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Gold Is Cheap, Yamada, Banks Assert as Sales Pared (Update2)
By Pham-Duy Nguyen
Dec. 11 (Bloomberg) -- Just because gold is down 14 percent from its high of $732 an ounce on May 12, doesn't mean the rally that began six years ago is coming to an end anytime soon.
The swooning U.S. dollar, which has become a proxy for the slowing American economy and the nation's humiliating lack of success arranging regime change in Iraq, banning weapons of mass destruction in North Korea and Iran and reducing its trade and budget deficits, is making gold Wall Street's darling again for 2007.
``Gold is the purest play against the dollar,'' said Louise Yamada, managing director of Yamada Technical Research Advisors LLC in New York, who sees gold surpassing $730 next year on its way to $3,000 within a decade. Yamada, the former head of technical research at Citigroup Inc., proclaimed gold cheap in 2001 when it fetched $279.
She now has lots of company among the world's biggest financial institutions. Deutsche Bank AG's chief metals economist, Peter Richardson, made gold his favorite pick for 2007. JPMorgan Chase & Co. analysts John Normand and Jon Bergtheil on Dec. 7 said only corn could rival gold as the best bet while Merrill Lynch & Co. analyst Michael Jalonen elevated gold's value through 2010.
``If you can only make one commodity investment,'' gold is the ``choice for 2007,'' said Richardson from his office in Melbourne.
That's partly because five of the past six bear markets for the dollar led to an increase in gold.
Dollar's Slide
The U.S. currency started gasping last February against the Euro and dropped 13.8 percent since then during what has been the worst American housing market in 15 years. On a trade- weighted basis, it has lost 6 percent of its value and is headed for its biggest annual drop since 2004.
Gold, up 22 percent in 2006, is poised for its sixth straight annual gain. The streak is unmatched since 1971 when gold was freed from its peg to the dollar after the U.S. government said it would no longer exchange its currency for the metal.
From the end of World War II, the dollar was fixed at $35 per ounce of gold. In 1934, gold rose to $35 per ounce from $20.67 after passage of the Gold Reserve Act in January that year.
Prices have jumped 131 percent since the end of 2000. The last such rally was in 1979, when gold advanced to $541 from $229 a year earlier and was headed to a record $850 in January 1980.
Breaking Gold Link
To be sure, there are enough skeptics to make the betting on gold controversial.
``It's rare that an asset outperforms others consistently year on year,'' said Andrew Kinsey at Johannesburg-based Craton Capital, whose $267 million precious-metals fund rose 51 percent this year. ``The dollar-gold relationship may break down next year. Geopolitical risks and energy prices could rise to the forefront and impact gold more than the value of the dollar.''
The U.S. dollar will rebound in 2007, said Joe Prendergast, global head of currency strategy at Credit Suisse in London, during a recent radio interview with ``Bloomberg on the Economy with Tom Keene.'' He predicts a 3 percent appreciation for the dollar by December 2007.
Some analysts say the current consensus that predicts no end to the dollar's weakness is wrong. ``The dollar is completely undervalued,'' said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures Ltd. in Tokyo. ``Metal prices are hitting the tops. This month and next January, base and precious metals prices will go down.''
Gold Rallies
Investors who sell assets denominated in U.S. currency often buy gold. Declines of more than 20 percent for the dollar against six major currencies led to a gold rally of 22 percent from January 1971 to July 1973 and 95 percent from June 1976 to October 1978.
A tumbling dollar caused the metal to rise 40 percent from February 1985 to the end of 1987, 6 percent from June 1989 to September 1992 and 83 percent from July 2001 to December 2004.
Gold's $75 billion market, a fraction of the $2 trillion traded daily in foreign exchange, is getting a lift from widening budget and trade deficits that undermine the dollar. The International Monetary Fund estimates the U.S. current account deficit will expand 9.8 percent to $869.1 billion in 2006.
Tight Supply
``Gold is probably the most straightforward investment to go with in this environment because of its consistent inverse relationship to the dollar,'' said Yamada, voted Wall Street's best technical analyst from 2001 to 2004 in surveys by Institutional Investor magazine. ``Other countries are trying to diversify their dollar holdings. They're buying gold and anything they can to get out of the dollar.''
JPMorgan Chase's Normand and Bergtheil told clients that gold and corn will offer the best opportunities among commodity investments next year because of tight supply and a weakening dollar. The London-based analysts raised their estimate of average gold prices next year by 11 percent to $678 an ounce. Prices in 2008 will average $725 an ounce, they wrote.
``Gold is the only metal, base or precious, which will see no meaningful increase in mining supply next year,'' the analysts wrote, estimating that supply will grow by 1 percent.
Merrill's Jalonen raised his projections for gold in 2008 to $650 an ounce from $600, and 2009 was increased to $625 an ounce from $600. The Toronto-based analyst maintained his 2007 projection for a rally to an average of $675 an ounce ``due to a rebound in gold fabrication demand for bullion, lower central bank sales and continued growth in investment demand.''
Central Bank Sales
Sales of gold by central banks fell 31 percent in the third quarter to 59 metric tons from a year ago, according to the World Gold Council. European Central Bank members this year failed to meet the 500-ton quota for gold sales under the second so-called Central Bank Gold Agreement.
Federal Reserve Chairman Ben S. Bernanke in April told Congress that he looks at gold prices on his computer screen ``every day'' in assessing inflation expectations. Inflation, using the Fed's preferred index that subtracts food and energy from consumer spending, was 2.4 percent for the year ending in October.
``There's information in gold prices as there is in other commodity prices,'' he said. Rising gold prices reflect inflation concern, ``but clearly, a factor in the gold price has got to be global geopolitical uncertainty and the view of some investors that, given what's going on in the world today, that gold is a safe haven investment.''
Gold Outperforms
A slowing economy may force the Federal Reserve to cut interest rates next year for the first time since June 2003, curbing investment in U.S. assets. The Fed has kept its benchmark rate at 5.25 percent since June, while the ECB on Dec. 7 raised rates for a sixth time in a year to 3.5 percent.
Gold has also produced higher returns than the Standard and Poor's 500 Index, up 13 percent this year. The benchmark 10-year U.S. Treasury rose 2.8 percent. The Reuters-Jefferies CRB Commodity Price Index is down 5.4 percent, led by declines in natural gas, sugar, cotton and gasoline.
International purchases of U.S. long-term financial assets have already begun to slow. Investors in September reduced their net holdings of government debt for the first time since February 2003, the Treasury Department said on Nov. 16.
Foreign buying of stocks, notes and bonds declined to a net $65.1 billion after surging to a record $114.4 billion in August. Japan, the largest holder of U.S. Treasury securities, major oil-producing nations and Caribbean investors scaled back their purchases.
Relative Value
Gold remains cheap relative to other assets. The record high of $850 an ounce, reached 26 years ago, is equal to $2,100 in today's dollars after adjusting for inflation. The cost of an ounce today is equal to about 10.3 barrels of oil, compared with 23 barrels in 1980.
``Prices can only go higher from here,'' reaching $800 next year and $1,000 by the time U.S. President George W. Bush leaves office in January 2009, said Frank Holmes, chief executive officer of U.S. Global Investors Inc. in San Antonio. His $875 million World Precious Minerals Fund has gained 58 percent this year. ``Gold is one of my favorite picks for next year, along with platinum and uranium.''
Twelve of 30 traders, investors and analysts surveyed by Bloomberg from Sydney to Chicago on Dec. 7 and Dec. 8 advised buying gold, which fell 3 percent last week in New York to $631 an ounce, the first decline in three weeks. Ten respondents said to sell the metal, and eight were neutral.
Prices fell 50 cents to $630.70 on ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
``A dollar is definitely going to be worth less in one hundred years than it is today,'' said Graham Birch, who helps manage $27 billion at BlackRock Investment Management in London. ``An ounce of gold will still be an ounce of gold.''
To contact the reporters on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net ;
Last Updated: December 11, 2006 07:21 EST
http://www.bloomberg.com/apps/news?pid=20601083&sid=afit3b7SA.kw&refer=currency
Gold Is Cheap, Yamada, Banks Assert as Sales Pared (Update2)
By Pham-Duy Nguyen
Dec. 11 (Bloomberg) -- Just because gold is down 14 percent from its high of $732 an ounce on May 12, doesn't mean the rally that began six years ago is coming to an end anytime soon.
The swooning U.S. dollar, which has become a proxy for the slowing American economy and the nation's humiliating lack of success arranging regime change in Iraq, banning weapons of mass destruction in North Korea and Iran and reducing its trade and budget deficits, is making gold Wall Street's darling again for 2007.
``Gold is the purest play against the dollar,'' said Louise Yamada, managing director of Yamada Technical Research Advisors LLC in New York, who sees gold surpassing $730 next year on its way to $3,000 within a decade. Yamada, the former head of technical research at Citigroup Inc., proclaimed gold cheap in 2001 when it fetched $279.
She now has lots of company among the world's biggest financial institutions. Deutsche Bank AG's chief metals economist, Peter Richardson, made gold his favorite pick for 2007. JPMorgan Chase & Co. analysts John Normand and Jon Bergtheil on Dec. 7 said only corn could rival gold as the best bet while Merrill Lynch & Co. analyst Michael Jalonen elevated gold's value through 2010.
``If you can only make one commodity investment,'' gold is the ``choice for 2007,'' said Richardson from his office in Melbourne.
That's partly because five of the past six bear markets for the dollar led to an increase in gold.
Dollar's Slide
The U.S. currency started gasping last February against the Euro and dropped 13.8 percent since then during what has been the worst American housing market in 15 years. On a trade- weighted basis, it has lost 6 percent of its value and is headed for its biggest annual drop since 2004.
Gold, up 22 percent in 2006, is poised for its sixth straight annual gain. The streak is unmatched since 1971 when gold was freed from its peg to the dollar after the U.S. government said it would no longer exchange its currency for the metal.
From the end of World War II, the dollar was fixed at $35 per ounce of gold. In 1934, gold rose to $35 per ounce from $20.67 after passage of the Gold Reserve Act in January that year.
Prices have jumped 131 percent since the end of 2000. The last such rally was in 1979, when gold advanced to $541 from $229 a year earlier and was headed to a record $850 in January 1980.
Breaking Gold Link
To be sure, there are enough skeptics to make the betting on gold controversial.
