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Sam,on our TRGD site says we will be shipping Don Ramon concentrate in 2 weeks.Fine by me.Apparently payment comes at the time of shipping.
Payment.Fine noun.
Thank you Sam.
A typical dishonest post,illogical too.
No Mortgageman,there are paid posters.Fact.The odd one or two has actually come clean and admitted their action and tactics.We do have one vociferous basher here whom I suspect is a paid basher.Sure,you also get paid bashers and pumpers playing for themselves.
Lets face it,no one has an alleged big holding in a stock,then mercilessly thrashes it.You sell or you have reason to hold.
It is well known that hedge funds have smashed the junior sector with their shorting,often illegal shorting at that.Would they stoop to use bashers?
Then again,would private banks,responsble for crippling the USA economy,ask to be bailed out by 'friends's at the Fed?
A junior,in this market,does not hold up by accident.
My grape vine tells me there is action afoot.
I must actually find TARM on yahoo.
A perspective.
Gold and silver have dropped lately.
Is the financial crisis over?
Not is the huge loss provision the aussie NAB bank is making on their USA mortgage holdings-90% loss.
Not is the Mayor of NY City is right.
Revenue down dramatically.
Costs up dramatically.
How about this comment from the CFA Institute Chicago held annual meeting
"I am officially scared," GMO investment manager Jeremy Grantham told professionals from as far away as Abu Dhabi and Malaysia. "In 2000, we had a technology bubble. But this is massive, a massive credit crisis and a bubble in global housing, global equity and global land."
And he is talking money in matresses and gold!(See 321 gold.)
I am not betting against the PM sector.
What you say is basically true,TRGD is suffering mostly as it is a junior.We are beset with problems many juniors have,plus the complexity of failed JVs.
I have not enjoyed my TRGD lsses and wish I had sold out at 80 cents,but I am not calling it a zero value stocks.Anyone making such a call owns no stocks and stacks up simply as a basher,paid or otherwise.
Cash and cashflow is the only measure of the value of a junior now.
The TRGD property development model was fine,when JV partners could get cash for their development work.Once JV partners cannot get the funds they need,we have returned properties-and a lot more funding to do.
Looking further out,will the 1970s be relived in the precious metals? If so,at some stage,later in the 'game',the juniors will take off.For now,the hedge funds make the junior market with their shorting
The gold majors are still doing well.
Ron Paul's portfoio's big winners are Barrack and Goldcorp. Quality,low cost producers too will do well,at current gold/silver prices.
The USA financial stocks are starting another sick run.That should favour gold and silver.
Will we see a huge PM run,as we had in the 1970s?
It could take a major run before the juniors break out generally.
There is cheap inground silver out there.
Failure is an option in mining
Bob Moriarty
Archives
July 28, 2008
Many writers have pointed out that we are probably in the 2nd phase of the precious metals bull market. The first phase ran from the middle of 2001 at the bottom until December of 2004 when we had a major top. The juniors have kind of moved sideways for at least a couple of years. A few did well; many haven't done much at all. In 2002 and 2003, even the biggest turkeys were flying, the wind was so brisk.
In phase 3, even bigger turkeys will fly but we aren't there yet. We are in the area where disgruntled shareholders and directors are firing CEOs left and right. Many deserve it, many don't. Failure is an option and many juniors have failed.
From 2nd quarter 2003 to the 2nd quarter of 2004, the share price of Sterling Mining went from around $.25 to $14. I met with Ray Demotte of Sterling when the stock was $.75. He thought it was worth $2-$3 in a year, I thought it was worth $7- $8 if he communicated the brilliant move of purchasing the Sunshine Mine in Kellogg, Idaho. We were both wrong, the stock shot to $14 on the strength of just the name. Everyone knows the name of the Sunshine.
At $14 Demotte ran around Vancouver telling everyone the stock was really worth $30 and it was all due to his brilliance. I told him that he needed a real management team and if he wasn't careful, he would have a $3 stock. Again we were both wrong. He never hired the management team he promised me and the stock plummeted to $.95.
In late May of 2008, his rubber-stamp Board of Directors turned on Demotte and let him go; "Raymond De Motte is no longer President of the Corporation." I'm told they got to the point they couldn't make payroll and were on the verge of bankruptcy. It was an action long overdue. You haven't heard boo from a goose from any of the silver "Gurus" but Ray Demotte had no mining background and couldn't mine his way out of a wet paper bag.
That said we probably have hit a major bottom in gold shares last Friday. According to my favorite chart investors favor the metal over mining shares more than at any time in the last five years. That is the mark of a bottom. Investors hate gold shares. Gold and gold shares should be at a low.
The slow motion crash of the world financial system continues. The FDIC seized two more banks last week. Fannie Mae and Freddie Mac have for all practical purposes been nationalized. Those brilliant 435 fools in Congress now get to vote on the correct price for their shares. I hope they vote the right to do the same with my gold and silver shares soon.
On the 22nd of July Minco Silver (MSV-T) announced a takeover bid for Sterling Mining. As is usual with most takeover bids, MSV immediately dropped 10% while Sterling climbed to $1.30 from $1.25. I'm surprised on both counts. It's a great deal for Minco, putting them solidly in the mid-tier category and it saves Sterling from bankruptcy.
In late June Sterling took out a secured loan for $2.021 million dollars at an annual interest rate of 56% with payment due in 120 days. That should give you a good idea of just how critical things got. But Sterling has assets, real assets that in the right hands could be quite valuable.
Sterling believes they can produce 2.8 million ounces of silver in 2008 and ramp up production to over 5.84 million ounces in 2011. The company ran out of money at just about the same time they ran out of management. Their 43-101 ounces are over 231 million ounces.
Minco Silver is offering .51 shares of Minco (MSV) per Sterling share. At the time of the offer, it was worth $1.58 a share to Sterling shareholders. I was aware other silver companies were looking at Sterling but I didn't know Minco was bidding until the press release.
The bid may seem cheap but I can guarantee Demotte left a pile of unexploded mines all over the company. I watched him for five years and it was remarkable that he never showed up on the SEC's radar screen. It won't be a totally clean takeover; the board did nothing but rubber stamp Demotte for years. There will be surprises.
Even knowing that, I think Minco is a good fit. I think the bid will succeed and I think they will close the deal, headaches and all. Minco is well on the way to becoming a large silver producer in China with their Fuwan project at a bankable feasibility stage with 140 million ounces of silver and another 16 million ounces of silver at Changkeng.
