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Palladon's last press release(3/3/10) included the following statement from the CEO.
"I was encouraged on my recent trip to China, where I met with numerous parties to discuss off-take agreements for iron ore and concentrate, as well as funding and possible investment in Palladon." Dale Gilbert.
Hopefully an announcement is forthcoming.
http://www.marketwire.com/press-release/TSX-V-Denies-Palladon-Ventures-Letter-Agreement-With-Luxor-Capital-Partners-LP-Palladon-TSX-VENTURE-PLL-1126182.htm
Rio, BHP to Push For 80 Pct Iron Ore Hike
By REUTERS
March 5, 2010 Filed at 4:29 a.m. ET
SYDNEY (Reuters) - Australia's Rio Tinto <RIO.AX> and BHP Billiton <BHP.AX><BLT.L> could hold out for -- and get -- an 80 percent increase in the price of iron ore, their second highest annual hike ever, to help fund expansion, if the mining giants should lose a battle to switch to spot pricing.
Analysts and fund managers told Reuters the world's second and third largest iron ore producers respectively were driving steel mills to accept increases of 80 percent as an alternative to adopting indexing for the 2010/11 shipping year.
Speaking on condition of anonymity because they did not want to appear to be siding with the mining houses amid price talks, the analysts said steel mills were warming to the idea of an 80 percent rise in contract prices next year.
"Given the way the spot price is running, 80 percent is starting to look cheap," an Australia-based mining analyst said. Spot iron ore on a landed China basis is trading around $133 a tonne <.IO62-CNI=SI>, double the 2009 free-on-board contract. An 80-percent boost would dramatically improve both firm's price to earnings ratios, boost credit ratings and ensure billions of dollars in added revenue to help pay for new mines planned in the Australian Pilbara iron belt.
"If the iron ore miners win only a 70 percent increase then, at its current share price, Rio Tinto would be trading on a P/E of only eight," a fund manager based in Singapore said.
Rio now trades at a forward PE of 13.8 and BHP trades at a PE of 18.1, Reuters data shows.
A Reuters poll this week showed analysts have increased expectations for annual prices to a median 40 percent versus 30 percent at the end of January.
But the poll includes several contributions that have not been updated or are under review. Excluding those numbers, the median forecast is for an increase of 65 percent.
ArcelorMittal <ISPA.AS>, the world's biggest steel maker, reportedly already is bracing for a hike of 70 to 80 percent for the shipping year starting April 1, a view increasingly in line with forecasts.
A Chinese media report this week that global miners are offering Chinese steel mills a 50 percent rise in iron ore prices has been dismissed by analysts as posturing.
Rio and BHP have become increasingly frustrated over an inability to persuade steel mills across Asia to drop the decades-old one-price-a-year system and agree to set prices quarterly, or even monthly or daily.
BHP Chief Executive Marius Kloppers has called for an end to annual pricing, saying the system is antiquated and out of touch with changing market conditions. Kloppers last month said the only number that should be followed was the spot price, which equated to a 90 percent hike at the time.
Rio and BHP are locked in negotiations with Chinese mills to reach some type of agreement for 2010/11. A 50 percent hike would send the price of iron ore fines to about $91.50 per tonne.
Investment bank Morgan Stanley has tipped iron ore prices to rise 60 percent. Japan's Nomura Holdings Inc says a 70 percent hike is likely.
But analysts remain divided over whether Rio and BHP will agree to price ore on an annual basis at all this year, given the run up in spot.
"This may be the year they draw a line in the sand and say, 'It's over, no more'," said James Wilson, a mining analyst for DJ Carmichael & Co.
Goldman Sachs JBWere analyst Neil Goodwill believes Rio, BHP and smaller rival Fortescue Metals Group <FMG.AX> may be missing out on a combined $20 billion in annual sales revenue by not selling iron ore at cash prices.
BHP has already earmarked investment of $1.93 billion (1.28 billion pounds) to spruce up rail and port facilities in the Pilbara, which will cover about half the cost of lifting annual output by 17 percent to 240 million tonnes.
Rio aims to boost production 6 percent to a record 230 million tonnes in 2010 and is considering a leap to 330 million within five years.
(Additional reporting by Bruce Hextall and Nicholas Trevethan)
(Editing by Clarence Fernandez).
http://www.nytimes.com/reuters/2010/03/05/business/business-uk-ironore.html
Rio, BHP to Push For 80 Pct Iron Ore Hike
By REUTERS
March 5, 2010 Filed at 4:29 a.m. ET
SYDNEY (Reuters) - Australia's Rio Tinto <RIO.AX> and BHP Billiton <BHP.AX><BLT.L> could hold out for -- and get -- an 80 percent increase in the price of iron ore, their second highest annual hike ever, to help fund expansion, if the mining giants should lose a battle to switch to spot pricing.
Analysts and fund managers told Reuters the world's second and third largest iron ore producers respectively were driving steel mills to accept increases of 80 percent as an alternative to adopting indexing for the 2010/11 shipping year.
Speaking on condition of anonymity because they did not want to appear to be siding with the mining houses amid price talks, the analysts said steel mills were warming to the idea of an 80 percent rise in contract prices next year.
"Given the way the spot price is running, 80 percent is starting to look cheap," an Australia-based mining analyst said. Spot iron ore on a landed China basis is trading around $133 a tonne <.IO62-CNI=SI>, double the 2009 free-on-board contract. An 80-percent boost would dramatically improve both firm's price to earnings ratios, boost credit ratings and ensure billions of dollars in added revenue to help pay for new mines planned in the Australian Pilbara iron belt.
"If the iron ore miners win only a 70 percent increase then, at its current share price, Rio Tinto would be trading on a P/E of only eight," a fund manager based in Singapore said.
Rio now trades at a forward PE of 13.8 and BHP trades at a PE of 18.1, Reuters data shows.
A Reuters poll this week showed analysts have increased expectations for annual prices to a median 40 percent versus 30 percent at the end of January.
But the poll includes several contributions that have not been updated or are under review. Excluding those numbers, the median forecast is for an increase of 65 percent.
ArcelorMittal <ISPA.AS>, the world's biggest steel maker, reportedly already is bracing for a hike of 70 to 80 percent for the shipping year starting April 1, a view increasingly in line with forecasts.
A Chinese media report this week that global miners are offering Chinese steel mills a 50 percent rise in iron ore prices has been dismissed by analysts as posturing.
Rio and BHP have become increasingly frustrated over an inability to persuade steel mills across Asia to drop the decades-old one-price-a-year system and agree to set prices quarterly, or even monthly or daily.
BHP Chief Executive Marius Kloppers has called for an end to annual pricing, saying the system is antiquated and out of touch with changing market conditions. Kloppers last month said the only number that should be followed was the spot price, which equated to a 90 percent hike at the time.
Rio and BHP are locked in negotiations with Chinese mills to reach some type of agreement for 2010/11. A 50 percent hike would send the price of iron ore fines to about $91.50 per tonne.
Investment bank Morgan Stanley has tipped iron ore prices to rise 60 percent. Japan's Nomura Holdings Inc says a 70 percent hike is likely.
But analysts remain divided over whether Rio and BHP will agree to price ore on an annual basis at all this year, given the run up in spot.
"This may be the year they draw a line in the sand and say, 'It's over, no more'," said James Wilson, a mining analyst for DJ Carmichael & Co.
Goldman Sachs JBWere analyst Neil Goodwill believes Rio, BHP and smaller rival Fortescue Metals Group <FMG.AX> may be missing out on a combined $20 billion in annual sales revenue by not selling iron ore at cash prices.
BHP has already earmarked investment of $1.93 billion (1.28 billion pounds) to spruce up rail and port facilities in the Pilbara, which will cover about half the cost of lifting annual output by 17 percent to 240 million tonnes.
Rio aims to boost production 6 percent to a record 230 million tonnes in 2010 and is considering a leap to 330 million within five years.
(Additional reporting by Bruce Hextall and Nicholas Trevethan)
(Editing by Clarence Fernandez).
http://www.nytimes.com/reuters/2010/03/05/business/business-uk-ironore.html
From the last press release, "I was encouraged on my recent trip to China, where I met with numerous parties to discuss off-take agreements for iron ore and concentrate, as well as funding and possible investment in Palladon." Dale Gilbert.
Hopefully an announcement is forthcoming.
http://www.marketwire.com/press-release/TSX-V-Denies-Palladon-Ventures-Letter-Agreement-With-Luxor-Capital-Partners-LP-Palladon-TSX-VENTURE-PLL-1126182.htm
Starting to bust a move. Getting discovered. Glad you started a board on this.
Bids building on this in Canada. CYP.V
B2Gold Corp. Corporate Update
Wednesday March 3, 2010, 10:46 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 03/03/10) - B2Gold Corp. (TSX:BTO - News) ("B2Gold" or the "Company"), announces the following update in the affairs of the Company, including:
-- Orosi (La Libertad) Mine, Nicaragua
- Mill ramp up ahead of schedule
- Exploration drilling and trenching program underway
-- Limon Mine, Nicaragua
- Exploration underway
-- Calibre Mining Corp. and Radius Gold Inc. joint ventures, Nicaragua
- Exploration programs underway
-- Gold production for 2010 projected at 120,000 to 130,000 ounces
- No project debt, no gold hedging
-- Gramalote project update, Colombia
-- Kupol East and West Licenses, Far East Russia update
La Libertad Mine
(100% B2Gold)
The Orosi Mine in Nicaragua has been renamed La Libertad Mine. The mine was originally called La Libertad after the nearby town, and was changed to Orosi in 2007. Renaming the mine, La Libertad honours the history of mining in the area and reflects the importance of the mine to the local community. The Company and the mine contractor currently employ approximately 600 Nicaraguans at La Libertad, and B2Gold will inject approximately US$32 million into the local economy in 2010.
The La Libertad open pit mine recommenced gold and silver production in the first quarter of 2010, following the construction of a SAG and ball mill grinding circuit, designed to process 3,500 tonnes of ore per day, as well as carbon in pulp recovery tanks, and a tailings impoundment. B2Gold's capital budget for La Libertad construction was approximately US$62 million. In 2010, a second ball mill and additional leach tanks will be added to the process facilities to increase production to 5,500 tonnes of ore per day.
During the month of February the new mill has exceeded projections having processed an average of approximately 3,900 tonnes of ore per day.
The second ball mill, fabricated in China, is currently being transported to the La Libertad mine and is scheduled to arrive on site by the end of the first quarter 2010. The foundations for the new ball mill have been completed and work is underway on fabricating and installing the process tanks. The Company anticipates the new ball mill will be installed and commissioned by the end of the second quarter 2010, increasing throughput to approximately 5,500 tonnes per day.
La Libertad mine commenced operating as a heap leach mine in 1996. Operations were suspended in the first quarter of 2007 after a re-evaluation of the project indicated that gold recoveries could be improved from approximately 40% from heap leaching to over 90% using a conventional milling operation. The La Libertad Mine currently has a minimum seven year mine life and is expected to produce approximately 80,000 to 90,000 ounces of gold annually at an estimated cash cost of approximately $500 per ounce. The La Libertad Mine has excellent exploration targets adjacent to the mine over a 20 kilometre belt (see Exploration section below).
Limon Mine
(B2Gold 95%)
The Limon Mine concession includes numerous epithermal gold-quartz veins and has been in operation as an underground and open pit gold mine since 1941. To date the Limon Mine has produced approximately three million ounces of gold. The current operation is a 1,000 tonnes per day underground and open pit mine. The Limon Mine currently has a mine life of 3.5 years with projected average annual production of approximately 40,000 ounces of gold at an estimated cash cost of approximately $550 per ounce. B2Gold's technical team believes there is excellent potential to increase the Limon mine life and discover additional veins (see Exploration section below).
Gold production continues to improve at the Limon underground and open pit mine after a poor year of production in 2009 caused by a number of illegal union strikes. The Company has worked with the local unions and the government to ensure the Company and the unions honour the current binding collective agreement.
The Company plans to expend US$6.6 million for capital projects at the Limon mine to continue to improve the mine performance.
B2Gold is projected to produce approximately 120,000 to 130,000 of gold in 2010 from its two mines in Nicaragua, La Libertad and Limon.
Exploration
La Libertad Property
A 12,000 metre (US$3 million) diamond drill program is scheduled to commence in March 2010 at La Libertad property. The drilling will follow up historic high grade drill results below the current mine pits with good potential to increase the mines reserve and resource base. In addition, the drilling will test some of the numerous regional targets identified along the 20 kilometre belt from historic work and the 2009 exploration program. Two rigs will be active on this program during the year.
The 6.2 kilometre long Jabali Vein system, located nine kilometres east of the La Libertad mine has been trenched along two kilometres of the vein's strike length. Exploration work targeted possible stockwork mineralization surrounding previous historical vein mining and results to date indicate a wide (up to 50 metres) zone of low grade gold mineralization. This has confirmed the potential for bulk minable zones and drill testing of these targets will commence in March 2010.
El Limon Property
The Company has a total exploration and drilling budget for the Limon property of US$3.8 million for 2010.
A surface exploration program comprised of geophysics, soil geochemistry and geological mapping is currently underway with a trenching program set to start once permits are received. A 7,000 metre drill program is scheduled to restart in mid March with two drills targeting a combination of exploration and ore definition targets.
Additionally, the Santa Pancha deep area (between shafts #2 and #8) was drilled by Central Sun Mining Inc. in 2008 and outlined an inferred resource of 165,000 ounces of gold (1.03 million tonnes at 4.99 g/t gold at a 3.0 g/t gold cut off). In order to upgrade this inferred resource to indicated category, a 7,800 metre drill program will be completed during 2010.
A definition drill program consisting of 26 holes totaling 2,522.7 metres was conducted in 2009 and early 2010 in the Santa Pancha area of the El Limon Mine. Once full results are received from this program the areas will be studied for incorporation into the Santa Pancha mine plan.
Radius Gold Inc. Joint Venture, Nicaragua
(B2Gold option to earn 60%)
B2Gold is aggressively exploring the Trebol property located in northeastern Nicaragua as part of the Company's joint venture with Radius Gold. The 2010 exploration budget is approximately US$1.8 million. Work to date, which is ongoing has consisted of hand dug trenches and geochemical soil sampling over the 25 kilometre strike length of the system. A 3,000 metre diamond drilling program is scheduled for the second half of the year.
At the El Pavon (Natividad) project, located 200 kilometres by road north of the Limon mine, a detailed trenching program is currently underway to define the continuity of high grade, near surface veining and associated stockwork mineralization that could potentially be exploited in two shallow open pits. Previous drilling at El Pavon contained up to 16.8 metres of 10.3 g/t gold in hole PADH05 and 9.89 metres of 22.2 g/t gold in hole NAT05-013.
Calibre Mining Corp. Joint Venture, Nicaragua
(B2Gold option to earn up to 65% in stages)
Work has progressed well at the 71,000 hectare Borosi project in North Eastern Nicaragua. Calibre Mining has completed 1:10,000 scale mapping over a 65 square kilometre area, 58 line-kilometres of soil sampling and 288 metres of hand dug trenching. Initial results from this work have outlined three new gold-silver epithermal targets and a gold-copper porphyry/skarn target. A 5,000 metre diamond drill program testing these initial targets will begin in March. The remainder of the 2010 exploration budget is estimated at CDN$2.0 million and consists of an initial 5,000 metre diamond drilling program and further target delineation work over high priority targets in the Eastern Epithermal, Rosita and Bonanza camps. B2Gold has the option to earn up to 51% by spending $8 million on the project by July 1, 2012. The first year of the agreement calls for CDN$2.5 million expenditures and is managed by Calibre Mining Corp.
Gramalote Property, Colombia
(B2Gold 51% / AngloGold Ashanti Limited ("AngloGold") 49%)
In the first quarter of 2009, the Company completed and published a National Instrument 43-101 compliant inferred mineral resource estimate for the Gramalote Ridge Zone of 74.375 million tonnes grading 1.00 g/t gold for a total of 2.39 million troy ounces of gold at a 0.5 g/t cut-off and within a $1,000 per ounce gold optimized Whittle pit. The Gramalote Ridge zone remains open to the east and west.
B2Gold is currently in discussions with AngloGold regarding further exploration of the Gramalote property. The Company expects exploration drilling to continue on the Gramalote property in 2010.
Kupol East and West Licenses, Far East Russia
(B2Gold has the right to earn a 37.5% interest from Kinross Gold)
B2Gold plans to commence a 4,200 metre diamond drilling program in March 2010 on the Kupol West property's Moroshka west zone to follow up on results from the Moroshka basin announced on January 19, 2010. These previously announced results confirmed the presence of a northerly trending system of gold bearing quartz veins, which was a follow up to the drill results and new vein discovery announced last year at the Moroshka basin, 4 km east of the Kupol mine.
An additional 1,200 metres of diamond drilling is planned on the Kupol East license on the Sinter / Tokai target located 14 kilometres east of the Moroshka basin. The total 2010 exploration budget on the Kupol West and East licenses is estimated at US$3.8 million.