``It's rare that an asset outperforms others consistently year on year,'' said Andrew Kinsey at Johannesburg-based Craton Capital, whose $267 million precious-metals fund rose 51 percent this year. ``The dollar-gold relationship may break down next year. Geopolitical risks and energy prices could rise to the forefront and impact gold more than the value of the dollar.''
The U.S. dollar will rebound in 2007, said Joe Prendergast, global head of currency strategy at Credit Suisse in London, during a recent radio interview with ``Bloomberg on the Economy with Tom Keene.'' He predicts a 3 percent appreciation for the dollar by December 2007.
Some analysts say the current consensus that predicts no end to the dollar's weakness is wrong. ``The dollar is completely undervalued,'' said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures Ltd. in Tokyo. ``Metal prices are hitting the tops. This month and next January, base and precious metals prices will go down.''
Gold Rallies
Investors who sell assets denominated in U.S. currency often buy gold. Declines of more than 20 percent for the dollar against six major currencies led to a gold rally of 22 percent from January 1971 to July 1973 and 95 percent from June 1976 to October 1978.
A tumbling dollar caused the metal to rise 40 percent from February 1985 to the end of 1987, 6 percent from June 1989 to September 1992 and 83 percent from July 2001 to December 2004.
Gold's $75 billion market, a fraction of the $2 trillion traded daily in foreign exchange, is getting a lift from widening budget and trade deficits that undermine the dollar. The International Monetary Fund estimates the U.S. current account deficit will expand 9.8 percent to $869.1 billion in 2006.
Tight Supply
``Gold is probably the most straightforward investment to go with in this environment because of its consistent inverse relationship to the dollar,'' said Yamada, voted Wall Street's best technical analyst from 2001 to 2004 in surveys by Institutional Investor magazine. ``Other countries are trying to diversify their dollar holdings. They're buying gold and anything they can to get out of the dollar.''
JPMorgan Chase's Normand and Bergtheil told clients that gold and corn will offer the best opportunities among commodity investments next year because of tight supply and a weakening dollar. The London-based analysts raised their estimate of average gold prices next year by 11 percent to $678 an ounce. Prices in 2008 will average $725 an ounce, they wrote.
``Gold is the only metal, base or precious, which will see no meaningful increase in mining supply next year,'' the analysts wrote, estimating that supply will grow by 1 percent.
Merrill's Jalonen raised his projections for gold in 2008 to $650 an ounce from $600, and 2009 was increased to $625 an ounce from $600. The Toronto-based analyst maintained his 2007 projection for a rally to an average of $675 an ounce ``due to a rebound in gold fabrication demand for bullion, lower central bank sales and continued growth in investment demand.''
Central Bank Sales
Sales of gold by central banks fell 31 percent in the third quarter to 59 metric tons from a year ago, according to the World Gold Council. European Central Bank members this year failed to meet the 500-ton quota for gold sales under the second so-called Central Bank Gold Agreement.
Federal Reserve Chairman Ben S. Bernanke in April told Congress that he looks at gold prices on his computer screen ``every day'' in assessing inflation expectations. Inflation, using the Fed's preferred index that subtracts food and energy from consumer spending, was 2.4 percent for the year ending in October.
``There's information in gold prices as there is in other commodity prices,'' he said. Rising gold prices reflect inflation concern, ``but clearly, a factor in the gold price has got to be global geopolitical uncertainty and the view of some investors that, given what's going on in the world today, that gold is a safe haven investment.''
Gold Outperforms
A slowing economy may force the Federal Reserve to cut interest rates next year for the first time since June 2003, curbing investment in U.S. assets. The Fed has kept its benchmark rate at 5.25 percent since June, while the ECB on Dec. 7 raised rates for a sixth time in a year to 3.5 percent.
Gold has also produced higher returns than the Standard and Poor's 500 Index, up 13 percent this year. The benchmark 10-year U.S. Treasury rose 2.8 percent. The Reuters-Jefferies CRB Commodity Price Index is down 5.4 percent, led by declines in natural gas, sugar, cotton and gasoline.
International purchases of U.S. long-term financial assets have already begun to slow. Investors in September reduced their net holdings of government debt for the first time since February 2003, the Treasury Department said on Nov. 16.
Foreign buying of stocks, notes and bonds declined to a net $65.1 billion after surging to a record $114.4 billion in August. Japan, the largest holder of U.S. Treasury securities, major oil-producing nations and Caribbean investors scaled back their purchases.
Relative Value
Gold remains cheap relative to other assets. The record high of $850 an ounce, reached 26 years ago, is equal to $2,100 in today's dollars after adjusting for inflation. The cost of an ounce today is equal to about 10.3 barrels of oil, compared with 23 barrels in 1980.
``Prices can only go higher from here,'' reaching $800 next year and $1,000 by the time U.S. President George W. Bush leaves office in January 2009, said Frank Holmes, chief executive officer of U.S. Global Investors Inc. in San Antonio. His $875 million World Precious Minerals Fund has gained 58 percent this year. ``Gold is one of my favorite picks for next year, along with platinum and uranium.''
Twelve of 30 traders, investors and analysts surveyed by Bloomberg from Sydney to Chicago on Dec. 7 and Dec. 8 advised buying gold, which fell 3 percent last week in New York to $631 an ounce, the first decline in three weeks. Ten respondents said to sell the metal, and eight were neutral.
Prices fell 50 cents to $630.70 on ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
``A dollar is definitely going to be worth less in one hundred years than it is today,'' said Graham Birch, who helps manage $27 billion at BlackRock Investment Management in London. ``An ounce of gold will still be an ounce of gold.''
To contact the reporters on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net ;
Last Updated: December 11, 2006 07:21 EST
http://www.bloomberg.com/apps/news?pid=20601083&sid=afit3b7SA.kw&refer=currency
The Most Important Number in the World
By David Galland
08 Dec 2006 at 10:23 AM EST
http://www.resourceinvestor.com/pebble.asp?relid=26978
The Most Important Number in the World
By David Galland
08 Dec 2006 at 10:23 AM EST
http://www.resourceinvestor.com/pebble.asp?relid=26978
The Most Important Number in the World
By David Galland
08 Dec 2006 at 10:23 AM EST
http://www.resourceinvestor.com/pebble.asp?relid=26978
Jagman,
Thanks for your interesting posts of recent days.
I incorporated, as suggested, your Trade Tech link into the IBox above and inserted the Trade Tech chart for the spot price of uranium.
When looking at the spot prices for uranium and crude oil, I wonder which fuel will be the first to reach $100.
A decline in worldwide crude oil reserves will inherently elevate its price and increase the importance of and price for uranium as an alternative fuel.
Energy prices have considerably changed since the late 1990's. The good ole days are over forever.
sumisu
Great Panther Options San Antonio Property to Altair Ventures
Friday December 8, 5:42 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 8, 2006 -- GREAT PANTHER RESOURCES LIMITED (TSX:GPR.TO - News) is pleased to announce that it has signed a letter of intent with Altair Ventures Inc. (TSX VENTURE:AVX-P.V - News) whereby Altair will have the option to earn a 70% interest in Great Panther's San Antonio Property in Chihuahua, Mexico. Terms of the agreement call for Altair to make staged payments and share issuances to Great Panther totaling US$200,000 and 200,000 shares over 3 years. Altair must also spend a total of US$1,000,000 in exploration on the project over the same period. Great Panther will be the operator of the exploration program.
The 11,946 hectare San Antonio property lies in the Guadalupe y Calvo Mining District of southwest Chihuahua State, Mexico in the prolific Sierra Madre Belt. Great Panther's work to date on the property has outlined the presence of a gold-copper system more than 14 square kilometres in size. Multiple targets have been identified at San Antonio within a variety of geological settings, including gold-copper veins, gold-copper breccias and stockworks, and silver-lead-zinc veins.
As San Antonio is primarily a gold-copper project, it is considered a non-core asset for Great Panther and the Company has decided to focus its efforts and financial resources on its silver mines and development projects. As such, the Company is pleased to have Altair Ventures as a partner in advancing the project further. As Robert Archer, President & CEO of Great Panther is also non-executive Chairman of Altair and a shareholder of both companies, the agreement has been approved by Great Panther's independent directors.
Robert F. Brown, P.Eng. and Vice-President of Exploration for Great Panther, is designated as the Qualified Person for the San Antonio Project under the meaning of NI 43-101, and has reviewed this news release.
ON BEHALF OF THE BOARD
Kaare G. Foy, Chairman & CFO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parametres as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2005 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
SEC 20-F Statement Filed; Standard & Poor's Listed
Contact:
Contacts:
Great Panther Resources Limited
Brad Aelicks
(604) 685-6465
Great Panther Resources Limited
Don Mosher
(604) 685-6465
(604) 685-9744 (FAX)
Email info@greatpanther.com
Website: http://www.greatpanther.com
--------------------------------------------------------------------------------
Source: Great Panther Resources Limited
Goldcorp, Glamis Deal Made Goldcorp the "Go-To" Gold Producer, Merrill Lynch Analyst Says
Friday December 8, 6:16 am ET
NEW YORK (AP) -- Merrill Lynch raised its price target on Goldcorp Inc. to $38 from $34, saying the Canadian company will be viewed as the "go-to" gold producer among senior gold companies now that its merger with Glamis Gold is complete.
Analyst Michael Jalonen said his net asset value calculation for Goldcorp is up 11.1 percent to $12.60 per share from $11.35, due to rising mid-term gold and silver prices and long-term silver prices.
Jalonen noted that Vancouver-based Goldcorp has above-average production growth, the lowest cash costs of its peers, and a stable geopolitical asset base. In addition, the company has "substantial" free cash flow generating ability, he wrote in a note to clients Thursday.
"The merger of Goldcorp and Glamis Gold in late 2006 vaulted Goldcorp to the forefront of global gold producers," Jalonen asserts. "The new Goldcorp has growing gold production, very low cash costs, solid earnings generating ability, large reserve/resource base, strong balance sheet and an entrepreneurial management team."
The analyst lowered his 2006 gold price forecast from $625 per ounce to $603 an ounce, but left his 2007 spot gold price forecast unchanged at $675 per ounce.
"Our forecast for a higher gold price year-over-year in 2007 is due to a rebound in fabrication demand for bullion, lower central bank sales, and continued growth in investment demand," he said.
Goldcorp, which operates mines in Canada, Argentina, Mexico, Australia and the U.S., on Thursday completed the sale of 18 million shares of Silver Wheaton Corp. at $12.70 each for gross proceeds of $228.6 million.
