily see this is an exciting time for Gold Resource Corporation."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1074910
Contact:
Contact:Jason ReidVP / Corporate Development303-320-7708
COEUR D'ALENE, Idaho, Sept. 24, 2009 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) ("Timberline") is pleased to provide updated economic projections for its Butte Highlands Gold Project joint venture and announce changes to the terms of its outstanding Series A Warrants.
The Butte Highlands Gold Project is a joint venture between Timberline and Small Mine Development (SMD), a premier underground mining and mine development contractor. As previously announced, the company recently initiated development work at the Butte Highlands project after receiving its amended exploration permit for development of the underground mine and an extensive underground dill program. An internal scoping study is being conducted to update the historic resource calculations and better define the economic projections.
Timberline CEO Randal Hardy, offering a preliminary economic update on the Butte Highlands Gold Project, said, "Based on our internal analysis to date, we expect annualized production beginning in late 2010 or early 2011 of approximately 50,000 - 75,000 ounces of gold at an estimated cost of $400 to $500 per ounce. At an average expected grade of 0.27 ounces of gold per ton, and a projected production rate of 750 tons per day, the Butte Highlands Gold Project is expected to have a mine life of over seven years and provide an average annual net income of $34,300,000 based on a gold price of $1,000 per ounce. Timberline's 50% interest in annualized net income would, therefore, be anticipated to be $17,150,000. A sensitivity analysis using gold prices of $800 and $900 per ounce projects Timberline's average annual net income to be $10,900,000 and $14,000,000, respectively."
Mr. Hardy added, "We are looking forward to generating discretionary cash flow for the benefit of our shareholders. Our current expectations are that we would invest 50% to 60% of our cash flow to fund additional property acquisitions and exploration programs - with an objective of identifying other properties with similar potential to our current Butte Highlands Gold Project. Another 15% to 25% of cash flow would be used for general corporate overhead and working capital, and we anticipate allocating 20% to 30% of our discretionary cash flow to dividends and share buyback programs. We anticipate that our business model will continue to advance as our investment in exploration leads to further discoveries and development of producing properties."
Timberline also announced that it has amended the terms of its outstanding Series A Warrants. The warrants were issued in conjunction with units sold approximately two years ago for $2.75 per unit. Each warrant had an initial exercise price of $3.50 per share. The Company's Board of Directors has authorized a reduction in the warrant exercise price to $0.50 per share and an extension in the expiration date to October 16, 2009 in order to allow sufficient time for the exercise of the warrants.
Mr. Hardy will be giving a presentation with more detailed information regarding the company and the Butte Highlands Gold Project at the Silver Summit in Spokane, Washington on September 25, 2009. The presentation and other updates, including photos and videos, will be available on the company's web site at www.timberline-resources.com.
The warrants and the common shares issuable upon exercise of the warrants have not been registered under the United States Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from such registration requirements. The press release does not constitute an offer to sell or a solicitation of an offer to buy in any jurisdiction in which such offer or sale is prohibited.
Timberline Resources Corporation is a diversified gold company comprised of three complementary business units: a mine in production with upcoming gold production, exploration and drilling services. Its unique, vertically-integrated business model provides investors exposure to gold production, the "blue sky" potential of exploration, and the "picks and shovels" aspect of the mining industry. Timberline has contract core drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company has formed a 50/50 joint venture with Highland Mining, LLC, an affiliate of Small Mine Development, LLC, at its Butte Highlands Gold Project and has begun development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol "TLR".
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company's 50/50 joint venture with Highland Mining LLC, the development and production of the Company's Butte Highlands project, and the Company's expected operations in 2009. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "intend" and "expect" and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB for the year ended September 30, 2008. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Contact:
Timberline Resources Corporation
Randal Hardy, CEO
208.664.4859
No, not from me at least, but the overbought status is gone. A little consolidation never hurt no one. Climb back to new highs start tomorrow imo.
Quick answer was basserdan's post a couple of posts ago that is copied below. Now that the $1,000 options have expired wothless, gold will be allowed to run again. Wonderful free markets we have!
