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Skillz.
Had that kind of day today too...wanted to buy some Breakwater BWR.TO at these levels as I think there are some good catalysts coming...bought BWR in the U.S. My Fidelity acct has been acting up so I can't even determine what I bought! I am at work so always someone watching over your shoulders so have not had the time to research it....might be a better trade than my zinc thesis...!
Art
Interesting Zinc price article from the SH SWN board....
Art
Happy Thanksgiving...!
**************************************************************
Zinc's Underperformance vs. Other LME Metals
Nov. 20,2007
Despite the ongoing commodities bull market, zinc has been clobbered over the past year, with the price dropping nearly 50%. Zinc's underperformance relative to other base metals over the past year is puzzling when one looks at the LME inventories. LME zinc inventories have dropped more percentage-wise than any other LME metal over the past year, yet the price of zinc is down far more than any other LME metal. Here's a summary of each of the other LME metals and their inventories:
o LME lead inventories are actually up on the year, yet the price of lead has doubled this year.
o LME copper inventories are up over the past year, now at nearly double July levels, yet copper is also still up significantly this year.
o LME nickel inventories are about 6 times higher than a year ago, with a significant new source of nickel coming on line recently (pig nickel), yet nickel is still at around the same price as a year ago. LME nickel inventories are actually at the highest level since 2000, yet the price of nickel is up from about $3 to near $14 over the last 5 years.
o LME aluminum inventories are up about 35% over the past year, yet aluminum is only down about 3% in that time.
Despite the weakness over the past year, zinc remains in a longer term bull market. In the past 4-5 years, it has tripled, about the same or more than gold and oil, but it has been a much more volatile path.
Reasons for Zinc's Weakness
There are a number of reasons why the price of zinc has been weak the last year. Here are some of them:
1) Too far, too fast -- From late 2005 to late 2006, the price of zinc tripled. It moved up too far too fast, so it was bound to correct from that parabolic rally. It went from the best performing metal in 2006 to the worst performing one in 2007.
2) A surge in new supply from mine restarts and San Cristobal -- As a result of the huge rally in 2005-2006, a number of old mines that were shut down when zinc prices were much lower because they were uneconomic then have been reopening, as much higher zinc prices made them economically viable again. Another significant new source of zinc is the San Cristobal mine in Bolivia, which just recently started production after many years of development. The market is forward looking, so this surge in new supply has been factored into the price of zinc, even though it hasn't yet resulted in an oversupply situation, at least as measured by LME inventories.
The surge in new supply is only temporary, and doesn't provide the consistent growth in supply needed to meet the growing world zinc demand and offset depleting reserves at existing mines. There are only so many old mines that were uneconomic at lower metal prices and had enough reserves left to be mined economically today. After San Cristobal, the pipeline of sizable zinc projects for the next few years is pretty empty -- Metalline Mining's Sierra Mojada project is probably the only world-class sized zinc project that will be proven feasible in the next year or so. Despite the recent additions to supply, LME inventories indicate that the zinc market is still tighter than other metals, as it had a huge supply deficit to overcome from the last few years -- LME inventories have dropped nearly 90% over the last 3 1/2 years.
We'll soon see if the oversupply situation everybody and their brother have been saying is coming in the zinc market actually materializes, and how long it lasts. Per Scotia Capital's China Commodities Weekly, "China has been sucking up the world’s growing supply of zinc mine output, turning it to refined metals, and then using it for domestic consumption."
3) The perception that China produces more zinc than they can consume -- With the weakness in the zinc price, there has been a plethora of bearish articles on zinc focusing on China increasing their supply of refined zinc without mentioning that they've had to import far more zinc concentrate in order to increase their refined zinc output. China has significantly ramped up their smelting capacity, but their mine supply hasn't been able to keep up -- it's much easier to build a smelter than it is to find and develop a sizable zinc deposit. As a result of the ramped up smelting capacity, China has significantly increased their refined zinc output, but they've had to import a lot more zinc concentrate from foreign mines in order to do so.
The headlines discuss China's increased refined zinc output as if they had a glut of zinc when in actuality their imports of zinc concentrate have increased 178% YOY in the first 9 months this year -- that's an enormous increase in imports, dwarfing any refined zinc exports (China actually became a net refined zinc importer in September despite all these concentrate imports). Once the growth in global zinc mine output slows after the recent supply surge, China may not be able to continue to increase their concentrate imports, and we may have a zinc crisis on our hands rather than the expected zinc glut.
