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Posts tagged ‘Coeur d’Alene Mines Corp (CDM)’

Unlocking Treasure Mountain

May 8th, 2013

Huldra Silver takes an unconventional route to mining and exploration

by Greg Klein

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Update: On June 26, 2013, Huldra put its mine and mill on care and maintenance “to minimize cash obligations.” On July 9 Ryan Sharp stepped down as CEO and was replaced by director Peter Espig acting as interim CEO. On July 26 Huldra announced that it would seek creditor protection under the Companies’ Creditors Arrangement Act and that Sharp had resigned as a director “effective immediately upon the granting of an initial order under the CCAA.”

 

We’re about three and a half hours north of Vancouver, bouncing up a rough mountain road in a four-wheel-drive. The objective? To check out what Ryan Sharp calls “a grassroots exploration company with a producing mine. Or the other way around—a mining company with blue sky exploration potential.” He wants people to see for themselves Huldra Silver’s TSXV:HDA Treasure Mountain and Thule projects because, he says, “We’re not a paper company.” In particular, the nearly 3,000-hectare Treasure Mountain silver-lead-zinc operation hasn’t been divulged on paper nearly to the same extent as most working mines.

Huldra Silver CEO Ryan Sharp

Huldra Silver CEO
Ryan Sharp

“Other mines have gone into production without a feasibility study,” he points out. “Others have done it without a PEA. But very few have gone into production without a resource estimate.”

Well, there was a resource back in 2009. But Sharp maintains it was based on limited data. After investigating the company and its assets, he became convinced of far greater potential. That was in March 2010, when he was invited to join the company as president/CEO/director. Two months later he visited Treasure Mountain for the first time, driving up the logging road without a map. “I got all the way to the mine property without seeing another vehicle, and got out. I started walking through the snow, came across grizzly tracks and ran back to the vehicle. I found my way back to the Coquihalla Highway even though I’d never been up here before, and went home that night.”

But he returned, spending months at a time living in a trailer furnished with an air mattress. “I hiked the hills, I studied the rocks. I was the first person in 40 years to question the geology.” And to complement the geology was some infrastructure—a four-level underground mine built by Huldra in the late 1980s but never put into operation.

He sunk “pretty much 100% of my savings in it” and enticed investors to the site, including Coeur d’Alene TSX:CDM, which currently holds about 10% of Huldra. Financing continued with, most recently, $10 million in convertible debentures that closed last February.

Uphole drilling has brought better core recovery from Huldra’s underground stations

Uphole drilling has brought better core recovery
from Huldra’s underground stations.

To get the mine up and running Sharp hired manager Al Beaton, whose worldwide experience includes a past stint with Huldra during Treasure Mountain’s 1980s development stage. Experienced workers signed up, attracted in part by one of the best locations and climates Canadian miners could hope for. Sharp attributes considerable cost savings to using his own staff, instead of contract mining.

Sharp’s background, on the other hand, might be atypical. But he says, “I have the background for what mining CEOs are going to become.” In addition to seven years as a broker, he headed an environmental construction/remediation firm. “It’s similar to mining in that it’s labour-intensive and equipment-intensive, with lots of permitting and red tape.” His geology is self-taught. Nevertheless the University of British Columbia took him on as an adviser and marker on an honours thesis about Treasure Mountain geology. “I’ve seen more rocks up there than anybody other than Magnus,” he says, referring to Magnus Bratlien, a Huldra director and veteran prospector.

For all that, Sharp insists he’s “the world’s lowest-paid mining CEO.”

Treasure Mountain mining began in November 2011, with commercial production achieved last March. Now Huldra typically sends three trucks hauling 42 tonnes of ore twice a day each to its mill outside Merritt, an hour and 20 minutes away. April totals show 233 tonnes of lead-silver concentrate and 199 tonnes of zinc-silver concentrate went to the smelter, a 42% and 18% increase respectively over the previous month.

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Auguries—Geysers

August 24th, 2012

August 23, 2012

By Kevin Michael Grace

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Gold was up (at press time) $55.40 (+3.4%) for the week to $1,672.10, and silver was up $2.33 (+8.3%) to $30.56. GoldCore attributed gold’s rise to “minutes from the US Federal Reserve meeting convinc[ing]d market participants that QE3 is imminent.”

QE3 is a “done deal,” Bill Gross of Pimco told CNBC August 23. “What the Fed minutes told us is additional easing might be warranted ‘fairly soon’ unless the incoming data pointed to a sustainable strengthening of the economy… I think we need to see months of 3% or better gross domestic product growth before the Fed backs off that particular provision.” And that doesn’t seem likely. How much quantitative easing can we expect? Gross predicts “a relative[ly] open-ended program in terms of size, in terms of time and in terms of what the asset classes is they buy.”

