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10/12/13

Happy October 12th, Americas

Whatever you prefer to call the day today:

10/11/13

The importance of football to South America, part 739

Your humble scribe has tried his very hardest to convey this message in a whole variety of ways over the years, but the sense of the message falling on deaf ears has never diminished. So perhaps this report might help you Northern hemisphere people get it. From Colombia Reports today:


Click the link for more

The Friday OT2: RATM; Bulls on parade

Double dose of OT today, and why the devil not? This one nails the day.



The final track recorded by RATM that's worth listening to, it all went money afterwards. Once again, the attentive listener is best served by this interesting musical interlude with one's gramophone system set to eleven. 

The Friday OT: Faith No More; Ricochet

I don't care that it's been the Friday OT before, it's getting played today:



It's always funny until someone gets hurt, and then it's just hilarious

Dedicated to all longs of Gold Resource Corp (GORO). To be played at eleven, with bass set to "crack ceiling"

Gold wheee splat

This week I've closed one of the three short positions carried on The IKN Weekly's 'Stocks to Follow' list (I'm also looking to cover another one of them at the right price) and added to another long position because as of last Sunday, in IKN231, your humble scribe's call has been for a bullish outlook on gold in the near-term, defined as October/November with a target price of U$1,400/oz in the period.

So, how's that working so far?

Oh. Hmmm....errrr...early days?

Junior mining news-speak, American Bonanza (BZA.to) edition

American Bonanza (BZA.to) today announced it was suspending operations at its Copperstone mine, which wasn't that postworthy until your humble scribe saw how paragraph two of the NR started:
"While the suspension of operations may be considered a setback in the Company's goal of achieving commercial production at Copperstone, the Company believes it is necessary in order to achieve that goal."
Isn't that just magical? Kind and estimable reader, do yourself a service and read it over again, let the world of stupid in which these fuckwits live enliven your day a little, then expand your thoughts and take time to meditate and appreciate the wanton dumbassery of so many public quoted Canadian junior mining companies out there. 

And then, considering the BZA.to share price action over the last 12 months...


... it's fairly safe to say this news isn't going to come as a massive shock.

Chart of the day is...

... the US Dollar index (USD) in October:


The source of all things at the the moment. The movements in the dollar are always important, at the moment that's triple true. We saw 80 just about hold earlier, we saw that 'Yellen Bounce' on the 9th, we see possible fading today. Faites vos jeux and keep it front and centre on your radar screen, today and next week.

10/10/13

Things currently making me laugh in my pathetic little life woefully dominated by half-assed junior mining companies


Word reaches these shores that IKN need not worry about any stuffy legal letter from Stikeman Elliot regarding that Prophecy Coal (PCY.to) whistleblower post the other day. That's because Stikeman Elliot has resigned as lawyer to PCY.to. As your humble scribe's contact pointed out, normally legal firms adore this kind of junior because they're a never-ending source of fees, so to have the lawyers walk away from the junior rather than vice versa is...well let's just call it "a tell" and be done.

Gold Resource Corp (GORO) has lost its CFO. For personal reasons, begad. Yup, I'm still short.

VancVenture on Lowell Copper (JDL.v) and the way it's been trading recently. It's either been a long time since that boot-licking sector schmoozer Humphreys pumped this to a naive world (by getting a interview with the man who'd rather not be interviewed but as he heads up a new junior he had to bite the bullet just once so made it the dude who only throws sycophantic puffball Qs rather than anyone real) or it just feels like a long time.

Iwnattos also does Dominic Frisby's gold charts. This is pretty good, and Iwnattos doesn't even swear once, either. SFW!

Defining the dead cat bounce

In fact it's not as easy as it may seem at first light because there are several different ways in which the famous Abby Cohen coined dead cat bounce can materialize, with percentage fluctuations, timescales etc all subject to personal interpretation. But one that captures just about every aspect could join together the following criteria

1) A popular, well-followed stock that..
2)...hits a serious roadbump, for example...
3) ...a piece of news that disappoints an unsuspecting market and...
4) ...sells off sharply on big volume but then...
5) ...rebounds the next day, particularly if...
6)...the badly hit company releases news that tries to counter the bad stuff of the previous day, and then...
7) ...opens really well, but later that same day the fade sets in.

Now that's what I'd call a classic, dyed-in-the-wool, hey-look-at-that Dead Cat Bounce.

