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9/19/15

South Africa 32, Japan 34

This is the sport Youtube of the year.




Watch it with the sound turned off, it's even more beautiful.

9/18/15

Tim Oliver: "Nearly half of development-stage NI 43-101 studies surveyed lack engineering rigor"

Here's the link to the piece written by Tim Oliver of 'Mining's Black Box'. And here's the overview of the note to get you in the mood:

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Nearly half of development-stage NI 43-101 studies surveyed lack engineering rigor

Analysis of 34 Technical Studies 
By Tim Oliver 

First published in Exploration Insights on September 13, 2015. 
Background In March 2014 I wrote a two-part series for Exploration Insights titled “Top 10 Signs of a Bogus NI 43-101 Study”. I presented a slide show on the subject to the crew at Sprott Global Resource Investments Ltd. in Carlsbad, California. The presentation went well until the end. Steve Todoruk asked me what percentage of posted studies is actually bogus. I made what I thought was a reasonable guess. It was pretty high, and I could feel the room drifting away. Most didn’t believe me, and I felt I lost credibility.
 The subject haunted me from that day. So, having some time on my hands, and looking for a way to promote my services, I decided to find out.

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Whole article here. Your weekend reading, mining person



The Friday OT: Jon Hopkins; Light through the veins (full nine minute version)

Because I get a lump in my throat on every listening.



And these things are for sharing. And this came before the Coldplay use, just for the record. And it's miles better.

Dalradian (DNA.to) needs to be looked at again...

...and as a covered stock at The IKN Weekly (as well as a personal position) we're going to do just that this Sunday in IKN332, what with the changes to the corporate structure recently.


Minera IRL (IRL.to) (MIRL.L): A big thank you to Chuck Higgins of Fasken and Daryl Hodges of...

...well, of nowhere in fact but ex-Minera IRL (IRL.to) (MIRL.L), for sending along the freebies. Here's me wearing the cap as I sipped my coffee this morning.


Thanks guys, appreciated. 

More on the massive conflict of interest between Hodges (ex-Minera IRL) and Higgins (lawyer at Fasken in charge of the Minera IR paperwork) via their previous dealings at Jennings plus the BIG one, their joint ownership of The Pilot bar in Toronto, right here in this post from August 20th.

Goldman Sachs on gold

Here's the summary page from today squid does gold piece:


9/17/15

Oh wow Janet we're all rich...

...or something. No more posting today, this silliness isn't worth commenting about.

9/16/15

Chart of the day is...

....gold, which refuses to break under U$1,100/oz:



But Janet will cause immediate meltdown of everything in the world tomorrow. Ask Jeff Berwick.

PS: Still no mail from those nice people at Minera IRL who want my home address. It's almost as if they have other intentions than simply wan....ah, forget it. All they have to do is ask, y'know...

UPDATE: It's turning into a reasonable day for gold, now $1,124/oz and counting. Just about all the gold stocks up too. Except for Continental Gold (CNL.to) of course. Good old Ari, bless his heart.

Lake Shore (LSG.to) 144 Gap

These are nice numbers. The 144 Gap zone of LSG's property is beginning to look very tasty indeed.

In a reasonable market, this is the type of NR that shoots a junior higher. Sadly this is not a reasonable market and even good news from companies these days is being used as a 'liquidation window'. I won't be adding on this news, but holding is easy as we wait for the day Goldcorp (GG) buys them out. And they will.

9/15/15

Minera IRL (IRL.to) (MIRL.L): An interesting development for IKN

It has come to my attention* that certain people in or around Minera IRL (IRL.to) (MIRL.L) are, on this fine and sunny Tuesday, suddenly very keen indeed to get their hands on the home address of your humble scribe. They've been asking around for people who "know how to source this".

When I heard about this, I immediately sent a mail to the person doing the asking (I know mail addresses, y'see) and asked the person why they didn't ask me directly. So far no answer from the person.