In addition to its near term production growth profile, B2Gold's corporate objective is to build further shareholder value through the exploration and development of existing projects and additional accretive acquisitions, capitalizing on the extensive experience and relationships that management has developed over the past 25 years. B2Gold trades on the Toronto Stock Exchange under the symbol "BTO".
Tom Garagan, Senior Vice President of Exploration for B2Gold Corp. is the Qualified Person for these exploration projects as defined by National Instrument 43-101.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
For more information on B2Gold please visit the Company web site at www.b2gold.com.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contact:
Contacts:B2Gold Corp.Ian MacLeanVice President, Investor Relations604-681-8371B2Gold Corp.Kerry SuffolkManager, Investor Relations604-681-8371www.b2gold.com
http://finance.yahoo.com/news/B2Gold-Corp-Corporate-iw-2830379882.html?x=0&.v=1
Lifting off again. PP closed, well funded, production underway.
China raises iron ore imports from small supplying countries as India ore proportion fell
Published: 26 Jan 2010 22:54:08 PST
Jan. 27 MetalBiz--Although Australia and Brazil ore is still China's main iron ore sources, as the demand is increasing and China has intention to seek for many channels of import modes, China increase the iron ore imports from other countries. According to analysis of 2009 data, the proportion of iron ore from South Africa, Ukraine, Russia and Canada accounting for China's iron ore imports increase.
In 2009, China's iron ore demand created a fresh highest, it is difficult for China to kill off the price difference with Rio Tinto, BHP Billiton and Vale. Though China is largest iron ore importer, facing three big iron ore giants holding 70% of global iron ore, China is passive in the iron ore price negotiation. Hence, many specialists suggest that China should expand the more channels to import, turning to other countries except for Brazil and Australia.
As a matter of fact, from 2009 data, the proportion of iron ore imports from Australia and Brazil accounting for the total imports is same as 2008, but small iron ore supplying countries play the more role in satisfying China's iron ore demand. Iron ore imports from South Africa takes up 5.44% from 2008's 3.27%. In 2008 and 2009 years, South Africa was China's fourth-largest iron ore supplying country.
On the other hand, the proportion of India iron ore obviously decreased. Its proportion slipped to 17.1% from 20.5% in 2008.
Insiders stated that with the continuous increase of the future demand, the proportion of China's iron ore imports from small supplying countries will consecutively go up. But the absolute iron ore quantity of these countries is still small, it is difficult for them to contend against three big miners, so the current seller market is hard to change.
http://news.alibaba.com/article/detail/metalworking/100239701-1-china-raises-iron-ore-imports.html
Palladon Ventures Announces Board and Management Changes
.Press Release Source: Palladon Ventures Ltd. On Monday January 25, 2010, 6:32 pm EST
SALT LAKE CITY, UTAH--(Marketwire - 01/25/10) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX-V:PLL - News)(Frankfurt: PV-1) announces the following changes to its corporate structure:
- Dale S. Gilbert has been appointed President and Chief Executive Officer, and has also been appointed to the board of directors.
- Steve L. Gilbert has been appointed to the board of directors.
- John W. Cutler has been appointed Chief Operating Officer.
- Leonard Sojka has resigned from the board of directors.
Steve Gilbert is the founder of Gilbert Development Corporation, a large regional construction company headquartered in Hurricane, Utah. Under Steve's leadership, Gilbert Development expanded into a variety of major construction activities, including housing subdivisions, dams, highways and open-pit mines.
Dale Gilbert worked his way up the family business, and is currently the President and Chief Executive Officer of Gilbert Development Corporation. He oversees all operations of the General Engineering/Mining parent company Gilbert Development Corporation, as well its manufacturing division Crusher Rental and Sales, which is a leading manufacturer of mining and construction equipment.
Dale and Steve have been involved with the Iron Mountain Project since Gilbert Development Corporation began mining operations there in the late 80's under US steel and later Geneva Steel. Since being awarded the current mining contract with Palladon Ventures, Dale's expertise has helped Palladon move the project forward on a number of levels.
COO John Cutler stated: "We are very pleased to have Steve and Dale formally join our company. They bring a wealth of knowledge about the project, and have already worked very hard to advance it. Dale's appointment as CEO of Palladon Ventures recognizes his interest in and value to the project. In addition to his industry contacts and broad industry experience, Dale brings an intimate knowledge of the Iron Mountain Project itself. We look forward to Dale and Steve making significant contributions on a number of corporate initiatives."
Palladon CEO Dale Gilbert stated: "I am extremely excited and optimistic about this opportunity to help advance the Iron Mountain Project. I appreciate the confidence placed in me by the Palladon Board and management team, and I look forward to working closely with them.
The Gilbert family has a long and well-established operating history with the Iron Mountain Project. We fully understand the mining and logistical aspects of the business, and will bring all of our resources to bear in an effort to resume shipment of iron ore as soon as possible. The market environment for iron ore has improved significantly. As such, we will pursue near term options to profitably ship run-of-mine ore. We will also continue to efforts develop the project for the eventual shipment of iron concentrate.
I understand the near-term challenges facing the company. However I have a vested interest in achieving a successful outcome and I am optimistic that we will quickly pursue the best path for the Company. We look forward to updating shareholders on a regular basis, as we pursue near-term shipping scenarios and as we evaluate options to refinance the outstanding debt."
On Behalf of the Board of Directors,
Dale S. Gilbert, Chief Executive Officer
About Palladon
Palladon Ventures Ltd. is a junior resource company focused on advancing the Iron Mountain Project, an iron ore mine located west of Cedar City, Utah.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, which include the Company continuing to work on a plan to repay its Luxor debt and to finance current operations and further development of the Iron Mountain Project. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration and production, (3) a decreased demand for minerals, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labor problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, (8) other factors beyond the Company's control; and (9) the risk that the Company will not be able to raise funds due to Luxor Capital Group. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:Palladon Ventures Ltd.Dale S. GilbertPresident & CEO801.521.5252801.521.5454 (FAX)info@palladonventures.comwww.palladonventures.com
http://finance.yahoo.com/news/Palladon-Ventures-Announces-iw-2967057066.html?x=0&.v=1
Palladon Ventures Announces Board and Management Changes
.Press Release Source: Palladon Ventures Ltd. On Monday January 25, 2010, 6:32 pm EST
SALT LAKE CITY, UTAH--(Marketwire - 01/25/10) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX-V:PLL - News)(Frankfurt: PV-1) announces the following changes to its corporate structure:
- Dale S. Gilbert has been appointed President and Chief Executive Officer, and has also been appointed to the board of directors.
- Steve L. Gilbert has been appointed to the board of directors.
- John W. Cutler has been appointed Chief Operating Officer.
- Leonard Sojka has resigned from the board of directors.
Steve Gilbert is the founder of Gilbert Development Corporation, a large regional construction company headquartered in Hurricane, Utah. Under Steve's leadership, Gilbert Development expanded into a variety of major construction activities, including housing subdivisions, dams, highways and open-pit mines.
Dale Gilbert worked his way up the family business, and is currently the President and Chief Executive Officer of Gilbert Development Corporation. He oversees all operations of the General Engineering/Mining parent company Gilbert Development Corporation, as well its manufacturing division Crusher Rental and Sales, which is a leading manufacturer of mining and construction equipment.
Dale and Steve have been involved with the Iron Mountain Project since Gilbert Development Corporation began mining operations there in the late 80's under US steel and later Geneva Steel. Since being awarded the current mining contract with Palladon Ventures, Dale's expertise has helped Palladon move the project forward on a number of levels.
COO John Cutler stated: "We are very pleased to have Steve and Dale formally join our company. They bring a wealth of knowledge about the project, and have already worked very hard to advance it. Dale's appointment as CEO of Palladon Ventures recognizes his interest in and value to the project. In addition to his industry contacts and broad industry experience, Dale brings an intimate knowledge of the Iron Mountain Project itself. We look forward to Dale and Steve making significant contributions on a number of corporate initiatives."
Palladon CEO Dale Gilbert stated: "I am extremely excited and optimistic about this opportunity to help advance the Iron Mountain Project. I appreciate the confidence placed in me by the Palladon Board and management team, and I look forward to working closely with them.
The Gilbert family has a long and well-established operating history with the Iron Mountain Project. We fully understand the mining and logistical aspects of the business, and will bring all of our resources to bear in an effort to resume shipment of iron ore as soon as possible. The market environment for iron ore has improved significantly. As such, we will pursue near term options to profitably ship run-of-mine ore. We will also continue to efforts develop the project for the eventual shipment of iron concentrate.
I understand the near-term challenges facing the company. However I have a vested interest in achieving a successful outcome and I am optimistic that we will quickly pursue the best path for the Company. We look forward to updating shareholders on a regular basis, as we pursue near-term shipping scenarios and as we evaluate options to refinance the outstanding debt."
On Behalf of the Board of Directors,
Dale S. Gilbert, Chief Executive Officer
About Palladon
Palladon Ventures Ltd. is a junior resource company focused on advancing the Iron Mountain Project, an iron ore mine located west of Cedar City, Utah.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, which include the Company continuing to work on a plan to repay its Luxor debt and to finance current operations and further development of the Iron Mountain Project. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration and production, (3) a decreased demand for minerals, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labor problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, (8) other factors beyond the Company's control; and (9) the risk that the Company will not be able to raise funds due to Luxor Capital Group. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:Palladon Ventures Ltd.Dale S. GilbertPresident & CEO801.521.5252801.521.5454 (FAX)info@palladonventures.comwww.palladonventures.com
http://finance.yahoo.com/news/Palladon-Ventures-Announces-iw-2967057066.html?x=0&.v=1
B2Gold Announces Exploration Results Near the Orosi Mine, Nicaragua
.Press Release Source: B2Gold Corp. On Thursday January 21, 2010, 6:51 pm EST
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 01/21/10) - B2Gold Corp. (TSX:BTO - News) ("B2Gold" or the "Company"), is pleased to announce assay results from the Jabali vein trenching program located nine kilometers east of the 100% owned, Orosi Mine in Nicaragua. The Orosi Mine commenced production in January 2010.
The Jabali vein system is at the east end of a 20 kilometre long belt of gold bearing veins on the Orosi property. Jabali is an east-west trending, low sulphidation epithermal quartz vein system which was mined for its high grade ore from 1862 to 1956. It has been traced over a distance of 6.2 kilometres. 11 trenches testing the remaining quartz vein stockwork system at surface have been completed over two areas along two kilometres of the strike of the system. Highlights from the trenching include trench JBTR09-05 which intersected 13.4 metres grading 3.90 g/t gold and trench JBTR09-11 which intersected 15.60 metres grading 2.78 g/t gold. Trench JBTR09-10 cut 18 metres of 11.04 g/t gold within historical mine dump colluvium (derived from local historic mining). Additional trenching to test the remainder of the strike length is ongoing.
The western portion of the Jabali vein system has been tested by nine trenches (JBTR09-01 to JBTR09-09) over a strike length of 530 metres. The average width of the vein and mineralized stockwork is 20 to 45 metres. The western portion of the Jabali vein system is open on strike in both directions.
In addition, two trenches have been completed on the central portion of the Jabali vein system located 1.5 kilometres east of the western trenches. The two trenches have tested a strike length of 125 metres with additional trenches underway. The average width of the central portion of the Jabali vein system is 13 metres and the zone is open in both directions along the east-west strike and to the north.
Complete assays are available for the first ten trenches and partial results are available for trench JBTR09-11. Highlights of the trenching results are as follows:
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g/t g/t
TRENCH From To Metres Gold Silver Comments
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JBTR09-01 10.20 21.90 11.70 3.16 7.26 Quartz vein & stockwork
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JBTR09-02-A 6.40 10.50 4.10 2.52 10.57 Quartz vein & stockwork
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JBTR09-02-A 15.50 18.50 3.00 1.74 30.42 Quartz vein & stockwork
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JBTR09-03-B 10.50 12.40 1.90 4.85 17.70 Mine fill
---------------------------------------------------------------------------
JBTR09-04 1.00 22.35 21.35 2.47 39.74 Quartz vein & stockwork with
33% mine fill
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JBTR09-05 3.50 5.50 2.00 46.70 73.10 Mine dump colluvium
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JBTR09-05 40.40 53.80 13.40 3.90 25.09 Quartz vein stockwork with 7%
mine fill
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JBTR09-05 53.80 62.30 8.60 1.18 22.62 Mine dump colluvium
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JBTR09-06 0.00 5.00 5.00 2.18 14.23 Mine dump colluvium
---------------------------------------------------------------------------
JBTR09-06 21.85 32.10 10.25 1.83 32.17 Quartz vein & stockwork
---------------------------------------------------------------------------
JBTR09-07 15.70 27.00 11.30 1.73 38.61 Mine dump colluvium 72%,
quartz vein 28%
---------------------------------------------------------------------------
JBTR09-08 2.30 16.80 14.50 1.45 31.63 Quartz vein & stockwork with
10% mine fill
---------------------------------------------------------------------------
JBTR09-10 0.00 18.00 18.00 11.04 6.78 Mine dump colluvium
---------------------------------------------------------------------------
JBTR09-10 32.50 40.50 8.00 2.41 2.71 Quartz vein & stockwork
---------------------------------------------------------------------------
JBTR09-11 0.00 6.00 6.00 2.52 4.97 Mine dump colluvium, assays
pending to south
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JBTR09-11 17.35 30.75 13.40 3.54 7.76 Mine dump colluvium, assays
pending to north
---------------------------------------------------------------------------
JBTR09-11 30.75 46.35 15.60 2.78 8.10 Quartz vein & stockwork with
30% mine fill
---------------------------------------------------------------------------
In 2010, the Company plans to develop and test drill targets along the Jabali vein system as well as other high priority veins surrounding the Orosi Mine. The company believes the Jabali area has the potential for both high grade underground, and low grade open pittable targets. Most of the near surface high grade vein material exposed in trenching was historically partially mined, but remain open to depth. In addition the trenching indicates that the lower grade veins and stockwork zones are un-mined.
The trenching program at the Jabali vein deposit is reviewed and the results approved by Tom Garagan, B2Gold's Qualified Person under National Instrument 43-101. The Jabali trenching program utilizes extensive QA/QC (quality assurance and quality control) protocols for assaying and sample handling that consist of the systematic insertion of blanks, standards and duplicates as well as using a secondary laboratory for regular check assaying. The trenches are dug with an excavator and continuous panel samples are collected from the walls. The samples are placed in sealed bags and brought to the Orosi Mine preparation laboratory where they are dried, crushed and pulverized. Pulp samples are then shipped directly to ALS Chemex Labs in Vancouver, British Columbia, Canada for gold and silver fire assay. Check assays are sent out on a quarterly basis to Acme Laboratories in Vancouver.
About B2Gold
B2Gold Corp. is a Vancouver based gold producer with two mines in Nicaragua and a strong portfolio of development and exploration assets in Nicaragua, Colombia, Costa Rica and Far East Russia.
In addition to its near term production growth profile, B2Gold's corporate objective is to build further shareholder value through the exploration and development of existing projects and additional accretive acquisitions, capitalizing on the extensive experience and relationships that management has developed over the past 25 years. B2Gold trades on the Toronto Stock Exchange under the symbol "BTO".
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contact:
Contacts:B2Gold Corp.Ian MacLeanVice-President, Investor Relations604-681-8371B2Gold Corp.Kerry SuffolkManager, Investor Relations604-681-8371www.b2gold.com
http://finance.yahoo.com/news/B2Gold-Announces-Exploration-iw-4152575523.html?x=0&.v=1
Kupol West Drill Results Confirm the Presence of Multiple Gold Bearing Veins in the Moroshka Basin
Press Release Source: B2Gold Corp. On Tuesday January 19, 2010, 9:35 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 01/19/10) - B2Gold Corp. (TSX:BTO - News) ("B2Gold" or the "Company"), is pleased to announce the results from the fall 2009 drill program on the Kupol West license located in Far East Russia. The recently completed program, which has confirmed the presence of a northerly trending system of gold bearing quartz veins, is a follow up to the drill results and new vein discovery announced last year at the Moroshka basin, 4 kilometres ("km") east of the Kupol mine. The previously announced hole (KW09-030), consisted of 16.96 grams per tonne ("g/t") gold and 258.09 g/t silver over 1.5 metres ("m"), followed by a second vein containing 14.92 g/t gold and 115.68 g/t silver over 1.1 m.
Seven holes, totaling 2,120 m, were drilled along five east-west oriented sections spaced 50 m apart. These holes encountered a series of steeply east dipping epithermal quartz veins over a width of 140 m within a broad zone of sheeted quartz veinlets and alteration in basaltic andesite flows and andesite agglomerates. The veins were intersected over a north-south distance of 190 m at 45 m to 220 m below surface.
The vein system remains open to the north and south. The area tested lies within a small portion of an arsenic-gold and mercury-antimony geochemical anomaly that continues north for 1.3 km, and south for 0.3 km from the current drilling. Previous shallow drilling, 1.1 km to the north encountered kaolinite, smectite and localized chalcedony flooding typical of high level epithermal alteration that indicates the vein system may continue north but at a deeper level. Similar high level alteration mapped 0.8 km to the northwest and adularia-sericite alteration mapped 1 km to the northeast suggests potential for other vein systems in the Moroshka basin.