Shares closed up 26 cents Thursday at $29.96 on the New York Stock Exchange.
Great Panther Grants Stock Options
Thursday December 7, 6:34 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - GREAT PANTHER RESOURCES LIMITED (TSX:GPR - News) has today granted stock options to staff, employees, directors, officers and consultants to purchase an aggregate of up to 2,295,000 shares.
The options, granted under the Company's Amended and Restated Incentive Stock Option Plan, are exercisable at $2.65 per share for a period of five years.
ON BEHALF OF THE BOARD
Kaare G. Foy, Executive Chairman & CFO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parametres as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2005 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
SEC 20-F Statement Filed
Standard & Poor's Listed
Contact:
Brad Aelicks
Great Panther Resources Limited
(604) 685-6465
Don Mosher
Great Panther Resources Limited
(604) 685-6465
(604) 685-9744 (FAX)
Email: info@greatpanther.com
Website: www.greatpanther.com
--------------------------------------------------------------------------------
Source: Great Panther Resources Limited
Bulldog Resources Announces Additional Fertile Locations, a New Pool Discovery, a Strategic Acquistion, and Initial 2007 Guidance
Thursday December 7, 7:06 pm ET
CALGARY, ALBERTA--(CCNMatthews - Dec. 7, 2006) - Bulldog Resources Inc. (TSX:BD - News) is pleased to announce an expansion of our horizontal drilling inventory at Fertile, a new pool discovery and a strategic asset acquisition in Southeast Saskatchewan, and our initial 2007 guidance.
Operational Update
An Exceptional Light Oil Pool
Our step out drilling using vertical stratigraphic test wells has significantly expanded the defined size of the Fertile light oil pool. To date, seven vertical stratigraphic test wells have logged and cored the reservoir confirming an aerial pool size in excess of 3.5 sections. Based on our vertical delineation drilling, 17 horizontal oil wells (8.5 net) and normal 150 meter inter well spacing, we have identified approximately 35 additional horizontal drilling locations (17.5 net) setting up a very active program for 2007.
Bulldog has a 50% working interest and is the operator of the Fertile property.
Fertile Production Facilities
We have pursued three initiatives to improve the production and economics of our Fertile operations:
- We recently completed a second expansion of the Fertile production facilities to 4,800 Bbls/day through the installation of a second treater and free water knock-out.
- Enbridge Pipelines Inc. has completed an oil pipeline tie-in to the Fertile central oil battery. This pipeline will eliminate oil trucking expenses (which were $1.29 per Bbl in Q3, 2006) as well as eliminate potential disruption in transporting our oil production during spring break up.
- Construction has commenced on a pipeline to recover natural gas volumes produced at the Fertile facility. This pipeline will eliminate flaring and provide improved resource conservation and economics. Completion of the pipeline is expected in early 2007 and will result in gas sales of approximately 250 mcf/day net. Payout of the estimated $1.3 million required to build the pipeline is approximately 18 months.
A New Pool Discovery at Browning
The expansion of our exploration program has resulted in a new pool light oil discovery in Southeast Saskatchewan.
At Browning, Bulldog has drilled one vertical and one follow up horizontal well resulting in 140 Bbls/day of net oil production. Additional drilling is planned for 2007 on this 100% owned property. Bulldog operates a 96% working interest oil facility near this discovery.
A Strategic Acquisition
After a sales process, Bulldog, though a series of transactions, has entered into an agreement to acquire oil and gas assets of a privately held oil and gas company whose President is the Chairman of the Board of Bulldog. The transaction was approved by the remaining independent members of the Board of Directors prior to its completion.
The properties are located in Bulldog's operating area of Southeast Saskatchewan and are near our existing properties. The property acquisition is subject to regulatory and other approvals and is expected to close in January, 2007.
The consideration to be paid by Bulldog is $17.0 million consisting of 2,500,000 common shares issued from treasury and $7.0 million cash.
This strategic acquisition increases Bulldog's undeveloped land holdings, reserves, production volumes and cash flow. It expands our drilling opportunities with a diversified inventory of prospects on play types Bulldog has enjoyed previous success.
- Production:
Estimated January 2007 production (light oil) 300 Bbls/day.
- Land:
Bulldog will acquire interests in more than 5,000 net acres of undeveloped land (valued by Bulldog at approximately $1.0 million).
- Drilling locations:
Greater than 17 gross horizontal and vertical drilling locations.
- Reserves:
Three of the properties were evaluated by GLJ Petroleum Consultants. Bulldog did an internal evaluation on all the properties for proven and probable reserves and is acquiring these assets at a competitive market price. NI 51-101 does not permit the publishing of internal estimates of reserves.
The acquisition metrics of this transaction are favourable. Excluding the valuation attached to undeveloped land, our cost is approximately $53,500 per flowing Boe and the cash flow multiple based upon our 2007 projections is less than four times. While we are precluded from publishing a reserve cost per barrel, management has thoroughly evaluated the properties and is comfortable that the acquisition is competitive with recent market transactions. Our analysis also concludes that this acquisition is accretive on a per share basis, to Bulldog's reserves, production volumes and cash flow.
On closing of the acquisition in mid-January, Bulldog will have 27,459,202 common shares outstanding and 29,766,702 common shares outstanding on a fully diluted basis.
Initial 2007 Guidance
First Quarter Capital Expenditures
Bulldog's Board of Directors has approved a first quarter capital expenditure budget of $8.0 million. Seven horizontal wells and one vertical well (3.50 net) are planned for the Fertile property. Five wells (2.68 net) are planned for other areas including the acquisition properties.
We continually focus on the expansion of our drilling opportunities. In Q1, 2007 we have planned seismic expenditures of approximately $0.8 million and land expenditures of approximately $0.5 million to provide additional growth opportunities.
We will update our 2007 capital expenditure program in the second quarter after we have further evaluated the acquired properties and the results of our expanded exploration program are integrated into our plans.
Initial 2007 Average Production Forecast
Due to the evolving nature of our 2007 capital expenditure plans, we have forecasted Bulldog's initial 2007 average annual production at 1,700 Boe/day. We intend to provide an up-date to this forecast as our operations progress.
Initial 2007 Cash Flow Guidance
Based upon our initial average production forecast of 1,700 Boe/day and a 2007 estimated WTI oil price of US$60/Bbl, we project Bulldog will cash flow $24 million or $0.88 per share basic in 2007.
Positioned for Continued Growth
Strong Financial Position
Proforma the property acquisition, Bulldog will have approximately $4.3 million of net debt at December 31, 2006. This would represent approximately 0.2 times 2007 forecasted cash flow. Our bank lines of credit are in the process of being formally expanded and we estimate the authorized facility will exceed $14 million. Our strong cash flows and expanded bank line will position Bulldog to pursue additional expansion activities in 2007.
Expanding Growth Opportunities
The expansion of the number of horizontal locations at Fertile and the acquisition of the private company properties provides Bulldog with an exciting inventory of development and step out drilling opportunities. Expansion of our high impact exploration initiatives will provide Bulldog with a range of risk/reward drilling projects. We will continue to evaluate potential acquisitions within our activity areas.
Top Operating Performance
BMO Capital Markets recently compared the third quarter results of 31 public junior companies in Canada. According to the BMO report, Bulldog Resources had the highest cash flow netback in the industry at $56.86 per Boe, compared to the industry peer median of $23.22 per Boe. Bulldog's operating expenses were the lowest of the junior companies at $1.78 per Boe compared to the group median operating expenses of $9.25 per Boe. Bulldog led all junior companies with quarter over quarter production per share growth of 95%.
Forward Looking Information
Certain statements included in this press release constitute forward-looking statements under applicable securities legislation. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this press release include but are not limited to capital expenditures, business strategy and objectives, net revenue, future production levels, developments plans and the timing thereof, operating and other costs, royalty rates etc. Such forward looking information involves substantial known and unknown risks and uncertainties. Most of these are beyond Bulldog's control and include: the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, and the availability of qualified personnel and services, stock market volatility, and the access to sufficient capital from internal and external sources.
Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. Although Bulldog believes that the expectations reflected in such forward-looking statements or information are reasonable, undo reliance should not be placed on forward-looking statements because Bulldog can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Bulldog and described in the forward-looking statements or information.
Finally, in the presentation of the press release Bulldog uses two terms that are universally applied in analyzing corporate performance within the oil and gas industry as explained below.
Cash Flow - This measure is considered critical within our industry both in terms of measuring success in our historical operations and being an indicator of funding sources for on-going efforts to replace production volumes and increase reserve volumes. Canadian generally accepted accounting principles ("GAAP") requires that "funds flow from operating activities" be the measurement focus. This latter term is derived from "cash flow from operations" as defined by Bulldog adjusted for the change in non-cash working capital. Bulldog believes "cash flow " and "cash flow per share" to be more meaningful measures of our performance and therefore have used these terms throughout this press release. Accordingly, Bulldog is required to advise the reader that: (a) these are non-GAAP measures for purposes of Canadian accounting standards; and (b) our determinations may not be comparable to those reported by other companies.
Meaning of Boe and Boe/day - When used in this press release, boe means a barrel of oil equivalent on the basis of 1 boe to 6 thousand cubic feet of natural gas. Boe/day means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
Contact:
Ken McKay
Bulldog Resources Inc.
President & CEO
(403) 266-6902
Rob Kraft
Bulldog Resources Inc.
Chief Financial Officer
(403) 266-6902
Email: Email: info@bulldogresources.ca
Website: www.bulldogresources.ca
--------------------------------------------------------------------------------
Source: Bulldog Resources Inc.
The Peak Oil Crisis: The Saudi Op-Ed
By Tom Whipple
Thursday, 07 December 2006
On November 29, the Washington Post carried an op-ed by Nawaf Obaid, an advisor to the Saudi government. Despite the obligatory "the opinions expressed are his own", and a press release denying government involvement, the piece clearly carries an important message from Saudi King Abdullah to President Bush, Washington, and the American people.
"Stepping Into Iraq" starts by reminding President Bush that in February 2003 the Saudi Foreign Minister had warned him that if the US removed Saddam Hussein by force he would only be solving one problem by creating five more.
Obaid goes on to point out that had the President followed the Foreign Minister's advice, Iraq would not now be facing "full blown civil war and disintegration."
The thrust of the message, however, is a thinly veiled warning to the US not to walk away from Iraq. Obaid quotes the Saudi Ambassador who said last month: "Since America came into Iraq uninvited, it should not leave Iraq uninvited." And Obaid adds, "If it does, one of the first consequences will be massive Saudi intervention to stop Iranian-backed Shiite militias from butchering Iraqi Sunnis."
