Wednesday, September 16, 2009
Major move in gold tonight at 1:45 AM
A quick late night post at 1:45 AM. Gold just made a $7 spike move in a 1 minute period. This is unheard of in Asia so it is something to watch tomorrow to see if there is any follow through.
Tuesday, September 8, 2009
Barrick moves to eliminate hedges
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_Rt2xgQeWvY
Why is this bullish?
Barrick hedged (went short) millions of ounces of gold that has cost them billions of dollars as the price has risen 8 straight years. They had agreements with the bullion banks that they would never have to cover their short, just roll them over year to year. This had the effect of suppressing the gold price although as one can see over the years, it just slowed down gold's movement higher.
If Barrick thought $1,000 was a top, they would have no reason to cover their short (hedge) as a declining price would help their financial situation. No, Barrick thinks the gold run is just beginning and wants to get out of their short position NOW even though it is costing them billions. Maybe they believe the Chinese when they say they are buying gold and will continue to do so to diversify away from the USD.
I had to laugh at all of the top callers in gold today. They are a joke and are laughed at by those who understand the real gold story.
Speaking of stories, we should finally get back to discussing Oro Gold drill results tomorrow.
Why is this bullish?
Barrick hedged (went short) millions of ounces of gold that has cost them billions of dollars as the price has risen 8 straight years. They had agreements with the bullion banks that they would never have to cover their short, just roll them over year to year. This had the effect of suppressing the gold price although as one can see over the years, it just slowed down gold's movement higher.
If Barrick thought $1,000 was a top, they would have no reason to cover their short (hedge) as a declining price would help their financial situation. No, Barrick thinks the gold run is just beginning and wants to get out of their short position NOW even though it is costing them billions. Maybe they believe the Chinese when they say they are buying gold and will continue to do so to diversify away from the USD.
I had to laugh at all of the top callers in gold today. They are a joke and are laughed at by those who understand the real gold story.
Speaking of stories, we should finally get back to discussing Oro Gold drill results tomorrow.
Monday, September 7, 2009
A concise picture of why gold is moving higher
I don't often post full length articles but the missive below lays out for all why gold is now moving higher:
stateside
Adrian Douglas: A run on the Bank of the Gold Cartel
Submitted by cpowell on Mon, 2009-09-07 18:15. Section: Daily Dispatches
By Adrian Douglas
Monday, September 7, 2009
An interview by MineWeb with GFMS CEO Paul Walker is headlined, "This May Not Be the Gold Rally You Have Been Waiting for":
http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=88713&sn=Detai...
The sub-headline says, "The GFMS CEO does not believe this is the rally that will sustain gold above $1,000 an ounce."
Well, it looks like Walker has just given a way a lot more information than he intended.
Walker "believes that the recent jump in the gold price is the result of 'a few fairly significant lumpy transactions' that have gone through the market at a time when he, and his colleagues at GFMS maintain, there has been a degree of illiquidity. Speaking to Mineweb, Walker said that although gold still has some upside potential, the current jump, if anything, represents 'a little more downside risk in the short term.'"
I have recently described what is going on in the physical market to be the equivalent of a "run on the Bank of the Gold Cartel." There are many factors that are leading to that conclusion and here are just a few:
-- China is a confirmed large buyer of gold, along with Russia.
-- Germany has apparently asked for its sovereign gold stored in New York to be returned.
-- Hong Kong is repatriating its sovereign gold from London and will be the repository for gold to back the Shanghai Futures Exchange.
-- Greenlight Capital sold $500 million of the GLD exchange-traded fund and bought physical bullion.
-- The European Central Bank gold sales have dried up to almost nothing.
-- AnglogoldAshanti has reduced its hedges to less than one year of production.
-- Central banks are net buyers of gold for the first time in more than 20 years.
-- China has declared its right to default on commodity derivatives.
-- China is encouraging its citizens to buy gold and silver.
-- The contango on silver and gold has almost disappeared.
-- Gold and silver movements from the COMEX warehouses are inconsistent with the delivery notices.
-- Mine supply of gold continues to contract.
And Walker is talking of "significant lumpy transactions." What does that mean?
My guess is that he can be referring only to the physical market and that it means that some big players have asked for delivery of gold in large quantities.
Walker says this has come at a time when "there has been a degree of illiquidity." What does that mean? It means that the Gold Cartel doesn't have the gold to meet these large deliveries.
Remember that GFMS recently published its second quarter report on the gold market. I wrote a critical analysis of this report:
http://www.gata.org/node/7699
I pointed out that GFMS, with a blatant manipulation of the statistics, had turned a 2 percent growth in gold demand to an 8.6 percent decline. This was because central banks had turned net buyers of gold in the quarter and GFMS excluded their purchases from the demand statistics because, in GFMS' words, central banks traditionally are a source of supply.
Now we learn that the gold market is illiquid. Isn't it disingenuous at best or fraudulent at the worst to turn a 2 percent demand surge into an 8.6 percent plunge just when the market is drying up, knowing full well this report is widely followed? It also brings into question the motives of the World Gold Council, which commissions the GFMS reports.
There is nothing new about the scam perpetrated by the Gold Cartel. Goldsmiths as early as the 16th century invented the fraud of "fractional reserve banking." They found that customers would buy gold from them but not take it away, leaving it with them for safe keeping. As long as the goldsmiths had a gold bar to show a new customer, they could sell him gold and give him a deposit receipt. The gold bar then was returned to the vault and could be sold several times over. The goldsmiths discovered that the "safe" buffer of gold to have in inventory was about 10 percent, as that was in practice the typical maximum demand they would see from customers wanting to take delivery.
I estimate that today 1 ounce of gold backs about 20 ounces of gold sales. Just like 500 years ago, investors are prepared to accept a paper IOU for gold in lieu of physical gold -- whether that IOU be in the form of pool accounts, futures, derivatives, unbacked ETFs, etc. Just as it did in history, the game will come to an end when there is a demand for physical that cannot be met.
