December 31, 2010
We would like to wish everyone “Happy New Year!” As 2011 nears, we hope and expect to continue providing our readers with meaningful industry and company-specific news and information. We also plan to offer more and better unique content, including audio and video clips of our client companies. And if there is something you would like to see from us that we are not currently doing, please ask.
Here is to a terrific 2011. Happy New Year!
December 30, 2010
For everyone following the development of iron ore junior Eagle Star Minerals (TSX-V: EGE and OTC: ELGSF), their CEO, Mr. Eran Friedlander was interviewed by Prospectingjournal.com recently and that interview was posted to the site on December 29, 2010. Eran recently returned from visiting the Company’s flagship Angico iron ore project in Piaui, Brazil and we are expecting results in the first part of 2011 from phase one of the exploration campaign.
We have included the interview below wherein Eran discusses the project as well as expected near term catalysts, and restates the Company’s mission – which is to develop a 1 billion tonne iron ore resource in Brazil.
ANALYSIS – ProspectingJournal.com – December 29, 2010 – VANCOUVER, BC – Over the next six years the world is going to become more and more familiar with Brazil and what it has to offer on a global stage. While billions of eyes are set on Brazil’s preparation for two of the world’s largest sporting events (FIFA World Cup 2014, Summer Olympics 2016), many in the investment community have been closely following the rapid and exciting development within Latin America as a whole. Built up on the successes of oil giant PetroBras [PBR – NYSE] and mining goliath Vale [VALE – NYSE], the Brazilian economy has been steadily opening up through better transparency, efficient government regulations and high-potential openings for smaller international companies looking for their piece of the Brazilian dream. One company that is seeking to harness this potential is Eagle Star Minerals [EGE – TSX.V], based out of Vancouver, Canada.
“Brazil is a very attractive country for junior resource companies to operate in. After all, the regime is very similar to what we encounter here in North America. Everything is well regulated by the government, with the National Department of Mineral Production (DNPM) (in the case of the mining industry) granting concessions and making sure that stakeholders fulfill their commitments”, says Eagle Star’s President and CEO, Eran Friedlander.
“The prolific mining and oil and gas sectors of Brazil were state-owned for many years, and only recently have been opened up to the rest of the world. The result has been the creation of many opportunities for finding large deposits in Brazil for junior public companies, like ours. This is a major benefit to companies like Eagle Star who are positioned to take advantage of the opportunities as they arise.”
December 30, 2010
(Kitco News) – Comex gold futures are little changed in Thursday morning New York action, as the market consolidates above the $1,400.00 per ounce level for the third session in a row. Silver futures pushed to a fresh 30-year high in early New York trading.
The metals markets remain well bid heading into year-end as they continue to offer traders a safe-haven against uncertainty regarding the health of the euro-zone, the pace of recovery in the U.S. and amid the U.S. Federal Reserve’s massive on-going policy of monetary accommodation.
February Comex gold last traded down $0.90 at $1,412.60 an ounce. Spot gold last traded up 0.14 at $1411.78.
In the wake of spot gold’s nearly 30% gains in 2010, many major investment houses remain bullish on the metals into 2011, with upside targets for gold above $1,500 per ounce in the year ahead. Silver continues to climb higher, with support from both the precious and industrial metals angle, as it is viewed as a less expensive alternative to the yellow metal.
December 29, 2010
by Ian Williams on Dec 29, 2010 at 07:00
In less than four months silver has risen from $18 per ounce to $30, representing a rise of almost 70%.
This ferocious move has meant that silver has dramatically outperformed its more revered neighbour gold during the same time period by nearly 50%.
There are conflicting arguments as to why this substantial move has happened. Rumours abound that a major US investment bank has a huge high-risk short position in physical silver and cannot deliver enough physical silver to meet its obligations.
December 28, 2010
MUMBAI – Signs that the world’s second-largest economy China, is gearing into a formal monetary tightening cycle was apparent on Saturday, when the country’s central bank raised interest rates for the second time in two months.
Analysts maintained that gold would get pounded and the dollar rebound as a consequence.
But, on Monday, India’s gold demand was moderate as prices softened a touch on the back of a stronger rupee, and the news from China. However, on Saturday, December 25, gold broke through its five-days losing streak to rise marginally on mild-buying by retailers in Mumbai.
December 28, 2010
SINGAPORE (Reuters) – The surprise timing of the People’s Bank of China (PBOC) increase in benchmark lending and deposit interest rates is likely to weigh on commodity markets when trading starts on Monday.
On Christmas Day, the PBOC raised rates by 25 basis points, the second rate rise in just over two months, part of a series of measures designed to combat inflation which hit a 28-month high of 5.1 percent in November.
The opportunity to cash in on prices at or near their highest in years before the year end could mean the correction this time may be greater than the losses following the last interest rate hike in October.
December 28, 2010
BENONI (GoldForecaster.com) – We have heard many commentators implying that a U.S. economic recovery that leads to the sort of growth that was seen before 2008 will give investors reasons to divest from gold.
As the year end approaches and another year is on us, it seems wise to us to look at this carefully. All of us would dearly love to see a real recovery, with rising housing prices moving back to levels seen in 2008, strong employment data and consumers with plenty of disposable income to make life stress free again. In such a climate, one can understand that these desires would be accompanied by a fall in the gold price, which to many is a thermometer measuring the ailments of the developed world economies. But is that the reason that gold is at current levels?
December 28, 2010
LONDON – Is China increasing its gold reserves but without reporting it, yet again? Or is this pure market speculation? The odds would favour the former, but the markets just won’t know until the Chinese announce the fact at a point in time of their choice. Such an announcement is politically very sensitive, and if several hundred tonnes of gold have indeed quietly and surreptitiously been moved into the Asian giant’s coffers, which this writer feels is more likely than not, then news of this could have a very sharp upwards price impact for the precious metal.
It will be remembered that China’s official reserve figure is 1,054 tonnes – an announced increase of over 75%, supposedly achieved over a three-year period to 2009. But there’s no particular reason to even believe this figure. Chinese official gold reserves are at whatever level the government is prepared to announce. Even if its official gold holdings are indeed 1,054 tonnes there could be, and probably is, a substantial amount of additional gold in some secondary account which China doesn’t feel the need to repor – at least not yet.
December 22, 2010
Avanti Mining (OTC Other: AVNMF; TSX-V: AVT) intends to form a strategic alliance with SeAH Holdings Corp., the largest specialty steel producer in Korea. The alliance will include two components as follows: (i) a private placement of $11 million at $0.252 per share, funds from which will be used for design engineering, environmental assessment, and permitting of the Company’s Kitsault Mine and (ii) allowing SeAH to acquire up to a 30% partnership interest in the Kitsault Mine, for which the Company expects an LOI in January 2011.
In addition, the Company expects to raise $4 million at $0.394 per share via a flow-through financing.
December 22, 2010
Eagle Star Minerals (OTC Other: ELGSF; TSX-V: EGE) has extended the accelerated expiry date of 6.425 million warrants until January 27, 2011 stemming from a delay in the receipt of assay results from the Company’s Phase 1 exploration program at its Angico iron project. The warrants have an exercise price of $0.20.