A superb article on money and its origins by Rosemary Joyce, right here.
Attached is our annual publication on the Junior ExploreCo space. We are proud of our track record despite the dismal returns in 2011. We are always looking for new, high quality names to add and happy to see the report widely circulated.
Trust you took your fill of Lachlan Star when I first pointed it out to you... It is my latest add under full coverage - a nice double in 6 months!bestRon StewartEVP & Head of ResearchDundee Capital Markets
Calamaro takes on a Gardel classic and does a fine job of it, too.
Vos sabés, no hay que jugar
...Brent crude, monthlies:
"You heard it here first. IKN can confirm that on Monday March 5th 2012, Ecuador's government will sign the contract for the big Mirador copper project with the delegation representing China's CRCC-Tongguan consortium, owners of ECSA (Ecuacorriente).
"The signing will happen in the Presidential Palace, Correa in charge of the whole bunfest. Expect the full PR machine in attendance and expect Vice Minister of mines Auquilla to beam and smile to one and all as he mans the Ecuador booth at PDAC."
El Comercio Ecuador (country's newspaper of record), evening of March 1st 2012:
First Large Scale Mining Contract To Be Signed Monday
Thursday March 1st 2012, 5:22pm
The Minister of Non-Renewable Resources, Wilson Pastor, said a few minutes ago that next Monday (March 5th) at 5:30pm in the Yellow Room of The Carondelet Palace (aka Presidential Palace) the first contract for large scale mining production will be signed.
The agreement will be signed between the Government of Ecuador and the Chinese company Ecuacorriente (Ecsa) that operates the Mirador project located in the province of Zamora Chinchipe. Continues here
IKN back and next you'll be asking how your humble scribe scooped the world by two days on this. Answer: not telling you. My Kung-Fu is (etc etc)
Here's a message to those that think I drink too much coffee. First read this and then
Thank you for your attention. Here's how that Reuters piece kicks off, by the way.
Numerous studies of coffee's links to myriad diseases have provided head-spinning results, but a new paper finds java drinkers have no more risk of illnesses such as heart disease or cancer.
"If you're daft enough to have bought this bullshit scam at the higher prices and are now confused and worried, the course of action is simple. Sell them all now and walk away carrying your loss, because if you think it's dropped a lot already, just wait til it breaks under 10c. Because it will. Soon."
At the time the stock was still at 40c. Today, just 19 calendar days later, it's at 9.6c
The end. No more posts on this scam, just another sigh and wistful thought about where the SEC was hiding when the criminals running this thing were making off with greenhorn cash.
Y'see, even Nicholas CampbellSoup can get 'em right occasionally. This from today:
Fortuna Silver Mines Inc.
FVI : TSX : C$7.30 | C$902.5M | Speculative Buy, C$9.50 ↑
Nicholas Campbell, 604.643.XXXX
- A premier junior silver producer with a proven management team; maintaining SPEC BUY rating; increasing target to C$9.50 (from C$7.25)
Investment recommendation We maintain our SPECULATIVE BUY recommendation on the shares of Fortuna Silver with a revised 12-month target price of C$9.50, up from C$7.25.
Valuation Our peak silver estimate of NAVPS (5%, US$35/oz Ag) remains unchanged at C$8.54. However, given the proven management team, strong balance sheet, and organic growth profile, we believe Fortuna Silver is a premier junior silver producer that warrants a premium valuation. We are adjusting our valuation to 1.1x our peak silver price estimate of NAVPS (5%, US$35/oz), up from 0.85x previously.
- With the San Jose mine ramping up and the steady contribution of the Caylloma mine, Fortuna appears positioned to continue growing its annual production over the next five years, with peak production estimated at 6.8 million ounces of silver-equivalent by 2017.
- Fortuna has more than US$70 million in cash in the bank and no debt. We forecast that the company should generate operating cash flows of $80-115 million per year over the next 10 years.
- We believe Fortuna's management team has a stellar track record of developing and operating underground mines. In an environment with increasing scarcity of experienced, proven management groups, we believe Fortuna possesses one of the top teams to add value through further exploration and development.
...silver versus gold, these last two days:
PS: Bonus Leap Day Quiz Question! (and answer):
A: They all do
The reason why I'm emailing you is because of your statement about Batero yesterday. The company released a resource estimate of 6.1M ounces (3.5M+2.6M), and not 3.5M, as you pointed out in yesterday's blog post. I agree 200% with your remarks on the grade. It's pretty shitty.
