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Which will be worth more at end 2015?

3/5/11

A friend is at PDAC....

...and wrote me a mail. It was so good that I asked him if I could re-print it on the blog. He agreed as long as I used the slightly scrubbed version below (I won't go into why he wanted to scrub a little...suffice to say that he doesn't want to do jailtime in Canada). Here's the result, enjoy:

The investment fundies class today was fun... but my stomach, and 3 hours of sleep, were killing me so I skipped the lunch and the afternoon half. I missed "how to build a mine" with James Whyte of the OSC, formerly at Northern Miner (very good speaker in 2 morning lectures, and very boots-on-the-ground), which is okay as I've got the Hard Rock Miners' Handbook and the email of the guy who put it out. I also missed the 2 separate sections on Discounted Cash Flow, which is fine as it seems to be all voodoo and number-massaging, and all I seem to need to know is how to do forensics on an NPV to look for bullshit. I already massage NPV calcs for work, so I know what bullshit they are.

I might want to let Gary T. know that Clifton Star was one of the two examples used for calculating value of non-producers - though the class was mostly bankers, so I wouldn't expect them to run out and cause a price spike Monday AM with buys at market like we get with IKN recs. The guy running that part of the class was Brian Christie from Desjardins. That section of the class was more like a BNN pump than anything informative.

Tomorrow I'll be seeing Kaiser, Fulp, Cookie and Doody, and I'll be hitting the booths. Seems like there's a BNN ministage on 800 level, so maybe these guys will be giving short interviews as well? Might want to keep your eyes open so you can link to another Cook appearance.


In case you've never been there, btw, this takes place at the Metro Toronto Convention Centre South Wing. The South Wing is pretty much entirely underground. What a great place to talk about mining - three floors below sunlight. I imagine if I look around long enough I'll find a Balrog.


But this is even better:


http://www.pdac.ca/pdac/conv/2011/presentations-rooms.aspx#Casey_Research


They gave Casey a room. 
Resource investing master (ooh!) class: How to make money speculating in junior resources
Casey Research
Monday, March 7
2:00 pm – 5:00 pm
Room 717B

Regarding Richard Fifer of Petaquilla Minerals (PTQ.to), cocaine, marijuana and prison

Richard Fifer, cocaine dealer

IKN would like to make it clear that Richard Glenn Fifer Carles, erstwhile governor of the Coclé region of Panama, qualified geologist and Chairman and main force behind Panama gold company Petaquilla Minerals (PTQ.to), does not have a criminal record for marijuana dealing.

The truth is that he has a criminal record for cocaine and marijuana dealing and has done his time in prison for the crimes committed, too.


Yeah, really. This guy is a drug dealing scumbag and the truth is upon us. Watch this space next week for the dirty details that he's tried to keep covered up for years.

Macquarie's 2011 PM exploration junior picks

It's PDAC-eve and unsurprisingly we're already being bombarded with brokerage reports and umpteen semi-empty company NRs (and it's only going to get worse on Monday, folks). Here's an example and  so thanks to kind reader 'D', here's the link to the PDF published by Macquarie yesterday featuring the following names
  • Auryx Gold (AYX.to) 
  • Colossus Minerals (CSI.to) 
  • Eastmain Resources (ER.to) 
  • Extorre Gold Mines (XG.to) 
  • International Tower Hill (ITH.to) (THM)
  • Rainy River Resources (RR.v) 
  • Tahoe Resources (THO.to)
  • Virginia Mines (VGQ.to)
  • ATAC Resources (ATC.v)
But keep an eye on the recos, because Macquarie has called eight of those as long opportunties and one of them as a short opportunity. Go read the paper to find out which is which. For what it's worth*, I agree with Macquarie on four of the calls, I'm 'meh' on two of them and disagree with three....but WTFDIK anyway?

PS: By the way this is a 184 page report with plenty of pretty pictures too, so give it time on the download, yeah?

*not a lot

3/4/11

The Friday OT: Bill Withers; Ain't no sunshine

The Friday OT is back (yay!) and we kick off the post-beach season with a little pearly dazzling cracker of a video. It's hard to believe this was taped nearly 40 years ago, but quality will always outlast style I suppose. We doff our caps to Bill Withers, his voice is the essence of soul.


And by the way, check out the drummer cos he had to be totally baked when they were filming this.

Why Colombia's military has had limited success over the years

I wet myself laughing and hope you do too. Thirty-two magnificent Youtube seconds await you.