Ambrose Evans-Pritchard reports August 23 that Paul Ashworth of Capital Economics also used the phrase “done deal,” explaining that “little is likely to change between now and the next Fed meeting.” Evans-Pritchard notes, “The shift in Fed policy caught markets by surprise and comes after the European Central Bank’s chief Mario Draghi opened the door to potentially ‘unlimited’ purchases of Italian and Spanish bonds to prevent a Euro breakup. The most radical moves appear likely from China where the managed ‘soft-landing’ risks spinning out of control, with exports contracting on a month-to-month basis over the summer.”

August 23, 2012

Old Faithful: AKA Ben Bernanke.

Mike Shedlock cites August 21 the “increasing isolation of [Bundesbank President Jens] Weidmann, up to the point of open ridicule by the president and vice-president of the ECB,” confirming that “The ECB printing press door is open.” He asks, “How much [will] gold and silver rise in response?”

So, even before we’ve heard from China, we have “open-ended” quantitative easing from America, and “unlimited” quantitative easing from Europe. Forget about money being dropped from helicopters, we’re talking about geysers of money—likely the greatest-ever dilution in the value of paper currency. Which, given past performance, should result in gold and silver rising rather a lot.

And given the failure of all QE efforts since 2008 to arrest what bids fair to become an economic death spiral, we could be witnessing the final furious attempt of the global elite to prevent a long-delayed reckoning.

At the Le Metropole Cafe, Bill Murphy of GATA writes, “Gold has blown through $1,650 key resistance at $1,661 at the moment and silver has broken through its key $30 resistance. This is mega, as you have heard me pound the table on of late.” He goes on to enthuse about “the fortunes which will be made by the coming gold/silver share explosion, which will rival and surpass the Internet craze.”

The most extravagant expression of golden exuberance comes from Egon von Greyerz, managing partner of Matterhorn Asset Management. He tells King World News August 23, “This is going to be one of the fastest moves that we’ve seen in this bull market. We are now talking about gold moving, without any major correction, to the next major target of $4,500 to $5,000. That might seem incredible, but it’s reality. This is a technical target.”

Greyerz says that silver “is going to move a lot faster than gold. The same technical target for silver is $150. That would move the gold/silver ratio down to 30/1. This is the type of move that is hard for investors to comprehend, but this will happen because we have had an energy building up in these markets for almost a year. The release of this energy is going to unleash a massive move. This is not surprising because the destruction of paper money is continuing. Because the money printing is going to accelerate so much in the future, paper currencies are going to reach their intrinsic value, which is zero. We are well under way to that becoming a reality.”

Greyerz concludes, “As this move progresses we will see gold advance well over $100 a day. We will also see silver moving several dollars a day. So this will be relentless. I would just add that many of the junior mining shares are likely to have absolutely massive moves to the upside because they are so cheap and so oversold.”

It would be easy enough to write off this excitement as typical goldbuggery, but the next few months will, if nothing else, certainly test the hypothesis advanced consistently in this space. If the global economic system is fundamentally flawed, and if the US dollar will become so debased that it can no longer function as the safe haven, then capital must flow elsewhere. And if not precious metals, then where?

Stock Tips and Joke of the Week

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Auguries—Thinking The Unthinkable

August 10th, 2012

August 9, 2012

By Kevin Michael Grace

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Gold was down (at press time) $4.80 (-0.3%) for the fortnight to $1,615, and silver was up $0.49 (+1.8%) to $27.94. According to GoldCore, “Recent dollar strength and a lack of clarity in the minds of many market participants regarding whether the [European Central Bank] or the US Federal Reserve Bank will employ more quantitative easing to prevent double-dip recessions and even depressions may be partly to blame for gold’s lack of gains recently.”

However, “The dollar is set to weaken again due to the appalling US fiscal situation, and further quantitative easing and money printing on behalf of the Fed, ECB and [Bank of England] is almost inevitable.” We shall see.

The planted axiom in all such predictions is that the State has the power to compel the economy to do its bidding. One wonders for how long the State, as currently constituted, will be able to presume to hold such power.

August 9, 2012

Berlin, 1848: To the barricades again?

Reuters reports August 7, “Italy shrank further into recession in the second quarter for a 2.5% yearly decline, data showed on Tuesday, threatening attempts by Mario Monti’s technocrat government to control a debt crisis that is undermining the whole Eurozone.” What does “technocrat government” mean?

Wikipedia explains that on November 16, 2011, Monti, an unelected Senator for life, “was officially sworn in as Prime Minister of Italy, after unveiling a technocratic cabinet composed entirely of unelected professionals.” It would appear then that Monti is a dictator, and his cabinet ministers are consuls. That’s the Old Roman way, but it’s not what we understand as constitutional democracy.