4) Fear of global recession -- With the subprime crisis and weakness in the U.S. housing sector, many fear that the world is headed for recession. Many argue that a U.S. recession means we'll get a global recession, which would mean less demand for base metals. However, even if the U.S. goes into a housing-led recession, that doesn't mean the world will go into a recession, though global growth may slow. Even if China's growth slows dramatically from 10%+ to even 5%, that would still likely mean increased demand for base metals, as the growth in base metals demand has been coming from developing countries, not the U.S. The U.S. doesn't drive the global resource markets any more -- with their huge savings rate and increasing consumption, China is becoming less and less reliant on the U.S. for their own growth. China and other developing countries have a heck of a long way to go to come anywhere near the standard of living of the U.S.
5) Technical shorting of zinc futures -- For most of this year, technical hedge funds have been shorting zinc futures based on a head and shoulders top pattern with a target in the $.90-1.00 area. In the fairly small futures market, these funds dominate, and yesterday's Metals Insider says, "The CTA systematic fund community is running short of this market to over 90% of historic capacity and they are not alone, we suspect." With everybody short zinc, it has been pressured down, but should rebound strongly when the shorts cover. Since zinc hit as low as $1.0185 overnight, it looks like the technical bottom is close.
6) A short-term surge in Chinese zinc exports ahead of an expected tax law change -- The recent uptick in LME zinc inventories may not be an indication of increased supply, but may instead be a reflection of a scramble to beat the impending tax law change in China where refined zinc will no longer receive a 5% export rebate but will instead be assessed a 5% export tax. As Metals Insider explained yesterday, "In China particularly, traders were looking for production and exports to rise ahead of a probable removal of export tax rebates and the possible introduction of new export levies."
Once this short-term surge is over and the tax law change is implemented, look for zinc to rebound, especially with the world's largest producer of zinc likely to export much less refined zinc, if any. Despite the short-term selling it's causing, this tax law change will be bullish for the price of zinc longer term: "The policy will result in a significant drop in China's zinc exports and tight global supply, which will in turn dramatically increase both global zinc prices and zinc concentrate prices. Domestic zinc smelters will have no choice but to accept soaring imported concentrate prices, and will probably be forced to reduce production, Wang explained." (http://www.resourceinvestor.com/pebble.asp?relid=37724))
The Future Looks Bright
We believe zinc is near a bottom and won't go much lower. Mining costs have risen significantly in recent years, especially as measured in U.S. dollars, so fewer mines are economic at lower prices. If zinc prices move even lower, some marginal mines will need to shut down, as they have in the past when prices have dropped. Combine those shutdowns with the approaching shutdowns of mines whose reserves are being depleted, along with the dearth of sizable zinc projects in the pipeline, and the supply picture looks dire even if demand doesn't continue to grow. New, smaller projects or restarts that can only succeed at higher metal prices wouldn't make it at much lower prices. Even if prices rebound strongly, if there are any supply disruptions like there have been with nearly every other metal, the supply increase that everybody has been expecting may not come as planned.
Even most bearish analysts admit that the expected oversupply of zinc won't last very long -- most expect it to only go through 2008, with a deficit returning in 2009 because of the lack of new supply. In our opinion, zinc is pricing in a huge supply glut over the next year, and even if it comes as expected, with the forward-looking market likely realizing that a deficit will be returning soon, longer term the price is more likely to strengthen from here than weaken.
Although shorter term, zinc prices will fluctuate based on such factors as those mentioned above, longer term the prices will be driven by supply and demand. We're confident that growing demand for zinc combined with a dearth of new supply beyond the short term will lead to strong zinc prices for many years.
GreatTrades
BWR
Any view on Breakwater? Selling seems overdone...
Art
Did you vote against it? lol
Art
mmm true/... thanks for your update on LBE prospects...
Art
Bob,
No SWN for the Grandkids account?
Art
SWN
Getting pounded today....hold & mold under pressure....
Art
STP.
wrong board...
Thanks,
Art
STP/STPJF,
Anyone track Southern Pacific resources? Recommendations?
Thanks,
Art
STP/STPJF,
Anyone track Southern Pacific resources? Recommendations?