The veins encountered comprise mottled to banded quartz containing pyrite, marcasite, silver sulphosalts, sphalerite, pyrargyrite and acanthite. The vein mineralogy and the silver to gold ratios are similar to those at the adjacent Kupol deposit. Results from all seven holes are as follows:
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From To Length (1) Gold Silver
Hole # (m) (m) (m) (g/t) (g/t)
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KW09-032 No significant results
--------------------------------------------------------------------
KW09-033 251.8 252.6 0.8 6.59 287.06
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KW09-034 54.9 55.8 0.9 8.94 53.66
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KW09-034 179.2 179.5 0.3 9.24 547.36
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KW09-035 No significant results
--------------------------------------------------------------------
KW09-036 54.7 57.2 2.5 13.63 101.13
--------------------------------------------------------------------
KW09-036 79.4 79.7 0.3 41.36 25.24
--------------------------------------------------------------------
KW09-036 226.0 226.7 0.7 9.08 627.72
--------------------------------------------------------------------
KW09-036 272.0 272.7 0.7 13.16 384.44
--------------------------------------------------------------------
KW09-036 276.7 277.6 0.9 14.90 227.30
--------------------------------------------------------------------
KW09-037 246.3 247.1 0.8 113.70 201.70
--------------------------------------------------------------------
KW09-037 258.5 262.5 4.0 12.71 53.51
--------------------------------------------------------------------
KW09-038 303.4 305.1 1.7 5.98 58.65
--------------------------------------------------------------------
(1) True thicknesses of these drill intercepts are not known at this
time
B2Gold plans to commence a 4,200 m diamond drilling program in March 2010 to follow up on these results from the Moroshka basin. An additional 1,200 m of diamond drilling is planned on the Kupol East license on the Sinter / Tokai target located 14 km east of the Moroshka basin.
B2Gold has the right to acquire one half of Kinross Gold Corporation's ("Kinross"), approximately 75%, indirect interest in the Kupol East and West licenses in Chukotka, Russia. These licenses cover an area of 408.1 square km surrounding and adjacent to the high-grade Kupol gold and silver mine that was being developed by Bema Gold Corporation at the time of the Kinross takeover. The Kupol mine commenced production in May of 2008. B2Gold is the operator of the exploration conducted on the Kupol East and West licenses.
The drilling program at the Kupol West and Kupol East properties is reviewed and the results approved by Tom Garagan, B2Gold's Qualified Person under National Instrument 43-101. The exploration program utilizes an extensive QAQC (quality assurance and quality control) protocol for assaying and core sample handling that consists of the systematic insertion of blanks, standards and duplicates as well as using a secondary laboratory for regular check assaying. Core samples are cut with a diamond saw with two thirds of the core placed in sealed bags and delivered directly to the Kinross Kupol mine laboratory for sample preparation and assaying for gold and silver by fire assay with gravimetric finish. External laboratory check assaying for the program is performed by ISO 17025 and Russian GOST certified Stewart Group Geo Analytics in Moscow, Russia.
About B2Gold
B2Gold Corp. is a Vancouver based gold producer with two mines in Nicaragua and a strong portfolio of development and exploration assets in Nicaragua, Colombia, Costa Rica and Far East Russia.
In addition to its near term production growth profile, B2Gold's corporate objective is to build further shareholder value through the exploration and development of existing projects and additional accretive acquisitions, capitalizing on the extensive experience and relationships that management has developed over the past 25 years. B2Gold trades on the Toronto Stock Exchange under the symbol "BTO".
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contact:
Contacts:B2Gold Corp.Ian MacLeanVice President, Investor Relations604-681-8371B2Gold Corp.Kerry SuffolkManager, Investor Relations604-681-8371www.b2gold.com
http://finance.yahoo.com/news/B2Gold-Corp-Kupol-West-Drill-iw-912110331.html?x=0&.v=1
CEO interview, link.
http://watch.bnn.ca/#clip253435
Haywood names Detour Gold, Capstone Mining, B2Gold as top picks this year
Haywood Securities analysts see many positives that should benefit gold and silver this year, and forecast a modest recovery in global base metals demand.
Author: Dorothy Kosich
Posted: Thursday , 07 Jan 2010
RENO, NV -
Haywood Securities top metals and mining picks this year are Detour Gold (TSX: DGC), Alamos Gold (TSX: AGI), Capstone Mining (TSX: CS), Farallon Mining (TSX: FAN), B2Gold (TSX: BTO), and Bear Creek Mining (TSX: BCM).
Metals and mining analysts Stefan Ioannou, Geordie Mark, Kerry Smith and Chris Thompson said Wednesday, "Gold continues to perform well, and we see many positives that should be supportive over the course of 2010."
"Additional concerns over the pace of a global economic recovery should also provide strong investor interest for both gold ETFs and gold equities," they advised. Haywood's estimated 2010 gold price is currently US$1,000 per ounce with spot gold currently around US$1,125 per ounce.
The analysts also forecast a silver price of US$15.25 for this year versus a spot price of $17.50/oz.
BASE METALS
In their analysis, Haywood said economic indicators suggest a modest recovery in global base metals demand which should help support base metal prices going forward.
Copper
In the short term the analysts expect copper prices will decline from their current levels "as a result of relatively modest overall fundamental demand growth coupled with high inventory levels-we note our 2010E average copper price forecast of US$2.75 per pound, London Metal Exchange inventory levels increased considerably during 2009, closing the year at approximately half a million tonnes-the highest levels since April."
"Over the longer term, we maintain our bullish outlook relative to historical levels and believe that U.S.-driven sentiment for soft demand will be overshadowed by global growth over the next two to three years, specifically in China, Asia, and India," they said.
"We are forecasting a decline in copper prices after 2011, reaching our long-term estimate of US$2.25 per pound in +2013 as new mine production comes on line," they added. "However, we continue to believe future mine production will depend largely on lower grade mines, which will redefine the industry's cost regime."
Zinc
Haywood has forecast an average zinc price of US$1 per pound this year, followed by an average zinc price of $1.15 in 2011. ‘We are forecasting that zinc prices will decline after 2011, reaching our long-term estimate of US
.95 per pound in +2013," the analysts predicted. "Zinc prices could be volatile over the medium term, as new supply is not evident, and older mines are closed or mine lower grades."
Lead
The analysts estimate that lead will average US$1/lb this year and increase to $1.15/lb in 2011, then decline to a long-term estimate of 95-cents/lb in +2013. "The International Lead and Zinc Study Group forecasts lead consumption to increase by 3% in 2010," they said. "Additionally, Brunswick, one of the largest lead/zinc mines in the world, will close by the end of 2010 and provides further support for our positive outlook for both lead and zinc."
Nickel
"Reduced mine supply from production cutbacks announced last year should lead to a tight nickel market, and we anticipate nickel prices will increase to US$9 per pound in 2011, declining to our long-term estimate of US$7.50 per pound in +2013," the analysts said.
"The nickel market will be well supplied going forward, with production re-starts from Vale Inco (10% of world supply) once the strike is settled, another 4-5% from new mines coming on stream (Santa Rita and Talvivaara) and another 200,000 tonnes of new production (15% increase) under construction, including Koniambo, Ambatovy, Onca Puma and Barro Alto. In addition, the nickel pig iron produced from laterites in the Philippines and Indonesia continues to drop in cost and this material is also available to supply the nickel market going forward."
Molybdenum
Haywood predicts that molybdenum prices will increase to US$15/lb this year, and $20/lb in 2011, declining to a long-term estimate of $15/lb in +2013. "Looking ahead, we believe global molybdenum roasting capacity, currently at 480 million pounds per annum, is an important consideration, with some (arguably bullish) market commentators forecasting world consumption in excess of 480 million pounds within the next two years," the analysts said. "Looking further ahead, we expect growing demand fundamentals to dominate the molybdenum market, noting that the current list of greenfields projects lacks a significant number of large-scale ventures to potentially fill the expected supply deficit."
HAYWOOD TOP PICKS
Metals analyst Kerry Smith's top pick this year is Detour Gold, which he rated Sector Outperform and set a target price of $20.25 per share. "We remain bullish on the outlook for the company and believe that management will continue to deliver on reserve growth and are committed to development of this asset [the Detour Lake gold project in north-eastern Ontario," he wrote.
Smith suggests Detour Lake's gold reserves will increase from 8.81 million to at least 10 million ounces in the next resource/reserve update due to be released in the current quarter. "We believe investors will benefit from continued de-risking of this large gold deposit in Canada as Detour completes a full feasibility in Q2/10," he said. "Most importantly, the deposit is large, 100% owned, and has good infrastructure, making Detour Gold an ideal candidate for consolidation."
Top pick #2 for Smith is Alamos Gold, which he rated Sector Outperform with a $14/sh target.
"Alamos has completed a number of operational improvements in recent years, having a positive effect on crushing rates, increased leach recoveries, and lower operating costs at its 100% owned Mulatos mine in Mexico," Smith noted.
Meanwhile Alamos closed the acquisition of the Agi Dago and Kirazli project in Turkey last month. The two projects combined have a measured and indicated oxide resource of 1.3 million ounces of gold and 8.4 million ounces of silver.
Haywood expects Alamos to produce 200,000 ounces of gold in 2010 at total cash costs of US$325 per ounce increasing production to 350,000 ounces of gold production at total cash costs of $265/oz nu 2012.
Analyst Stefan Ioannou's top pick is Capstone Mining, which he rated Sector Outperform with a $3.50 per share target. "Low-cost producer status in low-risk jurisdictions, coupled with a strong balance sheet and proven management, separates Capstone from its peers," he said. "We believe recent share price weakness continues to provide a buying opportunity. Hence our SECTOR OUTPERFORM rating."
"In the sea of copper ‘development' stories, Capstone has successfully made the transition from explorer to producer ahead of many peers, providing investors with immediate exposure to positive cash flows from two low-cost mines, coupled with the ‘insurance' of a net-debt-free balance sheet," he added.
In his analysis, Ioannou highlighted the 45 million of annual copper production from Capstone's Minto mine in the Yukon and the 40 million to 45 million of copper production expected this year from the Cozamin mine in Mexico.
Ioannou second top pick is Farallon Mining, which he rated Sector Outperform with a target of 75-cents per share. He is particularly bullish about Farallon's G-9 polymetallic mine in Guerrero State, Mexico.
"G-9's low-cost production profile positions Farallon for immediate free-cash flow generation and represents and investment opportunity that has been overlooked and undervalued by the market," he said.
Analyst Chris Thompson's top pick is B2Gold Corp., which he rated Sector Outperform with a target of $1.75/sh. "B2Gold is an emerging gold mining with two producing assets-the Orosi and El Limon mines in Nicaragua, a past producer-the Bellavista mine in Costa Rica and explorations properties in Nicaragua, Columbia and Russia," he wrote. "Development enhancements are anticipated through exploration and resource growth in Nicaragua complimented by exploration activity in Columbia and Russia."
Thompson's second top pick is Bear Creek Mining, which he rated Sector Outperform with a target of $5.40 per share.
Bear Creek is developing two key projects, the Corani silver-lead-zinc project and the Santa Ana silver project, both located in Peru. "By advancing two significant silver-lead-zinc projects through to final feasibility, Bear Creek offers leverage to the silver, lead and zinc price," Thompson wrote.
"BCM has two top ten silver mines in the making, with lead and zinc credits and long life resources bases valued at US
.24/ Eq Ag resource oz. Recent M&A activity highlights potential for further gains on the back of economic refinements and drilling at Corani + Santa Ana."
B2Gold Corp.: Gold and Silver Production Commenced at Orosi Mine, Nicaragua, January 5, 2010, 3:47 pm EST
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 01/05/10) - B2Gold Corp. (TSX:BTO - News) ("B2Gold" or the "Company") is pleased to announce gold and silver production has commenced at the Company's Orosi open pit mine in Nicaragua. The mine and milling facilities have passed mechanical completion and commissioning. Ore processing began on December 15th, 2009 with the first dore bar produced on January 5th, 2010.
The Orosi Mine is scheduled to produce approximately 80,000 to 90,000 ounces of gold per year at an estimated average operating cash cost of approximately $465 per ounce with an initial seven year mine life. The large Orosi property has excellent exploration targets both adjacent to and below currently planned open pits and along the 20 kilometre belt of mineralization contained on the property. Exploration drilling will commence in the first quarter of 2010.
In addition to the Orosi Mine, the Company's Limon Mine, also producing in Nicaragua, is scheduled to produce approximately 40,000 ounces of gold annually. The combined production is projected at 120,000 to 130,000 ounces in 2010 with average operating cash costs projected at approximately $500 to $525 per ounce of gold. Both the Orosi and Limon mines are debt free and un-hedged.
Over the next few months, the Orosi mill is scheduled to ramp up to 3,500 tonnes of ore per day. A second ball mill has been fabricated in China and is scheduled to arrive on site at the end of the first quarter 2010, and be commissioned by the end of the second quarter 2010. After installation of the second ball mill, throughput is projected to increase to approximately 5,500 tonnes per day.
The Orosi Mine process facility will process ore both from the operating open pit and from a stockpile of spent-ore from the previous heap leach facility (approximately 30% spent-ore over the mine life). Ore from the mine will be fed to the existing primary crusher and will be conveyed to a stockpile. Ore from the stockpile will be blended with spent ore and fed to the grinding circuit consisting of a SAG mill and ultimately two ball mills.
The slurry will be pumped from the cyclone feed pump box to the cyclone bank. Cyclone overflow reports to the pre-leach thickener. The thickener underflow is then pumped to a series of leach tanks.
The slurry will flow by gravity through eleven leach tanks and through five Carbon-in-Pulp ("CIP") tanks. Activated carbon is present in the five CIP tanks for adsorbing the leached gold from solution. The carbon is periodically pumped counter-current to the slurry flow. Periodically, loaded carbon is pumped from the first CIP tank to a storage container to be transferred to the ADR plant to remove the precious metals. The slurry is pumped from the final CIP tank to the tailing impoundment.
The loaded carbon from CIP will be first acid washed then transferred to the strip vessel where the precious metal is removed in solution. The strip solution is pumped through electrowinning cells to precipitate the precious metal. The precious metal precipitate is collected then smelted to produce a dore bar for shipment.
About B2Gold
B2Gold Corp. is a Vancouver based gold producer with two mines in Nicaragua and a strong portfolio of development and exploration assets in Nicaragua, Colombia, Costa Rica and Far East Russia.
B2Gold was founded in 2007 by the former executive and management team of Bema Gold Corporation. Bema grew from a junior explorer to an international gold producer that was acquired by Kinross Gold Corporation through a Cdn$3.5 billion transaction in February 2007.
In addition to its near term production growth profile, B2Gold's corporate objective is to build further shareholder value through the exploration and development of existing projects and additional accretive acquisitions, capitalizing on the extensive experience and relationships that management has developed over the past 25 years. B2Gold trades on the Toronto Stock Exchange under the symbol "BTO".
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
For more information on B2Gold please visit the Company web site at www.b2gold.com.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contact:
Contacts:B2Gold Corp.Ian MacLeanVice President, Investor Relations604-681-8371B2Gold Corp.Kerry SuffolkManager, Investor Relations604-681-8371www.b2gold.com
http://finance.yahoo.com/news/B2Gold-Corp-Gold-and-Silver-iw-1029764186.html/print?x=0
Bear Lake Gold Announces Data Inconsistencies that may Compromise Prior Technical Disclosure Related to the Larder Lake Property
Press Release
Source: Bear Lake Gold Ltd.
On Tuesday July 21, 2009, 3:23 pm EDT
LONGUEUIL, QUEBEC--(Marketwire - July 21, 2009) - Bear Lake Gold Ltd. (the "Company") (TSX VENTURE:BLG - News) today said that it has become aware of material inconsistencies regarding the Company's exploration data that appear to compromise the Company's prior reporting of exploration results in respect of the Company's Larder Lake Property. These matters were uncovered on Friday, July 17, 2009, when InnovExplo Inc., the independent technical consulting firm engaged by the Company to complete a resource estimation of the Bear Lake zone and draft a NI 43-101 technical report in respect of the Larder Lake Property, detected certain data inconsistencies and raised concerns with senior management of the Company. Management immediately brought these matters to the attention of the Board of Directors.
The Company said that the inconsistencies appear to involve core drilled to evaluate the Larder Lake Property and the validity and reporting of assay data related thereto, potentially affecting a significant portion of the database for the Bear Lake zone of the Larder Lake Property. Upon learning of these matters, the Company immediately commenced an investigation, both internally and externally with the assistance of InnovExplo Inc., which investigation has been proceeding expeditiously. Given the nature of these matters, the Company has retained Scott Wilson Roscoe Postle Associates to lead the technical investigation and Stikeman Elliott LLP to lead the legal aspects of the investigation and to advise the Board.
The Company said that although it is too early in the investigation to determine precisely the effect of the inconsistencies, based upon the results of the investigation to date it appears that the data inconsistencies are of a serious nature and the Company believes that the reporting of corrected assay results may result in significant reductions of gold values for some of the previously announced drilling intercepts.