I wrote the company up in early March and nothing has changed except the price is lower. Now they are on the verge of doubling potential silver production to 10 million ounces a year in a few years. That's a giant leap forward.
Banks are in the business of lending long and borrowing short. At any given time in the business cycle, a run on any bank would put it into bankruptcy. Not because they aren't profitable, profit has nothing to do with it. But because they run out of cash. We can't know if Washington Mutual will go belly up but we can guess a lot of banks are on the edge of collapse or a run. But a collapse of WaMu would bankcrupt the FDIC all by itself.
Americans still believe the government can step in and save them. If IndyMac goes teats up, all of their insured savings up to $100,000 are insured and half of everything after that. But there was still a bank run. What happens when Americans wake up and realize the FDIC is in worst shape than the banks and more highly leveraged? What happens when the FDIC can't cover the trillions of dollars they have covered?
Personally I don't keep any money in banks except what I need for paying a month's bills. Even that is at risk but it's a risk I'm willing to take. I believe more Americans wake up daily and one day very soon there will be an Argentina style run on all the banks and there is an excellent chance it will go worldwide.
Before that happens you want to have as much money as you can pour into producing silver and gold shares.
When I wrote up Sterling Mining in 2003, an ounce of silver in the ground was valued at $.76 by investors with $5 silver. Now with $17.37 silver you can buy silver in the ground from Minco Silver at below $.60. That's nuts.
But I came across an even better deal last week. Arian Silver (AGQ) closed at $.145 on Friday, a new all time low for the stock that has traded since mid-2006. With just over 131 million shares outstanding, that gives AGQ a total market cap of just over $19 million dollars. But AGQ has 50 million 43-101 silver equivalent ounces and is about to report much higher numbers. Based on Friday's close, investors can buy silver ounces in the ground from Arian at $.38. That's not nuts, that's universe class insanity. Silver Standard was getting $.67 with $5 silver.
And Arian has plans for near-term production in one of the most mining friendly countries in the world, Mexico. This isn't a stock anyone should be selling, it's a stock everyone should be buying.
Arian and Minco are advertisers. We own shares in Arian but the Minco/Sterling deal just took place and I haven't come to grips with it just yet. We are biased so I beg readers to understand they are the ones who win or lose and should be responsible for their own due diligence.
But silver in the ground below $1 an ounce is pretty cheap.
Minco Silver Corporation
MSV-T $2.76 (July 25)
MISVF-OTCBB
32.1 million shares
Minco Silver website
Arian Silver
AGQ-V $.145 (July 25)
ASLRF-OTCBB
131.5 million shares
Arian Silver website
Sterling Mining
SRLM-OTCBB $1.30 (July 25)
SMQ-T
52 million shares fully diluted
Sterling Mining website
Jul 27, 2008
Bob Moriarty
President: 321gold
Archives
321gold Ltd
Well Gene,I clearly mix economics with the sharemarket trends.I do see political factors strongly impacting on economics.(I have not said so,but I believe the economic turmoil signals the bible warnings by John in Revelation.)
For now Gene,I would wait on TRGD news ,before adding or buying TRGD shares.Let some money roll in or other issues get resolved first.
I could not open that post.Pity.
PZG has more very good assys from the two properties in the Sierra Madre.They,plus the SM resource estimate should give a much higher value,even in this junior market.Could PZG be getting shorted by potential SM acquirers?
So you a are man to discern idiocy.Oh sweet progress.
Of Germans,best to leave awful WW11 to behind I feel.
The Germans suffered enormously in the early 1920s,that is why they take great care with the management of papaer money.
It is that paper money disease that makes explorers arfter gold and silver so potentially explosive.Unfortunately the hedge funds have very successully hammered the sector with their shorting.
Odd how the Govt is concerned with the shorting of financials,and the manipulation of oil contracts/price but not such conduct,carried out among explorers.
If USA Congressman Ron Paul is right,bullion and bullion miners will be one of the few thriving gmes in town.
http://www.infowars.net/articles/july2008/170708Paul.htm
Ron Paul.
USA Congressman speaks.
http://www.infowars.net/articles/july2008/170708Paul.htm
Comment.Eyes wide. Frightened.
Gold seems to shine.And in China,70% of the wealth is owned by 1.3 million party members and family.Percentage wise about 00.001 of the population own 70%.That is fascism at its worst-or best. Now in the USA it would be about 8% of the population,until of course,the banking and housing crisis get worse.
The Federal Reserve.
http://www.wtv-zone.com/Mary/BIGGESTSCAMINHISTORY.HTML
Like to travel,na,more like Like to fantacize.
Which hedge sfund is paying this basher.
Sadly it is true,hedge funds are smashing the junior sector.Clive Maund,Bob Moriarty for two,have reported this but it is fairly well spotted by now.
So San Miguel is not a silver property,or Picachio a gold property-no.Of courcse,they are mere paper mineral deposits.
Well today I discovered the ignore btton when I bought up Liketotravel.Ignore is what that poster is on for me.
Agreed.The price of gold is going the right way too.
As an aside,anyone here following San Gold?Aparently their Hinge Deposit is assaying 1 ounce a ton gold.Yes,GORO-like.
I just found out a little about it today but I do not know much.
More bank failures.Hmm,give me real money please.
Yes Silver,more great results.Did you see that metre of silver!
Great day for gold too.Looks to me like bad news is coming soon.That should boost gold further.
Bring on the mining.
Are you holding any other juniors?
Find any junior looking strong or rebonding on good news.
GORO is a rarity but then so are their grades.
Why expect TRGD to do what near no other does?
On the other hand,I expect a lot of positive PM action later this year,that will feed into au and ag seniors.If the 1970s keeps getting re lived,I would expect the juniors to be rerated.
The price suggests a a value of silver in the ground of $2.
I assume the rest of PZG is given no value as too little is known.
One cannot expect inground silver valuing near $4 without a lot more drilling:$40 million dollars worth .That said,the current inferred resource should statistically come to about $130 million,when the 50,000 metres of drilling is complete.
You are right,TRGD will revalue more than PZG,if SM sells near the suggested price range.TRGD should avalue near 60 cents.However,TRGD has more valu-able resources than PZG as more is known of Picachio,Don Ramon,et cetera.So just using SM silver is not so fair for TRGD.
Welcome to a different opinion.Fine.But please fault my economics,as that is the real issue.(I far prefer that your political perspective is accurate.I do not want the gereat constitution overthrown.)