And yes, before the doubts come that's the Colombian army jungle fatigues uniform (rubber boots, short sleeves, etc).

Bolivia at PDAC, Sunday March 6th

PDAC kicks off in Toronto this weekend and on the first day there's an interesting looking conference scheduled that puts Bolivia in the spotlight. Here's the page, here's the overview presentation and here's the blurb below. If you're looking for an interesting sit-down on day one Sunday March 6th you could do much worse than this:

Mining in Bolivia
Bolivia, Ministry of Mining and the Embassy of the Plurinational State of
Sunday, March 6
2:00 pm – 5:00 pm
Room 714B

The Embassy of the Plurinational State of Bolivia in Canada, in coordination with the Ministry of Mines of Bolivia will participate in PDAC 2011 to demonstrate the mining potential offered by this historical mining country that boasts of mineral deposits in almost all its territory, most of which remains unexplored.

It should be emphasized that the Bolivian Political Constitution guarantees legal certainty and respect for private investment in this sector, which in turn has to conform to the current mining legislation in the context of having "Partners, not Bosses.”

At this juncture the government of Bolivia prioritizes the mining sector to establish itself as a pillar of the national economy, with diversified industrial development, from exploration to smelting or refining of minerals, complemented by processes of transformation, industrialization and commercialization, generating decent and stable employment, promoting sustainable development of communities in the mine areas that demonstrates that it is possible to have well functioning, technically advanced, environmentally sustainable and socially accepted mining.

The session will include:
2:55 - 3:00 Opening Remarks by the Ambassador of Bolivia to Canada, H.E Edgar Torrez M.
3:00 - 3:40 Presentation titled, Mining in Bolivia by the Deputy Minister of Mining Development and Metallurgical Production, H.E. Hector Cordoba E. For the Presentation Summary click here*
3:40- 4:00 Steve Busby,Chief Operating Officer of Pan American Silver Corp: A succesful experience of a mining company in Bolivia.
4:00 - 5:00 Questions & Answers

For the presentation summary click here

Contact Information: bolivianembassy@bellnet.ca
Tel (613) 236-5730 ext 223

All are welcome. Registration is not required.

Scam Busters! A new link category at IKN

Over there on the right of the blog your humble scribe has put together a new category of links for the dee lek tay shun of his esteemed readership. Called Scam Busters (not a great title, but it'll do) it's a collection of blogs and websites that are sometimes or alltimes dedicated to rooting out the scumbag scam runners and bad egg companies in the world of stock markets (with a lot of mining scams usually on the menus). Here's the list as seen:

Scam Busters


Of those, David Baines, ace reporter at The Vancouver Sun, deserves top billing for his tireless work against the scumballs of the Vancouver junior mining world. In the link list he has two spots, one for his regular Vancouver Sun column and one for his personal blog, a place where he often picks up on the reported story and adds more flavour. We very heart Baines.

Dances With Bears' John Helmer knows more about the shady Russian business scene than anyone else that writes in the English language. Watches the Russian billionaire community and their massive resource companies like a hawk.

Sam Antar is the felon who was CFO at Crazy Eddie's, the accounting fraud in the 1980s. He did time for his rip-offs and has recently turned over a leaf, running a website that exposes accounting fraud and general sleaze in the US markets. Also, make sure you read the disclosure he puts at the end of his posts as it's very entertaining.

Our pal Amberger over at Green Laser is also an ex-insider blowing the whistle, but not an ex-felon. He was an integral part of the newsletter promo industry for years and has recently taken it upon himself to expose the dirty doings, tricks and scams publishers use to part you from your hard-earned cash. Excellent website and fun to read, too.

Toby Shute is an IKN friend of old. A top brain when it comes to independent O&G analysis, he's not dedicated to exposing the iffy side of the industry but never holds back on a story if there's one to be told. Motley Fool's top echelon of writers includes Toby, not a doubt.
Stock Gumshoe is a community-based site that watches the newsletter world, working out the mystery tips and passing judgement on the worth of many letter services out there.

Street Sweeper covers mainly US markets and a lot of the OTC scams that are run there (and my stars, there are tons of those). Deep analsyis of each case and careful backgorund checks in the posts.

So there's a quick'n'dirty on each site, but I'd be VERY interested to hear from you guys about other sites not mentioned that do the same kind of thing. If you know of a scam busting website not featured, a mail with its URL to otto.rock1 (AT) gmail (DOT) com would be greatly appreciated.

Chart of the day is....

...uranium, 2 year price chart for spot and long-term prices, courtesy of industry standard U web page UXC


So spot has caught up with LT contract pricings and has levelled out. What happens next?