"As the economic powerhouse of the Middle East, the birthplace of Islam and the de facto leader of the world's Sunni community (which comprises 85 percent of all Muslims), Saudi Arabia has both the means and the religious responsibility to intervene," he continues.
The Saudis, of course, are reminding us that while America can get on its ships and planes and go home, Saudi Arabia is going to be left right at the heart of what is starting to look more and more like the beginnings of a regional war. Should the fighting increase, it is only a manner of time before the vital interests or perhaps the very existence of the Kingdom, or at least the Royal family, is threatened.
The Saudis are clear about why they are sending this message to America. "Just a few months ago it was unthinkable that President Bush would prematurely withdraw a significant number of American troops from Iraq. But it seems possible today." Obviously the American election, with the unmistakable message that the American voters want out is much on Saudi minds. "The Saudi leadership is preparing to substantially revise its Iraq policy," says Obaid.
The critical part of all this is just what the Saudis are going to do in the face of an American threat to withdraw. The op-ed lists three options. First Riyadh could give their Sunni kinsmen (money, arms and logistical support. So far they claim to have refrained from doing this because the Sunni insurgents were busy shooting and blowing up Americans so it was considered highly impolitic to aid them. This of course shows commendable self-restraint as the Iranians have been supporting the Shiites for years.
The second Saudi option would be to fund, equip, and train new "Sunni brigades" to offset the Shiite militias. This of course would formalize the "civil war."
Now, however, we get to the Saudis' third option as suggested by Obaid— oil. "King Abdullah may decide to strangle Iranian funding of the militias through oil policy." "If the Saudis boosted production and cut the price of oil in half, the kingdom could still finance its current spending. But it would be devastating to Iran, which is facing economic difficulties even with today's high prices."
Now the notion of the Saudis flooding the 85 million barrel a day world oil market with enough oil to halve the world price and destroy the Iranian economy is a stretch. Saudi oil production has been dropping in recent months and some analysts believe this is from necessity not choice. Even if the Saudis were to attempt to increase output, it would likely be hard-to-sell heavy crude, and the effort would probably damage future oil production by over producing existing fields.
The Saudis may no longer be able to increase production enough to attain their political objectives, however, there is no reason why they can't cut their production. Cutting is easy and it can be done is many ways varying from an overt embargo as happened in the 1970's to more subtle reductions.
Why are the Saudi's continuing to produce circa 9 million barrels a day? Given the tight worldwide oil market, the Saudi's could cut their production in half; the price of oil would more than double; they would get richer; their oil fields would get a much needed rest; and there would be oil left for their great-grand children to export.
What keeps them from cutting production and reaping all these benefits? That too is simple, their relationship with the USA. So long as the US was their number one protector, and needed the oil to keep flowing, the Saudis historically would bend over backwards to help Washington out. The only exception was the short-lived oil boycott back in 1973.
Now, however, everything has changed. Against Saudi advice, the US charged into Baghdad and set 27 million Iraqis at each other's throats. America's partners in the invading "coalition" are bailing out one by one. The US people have just voted to change something and it is clear that "stay the course" is not going to obtain for much longer.
The key Saudi foreign policy objective at the minute clearly is to keep sufficient US military forces in Iraq to keep the lid on the situation for as long as it takes to keep the mess from spilling over into Saudi Arabia itself.
The threat to the existence of the Saudi Royal Family from a spreading civil war now is much greater than any threat from an unhappy Washington. Can anyone imagine the new US Congress voting to invade some other large Middle Eastern country in the near future? With what?
Could a major cutback in Saudi oil production bring down America? Maybe not, but it sure could do a lot of harm. The most blatant action would be cut their oil production in half. Taking 4-5 million barrels a day off the world oil market would get everybody's attention very quickly. Oil prices would certainly go well over $100 per barrel. In short order, the US and world economies would suffer greatly.
The Saudis could, however, bring pressure without doing anything so provocative as a major production cut. Simply ratcheting down production in an unobtrusive manner should be enough to scare Washington into reconsidering leaving Riyadh, as the leader of the world's Sunnis to deal with the mess on its own.
Just before President Bush met with the Iraqi Prime Minister in Jordan last week, Vice President Cheney was summoned to Riyadh to receive the whole Saudi message. It may be many years before we learn exactly what that message was, but already President Bush is back to talking about "staying the course."
It may be a lot harder, or a lot more expensive, for the US to get out of Iraq than anyone ever thought.
Trader75,
I'm way behind on my correspondence. Every time that winter is supposed to arrive, it gets mild again, and today it was in the 50's. Snow tomorrow though.
I reviewed Michael Berry's site; you must be getting a free trial subscription. It sure is expensive. I'm happy that he will be on Dejour's Board of Directors. They have strong management and Dr. Berry will only add to its direction.
I was going to buy TUE.V, Titan Uranium, Inc., after Dejour sold it's uranium properties to Titan. But it then spiked up to over C$3.00. As Jagman noted in another message, some of the uranium stocks might be overvalued, and now Titan is down to C$2.57 plus there is profit taking in this unique asset exchange situation. Dejour now owns 37% of Titan's stock. Here is the link again.
http://biz.yahoo.com/cnw/061026/titan_dejour_combine.html?.v=1
Maybe it's good that I'm out of funds; otherwise, I would be tempted to buy more uranium.
I will be happy when the year is over and tax loss selling ends.
As I write this message, it appears that my inbox is filling up. LOL
Thanks,
sumisu
MPH Ventures Corp.: 50% Interest in Lateegra's M10 Property in Ecuador to be Acquired
Thursday December 7, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - MPH Ventures Corp. (TSX VENTURE:MPS - News; the "Company") announces it has signed a formal Option Agreement with Lateegra Gold Corp. (TSX VENTURE:LRG - News; "Lateegra"), through their wholly-owned subsidiary Lateegra Ecuador S.A., for the acquisition by MPH Ventures of a 50% interest in Lateegra's wholly owned mining concession under the name of M10 massive sulphide prospect.
[CONTINUED IN FOLLOWING LINK]
http://biz.yahoo.com/ccn/061207/200612070362090001.html?.v=1
MPH Ventures Corp.: 50% Interest in Lateegra's M10 Property in Ecuador to be Acquired
Thursday December 7, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - MPH Ventures Corp. (TSX VENTURE:MPS - News; the "Company") announces it has signed a formal Option Agreement with Lateegra Gold Corp. (TSX VENTURE:LRG - News; "Lateegra"), through their wholly-owned subsidiary Lateegra Ecuador S.A., for the acquisition by MPH Ventures of a 50% interest in Lateegra's wholly owned mining concession under the name of M10 massive sulphide prospect.
[CONTINUED IN FOLLOWING LINK]
http://biz.yahoo.com/ccn/061207/200612070362090001.html?.v=1
MPH Ventures Corp.: 50% Interest in Lateegra's M10 Property in Ecuador to be Acquired
Thursday December 7, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - MPH Ventures Corp. (TSX VENTURE:MPS - News; the "Company") announces it has signed a formal Option Agreement with Lateegra Gold Corp. (TSX VENTURE:LRG - News; "Lateegra"), through their wholly-owned subsidiary Lateegra Ecuador S.A., for the acquisition by MPH Ventures of a 50% interest in Lateegra's wholly owned mining concession under the name of M10 massive sulphide prospect.
[CONTINUED IN FOLLOWING LINK]
http://biz.yahoo.com/ccn/061207/200612070362090001.html?.v=1
Lateegra Gold Oversubscribes Financing, Commences El Picacho Work
Thursday December 7, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 7, 2006 -- Lateegra Gold Corp. (the "Company") (TSX VENTURE:LRG.V - News)(FWB: LTG) wishes to announce that it has closed its previously announced (see NR dated Nov 6, 2006) private placement of 2,880,000 units including the green shoe over allotment at a price of $1.25 per unit for total gross proceeds of $3,600,000. Each unit consists of one common share and one transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at a price of $1.50 per share.
Canaccord Capital Corporation acted as lead agent in respect of the placement. For its efforts, Canaccord was paid a cash commission of $288,000 and was issued 288,000 non-transferable share purchase warrants, each warrant entitling it to purchase one common share of the Company for a period of two years at a price of $1.25 per share. Canaccord was also issued in payment of its corporate finance fee 50,000 units, each unit consisting of one common share and one non-transferable share purchase warrant entitling it to purchase one additional common share for a period of two years at a price of $1.50 per share.
All securities issued with respect to the placement are subject to a four month hold period expiring on March 31, 2007, in accordance with the policies of regulatory authorities.
The proceeds of the private placement will be used for exploration and development of the Company's El Picacho mine in Mexico and the El Condor property in Ecuador and for general working capital purposes.
Lateegra Gold and its partner Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (FWB: T8N) also wish to announce that a Phase 1 exploration program has commenced on the El Picacho Gold Mine in Sonora State, Mexico. The initial focus of the program will be resource delineation, the Company has completed a comprehensive data compilation of the previous work including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by the company suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the company's geologists show that the mineralization extends over a strike length of 1500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the company's geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. The company has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The company and its partner Tara Gold Resources are also refurbishing the existing mill, crushing circuit and rolling stock while shipping mined silica maintaining a silica flux supply contract to a local smelter. Its site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The technical information in this news release has been reviewed by Jeffrey Reeder, P.Geo., a Qualified Person as defined in national policy 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Verrico, CEO and Director
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contact:
Contacts:
Lateegra Gold Corp.
Chris Verrico
CEO and Director
(604) 669-9330 or Toll Free: 1-866-669-9377
(604) 669-9335 (FAX)
Email: info@lateegra.com
Website: http://www.lateegra.com
--------------------------------------------------------------------------------
Source: Lateegra Gold Corp.
Lateegra Gold Oversubscribes Financing, Commences El Picacho Work
Thursday December 7, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 7, 2006 -- Lateegra Gold Corp. (the "Company") (TSX VENTURE:LRG.V - News)(FWB: LTG) wishes to announce that it has closed its previously announced (see NR dated Nov 6, 2006) private placement of 2,880,000 units including the green shoe over allotment at a price of $1.25 per unit for total gross proceeds of $3,600,000. Each unit consists of one common share and one transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at a price of $1.50 per share.
