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Posts tagged ‘Virginia Mines Inc (VGQ)’

Athabasca Basin and beyond

December 7th, 2013

Uranium news from Saskatchewan and elsewhere for November 30 to December 6, 2013

by Greg Klein

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Introducing the Alpha Minerals spinco—Alpha Exploration Inc

With court blessing announced December 2 for the Alpha Minerals TSXV:AMW takeover by Fission Uranium TSXV:FCU, the deal faces just one more approval, this one from the TSXV. That was expected, but not announced, on December 6. Alpha’s spinco, Alpha Exploration Inc (anticipated ticker TSXV:AEX) gets about $3 million cash and all non-Patterson Lake South assets, including properties in Ontario and British Columbia as well as Saskatchewan. Each Alpha Minerals share fetches 5.725 Fission shares and one-half spinco share. Since December 3 Alpha Minerals shares have no longer traded with spinco shares attached.

The current Alpha Minerals board and management will “substantially” move into AEX positions.

Court approval for Fission Uranium’s spinco—tentatively titled Fission 3.0 to also commemorate Fission Uranium’s predecessor and Denison Mines’ TSX:DML acquisition Fission Energy—was announced the previous week. Each Fission Uranium shareholder gets one share of post-arrangement Fission Uranium as well as a share of the Fission spinout, expected to start trading December 10.

Having obtained full PLS ownership from its 50/50 joint venture ally, Fission Uranium has undoubtedly caught the attention of much bigger takeout artists.

Read more about the takeover.

Read more about uranium merger-and-acquisition activity.

Lakeland/Declan Resources JV accelerates work, strengthens their positions

In this market you have to work with strong partners. You have to collaborate and be a bit creative. We’re fortunate to work with people like Declan president Wayne Tisdale’s team and the financial connections they can bring.—Ryan Fletcher, director of Lakeland Resources

A new team of Lakeland Resources TSXV:LK and Declan Resources TSXV:LAN means an accelerated winter drill program for their Gibbon’s Creek flagship as well as the opportunity to put additional work into other Basin-area projects.

Declan’s first-year commitment will inject another $1.25 million into Gibbon’s, a 12,771-hectare north-central Basin property that already underwent over $3 million of work prior to last fall’s field campaign by Lakeland. Declan may earn 50% of the project by spending that $1.25 million, paying Lakeland $100,000 and issuing two million shares in 12 months. Over four years Declan may obtain a 70% interest for a total of $1.5 million in cash, 11 million shares and $6.5 million in spending.

The agreement further demonstrates Declan’s new direction, following its acquisitions in September and October of the 9,000-hectare Patterson Lake Northeast and 50,000-hectare Firebag River properties.

Declan’s commitment also allows Lakeland to ramp up its campaign for two other north-central Basin properties, South Pine and Perch Lake. Work on all those properties will be managed by Dahrouge Geological Consulting, led by PLS and Waterbury Lake veteran Jody Dahrouge.

Field results from Lakeland’s fall campaign are pending, while new appointments are anticipated from Declan.

Read more about the Lakeland/Declan JV and their other projects.

Read more about Lakeland Resources here and here.

Macusani claims low-cost uranium potential in Peruvian PEA

Macusani Yellowcake TSXV:YEL presented its case for a low-grade but potentially low-cost uranium mining operation in Peru with a preliminary economic assessment released December 5. The company envisions both open pit and underground operations with “a low stripping ratio in the open pit operations, anticipated low acid consumption and high process plant recoveries expected to be achieved in a short period of time.”

Uranium news from Saskatchewan and elsewhere for November 30 to December 6, 2013

The under-explored Macusani plateau shows considerable
uranium potential, according to the eponymous Macusani Yellowcake.

The report, using U.S. dollars, uses an 8% discount rate to calculate a $417-million after-tax net present value with a 32.4% internal rate of return. Those numbers assume a long-term price of $65 a pound uranium oxide (U3O8).

Initial capital expenditures would come to $331 million to build the mine and a plant processing 8.5 million tonnes per year. Total sustaining capital costs for the 10-year lifespan would reach $228 million. Payback would take 3.5 years.