Why the European Union expects Monti’s diktaks to be obeyed by the Italian people is anyone’s guess. The EU has not yet appointed a dictator for Spain, but the same problem applies. Mario “Batman” Draghi is now the Pontifex Maximus of the Church of Europe, just as Benedict XVI is the Pontiff of the Roman Catholic Church. They were both elected solely by their peers, but the difference is that no one is compelled to remain a Catholic, while apostasy from the European Church is not an option.

Peter Schiff, the prophet of the housing collapse, declaims, “Two-thousand and eight was just an overture. The opera is coming. The real financial crisis is coming in 2013, 2014. And so, we’ll get a real choice, a fork in the road. One way is going to lead toward complete authoritarianism, complete totalitarian government, and the other way is going to lead back to freedom.” Unfortunately, Schiff does not specify the means by which the road to freedom will be constructed.

At the Automatic Earth, Raúl Ilargi Meijer argues, “Here’s your key: It’s the people, stupid! Not the economy; it’s only the economy if that economy can actually be resurrected. The future of Spain and Europe will be decided in streets and kitchens and living rooms, not in bank vaults and boardrooms. You can only squeeze the people so far. That’s not some political statement, nothing to do with socialism or anticapitalism; it’s just a basic fact. Apparently, it’s going to take a brush with reality for many loud-mouthed pundits and politicians to figure that one out. So be it.”

Call him hysterical or dangerous, but he could be right. It is a commonplace in the West that political violence is “unthinkable.” But this is merely a shibboleth of our post-1945 regime. Not for the first time (and not for the last), this space defers to James Burnham’s (1943) The Machiavellians, which could have been titled, The Way The World Really Works. Here he paraphrases the French syndicalist Georges Sorel: “The lessening of overt acts of violence in social relationships is merely the correlative of an increase in fraud and corruption. Fraud, rather than violence, has become the more usual road to success and privilege. Naturally, therefore, those who are more adept at fraud than at force take kindly to humanitarian ideals. Crimes of fraud excite no such moral horror as acts of violence.”

Burnham then quotes Sorel directly, “We have finally come to believe that it would be extremely unjust to condemn bankrupt merchants and lawyers who retire after moderate catastrophes, while the princes of financial swindling continue to lead gay lives. Gradually the new industrial system has created a new and extraordinary indulgence for all crimes of fraud in the great capitalist societies.” Remarkably prescient for a book published in 1906.

Ilargi contends, “The ‘resolution’ of the LIBOR scandal (which will probably never be completed) will show us once again that we have a choice to make between either saving the banks or saving our economies and societies. We can’t do both. But in all honesty, I doubt that the prospect of such a choice is real. It looks to me like the choice has long since been made by a succession of unrepresentative representatives we elected with our empty votes, and who have left us with a runaway crossover between Frankenstein and the Sorcerer’s Apprentice. I wasn’t kidding when I said the other day that if you want your vote to count, you’ll have to get out into the streets to do so.”

Again, we shall see. As for QE3 being “almost inevitable,” Peter Schiff dispenses with the “almost.” “When Ben Bernanke says we’re only going to give the economy more stimulus if it needs it, it’s like telling a heroin addict, ‘We’ll only give you more heroin if you need it.’ The economy is going to need it, because without it, it’s going to collapse. But it’s not right to give a heroin addict more heroin just because it’ll keep him high.” Not right but certainly good for gold.

Stock Tips and Joke of the Week

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An Outlaw Nation

August 2nd, 2012

Bolivia Seizes South American Silver’s Malku Khota Project

By Kevin Michael Grace

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Read the Resource Clips interview with South American Silver President/CEO Greg Johnson

Since Evo Morales became President of Bolivia in 2006 there has been a struggle between his two halves. There was the soulful and iconic Indian with his love of Pachamama (Mother Earth) and the desire to forge a Third Way between Left and Right. And then there was the admirer of Che Guevara who waged war against big business, Yanquis and the Catholic Church. With the August 2 confirmation of his government’s expropriation of South American Silver’s TSX:SAC Malku Khota project, the struggle is over, and Morales has joined Juan Perón and Hugo Chavez in the ranks of Latin American strongmen.

National Bank Financial analyst Paolo Lostritto (an early supporter of and investor in SAC) is unequivocal about the consequences of the nationalization for Bolivia. “There isn’t certainty of title,” he declares, “and it doesn’t matter how you risk-adjust it, the equation is worth zero. No matter how big the size of the prize, it doesn’t matter. When you multiply anything by zero, you get zero. Therefore, you get a lack of willingness of people to invest capital in that country. Bolivia has shown it’s not open for business.”