Thanks,
Art
STO.V
Lets see if Shelton Canada can do a better job with the Lelyaki oilfield in the Ukraine than Kroes Energy did (KRSYF/KRS. Share price moving up with the price of oil...should give better cash flow for self funded drilling...
GLTA,
Art
***************************************************************
CALGARY, Nov. 6, 2007 (Canada NewsWire via COMTEX News Network) --
TSX - V: STO
Shelton Canada Corp. (TSX Venture: STO) reports a twentyfold increase in the company's third quarter results, compared to the same period one year ago. Shelton's unaudited financial and operational results for the three and nine months ended August 31, 2007, show that the acquisition of Zhoda (2001) Corporation in August for approximately $4.9 million gave the company a dramatic boost. Third quarter production increased by 2151% while revenues rose by 2552% compared to the prior year.
Zhoda owns a 45% interest in Kashtan Petroleum Inc., a limited liability company, which operates a joint venture in Ukraine's Lelyaki oil fields with a current net production of approximately 275 bbls of light oil per day.
"The substantial increase in production and revenues for the nine month period compared to last year includes only one month of production from the Lelyaki field within the third quarter." said Mr. Potoczny, President and CEO of Shelton Canada. "The strong financial performance in Q3 supports the company in its current development program in Ukraine."
Shelton together with its joint venture partner, Ukrnafta, is currently completing the drilling of a joint venture well on the newly acquired Lelyaki field in Ukraine and the results should be available within the next couple of weeks.
<< Financial Summary Three month Three month Nine month Nine month period ended period ended period ended period ended Aug. 31, 2007 Aug. 31, 2006 Aug. 31, 2007 Aug. 31, 2006 ------------------------------------------------------------------------- Revenue net of royalties $ 528,075 $ 20,693 $ 574,548 $ 72,314 Expenses $ 487,806 $ 2,222,704 $ 972,214 $ 2,528,341 Net loss before income tax ($ 34,940) ($ 2,202,011) ($ 472,875) ($ 2,456,027) Production 8,714 BOE 405 BOE 9,342 BOE 1,219 BOE >>
Shelton stock trades on the TSX Venture Exchange under the trading symbol STO. A copy of Shelton's MD&A and quarterly financial statements can be viewed electronically on SEDAR at www.sedar.com.
About Shelton Canada Corp.
Shelton Canada Corp. is an internationally focused junior oil and gas exploration and development company, headquartered in Calgary, Alberta and listed on the TSX Venture Exchange. Shelton's primary operations are in Ukraine. The company's five-year goal is to work strategically with its regional partners to become the leader in oil and gas production from Ukraine's resource-rich Azov and Black Sea hydrocarbon basins. A 50-percent Joint Investment Agreement (J.I.A.) with Chernomorneftegas, a leading Crimean oil and gas company, gives Shelton the opportunity to develop concessions in the offshore properties of Biryuchya and North Kerchenskaya. A strategic partnership with Ukrnafta, Ukraine's largest oil and gas company, provides Shelton with 45 per cent participation in the Kashtan Petroleum Joint Venture and operations in the Lelyaki oil field.
Forward-Looking Information
Except for statements of historical fact relating to the company, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information in this news release is characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate," and other similar words, or statements that certain events or conditions "may" "will" or "could" occur. There are uncertainties inherent in forward-looking information, including factors beyond Shelton Canada Corp.'s control, and no assurance can be given that such events will occur on time or at all. Shelton Canada Corp. undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. The risks and uncertainties set forth above are not exhaustive.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE: Shelton Canada Corp.
on Shelton Canada Corp., visit www.sheltoncdn.com; For general inquiries and investor information: Hedlin Lauder Investor Relations Ltd., Toll Free: 1-800-299-7823, Office: (403) 232-6251, Email: irinfo@hedlinlauder.com
Copyright (C) 2007 CNW Group. All rights reserved.
STO results....
CALGARY, Nov. 6, 2007 (Canada NewsWire via COMTEX News Network) --
TSX - V: STO
Shelton Canada Corp. (TSX Venture: STO) reports a twentyfold increase in the company's third quarter results, compared to the same period one year ago. Shelton's unaudited financial and operational results for the three and nine months ended August 31, 2007, show that the acquisition of Zhoda (2001) Corporation in August for approximately $4.9 million gave the company a dramatic boost. Third quarter production increased by 2151% while revenues rose by 2552% compared to the prior year.
