Sunday, December 27, 2009

5-Part Webcast on Investing in Canadian Junior Exploration Companies

Click here to view the 5-Part Webcast

For those new to investing in gold and silver and the related Canadian junior exploration companies, I've prepared a 5 segment webcast on investing in these companies. I get into why the next few years will be an exciting time for those investing in the juniors, why Canada is the hot bed for exploration companies, various resources to use in conducting reasearch, how to buy and sell these stocks on the Canadian exchanges and how to make the next few years both exciting and profitable.

A link is provided at the top right of the website. For those already invested in these juniors, you might pick up a thing or two from watching. Each segment is only about 5 minutes in length so it's a quick 30 minute primer but I try and touch on a variety of topics.

Happy Holidays!

Saturday, December 5, 2009

December Alerts Now Available

The December Alerts are now available at the top left of the website. This month 3 companies are featured:

Black Panther Mining
Mala Noches resources
ICN Resources

All 3 will be reporting significant news over the next 30 days so these should go on your watchlist and further due diligence performed.

Thursday, November 26, 2009

Colt Resources starts diamond drilling at Tabuaco

The Chinese are closely watching any junior who pulls a nice tungsten hole. In addition, with gold closing in on $1,200, the Penedono deposit is drawing quite a bit of investor interest.

Colt Resources starts diamond drilling at Tabuaco

2009-11-26 10:46 ET - News Release

Mr. Nikolas Perrault reports


Diamond drilling has started on Colt Resources Inc.'s Tabuaco tungsten property located in the Armamar Meda concession in northern Portugal. This initial program will consist of four holes totalling approximately 325 metres.

Diamond drilling is also continuing on its Santo Antonio gold property in the Penedono concession, located adjacent to the Armamar Meda concession. This is a continuing program at Santo Antonio with an initial target of approximately 750 metres in 10 to 15 holes.

Wednesday, November 25, 2009

Frederick Shale takes center stage

I had been hoping that the Utica would prove out before the Frederick but CDH just nailed it. These results represent the first significant flow of natural gas from the Frederick Brook formation, and are encouraging for future horizontal drilling and multistage fracturing of this large unconventional resource play.

For those interested, I did a small write-up on the maritime shale play last year. CEX and PTW are the most leveraged to this news besides Corridor.


Corridor well flows at 4.1 mmscfd at Frederick Brook

2009-11-25 08:19 ET - News Release

Mr. Norman Miller reports


Corridor Resources Inc. has conducted propane fracs and completed initial cleanup flow of two intervals in the upper part of the Frederick Brook formation at the Green Road G-41 (vertical) well. The well is located approximately 20 kilometres east of the McCully gas plant and four kilometres north of the village of Elgin in southern New Brunswick. The first of the two fracs resulted in the placement of 46 tonnes of proppant in a black shale interval at a depth between 2,000 and 2,050 metres. The second frac resulted in the placement of 68 tonnes of proppant in a silty interval of the formation containing thin interbeds of sandstone at a depth between 1,850 and 1,900 metres. Following completion of the fracturing operations, commingled cleanup flow was conducted for the two intervals. At the end of a 57-hour flow period, the well was flowing at a restricted rate of 4.1 million standard cubic feet per day, consisting of approximately 85 per cent natural gas and 15 per cent propane frac fluid at a flowing wellhead pressure of 2,083 psi. A temperature log confirmed that both intervals were contributing to the flow. A tubing string with packer will be installed in the well to facilitate independent flow testing of each interval. These results represent the first significant flow of natural gas from the Frederick Brook formation, and are encouraging for future horizontal drilling and multistage fracturing of this large unconventional resource play.

Sunday, November 1, 2009

Lovitt Resources - 5 million shares outstanding, $2 million market cap, 400,000 high grade gold ounces


My highlighted company for November, Lovitt Resources (LRC.V), can be accessed at the top left of the site. They are unique in that they have a substantial historical, high-grade resource (non-43 101) of 400,000 ounces of gold in the state of Washington and only 5.1 million shares outstanding with a market cap of under $2 million. A summary of the report in bullet points includes:

• Only 5.1 million shares outstanding with no options or warrants issued
• Non 43-101 compliant resource of approximately 400,000 ounces of gold (historical) at ~ 7 g/t
• No deep drilling on the Lovitt property but plans to deep drill it over the next few months
• Cannon Mine less than a mile away on trend produced 1.25 million ounces high grade gold
• Prior production at Lovitt Mine of 400,000 high grade gold ounces in the 1950's and 1960's
• In 1982, Breakwater went from $.18 to over $40 over the next few years on the Cannon discovery
• Current replacement cost of Lovitt Mine infrastructure and data would exceed $40 million
• Real estate and high tech processing equipment worth Lovitt's current market cap – gold for free
• Near-term production from high grade areas by hauling out material for milling
• Minimal capital cost of $1-$2 million....Kinross Buckhorn plant in Washington has excess capacity
• No prior promotion or marketing means this is a truly undiscovered story
• Current market cap of $1.8 million....private sales of this type have gone for over $10 million
• Safe jurisdiction with water, power, labor and other requirements available locally
• Patented claims 100% owned by Lovitt Resources with no exploration permitting required
• With gold at the $1,000 level and the junior market heating up, investors will be looking for high
grade gold exploration companies with a ultra-tight share structure for the most leverage
• Recent exhibiting at the Toronto Resource Show was the “coming out party” - building awareness

Thursday, October 15, 2009

Colt Resources Inc. Reports on Progress on the Penedono Concession and Ongoing Exploration Plans

Colt is now drilling on their high grade gold property in Portugal. They are one of the few juniors to have both a high grade gold and high grade tungsten property selling for less than $5 million.

MONTREAL, Oct. 15 /CNW Telbec/ - Colt Resources Inc. ("Colt" or the "Company") is pleased to provide an update on property work completed during the current 2009 exploration program on their Penedono Concession, located in northern Portugal.

