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Chariot Resources-Annual and Special Meeting
Wednesday September 6, 3:02 pm ET
TORONTO, ONTARIO--(CCNMatthews - Sept. 06, 2006) - Chariot Resources Limited (TSX:CHD - News) announced that it held its annual and special meeting of shareholders today at The Ontario Club at 10:00 a.m. During the meeting, shareholders:
1) fixed the number of directors at six (6);
2) elected Alexander Black, Robert Baxter, Ulrich Rath, David Bell, John Kutkevicius and Edward Thompson as directors;
3) appointed PricewaterhouseCoopers LLP as auditors for the ensuing year; and
4) authorized the directors to set PricewaterhouseCoopers LLP's remuneration.
Chariot also announced that its shareholder rights plan did not receive the requisite level of shareholder approval at the meeting and will terminate in accordance with its terms. Chariot is not aware of any pending take-over or other change of control transaction at this time. In addition, the board of directors is not otherwise constrained in its ability to adopt a similar plan in the future should it be required for the board and shareholders of Chariot to properly evaluate a transaction or pursue alternatives to maximize shareholder value.
Also at the meeting Alexander Black announced that he would be resigning as an officer of Chariot in order to pursue other interests. Mr. Black will remain as a director of Chariot. The board of directors has determined at this time to defer the appointment of a new chairman of the board.
Additional details about Chariot can be viewed at the Company's website, www.chariotresources.com.
CHARIOT RESOURCES LIMITED.
Ulrich (Ulli) Rath
President & CEO
Contact:
Toronto, Canada Office
Chariot Resources Limited
Ulli Rath - President & CEO
Office: +1 (416) 363-4554
Cell Phone: +1 (416) 270-4481
Toronto, Canada Office
Chariot Resources Limited
Alex Black - Director
Office: +1 (416) 363-4554
Cell Phone: +1 (647) 287-4980
--------------------------------------------------------------------------------
Source: Chariot Resources Limited
Cash Minerals to Host Conference Call to Discuss Uranium Drill Results at Lumina
Wednesday September 6, 11:41 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX - News) today announced that it will hold a conference call and webcast to discuss Lumina phase one drill results. Representing Cash Minerals on the call will be Basil Botha, President and Chief Executive Officer of Cash Minerals Ltd. Peter Arendt, Vice President, Engineering and Marketing, Suraj Ahuja, Uranium Consultant and Special Advisor to the Board, Dr. Geordie Mark, IOCG Specialist and Andy Rickaby, Member of the Board of Directors. Doug Eaton of Archer, Cathro & Associates Ltd., head of the geological team, will also be present on the call. The call will begin with brief remarks followed by a question-and-answer period with financial analysts.
------------------------------------------------------------------------
Conference Call DetailsDate: Thursday, September 7, 2006
Time: 11:00 a.m. (Eastern Time)
Dial-In Numbers: (416) 695-6130 (Toronto and International)
(877) 888-3855 (Canada and the U.S.)Cash Minerals Ltd. will also host a live audio webcast. The webcast will
be available via the Cash Minerals website at www.cashminerals.com.
------------------------------------------------------------------------
About Cash Minerals Ltd.
Cash Minerals (www.cashminerals.com) is an emerging publicly listed resource company. Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the option to earn a 75% interest in one or more of the eight uranium prospects in the Yukon. These prospects include four IOCG prospects and an attractive unconformity-related uranium target all located in the Wernecke Mountain region of north-east Yukon. The company is also engaged in exploring and developing coal properties in the Yukon, and is involved in the development of a coal-to-liquids (CTL) project in China, which uses the Fischer-Tropsch process to convert coal into clean-burning diesel fuel.
Should you wish to receive Company news via email, please email shosein@cashminerals.com and specify "CHX News" in the subject line.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact:
Basil Botha
Cash Minerals Ltd.
President & CEO
(604) 633-9942
(604) 633-9972 (FAX)
bbotha@cashminerals.com
Peter Arendt
Cash Minerals Ltd.
Vice President
(604) 633-9942
(604) 633-9972 (FAX)
parendt@cashminerals.com
--------------------------------------------------------------------------------
Source: Cash Minerals Ltd.
Cash Minerals Intersects Over 27 Metres '88 Feet' of 0.20% Uranium Oxide 'U3o8' in Phase One Drilling at the Lumina Property Within a 10 Kilometre Long Uraniferous Structural Corridor
Wednesday September 6, 10:42 am ET
Second High-Grade Uranium Discovery on the Igor Property Currently Being Drill Tested
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 6, 2006 -- Cash Minerals Ltd. (TSX VENTURE:CHX.V - News) announces assays from the first eight drill holes at the Lumina property (Jack Flash showing), located in the Wernecke Mountains of Yukon Territory as part of phase one drilling. An additional 11 holes have been drilled and results are pending. Almost all holes in phase one intersected uranium mineralization close to surface. The mineralization is structurally controlled and possibly unconformity related. It is localized within a structural corridor that is about 3 km wide and 10 km long.
Cash Minerals continues to drill its Igor IOCG property where 2005 drill results intersected over 14 metres of 4.79% copper and 0.215% U3O8 close to surface.
Cash Minerals will hold a conference call and webcast to discuss Lumina phase one drill results. Representing Cash Minerals on the call will be Basil Botha, President and Chief Executive Officer of Cash Minerals Ltd. Peter Arendt, Vice President, Engineering and Marketing, Suraj Ahuja, Uranium Consultant and Special Advisor to the Board, Dr. Geordie Mark, IOCG Specialist and Andy Rickaby, Member of the Board of Directors. Doug Eaton of Archer, Cathro & Associates Ltd., head of the geological team, will also be present on the call. The call will begin with brief remarks followed by a question-and-answer period with financial analysts.
------------------------------------------------------------------------
Conference Call Details
Date: Thursday, September 6, 2006
Time: 11:00 a.m. (Eastern Time)
Dial-In Numbers: (416) 695-6130 (Toronto and International)
(877) 888-3855 (Canada and the U.S.)
Cash Minerals Ltd. will also host a live audio webcast. The webcast will
be available via the Cash Minerals website at http://www.cashminerals.com .
------------------------------------------------------------------------
Significant drill hole intersections from Jack Flash (Lumina property) include the following:
Hole L06-07
-----------
55.01 m of 0.103% U3O8, which includes
- 27.01 m of 0.203% U3O8
- 17.04 m of 0.290% U3O8
- 30 cm of 8.100% U3O8
Hole L06-04
-----------
11.87 m of 0.116 m, which includes
- 2.22 m of 0.533% U3O8
Hole L06-02
-----------
16.44 m of 0.140% U3O8, which includes
- 2.99 m of 0.324% U3O8
- 1.66 m of 0.413% U3O8
Detailed assay results for intersections of uranium mineralization are contained in Table 1. The holes were drilled on two section lines collared from the same drill site, targeted at the Jack Flash showing, a highly radioactive zone that outcrops on the north face of the Lumina cirque. (Refer to the link www.cashminerals.com/s/Uranium.asp?ReportID=103562 for plans and cross sections of the holes drilled at Jack Flash).
In addition to the first eight holes reported from Jack Flash, a further 11 holes have been completed, with 2 from this site and the remainder from the 4 other sites, for a total of approximately 2,600 metres. Four of the holes were lost short of their target depth.
Igor Iron Oxide Copper Gold (IOCG) Property
- 2006 drilling at Igor is being conducted based on the strength of the 2005 results, which revealed high levels of copper and uranium oxide (U3O8) in a large IOCG system. The uranium and copper mineralization at Igor is hosted in a discordant breccia body. Recent work by Dr. Geordie Mark, a consulting geologist from Monash University, Melbourne Australia has confirmed that the mineralization at Igor belongs to the IOCG class of deposits.
- The Igor property yielded very positive drill hole results in 2005. Highlights from that drilling included the following intersections, which were reported on September 7, 2005:
- 14.5 m of 4.79% Cu and 0.215% U3O8
- 12.43 m of 4.79% Cu and 0.192% U3O8
- 4.32 m of 6.62% Cu and 0.400% U3O8
- Fourteen holes totaling approximately 2,000 metres have been drilled at Igor in 2006 and a further four to six holes measuring approximately 1,500 metres are planned before year end. Approximately 227 square km of ground has been staked in and around Igor to cover additional perspective targets, which make up this current system.
"The Company's Board and Management are very excited by the first drill hole results from Jack Flash, which include notably high assays. With positive results from Jack Flash, we have now clearly identified two highly prospective uranium targets, the other being Igor, which yielded a number of high grade copper and uranium drill hole intersections in 2005," said Basil Botha, President and Chief Executive Officer of Cash Minerals Ltd. "What is extremely significant about the results from Jack Flash is that every hole in this first batch of drill results intersected uranium mineralization very close to the surface, which suggests that this may be the tip of the iceberg. These positive results at drill hole depths of no more than 80 metres suggest that we have only scratched the surface, and the Lumina property may host significant uranium mineralization at depth. The next step at Lumina is to develop and implement an expanded drilling program in 2007 to follow the 10 km long fault zone which runs through the Jack Flash Showing to locate other potential areas with major concentrations of uranium mineralization.
Mr. Botha further noted, "It is Management's opinion that the Wernecke Mountain district has the potential for a major discovery of copper and uranium mineralization, as supported by the results achieved to date."
In addition to the extensive drill programs at the Lumina and Igor properties, Cash Minerals' 2006 uranium exploration program also includes the following activities:
Additional 2006 Drilling
- Additional drilling for the remainder of 2006 will target other IOCG prospects in the Wernecke Mountains. These targets have been selected based on favourable geological, mineralogical, geochemical and/or geophysical anomalies. Most of the targets are distinguished by strong magnetic and gravity signatures.
Surface Prospecting
- Extensive surface exploration has been conducted at several of Cash Minerals uranium prospects. This includes geological mapping, prospecting, radiometric sampling, collecting surface samples and identifying radioactive outcrops and boulders. Several new radioactive occurrences have been identified.
- Surface mapping is being conducted by a team led by specialized structural and stratigraphic geologists.
Aerial Surveys
- A full spectra helicopter borne radiometric survey (approx. 2,000 km.) is set to commence shortly, and will be followed by an airborne gravity survey (approx. 3,000 km.) over prospective targets.
Additional Staking
- As reported previously, the Company has continued to expand its land holdings of prospective uranium properties, with the total surface area now covering over 80,000 hectares, which represents over 4,000 claims.
- Cash Minerals and its partner Twenty-Seven Capital now have the largest land position for uranium prospects of all the resource companies operating in the Yukon. (Refer to the link www.cashminerals.com/s/Uranium.asp?ReportID=103562 for map of Cash Minerals' Wernecke district uranium properties).
Table 1: Assay Results from Lumina Drill Holes
-----------------------------------------------
Hole From(m) To(m) Interval(m) %U3O8
-----------------------------------------------
L06-01 65.45 66.45 1.00 0.170
-----------------------------------------------
L06-01 74.52 75.35 0.83 0.232
-----------------------------------------------
L06-02 58.85 75.29 16.44 0.140
-----------------------------------------------
incl. 60.85 63.84 2.99 0.324
-----------------------------------------------
and 73.63 75.29 1.66 0.413
-----------------------------------------------
L06-03 60.05 82.29 22.24 0.048
-----------------------------------------------
incl. 60.05 62.89 2.84 0.106
-----------------------------------------------
L06-04 53.53 65.40 11.87 0.116
-----------------------------------------------
incl. 53.53 55.75 2.22 0.533
-----------------------------------------------
L06-05 56.22 64.37 8.15 0.030
-----------------------------------------------
L06-06 16.68 19.70 3.02 0.015
-----------------------------------------------
L06-06 66.45 68.45 2.00 0.078
-----------------------------------------------
L06-07 41.76 96.77 55.01 0.103
-----------------------------------------------
incl. 57.09 84.10 27.01 0.203
-----------------------------------------------
incl. 61.09 78.13 17.04 0.290
-----------------------------------------------
incl. 70.03 70.33 0.30 8.100
-----------------------------------------------
L06-08 50.90 59.58 8.68 0.029
-----------------------------------------------
L06-08 68.61 89.92 21.31 0.035
-----------------------------------------------
incl. 71.62 74.12 2.50 0.111
-----------------------------------------------
Holes L06-01 to 06 were drilled north and gradually steepened from -41.5 degrees to -80 degrees. Holes L06-07 and 08 were rotated to azimuth 330 degrees and were drilled at -45 degrees and -60 degrees respectively. The holes pierced the favourable contact at points ranging from 5 to 31 m apart. Hole L06-07 was the furthest west of the holes.
All eight of the holes intersected uraniferous intervals within variably brecciated and altered siltstone dominant strata. The most radioactive material was localized at what appears to be a redox interface, where uranium mineralization within hydrothermal water has concentrated in fracture zones. Strongly brecciated strata that underlie the mineralization are anomalously bleached and are often hematite bearing, while the overlying, less brecciated strata are relatively unaltered. The contact between these two mainly siltstone units strikes about 120 degrees and dips moderately to the south.
All core analyses for the Lumina property were conducted at SRC Geoanalytical Laboratories in Saskatoon, Saskatchewan. Uranium values were routinely obtained by total digestion ICP analyses with confirmation by assays for all samples exceeding 1000 ppm. Reproducibility is excellent within and between techniques. Measured radioactivity correlates well with analytical results.
Exploration in the Wernecke Mountains is being managed by Archer, Cathro & Associates (1981) Limited under supervision of W.A. Wengzynowski who is the qualified person as specified in National Instrument 43-101 for technical disclosure in this news release. The geological team is headed up by Doug Eaton from Archer Cathro, who has over thirty years of experience in the Yukon. The team also benefits from the advice of Suraj Ahuja, a recognized uranium geologist with extensive experience in Canadian unconformity-related deposits, and Dr. Geordie Mark, an IOCG specialist.
"The strength of our geological team is the key factor in the success of our 2006 uranium exploration program," continued Mr. Botha. "We are in the process of further expanding the team in order to plan for the next phase of our uranium exploration in the Yukon. Our geologists will integrate the extensive data that has been collected to develop preliminary geological models and to plan for the 2007 drilling program. I am extremely confident that the combination of most prospective land holdings, solid technical data and geological expertise will result in the identification of excellent drill targets which are critical to further determining the extent of uranium mineralization in our properties. Starting in 2007, we plan to utilize up to five drill rigs in the Werneckes."
About Cash Minerals Ltd.
Cash Minerals (www.cashminerals.com) is an emerging publicly listed resource company. Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the option to earn a 75% interest in one or more of several uranium prospects located in various parts of the Yukon. These prospects include numerous IOCG prospects and structurally-controlled and unconformity-related uranium targets. The company is also engaged in exploring and developing coal properties in the Yukon, and is involved in the development of a coal-to-liquids (CTL) project in China, which uses the Fischer-Tropsch process to convert coal into clean-burning diesel fuel.
Should you wish to receive Company news via email, please email shosein@cashminerals.com and specify "CHX News" in the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Cash Minerals Ltd.
Basil Botha
President & CEO
(604) 633-9942
(604) 633-9972 (FAX)
bbotha@cashminerals.com
Cash Minerals Ltd.
Peter Arendt
Vice President
(604) 633-9942
(604) 633-9972 (FAX)
parendt@cashminerals.com
TC,
I wish that I knew of this board before I retired. There are a lot of helpful hints. And by the way, I will still be using them now, as well.
sumisu
U.S. Oil Reserves Could Grow by 50 Pct.
Tuesday September 5, 1:30 pm ET
By Brad Foss, AP Business Writer
Successful Test Well in Gulf of Mexico Means U.S. Oil Reserves Could Grow More Than 50 Percent
WASHINGTON (AP) -- Results from a deep-water test well in the Gulf of Mexico suggest a new pool of oil and gas that could boost U.S. reserves by as much as 50 percent.
Chevron Corp. on Tuesday estimated the 300-square-mile region where its test well sits could hold between 3 billion and 15 billion barrels of oil and natural gas liquids. Analysts are calling it the most significant domestic discovery since Alaska's Prudhoe Bay more than a generation ago.
It will take many years and tens of billions of dollars to bring the oil to market, but the discovery carries particular importance for the entire industry at a time when Western oil and gas companies are finding fewer opportunities in politically unstable parts of the world, including the Middle East, Africa and Russia.