Oh, talking of which:


What Casey Research and its top level premium Investment Alert service can do for you

This was sent to your humble scribe yesterday by someone who read yesterday's post on Carpathian (CPN.to) and wanted to comment on Casey's extended pumping of that stock. Whereas me, I love the whole thing so much (not just the CPN.to call) I'm just going to show you the entire letter, keep comments to a minimum and leave it to you to work out the rest. It's dated March 1st 2013, just before PDAC.

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CIA #505: The 10-Bagger List

Dear Speculators,
We've written a lot lately about what to do if the correction in our market continues or deepens. This was necessary, given market sentiment, but we run the risk of seeming more negative than we are. Therefore, I thought I would offer you a heads-up regarding the companies on my radar that have the greatest potential for extraordinary gains.
I'm on my way to Toronto this weekend, for the PDAC convention, where I will meet with many of these and other companies, so I'll have more to say soon. The list below is simply the subset of companies among those we follow that are selling cheap enough relative to the assets they are advancing to offer 10-bagger potential or better.
They won't all make it, of course, but they all have the potential, and the odds are good that several will deliver – one or two will hit it right out of the ballpark. It's impossible to say which; the best-run companies with the best projects can run into unexpected roadblocks, and neglected underdogs can make spectacular discoveries while no one is paying attention.
This is why a basket approach is essential. As we have long said, you have to cast a wide net and be willing to take losses along the way to the record-breaking wins, if you're serious about nailing 10-baggers.
I know that many investors feel paralyzed by a falling market, but I also know that there are disciplined speculators out there, wanting to know where to focus their buying when others are selling. If we see the kind of market capitulation we've been writing about recently, which bargains could become the biggest winners? The 10-bagger list below is my current answer to that question.
I am not suggesting that anyone go out and buy the whole list – nor any of them today, necessarily, especially if long already. Rather, consider building or adding to positions in these companies if we get a real market meltdown in the weeks and months ahead.
Without further ado, then, here's the list:
  • ATAC Resources (V.ATC, C$1.71, 103.6M SO, 113.7M FD, C$177.2M MCap,www.atacresources.com) — ATAC has already been at nearly 10 times current levels, simply based on a different level of risk appetite in the market. The company's discoveries in the Yukon are significant and have serious size potential. In a more bullish market environment, this company could be a 10-bagger without changing. However, we expect more excellent results this year.
  • Banks Island Gold (V.BOZ, C$0.64, 34.4M SO, 42.4M FD, C$22M MCap,http://www.banksislandgold.com) — BOZ has the assets and the game plan for developing them that could easily deliver a 10-bagger. There's technical risk in doing what must be done, and the company only has half the money it needs to build its first mine at Yellow Giant, but it has options for the latter, and we believe it has the right people to address the former. This is not a penny stock, but its market cap is like that of a penny stock and has similarly explosive potential.
  • Brixton Metals (V.BBB, C$0.175, 52.5M SO, 81.1M FD, C$9.2M MCap, www.brixtonmetals.com) — Brixton does not yet have a 43-101-compliant resource in hand, and is quite a ways from delivering one. That makes this a higher-risk spec. But it is cheap, and it has delivered spectacular drill results, more of which could easily make this a 10-bagger.
  • Carpathian Gold (T.CPN, C$0.29, 555M SO, 590.5M FD, C$161M MCap, www.carpathiangold.com)— We've written quite a bit about this company. The bottom line is simple: the company is trading at a discount to the value of the gold mine, is on track to deliver on time and on budget in Brazil, and on top of this, it has a huge gold-copper resource in Romania for which the market is giving it no value. The stock will almost certainly rise based on the former and could eventually become a 10-bagger based on that alone, given the low starting point. It's hard to put odds on the Romanian blue sky, but whatever they are, free is a great price, and the consequences of success with that project would be huge.
  • Global Minerals (V.CTG, C$0.175, 110.8M SO, 144.9M FD, C$19.4M MCap,www.globalminerals.com) — Global's decision to focus on advancing their known deposit this year, rather than on making new discoveries, would normally make for less explosive upside in the play. However, the stock has gotten a lot cheaper recently without any bad news from the company (due in part to a newsletter publishing a sell recommendation on the stock). It's not hard to see the stock rising to 10 times its current share price if the company delivers a profitable new silver mine to the market.
  • Gold Port Resources (V.GPO, C$0.07, 110.6M SO, 177.5M FD, C$7.7M MCap,www.goldportresources.com) — Gold Port recently delivered a substantial new gold resource to the market that is being subjected to an inappropriate level of country discount, on top of general market sector weakness. There is technical risk in this play, but the stock is so cheap, a 10-bagger or better is easily doable if the company delivers on its objectives.
  • GoldQuest Mining (V.GQC, C$0.425, 144M SO, 155.8M FD, C$61.2M MCap,www.goldquestcorp.com) — GoldQuest has become a value play with enormous upside. It's a spec, but if the company starts delivering more Romero-style drill results, these shares should soar. But even if that doesn't happen, it appears likely that the company will be able to deliver a significant gold discovery with robust economics to the market. So, while the explosive upside is highly speculative, the base of value looks solid. The company is cashed up and hard at work; stay tuned.
