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masher, when I post please dont read them, i dont pump, i try to give peace of mind. So if you do not like what I do, please dont read. You want pump, go to the yahoo board. Would you honestly like me say , darn, I havent talked to PEREZ FOR MONTHS, WOULD THAT MAKE YOU FEEL BETTER. NOT!!!!! News will be coming, what do I dont know, and if I did, I wouldnt say, cause that my friendd is pumping
masher, Perez is running the company, not the stock. Guess you must of missed the last press release then also, to much
masher, where did I say he said this or that, point it out and i will but you lunch, you must think I am stupid or something, NOT. Show me something specific buddy
fsail, thankyou for that. Wether there is a direct correlation or wether there will be a direct correlation between BESE and USAU, I do not know, I basically concern myself with USAU
masher, you are starting to become a rambling fool. Of course news will come, thats a no brainer, sounds to me you didnt pay last months rent
masher, what I speak to Mr. Perez about is between myself and him. If you do not know what goes on behind the scenes in the mining business, then you should be calling him and let him tell you what he wishes to tell you. He is highly accessible, but of course there are things that he cannot divulge, and he may say things that I cannot divulge, so I wont take the chance. There is filings being done, negotiations being done, paperwork and the like. Call him, and let him tell wou what he wishes. I dont spread info that may be considered inside info, you should know better than that, jail is no fun, nor are fines.
World Gold Council: Gold fundamentals remain strong
* Press release
Published 2/2/2010
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LONDON, February 2 /PRNewswire/ -- Suggestions of a gold price 'bubble' do not take account of gold's market fundamentals, which remain robust, said World Gold Council. The gold price has been building steadily for nine consecutive years, ending 2009 25% higher than on 31 December 2008 at US$1087.50/oz. The PM gold fix in London on Monday 1 February, 2010 was US$1086.50/oz.
Aram Shishmanian, Chief Executive Officer, World Gold Council on gold's trading range:
"The sustained break above the key US$1000/oz level came in early September, with record highs being tested repeatedly over the remainder of 2009. The current trading range should not be regarded as an overnight spike, but the result of a measured rise, supported by favourable and robust gold fundamentals."
Marcus Grubb, Managing Director, Investment, World Gold Council on gold demand:
"Investor flows, more specifically from western markets, have provided a key means of support during the course of the credit crisis as investors sought to diversify their exposures to other assets and protect their wealth against the current ravages of the global economy as well as future market shocks. These western investor flows appear to have remained resilient even as the global economy has shown signs of recovery. Furthermore, evidence suggests that even the more tactical elements active in the gold market are being firmly driven by positive sentiment toward gold's fundamentals. Further price support was provided by a progressive recovery in jewellery demand after a pressured first quarter.
"The diversity in gold demand cited above is expected to continue across multiple sectors and geographies. It is this diversity which has helped insulate the precious metal from shocks impacting other assets. More tangible signs of economic recovery in the second half of 2009, especially in developing economies, also continue to provide support to the gold price."
Aram Shishmanian, Chief Executive Officer, World Gold Council on gold supply:
"Robust demand should also be viewed in the context of constrained supply. Significant drivers of the gold price were also apparent on the supply side in 2009. Traditionally, central banks have been suppliers of gold, but this is starting to change. Over the course of 2009, the market saw a structural shift in central bank reserve management as western central banks slowed gold sales and developing nations added to their gold reserves. Other factors contributing on the supply side were sizeable pockets of de-hedging activity, although most major producer hedge books have now been unwound, and a reduction in the supply of recycled gold to market from the extremely high levels seen in the first quarter of 2009."
no need for concern, thats just a figure of speeck. If you need to pay last months rent, then that could be an issue
had an at length chat with Mr. Perez and I am 100% comfortable that USAU will succeed under his and the rest of managements guidance. A lot is going on in the background and sooner or later we will be privy to it, have a good one
fsail, it sure is hard
those cheer leaders more than likely constitute day traders hopefully trying to make a quick buck. Good for them if they can. Stick to the long term agenda, then you wont be left with your shorts around your ankles
Why Gold Prices Could Double Within The Next Year
Published on:
Wednesday, January 27, 2010
Written by:
Martin Hutchinson
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With the dollar falling to a 15 month low earlier this month, and central banks and hedge funds increasing their investments in the yellow metal, gold prices should see significant increases in 2010. While some experts believe that gold prices could hit $2000 per ounce within five years, some analysts believe that gold prices could hit that number this year. See the following article from Money Morning for more on this.
gold peak 2000
Gold surged over 60% in 2009, hitting new highs practically every week.
But, who cares?
We haven't seen anything yet. This is just the beginning of one of the biggest gold rallies in history.
Gold will easily hit $2,000 this year. That's a 73% gain from current levels.
But, make no mistake... Like any other bubble, this one will also eventually pop. So the time to get into gold is now.
It's going to be a wild ride. So hang on and get ready to make a fortune on gold in 2010.
Gold's Only Halfway to Its True High
As gold continues to shatter new highs, analysts and pundits have started to wonder if gold is peaking. But the reality is that gold has barely gotten going.
Its 1980 peak of $875 is equivalent to $2,400 per ounce today - more than double the current price. And there's nothing holding gold back from hitting those numbers.