The proximity of the Gulf of Mexico to the world's largest oil consuming nation makes it especially attractive. And it could bring pressure on Florida and other states to relax limits they have placed on drilling in their offshore waters for environmental and tourism reasons.
The country's reserves currently are more than 29 billion barrels of oil equivalent, according to the U.S. Energy Department. But the U.S. imports more than half of its oil from countries with much larger reserves, such as Saudi Arabia whose reserves are nearly 10 times those of the United States.
Chevron's well, called "Jack 2," was drilled about 5.3 miles below sea level. Chevron has a 50 percent stake in the field, while partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma City own 25 percent each.
During the test, the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day, but analysts and executives believe the payoff could be much larger than that.
The financial implications of the prospect are most significant for independent oil and gas producer Devon, which is the smallest of the three partners. Devon's shares soared more than 10 percent on the New York Stock Exchange.
"This could not have happened in a better place," Devon CEO Larry Nichols said in a conference call with analysts.
The successful test well does not mean a huge supply of cheap oil will hit the market anytime soon.
Oppenheimer & Co. analyst Fadel Gheit estimated that the first production for the Chevron-led partnership might not come on line until after 2010, depending on how many more test wells the companies drill. That said, many companies, including BP PLC, Exxon Mobil Corp. and Anadarko Petroleum Corp., stand to benefit from their own projects in the so-called lower tertiary, a rock formation that is 24 million to 65 million years old.
"They may be the first ones to hit the jackpot, but if the current thinking is correct, this is only a beginning," Gheit said.
The well was drilled in the Walker Ridge area of the Gulf, about 270 miles southwest of New Orleans and 175 miles off the coast. It followed up a discovery made by Chevron in 2004.
San Ramon, Calif.-based Chevron said the well set a variety of records, including the deepest well successfully tested in the Gulf of Mexico. Chevron said the well was drilled more than 20,000 feet under the sea floor below 7,000 feet of water for a total depth of 28,175 feet.
Shares of Devon rose $6.24, or 9.7 percent, to $70.39 in midday trading on the New York Stock Exchange, above the top end of the stock's 52-week range of $48.94 to $70.35. Shares of Chevron rose $2.04, or 3.2 percent, to $66.87.
Silver Wheaton Set to Benefit from Goldcorp and Glamis Merger
By Craig Wong
01 Sep 2006 at 01:57 PM EDT
VANCOUVER (CP) -- Silver Wheaton Corp. [NYSE:SLW; TSX:SLW] could be a big winner if Goldcorp Inc. [NYSE:GG; TSX:G] is successful in its bid to merge with Glamis Gold Ltd. [TSX:GLG; NYSE:GLG], which could potentially add millions of ounces of silver production from its Penasquito project in Mexico when it starts up, analysts say.
Salman Partners analyst Haytham Hodaly suggested Friday that once Penasquito comes into full production in 2009 it could produce more than 20 million ounces of silver per year.
''A portion of that, if structured properly, could go to Silver Wheaton under an agreed upon silver purchase agreement,'' Hodaly said.
Silver Wheaton, in which Goldcorp holds a controlling interest, holds the rights to buy all of the silver produced by Goldcorp's Luismin mines in Mexico.
Goldcorp and Glamis announced a plan to merge earlier this week in an all-stock deal that would see the creation of a new senior gold miner in Canada.
In addition to 15.7 million proven and probably ounces of gold reserves, Glamis would also bring with it more than 617 million ounces of proven and probably silver reserves including 575 million at its undeveloped Penasquito property where it hopes to achieve initial mine start-up in late 2008 and full production by late 2009.
UBS analyst Craig West increased his price target on the Silver Wheaton from $12.50 to $13.50 with a rating of ''Buy 2'' on Friday.
Silver Wheaton shares were up 34 cents at C$12.42 on the Toronto Stock Exchange, while the stock gained 28 cents to trade for $11.25 on the New York Stock Exchange.
''We believe this transaction would provide Silver Wheaton with increased opportunity for new silver contracts, given its existing relationship with Goldcorp,'' West wrote in a note to clients.
''While Penasquito is large, given its early stage, we believe a contract could come at a discount so Silver Wheaton's other contracts, which are with existing mines.
West also said that in addition to Penasquito, Glamis's Marlin mine in Guatemala is ramping up and could produce over 3.5 million ounces of silver per year.
In its outlook, Silver Wheaton said it expects to have annual silver sales of about 15 million ounces this year, increasing to 20 million ounces by 2009.
Silver Wheaton, which was spun off from Wheaton River Minerals in 2004 as a pure play silver company, has said it is actively looking to add new long term silver purchase contracts and or silver exploration, development and production assets.
In addition to Luismin, Silver Wheaton also holds the rights to buy the silver from Lundin Mining's Zinkgruvan mine in Sweden and 4.75 million ounces of silver annually for 20 years from Glencore International AG and its Yauliyacu mine in central Peru.
© The Canadian Press 2006
Peak Oil Passnotes: Lull What Lull?
By Edward Tapamor
01 Sep 2006 at 01:38 PM EDT
PARIS (ResourceInvestor.com) -- For the last two years we have seen prices hit their highs for the year around now. Of course there are a variety of reasons. Last year being a special one caused by the double hurricane hit, with Katrina's devastation of New Orleans having been commemorated this week.
It was Katrina that took 2005's nervous, edgy market over the $70 threshold for the first time ever, to $70.85 in fact. This year we have seen a relatively benign hurricane season - so far at least - yet just 12 months on from the ravages of the perfect storm we are surprised when oil falls back below $70, even if it is just for a day here or there. It should be another lesson in how far the price of oil has come.
Because sometimes it is too easy to look at the latest moves, you can lose sight of the bigger picture when you follow the minutiae so closely. After all the Brent crude marker, as one example, has lost over 10% of its value since its August 7th records of $78.64. But as we have gone over many times, this is not just due to the general factors that are so often trumpeted. Yes the Lebanese conflict has calmed, relatively at least. Yes it does not appear that the USA wants to attack Iran, or even knows where to attack if it did want to.
We are also all guilty - this commentator included - of placing an enormous amount of weight on weekly statistics from the U.S., which at their very best, are only estimations of what is actually happening. It becomes a self-fulfilling prophecy. If you give these statistics so much weight, then they will become more important, which means you have to give them weight. And so on.
Twice this year already, in February and June, we have seen the market pull back after surging ahead. At the start of the year the flood of money coming back into the market - after having been claimed as profit to make enormous bonuses for a few thousand people around the world - propelled crude back into a more realistic price range around the mid-$60 range. Then the price fell back again.
In April once again we saw a new set of highs, pushed higher by intense fear and uncertainty over Iran. The Nymex broke $75 for the first time and we were wondering how long it would be before the next resistance level, $80-$84 would be breached. It was not. Instead by June the Nymex spot market was sitting around $68. Almost exactly where it is now, just ever so slightly lower.
On each occasion those movements were not so much propelled by the idea that the original fears - Iran, Iraq, Nigeria et al - that created them had gone, but by a desire to take that profit back. Greed. All the basic factors that propelled the market remained in place. So here were are at the start of September, one year on from the then-record prices without the huge momentum we had at the start of August.
In many ways what we are seeing is the setting of an intermediary floor price, let us call it $70. The price we hit in Katrina's wake. We have already written about the fact that by Christmas time, the desire by traders and financial institutions to screw every last cent out of the price gains over 2006, may pull oil back down to as low as $61. To set the real floor price just as the last two years have seen. But right now we are seeing one of those lulls, the third of the year, which can be illustrative of the ranges in which traders - including Resource Investor's readers - can make money.
We are for example, now ending the American driving season - except for you people without kids who want to go on holiday on the cheap, yes you - and the focus of attention is going to start to turn to heating oils once again. Weather forecasts about cold snaps, or warm winters, worries over refining capacity, what sort of crude can safely be used in refineries. The basic kind of stuff. So we are in a slight quiet time. So it seems anyway.
But remember Rita? Remember cold winters? Remember Iran? Remember the Movement for the Emancipation of the Niger Delta? Remember demand? Still sitting there, just like last year. A $70 floor price is a lull? People have short memories.
Mexican Land And Canadian Gold
John Dobosz, 09.02.06, 3:00 PM ET
One of the popular contributors to discussions and pied pipers at online investing community ValueForum is 52-year-old Andrew Swann, better known among his investing buddies by his handle, “swannmex.” A former petroleum landman in East Texas, Swann and his artist wife of 25 years live in the small town of El Cortijo, Mexico, about eight miles outside of San Miguel de Allende in the state of Guanajuato. They have lived in Mexico for the past 18 years and recently bought some land in the lake district of Chile, where they hope to begin spending more time. Swann is an avid clay court tennis player and also loves to fish.
Swann graduated from the University of New Mexico in Albuquerque in 1976, majoring in history with a minor in economics, and says he’s remained a student of history and economics all of his adult life. Since moving to Mexico, he’s been involved in property development, but five years ago he became a full-time investor. “The most important thing in my investing has been the world of information available to private investors on the Internet,” he says. “ValueForum and similar sites that specialize in particular sectors offer the individual investor incredible amounts of information; all you have to have is the desire to do the due diligence. The tools and information are there.”
We recently exchanged e-mails with Swann and asked him about his approach to investing and his views on current opportunities in the market.
Forbes: Describe your approach to investing. Do you rely more on fundamental or technical analysis? Are you a “top-down” or “bottom-up” guy?
Swann: I am a very focused investor and on Jan. 1, 2003, moved my portfolio 100% into hard assets, 50% oil and gas and 50% precious metals. I rely 99% on fundamental analysis. I find companies in the sector I am interested in and look for value with a good growth profile and just buy and hold, for the most part.
The most important thing is identifying what sector is in a long-term secular bull market. At the end of 2000 it became very evident that "paper assets" had peaked and that after a 20-year bear market, "hard assets" were very unloved and very, very undervalued. A big key for me was figuring out a way to get leverage to the rising hard-asset prices, but leverage with a long fuse. After a lot of research, I started accumulating warrants on junior Canadian mining stocks in 2001. That has been a very rewarding investment.
Right now there are several Canadian mining stocks with great growth profiles that are incredible values. My top holding is Yamana Gold. I have been a shareholder since the company was created in 2003. When Chapada, their giant copper/gold mine in Brazil, comes on line this fall, their cash flow will kick into high gear. By 2008 they should be producing over 1 million ounces of gold with a negative cash cost, using copper as a credit. I think the stock price could easily double in the next 12 months even if gold goes nowhere.
Stocks seem to have formed a nice double bottom in June and July, and the rally since July 17 seems to have some legs. Are you having success in this new uptrend with the same kinds of stocks you were investing in up until the early-May meltdown, or are you finding that there is a new crop of market leaders?
In the gold sector, I have just stuck with the stocks I see having good value. After the dust settled, I started accumulating more shares among the beaten-down junior Canadian gold stocks. My current favorites, in addition to Yamana, for investors with patience are Jaguar Mining and Glencairn. Both of these stocks have great production growth profiles and good exploration potential. Glencairn has a new CEO in Peter Tagliamonte, and he has a good reputation and excellent track record. The key with gold stocks is patience and the ability to withstand the volatility. Not many investors have that combination.
Metals--both precious and industrial--bounced in June and mostly held their gains since then, although steel seems to have been having a tough time all summer. What’s your current outlook in the metals arena--both the commodities and the companies that mine and refine them?
I believe all hard assets are still in long-term secular bull markets. I believe Don Coxe's "triple waterfall theory." These commodities that were in 20-year secular bear markets have a long way to go in their new secular bull markets. Over time the U.S. dollar will be in a controlled devaluation, and the flip side of that is that over time hard asset prices--gold, oil and gas--will all go much higher in U.S. dollar terms. This will all play out over several years. Short term, anything can happen, as we saw in May. The corrections can be very violent, but with patience and an understanding of the big trend, there is a lot of money to be made.
Inflation--and investors’ fears of its acceleration--seemed to be a powerful driver of hard asset plays in the early part of this year, but inflationary concerns seem to have abated and taken a backseat to fears over a slowing economy. Do you think this lull in the inflation “fear factor” spells opportunity in the inflation hedges?
I am a student of the Austrian school of economics. They believe inflation is a monetary phenomenon. Greenspan left interest rates too low for too long, and the excess liquidity creates rolling bubbles. First the Nasdaq, then housing. Now that housing is rolling over, my guess is that the next real bubble will be precious metals as people look for ways to protect their paper gains from all the years of excess liquidity creation. The best opportunities are in gold. Country risk is always a factor, and all my new buying is in companies in Canada that have growing gold reserves.
I am currently adding to Northern Star Mining, San Gold and Metanor Resources, along with Century Mining. All are just at the sweet spot in the cycle and coming into production at just the right time. Another more speculative play I like a lot is Gold-Ore Resources,which has an operating gold mine in Sweden with an expanding resource. When buying junior mining stocks, it always makes sense to buy a basket of at least five to spread the risk.
If you have even a passing belief in the presence of stock market cycles, you have to be a little worried right now. The midterm election year is notoriously bad, and so is the month of September. Add to that geopolitical tension and an inverted yield curve. Do you always try to stay fully invested in something, or are there times you prefer to load up on cash? Is now one of those times?
It is almost impossible to time the markets. My idea has been--and is--just to identify what is in a secular bull market and do tons and tons of research and buy and hold. I stay 95% invested at all times: 50% in oil and gas. This money is in Canadian royalty trusts like Penn West, ARC Energy Trust and Peyto. These provide monthly income tied to oil and gas production in Canada. They give me the security of hard assets in Canada and protection from inflation.
About 75% of oil production in the world is in politically unstable countries. Long-life reserves in Canada are just a no-brainer at this point if you have a long-term outlook. Having that steady income form quality trusts allows me to sleep well while generating gains from the more speculative world of junior gold stocks.
A lot of sound and fury is coming from the housing sector. Any thoughts on how the slowdown in residential real estate will ultimately unfold, and how do you profit from that view as an investor in stocks?
I believe that all bubbles eventually pop, and the "soft landing" is next to impossible to achieve, especially with so much debt in the system. The Fed is truly between a rock and a hard place. In the end, they will opt for inflation and hope it can be managed, just like they hope the dollar's decline and gold's rise can be managed. It all works out OK if it is kept orderly.
My guess is that the next move by the Fed will be a rate cut late this year or early in 2007. At that point, the dollar will weaken further, and gold will get another boost. The gold stocks I am accumulating now will all be in a good position to benefit as the gold price rises in 2007. All this plays out over the next two to three years. I have patience.
Any other areas of the market that you regard as especially rife with opportunity or peril?
I would stay away from any long-dated bonds. I think short rates will come down as the Fed does all it can to keep the debt bubble from deflating. However, long rates are very likely to go up as the inflation created by all the excess liquidity becomes more apparent.
Thanks.
Send comments and questions to newsletters@forbes.com.
http://www.forbes.com/2006/09/01/gold-miners-valueforum-in_jd_0902adviserqa_inl.html?partner=yahooti...
The Peak Oil Crisis: Labor Day 2006
By Tom Whipple
Thursday, 31 August 2006
What a difference a month makes. Just four weeks ago Hezbollah and the Israelis were engaged in the heaviest fighting the world has seen since the US overran Iraq.
When the fighting started, oil prices jumped on concerns that oil exports might be affected. In July there were fears US motorists might draw down the country’s gasoline reserves during the summer driving binge. Soon thereafter, BP noticed that some of its Prudhoe oil pipelines were rusting through, threatening an important share of the US’s West Coast oil supply. Finally, the hurricane season was about to begin.
Here we are at the end of August and everything looks downright serene. Israel and Hezbollah appear happy the fighting is over. A large contingent of troops from the major European powers is on the way to watch over Southern Lebanon. The US driving season has only a weekend to go and gasoline stocks look healthy. It looks like we will get through the first months of hurricane season without damage to oil production.
With all this good news, or more precisely lack of bad news, oil prices tumbled to circa $70 per barrel and nationwide gasoline prices dropped by 15 cents a gallon. As the crunch point in the nuclear enrichment confrontation with Iran still seems to be some weeks away, many US financial analysts are telling their clients oil will be $60 or maybe even $50 a barrel later this year – provided those pesky hurricanes will stay away from the oil fields.
The US mid-term elections are now two months away. Unless a really big hurricane tears up oil production in the next two months or something in the Middle East goes sour really fast, high gas prices and the looming prospect of oil depletion are unlikely to have much of an impact at the polls.