3/3/11

Argentina football news: 36 red cards in one match

The event was the Primera D game between Claypole and Victoriano Arenas in the 'burbs of Buenos Aires. With home team Claypole winning 2-0 and Victoriano Arenas down to just seven players having already had four players sent off, a fight broke out between all members of both teams and the ref had no doubt in showing the red card and sending off all players involved. In total, 36 red cards were shown, which must be some kind of record.


Watch the fun in this 3 minute video, with the main rumble starting just after the 2 minute mark.

Peru's monthly metals production numbers 2009 to date

Peru's MEM published the January 2011 production numbers today, so let's take a step back, start at 2009 and see how the big five metals (in order of dollar importance, copper, gold, zinc, silver, lead) shape up:

Here's copper:
 Anyone for laurel resting? Peru's export values go shooting up but the production tonnage remains stagnant

Here's gold:
Even worse for gold, and the slide is on. Remember that 16% of the gold in the table comes from the Madre De Dios shithole officialproduction (lawd knows about the black market stuff).

Here's zinc:
Again, no investment = no growth

Here's silver:
The inertia means  that in 2010 Peru lost its mantle of world's number one silver producing nation, a title which is now back in the hands of Mexico.

Here's lead:
Hey, here's a metal to invest in...looks like nobody wants to make it anymore.

Look up tin. moly, iron ore and tungsten yourself (though if you're long MLG.to you won't be impressed by January's 59t production number). DYODD.

Nervous about gold?

Oh noes!
Are you worried about the action today in gold, silver and the other metals? Concerned about the $25/oz drop in the yellow metal? Gnashing your fingernails at the incredible downwards spiral in trading? Are you thinking that maybe Dennis Gartman might be right on his call to sell gold today? Thinking rates will start ratcheting higher to put an end to the party? 

If so, IKN has a special message for you:


Gimme a break and look at a bit of reality, dudette. Check the chart, dude.
You actually think the gold prophets of doom who have been stone plain wrong for 10 years have got this one right all of a sudden? If so, stop reading this blog immediately and go play over at Seeking Alpha. Dumbass.

A new buy recommendation coming in the next edition of The IKN Weekly and another word on the price rise coming in April

This weekend we have a new buy recommendation coming in The IKN Weekly. and in true "give us a clue" teaser style here are two hints about the company: It's a junior miner and it's in the LatAm region. And by the way, worth mentioning that your author (and hopefully the Weekly clientele) have funds to purchase new positions because one thing we do round here is tell you when we're selling too. We also keep the recommended list to a maximum of 15 positions at all times, as in that way you don't end up with a portfolio of 187 stocks bought on margin cos you never sell any with 3/4 of positions so long in the tooth you can't even remember when or why you bought them. Know that feeling?

As for the upcoming rise in price to $40/month (or $400 per year) programmed for The IKN Weekly April 4th (and announced here) I'm kind of surprised but happy to say that since that post we've had 15 new subscriptions added to the list, which isn't bad for three days (in my little world, anyway). So I suppose this part of the post is a soft promo for the service that's saying "hey, come join the gang before it gets a touch more expensive", because if you join up before April 4th you'll be grandfathered on the present $25/month (or $250/year) price and won't pay the upgrade.

Dorato Resources (DRI.v): Strange how the President and CEO of the company was so keen on selling his own shares to the market recently, isn't it?

Hey Keith, dump 'em at $1.50 and watch the stock dive afterwards as reality sets in why don't you?

Dorato Resources Inc. (DRI)

As of March 2nd, 2011
Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price
Feb 09/11 Jan 06/11 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -3,000 $1.490
Feb 09/11 Jan 05/11 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $1.430
Feb 09/11 Jan 05/11 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -13,000 $1.500
Feb 09/11 Dec 29/10 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -18,200 $1.500
Feb 09/11 Dec 30/10 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -24,300 $1.500
Feb 09/11 Dec 30/10 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -6,500 $1.520
Feb 09/11 Dec 31/10 Henderson, Keith J. Direct Ownership Common Shares 10 - Disposition in the public market -1,000 $1.540

So to recap that's 75,000 shares sold around the $1.50 level that brought in gross proceeds of $112,500. Not only that but all of the sales were late filed too so as not to tip off the poor retail saps he was dumping on (many of whom live in Germany and have been raped once agian by the scumbag pushers like  boersenbrieflemming). So let's see how DRI shares have done since the President and CEO of DRI Keith Henderson dumped his stock and didn't tell the market?