The 43-101 workshop at Round Up this year was pretty interesting, with a full review of the new rules. However, the real eye-opener for me was to hear how understaffed they are over at IIROC and at the Securities Commissions. They admitted that they do not go over in any sort of detail up to 90 or 95% (that’s the number that stayed in my brain; it may be off slightly but it was definitely north of 90%) of technical reports. That’s full-fledged technical reports, not NRs! If they don’t even have the resources to police full-fledged technical reporting, you can imagine what this means for NRs. I think this means the onus is on the investing public (and those professionals who care about our industry’s reputation) to send complaint notes to IIROC or the BC Sec Commission when we spot more egregious examples of non-compliance. Hopefully they DO have the manpower to follow up on complaints. Come to think of it, they should subscribe to your blog. They would get their daily dose of non-compliant NRs in one easy read!
The other point is about drill location data. I asked this exact question at the Round Up workshop. It seems that from the point of view of disclosure, it doesn’t seem that they are that bothered about *how* you disclose location data. A table of XYZ coordinates is obviously best for the technically minded amongst us, and to my mind is the least obfuscated way of presenting data, but a map with drill collars hosted on the company’s website is apparently also acceptable. However, I agree that at present the vast majority of NRs coming from the junior sector are non-compliant. And given the attitude of many, it seems likely to stay that way until the Commission gets more teeth.
That sure fits with what IKN sees happening in the market.
Disclosure: No exposure to anything Ecuador. That won't change.
...recoverable copper ore yield grade, 1980 to 2010, according to Barclay's Capital.
Is the company going to step up and make a statement? On reading this, it's about time it did, methinks:
Mexican State of Veracruz Rejects Goldgroup Mining Project
Monday, 27 Feb 2012
Mexico: The governor of Veracruz, Javier Duarte de Ochoa, rejected the installation and operation of the gold mine in the municipalities of Alto Lucero and Actopan promoted by the Canadian company Goldgroup.
"After careful inter-institutional studies made by the secretaries of the environment, social development, civil protection, health and economic development, the State government has come to the conclusion that the Caballo Blanco mine is not a viable project", he said.
He added that "It is incompatible with the specific environmental characteristics of the zone in which it would operate."
Batero (BAT.v): Nicholas CampbellSoup over at The Can of Corn is probably not having the greatest of Monday mornings
Analyst Nicholas Campbell of Canaccord Genuity is maintaining his rating on shares of Batero Gold Corp. (BAT.V) as the company released promising drilling results from its Colombian Batero-Quinchia mine, The Globe and Mail reported.The Globe said he is expecting an initial resource of at least 7 million ounces of gold, with longer-term potential for the project to develop into a 10 million ounce gold resource.Canaccord Genuity maintained its "speculative buy" rating and 12-month target price of $10 on the stock.
Here's an owl:
Love your blog. Thought I would send this along, as this will certainly perk up some ears on your more technically minded readers. NI43-101 requirements changed in June 2011, and of the more significant changes is this:
(1) If an issuer discloses in writing exploration information about a mineral project on a property material to the issuer, the issuer must include in the written disclosure a summary of(a) the material results of surveys and investigations regarding the property;(b) the interpretation of the exploration information; and(c) the quality assurance program and quality control measures applied during the execution of the work being reported on.(2) If an issuer discloses in writing sample, analytical or testing results on a property material to the issuer, the issuer must include in the written disclosure, with respect to the results being disclosed,(a) the location and type of the samples;(b) the location, azimuth, and dip of the drill holes and the depth of the sample intervals;(c) a summary of the relevant analytical values, widths, and to the extent known, the true widths of the mineralized zone;(d) the results of any significantly higher grade intervals within a lower grade intersection;(e) any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to in this subsection; and(f) a summary description of the type of analytical or testing procedures utilized, sample size, the name and location of each analytical or testing laboratory used, and any relationship of the laboratory to the issuer.
In other words, any TSX or TSX-V listed company that is putting out drill results in press releases must include the location, azimuth, dip, and intersected depths. Most juniors I have seen so far are not yet in compliance, but this is especially pertinent to those sophisticated investors (or institutions) with 3D modelling software who can effectively make estimate block models. If the juniors aren't doing this yet, there's no hurt in sending them a gentle reminder so we can make more educated decisions about projects.
Here's the full text:
"Man sacrifices his health in order to make money. Then he sacrifices his money to recuperate his health. Then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die and then he dies having never really lived."