As recently as 2005 Morgan Stanley was selling precious metals that did not exist. The firm even had the audacity to charge customers a storage fee for non-existent metal. The firm settled a class-action suit, admitting no wrongdoing, because, in the words of a company spokesman, no investor lost money and each investor was given metal or cash. As far as I know there has been no criminal action. But since when did the definition of criminal activity depend on no one having lost any money at the time a crime was discovered?
So if Morgan Stanley had rediscovered the old scam of the goldsmiths, what are the chances this firm was the only ones doing it?
What is curious is that GFMS' Walker offers investment advice that encourages investments in instruments that will not require gold to be delivered to customers. He singles out the Paulson Fund as a shining example, as it invested in Anglogold and ETFs and, MineWeb reports, he suggests that we should all follow that trend:
"As an example of this Walker says hedge fund manager John Paulson's strong move into gold could well have had an effect.
"'There's no doubt that the gurus in the market will definitely bring people along with them. And, as you say, John Paulson's made a lot of his stake in AngloGold; very large positions in ETFs. And I think a lot of people will be looking at somebody who's got one of the largest hedge funds in the world, saying maybe this guy knows something that we don't know and, given that he's made tremendously good calls in the recent past, maybe we should just in a sense trend-follow him and get on the back of this."
Now isn’t that convenient advice just as the gold market is becoming "illiquid"?
The GFMS Internet site says "GFMS can claim to be the only genuinely independent researchers of the gold market, as we do not rely solely on financial support from one sector of the industry. You can trust us to give it to you straight."
I don't get a feeling there is much straight talking coming out of GFMS.
"In the 1980s inflation was running high; gold prices went down. And conversely, if you have a look at the very low rate of inflation we've had in the last seven or eight years, that's when we've had the bull rally. Without getting into too many technicalities, I think that's because we have some rather curious ways of measuring inflation rather than the actual fundamental issue underlying price trends, and housing would be just one example of that."
And GFMS claims that we can trust it to give it to us straight!
Walker is alluding to the manipulated Consumer Price Index and Producer Price Index, where everything that is going up is systematically excluded or given less weight. So if Walker knows that there is a government manipulation of price indices "without getting into too many technicalities," I wonder how he explains why gold -- which serves only one real purpose, to store wealth instead of storing fiat paper alternatives -- does not have a price in fiat money terms that has kept pace with the manipulated CPI and PPI.
The answer is simple. The gold supply has been artificially inflated at a rate similar to that of fiat money by supplementing mine supply and central bank dishoarding with a blizzard of paper IOU gold. In this way the gold price is suppressed. The Gold Cartel hasn't cared about the damage inflicted on the mining industry, because why bother to mine gold when you can create paper substitutes?
But every time in history when this has been done there eventually has been a "bank run" when it was revealed that the gold in the vaults had been encumbered or sold many times over.
This is what is beginning to happen right now. The market is entering a very different phase. As the run on the Bank of the Gold Cartel gathers pace, the price moves are going to shock even the most bullish. The usual shenanigans of the cartel to turn the market down by selling a blizzard of paper future gold promises will be impotent against a marauding crowd of investors hungry for real gold.
-----
Adrian Douglas is publisher of the Market Force Analysis letter (www.MarketForceAnalysis.com) and a member of GATA's Board of Directors.
stateside
Adrian Douglas: A run on the Bank of the Gold Cartel
Submitted by cpowell on Mon, 2009-09-07 18:15. Section: Daily Dispatches
By Adrian Douglas
Monday, September 7, 2009
An interview by MineWeb with GFMS CEO Paul Walker is headlined, "This May Not Be the Gold Rally You Have Been Waiting for":
http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=88713&sn=Detai...
The sub-headline says, "The GFMS CEO does not believe this is the rally that will sustain gold above $1,000 an ounce."
Well, it looks like Walker has just given a way a lot more information than he intended.
Walker "believes that the recent jump in the gold price is the result of 'a few fairly significant lumpy transactions' that have gone through the market at a time when he, and his colleagues at GFMS maintain, there has been a degree of illiquidity. Speaking to Mineweb, Walker said that although gold still has some upside potential, the current jump, if anything, represents 'a little more downside risk in the short term.'"
I have recently described what is going on in the physical market to be the equivalent of a "run on the Bank of the Gold Cartel." There are many factors that are leading to that conclusion and here are just a few:
-- China is a confirmed large buyer of gold, along with Russia.
-- Germany has apparently asked for its sovereign gold stored in New York to be returned.
-- Hong Kong is repatriating its sovereign gold from London and will be the repository for gold to back the Shanghai Futures Exchange.
-- Greenlight Capital sold $500 million of the GLD exchange-traded fund and bought physical bullion.
-- The European Central Bank gold sales have dried up to almost nothing.
-- AnglogoldAshanti has reduced its hedges to less than one year of production.
-- Central banks are net buyers of gold for the first time in more than 20 years.
-- China has declared its right to default on commodity derivatives.
-- China is encouraging its citizens to buy gold and silver.
-- The contango on silver and gold has almost disappeared.
-- Gold and silver movements from the COMEX warehouses are inconsistent with the delivery notices.
-- Mine supply of gold continues to contract.
And Walker is talking of "significant lumpy transactions." What does that mean?
My guess is that he can be referring only to the physical market and that it means that some big players have asked for delivery of gold in large quantities.
Walker says this has come at a time when "there has been a degree of illiquidity." What does that mean? It means that the Gold Cartel doesn't have the gold to meet these large deliveries.
