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A Golden Future,In Gold We Trust
Goldcorp founder and
CEO of McEwen Mining Inc, Rob McEwen, went on record on Bloomberg news with a
forecast that Gold will reach $5000 per ounce soon. The Canadian based gold
icon sees significant gains ahead for gold. McEwen expects gold prices to hit
$5,000 per ounce, a 300% increase from current prices.
McEwen’s time frame
is reasonably short, and sees prices reaching the predicted levels by
2015-2016. I am going even further predicting Gold to reach $8500 per ounce
very soon due to rising inflation in China (the World Bank has cut China's 2012 growth forecast to 8.2 pc), the depreciating Rupee in India and its stubbornly high inflation,
the dangerous current impasse in North Korea and Iran on the nuclear issue (today North Korea a failed rocket launch. South Korea says that the North is now preparing for an underground nuclear test in defiance of the world), the
calamitous and worsening situation in Europe with their debt crisis (In Spain alone,
unemployment among the youth has reached almost 50% which means one out every
two Spanish young have no job. Spanish bond yields have almost reached 6pc which is unsustainable. Italy is next), the alarming US debt of almost $16 trillion
USD and growing fast at the galloping rate of about $125-$130 billion per month or about $4.33 billion per
day. Japan is in no better shape with extremely high debt. Just like the housing bubble burst unexpectedly on the world in 2008, this debt bubble will explode very soon. When that happens, people, Governments, Central Banks, investors and companies will rush to Gold to protect their savings and balance sheets. My forecast of Gold hitting $8500 an ounce may then turn out to be too modest and Gold may zoom even higher than what I am predicting.
http://www.theworld.org/2012/04/a-golden-future-inflation-fear-underlies-global-rise-in-gold/
In Gold We Trust
The Argentina list and keeping track of Argentine actions all started when they imposed a tax on mining last year.
The new tax effects exports on ("Minera Andes")
Subsequent Event Degree #1722 was issued by the executive branch of Argentinean government on October 25th 2011 and published in the official gazette on October 26,2011 which reestablishes the obligation for mining companies. including MSC to repatriate to Argentina all forign currency revenues obtained from mining exports.............
The Company has been advised by MSC that their preliminary estimates indicate an additional $ 2 Million in their annual pre tax operating expenses {on a 100% basis} as a result of the increased foreign exchange and bank transaction costs by the issuance of this decree
The third horse in this race is zinc and it is one that could well see some of the smaller diversifieds surprising at the finish line.
As RBC Capital Markets points out in a recent note, "Over the coming 3 years there is only one base metal for which we see structural change in the price profile and that is zinc. The degree to which we see pricing strength as both Century and Brunswick come off line is anyone's guess. However, the largest zinc producers globally have already started to reposition themselves. Vedanta has announced its restructuring to align its P&L and balance sheet. The proposed Glencore/Xstrata merger should also relevel the asset side of Glencore's balance sheet. Meanwhile Teck is directing its excess cash towards copper reinvestment while keeping an eye on its investment grade rating. The most interesting bit of all this is that none of the majors are investing significantly in zinc. Reinvestment in zinc is being left to some of the smaller zinc miners like Nyrstar."
Scotiabank'sPatricia Mohr is also a fan of zinc writing recently, "Zinc may represent the next big base metal play. Zinc will shift into ‘deficit' (at latest by 2014) due to ongoing demand growth in the face of significant global mine depletion in mid-decade."
"In 2013, the closure of the Brunswick mine in Canada, Century in Australia and Vedanta's Lisheen mine in Ireland will shift sentiment towards zinc, with prices rallying in anticipation of tightening supplies," she forecast. "In the second half of this decade, zinc demand will be boosted by a recovery in G7 construction activity, particularly in the USA, China could start to use more galvanized steel in the underbody of a car."
Of course there is no way to know which of these horses is likely to 'win' but with emerging markets like India and China continuing to change the course, it should be an interesting race.
About Canada Zinc Metals Corp. (TSX.V : CZX ; Frankfurt: A0RAQJ )
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources.
Canada Zinc Metals owns a total of 77,855 hectares in 235 mineral claims which extend northwestward from the Akie property for a distance of 140 km.
The Company has outlined a NI 43-101 compliant mineral resource at its flagship Akie property, including an indicated resource of 12.7 million tonnes grading 8.4% zinc, 1.7% lead and 13.7 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 16.3 million tonnes grading 7.4% zinc, 1.3% lead and 11.6 g/t silver (at a 5% zinc cut-off grade). Using this estimate, the deposit contains 2.35 billion pounds of zinc, 471.8 million pounds of lead and 5.6 million ounces of silver in the indicated category, and 2.65 billion pounds of zinc, 482.2 million pounds of lead and 6.1 million ounces of silver in the inferred category (at 5% zinc cut-off).
The deposit remains open in all directions. Tongling Nonferrous Metals Group and Lundin Mining are significant shareholders of the Company.
Copyright © 2012 Canada Zinc Metals Corp
More "Justicialismo" Updated Argentina Repatriation Anti-crisis List
and some old history thrown in too
"Justicialismo" the attitude of steering clear between capitalism and socialism is still very much alive in Argentina
When nationalism and expropriation “come back into the government lexicon, those are terms that have no fit whatsoever in the current, broader scheme of financial markets and of investments around the globe
.
4/17/2012 Argentina to nationalize the country's former state oil company
Argentine government announced it would take over YPF. Repsol called the move "unlawful," "gravely discriminatory" and said it breaches the obligations made by the Argentine government at the time of the 1993 YPF privatization. Repsol also said the move "violates the trust of the international investment community." Shares of Repsol fell over 6% in Madrid trading
Ban Lists
iPhones as the government continues to block imports of the world's most popular smartphone
.
French cheese
,
Apple computers
,
BMW cars
Barbie dolls
Whiskey.
Last year, the government delayed import of 1 million books at customs to coerce publishers to print them locally.
Smoking in public areas including bars and restaurants
Banned video games list leaked from Japan source
List.
Forbidden:
Monster Reborn
Trap Dustshoot
Limited:
Karakuri Komachi mdl 224 "Ninishi"
Wind-Up Hunter
The Agent of Creation - Venus
Tsukuyomi
T.G. Striker
Rescue Rabbit
Instant Fusion
Pot of Duality
Rekindling
Ultimate Offering
Semi-Limited:
Armageddon Knight
Neo-Spacian Grand Mole
Blackwing - Kalut the Moon Shadow
Master Hyperion
Emergency Teleport
Unlimited:
Marshmallon
Magical Stone Excavation
Mind Crush
The Index of Prohibited Books to protect Catholics from controversial ideas. Top Ten10
The Color Purple
I Know Why the Caged Bird Sings
To Kill a Mockingbird
Brave New World
1984
Lolita
Catcher in the Rye
Harry Potter Series
Candide
The Adventures of Huckleberry Finn
Anti-crisis" repatriation
4/17/2012 Argentina to nationalize the country's former state oil company see post # 627
Argentina Imposes new mining export tax 11/30 see post #287
Argentina has seized control of the Newspapers and has implemented measures on foreign owned farm land and beefed up their already owned airlines
-oil-mine-exporters
The Legacy of Juan Peron. see post #294
So by this they are indicating approx. $1M see Post #296
The Argentine government wants export revenues from mining projects to be repatriated and converted to Argentine currency prior to being distributed either locally or overseas.
The payment for goods and supplies from overseas and the distribution of dividends will then require the Argentine currency to be converted to the foreign currency of the transmittal.