Thus far the government’s response to $3 gasoline has consisted of drilling in “off limits” areas and touting ethanol. The latest “energy bill” to pass the Senate was hyped as “enhancing the energy independence and security of the United States.” The backers raised the possibility of finding 1.2 billion barrels of new oil off the Florida coast.
What the supporters don’t mention of course is that the US’s current oil consumption is now approaching 8 billion barrels a year so the prospective find is only about 110 days worth. Also unmentioned is the worldwide shortage of deepwater drilling rigs to exploit this impressive-sounding bonanza and the opinions of knowledgeable observers that while there may be some natural gas off the coast of Florida, the prospects for finding the 1.2 billion barrels may not be that good.
What we have here is not a real effort to deal with looming energy problems, but a political chimera designed to answer voter concerns about $3 gasoline. Usually, bills such as this would be one of many harmless exercises in political deception. These “brochure bills” allow legislators to assure voters that they have already dealt with the issue and the situation will be getting better shortly. After all, who can argue with a billion barrels of new “American” oil?
The danger is that by pretending to do something rather than leveling with the voters and taking decisive, controversial, and perhaps unpleasant action, the Congress is making the coming hardships much worse. As anyone who studies peak oil soon learns, it will take decades of “adjustments” to the world’s economy and lifestyles to compensate for all that will come with declining oil production.
If there is some sort of upheaval in the November congressional elections, it currently appears that it will have something to do with the situation in Iraq rather than the price or availability of gasoline. But what about the 2008 Presidential election?
In the last year we have learned it is going to take more that $70 or $80 a barrel oil to get the undivided attention of the Congress and the majority of the American people. What it will take to get this attention is hard to say. Perhaps $5 a US gallon will do it; perhaps $10. A major economic downturn coupled with unambiguous statements from the International Energy Agency, the US Department of Energy and the major world governments that indeed worldwide oil production was on the decline and there were no prospects it would ever increase again should be enough.
The most prominent calculators of the coming peak —not wishful thinkers— are coming around to 2010 plus or minus a couple of years as the year of actual peaking. There could, of course, be foreshocks such as marked reductions in world oil exports that could have serious economic consequences. In fact, some people think we are seeing these foreshocks or perhaps even the actual peak right now.
All this suggests that by 2008 there is a very good chance the reality of peak oil will be widely recognized and will be causing such economic hardships that politicians can neither ignore nor pretend a cure with yet another meaningless “energy bill.” If this is indeed the case, by 2008 ways to mitigate the effects of declining oil supplies could become the central issue of elections in America and around the world for many decades to come.
Goldcorp-Glamis Supermerger Shakes up Old Boy Club
By Karl Heilman
31 Aug 2006 at 12:15 PM EDT
St. LOUIS (ResourceInvestor.com) -- Goldcorp [NYSE:GG; TSX:G] and Glamis [NYSE:GLG; TSX:GLG] today announced an agreement to merge that would create a new $21.3 billion gold company, ranked third in the world by market capitalization behind $28.9 billion Barrick [NYSE:ABX; TSX:ABX] and $23 billion Newmont [NYSE:NEM].
Commenting on a deal related conference call earlier today, Goldcorp CEO, Ian Telfer, said that both companies were approached by an investment banker who showed that the value of Glamis was being created faster than Goldcorp and the markets realized. Resource Investor illustrates this in its tabulation of the deal which shows how Glamis' resource base was dramatically under-priced even though its production was overpriced.
"We believe this will be the world's premier gold mining company…we are a senior in all aspects of that word going forward," Telfer said.
Glamis shareholders are slated to receive 1.69 shares of Goldcorp for each Glamis share held, with a per share value of $51.49 and a Glamis company value of $8.6 billion. The price represents a 30% premium from the August 30 close of Glamis on the in New York.
Telfer said that it was knowledge of Glamis' Penesquito asset - which was acquired with Western Silver - the quality of Glamis personnel, and relative stock valuations by analysts and the markets that led to the premium.
The deal will create 290 million new shares of Goldcorp stock.Glamis shareholders will own 39.8% of the new company while current Goldcorp shareholders will own a 60.2% stake.
"We're putting together a very strong, committed management team, for gold investors this of course represents the best of both worlds," Glamis President and CEO, Kevin McAruthur, said during the call.
McArthur is designated to become the CEO of the new company and Telfer will become the chairman.
The combined company, which will be retain the Goldcorp brand, will have reported proven and probable reserves of 41.1 million gold ounces, and insert silver ounces and other metals.
"This transaction merges the talents of the two top performing gold mining companies over the past five years. We will leverage this talent to deliver on a very exciting building and growth program for the company's long-term future. This transaction provides tremendous value to Glamis shareholders," McAruthur said in a company press release.
Goldcorp, North America's third largest gold producer and one of the world's lowest cost producers, has operations in Canada, the United States, Mexico, Argentina, Brazil and Australia. The company also owns a controlling stake in Silver Wheaton [TSX:SLW].
The primary rationale behind Goldcorp's appetite for Glamis is the Penasquito project located in Zacatecas, Mexico.
Glamis completed its merger with Western Silver in May 2006, giving the company control over the Penasquito site. The area is one of the largest undeveloped metals deposits throughout the Americas and consists of two deposits: Penasco and Chile Colorado.
According to company reports, the sites have the necessary transport infrastructure access, along with availability of skilled labor and smelters.
There are roughly 5 million stated ounces of gold reserves and 300 million ounces of silver at the Penasquito site. The development of the Penasco project catapulted Western Silver from an interesting prospect to an essential portfolio stock, and it was finally rewarded with the Glamis Gold purchase.
It's suggested that the two companies decided to act in June, when Glamis doubled its proven and probable gold reserves from 4.93 million ounces, to 9.98 million ounces, increased its silver reserves 86% to 575 million ounces and doubled its lead and zinc reserves to 1.67 million tonnes and 3.62 million tones. The silver reserves which Glamis holds are greater than any other North American producer's.
"The thing that's changed since Glamis and Goldcorp bumped into each other a year and a half ago has been Penasquito and the Reserves they've found there. I saw a statistic that said if you take all the metal in Penasquito and turn it into the gold equivalent there are 25 million proven and probable gold reserves," Telfer said.
Telfer said that the company prefers "to look for gold assets," and that precious metals to base metals focus 80:20; while overall gold is 70:30 to base metals.
"We believe the new Goldcorp will be the first choice for investors. The competition will be unmatched in its combination of producing long-term mining assets, development opportunities and exploration upsides...and not to mention the low-cash cost...that the company will have going for them."
In late-afternoon trading, Glamis shares were trading up 19% or $7.36 to $46.22 while Goldcorp shares were trading down 9% or $2.76 to $27.71 on the NYSE.
Goldcorp-Glamis Supermerger Shakes up Old Boy Club
By Karl Heilman
31 Aug 2006 at 12:15 PM EDT
St. LOUIS (ResourceInvestor.com) -- Goldcorp [NYSE:GG; TSX:G] and Glamis [NYSE:GLG; TSX:GLG] today announced an agreement to merge that would create a new $21.3 billion gold company, ranked third in the world by market capitalization behind $28.9 billion Barrick [NYSE:ABX; TSX:ABX] and $23 billion Newmont [NYSE:NEM].
Commenting on a deal related conference call earlier today, Goldcorp CEO, Ian Telfer, said that both companies were approached by an investment banker who showed that the value of Glamis was being created faster than Goldcorp and the markets realized. Resource Investor illustrates this in its tabulation of the deal which shows how Glamis' resource base was dramatically under-priced even though its production was overpriced.
"We believe this will be the world's premier gold mining company…we are a senior in all aspects of that word going forward," Telfer said.
Glamis shareholders are slated to receive 1.69 shares of Goldcorp for each Glamis share held, with a per share value of $51.49 and a Glamis company value of $8.6 billion. The price represents a 30% premium from the August 30 close of Glamis on the in New York.
Telfer said that it was knowledge of Glamis' Penesquito asset - which was acquired with Western Silver - the quality of Glamis personnel, and relative stock valuations by analysts and the markets that led to the premium.
The deal will create 290 million new shares of Goldcorp stock.Glamis shareholders will own 39.8% of the new company while current Goldcorp shareholders will own a 60.2% stake.
"We're putting together a very strong, committed management team, for gold investors this of course represents the best of both worlds," Glamis President and CEO, Kevin McAruthur, said during the call.
McArthur is designated to become the CEO of the new company and Telfer will become the chairman.
The combined company, which will be retain the Goldcorp brand, will have reported proven and probable reserves of 41.1 million gold ounces, and insert silver ounces and other metals.
"This transaction merges the talents of the two top performing gold mining companies over the past five years. We will leverage this talent to deliver on a very exciting building and growth program for the company's long-term future. This transaction provides tremendous value to Glamis shareholders," McAruthur said in a company press release.
Goldcorp, North America's third largest gold producer and one of the world's lowest cost producers, has operations in Canada, the United States, Mexico, Argentina, Brazil and Australia. The company also owns a controlling stake in Silver Wheaton [TSX:SLW].
The primary rationale behind Goldcorp's appetite for Glamis is the Penasquito project located in Zacatecas, Mexico.
Glamis completed its merger with Western Silver in May 2006, giving the company control over the Penasquito site. The area is one of the largest undeveloped metals deposits throughout the Americas and consists of two deposits: Penasco and Chile Colorado.
According to company reports, the sites have the necessary transport infrastructure access, along with availability of skilled labor and smelters.
There are roughly 5 million stated ounces of gold reserves and 300 million ounces of silver at the Penasquito site. The development of the Penasco project catapulted Western Silver from an interesting prospect to an essential portfolio stock, and it was finally rewarded with the Glamis Gold purchase.
It's suggested that the two companies decided to act in June, when Glamis doubled its proven and probable gold reserves from 4.93 million ounces, to 9.98 million ounces, increased its silver reserves 86% to 575 million ounces and doubled its lead and zinc reserves to 1.67 million tonnes and 3.62 million tones. The silver reserves which Glamis holds are greater than any other North American producer's.
"The thing that's changed since Glamis and Goldcorp bumped into each other a year and a half ago has been Penasquito and the Reserves they've found there. I saw a statistic that said if you take all the metal in Penasquito and turn it into the gold equivalent there are 25 million proven and probable gold reserves," Telfer said.
Telfer said that the company prefers "to look for gold assets," and that precious metals to base metals focus 80:20; while overall gold is 70:30 to base metals.
"We believe the new Goldcorp will be the first choice for investors. The competition will be unmatched in its combination of producing long-term mining assets, development opportunities and exploration upsides...and not to mention the low-cash cost...that the company will have going for them."
In late-afternoon trading, Glamis shares were trading up 19% or $7.36 to $46.22 while Goldcorp shares were trading down 9% or $2.76 to $27.71 on the NYSE.
Goldcorp-Glamis Supermerger Shakes up Old Boy Club
By Karl Heilman
31 Aug 2006 at 12:15 PM EDT
St. LOUIS (ResourceInvestor.com) -- Goldcorp [NYSE:GG; TSX:G] and Glamis [NYSE:GLG; TSX:GLG] today announced an agreement to merge that would create a new $21.3 billion gold company, ranked third in the world by market capitalization behind $28.9 billion Barrick [NYSE:ABX; TSX:ABX] and $23 billion Newmont [NYSE:NEM].
Commenting on a deal related conference call earlier today, Goldcorp CEO, Ian Telfer, said that both companies were approached by an investment banker who showed that the value of Glamis was being created faster than Goldcorp and the markets realized. Resource Investor illustrates this in its tabulation of the deal which shows how Glamis' resource base was dramatically under-priced even though its production was overpriced.
"We believe this will be the world's premier gold mining company…we are a senior in all aspects of that word going forward," Telfer said.
Glamis shareholders are slated to receive 1.69 shares of Goldcorp for each Glamis share held, with a per share value of $51.49 and a Glamis company value of $8.6 billion. The price represents a 30% premium from the August 30 close of Glamis on the in New York.
Telfer said that it was knowledge of Glamis' Penesquito asset - which was acquired with Western Silver - the quality of Glamis personnel, and relative stock valuations by analysts and the markets that led to the premium.
The deal will create 290 million new shares of Goldcorp stock.Glamis shareholders will own 39.8% of the new company while current Goldcorp shareholders will own a 60.2% stake.
"We're putting together a very strong, committed management team, for gold investors this of course represents the best of both worlds," Glamis President and CEO, Kevin McAruthur, said during the call.
McArthur is designated to become the CEO of the new company and Telfer will become the chairman.
The combined company, which will be retain the Goldcorp brand, will have reported proven and probable reserves of 41.1 million gold ounces, and insert silver ounces and other metals.
"This transaction merges the talents of the two top performing gold mining companies over the past five years. We will leverage this talent to deliver on a very exciting building and growth program for the company's long-term future. This transaction provides tremendous value to Glamis shareholders," McAruthur said in a company press release.
Goldcorp, North America's third largest gold producer and one of the world's lowest cost producers, has operations in Canada, the United States, Mexico, Argentina, Brazil and Australia. The company also owns a controlling stake in Silver Wheaton [TSX:SLW].
The primary rationale behind Goldcorp's appetite for Glamis is the Penasquito project located in Zacatecas, Mexico.
Glamis completed its merger with Western Silver in May 2006, giving the company control over the Penasquito site. The area is one of the largest undeveloped metals deposits throughout the Americas and consists of two deposits: Penasco and Chile Colorado.
According to company reports, the sites have the necessary transport infrastructure access, along with availability of skilled labor and smelters.
There are roughly 5 million stated ounces of gold reserves and 300 million ounces of silver at the Penasquito site. The development of the Penasco project catapulted Western Silver from an interesting prospect to an essential portfolio stock, and it was finally rewarded with the Glamis Gold purchase.
It's suggested that the two companies decided to act in June, when Glamis doubled its proven and probable gold reserves from 4.93 million ounces, to 9.98 million ounces, increased its silver reserves 86% to 575 million ounces and doubled its lead and zinc reserves to 1.67 million tonnes and 3.62 million tones. The silver reserves which Glamis holds are greater than any other North American producer's.
"The thing that's changed since Glamis and Goldcorp bumped into each other a year and a half ago has been Penasquito and the Reserves they've found there. I saw a statistic that said if you take all the metal in Penasquito and turn it into the gold equivalent there are 25 million proven and probable gold reserves," Telfer said.
Telfer said that the company prefers "to look for gold assets," and that precious metals to base metals focus 80:20; while overall gold is 70:30 to base metals.
"We believe the new Goldcorp will be the first choice for investors. The competition will be unmatched in its combination of producing long-term mining assets, development opportunities and exploration upsides...and not to mention the low-cash cost...that the company will have going for them."
In late-afternoon trading, Glamis shares were trading up 19% or $7.36 to $46.22 while Goldcorp shares were trading down 9% or $2.76 to $27.71 on the NYSE.
Goldcorp-Glamis Supermerger Shakes up Old Boy Club
By Karl Heilman
31 Aug 2006 at 12:15 PM EDT
St. LOUIS (ResourceInvestor.com) -- Goldcorp [NYSE:GG; TSX:G] and Glamis [NYSE:GLG; TSX:GLG] today announced an agreement to merge that would create a new $21.3 billion gold company, ranked third in the world by market capitalization behind $28.9 billion Barrick [NYSE:ABX; TSX:ABX] and $23 billion Newmont [NYSE:NEM].
Commenting on a deal related conference call earlier today, Goldcorp CEO, Ian Telfer, said that both companies were approached by an investment banker who showed that the value of Glamis was being created faster than Goldcorp and the markets realized. Resource Investor illustrates this in its tabulation of the deal which shows how Glamis' resource base was dramatically under-priced even though its production was overpriced.
"We believe this will be the world's premier gold mining company…we are a senior in all aspects of that word going forward," Telfer said.
Glamis shareholders are slated to receive 1.69 shares of Goldcorp for each Glamis share held, with a per share value of $51.49 and a Glamis company value of $8.6 billion. The price represents a 30% premium from the August 30 close of Glamis on the in New York.
Telfer said that it was knowledge of Glamis' Penesquito asset - which was acquired with Western Silver - the quality of Glamis personnel, and relative stock valuations by analysts and the markets that led to the premium.