  • Matamec Explorations (V.MAT, C$0.185, 120.3M SO, 138.7M FD, C$22.3M MCap,www.matamec.com) — Matamec is another company we've written about recently. Again, if the market were giving the company a normal discount for a pre-feasibility project, there might not be quite as explosive potential in the play, but since the market does not yet seem to believe in the Kipawa project, despite Toyota putting millions into it, a shift in perception is all it would take to make a big winner out of this pick. And that's not even counting the company's non-Kipawa assets and blue sky.
  • Renaissance Gold (T.REN, C$0.455, 30.7M SO, 32.4M FD, C$14M MCap, www.rengold.com) — This is a pure people play. The company does not yet have a flagship project upon which we can project any value added. It does, however, have one of the most successful mineral exploration teams in the world, bar none. And it's cheap. It's hard to say where, when, and how the stars will align for this one, but when they do, the results should be extremely gratifying.
As a bonus, here's a list of companies that have similar excellent potential but are not quite as cheap. These companies seem likely to deliver, but maybe not as much as ten times current share prices. Call it the potential 5-Bagger list:
  • Adventure Gold (V.AGE, C$0.255, 65.5M SO, 70.8M FD, C$16.7M MCap, www.adventure-gold.com)— Adventure has a relatively high-grade, open-pit gold resource in mine-friendly Québec. The deposit is not huge, but it's big enough to matter, and if the company is successful in making it bigger, it could yield very robust economics. The company also has Other People's Money going into the ground on other projects. There are certainly risks in this play, but if the company delivers on its plans, that success could easily justify five times the current market cap, or more, in a bull market environment.
  • Almaden Minerals (AAU, $2.22, T.AMM, C$2.18, 60M SO, 65M FD, C$130.8M MCap,www.almadenminerals.com) — Almaden has delivered a world-class gold resource in mine-friendly Mexico, with several characteristics that are very bullish for project economics. We should see preliminary numbers on that by the end of the year. We will also see drilling all year long, which has the potential to greatly expand the deposit. The company has plenty of cash and best-in-the-business management. If they deliver on their intentions, it would be easy to see a 5-bagger in the stock.
  • Exeter Resources (XRA, $1.17, T.XRC, C$1.21, 88.4M SO, 98.9M FD, C$107M MCap,www.exeterresource.com) — Exeter's monster-sized Caspiche gold deposit in Chile is getting almost no valuation in the market. There certainly are technical challenges, but the size of the prize is certainly commensurate with the risk. Big bulk mining projects are currently out of favor, but Caspiche has a smaller, but still large, higher-grade core that we hope to see the company put some economic numbers on. The committee also has lots of cash and is looking for value unlocking ways to deploy it. That aside, simply as a gold bank with ounces in the ground, this stock is highly leveraged to rising gold prices.
  • International Tower Hill (THM, US$1.62, T.ITH, C$1.71, 98.1M SO, 106.2M FD, US$158.9M MCap,www.ithmines.com) — ITH is almost the same story as Exeter, but it has less cash. On the other hand, it also faces far fewer technical challenges and offers excellent leverage to rising gold prices.
  • Rye Patch Gold (V.RPM, C$0.355, 146.1M SO, 155.6M FD, C$51.9M MCap, www.ryepatchgold.com)— Rye Patch will probably not quintuple if successful in its legal battle with Coeur d'Alene Mines over the Rochester silver mine in Nevada. However, it could easily double or more on that basis, and that could prompt the market to revalue the company's substantial portfolio of other assets in the area. Add to this any success in the company's ongoing drill campaign, and we could see the shares trading much higher when the gold market turns bullish again.
  • Sandspring Resources (V.SSP, C$0.37, 132.4M SO, 142.3M FD, C$49M MCap,www.sandspringresources.com) — Sandspring's Toroparu gold project in Guyana should soon deliver to the market updated economic numbers that we think will be more robust than most investors are expecting. If the company's neighbors, Guyana Goldfields, are able to raise the rest of the money they need to build their mine, that should greatly reduce the country discount being applied to all Guyana plays. There's exploration upside as well. Taken altogether, it's easier to see much higher share prices, even without a major new discovery, in a more bullish gold environment.
Others I see excellent potential in, but maybe not quite at the 5- or 10-bagger level, include Strategic Metals,Sunward Resources, NioGold, and Columbus Gold. I do see potential for a double or better in the rest of the companies in our portfolio, or they wouldn't be there. However, the purpose of this alert is not to reassure you how good all of our picks are; the idea is to help those of you who have the guts to hunt for big game when we have the field almost to ourselves to focus on the picks that offer maximum potential yield. If the market falls apart for a time, these are the picks that are likely to offer the maximum bang for the buck. Just remember the higher yield entail higher risk.
I know it takes courage to be a contrarian, but I have confidence in the wisdom and discipline of the speculators receiving this alert. Fortune favors the bold, and I believe it will favor us all greatly in the months and years ahead.
Sincerely,
http://www.caseyresearch.com/images/LouisJamesLR.jpg
Louis James
Chief Metals & Mining Investment Strategist
Casey Research