Life of mine cash costs would average $20.57 a pound but, Macusani emphasized, years one to five would average $19.45, “placing it in the lowest quartile in the world using 2012 production figures.” Those first five years would produce an average 5.17 million pounds annually which would, were it operating now, rank the mine the world’s sixth largest, the company maintained. The 10-year average would be 4.3 million pounds.

The project, on the Macusani plateau in southeastern Peru, features multiple deposits, some adjacent to each other, others a few to several kilometres apart. The December 5 news release once again claimed last August’s resource update showed a 167% increase in measured and indicated categories. But there was no increase in the measured category. In fact measured pounds equal less than 1% of the M&I total.

Calling the project potentially “one of the lowest-cost uranium producers in the world,” Macusani CEO Laurence Stefan added, “The PEA demonstrates that the Macusani plateau has significant potential to become a major uranium-producing district, considering that only small areas have been explored to date.”

The company expects to begin pre-feasibility work in 2014.

NexGen announces initial geophysical results for Rook 1

An airborne radiometric survey over the PLS-vicinity Rook 1 project found at least five zones with elevated readings, NexGen Energy TSXV:NXE reported on December 2. Two of the zones are “proximal” to last summer’s drilling and could provide targets for another program beginning in January. Additionally aeromagnetic data identified regional and local basement structures.

The company will pursue the source of the elevated radiometrics next summer through ground radiometric surveying, mapping and sampling. Meanwhile the current data from 5,772 line-kilometres of high-resolution magnetic, very low frequency and radiometric surveys undergoes more comprehensive analysis.

Still to come are assays from NexGen’s nine-hole, 3,473-metre campaign at the eastside Basin Radio project, where the company holds a 70% option two kilometres east of Rio Tinto’s NYE:RIO Roughrider deposits. Having raised $5 million in late August, NexGen stated it’s still well-financed.

More near-surface, district-wide potential found in Argentina, says U3O8

In mid-November U3O8 Corp TSX:UWE said a discovery roughly 40 kilometres northeast of its Laguna Salada deposit could indicate district-scale potential. On December 4 the company stated another Argentinian discovery, on the southern extension of Laguna Salada, further suggests that potential. In both cases vertical channel sampling found near-surface, soft gravel uranium-vanadium mineralization.

Laguna Salada trials showed that screening could concentrate over 90% of its uranium in about 10% of the gravel’s original mass, resulting in 10 to 11 times greater grade, U3O8 stated. The company maintains its deposits offer continuous surface mining potential with alkaline leaching.

Dubbed La Susana, the new discovery’s slated for pitting and trenching to determine the extent of mineralization. While Laguna Salada’s PEA nears completion, the company continues JV negotiations with a province-owned mining company that could unite Laguna Salada with adjoining concessions.

U3O8 has a Colombian uranium-polymetallic project with a PEA and an earlier-stage project in Guyana.

Aldrin finishes Triple M gravity survey, offers $2-million private placement

With its ground gravity survey complete, Aldrin Resource TSXV:ALN stated anomalies coincide with previous results and already-identified drill targets. Data from 871 stations on Triple M, adjacent to and southwest of PLS, covered two parallel bedrock conductors already noted from an airborne VTEM survey and surface radon anomalies, the company reported on December 4.

Gravity anomalies consist of relatively low readings “reflecting the dissolution and removal of rock mass by the same basinal fluids that may also precipitate uranium,” Aldrin explained.

Two days earlier the company announced a $2-million private placement for Triple M exploration and drilling. The offer comprises 18.18 million units at $0.11, with each unit consisting of one flow-though share and one-half warrant, with each full warrant exercisable at $0.16 for 18 months.

In early November Aldrin reported closing a $972,500 first tranche of a private placement that had been announced the previous month. The company has also indicated plans to buy the Virgin property around the Basin’s south-central rim.

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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 — 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.