Based upon what the Company has learned to date, the Company's Vice President Exploration, who has also been the Company's internal qualified person in respect of the technical content of the Company's public disclosure about its exploration program at the Larder Lake Property, has been suspended pending the finalization/outcome of the Company's complete internal investigation.
The Company's Chairman, David Fennell, said "The Board and I are deeply concerned about what we have learned and we are working with our independent advisors to ascertain as quickly as possible exactly the nature, scope and effect of the inconsistencies."
The Board has established a Technical Committee comprised of Messrs Fennell, Stephen Quin and Alex Horvath, to supervise the investigation, review internal technical procedures and make recommendations to the Board. The investigation will address, among other things, the extent of the time frame over which the inconsistencies occurred.
At this time the Company is not aware of any inconsistencies with respect to any of its projects other than the Larder Lake Property. The Company will review the data with respect to its other projects.
It is the Company's understanding that trading in the Company's shares will remain halted as the Exchange reviews this matter and the Company provides additional clarification to the Exchange on the status of its internal and external investigations.
The Company is investigating as quickly as possible and will provide additional information as soon as practicable.
Forward-looking Statements
This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Bear Lake believes, expects or anticipates will or may occur in the future, are forward-looking statements. These forward-looking statements reflect the current internal projections, expectations or beliefs of management of Bear Lake based on information currently available to them. Forward-looking statements are subject to a number of known and unknown risks and uncertainties beyond Bear Lake's control, including uncertainties related to the outcome of the investigation referred to herein, potential mineralization, exploration results, completion of work program, and availability of equipment necessary for the drilling program and future plans and objectives of the companies. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed from time to time in filings made by the companies with securities regulatory authorities. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Bear Lake undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contact:
Carole Plante, Corporate SecretaryBear Lake Gold Ltd.450-677-2065450-677-2601 (FAX)Evie Sheppard, Legal CounselBear Lake Gold Ltd.450-677-2296450-677-2601 (FAX)www.bearlakegold.com Bear Lake Gold Announces Data Inconsistencies that may Compromise Prior Technical Disclosure Related to the Larder Lake Property
Press Release
Source: Bear Lake Gold Ltd.
On Tuesday July 21, 2009, 3:23 pm EDT
LONGUEUIL, QUEBEC--(Marketwire - July 21, 2009) - Bear Lake Gold Ltd. (the "Company") (TSX VENTURE:BLG - News) today said that it has become aware of material inconsistencies regarding the Company's exploration data that appear to compromise the Company's prior reporting of exploration results in respect of the Company's Larder Lake Property. These matters were uncovered on Friday, July 17, 2009, when InnovExplo Inc., the independent technical consulting firm engaged by the Company to complete a resource estimation of the Bear Lake zone and draft a NI 43-101 technical report in respect of the Larder Lake Property, detected certain data inconsistencies and raised concerns with senior management of the Company. Management immediately brought these matters to the attention of the Board of Directors.
The Company said that the inconsistencies appear to involve core drilled to evaluate the Larder Lake Property and the validity and reporting of assay data related thereto, potentially affecting a significant portion of the database for the Bear Lake zone of the Larder Lake Property. Upon learning of these matters, the Company immediately commenced an investigation, both internally and externally with the assistance of InnovExplo Inc., which investigation has been proceeding expeditiously. Given the nature of these matters, the Company has retained Scott Wilson Roscoe Postle Associates to lead the technical investigation and Stikeman Elliott LLP to lead the legal aspects of the investigation and to advise the Board.
The Company said that although it is too early in the investigation to determine precisely the effect of the inconsistencies, based upon the results of the investigation to date it appears that the data inconsistencies are of a serious nature and the Company believes that the reporting of corrected assay results may result in significant reductions of gold values for some of the previously announced drilling intercepts.
Based upon what the Company has learned to date, the Company's Vice President Exploration, who has also been the Company's internal qualified person in respect of the technical content of the Company's public disclosure about its exploration program at the Larder Lake Property, has been suspended pending the finalization/outcome of the Company's complete internal investigation.
The Company's Chairman, David Fennell, said "The Board and I are deeply concerned about what we have learned and we are working with our independent advisors to ascertain as quickly as possible exactly the nature, scope and effect of the inconsistencies."
The Board has established a Technical Committee comprised of Messrs Fennell, Stephen Quin and Alex Horvath, to supervise the investigation, review internal technical procedures and make recommendations to the Board. The investigation will address, among other things, the extent of the time frame over which the inconsistencies occurred.
At this time the Company is not aware of any inconsistencies with respect to any of its projects other than the Larder Lake Property. The Company will review the data with respect to its other projects.
It is the Company's understanding that trading in the Company's shares will remain halted as the Exchange reviews this matter and the Company provides additional clarification to the Exchange on the status of its internal and external investigations.
The Company is investigating as quickly as possible and will provide additional information as soon as practicable.
Forward-looking Statements
This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Bear Lake believes, expects or anticipates will or may occur in the future, are forward-looking statements. These forward-looking statements reflect the current internal projections, expectations or beliefs of management of Bear Lake based on information currently available to them. Forward-looking statements are subject to a number of known and unknown risks and uncertainties beyond Bear Lake's control, including uncertainties related to the outcome of the investigation referred to herein, potential mineralization, exploration results, completion of work program, and availability of equipment necessary for the drilling program and future plans and objectives of the companies. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed from time to time in filings made by the companies with securities regulatory authorities. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Bear Lake undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contact:
Carole Plante, Corporate SecretaryBear Lake Gold Ltd.450-677-2065450-677-2601 (FAX)Evie Sheppard, Legal CounselBear Lake Gold Ltd.450-677-2296450-677-2601 (FAX)www.bearlakegold.com
http://finance.yahoo.com/news/Bear-Lake-Gold-Announces-Data-ccn-4006619753.html?x=0&.v=1
Weekly Chart
Bear Lake Gold Reports New High-Grade Gold Intercepts From its Bear Lake Gold Zone in Larder Lake, Ontario
Hole #67 intersected 7.5 meters grading 10.4 g/t gold, hole #67W cut 7.9 meters grading 22.5 g/t, hole #69 intersected 7.0 meters grading 16.3 g/t gold, hole #70 cut 4.5 meters assaying 11.0 g/t gold
Source: Bear Lake Gold Ltd.
On Tuesday July 14, 2009, 9:37 am EDT
LONGUEUIL, QUEBEC--(Marketwire - July 14, 2009) - Bear Lake Gold Ltd. ("Bear Lake Gold") (TSX VENTURE:BLG - News) is pleased to report additional results from the infill core drilling program on the Bear Lake gold zone of its 100% owned Larder Lake Project, located in north eastern Ontario.
Hole #67 intersected, at a vertical depth of 700 meters, a 7.5 meter section of carbonate-type mineralization grading 10.4 g/t gold, including 2.7 meters at a grade of 17.9 g/t gold.
- A wedge placed in hole #67 (hole 67W) re-tested the carbonate-type zone (less than a meter away) and cut a 7.9 meter section which assayed 22.5 g/t gold, including 4.3 meters grading 37.5 g/t gold.
- Hole #69 intersected, at a vertical depth of 460 meters, a 7.0 meter section of carbonate-type mineralization grading 16.3 g/t gold and, at a depth of 540m vertical, 1.5 meters of altered ultramafic assaying 20.6 g/t gold.
- Hole #69 also intersected, at a vertical depth of 675 meters, 2.2 meters of flow-type mineralization yielding 11.7 g/t gold.
- Hole #70 cut, at a vertical depth of 380 meters, 4.5 meters of carbonate-type mineralization assaying 11.0 g/t gold.
These holes were all part of the infill program designed to reduce hole spacing and increase the confidence level in one of the higher-grade gold lenses within the heart of the Bear Lake zone. This infill drilling program at Bear Lake continues to successfully define the high-grade portion of the deposit and results obtained to date confirm our interpretation that both high-grade and lower-grade mineralized zones occur within a wide alteration envelope.
Highlights of new Larder Lake Assay Results - Bear Lake Area
---------------------------------------------------------------------------
Core True
Hole no. From To Length Width Au Mineralization
(m) (m) (m) (m) (g/t) Type
---------------------------------------------------------------------------
BLG09-67 719.7 727.2 7.5 6.5 10.4 Carbonate-type
including 724.5 727.2 2.7 2.3 17.9
---------------------------------------------------------------------------
BLG09-67W(i) 717.5 725.4 7.9 6.8 22.5 Carbonate-type
including 718.7 723.0 4.3 3.7 37.5
---------------------------------------------------------------------------
BLG09-69 586.0 593.0 7.0 6.8 16.3 Carbonate-type
and 672.5 674.0 1.5 1.4 20.6 Altered
ultramafic
750.7 752.9 2.2 2.1 11.7 Flow-type
---------------------------------------------------------------------------
BLG09-70 475.5 480.0 4.5 4.4 11.0 Carbonate-type
666.3 673.3 7.0 6.8 0.7 Flow-type
---------------------------------------------------------------------------
(i) Assays pending in other parts of the hole
Re-sampling Program
After receiving unexpectedly low assay results from several intercepts that were suspected to contain gold tellurides, the presence of which can sometimes result in underestimation of gold values unless precautions are taken, samples suspected to contain tellurides were re-assayed. Despite that most of the results show no significant difference, there were 5 assays results from holes 49W2, 56A, 58, 59 and 59W that did show some significant increase in gold content, which should have a positive impact on the upcoming resource estimates. These results were confirmed by an independent assay laboratory. The most significant results from this re-sampling program are shown in the table below.
Most Significant Assay results - Re-sampling Program
---------------------------------------------------------------------------
Length Original
Hole no. From To (True width) values Re-assays Mineralization
(m) (m) (m) Au (g/t) Au (g/t) Type
---------------------------------------------------------------------------
NFX08-58 1067.4 1075.9 6.0 1.1 6.5 Carbonate-type
---------------------------------------------------------------------------
BLG08-59 1133.0 1136.5 2.1 1.7 10.5 Carbonate-type
---------------------------------------------------------------------------
BLG08-59W 1466.8 1469.6 1.7 2.3 6.7 Flow-type
---------------------------------------------------------------------------
NFX08-56A 1221.5 1222.6 0.6 4.8 23.4 Flow-type
---------------------------------------------------------------------------
NFX08-49W2 1033.5 1040.2 6.5 1.4 9.9 Flow-type
---------------------------------------------------------------------------
Gold tellurides were frequently observed at the Kerr-Addison mine, located 5 km to the east and are found in several gold deposits located along the Larder Lake-Cadillac Break. To ensure that the most accurate gold values are obtained, minor modifications were made to further improve our assay protocol and all assays reporting above 2 g/t gold are now re-assayed three times.
Link to flow-type mineralization diagram: http://media3.marketwire.com/docs/Flow-Type.pdf
Link to carb-type mineralization diagram: http://media3.marketwire.com/docs/Carb-Type.pdf
The gold mineralized system identified at Bear Lake includes both high-grade and low-grade mineralized shoots, similar to the ore zone setting at the former Kerr Addison mine, and tighter drilling is necessary to establish the size and extent of the high-grade zones within this large gold mineralized envelope.
Link to complete assay results to date from the Bear Lake Area as at July 14, 2009: http://media3.marketwire.com/docs/CompleteAssayResults_07142009.pdf
Project Update
Three drill rigs are currently working at Larder Lake on the infill drilling of the higher-grade portion of the Bear Lake zone between depths of 400 to 800 meters. Since drilling started in March 2007, more than 55,000 meters of diamond drilling have been completed at Larder Lake.
Work is on-going to complete an initial mineral resource estimate and a NI 43-101 compliant technical report on the Bear Lake zone during the summer of 2009.
Quality Assurance and Control
As part of its QA/QC program, Bear Lake Gold carried out check assays on the high-grade intersections, with no significant discrepancies found in the assay results. The assays reported are the uncut average grades of all determinations from the same samples. The analytical method for gold is one (1) assay-ton fire assay, with gravimetric finish on all samples. All assays reporting over 2 g/t gold are automatically re-checked using the rejects. Assaying is done at Polymet Inc., a certified assay laboratory located in Cobalt, Ontario. The quality control process includes inserting blank samples and certified standards within each batch sent to the laboratory. All rejects from samples grading above 2g/t gold and randomly-selected rejects from samples below 2g/t gold are also sent to another certified laboratory as part of Bear Lake Gold's quality control procedures.
Hope Bay Update
The exploration program at the Hope Bay project is scheduled to start mid-July. The work will focus on the Discovery/Twin Peaks areas located to the north of the project. The proposed targets are all within 10km from Newmont's Doris and Madrid gold deposits. A total of 1,100 meters of drilling is planned to test gold mineralization targets coinciding with surface showings and/or geophysical anomalies. The program will take approximately one month to complete at a total cost of $892,000.
Through its wholly-owned subsidiary Maximus Ventures Ltd. ("Maximus"), Bear Lake is currently in the sixth year of an option to earn in to a 75% joint venture interest in the Chicago and Twin Peaks claims groups at Hope Bay, Nunavut (the "Hope Bay project"). To earn its 75% interest in the Hope Bay project, Maximus must incur exploration expenditures of $7,250,000 before October 31, 2010, and issue a total of 5,000,000 common shares, which have been issued. In order to fulfill its cumulative expenditure requirements for 2009, a total of $892,000 must be spent on the project before October 31st, 2009.
Qualified Person
The technical content of the information contained in this news release was reviewed and approved by Mr. Bernard Boily, P. Geo., Bear Lake Gold's Vice President of Exploration. He is responsible for supervising the drilling program and is a qualified person under National Instrument 43-101.
Forward-looking Statements
This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Bear Lake Gold believes, expects or anticipates will or may occur in the future, are forward-looking information. This forward-looking information reflects the current internal projections, expectations or beliefs of management of Bear Lake Gold, based on information currently available to them. Forward looking information in this news release includes statements regarding the nature of mineralization at Larder Lake, the interpretation of drilling results on the project and the plan to define a NI 43-101 resource at Larder Lake. Forward-looking information is based on assumptions and subject to a number of known and unknown risks and uncertainties beyond Bear Lake Gold's control, including uncertainties related to the outcome of the current drill program and other risks involved in the gold exploration and development industry, as well as those risk factors identified in Bear Lake Gold 's most recent Management Discussion and Analysis filed on SEDAR. There can be no assurance that the beliefs and assumptions underlying the forward looking information will prove to be accurate, and actual results could differ materially from those suggested by the forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Bear Lake Gold undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
Additional information about Bear Lake Gold is available through regular filings and press releases on SEDAR and on the Company's website at www.bearlakegold.com .
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Francois ViensBear Lake Gold Ltd.President and CEO450-677-1009450-677-2601 (FAX)www.bearlakegold.comGerri PaxtonBear Lake Gold Ltd.Manager, Investor Relations450-677-2054450-677-2601 (FAX)gpaxton@bearlakegold.com
http://finance.yahoo.com/news/Bear-Lake-Gold-Reports-New-ccn-966781643.html?x=0&.v=1
Bear Lake Gold announces new high-grade gold intercepts from its Bear Lake gold zone- NEWS RELEASE / Dated June 9, 2009
Longueuil, Québec: June 9, 2009. Bear Lake Gold Ltd. ("Bear Lake Gold") (TSX.V: BLG) is pleased to announced more results from the infill drilling program on the Bear Lake gold zone of its 100% owned Larder Lake Project, located in north eastern Ontario.
Hole #65 intersected, at a vertical depth of 600 meters, a 6.7 meter section of carbonate-type mineralization grading 6.2 g/t gold, including 3.0 meters at a grade of 10.0 g/t gold.
Hole #66 intersected, also at a vertical depth of 600 meters, a 9.6 meter section of carbonate-type mineralization grading 8.4 g/t gold, including 2.7 meters which yielded 10.6 g/t gold and 3.1 meters that assayed 14.8 g/t gold.
Hole #66 also cut, at a vertical depth of 700 meters, 5.6 meters of flow-type mineralization assaying 7.1 g/t gold, including 3.2 meters grading 10.5 g/t gold.
Hole #53W3 cut, at a vertical depth of 975 meters, a 1.0 meter section of carbonate-type mineralization grading 10.5 g/t gold.
Holes #65 and #66 were drilled as part of the in-fill program designed to reduce hole spacing and increase confidence in one of the higher grade gold envelopes within the heart of the Bear Lake zone. Due to technical difficulties, hole #65 did not reach the projected flow-type mineralization but has been wedged and is in progress towards the flow-type mineralization. This infill drilling program at Bear Lake continues to successfully define the high grade portion of the deposit and results obtained to date confirm our interpretation that both high grade and lower grade mineralized zones occur within a wide alteration envelope.
Hole #53W3 is part of the program to wedge and deepen holes previously stopped short by broken ground associated with a fault zone, located about half way between the carbonate and flow-type mineralized zones that compose the Bear Lake gold deposits. This hole crossed the broken ground area but was stopped early due to technical problems. However, the intersection of 1.0 meter of albitized carbonate mineralization grading 10.5 g/t gold confirms the presence of high grade gold values on the other side of the fault, within the large and broad zone of alteration and gold mineralization, at depths of more than 900 meters.