Remember that GFMS recently published its second quarter report on the gold market. I wrote a critical analysis of this report:
http://www.gata.org/node/7699
I pointed out that GFMS, with a blatant manipulation of the statistics, had turned a 2 percent growth in gold demand to an 8.6 percent decline. This was because central banks had turned net buyers of gold in the quarter and GFMS excluded their purchases from the demand statistics because, in GFMS' words, central banks traditionally are a source of supply.
Now we learn that the gold market is illiquid. Isn't it disingenuous at best or fraudulent at the worst to turn a 2 percent demand surge into an 8.6 percent plunge just when the market is drying up, knowing full well this report is widely followed? It also brings into question the motives of the World Gold Council, which commissions the GFMS reports.
There is nothing new about the scam perpetrated by the Gold Cartel. Goldsmiths as early as the 16th century invented the fraud of "fractional reserve banking." They found that customers would buy gold from them but not take it away, leaving it with them for safe keeping. As long as the goldsmiths had a gold bar to show a new customer, they could sell him gold and give him a deposit receipt. The gold bar then was returned to the vault and could be sold several times over. The goldsmiths discovered that the "safe" buffer of gold to have in inventory was about 10 percent, as that was in practice the typical maximum demand they would see from customers wanting to take delivery.
I estimate that today 1 ounce of gold backs about 20 ounces of gold sales. Just like 500 years ago, investors are prepared to accept a paper IOU for gold in lieu of physical gold -- whether that IOU be in the form of pool accounts, futures, derivatives, unbacked ETFs, etc. Just as it did in history, the game will come to an end when there is a demand for physical that cannot be met.
As recently as 2005 Morgan Stanley was selling precious metals that did not exist. The firm even had the audacity to charge customers a storage fee for non-existent metal. The firm settled a class-action suit, admitting no wrongdoing, because, in the words of a company spokesman, no investor lost money and each investor was given metal or cash. As far as I know there has been no criminal action. But since when did the definition of criminal activity depend on no one having lost any money at the time a crime was discovered?
So if Morgan Stanley had rediscovered the old scam of the goldsmiths, what are the chances this firm was the only ones doing it?
What is curious is that GFMS' Walker offers investment advice that encourages investments in instruments that will not require gold to be delivered to customers. He singles out the Paulson Fund as a shining example, as it invested in Anglogold and ETFs and, MineWeb reports, he suggests that we should all follow that trend:
"As an example of this Walker says hedge fund manager John Paulson's strong move into gold could well have had an effect.
"'There's no doubt that the gurus in the market will definitely bring people along with them. And, as you say, John Paulson's made a lot of his stake in AngloGold; very large positions in ETFs. And I think a lot of people will be looking at somebody who's got one of the largest hedge funds in the world, saying maybe this guy knows something that we don't know and, given that he's made tremendously good calls in the recent past, maybe we should just in a sense trend-follow him and get on the back of this."
Now isn’t that convenient advice just as the gold market is becoming "illiquid"?
The GFMS Internet site says "GFMS can claim to be the only genuinely independent researchers of the gold market, as we do not rely solely on financial support from one sector of the industry. You can trust us to give it to you straight."
I don't get a feeling there is much straight talking coming out of GFMS.
"In the 1980s inflation was running high; gold prices went down. And conversely, if you have a look at the very low rate of inflation we've had in the last seven or eight years, that's when we've had the bull rally. Without getting into too many technicalities, I think that's because we have some rather curious ways of measuring inflation rather than the actual fundamental issue underlying price trends, and housing would be just one example of that."
And GFMS claims that we can trust it to give it to us straight!
Walker is alluding to the manipulated Consumer Price Index and Producer Price Index, where everything that is going up is systematically excluded or given less weight. So if Walker knows that there is a government manipulation of price indices "without getting into too many technicalities," I wonder how he explains why gold -- which serves only one real purpose, to store wealth instead of storing fiat paper alternatives -- does not have a price in fiat money terms that has kept pace with the manipulated CPI and PPI.
The answer is simple. The gold supply has been artificially inflated at a rate similar to that of fiat money by supplementing mine supply and central bank dishoarding with a blizzard of paper IOU gold. In this way the gold price is suppressed. The Gold Cartel hasn't cared about the damage inflicted on the mining industry, because why bother to mine gold when you can create paper substitutes?
But every time in history when this has been done there eventually has been a "bank run" when it was revealed that the gold in the vaults had been encumbered or sold many times over.
This is what is beginning to happen right now. The market is entering a very different phase. As the run on the Bank of the Gold Cartel gathers pace, the price moves are going to shock even the most bullish. The usual shenanigans of the cartel to turn the market down by selling a blizzard of paper future gold promises will be impotent against a marauding crowd of investors hungry for real gold.
-----
Adrian Douglas is publisher of the Market Force Analysis letter (www.MarketForceAnalysis.com) and a member of GATA's Board of Directors.
Thursday, September 3, 2009
Thoughts on today........................
- gold has broken out of it's wedge formation. Once it breaks $1,000 and closes above it for 3 days, a re-test of $1,000 will set the floor and gold should run to $1,200 during this phase.
- gold and silver juniors have awaken. The move over the next 6 months will surprise even the most optimistic gold bug.
- Now is the time to be "all-in"
- I came across a junior exploring for gold in Portugal that has been overlooked by the market; more on this one later.
- Decade Resources (DEC.V) news release today got the markets attention.....and mine.
- gold and silver juniors have awaken. The move over the next 6 months will surprise even the most optimistic gold bug.
- Now is the time to be "all-in"
- I came across a junior exploring for gold in Portugal that has been overlooked by the market; more on this one later.
- Decade Resources (DEC.V) news release today got the markets attention.....and mine.
Tuesday, August 18, 2009
Hudson Resources (HUD) - Last of the REE's to move
I will put out a report in the next few weeks on Hudson Resources (HUD.V). The news out of China yesterday restricting their REE exports has lit a fire under the REE's. Hudson has yet to make a major move and the stock is in tight hands. A double to $.60 in the next few weeks is not out of the question and $1 by the end of September (while they are drilling) is a possibility. For those with little or no REE exposure, this is the one to move next. By the way, I am still buying shares so you'll have to fight me for them :).