Canaccord Capital Corporation acted as lead agent in respect of the placement. For its efforts, Canaccord was paid a cash commission of $288,000 and was issued 288,000 non-transferable share purchase warrants, each warrant entitling it to purchase one common share of the Company for a period of two years at a price of $1.25 per share. Canaccord was also issued in payment of its corporate finance fee 50,000 units, each unit consisting of one common share and one non-transferable share purchase warrant entitling it to purchase one additional common share for a period of two years at a price of $1.50 per share.
All securities issued with respect to the placement are subject to a four month hold period expiring on March 31, 2007, in accordance with the policies of regulatory authorities.
The proceeds of the private placement will be used for exploration and development of the Company's El Picacho mine in Mexico and the El Condor property in Ecuador and for general working capital purposes.
Lateegra Gold and its partner Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (FWB: T8N) also wish to announce that a Phase 1 exploration program has commenced on the El Picacho Gold Mine in Sonora State, Mexico. The initial focus of the program will be resource delineation, the Company has completed a comprehensive data compilation of the previous work including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by the company suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the company's geologists show that the mineralization extends over a strike length of 1500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the company's geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. The company has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The company and its partner Tara Gold Resources are also refurbishing the existing mill, crushing circuit and rolling stock while shipping mined silica maintaining a silica flux supply contract to a local smelter. Its site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The technical information in this news release has been reviewed by Jeffrey Reeder, P.Geo., a Qualified Person as defined in national policy 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Verrico, CEO and Director
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contact:
Contacts:
Lateegra Gold Corp.
Chris Verrico
CEO and Director
(604) 669-9330 or Toll Free: 1-866-669-9377
(604) 669-9335 (FAX)
Email: info@lateegra.com
Website: http://www.lateegra.com
--------------------------------------------------------------------------------
Source: Lateegra Gold Corp.
Lateegra Gold Oversubscribes Financing, Commences El Picacho Work
Thursday December 7, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 7, 2006 -- Lateegra Gold Corp. (the "Company") (TSX VENTURE:LRG.V - News)(FWB: LTG) wishes to announce that it has closed its previously announced (see NR dated Nov 6, 2006) private placement of 2,880,000 units including the green shoe over allotment at a price of $1.25 per unit for total gross proceeds of $3,600,000. Each unit consists of one common share and one transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at a price of $1.50 per share.
Canaccord Capital Corporation acted as lead agent in respect of the placement. For its efforts, Canaccord was paid a cash commission of $288,000 and was issued 288,000 non-transferable share purchase warrants, each warrant entitling it to purchase one common share of the Company for a period of two years at a price of $1.25 per share. Canaccord was also issued in payment of its corporate finance fee 50,000 units, each unit consisting of one common share and one non-transferable share purchase warrant entitling it to purchase one additional common share for a period of two years at a price of $1.50 per share.
All securities issued with respect to the placement are subject to a four month hold period expiring on March 31, 2007, in accordance with the policies of regulatory authorities.
The proceeds of the private placement will be used for exploration and development of the Company's El Picacho mine in Mexico and the El Condor property in Ecuador and for general working capital purposes.
Lateegra Gold and its partner Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (FWB: T8N) also wish to announce that a Phase 1 exploration program has commenced on the El Picacho Gold Mine in Sonora State, Mexico. The initial focus of the program will be resource delineation, the Company has completed a comprehensive data compilation of the previous work including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by the company suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the company's geologists show that the mineralization extends over a strike length of 1500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the company's geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. The company has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The company and its partner Tara Gold Resources are also refurbishing the existing mill, crushing circuit and rolling stock while shipping mined silica maintaining a silica flux supply contract to a local smelter. Its site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The technical information in this news release has been reviewed by Jeffrey Reeder, P.Geo., a Qualified Person as defined in national policy 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Verrico, CEO and Director
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contact:
Contacts:
Lateegra Gold Corp.
Chris Verrico
CEO and Director
(604) 669-9330 or Toll Free: 1-866-669-9377
(604) 669-9335 (FAX)
Email: info@lateegra.com
Website: http://www.lateegra.com
--------------------------------------------------------------------------------
Source: Lateegra Gold Corp.
Lateegra Gold Oversubscribes Financing, Commences El Picacho Work
Thursday December 7, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 7, 2006 -- Lateegra Gold Corp. (the "Company") (TSX VENTURE:LRG.V - News)(FWB: LTG) wishes to announce that it has closed its previously announced (see NR dated Nov 6, 2006) private placement of 2,880,000 units including the green shoe over allotment at a price of $1.25 per unit for total gross proceeds of $3,600,000. Each unit consists of one common share and one transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at a price of $1.50 per share.
Canaccord Capital Corporation acted as lead agent in respect of the placement. For its efforts, Canaccord was paid a cash commission of $288,000 and was issued 288,000 non-transferable share purchase warrants, each warrant entitling it to purchase one common share of the Company for a period of two years at a price of $1.25 per share. Canaccord was also issued in payment of its corporate finance fee 50,000 units, each unit consisting of one common share and one non-transferable share purchase warrant entitling it to purchase one additional common share for a period of two years at a price of $1.50 per share.
All securities issued with respect to the placement are subject to a four month hold period expiring on March 31, 2007, in accordance with the policies of regulatory authorities.
The proceeds of the private placement will be used for exploration and development of the Company's El Picacho mine in Mexico and the El Condor property in Ecuador and for general working capital purposes.
Lateegra Gold and its partner Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (FWB: T8N) also wish to announce that a Phase 1 exploration program has commenced on the El Picacho Gold Mine in Sonora State, Mexico. The initial focus of the program will be resource delineation, the Company has completed a comprehensive data compilation of the previous work including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by the company suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the company's geologists show that the mineralization extends over a strike length of 1500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the company's geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. The company has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The company and its partner Tara Gold Resources are also refurbishing the existing mill, crushing circuit and rolling stock while shipping mined silica maintaining a silica flux supply contract to a local smelter. Its site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The technical information in this news release has been reviewed by Jeffrey Reeder, P.Geo., a Qualified Person as defined in national policy 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Verrico, CEO and Director
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contact:
Contacts:
Lateegra Gold Corp.
Chris Verrico
CEO and Director
(604) 669-9330 or Toll Free: 1-866-669-9377
(604) 669-9335 (FAX)
Email: info@lateegra.com
Website: http://www.lateegra.com
--------------------------------------------------------------------------------
Source: Lateegra Gold Corp.
Lateegra Gold Oversubscribes Financing, Commences El Picacho Work
Thursday December 7, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 7, 2006 -- Lateegra Gold Corp. (the "Company") (TSX VENTURE:LRG.V - News)(FWB: LTG) wishes to announce that it has closed its previously announced (see NR dated Nov 6, 2006) private placement of 2,880,000 units including the green shoe over allotment at a price of $1.25 per unit for total gross proceeds of $3,600,000. Each unit consists of one common share and one transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at a price of $1.50 per share.
Canaccord Capital Corporation acted as lead agent in respect of the placement. For its efforts, Canaccord was paid a cash commission of $288,000 and was issued 288,000 non-transferable share purchase warrants, each warrant entitling it to purchase one common share of the Company for a period of two years at a price of $1.25 per share. Canaccord was also issued in payment of its corporate finance fee 50,000 units, each unit consisting of one common share and one non-transferable share purchase warrant entitling it to purchase one additional common share for a period of two years at a price of $1.50 per share.
All securities issued with respect to the placement are subject to a four month hold period expiring on March 31, 2007, in accordance with the policies of regulatory authorities.
The proceeds of the private placement will be used for exploration and development of the Company's El Picacho mine in Mexico and the El Condor property in Ecuador and for general working capital purposes.
Lateegra Gold and its partner Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (FWB: T8N) also wish to announce that a Phase 1 exploration program has commenced on the El Picacho Gold Mine in Sonora State, Mexico. The initial focus of the program will be resource delineation, the Company has completed a comprehensive data compilation of the previous work including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by the company suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the company's geologists show that the mineralization extends over a strike length of 1500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the company's geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. The company has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The company and its partner Tara Gold Resources are also refurbishing the existing mill, crushing circuit and rolling stock while shipping mined silica maintaining a silica flux supply contract to a local smelter. Its site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The technical information in this news release has been reviewed by Jeffrey Reeder, P.Geo., a Qualified Person as defined in national policy 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Verrico, CEO and Director
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contact:
Contacts:
Lateegra Gold Corp.
Chris Verrico
CEO and Director
(604) 669-9330 or Toll Free: 1-866-669-9377
(604) 669-9335 (FAX)
Email: info@lateegra.com
Website: http://www.lateegra.com
--------------------------------------------------------------------------------
Source: Lateegra Gold Corp.
The post-abundance era
By Michael T Klare
12 07 2006
Ever since the collapse of the Soviet Union, foreign-policy analysts have struggled to find a term to characterize the epoch we now inhabit. Although "the post-Cold War era" has been the reigning expression, this label now sounds dated and no longer does justice to the particular characteristics of the current period. Others have spoken of the post-September 11, 2001, era as if the attacks on New York's World Trade Center and the Pentagon were defining moments for the entire world. But this image no longer possesses the power it once wielded - even in the United States.
I propose instead another term that better captures the defining characteristics of the current period: the post-abundance era.
If there is one thing that most inhabitants of the late 20th century shared in common, it was a perception of rising global abundance in virtually all fields: energy, food, housing, consumer goods, fashion, mass culture, and so on. Yes, there were pockets of poverty in many areas, but most people in most places around the world were seeing a rise in their personal income and an increase in the number of things in their possession, along with the supply of energy with which to move or power their many personal goods.
At least some strata of the global population will continue to experience an increase in personal wealth in the 21st century, but the sense of abundance that characterized the late 20th century is likely to evaporate for the great majority of us. One day now-affordable luxuries such as overseas vacations and meals out will become unattainable, and even basic necessities such as energy, electricity, water and food are likely to become less plentiful and more expensive. This global austerity will produce great hardship for the poor and will force even lower-middle-class families to choose from among long car trips, restaurant meals, air-conditioning in summer, and high thermostats in winter.
Less supply, more demand
Lying behind this historic shift in global fortunes is a fundamental reversal in the balance between resource supply and demand. For most of the 20th century, global stockpiles of vital materials such as oil, natural gas, coal and basic minerals expanded as giant multinational corporations (MNCs) poured billions of dollars into exploring every corner of the Earth in the drive to locate and exploit valuable deposits of extractable materials. This permitted consumers around the world to increase their consumption of virtually everything, safe in the knowledge that even more of these commodities would be available next year and the year after that, and so on infinitely into the future.
