Monday, January 12, 2009

Double your money every year for 10-15 years

Based on the Yamana press release today, Gualcamayo will give Golden Arrow (GRG) $2 million a year in royalties with their 1% NSR.....and nows the good can buy the entire company right now net of cash/no debt for under $2 million. Just think, spend under $2 million and get a 100% return every year for the next 10-15 years. Brought to you courtesy of the irrational junior market. Sure beats .05% you can get from Treasuries.


Gold Production Estimates (oz) 2009E 2010E----------------------------------------------------------------------
Chapada 140-155,000 135-145,000
El Penon (GEO) 435-465,000 460-480,000
Sao Francisco 75-85,000 90-115,000
Gualcamayo 195-210,000 220-235,000
Jacobina 115-125,000 120-140,000
San Andres 70-,000 70-80,000
Brasileiro 90-95,000 85-95,000
Minera Florida (GEO) 105-110,000 110-120,000
Sao Vicente 55-60,000 50-55,000
Alumbrera 55-60,000 50,000

Gualcamayo, ArgentinaStart-up and commissioning commenced at Gualcamayo in December 2008 with the first gold pour at the end of 2008. Completion of the primary crusher is expected by the end of February as planned. The Company is commissioning the ADR plant and commercial production remains on track for the end of the second quarter of 2009. Gold inventory of mined material exceeded 45,000 ounces at the end of December 2008 and continues to increase. The Company has committed to the construction of the Amelia Ines and Magdalena open pit satellite deposits which is expected to contribute to overall production by second half of 2009. An update to the initial feasibility study relating to the QDD Lower West deposit is expected by the end of January 2009. Total production for the year at Gualcamayo is expected to be approximately 195,000 to 210,000 ounces of gold at a cash cost of between $380-400 per ounce.

Wednesday, January 7, 2009

There's life after all in the Utica Shale

Although still no word on flow rates.

Jan 07, 2009 01:26 ET
Questerre Updates Their Quebec Yamaska Activities


Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) updated operations for the St. Francois du Lac and St. Louis de Richelieu horizontal wells on the Yamaska permits in the St. Lawrence Lowlands, Quebec.Operated by its partner, both horizontal wells were successfully frac'd. Frac operations went according to plan and on schedule. On initial flow back the wells have co-produced burnable gas and frac fluids at varying rates.

The frac plugs were only just recently drilled out with minor operational delays. Tubing has been run in the hole to complete the well for long term production testing which will also assist in lifting the frac fluids for final clean up of the wells. We anticipate it will take several weeks for final clean up of the wells and determination of a final stabilized production rate equivalent to a '30-day rate'.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "These are the two first horizontal wells in the Lowlands and are another step in a multi-well pilot program to evaluate the commerciality of the Quebec shale plays. They represent a critical step in our technical understanding of the Quebec shales and we are obviously pleased with how well the frac operations were carried out. "Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect.

These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.This news release does not constitute an offer of securities for sale in the United States.

These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

Friday, January 2, 2009

Unknown $4 million market cap gold company with a $20-25 million NSR

While we wait for the Forest Oil results, I have put togther a report on a $4 million market cap company with only 15 million shares outstanding that is in the hot junior gold space right now. They have a 1% NSR on a major mining project that will begin production this month. This will generate $20-25 million net profit to this company over the mines 10 year life. This small company is a prime candidate to be purchased by a larger royalty company at a price three times it's current market cap. If anyone is interested in the report, send me an email and I'll send it to you beefore I release it to the public sometime during the middle of next week.

Forest Oil misses their self-imposed deadline

The end of the year has come and gone and Forest Oil has not yet disclosed their preliminary results of their horizontal drilling. I choose not to read too much into this either positively or negatively but it hurts Forest Oil's credibility with analysts and investors when they can't meet their own objectives. No word from Talisman either as these two companies continue to be ultra-secretive as if protecing their young from predators.

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