The Federal Reserve's loose monetary policy has put the dollar under duress. The central bank has pumped more than $2 trillion into the U.S. economy since the financial crisis began over two years ago. It lowered the benchmark Federal Funds rate to a record low 0%-0.25% range and it has stepped up purchases of U.S. Treasuries and mortgage-backed securities.
As a result, the dollar tumbled about 20% against the euro in the past year. The Dollar Index - which measures the greenback against the euro and five other currencies - fell to a 15-month low earlier this month.
With the dollar in freefall, central banks and hedge funds have sought shelter in hard assets, particularly gold.
"Everything is pointing to the price of gold going higher," said Mike Sander, an investment advisor at Sander Capital Advisors.
Global Demand Will Push Gold to $2,000
One catalyst of gold's rally happened in early December when the International Monetary Fund revealed that it sold 200 metric tons of gold to the Reserve Bank of India (RBI) from October 19 to 30. This purchase was equivalent to 8% of the world's annual mine production and doubles India's gold holdings.
Analysts believe India's highly publicized purchase will spawn a chain reaction in which other countries and investors ramp up their gold purchases.
"This is a landmark trade," said Jonathan Spall, a director at Barclays Capital, told the Financial Times. "Central banks are conservative institutions and India's move is a sign for other central banks and sovereign wealth funds that were contemplating buying gold."
And, with 203.3 metric tons still on sale at the IMF, don't be surprised if China decides to bulk up on gold too. China, the world's sixth-largest holder of gold, has increased its reserves by 76% since 2003.
It's clear that worldwide demand for gold is clearly on the upswing. However, just as that is happening, supply and production for the yellow metal are falling.
Annual worldwide mine production of gold has decreased by nearly 8% since 2001, even as the price of gold has tripled.
Meanwhile, investment demand for gold remains strong, surging 46% in the second quarter of 2009 over a year ago, according to the World Gold Council.
What's more, a number of the larger hedge funds are beginning to invest in physical commodities, instead of futures. They're worried that the U.S. government will put position limits on futures. This is a big deal because this further limits the supply of gold and other commodities.
In short, everything is working together to create a major bull market for gold.
When Will the Bubble Pop?
Consider the amount of money sloshing around the world right now - China's $2.2 trillion in reserves, India's $285 billion in reserves, all of the money in central banks throughout the Middle East. If all the serious money charges into gold and gold really gets going, you'll see a tremendous spike in prices.
But, everyone who says that gold will hit $2,000 in five years is wrong. It will be back down in 5 years. If it's going to $2,000 - and almost every analyst thinks it will - it will get there in 2010.
Everything will turn around when central banks start taking monetary policy seriously, and they won't do that in a hurry. They won't turn off the money taps until consumer inflation rises. But when inflation does rise, the central banks will react quickly and forcefully - driving up interest rates dramatically. And, suddenly, gold won't seem so attractive anymore.
Gold's bull run is a bubble, just like all the other bubbles. Except this is more of a bang than a bubble, because it's taking place so quickly. So, keep an eye on inflation and those central banks and be prepared to get out of the bubble before it pops.
How to Profit from the Gold Bubble
The time to take advantage of gold's historic rise is now... before prices come tumbling back down. Here are four ways to make a killing on the gold rush:
Market Vectors Gold Miners ETF (NYSE: GDX): Gold miners benefit disproportionately from a rise in the price of gold, because their production costs are fixed. This means that miners are a more-leveraged way to play gold than the metal itself, particularly since surging speculative demand can increase mining companies' Price/Earnings (P/E) ratios.
Barrick Gold Corp. (NYSE: ABX): Barrick is the largest and financially strongest gold producer, with a market capitalization of $43 billion, reserves of 124.6 million ounces of gold (plus copper and silver), and operations in North America, South America, Australasia and Africa.
Yamana Gold Inc. (NYSE : AUY): A growing gold producer with a $6.8 billion market capitalization that made an unexpectedly good profit in the fourth quarter of 2008, Yamana is expanding both production and reserves (currently 19.4 million ounces) with operations in Canada and Latin America. Its expansion magnifies the likely potential benefit from an increase in gold prices.
This article has been republished from Money Morning. You can also view this article at Money Morning, an investment news and analysis site.
fsail, turn on your computer, do your stuff and dont dwell on usau everyday. You have your position, and if you are holding long look again in a few months. If you feel comfortable, add at these low prices and maybe play it abit, just sit on your core holdings
i think with gold recovering we will see usau frirm up, and then of course news would be a bonus
What's a Company's Gold Worth?
Louis James & Andrey Dashkov
Casey's International Speculator
Jan 31, 2010
At any given time, there's a single international spot price for an ounce of refined gold. Gold is priced in U.S. dollars: $1,076.50 per ounce as we go to press. But what about the gold an exploration or mining company has in the ground - how do we value that?
Given sufficient data, you can estimate a reasonable net present value (NPV) for a project and deduce what each of the company's ounces should be worth. To do this, you need to know annual output of the proposed mine, proposed capital expenditures, energy and other costs, and many more things. For most deposits held by the junior companies we tend to follow, there's just not enough data available.
Another approach is to compare the value the market is giving a company per ounce of gold in hand against the average value the market gives companies with similar ounces.