Wednesday, August 12, 2009
MJM.V should be a double from today's close at $.22
Based on the news below, MJM.V will have $2.5 million in cash and $2.2 million worth of Seabridge shares or over $.50/share of cash/shares. I don't own any shares but would buy as much as I could under $.30 tomorrow.
Max Minerals Ltd
Symbol MJM
Shares Issued 8,617,491
Close 2009-08-11 C$ 0.22
Max Minerals to sell 22 claims to Seabridge
2009-08-12 18:14 ET - News Release
Mr. Andriyko Herchak reports
MAX SELLS 22 MINERAL CLAIMS
Max Minerals Ltd. has entered into an agreement with Seabridge Gold Inc. to sell a 100-per-cent interest in 22 mineral claims totalling 8,975 hectares (approximately 22,160 acres) immediately adjacent to Seabridge's 100-per-cent-owned KSM project located in British Columbia. On closing of the transaction, which is expected to occur within 30 days, Seabridge will pay Max $1.0-million in cash, issue Max 75,000 common shares of Seabridge and grant Max a 2.5-per-cent net smelter royalty (NSR) on the claims being purchased. The purchased claims are also subject to a 2-per-cent NSR in favour of the original owner of the claims under which Seabridge would be required to pay 10 annual advance royalty payments of $100,000 each, ending in 2018, which amounts would be credited against any payments due under the 2-per-cent NSR. Closing of the transaction is subject to regulatory approval.
Max Minerals Ltd
Symbol MJM
Shares Issued 8,617,491
Close 2009-08-11 C$ 0.22
Max Minerals to sell 22 claims to Seabridge
2009-08-12 18:14 ET - News Release
Mr. Andriyko Herchak reports
MAX SELLS 22 MINERAL CLAIMS
Max Minerals Ltd. has entered into an agreement with Seabridge Gold Inc. to sell a 100-per-cent interest in 22 mineral claims totalling 8,975 hectares (approximately 22,160 acres) immediately adjacent to Seabridge's 100-per-cent-owned KSM project located in British Columbia. On closing of the transaction, which is expected to occur within 30 days, Seabridge will pay Max $1.0-million in cash, issue Max 75,000 common shares of Seabridge and grant Max a 2.5-per-cent net smelter royalty (NSR) on the claims being purchased. The purchased claims are also subject to a 2-per-cent NSR in favour of the original owner of the claims under which Seabridge would be required to pay 10 annual advance royalty payments of $100,000 each, ending in 2018, which amounts would be credited against any payments due under the 2-per-cent NSR. Closing of the transaction is subject to regulatory approval.
Sunday, August 9, 2009
Why you should laugh at the oil top callers
As CNBC and Bloomberg parade out guest after guest who say oil is over-priced and the CNBC bubbleheads can't understand why oil is staying high, remember that most of these hosts and guests have never traveled outside of the USA. They can't understand why oil goes up when the weekly US oil inventories show weak US demand. If they traveled to China, they would have their answer. They are, like most Americans, ignorant when it comes to international matters and will never understand why the US no longer calls the shots:
http://www1.investorvillage.com/smbd.asp?mb=4923&mn=61118&pt=msg&mid=7719797
China’s July Car Sales Rise 70.5%, Most Since 2006
By Bloomberg News
Aug. 7 (Bloomberg) -- China’s passenger-vehicles sales rose 70.5 percent in July, the biggest gain since January 2006, as tax cuts and government subsidies spurred demand in the world’s third-largest economy.
Automakers sold 832,596 cars, sport-utility vehicles and other passenger vehicles last month, the China Association of Automobile Manufacturers said today. Overall vehicle sales, including trucks and buses, rose 64 percent from a year earlier to 1.09 million.
Car sales have risen more than 45 percent for the past three months after the government cut retail taxes and began handing out subsidies to reverse a demand slump. General Motors Co., the largest overseas automaker in China, and Nissan Motor Co. both intend to add capacity in the country, which is set to surpass the U.S. as the world’s largest auto market this year.
“Sales in the second half will continue to be strong, even if there’s a slight slowdown in growth rates,” said Ricon Xia, an analyst at Daiwa Research Institute in Shanghai. “Not only has demand for small cars been good, bigger vehicles have started to recover as well.”
Car sales jumped 47 percent in May and 48 percent in June. The July figure was 4.6 percent lower than the June tally. In the first seven months, sales rose 31 percent to 5.37 million, the automakers’ group said in a statement.
SAIC Motor Corp., China’s biggest domestic automaker and a GM partner, has more than tripled this year in Shanghai trading. It fell 5.6 percent to 17.27 yuan today before the sales figures were announced. Dongfeng Motor Group Co., the largest automaker listed in Hong Kong, lost 4.4 percent to HK$7.59 in the city.
GM, China FAW
GM boosted sales 78 percent last month after rural subsidies spurred demand for minivans, which account for about 60 percent of its sales. The Detroit-based automaker expects to form a commercial-vehicle venture with China FAW Group Corp. by the end of the year, its head of international operations, Nick Reilly, said earlier this month.
Nissan and partner Dongfeng Motor announced plans on July 29 to build a new plant in Guangzhou, southern China. The factory will raise their venture’s total capacity to 700,000 vehicles a year.
China’s overall vehicle sales rose 23 percent in the first seven months to 7.2 million. By contrast, U.S. sales slumped 32 percent to 5.8 million. Congress has approved a bill to inject $2 billion more into a ‘cash for clunkers’ program to help revive demand.
http://www1.investorvillage.com/smbd.asp?mb=4923&mn=61118&pt=msg&mid=7719797
China’s July Car Sales Rise 70.5%, Most Since 2006
By Bloomberg News
Aug. 7 (Bloomberg) -- China’s passenger-vehicles sales rose 70.5 percent in July, the biggest gain since January 2006, as tax cuts and government subsidies spurred demand in the world’s third-largest economy.