The Penedono Concession consists of 102.471 km2 and is located approximately 100 air km east from the coastal city of Porto.

Colt has been conducting a trenching and diamond drilling program in the Marofa area, (adjacent to the west from the Santo Antonio veins), where previously reported good grade values for gold and tungsten have been reported. These values, as reported in the News Release of Dec.15, 2008, ranged up to 96 g/t gold and 18,364 ppm (1.84%) W or 2.32% WO3 in individual relatively narrow veins. The focus of the exploration has been on areas where there is a high frequency of veins and veinlets. Colt has completed 657 meters of surface trenching and 341 meters of diamond drilling in 6 holes. When all assay results have been received and the data analyzed, a decision will be made as to further work on this potential open pit target area.

The diamond drill has now been moved to the Santo Antonio area to veins 11 and 13 where additional drilling has begun. This drilling program will focus on expanding the strike extension of the vein systems located last year. On vein 11, DDH 08-04 returned 8.14 m of 5.89 g/t gold including 1.54 m of 18.37 g/t gold while DDH 08-02 on vein 13 returned 1.47 m of 59.99 g/t gold. These veins remain open on strike and to depth. Additional drilling is being considered on other veins in the immediate area such as vein 12 lying between veins 11 and 13 plus other veins in the Santo Antonio system.

Colt is also reviewing all data relating to the Turgueira area of the Penedono Concession. This area is located approximately 7 km to the west from the Santo Antonio veins and where in previous work conducted by Rio Narcea, a potential open pit target is apparent. Gold values from a large area of greisen alteration containing disseminated arsenopyrite as well as quartz veinlets containing arsenopyrite are in the range of 1 - 2 g/t gold over widths of 10 - 30 metres both in diamond drill holes and trenches. Several areas in trenches returned higher grades such as 3.0 g/t gold over 13 metres and 6.2 g/t gold over 5.2 metres. The Turgueira area was also worked in the past by local tungsten miners during World War 2. Evidence of their activities is scattered over the main target area and future exploration by Colt will include tungsten analysis. Wolframite has been observed in hand specimens.

The technical portions of this news release have been prepared and approved by J.W. Murton, P. Eng., a qualified person as defined by National Instrument 43-101. Mr. J.W. Murton is a director of Colt.

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes", "anticipates", "plans", "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in those forward-looking statements. The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.


Nikolas Perrault
President & CEO
Colt Resources Inc.
(514) 501-2985
(514) 394-0009
Fax (514) 394-0888

Aurelio Useche
Director & CFO
Colt Resources Inc.
(514) 824-8559

Thursday, October 8, 2009

The gift from those playing games with Decade (DEC)

Decade Resources share price has fallen from $1.72 to $1.11 as profit takers rang the register and certain institutions playing games with the share price. With gold melting up tonight and the news release from Decade today showing a 20-30 meter wide, 2 kilometer long 400 meter deep high grade (7-10 g/t)zone plus the potential for a deeper, longer zone identified in hole #9, a $1.11 entry price will make most giddy a few months from now.

Wednesday, September 23, 2009

Colt Resources: "One of the Favorite Horses to Ride"

My initial Colt Resources (GTP) research report can be accessed at the link at the top left of the website tonight. Colt Resources is one of my favorite "unknown" companies that has 3 exciting plays in Portugal (1) a high grade gold deposit (2) a high grade tungsten deposit and (3) a potential elephant-sized VMS deposit. The reason it is one of my favorites is if you combine the properties listed above with a tight share structure, a tiny market cap (under $2.5 million)and their relatively unknown status among investors, Colt's share price has the potential to be re-rated higher by the market once their story gets out.

Please take the time to review the report as I'm sure you'll find Colt Resources an exciting junior play leveraged to the high price of both gold and tungsten.

Friday, September 18, 2009

Decade (DEC.V) - A Possible Eskay #109 ?

We should know next week whether lightning can strike twice at Stewart. There is a buzz that Decade's hole #9 at Red Cliff may be a company maker and results are expected late next week. Anything remotely close to hole #109 and you will have a 10-bagger from today's $1 level. Other companies that will benefit include Mountain Boy (MTB) who will own 20% of the Red Cliff deposit, Auramex (AUX) whose 100% owned property is adjacent to Red Cliff and Bonterra (BTR) who just staked claims northwest of Red Cliff. Timing couldn't be better as the Toronto Resource Conference kicks off next weekend. See a summary of Eskay # 109 below:


The Northern Miner’s 1990 “Mining Man of the Year” Chet Idziszek and Murray Pezim (Eskay Creek) – by Vivian Danielson

A dozen different companies optioned and explored the Eskay Creek property north of Stewart, B.C., over the past half century before its real potential began to emerge in the fall of 1988. That’s when Murray Pezim, 70, Canada’s best known mining promoter, backed a recommendation by Chet Idziszek, 43, and his team of geologists to drill the Eskay Creek project brought to Pezim for financing by a little known junior called Calpine Resources.

Today Eskay Creek is recognized as being among the most significant of discoveries made in Canada since the Hemlo gold deposits were found in Ontario in the early 1980s. The two projects have some interesting parallels, not the least of which is the fact that Murray Pezim played a significant role in advancing each of these geologically unique and truly world-class discoveries.

The Eskay Creek discovery also focused attention on the under-explored and often underestimated mineral potential of northwestern British Columbia. And it underscored the important but often thankless role played by the Vancouver Stock Exchange in providing funds for juniors to carry out high-risk exploration.

It is for their roles in the discovery and development of the Eskay Creek deposits that The Northern Miner has named Murray Pezim and Chet Idziszek jointly as Mining Men of the Year for 1990.

Theirs is an unlikely partnership. Pezim, is flamboyant, some times abrasive, a workaholic and an unabashed risk-taker. He came to Vancouver from Toronto in 1965. Since then, his career has been a roller-coaster ride of triumphs and tribulations. Notwithstanding the pall over his reputation cast by a recent investigation by the British Columbia Securities Commission, Pezim’s contribution to mineral exploration in Canada is assured by his role at Eskay Creek, Hemlo and other areas.