Comex Rolloff To Free Gold
UBS Metals Daily
Author:John Reade
September 24, 2009 5:11:28 AM
Gold October options expiry on Comex will take place at 2000 GMT today, and the greatest nearby open interest is at the $1000/oz strike. This is not surprising, as options strikes tend to cluster at round numbers.
The $950 and $1050 strikes too have very large open interest - and the open interest between $950 and $1000 is larger than that between $1000 and $1050. We believe this is a consequence of the recent quick move higher in the metal from $950/oz, rather than options traders explicitly expressing a preference for the downside.
Given the large open interest at the $1000/oz strike, we would not be surprised if gold remains close to this level today, barring a sharp move in EURUSD. To the extent that long October-expiration positioning in the market may have been constraining the range, however, the rolling off of October options should free gold to make larger moves.
Endeavour too +13%!
Correction over. Time to move to new highs?
I will take my dividend in the form of dore bars produced at the site, thank you very much
Gold Resource Corporation -- Update Letter to Shareholders
DENVER, CO--(Marketwire - 09/14/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) updates shareholders on its 3rd anniversary as a public company. GRC targets production at its El Aguila Project, in the southern state of Oaxaca, Mexico, in 2009.
September 14th marks the 3rd anniversary of Gold Resource Corporation as a public company and a look back at its accomplishments is in order. Our IPO was completed at $1.00 per share so we are pleased to see the stock trading currently around $7.00 per share. We believe this creation of shareholder value is just the beginning and reflects our specific approach to the mining business and Gold Resource Corporation's focus on executing its business plan.
We have not wavered from our core values underlying our strategy to maximize shareholder value:
�
-- Decisions based on financial performance
-- Projects must have a capital payback of 1 year or less
-- Production at the earliest possible date
-- Build the company with cash flow
-- Limit shareholder dilution
-- Distribute a meaningful dividend if possible
We are pleased with the team of professionals we have and are assembling. Their competence, excitement and commitment to the project are reflected in the Company's performance and in its accomplishments.
We are in the final stages of completing the mill and are stockpiling ore from the open pit mine almost daily. The capital costs for the El Aguila Project and the time frame to production are certainly at the low end of the spectrum for the mining business yet we believe that the Company's return on that investment will be at the upper most realms for mining companies. In addition, our growth curve from a targeted 70,000 ounces of gold in the first 12 months building to around 200,000 ounces of precious metal gold equivalent in the third year is significant especially when coupled with the very low costs anticipated for this production.
Our El Aguila Project mill has been designed to be very flexible and have the ability to handle differing types of mineralization. Essentially two mills in one, it can handle oxide ore and produce dore bars for sale and/or handle sulfide ore with the ability to produce three different concentrates for sale. With a capital cost of approximately $30 million for this 400,000 tonne per year mill including main infrastructure such as roads, water and Phase 1 tailings dam, we anticipate capital payback in the first year of operation.
We have compiled a land position in the southern state of Oaxaca, Mexico of over 117 square miles centered on 5 high-grade properties, one of which is our El Aguila Project where we are building the mill. An important part of our approach to this mining business is the ability to have high-grade ore from any one of these properties trucked to the El Aguila mill. This has the potential of increasing the longevity of our Oaxaca operations with minimal additional capital.
The geologic model developing around the deposits discovered at our El Aguila Project is truly exciting. First, we have consistent high-grade ore that is of world class tenor. Secondly, the geologic setting and geologic history that is unfolding of nested calderas, serial doming and vent breccias certainly has the possibility of a world class geologic system. Coupling this with the fact that this system is young for Mexico's deposits, 10-15 million years old as opposed to 20-30 million years, the erosion of our ore forming system has been limited. Because of that lack of erosion we believe the bulk of our mineralizing system's treasures are still hidden. Our high-grade Arista vein system is called a "blind discovery" as it did not start until about 100 meters below the surface. Consequently, we are fortunate that it appears we have the complete mineralized system encompassing the tops of these intermediate epithermal deposits. Equally as important, we have yet to find the bottoms of these deposits. Potential exists from epithermal models that these deposits could have a mineralized horizon over 1000 meters. At Arista, the epithermal veins have a current mineralized horizon of approximately 500 meters so it is possible they could in fact double with additional depth of drilling. Lateral extensions of the vein mineralization continue as well. These are a very significant set of circumstances that bodes well for our exploration and ultimate operation.