The deal will create 290 million new shares of Goldcorp stock.Glamis shareholders will own 39.8% of the new company while current Goldcorp shareholders will own a 60.2% stake.
"We're putting together a very strong, committed management team, for gold investors this of course represents the best of both worlds," Glamis President and CEO, Kevin McAruthur, said during the call.
McArthur is designated to become the CEO of the new company and Telfer will become the chairman.
The combined company, which will be retain the Goldcorp brand, will have reported proven and probable reserves of 41.1 million gold ounces, and insert silver ounces and other metals.
"This transaction merges the talents of the two top performing gold mining companies over the past five years. We will leverage this talent to deliver on a very exciting building and growth program for the company's long-term future. This transaction provides tremendous value to Glamis shareholders," McAruthur said in a company press release.
Goldcorp, North America's third largest gold producer and one of the world's lowest cost producers, has operations in Canada, the United States, Mexico, Argentina, Brazil and Australia. The company also owns a controlling stake in Silver Wheaton [TSX:SLW].
The primary rationale behind Goldcorp's appetite for Glamis is the Penasquito project located in Zacatecas, Mexico.
Glamis completed its merger with Western Silver in May 2006, giving the company control over the Penasquito site. The area is one of the largest undeveloped metals deposits throughout the Americas and consists of two deposits: Penasco and Chile Colorado.
According to company reports, the sites have the necessary transport infrastructure access, along with availability of skilled labor and smelters.
There are roughly 5 million stated ounces of gold reserves and 300 million ounces of silver at the Penasquito site. The development of the Penasco project catapulted Western Silver from an interesting prospect to an essential portfolio stock, and it was finally rewarded with the Glamis Gold purchase.
It's suggested that the two companies decided to act in June, when Glamis doubled its proven and probable gold reserves from 4.93 million ounces, to 9.98 million ounces, increased its silver reserves 86% to 575 million ounces and doubled its lead and zinc reserves to 1.67 million tonnes and 3.62 million tones. The silver reserves which Glamis holds are greater than any other North American producer's.
"The thing that's changed since Glamis and Goldcorp bumped into each other a year and a half ago has been Penasquito and the Reserves they've found there. I saw a statistic that said if you take all the metal in Penasquito and turn it into the gold equivalent there are 25 million proven and probable gold reserves," Telfer said.
Telfer said that the company prefers "to look for gold assets," and that precious metals to base metals focus 80:20; while overall gold is 70:30 to base metals.
"We believe the new Goldcorp will be the first choice for investors. The competition will be unmatched in its combination of producing long-term mining assets, development opportunities and exploration upsides...and not to mention the low-cash cost...that the company will have going for them."
In late-afternoon trading, Glamis shares were trading up 19% or $7.36 to $46.22 while Goldcorp shares were trading down 9% or $2.76 to $27.71 on the NYSE.
Goldcorp-Glamis Merger by the Numbers: Bulletproof
By Tim Wood
31 Aug 2006 at 02:52 PM EDT
St. LOUIS (ResourceInvestor.com) -- Today’s offer by Goldcorp [TSX:G; NYSE:GG] to acquire Glamis Gold [TSX:GLG; NYSE:GLG] is as full and fair as you will see in an opening gambit. This in no way excludes the possibility of the price being raised if the hedge funds have their way, but the signals from early trading are that it’s a done deal.
Based on Resource Investor’s tabulation of the merger details, merging the companies achieves accretion across many metrics, especially implied reserve value. The annualized rate-of-return for Glamis stock owners is a staggering 206% at the announced ratio of exchange.
The accretion was made possible by Glamis rolling the dice to acquire Western Silver for a quite pricey $1.2 billion. That bulked up its mineral resources in a way that made the company cheap, and now the risk has been mostly offset for Glamis shareholders through the premium offer and diluted stake in the new company.
Whilst Glamis has been trading at a ridiculous multiple of annual production, the gross resources could not be ignored.
That was especially the case for Goldcorp, which has never had a hang-up about a polymetallic mineral resource and revenue stream. It all gets converted into cash or assets anyway. Allied with Goldcorp’s superior multiples on most measures, Glamis had to be bought, and all the better for injecting its silver stream into Wheaton Silver which is looking increasingly like a central bank treasury operation.
PERTINENT TABLES ON MERGER INCLUDED IN LINK BELOW!
http://www.resourceinvestor.com/pebble.asp?relid=23324
FA,
That will be the day that people discontinue using gas. lol
You might be interested in this link:
http://www.investorshub.com/boards/read_msg.asp?message_id=13052523
Have a good Labor Day Weekend,
sumisu
Peak Oil Forecasters Win Converts on Wall Street to $200 Crude
By Deepak Gopinath
Aug. 31 (Bloomberg) -- On a sweltering Tuesday in mid-July, in the fields outside Pisa, Italy, Willem Kadijk scribbles notes as a ragtag troupe of doomsayers predict the end of the Oil Age.
With his shaved head, jeans and sandals, Kadijk, 48, blends into a crowd gathered under a white tent to hear of the coming calamity. The death of cheap, abundant crude, the forecasters warn, might unleash war and plunge the world into a second Great Depression.
That's not the prophecy of some apocalyptic cult. Kadijk, a hedge fund adviser, had flown from Amsterdam to attend a conference on a geologic theory known as peak oil.
Proponents of this controversial idea say global oil production is now at or near its zenith. Once the flow crests and starts to decline -- and some geologists say it already has -- oil will no longer be able to slake the world's growing thirst for energy. The result will be the oil shock to end all oil shocks. The price of a barrel of crude will spiral to $200 -- and keep rising. To the peaksters, today's energy crunch is nothing next to the pain that will follow.
``Peak oil is a reality,'' says Kadijk, a senior equity salesman at Kepler Equities, an Amsterdam-based brokerage. He plans to start a fund to capitalize on what he sees as a looming crisis for the world's fossil fuel-based economy and the ultimate bull market in oil.
As energy prices soar and violence convulses the Middle East, the peak-oil movement -- an unlikely alliance of geologists, physicists, oil industry consultants and environmental activists -- is winning converts. Peak-oil ideas are bubbling up from scientific journals and offbeat Web sites, much the way warnings of global warming did a decade ago. For the first time, the peaksters have begun to grab the attention of Washington and Wall Street.
Congressional Caucus
U.S. Energy Secretary Samuel Bodman, former boss of Boston- based Cabot Corp., an oil and chemicals company, has asked the National Petroleum Council, which advises him, to investigate whether oil supplies can keep pace with demand. The U.S. Government Accountability Office, the nonpartisan congressional watchdog, is due to release a study on peak oil this November. Rep. Roscoe Bartlett, a Maryland Republican, has formed the Congressional Peak Oil Caucus to sound the alarm.
``The world has never faced a problem like this,'' Bartlett says.
Everyone agrees we'll run out of crude eventually. Oil, after all, is a finite resource: The Earth holds only so much of it. The controversial issue is when a global peak will occur -- and what will happen then.
Colin Campbell, a British geologist who popularized the peak- oil theory in his book ``The Coming Oil Crisis'' (Multi-Science Publishing Co. and Petroconsultants SA, 1997, 210 pages) says world production of conventional oil, the kind that comes from gushing wells, is reaching its apex.
End of Oil Age
Society isn't prepared for the consequences, Campbell, 75, says. It's too late to develop alternative sources of power, such as solar cells, nuclear reactors and windmills, to fill the oil gap before energy prices soar, says Campbell, who has a doctorate in geology from the University of Oxford and more than 40 years of experience in the oil industry.
``We have come to the end of the first half of the Oil Age,'' Campbell says.
Nonsense, says Russ Roberts, a spokesman for Exxon Mobil Corp., the world's largest oil company. Exxon Mobil, which has reaped record profits as the price of oil has surged, has taken out ads dismissing peak oil in U.S. newspapers such as the New York Times.
The Irving, Texas-based oil giant says the peaksters are being alarmist. In all, the world probably has 4 trillion barrels of oil left, four times the amount we have used so far, the ad says.
Time to Think
``The world is nowhere near running out of oil,'' Roberts says. Exxon Mobil geologists believe global oil production will keep rising through 2030, he says.
Cambridge Energy Research Associates, whose chairman, Daniel Yergin, is a leading peak-oil critic, says production will reach an ``undulating plateau'' sometime in the future.
``Our outlook goes to 2020, and we see no evidence of a peak,'' CERA geologist Peter Jackson says. ``Eventually, we will start to see a decline. There is still time to think about alternatives.''
Predictions of an imminent oil famine are as old as the industry itself. When production at the first U.S. wells, located in western Pennsylvania, began to decline in the late 19th century, some people predicted the country would soon run out of oil. Then crude was discovered in east Texas, whose oil fields yielded so much black gold that the Texas Railroad Commission capped production to support prices.
Peak Moment
In the past, Campbell or his disciples have forecast the oil peak down to the year or even the day only to push back the fateful moment. In 1997, Campbell said it would occur in 2001. Now, he says total production, which includes oil from deep-water wells and fuel derived from natural gases, will reach its height sometime after 2010.
Kenneth Deffeyes, a geologist and professor emeritus at Princeton University, first pinpointed Nov. 24, 2005, as the peak- oil date and then revised it to Dec. 16, 2005.
Campbell says the exact day or year isn't important. What matters is that peak oil is coming, and soon. Almost a century and a half after the first U.S. wells were drilled in Titusville, Pennsylvania, production has begun to decline in more than a dozen countries, including the U.S., according to the BP Statistical Review of World Energy. Production at the giant Cantarell oil field in Mexico is likely to decline 8 percent this year, according to Mexican state oil monopoly Petroleos Mexicanos.
U.S. Addiction
At a time when U.S. President George W. Bush has urged the country to break its addiction to foreign oil, the fact is, the U.S. is becoming ever more dependent on overseas crude. U.S. oil production peaked 36 years ago, in 1970, at 11.3 million barrels a day. Since then, output has fallen 39 percent, to 6.8 million barrels a day, or 8 percent of the world total, in 2005, according to BP.
Investors have started to listen to the peaksters. Billionaire Boone Pickens says he's a peak believer. So does Peter Thiel, who co-founded PayPal Inc. and now runs Clarium Capital Management LLC, a $2.1 billion hedge fund firm. Pickens, Thiel and other investors are positioning themselves to profit from what they say will be the biggest oil squeeze of all time.
Even some oil companies and industry veterans sound nervous. Chevron Corp. has run a series of full-page ads in U.S. newspapers that highlight surging oil consumption and declare, ``The era of easy oil is over.''
Chicken Littles
Thierry Desmarest, chief executive officer of Paris-based Total SA, told the World Gas Conference in Amsterdam in June that global oil production would peak in 2020. Matthew Simmons, whose Houston-based investment bank, Simmons & Co., trades oil and gas stocks, says Saudi Arabia's production may decline soon.
Alex Cranberg, chairman of Denver-based independent oil company Aspect Energy LLC, calls the peaksters Chicken Littles -- misguided souls who think the sky is falling.
In fact, Cranberg hired two people to dress in chicken costumes and hand out fliers dismissing peak oil at the conference Kadijk attended in July.
Like many oil-industry vets, Cranberg, 51, says market forces and technological advances will ultimately cure our energy ills. As oil prices rise, companies will be more willing to hunt for crude and extract it. They'll invest in expensive deep-water wells and new technologies to wring more oil from existing fields. Consumers will start conserving energy. Even now, stock market investors and Silicon Valley venture capitalists are pouring billions of dollars into companies developing ethanol, solar power and other alternative sources of energy.
$3-a-Gallon Gas
More and more, however, the peaksters are drowning out everyone else, Cranberg says. ``You can't turn around without seeing or hearing these ideas,'' he says. ``I think they are gaining.''
You don't have to be a geologist to understand why. The price of crude has tripled since 2000. In the U.S., $3-a-gallon gasoline has sapped consumers' confidence. Nearly half of Americans believe the economy is doing poorly, according to a July 28-Aug. 1 Bloomberg/Los Angeles Times poll. Fifty-nine percent of Americans expressed a negative view of Bush's handling of the economy.
``If oil was still at $20, no one would be talking about peak oil,'' says Manouchehr Takin, senior petroleum upstream analyst at the Centre for Global Energy Studies, a London-based consulting firm.
High oil prices are only part of the story, however. The world is straining to feed its energy habit. Today, we consume 85 million barrels of oil a day, according to the U.S. Energy Information Administration (EIA). By 2030, the world will devour 118 million barrels a day, as China and India emerge as economic superpowers.
Big Question Mark
No one knows for sure how much oil the world has. That's a big question mark because the peaksters say production will max out once half of the oil has been pumped. So far, we've extracted about 1 trillion barrels in all. In 2000, the U.S. Geological Survey estimated global resources at 3 trillion barrels, enough to push peak production out to 2037, according to the EIA. Campbell puts the total lower, at 2.5 trillion barrels.
Oil is certainly getting harder -- and more expensive -- to find and extract. Oil discoveries plummeted to 5 billion barrels in 2005 from 90 billion barrels in 1964, according to Campbell.
``Discovery is in long-term decline, and spending more money won't increase it,'' says Chris Skrebowski, editor of the London- based Petroleum Review, an industry journal.
OPEC's Stash
Oil companies have to find enough crude to offset dwindling production at existing fields, which can decline by more than 8 percent a year, and to keep pace with rising demand. Most of that increase will have to come from members of the Organization of Petroleum Exporting Countries, which are often cauldrons of discontent, war and terror.
The cartel's members -- Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela -- together sit atop 75 percent of the world's reserves and account for about 42 percent of total production, according to BP.
OPEC countries are hardly paragons of economic and political stability. Most of the terrorists who attacked the U.S. on Sept. 11, 2001, came from Saudi Arabia. The war in Iraq has hurt that country's ability to pump oil. Bush says Iran is trying to develop nuclear weapons. In Venezuela, President Hugo Chavez has said he wants to diversify oil exports away from the U.S.
In its 2005 Energy Outlook, Exxon Mobil says the combined production of non-OPEC countries will peak sometime from 2010 to 2020. OPEC will be able to fill the gap, the report says. OPEC produced about 30 million barrels a day in 2005; by 2030, OPEC would have to churn out 47 million barrels a day -- almost 57 percent more than it did last year -- to satisfy the world's needs, the report says.
Meeting the Call
``We believe the resource base will support this increase, assuming that investments in development are made in a timely fashion,'' the report says.
OPEC countries will invest a combined $100 billion in the five years through 2010 so they can increase output, OPEC spokesman Omar Ibrahim says. ``We are set to meet the extra call on OPEC to 2030,'' Ibrahim says.
Yet even now, OPEC nations are struggling to keep up. Since 2000, OPEC has gradually lost the spare pumping capacity its members can use as an emergency reserve to moderate prices. The cushion has dwindled to about 1.5 million barrels a day from 6 million barrels a day, Takin says.
What's more, neither the peaksters nor oil industry executives know for sure how much oil OPEC has and how much it can actually produce. OPEC countries haven't been transparent about their reserves or production capacity, says Mike Rodgers, a partner at PFC Energy, a Washington-based oil industry consulting firm. ``OPEC is the big unknown,'' he says.
Overstated Reserves
Many energy analysts believe OPEC nations began overstating their resources in the 1980s, when the cartel linked members' production quotas to the size of their reserves, says Mamdouh Salameh, an independent oil economist. In the late '80s, cartel members raised their reserve estimates by a combined 300 billion barrels even though none of them had actually found much more oil.
In his 2005 book ``Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy'' (John Wiley & Sons, 448 pages, $24.95), Simmons says the Saudis have pumped so much oil so fast that the country's biggest oilfields face declining output.
``Saudi Arabia is keeping everything in the dark,'' Simmons, 63, says.
Saudi officials have dismissed peak-oil theorists and suggestions that their country is running on empty.
Saudi Assurances
``We currently manage approximately 260 billion barrels of oil,'' Abdallah Jum'ah, CEO of Saudi Aramco, the government-owned oil giant, said at an oil and gas conference in June. ``We continue to expand our reserve base, and conservatively estimate our additional potential of recoverable oil to be in the range of 200 billion barrels. At Saudi Aramco's present production levels, that means we will have well over a century's worth of oil to produce.''
Herman Franssen, former chief economist at the Paris-based International Energy Agency, says some OPEC members, such as Iran, Iraq, Kuwait and Venezuela, may be reluctant or unable to produce more oil even as prices soar, largely for political reasons.