Automakers sold 832,596 cars, sport-utility vehicles and other passenger vehicles last month, the China Association of Automobile Manufacturers said today. Overall vehicle sales, including trucks and buses, rose 64 percent from a year earlier to 1.09 million.
Car sales have risen more than 45 percent for the past three months after the government cut retail taxes and began handing out subsidies to reverse a demand slump. General Motors Co., the largest overseas automaker in China, and Nissan Motor Co. both intend to add capacity in the country, which is set to surpass the U.S. as the world’s largest auto market this year.
“Sales in the second half will continue to be strong, even if there’s a slight slowdown in growth rates,” said Ricon Xia, an analyst at Daiwa Research Institute in Shanghai. “Not only has demand for small cars been good, bigger vehicles have started to recover as well.”
Car sales jumped 47 percent in May and 48 percent in June. The July figure was 4.6 percent lower than the June tally. In the first seven months, sales rose 31 percent to 5.37 million, the automakers’ group said in a statement.
SAIC Motor Corp., China’s biggest domestic automaker and a GM partner, has more than tripled this year in Shanghai trading. It fell 5.6 percent to 17.27 yuan today before the sales figures were announced. Dongfeng Motor Group Co., the largest automaker listed in Hong Kong, lost 4.4 percent to HK$7.59 in the city.
GM, China FAW
GM boosted sales 78 percent last month after rural subsidies spurred demand for minivans, which account for about 60 percent of its sales. The Detroit-based automaker expects to form a commercial-vehicle venture with China FAW Group Corp. by the end of the year, its head of international operations, Nick Reilly, said earlier this month.
Nissan and partner Dongfeng Motor announced plans on July 29 to build a new plant in Guangzhou, southern China. The factory will raise their venture’s total capacity to 700,000 vehicles a year.
China’s overall vehicle sales rose 23 percent in the first seven months to 7.2 million. By contrast, U.S. sales slumped 32 percent to 5.8 million. Congress has approved a bill to inject $2 billion more into a ‘cash for clunkers’ program to help revive demand.
Tuesday, July 21, 2009
July Investor Alert Now Available
Good Evening,
I've posted the July Investor Alert on Knick Exploration (KNX) at the top left of the web page. If after doing your due diligence you choose to purchase shares, do not chase the stock. Let the price come to you in the $.28-$.32 range. The initial IPO was done at $.50 so there is still room for this to run until the first set of results are released in August. This stock has:
- high grade gold
- safe jurisdiction
- no cheap shares or warrants
- 10 million shares out
- mid-depth potential as previous holes only went down 200 meters
- no other newsletter coverage (this is the first write-up)
- hot gold camp
- fully funded for current drill program
- no debt
- no retail chatter at all
- complete unknown
- currently drilling
- first twinning, then going deep (oro gold?)
- most important - 1st day of trading as Knick Exploration was on my birthday :)
stateside
I've posted the July Investor Alert on Knick Exploration (KNX) at the top left of the web page. If after doing your due diligence you choose to purchase shares, do not chase the stock. Let the price come to you in the $.28-$.32 range. The initial IPO was done at $.50 so there is still room for this to run until the first set of results are released in August. This stock has:
- high grade gold
- safe jurisdiction
- no cheap shares or warrants
- 10 million shares out
- mid-depth potential as previous holes only went down 200 meters
- no other newsletter coverage (this is the first write-up)
- hot gold camp
- fully funded for current drill program
- no debt
- no retail chatter at all
- complete unknown
- currently drilling
- first twinning, then going deep (oro gold?)
- most important - 1st day of trading as Knick Exploration was on my birthday :)
stateside
Monday, July 20, 2009
July Investor Alert
Hi,
I'm in the process of finalizing my July Investor Alert. It is a gold junior currently drilling that has only 10 million shares out and should announce high grade gold intercepts of 3-4 meters over 70-80 g/t in August. I'm somewhat reluctant due to the extremely tight share structure but the enticing double or triple is winning me over. They are a new 2009 company and were "born" on my birthday so the gold Gods are saying "yes". I own 7,000 shares right now having bought them over the last few weeks and I'm hoping the shares stay in this range so that investors can get in on the play at relatively low prices (still 40% below their PP price) once I release the report. I should have it ready by Wednesday.
stateside
I'm in the process of finalizing my July Investor Alert. It is a gold junior currently drilling that has only 10 million shares out and should announce high grade gold intercepts of 3-4 meters over 70-80 g/t in August. I'm somewhat reluctant due to the extremely tight share structure but the enticing double or triple is winning me over. They are a new 2009 company and were "born" on my birthday so the gold Gods are saying "yes". I own 7,000 shares right now having bought them over the last few weeks and I'm hoping the shares stay in this range so that investors can get in on the play at relatively low prices (still 40% below their PP price) once I release the report. I should have it ready by Wednesday.
stateside
Sunday, July 19, 2009
Still working on the format for a weekly webcast
I've changed my mind now a few times on the format of a weekly webcast I want to put together for download. The thought is to provide the headline, stock symbol and # of outstanding shares for companies that issue significant press releases during the week. This will help those who can't catch every important story and allow them to start to do their own due diligence on a stock. I may have something this weekend but most likely next week.
stateside
stateside
Sunday, July 12, 2009
ORO GOLD COMPLETES $12 MILLION PRIVATE PLACEMENT
I expect a news release this week on as few as 2 or as many as 4 holes.
