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We're getting that overold
bounce in the metals. Now the question is: Is this just an overold bounce, or a resumption of the bull trend?? Too early to tell, most likely. The next few days will tell the tale.
C L
The P M's are
way oversold, we should get at least a short term bounce here before long.
C L
To me this
proves that there is no "collusion" to hold down the precious metals prices. The short term futures market broke out and ran with little resistance.
The equity market didn't understand/believe it and now the proof is in the open. That was a false breakout on the PM's and they couldn't sustain that move, at least without a major correction/consolidation.
I would like to see the XAU get back to the 120 area. At that point you could mortgage the farm, buy the majors and head for the beach. I doubt it will get that low, however.
C L
Gold prices
As I've posted here several times, the move above $620/oz/Au was suspect, as the mining equities didn't participate.
Now we're seeing Au prices coming down hard from just under $700/oz. With an $80 move in gold, there was very little movement in the larger cap miners. For a graphic picture of this, do a Yahoo comparison chart of GLD (gold price) and NEM, AUY, GG, or the XAU index..
Gold (metal) trades in the futures market, which is dominated by very short term players. The equity market (stocks) are longer term and the market is well known for it's forward vision - usually telling you what the sector will look like about 6 months out. The mining stocks are telling us that the factors for higher gold prices aren't being forseen, at this point.
That can change at any time of course, and if crude oil heads higher/ US $ gets weaker, the metals will start moving higher again.
Does all this affect TARA much?? Probably not, as we aren't a producer yet. Mining stocks are valued by reserves (goods in the ground) and by any measure of that - TARA is still way under-valued.
C L
I just talked to Rich
Everything is coming along all right. The filings are slowly moving along and there's plenty of good things coming. Everybody just relax.
C L
You're wasting your time
replying to this jerk. Pretty apparent that he/she is a short, I'm surprised there haven't been more of them posting here. She'll get buried, just like everybody that has tried shorting this stock.
C L
Looks like they
whacked everything today, including the XAU. I see we have acquired a couple of shorts on the board, since I was gone. Not very smart guys.
C L
It would certainly
be unusual if time lines get met in the mining industry. Stuff happens that are not anticipated and that's normal. Weather is often a factor and rains in N Mexico are not unusual. It's still raining in Puerto Vallarta and Cancun, I watch them closely.
I've been in the stock for over 3 years and I'm pleased at the progress being made.
It appears to me that the PM's are in the midst of breaking out and that will attract more buyers to the whole sector, from the big boys to the smallest explorers.
I'm going to be in Mexico the next few weeks, but don't think I'll have time to go thru the Temoris area.
Best to all of you.
C L
Sparta,
If you look at the charts of the big-cap miners, you'll find that most have not done much in the last 3 months:
NEM, PGDP, GFI, and RTP are all lower now.
GG is flat
AUY, ABX, AU, are up - but not much.
Perhaps it's a consolidation phase. It could also be equity buyers are waiting to see if the metals will break higher.
The same situation is going on in petro stocks. Crude oil has just moved from $49.80 to over $60 and there's literally been no movement in the E&P stocks or the oil service stocks.
Markets do erratic things at times, defying all reason. Time fixes that and markets have a way of looking out into the future. Eventually, they get the values right. Patience is the key.
C L
I'd guess you
don't understand what's going on. In a real Au bull market, the mining stocks lead Au, (the metal).
What's happened recently, is that the mining stocks are acting very poorly, as Au slowly heads higher. The metal is trying to pull the mining stocks up - and it's not happening - yet.
Something will change pretty soon. Either the metals prices will start to ease, or the mining stocks will begin to act better and lead the way to higher prices on the bullion.
The recent situation is that on some days Au follows crude oil and some days it's keying off of the U S $. That will likely change also - it'll pick one or the other to follow.
Both the oil market and the currency markets are much larger than the metals markets, so the PM's will be the follower - not the leader. The question is - which market will it follow, if they go in separate directions.