Atna Resources (ATN.to): It's not just the big things that shout BULLSHIT at me

It's the details too. The basic problem with junior mining companies is that they tend to be run by compulsive bullshitters. I don't think they do it out of deliberate spite or malice either, it's more a case of not being able to help themselves or of being incapabale of breaking a lifetime habit. Take for example today's production report from Atna Resources (ATN.to) and its Briggs Mine. In it we read that production for the quarter was a tad under 10k oz Au and then we get the CEO comment:
"These results put Briggs on track to achieve its stated target of 35,000 to 40,000 ounces of production for 2013. Our team at Briggs is demonstrating their ability to reduce costs and improve production to meet the challenges of a volatile gold market environment", states James Hesketh, President & CEO.

What say you, Owly?


That's because in its 2013 guidance NR dated January 16th  2013 we were told this about Briggs:


So how does 37k-45k for 2013 become an on-target-for-year 35k to 40k? Easy, you just shift the goalposts half way through the year, dontcha mister Hesketh? And let's not even start about your rosy predictions for Pinson in 2013 because that one is a little bit more than a slight miss, innit guv?





Trying to piece together the Pretium (PVG) (PVG.to) Strathcona situation

As subscribers know, back in June I went long Pretium (PVG) (PVG.to) and then in August I sold the position, earlier than originally expected and accompanied by a slice of humble pie, for a modest profit thanks largely to luck by getting out when gold had run up to over $1.4k. The reason for the sale was a case of cold feet about the VOK deposit, which was explained in four points in IKN224, dated August 18th. Then one week later I dumped the position.

Below is a mail just sent to A.N Other which includes my reply to the person (one of several with whom I've been exchanging re PVG these last 24 hours) and the four points of IKN224. It's slightly redacted and presented not as a fait accompli, but as a best guess as to WTF has been going on between PVG and Strathcona. 

The bottom line is that Strathcona resigning is very bad for PVG and yesterday's share price drop was fully deserved. Period. No mess, no fuss, no argument.

Also, it's worth noting that PVG has put out a new NR this morning full of more high grading drill results. I'd also suggest at this point that we're going to have to see a whole lot more drill numbers in the YEARS (not weeks or months) to come, because the signal from the last 24 hours is that VOK won't work as a bulk mine operation and those superduper veins will have to be mined out selectively for this to be an economic mining operation. If so, there's mucho mucho work and more exploration that will need to be done on VOK before this thing stands a chance. Throw that feas study out, and now.

Anyway, here's the mail sent to my mailpal and the points made in IKN224 dated August at the end of it

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Consider this scenario. These are three things that we know:

a) Snowden wants to process all the 10,000 tonnes of bulk sample, Strathcona wants to select ten "towers" which is roughly 10% of the total as its representative sample.

b) the 10,000 tonnes are being processed.

c) Strathcona has resigned.

From these, we can logically deduce that the problem is indeed the Cleopatra vein. PVG took a lot of its bulk sample from Cleo and Strathcona then may have said, "Well fine, you can do that, but it skews out the entirety of the 10k of rock and makes the whole unrepresentative. What we need to do is select representative rock from the 10k bulk and process that to get a true idea of VOK."

PVG refuses to do that and for obvious reasons. Strathcona resigns, because it has a high reputation and integrity. What we then see is Robert Quartermain suggesting to the market "Yeah well, Strathcona only wanted to use 10%, Snowden and we want to use all of it and SURELY 100% is better than 10%???!?!!?"

There's the rub, i think. Yes, it's about Cleo and yes Strathcona has walked because PVG is doing something akin to salting.