The USA's relative position will reduce in significance this century-no empire lasts as top,for ever.My interest is not today but trying to see tomorrow.Tomorrow has its eyes in parts of today,but which parts are significant?
To me,I try to return to economic fundamentals:debt,production,needed resources,important capital goods,education,efficiency,balance of payments,deficits,money supply,off balance sheet items,patterns.The most significant and maybe the hardest to perceive.Patterns.
Certainly many factors suggest trouble cometh,partly as adjustment has been artificially delayed for 20 years.That helps lean me to PMs.The rise of the BRIV's mass,suggrest to me a massive coming,near unfulfillable demand for many commodities.That bodes well for most commodities-and bodes war too I fear.No depression has occurred without accompanying war.
Thank you Bigshow.I am really intending to stick to the topic but to me,that includes economic perspectives.(Please do let me know if I offend,something I do not want to do.)
For example,today I read that Europe and China account for 25 % of china's exports.That is crucial as it suggests much of the Chinese demand for commodities could remain.What is happening is major and structural.Their planned infrastructual spending is HUGE.$200 billion on power plants alone.I do know,the Japanese are less reliannt on the USA but not sure re the rest of asia and Brazil,Russia,Vietnam.Mind you Vietnam is suffering from 25% inflation,and has the look of a 1997 'paper tiger' a la Richebacher's forecast trouble.
The infrastructural spending in Russia,UAE,China and so on,is beyond anything since the USA exstablished much of the great countries infrastructure stating massively 100 years ago.This time the cale is bigger,much bigger.Consider,1/4 of the world's cranes are in the UAE.Amazing.14 new major cities being built in the arab world:one new Disneyland the size of all the others-in the UAE.
I am still bullish hard commodities-and as China has 100 middle class,they will want more steak,cheese ,USA Cabernet.But belying all,the paper money situation in the west.We will have commodity demand push inflation and paper money cost push inflation.Gold (and silver)seems the real money
to me in this scenario.(Well copper would ned a container or two)
For what it is worth,I still remember,the USA saved us in the 1940s.And the USA had Thomas Jefferson and the great constitution.
Happy holidays team.
Well no Bigshow,the post of Jim Willie's article,is an economics post.It presents a perspective on the current,growing economic crisis.For crisis it surely is.
Such presntations explain why many of us now see gold and silver as money-the paper stuff we see as deeply flawed.
I will not make specific political posts as members and Bowbwins do not see those as helpful,and fair enough.
I do however see economic commentary as very important.Please consider faulting aspects of the Willie article.
The Frighteners.
"Party Games
Sam Mathid
Jul 3, 2008
There is a game of 'Pass the Parcel' happening in the world at the moment. The 'parcel' is filled with U.S. dollars. Just like little children at a birthday party, the governments who are holding vast reserves in the form of US paper dollars, are full of apprehension and nervous giggling lest they be left holding the 'parcel'. They are jiggling the parcel up and down and frantically trying to pass it on to the government sitting next to them. The general hubbub is almost drowned by the din of bursting balloons.
The problem in the real world of course is that there are many, many parcels of U.S. dollars in the hands of foreign governments, and they are all trying to pass them to each other. No one wants the parcel they already have, let alone the one in the hands of the government sitting next to them. They all want to avoid being left with a vast wad of cash which they strongly suspect will end up not only worthless, but making them look like complete mugs.
All are hoping against hope that the storm will pass. All fear to be the first to start selling in large amounts, yet simultaneously fear to be the last. Each is regularly divesting itself of tiny amounts. As fast as they do manage to dump a part of their parcel those dollars head back to the U.S.. U.S. exports will start to look good for a while which will reflect the desperate desire to exchange the dollars for something, anything.
All money must eventually head back to the country of its issuance. That is the only way ultimately that value can be realized. Now is the time for that value to be realized, whilst there still is any. The trillions of U.S.$'s in the world are returning home. As that money washes up into the US economy so it will continue to drive U.S. domestic prices higher and higher, placing ever greater strain on the economy, which is already at breaking point.
The period wherein the U.S. dollar was the official reserve currency of the western world is now over. That will neither be announced nor admitted by any government until they have finally dumped the dollars that they own. It is in everyone's interest to maintain the facade, at the moment. In reality they want almost anything except U.S.$'s in their reserves.
Bernanke must dramatically raise interest rates to strengthen the U.S. dollar, that is a MUST. Of course that will mean the collapse of the whole U.S. real estate market within a month. That would lead to the absurd and sad situation of millions of empty houses within sight of millions of families living in cars and tents. Such an interest rise would take a Volcker on steroids which Bernanke most certainly is not, so of course he hasn't raised interest rates, and he won't.
His whole education and training make him more inclined to again drop interest rates in a forlorn attempt to re-start money flow into the asset area of the economy. Too late he has been disabused of some of his Ivory Tower notions and now knows that won't work any longer either. 'Fool me once shame on you, fool me twice shame on me'. Dropping interest rates would also precipitate a panicked flight from the U.S. dollar which would see a faster flood of ever more worthless dollars turning up in the supermarket and energy area of the domestic economy. No matter what Bernanke does or doesn't do, the chickens are coming home to roost.
It is unlikely to be the Chinese or any of the other major holders of U.S. dollars who precipitate mass selling. They have so many that they would crash the currency just by opening their mouths. They also are damned if they do and damned if they don't. It will more likely come out of left field and be one of the smaller holders. Maybe one of the Arab mini-states will take the chance that they can dump all their dollars without anyone noticing. The likelihood is that it would be immediately noticed. Everyone has their beady eyes on everyone else at the moment. The awareness that the 'big dump' had started would lead to a stampede. How would the Fed handle that... print more dollars... tinker with interest rates?
Obviously, not selling at the moment is seen by the major holders of U.S. dollars as an option, albeit an enforced one. Becoming a buyer most definitely is not an option. Along with the game of 'Pass the Parcel' there is another concurrent game being played called 'First to Blink'. The government who blinks first and tries to dump their wad at below market price just might win, immediately followed by everyone else losing. There may be some reservations about being the first seller, but there will be none about the desire to avoid being the last seller.
The unpleasant truth is that the mutually agreed selling truce is occasioned by the fact that there are no buyers of the amounts needing to be sold. All would dump their dollars now if they could, the fact that they would like to, but cannot, speaks loudly and eloquently of the problem.