One wonders why certain people in Minera IRL are suddenly so keen on this information. Perhaps they have papers they'd like to give me. Or perhaps they're up for a social visit (I make good coffee). Or perhaps it's something to do with this little piece of prose stuck at the end of IKN331 that was repeated in this post Sunday evening:

I’ll end this week’s update on IRL with a quick personal note, because I’m fully aware that both friend and foe inside or close to IRL will be reading these words very soon. I’ve heard from well-placed sources that the IKN coverage of Minera IRL has really got under the skin of some people at/close to the company. For sure mostly the Team Hodges side, but there’s also some annoyance from people who’d consider themselves to be on the side of Diego Benavides as well. Apparently, some of those people now truly hate me and would wish me physical harm. That’s a very good thing, ladies and gentlemen readers; getting waves of hate from the type of greedy, ignorant, boorish, racist, self-serving, uncaring scumbags who don’t give a rat’s hind quarters about shareholders, stakeholders or even if the Ollachea mine gets built as long as they get their share of the money is my idea of a strong success. And as long as they’re obsessing on me it might keep them from people who aren’t psychologically equipped to handle their bullying behaviour and nefarious deeds. So keep the hate coming people, all welcomed.

I'm posting this on the public blog because apart from the identities of sources (something I always keep in absolute confidentiality) I have nothing to hide. Unlike certain people I could mention.

*Though this time I'm not doing any screenshots, I've been strongly advised against it this time and you're just going to have to take my word.

Broken Justice in Mexico's Guerrero State

The report on this link has the title you see above. It's been published by The Open Society Justice Initiative and gives well-documented and deep details on the problems faced by this most problematic Mexican region. Here at IKN we've banged on and on about this, due to the direct political risk faced by (mining) companies set up there. What this report does is quantify the problem and it does it very well indeed. Here's an extract from the Executive Summary:

Evidence strongly suggests that some state institutions, including the police, have been infiltrated by organized crime. Meanwhile, elite families maintain powerful control over public institutions that have neglected poor, rural, and indigenous populations, feeding both cartel recruitment and popular discontent. If Guerrero’s citizens are no longer surprised by the regularity with which atrocities are committed, by now they are also used to the state justice system’s nearly comprehensive failure to hold perpetrators to criminal account. 
The Open Society Justice Initiative, in partnership with the Center for Human Rights Miguel Agustín Pro Juárez (Centro de Derechos Humanos Miguel Agustín Pro Juárez) and the Center for Human Rights of the Mountain Tlachinollan (Centro de Derechos Humanos de la Montaña Tlachinollan), set out to understand the dimensions of Guerrero’s serious crime problem— specifically killings, enforced disappearances, and torture—and to identify the reasons that Guerrero’s criminal justice system has so badly failed the victims of these crimes. The resulting report provides the first comprehensive analysis of the political will and technical capacity in the state to investigate, prosecute, and hold fair trials for alleged perpetrators of killings, enforced disappearances, and torture.

It's a free and direct PDF download and it's on this link. Well worth your time, this is the type of thing you need to read before you start ranting, not afterwards. It's what I do.

To be clear on Continental Gold (CNL.to)



On May 24th Continental Gold (CNL.to) put in one of its zoom moves and that evening I wrote this post, "The Loneliness of the Long Distance Runner". Here's most of the words from that post and some of them highlighted for your consideration today:

It's much easier to be part of the herd. And frankly, it was zero surprise to see CNL pop the way it did today because the whole and considerable weight of the Canadian bullshit peddling sellside mining industry is now behind this stock and its Buritica project. My stars those guys need a win and they've latched onto this one in no uncertain terms. When that happens, the outsider voice such as your humble scribe's will always, but always be fully trampled upon in the rush. And that's okay, it's part of the lonely territory covered at IKN. 
But be there 3m 4.6m or 10m ounces of supposedly and apparently economic high grading gold at Buritica, your author's opinion of this stock changes not one iota. The people running CNL.to are not suspected of being untrustworthy or perhaps guilty of ripping off the world and getting rich by peddling bullshit, they're stone cold certain rip-off merchants and proven mining scum. Feel free to put your money with them, but when you do be 100% crystal clear that by doing so you're not the solution to anything, you're just prolonging the deep problems in the Canadian mining industry. And when Buritica's political and community risk suddenly goes off scale and the whole project blows up in everyone's face, don't remember this post. Nobody else will either, which is why scumbags like Sussman and Wall get away with what they do.  
So I say the same thing tonight with the stock at $3.20 as I did when the stock was at $9, $10, $6 and most recently $2. Avoid Continental Gold, don't go long, don't go short, don't go near. Better to invest in juniors that aren't run by the lowest form of human life.