C L
Rich,
You should use this comparison, IMO. It clearly shows that the POG is leading the HUI and XAU. Note how the whole situation changed about Jan first:
http://finance.yahoo.com/charts#chart3:symbol=^xau;range=3m;compare=gld+^hui;indicator=split+volume;...
C L
Large cap miners
not confirming Au price moves. Something strange still going on with this non-confirmation. In a true gold bull market, the stocks should be leading the POG.
C L
finer n frog hair
Just easing up a little every day. Spikey moves are fun to watch on the way up, and stomach churning when they go into a corrective consolidation. I like the mellow better.
C L
I keep an eye
on Puerto Vallarta weather, as I go down there a lot. It's South and some East of TARA stuff. It's been raining off and on there, which is really early. Normal rainy season is later in the year.
C L
$1.27, it's been awhile
since we've seen this level - it was on Jan 9. We topped out at $1.49 on Jan third. Let's rocknroll, along with Gold.
C L
Hmmmmmm,
Not often we see pre-market trades and I like the direction. Au and Ag strong this morning.
C L
Looks like buying interest is perking up, it's starting to gain strength.
C L
Good job, Bobwins
They do get some severe rains down there, too bad about the timing. All part of mining, it never goes as fast as you anticipate.
C L
Considering how they
are beating up on the P M's, we are doing very well today.
C L
Some nice sized
pieces trading today. Average retail trade is about $6600. Many way above that today, so we are attracting some serious sized players.
C L
Great volume on TARA today,
we may be picking up some new buyers from the price surge on the PM's. On breakouts, you often see the majors benefiting first and then mid-tiers, micros etc. If the metals prices continue to escalate, we'll see all the cats and dogs start to run.
C L
I just read
Frank Barbara's latest news letter. He's just turned very bullish on petro and mining sector and he's been very accurate. Now I'm really enthused.
C L
No doubt now,
the bottom is in on crude and the service stocks. At least on a short term basis, Au is following the energy market. I expect the P M's to break out pretty soon.
C L
Creede
How's the rest of your stocks doing??
C L
Heya Creede, thought maybe you sold out and hit the road.
Might see the stock sit here and grind for awhile, the volume is staying up pretty good, tho. One of my pals bought a lot last week. I'm getting bored, I guess.
C L
Hmmmm,
Well I tell ya, if I didn't believe what the CEO was saying, I wouldn't own one share of the stock. The filings never bothered me, I always thought it was more important to tie up these properties and he sure didn't have the money to do both. Everybody to their own.
C L
Just talked to Rich:
He says he's hopeful the auditor and the attorney will be done with the '05 stuff and able to file by end of next week. By my calcs, that's approx 2/9/07..
He says everything is moving along just fine.
C L
Paramount not doing
much either, on very low volume.
C L
I talked to Rich
last week. He's still working on the stuff. We should be hearing something before long. Will it help a lot?? Sure didn't do anything for Paramount.
I think the public just doesn't believe the #'s can be this good. Probably take some production cash flow to get it running again.
C L
Those are mind numbing numbers
How long is going to take before some majors or mid-tier players get interested???
C L
Press Release Source: Tara Gold Resources Corp.
683 g/t Silver Across 8.25 Meters and 296 g/t Silver Across 10.7 Meters Drilled at San Miguel Project, Mexico
Tuesday January 30, 7:00 am ET
CHICAGO, IL--(MARKET WIRE)--Jan 30, 2007 -- Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (Frankfurt:T8N.F - News) is pleased to release the most recently reported assays from its ongoing drill program at the San Miguel Project near Temoris, Chihuahua, Mexico. The following results are four drill holes completed in the San Antonio area and are in fill holes between drill holes SA-01 to SA-09 reported on Dec 14th, 2006. These four drill holes span a distance along strike of about 325 meters.
In August, 2005, Tara Gold Resources signed an agreement with Paramount Gold Mining Corp. giving Paramount the right to earn up to a 70% interest in the project by spending US$2.5 million, delivering 700,000 shares, and making various payments to Tara Gold.