Thus Bernanke will continue to procrastinate and do nothing with interest rates. It is the sanest approach, as it is the approach most likely to put off the inevitable for a while longer. Procrastination is contagious, which at this point may be a good thing. Any decision to do something will end in complete disaster as it forces the governments playing pass the parcel to blink and also do something. Whatever they do would be very bad for the U.S. dollar and curtains for the U.S. economy. For many decades there has been a very ugly reality underneath the attractive veneer of confidence in the U.S.$ and economy. That veneer of confidence has now completely gone. What lies exposed is not a pretty sight.
The only hope for America is that those governments holding U.S.$'s will continue to hold them even though they are quite aware that they will at best drift down in value, and at worst collapse. It is a conspiracy of silence aimed at maintaining the status quo. I will hold mine and pretend that they are still valuable if you will do the same. All governments are using the borrowed time as best as possible to prepare their economies for the coming collapse of America. The U.S.$ will continue to be a currency for as long as that tacit agreement holds.
The End of the Party
I wonder how Bernanke is sleeping at the moment? I also wonder whether he and Paulson are personally buying gold and silver and secreting it away. Everyone who truly understands the situation has a survival plan. I find it hard to believe that Bernanke and Paulson still do not understand the real situation. Maybe they believe the government will look after them... maybe it will. What is for certain though is that the government will not look after Main Street. As always the common herd is pencilled in to foot the bill for this disaster. The bill is far larger for each household than each household owns in total assets. If it is any consolation the banks will go down as well.
For those who have not already lost everything, there is right now, possibly, one final chance to remove their capital from the cesspit that comprises the U.S. financial markets and exchange pseudo investments for real money... namely gold and silver. Not the paper variety of options or futures, but bullion. All paper is now suspect.
Even stock in mining companies is now suspect due to the vast amounts of naked short selling that has taken place. Many 'owners' of mining stock are going to find out, too late, that the statements of stock ownership in their filing cabinet are worthless. There are publicly listed companies on the major U.S. exchanges that have more stock sold than legally exists, a lot more. The situation on the minor boards is even more dire. An unknown at this time number of 'owners' of stock are going to find out too late that they in fact own fraudulently printed paper worth precisely zero.
Criminality in the U.S. financial markets is rampant and all pervasive. Corruption exists from the top to the bottom. A blind eye is turned by the regulators because they are afraid that to expose it now would topple the whole system. That gives an indication of how large the corruption is. It is the return of the Wild West (WW2), and at this point, the outlaws are running the show. Marshall Elliot Spitzer was the guy who rode into town on a white horse. He was almost immediately gunned down. Is there anyone else out there who will publicly challenge what is happening... preferably someone who doesn't mind going home to his wife at the end of the day?
Naked short selling is a great example of the type of 'mal-investment' created by showering a financial system with cash and credit and calling it economic growth. The past has, and the future will, show a direct parallel between the size of the inflation and the size of the ensuing criminality. What has been exposed so far is just the tip of the iceberg.
The economies of the world are on a knife's edge and we can but cross our fingers for the 'system' to hold together a while longer. The best hope is for a long, meandering collapse, much along the lines of the last 37 years, but at a greatly increased pace. It will end up with not just both parents being forced to work to survive, but the children as well. That will probably be spun as 'Children's Liberation'.
America no longer has even the appearance of an expanding economy because the world will no longer lend the money to finance it. That is because they know now, as they should have known years ago, that the U.S. cannot hope to ever pay back the money that it has been borrowing.
The worst case scenario is for a sudden and calamitous fall with no time to adjust. The end result over whatever time frame it happens will be very unpleasant. It will be a profound shock for most people who have been conditioned to believe that whatever happens the government will look after them.
A Party Bag For Everyone
The transition from fear to panic when it comes will be remarkably fast. One moment people will be just sitting there eating their Prozac, the next they will have a party bag in their lap. Inside the party bag will be a parcel which has finally found its way to its real home. At that point the contents of the parcel will be exposed for what it really always was under our current banking system... debt... vast, unpayable debt.
***
The brilliant Professor Emeritus Antal Fekete is conducting a seminar in Canberra, Australia from the 11th to the 14th November this year. Meet and hear one of the giants of our age. Bookings for the seminar can be made through:
feketeaustralia@yahoo.com
I attended Professor Fekete's seminar in Hungary in August of last year and to say that it was memorable is an understatement.
Jul 2, 2008
Sam Mathid
email: sammathid@yahoo.com
© Sam Mathid 2006-2008
321gold Ltd"
Say it ain't so.But it is!
USDollar on Edge, Gold on Verge
Jim Willie CB
Jim Willie CB is the editor of the "Hat Trick Letter"
Jul 3, 2008
Use this link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
The USDollar is on the edge of the chasm again. The nonsense has been cast aside about a bank recovery, a housing stabilization, and an economy that can withstand a spillover. How incredible it is to see grown adults accept such marketing and promotional drivel. Wake up and smell the blood! The US financial and economic system has never been so vulnerable in almost a century. What we see now is far more dangerous than the 1970 decade, characterized by vast cost shocks. Back then, China was not a player. Its current presence puts a price ceiling on finished product pricing power, and even more importantly, on wages broadly in the labor market. Households cannot afford higher prices, as bankruptcy pain escalates. Other key differences are discussed in the upcoming July Hat Trick Letter. The US financial networks and media seem to describe the entire set of symptoms that constitute near systemic collapse, without ever mentioning the potential for collapse. My view is that the banks will lead the process. They, for the most part, will be making giant strides into mine fields, after having held themselves back on accounting shenanigans. Their structured vehicles laden with acidic cargo have been circling the cities for some time now, but must soon return to the company back lots where their destruction might spread to the vital corporate centers. Most banks will dilute themselves into oblivion, as they stave off bankruptcy, improve their liquidity, and deal with the steady stress of insolvency. Some banks have begun to call in healthy loans in order to maintain cash positions. Some are kiting on deposits, borrowing them illicitly during an unsanctioned three-day period of sinister shifts. Some like Wachovia and Key are dead but have not admitted it. Most are demanding that good borrowing customers jump through hoops endlessly.