Mining PRs and the Ottotrans™, Part 91


We're back with the latest edition of our occasional series which takes the pretzel language of the mining company news releases and straightens it out into something normal people can understand.

And this one's a real beauty today, which leaps straight into the weird-talk at the title line. Continental Gold (CNL.to), the fake world class trainwreck in the making, starts today with "Continental Gold Elevates the Environmental Permit Application for the Buritica Project to the National Level" and OOOOH!!!, Doesn't that sound important and thrusting hey guys? So thank you Ari Sussman for yet another laugh-a-thon.

This is what they wrote:
TORONTO, ONTARIO--(Marketwired - Sep 15, 2015) - Continental Gold Inc. (CNL.TO)(OTCQX:CGOOF) ("Continental" or the "Company") announces that the Company has requested that the National Government of Colombia assume the responsibility of reviewing the Environmental Impact Assessment ("EIA") for the Buriticá project as a Project of National Strategic Interest (Proyectos de Interés Nacional y Estratégicos ("PINE")). Consequently, the Company has withdrawn its application for the modification of the EIA from Corantioquia, the autonomous regional environmental authority of the department of Antioquia.

On November 12, 2013, the National Government of Colombia declared the Buriticá project a PINE Project, as contemplated under Colombian law. The withdrawal of the EIA modification application from Corantioquia and the corresponding PINE process imply that the environmental aspects of permitting will now fall under the scope of responsibility of Autoridad Nacional Licensias Ambientales (ANLA), the Colombian national environmental licensing agency. The EIA modification application is expected to be managed under a fast track timeline and under the high-level government supervision provided by PINE regulations. The Company had already been working closely with the national government on different aspects of the EIA, and intends to refile the application inclusive of new amendments, in order to better align the EIA with the parameters being used in the feasibility study currently in progress (anticipated completion of the feasibility study in Q2 2016).
Ari Sussman, President and CEO, commented: "While we are disappointed that we missed completion guidance for the EIA permitting, we are very confident that the application process will be handled on an expedited basis, and we will complete it well ahead of there being any impact to our critical path timeline. We look forward to working with the national government in bringing the Buriticá project to a commercial reality."
"The establishment of the PINE initiative was the result of the national government's desire to advance large-scale projects in a timely fashion for the benefit of all Colombians, and it was designed to comprehensively address the challenges involved in moving large-scale projects forward", stated Leon Teicher, Executive Chairman. "I am confident that the approval process for our refiled application will be thorough and handled in a professional and efficient manner. We plan on building Buriticá to world-class standards and welcome the opportunity to demonstrate that the Company is committed to achieving the highest standards in environmental and health and safety."

And this is what it means:

"We didn't get the permit."


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Dalradian (DNA.to) bites the bullet and gets the necessary cash raise done early

Out of Dalradian (DNA.to) this morning:
Dalradian Resources Inc. (TSX:DNA)(AIM:DALR) ("Dalradian" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by Cormark Securities Inc. and including Dundee Securities Ltd., BMO Capital Markets, Canaccord Genuity Corp., RBC Capital Markets, Beacon Securities Limited, Clarus Securities Inc., Euro Pacific Canada, Inc. and Global Maxfin Capital Inc. (the "Underwriters"), which have agreed to purchase, on a bought deal basis, 43,750,000 units of Dalradian (the "Units") at a purchase price of C$0.80 per Unit (the "Offering Price"), for aggregate gross proceeds in the amount of C$35 million (the "Offering"). Each Unit will consist of one common share of Dalradian (a "Unit Share") and one common share purchase warrant (a "Warrant"), each Warrant being exercisable to acquire one common share of Dalradian at a purchase price of C$1.04 for a period of 24 months following the closing date.
And here's a section from the analysis of the 2q15 financials we ran at The IKN Weekly issue IKN327, dated August 16th:


So, you're surprised about this $35m bot deal today? Nope, me neither.