 
Hmmm....44.6% down since he started selling his own shares.....I've seen better, gotta be said.

Hey. I wonder if Henderson and his cohorts have any more late file sales to declare to the market still? Certainly part of the company's M.O. (and they wonder why i insist on telling people to avoid Cardero Group companies like the plague?). Hey again!, Perhaps Mr. Henderson had advanced warning about the documentary that's getting aired on CBC tonight? Inquiring minds.....

The scam we know as Constitution Mining (CMIN.ob) is helpfully changing its name to 'Goldsands Development Company' soon

 
Q: What does the chart of a bullshit OTC pump'n'dump scam look like? 
A: It looks like this.

The upcoming name change got filed with the SEC yesterday, check it out here. "But why is this a helpful turn of events Otto?", I hear you ask. Well folks, that's because with a name that clear it's even easier to avoid this scam on reading today's headlines out of Peru:

Government Will Today Send Law Bill to Congress Against Gold Dredgers in The Amazon Basin
Thursday, March 3 2011, 7:02am

The Government will today send a Bill to Peru's Congress that will definitively prohibit the working of dredgers in all Amazon basin rivers.

In this way, the initiative girst reported by CPN Noticias on Monday and approved by the ministerial cabinet, wil be analyzed and sanctioned as quickly as possible so that the decommissioning of all dredging mahcines has a legal recourse.

The dredgers are considered to be one of the main causes of environmental deterioration in the jungle region and are located in the River Negro, Ullapichi, in the Pachitea basin Tahuayo, in Loreto, Atalaya in the Marañon river and Napo rover in Putumayo. CONTINUES HERE



Don't say I didn't tell you. And tell you and tell you and tell you........... Anyway, it's the death throes of another scam. Remember the bullshit that Michael Stocker, his greedy Swiss cronies, the scumball Joe Gorman and their band of delinquents foisted on you all the next time the names come up, won't you?

Chart of the day is....

...the first look in 2011 of our 'Small Silvers' comparative chart:

For those new round here, we run nine small silver companies against the silver ETF (SLV) and see how they get on compared to each other over the course a calendar year. So far in 2011, Great Panther (GPR.to) is leading the pack, followed by Impact Silver (IPT.v in a clear second place. Then come a bunch of securities including our benchmark SLV and after all those, the laggards.

Oh looky look, ECU Silver (ECU.to) is the worst performing of the lot! Hoodathunkit? Not Mexico Scamster and Paid Shiller Mike, that's for sure. How the devil can a silver producer be down 9% in a year when the metal is simply flying? The answer is, of course, that BS scams are found out eventually. DYODD.

3/2/11

A Flash update...

...was sent to subscribers tonight.

Minehead clickylinky heaven

IKN knows what mineheads and rockbangers want out of life. Mineheads and rockbangers want to read the Dundee Securities 2011 Mineral Exploration Stock Watch List that came out today March 2nd, just in time for PDAC.

And so it was done. Click right here, get your copy of the PDF, curl up by the fire and watch one side of your iPad melt while you read all 140 pages of it. This is one of the premier source material reports of this or any year so either be there or be square.  You please nice day be having thank you please.

Canadian readers, make a date in your TeeVee diary...

...for Thursday March 3rd and watch this documentary as part of the famed 'The Nature of Things" slot. Then short Dorato Resources (DRI.v). In fact, it may be better for you to short DRI.v first and watch it second. Thanks to reader 'FB' for the headsup, here's the blurb and here's the link to read more:

The Real Avatar

Thursday March 3 at 8 pm on CBC-TV, repeating Thursday March 10 at 10 pm ET/PT on CBC News Network

Peru is in the midst of an unprecedented resource “rush” – 72% of the jungle has been zoned for oil development alone. And according to recent studies, in just 10 years nearly half the Peruvian rainforest–one of the most biologically diverse areas on Earth–may be past the point of no return if current rates of deforestation continue. In The Real Avatar, David Suzuki sets off for the Amazon to investigate the effect this rush is having on the native peoples who call this land their home.

Under the shadow of the Cordillera del Condor mountains, and near where the mighty Amazon river begins, live the Awajun and Wampis peoples, a proud, warrior nation, never conquered by the Incas or the Spanish. Today, they feel they are being invaded again: Peruvian and Canadian mining companies aim to set up a gold mine on land these natives say is their traditional territory. In fact, the Awajun had an agreement for the establishment of a National Park along the Cordillera that would protect their land. But the Awajun found their agreement broken, quite literally in two, when Peru's President gave half the area over to mining interests. Studies indicate that mining here would devastate the area's water system – water that flows to the downstream Awajun...
CONTINUES HERE

Fortuna Silver (FVI.to): Another little snippet from IKN94....