The most obvious way to define "similar" ounces in the ground is to use the three resource and two mining reserve categories defined by Canada's National Instrument NI43-101 regulations - the industry standard. We combine these into three broad groups, as we believe the market tends to do as well:
Inferred: the lowest-confidence category, based on just enough drilling to outline the mineralization.
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Measured & Indicated (M&I): these higher-confidence categories have been drilled enough to establish their geometry and continuity reasonably well.
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Proven & Probable (P&P): These are bankable mining reserves - basically Measure and Indicated resources with established value.
So, what does the market give a company, on average, for an Inferred ounce of gold? M&I? P&P?
To answer this, we combed through every company listed on the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSX-V) and pulled out the ones with 43-101-compliant gold resource estimates (or mostly gold) - no silver, copper, etc. Of these, we kept only those with resources that fall almost entirely into only one of our three broad groups: Inferred, M&I, and P&P. In other words, we did not include companies with half Inferred and half M&I resources (though we did include companies with mostly P&P reserves, because most are producers - or soon will be - and are regarded that way). That left us with about 90 companies to calculate some averages on.
That's not a large sampling universe, and we had to make some judgment calls when it came to defining what companies should fall in each category, but it's what we have. So take these averages with a large grain of rock salt, but here they are:
US$20 per ounce Inferred
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US$30 per ounce for M&I
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US$160 per ounce for P&P
Armed with this information, if you didn't know anything else about an M&I resource (political risk, type of ore, etc.), but you saw that the company that owned it was trading at $10 per ounce, whereas its peers are valued at around $30 an ounce, you can conclude that there must either be something very wrong with the project or the stock is a great speculation. If there's nothing wrong with the project, there's an implied growth potential in the stock price, based on the difference between what the company is getting per ounce and the market average for similar ounces. In this case, it would be:
$20 x # Ounces ÷ # shares.
As a matter of perspective, a few years ago the market was giving a company about $25 per ounce Inferred, $50 for M&I, and about $100 for P&P. Then, when gold ran up over $1,000 before the crash of 2008, these valuations went out the window, and some companies were getting over $100 for merely Inferred ounces - do we have your attention now?
Conversely, just after the crash, there were companies having a hard time getting $10 for M&I. That was clearly a sign that it was time to buy, and we did, with gusto.
It's also why, when the Mania phase gets underway, we'll be selling into it as gold approaches the top; we will not be attempting to time the top. It's far better in this business to be a day early than a day late.
Today, the market is willing to pay more for advanced and producing stories ($160 P&P) but is discounting earlier-stage stories, hence the lower M&I valuation than in previous years ($30). These figures will change again as the market's appetite for risk changes.
Now let's compare these numbers to those of a few sample gold companies. This table includes the market capitalizations (share price x # shares) of our sample gold companies expressed in USD (because that's what gold is priced in), not the usual CAD. The second column has the value of each company's resources, as per the average numbers given above (i.e., [# Inf. ounces x $20] + [# M&I ounces x $30] +[# P&P ounces x $160]). The implied growth is a simple ratio of these two numbers, expressed as a percentage.
Gabriel and Coral Gold look pretty cheap, Luiri slightly expensive, but in most cases there are good reasons for this. For example, these averages by confidence category ignore the typically greater cost of extracting gold from low-grade sulfide ore, as compared to high-grade oxide ore.
We don't follow the companies in the table above -- they are just examples -- but here's our take on their implied growth ratios:
LGL: Luiri's flagship Luiri Hill project, located in Zambia's Central Province, has only 800,000 ounces in total resource, 82% of which fall within the least reliable Inferred category.
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Although the current resource estimate is based on lower-grade material, the company's gold looks fairly valued. However, LGL is working to define more high-grade areas of mineralization both within and outside the resource boundaries, and not without success. For example, drilling from the Matala deposit, lying in the heart of Luiri Hill, has delivered high-grade intercepts from the central shallow zones, like the recently published 21.1 g/t Au over 5.6 m (starting from 56 m), including 41.1 g/t Au over 2.8 m (starting from 56 m of the same hole #114).
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Conclusion: The company looks a bit expensive at the moment, probably because the market sees Luiri's upside potential coming from the new high-grade ounces being added in forthcoming resource estimates. If the marker were underestimating how much gold Luiri might be adding, it could still be a good speculation, but you'd have to be pretty sure of your calculations projecting that greater value to be added soon.
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GBU: Gabriel Resources appears undervalued when using average ounce prices, plus there is a lot of upside outlined in the economic study on the company's Rosia Montana project in Romania, released last March. The study suggests excellent project economics, including low cash cost (US$335/oz), after-tax NPV of almost 1 billion USD at 5% discount, and after-tax IRR of 20.4%, all at an uber-conservative US$750/oz base case gold price.
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However, the company was sued by environmentalists in September 2007 and suffered regulatory setbacks. GBU shares tanked, and this is why the company's gold is still selling at a discount; there is high political risk. Gabriel's share price has soared recently on words of support from the government officials, but it's still perceived - rightly - as high-risk. If Rosia Montana gets permitted to go into production, GBU shares should make very rapid gains.