A couple big Wall Street investment banks are probably walking dead also, such as Lehman Brothers and Merrill Lynch. On the next round, they will tend to take each other down together. General Motors is being prepared by financial funeral directors as we speak. See the Merrill Lynch downgrade. The dead are downgrading the dead! Preparations are being made to relax official rules in order to facilitate bank failures, reported in the news without bother of implications cited. Treasury Secy Paulson wants 'additional emergency authority' to limit financial market disruptions. Translated, that means he wants relaxation of bailout mechanisms, loan extension facilities, and other bank sector subsidies, even as handouts and corrupted doles are to be widened. He cites powerful negative forces from energy prices, bank & bond crises, and the housing decline. He uses the word 'liquidation' rather openly, much like 'fire' in a theater. He talks openly about orderly liquidation of large financial institutions. Implied is more JPMorgan assumption of monumental books of business, otherwise known as casino games. Many such security assets have no market anymore. Try selling a subprime mortgage bond these days, or a leverage bond composed of the same decomposing debris! He is trying for a second time to propose a blueprint for regulatory overhaul to benefit the Wall Street elite banks that caused most of the Western world financial destruction. When the USGovt seeks to enact reform, Paulson wants them to reach for his blueprint.
Imagine hurricane preparations devised by town officials, with nobody changing daily activity and habits. For two decades, the public has subsidized corrupt, crooked, conniving Wall Street elitists without a peep of objection. The problem is that the public citizenry in the Untied States is profoundly ignorant, based upon lack of reliable information and lack of ability to discern much beyond video games and reality television shows and new hamburger options and Hollywood star drug habits. The majority is clueless, while the enlightened few feel helpless to contend with a corrupted system that controls the media networks, regulatory bodies, and law enforcement. Lawsuits against JPMorgan have all failed. Challenges against the USTreasury on gold management have all failed, yet are ongoing. Challenges against the commodity exchanges on oversized short position concentration have all failed. Meanwhile, most Wall Street information shared publicly is patently untrue, self-serving, and acts as part of their corporate brokerage trading strategies. In order to act defensively in defiance, one must invest in gold and silver, or else buy into an energy firm.
Last week the US Federal Reserve blinked. This week they are hiding. They have no policy options left. They are backed into a corner. They can defend the USDollar and further kill both housing and credit starved commerce, or they can bow to the stock market with further stimulus to the USEconomy and invite additional grand increases to cost structures again. The USFed has suffered some rather substantial damage to its private portfolios. This is unprecedented. They are not an altruistic organization, but rather the most parasitic exploitative financial organization ever to operate on US soil, outside organized crime. Heck, they are Ruling Elite organized crime in league with the USGovt! That is just another description of my oft-quoted theme of the Fascist Business Model in full force since year 2000. That is the legacy of the current administration.
Now the Intl Monetary Fund has decided to conduct an investigation into the financial management of the US banking system! This is totally unprecedented. The German journal Der Spiegel wrote that the IMF had informed US Federal Reserve chairman Ben Bernanke of its plans for a general examination of the US financial system. The IMF board of directors has ruled that a so-called Financial Sector Assessment Program is to be carried out in the United States. This, according to the German journal, "is nothing less than an X-ray of the entire US financial system No Fed chief in US history has been forced to submit to the kind of humiliation that Ben Bernanke is facing." For some reason, the entire story escaped the intrepid lapdog US press network system. We would live in a different world if all financial network news was from public funded commentators. My view is that some sort of powerful steps are being taken to perhaps wrest control of the US banks away from Americans, after declaring them to be a high risk to the global financial system. In 2001, reports came out that the Bank For Intl Settlements in Basel Switzerland had declared the Soviet Union a geopolitical security risk. After large loans were called for repayment, the Soviet Union collapsed. Back then, the BIS also announced that the US banking system represented a similar financial risk to the global economy. One must wonder if some profound changes are soon to come.
USDOLLAR ON EDGE OF BREAKDOWN
The USDollar is showing early signs of breakdown. Look closely not at the critical support levels from March and April, but rather the intermediate pattern. If the intermediate pattern on display over the last four months is ignored, and a simplistic view is taken of critical April support levels continuing to hold, then one might conclude 'No Big Deal' on the recent USDollar move down in the last couple weeks. However, if that intermediate pattern is viewed in technical terms, one must conclude that the US$ DX index has begun a breakdown. At 72.10 late in the day Wednesday, the breakdown continues almost silently. Gold and silver prices have responded. Notice the 200-day moving average held firm since the bounce began in March and April. One can easily now call that bounce as utterly feeble. It enabled a vividly clear pause pattern. Those who call the bounce as the beginning of a US$ recovery are exaggerating, undoubtedly motivated by the vested interests of Wall Street to support trade of their own private book of investments. The US$ DX index has broken below the clearly defined bearish pause flag pattern, one found in classical technical chart textbooks. The MACD cyclical index shows a definite downward direction in the upper chart portion. The crossover in this moving average convergence divergence index is early but profoundly clear.
The biggest confirmation one can point to on the USDollar weakness, extended from the USEconomic weakness, is the big decline in the 2-year USTreasury Bill yield. It has continued to fall from the time of last week's article about the market response to the USFed that blinked. With a 2-year USTBill yield now at 2.60%, some conclusions can be drawn. An economic recession is confirmed. The USFed has had a rate cut taken off the table. More price inflation is coming, permitted as a harsh secondary expense for treating the worst recession the nation will see in 70 years. A credit derivative accident spawned from higher long-term rates cannot be permitted, but might occur anyway despite all the wizards best efforts. One should regard all talk of crude oil speculation to account for its price rise as pure distraction from the clear and powerful USDollar risk of further breakdown.
The euro currency has been the principal beneficiary of the USDollar weakness in the last couple weeks. It is back over 158, after having flirted with the 154 handle for a spell, just enough to fool the silly casino players on Wall Street. In fact, today it is near the 159 level. The euro now threatens all-time 160 high established in April, having surpassed both the May and June highs. Europe has problems, but they also have a trade surplus and an official interest rate not so absurdly low as the American rate. The EU economy is totally bifurcated, with southern nations under extreme duress while Germany is now running essentially flat. Maybe the Germans running the Euro Central Bank are attempting to fracture their monetary union? Any official interest rate hike ordered by the Euro Central Bank, which meets on Thursday, would be ill-advised. They might do so anyway, but watch for them to take it back later this autumn if they are so unwise as to do so. The subtle punishment will be a euro well past 160 toward 170 in the exchange rate, which will interrupt European exporters severely. The British pound sterling has actually risen also, despite its utterly pathetic set of fundamentals. Without its lofty official interest rate, the sterling would be panhandling with licensed hired vagrants outside the FOREX trading halls. The currencies are analyzed in more depth in the Hat Trick Letter reports.