Idziszek, holder of a M.Sc. degree from McGill University, is a personable and respected professional geologist whose technical skills have steered the Eskay Creek project through some challenging times. Without the conviction of his technical expertise, Eskay Creek might still be just a remote watershed in British Columbia’s rugged hinterland.

It took 76 drill holes before Hemlo even began to be taken seriously, and 109 holes before Eskay Creek became widely accepted as a truly significant discovery.

Geological reserves at Eskay Creek today stand at 4.36 million tons of 0.77 oz. gold and 29.12 oz. silver, the bulk of which is classed as probable reserves in the 21B zone which is also rich in zinc, lead and copper sulphides.

Idziszek’s involvement with Pezim began in February, 1987, 0000,1006 when he moved to Vancouver from Toronto to head up Prime Explorations, the exploration arm and wholly owned subsidiary of Prime Resources. Its main role was to seek out new exploration and development projects and manage programs on existing properties throughout North America for the Prime group of companies (about 50 at the time).

Idziszek may have been coaxed to move to Vancouver by his wife, Nell Dragovan. Back in the early 1980s, she played an important role in acquiring some Hemlo gold properties for a Vancouver-based junior that later became Corona (TSE).

Before Eskay Creek, Idziszek was the main driving force responsible for the identification and evaluation of the Snip gold deposit as an acquisition target for Prime Resources. It is now being readied for production by Cominco (TSE), which has a 60% interest and is operator. Once up to full speed, Snip is expected to produce 93,000 oz. gold annually.

In the summer of 1988, after a technical evaluation, Idziszek and geologists James Foster and David Mallo (Idziszek’s former colleagues at Gold Fields Canadian Mining) recommended Prime take on the Eskay Creek project. At the time, Calpine was hard pressed to raise $900,000 which it needed to spend to earn a 50% interest from Stikine Resources (VSE), then known as Consolidated Stikine Silver.

Pezim and associate John Ivany agreed to finance and acquire an interest in the company, which eventually became a subsidiary of Prime Resources Group (VSE). A fall drill program was outlined by Prime Explorations based on a detailed office evaluation of previous results, some interpretative work, surface geological mapping and a soil geochemistry program.

A month or so later, as part of a 6-hole drill program contracted to Keewatin Engineering, a significant gold discovery was made when the last hole of the program intersected 96.5 ft. of 0.75 oz. gold and 1.13 oz. silver per ton.

Prime picked up important clues for its drill program after it reviewed results from a 1985, limited drill program carried out by Kerrisdale Resources in an area adjacent and peripheral to what is now the 21A zone. Kerrisdale was unable to raise funds to continue work and its option from Stikine was dropped. But had it been able to come up with the funds to carry out the next phase of drilling recommended by its consulting geologists, David and Virginia Kuran, Mallo said the Eskay Creek story “could have been a very different one.”

Encouraged by initial results, Pezim raised funds to carry out an expensive drilling program through the winter of 1988-89 (one of the worst on record). As the drilling progressed, however, it became apparent that the 21A zone was metallurgically complex with limited tonnage potential.

In the summer of 1989, drilling on the 21A zone was suspended in favor of an accelerated program on the 21B deposit, where some widely spaced stepout holes at the end of the winter program (holes 67,68,69) had revealed high-grade gold and silver mineralization associated with base metals. The two zones are separated by an approximate 500-ft.-long weakly mineralized area.

It was a gamble that paid off handsomely. Results kept getting better and better until a widely spaced stepout hole drilled on an induced polarization target at the northern end of the property made history.

The now-famous hole 109 returned a 682-ft. interval grading an average of 0.87 oz. gold, 0.97 oz. silver, 1.12% lead and 2.26% zinc. In the process, the spectacular hole triggered a trading frenzy on the Vancouver Stock Exchange.

Ongoing work led to geological reserve calculations, metallurgical studies which returned positive results from 21B zone mineralization, and an underground program to provide information for mine planning feasibility studies. In addition, several new zones were discovered which increased the property’s reserve potential.

Headed by Idziszek, the team responsible for the Eskay Creek discoveries includes Mallo and Foster as well as field managers Ron Fenlon and Gerry McArthur.

But credit must also be given to Tom Mackay, the prospector who explored Eskay Creek in 1932 and who first believed in its potential. His widow, Marguerite, held on to the property through Stikine Resources, which was later acquired about equally by Corona and Placer Dome (TSE). (The acquisition provided a handsome return to Stikine shareholders.) Corona, which currently has the larger stake in the project, hopes to name the mine after Mackay.

Also, Pezim’s contributions have been more than financial. He solidly backed his technical people and promoted Eskay Creek to anyone who would listen. And he got a better response than in the early 1980s when he tried to convince a skeptical industry that mines were ready for the making at Hemlo.

“Gold mines were found by guys like Placer and Noranda, not by some raggedy-ass VSE promotion,” said author Frank Keane describing the prevailing attitude in the early Hemlo days in his book Pezim, Tales of a Promotor.

But industry skepticism lingered at Eskay Creek (does lightning really strike twice?), and it was not until the deposit was substantially drilled off that two majors, Corona and Placer Dome, moved to acquire their direct interests in the project.

All the fanfare at Eskay Creek in the summer of 1989 landed Pezim and several associates in hot water with British Columbia’s securities regulators. They were recently cleared of insider trading and breach of directors’ duties, but Pezim is now trying to appeal a 1-year trading ban imposed on him for contraventions of disclosure requirements during a hectic period in 1989 when drilling was taking place at Eskay Creek.

Pezim and Idziszek are currently heading up Prime Equities, which has a host of junior companies under its corporate umbrella. And, as Mallo says, “there will be more discoveries.”