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From IKN224 dated August 18th
Point one: If we go back to previous announcements from PVG, e.g. this one (15) dated June 19th, we read amongst other lines that, “The Bulk Sample Program excavation and sampling is expected to be completed in late July or early August.” And also, “The drill program is expected to be completed by mid-August.” Cut to last week’s NR, very much mid-August, and we read (again amongst other words) that "four fans remain to be drilled”, also that drilling “....is expected to conclude in early September” and later that the 10,000 tonnes bulk sample has to date got to 8,600 tonnes. First conclusion drawn, the program is late and I’d now expect it to run over the “by end 3q13” timeline we were originally offered by the company. Maybe not a red flag in itself, but a pinkish tinged one.

Point Two: The second thing to come from last week’s info is to look at the maps PVG kindly offered and note exactly where they’re taking the 10,000 tonne bulk sample from inside the VOK deposit. The idea was to offer up a representative sample of the whole of the deposit, which sounded like smart idea to me, but we now have to factor in a new discovery from PVG, the recently announced Cleopatra Vein and its location. If you consider this map (16) that shows the area from which PVG is taking its sample, it seems pretty clear that a decent proportion of this bulk sample is coming from an area right at and running parallel to the Cleopatra vein system. Now I don’t know about you, but when you consider that Cleopatra has 21 returned samples of up to 27,000 g/t Au over 0.5m widths (17) and the whole idea of the bulk sample was to be representative of the whole of the rock in order to determine whether VOK stands up as an underground bulk mining plan, a big fat question mark appears above my head to wonder just how “representative” the material being extracted for this 10,000mt program really is. Second conclusion drawn: The bulk sample may well pass muster on first look when it’s eventually published, but I wonder whether the big mining companies, that’s to say the potential purchasers of PVG and/or VOK, will be as impressed when they start getting granular and picky on the data provided.

Point Three: There’s also the potential for points one and two to be related. After all, PVG has a big team at VOK, it’s clement summer weather time and the original bulk sample program was only going to be 10 weeks long. What’s the sudden logistical problem that’s spun out a relatively short program covered by near optimal work conditions by 20%? Is it because, perchance, PVG has decided to change the places from which it wants to take its ‘representative’ bulk sample?

Point Four: The final doubt that’s been floating round my brain regarding PVG this week is a more general one, that I’m starting to feel a little uncomfortable about this long position because I’m outside of my speciality field a little too much. It’s becoming clear that the potential viability of VOK depends a lot of real hard data geology and the conclusions it spits out, which will then have to pass peer review before it gets some sort of industry thumbs-up. I’m not a geologist, never have been, never will be and never pretend to be and I even though I can hold down my end of a conversation with the rockbangers (as long as they don’t start all that pretty jargon talk on me) and get the idea on the wide-sweeping geological themes and concepts these days, I know when I’m out of my depth and on this subject, it’s exactly that feeling. Plus I’m dealing with a region of the world that’s not Latin America and I don’t have any edge to offer to myself or to readers who’d be better off reading other experts who know the North backwards.

Chart of the day is...

...the gold/platinum ratio for the last 12 months...


...because there are a whole bunch of stupid people talking Pt these days and hopefully this second chart will put them straight.



Find Work

'Poem of the Day' from Poetry Foundation is still one of the favourite RSS feeds I have. This is today's, it comes from Rhina P. Espaillat, it was published in 1999, a beautifully constructed sonnet called 'Find Work'

My mother's mother, widowed very young
of her first love, and of that love's first fruit,
moved through her father's farm, her country tongue
and country heart anaesthetized and mute
with labor. So her kind was taught to do—
"Find work," she would reply to every grief—
and her one dictum, whether false or true,
tolled heavy with her passionate belief.
Widowed again, with children, in her prime,
she spoke so little it was hard to bear
so much composure, such a truce with time
spent in the lifelong practice of despair.
But I recall her floors, scrubbed white as bone,
her dishes, and how painfully they shone.


10/9/13

Minera IRL and LionGold Cease Talks Regarding Potential Takeover Offer

Surprised...not.

Read the NR here

Miners reap what they sow with writedowns

What the world needs is less snarky BS from blogs like IKN and more serious insight and smarts from people who really know what they're tlaking about. For example this post written by Phillip Crowson (of Rio Tinto fame) entitled "Miners reap what they sow with writedowns". Read it and you'll read commonsense, easy to understand insight of the mining industry's self-inflicted wounds and learn more from reading the few hundred words in this single article than you will from the plethora of BS merchants who write mining newsletters and try to pass themselves off as experts (yup, your humble scribe included).