Accordingly, this overturns the previous benefits provided by Argentina to oil and mining companies, in 2002 and 2003-04 respectively, that exempted them from the currency repatriation laws that apply to all other primary producers in the country.
Tags
http://www.marketwatch.com/story/apple-iphone-still-elusive-for-argentines-2012-02-18
http://en.wikipedia.org/wiki/List_of_smoking_bans
http://answers.yahoo.com/question/index?qid=20120214224916AA5zwEj
http://business.financialpost.com/2011/10/27/argentinas-repatriation-decree-misinterpreted-by-markets-td-securities/
http://www.bloomberg.com/news/2011-10-26/argentine-oil-mine-exporters-ordered-by-government-to-repatriate-funds.html
http://www.marketwatch.com/story/us-warns-argentina-on-intervening-in-ypf-2012-04-16
The U.S. would complain to the World Trade Organization were the government of Argentina to nationalize the country's former state oil company and now a unit of Spain's Repsol YPF SA , a spokesman for the White House told the Argentine newspaper Clarin this weekend, the newspaper said.
Speculation in recent weeks has suggested that Argentina's government is considering some kind of state intervention in YPF SA YPF -11.16% , Argentina's leading oil and gas company and 57% owned by Repsol.
The newspaper said Ben Rhodes, deputy national security advisor for strategic communications and speechwriting at the White House, indicated in a briefing at the Summit of the Americas in Colombia that the U.S. would complain to the WTO if Argentina violates international rules, just as the U.S. has about import limits Argentina has imposed.
Newspaper website: www.clarin.es
Madrid Bureau, Dow Jones Newswires; 34 91 395 8120.
Argentine takeover of YPF
will not affect growth of the Spanish energy company. In a statement accompanying a press conference, Repsol said its 57.4% stake in the Argentine energy group is valued at $10.5 billion, and YPF as a whole is valued at $18.3 billion. Late Monday, the Argentine government announced it would take over YPF. Repsol called the move "unlawful," "gravely discriminatory" and said it breaches the obligations made by the Argentine government at the time of the 1993 YPF privatization. Repsol also said the move "violates the trust of the international investment community." Shares of Repsol fell over 6% in Madrid trading
http://www.marketwatch.com/story/repsol-ypf-takeover-will-not-affect-growth-2012-04-17
If upheld TNR has a 25% back-in right to a substantial portion of the Los Azules project underlying known mineral resources that may be exercised to acquire a 25% interest in such part of the property. TNR has also claimed damages. We estimate that the Los Azules Copper Project represents approximately 50% of the total assets acquired, not counting liabilities assumed, in the acquisition, based on our preliminary estimate of the fair value of all identifiable assets acquired and liabilities assumed.
This is no small time thing here folks
Could turn out into a huge shot in the arm for TNR and take them up a notch.
I think the judge will see that were not just talking about some typical mine hole but one of the top ten metal deposits in the entire world. That there's enough for everybody. Anybody that has mined copper knows that most of time in most copper mines that the main product [Copper] is produced free and clear because the small amounts of gold that is retrieved usually pays all the bills.
A good question is. If there's 12 billion pounds roughly estimated how much gold would be in such a huge deposit?
TNR may have dropped the ball here. Mainly because they had years to settle this contract matter before the exploration large results came in. It was only when the merger got closer TNR appealed much to everybody's surprise.
In any case I still believe everybody wins in this one. IMO
If The Internet Solution Worked Then Why Can't One Work Now.
What's wrong With 7 To 10 Companies Merging Together All At The Same Time Now?
It would seem so right for an another collective experience
One far beyond the mining industry
How Can McEwen Mining Be The Largest Gold And Silver Mining Company In The World?
Million Bucks To The One Who Comes Up With The Best Plan
Because I'm Going To Sell It For A Billion. LOL
Some of today's Ink
Joseph Foster, of Van Eck Gold Funds told Mineweb, "I think the market is waiting for a reason to buy gold stocks. The valuations are very attractive with these stocks and we just need a catalyst - another rise in the gold price, a move towards new highs would definitely do the trick."
JD
TNR Mentioned In This
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74403997
TY There's some brilliantly crafted word play in some of those news stories.
It was my pleasure.
JD
The Golden Roads Of McEwen Mining
by JD400 MUX Enthusiast
McEwen Mining Inc. trades on the NYSE and TSX
I'm starting a series called the Golden Roads of McEwen Mining.
The following is some news stories I found to compile a mosaic of information and wealth of insights into the direction of what I call mining's high tech giant of the future. From the early wilderness days we are in now to the mountains of transfiguration my goal is to unlock all resources available. In this simple task faithfully done and persisted in bringing a reward of it's own for me as I serve my fellow investor friends on this IHUB stock board. All are welcomed here and as you read this series my hope is you too will see how the pavement of success is being laid.
McEwen Mining, the product of the January fusion of US Gold and Minera Andes, said on Thursday its San Jose mine in Argentina produced 1.45-million ounces of silver and 20 934 oz of gold in the fourth quarter.
The TSX- and NYSE-listed firm also said it held around one-third of its $78.8-million treasury in bullion, betting that prices will rise.
CEO Rob McEwen followed a similar practice when he headed up Canada’s Goldcorp, and repeatedly forecast that gold prices would hit $5 000/oz by the middle of the decade, and silver $200/oz.
Last year, Canadian fund manager Eric Sprott called on silver producers to hold some of their treasuries in the metal itself.
McEwen Mining said it expected San Jose, which US-based Hochschild Mining owns 51% of, to produce 5.7-million ounces of silver and 85 000 oz of gold in 2012.
The company said it was on track to complete construction at its El Gallo Phase 1 project in Mexico by the middle of the year, which was set to produce 10 000 oz of gold during the second half.
McEwen owns 25% of the company, and receives no salary.
Rob McEwen's McEwen Mining (the product of the recent US Gold/ Mindera Andes merger) has responded to our friend Eric Sprott's call to mining companies to believe in their own products by saving in bullion rather than dollars by holding 1/3rd of its $79 million treasury in gold and silver bullion.
McEwen, who turned Goldcorp into an amazing success using similar practices, is calling for $200 silver and $5,000 gold by 2015.
As Sprott's plan to hold company assets in bullion rather than cash or treasuries continues to gain momentum, it will be interesting to see whether the producers can eventually withhold sufficient physical silver from the market to wrestle the control of the market from the paper markets that currently wags the dog.
McEwen Mining, the product of the January fusion of US Gold and Minera Andes, said on Thursday its San Jose mine in Argentina produced 1.45-million ounces of silver and 20 934 oz of gold in the fourth quarter.
The TSX- and NYSE-listed firm also said it held around one-third of its $78.8-million treasury in bullion, betting that prices will rise.
CEO Rob McEwen followed a similar practice when he headed up Canada’s Goldcorp, and repeatedly forecast that gold prices would hit $5 000/oz by the middle of the decade, and silver $200/oz.
Last year, Canadian fund manager Eric Sprott called on silver producers to hold some of their treasuries in the metal itself.
McEwen Mining said it expected San Jose, which US-based Hochschild Mining owns 51% of, to produce 5.7-million ounces of silver and 85 000 oz of gold in 2012.
Anonymous said...