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Conclusion: The government of Romania has made supportive noises about Rosia Montana before, to no avail, and the company doesn't appear screamingly cheap right now, so the risk-to-reward ratio looks too high to us.
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CLH: The company is focused on the Robertson project located on the Cortez Trend in Nevada. Coral Gold has recently revised the project's resource estimate at $850/oz gold (which looks fairly conservative, given the recent price action) to 3.4 million ounces, all Inferred. Our guidelines suggest that these ounces should be worth about US$68 million. Mind you, this gold is contained within what CLH believes to be well-known Carlin-type mineralization in a mining-friendly jurisdiction. Why does the market value these ounces way cheaper then?
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We think it's a metallurgy issue. Lacking sufficient metallurgical data from all Robertson targets, CLH used numbers from a deposit called 39A to stand in for the whole project. The problem is that 39A is one of the deeper Robertson deposits, and large-scale heap leach operation, the preferred scenario for Robertson, showed high strip ratio, which would probably result in high capital expenditures and operating costs.
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Conclusion: Robertson ounces are cheap due to valid concerns over the project's economics. If the company can fix these problems, its resources could be revalued upward dramatically.
Bottom Line
We often get asked what an Inferred, or M&I, or P&P ounce is worth in the ground. The $20, $30, and $160 figures are only rough guides, and you must consider the reasons why some ounces are given more or less by the market, but they're a good starting point.
What makes Casey's International Speculator so different from other investment newsletters? You don't just get stock picks, you get an education and before you know it, you'll be recognized as the mining expert in your social circle. And most likely as "the wealthy guy" as well.
For more on how Canadian junior mining stocks can literally make fortunes for smart investors, click here.
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Jan 29, 2010
Casey Archives
321gold Ltd
dont believe the company will fund down here, makes no economic sense to me. Anyhow a little read for the weekend
Time to load up on gold and silver?
by Martin D. Weiss, Ph.D.
Dear Customer,
I sincerely hope you're spending some time each day over at my personal blog. If you're looking for extremely valuable investing insights and ideas from your fellow investors and yours truly, it's definitely a place to visit.
Our topic all week long has been: How do YOU build the optimum growth portfolio for 2010? And so far, we've covered THREE major areas: (1) U.S. stocks, (2) foreign stocks and (3) income investments.
That's why, yesterday, we asked ...
Do FIXED-INCOME INVESTMENTS have a place in your portfolio? For income, safety or a proxy for cash?
And if so, what kinds do you own? U.S. Treasuries? Corporate bonds? Municipals? Short-, medium- or long-term maturities?
What other kinds of income investments do you like?
Your responses are, as before, either intriguing or exciting ...
Carole seems to be a dyed-in-the-wool Treasury investor: "I am currently holding U.S. Treasuries (Mutual Fund) long, medium and short term equally. I plan to move away from the long term and emphasize shorter term on these."
Norman W. is totally OUT of U.S. Treasury bonds: "The FED will have to raise rates," he says. "However, even before that I believe foreign demand for our bonds will dry up.
"International bonds are an option. The U.S. dollar should resume its slide in the second quarter of this year, thus inflating yields on international bonds."
Plus, with interest rates so low, I was not surprised to see that many investors have moved from U.S. Treasuries to higher yielding (and higher risk) investments ...
Jimmy B. swears by annuities: "Much of my funds are in Fixed Indexed Annuities that have no downside other than inflation's effect but if the index goes up the return can be reasonably good."
Tom D. writes "I prefer quality dividend-paying stocks that pay decent and consistent yields. I prefer stocks that are for "basic needs" like energy, utilities and consumer staples. If the stock prices decline, the yields increase."
Coleman G. comments "I found WisdomTree International Dividends Ex-Financials (DOO). It seems to have exactly what the income seeking investor wants: The highest dividend-paying stocks from around the world, including the U.S., except for financials (which means these companies must make a PROFIT and then give some of that profit via DIVIDENDS to shareholders)."
Warren W. reports that he owns "... High-yield corporate bond funds, funds that own convertible securities, foreign and emerging market bond funds ... and a Senior Debt Fund."
Overall, if I'd have to rank our readers response, it looks like a third to one-half are income investors and that 80% or more count on vehicles other than U.S. treasuries for their income portfolios.
So, in terms of building a great portfolio for 2010, our readers seem to be giving Treasury bonds a pretty low rating, probably a one or a two on a scale of one to ten.
Now, it's time for today's question:
Is this the time to load up on gold, silver and other precious metals ... or not? Why?
How much of your portfolio have you invested? Do you plan to buy more in the months ahead?
Which are your favorites? Gold? Silver? Platinum? Palladium?
Your answers will go a long way towards helping me help YOU build a more profitable portfolio for 2010.
Just click this link and leave a comment to share your thoughts. I'll add my own thoughts over the weekend or on Monday.
Good luck and God bless!
Martin
About Money and Markets
For more information and archived issues, visit http://www.moneyandmarkets.com
Just a little sideline to our USAU investment. Looks like uranium is going to be coming back in vogue
Obama Said to Seek $54 Billion in Nuclear-Power Loans (Update1)
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Daniel Whitten and Hans Nichols
Jan. 29 (Bloomberg) -- President Barack Obama, acting on a pledge to support nuclear power, will propose tripling loan guarantees for new reactors to more than $54 billion, two people familiar with the plan said.