Drill hole SA-10 intersected 8.25 meters (107.30 to 115.55) of 683 g/t silver, 16.70 meters (11.3 to 28.0) of 129.0 g/t silver and 8.4 meters (44.6 to 53.0) of 137 g/t silver with 1.19% combined lead and zinc. This hole hit 51.6 meters that averaged 78 g/t silver with 0.57% combined lead and zinc from 11.3 to 62.9 meters. SA-11 intersected 5.4 meters (35.4 to 40.8) of 217 g/t silver and had a number of shorter intersects down hole such as 0.90 meters (131.5 to 132.4) of 427 g/t silver. SA-12 intersected 34.5 meters (40.8 to 75.3) of 134 g/t silver and had another intersect above that of 0.70 meters (31.5 to 32.2) of 684 g/t silver. SA-13 intersected 10.7 meters (53.0 to 63.7) of 296 g/t silver.
Paramount's Manager of Exploration in Mexico, Bill Reed, said, "These drill results continue to confirm continuity and grades over substantial widths as drill holes SA-11 and SA-13 fill in about 130 meters of the 300 meter gap between step out holes SA-01 and SA-10. The mineralized system appears to be getting stronger as we step out along strike to the north and our drilling to date has been quite shallow with most drill holes between 100 and 150 meters deep. I believe we have tremendous potential to expand this discovery, not only by continuing to drill along strike but by drill testing to depth as well. The Alaska Juneau company was still mining high grade silver and gold at depths of 200 meters at the San Luis mine located on this mineralized trend and old mine records indicated higher grade ore below that depth."
San Antonio Zone Highlights
SA-10 cut 8.25 meters from 107.30 to 115.55 of 683 g/t silver
and 16.70 meters from 11.3 to 28.0 meters of 129.0 g/t silver
and 8.4 meters from 44.6 to 53.0 meters of 137 g/t silver with 1.19%
combined lead and zinc.
SA-11 cut 5.4 meters from 35.4 to 40.8 of 217 g/t silver
and 3.5 meters from 55.5 to 59.0 of 122 g/t silver
and 0.90 meters from 131.5 to 132.4 of 427 g/t silver.
SA-12 cut 34.5 meters from 40.8 to 75.3 averaging 134 g/t silver
and 0.60 meters from 24.2 to 24.8 of 138 g/t silver
and 0.70 meters from 31.5 to 32.2 of 684 g/t silver
SA-13 cut 10.7 meters (53.0 to 63.7) of 296 g/t silver
Drill Hole Locations
SA-10 steps out approximately 60 meters to the south of SA-09 that reported three silver intersects, including 5.7 meters of 152 g/t silver and 6.1 meters of 149 g/t silver (see Dec. 14, 2006 news release).
SA-12 is a step out of approximately 40 meters to the south of SA-01 that reported four silver intersects and averaged 44.85 meters of 133.4 g/t silver (see Dec. 14, 2006 news release).
SA-13 steps out approximately 40 meters to the north of SA-01.
SA-11 is about 85 meters north of SA-13 and under trench ZSA-09 that reported 61.9 meters averaging 79.0 g/t Ag, including 2.1 meters of 625 g/t Ag, and 1.0 meters of 887 g/t Ag with 5.59% lead (see Jan. 3, 2007 news release).
Quality Control Person
Paramount takes detailed photos of the entire core before it is cut to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QAQC), a blank (sterile) sample is submitted every 20th sample. Later, pulps from a number of intervals will be renumbered and pulps from known standards will be inserted between them in numerical order. These will then be submitted for reanalysis. The results will then be compared to the original values reported, and the known values of the inserted standards. Half-core samples have been retained on site for verification and reference purposes.
C.W. (Bill) Reed, B. Sc. Mineralogy, is acting as qualified person, on behalf of Paramount, and has prepared the detail and review with respect to this news release.
