September, which is historically the best performing month for gold prices, has officially come to a conclusion. Accordingly, it is time to review’s gold performance over the last 30 days. On Augut 31, 2010, gold closed at $1,246 per ounce. Halfway through September, we reported that gold had reached a high of $1,278.30, resulting in an increase of $32.30 per ounce or 2.6%. Well, gold’s momentum continued for most of the rest of September and gold closed at $1,307.50, resulting in an increase of $61.50 per ounce or 4.94%, nearly twice the historical September increase of 2.5%. In our mid-September post, https://babybulltwits.wordpress.com/2010/09/16/mid-september-gold-check/, we predicted that gold would outperform its historical results. So, what do we see for the balance of 2010? The answer is “somewhere North of where we are today.” A lot can happen between now and the end of the year, but we think gold will end up between $1,360 and $1,375 an ounce. As we said in mid-September, stay tuned.
In an announcement out this morning, Nortec Minerals (TSX-V: NVT and OTC: NMNZF) released news on their engagement of engineering firm Watts Griffis McOuat to prepare an NI 43-101 compliant resource estimate and technical report for their 100% owned Lantinen Koillismaa PGE+Au-Cu-Ni (“LK”) Project located in Northern Finland. This is great news for Nortec and a move that we have been anticipating for some time.
The LK Project consists of the Kaukua, Lipeavaara and Haukiaho Zones. Nortec has carried out over 10,000 metres of diamond core drilling on the Kaukua Zone since 2007 and over 7,000 metres of historical diamond drilling was performed on the Haukiaho Zone since the 1960’s. Nortec has not carried out any drilling to date on the Haukiaho Zone. The LK project has a combined surface area of over 3,200 hectares and covers a PGE+Au-Cu-Ni mineralized Marginal Series hosted within a sequence of mafic and ultramafic layered intrusions. Based on the current drilling information, the Kaukua mineralization is open down-dip and along strike to the west and south. The Company believes that the LK Project can host several large – tonnage PGE+Au-Cu-Ni deposits amenable to low cost open pit methods. Detailed drill results on the Kaukua Zone can be referred to in the Company’s previous press releases. Almost 90% of the 38 holes drilled by Nortec and 10 holes drilled by GTK returned significant mineralized intercepts.
A back of the envelope calculation for PGE’s, (platinum group metals), gold and base metal values produces a very big number (in the billions of dollars of in-situ metal value) so we expect that the conversion of the large set of drill and exploration data compteted to date at LK to the NI 43-101 standards will reveal significant enterprise value for this project (which is just one of the many project areas in Nortec’t portfolio) that the market is not recognizing presently.
A full overview of the LK property is available in the Company’s corportate presentation: http://babybulls.com/PDF/NMCorp_Presentation_April_2010.pdf
Advanced Explorations Announces $2.8 Million Financing/Partnership with Shandong Fulun Steel CompanySeptember 30, 2010
Advanced Explorations Inc. (TSX-V: AXI and OTC: ADEXF) released more blockbuster news this morning with the announcement of a second strategic partner to develop its portfolio of proven iron ore projects. Today’s release outlines Shandong Fulun Steel Companys’ investment of $2.8 million into Advanced at a price of $0.40 per share, as well as the framework for mutual cooperation in the potential development of AEI’s other iron ore projects not pursued by its recently announced strategic partner, XinXing Pipes Group Ltd. (“XXP”).
Shandong Fulun Steel Company Limited is a private company based in China with annual revenue of approximately $1.85 billion, fixed assets of around 15.8 billion yuan ($2.2 billion US) and employs roughly 7,000 workers.
Commenting on the news, Mr. John Gingerich, CEO of Advanced Explorations stated: “We are extremely pleased that we have successfully expanded our network of support in the Chinese steel industry. Building a relationship with Shandong Fulun Steel provides a broader range of development opportunities for our projects and iron ore assets. Our recently announced strategic agreement with XinXing Pipes Group provides a solid foundation to build the Company and a clear framework for mutually beneficial project development. We expect the relationship with Fulun Steel to compliment the lead efforts of our strategic partner, XXP. AEI has established supportive partnerships and a valuable team from which to grow the company and move our assets forward to development. In concluding this deal, the Company believes it now has the networks and development commitments in place to pursue an aggressive growth agenda without the need of additional near term financings. Management will now focus on implementing its strategic agreements and growing value (share price) for our shareholders.”
JOHANNESBURG – It was only a little more than a week ago when analysts were wondering if the price of silver was going to break above $20 an ounce. Not only did it blast through this level of resistance, it continued upwards through $21 an ounce, and now it is testing the $22 level.