Hopefully Eric is going to soon announce 'The Silver Miners and Producers Union' that all miners will have no choice but to join if they want to sell their production anywhere in the world. The union's purpose is to fix the price of silver at a much higher price much the same was as Comex fixes it lower. This will separate the paper price from the physical price. I'm suggesting that the physical price start at 100.00 and fluctuate daily as does the current spot. Anyone not joining and co-operating with this will be boycotted and any company buying product from a renegade seller will have their web sites taken down by hackers
This stock has been exceptionally volatile relative to many other producing mining firms, and so on days where there are strong sell-offs, there can be an especially favorable opportunity to acquire this stock. It is in production, has over $78 million in current assets (including gold and silver waiting to be sold at higher prices), and most importantly, is led by Rob McEwen, the mining entrepreneur who built up Goldcorp (GG). I was buying McEwen Mining at $5 several months ago, so I clearly think this stock is going much higher. It's current price near $4 a share is simply a great discount, as far as I'm concerned.
Right from the beginning I was impressed with this company’s strong leadership headed by Rob McEwen, who also has a 22% ownership in the company. In an interview at King World News Mr. McEwen stated that he does not take a salary as the CEO, and plans to make all his money in stock appreciation just like all other investors.
McEwen has a long and impressive track record in the industry, and he is perhaps most known as the former Chairman and CEO of Goldcorp, which he grew from a penny stock into a major mining company that it is today. While leading Goldcorp, McEwen averaged a 31% annual return for shareholders, and grew the company’s market cap from $50 million to $8 billion.
TNR Gold vs McEwen Mining: SEC 10-K: "The Los Azules copper project...we may lose all or part of our interest in the pr
We have the very interesting development in litigation case for Los Azules: TNR Gold vs McEwen Mining and Xstrata. McEwen Mining was very modest in litigation risk assessment before, so you can imagine our surprise - and, must be, that other shareholders involved have the same feelings - by the recent statement: McEwen Mining Inc. (MUX) 10-K filed 3/12/2012
The Los Azules copper project is subject to ongoing legal proceedings with the potential that we may lose all or part of our interest in the project.
Minera Andes is currently subject to ongoing litigation regarding the Los Azules Copper Project. TNR Gold Corp ("TNR Gold") and its subsidiary, Solitario Argentina S.A. ("Solitario" and together with TNR Gold, "TNR") claim that certain properties that comprise the LosAzules Copper Project were not validly transferred to Minera Andes and therefore should be returned to TNR. In the alternative, TNRclaims that even if Minera Andes validly owns the Los Azules Copper Project, TNR has a 25% back-in right to a substantial portion of theLos Azules project underlying known mineral resources that may be exercised to acquire a 25% interest in such part of the property. TNRhas also claimed damages. We estimate that the Los Azules Copper Project represents approximately 50% of the total assets acquired, not counting liabilities assumed, in the acquisition, based on our preliminary estimate of the fair value of all identifiable assets acquired and liabilities assumed.
Minera Andes has stated that it is not able to estimate the potential financial impact of this claim. If resolved adversely to Minera Andes, this litigation could materially adversely affect the value of Minera Andes by reducing or terminating its interest in a significant portion of the Los Azules Copper Project and its ability to develop the Los Azules Copper Project. Alternatively, Minera Andes could be subject to a significant damages award. Such a result would have a significant negative impact on the value of the combined company and could have a significant impact on our stock price. In addition, on a consolidated basis we will inherit the legal liabilities and costs associated with the litigation and the claims surrounding the Los Azules Copper Project, including the risk of loss of a significant portion of the Los Azules Copper Project. See Item 3. Legal Proceedings."
We knew that Northern Half of the Los Azules project is at stake in litigation now and TNR Gold claims that its former properties to be returned back to TNR Gold. This part can represent up to 2/3 of the Los Azules metal value - the high grade core appeared to be based on former TNR Gold properties. But now McEwen Mining is talking about the Risk to lose all Los Azules deposit?! Latest TNR Gold presentation shows Los Azules maps and cross sections with the former TNR Gold properties claimed to be return to TNR Gold now.
TORONTO, ONTARIO--(Marketwire - March 15, 2012) - McEwen Mining Inc. (TSX:MUX)(NYSE:MUX) is pleased to provide an operational and development update for its projects in Argentina, Mexico and Nevada.
Healthy Balance Sheet - $78.8 Million Liquid Assets - No Debt
As of February 29, 2012, McEwen Mining had cash and liquid assets of US$78.8 million, comprised of cash of US$51.5 million, marketable securities of US$1.4 million, and silver and gold bullion at market value of US$25.9 million. The company continues to hold a significant portion of its treasury in bullion with the belief that prices will continue to rise. The company remains debt free.
On February 24, 2012 McEwen Mining received its first dividend payment from its 49% ownership in the San Jose mine, totaling US$9.4 million. The dividend represents proceeds from the mine's operations during the Fourth Quarter. We expect dividends from the mine to continue on a quarterly basis.
In 2012, company wide exploration and construction expenditures, including downpayments on long lead time equipment for El Gallo Phase 2, are expected to total approximately US$57.5 million. This amount will be funded with existing cash and liquid asset balances, dividends from the San Jose mine and cash flow from Phase 1 of the El Gallo Complex, which is expected to commence production during the second half of the year.
Strong Performance - San Jose Mine, Argentina (49%)
Final production results for the San Jose mine during the Fourth Quarter totaled 1,453,580 ounces of silver and 20,934 ounces of gold (100% basis). Cash Costs on a co-product basis during the period totaled US$13.10 per silver ounce and US$689 per gold ounce. These costs on a by-product basis (netting the revenue from gold against the cost to produce an ounce of silver) totaled negative US$1.02 per silver ounce. The average grade of ore processed during the Fourth Quarter was 412 gpt silver and 5.68 gpt gold. Estimated 2012 production is expected to total 5.7 million silver ounces and 85,000 gold ounces (100% basis).
A new reserve-resource estimate for the San Jose mine is currently being finalized and is expected to be released shortly. The updated estimate will reflect approximately 55,000 meters of additional diamond drilling completed during 2011. In 2012, a total of 110,500 meters of diamond drilling is scheduled at the San Jose mine, of which 68,000 meters will be exploration for new resources and 42,500 will be for infill. This represents more than double of the exploration budget that was completed last year.
New Revenue Source - El Gallo Complex, Mexico
El Gallo Phase 1 construction is on schedule (completion expected by mid-2012) and on budget (US$15 million). To date, approximately 40% of the capital required to complete Phase 1 has been spent. Key areas of advancement include the crushing plant (50% complete), process plant (40% complete), and heap leach pad expansion (35% complete). Since December, 1.5 million tonnes of material has been mined. The majority of this material relates to pre-stripping. A total of 63,700 tonnes of material averaging 1.71 gpt gold has been stockpiled for future processing. In addition, a number of key management positions have recently been filled, including Mine Manager, Process Manager, Chief Mine Geologist and Senior Project Engineer.
El Gallo Phase 1 is expected to produce 10,000 ounces of gold during the second half of this year and continue at 30,000 of gold per year after ramp-up. Once Phase 2 construction is completed by 2014, El Gallo is forecasted to produce 5 million ounces of silver and 40,000 ounces of gold per year. (A photo library showing bi-weekly progress can be viewed by clicking here: www.mcewenmining.com/Media-Events/Galleries/El-Gallo-photos/default.aspx.)
A resource update for the El Gallo Complex is expected to be released by the end of April. The resource update will include an additional 98,000 meters of diamond drilling. In 2012, a total of 55,000 meters of diamond drilling is scheduled at the El Gallo Complex. The majority of this drilling will be used to expand known resources and to identify new veins.
