Beyond Business as Usual.
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1) GDX (the gold miners) beat GLD (gold the metal) by about a point last week
2) GDXJ (the junior gold miners) stayed lockstep with wild man SLV (silver the metal) in the same period, with both giving you the beta you'd require from the extra risk.
Your humble scribe is encouraged by the action of the last five days.
Dedicated to El Cocinero.
This video should be required viewing for all mankind once a month.
Is the world ready for Marin Katusa's next pump job? Well ready or not, here it comes. Beanstalk Capital is the name of the game, the IPO is up real soon and here's the best homage we could possibly pay:
DYODD and watch out for those elks, dudettes and dudes.
Your author translates this release from Peru's State news agency, Andina:
10:50 Fernando Gala resigns as Vice-Minister of Mines
Lima, July 8 (ANDINA). The Ministry of Energy and Mines (MEM) today accepted the resignation of Fernando Gala from the post of Vice-Minister of Mines and charged said role to the Vice-Minister of Energy, Luis Gonzáles.
According to an executive resolution from the MEM published today, Gala's resignation will go into effect on July 15th and as from the following day, Gonzáles will be in charge of said desk.
From July 16th Gala will occupy the post of Spokesperson of the Mining Cabinet, a post that he ran from 2007 until he was designated Vice-Minister of Mines.
Gala became Vice-Minister of Mines on June 22 2009
Bonjour Otto,You wrote about Allied American Steel some time ago.Please refresh my memory and tell me on which date.Merci d`avance
And with a 67.8% loss in just 14 trading days since June 20th, it looks like the owl is needed round here.
I was going to do a post on Chilean Prez Sebastian Piñera LawdAwful 31% approval rating yesterday, but didn't get round to it. Now that Greg Weeks has it covered, no need. By the way, 31% is almost acceptable in some LatAm countries, but in Post Pinochet Chile it's literally unheard of.
*just a bit of a fool sometimes
Casey Research pump jobs and smearing: How Gold Bullion Development Corp (GBB.v) and Bayfield Ventures (BYV.v) use the same BS
Just read your blog entry about the BYV smearing issue. About time the BCSC reacts.
The BCSC should really look into another Casey pump job - GBB, Gold Bullion Development Corp.
Eye through some of their drill results and boy do they know how to make worthless rock look okay-ish.
Case in point, drill hole GR-10-173 - 80m @ 1.36 g/t (from 253 m to 323m depth). But take away that 1 m intercept at 322m depth grading 89.83 g/t and you're left with a worthless hole.
and lots of others.
Especially of interest should be the following release, considering hole GR-10-55 where GBB doesn't seem to report the short, high grade interval(s):
Maybe you could highlight this on your blog?
...LME copper inventories.
Bayfield insiders sell as Rainy River area play overheats
BY MATTHEW ALLAN
Vancouver — A 400- by 800- metre claim block east of Rainy River Resources’ (rr-t) flagship gold project in northwestern Ontario is causing a big commotion at the project’s operator, Bayfield Ventures (byv-v).
Bayfield has drilled into a bonanza-grade mineralized zone at least twice since optioning the small sliver of land called the Burns Block in late 2007. This year, it plans to complete 100,000 metres of drilling in an attempt to prove that economic mineralization from Rainy River’s main OMD/17 zone extends onto its property.
To that end, Bayfield reported an eye-catching intersection last month grading 8.66 grams gold per tonne and 57.67 grams silver at 80 metres, starting from a downhole depth of just 16 metres, including a smaller bonanza-grade zone about halfway through. The results shot the company’s shares up 51%, from 59¢ to 89¢, on a record-high trading volume of 10.4 million shares on June 27, the day results were released.
The problem, at least according to the British Columbia Securities Commission (BCSC), is in the way Bayfield has reported its assays. On June 30, BCSC forced Bayfield to restate its latest drill results, as well as selected results dating back to September 2010, in order to “clarify certain details of its technical disclosure of drill results,” with Bayfield admitting, “The drill results are potentially confusing, as certain larger intervals were reported by diluting high-grade intercepts over longer intervals of lower-grade gold and silver mineralization.” The BCSC says the 80-metre intersection grading 8.66 grams gold and 57.67 grams silver is more accurately reported as a 26-metre intersection grading 26.7 grams gold and 170.69 grams silver, with most of that in turn coming from an 11-metre section grading 60.05 grams and 362.96 grams silver, starting from a depth of 48 metres.