The one loud fundamental behind the USDollar weakness is the endless war. Its costs are one billion straws on the camel's back. Its sacred status should be more debated, especially since it has contributed in an important way to the destruction of the national finances. The debate on private profiteering and military contract corruption, not to mention its high priority for contraband trafficking, should begin, except for loud cries against the patriotism of such critics. The conclusion is that patriots should be silent to profiteering, corruption, and trafficking. Go figure! A side comment on yet another doctored statistic. The number of soldier deaths in Iraq & Afghanistan is officially tied to those who die with boots on Iraqi and Afghan soil, excluding all soldiers who die following serious wounds in Qatar, Kuwait, Persian Gulf naval vessels, German hospitals, Walter Reed Hospital, and so on. My sources report that the war death count is 3x to 5x higher than the official count, thus another falsified statistic. This writer wants America safe, but the real threats reside in Wall Street, the USGovt, and the ancillary agencies.
GOLD ON VERGE OF BREAKOUT
The gold price leads the precious metals. Simultaneous with the US$ weakness, the gold price has lifted above the May high. No resistance exists between the 950-960 ribbon and the all-time 1030 high registered in March. The retest of the May low has been successful. Its price now stands just shy of 950 late on Wednesday. Notice the 200-day moving average held in support, guiding FOREX traders. A powerful reversal seems evident as a bowl-shaped pattern. A sharp uptrend in the MACD is also clear in the cyclical index. In my view, the fundamentals are present for a triumphant challenge of the 1000 mark. When 1000 is indeed broken, look for a powerful breakout to at least reach 1100, and probably shoot up to 1200 quickly. Recall that we are still in the slow gold season, so prepare for something very big during the typically strong season.
The USFed has no market friendly options left. Such is the plague of stagflation, as all options are seen as deeply harmful to one or another large segment of the USEconomic total system. With no hint anymore of deceptive USFed rate hikes, with continuing bank crisis mired in insolvency and soon bankruptcies, with continuing housing glut weighing down the entire economy, with enormous costs strains led by energy and food, the USEconomy is absolutely certain to serve as a big drag on the global economy with its recession. Its denied recession has given ground to a new debate on how deep the recession will be. Of course, unelected minions in the USGovt and entrenched conmen on Wall Street will continue to harp on how we have avoided a recession, all stupid talk of self-serving nature. As the USGovt reacts to recession and the end effect for handouts of beans & rice to the bedeviled citizenry, gold will react to the inflation behind the solutions. As the USFed and Dept of Treasury react to the banking debacle extended from mortgage bonds, gold will react to the inflation behind the solutions. The bigger problem is that the solutions will not solve much of anything, and will be required on a repeated basis. My theme of 'Vicious Cycles' directing the destruction in the meltdown have become more widely recognized. Each treatment of subsidies, liquidity measures, handouts, and bailouts will be followed by more of the same. Nothing has been solved. Structural breakdown needs more than a run through the car wash with a Wall Street wax job in order to produce deep reform.
The silver price improvement has finally caught up to that of the gold price. Its monster 70 cent move up on Tuesday brought a smile to my face. When 21 is indeed broken, look for a powerful breakout to at least reach 25, and probably shoot up to 30. Recall that we are still in the slow precious metal season, so prepare for something very big. The central banks own no silver. The commodity trading pits are under pressure to deny delivery. Shortages are reported by both the USMint and diverse coin dealers. Some silver merchants report continued brisk trade, the only arena not flashing red lights.
FINALLY SOME MOVEMENT IN MINERS
Finally the precious metal mining stocks have picked themselves off the ground. A nice reversal pattern is evident on the weekly chart. Previous charts are shown in daily terms. Notice the W-shaped reversal pattern, better known as a 'Reverse Head & Shoulders' pattern of bullish type. The neckline lies at 460. The head has a bottom located at the 400 mark loosely determined. So in the intermediate term, expect a move to 520 on the reversal, surely enough to challenge the March high. Time must be spent with the right side action at the 440-460 ribbon of resistance. True to form, Wednesday saw a down move, which will build the right side shoulder. The next move over 460 on the HUI index will trigger a big upleg. A challenge toward the 520 high will come in a matter of weeks, not months. The reversal move will offer strong momentum for that challenge. Expect new breakout highs before September is over, probably far earlier, like later in July or in August. Last year in surprising fashion, powerful moves were seen in gold and the USDollar during the usually quiet early August timeframe. Expect the same this summer.
Notice the 20-week moving average has provided support in December 2007, in February, in March, and might again now. The 'Head' of the reversal pattern found support from the 50-week moving average this spring. Given that support from the 50wMA, one should expect strong support from the 20wMA this summer. An important final point must be made. During the springtime correction, the 20wMA never went below to cross the 50wMA. This implies the bull market in mining stocks remains intact. Try telling that to the Canadian Junior mining stocks though. Their day is coming. The low sentiment could mark its bottom. The July Hat Trick Letter will display the HUI versus S&P500 stock index ratio. It shows a tremendous reversal recently. In other words, as the mainstream 'Paper-based' stocks in the S&P stock index have suffered, the HUI mining stocks have advanced forward. The negative correlation is very favorable for precious metal investors involved with mining stocks.
In the last two months, some important points should be kept in mind. The bigger mining companies must replace depleted reserves. They are turning to the successful explorers, case in point being both Goldcorp and Barrick. They are not interested in acquisitions of mid-sized junior miners, but rather the explorers that possess expertise in exploration and discovery of valuable ore deposits. A bidding round of junior miners is not only likely, it is also guaranteed. My eye is set upon the hedge funds who are in many cases employing spread trades, going long the large mining stocks and going short the explorer speculative mining stocks. Expect hedge funds to take heavy losses. Some actually believe that Barrick is a ringleader behind providing capital not to fund their own mining operations, but to New York and London hedge funds to suppress the small gold mining firms. Others believe that Goldman Sachs has abused its managed GDX exchange traded fund, as they short the entire sector by shorting the entire index. One should consider the possibility that either or both the GLD or SLV exchange traded funds, managed by the cartel members JPMorgan and Barclays respectively, might be assisting in suppression of mining stocks in order to acquire them later for a price as cheap as a song. This pair of titans surely is shorting gold and silver with paper futures contracts. We live in a corrupt financial world. Its mafia dons reside in New York and London.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS
The latest assay is from hole 24.We have not had anywhere near 23 previous assays.
Does this mean a lot of results pending?
We also need a guide to where these great holes are?
How close are they together?
Anyone seen a map of diagram of the hole's relative positions?
Very much great results.These would be astounding but that we have been so spoilt!