The additional loan guarantees in Obama’s budget, which will be released Feb. 1, are part of an effort to bolster nuclear-power production after the president called for doing so in his State of the Union address Jan. 27. Today, the Energy Department plans to announce creation of a panel to find a solution to storing the waste generated by nuclear plants.
“To create more of these clean-energy jobs, we need more production, more efficiency, more incentives,” Obama said in his speech. “That means building a new generation of safe, clean nuclear-power plants in this country.”
For the 2011 budget, the department will add $36 billion to the $18.5 billion already approved for nuclear-power plant loan guarantees, according to the people, who asked not to be identified because the budget hasn’t been released. Congress started the program in 2005 to encourage new plant construction, but the department has yet to issue a loan guarantee.
“Senate Republicans support building 100 new plants as quickly as possible -- we hope Democrats will join us in that effort, particularly now with the president’s call to action,” Senate Minority Leader Mitch McConnell of Kentucky said on the Senate floor yesterday. “And the president could start by moving forward on the nuclear loan guarantee program.”
‘Bureaucratic Fretting’
Loan guarantees have been delayed partly because the industry must pay the expected long term liability the government incurs in issuing the guarantees, and companies are arguing for a smaller industry share than the government wants them to pay, said Michael McKenna, president of MWR Strategies, a consulting firm in Washington.
“I am not sure there will be enough demand ultimately to support $54 billion in new guarantees,” McKenna said, pointing to falling U.S. electricity demand and new discoveries of natural gas. “The amount of bureaucratic fretting has been enormous,” he said.
Nuclear plants accounted for 20 percent of U.S. power generation in 2008, according to the Energy Department. Generation was off 13 percent through October of 2009 compared to the same period in 2007, before the worst economic slump since the Great Depression hit the U.S. economy.
Industry groups such as the Washington-based Nuclear Energy Institute have said the loan guarantees are critical to reviving the industry because most companies can’t afford the capital investment in a facility that can take a decade to complete. The institute in a December report put the cost of a reactor at as much as $9 billion.
Southern Co.’s Reactors
Southern Co. of Atlanta expects to be the first to get a loan guarantee, in two or three months, which may help it finance two additional nuclear reactors at its two-unit Vogtle plant in Georgia, Chief Executive Officer David M. Ratcliffe said in an interview Jan. 27.
Southern is among four companies that were put on a short list for loan guarantees last year. The others are Baltimore-based Constellation Energy Group Inc., NRG Energy Inc., of Princeton New Jersey for a plant planned in Texas, and Scana Corp., of Columbia, South Carolina.
“The four reactor projects that DOE considers top-tier are plagued with large cost increases, credit-rating downgrades, delays, and reactor-design problems,” said Michele Boyd, a nuclear opponent for Washington-based Physicians for Social Responsibility. “Why are U.S. taxpayers expected to promise to bail out the nuclear industry?”
‘Blue Ribbon’ Panel
The guarantees “can help project sponsors access lower-rate debt financing for clean-energy power projects,” said Richard Myers, vice president of policy development at the Nuclear Energy Institute. “This would act as a catalyst to accelerate construction of new nuclear plants.”
The Energy Department’s “blue ribbon” panel will study alternatives to the Yucca Mountain nuclear waste repository in Nevada, according to an administration official. It will be chaired by Lee Hamilton, a former Democratic congressman, and Brent Scowcroft, a former adviser to presidents Richard Nixon and George H.W. Bush, according to an Energy Department letter sent to commission members.
Obama has said he would halt work on the Nevada project and find another solution to handling spent nuclear fuel.
An Energy Department spokeswoman, Stephanie Mueller, said she couldn’t comment on the budget. Kenneth Baer, a spokesman for the Office of Management and Budget, didn’t immediately return a phone call. A White House spokesman declined to comment.
To contact the reporter on this story: Daniel Whitten in Washington at dwhitten2@bloomberg.net; Hans Nichols in Washington at hnichols2@bloomberg.net.
I agree with about March for the price of gold. I dont really like to speculate on where a stock will be at a specific time, but by years end, if i may, this stock will be much much higher
NOT SURE, anyhow here is an after hours good read
Money Is In For Gold
Thu, Jan 28, 2010
Feature Articles, Gold Articles
By Kishori Krishnan Exclusive To Gold Investing News
The horse is out of the barn, the damage has been done. Look at how the gold price has been dumped, from its lofty highs. But even as gold’s allure continues to weaken with risk-averse investors, there is someone who is making hay - gold miners.
These days, the same old story appears to be playing out for gold, with the dollar strengthening and gold prices weakening. There is clearly something going on here, something behind the scenes, which appears to be building up.
On Wednesday, gold fell from $1,102 to close at $1,088. Aiding the blues was the caution advisory by the US Federal Reserve that is close to beginning the process of normalizing monetary policy in the US.
All of it dampened gold`s allure as an inflation hedge. Sentiments were also nervous ahead of the FOMC rate decision, though the Federal Reserve is expected to leave the interest rate unchanged at a maximum rate of 0.25 per cent.
