Below is an excerpt from a travel dispatch from a tour of the historic Ashdown molybdenum/gold mine in Denio, Nevada, which may not be historic anymore as it is currently producing, and doing so profitably. This is a terrific opportunity for Mark in Rhode Island and all of our loyal followers to see the project in detail without having to endure any of the hassles associated with traveling. So sit back, grab the drink of your choice, and click the picture below to enter the world of moly and gold mining with Win-Eldrich Mines (OTC OTher: WIDMF; TSX-V: WEX).
Geovic Mining (OTCBB: GVCM; TSX: GMC) has completed the staking of five square miles (13 sq. km) of mining claims at its Cornudas Mountains exploration prospect in southern New Mexico. Initial work completed by the Company indicates that the Cornudas Mountains claims host an alkaline laccolithic intrusion that contains significant concentrations of the heavy rare earth enriched mineral eudialyte. In addition to the rare earths, significant enrichment in zirconium, hafnium, tantalum, tin, yttrium and niobium have been confirmed.
Dundee Securities – As the rainy days of April keep us indoors, we’ve elected to revisit our commodity price forecasts. Not surprisingly, our forecasts have increased in tandem with rising gold and silver commodity prices. With the sunny days of spring just around the corner, we anticipate gold (and perhaps to a slightly lesser extent silver) will continue to shine in the near-term given the ongoing perfect storm for commodity prices. While the recent increase in the price of bullion is no doubt in part a function of the depreciation in the greenback, there are many other drivers for gold going forward, including:
· Concerns regarding European banks who continue to wrestle with the Greek and other PIIGS debt (cue the currency printers) have led global investors to continue to seek a store of value outside paper currencies and the banking system with gold and other precious metals standing to benefit.
· Global political tensions continue to run high (Libya, Syria, Yemen, Afghanistan – need we say more?) and are weighing on the minds of investors. While we’d prefer everyone to just get along, global unease continues to cultivate an environment conducive to potent precious metal prices.
· China continues to represent a key source of demand for bullion. With government-imposed regulations restricting the purchase of multiple real estate properties and inflation taking a toll on most other investments, Chinese investors continue to seek a safe-haven for their savings with gold being a logical destination for the time being.
Silver has strongly outperformed gold in 2011, and the gold:silver ratio is near multi-year lows (Figures 1 and 2). While the relationship between gold and silver has been volatile, over- and under-shooting the long-term trend line by considerable margins, the ratio has tended to center around 60:1 over the past ten years or so. Given the current imbalance, we would not be surprised to see gold outperform silver, but only after investors push silver past its all-time record of US$54/oz.
We have been asked many times what could signal the end of the current bull run in precious metals. While we could point to possible future indicators such as rising real interest rates and/or an appreciating US dollar, in simple terms it will likely be the end of concerns, or fear, surrounding the world’s economy, a scenario that appears unlikely for some time to come.
MUMBAI - Despite a 100% jump in price in just over six months from October 2010, demand for the silver metal refuses to die in India.
Traders and analysts insist that silver demand will climb further this year, as investors across the country pick up on their purchases sensing an even bigger price-hike around the corner.
On October 26, 2010, silver was quoting around $ 799.96 a kilo in Mumbai. At Thursday’s closing price of around $ 1,647.36, the increase is over 100%, in just six months.
“Silver prices are set to extend a record rally,” said Ketan Shroff, managing director of Pushpak Bullions in Mumbai. “Consumers are rushing in to grab more for the forthcoming Akshaya Tritiya festival,” he said.
Golden Alliance Resources (OTC Other: GLNCF; TSX-V: GLL) has appointed Normand Champigny as President, Chief Operating Officer and Director of the Company. Former President Joseph Grosso has been appointed Chairman, and will continue in his role as Chief Executive Officer and Director with Golden Alliance, providing ongoing leadership and guidance to the Company.