This entry was posted on Thursday, January 1st, 2009 at 1:59 pm and is filed under Northern Miner - Mining Person of the Year Award. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Thursday, September 17, 2009

Another spike

$5 spike at 1:45 AM. Folks, as Jim Sinclair has said repeatedly, this is it. $1,000 is the floor now.

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

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:


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":

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:

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 ( 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.

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 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:

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 :)


Monday, July 20, 2009

July Investor Alert


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.


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.


Sunday, July 12, 2009


I expect a news release this week on as few as 2 or as many as 4 holes.


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.


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 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.

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 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.


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.

Sunday, May 31, 2009

Unlocking the Oro Gold Story

When Darren met with Wendell Zerb and the analysts at Canaccord last week that resulted in Canaccord buying several hundred thousand shares over the next few days, you have to wonder what dots they connected to buy in the $.75-$.80 range. Was it just the 200,000 ounce current resource at around 1.5 g/t that we now know has been understated and probably is more in the 600,000 ounce range at 5 g/t? This resource is confined to a relatively small 200-300 meter area. Is this what Canaccord got all excited about? Probably not.

Just like I connected the dots when Oro Gold was at $.18 when no one cared, Canaccord is connecting the dots at $.75-$.80 when none of the other inistitutions care. What dots are those?

We know that hole #20 which is 200 meters south of the discovery zone is showing visual signs of the breccia that is present in the high-grade discovery zone. Assays are pending and will most likely be released in the next 7-10 days. If the assays show the same type of grades, the resource area may be twice as large as the current one under the 43-101. Is that what got them all excited?

We know that 400 meters north of the north end of the discovery zone (see picture on the current presentation here) is the Bocas discovery which there is a 11 g/t gold large boulder at surface that appears to be made of the same type of breccia that has been discovered in the high-grade discovery zone 400 meters to the south. They also trenched 63 meters of 3 g/t in this zone (sound familiar?). Does the high grade breccia material run 400 meters north to Bocas thereby doubling again the size of the deposit? Has Canaccord connected those dots?

We know (maybe one or two of us anyways) that 1 kilometer (1,000 meters) to the south of the high grade discovery zone and along strike is the Colinas discovery. Not much has been said about this zone since no core drilling has been done yet like that in the high grade zone, only RC drilling. We know that the RC drilling has been understating the high grade breccia zone by 3-4 times when compared to the core drilling. A few of us know that RC hole 08-TRRC-016 drilled in late 2007/early 2008 hit two zones at the same depth as these last few discovery holes of 26 meters of 1.14 g/t from 128-154 meters and 14 meters of 1.98 g/t from 182-196 meters. Taken together, this RC hole showed 40 meters of about 1.5 g/t on average. Since the RC holes were underestimating the grades by 3-4 times, it is possible that when they put a core drill down this zone (Darren plans to do just that), it may show a hole of 40 meters of 5-6 g/t gold (sound familiar)? Did Canaccord connect those dots and is that what got them all excited? Will other institutions connect the dots?

If (and it is an "if" until core drilling confirms this) this high grade breccia zone runs from Bocas in the north through the discovery zone at Taunus down to Colinas in the south, you are looking at some 1,700 meters on strike of high grade breccia (or for those stateside about 1 mile long). Is that what got Canaccord excited and led them to compare the Oro Gold geology to the 14 million ounce Fruta Del Norte discovery?

Have you connected these dots?

Wednesday, May 27, 2009

canaccord compares OGR breccia to Aurelian 14 million ounce deposit breccia

Oro Gold (OGR-V)

Canaccord Adams Senior Mining Analyst Wendell Zerb highlights that the
best intersection of eight core holes thus far is: 8.5 g/t gold over 61 m, a
strong indication the RC drilling was understating the grades. The company
has released a handful of further encouraging drill results in the past week.
Based on results to date, the Taunus zone appears to be about 350 m on
strike, up to 50 m wide, and has been tested vertically over about 70 m. It
appears to be open in all directions. Recent work by Oro Gold suggests a
regional northwest-trending corridor could represent an extensional pull-apart
basin. Some specifics relating to the extensional setting are that
breccia/conglomerate units host mineralized clasts and a later higher-grade
mineralized matrix. This could be an indication of multiple mineralizing events
possibly associated with a long-lived extensional environment. Zerb notes
that the 14-million-oz Fruta del Norte deposit (of Aurelian fame – now Kinross
(K)) has been interpreted to be associated with an extensional pullapart
basin environment.

Oro Gold drills 60.6 m of 3.4 g/t Au at Trinidad

Oro Gold drills 60.6 m of 3.4 g/t Au at Trinidad

2009-05-26 09:53 ET - News Release

Mr. Darren Bahrey reports


Oro Gold Resources Ltd. has released gold assay results received for two more diamond drill holes that twinned previous reverse circulation (RC) holes at the Taunus target on its Trinidad gold property near Mazatlan, Mexico.

09TR016, a core twin drilled in the new discovery zone at Taunus, intersected 5.2 grams per tonne gold over 36.5 metres (from 160.9 to 197.4 metres) within a larger interval of 3.4 grams per tonne gold over 60.6 metres (from 160.9 to 221.5 m). The recovery of the mineralized intervals was 80 per cent and 75 per cent respectively.

09TR017A, a core twin located south of the Taunus pit, which targeted a satellite near-surface gold anomaly, intersected 1.0 gram per tonne gold over 4.3 metres (from 41.1 to 45.4 m). The recovery of the interval was 75 per cent.

Oro Gold has now completed five core twin holes. The results of these core holes confirm RC drilling has been under-reporting the gold grade of the mineralized zones. A comparison of the core versus RC assay results in the higher grade mineralized intervals is summarized in table. Further drilling of twin holes is not planned in the current drill program.

The diamond drilling is focused on expanding and defining the limits of the high-grade new (breccia) zone. To date, eight diamond drill holes have been completed in the new zone, with four of them twins (08TR012/13/14 and 09TR016) and the other four step-outs (09TR015/18/19/20).