``We may never see the volumes of conventional oil production that we see in official forecasts,'' says Franssen, who's now an oil industry consultant in Chevy Chase, Maryland.
Sadad al-Husseini, who spent 35 years working for Saudi Aramco, says Saudi Arabia's reserves are sound but that Kuwait, which says it has reserves of 101.5 billion barrels, probably has half that much. Iran, with official reserves of 132.5 billion barrels, has likewise overstated its reserves, says Husseini, who was an executive vice president at Saudi Aramco before retiring in 2004.
Assume the Worst
``Even with high prices, it will be very difficult for world production of conventional oil to exceed 90 million barrels per day within the next 10 years,'' he says. That's millions of barrels a day short of what the EIA says the world will need in 2015.
Political leaders, business executives and investors should assume OPEC won't be able to satisfy future demand, Rodgers says. ``From an energy-security point of view, if you believe in a non- OPEC peak and OPEC is not being transparent, we have to assume they don't have it,'' he says.
The precarious balance of supply and demand in the oil markets became even clearer in early August when London-based BP Plc announced it would temporarily shut down its Prudhoe Bay oil field on the North Slope of Alaska because of pipeline corrosion. The news drove already-high oil prices up more than $2 to almost $77.
Alaskan Decline
Prudhoe Bay, the largest oil field in the U.S., is part of the peak-oil story. The field was discovered in 1968 and came onstream in 1977. Since then, it has yielded more than 11 billion barrels of oil.
Yet even before the August mishap, this vast field had begun to die. Its output has fallen 73 percent to 400,000 barrels a day from a height of 1.5 million barrels a day in 1989.
Prudhoe Bay is following the life cycle of oil fields across the U.S. and around the world, a phenomenon known as the Hubbert Curve, which takes its name from M. King Hubbert.
Fifty years ago, Hubbert, then a geologist at Shell Oil Co.'s research lab in Houston, postulated that U.S. oil production would follow a bell-shaped curve.
At the 1956 meeting of the American Petroleum Institute in San Antonio, Hubbert predicted that total annual U.S. output would climb steadily, level off sometime between 1965 and '70 and then decline after about half of the country's reserves had been depleted.
Hubbert's Peak
The U.S. reached what geologists now refer to as Hubbert's Peak in 1970. Hubbert died in 1989 at the age of 86.
It wasn't until the late 1990s when Hubbert's ideas, which had percolated for decades in academia and oil circles, began to reach a wide audience via Campbell, the British geologist.
Now in his eighth decade, Campbell is a grandfatherly man with a shock of gray hair. He hardly comes across as a doom- monger. He works out of a two-story house in Ballydehob, a village on the western edge of Ireland.
Campbell spent 40 years exploring for oil for Amoco Corp. and other companies. He helped Amoco search for oil in Ecuador and then, during the 1980s, led its exploration in Norway. He later joined PetroFina SA, the oil exploration company now owned by Total.
After retiring from PetroFina in 1990, Campbell joined forces with Jean Laherrere, a retired French geophysicist who had spent 25 years working at Total, to analyze production profiles for the world's countries.
Campbell says he and Laherrere, now 75, looked at their data and concluded global oil production was approaching its zenith. In 1998, they co-wrote an article for Scientific American magazine titled ``The End of Cheap Oil'' that helped popularize their cause.
Coming Crunch
``The world is not running out of oil -- at least not yet,'' Campbell and Laherrere wrote. ``What our society does face, and soon, is the end of the abundant and cheap oil on which all industrial nations depend.''
In 2000, Campbell founded the Association for the Study of Peak Oil and Gas, an informal organization for fellow travelers. Now known as ASPO International, the group has sponsored five annual conferences, including the one in Pisa in July, which drew more than 230 people. It's now run by Kjell Aleklett, a physics professor at Uppsala University in Sweden. Twenty independent national ASPO groups have sprung up around the world, from Australia to France, to the U.S.
Many peaksters are driven by a moral imperative to spread the word. Campbell says he's a scientist, not a social or environmental crusader. Even so, he says he's worried that oil has harmed human society and the planet. Since the Oil Age dawned, nearly 150 years ago, the Earth's population has soared six-fold, he says.
Man Alone
``Man is the only animal that uses external energy,'' Campbell says.
Asked why he has championed the peak-oil theory, Laherrere quotes Antoine de Saint-Exupery, author of ``The Little Prince'': ``We don't inherit the Earth from our ancestors; we borrow it from our children.''
Activists have jumped on the peak-oil bandwagon and added their own, often strident, voices to the debate over the future of oil.
Jim Kunstler, a writer-activist who lives in Saratoga Springs, New York, says peak oil will ultimately destroy suburbia and plunge the U.S. into a violent dark age of feudalism.
``The question is, Can we run our shit the way we are running our shit?'' Kunstler, 57, says. In 2005, Kunstler wrote ``The Long Emergency: Surviving the Converging Catastrophes of the Twenty-First Century'' (Atlantic Monthly Press, 320 pages, $23), which warns of the havoc to come.
Dieoff.com
Lifeaftertheoilcrash.net, a Web site run by lawyer and peak- oil entrepreneur Matt Savinar, warns, ``Civilization as we know it is coming to an end soon.'' The site sells peak-inspired books and products, including an investor's guide to peak oil.
Another site, dieoff.com, says wars over oil and other natural resources will eventually erupt and millions of people will be wiped out.
Stephen Andrews, a Denver-based energy consultant who founded ASPO-USA in June 2005, says the alarmists have hurt the peak-oil movement.
``The peak-oil tent has different voices -- some shrill, some more sober -- reaching different conclusions from the same facts,'' Andrews, 59, says.
Andrews has attracted more-sober voices to the movement. Last November, Denver Mayor John Hickenlooper helped co-sponsor a two- day peak-oil conference organized by Andrews.
``I think the people most exuberant about peak oil underestimate how much unconventional sources of oil will help flatten the peak, but to say that there is no peak is shortsighted,'' Hickenlooper says.
Crash Program
The world would have to embark on a crash mitigation program 20 years in advance to prevent peak oil from hobbling the global economy, says Robert Hirsch, a senior energy program adviser at San Diego-based research and engineering firm Science Applications International Corp. ``And I consider myself an optimist,'' says Hirsch, 71, who included his findings in a 2005 study on peak oil for the U.S. Department of Energy and estimates such a program would cost the world $1 trillion a year.
Some investors and analysts see lots of opportunities in a post-peak world.
Charles Maxwell, senior energy analyst at Weeden & Co., an independent research firm based in Greenwich, Connecticut, says high oil prices will spur companies to invest in unconventional sources. Few people, however, realize how much such projects will cost or how long they will take to come onstream, he says.
Take the Canadian oil sands. This region in Alberta holds 175 billion barrels of oil, according to the Canadian Association of Petroleum Producers (CAPP), the world's second-largest reserves.
`Really Big'
``It's big. It's really big,'' Neil Camarta, senior vice president for oil sands at Calgary-based Petro-Canada, says of the region. ``It can keep America going for 25 years.''
The oil sands hold vast stores of bitumen, a tarlike substance that is mined, rather than pumped, and then processed into oil that can be refined. The process is expensive -- and getting more so. Rising operating and capital costs have driven the price of mining and upgrading bitumen to as much as $40 a barrel, Camarta says.
By 2020, Canada's oil sands will yield 4 million barrels a day, almost four times what they do now, according to CAPP. That sounds like a lot until you realize that 4 million barrels is just over a third of what Saudi Arabia produced per day in 2005.
Pickens, who built Mesa Petroleum Co. into one of the world's largest independent oil and gas producers, says he sees trouble -- and opportunity -- in peak oil. Pickens, who collected a degree in geology from Oklahoma State University in 1951, has called for the construction of more nuclear power plants and the promotion of alternative energy. He says he's invested in the Canadian oil sands.
Pickens's Picks
``I'm a disciple of Hubbert,'' Pickens, 77, says. ``I think we've peaked and we are going to see an undersupply of oil.''
Clarium Capital's Thiel says he began thinking about peak oil in 1999. As the Internet bubble grew that year, Thiel, 38, says he started to wonder about other risks that investors might be ignoring and seized on the uncertain future of oil.
``Energy will be systematically undervalued until peak oil is priced in,'' Thiel says. He's bought shares of Calgary-based EnCana Corp., which has invested in exploration and new production, and of oil services companies like New York-based Schlumberger Ltd. and Houston-based Weatherford International Ltd., which stand to profit as explorers hunt for oil and drill wells. Thiel says he's leery of U.S. oil majors, such as Exxon Mobil, because they may become targets of new taxes once the government wakes up to peak oil.
Thiel himself says the peak will come by 2008 -- if it hasn't already. ``Geology will trump technology,'' he says.
Coal, Uranium
Eric Sprott, CEO of Toronto-based Sprott Asset Management Inc., says he became a peak-oil convert after hearing Campbell speak in 2004. Sprott, who helps manage 3.6 billion Canadian dollars (US$3.2 billion), says the bull market in energy has only just begun. He's invested 36 percent of his firm's assets in a variety of areas that could benefit from peak oil. His flagship hedge fund returned 41 percent in 12 months ended July 31, he says.
Sprott's investments include St. Louis-based Arch Coal Inc. and Brisbane, Australia-based Macarthur Coal Ltd. His oil and gas picks include Halifax, Nova Scotia-based Corridor Resources Inc.; Denver- based Delta Petroleum Corp.; and Houston-based Ultra Petroleum Corp. He has also invested in Australian uranium companies Energy Resources of Australia Ltd. and Paladin Resources Ltd.
Midnight Ride
Meanwhile, the peaksters aren't about to let up. They'll convene in Boston on Oct. 25-27 to sound their alarm at a conference called ``Time for Action: A Midnight Ride for Peak Oil.'' The title is a reference to the American patriot Paul Revere, whose horse ride in 1775 warned Massachusetts colonists that British soldiers were advancing. The battle that followed, at Lexington and Concord, marked the beginning of the American Revolution.
It was just 84 years after Revere took his ride, on Aug. 27, 1859, that Edwin Drake struck oil in Titusville, ushering in the Oil Age. Exxon Mobil says the era of oil isn't about to end. In one of its ads, the company says, ``Oil is a finite resource, but because it is so incredibly large, a peak will not occur this year, next year or for decades to come.'' The ad depicts a man looking through binoculars at a snowcapped mountain whose summit is hidden by clouds.
Campbell says the illustration actually drives home the point Exxon Mobil is trying to avoid. ``Even though it is obscured by clouds, we know there is a peak,'' Campbell says. His investor followers are betting he's right.
To contact the reporter on this story: Deepak Gopinath in New York at dgopinath@bloomberg.net .
Last Updated: August 30, 2006 21:17 EDT
http://tinyurl.com/nedpx
FA,
Lucky that we have gold, silver and other precious metals to protect our financial future. These comprise our financial insurance policy. Sad, but true. (Of course, we also need energy stocks for Peak Oil and Peak Gas.)
sumisu
bob,
That is a tremendous cost basis; I would have sold most; I usually like to retain a small portion of each investment.
There are a lot of investments out there in precious metals and energy.
Unless all the world's countries can solve their paper inflation money problem and if no silver bullet is found to avoid Peak Oil and Peak Gas, then we are in the correct sectors for a long time to come.
Stay tuned.
sumisu
Economic speed limit may have fallen: Bernanke
8/31/2006 2:52:32 PM
By David Lawder
GREENVILLE, South Carolina (Reuters) - The U.S. economy's noninflationary speed limit has likely dropped due to slower labor force growth, but productivity should stay strong, Federal Reserve Chairman Ben Bernanke said on Thursday.
"The share of the population working or looking for work looks to be on a downward track over the long term," Bernanke told a luncheon crowd, pointing at an aging population, a leveling off of women entering the labor pool, and a decision by young people to stay in school longer.
But he presented a largely upbeat view of the economy's future, saying the pace at which the economy's efficiency was increasing looked set to remain strong for some time.
"A reasonable estimate is that productivity growth should continue at something like the level we saw between '95 and 2000 -- that is at a healthy level -- and that will promote increased potential output," Bernanke said.
"The net-net of all this is that potential output growth ... will probably be somewhat slower in the future," he said, weighing the impact of slower labor force growth against the big strides in labor productivity, or worker output per hour.
The Fed chief acknowledged recent data revisions had led some economists to mark down estimates for trend productivity growth -- a key ingredient in rising living standards -- but said the fact productivity gains had remained strong suggested they reflected long-term developments.
"The recent experience does not appear to require a significant rethinking of long-term productivity trends," Bernanke said, citing recent estimates by leading economists that put the trend rate at roughly 2.5 percent a year -- in line with the rapi
d growth seen in the 1990s boom.
Economists said Bernanke's remarks suggested he believed the economy's noninflationary speed limit still lay somewhere north of 3 percent a year.
GET A GRIP ON IT
Bernanke, who did not touch directly on the outlook for Fed policy, noted the price of computing power was continuing to drop sharply and was leading to advances in other fields -- two factors that would tend to push productivity higher.
In addition, he said productivity should also get a lift as existing technologies become more widely used.
While investment in new technologies had slowed from its breakneck 1990s pace, businesses had been making "intangible investments" -- such as in worker training -- that allowed them to become more efficient, he said.
"The concept of intangible capital may shed light on the puzzle of why productivity growth has remained strong despite the deceleration in (information technology) investment," Bernanke said.
He added that investing in U.S. labor force skills would be "particularly important" in coming years, and said the way intangible investments were treated in official data meant U.S. saving and investment may be "significantly understated."
CORE MISSION
In taking questions, Bernanke defended the Fed's strategy of focusing on core measures of inflation amid energy price spikes as it labored to keep overall inflation under wraps.
"It's very difficult to eliminate the inflationary impact of the immediate effect of an increase in energy prices," he said. "Doing so would require forcing down wages and other prices quite dramatically."
Instead, the Fed sought to prevent energy price gains from feeding through into other prices. "If we can keep core inflation stable ... it suggests that in the longer term we'll stabilize overall inflation as energy prices eventually stabilize," Bernanke said.
Some economists, including Bank of England chief economist Charles Bean, have criticized the U.S. central bank's approach. Bean told a forum last weekend such a strategy risked denting the Fed's inflation-fighting credibility.
bob3,
I was thinking of taking some SLW off the table, but then recalled that Glamis bought Western Silver:
http://www.westernsilvercorp.com/about/silver.php
I figured part of the rise in SLW and possibly beyond is that now SLW might have another supplier of silver from the former Western Silver operations, which has "one of the world’s largest open pit silver deposits at Peñasquito, Mexico, in an area with excellent infrastructure and low political risk."
Initially I didn't like the large premium that GG paid to acquire Glamis, but they are both low producers and I think that the silver aspect, which was not emphasized in the press release, contains an indirect bonus to GG and SLW. Just a thought.
But it's always good to take profits, if you have good alternative investments.
Good luck,
sumisu
Fortune Minerals announces closing of the Hemlo Mill purchase
Thursday August 31, 2:31 pm ET
LONDON, ON, Aug. 31 /CNW/ - Fortune Minerals Limited (TSX-FT) is pleased to report that it has completed the previously announced (see Fortune news release of December 8, 2005) purchase of the mill, ancillary buildings, surface facilities, spare parts and inventory from the Golden Giant mine at Hemlo, Ontario, which had been owned by Newmont Canada Limited (Newmont). Total consideration for this purchase was C$3.3 million, which was paid to Mindecom Industrial Constructors Limited (Mindecom) who had a reciprocal purchase agreement with Newmont. The Hemlo facilities were purchased for use at Fortune's 89%-owned NICO gold-cobalt-bismuth deposit in the Northwest Territories, which is currently being assessed in a full feasibility study led by Micon International Limited (Micon). The Golden Giant mill and surface facilities have been well maintained by Newmont and are well suited for use at NICO. The purchase of these facilities has also been incorporated into the NICO feasibility study to mitigate the effects on project capital from increasing steel and equipment costs.
Robin Goad, Fortune's President and CEO, noted, "We're very pleased to have secured the purchase of the Hemlo facilities at an attractive price as it will both materially reduce our projected capital costs at NICO and significantly reduce project risk."