The rest of the interval, says Exploration Insights newsletter writer and geologist, Brent Cook, is essentially “waste rock.” (Bayfield calls it a “broad halo of anomalous to multigram-level gold and silver mineralization.”) Indeed, when the 11-metre section is removed using a tool designed by Cook called the Drill Hole Interval Calculator, the remaining 68 metres of the drill hole have a residual grade of just 0.23 gram gold and 7.6 grams silver.
In a June 28 telephone interview with The Northern Miner from his office in Vancouver, Bayfield’s president Don Huston defended his company’s way of reporting the assays, arguing it is a regular practice to calculate an average of high- and low-grade sections, and that it was compliant with National Instrument 43-101. “I’m not trying to smoke anybody,” Huston said. “I’m showing that we have tonnage and grade equal to the $9 stock (Rainy River). And that’s a fact. . . should I report every metre, and show a chart twelve metres long?”
Huston acknowledged that the vast majority of the hole outside the high-grade zone graded below 0.4 gram gold, which is under Bayfield’s cut-off grade, and therefore not significant. He declined to comment on Cook’s methodology, but said he is familiar with it.
Huston maintains there is “good reason to believe” the mineralized zone found near surface in the latest hole RR11-71 is the same zone, or is connected to a high-grade zone found at the other side of the property in September 2010. That hole, RR10-18, returned an impressive 81 metres grading 5.08 grams gold, although most of that can be attributed to a 10-metre section grading 35.93 grams gold starting from a depth of 497 metres.
The holes are 350 metres away from each other on surface, but because of the variance in depth, the actual distance between the holes — and the potential length of the high-grade mineralized shoot — is approximately 600 metres.
According to Cook, who spoke to The Northern Miner about Bayfield’s latest results via telephone from just north of San Diego, “When you get these high-grade veins . . . usually they are nuggety, and Bayfield has showed pictures of coarse gold in the core, so you know it’s nuggety. So, the issue becomes one of continuity. How far can you project a high-grade intercept along strike or plunge? Usually not far.
“My sense of what they’ve got is maybe there is a rather small shoot that plunges from north to south that goes across what they’re drilling. Certainly, from the data we’ve seen, this is not a very disseminated deposit.”
Bob Marvin, Bayfield’s exploration manager and senior project geologist for Burns Block, acknowledges it has been “very difficult” to establish continuity of the high-grade shoot over a significant length. Speaking from Bayfield’s field camp near the Burns property, Marvin told The Northern Miner, “There’s absolutely no intention on our part, or certainly my part, to say that we see a lot of continuity, because clearly we have not. Now, whether that’s because we’ve missed or because there’s a true lack of continuity, I really think you’d have to go underground to establish.”
Marvin noted the high-grade shoot is contained within a well-established east–west trending zone of strong foliation, sericite alteration, locally intense deformation and highly variable pyrite mineralization. He pointed out drill hole RR10-15 may have picked up the shoot at a depth of 190 metres, with assays returning 9 metres of 12.88 grams gold, including a 3-metre section grading 31.71 grams gold. Many other holes have failed to demonstrate much continuity within high-grade zone, including hole RR10-9, which was drilled 25 metres along strike of the original high-grade discovery, hole RR10-18, and returned 20 metres of 1.2 grams gold, with the best interval within that intercept grading 9.93 grams gold over 2 metres.
According to Marvin, Bayfield has yet to prove much economically significant gold mineralization exists outside of the broader envelope that includes the high-grade shoot. “There is (some) evidence, but at this point, ninety-eight percent of every ounce if we were to do a resource would be within the zone.” Rainy River previously optioned a majority interest in the property from Bayfield in 2007, but dropped the option amid the financial crisis in November 2008 after drilling seven holes.
Rainy River’s namesake project boasts 4.1 million oz. gold in the measured and indicated category, in a conceptual open pit containing 115.5 million tonnes grading 1.11 grams gold, as well as 1.8 million oz. gold inferred. Besides hosting significant silver values, the deposit also has a underground resource estimated at 1.8 million tonnes measured and indicated, grading 4.82 grams gold for 290,800 oz. gold.