Bolivia Seizes South American Silver's Malku Khota Project

South American Silver at Malku Khota: A group of fewer than 200 engineered its takeover.

Malku Khota, located in southwest Bolivia in Potosí Department, is owned by Compañía Minera Malku Khota SA, a wholly-owned subsidiary of SAC, which is headquartered in Vancouver. It contains 370.3 million ounces silver, 1,576 tonnes indium and 2,083 tonnes gallium. A 2011 PEA forecast annual production of 13.2 million ounces silver (at US$2.94 per ounce) for the first five years, 80 tonnes indium and 15 tonnes gallium. Based on $25 per ounce silver, Malku Khota has a US$1.54 billion NPV (at a 5% discount rate), a 64.3% IRR, annual cashflow of US$287 million and a 15-year mine life.

According to Agence France-Presse, the Bolivian government claims there has been no nationalization, as it had never had an agreement with SAC but only with Compañía Minera Malku Khota. AFP quoted Mines Minister Mario Virreira as saying that what the world is calling expropriation is merely “control from now on activities related to exploration and planning” at Malku Khota. The story reported, “The government has contracted an independent company to evaluate the investments made in the mine over the next 120 days. Results of that study will be used to determine the amount of compensation paid to South American Silver.”

Miners spend years throwing money into the ground before they start taking money from the ground. Even if a country has a good mining policy in any given year, mining companies are more interested in what the mining policy will be five to 20 years down the road. If they can’t trust domestic stability, that’s a reason to veto an investment, even if the current policy is good —Fred McMahon

SAC President/CEO Greg Johnson was unavailable for comment Thursday, but he told Resource Clips July 29, “I’m not exactly sure what to think. As recently as May 28, the Mines Ministry acknowledged that our concessions were valid and that the people that lived in the community wanted the project to move forward.”

The expropriation is the terminus of a rapid and suspicious chain of events. According to Johnson, SAC had the strong support of 43 of 46 ayllus, local villages in the project area. Three holdout villages, fewer than 200 people overall, opposed SAC; they were engaged in illegal artisanal mining alleged to be the cause of local water pollution. (The three ayllus and their supporters blame SAC.)

The campaign against SAC went national with large protests in La Paz. The project site was inundated with protestors armed with explosives. The protestors then took hostages, and one was killed after a battle with police. Johnson told Resource Clips, “A little more than a month [after May 28], you had another arm of government, the Labour Ministry, signing an agreement to release the hostages and asking for our concessions to be cancelled.”

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Auguries—Treason of the Clerks

June 28th, 2012

June 28, 2012

By Kevin Michael Grace

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Gold was down (at press time) $12.40 (-0.8%) for the week to $1,552.10, and silver was down $0.65 (-2.4%) to $26.29. According to Reuters, gold is “acting more like a risk asset than a safe-haven investment…influenced by pessimistic expectations for a European Union summit that is unlikely to yield the magnitude of measures needed to tackle its debt crisis.”

Good old Reuters. At the Globe and Mail, Tim Kiladze mocks, “Here’s a simple question for the goldbugs: if their precious metal is such a safe haven, why hasn’t it shot up as the European debt crisis unravels?”

He continues, “Over the past few years, investors have been pitched the same old story: with global financial markets in turmoil, there was no safer place to park your money than gold. Equity markets could plummet, but gold would be safe. Anyone who questioned this theory was apparently some sort of apostate. But now the dissenters are smirking…. Since its 2012 peak in February, the metal is down 12%. Quite strange, wouldn’t you say? If there was any time for gold to shoot up, it would be now. Fear is spreading like a global virus, for good reason.”

June 28, 2012

Barclays branch: Certainly looks boring, cozy and reassuring.

Is this the same Tim Kiladze who lamented four days earlier, “When will investors learn that fear is toxic?” Sure, things look grim, but we are best advised to seek the good counsel of Dr Pangloss: “What investors keep forgetting is that somehow, we keep making it work…. I’d argue that we aren’t really in a full-blown crisis. It’s simply a crisis of confidence.”

The only thing we have to fear is… how does that go again? Oh yeah, fear itself. Never mind that FDR was absolute rubbish at reversing or even ameliorating the Great Depression. It took a World War to do that. God save us from that economic remedy.

What’s Kiladze’s remedy? Angela Merkel must loot Germany to appease the bankers. God knows their integrity and disinterested dedication to the commonweal are without question. Of course there will always be dissenters and apostates. Like Chris Powell of GATA, who “told Bernie Lo on CNBC Asia…that central banks are continuing to manipulate the gold market as they are interested in supporting government bonds and the dollar and keeping interest rates low.” Powell says that “75% to 80% of the gold that the world thinks it owns does not exist and is just a claim on a bullion bank that is underwritten basically by the central banks.”