Zhoda owns a 45% interest in Kashtan Petroleum Inc., a limited liability company, which operates a joint venture in Ukraine's Lelyaki oil fields with a current net production of approximately 275 bbls of light oil per day.
"The substantial increase in production and revenues for the nine month period compared to last year includes only one month of production from the Lelyaki field within the third quarter." said Mr. Potoczny, President and CEO of Shelton Canada. "The strong financial performance in Q3 supports the company in its current development program in Ukraine."
Shelton together with its joint venture partner, Ukrnafta, is currently completing the drilling of a joint venture well on the newly acquired Lelyaki field in Ukraine and the results should be available within the next couple of weeks.
<< Financial Summary Three month Three month Nine month Nine month period ended period ended period ended period ended Aug. 31, 2007 Aug. 31, 2006 Aug. 31, 2007 Aug. 31, 2006 ------------------------------------------------------------------------- Revenue net of royalties $ 528,075 $ 20,693 $ 574,548 $ 72,314 Expenses $ 487,806 $ 2,222,704 $ 972,214 $ 2,528,341 Net loss before income tax ($ 34,940) ($ 2,202,011) ($ 472,875) ($ 2,456,027) Production 8,714 BOE 405 BOE 9,342 BOE 1,219 BOE >>
Shelton stock trades on the TSX Venture Exchange under the trading symbol STO. A copy of Shelton's MD&A and quarterly financial statements can be viewed electronically on SEDAR at www.sedar.com.
About Shelton Canada Corp.
Shelton Canada Corp. is an internationally focused junior oil and gas exploration and development company, headquartered in Calgary, Alberta and listed on the TSX Venture Exchange. Shelton's primary operations are in Ukraine. The company's five-year goal is to work strategically with its regional partners to become the leader in oil and gas production from Ukraine's resource-rich Azov and Black Sea hydrocarbon basins. A 50-percent Joint Investment Agreement (J.I.A.) with Chernomorneftegas, a leading Crimean oil and gas company, gives Shelton the opportunity to develop concessions in the offshore properties of Biryuchya and North Kerchenskaya. A strategic partnership with Ukrnafta, Ukraine's largest oil and gas company, provides Shelton with 45 per cent participation in the Kashtan Petroleum Joint Venture and operations in the Lelyaki oil field.
Forward-Looking Information
Except for statements of historical fact relating to the company, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information in this news release is characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate," and other similar words, or statements that certain events or conditions "may" "will" or "could" occur. There are uncertainties inherent in forward-looking information, including factors beyond Shelton Canada Corp.'s control, and no assurance can be given that such events will occur on time or at all. Shelton Canada Corp. undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. The risks and uncertainties set forth above are not exhaustive.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE: Shelton Canada Corp.
on Shelton Canada Corp., visit www.sheltoncdn.com; For general inquiries and investor information: Hedlin Lauder Investor Relations Ltd., Toll Free: 1-800-299-7823, Office: (403) 232-6251, Email: irinfo@hedlinlauder.com
Copyright (C) 2007 CNW Group. All rights reserved.
Bob,
Thanks. But I am really looking for a good place to park some cash that is principal protected....as a former banker...what would you recommend... I have used ultra short term bonds but the return is less than short term CD ladders.... sorry for the multiple questions...
Art
true...good point...can't even place a trade via fidelity today...not good...
Art
What do you hold for capital preservation?....ultra short bond funds?...Cash? Yuan?
Art
kipp...call me wrong but I was thinking a rotation out of commodities in general...with the fear of a global slowdown...
Art
yea...but what about the direction? lol
Art
Bob,
Thanks...still am awestruck by PBG....one of the few I loaded the boat on when you first table pounded...looking for round three on your recommendation....round 2 was TGA ! ...
Art
Bob,
I am thinking of adding to my ADA holdings...the move to TSX should improve visibility of their new cash flow status...also, they have some gold potential that is not yet baked in...seem to be well managed...
fundamental question is the zinc outlook...
Art
If you invested in DBBD...not sure you would have forgotten...what a horrible experience! lol....got our act together now though!
giddyup
Art
Len,
$85.20
Art
Nuts...
BLV had a monster day....in a horrendous mkt...are you in that one? Nickel in Norway/Sweden...
Art
wow...that looks good!
Art
oh...my the marketing is raining metal...wow..this is exciting... (don't forget I've been to the end zone before...don't forget......)