In terms of the broader economy’s trend, the FOMC noted that based on information received since the prior meeting in December, the economic environment in the US has continued to strengthen while problems in the labor market are subsiding.
Household spending is growing at a moderate rate but remains challenged by a weak labor market, modest income growth, lower housing wealth, and tight credit. As a result of this improvement, the FOMC confirmed its previously announced plan to withdraw many of its special liquidity facilities on February 1, 2010. That spooked the market.
Ben Bernanke is also expected to leave the wording of the FOMC Statement unchanged, with a renewed pledge to leave the rates low “for an extended period of time”. But remember, last month, it took the markets six hours to digest the statement before moving. It was too confusing and many could not digest it completely.
For the long term though, traders and fund managers were on the whole positive about gold this year, with prices seen averaging $1,150.50 an ounce in a Reuters poll of 60 analysts.
Gold prices also remained supported after Peter Munk, the chairman of the world`s largest gold miner Barrick Gold Corp (ABX.TO), said that while gold prices may be volatile, the rise was not yet over.
Hear that?
The holdings of the SPDR also remained unchanged at 1,111.92 tons as on January 27. One has to understand that the macroeconomic landscape also remains one that favors those asset classes that benefit from money printing and fiat currency debasement - namely gold price and gold mining stocks.
Investors can also breathe a sigh of relief that nothing that has occurred is dollar positive.
The economic reason for the dollar rally was the bullish Christmas “financial party prediction that is simply non-existent and therefore not sustainable. It is a business activity bottom bouncing experience that can easily have its bottom plug pulled now that everything has been sent into a state of flux”.
So says precious metals and commodities specialist Jim Sinclair, who advises: “Stay the gold course. Things are becoming more, not less of a mess, and it is not hard to see. Only gold can guarantee you against the madness of our financial leadership.”
As David Thurtell, an analyst at Citigroup said: “The dollar is stronger, and that is keeping precious under pressure. Also, a little bit of de-risking is there too.”
“The dollar strength has put some pressure on gold,” added Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. But Bradley George and Daniel Sacks, co-portfolio managers of the Investec Global Gold Fund said that they believe that gold has finally broken clear of the $700 to $1,000 per ounce range that dominated the last two years.
“We are probably in the process of finding out where the new higher range will be established. We believe that the degree of investment demand is likely to force a peak that is nearer $1,300 per ounce over the next six months with $1,000 an ounce becoming the long-term floor.”
Show me the money
And investment demand there is. Despite choppy trade, many gold miners have received or are in the process of getting private funds for exploring the precious metal.
Like Viking Gold Exploration Inc which has completed the second tranche of its non-brokered private placement for gross proceeds of $700,000, bringing the total raised under the two tranches of the private placement to $870,000.
In the second tranche, the company sold 14,000,000 units at a price of $0.05 per unit, with each unit being comprised of one common share and one common share purchase warrant.
Or even Gold Canyon Resources Inc (TSX V: GCU) which closed its previously announced private placement of common share units for gross proceeds of $1,500,000.
Each unit is comprised of one common share in the capital of the company. Sprott Asset Management, of Toronto, Ontario, acted as agent on behalf of certain funds and managed accounts, and purchased 7,100,000 units of this private placement for gross proceeds of $1,491,000.
International Millennium Mining Corp (TSX V:IMI) has also closed the second and final tranche of its private placement.
Further to the company’s news release January 20, 2010, the closing is with respect to 2,416,667 non-flow-through units representing additional cash proceeds of $145,000. Total cash proceeds of the placement is $811,784.
Maya Gold & Silver Inc (TSX V:MYA) has also closed a first tranche of the non-brokered private placement previously announced on December 22, 2009.
The company has raised $1.62 million through the issuance of 4.06 million units at a price of $0.40 per unit. The company anticipates that the final closing of the $2 million private placement will take place in the coming days.
New Guinea Gold Corporation (TSX-V:NGG) also announced that the private placement announced on December 15, 2009, had been completed for gross proceeds totalling $1.6 million.
Gryphon Gold Corporation (TSX:GGN) said that it proposes to offer for sale on a private placement basis to accredited investors up to 11,000,000 units at a price of C$0.17 per unit. The terms of the private placement have not yet been accepted by the Toronto Stock Exchange.
Helio Resource Corp (TSX-V:HRC) has also entered into a binding agreement with respect to the previously announced private placement financing for gross proceeds of $6,210,000.
The financing is for 11,500,000 units, each unit is comprised of one common share and one half of one common share purchase warrant.
Covenant Resources Ltd (CVA-CNSX), has also negotiated a non-brokered private placement of a minimum of 5,000,000 units and a maximum of 8,000,000 units at a price of $0.05 per unit, for total gross proceeds of a minimum of $250,000 and a maximum of $400,000.
Cornerstone Capital Resources Inc (TSX V:CGP) and Intrepid Mines Ltd (TSX-IAU) have announced that Intrepid has completed a $500,000 private placement in Cornerstone shares.
Under the terms of the LOI, Intrepid has the ability to earn an initial 60 per cent interest in the Shyri property by making a cash payment of $250,000, a $500,000 private placement in Cornerstone shares and spending $6.0 million dollars over 5 years, with a firm commitment of $1.0 million in the first year.