There’s an explanation for why gold hasn’t been safe havenish of late. But Powell is just a crank, right? Bankers engaging in such behaviour? Unthinkable. What’s that you say? “Barclays has agreed to pay US$453 million in fines to UK and US regulators to settle its part of an investigation into whether banks manipulated the London Interbank Lending Rate, known as Libor.” One rogue bank, right? Not so fast. “Most of the world’s biggest banks are under investigation as regulators from Europe, North America and Japan attempt to prove banks rigged rates.”

And what’s this? “Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates [of $2 billion]…. ‘Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank,’ said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner.” Gosh, Jaime Dimon couldn’t have gambled with public accounts and then withheld reporting the full extent of his losses, could he?

Let’s have one more, shall we? Barclays’ chief Bob Diamond (2011 compensation: £23 million), says he won’t resign and blames the scandal on a “small number” of employees. This would be the same Bob Diamond the Independent called “the most dangerous man in Britain,” referring to his “gargantuan ambition and his miniscule judgment.” As evidenced by his desperate efforts to buy both ABN Amro and Lehman Brothers shortly before the 2008 crash. The Independent asked, “What happens when Diamond’s luck runs out?” We may soon find out.

A British columnist writes, “[Bankers] have become today’s hotshot heist artists. They collect swag on a scale beyond the Great Train Robbers’ dreams, and none of them goes to prison even when the figures show that they are pocketing millions for delivering disaster…. I cannot think why anyone would voluntarily sit down at a table with the likes of Bob Diamond. These people should be social pariahs. The phrase ‘High Street banks’ once suggested something boring, cozy and reassuring…. Nowadays, of course, it is all different. Diamond and his ilk see their businesses as giant shark tanks in which they themselves are the only occupants that matter, the rest of us mere prey.”

Some Guardianista venting his envy, right? No, this is Sir Max Hastings, pillar of the Establishment, prominent military historian, former editor of the Daily Telegraph and Evening Standard, writing in the Daily Mail, the most right-wing of British papers. If Hastings is representative of emerging opinion, the likes of Bob Diamond might end up begging for prison, if only to prevent their collection in tumbrels.

Stock Tips and the Joke of the Week

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Auguries—Endgame

June 14th, 2012

June 14, 2012

By Kevin Michael Grace

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Gold was up (at press time) $28.30 (+1.8%) for the week to $1,619.60, and silver was down $0.13 (-0.3%) to $28.41. According to Goldcore, “Gold appears to be consolidating after hitting its fourth session of gains, when weak US economic data, in the form of poor retail sales, led to renewed QE chatter. [It] is likely also being supported by real concern about the outcome of Greece’s elections on Sunday.”

Ah, quantitative easing, the Walter White-grade intoxicant demanded by globalists worldwide. Reuters reports June 13, “Many more years of money printing from the world’s big four central banks now looks destined to add to the $6 trillion already created since 2008… As rich economies sink deeper into a slough of debt after yet another wave of Euro financial and banking stress and U.S. hiring hesitancy, everyone is looking back to the US Federal Reserve, European Central Bank, Bank of England and Bank of Japan to stabilize the situation once more.”

“Stabilize,” heh heh. “After four years in which, according to HSBC, the balance sheets of the Big Four have collectively more than tripled to $9 trillion and still not generated self-sustaining recoveries, the question is how long this can keep going on without creating bigger problems for the future.”

June 14, 2012

The future is now, and stability has left the continent. Just five days after being offered a €100-billion “rescue package,” Ambrose Evans-Pritchard reports that “Spain’s borrowing costs have surged to record highs and are perilously close to the point of no return, threatening a full-blown sovereign crisis unless the European Central Bank comes to the rescue.”

According to Jens Sondergaard of the Japanese bank Nomura, “It is very worrying. Markets are behaving as if the Eurozone is heading for breakup.” Wherever would they have got that idea? Thank goodness Sondergaard has a solution. No prize for guessing what that might be. “He said the ECB should slash interest rates by half a point to 0.5% and ‘pre-commit’ to half a trillion Euros of QE over coming months, blanketing the Spanish and Italian bond markets.”

Meanwhile, Reuters reports June 11, “European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing Eurozone capital controls as a worst-case scenario should Athens decide to leave the Euro.” This is the European Common Market, right?

Almost 40 years ago, back when your columnist was a young man, he heard Malcolm Muggeridge say, with considerable amusement, that, according to the socialists, the solution to the failures of socialism was always more socialism. This would appear to be a general principle that applies to all failed systems.