The step-out holes 09TR018, 19 and 20 extend the new zone to the south along strike 20 metres, 50 metres and 200 metres respectively. There is visual indication in the core that the mineralized breccia zone continues to the south and appears to be between 10 and 40 metres wide. The drilling has now tested this zone over a 350-metre strike 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 current interpreted dimension of the breccia zone is 350 metres long, 70 metres vertical, and 10 to 50 metres wide, and is still open in multiple directions. The high-grade portion of the mineralized breccia material is averaging above five grams per tonne gold. Assays are pending for 09TR018, 19 and 20. The next step-out holes will be determined based on assay results for these holes.

The location of the diamond drill holes with reference to the breccia zone can be viewed on a plan map at the "Latest Trinidad Drilling" link on the Oro Gold website. Also a summary table of the high-grade gold assay intervals in the diamond drill holes completed to date in the new zone as well as core photos can be viewed at the same page.

The objectives of the continuing diamond drill program are (i) to confirm by twinning holes that the gold grade of mineralized zones at the Taunus target is much higher than what has been reported in RC holes, and (ii) to define and expand 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 grams per tonne gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in July, 2008, and it does not include the high-grade gold results from the diamond drilling.


Core hole From To Interval Gold Distance
(m) (m) (m) (g/t) (m)*
08TR012** 151.0 212.1 61.1 8.5 8.0
08TR013 147.0 180.6 33.6 3.8 4.0
including 160.9 168.2 7.3 15.8 12.0
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR016 160.9 221.5 60.6 3.4 10.0
including 160.9 197.4 36.5 5.2

RC hole From To Interval Gold
(m) (m) (m) (g/t)

08TRRC023 148.0 212.0 64.0 1.5
08TRRC025 150.0 180.0 30.0 3.3
including 162.0 172.0 10.0 8.5
08TRRC029 96.0 102.0 6.0 2.2
and 122.0 130.0 8.0 1.8
08TRRC040 166.0 266.0 100.0 1.6
including 182.0 214.0 32.0 3.0

*Distance in metres between centres of mineralized intersections in
the corresponding core and RC holes; some of the distances are approximate
due to lack of down-hole surveys.
**Drill hole abandoned for technical reasons.

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.

It is important to acknowledge that there is significant exploration potential in the Trinidad district, as the company has identified 10 other gold targets with several of them having a similar footprint to Taunus and have yet to be drill-tested. 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.


1) Grade 2) Expansion 3) Geologic
Drill hole Area confirmation model Main result

08TR012 New zone Indicated higher 8.5g/t gold over 61.1m in
hrade new zone breccia and clastic unit

08TR013 New zone Confirmed 5.3 g/t gold over 23.6m in
higher grade breccia and clastic unit
new zone

08TR014 New zone Confirmed 9.7 g/t gold over 7.0m and
higher grade 5.3 g/t gold over 7.8m in
new zone breccia and clastic unit
09TR015 New zone Confirmed 5.3 g/t gold over 66.0m in
higher grade breccia and clastic unit
new zone
09TR016 New zone Confirmed 5.2 g/t gold over 36.5m in
higher grade in breccia and clastic unit
new zone
09TR017A SW pit Did not confirm 1.1 g/t gold over 4.4m
satellite zone grade in satellite
09TR018 New zone Defined new Assays pending
zone Hydrothermal and tectonic
09TR019 New zone Defined new Defined W pit Assays pending, breccia
zone stratigraphy and clastic unit
09TR020 New zone S Extend new Defined W
expansion zone 100m S pit In progress
and at depth stratigraphy
09TR021 Pending Definition and Geologic Pending
09TR022 Pending Possible Geologic Pending
09TR023 Pending Possible Geologic Pending

Wednesday, May 20, 2009

Oro Gold drills 42.5 m Au of 7.6 g/t at Trinidad

Oro Gold drills 42.5 m Au of 7.6 g/t at Trinidad

Hole #1 was drilled with 2 primary objectives, both which were wildly successful:

1. To de-risk the play. The discovery hole in Oct 08 of 61M of 8 g/t was a core hole in between two RC holes of approx 100M of 1.5 g/t. The risk was that the discovery hole may have hit a thin vein of high grade gold and that the rest of the deposit was more in the 1-1.5 g/t grade which is what the 43-101 is based on. As you can see in the map of the drill holes, hole #1 was drilled vertically to cut across several of the RC holes at different angles and the high grade gold was still achieved throughout the 40-60 meter length. This essentially de-risks the play.

2. A larger drill core was used in this round of drilling to prevent losing holes short of their intended depths as was the case late last year. The drilling so far, although slow, has been successful.

Now that the discovery has been de-risked, we go after increasing the deposit size. The second hole (#16 with assays to be released next week) is according to the press release:

Diamond drill hole 09TR016, a twin of RC hole 08TRRC040 (1.62 g/t gold over 100 metres), is located on the same section and approximately 20 metres below hole 09TR015. Geological logging on 09TR016 indicates mineralized material very similar to what was observed in diamond drill holes 08TR012 and 09TR015 over a comparable interval. The objective of the second hole is to confirm higher gold grades in the deeper part of the new zone.

This second hole, although a twin, will show if the higher grades exist deeper in the deposit. The RC showed 1.62 g/t. This hole should show grades significantly higher. It appears the mineralization goes for 100 meters in this core hole and if we get 5 g/t over 100 meters, the share price will move north of $1.00.

The third hole steps out a very long 500 meters to test a near surface anomaly.

The fourth and fith holes will start stepping out and going deeper than the first two holes to see if indeed this is a monster.

The next few months will be exciting to say the least. My recommendation was to sell 1/3 or 1/2 on the news but this is not yet the news that will cause a buying panic and therefore I haven't sold a share (although many did and locked in a nice profit). The best is ahead of us.