The gold mineralized system identified at Bear Lake includes both high-grade and low-grade mineralized shoots, similar to the ore zone setting at the former Kerr Addison Mine located 5 km to the east, and tighter drilling is necessary to establish the size and extent of the high-grade zones within this large gold mineralized envelope.
Project Update
Three drill rigs are currently working at Larder Lake on the infill drilling of the higher-grade portion of the Bear Lake zone between depths of 400 to 800 meters. Since drilling started in March 2007, more than 52,000 meters of diamond drilling have been completed at Larder Lake.
Work is on-going to complete an initial mineral resource estimate and a NI 43-101 compliant technical report on the Bear Lake zone during the summer of 2009.
Quality Assurance and Control
As part of its QA/QC program, Bear Lake Gold carried out check assays on the high-grade intersections, with no significant discrepancies found in the assay results. The assays reported are the uncut average grades of all determinations from the same samples. The analytical method for gold is one (1) assay-ton fire assay, with gravimetric finish on all samples. All assays reporting over 2 g/t gold are automatically re-checked using the rejects. Assaying is done at Polymet Labs in Cobalt, Ontario. The quality control process includes inserting blank samples and certified standards within each batch sent to the laboratory.
Qualified Person
The technical content of the information contained in this news release was reviewed and approved by Mr. Bernard Boily, P. Geo., Bear Lake Gold's Vice President of Exploration. He is responsible for supervising the drilling program and is a qualified person under National Instrument 43-101.
Forward-looking Statements
This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Bear Lake Gold believes, expects or anticipates will or may occur in the future, are forward-looking information. This forward-looking information reflects the current internal projections, expectations or beliefs of management of Bear Lake Gold, based on information currently available to them. Forward looking information in this news release includes statements regarding the nature of mineralization at Larder Lake, the interpretation of drilling results on the project and the plan to define a NI43-101 resource at Larder Lake. Forward-looking information is based on assumptions and subject to a number of known and unknown risks and uncertainties beyond Bear Lake Gold's control, including uncertainties related to the outcome of the Company's current drill program and other risks involved in the gold exploration and development industry, as well as those risk factors identified in the Company's most recent Management Discussion and Analysis filed on SEDAR. There can be no assurance that the beliefs and assumptions underlying the forward looking information will prove to be accurate, and actual results could differ materially from those suggested by the forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Bear Lake Gold undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website.
For further information please contact:
Francois Viens
President and CEO
Bear Lake Gold Ltd.
Tel: 450-677-1009
Fax: 450-677-2601
www.bearlakegold.com
Gerri Paxton
Manager, Investor Relations
Bear Lake Gold Ltd.
Tel: 450-677-2054
Fax: 450-677-2601
gpaxton@bearlakegold.com
I don't know if it's everything, but it's MUCH more than the Bankers want us to know, for sure. Have a nice weekend all.
MONEY AS DEBT, if you have some time this weekend and haven't seen this before it's worth your time IMO. Away from the 'puter for a few days, enjoy.
Paul Grignon's 47-minute animated presentation of "Money as Debt" tells in very simple and effective graphic terms what money is and how it is created.
http://video.google.com/videoplay?docid=-9050474362583451279
Central banks all but stop lending bullion
By Javier Blas in London
Published: October 7 2008 21:44 | Last updated: October 7 2008 21:44
Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.
The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.
Gold lease rates for two, three and six months and for a year also jumped to levels not seen in the last seven years.
Traders said the jump reflects the fact that central banks – mostly European – have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.
“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.
John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.
“There is very little appetite for unsecured lending at the moment,” he said.
Central banks usually do not ask borrowers to post any guarantee – or collateral – to secure bullion loans. “The key word now is safety,” an official from a Europe-based central bank said.
In normal circumstances, central banks lend gold into the market – providing key liquidity – to earn a small return on what otherwise is a non-yielding asset.
Other factors are also pushing lease rates higher, including more investors’ positions no longer available for lending, according to Philipp Klapwijk, chairman of GFMS, the London-based precious metals consultants.
Traders said the general dysfunction in money markets, with US dollar rates significantly higher, was contributing to volatile gold lease rates. Demand for physical gold and small and medium-sized bars had been strong, removing supplies from the market that otherwise could have been lent, traders added.
The US Mint onTuesday said it had run out of half-ounce and quarter-ounce American Eagle gold coins following “unprecedented” demand.
Gold prices on Tuesday rose $19.3 to $880.6 a troy ounce, having hit an intraday high of $890.6 an ounce. Bullion prices hit an all-time high of $1,030.8 in March. In euro terms, gold prices rose on Tuesday to a record high of €654.22 an ounce, above March’s all-time high of €651.24 an ounce. It also hit a record in Australian dollars.
Investors are seeking refuge in actual gold coins and bars as fears about the safety of their savings increase. Some have even been selling their positions in gold futures, as this is a less tangible form of the metal. Since the collapse of Lehman Brothers three weeks ago, bullion prices have risen about 20 per cent.
Copyright The Financial Times Limited 2008
http://www.ft.com/cms/s/0/f565b702-949a-11dd-953e-000077b07658.html
Yikes, parabolic indeed! Silver as well. Thanks.
France to Propose EU300 Billion Europe Bank Fund, Reuters Says
By James Hertling
Oct. 1 (Bloomberg) -- France plans to propose a 300 billion-euro ($422 billion) bank-rescue fund for the European Union at a meeting of government leaders this weekend, Reuters reported, citing an unidentified European government source.
In an interview to be published tomorrow in Germany's Handelsblatt, French Finance Minister Christine Lagarde said France would propose an EU-wide fund.
``What will happen when a smaller European Union member state is threatened with a banking failure?'' Lagarde was quoted as saying. ``It may not have the resources to save the company. This is where a European rescue package becomes a possibility.''
To contact the reporters on this story: James Hertling in Paris at jhertling@bloomberg.net;
Last Updated: October 1, 2008 12:43 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=agDyigQUvRJc&refer=home
US Mint suspends Buffalo gold coins after depletion
09.25.08, 2:25 PM ET
United States - (Add details, background, gold prices)
NEW YORK (Reuters) - The U.S Mint said Thursday it was temporarily suspending sales of American Buffalo 24-karat gold one-ounce bullion coins because strong demand depleted its inventory.
"Demand has exceeded supply for American Buffalo 24-karat gold one-ounce bullion coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins," the Mint said in a memorandum to authorized American Buffalo dealers.
The Mint also told dealers that it would work to build up its inventory to resume sales shortly.
In mid-August, a shortage of American Eagle one-ounce gold coins due to "unprecedented" demand had also forced the U.S. Mint to temporarily suspend sales of the popular coins.
The Mint said Thursday it would continue to supply the American Eagle 22-karat gold one-ounce and American Eagle silver bullion coins on an allocation basis to coin dealers.
In addition, the half-ounce, quarter-ounce, and 1-10th ounce American Eagle gold coins and American Eagle platinum were also available, the Mint said.
Coin dealers from the United States to Canada have recently reported a surge in buying of bullion coins and other gold products as troubles in the financial markets prompted people to seek a safe haven in precious metals.
On Thursday, the U.S. gold contract for December delivery ended down $13 or 1.5 percent at $882 an ounce on the COMEX division of the NYMEX, while spot gold traded at $873 an ounce.
Bullion hit an all-time high of $1,030.80 an ounce on March 17. (Reporting by Frank Tang; Editing by John Picinich)
Copyright 2008 Reuters
http://www.forbes.com/reuters/feeds/reuters/2008/09/25/2008-09-25T182557Z_01_N25462405_RTRIDST_0_MINT-AMERICANBUFFALO-SUSPENSION-UDPATE-1.html
Mint Runs Out of Buffalos
By Numismaster Staff
September 25, 2008
The U.S. Mint has run out of one-ounce gold Buffalo bullion coins and has suspended sales temporarily, it was announced Sept. 25.
Currently, the Mint has sales of silver and gold American Eagle bullion coins on allocation to its authorized purchaser network because demand is consistently exceeding supply.
The Buffalo coins could be put on allocation when the Mint has sufficient coins to begin to sell them again.
Supplies of fractional gold Eagles are still available for sale from the Mint. The Mint also has supplies of platinum American Eagle on hand.
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=5360
FDIC May Need $150 Billion Bailout as Local Bank Failures Mount
By David Evans
Sept. 25 (Bloomberg) -- Deborah Horn tugs on the handle of the glass-paned entrance of the IndyMac Bancorp Inc. branch in Manhattan Beach, California. The door won't budge. The weekend is approaching, and Horn, 44, the sole breadwinner in a family of three, needs cash.
A small notice taped to the window on this Friday afternoon in mid-July tells her why she's been locked out. IndyMac has failed, the single-spaced, letter-sized paper says; the bank is now in the hands of the Federal Deposit Insurance Corp.
``The Receiver is now taking possession of the Bank,'' the sign says.
``I'm physically shaking,'' says Horn, an academic tutor, as she peers into the bank. Inside, an FDIC examiner is talking to six stone-faced IndyMac employees. ``I don't know when I'm going to be able to get my money,'' Horn says. ``I'm a single mom. This is the money I live on.''
Don't worry about Horn. She'll be all right, as will most of Pasadena, California-based IndyMac's 200,000-plus customers.
That's because the FDIC, created in 1934, insures all accounts up to $100,000 at its member banks, and it has never failed to honor a claim. The people to worry about are U.S. taxpayers.
The IndyMac debacle is taking a large bite out of FDIC reserves, and if scores of other banks fail in the year ahead, the fund will be depleted. Taxpayers will have to step in.
Worst Wave
Americans have gotten used to the idea that bank failures were as rare as a category five hurricane. No banks went bust in 2005 or 2006. Seven collapsed in 2007 as the credit crisis began to exact a toll. So far in 2008, 12 more, with total assets of $42 billion, have fallen -- that's the worst wave of bank failures since 1992.
IndyMac, which had $32 billion in assets when it went into receivership, is the most expensive bank failure the FDIC has ever covered. And that record may not stand for long.
By the end of 2009, about 100 U.S. banks with collective assets of more than $800 billion will fail, predicts Christopher Whalen, managing director of Institutional Risk Analytics, a Torrance, California-based firm that sells its analysis of FDIC data to investors.
``It's not going to be Armageddon,'' says Mark Vaughan, an economist and assistant vice president for banking supervision and regulation at the Federal Reserve Bank of Richmond, Virginia. ``But it's going to be bad.''
FDIC's Secret List
The FDIC knows which banks are at risk; it has a watch list with 117 institutions. The agency won't disclose their names because doing so could cause depositors to panic and pull out all of their funds.
It won't take many more failures before the FDIC itself runs out of money. The agency had $45.2 billion in its coffers as of June 30, far short of the $200 billion Whalen says it will need to pay claims by the end of next year. The U.S. Treasury will almost certainly come to the rescue.
Regardless of who wins control of the White House and Congress in November, no politician is likely to vote in favor of leaving federally insured depositors out in the cold.
A taxpayer bailout of the FDIC would come on the heels of intervention by the U.S. Treasury Department and Federal Reserve to save investment bank Bear Stearns Cos., mortgage giants Fannie Mae and Freddie Mac and the world's largest insurer, American International Group Inc.
Uninsured Deposits
Emergency federal funding of the FDIC could swell the cost of government rescues of failed financial institutions to more than $400 billion -- not including the $700 billion general Wall Street bailout now under discussion in Congress.
That number would be even higher if the government were on the hook for uninsured deposits -- which amount to $2.6 trillion, 37 percent of the total of $7 trillion held in the U.S. branches of all FDIC member banks.
The subprime crisis -- which started in the suburbs of California and Florida and migrated through the alchemy of securitization to Wall Street investment banks -- has come almost full circle, spreading its toxins to the very lenders who first extended those teaser-rate, no-document mortgages to homeowners.
In 2006, IndyMac was the largest provider of mortgages that didn't require borrowers to provide proof of their incomes. And as of mid-September, investors were worried that Washington Mutual Inc., the biggest thrift in the U.S., would be the next bank to go belly up.
A federal takeover of Washington Mutual, which has assets of $310 billion, could cost taxpayers $24 billion more, according to Richard Bove, an analyst at Miami-based Ladenburg Thalmann & Co.
Slower To Hit
The reckoning that has run through Wall Street, claiming investment banks Lehman Brothers Holdings Inc. and Bear Stearns among its victims, has been slower to hit Main Street. In mid- 2007, Wall Street firms began disclosing losses on their packages of securitized home loans.
From August 2007 to September 2008, banks worldwide wrote down more than $500 billion. Regional banks, by contrast, have waited to write off their bad mortgages, hoping the housing market would improve and defaults would level off. Instead, they've risen.
FDIC-insured banks charged off $26.4 billion of bad loans in the second quarter of 2008, the most since 1991.
U.S. lenders, in their embrace of subprime lending, committed the same analytical fallacy as their Wall Street counterparts. When it came to assessing risk, they relied on the recent past to predict the near future.
Living in the Past
They were blinded by years of rising home prices and low mortgage default rates.
The FDIC fell into the same trap. As recently as March, an internal FDIC memo estimated the cost to cover bank collapses in 2008 would be just $1 billion, dropping to $450 million in 2009. It wasn't even close.
The IndyMac failure alone, which happened four months after that memo was circulated, will cost the FDIC $8.9 billion -- and the bill for all 12 collapses will be about $11 billion, the FDIC says.
FDIC Chairman Sheila Bair says the agency's forecast was based on models using data from the past 20 years, which included long periods with few bank failures.
``Given the change in economic conditions, we need to weight the more recent data more heavily,'' Bair says. ``You also need a good dose of common sense.''
Bair says depositors shouldn't fret about their banks. ``We do have a handful with some significant challenges,'' she says. ``Overall, banks are quite safe and sound.''
Bair is duty bound to say that, says Joseph Mason, an economist who worked for the Treasury from 1995 to 1998. Part of the FDIC's job is to reassure the public and prevent runs on banks. Mason says Bair's rhetoric masks the agency's inability to grasp the scope of the coming crisis.
`Ignoring the Problem'
``The FDIC and the banking regulators are ignoring the problems, hoping they'll go away,'' he says. ``They won't.''
The quake that shook markets in September may make the FDIC's task more complicated and expensive. With investment banks in eclipse, deposit-taking institutions will now play a larger role in financing the economy.
Earlier this month, Bank of America Corp. agreed to buy Merrill Lynch & Co. for $50 billion, and Wachovia Corp. and Morgan Stanley were in talks about a potential merger.
'Would Be Miraculous'
From 2002 to 2007, U.S. lenders made a total of $2.5 trillion in subprime mortgages, according to the newsletter Inside Mortgage Finance. ``Given the magnitude of the bad loans still on bank balance sheets, it would be miraculous for the FDIC to squeak by with losses of less than $200 billion,'' Whalen says.
On Sept. 18, in yet another stunning turn of events, Paulson proposed a plan that would cost the government, if not necessarily the FDIC, hundreds of billions of dollars more.
The Treasury secretary says the government will purchase toxic mortgage debt from banks in an effort to cleanse the financial system. In an unprecedented move, the Treasury also pledged $50 billion to insure nonbank money market funds.
Bair says Paulson's plan won't reduce the number of banks on the FDIC's watch list.
One reason the rolling financial crisis is hitting regional banks later than it walloped Wall Street is because the very system that is meant to protect depositors -- federal insurance -- has also served to prop up weak lenders. So has the ready supply of credit extended to banks by another government- chartered group, the Federal Home Loan Banks.
Because all deposits up to $100,000 are insured, most savers can be agnostic about where they put their money. They don't have to know -- or care -- whether a bank is making sound or foolish loans.
Unlike buyers of stocks or bonds, people who put their money in banks rarely do research about the soundness of the institution. That makes it easy for banks -- both prudent and reckless ones -- to raise cash.
Brokered Deposits Loophole
Banks have taken the FDIC's protection and run with it, thanks to the phenomenon of brokered deposits -- and a giant loophole in federal regulations.
As of June 30, Whalen says banks held $644 billion from brokers who offer customers a way to gain FDIC insurance for multiple accounts.
Promontory Interfinancial Network LLC, an Arlington, Virginia-based company founded in 2002 by former federal officials --including some from the FDIC itself -- has figured out how to help wealthy clients insure as much as $50 million each by putting their money into separate accounts at 500 different banks.
While the law does limit insurance to $100,000 per account, it places no ceiling on the number of different banks where an individual can hold accounts -- a loophole Congress failed to close even after the savings and loan debacle of 1984- 1992.
Missing Discipline
Bair says brokered deposits can provide quick cash but also create potential danger.
``It is quite easy to get brokered deposits, and there's not a lot of market discipline with the brokered deposits,'' she says. ``When there's excessive reliance on them, particularly to fuel rapid growth on the balance sheet, that's definitely a high-risk factor.''