Gold Bar Project, Nevada
In November 2011, the final Preliminary Feasibility Study (PFS) for the Gold Bar project was completed by SRK Consulting. Gold Bar is forecasted to produce 50,000 ounces of gold per year at a cash cost of US$665 per ounce. The Gold Bar project is located on public lands managed by the Bureau of Land Management (BLM). The BLM and the Nevada Division of Environmental Protection will be the primary regulatory agencies responsible for approving the permit to mine. Management anticipates an 18 - 36 month permitting phase followed by a 10 - 12 month construction period.
Looking to Grow - Los Azules Copper Project, Argentina
Drilling is underway at Los Azules, one of the world's largest undeveloped copper deposits. Due to ground conditions and equipment problems, drilling has been slow. The focus of this year's drilling program is to target a geophysical anomaly located 250 meters west of the known resource, where the initial hole in the area drilled during the 2011 drill season returned 0.50% copper over 269 meters, including 0.95% copper over 45 meters (See news release dated June 27, 2011 issued by Minera Andes Inc.) The initially anticipated program for 2012 was to complete 8,000 meters. To date, however, only 1,700 meters have been completed. The company does not anticipate meeting the planned meters during this field season.
In order to overcome the conditions present at Los Azules, the company has been in contact with a number of firms that supply larger drill rigs, capable of reaching Los Azules' target depths. Due to the winter season (May-November), these firms will not begin drilling until the end of the year.
Looking for the Next San Jose Mine - Santa Cruz Exploration, Argentina
During the fourth quarter of 2011, a total of 8,800 meters of core drilling was completed on two of McEwen Mining's 100% owned exploration properties in Santa Cruz province, Argentina. These properties are not part of our 100% owned claim package adjacent to the San Jose mine and Goldcorp's Cerro Negro project. Despite attractive surface samples, encouraging results were not encountered with this drilling. Drilling permits for the company's Celestina project, near Anglo Ashanti's Cerro Vanguardia mine (Annual production: 230,000 gold ounces - 0.9 million silver ounces) have been received and drilling is scheduled to commence this week. Additional drill permits, which will be used to target extensions of Goldcorp's Cerro Negro veins to the northwest, are currently being prepared and are expected to be submitted to the provincial authorities during the coming week.
ABOUT McEWEN MINING (www.mcewenmining.com)
The objective of McEwen Mining is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth, low-cost, mid-tier silver producer focused in the Americas. McEwen Mining's principal assets consist of the following:
-- Production: a 49% interest in Minera Santa Cruz SA, owner of the San
Jose Silver-Gold Mine that is located near Goldcorp's Cerro Negro
project in Argentina.
-- Development: The El Gallo Complex in Sinaloa, Mexico (first phase of
production expected July 2012) and the Gold Bar Project in Nevada; as
well as the Los Azules Copper Deposit in San Juan, Argentina.
-- Exploration: The Company has a large portfolio of exploration properties
in Santa Cruz province Argentina, surrounding the San Jose Mine and
Goldcorp's Cerro Negro project in addition to significant land packages
in Nevada adjoining Barrick's Cortez mine and surrounding our El Gallo
Complex in Mexico.
Rob McEwen, Chairman, President and CEO, owns 25% of the outstanding shares of McEwen Mining. As of February 29, 2012 the Company had US$78.8 million in cash (including silver/gold bullion) and no bank debt.
TECHNICAL AND OPERATING INFORMATION
This news release has been reviewed and approved by William Faust, P.E, McEwen Mining's Chief Operating Officer, who is a Qualified Person as defined by National Instrument 43-101.
El Gallo: For additional information about the El Gallo Complex see the "Preliminary Economic Assessment for the El Gallo District, Sinaloa State Mexico" dated February 11, 2011 and prepared by Paul Gates, PE, Richard Addison, PE, Aaron McMahon, PG of Pincock Allen & Holt of Denver, Colorado ("El Gallo PEA"). All three individuals are Qualified Persons as defined by NI 43-101 and are independent of McEwen Mining as defined in Section 1.4 of NI 43-101 and Section 3.5 of Companion Policy 43-101CP. Mr. McMahon verified the mineral resource data contained in the El Gallo PEA by conducting a site visit, which included verifying drill hole locations and survey data, reviewing sampling handling, data collection procedures, partial audit of the assay database, review of the QA/QC data and analysis of core recovery and drill logs and their relations to assay values. Available on SEDAR (www.sedar.com). The El Gallo PEA is not a feasibility or pre-feasibility study and contains no mineral reserves. The mineral resource figures referred to in this press release and the El Gallo PEA are estimates and therefore insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of technical or economic viability and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates included in this press release and the El Gallo PEA are well established, by their nature, resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or
are reduced in the future, this could have a material adverse impact on the Company. In addition, the El Gallo PEA includes inferred resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the El Gallo PEA will be realized.
The satellite gold deposits were originally planned to be mined in conjunction with the larger El Gallo silver resource. A feasibility study for the combined areas was scheduled for the end of 2011. Permitting and work related to finalizing the silver production schedule will continue, although changes to the study will be made to incorporate a phased production approach.
There are significant risks and uncertainty associated with commencing production without a feasibility or pre-feasibility study. The area proposed for Phase 1 of El Gallo production has not been explored, developed and analyzed in sufficient detail to complete an independent feasibility or pre-feasibility study and may ultimately be determined to lack one or more geological, engineering, legal, operating, economic, social, environmental, and other relevant factors reasonably required to serve as the basis for a final decision to complete the development of all or part of the El Gallo project for mineral production.
Gold Bar Project: For further information about the Gold Bar Project see the technical report titled "NI 43-101 Preliminary Feasibility Study of US Gold Corporation's Gold Bar Project" with an effective date of November 28, 2011, prepared by J. Pennington, Frank Daviess, Eric Olin, Herb Osborn, Joanna Poeck, Kent Hartley, Mike Levy, Evan Nikirk, Mark Willow and Neal Rigby, each a qualified person as defined under NI 43-101. Available on SEDAR (www.sedar.com).
Los Azules: The June 27, 2011 Minera Andes Inc. news release referenced above was prepared by James K. Duff, then Chief Operating Officer of Minera Andes Inc. and current Consultant to the Company. Mr. Duff is a geologist and Qualified Person as defined under NI 43-101.
San Jose Mine: Minera Santa Cruz S.A., the owner of the San Jose mine, is responsible for and has supplied to the Company all reported results from the San Jose mine. Production and cash cost information is provided by Minera Santa Cruz S.A. (MSC). The Company's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of the data provided or the adequacy or accuracy of this release. As the Company is not the operator of the San Jose mine, there can be no assurance that production information reported to the Company by MSC is accurate, the Company has not independently verified such information or determined that cash cost information reconciles with US GAAP and readers are therefore cautioned regarding the extent to which they should rely upon such information.
Rob McEwen Keynote Speaker 124th Annual Toronto Board of Trade Dinner
http://www.youtube.com/watch?v=ruplsjX7TlI
Company is poised to become the highest yielding gold mining company in the industry.
Rob McEwen is back on the road and talking about one of the largest Copper deposits in the world at PDAC2012 in Toronto! We are exited as well and will help to fill the gaps in this story.
“It is an intriguing project to me because it is an order of magnitude bigger than anything that I have ever been involved with,’’ said McEwen.
CEO Scott Baxter says Nevada has earned his loyalty. That’s where Baxter’s former company, Tone Resources, hit paydirt — not just for himself, but for Rob McEwen’s US Gold (now McEwen Mining (TSX:MUX)). McEwen acquired Tone in 2007. “I made him a huge return on his investment,” Baxter says. “And you know what? Today’s a new day, and I want to do it all over again.”