ORO GOLD COMPLETES $12 MILLION PRIVATE PLACEMENT
Oro Gold Resources Ltd. (“Oro Gold” or the “Company”) (TSX-V: OGR) is pleased to announce that it has closed its private placement financing previously announced on June 17, 2009 (the “Offering”). The Company issued 17,200,000 units of the Company for aggregate gross proceeds of $12,040,000. Each unit, priced at $0.70, consists of one common share and one-half of one common share purchase warrant; each whole warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $1.00 until January 7, 2011.
The Company intends to use the net proceeds of the Offering for additional exploration and development on the Company’s 100% owned Trinidad gold property in Mexico and for working capital and general corporate purposes.
Wellington West Capital Markets Inc. acted as lead underwriter and book-runner on behalf of a syndicate of underwriters including Canaccord Capital Corporation and Blackmont Capital Inc. (collectively, the “Underwriters”). The Company paid a cash commission to the Underwriters in the amount of $772,800 and issued to the Underwriters 1,104,000 warrants, each exercisable to acquire one common share of the Company at a price of $0.70 until January 7, 2011.
The common shares issued pursuant to the Offering and the common shares issuable upon the exercise of the warrants are subject to a statutory hold period which expires November 8, 2009.
About Oro Gold
Oro Gold is a publicly-listed junior gold exploration company with 11 projects located in Mexico and Panama. The district scale 651 km2 Trinidad property continues to be the company’s top priority project and the main focus of exploration and resource definition efforts. Oro Gold’s corporate mandate is to maintain low costs in gold resource acquisition and discovery while growing the company’s gold assets to attract producing companies.
ON BEHALF OF THE BOARD OF DIRECTORS
Darren Bahrey
President and CEO
ORO GOLD COMPLETES $12 MILLION PRIVATE PLACEMENT
Oro Gold Resources Ltd. (“Oro Gold” or the “Company”) (TSX-V: OGR) is pleased to announce that it has closed its private placement financing previously announced on June 17, 2009 (the “Offering”). The Company issued 17,200,000 units of the Company for aggregate gross proceeds of $12,040,000. Each unit, priced at $0.70, consists of one common share and one-half of one common share purchase warrant; each whole warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $1.00 until January 7, 2011.
The Company intends to use the net proceeds of the Offering for additional exploration and development on the Company’s 100% owned Trinidad gold property in Mexico and for working capital and general corporate purposes.
Wellington West Capital Markets Inc. acted as lead underwriter and book-runner on behalf of a syndicate of underwriters including Canaccord Capital Corporation and Blackmont Capital Inc. (collectively, the “Underwriters”). The Company paid a cash commission to the Underwriters in the amount of $772,800 and issued to the Underwriters 1,104,000 warrants, each exercisable to acquire one common share of the Company at a price of $0.70 until January 7, 2011.
The common shares issued pursuant to the Offering and the common shares issuable upon the exercise of the warrants are subject to a statutory hold period which expires November 8, 2009.
About Oro Gold
Oro Gold is a publicly-listed junior gold exploration company with 11 projects located in Mexico and Panama. The district scale 651 km2 Trinidad property continues to be the company’s top priority project and the main focus of exploration and resource definition efforts. Oro Gold’s corporate mandate is to maintain low costs in gold resource acquisition and discovery while growing the company’s gold assets to attract producing companies.
ON BEHALF OF THE BOARD OF DIRECTORS
Darren Bahrey
President and CEO
Thursday, June 18, 2009
Oro Gold increases financing size to 12.9 million units
Oro Gold increases financing size to 12.9 million units
2009-06-17 08:41 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD ANNOUNCES INCREASE IN PRIVATE PLACEMENT TO UP TO $12 MILLION
Oro Gold Resources Ltd. has increased the size of its private placement previously announced in Stockwatch on June 16, 2009, to 12.9 million units of the company for gross proceeds of $9.03-million. Each unit, priced at 70 cents, will consist of one common share and one-half common share purchase warrant; each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $1 per share for 18 months from the closing date. The units will be subject to a four-month hold period from the closing date.
The syndicate of underwriters for the offering is led by Wellington West Capital Markets Inc., and includes Canaccord Capital Corp. and Blackmont Capital Inc.
The underwriters shall also have the option exercisable up to 48 hours prior to closing to increase the size of the offering by up to an additional 4.3 million units, for gross proceeds under the offering of $12.04-million, if exercised in full.
The offering is expected to close on or about July 7, 2009, and is subject to applicable regulatory approvals.
We seek Safe Harbor.
2009-06-17 08:41 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD ANNOUNCES INCREASE IN PRIVATE PLACEMENT TO UP TO $12 MILLION
Oro Gold Resources Ltd. has increased the size of its private placement previously announced in Stockwatch on June 16, 2009, to 12.9 million units of the company for gross proceeds of $9.03-million. Each unit, priced at 70 cents, will consist of one common share and one-half common share purchase warrant; each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $1 per share for 18 months from the closing date. The units will be subject to a four-month hold period from the closing date.
The syndicate of underwriters for the offering is led by Wellington West Capital Markets Inc., and includes Canaccord Capital Corp. and Blackmont Capital Inc.
The underwriters shall also have the option exercisable up to 48 hours prior to closing to increase the size of the offering by up to an additional 4.3 million units, for gross proceeds under the offering of $12.04-million, if exercised in full.
The offering is expected to close on or about July 7, 2009, and is subject to applicable regulatory approvals.
We seek Safe Harbor.
Sunday, June 14, 2009
Buy Sam a Drink and Get His Dog One Too..........
Being born and raised in Pittsburgh and being there for the 91 and 92 Stanley Cups, I'm still on Cloud Nine after "The Save" Friday Night. Here's the last 10 seconds of the game.
http://www.youtube.com/watch?v=kANbgKP6seM
http://www.youtube.com/watch?v=kANbgKP6seM
Thursday, June 11, 2009
Oro Gold News
Today's trading in Oro Gold is all the evidence you need to understand why 90% of retail investors lose money on exploration plays and 90% of institutions make money. Oro Gold will be over $1 by the end of next Friday.