The other big source of money for banks is the FHLB, an under-the-radar network of 12 regional banks created by Congress in 1932 to help lenders finance mortgages. Lenders had borrowed a total of $840.6 billion from the FHLB system as of June 30, up 38 percent from $608 billion in the same period a year earlier.
Treasury Secretary Henry Paulson, in a little-noticed action on Sept. 7, the day after he announced the bailout of Fannie and Freddie, extended a secured credit line to the FHLB to provide an emergency source of funding if needed.
FHLB Advances
Vaughan says credit from the FHLB is keeping some sick banks afloat and postponing the inevitable.
`What's going to happen,'' he says, ``is that weak banks will use FHLB advances to avoid discipline from funding markets. In some cases, that will keep their doors open longer than they otherwise would, all-the-while offloading more and more potential losses onto the FDIC and taxpayers.''
Normally, the FDIC is no more than four initials customers see when they walk into their banks. In recent years, the agency hasn't had to close many banks, as it collected small amounts of insurance premium payments.
President Franklin D. Roosevelt signed the law creating the FDIC in the middle of the Depression. As part of the New Deal, Congress created a system of federal insurance to end bank runs by reassuring the public that depositing money in banks was safe. All banks paid the same rate for insurance.
Wave of Failures
The FDIC shares regulatory authority with other agencies. The Office of Thrift Supervision oversees federally chartered savings and loans, the Comptroller of the Currency monitors national banks, and state banking regulators review state- chartered banks.
The FDIC is the only one of these agencies that insures deposits.
By and large, the government's insurance system worked until the 1980s, when thrifts went on a commercial real estate lending binge, triggering a wave of failures and consolidation that lasted from 1984 to 1992.
In 1991, Congress changed the way FDIC premiums were assessed, requiring banks to pay rates based on how well capitalized they were for the risks they faced. As bank failures subsided to less than a dozen a year by 1995, the FDIC's reserves began to swell.
As a result, the agency cut to zero the premiums it charged to the 90 percent of the banks deemed safest. That free ride continued for 10 years.
`No Good Way'
In 2006, Congress increased insurance payments for most banks, averaging $5-$7 per $10,000 of deposits.
The insurance premiums imposed by the FDIC on the riskiest banks -- running as high as $43 per $10,000 -- are still far below the rates private insurers would charge, says Sherrill Shaffer, former chief economist of the Federal Reserve Bank of New York.
At the same time, charging struggling banks a fair price for insurance premiums may drive them into insolvency, he says.
``That can be destabilizing,'' says Shaffer, who's now a professor of banking at the University of Wyoming in Laramie. ``There's really no good way around that. It's an issue that policy makers and analysts have wrestled with for decades.''
Bair says the FDIC is gearing up for the coming wave of bank failures. She says she's developing a plan to raise insurance premiums.
The agency's Division of Resolutions and Receiverships has boosted authorized staffing levels by 48 percent, to 331, this year. It has hired 178 new financial specialists and called up 65 retirees for temporary service under a special program.
Bair vs. Enron
Bair, 54, an attorney who graduated from the University of Kansas School of Law, has challenged financial institutions as a regulator for more than a decade. President George W. Bush nominated her as chairman, and she was sworn in on June 26, 2006.
She replaced Donald Powell, a former Texas banker. In 1992, as a member of the Commodity Futures Trading Commission, Bair cast the lone vote against Enron Corp.'s effort to exempt certain energy contracts from the agency's anti-fraud and anti- market manipulation enforcement powers.
Nine years later, Enron blew up in one of the biggest financial scandals in U.S. history.
As assistant secretary of the Treasury for financial institutions in 2002, Bair criticized abusive subprime mortgage brokers.
``Lenders have made loans with little or no regard for a borrower's ability to repay and have engaged in multiple refinance transactions that result in little or no benefit to a borrower,'' she told the Pittsburgh Community Reinvestment Group on March 18, 2002.
`Rock and Brock'
Bair has published two children's books. One of them, ``Rock, Brock, and the Savings Shock'' (Albert Whitman, 2006) is a tale of two twins -- Rock the Saver and Brock the Spender -- that encourages thrift and explains the benefits of compound interest to elementary school readers.
Some of those lessons seem to have been lost on America's bankers and lawmakers, starting with the dangers of brokered deposits. During the S&L crisis, banks financed their lending spree by raising billions of dollars by selling FDIC-insured CDs, often at high interest rates, through brokers.
When banks rely on brokers to garner as much as 15 percent of their deposits, it's a red flag calling for closer examination by regulators, Yeager says.
'I Was Death'
William Isaac, who chaired the FDIC from 1981 to '85, tried to ban brokered deposits.
``I was death on brokered deposits,'' says Isaac, 64, now chairman of Vienna, Virginia-based Secura Group of LECG LCC, a bank consulting firm. ``I waged a major war against them. I lost that battle with courts and the Congress.''
In 1991, Congress passed a law banning banks that weren't classified as ``well capitalized'' by the FDIC from using brokered deposits. The law left open a loophole, and the FDIC made it wider. Banks that are just ``adequately capitalized'' are allowed to petition the agency for exemptions from the law.
From 2005 to 2007, 88 banks asked the FDIC for waivers, according to agency records. The FDIC granted approval to all of them.
``There are always financial incentives for banks in the U.S. to use brokered deposits to take on excessive risk without having to pay for it,'' Shaffer says. ``It allows them to bring in large chunks of money relatively quickly.''
In 1980, following lobbying from the S&L industry, Congress raised the ceiling on accounts that qualified for FDIC insurance to $100,000 from $40,000. That ceiling has holes in it.
$2 Million FDIC-Insured
A family of two adults and two children can get up to $2 million of FDIC insurance at just one bank.
Here's how: Each person opens an individual account, insuring a total of $400,000. They can hold four more insured joint accounts, each in the names of two family members, protecting another $400,000.
The family can protect $600,000 more if each spouse opens an account that's payable upon death to family members. Each adult can also insure $250,000 for individual retirement holdings in the same bank.
And a family-owned incorporated business qualifies for another $100,000 of insurance.
Banks don't always explain these rules to customers. They might not even know about them.
``They're very complex for depositors to understand,'' says Alan Blinder, 62, a former vice chairman of the Federal Reserve. ``My mother every once in a while asks me a question, and I don't always get it right. I have to scurry back to the rule book. It is complicated.''
Biggest Loophole
Blinder is now vice chairman of Promontory Interfinancial, the deposit broker that exploits the biggest FDIC loophole of all -- the one that allows individuals to have insured accounts at an unlimited number of banks. Isaac serves as an adviser to Promontory.
Along with the flood of brokered deposits that flows into their coffers, banks can also tap another source of money: loans from the Federal Home Loan Banks.
They lend money to banks at low interest rates, accepting mostly real estate debt worth as much as twice the value of the bank loans as collateral.
In 1989, until which FHLBs lent just to savings banks, Congress expanded the charter to allow most commercial banks to tap into the inexpensive source of loans. New York-based Citigroup Inc., the largest U.S. bank by assets, was the largest borrower this year, with $84.5 billion from the FHLBs as of June 30.
Lacks Staff
Former Fed economist Tim Yeager says FHLB offices lack the staff to keep up with financial conditions of their thousands of member banks.
``The Federal Home Loan Banks cannot effectively control or monitor the risks that are in these institutions,'' says Yeager, now a finance professor at the University of Arkansas at Fayetteville. ``As long as they have collateral, they're just going to lend.''
Behind the scenes, the surge of FHLB lending has created a clash of federal authorities. Bair says the ability of struggling banks to borrow billions from FHLB branches is likely to lead to large losses for her agency.
The FDIC can't start recovering assets from a failed bank until after the FHLB collects 100 percent of its loans.
``We really get a double whammy,'' says Bair, who has short dark hair and is dressed in a well-tailored gray suit, with a pearl necklace, as she speaks in San Francisco before participating in a panel discussion on financial education.
`I Have a Beef'
``The Federal Home Loan Bank has priority over us in the claims queue if we have to close the bank,'' she says. ``I have a beef with excessive reliance on Federal Home Loan Bank advances.''
John von Seggern, president of the Council of Federal Home Loan Banks, a nonprofit trade association that lobbies Congress on behalf of the 12 independently operated regional offices, says the FHLB provides an essential service, quickly dispatching low-interest loans to member banks.
``We are not the regulator,'' he says. ``Our role is to be the liquidity provider.'' He says the FHLBs would halt lending to a weak bank if a bank regulator asked; he doesn't remember that ever happening.
``If we turn off the tap, that bank would positively fail,'' he says. ``Even healthy banks would fail.''
Von Seggern opposes Bair's efforts to increase insurance premiums for FDIC member banks that rely on FHLB advances for a large share of their funding.
`Making Good Loans?'
``The question should be, `Are you making good loans?' as opposed to `Where did you get the money to fund those loans?''' von Seggern says. ``This is a tough issue. We are very interested in working with the FDIC in coming to an agreement that works for both of us.''
Vaughan of the Richmond Fed says the FHLBs will be stretched with more banks on the cusp of failing.
``U.S. bank supervisors barely have the staff to handle routine bank exams,'' he says.
``Now, when a bank falls into problem status, there's a lot of stuff you got to do,'' he says. ``You've got to monitor the condition of that institution continuously, put all kinds of enforcement on them and stay in contact with the bank to make sure they're doing what they need to do. Dealing with a long list of problem banks takes resources, and there aren't a lot of bodies to spare.''
As FDIC examiners find the truth about a bank's deteriorating condition, the agency faces a conundrum. It knows which banks are on the verge of failure, but in order to avoid customer panic, it doesn't make its watch list public.
No Warning
The FDIC gave no warning to the public or depositors that IndyMac was nearing collapse. The agency knew that IndyMac was at risk a month earlier when it placed it on the watch list, the FDIC says.
Still, as recently as May 12 -- two months before it failed -- IndyMac declared it was ``well capitalized'' by FDIC standards as of March 31.
When IndyMac collapsed, $10 billion, or a third of the bank's assets, were funded by FHLB advances. Another $5.5 billion came from brokered deposits.
Indymac specialized in so-called Alt-A loans, also known as liar loans because they didn't require borrowers to provide documentation of their income. The bank accepted whatever borrowers said they had in annual wages.
Bundled Loans
From 2003 to 2007, the bank had bundled many of its loans into securities and sold them to Wall Street firms. As the credit crisis took hold on Wall Street, the bank could no longer offload its mortgages.
It had $2.7 billion in bad loan reserves on its books on June 30, up from $813 million a year earlier. Over its final nine months, the bank reported losses totaling $896 million.
The agency almost always closes banks on Friday afternoons, after the close of the U.S. stock market. That timing allows FDIC examiners a weekend to prepare the bank to reopen the next business day.
Customers generally have uninterrupted access to their insured funds over the weekend through the use of debit cards and checks.
No Buyers
The FDIC shut down IndyMac at 6 p.m. New York time on Friday, July 11. The FDIC tried to find a buyer for IndyMac, as it had for every other bank that failed this year. That usually is the least-expensive solution.
No bank was willing to purchase IndyMac for a fair price, the FDIC says. So the FDIC took over bank management itself -- just the 13th time in the agency's 74-year history that it has taken control of a bank, spokesman Andrew Gray says.
The agency is now working to sell IndyMac's assets. One of its goals is to recoup customer losses of uninsured deposits from remaining bank holdings, Bair says.
The FDIC told 10,000 customers that it wasn't certain it could repay their $1 billion in deposits in excess of the $100,000 insurance limit. The agency told these depositors it would pay them 50 percent of their uninsured money in so-called dividends.
Further recovery of those uninsured assets will depend on the salvage value of the bank's holdings.
`A Big Mistake'
One IndyMac customer who had uninsured funds is Jeff Capistran, an architect undergoing chemotherapy for colon cancer. Capistran, 46, had planned to close his $127,000 account at the bank a few days before it was shut down, but he was unable to because of his medical treatment.
``I'm somewhat worried,'' he says. ``I made a big mistake.'' Still, the FDIC has told him he'll get half of his deposit above $100,000. ``I have faith they will come through with the rest,'' he says. ``This is an election year.''
On Monday, July 14, three days after the FDIC closed IndyMac, the bank reopened under FDIC supervision. More than a hundred depositors lined up to pull their money from the bank's Manhattan Beach branch.
Horn, the single mother who had shown up the previous Friday to find the branch shuttered, transferred all of her funds to a new account at Wells Fargo & Co. She says her new bank allowed her to withdraw just $5,000 and held the balance, $27,000, for two weeks.
``The mere fact that it was from IndyMac, they put a hold on it,'' she says. Wells Fargo spokeswoman Julia Bernard says her bank wouldn't have placed a hold on an IndyMac check unless it was unable to verify it.
`What's Going On?'
Which will be the next bank to fail? Depositors like Capistran and Horn have no way of knowing. Even the experts can be stumped.
``How are people supposed to know what's going on in the depths of the bank's balance sheets when the regulators, as we've learned in this crisis, don't even know?'' Blinder asks.
One warning sign may be the size of a bank's brokered deposits, Shaffer says.
``Banks that are in distress, facing a reluctance by the general public to place money in these banks, may be forced to turn to brokered deposits,'' he says.
Six of the 12 banks across the U.S. that failed this year relied on brokered deposits for more than 15 percent of their customer holdings. The average rate among all U.S. banks is 7.5 percent.
ANB Financial NA of Bentonville, Arkansas, had received 87 percent of its deposits from brokers; Columbian Bank & Trust Co. of Topeka, Kansas, had received 44 percent; and Silver State Bank of Henderson, Nevada, had received 41 percent.
Bite the Dust
In mid-September, investors were signaling that Seattle- based Washington Mutual, the nation's largest thrift, would be the next big lender to bite the dust.
It had reported losses totaling $6.3 billion during the previous three quarters.
WaMu, which has 2,300 branches, has a 98 percent chance of defaulting on its debt over the next five years, according to credit-default-swap traders, as of yesterday.
On Sept. 8, Washington Mutual fired CEO Kerry Killinger and disclosed that the Office of Thrift Supervision had heightened scrutiny of the bank.
Five percent of WaMu's $182 billion of residential mortgage holdings were in default on June 30, according to Moody's. On Sept. 11, Moody's reduced WaMu's senior unsecured debt rating to Ba2 from Baa3.
Since November 2007, Moody's has slashed that rating by six grades, to Ba2 from A2.
Tripled FHLB Loans
WaMu owns $53 billion of option-adjustable-rate mortgages, according to Moody's. Because these mortgages allow the homeowner to skip payments by adding them to their existing loans, WaMu failed to receive about $2.5 billion of interest payments in 2006 and 2007.
As of June 30, WaMu had gathered $34 billion through deposit brokers, which amounted to 18 percent of all its deposits, according to the FDIC. As bad loans grew, the bank raised cash by tripling its borrowing from the FHLBs during a 12-month period to $58.4 billion.
Advances as of June 30 represent 19 percent of WaMu's assets, up from 7 percent a year earlier.
About $45 billion of the deposits at WaMu aren't insured by the FDIC.
Across the U.S., still-standing banks large and small have similarities to the 11 that have failed.
Florida's Largest Bank
BankUnited Financial Corp., based in Coral Gables, Florida, is the state's largest bank. Hard hit by the collapse of the state's real estate market, BankUnited for the first time began using brokered deposits in the quarter ended on June 30.
It raised $268 million through such long-distance deposits in three months, according to its SEC filings, which showed $7.6 billion of total deposits on June 30. It brought in another $506 million the same way during the next six weeks.
BankUnited has borrowed $5.1 billion from the FHLB of Atlanta, amounting to 36 percent of its $14 billion in assets. The bank reported delinquent payments on $982 million, or 8 percent, of its loans as of June 30.
Fifty-eight percent of the bank's loans are option- adjustable-rate mortgages. Customers took advantage of that deferral option in 92 percent of those loans, filings show.
BankUnited reported losses of $117.7 million in the quarter ended in June. On Sept. 5, the OTS reclassified the bank to ``adequately capitalized'' from ``well capitalized.'' Without a waiver, the bank will be banned from receiving brokered deposits.
`Prospects Fraying'
The bank's stock has lost more than half of its value since it began trying unsuccessfully in June to raise $400 million in a stock sale.
``We see the prospects for viability increasingly fraying,'' says analyst David Bishop, who follows the bank at Stifel Nicolaus & Co. in Baltimore. BankUnited spokeswoman Melissa Gracey didn't return calls and e-mails requesting comment.
Investors may or may not be right about which banks will fail next. Only the regulators know, and even they may not be sure. What's in little doubt, though, is that more collapses are on the way.
Banks still hold too much toxic debt, says Kenneth Rogoff, chief economist of the International Monetary Fund from 2001 to 2003.
``Like any shrinking industry, we're going to see the upset of some major players,'' says Rogoff, who's now a finance professor at Harvard University in Cambridge, Massachusetts.
`Doesn't Make Sense'
``The only way to put discipline into the system is to allow some companies to go bust,'' he says. ``You can't just have an industry where they make giant profits or they get bailed out. That doesn't make any sense.''
Horn, the IndyMac depositor, has already experienced the fear of being separated from her life savings and watching hundreds of anxious fellow customers lined up outside her branch -- like a scene from a 1930s newsreel.