Now the majors are looking at Sniper’s flagship Weepah Gold Property. Initial results announced March 5 coincided with PDAC and, Baxter says, “generated interest instantly on arrival.” As a result, “Three of the top 10 mining companies asked me for CAs [confidentiality agreements] specific to Weepah.”
Located in Nevada’s Walker Lane Mineral Belt
David R. Hembree, PGeo, Nevada Exploration Manager, a Qualified Person as defined under National Instrument 43-101, has reviewed and verified the information provided on the Taylor Project.
Gold Standard Royalty Portfolio 2011 Fiscal Year The Company is also pleased to provide a report on its royalty portfolio for the recently completed fiscal year. The Company received advance royalty payments totalling over $850,000, as well as 9.998 troy ounces of gold, bringing the total gold held on account at Johnson Matthey to 143.072 troy ounces.
The advance royalty payments include monies received from Midway Gold Corporation (tsx.v:MDW) for the Pan and Gold Rock properties, and Barrick Gold Corporation CA:ABX -1.17% for the Duke-Trapper-Royale area of the Bald Mountain property. The Company anticipates significant production royalty on these projects as they enter commercial production. The gold payment reflects residual gold production from the Mooney Basin operation of Barrick.
Sale of Tonkin Springs Project During the period the Company sold its 5% Gross Smelter Royalty covering a portion of the Tonkin Springs project to US Gold Corp. (now mcewen mining inc. (tsx:MUX) for $5.85 million (previously reported in GPD NR11-28 dated July 21, 2011). The Company retains a 1.4% NSR on all production from the claims sold in excess of the previously reported resources.
No clear acquisitive history but see scale of ambition and past achievements below.
Led by Rob McEwen who built Goldcorp into a major force. Holds large 25% personal stake, aligning interests with shareholders.
Bill Cara has great belief in McEwen.
Declared intention to enter S&P500 with a market cap >$5bn by 2015. McEwen sees gold at $5000/oz
Sees 130k oz gold production and 8m oz silver production by 2015 and a much higher silver price. Looks to gold silver ratio at 16. Disputed control of large copper project.
Exploration budget $36m in 2012. Includes drilling surrounding Goldcorp's Andean acquisition where they paid $3.6bn.
The objective of McEwen Mining is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth, low cost, mid-tier silver producer focused in the Americas. McEwen Mining's principal assets consist of the following:
- Production: a 49% interest in Minera Santa Cruz SA, owner of the San José Silver-Gold Mine that is located near Goldcorp's Cerro Negro project in Argentina.
- Development: The El Gallo Complex in Sinaloa, Mexico (first phase of production expected Q2 2012) and the Gold Bar Project in Nevada; as well as the Los Azules Copper Deposit in San Juan, Argentina.
- Exploration: The Company has a large portfolio of exploration properties in Santa Cruz province Argentina, surrounding the San José Mine and Goldcorp's Cerro Negro project in addition to significant land packages in Nevada adjoining Barrick's Cortez mine and surrounding our El Gallo Complex in Mexico.
Rob McEwen, Chairman and CEO, owns 25% of the outstanding shares of McEwen Mining. As at December 31, 2011 the company has $80 Million USD in cash and bullion and no bank debt.
Tags
http://seekingalpha.com/article/481001-stocks-to-buy-after-yesterday-s-sell-off?source=feed
http://www.miningweekly.com/article/mcewen-holds-33-of-treasury-in-gold-and-silver-2012-03-15
http://www.contrarian-investor.com/gold-mining-shares.html
http://bx.businessweek.com/business-law/view?url=http%3A%2F%2Fwww.zerohedge.com%2Fnews%2F2012-11-14%2Flos-azules-tnr-gold-vs-mcewen-mining-sec-10-k-los-azules-copper-project-subject-ongo%23
http://online.wsj.com/article/PR-CO-20120315-904913.html
http://business.financialpost.com/2012/03/16/major-attraction-miners-pay-close-attention-as-sniper-drills-nevada-gold/#more-152031
http://www.zerohedge.com/news/2012-10-08/los-azules-gold-bug-mcewen-eyes-big-copper-play-tnr-gold-claims-northern-half-projec
http://www.marketwatch.com/story/golden-predator-receives-2533333-shares-of-silver-predator-corp-provides-annual-report-on-gold-royalty-portfolio-2012-03-01-143200
http://juniorgoldminerseeker.blogspot.com/
http://www.mcewenmining.com/About-Us/default.aspx
Exciting new developments at the El Gallo Complex this week: Sinaloa State Governor Mario Lopez tours the project with Rob McEwen.
First gold pour only a few months away!
Key development highlights over the past two weeks are:
- Installation of process plant equipment underway
- Retaining wall for crushing plant complete
- Crushing plant equipment arrives onsite
- Heap leach pad expansion 40% complete
- 170,000 tonnes of ore at 1.48 gpt stockpiled since December
MUX promising volume surge soon to validate price surges
Thursday Mux had a very nice volume day with 4.4 million recorded which has triggered an alert signal for me. My alert is simple, It went up a lot more than it has been lately.LOL
This stock is poised to run with the wind as their El Gallo project jewel prepares to add a second revenue stream this summer to McEwen Mining. The project currently is on schedule, on budget and McEwen's on his way to building another mining dynamo powerhouse as he did with Gold Corp.
About volume alerts, here is a example of just one method.
The Alert Table Generated
If a stock's 7-day MA price crosses from below to above its 13-day moving average with a surge in volume, an alert is generated that reads, "7x13U." On the other hand, if its 7-day MA price crosses from above to below its 13-day moving average with a surge in volume, an alert is generated that reads, "7x13D." Similar alert signals are generated for the other moving average systems. If three alerts are generated simultaneously, they are all reported. For example, the report might read "7x13U 5x20U 10x20U" The percent change in price for the day is in column 5. The percent change in volume for the day is in column 6. The change in the 3-day average volume relative to the same average four days ago is in column 7. The meaning of the other columns is self-evident. Look for a volume surge to validate price surges and crossovers (a price surge of 2% on a 50% decrease in volume is not very promising). If there is a price surge on a crossover that is accompanied by a significant increase in volume, the situation is definitely worth a careful inspection.
http://www.stockdisciplines.com/stock-scanner
Micron Launches $870.0 Million Offering of Convertible Senior Notes
BOISE, Idaho, April 11, 2012 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq:MU) today announced that it intends to offer, subject to market and other considerations, $435.0 million aggregate principal amount of convertible senior notes due 2032 (the "2032A Notes") and $435.0 million aggregate principal amount of convertible senior notes due 2032 (the "2032B Notes" and, together with the 2032A Notes, the "Notes") through an offering in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act").
In connection with this offering, Micron intends to grant the initial purchasers an over-allotment option with respect to an additional $65.0 million aggregate principal amount of 2032A Notes and an additional $65.0 million aggregate principal amount of 2032B Notes.
The terms of the Notes will require Micron to repurchase such Notes at the option of the holders for cash on dates to be determined, in each case at a purchase price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding the repurchase date. In addition, the terms of the Notes will permit holders to require Micron to repurchase their notes upon a change of control or a termination of trading at a purchase price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding the repurchase date.
The Notes will be convertible, subject to certain conditions, into cash or shares of Micron common stock or a combination thereof, at Micron's election. The interest rate, the initial conversion price, redemption provisions and other terms of the Notes will be determined by negotiations between Micron and the initial purchasers.
In connection with the offering of the Notes, Micron plans to enter into capped call transactions with one or more counterparties, which may include some of the initial purchasers and/or their affiliates. The capped call transactions are intended to reduce the potential dilution upon conversion of the Notes.