Having raised over $10 million in the past year, Bayfield should be well equipped in 2011 to drill out much of the Burns Block, and explore its nearby properties in the Rainy River area, including its C Block half a dozen kilometres to the west, and its B Block a few kilometres to the north.
Helping raise nearly half of Bayfield’s money was the Casey Research Group, which has been touting the stock as a potential takeover target since September 2010. The Casey Group’s monthly International Speculator newsletter has recommended its readers buy the stock no less than seven times in the subsequent nine months. Some of them must have listened, as three Casey employees (Marin Katusa, Marc Bustin and Joe Hung) found themselves the recipients of a $249,999 cash finder’s fee in October 2010, after helping Bayfield sell $5-million worth of stock in a flow-through private placement at $1.40 a share. The trio also received 178,572 finder’s warrants for their efforts.
Insider trading reports of Bayfield’s management show that no fewer than six insiders sold a combined total of approximately 589,000 shares shortly after the company released the first set of drill results that found the high-grade mineralized zone in late September 2010. The stock fell almost 65% in the following nine months, reaching a low of 50¢ in mid-June.
The latest round of drill results has proved little different, with four Bayfield insiders selling stock on the day the company released the assays. Huston sold 80,000 shares at 83¢ each; chairman Jim Pettit sold 90,000 shares at prices ranging from 87¢ to 94¢; exploration manager Marvin sold 64,000 shares around 83¢ apiece; and Burns Block project geologist Shane Hu sold all 25,500 of his shares at an average of 91¢ each. Huston and Pettit exercised options a week later to buy 50,000 shares and 200,000 shares, respectively, at 39¢ a share.
After their big leap on June 27 from 59¢ to an intraday high of $1.02, shares of the company have retreated back to a low of 66¢ on July 4. At presstime on July 5, they were trading up 5¢ to 71¢ on 327,000 shares traded. Bayfield has 62 million shares outstanding, 72 million if fully diluted.
Peruvian Nuevo Sol closes at its highest level in three years
(El Comercio) The Peruvian currency closed today's session in 2.744 to the US Dollar, its best level since April 2008
Peru's Main Stock Indexes End Higher; Sol Strengthens
LIMA (Dow Jones)--Peru's main stock market indexes ended sharply stronger on Thursday, on gains in a number of blue chip mining companies that were boosted by rising mineral prices.
The broad General Index closed 1.91% higher, at 19,831.08.
The blue-chip Selective Index ended 2.02% stronger, at 27,607.49.
Peruvian Bonds Rise to 3-Month High on Bets Economy To Rebound
(Bloomberg) Peruvian bonds rose to a three-month high as investors bet the South American nation’s economy will keep growing after President-elect Ollanta Humala takes office.
(IKN) Owl's Comment On Peru Makes More Sense Than 99% of The Tosh Written About Country
- Its size. We're already in the multibillion Lb Cu category here and its main Altar deposit shows every sign of getting bigger. If 10Bn lb Cu + is considered the world-class size of deposit, that's what you're looking at here, no sweats.
- The close-by satellite targets are looking very promising, with more than intriguing gold intercepts already reported.
- The location is remote but pretty good infrastructure wise, with lots of room to build a mill, water unlikely to be a problem, electricity lines due to be strung a few Kms away soon, roads in good shape, environmental footprint of a plant will also be lower than in many other areas.
- Management is of the no-nonsense, no pushyhype, professional get-on-and-explore variety, the kind of people to look for to create longer-term value instead of shorter-term BS.
- In Argentina, because it would already be triple its current price if the borderline between Chile and Argentina were set just a few clicks further East.
- Most of the resource is inferred, which is normal for this type of early stage exploration but does mean there's decent money left to be spent on drilling.
- The enargite found may become an issue in the event that you actually mine Altar and produce a concentrate. I don't consider this a big fat red flag right now, but it's one thing to keep an eye on as the project is moved forward.
UPDATE: Reader 'DM' writes in with the following to back up the point being made:
"Re today's post, my ex wife was accumulating gold the year previous to our divorce. Being South Asian this was not so alarming but the timing makes me think insider trading."
*trans: the dude who mailed me
Arjona Rivera, 19 years old and pregnant, visited a prisoner in a Mexican prison condemned to 20 years behind bars and at the end of her visit helped him hide in her luggage. On discovering him, the prison guards laughed.