And even as Platinex Inc (TSX V:PTX), announced a private placement of up to $2.0 million of gross proceeds, Boxxer Gold Corp (BXX) announced its intention to raise up to $1,000,000 by way of a non-brokered private placement.
In conclusion - If private equity investors and investment firms are interested in placing their money on these gold miners, can they all be barking up the wrong tree?
Agreed, some companies doing private placements are said to have have poor fundamentals (and that is why they are privately funded), but one can’t brandish everyone, the good and the bad, with the same brush.
Check out for bad apples.
What makes more sense is to have a sensible plan for investing. Check that your plan is sensible, and develop `what if’ conditions for sticking to the plan and knowing how and when to cut your losses and survive if you are wrong.
Cause you could be wrong, but then again, you could be dead right too! So, stick to the golden rule: Stay invested.
Not sure where BESE fits in, and i dont own it. If you go long you will do well. Sit back, forget about it and retire
imho usau will do well, but one has to hold for 6-12 months to reap the benefits. Perez isnt doing this for fun, mind you, I am sure he enjoys what he is doing.
agreed, they are in for the long haul
masher, you are correct, and i am sure that type of news will be coming somewhere down the line. The good thing is PEREZ is now president, and he is a man on a mission. He has much more at stake here than probably all of us collectively. I am getting from your post re insiders being loaded. They have been acquiring stock for sure, but if you are impling they may sell, I highly doubt that. Have a good one
aye raider, i do think in all likeliehood we will be producing. Mr. Perez has that on his radar, and congrats to him re his new position, and to the rest of his team. One needs to just put this away and see where we sit by years end
NEWSSSSSSSSSSSS
USA Uranium Appoints John Perez as New President and Releases Highlights of the Occidental/Pasadena Mine
PALM DESERT, CA -- (MacReportMedia.com - Jan 28, 2010) - USA Uranium Corp. (PINKSHEETS: USAU) (http://usauranium.com) — Ken Berscht, Chairman and CEO of USA Uranium is pleased to announce John Perez as new President of USA Uranium. Mr. Perez the former Director of Communications has now assumed the role of President of USA Uranium. “Mr. Perez brings his experience in helping bring USA Uranium to the next level of developing an emerging exploration mining company which has focused on ‘Going where Gold is’ and was responsible for bringing Ken Berscht to the team as CEO of USA Uranium.
Mr. Perez will be responsible for all aspects of the Company’s growth and development with the focus on advancing historic producers and the newly acquired Occidental/Pasadena Mine in Imperial County just 29 miles from the largest open pit goldmine in California, “The Mesquite Mine” operated by New Gold Inc.
Mr. Perez working with Dr. Earl Abbott, PhD. will also be responsible for advancing historic producer La Dama De Oro near Victorville, CA where environmental permitting has begun on the property. Both properties are being prepared to clear the way for new geological updates to prepare NI 43-101 compliant technical reports and reviewing work programs to bring these historic producers closer to production.
Mr. Perez is a precious metals trading specialist in the gold and silver bullion and equities market. Mr. Perez is a former account executive and precious metals trader at Monex Gold and Silver Inc., managing a multimillion dollar gold and silver portfolio trading in the spot markets. Mr. Perez manages and consults with private equity clients in the precious metals and oil sector raising private capital and for gold and silver exploration and mining companies. Mr. Perez is a consultant to Comstock Royalty LLC., a royalty and mining finance firm and is also Director of Communications for Beeston Enterprises ltd.
Highlights of the Occidental/Pasadena Mine
The Occidental /Pasadena Mining Project is located in Southeastern California, 29 miles from the Mesquite Mine owned and operated by New Gold Inc., which became fully operational in 2008 as the largest cyanide heap leach operation in California. Prior to New Gold Inc., Newmont Mining operated and extracted 3 million ounces of gold from the mid-1980s through 2002. It is an operational, fully permitted low-grade open pit mine with cyanide heap-leach processing on site, and a life of mine estimated at 10 years. They currently produce roughly 160,000 ounces of Gold annually.
Karl Harz, now serving as Vice-President of Business Development at USA Uranium, said, “Our latest acquisition of the Occidental/Pasadena Mine Project fits our ‘Gold is Where You Find It’ model. Gold has continued to move up in the market and our resource acquisition team continues to seek more strategically located historic producers with long term value. The Occidental/Pasadena meets the criteria we needed in order to get to our goals of ‘Going Where Gold Is.’ With the La Dama D Oro and now the Occidental/Pasadena we have created an excellent base of projects to move forward in 2010.”
John Perez, President of USA Uranium, said: “The Occidental/Pasadena mine lies in an area with a rich, well documented history of the production of gold. The Occidental/Pasadena Mining project is strategically located near the Arizona border and is within reach of other active mining projects with operating mines potential partners for USA Uranium. I am looking forward to working with our team to develop work programs and updated geologic reports in order to progress forward with the prospect of taking the Occidental/Pasadena to the next level. The gold markets continue to be strong with quantitative easing creating a weaker dollar as well as China now the number one producer and consumer of gold. US Gold Corp. CEO Rob McEwen is on record saying that gold will climb to $2,000 an ounce by the end of this year, and recently predicted the price will climb to an amazing $5,000 an ounce by 2012. I am working with the Goldman-Sachs target price of $1350.00 per oz and JP Morgan has given price target of $1450.00 per oz. for gold. US investors still have not picked up entirely where precious metals are heading. The Occidental/Pasadena fits our plan of ‘Going Where Gold Is’ and we anticipate continued strength in precious metals.”