Fortune will have 36 months to remove the facilities from the current mine site. The assets include a 4,000 tonne/day conventional crushing and grinding plant, flotation equipment, buildings, structural steel, minor equipment, spare parts and inventory, and engineered designs, which collectively can be used at NICO. Fortune has also received offers from a number of companies interested in purchasing surplus equipment from Hemlo that the Company does not intend to use. Mindecom is Fortune's exclusive agent for conducting such sales. The sale of surplus equipment will significantly reduce the net cost of purchasing the facilities.
The NICO gold-cobalt-bismuth deposit is located 160 km northwest of the City of Yellowknife and 22 km west of the Snare hydro complex. The Micon feasibility study for NICO is assessing a combination of underground and open pit mining methods with mineralized material processed in a 4,000 tonne/day mill/flotation concentrator and a hydrometallurgical plant to produce gold doré, cobalt cathode and bismuth concentrate. Micon's project manager responsible for the NICO feasibility study is Ian Ward, P.Eng., and is the Qualified Person for the purposes of NI 43-101.
Fortune Minerals Limited is a diversified natural resource company with seven mineral deposits and a number of exploration projects, all located in Canada. They include the Mount Klappan anthracite coal deposits in British Columbia, the NICO gold-cobalt-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune is the managing partner of Formosa Environmental Aggregates Ltd., an industrial mineral company developing the Greenock high calcium limestone quarry in Ontario. The Company is focussed on the assembly and development of high quality mineral resource projects that can generate strong returns for its shareholders.
For further information
Fortune Minerals Limited, Robin Goad, President, Tel.: (519) 858-8188, Fax: (519) 858-8155, info@fortuneminerals.com, www.fortuneminerals.com
G/T Investor Relations, Greg Taylor, Investor & Public Relations, Tel: (416) 605-5120, Fax: (905) 844-6532, gtaylor@g-tinvestorrelations.com
Goldcorp to Buy Glamis Gold for $8.6B
Thursday August 31, 1:24 pm ET
By Sandra Chereb, AP Business Writer
Canada's Goldcorp to Acquire Rival Gold-Miner Glamis Gold for $8.6 Billion in Stock
RENO, Nev. (AP) -- Canadian gold miner Goldcorp Inc. has agreed to buy Reno-based rival Glamis Gold Ltd. in an $8.6 billion stock deal that will create one of the world's largest gold producers, the companies announced Thursday.
The new company will have proven and probable reserves of about 41.1 million ounces of gold, worth about $25 billion at current prices. The company will have 11,000 employees and operations focused on the Americas, the companies said. It will continue to operate under the Goldcorp name and be headquartered in Vancouver, British Columbia.
"It's a good deal," said Tom O'Brien, editor of The Gold Report, a weekly subscription newsletter.
Both companies, he said, "are extremely low-cost producers."
"They take gold out of the ground for about $160 an ounce," O'Brien said. With gold prices at their highest levels in recent decades, trading around $620 an ounce, their product value will continue to rise, he said.
Under the terms of the agreement, shareholders will get 1.69 common shares of Goldcorp for each Glamis common share. Based on Goldcorp's closing share price on Wednesday, the offer values Glamis shares at $51.49 each, an almost 33 percent premium to the stock's closing share price on Wednesday.
Ian Telfer, president and CEO of Goldcorp, said the new company will have a strong balance sheet and robust cash flow that will make it a powerhouse in the industry.
"We believe this will be the world's premier gold company," Telfer, who will serve as chairman of the new company, said in a conference call with analysts. "This transaction doubles our reserves and resources."
Kevin McArthur, president and CEO of Glamis, will lead the new company in those same capacities.
Shares of Glamis surged 19 percent to $46.41 in midday trading on the New York Stock Exchange, where Goldcorp shares fell 8.8 percent to $27.77. Both companies are listed on the NYSE and Toronto Stock Exchange.
Goldcorp shareholders will own about 60 percent of the combined company, while Glamis shareholders will own the remainder.
The deal is supported by the boards of both companies. Glamis shareholders will vote on it in late October, and the deal is expected to close in November, company officials said. Goldcorp shareholders will not vote.
The deal creates one of the largest gold miners in the world by market capitalization, behind Barrick Gold Corp., which is worth more than $28 billion.
Goldcorp has operations in Canada, Argentina, Mexico, Brazil, Australia and the United States, and also owns a controlling interest in Vancouver-based Silver Wheaton Corp.
Glamis operates mines and development projects in Nevada, Mexico and Central America.
One of its most promising holdings is the Penasquito Project in central Mexico, considered one of the largest undeveloped precious metals deposits in the Americas.
The project "will be the largest mine in Mexico," McArthur said. It has a reserve of 10 million ounces of gold and 575 million ounces of silver, according to the company's Web site.
In its outlook earlier this year, Goldcorp said gold production in 2006 was expected to be about 1.8 million ounces on an annualized basis. Glamis expects to produce more than 700,000 ounces of gold next year.
Glamis has agreed to pay a breakup fee to Goldcorp of $215 million if the deal is not completed under certain circumstances. Glamis has also provided Goldcorp with a right to match competing offers.
Goldcorp to Buy Glamis Gold for $8.6B
Thursday August 31, 8:37 am ET
Canadian Gold-Miner Goldcorp to Buy Reno-Based Rival Glamis Gold for $8.6 Billion in Stock
VANCOUVER, British Columbia (AP) -- Canadian gold miner Goldcorp Inc. has agreed to buy Reno, Nev.-based rival Glamis Gold Ltd. for about $8.6 billion in stock in a deal that will create one of the world's largest gold producers.
The new company will have proven and probable reserves of about 41.1 million ounces of gold with focused operations in the Americas and 11,000 employees.
Under the terms of the agreement, shareholders will get 1.69 common shares of Goldcorp for each Glamis common share. Based on Goldcorp's closing share price on Wednesday, the offer values Glamis shares at $51.49 each, an almost 33 percent premium to the stock's closing share price on Wednesday.
Shares of Glamis surged 24 percent to $48.35 in premarket trading after the news, while Goldcorp shares fell 4 percent to $29.21. Both companies are listed on the New York and Toronto stock exchanges.
Goldcorp shareholders will own about 60 percent of the combined company, while Glamis shareholders will own the remainder. The deal is supported by the boards of both companies and is expected to close in November pending shareholder approval.
Ian Telfer, president and chief executive of Goldcorp, will become chairman of the new Goldcorp, while Kevin McArthur, president and chief executive of Glamis, will become president and chief executive officer of the new company, which will be based in Vancouver.
The deal creates one of the largest gold miners in Canada by market capitalization, behind Barrick Gold Corp. which is worth more than $28 billion.
Canada's mining industry has seen several large mergers in recent months including the takeover of Falconbridge Ltd. by Swiss-based Xstrata PLC and the wooing of Inco Ltd. by multiple suitors including Teck Cominco Ltd., U.S.-based Phelps Dodge Corp. and Compania Vale do Rio Doce, or CVRD, of Brazil.
Last year, Goldcorp bulked up with the takeover of Wheaton River Minerals Ltd. and the $1.5 billion addition of several former Placer Dome mines earlier this year.
Goldcorp has operations in Canada, Argentina, Mexico, Brazil, Australia and the United States, and also owns a controlling interest in Silver Wheaton Corp.
Meanwhile, Glamis operates mines and development projects in Nevada, Mexico and Central America. In its outlook earlier this year, Goldcorp said gold production in 2006 was expected to be about 1.8 million ounces on an annualized basis. Glamis expects to produce more than 700,000 ounces of gold next year.
Glamis has agreed to pay a break-up fee to Goldcorp of $215 million if the deal is not completed under certain circumstances. Glamis has also provided Goldcorp with a right to match competing offers.
Goldcorp to Buy Glamis Gold for $8.6B
Thursday August 31, 8:37 am ET
Canadian Gold-Miner Goldcorp to Buy Reno-Based Rival Glamis Gold for $8.6 Billion in Stock
VANCOUVER, British Columbia (AP) -- Canadian gold miner Goldcorp Inc. has agreed to buy Reno, Nev.-based rival Glamis Gold Ltd. for about $8.6 billion in stock in a deal that will create one of the world's largest gold producers.
The new company will have proven and probable reserves of about 41.1 million ounces of gold with focused operations in the Americas and 11,000 employees.
Under the terms of the agreement, shareholders will get 1.69 common shares of Goldcorp for each Glamis common share. Based on Goldcorp's closing share price on Wednesday, the offer values Glamis shares at $51.49 each, an almost 33 percent premium to the stock's closing share price on Wednesday.
Shares of Glamis surged 24 percent to $48.35 in premarket trading after the news, while Goldcorp shares fell 4 percent to $29.21. Both companies are listed on the New York and Toronto stock exchanges.
Goldcorp shareholders will own about 60 percent of the combined company, while Glamis shareholders will own the remainder. The deal is supported by the boards of both companies and is expected to close in November pending shareholder approval.
Ian Telfer, president and chief executive of Goldcorp, will become chairman of the new Goldcorp, while Kevin McArthur, president and chief executive of Glamis, will become president and chief executive officer of the new company, which will be based in Vancouver.
The deal creates one of the largest gold miners in Canada by market capitalization, behind Barrick Gold Corp. which is worth more than $28 billion.
Canada's mining industry has seen several large mergers in recent months including the takeover of Falconbridge Ltd. by Swiss-based Xstrata PLC and the wooing of Inco Ltd. by multiple suitors including Teck Cominco Ltd., U.S.-based Phelps Dodge Corp. and Compania Vale do Rio Doce, or CVRD, of Brazil.
Last year, Goldcorp bulked up with the takeover of Wheaton River Minerals Ltd. and the $1.5 billion addition of several former Placer Dome mines earlier this year.
Goldcorp has operations in Canada, Argentina, Mexico, Brazil, Australia and the United States, and also owns a controlling interest in Silver Wheaton Corp.
Meanwhile, Glamis operates mines and development projects in Nevada, Mexico and Central America. In its outlook earlier this year, Goldcorp said gold production in 2006 was expected to be about 1.8 million ounces on an annualized basis. Glamis expects to produce more than 700,000 ounces of gold next year.
Glamis has agreed to pay a break-up fee to Goldcorp of $215 million if the deal is not completed under certain circumstances. Glamis has also provided Goldcorp with a right to match competing offers.
Goldcorp to Buy Glamis Gold for $8.6B
Thursday August 31, 8:37 am ET
Canadian Gold-Miner Goldcorp to Buy Reno-Based Rival Glamis Gold for $8.6 Billion in Stock
VANCOUVER, British Columbia (AP) -- Canadian gold miner Goldcorp Inc. has agreed to buy Reno, Nev.-based rival Glamis Gold Ltd. for about $8.6 billion in stock in a deal that will create one of the world's largest gold producers.
The new company will have proven and probable reserves of about 41.1 million ounces of gold with focused operations in the Americas and 11,000 employees.
Under the terms of the agreement, shareholders will get 1.69 common shares of Goldcorp for each Glamis common share. Based on Goldcorp's closing share price on Wednesday, the offer values Glamis shares at $51.49 each, an almost 33 percent premium to the stock's closing share price on Wednesday.
Shares of Glamis surged 24 percent to $48.35 in premarket trading after the news, while Goldcorp shares fell 4 percent to $29.21. Both companies are listed on the New York and Toronto stock exchanges.
Goldcorp shareholders will own about 60 percent of the combined company, while Glamis shareholders will own the remainder. The deal is supported by the boards of both companies and is expected to close in November pending shareholder approval.
Ian Telfer, president and chief executive of Goldcorp, will become chairman of the new Goldcorp, while Kevin McArthur, president and chief executive of Glamis, will become president and chief executive officer of the new company, which will be based in Vancouver.
The deal creates one of the largest gold miners in Canada by market capitalization, behind Barrick Gold Corp. which is worth more than $28 billion.
Canada's mining industry has seen several large mergers in recent months including the takeover of Falconbridge Ltd. by Swiss-based Xstrata PLC and the wooing of Inco Ltd. by multiple suitors including Teck Cominco Ltd., U.S.-based Phelps Dodge Corp. and Compania Vale do Rio Doce, or CVRD, of Brazil.
Last year, Goldcorp bulked up with the takeover of Wheaton River Minerals Ltd. and the $1.5 billion addition of several former Placer Dome mines earlier this year.
Goldcorp has operations in Canada, Argentina, Mexico, Brazil, Australia and the United States, and also owns a controlling interest in Silver Wheaton Corp.
Meanwhile, Glamis operates mines and development projects in Nevada, Mexico and Central America. In its outlook earlier this year, Goldcorp said gold production in 2006 was expected to be about 1.8 million ounces on an annualized basis. Glamis expects to produce more than 700,000 ounces of gold next year.
Glamis has agreed to pay a break-up fee to Goldcorp of $215 million if the deal is not completed under certain circumstances. Glamis has also provided Goldcorp with a right to match competing offers.
Cash Minerals Updates Exploration Program at Igor Property
Wednesday August 30, 11:50 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 30, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX - News) today announced that the first drill core from 2006 exploration drilling at the Igor property has been delivered to ALS Chemex (ALS) in North Vancouver, B.C. for assaying. Visual inspection of the core indicates that chalcopyrite may be present. The Igor property is an iron-oxide copper-gold (IOCG) target, with similar characteristics to the Olympic Dam and Ernest Henry deposits in Australia.
Due to a backlog of samples awaiting testing at ALS, the Company anticipates that complete assay results for the first batch of holes may not be complete before October, 2006. As per the news release dated August 17, 2006, a total of 14 holes measuring approximately 2,000 metres have been completed at Igor. A further three to five holes measuring approximately 1,500 metres are planned by the end of 2006.
About Cash Minerals Ltd.
Cash Minerals (www.cashminerals.com) is an emerging publicly listed resource company. Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the option to earn a 75% interest in one or more of the eight uranium prospects in the Yukon. These prospects include four IOCG prospects and an attractive unconformity-related uranium target all located in the Wernecke Mountain region of north-east Yukon. The company is also engaged in exploring and developing coal properties in the Yukon, and is involved in the development of a coal-to-liquids (CTL) project in China, which uses the Fischer-Tropsch process to convert coal into clean-burning diesel fuel.
Cautionary Note
The matters discussed in this news release include forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the risk factors as set forth in Cash Minerals' 2005 Annual Report filed with SEDAR on May 16, 2006.
Should you wish to receive Company news via email, please email shosein@cashminerals.com and specify "CHX News" in the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Basil Botha
Cash Minerals Ltd.
President & CEO
(604) 633-9942
(604) 633-9972 (FAX)
bbotha@cashminerals.com
Peter Arendt
Cash Minerals Ltd.
Vice President
(604) 633-9942
(604) 633-9972 (FAX)
parendt@cashminerals.com
--------------------------------------------------------------------------------
Source: Cash Minerals Ltd.
Cash Minerals Updates Exploration Program at Igor Property
Wednesday August 30, 11:50 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 30, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX - News) today announced that the first drill core from 2006 exploration drilling at the Igor property has been delivered to ALS Chemex (ALS) in North Vancouver, B.C. for assaying. Visual inspection of the core indicates that chalcopyrite may be present. The Igor property is an iron-oxide copper-gold (IOCG) target, with similar characteristics to the Olympic Dam and Ernest Henry deposits in Australia.
Due to a backlog of samples awaiting testing at ALS, the Company anticipates that complete assay results for the first batch of holes may not be complete before October, 2006. As per the news release dated August 17, 2006, a total of 14 holes measuring approximately 2,000 metres have been completed at Igor. A further three to five holes measuring approximately 1,500 metres are planned by the end of 2006.
About Cash Minerals Ltd.
Cash Minerals (www.cashminerals.com) is an emerging publicly listed resource company. Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the option to earn a 75% interest in one or more of the eight uranium prospects in the Yukon. These prospects include four IOCG prospects and an attractive unconformity-related uranium target all located in the Wernecke Mountain region of north-east Yukon. The company is also engaged in exploring and developing coal properties in the Yukon, and is involved in the development of a coal-to-liquids (CTL) project in China, which uses the Fischer-Tropsch process to convert coal into clean-burning diesel fuel.
Cautionary Note
The matters discussed in this news release include forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the risk factors as set forth in Cash Minerals' 2005 Annual Report filed with SEDAR on May 16, 2006.
Should you wish to receive Company news via email, please email shosein@cashminerals.com and specify "CHX News" in the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Basil Botha
Cash Minerals Ltd.