Fifty years ago, Thomas Kuhn, in his groundbreaking The Structure of Scientific Revolutions, posited that (Wikipedia), “The evolution of scientific theory does not emerge from the straightforward accumulation of facts but rather from a set of changing intellectual circumstances and possibilities.” Crude paraphrase: scientific orthodoxy changes only after the doyens of orthodoxy die. This would appear to be a general principle as well, one that applies to all intellectual change.

For a hilarious but sad example of both general principles, readers are directed to Terence Corcoran’s interview of Robert Mundell, 1999 Nobel laureate in economics. He is known as “the godfather of the Euro,” and it speaks to his bravery that he continues to embrace this sobriquet. As the EU stands on the brink of dissolution, Mundell proclaims, “The Euro is a world currency par excellence. It is second only to the dollar. Indeed, it is challenging the dollar as a stable global unit of account and could have a great future as an international reserve asset. The Euro has passed its youth with flying colours.” He is defiant: “The Euro—barring a political revolution in Europe—is here to stay.” It’s funny how all the Euro’s men have gone all Samson in the temple.

Mundell insists that Europe doesn’t have a “Euro problem.” “If the Government of Canada or Newfoundland or Ontario ran up their public debts, and had big current deficits to boot, would that be a debt-deficit problem or a loonie problem? If California is on the verge of insolvency would that be a US dollar problem or a debt-default problem for California?” If you or I were to assert an equivalency between the politico-economic systems of Canada and the United States and the European Union, we’d be ridiculed, but we haven’t been feted in Stockholm, have we?

Not that Mundell doesn’t admit the EU has a problem. Thank goodness he has a solution. No prize for guessing what that might be. “Ultimately, the European Commission should become the executive power, and the Council should be turned into an Upper House of Parliament, with national representations that take some account of population size.” Yes, of course, the solution to the failures of centralization is always more centralization.

Stock Tips and the Joke of the Week

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Paramount reports Mexico Assays of 1.26 g/t Gold, 255.84 g/t Silver over 12.2m

May 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningParamount Gold and Silver Corp TSX:PZG announced results from La Bavisa Target on its San Miguel Project in northwest Mexico. Highlights include

1.26 g/t gold and 255.84 g/t silver over 12.2 metres
(including 4.24 g/t gold and 817.67 g/t silver over 3.1 metres)
0.97 g/t gold and 130.86 g/t silver over 7.1 metres
(including 1.61 g/t gold and 194.5 g/t silver over 2.5 metres)
0.42 g/t gold and 95.91 g/t silver over 4.6 metres
1.2 g/t gold and 129 g/t silver over 0.6 metres
0.45 g/t gold and 126.47 g/t silver over 5.7 metres
0.16 g/t gold and 26.97 g/t silver over 3.1 metres

CEO Christopher Crupi stated, “With this discovery, we continue to generate exceptional results at San Miguel by exploiting our growing understanding of its structural setting and mineral deposition. It is now clear to us that the best deposits in the district are controlled by two major corridors or mineralized trends—the Guazapares Trend, 100% owned by Paramount and the Palmarejo/Don Ese Trend, which we share with Coeur d’Alene TSX:CDM, where our Don Ese and La Bavisa discoveries are located. Both trends show similar styles of high-grade gold and silver mineralization. These major mineralized trends tie together the different zones we have found into large, coherent structures with the potential for sizeable open-pit and underground mining as Coeur d’Alene has amply demonstrated. We are pressing forward with our preliminary economic assessment of San Miguel but we are still in the early stages of defining its resource potential. With our very large land position in the heart of the Palmarejo District, we expect to make many more discoveries.”

View Company Profile

Contact:
Glen Van Treek
VP of Exploration
866.481.2233

or Chris Theodossiou
Investor Relations
866.481.2233

by Greg Klein

Coeur d’Alene, Mirasol report Argentina Silver Assays including 71 g/t over 156m

May 11th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningCoeur d’Alene Mines Corporation TSX:CDM in joint venture with Mirasol Resources Ltd TSXV:MRZ announced assays from the La Negra Deposit of the Joaquin Silver Project in Santa Cruz Province, Argentina. Results include

64 g/t silver over 37 metres
98 g/t silver over 25 metres
0.57 g/t gold and 91 g/t silver over 25 metres
(including 1.1 g/t gold and 164 g/t silver over 12 metres)
63 g/t silver over 49 metres
77 g/t silver over 38 metres
71 g/t silver over 156 metres
77 g/t silver over 27 metres
72 g/t silver over 46 metres
179 g/t silver over 45 metres (including 1,077 g/t silver over 6 metres)
0.79 g/t gold and 3,208 g/t silver over 26.6 metres
(including 1.84 g/t gold and 17,905 g/t silver over 3 metres)
0.59 g/t gold and 1,970 g/t silver over 28 metres
215 g/t silver over 45 metres
211 g/t silver over 27 metres

Coeur d’Alene has a 51% interest in the Joaquin Project and is the operator. The project has indicated resources of 19.69 million ounces silver and 36,000 ounces gold, and inferred resources of 47.95 million ounces silver and 43,000 ounces gold.