Art
OK here it is...SWN...moving nicely on this news..
Art
********************************************************
Selwyn Resources Announces High-Grade Intersected in Don East Deposit Open Pit Target
10/29/2007
VANCOUVER, BRITISH COLUMBIA, Oct 29, 2007 (Marketwire via COMTEX News Network) --
Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to provide an update on recent drilling activities in the wholly-owned Don Valley area of the Selwyn Project. The current drilling is focusing on the 8.0 kilometre length of Active Member between the Don and HC Deposits and is continuing to expand the high-grade zinc-lead mineral potential both in the open pit environment and at depth in Don Valley. To date, 98 drill holes have been completed or are in progress on Selwyn Project totalling 32,721.3 metres. The location of the new drill holes can be found on drill plan maps available at www.selwynresources.com.
Highlights
- DON-103 in Don East zone intersected 15.76 metres true thickness in the open-pit target grading 10.41% zinc and 3.96% lead, including 1.82 metres grading 11.97% zinc and 8.06% lead
Don East Open Pit Target
A total of 46 diamond drill holes have been completed and/or are in progress in both the open-pit and underground target areas for a total of 12,115.58 metres in the Don East deposit. Three drill rigs are now working on the deep underground target identified earlier this summer (see September 4, 2007 news release) to further enhance the mineral potential of this exciting new underground target area. Open pit definition drilling has been temporarily halted pending the receipt of further assay results from the analytical laboratories that are necessary to facilitate a proper evaluation of priority for drilling in and around the Don East deposit.
The identification of thicker, higher-grade zinc-lead mineralization in the open-pit target at the Don East deposit, such as in DON-103, now provides for an excellent opportunity to increase the grade of the mineral potential in the near surface environment. This means that potential increase in grade in the open-pit target could prove important to the design of any conceptual open-pit infrastructure that may be part of any future updates to the mineral resource estimation of the Selwyn Project.
------------------------------------------------------------------------- TrueDrill From To Thickness Pb Zn Pb+Zn ThicknessHole (m) (m) (m) (%) (%) (%) (m)-------------------------------------------------------------------------DON-103 133.00 151.20 18.20 3.96 10.41 14.37 15.76------------------------------------------------------------------------- Including 133.00 138.70 5.70 6.54 20.85 27.39 4.94------------------------------------------------------------------------- Including 137.20 138.70 1.50 8.91 34.07 42.98 1.30------------------------------------------------------------------------- Including 146.30 151.20 4.90 5.24 8.79 14.03 4.24------------------------------------------------------------------------- Including 147.60 149.70 2.10 8.06 11.97 20.03 1.82-------------------------------------------------------------------------
The high-grade zinc-lead mineralized Active Member from the open-pit target in DON-103 is 600 metres southwest of DON-106 (see September 4, 2007 news release); which was the high-grade discovery drill hole for the new underground target currently being delineated by three drill rigs. DON-106 intersected 22.50 metres true thickness grading 8.09% zinc and 1.79% lead including 12.30 metres grading 11.13% zinc and 2.23% lead. DON-103 is an important intersection because it demonstrates continuity of the higher-grade mineralization between the open-pit and underground target areas. It is also an important intercept because it parallels similar relationships known to occur at the XY Central deposit, 17 kilometres to the southeast, where there are known high-grade intercepts in both the open-pit and underground deposits. These new intercepts of higher-grade zinc-lead mineralization further support the conceptual, detailed geological model of a laterally extensive higher-grade core zone to the Active Member at Selwyn Project.
DON-103 is also not the first drill hole in the open pit target at the Don East deposit to intersect higher-grade zinc-lead sulphide mineralized Active Member. DON-053 (see May 28, 2007 news release) was the first drill hole to intersect a high-grade zinc-lead mineralization in the Don East open-pit target and was collared 640 metres northwest of the discovery drill hole, DON-036 (see November 30, 2006 news release); however, it is important to note that DON-053 was fault-bounded on both the hangingwall and footwall contract of the intercept. DON-053 is located 620 metres southeast of the new intercept in DON-103. DON-055 is the up-dip follow-up to the high-grade intercept in DON-053 and intersected 33.90 metres true thickness of well mineralized Active Member. Intercepts for DON-036, DON-053, and DON-055 include the following:
- DON-36 intersected 18.62 metres true thickness grading 5.26% zinc and 1.45% lead including 2.95 metres grading 13.18% zinc and 4.91% lead (see November 30, 2006 news release)
- DON-053 intersected 5.40 metres true thickness grading 6.55% zinc and 1.51% lead including 2.20 metres grading 14.53% zinc and 3.61% lead (see May 28, 2007 news release)
- DON-055 intersected 33.90 metres true thickness grading 5.11% zinc and 1.37% lead including 6.25 metres grading 11.39% zinc and 3.10% lead (see May 28, 2007 news release)
DON-075 and DON-088 are infill drill holes that were successful in confirming the continuity of zinc-lead mineralized Active Member through the near surface expression of the Don East deposit. The Don East deposit remains open for expansion along strike and to depth.