But this condition no longer prevails. Many of the world's most promising sources of supply have been located and exploited, and all of the additional billions spent by MNCs on exploration and discovery are producing increasingly meager results.
Ever since the 1960s, the most fruitful decade in the worldwide discovery of new oilfields, there has been a steady decline in the identification of new deposits, according to a recent study by the US Army Corps of Engineers. Even more worrisome, the rate of oilfield discovery fell below the rate of global petroleum consumption in the 1980s, and since then has fallen to about half the rate of consumption. This means we are increasingly relying on deposits found in previous decades to slake our insatiable thirst for petroleum - a pattern that cannot continue for much longer before we will begin to experience an irreversible and traumatic decline in the global supply of oil.
The same is true of other vital resources, including natural gas, uranium, copper, and many minerals. There may be adequate stocks of these materials on global markets today, but the MNCs are not finding enough new deposits of these commodities to replace what we're consuming. So future shortages are inevitable.
Water is somewhat different, in that we receive a fresh supply of it each year through evaporation from the oceans and precipitation on land - but even this precious resource will become scarcer in the years ahead because of population growth, urbanization, industrialization, the over-exploitation of underground aquifers, and global warming (through persistent drought and the accelerated evaporation of rivers and lakes).
This contraction in the global supply of vital resources will affect our lives in myriad ways. On a personal level, it will force us to consume less - for example, by buying smaller, more fuel-efficient cars and smaller, more energy-efficient homes. We will have to make other accommodations as well: fewer long-distance trips to the seaside or amusement parks; fewer long-distance airplane rides; lowered thermostats in winter; and so on. These cutbacks will be minor inconveniences for some, but significant hardships for others - especially the poor, the elderly, and others on a fixed income. Farmers will have a particularly hard time, as the cost of virtually everything associated with modern, mechanized agriculture - diesel fuel, pesticides, herbicides, fertilizers, food supplements - will become far more expensive.
Less stuff, more conflict
At the national level, we can expect a significant change in foreign policy. As supplies of energy and other basic necessities become scarce, senior officials will come under enormous pressure to "solve" the problem by any means necessary, including the use of military force.
In the case of energy, this could lead to wars over oil. Even if oil was not the only motive for the US invasion of Iraq, the United States has long sought to maintain a dominant position in the oil-rich Persian Gulf area and a permanent military presence in Iraq will facilitate US efforts to seize the oil of Iran and neighboring countries if a decision is ever made to do so. The US Department of Defense is also beefing up its capacity to "project" military power into the oil-producing areas of Africa and the Caspian Sea basin. No one in official circles will admit that "guarding foreign oilfields" is the ultimate objective of Pentagon war plans, but it is becoming increasingly evident that the US military is being reconfigured to accomplish exactly this task.
Nor is the United States alone in thinking along these lines. China also seeks to enhance its capacity to project power into foreign oil-producing areas. And Russia, with a surplus of energy, seeks to exploit its advantageous position to extract concessions from less privileged nations.
Future shortages of water are also likely to prove a source of international friction and conflict. Egypt, which relies on the Nile River for virtually all of its water, has threatened to attack Sudan and Ethiopia if they proceed with plans to dam the Nile and divert some of its waters into irrigation schemes desperately needed to feed their rapidly growing populations. Israel has also threatened to go to war with neighboring Arab states if they move ahead with plans to dam the Yarmuk River (one of the tributaries of the Jordan) or otherwise jeopardize Israel's already over-stretched water supply. Such threats - and possibly actual outbreaks of conflict - are likely to become more common as the demand for water rises and global supplies dwindle.
The gestalt of austerity
The end of abundance is not the same thing as outright scarcity. Some commodities, such as oil, may become truly scarce in later decades of the 21st century, but they will not disappear altogether. Those with means will still be able to purchase gasoline and air-conditioning and other soon-to-be-luxury items. But the end of abundance will create a new international environment - a new gestalt, [1] if you will - in which expectations are lowered and struggles over what remains become fiercer and more violent.
Ideological, political, and ethnic differences will have their place in this new environment, but increasingly these will be infused with or subordinated to resource pressures. The growing edginess evident in Sino-US relations, for example, can be traced at least in part to a perception that the United States and China are becoming bitter competitors in the global hunt for new sources of petroleum. Likewise, the growing frostiness in US-Russian relations can be attributed in part to Moscow's heavy-handed use of its natural-gas monopoly to browbeat neighboring countries such as Ukraine and Georgia. This is exactly how we would expect international affairs to evolve in the Post-Abundance Era.
Prediction is always risky, and it is entirely possible that some unanticipated event on the scale of September 11 or World War II will come along and redefine the current epoch. But such a calamity aside, the end of global abundance and the resulting scramble for resources is likely to prove the most conspicuous feature of the emerging international landscape.
Note
1. A form of psychotherapy built on the experiential ideal of "here and now".
Michael T Klare is a professor of peace and world-security studies at Hampshire College, a Foreign Policy in Focus columnist and the author of Blood and Oil: The Dangers and Consequences of America's Growing Dependence on Imported Petroleum (Metropolitan Books, 2004).
http://www.atimes.com/atimes/Global_Economy/HL07Dj03.html
Thanks Jagman,
I incorporated your post into the Board Info above.
It will be useful to all.
sumisu
Canadian Zinc Corporation: First Drilling Results From 2006 Underground Program at Prairie Creek
Wednesday December 6, 3:26 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - Canadian Zinc Corporation (TSX:CZN - News) is pleased to report the assay results of the first two underground diamond drill holes from the Company's 100% owned Prairie Creek Mine in the Northwest Territories, where Hole 001 reported an intersection of 4.6 metres grading 23.87% zinc, 9.11% lead and 5 oz/t silver.
2006 Underground Diamond Drilling Program
The 2006 underground drill program at the Prairie Creek mine is focused on further defining the Main Zone (Zone 1-3) of mineralization in order to upgrade the resource category where previous wide spaced surface diamond drilling has outlined a large inferred mineral resource. The bulk of this drilling is targeted on detailing the vein style mineralization, however some deeper drilling exploring for additional stratabound mineralization is also planned.
Access to underground drilling has been provided through the establishment of a new 400 metre decline tunnel which has been driven from the existing lower level underground working. The decline is expected to reach its 2006 targeted length before the Christmas holiday break. Five new drill stations on 50 metre section lines have been established along the decline. Over 50 drill holes are planned from the decline totaling up to 10,000 metres of coring.
The underground drilling commenced from the first drill station, located on the 50650N section line, testing from the 864 metre elevation of the drill station down to below the 600 metre elevation for both vein and stratabound mineralization.
So far nine holes totaling 1610 metres of core have been completed from this station. A ring of six holes were completed on section 650N and three oblique holes towards section 600N. Drilling continues with three additional holes on the 600N section to complete the proposed drilling at this station. Drill holes vary in dip from +10 degrees to -90 degrees and length and from 120 metres to over 280 metres.
Underground Diamond Drill Results
Assay results have been received for the first two holes:
------------------------------------------------------------------------
Hole Number From (m) To (m) Int (m) Pb % Zn % Ag gm/t Cu %
------------------------------------------------------------------------
PCU-06-001 90.37 94.96 4.59 9.11 23.87 169 0.421
PCU-06-002 96.71 98.51 1.80 5.82 1.80 55 0.139
------------------------------------------------------------------------
GREAT PANTHER INTERVIEW BY JIM PUPLAVA
Go to Broadcast, DECEMBER 2, Part 3, skip over to the 41st minute. Jim Puplava interviewed Robert Archer, President and CEO of Great Panther Resources.
http://www.netcastdaily.com/fsnewshour.htm
Jagman,
Great idea and I will give it more thought.
I agree with your premise about uranium. It seems to be attracting a lot of hot money, so I'm holding off on any more purchases here. I will just hold UUU.V, as it is a producer.
What immediately comes to mind are things we studied in economics year's ago, i.e., food, clothing, and shelter.
As an offshoot to food, maybe you want to give water a thought. As a beginning, PowerShares Water Resources (PHO) comes to mind.
http://finance.yahoo.com/q?s=pho
Infrastructure including the need to build more nuclear power and hydroelectric plants will increase the need for cement. I have been following one stock, Cemex S.A.B. de C.V. (CX), in Mexico. It is a worldwide firm:
http://finance.yahoo.com/q?s=CX
You might want to consider a high dividend stock with a low P/E, FRONTLINE LTD (NYSE:FRO), a tanker company. I owned this one a few year's ago.
http://finance.yahoo.com/q/pr?s=FRO
These are three stocks that I will acquire when I make some serious money elsewhere.
But they are high priced.
sumisu
Petroleum Producers Forecast Strong Oilpatch Spending for 2007
By Judy Monchuk
05 Dec 2006 at 10:22 AM EST
CALGARY (CP) -- Canada's oil and gas producers will ease off spending in 2007, a move driven by doubts about natural gas prices and several oilpatch giants scaling back growth projections, according to the industry's main association.
''It's a slowdown, but it's more like a foot off the accelerator rather than someone jamming on the brakes,'' Greg Stringham, vice-president of the Canadian Association of Petroleum Producers, said Tuesday.
Industry spending for next year is forecast at C$41 billion, down from the C$44 billion expected by the end of 2006 and 2005's record C$45 billion in expenditures, Stringham said.
Several oilpatch heavyweights recently announced plans to curtail their natural gas drilling operations because of weak prices and spiralling costs in Alberta's overheated economy.
Canadian Natural Resources Ltd. [TSX:CNQ] said recently it would slash its 2007 drilling activity by 46% compared with this year's activity, part of C$1.5 billion in cuts designed to ''push back'' on prices charged by service providers and suppliers.
Talisman Energy Corp. [TSX:TLM; NYSE:TLM] is deferring about C$1 billion in spending on exploration and development projects in 2007, although it still plans to spend about the same on exploration as it did this year, about C$4.8 billion.
''From an overall economic perspective, from the economy of Alberta and the economy of Western Canada, this moderation really does take some of the crisis mentality out of the inflating costs we've had,'' said Stringham.
''Many of our guys are looking at this and saying the levels we're at right now are probably more sustainable than the rampant levels of growth we've had over the last three years.''
Costs are starting to ease slightly, especially on rig rates as more rigs sit idle. There are also indications that capital material costs such as steel, which is set on a global scale, are also flattening out.