Auguries — Man Of The Year

December 22nd, 2011

December 22, 2011

By Kevin Michael Grace

Gold was up (at press time) $33.90 (+2.2%) for the week to $1,607.70, and silver was down $0.18 (-0.6%) to $29.10. Gold’s rise was attributed by Reuters to the Euro’s rise against the dollar, following the European Central Bank’s loans of €489 billion at 1% to banks. The euphoria engendered by this largesse was short-lived, but talk of the end of the bull run in gold has been quieted for now.

At the Globe and Mail, David Berman reports December 21, “Bespoke Investment Group pointed out on Tuesday that gold is also struggling with at least one technical issue. It is hovering around its 200-day moving average right now [$1,616] after Tuesday’s rebound, a key threshold that stocks and commodities have had a tough time breaking through.”

December 22, 2011

And yet, “Despite the technical worries and the recent correlation with the stock market, at least gold investors can look back on 2011 with some amount of satisfaction: Even though gold has retreated about $300 an ounce from its record high, it has risen 13.7% overall this year, far outperforming the 0.4% gain for the S&P 500, after factoring in dividends.”

On January 4, when gold traded at $1,379, Berman wrote, “The argument in favour of rising gold prices—the U.S. is printing money like you wouldn’t believe!—was heard throughout most of 2010, when gold reached its high of more than $1,400 an ounce. But the supply-and-demand picture continues to suggest that gold’s lustre is fading.”

Not yet! At Seeking Alpha, Jeff Clark explains why. “Have the reasons for gold’s bull market changed in any material way such that we should consider exiting? Instead of me providing an answer, ask yourself some basic questions: Is the current support for the US dollar an honest indication of its health? Are the sovereign debt problems in Europe solved? How will the US repay its $15 trillion debt load without some level of currency dilution? Is there likely to be more money printing in the future or less? Are real interest rates positive yet? Has gold really lost its safe haven status as a result of one bad week? And one more: What is the mainstream media’s record on forecasting precious metals prices?”

Can you field that one, Mr Berman? Of course, the bull market will end one day, and he will be proved right eventually. But being a gold bear means never having to say you’re sorry.

2011 was the Year of Gold, and not merely because it continues its reign as king of commodities. This was the year that gold became political. Governments can no longer pass off their massaged figures—GDP growth, unemployment, leading indicators, consumer confidence (whatever that means)—as the only indices of the health of the economy. And the bankers can no longer claim without rebuttal that the relative strengths of the Dow and the S&P 500 demonstrate that everything is going to be all right, real soon, we promise.

The Year of Gold’s Man of the Year is Republican Presidential Candidate Ron Paul, now the favourite to win the Iowa caucus January 3. This is entirely fitting, as Paul is treated by the mainstream media exactly as it treats the goldbugs: mocked when necessary but usually just ignored. (For evidence of the latter, watch this amusing Jon Stewart video.)

Paul is a goldbug, and he doesn’t care who knows it. That is to say, he is an advocate of the Austrian School of sound money and argues for a return to the gold standard. It was on “Black Sunday,” the day Nixon took America off the gold standard, that he decided to enter politics. He explained, “After that day, all money would be political money rather than money of real value. I was astounded.”

Paul is a 13-term congressman and a physician who has delivered over 4,000 children. He has had but one wife and belongs to a mainline religion. He served his country during Vietnam, unlike Newt Gingrich, and has suffered no sexual scandals, also unlike Newt Gingrich. He is undoubtedly intelligent and principled. He doesn’t believe in foreign aid or foreign wars, but these views hardly make him a crank. In any event, Republican primary voters will make the final judgment.

Back in August, in the Telegraph, Tim Stanley considered the question of “Why the American media hate and fear Ron Paul.” He concluded, “I suspect that they take a look at the people chanting his name in the bleachers, and they don’t like what they see. The Paulites are good folk worried about the direction of their country, but their exclusion from the mainstream makes them come off like the vanguard of a Hicksville revolution. Television is a cool medium. Ron Paul and his angry army are too hot for it.”