Sunday, May 17, 2009

Follow the money..........Paulsen & Co. goes all in

Two years ago he made billions shorting the real estate market. Now he will make billions in the gold and gold equities market. The 13-F filed Friday is incredibly bullish for the precious metals. The bloomberg article highlights just some of his purchases.

Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter

By Katherine Burton

May 15 (Bloomberg) -- Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.

As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust, an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.

That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.

Paulson bought or added to several gold companies in the quarter as well. He purchased a 15 percent stake in Market Vectors Gold Miners ETF, a fund that mirrors the move in the Amex Gold Miners Index. That stake was worth $638 million at the end of the quarter.

Paulson also bought a 2.6 percent of Gold Fields Ltd., becoming the fourth-largest holder of the Johannesburg-based gold miner.

The investment firm, which manages $26 billion, also bought an additional 2.4 million shares of Kinross Gold Corp. Paulson owned 4.4 percent of the Toronto-based gold producer and was its third-largest holder at the end of the quarter.

Paulson reported owning an 11.3 percent stake in AngloGold Ashanti Ltd., also based in Johannesburg, in March.

Armel Leslie, a spokesman for Paulson, declined to comment.

Paulson’s largest fund, the Advantage Plus Fund Ltd. returned 4.8 percent through April.

Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.

To contact the reporter on this story: Katherine Burton in New York at

Last Updated: May 15, 2009 15:58 EDT

Thursday, April 30, 2009

Questerre news and link to webcast

Good news for all of the Utica Players.

Questerre's St. David No. 1 well tests at 450 mcf/d

2009-04-30 06:07 ET - News Release

Mr. Anela Dido reports


Questerre Energy Corp. has released preliminary test results from its program in the St. Lawrence lowlands of Quebec.

Two prospective shale zones in St. David No. 1 were fracture stimulated in a single operation. On a 17-day test, the well flowed at a stabilized rate of 450 thousand cubic feet per day based on an analysis of the production logs, this flow rate is interpreted to be primarily from a single zone. The well is currently shut-in for buildup to gather additional pressure data.

Michael Binnion, president and chief executive officer of Questerre, commented: "Four hundred and fifty thousand cubic feet per day from a single frac in a vertical well is excellent for an emerging shale play. This result correlates with the over 800,000-cubic-feet-per-day test last August from the same zone in Gentilly No. 1. We look forward to drilling our first horizontal well with multistage fracs targeting this zone, which we are confident will significantly increase the rates."

Questerre also updated the status of recent testing on Gentilly No. 1 and La Visitation No. 1:

The Lorraine formation was successfully frac'd in Gentilly No. 1. Sustained gas flows were achieved encouraging further work to assess this potential.

Three prospective shale zones in La Visitation No. 1 were stage-fracture stimulated early this winter. Two zones in the Utica formation flowed at a preliminary rate of approximately 300,000 cubic feet per day over a five-day test period. Production logging indicates the majority of the flow is from the same zone as the successes at St. David No. 1 and Gentilly No. 1. Testing was affected by flow back of proppant and frac fluids, and further analysis is necessary to fully evaluate the results.

Mr. Binnion added: "Over all, we think this program is delivering tremendous results. We have one zone with three vertical successes over a broad geographic area. While early, this zone exhibits the characteristics required to carry a commercial development. Two other zones show good promise and we expect further engineering work will unlock their potential."

Questerre also reported that the operator has begun work on a seismic acquisition program in the lowlands. The 2-D data will target several areas for prospective pilot pads that could include multiple horizontal wells.

Thursday, April 23, 2009

Oro Gold and Real Time Measurement

The Oro Gold play is progressing as planned. Recommended a few weeks ago at $.185, the stock closed today at $.33. I would feel comfortable buying up to the $.50 level as I fully expect a $1 share price on the day of their press release in May (just added more today). My sleeper which I just highlighted as my April Energy Alert is Real Time Measurement (RTY). The share price actually fell on their blockbuster announcement and it sits at a paltry $.03 but I look for a $.15 share price over the next month. See my report at the top left of the website.


Sunday, April 19, 2009

One of the few to see this coming - from 2005

No one else on Wall Street dared talk like this in 2005. No one on Wall Street will tell the truth now.


The entire IMF sale of gold would be incredibly bullish

The rumour of an impending sale of some or all of the IMF gold has lead to a $100 sell-off. If it occurs, it will be incredibly bullish contrary to the conventional trade. The following below explains why:

Monday, April 13, 2009

A Primer on Junior Resource Investing

I posted this on the Investor Village board in response to a poster on Oro Gold (OGR.V) so I thought I would repost it here as well:

Good points. I made the assumption that since this is a precious metals board that most board members have at least a portion of their speculative money in the Canadian Juniors. Since that''s not the case, I'm more bullish than ever that this gold bull run has years to go. If we were at the heights of the gold bull, every widow and orphan would have some of their money in the Canadian PM juniors. Personally I only buy precious metal stocks that are traded on the Canadian exchanges even though I live stateside.

On Oro Gold (OGR.V), if you don't follow the Canadian Juniors then DO NOT SPECULATE on this stock. Take some time (several months) to read the Northern Miner publication and get familiar with how these stocks should be played. Follow a few of them daily to see how they react to news as these stocks are mostly news driven. After a while, dabble in a few of them to build your confidence in the sector.

For those who speculate in the sector, the following below is nothing new but it may help those who eventually get into one of these stocks:

Managment is key. Only speculate on a junior exploration stock where managment has worked for one of the larger precious metal companies and have been involved in prior discoveries. This can be determined by reading the bios on the website. In Oro Gold's case, the three executives are from Placer Dome and were involved in multi-million ounce discoveries.

Property is key/. The best place to look for gold is next to a gold deposit (duh). The property should also be close to road access and power. In Oro Gold's case, Eldorado Gold mined an open pit for 2 years in the 90's andf shut it down after 2 years due to low gold prices. They never drilled down further than 100 meters during their exploration phase. Oro Gold drilled 150 meters underneath the open pit and may have found a major new discovery with much higher grades than were mined by Eldorado.