The drilling industry has projected drops in exploratory drilling for the balance of 2006 and through 2007. That could change quickly if natural gas prices jump or a prolonged bout of cold weather reduces the record stockpiles of natural gas in the United States.
Natural gas prices were US$7.70 per 1,000 cubic feet on Tuesday, a long way from the dizzying heights of US$14 in mid 2005. But gas prices stuck near US$4 for weeks this past summer and that makes producers nervous about long-term prospects.
''There is a worry that the natural gas prices we saw below C$4 make some of that gas, particularly coal bed methane, uneconomic,'' said Stringham.
The moderation in spending does not extend to the oilsands of northern Alberta, where spending is expected to jump C$1.5 billion to C$12.5 billion in 2007. Industry has projected to spend C$100 billion in the oilsands over the next decade.
© The Canadian Press 2006
Corani Silver Deposit Resource Update, Measured & Indicated Up 8.3 Percent, Deposit Still Open
Press Release Source: Bear Creek Mining Corporation
Tuesday December 5, 8:00 am ET
[Continued in following link.]
http://ca.us.biz.yahoo.com/cnw/061205/bear_creek_corani_est.html?.v=1
Plexmar Resources Inc.: Corporate Update
Tuesday December 5, 11:53 am ET
QUEBEC, Dec. 5, 2006 (PRIME NEWSWIRE) -- Plexmar Resources Inc. (TSX VENTURE:PLE.V - News) (the ``Company'') provides the following update to shareholders from its President, Guy Bedard:
Dear Shareholder, the Company has made significant progress in the past months. In northern Peru, spectacular high-grade gold exploration results from Bolsa del Diablo were obtained and the Company received a Supreme decree to operate near the Ecuadorian border.
The airborne survey detected a large magnetic and potassic anomaly measuring 2.5km x 2.8km coincident with a mapped intrusive body. The ground geophysical program over the 6 sq. kms alteration zone is on-going and should be completed shortly. Preliminary results from the IP program indicate that high resisitivity is consistent with silicification associated with the veins. At 100 meters of depth, the resisitivity decreases and the chargeability increases. This may represent an increase in sulphide mineral content that would be consistent with a gold bearing alteration system which is the target the Company is exploring for. A PIMA sampling program over the zone is also near completion. Application for a drill permit has been submitted and a drill contractor has been located and is on standby.
Presidential Elections in Ecuador
The Company does not believe that the election of Rafael Correa will adversely affect its ability to explore and develop its projects in Ecuador. The country has become a major focus globally of mining explorers because of recent large discoveries and untapped mineral potential. Well before the present great interest developed, Plexmar staked a significant amount of land in northern Peru and, more recently, southern Ecuador. Plexmar and its local partners fully expect to pursue its great relationship with the Ecuadorian government
In southern Ecuador, the Company acquired 841 km2 of prime land adjoining Aurelian and Corriente. Geological crews are currently on the ground doing the preliminary mapping and prospecting in the vicinity of the 396 g/t Au sample located some 6 kms northwest of Aurelian's Fruta del Norte deposit. Assays will be released shortly.
We are very confident about the Company's prospects and continue to work to generate value for our shareholders.
Guy Bedard
President and Chairman
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
About Plexmar
Plexmar is a publicly listed junior mining exploration Company (TSX.V:PLE) with properties in Peru and southern Ecuador. It holds over 220 km2 of land in northern Peru at the Bolsa del Diablo project and over 840 km2 in the cordillera del Condor in southern Ecuador near Aurelian and Corriente.
This press release includes certain statements that may be deemed ``forward-looking statements''. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Contact:
Plexmar Resources Inc.
Guy Bedard, President
(418) 658-6776
Paradox Public Relations
(866) 460-0408
(514) 341-0408
--------------------------------------------------------------------------------
Source: Plexmar Resources Inc.
Plexmar Resources Inc.: Corporate Update
Tuesday December 5, 11:53 am ET
QUEBEC, Dec. 5, 2006 (PRIME NEWSWIRE) -- Plexmar Resources Inc. (TSX VENTURE:PLE.V - News) (the ``Company'') provides the following update to shareholders from its President, Guy Bedard:
Dear Shareholder, the Company has made significant progress in the past months. In northern Peru, spectacular high-grade gold exploration results from Bolsa del Diablo were obtained and the Company received a Supreme decree to operate near the Ecuadorian border.
The airborne survey detected a large magnetic and potassic anomaly measuring 2.5km x 2.8km coincident with a mapped intrusive body. The ground geophysical program over the 6 sq. kms alteration zone is on-going and should be completed shortly. Preliminary results from the IP program indicate that high resisitivity is consistent with silicification associated with the veins. At 100 meters of depth, the resisitivity decreases and the chargeability increases. This may represent an increase in sulphide mineral content that would be consistent with a gold bearing alteration system which is the target the Company is exploring for. A PIMA sampling program over the zone is also near completion. Application for a drill permit has been submitted and a drill contractor has been located and is on standby.
Presidential Elections in Ecuador
The Company does not believe that the election of Rafael Correa will adversely affect its ability to explore and develop its projects in Ecuador. The country has become a major focus globally of mining explorers because of recent large discoveries and untapped mineral potential. Well before the present great interest developed, Plexmar staked a significant amount of land in northern Peru and, more recently, southern Ecuador. Plexmar and its local partners fully expect to pursue its great relationship with the Ecuadorian government
In southern Ecuador, the Company acquired 841 km2 of prime land adjoining Aurelian and Corriente. Geological crews are currently on the ground doing the preliminary mapping and prospecting in the vicinity of the 396 g/t Au sample located some 6 kms northwest of Aurelian's Fruta del Norte deposit. Assays will be released shortly.
We are very confident about the Company's prospects and continue to work to generate value for our shareholders.
Guy Bedard
President and Chairman
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
About Plexmar
Plexmar is a publicly listed junior mining exploration Company (TSX.V:PLE) with properties in Peru and southern Ecuador. It holds over 220 km2 of land in northern Peru at the Bolsa del Diablo project and over 840 km2 in the cordillera del Condor in southern Ecuador near Aurelian and Corriente.
This press release includes certain statements that may be deemed ``forward-looking statements''. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Contact:
Plexmar Resources Inc.
Guy Bedard, President
(418) 658-6776
Paradox Public Relations
(866) 460-0408
(514) 341-0408
--------------------------------------------------------------------------------
Source: Plexmar Resources Inc.
Is Peak Oil Pessimism a Generation of Men Coming to Realise How Useless They Are?
Published on 4 Dec 2006 by Rob Hopkins in Transition Culture
http://www.energybulletin.net/23308.html
COMMENTS TO ABOVE ARTICLE IN FOLLOWING BLOG:
http://tinyurl.com/ymo85s
rabblerouser,
I'm eager for that pop to occur with NVT.
I know we're still waiting for assay results, but I think that the elections in Ecuador might have scared a few potential investors.
Any thoughts?
sumisu
http://www.nortecventures.com/
Gammon Lake Continues to Increase Mine Production, Producing 23,769 Gold Equivalent Ounces in November
Tuesday December 5, 8:45 am ET
TSX: GAM / AMEX: GRS / BSX: GL7
Combined Production in November from Ocampo and El Cubo Amounts to 14,142 Ounces of Gold and 464,186 Ounces of Silver
HALIFAX, Dec. 5 /PRNewswire/ - Gammon Lake Resources Inc. ("Gammon Lake") (TSX:GAM and AMEX:GRS) is pleased to announce a continued and significant increase in monthly production during November 2006. Combined production from Gammon Lake's Ocampo Gold-Silver Mine in Chihuahua, Mexico and El Cubo Mine in Guanajuato, Mexico amounted to 14,142 ounces of gold and 464,186 ounces of silver during the month of November 2006.
The following table summarizes the combined realized production during the month of November from Gammon Lake's Ocampo and El Cubo Mines as the Company continues to ramp up to full production at Ocampo.
-----------------------------------------------------------------------
November 2006 Gold-Silver Production
-------------------------------------------------------------------------
Ocampo El Cubo Combined
-------------------------------------------------------------------------
Gold (oz.) 11,015 3,127 14,142
-------------------------------------------------------------------------
Silver (oz.) 336,342 127,844 464,186
-------------------------------------------------------------------------
Gold Equivalent(1) (oz.) 18,008 5,761 23,769
-------------------------------------------------------------------------
Jagman,
A breather here would be healthy, but the status of the dollar is really driving these prices. My GG has rebounded nicely too.
It was a long May - October for us, but things have aligned nicely.
I'm still concerned about the carry trade out of Japan.
http://www.gold-eagle.com/gold_digest_05/ci120206.html
The Fed is in a corner; any cut in rates will weaken the dollar and reduce it efforts in controlling inflation (although it continues to print money like mad) and it can't raise rates to control inflation, as it would put another nail in the coffin of the economy and consumer spending.
Stay tuned; anything could happen, imo.
sumisu
Majestic Gold Receives Drilling Results From Song Jiaguo
Wednesday November 29, 7:01 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 29, 2006) - Majestic Gold Corp. ("Majestic") (TSX VENTURE:MJS - News) is pleased to announce drill results from the next five diamond drill holes of its nine-hole surface core drilling 2006 exploration program at the Song Jiaguo Project located in eastern Shandong Province, China. Majestic's program is designed to test high grade gold bearing structures adjacent to a broad zone of potentially bulk-mineable gold mineralization was the subject of an independent resource estimate, released on April 25, 2006. The 3,700 metre surface core drill program is now complete, while an additional 18-hole underground drill program is currently underway.