President & CEO
(604) 633-9942
(604) 633-9972 (FAX)
bbotha@cashminerals.com
Peter Arendt
Cash Minerals Ltd.
Vice President
(604) 633-9942
(604) 633-9972 (FAX)
parendt@cashminerals.com
--------------------------------------------------------------------------------
Source: Cash Minerals Ltd.
Cash Minerals Updates Exploration Program at Igor Property
Wednesday August 30, 11:50 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 30, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX - News) today announced that the first drill core from 2006 exploration drilling at the Igor property has been delivered to ALS Chemex (ALS) in North Vancouver, B.C. for assaying. Visual inspection of the core indicates that chalcopyrite may be present. The Igor property is an iron-oxide copper-gold (IOCG) target, with similar characteristics to the Olympic Dam and Ernest Henry deposits in Australia.
Due to a backlog of samples awaiting testing at ALS, the Company anticipates that complete assay results for the first batch of holes may not be complete before October, 2006. As per the news release dated August 17, 2006, a total of 14 holes measuring approximately 2,000 metres have been completed at Igor. A further three to five holes measuring approximately 1,500 metres are planned by the end of 2006.
About Cash Minerals Ltd.
Cash Minerals (www.cashminerals.com) is an emerging publicly listed resource company. Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the option to earn a 75% interest in one or more of the eight uranium prospects in the Yukon. These prospects include four IOCG prospects and an attractive unconformity-related uranium target all located in the Wernecke Mountain region of north-east Yukon. The company is also engaged in exploring and developing coal properties in the Yukon, and is involved in the development of a coal-to-liquids (CTL) project in China, which uses the Fischer-Tropsch process to convert coal into clean-burning diesel fuel.
Cautionary Note
The matters discussed in this news release include forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the risk factors as set forth in Cash Minerals' 2005 Annual Report filed with SEDAR on May 16, 2006.
Should you wish to receive Company news via email, please email shosein@cashminerals.com and specify "CHX News" in the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Basil Botha
Cash Minerals Ltd.
President & CEO
(604) 633-9942
(604) 633-9972 (FAX)
bbotha@cashminerals.com
Peter Arendt
Cash Minerals Ltd.
Vice President
(604) 633-9942
(604) 633-9972 (FAX)
parendt@cashminerals.com
--------------------------------------------------------------------------------
Source: Cash Minerals Ltd.
Pele Mountain Reports Wawa Area Diamond Sampling Results
Wednesday August 30, 9:42 am ET
Talisker Dike Returns Encouraging Diamond Quality and Size Distribution; Festival Bulk Samples All Return Commercial-Sized Diamonds
TORONTO--(MARKET WIRE)--Aug 30, 2006 -- Pele Mountain Resources Inc. (TSX VENTURE:GEM.V - News) ("Pele" or the "Company") today announced results from diamond sampling programs at its Highland and Festival projects near Wawa in northern Ontario. Pele controls more than 250 square-kilometres of mining claims and mineral rights interests in the Wawa area, where it has made numerous diamond discoveries over the last several years, and continues to identify new bedrock sources of commercial size and gem quality diamonds.
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Pele President and CEO Al Shefsky stated, "These results again demonstrate the widespread presence of commercial size diamonds in a variety of host lithologies north of Wawa. Clearly, our Talisker dike has exciting exploration potential. The high quality and encouraging size distribution of the diamonds recovered have only increased both our enthusiasm for this discovery and our determination to pursue similar targets in the area. Although the Festival samples did not provide the grade and size distribution breakthroughs that we had sought, the property remains an integral part of our regional diamond exploration plans. The Festival property hosts near-surface diamond occurrences along a 5 kilometre long horizon that have previously produced the area's largest diamonds from bedrock. Its close proximity to Highland provides the ideal location for both large Archean-aged deposits as well as the younger kimberlite occurrences."
Mr. Shefsky continued, "We are now reviewing our opportunities for advancing a comprehensive exploration strategy on all of our Wawa area diamond properties. We firmly believe that the area has outstanding potential to host economic diamond deposits and as the area's largest holder of mining claims and mineral rights interests, we are well-positioned to lead the quest for their discovery and development."
Highland Project -- Drill Samples from Talisker Mica Kimberlite Dike
Pele Gold recently discovered a mica kimberlite dike (the Talisker Diamond Occurrence) at Highland that has been drill-tested along a strike length of more than 1,100 metres, to a depth of over 100 metres, across widths of between 4 to 10 metres, and is open in all directions. The Highland Project is 100-percent owned by Pele Gold Corporation, a wholly owned subsidiary of the Company.
A recently acquired sample weighing 1,311 kilograms of HQ-size drill core was processed by Saskatchewan Research Council (SRC) laboratory by caustic digestion to recover diamonds greater than 425-micron square mesh sieve size. A total of 34 diamonds were recovered from the sample, weighing a combined total of 0.15 carats, and described as primarily colorless or white octahedrons as indicated in the table below.
http://www.usetdas.com/maps/pelemountain/TablesAug30-06.pdf
mg = 29.050
Festival Project -- Bulk Samples from Cristal and Deutz Occurrences
A 500-tonne bulk sample program, consisting of a 300-tonne sample from the Cristal occurrence and two 100-tonne samples from the Deutz occurrence (one each from Upper and Lower stratigraphic layers), was conducted at Festival in late-2005. Cristal was the site of past sampling efforts that recovered a 0.72-carat gem quality diamond. Deutz was the site of a drill program that confirmed subsurface continuity of Festival's 1500 metre by 800 metre South Zone. Goldcorp Inc. (TSX:G.TO - News) (NYSE:GG - News) has funded sufficient work to earn a 50-percent interest in Festival from Pele, and has the right to increase the interest to 60-percent by funding a further $1.0-million to bring its cumulative funded exploration expenditures to $2.5 million. Goldcorp will elect whether to pursue the additional 10% interest by the earlier of year-end 2006 or sixty days following receipt of a project technical report for the bulk sampling program completed to the satisfaction of the joint management committee.
Results from the Festival bulk sample program again confirm the presence of commercial size, gem quality diamonds within the targeted ultramafic volcanics across an extensive area. Results from Cristal were similar to previous bulk sample data while the Deutz 1 (Upper) and Deutz 2 (Lower) samples indicate for the first time that the South Zone ultramafic mass flow units also contain commercial size, gem quality diamonds.
The 500 tonnes of bulk sample material were processed by DRA Americas of Lakefield, Ontario ("DRA") using magnetic separation followed by dense media treatment of the non magnetic concentrates to recover diamonds greater than 800-micron square mesh sieve size. Results are summarized as follows:
* From the 300-tonne Cristal sample, 648 diamonds were recovered weighing a combined 7.84 carats and with the largest diamond remaining on the 1.70 mm screen.
* From the 100-tonne Deutz Upper sample, 13 diamonds were recovered weighing a combined 0.49 carats and with the largest diamond remaining on the 2.36 mm screen, weighing 0.24 carats.
* From the 100-tonne Deutz Lower sample, 14 diamonds were recovered weighing a combined 0.26 carats and with the largest diamond remaining on the 1.18 mm screen.
The final report from DRA, and a final technical report for the Festival bulk sampling program are still pending. No material variations in the data reported herein are anticipated upon the final completion and reporting of the bulk sample results.
This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101. Saskatchewan Research Council is an independent ISO 17025 accredited laboratory.
About Pele Mountain Resources
Pele Mountain Resources is discovering and developing the mineral wealth of northern Ontario. Pele is focused on the exploration and development of high-grade gold zones at its 100-percent owned Highland project, within the prolific Goudreau-Lochalsh mining camp. Exploration results at Highland indicate outstanding potential for significant near-surface gold resources and existing regional infrastructure provides clear opportunities for revenue generating operations. Pele is a generative exploration company holding a diverse portfolio of gold, diamond, base metal, and uranium projects, providing exposure and leverage to discovery and to the increased global demand for natural resources. Four Pele projects are currently funded through agreements with strategic partners, including Goldcorp, Wallbridge Mining, Trigon Exploration, East West Resources and Maple Minerals (a division of Mega Uranium). Pele stock trades on the TSX Venture Exchange under the symbol "GEM".
For further information please contact Al Shefsky, President, at (416) 368-7224, or visit the Pele website at www.pelemountain.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Pele's future plans, objectives or goals, including words to the effect that Pele or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Distributed by Filing Services Canada and retransmitted by Market Wire
Contact:
Contact:
Al Shefsky
President
(416) 368-7224
--------------------------------------------------------------------------------
Source: Pele Mountain Resources Inc.
EPA Approves Permit for Peabody Plant
Wednesday August 30, 2:23 pm ET
By Jim Suhr, AP Business Writer
Peabody Energy Gets Nod From EPA for Illinois Coal-Fired Power Plant
ST. LOUIS (AP) -- Peabody Energy Corp. pressed ahead Wednesday with plans for a $2 billion power plant in southern Illinois after getting federal approval of an emissions permit environmentalists could continue to challenge.
The ruling by an Environmental Protection Agency appeals board last week affirms the issuance of the permit by Illinois' EPA for the proposed Prairie State Energy Campus. The project is to include a 1,500-megawatt, coal-fired power plant near a mine.
Bruce Nilles of the Sierra Club's Midwest Clean Energy Campaign was disappointed with the ruling, saying the federal "EPA had the opportunity to require Peabody to put forward a cleaner, safer project but instead rubber-stamped what the state had done."
The Sierra Club and other environmental and public health groups argued that the plant would release high levels of sulfur dioxide, mercury and other pollutants into the air and harm visibility in southeast Missouri's Mingo National Wildlife Refuge.
Peabody's Sutton said the new plant will have advanced pollution controls, including scrubbers that will remove 99.9 percent of fine particles and 98 percent of sulfur dioxide; Nilles countered that the project "will be adding to the existing pollution problem."
St. Louis-based Peabody, the world's largest private coal company, said its latest regulatory victory means it can line up construction and operating partners -- and financing -- for the project.
Shares of Peabody Energy fell $1.04, or 2.3 percent, to $43.33 in afternoon trading on the New York Stock Exchange.
Peabody Energy: http://www.peabodyenergy.com
Illinois Sierra Club: http://illinois.sierraclub.org
MAG Silver Announces Penoles Land Purchase at Juanicipio/Valdecanas
Wednesday August 30, 11:58 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 30, 2006 -- MAG Silver Corp. (TSX VENTURE:MAG.V - News) and Industrias Penoles S.A. de C.V. announce that Penoles has purchased surface rights within the Juanicipio Joint Venture centered on the Valdecanas Vein discovery announced in January 2006 (See press release dated January 23, 2006).
In an agreement with the land owners Penoles will pay MP$ 15,862,500 (US$ 1,469,648) for the surface rights. This payment will be applied to Penoles' earn in expenditure as per the joint venture agreement with MAG.
Combined with exploration expenditures to date Penoles will have completed approximately $US 2,457,000 of their $US 5,000,000 required expenditure to earn a 56% interest in the Juanicipio property. MAG will retain a 44% interest in Juanicipio.
Definition drilling of the Valdecanas vein has begun (see press release dated August 15, 2006).
About Penoles (www.penoles.com)
Industrias Penoles, S.A. de C.V. and its subsidiaries make up one of Mexico's largest industrial conglomerates. Since its founding in 1887, this group has been engaged in the sustainable exploitation of non-renewable natural resources. Penoles is an integral part of Grupo BAL, a private, diversified group made up of independent Mexican companies ranging from mining to insurance to retail. Penoles' productive operations are currently located in Mexico, where it operates the world's richest silver mine (Fresnillo), the world's fourth largest metallurgical complex in terms of the value of its production, and the largest sodium sulphate plant in the world. These operations make Penoles the world's largest producer of refined silver, metallic bismuth and sodium sulphate, and a leader in Latin America in refined gold, lead and zinc.
About MAG Silver Corp. (www.magsilver.com)
MAG Silver is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the Silver Mining Industry. MAG is based in Vancouver, British Columbia, Canada and trades on the TSX-V under the symbol MAG.
On Behalf of the Board of MAG Silver Corp.
Dan MacInnis, President and CEO
Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-50437 available at our office: Suite 328-550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contact:
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
info@magsilver.com
http://www.magsilver.com
Industrias Penoles S.A. de C.V.
Emilio Fandino
Investor Relations
52 (55) 5279 3250
52 (55) 5279 3217 (FAX)
Emilio_Fandino@penoles.com.mx
http://www.penoles.com.mx
--------------------------------------------------------------------------------
Source: MAG Silver Corp.
West Hawk Development Corp. update
by Fundamental Research Corp.
Date: 08 25 06
http://tinyurl.com/sxln3
Oromonte Resources Inc. (ORR) - News Release
Monday August 28, 5:21 pm ET
The company acquires over 33,000 hectares of mining concessions in Ecuador
CALGARY, Aug. 28 /CNW/ - Oromonte Resources Inc. announces that it has entered into an agreement to purchase 100 per cent of over 33,000 hectares of mining concessions close to its Nambija property and immediately adjacent to the property owned by Aurelian Resources Inc. in the Province of Zamora Chinchipe, Ecuador. The Agreement dated August 26th, 2006 has been signed between Oromonte's wholly owned subsidiary Ecuaora Resources S.A. and an arm's length Ecuadorian party. The purchase price of the concessions is payable US $50,000 upon signing and payment of the remainder of the purchase price on the date of the transfer. The granting of the mining concessions is subject to approval by the District Office of Mines of the Province of Zamora Chinchipe. Following government approval, the transfer of the mining concessions will be subject only to the final payment of the purchase price by Oromonte and there will be no further obligations between the two parties.
Burkhard Franz, President states: "Given the exploration knowledge of the region, the purchase of these concessions is a major step in adding shareholder value to the company and consistent with the company's strategic plan to increase its land position in Ecuador. The proximity of the new concessions to Oromonte's existing Nambija property and Aurelian's high grade gold discoveries at Fruta Del Norte is strategically very significant".
Exploration activity was conducted on the property in the past by Minerales del Ecuador in and around 1998. The vendor, a mining engineer, has agreed to assist the company to retrieve relevant geological information for further exploratory development.
The company's new office address is 525, 101 - 6th Avenue S.W., Calgary, Alberta T2P 3P4 Canada. Phone: (403) 262-1816, Fax: (403) 262-1826
CAUTIONARY STATEMENT
The TSX Venture Exchange does not accept responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. The News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Oromonte, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Oromonte's expectations are exploration risks detailed herein and from time to time in the filings made by Oromonte with securities regulations.
For further information
Burkhard Franz, President, Oromonte Resources Inc., Suite 525, 101-6 Ave. S.W., Calgary, AB T2P 3P4
Oromonte Resources Inc. (ORR) - News Release
Monday August 28, 5:21 pm ET
The company acquires over 33,000 hectares of mining concessions in Ecuador
CALGARY, Aug. 28 /CNW/ - Oromonte Resources Inc. announces that it has entered into an agreement to purchase 100 per cent of over 33,000 hectares of mining concessions close to its Nambija property and immediately adjacent to the property owned by Aurelian Resources Inc. in the Province of Zamora Chinchipe, Ecuador. The Agreement dated August 26th, 2006 has been signed between Oromonte's wholly owned subsidiary Ecuaora Resources S.A. and an arm's length Ecuadorian party. The purchase price of the concessions is payable US $50,000 upon signing and payment of the remainder of the purchase price on the date of the transfer. The granting of the mining concessions is subject to approval by the District Office of Mines of the Province of Zamora Chinchipe. Following government approval, the transfer of the mining concessions will be subject only to the final payment of the purchase price by Oromonte and there will be no further obligations between the two parties.
Burkhard Franz, President states: "Given the exploration knowledge of the region, the purchase of these concessions is a major step in adding shareholder value to the company and consistent with the company's strategic plan to increase its land position in Ecuador. The proximity of the new concessions to Oromonte's existing Nambija property and Aurelian's high grade gold discoveries at Fruta Del Norte is strategically very significant".
Exploration activity was conducted on the property in the past by Minerales del Ecuador in and around 1998. The vendor, a mining engineer, has agreed to assist the company to retrieve relevant geological information for further exploratory development.
The company's new office address is 525, 101 - 6th Avenue S.W., Calgary, Alberta T2P 3P4 Canada. Phone: (403) 262-1816, Fax: (403) 262-1826
CAUTIONARY STATEMENT
The TSX Venture Exchange does not accept responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. The News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Oromonte, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Oromonte's expectations are exploration risks detailed herein and from time to time in the filings made by Oromonte with securities regulations.