Sad news from Australia: Chopper is dead

News story here of an IKN hero who is no more.

Mark 'Chopper' Read dead
Notorious criminal Mark 'Chopper' Read has died after a long battle with liver cancer.
The former standover man spent more than 23 years in jail up until 1993 for crimes including armed robbery, arson, impersonating a police officer and attempted murder.
Despite never being charged, Read claimed to have killed 19 people during his time as a career criminal.
In 2000, Read was immortalised in the film 'Chopper', starring Eric Bana.
In April last year, Read revealed he was suffering from cancer and that doctors had given him "weeks or up to six years to live".
At the time, the Read tweeted: "Looks like the big C has finally bitten".
continues here

To salute Chopper's exit, our fave Ronnie Johns video:



RIP

Carpathian (CPN.to)

Do yourself a great favour: Check just how many newsletter writers and brokerage anal ysts have pumped this one to you over the years. Carpathian Gold Inc (CPN.to) explains that it is sexually intercoursed in this NR, just out.

Candente Copper (DNT.to) at Cañariaco

Here's a report that caught the eye of your humble scribe yesterday evening and here's how it starts:
Peru's government said it has made "notable progress" in a development roundtable with communities around Candente Copper's (TSX-V: DNT) US$1.47bn Cañariaco Norte copper-gold project in the north of the country, where environmental protests broke out in May. 
The government will invest 6mn soles (US$2.2mn) in electrification projects in the communities of Cañaris, Salas and Incahuasi, "considered amongst the poorest in the country," in addition to school repairs and 68km of rural roads in the area, the energy and mines ministry (MEM) said in an e-mailed statement. Other social programs will include irrigation projects, old age pensions and nutrition for schoolchildren, it said.

And now, here's an IKN sketch of how things are going in the town of Cañaris, the one that would have to be moved if the project goes ahead:

Gov't and DNT: "Hi there!"
Locals: "Hello"
Gov't and DNT: "Can we build a copper mine here?"
Locals: "No"
Gov't and DNT: "Awww, go on!"
Locals: "No."
Gov't and DNT: "OK then, can we connect your town to the electricity grid for the first time ever?"
Locals: "Yeah sure, it's about time too."
Gov't and DNT: "And how about a gas stove for each house?"
Locals: "OK, thanks!"
Gov't and DNT: "Right, now that's done, can we build that big copper mine here now?"
Locals: "No"
Gov't and DNT: "B-b-b-but that's not fair! After all we've done for you!"
Locals: "Fuck off"
Gov't and DNT: "We'll call in the troops if you don't start behaving"

Mining PRs and the Ottotrans™, part 76



Pretium Resources (PVG) (PVG.to) grabs us by the throat and demands our immediate attention with this NR. Please pay special attention to the bold type used by your humble scribe, in fact you can ignore the rest come to think of it:

This is what they wrote
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 9, 2013) - Pretium Resources Inc. (PVG.TO)(PVG) ("Pretivm") reports the following update for the Valley of the Kings Bulk Sample Program (the "Program") at its Brucejack Project, for which processing is now underway.

Strathcona Mineral Services Ltd. ("Strathcona"), which had been engaged as the independent Qualified Person to oversee and report on the 10,000-tonne bulk sample for the Program, has resigned from the Project.

The processing of the excavated 10,000 tonnes is proceeding as planned at a rate of approximately 1,000 tonnes per week to produce gold/silver gravity and flotation concentrates. It is expected that approximately 4,000 ounces of gold will be produced in total from the material excavated for the Program, as defined by the Valley of the Kings November 2012 Mineral Resource estimate prepared by Snowden Mining Industry Consultants ("Snowden") for that area of the Valley of the Kings.
Independent Qualified Persons from Snowden are responsible for the review and sign-off of the milling and processing component of the Program, and will issue a final report on its completion.
The processing results from the Program's four cross-cuts and the 615L drift (the lateral drift excavated between cross-cuts 426615E and 426645E) will be reported as they are received, with the results from cross-cut 426585E anticipated within the next two weeks. The total amount of gold and silver produced by the mill will be reported on the completion of processing.
An updated Mineral Resource estimate for the Valley of the Kings incorporating all 2013 underground and surface drilling and milling results will be prepared following the receipt of all assay data.
Ian I Chang, M.A.Sc., P.Eng., Vice President, Project Development, Pretium Resources Inc. is the Qualified Person (QP) responsible for the Bulk Sample Program processing. Kenneth C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium Resources Inc. is the Qualified Person (QP) responsible for the Brucejack Project exploration program.
About Pretivm

And this is what it means:

We're fucked


LionGold latest

My bedtime, but here's the overnight (Americas time) trading in LionGold Corp (A78:sg) to just after half-way thru the Wednesday SGX session:


That's SG$0.155 and down another 18.4%, which makes its market cap U$114m approx. Go watch the last couple of hours trading yourself, if you want. Hasta mañana.