Highlights of the recent results include:
High Grade Targets:
Hole SJ06-29:
- Aggregate of intervals of 28 metres of 2.36 grams/tonne gold, including:
- 1 m of 6.91 grams/tonne gold; and
- 12 m of 1.64 grams/tonne gold, including
- 1 m of 7.88 grams/tonne gold; and
- 1.4 m of 6.02 grams/tonne gold; and
- 5 m of 2.65 grams/tonne gold, including
- 1 m of 9.18 grams/tonne gold
Hole SJ06-31:
- Aggregate of intervals of 7 metres of 4.67 grams/tonne gold including:
- 1 m of 13.02 grams/tonne gold; and
- 1 m of 4.80 grams/tonne gold
Hole SJ06-32:
- Aggregate of intervals of 32 metres of 2.83 grams/tonne gold including:
- 31 m of 2.87 grams/tonne gold, including
- 1 m of 21.00 grams/tonne gold; and
- 1 m of 30.24 grams/tonne gold
Hole SJ06-33:
- Aggregate of intervals of 3.8 metres of 2.52 grams/tonne gold including:
- 1 m of 4.27 grams/tonne gold
Hole SJ06-35:
- Aggregate of intervals of 7.0 metres of 9.02 grams/tonne gold, including:
- 2 m of 6.10 grams/tonne gold; and
- 2 m of 21.63 grams/tonne gold, including
- 1 m of 41.51 grams/tonne gold
Bulk Mineable Targets:
Hole SJ06-29:
- 56.0 m of 0.88 grams/tonne gold, and
- 13.0 m of 1.29 grams/tonne gold, within
- an aggregate of intervals of 130.4 m of 0.69 grams/tonne gold
Hole SJ06-31:
- 8.0 m of 0.87 grams/tonne gold, within
- an aggregate of intervals of 71.2 m of 0.68 grams/tonne gold
Hole SJ06-32:
- 73.0 m of 1.35 grams/tonne gold
Hole SJ06-33:
- 11.3 m of 0.66 grams/tonne gold
- an aggregate of intervals of 37.8 m of 0.55 grams/tonne gold
Hole SJ06-35:
- 54.0 m of 1.26 grams/tonne gold, within
- an aggregate of intervals of 61.0 m of 1.24 grams/tonne gold
Assay results for these five holes are compiled in the accompanying Table 1 (see appendix A or visit www.majesticgold.net). Hole SJ06-34 contained no significant intercepts.
These holes tested approximately 260 metres of strike length in the central portion of the mineralized zone that has been traced for approximately 600 metres. They were designed to assess the area between previously tested holes SJ06-27, 28 and 30 (results of which were announced on August 31, 2006) and another area where underground cross cut samples have been taken.
"These holes along with three previously reported and the underground channel sampling continue to demonstrate the strength and continuity of the gold system at Song Jiaguo," said John Zimmerman, Majestic's head of exploration. "The results support our belief that we can develop both a high grade underground mine and an open pit for the lower grade material."
Majestic has commenced a 1,200 metre underground drill program to further define the resource at Song Jiaguo. The program will consist of 18 drill holes to test additional targets and areas of insufficient data in the resource model announced in April of 2006. Channel sampling of the walls of Levels 1 and 2 is also being conducted at this time.
These results, combined with channel samples of Levels 3 and 4 along with the surface and underground drill results, will provide comprehensive data from approximately 600 metres of strike length and extending from surface to over 400 metres below. The mineralization is related to at least seven sub-parallel "high grade" northeast trending (045 degrees to 075 degrees), southeast dipping structures (45 degrees to 85 degrees).
At Song Jiagou Majestic's Chinese partner, Muping Mining, is currently producing 120 tonnes per day from four underground levels and local villagers were previously mining a similar amount from open pits and shallower underground workings. Majestic's future plans are to transfer the existing operations into the joint venture company and, once better controls on the high grade structures are established, increase the size and scope of the production.
All core from the 2006 drill program is logged, split, stored and shipped under the supervision of Neil Willoughby, P. Geo., Majestic's Qualified Person. Samples were stored in Majestic's local office and packaged and freighted directly, to SGS Tianjin Geochem Lab, China, for analysis. The samples were assayed using a standard six element ICP package and gold analysis was conducted by standard fire assay.
This news release was reviewed by Qualified Persons as defined by National Instrument 43-101, including Rod Husband, P. Geo., who has prepared the technical information contained herein.
On Behalf of the Board of Directors
Rod Husband, P.Geo., Director
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Investor Relations
Majestic Gold Corp.
(604) 681-4653 or 1-866-282-8398
Email: info@majesticgold.net
Website: www.majesticgold.net
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Source: Majestic Gold Corp.
Dr. Michael A. Berry to Join Dejour Board of Advisors
Monday December 4, 1:39 pm ET
TSX-V: DJE
VANCOUVER, Dec. 4 /CNW/ - Dejour Enterprises Ltd. (TSX-V: DJE - News, DJE.WT - News) is pleased to announce the appointment of Dr. Michael Berry to its Board of Advisors, consulting to the Company on financial affairs.
Dr. Berry is a pioneer in the emerging field of "discovery investing" - investing in companies that focus on discovering natural resources or developing new medical and high technology. In 1999, he recognized the global commodity cycle and developed techniques for wealth creation through discovery in energy and mining companies.
Previously, Dr. Berry successfully managed small and mid cap value funds for Heartland Advisors and Kemper Scudder. His research in the study of behavioural strategies for investing has been published in numerous academic and practitioner journals.
Dr. Berry was a professor of investments at the Darden School, University of Virginia, and has held the Wheat First Endowed Chair at James Madison University. He publishes daily 'Morning Notes by Michael Berry', discussing geopolitics and their effect on capital markets. His contact information is isa529(at)aol.com.
"Mike Berry is an inspiration in the field of discovery investing. He has provided Dejour management with enlightened insight focused on the needs and opportunities of the public market states Robert L. Hodgkinson, Chairman and CEO. "It is anticipated that Dr. Berry will greatly assist Dejour to maximize market exposure as Company energy strategies continue to evolve."
Mr. Berry's contract with Dejour will span an initial term of two years, and include 200k options vesting over that period, with a monthly retainer subject to certain provisions.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS RELEASE.
For further information
DEJOUR ENTRPRISES LTD., Robert L. Hodgkinson, Chairman and CEO, Suite 1100-808 West Hastings Street, Vancouver, British Columbia Canada V6C 2X4, Telephone: (604) 638-5050, Facsimile: (604) 638-5051, Email: investor@dejour.com, www.dejour.com
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Source: Dejour Enterprises Ltd.
Dr. Michael A. Berry to Join Dejour Board of Advisors
Monday December 4, 1:39 pm ET
TSX-V: DJE
VANCOUVER, Dec. 4 /CNW/ - Dejour Enterprises Ltd. (TSX-V: DJE - News, DJE.WT - News) is pleased to announce the appointment of Dr. Michael Berry to its Board of Advisors, consulting to the Company on financial affairs.
Dr. Berry is a pioneer in the emerging field of "discovery investing" - investing in companies that focus on discovering natural resources or developing new medical and high technology. In 1999, he recognized the global commodity cycle and developed techniques for wealth creation through discovery in energy and mining companies.
Previously, Dr. Berry successfully managed small and mid cap value funds for Heartland Advisors and Kemper Scudder. His research in the study of behavioural strategies for investing has been published in numerous academic and practitioner journals.
Dr. Berry was a professor of investments at the Darden School, University of Virginia, and has held the Wheat First Endowed Chair at James Madison University. He publishes daily 'Morning Notes by Michael Berry', discussing geopolitics and their effect on capital markets. His contact information is isa529(at)aol.com.
"Mike Berry is an inspiration in the field of discovery investing. He has provided Dejour management with enlightened insight focused on the needs and opportunities of the public market states Robert L. Hodgkinson, Chairman and CEO. "It is anticipated that Dr. Berry will greatly assist Dejour to maximize market exposure as Company energy strategies continue to evolve."
Mr. Berry's contract with Dejour will span an initial term of two years, and include 200k options vesting over that period, with a monthly retainer subject to certain provisions.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS RELEASE.
For further information
DEJOUR ENTRPRISES LTD., Robert L. Hodgkinson, Chairman and CEO, Suite 1100-808 West Hastings Street, Vancouver, British Columbia Canada V6C 2X4, Telephone: (604) 638-5050, Facsimile: (604) 638-5051, Email: investor@dejour.com, www.dejour.com
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Source: Dejour Enterprises Ltd.
Goldcorp Provides Penasquito Project Update in Advance of Analyst Tour
Friday December 1, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 1, 2006 -- GOLDCORP INC. (TSX:G.TO - News)(NYSE:GG - News) today provided an update on project development and recent drilling activity at its Penasquito project in Zacatecas, Mexico. Goldcorp will host an analyst tour of the property later next week.
Drilling Results
Since the updated feasibility study was completed in July 2006, Goldcorp has drilled 150 core holes representing nearly 80,000 meters, which includes condemnation drilling and over 50 exploration holes around the Penasco and Chile Colorado pits. Results of this latest activity have identified significant intersections that continue to support the potential for resource expansion in 2007.
This recent phase of drilling at Penasquito focused on defining the western limits of mineralization for the purposes of plant, facilities and airstrip placement. Holes were widely-spaced-an average of 200 meters apart-and were concentrated outside of the Penasco and Chile Colorado pit outlines. Some highlights include:
- Very strong mineralization in hole GP-422, extending mineralization to the west of the Penasco pit.
- Results of hole GP-396 demonstrate ore grade intervals that extend north and east of the Chile Colorado pit boundary.
- Mineralization remains open west of Penasco pit and northeast of Chile Colorado pit with potential for a continuous mineralization zone nearly three kilometers in length.
- The complete Penasquito drillhole database, including corresponding cross section and drill hole maps, will also be available on our website at www.goldcorp.com/gold_projects/penasquito.
Penasquito Exploration Plans
In light of the widely-spaced nature of the drilling program undertaken since the July 2006 feasibility update, the primary goal in 2007 will be to complete in-fill drilling in order to convert resources into reserves. Six core drill rigs will continue to operate at Penasquito, with a total exploration budget of $20 million in 2007. The Company will also continue to evaluate promising regional exploration targets, including Nochebuena, Los Lobos and Saltillito.
Penasquito Project - Select Drill Data Results
(Note: Metal Prices for Gold Equivalent in USD: $450/oz. Gold,
$7/oz.Silver, $0.60/lb Lead, $0.30/lb Zinc)
Continued in following link:
http://biz.yahoo.com/iw/061201/0190333.html
Got Gold Report - Gold and Silver ETFs in Hot Demand
By Gene Arensberg
02 Dec 2006 at 03:54 PM EST
http://www.resourceinvestor.com/pebble.asp?relid=26755
Got Gold Report - Gold and Silver ETFs in Hot Demand
By Gene Arensberg
02 Dec 2006 at 03:54 PM EST
http://www.resourceinvestor.com/pebble.asp?relid=26755
CDR,
You have a nifty and well diversified portfolio.
My goal is to achieve what you have achieved. I hope to do it through gains in the precious metals and energy markets.
I do have a 401K plan and just let that accumulate monthly.
CDE was the first stock that I bought when I began investing in 2005. I have bought and sold it at least 10 times and it has always provided me good gains. (Trading within a rollover IRA - no taxes on trading.)
Good that you own AUY!!!
sumisu