Oro Gold drills 30 metres of 6.3 g/t Au at Trinidad
2009-06-11 10:05 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD DRILLS 6.3 G/T GOLD OVER 30 METRES AND EXTENDS NEW HIGH-GRADE ZONE AT TRINIDAD PROJECT, MEXICO June 11, 2009
Oro Gold Resources Ltd. has released gold assay results received for three more diamond drill holes that expand the new gold zone toward the south at the Taunus target on its Trinidad property near Mazatlan, Mexico.
09TR019 returned 6.3 grams per tonne gold over 30 metres, including 17.6 grams per tonne gold over 4.5 metres. This is the first diamond drill hole that has been drilled from the west side of the abandoned pit, and intersected the new breccia gold zone approximately 20 metres south of recently reported high-grade gold results in 09TR015 and 09TR016. The hole was lost prior to reaching its planned depth with the last three metres averaging 2.3 g/t gold, indicating additional potential at depth.
09TR020 returned 5.3 g/t gold over 13.4 metres and 4.1 g/t gold over 12.9 metres in two distinct zones. This confirms that the gold mineralization continues to the south by more than 200 metres from the initial high-grade zone discovered by Oro Gold in holes 08TR012, 09TR015 and 09TR016.
These zones are interpreted to be near vertical, with a true width of 12 and 11 metres, respectively. "This continued drilling success demonstrates that we are onto a very significant gold discovery at Trinidad," commented Oro Gold's vice-president, Frank Powell. "Hole 09TR020 continues to grow the high-grade gold zone into a new area, suggesting significant depth potential and is open in multiple directions. We are now planning to extend our drilling program into the summer, in order to continue moving forward with the goal to add more high-grade gold ounces to our resource base."
09TR018 returned narrow intervals in the range of one to three g/t gold, interpreted to be located near a fault which has offset mineralization.
Core hole From (m) To (m) Interval (m) Gold (g/t) Recovery (%)
09TR018 137.4 140.0 2.6 1.0 98
169.0 170.5 1.5 2.6 97
197.2 205.7 8.5 0.9 78
223.5 229.8 6.3 0.9 56
09TR019 178.5 208.5 30.0 6.3 67
Including 192.0 196.5 4.5 17.6 53
234.0 237.0 3.0 2.3 75
09TR020 165.0 177.9 12.9 4.1 92
221.5 234.9 13.4 5.3 79
Note: Interval widths may not represent true widths.
SIGNIFICANT PREVIOUSLY REPORTED GOLD INTERVALS IN DIAMOND
DRILL HOLES
Core hole From (m) To (m) Interval (m) Gold (g/t)
08TR012 151.0 212.1 61.1 8.5
08TR013 147.0 180.6 33.6 3.8
including 160.9 168.2 7.3 15.8
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR015 124.0 189.9 65.9 5.3
including 124.0 166.5 42.5 7.6
09TR016 160.9 221.5 60.6 3.4
including 160.9 197.4 36.5 5.2
High-grade gold mineralization is now delineated over a 350-metre length and down to a depth of 200 metres below surface. The spacing between the diamond drill holes range between 20 to 100 metres. The high-grade portion of the mineralized breccia zone is averaging above five g/t gold. Step-out holes 09TR021 and 22 are in progress, testing the new zone at depth and along strike. Additional information, including location maps and figures pertaining to the continuing diamond drill program, can be viewed at the latest Trinidad drilling link on Oro Gold's home page. As well, a short production on Oro Gold's exploration activity at the Trinidad project will be broadcasted on six networks, including BNN and 120 United States stations, starting June 22, 2009. The video will be made available for viewing on Oro Gold's website soon.
The company has accomplished one of the objectives, in confirming the gold grade of the mineralized zones at the Taunus target is much higher than what has been reported in reverse-circulation holes, and is now focused on defining and expanding the new high-grade breccia zone discovered by Oro Gold. Meeting these objectives is expected to have a positive impact on the company's reported National Instrument 43-101 inferred oxide gold resource of 200,930 ounces contained in 4.5 million tonnes at an average grade of 1.4 g/t gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in 2008 and it does not include the high-grade gold results from the diamond drilling. The Taunus gold target is interpreted as an oxidized, low-to-intermediate, sulphidation, epithermal vein system. The mineralization is characterized by multiphase stockwork veining and hydrothermal brecciation hosted in a clastic, unit, quartz, feldspar porphyry intrusive and andesite volcanics. Oro Gold has identified 10 other gold targets within the 650-square-kilometre Trinidad district that require follow-up exploration. Based on what the company is accomplishing at the Taunus gold target with diamond drilling, this will aid in further defining and prioritizing these additional targets toward drilling. Oro Gold's technical team is interpreting this district to be situated in a northwest-trending structural corridor that extends for at least 80 kilometres formed by active, deep-seated, major fault structures. There is evidence of this in the recent drilling, based on intersecting a thick clastic and conglomerate sequence that has a vertical profile exceeding more than 250 metres in depth. The Taunus deposit is interpreted to be hosted in a local pull-apart basin within this trend.
Oro Gold drills 30 metres of 6.3 g/t Au at Trinidad
2009-06-11 10:05 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD DRILLS 6.3 G/T GOLD OVER 30 METRES AND EXTENDS NEW HIGH-GRADE ZONE AT TRINIDAD PROJECT, MEXICO June 11, 2009
Oro Gold Resources Ltd. has released gold assay results received for three more diamond drill holes that expand the new gold zone toward the south at the Taunus target on its Trinidad property near Mazatlan, Mexico.