10/8/13

The road to Santa Fe (SFM.v) is paved with good intent

Wait up, am I mexing my mitaphors? Anyway, I was wondering about this insider buying action a few days ago...



...with the size of the share chunks (rather than the absolute $$ laid down) and the names involved, too. Now things begin:
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 8, 2013) - Santa Fe Metals Corp. (the "Company") (TSX VENTURE:SFM) announces that drilling operations at the Sully group of claims (the "Sully Property") located near Fort Steele in southeastern British Columbia are well underway and progressing with excellent drilling rates and hole trajectory. Enhanced drill stabilization techniques are being employed to minimize drillhole deviation and surveys show that the hole is on course to the target at a modeled depth estimated to be approximately 1,000m.
About the Sully Property
The Sully Property comprises 1,375 hectares located 27 kilometres east of 
continues here

Disclosure: no position


And speaking of Sulliden (SUE.to)

Funny how these things happen all at once, is it not? It's as if your humble scribe had heard something kept away from the ears of the Canadian investment public and....nah, surely not! Anyway, here's Peru's major national newspaper La Republica with today's story (translated):
Various social organizations of the Condebamba Valley in Cajamarca today presented to the Ministry of Energy and Mines a demand to totally nullify the Environmental Impact Study (EIA) of the Shahuindo mining project that Sulliden Gold wants to develop in that location. According to the demand, the current Shahuindo EIA does not conform with the referential rules of the right of citizen participation and in its environmental impact. The demand was made via the Cajamarca regional government.

Worth noting that even if the claims against the EIA aren't entertained by the Mining Ministry, this is exactly the same process that led to where we are at Conga today. National gov't approved an EIA permit, local/region government reject it, hilarity ensues. I really wonder about Angico Eagle...who made this SUE.to call anyway?


The Singapore mining stocks collapse: Kip Keen on the case

Mineweb's Kip Keen files this report on the collapsing share prices of mining companies on the Singapore stock market and does a very nice job of overview in the concise report. Here's a snippet:
To fund acquisitions, LionGold planned back in mid August to raise S$202 million at S$1.11 a share with three firms, Platinum Partner, Carnegie Hall Group and Spring Road Adivsors. 
Of course, now trading for less than a quarter that price, it becomes improbable firms would take up LionGold shares at S$1.11 – if they already haven't – which in turn would limit LionGold's access to fresh cash to spend on new and ongoing acquisitions.
While a LionGold spokesperson could not be reached at presstime to comment on the financing, it does not appear to have been completed. LionGold lists the financing as pending in a corporate presentation dated September and has also said it expected to raise the S$202 million in October or November. 
Platinum Partner President Uri Landesman, reached by email Monday, declined comment on the status of the financing. Continues here
Recommended reading for all longs of Minera IRL (IRL.to) (MIRL.L) amongst others.

UPDATE: Also, check out this and especially this on the very interesting move by the fashion challenged but mine-experienced Alexander Molyneux to take over another big Singapore mining loser of recent days, Blumont. My thanks again go to Kip Keen for the headsup on these reports, via his very useful Twitter account that you can (and should) follow right here.

Sulliden Gold (SUE.to)

Here's a chart of the last two months of Sulliden Gold (SUE.to) compared to the gold bullion ETF (GLD):


There must be a reason why SUE.to hasn't zoomed and flown on the news of its environmental permit (EIA) approval from the government of Peru, because when it was granted the Canadian anal yst community lined up to tell us how important a step it was and how SUE.to had made a key advance to the project and how the de-risking would now shoot the stock price higher and how we were mere days away from Agnico Eagle (AEM) making its buyout move.

Could it be possible that the Canadian anal yst community is full of shit? Is it perchance that they don't have a bleedin' clue about the subject? Could their opinion be influenced by Stan Bharti's...errrrr..."lobbying techniques"? Is the real story the one explained by IKN all this time, that the national government permit means diddly squat when you have the type of community opposition to a project as you have around Shahuindo and that the true chances of this one going ahead are between slim and none?

I think we should be told.

Chart of the day is...