Drill From To Width Gold Silver Gold Lead Zinc
hole Meters Meters Meters g/t g/t Equiv % %
SA - 10 11.30 28.00 16.70 0.00 129.00 2.15 0.20 0.27
28.00 44.60 16.60 0.00 27.00 0.46 0.17 0.26
44.60 53.00 8.40 0.00 137.00 2.28 0.54 0.65
53.00 60.50 7.50 0.00 17.00 0.28 0.12 0.23
60.50 62.90 2.40 0.00 62.00 1.04 0.22 0.42
Average 11.30 62.90 51.60 0.00 78.00 1.30 0.24 0.33
92.00 107.30 15.30 0.00 26.00 0.43 0.11 0.28
107.30 115.55 8.25 0.00 683.00 11.38 0.78 0.97
115.55 120.00 4.45 0.00 64.00 1.06 0.22 0.46
SA - 11 0.00 11.00 11.00 0.00 62.00 1.04 0.08 0.21
11.00 24.00 13.00 0.00 26.00 0.43 0.06 0.18
24.00 34.00 10.00 0.00 63.00 1.04 0.03 0.13
35.40 40.80 5.40 0.00 217.00 3.61 0.02 0.14
Average 0.00 40.80 40.80 0.00 69.00 1.15 0.05 0.17
55.50 59.00 3.50 0.00 122.00 2.04 0.09 0.22
116.45 117.50 1.05 0.00 102.00 1.70 0.70 2.01
131.50 132.40 0.90 0.00 427.00 7.12 0.18 0.58
154.20 157.10 2.90 0.00 59.00 0.99 0.26 0.31
SA - 12 24.20 24.80 0.60 0.00 138.00 2.30 1.26 1.51
31.50 32.20 0.70 0.00 684.00 11.40 0.75 0.33
40.80 42.30 1.50 0.00 293.00 4.88 0.12 0.10
45.30 55.90 10.60 0.00 63.00 1.04 0.16 0.15
55.90 72.05 16.15 0.00 201.00 3.35 0.13 0.15
72.05 75.30 3.25 0.00 57.00 0.95 0.04 0.16
Average 40.80 75.30 34.50 0.00 134.00 2.23 0.13 0.15
SA - 13 18.50 19.00 0.50 0.00 338.00 5.63 0.11 0.12
27.70 30.20 2.50 0.00 56.00 0.93 0.05 0.17
53.00 63.70 10.70 0.00 296.00 4.93 0.05 0.10
63.70 69.10 5.40 0.00 29.00 0.49 0.06 0.16
About San Miguel
San Miguel is currently comprised of 16 concessions covering an estimated 8 km strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares mining district, part of the gold-silver belt of the Sierra Madre Occidental.
Until a few months ago, Rich was literally running the company out of his pocket. Now we have a nice cash cushion and that should start ro improve pretty soon.
Most of the action is in Mexico, not Chicago. I expect he'll rent office space, if he sees the need for it. I prefer frugal management that uses the available cash to tie up more properties. Mining amd petro companies are valued by reserves - amount of goods in the ground.
I think the low valuation the market is giving us is going to end pretty soom. Glamis is down there and Palmarejo should be in production pretty soon.
If/when the PM prices continue to escalate, more investors will find us amd that's what will take the stock to new highs.
C L
Good God, it's a monster:
Press Release Source: Paramount Gold Mining Corp.
Paramount Gold Reports NI 43-101 Technical Report; A Preliminary Resource Estimate at Their San Miguel Project, Mexico
Friday January 26, 1:00 am ET
CHIHUAHUA, Mexico--(BUSINESS WIRE)--Paramount Gold Mining Corp. (OTC:PGDP - News; Frankfurt:P6G, WKN:A0HGKQ), is pleased to report the results of an NI 43-101 technical report completed on their San Miguel Project near Temoris, Chihuahua, Mexico. The report was completed by Dana Durgin of Delve Consultants LLC., Sparks, Nevada, USA.
The results of the report are based on only 39 of the 53 shallow drill holes completed to date and have only considered higher grade ore as an inferred resource that could potentially be mined by underground methods. The drill holes used to compile this report are widely spaced and primarily test only the upper 100 meters of the vein system. Paramount is confident that they can continue to increase their resource, both down dip and along strike, as well as between the targets tested initially.