Because one of our key precepts is to achieve cash flow at the earliest possible point, we see that cash flow can more quickly be achieved by utilizing our flotation circuit on the Aguila open pit gold ore first followed by transition to using the agitated leach circuit upon that circuit's completion. It is a testament to the excellent metallurgical quality of our open pit gold ore that we can achieve +90% recovery through either flotation producing a concentrate or through agitated leach producing a dore bar. The flotation section will be operable before the agitated leach section due to its simpler flowsheet and construction. Therefore we will begin making concentrates and selling them to a smelter until the agitated leach section is ready for the switch. Targeted costs to produce an ounce of gold using agitated leach are approximately $100 per ounce (with silver revenues used as byproduct credits). While initially producing and selling concentrates we have the added smelter costs which will add to that cost target until we switch over to the agitated leach. Even though it will cost a little more starting with flotation, we believe achieving cash flow at the earliest possible point makes good economic and business sense.
Management is committed to building Gold Resource Corporation into a mid-tier gold producer that has above average financial performance and with a bias to distribute a portion of cash flow back to the owners, possibly as much as 1/3 cash flow. We believe the management that created this company is also the management that can bring maximum value to shareholders. Only managements that can't bring a superior value to their shareholders are at risk of being taken over and probably for good reason. We are in this for the long haul with the view that generating cash flow from one mine is the catalyst to build the next.
We are pleased to be joined in our endeavors in a strategic alliance by Hochschild Mining, a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Our strategic partner has over forty years experience in the mining of precious metal epithermal vein deposits and currently operate five underground mines in the Americas. Hochschild have been instrumental in our equity funding as a shareholder. We have appreciated their help and advice and look forward to a continuing good relationship.
We believe we have an exceptional property position that can provide years of production and growth; we believe we have an exceptional high-grade geologic system that is only beginning to share with us what treasures it holds; and we believe we have a strategy well suited to maximize shareholder value.
At a time when world financial systems are uncertain, gold and gold mining stocks provide a prudent alternative to this financial uncertainty. At a time when the gold cycle may be on one of its historical upward trends, Gold Resource Corporation has a small group of very competent, very motivated people whose vision is to create a new mid-tier gold producer focused on cash flow and dividends. This is the time, we believe, to be a shareholder of Gold Resource Corporation.
We appreciate your confidence and support. Thank you.
�
William W. Reid
President
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Contact:
Contact:Jason ReidVP / Corporate Development303-320-7708
Gold Resource Corporation -- Update Letter to Shareholders
DENVER, CO--(Marketwire - 09/14/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) updates shareholders on its 3rd anniversary as a public company. GRC targets production at its El Aguila Project, in the southern state of Oaxaca, Mexico, in 2009.
September 14th marks the 3rd anniversary of Gold Resource Corporation as a public company and a look back at its accomplishments is in order. Our IPO was completed at $1.00 per share so we are pleased to see the stock trading currently around $7.00 per share. We believe this creation of shareholder value is just the beginning and reflects our specific approach to the mining business and Gold Resource Corporation's focus on executing its business plan.
We have not wavered from our core values underlying our strategy to maximize shareholder value:
�
-- Decisions based on financial performance
-- Projects must have a capital payback of 1 year or less
-- Production at the earliest possible date
-- Build the company with cash flow
-- Limit shareholder dilution
-- Distribute a meaningful dividend if possible
We are pleased with the team of professionals we have and are assembling. Their competence, excitement and commitment to the project are reflected in the Company's performance and in its accomplishments.
We are in the final stages of completing the mill and are stockpiling ore from the open pit mine almost daily. The capital costs for the El Aguila Project and the time frame to production are certainly at the low end of the spectrum for the mining business yet we believe that the Company's return on that investment will be at the upper most realms for mining companies. In addition, our growth curve from a targeted 70,000 ounces of gold in the first 12 months building to around 200,000 ounces of precious metal gold equivalent in the third year is significant especially when coupled with the very low costs anticipated for this production.