------------------------------------------------------------------------- TrueDrill From To Thickness Pb Zn Pb+Zn ThicknessHole (m) (m) (m) (%) (%) (%) (m)-------------------------------------------------------------------------DON-075 226.00 236.40 10.40 2.67 6.87 9.54 9.43------------------------------------------------------------------------- Including 232.10 235.50 3.40 4.78 11.40 16.18 3.08-------------------------------------------------------------------------DON-088 65.80 84.40 18.60 1.29 5.31 6.60 14.25------------------------------------------------------------------------- Including 66.70 70.70 4.00 1.93 6.25 8.18 3.06------------------------------------------------------------------------- Including 76.20 84.40 8.20 1.67 7.16 7.83 6.28-------------------------------------------------------------------------
Recent shallow drilling continues to expand the mineral potential of the Don East deposit well beyond the April 2007, NI 43-101 compliant, Inferred mineral resource area that contains 24,710,000 tonnes grading 5.15% zinc and 1.15% lead (see April 2, 2007 news release). The northwesterly bounds of the continuously mineralized zinc-lead Active Member in the Don East deposit has doubled from 900 to 1,800 metres and successfully tested a continuous northeasterly down dip length of 1,100 metres. The target for zinc-lead mineralization in the Don East deposit is conceptualized to contain 35 to 55 million tonnes within an area of approximately 2,000 by 1,000 metres and having an average thickness of 15 metres with base metal grades ranging from 4.8 to more than 12.0% combined lead and zinc. The target requires additional drilling to define the mineral resource and it is unknown if drilling will define a mineral resource. Further definition drilling is required prior to discussing mineral potential as an accepted NI 43-101 mineral resource classification and it is uncertain if additional drilling will result in the target being delineated as a mineral resource.
Other
One drill continues to target the high-grade underground target of the Don deposit, as well as working on expanding the known mineral resources. Further updates on exploration results from the Don deposit drilling will be released after assay results are received from one of the analytical laboratories and verified through Selwyn's rigorous QAQC protocols. The higher-grade target area is modeled to potentially contain 10 to 12 million tonnes of higher-grade mineralization with a range of grades varying from 7.4% to more than 20% combined lead and zinc. The mineral potential of this target is outside of the known NI 43-101 compliant, Indicated mineral resource of 2,360,000 tonnes grading 5.15% zinc and 1.15% lead and Inferred mineral resource of 14,680,000 tonnes grading 4.17% zinc and 1.70% lead (see April 2, 2007 news release). This target is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is unknown if drilling will define a mineral resource. Additional definition drilling is required prior to discussing mineral potential as an accepted NI 43-101 mineral resource classification and it is uncertain if additional drilling will result in the target being delineated as a mineral resource.
Drilling in Don Valley is expected to continue through November. Currently, assay results for 31 drill holes are awaited. Shortly, the Company will provide an update on engineering and environmental baseline work completed in this year's $25M program.
The XY camp is now completely winterized and all field crews have moved operations to the Don camp, where the newly expanded larger airstrip will easily be able to support exploration activities at Selwyn Project as operations transition to winter conditions in the mountains.
Note that all discussion of previous NI-43-101 compliant Indicated and Inferred mineral resources are referenced in the April 2, 2007 news release that discusses the 2007 NI 43-101 compliant mineral resources and the subsequent report written by Independent Qualified Person Cliff Pearson, P.Geo., and Non-Independent Qualified Person John. J. O'Donnell, P.Geo., for the Selwyn Project. Any areas discussed as possessing mineral potential are conceptual and not defined through drilling based upon a detailed geological model. Further definition drilling is required prior to discussing mineral potential as an accepted NI 43-101 mineral resource and it is uncertain if additional drilling will result in the target being delineated as a mineral resource.