Chris Crupi, President and CFO stated: "I am very pleased with the progress our exploration team has made at San Miguel, Mexico. At the time of this report, our exploration expenditures were roughly US$2,500,000 and we identified 38,000,000 ounces of silver equivalent. This gives us a very low finding cost of less than US$0.07 per ounce of silver. I am very confident that we can continue to add substantial silver resources and eventually reserves, at a very low cost, which will dramatically increase shareholder value."
San Miguel - Report Highlights
Mineralization at San Miguel is controlled primarily by the 8-kilometer long, NNW trending Guazapares fault zone. Within this fault zone, which may be up to 300 meters wide, a series of en echelon, and to a lesser extent sub-parallel, quartz veins have developed. Each of these en echelon veins has a strike length of 250 to 400 meters, and an unknown down-dip extent. Drilling at San Miguel at the date of this report includes 47 drill holes irregularly distributed along 2.7 kilometers of this strike length. Six additional holes are in the La Blanca and Montecristo zones to the north, which are not considered here.
Only 39 of these 47 holes were used in the resource calculation. Of the other eight holes, six are in the southern part of La Union, where there was no significant resource identified. The remaining two holes were considered too isolated to include in the calculations. Drilling has not yet been done on a regularly spaced grid. The abundance and spacing of drilling in any given area is insufficient at this time to produce a rigorous resource calculation.
This resource estimate was done manually, using vertical cross sections drawn perpendicular to the strike of the principal vein in each zone. Mineralization is polymetallic with silver, gold, lead and zinc contributing to the dollar value. The boundaries were defined by using current metal prices (Au @ $600/oz, Ag @ $13/oz, Pb @ $0.65/pound, Zn @ $2.00/pound) to calculate a gold-equivalent dollar value. Boundaries were arbitrarily drawn at a $50 metal value cut-off, which was chosen as a simply defined, consistent method to define these boundaries.
The San Miguel resource is only in the early stages of definition, with the bulk of the resource so far relating to the near surface drill results in the San Antonio and El Carman zones where assay results remain incomplete.
The inferred resource is calculated to be 4.8 million metric tones, grading the US dollar equivalent of 246.6 grams of silver per tonne, or 38 million ounces of silver as shown in the table below:
Table 17.6 San Miguel Inferred Resource Summary
Area # holes Tonnes Ag eq Grade Ag eq Oz
La Union 9 675,000 244.6 g/t 5,307,700
San Jose 10 1,010,000 234.5 g/t 7,615,400
San Luis
Below 300 ft 7 155,400 513.6 g/t 2,566,200
Above 300 ft 1 150,000 430.7 g/t 2,076,900
San Antonio(a) 6 1,510,000 236.8 g/t 11,499,200
El Carmen(a) 6 1,300,000 215.3 g/t 9,000,000
Totals 39 4,800,400 246.6 g/t 38,065,400 Ag eq oz
(a) Drilling at San Antonio and El Carmen are ongoing and assay results are incomplete. These figures will be refined in February 2007 when all assay data are complete.
Resource Potential - Report Highlights
Approximately 1800 meters of trenching has been completed in 34 trenches. Most of these exposed excellent mineralization for sampling and geologic mapping. In addition, grid-based rock sampling over a large area in the San Jose zone indicated the presence of zone, of at least 150 by 250 meters that averaged 150 g/t silver. This suggests that Paramount may be able to develop a mineable near surface silver/gold body that may be amenable to heap leaching, in addition to polymetallic mineralization which may be mineable underground. This is not included in the resource noted above.
Ongoing exploration is expected to add to the resources in areas not considered in this estimation. Few of the drill holes have reached more than 120 meters below the surface. Drilling below these depths is expected to add to mineral resources. In precious metal systems like this, such as at nearby Palmarejo, ore shoots are known to persist to depths of 300 meters or more down dip.