View Company Profile

Contact:
Mirasol Resources Ltd
Mary L. Little
President/CEO
604.602.9989

by Ted Niles

Auguries — The Great And Powerful Oz

March 1st, 2012

March 1, 2012

By Kevin Michael Grace

Gold was down (at press time) $59.10 (-3.3%) for the week to $1,722, and silver was up $0.14 (+0.4%) to $35.62. Gold made a modest (and silver a more robust) recovery Thursday, but on Wednesday gold fell almost $100 at one point, with silver falling over $2.50.

The Globe and Mail noted, “Gold’s plunge to less than $1,700 an ounce marked the biggest one-day percentage drop for the metal in more than three years.” It attributed the Leap Day Massacre to the Ben Bernanke having “delivered three hours of testimony without once indicating he felt the need to create more money.” This was the majority view. The Globe quoted Jon Nadler of Kitco, who “said some investors had been expecting that Mr Bernanke, in Congressional testimony, would indicate the Fed was open to another round of so-called quantitative easing—a policy that creates new money and causes people to flock to the perceived safety of gold to protect themselves from inflation.”

March 1, 2012

With all due respect, the majority view is rubbish. If it’s quantitative easing goldbugs were looking for, they just got plenty of it from Europe. Ambrose Evans-Pritchard reports in the Telegraph, “Some 800 banks took up €529.5bn of loans at [European Central Bank President Mario] Draghi’s second long-term refinancing operation (LTRO) on Wednesday, borrowing at 1% for three years with almost any form of collateral. Citigroup said this amounts to €316bn of fresh liquidity, stripping out renewal of old loans. This compares with €200bn in extra stimulus at the first LTRO in December.”

US$421 billion of fresh liquidity at 1% with notional collateral to prop up a doomed monetary union. That’s a good day’s easing and the stuff goldbugs’ dreams are made of. So what’s the real explanation for Wednesday’s gold collapse? GATA says it’s a heavy hand on the scale, and it has evidence to back up its claim. CIBC reported, “Looks like a large seller of gold in the market, as a 10,000 contract traded, down-ticked the price by $40 per ounce and represents 1 million ounces of gold sold. Roughly 200,000 contracts trade per day, but unusual to see such a large single trade. Not likely due to contract expiry either. Bernanke isn’t really helping either, but we haven’t seen any either-size transactions post the one big trade, so hopefully will see the price decline settle down. Shortly after the 10,000 order, which was closer to 11,000 contracts, looks like one size seller out there. Sold 1.8 million ounces of gold on the day. Smells like a liquidity squeeze.”

GATA’s Chris Powell observed, “Another gold fund manager, Gabelli’s Caesar Bryan, today tells King World News that yesterday’s bombing of gold was done by a not-for-profit seller, the strange sort of selling that keeps turning up at strategic moments in the market, and he’s starting to wonder if it has something to do with central bank intervention. Welcome to Planet Earth, Mr Bryan!”

Powell noted that GATA President Bill Murphy’s “frequent observations about this sort of selling led to GATA’s formation in January 1999, and GATA has been screaming about it for the 13 years since then.”

Gold’s biggest one-day percentage drop in three years blamed on a lack of QE on a day when the ECB declared “QE or Bust!” is such an obvious sleight of hand that one might expect the entire financial world to start screaming. But the mainstream media knows its job—when the great and powerful Wizard of Oz speaks, they paraphrase his remarks and publish them as “informed sources.”

Thankfully, there are some willing to look behind the curtain. Jim Sinclair told King World News, “If, in fact, what Bernanke attempted to tell the investment world today, that QE may not be necessary because of a modest improvement in the statistics of unemployment, if that was truly to be believed, then the stock market should have been off 800 points while gold was down $100. Because the same thing moving the stock market is what’s moving the metals, and that is pure liquidity.”

Sinclair said of the latest European bailout, “We know the money that’s been coming into the ECB has been coming in from two places. It’s been coming in from the IMF and from swaps done by the US Federal Reserve. (This money flows, in order, through these entities) Federal Reserve (to the) IMF, IMF (to the) ECB, ECB (to the) member banks. (This is) pure QE on a global scale. [Wednesday] does qualify as one of the biggest injections of liquidity into the system in the history of the system. Today was a cover-up by the US Federal Reserve and by the mainstream media of one of the largest injections of liquidity into the system that has ever occurred.”