Like gold, silver is a monetary metal and can be traded around the world. And, like gold, silver has proven itself, time and again, to be a safe haven for investors during times of economic uncertainty. While it is a lot more volatile than gold, it is the one precious metal that I believe will ultimately yield the greatest return compared to gold, platinum and palladium. Even though the price has touched a 30 year high, it is still way below its all time high. If adjusted for inflation and using the previous high of $50 an ounce achieved in 1980, the price of silver today should be around $130 an ounce.
GRONINGEN – As concerns about the state of the global economy grow, gold is going to continue to regain its position as money.
This is the view of Gold Money founder James Turk. Speaking on Mineweb.com’s Gold Weekly Podcast, Turk says at the moment, ” People are looking at the various currency problems around the world, and regardless of where you focus – Asia, Europe and even North America, the demand for physical metal remains quite strong.”
BENONI (Gold Forecaster) – Hindsight is always a satisfying exercise, because you have all the facts, you know what happened eventually and you simply have to find the reasoning that is now established by history. Forecasters can be judged efficiently as to whether they were right or wrong in the light of history after the event, only.
Forecasting is an entirely different matter because you have no facts from the future. What you do have is the past and the present. Now you have to extrapolate these forward to construct tomorrow’s picture. This requires giving each its due portion in that future and its correct weighting together with a good dash of insight. Hopefully you will do the job well and be correct. This may sound simple but it isn’t. To help you look forward we look at the last decade in the gold market.
BERLIN (Reuters) – Uncertainty over the global economic outlook and expectations for a weaker U.S. dollar should see gold prices reach eye-watering heights in the coming year, topping record highs set earlier on Tuesday.
Delegates at the London Bullion Market Association’s annual conference raised their already bullish forecast for the gold price in a poll conducted at the end of the gathering in Berlin, with expectations for the price to hit $1,450 an ounce by next September.
BERLIN (Reuters) – Investing in gold is likely to be a winning strategy for pension funds whether spot prices of the precious metal rise or fall, the gold fund manager of the Teacher Retirement System of Texas told Reuters on Sunday.
Speaking on the sidelines of the London Bullion Market Association’s annual conference here, Shayne McGuire, director of global research at the TRS, said a lack of correlation with other assets made the metal a key portfolio diversifier.
VANCOUVER, Sep. 29, 2010 (Canada NewsWire via COMTEX News Network) — TSX: GGA and OTC: GGAZF
Goldgroup Mining Inc. (“Goldgroup” or the “Company”), in coordination with DynaResource, Inc. (“DynaUSA”-“DYNR-OTCBB”), is pleased to announce that, further to the news release dated September 20, 2010, a new multi-drill 18,500 metre diamond drilling program has commenced at the San Jose’ de Gracia* high grade gold project (“San Jose’ de Gracia”) in Sinaloa, Mexico.
Keith Piggott, CEO of Goldgroup stated, “We have been extremely successful with the drilling programs at San Jose’ de Gracia and I’m especially pleased with the recent results from the Tres Amigos zone where we recently announced results of 105.51 grams per ton over 1.75 metres. This next round of drilling will give us the opportunity to further explore many new targets in San Jose’ de Gracia’s high grade multi-vein system. We also anticipate the release of an updated NI 43-101 mineral resource estimate early in Q4”.
At around 4:30am this morning Beijing time – Xinxing Pipes Group – Advanced Explorations’ (TSX-V: AXI and OTC: ADEXF) new joint venture partner at the Roche Bay iron ore project posted all the content of the recently signed Agreement in an announcement, followed with the following comment:
1. the signing of this frame agreement will bring upstream expansion for XXP, and it is beneficial for XXP’s growth.
2. Canada is a country which has rich natural resources and is center of global mining financing industry. If XXP and AEI can succeed in future JV cooperation, XXP can use this JV as a platform to secure stable ore supply and then promote XXP’s core competitiveness.
This type of announcement is quite rare and speaks well for this recent transcation. On September 27, 2010 AXI announced the signing of an Agreement with Xinxing Pipe’s subsidiary, Xinxing Ductile Iron Pipes Co., Ltd. (“XDIP”) and its affiliate China Huaxin International Trade Co., Ltd. (“HIT”) wherein XDIP and HIT have jointly agreed to acquire 19% of AEI’s issued and outstanding stock at a price of $0.25 per share and valued at approximately $5,300,000 (equals 21,233,396 common shares to be issued). The Agreement also sets out principles for further direct investment into AEI or the establishment of a joint venture in order to complete a definitive feasibility study (“DFS”) for AEI’s Roche Bay Project by providing $20,000,000 to the Roche Bay JV to complete the DFS and a further $30,000,000 of working capital to the Roche Bay JV upon completion of the DFS. In addition, XDIP has agreed to provide the necessary financing and development capital for AEI’s Roche Bay Project to a maximum of $1 billion.