...dated Feb 20th when we checked in on our Top Pick stock FVI. It had just put in a great bounce from the $3.60 level, but we saw what was going on and call more more more:
"...we believe the market might just be waking up and realizing just how much growth there is in this story, alongside the franked and proven profitability and the managerial smarts shown in mine operations. "
How's it done since then?
Another 17.7% up in six days, eh? Cue owly:
DYODD

UPDATE: Haha! That'll learn me:
I blame the owl.

Bayfield Ventures (BYV.v) and Brent Cook's drill interval calculator (from IKN94)

By popular demand (seriously, I've been told that this piece needs a blog-airing by subbers) here's an update on Bayfield Ventures (BYV.v), the bullshit scam run by the shady management team, ridden for his own gains by Mr Self-Service himself Marin Katusa of Casey Research and...utter surprise...pumped as TheNextBigThing by LouisLobitoJames of Casey Research. So rather than do any real work today here's what was written on the subject for IKN94 and published on Feb 20th (y'see the blog stopped for the vacay, but the Subscriber weeklies kept on rolling). Anyway, here's the piece on BYV.v and what's written below applies equally to the NR it came out with on Monday evening, as it's just the same vein drilled over and over again. Bulk mining my ass. Enjoy.

Bayfield Ventures (BYV.v) and Brent Cook’s drill interval calculator
We’ve mentioned it before, it’s got a permanent link over at the blog but today I want to take a few more lines to extol the virtues of using the Brent Cook/Corebox Drill Interval Calculator (find your way there this link), a most useful tool that we non-qualified geology laypeople* can use to get a better handle on the drill returns laid out in a company news release and it greatly helps in sorting out the wheat from the chaff.

So let’s take an example of chaff to show how it works, the company in question being the overhyped and underendowed Bayfield Ventures (BYV.v) which is trying to make out that its neighbour play to Rainy River’s (RR.v) hot Ontario property is something that RR.v will have to buy out to make the area into an open pit gold mine. It’s total piffle, but as that’s never stopped a junior miner from promoting itself here we are.

What we’ve had from BYV from its ‘Burns Block’ property so far are intersections of a high grading vein or two that have been presented as a much wider mineralized body. This practice of ‘smearing’ a high grade intersection over a wider area is designed to give the impression that there’s a lot more economically viable rock under the ground than is actually the case and it’s just this type of sleight of hand that the Cook/Corebox calculator is good at rooting out. Here’s the cutting of last Thursday’s NR detailing the core returns:
What we see is that the hole in question, RR11-1, is presented as having intersected 116.6m of 1.05g/t gold that started at a downhole depth of 509.5m and finished at 626.1m. We then see that this intersection included three higher grading areas, in particular two parts of the total that were high grading stuff (0.7m of 21.6g/t gold and an eyecatching 2.2m 33.13g/t gold). Those kind of returns point to very nice rock of course, but if it’s from a simple vein system the absolute amount of economic gold contained is always going to be limited to the vein itself and ounces contained aren’t so likely to impress. But as we see, BYV is offering up the intersection as being a big, wide and far more easily and economically mineable 116m wide.
What the Cook/Corebox calculator does is show us the truth of the matter and here’s how it works in this example case. Go over to the Corebox website and in the top line of the box presented, plug in the length and the grade of the big interval. In this case the length is 116m and the grade is 1.05g/t. Next, in the lines of the box that follow add in any of the “including” parts you see fit from the NR. In our case we’re concentrating on the two high grade parts (0.7m at 21.6g/t and 2.2m at 33.13g/t) that BYV announced. Once all your info is in, hit enter for the last time and read off the “residual” at the bottom. This is the solution to the question and shows a) how much length is left after the inclusions are taken away and b) how much gold per tonne is in the rest of the drillcore.
In the case of BYV’s R11-1 core, once you take out the high grade parts you’re left with 113m grading 0.299g/t. Believe me, nobody cares about that grade of gold at that depth as it would be far too expensive to haul it to the surface, as even with gold at $1400/oz and 100% recoveries that rock is worth less than $14 a tonne.