For further information
Burkhard Franz, President, Oromonte Resources Inc., Suite 525, 101-6 Ave. S.W., Calgary, AB T2P 3P4
Oromonte Resources Inc. (ORR) - News Release
Monday August 28, 5:21 pm ET
The company acquires over 33,000 hectares of mining concessions in Ecuador
CALGARY, Aug. 28 /CNW/ - Oromonte Resources Inc. announces that it has entered into an agreement to purchase 100 per cent of over 33,000 hectares of mining concessions close to its Nambija property and immediately adjacent to the property owned by Aurelian Resources Inc. in the Province of Zamora Chinchipe, Ecuador. The Agreement dated August 26th, 2006 has been signed between Oromonte's wholly owned subsidiary Ecuaora Resources S.A. and an arm's length Ecuadorian party. The purchase price of the concessions is payable US $50,000 upon signing and payment of the remainder of the purchase price on the date of the transfer. The granting of the mining concessions is subject to approval by the District Office of Mines of the Province of Zamora Chinchipe. Following government approval, the transfer of the mining concessions will be subject only to the final payment of the purchase price by Oromonte and there will be no further obligations between the two parties.
Burkhard Franz, President states: "Given the exploration knowledge of the region, the purchase of these concessions is a major step in adding shareholder value to the company and consistent with the company's strategic plan to increase its land position in Ecuador. The proximity of the new concessions to Oromonte's existing Nambija property and Aurelian's high grade gold discoveries at Fruta Del Norte is strategically very significant".
Exploration activity was conducted on the property in the past by Minerales del Ecuador in and around 1998. The vendor, a mining engineer, has agreed to assist the company to retrieve relevant geological information for further exploratory development.
The company's new office address is 525, 101 - 6th Avenue S.W., Calgary, Alberta T2P 3P4 Canada. Phone: (403) 262-1816, Fax: (403) 262-1826
CAUTIONARY STATEMENT
The TSX Venture Exchange does not accept responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. The News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Oromonte, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Oromonte's expectations are exploration risks detailed herein and from time to time in the filings made by Oromonte with securities regulations.
For further information
Burkhard Franz, President, Oromonte Resources Inc., Suite 525, 101-6 Ave. S.W., Calgary, AB T2P 3P4
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Source: Oromonte Resources Inc.
Rentech Comments on Recent Agreement Between DKRW and Arch Coal
Monday August 28, 9:15 am ET
Agreement Provides Platform to Expedite the Use of the Rentech Process for DKRW's Wyoming Project and Expand its Use to Other Projects
LOS ANGELES, Aug. 28 /PRNewswire-FirstCall/ -- Rentech, Inc. (Amex: RTK - News) today commented on the recently announced agreement between its technology licensee DKRW Advanced Fuels LLC, Inc. ("DRKW-AF"), a subsidiary of DKRW Energy LLC., Houston, Texas and St. Louis-based Arch Coal (NYSE: ACI - News), one of the largest coal producers in the United States, under which Arch acquired a 25 percent stake in DKRW-AF. Arch announced that it has agreed to invest $25 million in DRKW-AF, and it has entered into a new agreement whereby Arch and DKRW-AF will explore potential reserves and project opportunities in two other coal basins. DRKW-AF is developing an initial 10,000 barrel per day Wyoming coal-to-liquids (CTL) project that will utilize Rentech's patented and proprietary synthetic fuels process.
"We believe that this agreement reflects the growing recognition by leading coal companies such as Peabody Energy Corp. and Arch Coal of the unique role that our technology can play in developing a cost-effective alternative source of energy," said D. Hunt Ramsbottom, president and CEO of Rentech. "It creates the potential for the expansion of DKRW's coal-to-liquids development with a significant partner who owns large coal reserves. These projects, combined with Rentech's ongoing commercialization efforts continue to demonstrate that CTL technology and ultra clean synthetic fuels will be significant contributors to the United States' efforts regarding energy security and independence."
About Rentech, Inc.
Rentech, Inc., a Colorado corporation formed in 1981, offers energy independence solutions by utilizing American resources to economically produce ultra clean fuels. To execute this strategy it utilizes its patented and proprietary Fischer-Tropsch gas-to-liquids/coal-to-liquids process for conversion of synthesis gas made from natural gas, coal and other solid or liquid carbon-bearing materials into clean burning, ultra-low-sulfur and ultra-low-aromatic synthetic fuels.
Safe Harbor
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 such as the potential for expedited and expanded use of the Rentech's technology. These statements are based on management's current expectations and actual results may differ materially as a result of various risks and uncertainties, including those set forth in the Company's prior press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech's web site at www.rentechinc.com. Factors that could affect Rentech include, but are not limited to, market conditions demand for Rentech's technologies and fuels; the commercial success of Rentech's and its licensees' projects, none of which are currently operating; the impact of competitors and their licensees, many of whom have significantly more resources than Rentech or its licensees; Rentech's and its licensees' (including DKRW Alternative Fuels LLC) ability to secure agreements with potential developers or investors and our and their ability to obtain financing necessary to execute the planned projects (including Medicine Bow, Wyoming); a decision by development parties to move forward with a specific commercial project that would license and utilize the Rentech Process technology; the timing for completion and operation of Rentech's and its licensees' projects; the performance of Rentech's and its licensees' technologies and products; and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. Any forward-looking statements are current only as of the date made, and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.
For more information please contact: Mark Koenig, Director of Investor Relations, Rentech, Inc. at 303-298-8008, extension 116, or by email at mkir@rentk.com, or see the company's website at: www.rentechinc.com; or Kevin Theiss, CEOcast, Inc. at 212-732-4300 or by email at ktheiss@ceocast.com.
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Source: Rentech, Inc.
GREENING THE DESERT (Video Presentation) by Geoff Lawton
http://www.permaculture.org.au/greening.htm
earthfarm,
I found the above link and its story amazing.
It seems that private Australian groups are contributing much effort around the world in reclaiming land and introducing their permaculture approaches:
http://permaculture.org.au/?m=200608
earthfarm, your board has opened up my eyes to a lot of things. Admittedly I have a small, productive garden, but I will soon be expanding on to my neighbor's property (with their permission). I want to be ready for Peak Food and Peak Oil, and it all starts at the community level.
Still love that link:
The Power of Community - How Cuba Survived Peak Oil
http://www.communitysolution.org/
thanks,
sumisu
U.S. rails seek ways to haul more Wyoming coal
Sunday August 27, 2:27 pm ET
By Nick Carey
GILLETTE, Wyoming (Reuters) - The long trains that seem to be everywhere in this sparsely populated stretch of land haul nearly 1 million tons of Powder River Basin coal to power plants daily, but that's simply not enough.
Utilities are clamoring for more of this fuel, which has become a popular alternative to costly natural gas. The mines in this region, dubbed the "Saudi Arabia of coal," say they are able to increase production.
The bottleneck lies in the railroads.
Like the miners that unearth the coal, railroads must move mountains over the next few years to match the demand, said Andy Schroder, logistics director at Union Pacific Corp. (NYSE:UNP - News)
Omaha, Nebraska-based Union Pacific, the largest U.S. railroad, and second-ranked rival Burlington Northern Santa Fe Corp. (NYSE:BNI - News) own a joint 100-mile (160 kilometer) section of line here and are hauling record amounts of coal from the 10 mines in the area.
Both railroads are laying new track and are seeking ways to haul more coal, including using longer trains.
"We are adding capacity and are exploring ways to use that track more efficiently," Burlington Northern spokesman Patrick Hiatte said.
But U.S. utilities are unimpressed.
Trade group Edison Electric Institute spokesman Ed Legge said that while coal deliveries were up, many utilities were getting less than they had agreed upon -- and not enough to meet demand.
On the other hand, investors say they are pleased with the railroads' plans. The utilities, they say, are complaining because tight capacity has boosted the freight haulers' bargaining position.
"The railroads get better terms now, and the utilities don't like the prices they are being forced to take," said Michael Santelli, director of Allegiant Asset Management's $210 million midcap value fund, which owns Union Pacific stock. It also holds shares of Peabody Energy Corp. (NYSE:BTU - News) and Arch Coal Inc. (NYSE:ACI - News), which operate mines in the Powder River Basin.
LAND OF MINES AND RAILROADS
With the mile-and-a-half (2.4-kilometer) freight trains and the tall silos of the open-pit mines, the coal industry pervades this part of Wyoming. Just below this dry, high plain of the Powder River Basin lie vast thick coal seams formed millions of years ago when the area was covered in luxuriant forest.
The 10 mines in the area are owned by Anglo-Australian Rio Tinto Ltd. (Australia:RIO.AX - News; London:RIO.L - News), the world's third-largest mining company, Peabody, Arch Coal and Foundation Coal Holdings Inc.
(NYSE:FCL - News)
At its Jacobs Ranch mine, Rio Tinto scrapes away earth to reach seams 60 feet thick up to 220 feet under ground, creating a lunar landscape in the process. The coal is loosened with explosives, hauled to silos in massive trucks capable of carrying 240 tons each, and loaded onto trains.
The mine will produce 40 million tons in 2005. Rio Tinto wants to produce more, but only if the railroads can haul it away.
"We would prefer more (rail) capacity," said Kendall Glover, the mine's plant manager.
In 1985, the basin produced 19 million tons, rising to 325 million in 2005. That could reach 500 million tons by 2012 as U.S. demand for coal is set to rise further.
Powder River Basin coal is popular because it is cheap to mine and its low sulfur content means lower emissions.
The railroads have lagged behind rising demand, and utilities complain that they must import coal from countries like Columbia and Indonesia.
"This is unbelievable given the abundance of coal in the Powder River Basin," said Patrick Lavigne, spokesman for the National Rural Electric Cooperative Association.
The railroads have admitted problems matching demand, especially after two derailments in the basin within 24 hours in May 2005 resulted in a Union Pacific embargo on new coal contracts until "we can ensure consistent service for customers," said Assistant Vice President for Energy Jeff Maier.
Burlington Northern has not declared an embargo, but remains focused mostly on existing business, spokesman Hiatte said.
The two railroads announced May 8 they would invest $100 million to expand their joint line. They plan to raise the maximum number of railcars per train to 150 from 135 so they can haul 10 percent more coal.
"Unfortunately, many utilities can't take trains that long," Maier said.
Both Union Pacific and Burlington Northern say they will work to encourage utilities to lay more track at their power plants so they can accommodate longer trains.
Although the utilities are not happy, investors seem pleased with the railroads' plans for the Powder River Basin.
"We are encouraged by how the railroads have performed and behaved," said John Caldwell, chief investment strategist at McDonald Financial Group, which manages assets of $30 billion, holds Peabody stock and has owned Union Pacific shares.
Any new track is expensive and must last decades, he said, so railroads need to plan carefully for future demand.
"If coal demand falls in an economic slowdown," he said, "the railroads do not want to be left holding the bag."
IMA and Aquiline Enter Discussions on the Navidad Project Pending the Appeals Process
Sunday August 27, 4:00 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 27, 2006 -- IMA Exploration Inc. (TSX VENTURE:IMR.V - News)(AMEX:IMR - News)(FWB: IMT) (WKN 884971) ("IMA") and Aquiline Resources Inc. ("Aquiline") have entered discussions to co-operate in the orderly conduct of the Navidad Project pending the determination of the appeal by IMA against the judgment of the trial court. The order of the trial court requires that the Navidad claims be transferred to Aquiline within 60 days of the order and that Aquiline pay IMA's costs of acquisition and development of Navidad. The parties are discussing the manner in which the Navidad Project would be transferred to Aquiline on trust conditions pending completion of IMA's appeal of the judgment. One of the trust conditions would be that the Navidad Project would be transferred back to IMA if it is ultimately successful in its appeal of the judgment. These discussions are subject to the negotiation and completion of a definitive agreement, and there can be no assurances that such an agreement will be completed. If an agreement is not reached, IMA will be required to transfer the Navidad properties in accordance with the terms of the order of the trial court, unless it obtains a stay of the order from the British Columbia Court of Appeal.
IMA will maintain its excellent relations with the Navidad stakeholders and will cooperate with Aquiline to ensure that the Navidad Project proceeds to development. IMA are inviting the company managers and staff as well as the mining and government authorities, members of the first nations and all stakeholders to join the Company to continue their cooperation to see Navidad a successful reality for the benefit of the whole province of Chubut.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & CEO
Cautionary Note to U.S. Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
2006 Number 17
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contact:
Contacts:
IMA Exploration Inc.
Joseph Grosso
President & CEO
(604) 687-1828 or Toll Free: 1-800-901-0058
IMA Exploration Inc.
Sean Hurd
Vice President, Investor Relations
(604) 687-1828 or Toll Free: 1-800-901-0058
(604) 687-1858 (FAX)
info@imaexploration.com
http://www.imaexploration.com
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Source: IMA Exploration Inc.
Peak Oil Passnotes: Peak Pipelines
By Edward Tapamor
25 Aug 2006 at 12:02 PM EDT
PARIS (ResourceInvestor.com) -- The venerable and entertaining Matthew Simmons of Simmons International investment banking has managed to tweak the ear of the media once again this week. This time however it is not those nasty Saudi Arabians about which Simmons has written so much. Instead it is about pipelines.
Apparently because BP [NYSE:BP; LSE:BP] has had serious corrosion at its Prudhoe Bay North Slope Alaska operations we are heading for $300 crude. Not surprisingly he did not specify a time frame for that.
"The industry cut too many corners when prices were low. For 25 years, there was not a proper maintenance program. We backed ourselves into a system, rigs, pipelines and refineries, that rusted away. The anecdotal evidence is so widespread that it is undeniable. Until we had something as stunning as Prudhoe Bay, the industry was able to say that incidents were one-offs or that these allegations came from disgruntled employees," he said.
From this point Simmons concluded that the price of a barrel of crude will hit $300 due to it being "Pearl Harbor day" for the energy industry.
On the other hand we have the serious bear team out there. Whispers are circulating that the flood of speculative money, that people keep talking about, is about to turn into a drip. Then when the speculators exit the market, oil is going to crash back down through all its previous support levels to as low as $10.
They are both wrong. As wrong as Britney Spears' nude photo. As wrong as the invasion of Iraq. As wrong as Posh Spice's diet.
On the pipeline side the service sector - the people who lay the Goddamn things - cannot keep pace with the amount of money it is grubbing up. Companies like Schlumberger and Halliburton have astounded even the most careful of analysts with their never ending profitability. The only problem the service companies have is being able to complete all the orders they have as iron and steel and personnel costs escalate.
There are certainly problems with maintenance but it is hardly a surprise. The arrogant and often disgusting behaviour of the oil majors in the Niger Delta, shows that where they can they are quite happy to leave pipes to decay to nothing. Prudhoe Bay is nothing compared to that.
On the downside the amount of speculative monies in the crude oil market is significant, but not that much. Oil markets do not trade on single contracts, some ‘wet’ - real oil for delivery to people who want it - and some ‘paper’ - speculation. They tend to trade on spreads, basically people hedge to pieces.
Speculative money on the oil market sits around $110 billion. As an example that is roughly around a quarter of the current market cap of Exxon Mobil. Almost exactly the cumulative value of no less than Schlumberger [NYSE:SLB] and Halliburton [NYSE:HAL]. Not really that much. Take away one quarter of Exxon [NYSE:XOM] and you still have a lot of corporate value right?
Take away Schlumberger and Halliburton and you still have Baker Hughes [NYSE:BHI], Technip [NYSE:TKP], Transocean [NYSE:RIG], Saipem [OTCPK:SAPMF], Nabors [NYSE:NBR] and the rest of them. If all that money left the oil market it would shake out to the downside, of course. But it is not going to in one fell swoop.
The oil market is going to rest on the same fundamentals we plough over on this column week after week. It sounds cool to talk about price crashes or "Pearl Harbor" days but it is not the reality of the situation.
As Crude sits at around $71 there is plenty of upside left. We only need a hurricane, a belligerent statement from Iran and renewed attacks - as seem so likely - in Nigeria and $80 is here. The only real way we could ever get to $10 oil again is through a recession so great you won’t have the electricity to power your kettle let alone a computer. But then the newspapers do not like to report that. Not quite as sexy is it?