And even before Draghi’s latest injection, Donald Coxe of the Bank of Montreal knew the score. He told Martin Mittelstaedt of the Globe, “What we’re seeing now is something that an earlier generation of gold enthusiasts would have said: ‘If that happens, the price of gold will be infinite.’ In the last four months the club of the unlimited printers of money has trebled, so we’ve gone from the Fed being the only one, with some help from the Bank of England, to the European Central Bank and the Bank of Japan. What we’re having is an unbelievable amount of paper money being created.”

Echoing what this column has long asserted, Coxe says that ever stronger gold is a counterweight to an ever weaker global economy. Specifically, “If we’re talking about $3,000 gold or something, I’m telling you that’s going to be a very bitter world to be in.”

Any chance gold miners might cash in before the apocalypse? At the Globe, noted goldbear David Berman declares, “If gold keeps rising, small is beautiful.” He means junior miners.

And now to cases. Berman notes that “Detour Gold Corp TSX:DGC is a great example. The share price has surged a total of 680% over the past five years, more than four times the gain in gold and more than 12 times the gain of big-cap producers such as Barrick Gold Corp TSX:ABX and Goldcorp Inc TSX:G over the same period.” Similarly, Premier Gold Mines Ltd TSX:PG, Semafo Inc TSX:SMF and Rubicon Minerals Corp TSX:RMX have produced stellar five-year returns, ranging between 167% and 347%, that have beaten gold.” Caveat: “This is a backward-looking analysis, of course. But it demonstrates why these smaller companies can be so alluring when gold is shining.”

Here are some analyst price targets as reported by Reuters. February 24: NBF has Golden Star TSX:GSC up from $1.85 to $2.10 (currently $1.92) and has Virginia Mines TSX:VGQ at $12.70 (currently $9.35), while Canaccord Genuity has Prodigy Gold TSXV:PDG down from $1.90 to $1.75 (currently $0.77). February 27: Canaccord has Alamos Gold TSX:AGI up from $23.50 to $26.50 (currently $18.37). February 28: CIBC has Rainy River TSX:RR up from $10 to $11 (currently $7.46) and Trelawney TSXV:TRR down from $6.50 to $4.25 (currently $2.36). February 29: RBC has Lake Shore Gold TSX:LSG down from $3 to $2.70 (currently $1.54), and CIBC has Thompson Creek TSX:TCM down from $14 to $13 (currently $7.20).

At the Gold Report, Resource Opportunities Publisher Lawrence Roulston asserts, “If I were to describe the ideal company for the present market, it would be in gold. It would have near-term production potential with longer term, large-scale discovery potential. One company, Lion One Metals TSXV:LIO, fits that description well.”

And Simon Lack of SL Advisors is sweet on Coeur d’Alene Mines TSX:CDM, projecting an “upside case” of a $50 share price (currently $27.72).

Finally, the Vancouver Sun has announced the cast of the breathlessly awaited The Real Housewives of Vancouver. Auguries’ favourite is “free-spirited jet-setter Christina Kiesel,” who is unmarried and has no children. A rum sort of housewife, that. Christina, who boasts, “My primary source of income is two divorces,” is described as “a modern-day Brigitte Bardot.” Passing strange, for Bardot is a legendary model, actress and singer, while Christina has no known accomplishments. Perhaps, like the iconic Frenchwoman, Christina holds controversial opinions on Islam, immigration and the ritual slaughter of livestock. Surely there must be more to her than sacrificial mutton dressed as lamb.

Coeur d’Alene, Mirasol report Argentina Silver Assays as high as 343 g/t over 36m

February 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningCoeur d’Alene Mines Corporation TSX:CDM in joint venture with Mirasol Resources Ltd TSXV:MRZ announced assays from the La Negra and La Morocha silver deposits of the Joaquin silver project located in Santa Cruz Province, Argentina. Results include

69 g/t silver over 19 metres
343 g/t silver over 36 metres (including 4,900 g/t silver over 2 metres)
1,075 g/t silver and 0.91 g/t gold over 1 metre
397 g/t silver over 4 metres
64 g/t silver over 14 metres
179 g/t silver over 14 metres
163 g/t silver and 2.77 g/t gold over 5.2 metres
136 g/t silver and 6.79 g/t gold over 1 metre
540 g/t silver over 2 metres
41 g/t silver over 10 metres

Coeur d’Alene holds a vested 51% interest in the Joaquin project, and has elected to proceed to increase its equity to 61% by funding all expenditures through to the delivery of a full feasibility study.

View Company Profile

Contact:
Coeur d’Alene Mines Corporation
Stefany Bales
Director, Corporate Communications
208.667.8263

or Mirasol Resources Ltd
Mary L. Little
President/CEO
604.602.9989

by Ted Niles