We are seeing consistent ounce plus ton results in the 50-60 metre band.This is starting to look like a very large fairly clearly defined deposit of rich gold.Being consistent and at relatively similar depth,this sounds like it would be relatively easy to mine and exploit.If open pittably,such would be extremely profitable.
So many large gold miners are NOT making increased profit margins as their costs are increasing proportionally to the uplift in gold prices.That will not occur with GORO.
Add in,gold is looking very strong,and major untoward news can only send gold higher.
GORO is a great security cushion.
TRGD keeps the money and shahres as it did when previous partners fell over due to money problems,or non contractural behaviour.Confirmed .
Non disclosure and not honest disclosure-a la Las Minitas are not good.But sometimes delaying disclosure can be justified.Please try thinking a little outsize the cuboid.
Real issues to me.Making cash.Cashflow.That is,achieving what most juniors are not.9 majors were investigating San Miguel.The resource now looks like about 140 million silver ounce equivalent once the remaining 23,000 metres are drilled.But with drilling remaining undone and lacking indicated status.WE will have however a serious find.How much discount for lacking tight drilling?A potential buyer could hand pick quite a few sites to be drilled per their desire,thus tending to prove up the resource where it seems most significant.Not indicated but revealing.
One question.Does PZG or TRGD hold onto to drill all of the possible structures lighly?That is,to an inferred status?That seems to me at least a year further out.Do either hold till indicated ounces are held?Near $40 million worth more drilling would be needed.In both cases,do the companies have uses for money now,that offers potentially bigger rewards?
PZG has a lot of interesting land.They will have geomagnetic surveys I am sure,to help guide them.
TRGD has Picachio and Cucurpe,for two,they seem very woryhy of serious investigating,starting with geomagneic survey if not more sophisticated imaging .That involves costs,as would starting production initially at Picachio.
If many of us are right,precious metals and other commodities could be due an inflation re rating.That can do use good.
For now,seems to me the next 2 months will reflect seriously on our share price.(Particulary as we fingers crossed watch for Don Ramon news)
Precious metals are looking like a break out is arriving.
Inflation fears are one thing but the likes of Casey, Buckler,Williams and Willie are looking a little further out to hyperinflation.
One German commentator of the 1920"s Weimar experience commented how quickly inflation moved from inflation to hyperinflation.
I am reminded of a comment Doug Casey made in 2007.
"Things move slower than you expect,then faster than you expect."
The Plunge Protection Team must be running short of money?
Can they hold up a tilting elephant till the USA election?
Take care team.Clear that mortgage.Plant that garden.Install that house insulation.Vault that gold and silver.
Incidentally,30% of the cost of gold mining comes from energy costs.So far,gold is up dramatically over the last 6 years,mining costs are cutting margins,mines are drying up.
Only very low cost miners are likely to make big profits in this environment.
Well GORO me.
TRGD did NOT break the contract.
La Camera negotiated its way out.
If you check a couple of previously defaulted properties,in each case TRGD kept the payments,kept the shares,kept the property.The law of contracts is on TRGD's side.
Two of the properties returned to TRGD look exceptional propspect too.
2 advantages TRGD has are:
1.Two properties on the brink of profitable production-when that occurs of course.Lluvia and Don Ramon.
2.Partly drilled properties that more than one major junior are interested indrilled .9 potential buyers for SM for example,though that is not the only desired property.
3.TRGD's acquisitorial skills are very good.
The SM situation is interesting.If the current drill success rate is maintained,expect say 125-140 million silver ounce equivalents,once the last 23,000 metes of the 50,000 drill campaign is completed.(That of course leaves quite a bit of the property as yet undrillled)Now to upgrade that underdrilled resource about 4 times the current drilling program is necessary.($40 million is a lot)
Options seem to be.
a.Sell with the drilling fairly limited.That would of course be worth less per silver ounce.
b.Prove up the resource much more-looks like a couple of years at least.
Control its own destiny.Precious.Find a junior controlling its own stormy sea destiny today!This cork has as good a storm anchor as most.
Yes,the model is not working as hoped.But it is working with Columbia and more significantly,with PZG.
The trite little acts of hacking TRGD do you no credit.Too many holes in the ground-yeah,finding too much silver!
Maybe you have not noticed,juniors are down all over and cash is now being hoarded,not being used in higher risk enterprise.(Heck even the redoubtable GORO with its glamour assays and 1 ounce a ton metreages is slipping of late)That being said,I see a major precious metals breakout this year.It will coincide with some most unpleasant events.September does not bode well for sharemarkets of large car ownwers.
TM coming on stream will be very important.A lot more drilling of SM will probably be even more important.
Partly an explanation of why I own GORO and hold real money instead of paper money.
Casey Files:
The Greater Depression
and What You Should Do About It
Doug Casey
The International Speculator
Jun 26, 2008
For international investment expert Doug Casey, there's more than a recession on the horizon... he recommends battening down now for the rough seas ahead... with some special information about making sure your investments can weather the coming storms.
I believe in the existence of the business cycle. That's partly because almost everything in life is cyclical, which has been recognized at least since the tale about Joseph and the seven fat years and seven lean years. The Austrian school of economic thinking explains why the business cycle keeps coming around and does so without relying on a soothsayer to interpret your dreams. I urge you to read the appropriate chapters in either Crisis Investing for the Rest of the 90's or Strategic Investing for a full explanation. But, in a nutshell, government intervention in the economy - through taxes, regulation and, most importantly, currency inflation - causes distortions and misallocations of capital that must eventually be unwound. The distortions degrade the general standard of living, and the economy goes into a recession (call that an incomplete cleansing). Or it goes into a depression - wherein the entire sickly structure comes unglued.
The last real depression took place in the 1930s. The economy very nearly went over the edge again in the early '70s and again in the early '80s. Both times massive re-inflation of the currency papered the problems over (but at a cost). Meanwhile, most importantly, continuing technological innovation and increased savings (motivated by the fear of bad times) led to recovery. Since then we've had 25 years of what Herman Kahn predicted would be "The Long Boom."
Unfortunately, much, much more severe taxes, regulations, and inflation have caused much, much more severe distortions in the economy - especially over the last 15 years. And the boom was financed largely by debt, which made everybody feel and act much wealthier than they really were. It's as though you borrowed a million dollars and spent it all on wine, song and high living. For a while, you'd have a high standard of living and perhaps have a lot of fun. But eventually, when you either paid the money back with interest or were forced into bankruptcy, your standard of living would take a painful drop. The U.S., in particular, has been living far above its means, burning up its own capital and trillions more borrowed from abroad.