09TR019 returned 6.3 grams per tonne gold over 30 metres, including 17.6 grams per tonne gold over 4.5 metres. This is the first diamond drill hole that has been drilled from the west side of the abandoned pit, and intersected the new breccia gold zone approximately 20 metres south of recently reported high-grade gold results in 09TR015 and 09TR016. The hole was lost prior to reaching its planned depth with the last three metres averaging 2.3 g/t gold, indicating additional potential at depth.
09TR020 returned 5.3 g/t gold over 13.4 metres and 4.1 g/t gold over 12.9 metres in two distinct zones. This confirms that the gold mineralization continues to the south by more than 200 metres from the initial high-grade zone discovered by Oro Gold in holes 08TR012, 09TR015 and 09TR016.
These zones are interpreted to be near vertical, with a true width of 12 and 11 metres, respectively. "This continued drilling success demonstrates that we are onto a very significant gold discovery at Trinidad," commented Oro Gold's vice-president, Frank Powell. "Hole 09TR020 continues to grow the high-grade gold zone into a new area, suggesting significant depth potential and is open in multiple directions. We are now planning to extend our drilling program into the summer, in order to continue moving forward with the goal to add more high-grade gold ounces to our resource base."
09TR018 returned narrow intervals in the range of one to three g/t gold, interpreted to be located near a fault which has offset mineralization.
Core hole From (m) To (m) Interval (m) Gold (g/t) Recovery (%)
09TR018 137.4 140.0 2.6 1.0 98
169.0 170.5 1.5 2.6 97
197.2 205.7 8.5 0.9 78
223.5 229.8 6.3 0.9 56
09TR019 178.5 208.5 30.0 6.3 67
Including 192.0 196.5 4.5 17.6 53
234.0 237.0 3.0 2.3 75
09TR020 165.0 177.9 12.9 4.1 92
221.5 234.9 13.4 5.3 79
Note: Interval widths may not represent true widths.
SIGNIFICANT PREVIOUSLY REPORTED GOLD INTERVALS IN DIAMOND
DRILL HOLES
Core hole From (m) To (m) Interval (m) Gold (g/t)
08TR012 151.0 212.1 61.1 8.5
08TR013 147.0 180.6 33.6 3.8
including 160.9 168.2 7.3 15.8
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR015 124.0 189.9 65.9 5.3
including 124.0 166.5 42.5 7.6
09TR016 160.9 221.5 60.6 3.4
including 160.9 197.4 36.5 5.2
High-grade gold mineralization is now delineated over a 350-metre length and down to a depth of 200 metres below surface. The spacing between the diamond drill holes range between 20 to 100 metres. The high-grade portion of the mineralized breccia zone is averaging above five g/t gold. Step-out holes 09TR021 and 22 are in progress, testing the new zone at depth and along strike. Additional information, including location maps and figures pertaining to the continuing diamond drill program, can be viewed at the latest Trinidad drilling link on Oro Gold's home page. As well, a short production on Oro Gold's exploration activity at the Trinidad project will be broadcasted on six networks, including BNN and 120 United States stations, starting June 22, 2009. The video will be made available for viewing on Oro Gold's website soon.
The company has accomplished one of the objectives, in confirming the gold grade of the mineralized zones at the Taunus target is much higher than what has been reported in reverse-circulation holes, and is now focused on defining and expanding the new high-grade breccia zone discovered by Oro Gold. Meeting these objectives is expected to have a positive impact on the company's reported National Instrument 43-101 inferred oxide gold resource of 200,930 ounces contained in 4.5 million tonnes at an average grade of 1.4 g/t gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in 2008 and it does not include the high-grade gold results from the diamond drilling. The Taunus gold target is interpreted as an oxidized, low-to-intermediate, sulphidation, epithermal vein system. The mineralization is characterized by multiphase stockwork veining and hydrothermal brecciation hosted in a clastic, unit, quartz, feldspar porphyry intrusive and andesite volcanics. Oro Gold has identified 10 other gold targets within the 650-square-kilometre Trinidad district that require follow-up exploration. Based on what the company is accomplishing at the Taunus gold target with diamond drilling, this will aid in further defining and prioritizing these additional targets toward drilling. Oro Gold's technical team is interpreting this district to be situated in a northwest-trending structural corridor that extends for at least 80 kilometres formed by active, deep-seated, major fault structures. There is evidence of this in the recent drilling, based on intersecting a thick clastic and conglomerate sequence that has a vertical profile exceeding more than 250 metres in depth. The Taunus deposit is interpreted to be hosted in a local pull-apart basin within this trend.
Friday, June 5, 2009
On the look out for the next Oro Gold and Underworld Resources
As I'm not one to cease doing research just because one of my plays (Oro Gold) is on the verge of a major break-out, I've been looking this week for the next under $.20 stock that has the potential to be a 5 bagger like Oro Gold (OGR) and Underworld Resources (UW). As you know, those are few and far between but I may have come across a stock that has the potential to break-out over the next few weeks. The stock is Northern Tiger Resources (NTR.V) and I've put out a quick short story report on them which is linked on my website at the top left. Take the time to do some more research on them this weekend as their Nightmusic zone looks awful inviting. The share structure is tight which is one of the ingredients needed for a major move up in price. Once the story gets out that it is high grade gold and on trend to the Underworld Resources discovery, the price may move quickly. I've been buying shares this week under $.20 but it is difficult to buy in blocks without the price moving up quickly.
There has been a major rush to stake ground near the Underworld discovery but any drilling by other companies will be months away. Northern Tiger will be drilling this month now that they closed their $1 million private placement. As always, please do your own due diligence and sell 1/3 to 1/2 when the stock doubles.
There has been a major rush to stake ground near the Underworld discovery but any drilling by other companies will be months away. Northern Tiger will be drilling this month now that they closed their $1 million private placement. As always, please do your own due diligence and sell 1/3 to 1/2 when the stock doubles.
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