Share structure is key. Avoid companies with a large number of shares outstanding (over 100 million) and preferably they should be under 50 million (as is the case with Oro Gold). The lower the number of shares, the greater the potential near-term return on a discovery.

News flow is critical. Juniors live and die by news flow and in certain parts of the world, no drilling can take place for months due to rain/cold/etc which leaves the junior void of news. In Oro Gold's case, the can drill year round and just started a new drill program with the first assays due back in 30 days.

Timing is critical. Even if a company releases good news, the overall sector performance has a drastic effect on the likelihood of a rapid rise in price on any news. Since mid-2008, most juniors (including Oro Gold) are down 80% or more from their highs. Very few large gains have been realized. When Oro Gold released their initial drill results in October 08 hinting of a major discovery (to be determined), it was the same day the TSX had their biggest point decline in history. After an initial spike, the share price got hit with all the other juniors. Also, the juniors trade smaller volumes in the Summer so it is tough to make large gains past the end of May through August.

Cash is critical. In this environment, many juniors can't raise funds to explore. Oro Gold has over $3 million in cash to drill throughout 2009 without needing to go to market for funds.

Technicals matter. Avoid any stock that rises suddenly on no news as it is sure to come back to earth. The key is to find a stock near it's 52 week low and one that has based for a while and is starting to move slowly higher (as is the case with Oro Gold).

Promotion matters. Juniors are a lighted match. They only have so much time to make a discovery before investors get impatient and the stock slowly dies. Since the major institutions don't cover the junior explorers, it is up to newsletter writers and company management to get the word out as financings are a necessary evil (similar to bio-techs in the states). Before relying on any newsletter writer, make sure they disclose their holdings of any stock they recommend (see my disclosure). Some of the better ones are Lawrence Roulston, Doug Casey, Peter Grandich and John Kaiser. Sprott Investments is the best resource institution who covers the juniors and also listen to Rick Rule if you get the chance.

Country matters. Mexico (Oro Gold), Canada and Chile are the best in my book. Fraser puts out a list of the most friendly mining countries.

High grade matters. In this tough financing environment, high grade gold offers a lower cost, higher payback proposition. Drill results over 5 g/t over significant widths are preferable (Oro Gold fits this criteria).

There are many other things to look for in a junior investment but you will find these out as you explore potential investments and make and lose money in the process. That being said, the juniors are so under-covered that you can find a diamond in the rough every now and then before the rest of the speculators realize the potential and those are the ones where significant profits can be achieved. You must be prepared, however, to lose your entire investment as the risks are high as well as the rewards.

Saturday, April 11, 2009

The best near-term investment opportunity of the last 4 years

Since following the Canadian junior exploration sector since 2005, the opportunity I highlight in my April investor alert on the website is the best near-term (less than 1 month) precious metal gain potential I have encountered. It's almost like knowing that Aurelian was going to announce their Fruta Del Norte discovery 3 weeks before the announcement. The clues are there but no one is connecting the dots. I have purchased 100,000 shares of Oro Gold over the last week and expect the shares to trade over $1 at some point in May. They currently trade under $.20. The opportunity is summarized here (right click to open in a new2 window):

Please do your own due diligence before considering purchasing shares and if you happen to get a double, sell 1/2 to recover your original cost and let the rest ride.


Wednesday, March 25, 2009

Updating my technical equipment tonight and tomorrow

I'm updating some of my equipment to broadcast so I'll be down for a few days. Nice to see the Utica Shale plays taking off again. Even though the energy sector has turned positive, the Utica Shale players are outgaining most other energy plays. I noticed Gastem hit $.44 today which is a 100% gain from the consolidating base of $.22. What you saw today were investors selling half of the shares picked up at $.22 for a double and letting the rest ride. Nice pull-back action and should reclaim $.50 soon. Waiting patiently for Altai to start it's move.

Monday, March 23, 2009

Initial Daily Web Broadcast...working out the kinks


The first of what I hope to be many daily webcasts is now posted on youtube. By 9:00 PM EST each night, I plan on providing a 5-10 webcast each day recapping the days events in the junior resource market. As this is a work-in-progress, please provide any constructive feedback while I work out the kinks (need to fix the audio lag).

Friday, March 13, 2009

New Update on Altai Resources Available


Due to a death in the family, I had to delay the 1stQ Altai update by a week. The report is available at the top right of the website in the yellow block. Happy Reading.

Saturday, February 28, 2009

To end the argument on the US Govt manipulating the gold price

As a firm believer in the US FED and other Central Banks manipulation of the gold price, I am often asked to show proof that the US engages in such activity. I need to look no further than Alan Greenspan's own words still etched in the Federal Reserve's website confirming such manipulation. He states.....

"The vast majority of privately negotiated OTC contracts are settled in cash rather than through delivery. Cash settlement typically is based on a rate or price in a highly liquid market with a very large or virtually unlimited deliverable supply, for example, LIBOR or the spot dollar-yen exchange rate. To be sure, there are a limited number of OTC derivative contracts that apply to nonfinancial underlying assets. There is a significant business in oil-based derivatives, for example. But unlike farm crops, especially near the end of a crop season, private counterparties in oil contracts have virtually no ability to restrict the worldwide supply of this commodity. (Even OPEC has been less than successful over the years.) Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."

The next question I get asked is why would the US FED and other Central Banks want to cap the rise in the price of gold. I'll let readers form their own opinions on the answer.

Monday, February 23, 2009

Forest Oil Announces Record Results

A nice headline but the real news for us Utica Shale investors was the so-so results on the Utica Shale horizontal drilling as stated in the release:

Utica Shale (60 – 100% WI) – Forest drilled and completed the first three horizontal Utica Shale wells in Quebec's St. Lawrence Lowlands, which were successfully cased and fracture stimulated in four stages with rates ranging from 100 – 800 Mcf/d. Frac load flowback was incomplete due to the lack of coiled tubing units in the area. Forest expects to continue to test its wells after the winter season is over. Although sustained rates were not as high as anticipated, the tests have allowed Forest to identify the section of the shale it intends to target in future test wells. Each of the wells were tested in different sections of the Utica Shale with an objective of gathering data on productivity to allow optimization of future completions. Furthermore, Forest proved the ability to successfully drill the wells horizontally and pump multi-stage slickwater frac jobs without major operational issues.