This isn't news to readers of International Speculator or even the intelligent layman who follows the news. Oddly enough, there's one glaringly obvious thing that is not in the news today at all. That's the fact that interest rates - nominal rates too, but especially "real," after-inflation rates - are close to their lowest levels in history. And in today's extraordinarily risky environment, they're artificially low. This, and the reasons for it, should be headlines.
All over the world, but especially in the U.S., currencies are being inflated radically; M3 is rising at about 18% per year. Without exception, interest rates eventually reflect inflation. Therefore interest rates are going to rise radically. Governments are currently suppressing rates by lending money cheaply and promiscuously, to keep both borrowers and commercial lenders from going under. But rates are soon going to explode -especially long-term rates. My guess is that we'll see at least the levels of the early '80s, which would mean 15%+ for long-term Treasury bonds. And I'll say that's coming within a couple or three years at the outside.
The government wants low rates, obviously, because low rates make it a lot easier for homeowners to pay their mortgages, among other things. But they forget that low rates also discourage saving - which is the one thing that can actually bring down real rates. Officialdom is between a rock and a hard place, and they're choosing to inflate the currency, hoping to stave off an epidemic of bankruptcy among consumers who borrowed and among the financial institutions that did the lending. The effort will fail and both groups will go bankrupt, simply because the whole society has been living above its means. That will result in large-scale commercial bankruptcies and unemployment.
Higher interest rates will absolutely hammer the economy.
It seems to me a near certainty that we're about to enter something I have long called "The Greater Depression." I suspect it will be inflationary (in the direction of what Germany underwent in the early '20s, or Zimbabwe today), rather than what the U.S. had in the '30s. I should somehow trademark the term "Greater Depression," except that I'm sure Boobus americanus would then blame me for it.
Here I'd like to pinpoint my prime candidate for the Decline and Fall of the Roman Empire, since it almost seems America has been reading pages from their playbook since day one. Many reasons have been evoked for the fall: moral turpitude, immigration, barbarian invasion, Christianity, lead pipes, etc., etc. My candidate is economic stagnation brought on by taxes, regulation and inflation. I'd love to discuss that assertion in detail, but that's not what this article is about.
What should you do?
Reduce your standard of living now (while the situation is still under control), greatly increase your savings (in gold, which is real money) and rig for greatly changed patterns of production, consumption, employment and business for a considerable time. The hurricane that's just starting to hit the economy will both trigger and worsen problems in other areas. Starting with politics, because nearly everyone today believes the ridiculous notion that the government should guide the economy.
It is not hard to explain the sell off.You are assuming this dip has to do with a perception of GORO,it does not.It is a sharemarket general malaize and fear that sees so many juniors declining.Not a lot of sellers but even fewer buyers.
Like you,I have good reasons for owning GORO.
It is not hard to expalin the sell off.You are assuming this dip has to do with a perception of GORO,it does not.It is a sharemarket general malaize and fear that sees so many juniors declining.Not a lot of sellers but even fewer buyers.
Like you,I have good reasons for owning GORO.
I knew of 4-5 companies that has signed confidentiality agreements so as to look at San Miguel data in detail.I believe the number is now 9.
3 holes,all with at least a metre of 20 gram plus grade.5 and 7 metres of over 20 grams on the better two holes!Those are super good.The other point of note,these are not deep deposit:50-100 metres.
You have to have a brilliant number one property,when El Rey only ranks number 2 .(That is of course,for now.)
Like Bobwins,the mining and cashflow initially from El Aquila is a strong focus of mine but we might of course be able to add to the El Aquila ore ,that trucked from El Rey.
I like my cakes with cream.
With GORO,maybe it will oneday be said of shareholders.
"They like their cream with cakes."
That we have 100 million of near all inferred resources,does not help as much as reserves.We need our ounces confirmed as quality ounces.A fair and major question,"What extra infill drilling would be required to upgrade our inferred resource?"
I immediately admit,getting inferred resources first is best.If we had all as reserves,a much smaller figure would occur and disillusion.It is now time to be proving up more of the ounces as reserves,but we also have a lot more land to drill.
If we think back to late 2006,we had 7,000 metres of widely spaced metres drilled.Planned for 2007 was a further 50,000 metres costing about 10 million.So the overall planning was to have 57,000 metres completed.Of that,we now have 34,000 metres completed,or 60 % of the total.
Another 23,000 metres is a lot more drilling but PZG seems to be planning more,beside that figure.If the needed 23,000 was drilled at a similar success rate,we would have an inferred resource of about 160 million silver ounces.I say clearly,that is a lot.That is a big find.(Sure still inferred but easier to get cash to confirm reserves,than to merely initially find the mineralization.)
Now some assistance please team.Today,in my readings,I saw the planned driling PZG has in mind looking forward.It was a lot more than the 'known' 23,000 metres to complete the $10 million campaign.Please can someone post or us what drilling PZG is planning as I have failed to re find it.
Looking forward.150 inferred ounces,followed then then by 150 reserve ounces.That sounds like acceptable
That we have 100 million of near all inferred resources,does not help as much as reserves.We need our ounces confirmed as quality ounces.A fair and major question,"What extra infill drilling would be required to upgrade our inferred resource?"
I immediately admit,getting inferred resources first is best.If we had all as resrves,a much smaller figure would ioccurand disillusion.It is now time to be proving up more of the ounces as reserves,but we also have a lot more land to drill.
If we think back to late 2006,we had 7,000 metres of widely spaced metres drilled.Planned for 2007 was a further 50,000 metres costing about 10 million.So the overall planning was to have 57,000 metres completed.of that,we now have 34,000 metres completed,or 60 % of the total.
Another 23,000 metres is a lot more drilling but PZG seems to be planning more,beside that figure.If the needed 23,000 was drilled at a similar success rate,we would have an inferred resource of about 160 million silver ounces.I say clearly,that is a lot.That is a big find.(Sure still inferred but easir to get cash to confirm reserves,than to merely initially find the mineralization.
Now some assistance please team.Today,in my readings,I saw the planned driling PZG has in mind looking forward.It was a lot more than the 'known' 23,000 metres to cpmplete the $10 million campaign.Please can someone post or us what drilling PZG is planning as I have failed to re find it.
Looking forward.150 inferred ounces,followed then then by 150 reserve ounces.That sounds like acceptable