Contact:
John Perez
USA Uranium Corp.
President
949-280-4323 office
888-845-4869 fax
USAUPM@gmail.com
Newmont CEO sees gold at $1,025-$1,250/oz in 2010
1 hour 17 mins ago
Buzz Up! Print StoryNewmont Mining Corp CEO Richard O'Brien forecast the gold price to range between $1,025 and $1,250 an ounce this year, though he said it could dip below the lower level briefly. Skip related content
Price by PriceStock prices Company name Last price Percentage change
O'Brien, who is attending the World Economic Forum in Davos, also forecast that the price would in the longer term rise to $1,250 to $1,500 an ounce. The spot gold price was last quoted at around $1,092 an ounce.
He said in an interview with Reuters that any declines below $1,025 an ounce would not be sustainable because of underlying demand for the precious metal, including its use as an inflation hedge and a currency of last resort.
Earlier, the chairman of Canada's Barrick Gold Corp Peter Munk said he also expected the gold price to trend higher in the longer run.
Barrick and U.S.-based Newmont are the world's No.1 and No.2 gold producers respectively
ed, u have you refresh me on that
masher, i agree with your scenario
vanc. your best bet to review the management is to go to the company website at www.usauranium.com. In respect to production, there may be a possibility somewhere in the second quarter.
from yahoo also, there is mining company New Gold who have operations ongoing not to far from the Occidental Mine in California, would be nice to do some type of deal with them for processing ore
http://www.mapquest.com/maps?1pn=Occidental+Mine&1c=Winterhaven&1s=CA&1y=US&1l=32.846711&1g=-114.776347&1v=ADDRESS&1id=13927009&2pn=Mesquite+Mine&2c=Winterhaven&2s=CA&2y=US&2l=33.060317&2g=-114.994413&2v=ADDRESS&2id=13513715#b/maps/l:Occidental+Mine::Winterhaven:CA::US:32.846711:-114.776347:address::1:::13927009/l:Mesquite+Mine::Winterhaven:CA::US:33.060317:-114.994413:address::1:::13513715/io:1:::::f::::/e
good to see you to VancouverAu
cpmill, well put and agreed on
lol, some of you guys r really funny, and with some of u EVERYTHING that goes up is a pump
fsail,
Dr. Earl W. Abbott, Ph.D. (Geology), V.P. Mining Operations, Director
Since receiving his Ph.D. degree in geology at Rice University where he studied the tectonics of the western U.S., Dr. Abbott has spent 34 years exploring for mineral deposits, 26 of them for gold in Nevada.
Over his career Dr. Abbott has consulted to the mining industry and has been an officer and director of several junior mining companies. He combines strong management skills with a creative vision that enables the Company to apply sound scientific principles in unique ways to the search for giant gold deposits.
Dr. Abbott is active in his profession, having served as an executive of numerous professional mining associations. As a result, he has an extensive network of leadership contacts.
He is Certified Professional Geologist by the American Institute of Professional Geologists (AIPG) as well as the past President of the Nevada Chapter. He is also a member and past President of the Geological Society of Nevada (GSN), a member and past President of the Nevada Petroleum Society (NPS), a member and past President of the Denver Region Exploration Geologists Society (DREGS), a member of the Society of Economic Geologists (SEG), a member of the Society for Mining, Metallurgy, and Exploration (SME), a member of the Geological Society of America (GSA), a member of the Northwest Mining Association (NWMA), a member of the British Columbia & Yukon Chamber of Mines, and a member of the Prospectors and Developer Association of Canada (PDAC).
In 2008, Dr. Abbott was engaged in mineral exploration in China and, as Director of Uranium 3O8 Corporation, working on a uranium exploration project in Mongolia.
He is a Qualified Person under the rules of National Instrument 43-101.
EDF, that u will have to wait on
fsail, I have been in Elko county and have studied the area in detail. Jack Creek is an area of land, it is just not 300 claims that rigotini eludes to re I think it is Tornado. Just like the Dolly Varden area of Elko county, it is a huge area, and many companies have claims in that area
west, if he is a class act then why does he hide behind an alias. CLASS ACTS DONT BASH, THEY MOVE ON. When it is all said and done, if what doesnt transpire, I will personally look like a fool, but not under disguise, and I can live with that and so can my friends who own this stock. Its all about risk reward, so lets see what the rish of .008 is in lets say 6 months, then u can come back and get in my face. Have a good one
rigotini, you want me to convince you to buy back in, lol, if you have convinced yourself to not buy back in then dont buy back in, you think i or anyone else cares if you do. but dont try and be anyones saviour either, you just may end up looking like a real fool. Pasts a future does not make my friend. You then are saying if one loses money on an investment they will always lose, beg to differ on that. Stick around, but most investors here have their eyes wide open.
rigotini, (is that a noodle?), the dd is done intensely here and we are keeping put, sorry to dissapoint you
cpmill, great addition to my post, and right on re information.