The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo. The onsite activities for the Selwyn Project are directed by Exploration Manager, John J. O'Donnell, P.Geo. Both Mr. Dunning and Mr. O'Donnell are Qualified Persons within the meaning of National Instrument 43-101. All assay data has been through internal validation of quality assurance and quality control. Selwyn has established a sampling and assay control program with blind insertion of assay blanks, standards and duplicates for the Selwyn Project; however, it should be noted that there is also a quality control and quality assurance program in place at International Plasma Laboratories ("iPL") and ACME Analytical Laboratories Ltd. ("ACME") that includes blanks, duplicates and standards. At iPL, base metal analyzes are conducted by wet fire assay and at ACME, silver and base metal analyses are conducted by a 17-element, four-acid digestion, ore-grade ICP-AES technique.
Selwyn's focus is the exploration of its properties that make up the Selwyn Project in the Yukon, which hosts large tonnages of zinc-lead mineralization. The known deposits have the potential for the large scale production of zinc and lead, at a time when major new mines are needed to ensure adequate future zinc mine supply.
This press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. Additional drilling is required to confirm the potential of the new discovery areas and expansions of the current resource areas and the extension of the higher grade deep mineralization to depth. Furthermore, there is no assurance that the resources being defined can be developed as an economically attractive mine, and there are many uncertainties associated with permitting and other factors that could delay such development.
SWN up sharply today too....not sure what is impacting that...
Art
Ok thanks...am holding it for the long term...Peru is a good country to invest in... not like the Ukraine ;) DNG is trading today @ $.64C... spinoff of the gold should also do well
Art
MLG Malaga stock dividend of DNG Dynacor Gold is set for Friday....stock dividend of 1 DNG Common for every 9 MLG common....
Are you still holding some Tungsten BobW>? I think both will do well going forward..
Art
3 of my positions today have erased 6months of gains....
somewhat painful...also, don't like the HBM anncmt of addtl zinc even though I own shares as it impacts my beloved SWN potential to ever see the light of day....
GLTA
Art
or...are enthralled with their already positive investment and tell their other 'newsletter' friends....
Giddyup...
saved me from my BRCM and BlueNote Mining debacle today..lol
Art
Nuts...
BWR looking mighty tasty....
Art
10 bagger....I can't find the post, but my nomination is the one where someone posted they were 100% invested in Home builders in late July..... thought that was sadly funny...
Art
Nuts...
Are you selling mainly Jr Miners or core holdings in all sectors... ie large caps etc....?
Thanks..
Art
Thanks,
Looking for weekend golf money...while I hold for SDGL baby!
Art
Man4...I know you are a gambler...pls take a look at CYDF....been acting froggy lately....let me know what you think...
Art
BWR
Uh oh!.....I'm toast.... actually will look to buy more this morning if it dips...
Art
***************************************************************
Breakwater Temporarily Suspends Milling Operations at Its Mochito Mine (Honduras)
10/18/2007
TORONTO, ONTARIO, Oct 18, 2007 (MARKET WIRE via COMTEX News Network) --
Breakwater Resources Ltd. ("Breakwater") (TSX: BWR) announced today that it recently discovered discharge of water from the Soledad tailings impoundment area which has necessitated temporary suspension of milling operations at Mochito. Preliminary investigation has now shown that the discharge is related to the separation of the geotextile liner from the concrete decant structure. While some portion of the contact between the liner and the concrete has been exposed, efforts are now underway to lower the level in the pond to expose the balance and properly ascertain the extent of the separation and the nature of the required repairs.
Based on monitoring conducted to date, there are no indications of any adverse impacts on receiving waters including Lake Yojoa. No structural damages have been located at Soledad and none is thought to exist.
Mining at Mochito continues and will continue as long as is practical.
Alternatives, including the possible re-commissioning of the retired tailings facility, are being explored in an effort to return Mochito to normal mining and milling operations as soon as possible.
Until the investigation has concluded and a recovery plan established, no reliable estimate of when milling will resume can be given.
The Company intends to provide periodic updates as additional information becomes available
holding for the ibd frenzy after the chart draws attention....
sometimes when they run like this they get a frenzied run with momentum players, as you indicated...
GLTA.
Art
.18 and even quieter.... oh my goodness..... been a long wait...
Art
He dies too...after treachery....