It is arguable that the Internet has supplanted TV as the main source of political news and comment, and as Marshall McLuhan would agree, the Internet is very much a hot medium. Certainly, the Paulites, like the goldbugs, do not get their information from TV. They are beyond the influence of the MSM—and thus beyond the control of the politicians and the bankers. And this, more than anything else, is why Paul is so detested by the elite.

As it happens, Paul not only talks the talk about gold, he walks the walk. The Wall Street Journal reports, “According to data available through his 2010 ‘Form A’ financial disclosure statement, filed last May, Rep Paul’s portfolio is valued between $2.44 million and $5.46 million. (Congressional disclosures are given in ranges, not precise amounts.)” In comparison, Newt Gingrich is worth $6.7 million, while Mitt Romney is worth up to $250 million.

The Journal is not put out by Rep Paul’s wealth, but when it comes to his investments, well, that’s another story. “Fully 64% of his assets—[are] entirely in gold and silver mining stocks. He owns no Apple, no ExxonMobil, no Procter & Gamble, no General Electric, no Johnson & Johnson, not even a diversified mutual fund that holds a broad basket of stocks. Rep Paul doesn’t own stock in any major companies at all except big precious-metals stocks like Barrick Gold, Goldcorp and Newmont Mining. Rep Paul also owns 23 other miners—many of them smaller, Canadian-based ‘juniors’ whose stocks are highly risky. Ten of these stocks have total market valuations of less than $500 million, a common definition of a ‘microcap’ stock. Mr Paul has between $100,010 and $326,000 (roughly 5% of his assets) invested in these tiny, extremely volatile stocks.”

“Juniors,” how déclassée! Somehow one imagines WSJ editorial writers speaking in the strangled tones of Thurston Howell III: “I’ve never cared for the cut of that man’s jib. Have you seen his portfolio? Shocking, simply shocking.”

And now to cases. The MSM doesn’t inform us which “highly risky” stocks Paul held in 2010, but Auguries goes the extra mile, willing to spend the 10 minutes or so it takes to find them on his “Form A”. Those listed on the TSX are presented below, along with the ranges of his investments in them. Caveat lector: this is not Paul’s current portfolio, which could be completely different.

Agnico Eagle TSX:AEM $100,001 to $250,000
Allied Nevada Gold TSX:ANV $1,001 to $15,000
Barrick Gold TSX:ABX $250,001 to $500,000
Brigus Gold TSX:BRD $1,001 to $15,000
Coeur D’Alene Mines TSX:CDM $1,001 to $15,000
Eldorado Gold TSX:ELD $50,001 to $100,000
Goldcorp TSX:G $500,001 to $1,000,000
Golden Star TSX:GSC $15,001 to $50,000
Great Basin Gold TSX:GBG $1,001 to $15,000
IAMGOLD TSX:IMG $100,001 to $250,000
Kinross TSX:K $15,001 to $50,000
Lexam
(now Lexam VG Gold)
TSX:LEX $1,001 to $15,000
MAG Silver TSX:MAG $50,001 to $100,000
Newmont TSX:NMC $250,001 to $500,000
Pan American Silver TSX:PAA $50,001 to $100,000
Silver Wheaton TSX:SLW $50,001 to $100,000
Virginia Mines TSX:VGQ $15,001 to $50,000
Vista Gold TSX:VGZ $1 to $1,000
Wesdome Gold TSX:WDO $1,001 to $15,000

Finally, Ron Paul is again bedeviled by a 15-year-old controversy regarding allegedly “racist” materials published in newsletters under his name. One can never be too attentive in these matters, but how can we be sure the other candidates are racism-free? Some sort of test is needed. How about this: candidates are shown a Chris Rock video, say, this onewarning: contains many, many swears—and those that laugh too heartily are disqualified. That oughta do the trick.

A Happy Christmas to all Auguries readers!

Private Placements

June 16th, 2011
  1. $8M Panoro Minerals Ltd
    TSXV: PML
  2. $5M Cangold Ltd
    TSXV:CLD
  3. $4M Skyline Gold Corp
    TSXV:SK
  4. $3M Virginia Mines Inc
    TSX:VGQ
  5. $3M Auriga Gold Corp
    TSXV:AIA