Our El Aguila Project mill has been designed to be very flexible and have the ability to handle differing types of mineralization. Essentially two mills in one, it can handle oxide ore and produce dore bars for sale and/or handle sulfide ore with the ability to produce three different concentrates for sale. With a capital cost of approximately $30 million for this 400,000 tonne per year mill including main infrastructure such as roads, water and Phase 1 tailings dam, we anticipate capital payback in the first year of operation.
We have compiled a land position in the southern state of Oaxaca, Mexico of over 117 square miles centered on 5 high-grade properties, one of which is our El Aguila Project where we are building the mill. An important part of our approach to this mining business is the ability to have high-grade ore from any one of these properties trucked to the El Aguila mill. This has the potential of increasing the longevity of our Oaxaca operations with minimal additional capital.
The geologic model developing around the deposits discovered at our El Aguila Project is truly exciting. First, we have consistent high-grade ore that is of world class tenor. Secondly, the geologic setting and geologic history that is unfolding of nested calderas, serial doming and vent breccias certainly has the possibility of a world class geologic system. Coupling this with the fact that this system is young for Mexico's deposits, 10-15 million years old as opposed to 20-30 million years, the erosion of our ore forming system has been limited. Because of that lack of erosion we believe the bulk of our mineralizing system's treasures are still hidden. Our high-grade Arista vein system is called a "blind discovery" as it did not start until about 100 meters below the surface. Consequently, we are fortunate that it appears we have the complete mineralized system encompassing the tops of these intermediate epithermal deposits. Equally as important, we have yet to find the bottoms of these deposits. Potential exists from epithermal models that these deposits could have a mineralized horizon over 1000 meters. At Arista, the epithermal veins have a current mineralized horizon of approximately 500 meters so it is possible they could in fact double with additional depth of drilling. Lateral extensions of the vein mineralization continue as well. These are a very significant set of circumstances that bodes well for our exploration and ultimate operation.
Because one of our key precepts is to achieve cash flow at the earliest possible point, we see that cash flow can more quickly be achieved by utilizing our flotation circuit on the Aguila open pit gold ore first followed by transition to using the agitated leach circuit upon that circuit's completion. It is a testament to the excellent metallurgical quality of our open pit gold ore that we can achieve +90% recovery through either flotation producing a concentrate or through agitated leach producing a dore bar. The flotation section will be operable before the agitated leach section due to its simpler flowsheet and construction. Therefore we will begin making concentrates and selling them to a smelter until the agitated leach section is ready for the switch. Targeted costs to produce an ounce of gold using agitated leach are approximately $100 per ounce (with silver revenues used as byproduct credits). While initially producing and selling concentrates we have the added smelter costs which will add to that cost target until we switch over to the agitated leach. Even though it will cost a little more starting with flotation, we believe achieving cash flow at the earliest possible point makes good economic and business sense.
Management is committed to building Gold Resource Corporation into a mid-tier gold producer that has above average financial performance and with a bias to distribute a portion of cash flow back to the owners, possibly as much as 1/3 cash flow. We believe the management that created this company is also the management that can bring maximum value to shareholders. Only managements that can't bring a superior value to their shareholders are at risk of being taken over and probably for good reason. We are in this for the long haul with the view that generating cash flow from one mine is the catalyst to build the next.
We are pleased to be joined in our endeavors in a strategic alliance by Hochschild Mining, a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Our strategic partner has over forty years experience in the mining of precious metal epithermal vein deposits and currently operate five underground mines in the Americas. Hochschild have been instrumental in our equity funding as a shareholder. We have appreciated their help and advice and look forward to a continuing good relationship.
We believe we have an exceptional property position that can provide years of production and growth; we believe we have an exceptional high-grade geologic system that is only beginning to share with us what treasures it holds; and we believe we have a strategy well suited to maximize shareholder value.
At a time when world financial systems are uncertain, gold and gold mining stocks provide a prudent alternative to this financial uncertainty. At a time when the gold cycle may be on one of its historical upward trends, Gold Resource Corporation has a small group of very competent, very motivated people whose vision is to create a new mid-tier gold producer focused on cash flow and dividends. This is the time, we believe, to be a shareholder of Gold Resource Corporation.
We appreciate your confidence and support. Thank you.
�
William W. Reid
President
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Contact:
Contact:Jason ReidVP / Corporate Development303-320-7708