In addition, the resources described in this report remain open along strike to the NNW and SSE, as well as down dip. The ongoing San Miguel drilling program has tested only 2.7 kilometers of the 8-kilometer strike length of the system with rather widely spaced holes. Also, the San Miguel vein system in a parallel fault zone two kilometers to the west has excellent silver/gold mineralization at the surface, but has not yet been drilled. Additional drilling is clearly warranted in these highly prospective areas.
Background Comment
Paramount initiated diamond core drilling in April 2006, using Layne de Mexico as the contractor. As of early December 2006, a total of 7233 meters of HQ (2.5 inch core) drilling had been completed in 53 drill holes. All drill, trench and surface samples were analyzed by ALS Chemex.
Most of the intercepts in both trenching and drilling in the La Union South zone had significantly higher than normal zinc and lead values (in the 1-2% zinc range), including one 13.5 meter interval in hole LU-11 containing 2.38 % lead and 7.07% zinc. At today's metal prices, that material has a gross metal value of nearly $300 per ton, without including precious metals. The relative abundance of lead and zinc leads the author to believe that the erosion level in this portion of the Gauzapares district is deeper than the areas further north, such as San Antonio.
The resources defined in this report, are correctly classified as Inferred Resources due to the level of check arraying, the spacing of drill holes, and the preliminary stage of the deposit modeling and estimation process. The classification of these resources as Inferred indicates that the resources have been estimated on the basis of geological evidence and reasonably assumed, not verified, geological and grade continuity. While it cannot be assumed that all of the Inferred Resources noted here will be upgraded to Indicated or Measured Resources, the author believes that improvements in the drill hole spacing, the deposit modeling and the estimation procedures will lead to conversion of at least a significant portion of these resources to higher classifications.
The complete NI 43-101 report can be viewed or downloaded at Paramount's website (www.paramountgold.com) or www.sedar.com.
Qualified Person
The report was written in compliance with disclosure and reporting requirements set forth in the Canadian Securities Administrators' National Instrument 43-101, Companion Policy 43-101CP, and Form 43-101F1. The resource estimate for the San Miguel deposits were prepared by Dana Durgin in December 2006 of Delve Consultants LLC. Mineral Exploration and Development, Sparks, Nevada, USA ; no mineral reserves were estimated. Mr. Durgin (the author) is a qualified person under Canadian Securities Aministrators' National Instrument 43-101 and a member of the American Institute of Professional Geologists (CPG #10364), a Registered Professional Geologist in Wyoming (PG-2886), and a member of the Geological Society of Nevada. The author has independently investigated the data provided to him by Paramount Gold Mining Corp., to the extent deemed necessary in his professional judgment to be able to reasonably rely on this information.
About San Miguel
San Miguel is currently comprised of 16 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, to acquire a 70% interest in the San Miguel project.
Sooner or later,
the entire mining community is going to understand what's going on in Mexico. When they do finally "get it", I expect the small players that are near/in production to do doubles and triples in a hurry.
My original goal was $1 - now i'm thinking $5 is easily obtainable. When some of our J/V partners (or TARA Minerals) start reporting sales, it's going to get wild...
C L
Most of TARA's
J V partners are going to have to spend a lot of money bringing these projects on-line. We have a piece of many with little or no cash outflow. I think the big $ will go to TARA stock holders.
C L
Nice move today,
we've had a long consolidation and it looks like Au and Ag are close to breaking out. If they do, we should really rocknroll.
C L
Wish it was me.
I've been thinking about going down there and having a look at all the stuff. I like Mehico, especially in the summer.
C L
Hot stuff indeed
To look at the tables properly aligned:
http://www.lateegra.com/news/press.asp?pid=28
C L
There's a divergence going on
in the PM's / mining stocks. Au itself is acting O K, but the mining stocks are acting very poorly.. Last time Au was this high, NEM and the other large caps were much higher. Unless/until the miners start leading the way, this rally isn't going anywhere.
C L
Whoever sold me that stock doesn't have a clue about what's
happening here. That's the market for ya, 2 different opinions.
C L