Even with FDIC insurance, she no longer takes it for granted that making a bank deposit is risk free.
``I just don't know if any investment -- even a bank deposit -- is safe anymore,'' she says.
To contact the reporter on this story: David Evans in Los Angeles at davidevans@bloomberg.net
Last Updated: September 25, 2008 00:40 EDT
http://www.bloomberg.com/apps/news?pid=20601103&sid=amZxIbcjZISU&refer=us
China Blames Wall Street Meltdown On Fed Overissuance Of Currency...
Saving financial institutions at cost of taxpayer part of wider agenda to increase control over global economy, says Communist state media
Paul Joseph Watson & Yihan Dai
Friday, September 19, 2008
China’s state media today reports on the real reason behind the Wall Street meltdown and a subject that the mainstream US media dare not mention - the Federal Reserve’s overissuance of currency - which the Chinese say is part of a wider agenda to justify increased control over the global economy.
The Bush administration today announced a plan to use hundreds of billions of dollars of taxpayer money to buy up up bad mortgages and other debts. The process of injecting more fiat money into an already over-inflated system had the desired effect - the Dow Jones shot up 450 points - but the dollar, following a brief jump, began to plummet.
According to numerous Chinese state media news sources today, the Federal Reserve’s continued zeal for propping up the market by injecting illusory liquidity is part of an agenda to gain trust and grease the skids for increased government intervention in financial markets.
China Finance , China News and Chaobao Financial News, all state owned media outlets, slammed the Fed for taking action that will only make long term economic conditions worse and devalue the dollar by “creating money that does not exist which leads to the inflation of liquidity,” a policy contrary to China’s position as a holder of vast reserves of US dollars.
The analyst quoted by Chaobao Financial News highlighted “that when there is market failure, the paramount purpose of government intervention should be saving the market for the benefit of the people: Relief, Recovery and then Reform,” and that “Protecting the rights of people who are suffering in the housing market and as a result of high oil prices should be treated as a priority.”
The analyst added that by concentrating on saving just a few large financial companies, the Fed is creating wider financial chaos while arousing anger and suspicion by “only protecting and encouraging large companies’ wrong doing.”
CEIBS Professor of Economics and Finance Xu Xiaonian told a conference yesterday that “The fundamental source of Wall Street’s meltdown is caused by Federal Reserve overissuing currency.” He cautioned that the US government has already exceeded its scope in terms of intervention compared with their usual policy.
Similar sentiments were echoed by economist Zuo Xiaolie, who said that the amount of money injected into the market will have little real impact, but that such measures are a “Narrow minded way that the Federal Reserve uses to diversify the pressure of currency adjustment to other countries, which leads to the devaluation of the dollar, causing imbalance in the global economy.”
“The amount of money that has been put into the market can not fundamentally save the market,” said Xiaolie, adding that the move was merely part of an agenda to “regain the trust and justify future further intervention in the economy.”
On Wednesday, China’s official People’s Daily newspaper, the voice of the ruling Communist party, said that the US had unleashed economic “weapons of mass destruction” and set off a “financial tsunami” by allowing Wall Street lenders to trade in subprime debts and unstable financial derivatives, according to a Press TV report.
China has previously threatened to liquidate its vast holding of US treasuries, amounting to $1.33 trillion, if Washington imposes trade sanctions to force a yuan revaluation. The Communist power has also repeatedly expressed its anger at the Fed’s indifference to the weakening dollar. If China were to dump the dollar it would likely set in motion a chain of events that would lead to a collapse of the greenback.
We know we are in trouble when the Chinese Communist Party sound like bastions of sound money policy and fiscal conservatism in comparison to the Bush administration and the Federal Reserve, who in creating more money out of thin air continue to bail out their friends on Wall Street while the economic future of hundreds of millions of American citizens is sold down the river.
SOURCES
Chaobao Financial News: http://www.usqiaobao.com/zhuanlan/2008-07/24/content_127956.htm
China Finance: http://www.caijing.com.cn/2008-09-18/110013626.html
China News: http://www.fywj.gov.cn/Article.asp?id=3219
Translations provided by Yihan Dai.
http://www.prisonplanet.com/china-blames-wall-street-meltdown-on-fed-overissuance-of-currency.html
Fed holds emergency meeting on market developments
Fri Sep 12, 2008 9:54pm EDT
WASHINGTON (Reuters) - The Federal Reserve Bank of New York held a meeting on Friday evening with top representatives of major financial market firms to discuss recent market developments, a Fed official said.
"Senior representatives of major financial markets met at the Federal Reserve Bank of New York Friday evening to discuss recent market developments," a Fed official told Reuters.
Financial markets have been on tenterhooks over the future of Lehman Brothers Holdings Inc and whether the struggling firm, whose stock value has collapsed, may or may not be able to find a buyer.
The U.S. Treasury and Fed have been involved in talks regarding Lehman's future. Earlier on Friday, a source familiar with the thinking of Treasury Secretary Henry Paulson said Paulson was "adamant" no public funds be put on the line to help facilitate a sale.
(Reporting by Glenn Somerville; Editing by Gary Hill)
http://www.reuters.com/article/newsOne/idUSN1234301220080913
Maximus and NFX Report More High-Grade Results From the Bear Lake Gold Zone at Larder Lake
Thursday September 4, 8:48 am ET
Hole #49 intersects 9.5 meters grading 19.4g/t Au
LONGUEUIL, QUEBEC and TORONTO, ONTARIO--(Marketwire - Sept. 4, 2008) - Maximus Ventures Ltd. ("Maximus") (TSX VENTURE:MXV - News) and NFX Gold Inc. ("NFX") (TSX VENTURE:NFX - News) are pleased to report new results from the follow-up drilling program on the Bear Lake gold zone of the Larder Lake Property located in northeastern Ontario. Hole #49 intersected, at 750 meters vertical depth, 9.5 meters of carbonate-type mineralization grading 19.4 g/t gold, including a section of 6.5 meters grading 27.9 g/t gold. This intercept is located 100 meters down dip and 150 meters to the east of hole #44, which intersected 15.1 meters grading 13.6 g/t gold, as reported in a press release dated June 4, 2008.
The high grade gold intercept in hole #49 confirms the deeper extension and continuity of high-grade gold values along the Bear Lake gold zone to depths of 750 meters vertical, more than 75 meters deeper than any prior intercept. Furthermore, the alteration (albitization, silicification) and the mineralization intersected to date all seem to increase in strength with depth, suggesting the Bear Lake Gold Zone remains open to depth.
"Although our primary target is the flow-type mineralization, we are pleased with the continuity and high grade of the carbonate-style mineralization, now developing as a primary target as well," stated Francois Viens, president and CEO of Maximus. "Both mineralized systems show great strength and continuity and are still open at depth and to the east".
Drilling Strategy
Most of the high-grade intersections obtained to date occur within "carbonate-type" mineralization, and were intersected in drill holes completed from north to south. Testing the parallel "flow-type" mineralization from the north has not been successful below 700 meters vertical and thirteen holes had to be abandoned either for technical problems or because of the strongly altered shear zone that lies between the carbonate-type and flow-type mineralization. However, approximately 60% of the gold produced at the now-closed Kerr Addison mine, located 5 kilometres east of the Bear Lake gold zone came from flow-ore, which historically produced higher and more consistent gold grades than the carbonate-ore (Smith, P., 1991, Archean Au-Ag-(W) Quartz Vein Mineralization within the Larder Lake-Cadillac Break, Kerr-Addison-Chesterville System, North-East Ontario, Master Thesis, U. of Toronto). Considering the significance of both types of mineralization in the exploration model at Bear Lake, the current drill program has been adjusted so that holes designed to test the Bear Lake gold zones at depths below 700 meters vertical are drilled from south to north in order to test the flow-type mineralization (before reaching the shear zone), and from north to south to test the carbonate-type mineralization.
Holes #47, also drilled at Bear Lake, deviated much more than anticipated and intersected 5.5 meters of altered flow-type mineralization at a depth of 415 meters vertical, which assayed 0.5g/t of gold, and intersected 2.0 meters of strongly altered carbonate-type mineralization grading 2.5g/t of gold at 600 meters vertical. These highly anomalous gold values, coupled with the strong alteration encountered in all the holes drilled below 400 meters, demonstrate the presence of a large gold mineralized system in the Bear Lake area.
Assay results from holes #46 and #48 drilled, at Fernland (located 2.3 kilometers west of Bear Lake), were also received and are reported in Table 1. Both holes tested favourable high-iron mafic volcanics (possible "flow-type" mineralization), west of the Fernland shaft and down-plunge from hole NFX06-15 (5.3 meters grading 1.8g/t gold, including 1.5 meters which assayed 4.7g/t gold). Although sub-economic, the strength of the alteration observed in the holes, and the significant widths of the flow-type mineralization intersected, seem to indicate a strong mineralized system below 400 meters vertical, which opens up a large area that warrants additional deeper drilling.
Highlights of recent results are presented below and complete results are presented in Table 1 available at the following address: http://media3.marketwire.com/docs/maximus_0904.pdf
Highlights of Recent Drilling Results at Larder Lake are available at the following address: http://media3.marketwire.com/docs/maximus_1_0904.pdf
Project Update
Three drill rigs are currently active at the Larder Lake Gold Project. Of the budgeted 43,000-meter drilling program that started in September 2007 at Larder Lake, a total of 25,000 meters of diamond drilling has been completed to date, in 45 holes. The drilling program will continue to test the Bear Lake gold zone with two drill rigs directed at down-plunge extensions of the high grade gold mineralization discovered to date, and a third drill rig is directed at strike extensions, all testing to a vertical depth of over 1,000 meters, using a 125 meter to 150 meter hole spacing. The 2008 drilling program will also test other promising gold targets on the Larder Lake Property. These targets are all located within the same rock units that host most of the gold occurrences along the Cadillac-Larder Lake Break, including the historic Kerr-Addison mine.
Larder Lake Property
Maximus has a 60% interest in the Cheminis, Bear Lake and Fernland projects and a 45% interest in the Barber Larder project, which together comprise the Larder Lake Gold Project located in northeastern Ontario. NFX has a 40% and 55% interest, respectively, in these projects.
NFX-Maximus Merger
As previously announced, Maximus and NFX have entered into a definitive arrangement agreement providing for the acquisition by NFX of all outstanding common shares of Maximus (the "Business Combination") in consideration of which each shareholder of Maximus will receive one (1) common share of NFX pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). Currently, Maximus has approximately 74 million common shares issued and outstanding while NFX has approximately 53 million common shares issued and outstanding. Based on the one for one share exchange ratio, the Maximus and NFX shareholders will own approximately 58% and 42%, respectively, of the combined common shares outstanding. The Arrangement must be approved by two-thirds of the votes cast by shareholders present and voting at the special meeting of Maximus shareholders called to consider the Arrangement.
Maximus and NFX currently expect to hold their respective shareholder meetings on September 11, 2008 and to close the transaction on or about September 16, 2008.
The completion of the Business Combination is subject to the approval of the Supreme Court of British Columbia, the TSX Venture Exchange and all applicable regulatory authorities, and is further subject to other customary conditions set out in the arrangement agreement.
Quality Assurance and Control
As part of its QA/QC program, Maximus carried out check assays on the high-grade intersections with no discrepancies found in the assay results. The assays reported are the uncut average grades of all determinations from the same samples. The analytical method for gold is one (1) assay-ton fire assay, with gravimetric finish on all samples. All assays reporting over 2 g/t Au are automatically re-checked using the rejects. Assaying is done at Polymet Labs in Cobalt, Ontario. The quality control process includes inserting blank samples and certified standards within each batch sent to the laboratory.
Qualified Person
The technical content of the information contained in this news release was reviewed and approved by Mr. Bernard Boily, P. Geo., and Maximus' Vice President of Exploration. Mr. Boily is responsible for supervising the drilling program and is a qualified person under National Instrument 43-101.
Forward-looking Statements
This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Maximus and NFX believes, expects or anticipates will or may occur in the future, are forward-looking statements. These forward-looking statements reflect the current internal projections, expectations or beliefs of management of Maximus and NFX based on information currently available to them. Forward-looking statements are subject to a number of known and unknown risks and uncertainties beyond Maximus and NFX's control including uncertainties related to the completion of the proposed business combination, potential mineralization, exploration results, completion of work program, and availability of equipment necessary for the drilling program and future plans and objectives of the companies. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed from time to time in filings made by the companies with securities regulatory authorities. This cautionary statement qualifies all forward-looking statements herein. Accordingly, readers should not place undue reliance on forward-looking statements. Maximus and NFX undertake no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Francois Viens
Maximus Ventures Ltd.
President and CEO
450-677-1009
450-677-2601 (FAX)
www.maximusventures.com
Gerri Paxton/Louise Quinn
Maximus Ventures Ltd.
Investor Relations
450-677-2054/677-3523
gpaxton@maximusventures.com
lquinn@maximusventures.com
Thomas G. Larsen
NFX Gold Inc.
President and CEO
416-360-8006 / Toll Free: 800-360-8006
416-361-1333 (FAX)
www.nfxgold.com
--------------------------------------------------------------------------------
Source: Maximus Ventures Ltd., NFX Gold Inc.
http://biz.yahoo.com/ccn/080904/200809040483761001.html?.v=1
France issues gold, silver coins of high face value
2008-08-30 12:47:10
PARIS, Aug. 29 (Xinhua) -- France has decided to issue gold and silver euro coins of high face value, said a communique released by the Post Office of France and the Mint of France Friday.
Local media reported that 2 million silver coins with a face value of five euros each are about to be put up for sale in 1,000 post offices throughout the country as of Sept. 1.
Also as of Sept. 1, subscribers can book gold coins with a 100-euro face value in post offices. According to the communique, 15,000 such coins will be issued.
The communique also said 15-euro silver coins will be rolled out on Sept. 15 as 10-euro and 25-euro silver coins and 250-euro gold coins will be launched in 2009 and 50-euro silver coins and 500-euro gold coins in 2010.
Editor: Sun
http://news.xinhuanet.com/english/2008-08/30/content_9739210.htm
Russia may cut off oil flow to the West
By Ambrose Evans-Pritchard
Last Updated: 9:26pm BST 28/08/2008
Fears are mounting that Russia may restrict oil deliveries to Western Europe over coming days, in response to the threat of EU sanctions and Nato naval actions in the Black Sea.
Any such move would be a dramatic escalation of the Georgia crisis and play havoc with the oil markets.
Reports have begun to circulate in Moscow that Russian oil companies are under orders from the Kremlin to prepare for a supply cut to Germany and Poland through the Druzhba (Friendship) pipeline. It is believed that executives from lead-producer LUKoil have been put on weekend alert.
"They have been told to be ready to cut off supplies as soon as Monday," claimed a high-level business source, speaking to The Daily Telegraph. Any move would be timed to coincide with an emergency EU summit in Brussels, where possible sanctions against Russia are on the agenda.
Any evidence that the Kremlin is planning to use the oil weapon to intimidate the West could inflame global energy markets. US crude prices jumped to $119 a barrel yesterday on reports of hurricane warnings in the Gulf of Mexico, before falling back slightly.
Global supplies remain tight despite the economic downturn engulfing North America, Europe and Japan. A supply cut at this delicate juncture could drive crude prices much higher, possibly to record levels of $150 or even $200 a barrel.
With US and European credit spreads already trading at levels of extreme stress, a fresh oil spike would rock financial markets. The Kremlin is undoubtedly aware that it exercises extraordinary leverage, if it strikes right now.
Such action would be seen as economic warfare but Russia has been infuriated by Nato meddling in its "backyard" and threats of punitive measures by the EU. Foreign minister Sergei Lavrov yesterday accused EU diplomats of a "sick imagination".
Armed with $580bn of foreign reserves (the world's third largest), Russia appears willing to risk its reputation as a reliable actor on the international stage in order to pursue geo-strategic ambitions.
"We are not afraid of anything, including the prospect of a Cold War," said President Dmitry Medvedev.
The Polish government said yesterday that Russian deliveries were still arriving smoothly. It was not aware of any move to limit supplies. The European Commission's energy directorate said it had received no warnings of retaliatory cuts.
Russia has repeatedly restricted oil and gas deliveries over recent years as a means of diplomatic pressure, though Moscow usually explains away the reduction by referring to technical upsets or pipeline maintenance.
Last month, deliveries to the Czech Republic through the Druzhba pipeline were cut after Prague signed an agreement with the US to install an anti-missile shield. Czech officials say supplies fell 40pc for July. The pipeline managers Transneft said the shortfall was due to "technical and commercial reasons".
Supplies were cut to Estonia in May 2007 following a dispute with Russia over the removal of Red Army memorials. It was blamed on a "repair operation". Latvia was cut off in 2005 and 2006 in a battle for control over the Ventspils terminals. "There are ways to camouflage it," said Vincent Sabathier, a senior fellow at the Centre for Strategic and International Studies in Washington.
"They never say, 'we're going to cut off your oil because we don't like your foreign policy'."
A senior LUKoil official in Moscow said he was unaware of any plans to curtail deliveries. The Kremlin declined to comment.