So what BYV has at Burns is a decent but deep-lying vein. But it’s one that it continues to drill at differing depths to make for a flashy news release every now and again and it’s also one that’s being used to make its case for being an indispensible part of its neighbour’s plan to build an open pit gold mine. Yeah, right.
Oh look, somebody decided to bid up and buy BYV Weds AM before the Thursday AM NR. Sheer coincidence, of course. We avoid.

IKN March 2nd back. Since that week BYV has dropped back to the low 80s again, which shouldn't come as any surprise. DYODD, dude.

Cocaine production, 2010


The International Narcotics Control Board (INCB) 2010 annual report was published this morning. These people are just about the best compilers of drug data out there (much less of a political axe to grind than other bodies, for one thing) so as regards cocaine production in the three producing nations, Colombia, Peru and Bolivia, this is the main INCB paragraph this year and the one people will zoom in on:
In 2009, the total area under illicit coca bush cultivation in South America decreased for a second consecutive year, as a result of a significant reduction of that area in such cultivation in Colombia. The total area under coca bush cultivation in the region in 2009 was 158,800 ha, 8,800 ha less than in 2008 (a decrease of 5 per cent). The Board is pleased to note that in 2009, the total area under illicit coca bush cultivation in Colombia decreased by 16 per cent, to 68,000 ha. In contrast with the situation in Colombia, the total area under illicit coca bush cultivation increased to 30,900 ha in the Plurinational State of Bolivia (an increase of 1 per cent) and to 59,900 ha in Peru (an increase of 7 per cent), in 2009, the fourth consecutive year in which such cultivation increased in those two countries.

Read the whole report on this link right here. Thanks to Setty for the headsup via mail, good of you dude.

Two from Peru's Madre De Dios golden cesspool

1) Hey, remember a couple of weeks back when Peru's government made world headlines by clamping donw on the illegal dredging for gold in the Madre De Dios (MDD)? How it blew up the ships that were dredging for gold-rich sands, throwing the mercury contaminated waters straight back and generally screwing up the entire ecosystem? And that bit about how it was planning on destroying 300 illegal dredging operations? Yeah well, this is Peru where money talks and governmental bullshit walks, so yesterday after getting rid of just 35 of these disgusting machines the whole operation was halted after a 5000 strong demo of locals that wants the dredging to continue was met full on by government armed forces on the new Transoceanic highway and the clashes left two dead and many injured.

2) Via Setty, an excellent report from the UK Daily Telegraph (a rarity in itself) about the life in gold rush MDD. This is must-read material but here's the same excerpt Setty used in his post. As he said, stomach-churning.
She was speaking from a refuge, the only one of its type in the area; only 72 girls have made it here since October 2008. It is a simple wooden building on a side street in the chaotic town of Mazuko, the main entry point into the Madre de Dios region, a couple of blocks away from the highway. It was late in the evening and Teresa was waiting impatiently for her parents to arrive from Lima to pick her up.
‘I was lost, I didn’t know where I was,’ she continued. ‘At night everything is dark, there are no lampposts or anything. The policeman told me that it was a miracle that I had escaped because no one can usually; they rape you and throw you in the jungle.’
Hey folks, don't forget that 15% of all the gold produced in Peru comes out of MDD....and that's just the legal production that's registered with the Mining Ministry.

¡Viva Investment Grade Peru!

Chart of the day is....

...gold, certainly not the first time but as we're currently nudging all-time highs ther'es a decent excuse. This is the weekly candle variety.

3/1/11

OT: The Sheen or Gaddafi "Who Said It?" quiz


Thanks to site pal and Motley Foolster Tim Hanson, we proudly (?) offer this link to the big quiz of the day. You get ten recent quotes and have to decide whether the person quoted each time was the Libyan dude or the 2 1/2 men dude. 

For the record, Tim scored 6/10 and your humble scribe scored 8/10. Beat that. Here's the link again.

UPDATE: Word reaches these shores that Bina at NotR scored 9...the smartypants.

Today's riddle

Q: When fundamentals move in favour and suit the silver sector, what's the difference between a real silver mining company compared to a bullshit scam run by liars and pumped by a thuggish brute known to the world as Wistar Holt and a two-bit paid shiller like Mexico Mike?

A:
DYODD

Greystar (GSL.to) is toast, according to this report out of Colombia today at least


Colombia's news channel RCN La Radio isn't normally one that gets mixed up with hype, so its report today carries that much more gravitas. Here's a translation of how it starts, click through for the rest:

Government To Deny Explotation License in Paramo de Santurbán

Sources at the Environment Ministry closely involved in the approval process for the environmental permit for the mining megaproject at the páramo de Santurbán in Santander (region) confirmed to RCN La Radio that the permit for the exploitation for gold and silver will be denied to the Canadian company, Greystar (GSL.to).