...the very latest from LionGold (A78:sg) who are my idea of perfect company for a pleasant evening of high-stakes Texas Hold 'Em and as you see, we're now down to SG$0.19:


That makes the market cap now at around U$140m. Here's a close-up of the last two days and...


...we see that LionGold had a good stab at a rally early session in Singapore, but that reversed and it was not to be. Bad luck guys, better fortune at your casino wheel tomorrow, yeah?

10/7/13

Petaquilla Minerals (PTQ.to) files its annuals

And you expected good numbers from a gold mining company in Panama run by a convicted drugs felon? Oh dear, sorry to disappoint you, the negative $85m in working capital as at June 30th kind of points to a different outcome.

The sorry state of the Toronto Stock Exchange (TSX) and the Venture Exchange (TSXV) in four simple charts

Traded volume on the TSX:


Dollar value of trades on the TSX:

Traded volume on the TSXV:

Dollar value of trades on the TSXV:

No further comment necessary. Data from here

Question: Who is going to dump 400,000 shares of Gold Resource Corp (GORO) onto the market (on) by October 10th, 2013?

Answer: William W. Reid.

And here's the filing to prove it. 400k options granted to the departing bossman Bill, presumably by way of thanks for all that running the stock price into the ground that he's done. The options are priced at 25 cents (seriously), they're exercisable on October 10th 2003 and they also expire on October 10th 2013 and by my reckoning, that makes October 10th an interesting day for GORO share price action. All just days before HOC gets to play dumpy dumpy, too. That's lucky, innit, Bill?

You have been duly warned.

Lawrence Page QC is having a bad 2013, especially compared to 2012

My thanks to DF for the headsup on this.

Here's a paste out of a mail that's going around. You can find out more by clicking this link and reading about the meeting Lawrence Page QC is organizing for October 17th


It just so happens that Lawrence Page QC is a director of six public companies quoted in Canada. According to the regulatory filings of four of those:
  • Southern Silver (SSV.v) paid Lawrence Page QC $359,151 in 2012. SSV.v is now a 2c stock
  • Bravada Gold Corp (BVA.v) paid Lawrence Page QC $128,583 in 2012. BVA.v is now a 2c stock
  • Quaterra Resources Inc (QTA.v) paid Lawrence Page QC $72,400 in 2012. QTA.v is now a 15c stock
  • Homestake Resources Corp (HSR.v) paid Lawrence Page QC $160,596 in 2012. HSR.v is now a 5c stock.

In total, that's $720,730 paid to Lawrence Page QC by the companies in his "Manex Group" in 2012 alone, and we haven't even included the fees he gets from the companies for his legal practice. Damn, I wonder why people aren't so willing to fund explorecos any longer? Must be those tricky rules, eh Larry...

UPDATE: Iwnattos adds his dos centavitos



LionGold had a bad day

Maybe what comes of sticking your head above the parapet once too often...


...and attracting the attention of people who know how to value mining companies instead of people who like to play baccarat. Still, LionGold (A78.sg) did have a working cap of ~$67.4m as at June 30th, so it's not a totally empty vehicle. However, Minera IRL (MIRL.L) (IRL.to) will probably be keen on that deal being a cash offer, new low share price or not.

Canned guinea pig

Gourmet alert issued:



The latest culinary innovation from the banks of Lake Titicaca is canned guinea pig (cuy), a new way of marketing the scrumptious little rodent presented at the Puno food fair last week, in Peru. As the State news agency Andina puts it, "After fattening the guinea pigs up (on alfalfa), the next step is to process them into conserved meat that has the health guarantees and is apt for human consumption". Then it's off to the supermarket shelves.

Coming to a Walmart near you.

Rodrigo Abd on coca

I've grown into a big fan of Rodrgio Abd, the photographer for AP in Peru, because his eye is uncommonly good and he picks his subject matters so well (e.g. his recent set of Lima in the rains was a thing of beauty). This weekend sees Abd's latest set published after a trip to the VRAEM region of central Peru that's ground zero for coca leaf production in the country.

I'm not stealing any of the photoset for display here, it's best that you see the whole gallery together therefore click right here and do so. Guaranteed visual enjoyment awaits you this fine Monday morning. 

10/6/13

Canada spied on Brazil's Ministry of Mines and Energy

Oh what fun. Globo has the Snowden story for you, right here

And we're already getting English language coverage of this one. Here's AP, here's NYT, I'm sure you'll be able to find lots more soon.

The IKN Weekly, out now



IKN231 has just been sent to subscribers. Poor and content is rich and rich enough, but riches fineless is as poor as winter to him that ever fears he shall be poor. Innit.