Tuesday July 5th 2011
Cancun (EFE). - A man sentenced to over 20 years in prison for several crimes tried to escape from the Chetumal prison, in the Mexican State of Quintana Roo, doubled up like a contortionist in a fetal position inside a suicase that his wife tried to take out of the prison.
According to local police information today, the jailbreak attempt of Juan Ramirez Tijerina happened last Friday, when at the end of the conjugal visit of his wife, Maria del Mar Arjona Rivera, (he) tried to leave the jail carried inside a heavy and bulky suitcase.
The jail authorities said that after checking the suitcase and discovering the prisoner, the newlywed wife named Arjona Rivera, 19, who is currently pregnant, was detained while two other prisoners were put under investigation for apparently knowing about the escape plan.
The young woman had to be taken to a hospital emercency ward in Chetumal due to complications in the pregnancy generated by the tension of the days since her detention, but now her condition is stable, according to sources at the Chemabal prison. As soon as her medical condition allows, she will be taken again to the jail to be judged for the crime of false liberation of prisoners, they added.
Arjona Rivera was helped by other prisoners to take the suitcase out of the conjugal area, but on arriving at the custodial exit area it was seen that she had great difficulty in managing the luggage that supposedly only held dirty laundry, what's more the suitcase's wheels also broke.
Nerves got the better of the woman, who with resignation watched as guards opened the suitcase to find her husband, dressed only in underwear and socks.
The police that opened the suitcase went from amazement to uncontrollable laughter on seeing the man doubled up and holding his breath. The escape of prisoners is a minor offence and, according to local laws, the woman may be set free on payment of bail.
In the seventies and eighties, the Antar family ran Crazy Eddie, a popular electronics chain known for its frenetic commercials.
The business was crooked from the start, but the fraud got more serious when the family took the company public in the 1984. In 1987, the Securities and Exchange Commission investigated the family and discovered years of inflated profits and overstated income.
On today's show, one of the masterminds of the fraud, Eddie's cousin Sam Antar, explains how they did it and why it worked for so long.
This is why.
Bayfield Ventures (BYV.v), an exercise in red flagsI’d like you to go to the footnotes list and make a point of linking through to link (13) and then take a good read of its contents because it is a salutory reminder of what you, the retail investor, need to avoid in this sector. However here’s the top of the NR published by Bayfield Ventures (BYV.v) last Thursday to make sure you at least get the gist of what’s going on:
Press Release Source: Bayfield Ventures Corp. On Thursday June 30, 2011, 7:50 pm EDTVANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2011) - Bayfield Ventures Corp. (TSX VENTURE:BYV - News; FRANKFURT:B4N - News; the "Company") is issuing this news release as a result of a review by the British Columbia Securities Commission in order to clarify certain details of its technical disclosure of drill results on its Burns Block property and of its disclosure of resource estimates at Rainy River Resources' gold project adjacent to Bayfield's Burns Block.Rainy River gold properties claims map: http://www.bayfieldventures.com/i/pdf/BYVRRArea.pdfThe Company restates certain drill intervals (listed below) reported in news releases dated September 8, 2010, December 14, 2010, February 16, 2011, and June 27, 2011. The original averaged gold and silver grades over these intervals are all correct and the total amount of gold and silver mineralization is the same; however the drill results are potentially confusing as certain larger intervals were reported by diluting high-grade intercepts over longer intervals of lower grade gold and silver mineralization.The higher grade gold and silver intervals reported in the effected news releases identified above, and re-reported here, are enclosed within the much wider envelopes of anomalous level gold mineralization (and accompanying variable silver values). We therefore revise the portions of the previously reported intervals for which questions of potential economic viability cannot currently be assessed by Bayfield. Such an assessment would require identifying likely mining methods and establishing many other parameters that are well beyond the scope of our exploration project at this point in time.The following is a list of the holes that report longer drill intercepts which are being restated:- Previously reported larger intervals in hole RR10-18 (September 8, 2010 news release)- Previously reported larger intervals in hole RR10-52 (December 14, 2010 news release)- Previously reported larger intervals in hole RR11-1 (February 16, 2011 news release)- Previously reported larger intervals in hole RR11-70 (June 27, 2011 news release)- Previously reported larger intervals in hole RR11-71 (June 27, 2011 news release)