The information obtained comes four days before the last public audience regarding the environmental impact study for the project under the control of Greystar. CONTINUES HERE

Moral of this story? Don't believe everything that The Can of Corn pumps at you, because they've shown time and again how much they suck at political risk calls. As we wrote back on December 22nd:

"...I wonder how Nicholas CampbellSoup over at the Can of Corn will feeling about this news out of Colombia? After all, he's the dude that reiterated his spec buy on GSL with a $9 price target.....on November 19th....when the stock was at $5.19....and now it's going under $4.....you have a nice day too, Soupy.  
Disclosure: no position in GSL.to ( because I may be slow but I ain't stupid)"

DYODD, dude.

UPDATE: Another decent Colombian news service, El Espectador, gets in on the act and says basically the same thing, though quotes from even more sources. And if you want to hear about the 30,000 person march against the project that happened in the local area last Friday click this link to Semana magazine. Right now I'd rather hold Osama Bin Laden's penis than GSL stock.

On the subject of The IKN Weekly.....

...while relaxing and warming my tootsies in the sand a decision was made. I'm raising the subscription price of the Weekly to $40/month or $400 per year and this is how it's going to happen:
1) As of April 4th 2011, the subscription price will be raised to $40 a month, or $400 a year for those who prefer the annual discounted rate.

2) However and importantly, all those currently subscribed to The IKN Weekly and anyone who joins before April 4th will still be charged the old price of $25/month or $250/year. This 'grandfathered' price for those already on board before the change date will continue indefinitely because it's the least you good people deserve.

So  if you want in at the current price consider this fair warning; you have until April 4th to sign up. To round this off, a quick message to subscribers: I'll be explaining a little more about why the price is going up in this Sunday's edition, IKN96. Piña coladas served, the end.

Metalline Mining (MMG) to change its name to Silver Bull Resources and totally tips its hand


So I'm looking round the market this morning and thinking "jeesh, where do I start with all this?", so to make it easy here we go with some information that was given out to subscribers on the evening of Sunday 27th February. It concerns Metalline Mining (MMG) (MMZ.to) and by way of full disclosure, this is a stock I own and it's one that we recommended as a buy in the Weekly in late January. Here's an  excerpted adaptation of the Flash update sent to subscribers to explain all:

The latest SEC filing from MMG dated Feb 25th announces the company annual meeting of shareholders for April 20th. Of the six items on the agenda, proposal two leaps out and grabs attention (we highlight in red to leave even less doubt):


1.     
Elect six directors to serve until the next annual meeting of shareholders and until their successors are elected and qualified.
2.     
Approve an amendment to our Articles of Incorporation to change the Company’s name to Silver Bull Resources, Inc.
3.     
Ratify and approve the appointment of Hein & Associates LLP as our independent registered public accounting firm.
4.     
Approve, by non-binding vote, the compensation of the Company’s executive officers.
5.     
Recommend, by non-binding vote, the frequency of executive compensation votes.
6.     
Transact such other business as may lawfully come before the Meeting or any  adjournment(s) thereof.

Later in the filing, we are given a little more detail about proposal two:
PROPOSAL TWO
AN AMENDMENT TO OUR ARTICLES OF INCORPORATION TO
CHANGE THE COMPANY’S NAME TO SILVER BULL RESOURCES, INC.
    Metalline Mining Company has been the Company’s legal name since June 1986.  On February 22, 2011 the Company’s Board of Directors adopted a resolution to amend the Company’s Articles of Incorporation to Silver Bull Resources, Inc.  The adoption of the resolution is subject to shareholder approval.  Further, if approved by the shareholders the Board retains discretion as to when and if the name change should ultimately be effected.
     The Company’s primary exploration project is its Sierra Mojada project in Mexico.   As the Company has continued to explore its concessions at Sierra Mojada with respect to silver-zinc mineralization much of the Company’s drilling program in both fiscal 2009 and 2010 was focused on further exploring and defining this potential resource.  The Company believes that going forward its exploration efforts at the Sierra Mojada project will largely focus on continuing to advance the exploration and potential development of the silver-zinc zone at the project.  Accordingly, the Board of Directors believes that the proposed name change is appropriate to better describe the Company’s focus and anticipated exploration activities.  Therefore, the Board of Directors deems it advisable and in the best interest of the Company that the shareholders approve the proposed amendment to the Company’s Articles of Incorporation to change the name of the Company to Silver Bull Resources, Inc.
    If the shareholders approve the proposed amendment, and when (and if) the Board elects to change the Company’s name, in addition to changing the Company’s legal name under Nevada law, the Company will notify the Financial Industry Regulatory Authority (“FINRA”) of the name change and work with FINRA to obtain a new trading symbol for its common stock.  However, the change of the Company’s name to Silver Bull Resources, Inc. may not be reflected in the general market until after it is effective under Nevada law, and the Company may not be assigned a new trading symbol for some time (if at all).
    The Board of Directors recommends that shareholders entitled to vote at the meeting vote "FOR" approval of the amendment.  Pursuant to Nevada law, approval of the proposed amendment to the Company's Articles of Incorporation to change the name of the Company requires approval by a majority of the shares outstanding and entitled to vote.