In connection with establishing their initial hedge of the capped call transactions, Micron expects that the counterparties may enter into various over-the-counter derivative transactions with respect to Micron's common stock concurrently with, or shortly after, the pricing of the Notes and may unwind or enter into various over-the-counter derivatives and/or purchase Micron's common stock in secondary market transactions following the pricing of the Notes. These activities could have the effect of increasing or preventing a decline in the price of Micron's common stock concurrently with or following the pricing of the Notes. In addition, the counterparties may modify or unwind their hedge positions by entering into or unwinding various derivative transactions and/or purchasing or selling Micron's common stock in secondary market transactions prior to the maturity of the Notes (and are likely to do so on each exercise date of the capped call transactions).
Micron expects to use a portion of the net proceeds of the offering for the cost of the capped call transactions that Micron intends to enter into contemporaneously with the offering of the Notes. Micron expects to use the balance of the net proceeds for general corporate purposes, which may include capital expenditures, working capital, strategic acquisitions, joint ventures and other investments and repayment of other indebtedness.
This announcement is neither an offer to sell nor a solicitation to buy any of the foregoing securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The securities will not be registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.
http://investors.micron.com/releasedetail.cfm?ReleaseID=663392
The Market Vectors Junior Gold Miners ETF GDXJ -1.18% closed Tuesday up 69 cents, or 3.11% -- about 41 cents and 2% above Monday's low -- as it attempted to put in an upside reversal session after making new multi-year lows (since July 2010).
This amidst a glaring, positive RSI (momentum) divergence represents a potentially very significant "trend change session."
Of course, we need to see upside continuation within the next two sessions, which, if satisfied, will indicate that the long corrective (bear phase) slide from the April 8, 2011 high at 40.28 is over and that a period of a potentially powerful recovery is underway.
Comparing the GDXJ with the SPDR S&P 500 SPY +0.81% , we see that since the October 2011 lows, the SPY has gained 32.4%, while the GDXJ has lost 12%. In other words, the junior gold mining names did not participate AT ALL in the powerful, relentless October to April advance in the S&P 500.
That said, perhaps just as curious was Tuesday's inverse behavior of the two ETFs, which shows that on a day when the SPY declined 1.7% (its fifth consecutive session), the GDXJ reversed to put in a daily upside reversal spike amidst a positive momentum divergence.
What does it mean?
From a technical perspective, the GDXJ has put in a potential double-bottom low concurrent with a significant breakdown in the SPY, suggesting that money is beginning to flow into the ignored and beleaguered gold mining sector and will continue to do so, especially if fears of another crisis in the euro zone and its potential global contagion trigger investor flight into hard assets.
http://www.marketwatch.com/story/money-flowing-into-beleaguered-gold-miners-2012-04-11?link=mw_home_kiosk
One of my long term goals
Too buy the whole darn index on the side
Of course MUX is my jewel
I'm a junior dude.
http://www.mcewencapital.com/
ATAC Resources Ltd. ATC:CA
Colossus Minerals Inc. CSI:CA
Continental Gold Limited CNL:CA
Eastmain Resources Inc. ER:CA
Exeter Resource Corporation XRC:CA
Extorre Gold Mines Limited XG:CA
Guyana Goldfields Inc. GUY:CA
International Tower Hill Mines Ltd. ITH:CA
Lexam VG Gold Inc. LEX:CA
MAG Silver Corp. MAG:CA
Northern Dynasty Minerals Ltd. NDM:CA
Paramount Gold and Silver Corp. PZG:CA
Premier Gold Mines Limited PG:CA
Pretium Resources Inc. PVG:CA
Queenston Mining Inc. QMI:CA
Rainy River Resources Ltd. RR:CA
Romarco Minerals Inc. R:CA
Rubicon Minerals Corporation RMX:CA
San Gold Corporation SGR:CA
Sandspring Resources Ltd. SSP:CA
Seabridge Gold Inc. SEA:CA
Tahoe Resources Inc. THO:CA
Torex Gold Resources Inc. TXG:CA
Trelawney Mining and Exploration Inc. TRR:CA
About the McEwen Junior Gold Index ("MJGI" or "Index")
WEIGHTING:
The Index is market-value weighted. Movements in the prices of stocks with higher market capitalizations (the share price times the number of shares outstanding) have a greater effect on the Index than companies with smaller market capitalization.
VERSION:
The Index is quoted as a price return index. A price return index does not account for dividends. Rather, its solely captures the changes in the share prices of the Index components.
SELECTION:
Although the component companies are selected by a committee, in their discretion, there are a number of baseline criteria used:
Minimum market capitalization of US$50 million
Minimum daily trading liquidity of US$50,000
Listed on any of the TSX, TSX-V, NYSE, NYSE.A, NASDAQ
No commercial production
Annual General Meeting
May 17, 2012
May 17, 4pm
The Wellington Ballroom
The Ritz-Carlton, Toronto
181 Wellington Street West
Toronto, Ontario M5V 3G7 Canada
http://www.mcewenmining.com/Media-Events/Events/Event-Details/2012/Annual-General-Meeting-/default.aspx
Smart peeps jumping on those Dips,Go MUX!~]
My Top 2 M/A Perspective Picks
This changes all the time as I always keep my eyes open for hints of M/A perspective companies.
1. Nova Gold, Because they already have a large 10 percent ownership in McEwen Mining.
2. LEXAM VG Gold, Because of it's favored location in Canada's Timms Red Lake belt and either way this mining operation is on the verge of emergence with outstanding leadership. One of McEwen's Gems for sure in the works. Sooner or later this one is a rung on the ladder.
3-7 Need not list them for haven't found enough hint information for speculation. But I'm looking hard into the companies in Nevada, Red Lake,Mexico and Argentina Copper Firms
Some funny food for thought
In the next 10 to 20 years MUX will buy out most of Gold Corp properties
Ideas of senior firms seeking to Merge with MUX . Who wouldn't.
Well that's enough brain spillage for this night.
All Speculative Bull Squat All IMO, Not Investment Advice, Just Bull Crap, Only Entertainment, Just Making Small Talk, I don't Know Anything About M/As, Just Pipe Dreaming, Don't Believe Anything You Read In This Post, Hope I did not waste your time.
Well hope that covers it as a disclaimer LOL
It was on SCHEDULE 14A
from the web site
under SEC filings
Happy Easter Everybody ! here is some good Easter reads
http://www.jsmineset.com/
Bet that news is valid
My ST news alert was off and I'm assuming that news is out now on one of those inside reports that cost 25-81 dollars. One was released today.
We should see it posted soon.IMO
If it was from ST I would not be worried.
Thanks for sharing.
Gold shakedowns engineered to benefit deep-pocketed buyers at the expense of panicky sellers who evidently believe what they hear on the evening news.
Like me JD.
http://news.goldseek.com/RickAckerman/1333634400.php
6.1M Gold 156M Silver 12.5Billion Copper
Where Scale Meets Execution
http://www.frasermackenzie.com/newresearch/SANTA_CRUZ/RPT_Santa_Cruz_Bukacheva_050312.pdf
8-K/A Posted 4/4/12
Was it in there.
Have not heard or seen anything about that?
Nothing on the web site found either.
Nothing was sent to me.
I think we have 12 directors maybe just not emailed yet or posted.