Hopefully on the call, we'll get some clarification on which sections of the Utica were better than the others (shallow vs deep). Although an initial disappointment, we will hopefully hear better news from Talisman next week on their testing.

Monday, February 16, 2009

February Investor Alert now available via email


In my January alert, I recommended Golden Arrow (GRG.V) at $.20/share and it has since appreciated 25% in a month. My February alert is now available and I believe this stock has the potential to double or triple relatively quickly as it sits at its 52-week low while several other gold juniors are up 2-3 times from their November/December lows (especially those that were priced at the level this stock is currently priced at). I've sent an email out today to those who have signed up so if you want to receive the report, send me an email to and I'll forward the report to you. These are complimentary issues for now but I will be moving to a fee based service soon. By the way, I will have an Altai quarterly update out by the end of this month.

Tuesday, February 3, 2009

Forest press release today

Forest issued a press release on their 2008 results and 2009 plans.

Two things jumped out:

(1) They will do very little work in the Utica in 2009. They are in no hurry since they have almost 10 years to develop the play. In the Haynesville and some of there other US shale plays, they have a limited amount of time to drill the wells based on the leasing structure or they will lose the claims. Therefore, they are focusing on the US claims. This is the problem Gastem/Junex will run into as they let Forest be the operator on some of their permits and Forest can take their good old time to develop it. Altai has the advantage of looking for the right partner who wants to drill now, not later.

(2) Forest is getting NYMEX minus $1.25 on their gas prices from the US whereas the Utica play will get NYMEX plus $1.00. This $2.25 price difference is what makes the Utica so attactive, especially if nat gas price remain low for a period of time.


Monday, January 12, 2009

Double your money every year for 10-15 years

Based on the Yamana press release today, Gualcamayo will give Golden Arrow (GRG) $2 million a year in royalties with their 1% NSR.....and nows the good can buy the entire company right now net of cash/no debt for under $2 million. Just think, spend under $2 million and get a 100% return every year for the next 10-15 years. Brought to you courtesy of the irrational junior market. Sure beats .05% you can get from Treasuries.


Gold Production Estimates (oz) 2009E 2010E----------------------------------------------------------------------
Chapada 140-155,000 135-145,000
El Penon (GEO) 435-465,000 460-480,000
Sao Francisco 75-85,000 90-115,000
Gualcamayo 195-210,000 220-235,000
Jacobina 115-125,000 120-140,000
San Andres 70-,000 70-80,000
Brasileiro 90-95,000 85-95,000
Minera Florida (GEO) 105-110,000 110-120,000
Sao Vicente 55-60,000 50-55,000
Alumbrera 55-60,000 50,000

Gualcamayo, ArgentinaStart-up and commissioning commenced at Gualcamayo in December 2008 with the first gold pour at the end of 2008. Completion of the primary crusher is expected by the end of February as planned. The Company is commissioning the ADR plant and commercial production remains on track for the end of the second quarter of 2009. Gold inventory of mined material exceeded 45,000 ounces at the end of December 2008 and continues to increase. The Company has committed to the construction of the Amelia Ines and Magdalena open pit satellite deposits which is expected to contribute to overall production by second half of 2009. An update to the initial feasibility study relating to the QDD Lower West deposit is expected by the end of January 2009. Total production for the year at Gualcamayo is expected to be approximately 195,000 to 210,000 ounces of gold at a cash cost of between $380-400 per ounce.

Wednesday, January 7, 2009

There's life after all in the Utica Shale

Although still no word on flow rates.

Jan 07, 2009 01:26 ET
Questerre Updates Their Quebec Yamaska Activities


Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) updated operations for the St. Francois du Lac and St. Louis de Richelieu horizontal wells on the Yamaska permits in the St. Lawrence Lowlands, Quebec.Operated by its partner, both horizontal wells were successfully frac'd. Frac operations went according to plan and on schedule. On initial flow back the wells have co-produced burnable gas and frac fluids at varying rates.

The frac plugs were only just recently drilled out with minor operational delays. Tubing has been run in the hole to complete the well for long term production testing which will also assist in lifting the frac fluids for final clean up of the wells. We anticipate it will take several weeks for final clean up of the wells and determination of a final stabilized production rate equivalent to a '30-day rate'.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "These are the two first horizontal wells in the Lowlands and are another step in a multi-well pilot program to evaluate the commerciality of the Quebec shale plays. They represent a critical step in our technical understanding of the Quebec shales and we are obviously pleased with how well the frac operations were carried out. "Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect.

These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.This news release does not constitute an offer of securities for sale in the United States.

These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

Friday, January 2, 2009

Unknown $4 million market cap gold company with a $20-25 million NSR

While we wait for the Forest Oil results, I have put togther a report on a $4 million market cap company with only 15 million shares outstanding that is in the hot junior gold space right now. They have a 1% NSR on a major mining project that will begin production this month. This will generate $20-25 million net profit to this company over the mines 10 year life. This small company is a prime candidate to be purchased by a larger royalty company at a price three times it's current market cap. If anyone is interested in the report, send me an email and I'll send it to you beefore I release it to the public sometime during the middle of next week.

Forest Oil misses their self-imposed deadline

The end of the year has come and gone and Forest Oil has not yet disclosed their preliminary results of their horizontal drilling. I choose not to read too much into this either positively or negatively but it hurts Forest Oil's credibility with analysts and investors when they can't meet their own objectives. No word from Talisman either as these two companies continue to be ultra-secretive as if protecing their young from predators.

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