If there had been any doubt about the intended direction of MMG previously, that has now disappeared. This is a most interesting development and strongly indicates that the promotional aspect of MMG is about to get into gear, perhaps earlier than anticipated. I still firmly believe that the major catalyst will be the 2q11 43-101 compliant PEA, but by then the interest may have already been cranked up...along with the share price.

In other words, ladies and gentlemen readership of this humble corner of cyberspace, we have a company that owns a deposit in a safe Mexican jurisdiction that with at the very least 100 million ounces of contained silver and probably a lot more (my personal opinion is that it could reach 200m oz without breaking sweat) that is getting those ounces valued at around a buck each when the rest of the silver exploration juniors out there are getting $2 to $3 per ounce on their ounces. And this MMG deposit looks eminently economic to mine, as well. 

We've had this stock as a recommend since late January when it was trading at U$0.98 and with its nice looking move in the last couple of days. we're already 23.5% up on the reco. And for what it's worth, according to the in-depth fundies analysis report we put together at The IKN Weekly issue 89, there's a lot more to come from this stock price (and if you want to read that report, subscribe).

So, blog readers, you now have an idea of the more detailed info subscribers have had about MMG for about five weeks. You also know what they found out a couple of evenings ago. Disclosure: Long MMG.

I watched 'Inside Job' last night...


...and recommend that you do, too. It gets a little stodgy in places but it does make for a good and clearly laid out walk-through of how the 2008 crisis came to pass. However, the best section was Charles Ferguson's exposés of the corrupted economist community who gave the banksters' free for all intellectual backbone...at a price, of course. Some great footage of indignant and squirming dumbasses in suits, for your entertainment and edification, on offer.

Go see or rent Inside Job, a worthy Oscar winner.

Chart of the day is....

....the silver ETF (SLV) versus ECU Silver (ECU.to), 2011 to date:


So far the metal is up 15% and the miner that's supposed to give you leverage on the product is down 15%, which just about sums up how bad this company really is and follows on from years of total underachievement (hey Wistar, how's that "cheap at $3.50 buy buy buy" from 2006 working out for you?).

All this on the back of moaning and whining about how it's just not jolly well fair and it's all the market manipulators' fault (yep...can't you just see JP Morgan centring its day around a tiny Mexico miner) by Mexico Mike "Oh No Definitely Not Corrupted" Kachanovsky. He also has the brass neck to call people to tell it like it is on ECU.to "scumbags", but for some reason doesn't seem to get that the real scum are people that accept payment from that überdog of an ongoing joke of a scamjob to pump it to the naive for years (not weeks, not months but years) on end. That's you Mikeyboy, worthless opportunist and scamrunner numero uno.

Oh, hello again!

Just when you'd gotten used to not reading this blog's inane nonsense, you'd realized that IKN was not a vital part of your life and you'd finally worked out there really wasn't much point in reading it in the first place and successfully weaned yourself off this humble corner of cyberspace, we're back from our spot in the sun and ready to bore you to tears all over again.

So yeah, it's good to be back but what's changed during the hiatus? Well, the MidEast is still slowly collapsing, Alejandro Toledo is still leading the polls in Peru, Marin Katusa's bullshit self-serving pumpjobs are still going downhill fast (not that he cares, he's already got your money, suckaz), according to EngLang media Colombia can do no wrong and Venezuela can do no right, ECU Silver is still a joke, FVI is still way undervalued, RIO.v still hasn't got its construction permit, GUY.to still hasn't found itself a buyer, zinc is still treading water, gold continues to climb and silver's up even more.

In other words, nothing much has changed at all. Looks like it was a good choice of month to be away.