Functional Technologies (OTC Other: FEBTF; TSX-V: FEB) has appointed Christopher Morris as acting Chief Executive Officer. This enables Mr. Howard Louie, who remains as Executive Chairman and assumes the responsibilities of Chief Business Development Officer, to focus exclusively on the Company’s activities in cultivating and executing on strategic relationships associated with its lead technologies, as well as his ongoing capital market efforts.
Functional Technologies’ Management Changes to Facilitate Strategic Relationship Development EffortsJanuary 31, 2012
Nortec Minerals’ Drilling Expands PGE and Gold Mineralization at LK Property in North Central FinlandJanuary 31, 2012
Nortec Minerals (OTC Other: NMNZF; TSX-V: NVT) recently optioned the LK palladium-platinum-gold-copper-nickel project to Finore Mining Corp., which can earn an 80% interest by making payments of $10.5 million and spending $10 million over 3 years. Nortec and Finore have released initial results from the Phase V drill program, highlights of which include:
- 44.0 metres @ 0.80g/t PGE+Au; 0.28% Cu; 0.19% Ni from 58m (Hole HAU11-002), including 13.0 metres @ 1.15g/t PGE+Au; 0.38% Cu; 0.27% Ni from 84m
- 5.0 metres @ 1.05g/t PGE+Au; 0.33% Cu; 0.24% Ni from 114m (Hole HAU11-004)
These drill results extend the known palladium-platinum-gold-copper-nickel (“PGE+Au-Cu-Ni”) mineralization on the Haukiaho Target (“Haukiaho”), situated in the southern part of the LK Project. Drilling began in November 2011 focusing on the central-western mineralization at Haukiaho, known as the Torkoaho Zone. To date, a total of 12 holes have been geologically and geotechnically logged with zones of potential mineralization selected for sampling and assaying.
Goldgroup Mining (OTC Other: GGAZF; TSX: GGA) continues to intercept significant gold mineralization at Caballo Blanco in Veracruz, Mexico, including:
- In drill hole 11CBN153, 0.60 g/t gold over 197.10 metres;
- In drill hole 11CBN157, 0.84 g/t gold over 66.55 metres; and
- In drill hole 11CBN159, 0.88 g/t gold over 67.32 metres.
According to Keith Piggott, President and CEO of Goldgroup Mining, “We are pleased with these new diamond drill results, which continue to confirm, define and expand the La Paila Zone. As we continue to receive positive results from our 2011 drill program and conduct our additional 30,000 metre drill program in 2012, we expect to increase resources at the La Paila Zone, as the zone currently remains open to the south and southwest. Furthermore, Management expects to identify new zones of mineralization in both the Northern Zone and Highway Zone through its 2012 drill program.”
Lynden Energy (OTC Other: LVLEF; TSX-V: LVL) has drilled its first Tubb Prospect Well in West Texas to a total depth of 9,545 feet, and in late December 2011, 12 stages of fracture stimulation were carried out. In addition to several completion stages in the Wolfcamp formation, completions were also carried out in the deeper Cisco, Canyon, Strawn, Atoka and Mississippian formations.
In early January, the well was tied into production and has averaged 109 barrels of oil per day and 264 barrels of water per day in the 23 days since the well was tied-in. The well has also produced 106 mcf of gas per day in the eleven days since the measurement of gas began. Oil gravity from the Tubb A #1 is estimated to be 43 degrees API.
Initial results from the well have exceeded management’s expectations and are suggestive of the significant development potential for the relatively untested Tubb Prospect Area. Successful results in the Tubb Prospect Area could allow for the drilling of approximately 170 gross wells, at 40 acre spacing, on currently leased acreage.
The Gold Report: When you last spoke with The Gold Report in early March of last year, gold was trading around $1,420/ounce (oz) and silver was around $36/oz. Silver peaked about $49/oz in late April and then gold hit around $1,900/oz in September. Now we’re back up above $1,700/oz on gold and about $33/oz on silver. Where do you see these prices going this year, after it appears that they have likely bottomed out?
Matthew Zylstra: We’re long-term bulls on both metals. Gold has been correcting since September and it looks like it bottomed out around $1,500/oz. We believe the recent decline is a normal pullback in a longer-term uptrend where nothing has really changed to the outlook. We see a perfect environment for the metal-concerns over our currency debasement, negative real interest rates, geopolitical friction, etc. I expect gold will reclaim the 2011 highs and could reach $2,000/oz.
LONDON (Sharps Pixley) – One of the hallmarks of the decline in gold prices from an all time high of $1920 in Sept 2011 (as the market collapsed by 26%) was the significant long liquidation of speculative positions by gold futures traders on the CME in New York.
Since then gold has steadily rallied – firstly breaching the important 200 day moving average which was then at $1644 and subsequently technical and psychological resistance around the $1700 level. And it has done this without any significant re-building of net long positions of the CME futures traders (see Reuters chart below).
GoldForecaster.com (BENONI) – Last week, gold broke through heavy overhead resistance, as did silver, to look very positive for the days ahead. Many technical analysts didn’t feel that gold had that kind of momentum but then came the break. It wasn’t a struggling break; it was robust, sweeping resistance aside as though it wasn’t even there.
Fed’s Announcement Last Week
You’re probably saying now that it was the announcement from the Fed that interest rates would be held at current levels for another year more, through to the end of 2014. The superficial assumption is that this means that the dollar will earn nothing, so risk assets should outperform dollar deposits. That’s true, but a great deal more was implied in their statement. The Fed pointed to long rates rising to above 4% over time, while inflation remained at 2% -and could fall further. Why?