By way of background, Normand is a senior mining professional with 30 years of international practice mostly with world-leading consultancy organizations. From 2009 to present, he was part of PricewaterhouseCoopers’ Americas’ Mining Centre of Excellence. Previous experience include: Executive Vice President for Azimut Exploration Inc. (2006-2009), Associate Partner with IBM Business Consulting Services as Americas Mining Industry Leader (2002-2006), and Principal Consultant for the Mining Industry Group with PricewaterhouseCoopers Consulting (2000-2002).
“The addition of Mr. Champigny to our executive team is a significant milestone in the corporate development of our Company. His demonstrated knowledge and experience in the industry will be a valuable asset for Golden Alliance’s growth as a mineral exploration company in Peru” stated Mr. Grosso.
RANTING ANDY – Well, it looks like I was right about the mining stocks getting hit in front of the Fed announcement, as clearly Benny and Co. leaked to their colleagues at JP Morgan and Goldman Sachs that they were going to announce an unending money-printing spree today, necessitating a suppression of mining stocks so as to not have them at all-time highs when the announcement was made.
But that’s not surprising at all. What is, however, is just how SOLD OUT the entire silver industry has become, nearly overnight in fact!
In the past week, with FAKE, PAPER silver hovering in the mid-$40s, REAL, PHYSICAL silver was selling in the low-mid $50s. On Sunday night, PAPER SILVER rocketed up to nearly $50/oz on news the Chinese are planning to sell up to two-thirds of their dollar reserves, before the inevitable pre-COMEX Options expiration (Tuesday), pre-Fed announcement (Wednesday) smash that took paper silver down below $45 in less than 24 hours. As usual, nearly the entire drop occurred immediately upon opening of the COMEX at 8:20 am EST, by the way.
Teryl Resources (OTC Other: TRYLF; TSX-V: TRC) has has received a preliminary assessment for its Gil Joint Venture Gold Property in Alaska.
The measured, indicated and inferred resources contained at the Gil/JV gold property, which total 514,916.3 ounces of gold, were determined using a cutoff grade of 0.015 oz Au/ton in order to correspond with the heap-leach ore cutoff grade currently employed at the Fort Knox gold mine. The purpose of this preliminary assessment was to estimate NPV and IRR at the Gil/JV gold property.
The two assessments made certain assumptions, including the price of gold. Using $1,500 gold, the NPV of the project using a 10% discount rate was approximately $74.5 million resulting in an IRR of 459%. Using $1,048 gold, the NPV of the project using a 10% discount rate was approximately $31.3 million resulting in an IRR of 207%. These figures represent 10o% interest in the Gil property, of which 20% is attributable to Teryl.
For our readers who, like me, grew up with Bono and his band U2, you may recall one of their hit songs, Still Haven’t Found What I’m Looking For. And if you’re an exploration mining company, that would be the worst/last choice for a theme song. Fortunately for Nemaska Exploration (OTC Other: NMKEF; TSX-V: NMX), which continues to find excellent width and high-grade intersections at its Whabouchi lithium project, that song is entirely not applicable.
To this end, the Company has drilled 8,909 metres across 43 holes which continue to illustrate the high-grade nature of the main mineralized zone and confirm the presence of smaller dykes to the South of the Main zone. Highlights include: 53.5 m at 1.81% Li2O, 39.6 m at 1.56% Li2O, 13.5 m at 1.81% Li2O and 17.0 m at 1.71% Li2O. The results of the initial 22 holes have been released on March 24, April 11 and 20, 2011.
Eagle Star Minerals (OTC Other: ELGSF; TSX-V: EGE) has completed stage 1 of an exploration program its Angico Iron Project in Northeast Brazil and has commenced the stage 2, which will be more extensive and include up to 5,000 metres of core drilling.
The first stage of exploration included mapping, sampling, ground magnetometer surveys, trenching and 500 meters of scout drilling. Results from the work completed to date demonstrate significant mineralization at depth and along strike. The results of trenching on the company’s largest block, Cavaleiro, indicated the presence of significant high grade Banded Iron Formation which extends at least 2km along a strike of 8 km with some of the samples returning 44.66% Fe2O3 across 39 metres and 51.98% Fe2O3 across 18 metres.