I'll keep a look out, Thanks
http://markets.ft.com/Research/Markets/Tearsheets/Directors-and-dealings?s=MUX:NYQ
Who was it from
Rob at the El Gallo Road Opening
http://www.facebook.com/media/set/?set=a.272687449481943.65808.144409045643118&type=1
* Gold Alert* Mining firms posted some of the biggest losses in the index and tracked commodity prices lower in the overnights.
I'm looking out for a 2 to 5 percent drop by the EOD.
Freaking bear on the loose
Hope we fair OK
Yes TrolleySnatcha Rob knows best and got our backs.
See you at the party. Your view is spot on my friend.
JD
Zinc to be the next ‘big base metal play' - Scotiabank's Mohr
Scotiabank says a strong rebound in U.S. auto assemblies is likely to support base metal premiums in the country
Author: Dorothy Kosich
Posted: Thursday , 29 Mar 2012
RENO(MINEWEB)-
Scotiabank economist, Patricia Mohr, predicted that zinc will become the "big base metal play," as a strong rebound in U.S. auto assemblies supports base metal premiums in the U.S.
In the March 27th edition of the Scotiabank Commodity Price Index, Mohr observed, "A strong rally in base metal prices and firmer gold led the Metal & Minerals Index higher in February."
"LME copper prices spiked to US$3.93 per pound last month-leading other base metals higher-as some of the late-2011 gloom on the global economic outlook lifted," she said. "Sentiment has improved alongside firmer U.S. economic indicators on employment, consumer confidence and auto assemblies and economic monetary policy."
Although Mohr noted copper prices retreated, "we remain optimistic that China will achieve a ‘soft landing' with GDP growth of 8.6% in 2012 and 8.9% in 2013."
In her analysis, Mohr observed that spot potash prices eased from US$500 per tonne in January to US$495 in February, "but remained well above US$393 a year ago."
Meanwhile, the Indian government, under budgetary constraints, has cut the potash subsidiary from $327 per tonne for 2011-12 to $294 for 2012-13. "These developments have triggered temporary production cuts by Potash Corp and Mosaic in Western Canada to bring supply into line with lower demand," said Mohr.
However, Mohr observed that Canpotex and the Belarusian Potash Company have just agreed on new contracts with Chinese buyers for the second quarter of 2012 at US$470 per tonne cfr, unchanged from a year ago.
"The recent rebound in soybean, canola and palm oil prices in Malaysia/Indonesia and ongoing strength in corn prices-all requiring large amounts of potash per hectare planted-has improved farm economics and bodes well for solid fertilizer application in North America, Southeast Asia and Brazil, as 2012 unfolds," she said.
In her analysis, Mohr observed that LME zinc prices rose from 90-cents per pound to 03-cents in February, before dropping to a still lucrative 90-cents in late March.
"Zinc may represent the next big base metal play," Mohr advised. "Zinc will shift into ‘deficit' (at latest by 2014) due to ongoing demand growth in the face of significant global mine depletion in mid-decade."
"In 2013, the closure of the Brunswick mine in Canada, Century in Australia and Vedanta's Lisheen mine in Ireland will shift sentiment towards zinc, with prices rallying in anticipation of tightening supplies," she forecast. "In the second half of this decade, zinc demand will be boosted by a recovery in G7 construction activity, particularly in the USA, China could start to use more galvanized steel in the underbody of a car."
"A merged Glencore/Xstrata would be the largest zinc mining company in the world, with a huge 25% share of world mine output (outside China)," Mohr added,
In the meantime, base metals premiums over LME cash in the U.S. Midwest are also firm, Mohr observed, with the ‘Platts U.S. aluminum premium' hitting a 10-month high of $8.75 cents per pound in mid-March. "Aside from lengthy delays in getting metal out of the LME warehouse in Detroit and lucrative warehousing deals, this strength likely reflects a significant recovery in U.S. auto assemblies, scheduled to reach 10.5 million units in 2012:Q2-a level not seen since mid-2007. Consumers and business are replacing an aging fleet, with the average age of vehicles on U.S. roads now at a record of nearly 11 years, up from a normal 9."
Mohr noted that spot uranium prices remain at a low ebb of US$51 per pound and base term-contract prices are US$60. "On a more positive note, China has completed drafting its new nuclear safety guidelines, spurred by the Fukushima-Daiichi event in Japan," she said. "This should allow a resumption of the approval process and actual construction of new projects this year. China has 15 nuclear reactors in operation and is in the process of building at least 25, with 50 more planned."
About Canada Zinc Metals Corp. (TSX.V : CZX ; Frankfurt: A0RAQJ )
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources.
Canada Zinc Metals owns a total of 77,754 hectares in 236claims which extend northwestward from the Akie property for a distance of 140 km.
Tongling Nonferrous Metals Groupand Lundin Mining are significant shareholders of the Company.
Copyright © 2012 Canada Zinc Metals Corp., All rights reserved.
Race on to dig new zinc mines as old ones run dry
With experts saying zinc could be in deficit by 2017 if not earlier, miners from Australia to Africa to the European Union are racing against time to attract investment in new projects.
Author: By James Regan
Posted: Tuesday , 03 Apr 2012
SYDNEY (Reuters) -
Zinc miners are betting a long-running global supply glut of the metal used in steel making will turn into a deficit over the next five years as old mines run dry, sparking massive investment in new projects.
From Australia to Africa to the European Union, mining firms are laying the groundwork to dig up an additional 1 million tonnes-plus of zinc annually, nearly one-tenth of world consumption and more than is parked in London Metal Exchange warehouses already overflowing with unsold metal.
Zinc could be in deficit by 2017 if not earlier, experts say, as consumption rises in China, steel manufacturing picks up in Europe and North America and - most importantly - several super deposits run dry, forcing buyers to dip into swollen producer and exchange stockpiles.
With zinc supplies heading for a deficit, Goldman Sachs expects zinc prices to gain around 15 percent by mid-2014.
"While prices are not very good at the moment in zinc, that tightness of supply going forward will drive much better prices," said Andrew Michelmore, chief executive of Minmetals Resources, whose Century mine in Australia is the world's third largest.
LME zinc prices, currently trading at $2,024 per tonne, are off more than 20 percent from the peaks of 2011 and the sector is facing a sixth straight year of surplus.
"The turnaround is more about a shortfall in supply than it is about the growth in demand that is occurring," said Scott Lowe, managing director of Blackthorn Resources, which is digging a new zinc mine in Burkina Faso.
"We think we're on the cusp of a good thing," added Lowe, citing analysts as viewing the zinc market heading for the tightest supply conditions in 30 years.
In 2013, the Xstrata -owned Brunswick and Perseverance mines in Canada, along with the Vedanta Resources Plc -owned Lisheen mine in Ireland run dry, removing more than half-a-million tonnes of zinc from the global system.
CHINA SET TO BUY MORE
Hopes for a deficit by miners come as zinc stocks MZN-STOCKS continue a near-uninterrupted climb since 2007. The International Lead and Zinc Study Group says the global surplus ballooned 36 percent to 353,000 tonnes in 2011.
LME inventories - a depository of last resort - increased during the first two months of 2012 to an average of 840,000 tonnes, almost double the 15-year average of 426,000 tonnes, suggesting another hefty glut for 2012. Last week inventories swelled to a near 17-year high.
"To us, what is remarkable is not how poorly zinc has performed in the last three years, but rather how well, given how dreadful its fundamentals have been," said BNP Paribas metals analyst Stephen Briggs.
As with almost every commodity, mass urbanisation underway in China is behind growth projections for zinc consumption. China accounted for 43 percent of world zinc consumption in 2011, up from just 8 percent in 1992, industry figures show.
China has the largest resource base followed by Australia, Kazakhstan, Mexico and Peru.