Bayfield Ventures (BYV.v) is a company I’ve mentioned on more than one occasion on the blog because it checks off so many of the boxes that shady junior mining companies check off. There’s the promotional aspect, the suspicious relationship it has with market moving commentators who have little or no idea about geology (and yes I know that’s true for me too but at least there’s no false pretences) and the cutely timed insider sales and rounds of financing that seem to benefit everybody bar the end user. The NR put out last week caps off a whole round of doubtful promotion that stretches back nine months, as BYV.v was forced by the BCSC to retract previous news releases it has made regarding its drill results. Please go and read the whole thing to get a fuller picture, but in a nutshell BYV.v has been slapped on the wrist for “smearing”. This is when a small, high grade intercept is used to make a larger width of the same drill core look like it’s all potentially mineable rock when in fact only a small part of what’s on offer could ever be construed as economically mineable. It’s a subject we looked at in IKN94, that piece also found its way onto the blog (14) and by sheer coincidence, the example used was that of BYV.v. I’ll leave you to check out that note at your own leisure (and if you have further questions I’m only too pleased to hear from you) but rather than do the same info twice over, I’d like to point out a couple of things about the latest BYV.v NR that has announced the forced retraction and adaptation of drill results. What follows is directly related to the dates of the news releases as they appear in the paste-out above.
- The September 8th NR was the high point of a very aggressive promotional campaign for BYV.v that got many new investors into the stock. That day the company traded over 9m shares, which is many multiples more than its normal traded volume and without looking too far back into the company records is most likely a record. The share price peaked at $1.38 that day and to give an idea on the type of move it put in, the previous day it was trading at 83c.
- On the back of that Sept 8th NR and market reaction, BYV.v just a couple of days later announced a $5m non-brokered private placement of flow-through shares priced at $1.40 (15).
- At the exact same time, company Chairman and CEO Jim Pettit decided it was a great time to do some insider selling and make over $100,000 on the sales he made in the next few days. Other insiders also cashed in at that time (15).
- Meanwhile, much the same pattern was repeated on December 14th when the NR that day which has also been retracted due to ‘smearing’ of results saw BYV.v stock jump over 10% the next morning.
- The February 16th NR also saw the stock jump over 10% by way of reaction, all on twice normal volumes. This was the very NR we covered in our IKN94 note about smearing (14).
- The share price reaction from the most recent June 27th NR was even more dramatic, with the stock climbing over 50% and 6.9m shares changing hands. Just four days after an intraday peak of $1.02 that morning, BYV.v is now at 76c and fading fast.
But as well as this highly coincidental NR-plus-PPS-plus-Volume-plus-Promotion action, we should also note the way in which Bayfield has announced its correction last week. It has done so on the evening of June 30th, at 7:50pm, when most all of the market is not paying attention and is unlikely to do so through Canada Day (July 1st Friday) and perhaps even US Independence Day (July 4th Monday), even though Canada’s markets are open for business tomorrow. That stinks, frankly. If it were an isolated case of convenient timing from a junior with a better track record of transparency that type of detail wouldn’t matter so much. But when it comes to a company like BYV.v, it matters a great deal.
It’s at times like these when your author reminds himself of the odds of a junior exploration company actually ever getting an asset into production (either via in house efforts or via selling it to a third party) and because those odds are so very small indeed, any small sign that a junior is out to mine the market (Mickey Fulp’s preferred expression) instead of the rock will always go down as a red flag. But when the signs come think and fast from a company and are backed up by dubious promotional techniques from dubious “research” houses, it’s difficult to imagine seeing the phrase CAVEAT EMPTOR writ any larger.
DYODD. I'm looking forward to Lobito...c'mon dude, pump it again, don't let us down. And oh yeah, full disclosure: No position in BYV.v (IKN highlights these scummy stocks for love, not money).
News roundup (we successfully flip playing cards into the waste paper baskets on the other sides of offices more frequently than the average news source)
Step Four: An Owl
...the 15 year zinc price chart:
They're all here. Thanks JG.
...comes from David Merkel, author of the sector-famed and high traffic Aleph Blog.
Your humble scribe says YAY to that.