London-listed LUKoil is run by Russian billionaire Vagit Alekperov, who holds 20pc of the shares. LUKoil produces 2m barrels per day (b/d), or 2.5pc of world supply. It exports one fifth of its output to Germany and Poland.
Although Russia would lose much-needed revenue if it cut deliveries, the Kremlin might hope to recoup some of the money from higher prices. Indeed, it could enhance income for a while if the weapon was calibrated skilfully. Russia exports roughly 6.5m b/d, supplying the EU with 26pc of its total oil needs and 29pc of its gas.
A cut of just 1m b/d in global supply – and a veiled threat of more to come – would cause a major price spike.
It is unclear whether Saudi Arabia, Kuwait or other Opec producers have enough spare capacity to plug the shortfall. "Russia is behaving in a very erratic way," said James Woolsey, the former director of the CIA. "There is a risk that they might do something like cutting oil to hurt the world's democracies, if they get angry enough."
Mr Woolsey said the rapid move towards electric cars and other sources of power in the US and Europe means Russia's ability to use the oil weapon will soon be a diminishing asset. "Within a decade it will be very hard for Russia to push us around," he told The Daily Telegraph.
It is widely assumed that Russia would cut gas supplies rather than oil as a means of pressuring Europe. It is very hard to find alternative sources of gas. But gas cuts would not hurt the United States. Oil is a better weapon for striking at the broader Western world.
The price is global. The US economy could suffer serious damage from the immediate knock-on effects.
While the Russian state is rich, the corporate sector is heavily reliant on foreign investors. The internal bond market is tiny, with just $60bn worth of ruble issues.
Russian companies raise their funds on the world capital markets. Foreigners own half of the $1 trillion debt. Michael Ganske, Russia expert at Commerzbank, said the country was now facing a liquidity crunch. "Local investors are scared. They can see the foreigners leaving, so now they won't touch anything either. The impact on the capital markets is severe," he said.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/29/cnrussia129.xml
Resource fund ‘loves' gold and platinum market ‘fantastic' - JP Morgan
JP Morgan Global Natural Resources Fund manager Ian Henderson says he expects gold to scale new peaks and that platinum demand doubts overdone.
Author: Jan Harvey and Anna Stablum
Posted: Wednesday , 27 Aug 2008
LONDON (Reuters) -
Gold prices are likely to scale new peaks as market fundamentals tighten because producers need at least a 20 percent rise in bullion prices just to make new investment viable, a leading fund manager said on Wednesday.
"Gold mining is a very complicated and expensive business and you really need to see the gold price a lot higher before you see any increase in gold production," Ian Henderson, who manages around $5 billion at JP Morgan's Global Natural Resources fund, told Reuters.
"(Gold) should have a sustained price level of over $1,200 an ounce before we see any significant new mine build," he said.
His concerns over miners' margins echoed those of Gold Fields chief executive Nick Holland, who told Mining Weekly the company would need to see a gold price of $2,000 an ounce to replace its infrastructure.
"We love gold. We have a substantial part of our portfolio in gold mining companies," added Henderson. "I think the gold price will surpass its previous peak."
Gold prices hit a high of $1,030.80 an ounce in March.
The platinum market was also looking "fantastic", Henderson said. Prices have slipped by more than a third since they struck a record high of $2,290 an ounce in March, leading a number of analysts to suggest the precious metal may have been oversold.
"The platinum market is going to be in deficit until probably 2010 -- and that means prices will continue to be high," said Henderson.
Fears over the outlook for the automotive sector, which consumes around a third of the world's platinum each year for use in catalytic converters, may have been overstated, he said.
"The changes in emission legislation for buses and commercial vehicles within Europe is going to be rolled out across the planet," he said.
Meanwhile global production, which is expected to be curbed this year by an ongoing power shortage in major producer South Africa, is expected to remain under pressure.
Power shortages in the country, which produces four out of every five ounces of the world's platinum, will not be resolved until 2012, he said.
(Editing by Christopher Johnson)
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=60833&sn=Detail
U.S., Europe, Japan Devised Plan to Prop Up Dollar, Nikkei Says
By Timothy R. Homan
Aug. 27 (Bloomberg) -- Finance officials from the U.S., Japan and Europe in mid-March drew up plans to strengthen the U.S. dollar following troubles at Bear Stearns Cos., Nikkei English News reported, citing unnamed sources.
The intervention designed by the U.S. Treasury Department, Japan's Finance Ministry and the European Central Bank called for the central banks to purchase dollars and sell euros and yen, with Japan providing the yen needed for the currency swap if the greenback's value dropped significantly, the news service said.
The three groups, which considered making an emergency statement through the Group of Seven industrial nations, did not stipulate a specific exchange rate for the potential intervention, nor did they detail the amount of money to be used, Nikkei said.
ECB spokeswoman Eszter Miltenyi and Treasury spokeswoman Brookly McLaughlin declined to comment on the report.
To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net
Last Updated: August 27, 2008 14:06 EDT
http://www.bloomberg.com/apps/news?pid=20601083&sid=aafNFhZiOg.w&refer=currency
Bank borrowing from ECB is out of control
By Ambrose Evans-Pritchard
Last Updated: 3:06pm BST 21/08/2008
The European Central Bank has issued the clearest warning to date that it cannot serve as a perpetual crutch for lenders caught off-guard by the severity of the credit crunch.
Not Wellink, the Dutch central bank chief and a major figure on the ECB council, said that banks were becoming addicted to the liquidity window in Frankfurt and were putting the authorities in an invidious position.
"There is a limit how long you can do this. There is a point where you take over the market," he told Het Finacieele Dagblad, the Dutch financial daily.
"If we see banks becoming very dependent on central banks, then we must push them to tap other sources of funding," he said.
While he did not name the chief culprits, there are growing concerns about the scale of ECB borrowing by small Spanish lenders and 'cajas' with heavy exposed to the country's property crash. Dutch banks have also been hungry clients at the ECB window.
One ECB source told The Daily Telegraph that over-reliance on the ECB funds has become an increasingly bitter issue at the bank because the policy amounts to a covert bail-out of lenders in southern Europe.
"Nobody dares pinpoint the country involved because as soon as we do it will cause a market reaction and lead to a meltdown for the banks," said the source.
This "soft bail-out" is largely underwritten by German and North European taxpayers, though it is occurring in a surreptitious way. It has become a neuralgic issue for the increasingly tense politics of EMU.
The latest data from the Bank of Spain shows that the country's banks have increased their ECB borrowing to a record €49.6bn (£39bn). A number have been issuing mortgage securities for the sole purpose of drawing funds from Frankfurt.
These banks are heavily reliant on short-term and medium funding from the capital markets. This spigot of credit is now almost entirely closed, making it very hard to roll over loans as they expire.
The ECB has accepted a very wide range of mortgage collateral from the start of the credit crunch. This is a key reason why the eurozone has so far avoided a major crisis along the lines of Bear Stearns or Northern Rock.
While this policy buys time, it leaves the ECB holding large amounts of questionable debt and may be storing up problems for later.
The practice is also skirts legality and risks setting off a political storm. The Maastricht treaty prohibits long-term taxpayer support of this kind for the EMU banking system.
Few officials thought this problem would arise. It was widely presumed that the capital markets would recover quickly, allowing distressed lenders to return to normal sources of funding. Instead, the credit crunch has worsened in Europe.
Not to miss out, Nationwide recently announced that it was setting up operations in Ireland, partly in order to be able to take advantage of ECB liquidity if necessary. Any bank can tap ECB funds if they have a registered branch in the eurozone, although collateral must be denominated in euros.
Jean-Pierre Roth, head of the Swiss National Bank, complained this week that lenders were getting into the habit of shopping for funds from those authorities that offer the best terms. The practice is playing havoc monetary policy.
"What we should avoid is some kind of arbitrage by banks, which say they are going to go to central bank X, instead of central bank Y, because conditions are more attractive," he said.
http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/08/21/bcnecb121.xml
UPDATE 2-US Mint suspends red-hot Eagle gold coins
Thu Aug 21, 2008 4:39pm EDT
By Frank Tang
NEW YORK, Aug 21 (Reuters) - A shortage of American Eagle bullion coins due to soaring demand following a recent sharp retreat in gold prices has forced the U.S. Mint to temporarily suspend sales of the popular coins.
"Due to the unprecedented demand for American Eagle gold one-ounce bullion coins, our inventories have been depleted. We are therefore temporarily suspending all sales of these coins," the U.S. Mint told authorized coin dealers in a memorandum dated on Friday.
Michael White, a U.S. Mint spokesman, said that only the one-ounce 22-karat American Eagle coins are sold out, but the half-ounce, quarter-ounce, and 1-10th ounce coins as well as the less popular 24-karat American Buffalo coins are still available.
"We are working diligently to build up our inventory and hope to resume sales shortly," the Mint said.
Coin dealers from the United States to Canada reported a surge in buying of bullion coins and other gold products since prices plummeted from highs last month. The buying spree contributed to supply fears and helped boost gold prices sharply on Thursday.
Rand LeShay, senior vice president of Los Angeles-based A-Mark Precious Metals, an authorized purchaser for the U.S. Mint, said that there was a big spike in demand for gold and silver coins and ingots after a recent price tumble.
He said that A-Mark currently has no one-ounce American Eagle gold coins for its customers.
"Until the U.S. Mint can supply us with more coins, we won't be able to supply any to our customers," LeShay said.
The move by the U.S. Mint to halt sales caught market participants by surprise as it came at a time when the metal was sharply falling, rather than rising.
In contrast, the Mint needed to allocate its Silver Eagle coins to dealers due to overwhelming demand as the price of silver soared earlier this year.
Produced from gold mined in the United States, the American Eagles have been novel items among collectors and investors since their introduction in 1986. Each coin has a face value of $50 but it is sold by authorized dealers at a premium to the price of gold.
COIN DEMAND SPIKES
Blanchard and Co., one of the largest U.S. retail dealers of rare coins and precious metals, said the American Eagle and American Buffalo one-ounce gold coins are sold out.
"Nobody has the Eagles or the Buffaloes right now. We bought 2,000 ounces late last week, and those were the last 2,000 ounces that we can find in the marketplace," said David Beahm, vice president of New Orleans-based Blanchard.
"If we don't have them, nobody has them," Beahm said. He added that he has been recommending customers to buy the one-ounce Canadian Gold Maple Leaf gold coin instead.
Jon Nadler, senior analyst at top Canadian dealer Kitco, said that the shortage of the Eagle coins could be due to a combination of high demand and a temporary lack of supply in coin blank, which is a flat metal disk used to mint coins.
On Thursday, spot gold <XAU=> surged as much as 3 percent to $839 an ounce, while U.S. gold futures for December delivery GCZ8 scaled a one-week high at $845 an ounce. Gold hit a five-month peak of $987.75 on July 15, and it set an all-time record of $1,030.80 on March 17.
In hindsight, A-Mark's LeShay said that neither the U.S. Mint nor the coin dealers could anticipate the coin shortage.
"This kind of spike in demand is something no one can foresee, and no business runs itself waiting for this to happen," LeShay said. (Additional reporting by Jasmin Melvin and David Lawder in Washington; editing by Jim Marshall)
© Thomson Reuters 2008 All rights reserved
http://www.reuters.com/article/companyNewsAndPR/idUSN2151501220080821?sp=true
Maximus and NFX Announce Arrangement Agreement
Tuesday July 29, 8:30 am ET
TORONTO, ONTARIO AND LONGUEUIL, QUEBEC--(Marketwire - July 29, 2008) - Further to their June 13, 2008 news release, Maximus Ventures Ltd. ("Maximus") (TSX VENTURE:MXV - News) and NFX Gold Inc. ("NFX") (TSX VENTURE:NFX - News) are pleased to announce that they have entered into a definitive arrangement agreement (the "Arrangement Agreement") providing for the acquisition by NFX of all outstanding common shares of Maximus in consideration of which each shareholder of Maximus will receive one (1) common share of NFX pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). Under the terms of the Arrangement, each holder of a Maximus option will receive a replacement option to acquire one (1) common share of NFX and each holder of a Maximus warrant will receive, upon subsequent exercise of each warrant, one (1) common share of NFX. The board of directors of each of Maximus and NFX have unanimously approved the Arrangement and the Arrangement Agreement.
Currently, Maximus has approximately 74 million common shares issued and outstanding while NFX has approximately 53 million common shares issued and outstanding. Based on the one for one share exchange ratio, the Maximus and NFX shareholders will own approximately 58% and 42%, respectively, of the combined common shares outstanding.
The Arrangement must be approved by two-thirds of the votes cast by shareholders present and voting at the special meeting of Maximus shareholders called to consider the Arrangement. The board of directors of Maximus has unanimously resolved to recommend that its shareholders vote their securities in favour of the Arrangement. NFX will hold a special meeting of its shareholders to consider, among other things, the issuance of shares to the Maximus shareholders as consideration for the Arrangement. Maximus and NFX have provided notice of, and expect to hold, their respective shareholder meetings on September 11, 2008, and the record date for each respective shareholder meeting is August 12, 2008.
The Arrangement is subject to the approval of the Supreme Court of British Columbia, the TSX Venture Exchange and all applicable regulatory authorities. Completion of the Arrangement is further subject to additional conditions set out in the Arrangement Agreement. Maximus and NFX expect to close the transaction on or about September 16, 2008.
Under the terms of the Arrangement Agreement, Maximus and NFX have each agreed that neither party will solicit or initiate inquiries or proposals regarding alternative transactions, including, but not limited to, mergers, take-over bids or the sale of material assets. The Arrangement Agreement provides for a mutual expense reimbursement fee of $250,000 if the Arrangement is not completed in certain circumstances.
As previously announced on June 13, 2008, the objective of the combination of Maximus and NFX is to create a larger, stronger company that will be better positioned to exploit the tremendous upside potential of the Larder Lake gold project, which is the primary asset of both Maximus and NFX. The Arrangement will consolidate and increase the combined company's land positions in the Larder Lake area, as well as create a higher profile company within the financial community.
Subject to the requisite securityholder approvals of each of Maximus and NFX, the board of directors of the company resulting from the combination of Maximus and NFX will consist of five nominees from Maximus and three nominees from NFX. David Fennell, currently Chairman of Maximus, will become Chairman and Thomas Larsen, currently CEO of NFX, will become Vice Chairman. Francois Viens, currently President and CEO of Maximus, will become President and CEO.
Dundee Securities Corporation is acting as financial advisor to Maximus and Primary Capital Inc. is acting as financial advisor to NFX.
A copy of the Arrangement Agreement will be filed on SEDAR and will be available for viewing under the profiles of Maximus and NFX at www.sedar.com.
Forward-looking Statements
This news release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this press release includes forward-looking statements regarding the intended business combination of NFX and Maximus. These forward-looking statements reflect the current internal projections, expectations or beliefs of NFX and Maximus, based on information currently available to them. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by NFX and Maximus with securities regulatory authorities, that may cause actual outcomes to differ materially from those discussed in the forward-looking statements. The completion of the proposed business combination is subject to a number of risks, including, without limitation, the shareholders of NFX and Maximus not approving the transaction or required regulatory or court approvals not being obtained. Even if the business combination is completed, which cannot be guaranteed, anticipated synergies and efficiencies or other intended benefits of the transaction may not be realized, and the prospects of the combined entity will remain subject to all the general risks associated with mineral exploration and public securities markets.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
Contact:
Francois Viens
Maximus Ventures Ltd.
President and CEO
450-677-1009
450-677-2601 (FAX)
www.maximusventures.com
Investor Relations
Maximus Ventures Ltd.
Gerri Paxton/Louise Quinn
450-677-2054/677-3523
gpaxton@maximusventures.com
lquinn@maximusventures.com
Thomas G. Larsen
NFX Gold Inc.
President and CEO
416-360-8006 or Toll Free: 800-360-8006
416-361-1333 (FAX)
www.nfxgold.com
--------------------------------------------------------------------------------
Source: Maximus Ventures Ltd., NFX Gold Inc.
http://biz.yahoo.com/ccn/080729/200807290476567001.html?.v=1
A brief history of the Unity Gold Mine. MXV has a 60% option.
The Warren Minerals District was discovered in 1862. Gold production of the district has been estimated at $255 million. High grade ore was exhibited at International World Fairs and Exhibitions. The richest mines in the district were owned by Unity Gold Production Company. The Warren Times stated that “Unity Gold Mines rank among the richest mines in Idaho” and in 1896 “An ore specimen as large as a man’s body assaying $11,155 (540 oz/gold/ton @ $20.67/oz) was shipped to the Boise Stock exchange”. The Lindgren Report (1900 USGS) stated that Unity’s Little Giant mine averaged 5.6 oz/gold/ton and 30/oz silver.
The Unity properties, under the name of Unity Gold Production Company, were fully operational and listed on the NYSE prior to 1942 with a high of $14 per share and paid dividends for years. The properties have not operated since being closed by the U.S. Government for the WW2 war effort.
Website hasn't been updated to reflect MXV's involvement, still relevent info.
http://www.unitygoldsilvermines.com/