But it is still expected to buy more to feed its infrastructure development. More than half the world's annual consumption of 12 million tonnes of zinc goes into making galvanised steel.
HEAVYWEIGHTS VIE FOR MARKET SHARE
With demand expected to rise, Belgium-based Nyrstar, the world's biggest producer of zinc metal derived from ore concentrate, plans to boost output from its own mines by as much as 70 percent this year.
The 2012 mining production target includes 50,000 to 60,000 tonnes of zinc in concentrate from Finnish miner Talvivaara, which has a supply agreement with Nyrstar.
Glencore International and Blackthorn will start shipments of zinc concentrate in the third quarter from the Perkoa mine under construction in Burkina Faso, rapidly building to an annual rate of 90,000 tonnes contained metal.
London-listed Vedanta Resources in 2010 bought AngloAmerican's zinc interests for $1.34 billion and has been touted as a potential buyer of more mines as sector heavyweights vie for more market share.
'READ MY LIPS, NO NEW ZINC'
China's Minmetals is racing to replace at least part of the output it will lose when its Century zinc mine in Australia closes by 2015, taking half-a-million tonnes off the market annually.
Minmetals spent several million dollars trying to find more ore to keep the Century mine going and profit from a turnaround, but in the end was forced to settle for the smaller Dugald River deposit nearby, which is less than half its size.
A full merger of Glencore and Switzerland-based miner Xstrata, now before shareholders, would give the group 16 and 18 percent globally of both zinc ore and zinc metal supply respectively, based on analysts estimates.
Glencore, along with Nyrstar and China Nonferrous Metals Industry, is also helping develop a new mine in Greenland targeting production of up to 150,000 tonnes of zinc a year.
"Our strategy at Teck on zinc the last five years has been, 'Read my lips, no new zinc,' because zinc has been in surplus," said Don Lindsay, president and CEO of Teck Resources, which operates the world's biggest zinc mine in Alaska.
"However, we finally changed our stance on that in November, because we finally see that zinc really is going to switch from surplus to deficit. We don't know exactly when. It certainly isn't this year. But we do see it's going to happen."
(Additional reporting by Sonali Paul; Editing by Sugita Katyal and Ed Davies)
© Thomson Reuters 2012 All rights reserved
"We're in an environment that looks very interesting because we've seen the price of metals go up and there's been a proliferation of companies in the space."
The gold price, which reached a record high of $1,920 last September, has fallen back since then and was trading around $1,655 on Thursday.
McEwen said that price slide has brought pressure to the market. "We're looking at it and thinking: 'There's a number of companies that are going to be denied access to capital.' And it's a highly fragmented space and it's going to be consolidated.
"So there will be opportunities," he said, without hinting at possible targets, except that the company would be happy to remain in the Americas. It has operations in Nevada, Mexico and Argentina.
"So we're trying to look in this market place for something that has a stronger balance sheet and a solid growth path and a strategy to go out there and get presence in the market without diluting the shareholders."
The company had already met five of the S&P's seven requirements.
"The merger we did in January to create McEwen Mining moves us on to the sixth, which is four consecutive quarters of earnings. Right now, we have a positive cash flow, but the earnings will come in the next few years."
The final requirement, he said, is market capitalization of more than $5 billion. McEwen Mining is at $1.1 billion now.
"We think our growth will take us a good part of the way, but we'll have to look to an M&A transaction to get the critical mass," he told Reuters journalists.
Looking for a merger or acquisition as a step toward its goal of inclusion in the Standard & Poor's 500 index by 2015, its chief executive said on Thursday.
"We think our growth will take us a good part of the way, but we'll have to look to an M&A transaction to get the critical mass," CEO and majority shareholder Rob McEwen told the Reuters Global Mining and Metals Summit in New York.
Asked how such a deal might be financed, he said it would likely be through equity rather than debt.
Rob McEwen is still targeting S&P500 qualification for gold and silver miner McEwen Mining by 2015 but may need one or more acquisitions to make it.
RBY Mentioned in this story
http://www.mcewencapital.com/mcewenmining/news/2012/20120330_northern_miner_ian_ball.pdf
Good Story on Senior Vice President Ian Ball
http://www.mcewencapital.com/mcewenmining/news/2012/20120330_northern_miner_ian_ball.pdf
McEwen steering his gold and silver mining co. towards S&P 500
Rob McEwen is still targeting S&P500 qualification for gold and silver miner McEwen Mining by 2015 but may need one or more acquisitions to make it.
Author: Steve James
Posted: Sunday , 01 Apr 2012
New York (Reuters) -
Gold and silver producer McEwen Mining Inc (MUX.TO) is looking for a merger or acquisition as a step toward its goal of inclusion in the Standard & Poor's 500 index by 2015, its chief executive said on Thursday.
"We think our growth will take us a good part of the way, but we'll have to look to an M&A transaction to get the critical mass," CEO and majority shareholder Rob McEwen told the Reuters Global Mining and Metals Summit in New York.
Asked how such a deal might be financed, he said it would likely be through equity rather than debt.
McEwen, who founded giant Canadian gold mining company Goldcorp (G.TO), left it several years ago to start U.S. Gold, which recently acquired Minera Andes to form his eponymous company.
"Our overriding goal is to qualify for inclusion in the S&P 500 within 2015," McEwen said, noting the company had already met five of the S&P's seven requirements.
"The merger we did in January to create McEwen Mining moves us on to the sixth, which is four consecutive quarters of earnings. Right now, we have a positive cash flow, but the earnings will come in the next few years."
The final requirement, he said, is market capitalization of more than $5 billion. McEwen Mining is at $1.1 billion now.
"We think our growth will take us a good part of the way, but we'll have to look to an M&A transaction to get the critical mass," he told Reuters journalists.
"We're in an environment that looks very interesting because we've seen the price of metals go up and there's been a proliferation of companies in the space."
The gold price, which reached a record high of $1,920 last September, has fallen back since then and was trading around $1,655 on Thursday.
McEwen said that price slide has brought pressure to the market. "We're looking at it and thinking: 'There's a number of companies that are going to be denied access to capital.' And it's a highly fragmented space and it's going to be consolidated.
"So there will be opportunities," he said, without hinting at possible targets, except that the company would be happy to remain in the Americas. It has operations in Nevada, Mexico and Argentina.
"So we're trying to look in this market place for something that has a stronger balance sheet and a solid growth path and a strategy to go out there and get presence in the market without diluting the shareholders."
Asked about financing, he said: "Likely shares; I wouldn't say debt at this point.
"I would like to have a larger production base, (but) we still have capital to spend.
"It would likely be equity because most of the participants have watched the prices come down and if they want to stay in the sector they want the upside.
"It will be hard not to issue shares," McEwen said.
McEwen Mining stock was down 15 cents at C$3.99 in afternoon trading in Toronto.
(Reporting by Steve James; Editing by Gerald E. McCormick)
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LEXAM, MUX DD Famous McEwen Quote
"If You Think You Can Or Think You Can't
Your Right".
That was a quote I picked up in my DD on Rob McEwen.
Since that time. This simple motto has changed my life.
Thanks Rob
Happy Palm Sunday
El Gallo Complex development update.
Phase 1 construction at the El Gallo Complex remains within budget and on schedule for first gold pour expected mid-year, 2012!
Key development highlights over the past two weeks are:
- Concrete pouring continues for process plant foundation
- Crushing and process plant equipment arrives on site
- Administration building nears completion
- Final grading preparations for heap leach pad expansion nears completion
New photos on website