Ted Butler: Sheer speculation? Submitted by cpowell on Tue, 2007-11-27 21:15. Section: Daily Dispatches
4:15p ET Tuesday, November 27, 2007
Dear Friend of GATA and Gold:
Silver market analyst Ted Butler's new commentary, "Sheer Speculation?," speculates that Chinese interests are the big shorts in the silver market.
Butler notes that Chinese interests have been caught manipulating commodity markets before; that China is the major processor of silver; and that as a huge consumer of commodities, China has great motive to suppress their prices.
You can find Butler's new commentary at GoldSeek's companion site, SilverSeek, here:
CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc.
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San Bartolome has become a very promising silver development project in one of the world’s most - prolific silver-producing regions -
The San Bartolome property is located on the flanks of Cerro Rico mountain near Potosi, a historic mining center located in southern Bolivia.
Since its discovery in 1545, this world class mining district has produced an estimated 2 billion ounces of silver.
Coeur has made considerable progress at its San Bartolome silver project in the historic Cerro Rico silver district near the town of Potosi, Bolivia.
Based on a comprehensive pre-feasibility study and subsequent geological work, Coeur initially calculated a silver resource of 122 million contained ounces, of which 93 percent was classified as measured and indicated.
This has since been increased to 126.6 million contained ounces.
The pre-feasibility study also demonstrated San Bartolome to be an economically viable mining project at a $5.00 per ounce silver price.
This was based on an annual production rate of six million ounces of silver for a minimum of eight years, projected total cash costs of $3.50 per ounce and an estimated capital cost n the early stage of between $60 million and $65 million, including working capital requirements.
Results from the pre-feasibility study were very encouraging and the Company elected to proceed to a final feasibility study with all data to be rigorously reviewed by independent third party geological and engineering consulting firms.
Coeur’s wholly-owned Bolivian subsidiary, Empresa Minera Manquiri, S.A., was awarded a grant of $760,000 by the U.S.
Trade and Development Agency to assist with the study`s completion.
In addition to commencing work on a final feasibility study, Coeur has made excellent progress on a number of other initiatives which should enhance project economics:
Acquired additional exploration and mining rights adjacent to the Company`s San Bartolome project that are known to contain significantly higher grade material
Secured special tax incentives available to the Potosi region of Bolivia, particularly lower value-added taxes and import duties that could reduce project working capital requirements by as much as $6 million.
Signed water supply and electric power agreements at very competitive rates, well below projections in the pre-feasibility study.
Completed a detailed study of a number of process flow sheet improvements, including an alternative tailings disposal plan, that collectively will reduce capital requirements.
ESTIMATED RESOURCE: 126.6 MILLION CONTAINED OUNCES.
Although the final feasibility study will not be completed until later in 2002, preliminary indications are that projected total cash costs can be reduced to at least $3.25 per ounce of silver and possibly lower and that the project is economically attractive at silver prices as low as $4.50 per ounce.
Furthermore, the Company has received some very favorable metallurgical data on the possible economic recovery of tin as a by-product and is currently examining this opportunity to increase the economic returns of the project.
Total proven and probable reserves of more that 150 million ounces of silver are contained in surface gravel deposits, or pallacos, which lend themselves to simple, low-tech surface-mining techniques.
When Coeur first acquired the San Bartolome silver project late in 1999, it was little more than an exploration property.
As a result of the dedicated efforts of the Company`s geologists and engineers, San Bartolome has become a very promising silver development project in one of the world’s most - prolific silver-producing regions.
PROJECT OPTIMIZATION OPPORTUNITIES
• Acquired additional exploration and mining rights
• Secured special tax incentives available to the Potosi region
• Signed water supply and electric power agreements at very competitive rates
• Completed a detailed study of a number of process flow sheet improvements .
All facets of the project are currently being evaluated.
San Bartolome’s silver mineralization is contained in gravel-like channel deposits on the sides of Cerro Rico mountain called “sucus” and “pallacos.”
The latest sampling program revealed some of these deposits to be up to 30 per cent thicker than initial testing had indicated.
In addition, not all of the deposits at San Bartolome have been examined in detail and further exploration could result in additions to the present resource.
Coeur is very pleased with results to date of its activities in Bolivia and is in the process of examining other opportunities in the country which could build upon the value of San Bartolome’s silver resource.
A break of resistance at 15.13/15.14 will do - to return a better measure of confidence to the underlying bull uptrend -
I think the San Barto project - wlll open up the rich Cerro Rico - veins from the side - and to open up a good incline - wide for trucks to drive up and down? - to ventilate the Golden oldies workings? -
The largest Silver producer in the world - CDE is contructing a nice new production plant at - the border to - FMNJ Cerro Rico mine property -
Total proven and probable reserves of more that 150 million ounces of silver are contained in surface gravel deposits, or pallacos, which lend themselves to simple, low-tech surface-mining techniques. Of the several pallaco deposits which are controlled by Coeur and surround Cerro Rico mountain, three are of primary importance and are known as Huacajchi, Diablo (consisting of Diablo Norte, and Diablo Este) and Santa Rita.
The facilities will be located near established industrial infrastructure in the historically silver-rich area of Potosí, Bolivia, where more than two billion ounces of silver have been mined.
The building of the new mine is expected to generate as many as 1,000 local jobs during construction, and approximately 200 full-time jobs during operations.
The project will also establish a foundation, called Fundespo, to assist in the development of new local industries, such as silversmithing and tourism.
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