UPDATE: Here's the term sheet summary:

  • Leads: Cormark 40%
  • Co-Mgrs: Dundee 20%; BMO/Canaccord/RBC 10% each; Beacon/Clarus/Euro Pacific/Global Maxfin/National 2% each
  • Issuer: Dalradian Resources Inc. (or the “Company”)
  • Offering: Issue and sale of 43,750,000 Units on a “bought deal” basis. Each Unit is comprised of one common share of the Company (a “Common Share”) and one common share purchase warrant (a “Warrant”) of the Company.
  • Warrant: Each Warrant will entitle the holder thereof to purchase one common share of the Company (a “Warrant Share”) for a period of 24 months following the Closing Date (as hereinafter defined) at an exercise price of $1.04 per Warrant Share.
  • Offering Size: $35 million
  • Offering Price: $0.80 per Unit
  • Over-Allotment Option: The Company will grant the Underwriters an option to purchase up to an additional 6,562,500 Units at the Offering Price exercisable into Units and/or Warrants. The Over-Allotment Option shall be exercisable, in whole or in part, at any time and from time to time for up to 30 days from and including the Closing Date.
  • Use of Proceeds: The net proceeds from the offering will be used to fund exploration activities at the Curraghinalt Gold Project and for general corporate purposes.
  • Offering Basis: Offered publicly in (i) each of the provinces of Canada, except Quebec, by way of a short form prospectus; (ii) the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended; and (iii) jurisdictions outside of Canada and the United States, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.
  • Listing: The Common Shares will be listed on the TSX.
  • Closing Conditions: The Offering is subject to the execution of an underwriting agreement that is mutually satisfactory to the Company and the Underwriters (as defined herein), which shall include: standard representations and warranties by the Company; industry standard “disaster out”, and “material adverse change out” clauses, until the Closing Date, and contribution clauses.
  • Sales Commission: $0.016 per Unit.
  • Closing: October 7, 2015.
  • Comment: This is a bought deal for units (1 Common + 1 Warrant) at $0.80.  The new issue Units are sold at an 13.4% discount to the last reference price of $0.82 factoring in the value of the Warrant; each warrant has an estimated value of ~$0.09 (strike price of $1.04 and a term of 24 months following the closing date of October 2015). 



Lifting the lid on the Barrick (ABX) Pascua Lama mess

A very cool interview with Alexis Spencer, head of the Pascua Lama company employee's union, is in the Chilean press today. Those of you with the Spanish should go read the whole thing (and there's always that Google Translate button to press for others), but here's an excerpt from the thing as translated by your humble scribe:

Reporter: "In your opinion, how or when did the problems begin to show at Pascua Lama?" 
Alexis Spencer: "This all started a long time ago, here you have a situation from the beginning with a project director who was awful for us, who is Ron Kettles. All this (the Pascua Lama mess) was the mistake of one person and we workers are still paying for it to this day. The company brought in foreign personnel to high management who didn't know or respect Chile's laws, nor the idiosyncracies of the Chilean workforce." 
Reporter: "Is that where the issues of non-compliance came from, the things that weren't done on environmental matters?" 
Alexis Spencer: "That's where they came from. Environmentally, the project was well developed on paper, what was written and had been stipulated by the Chilean environmental authority (the RCA) above all was well done, there weren't any problems. But that project director ran roughshod (over the plans), on many issues he said, "No, we'll do it like this instead" on matters of construction. For example, we (the workers) told him not to raise buildings in one sector because it was an avalanche zone. But they built them there and after a heavy snowfall, one that was the worst since 1997, then came the avalanches that destroyed the buildings." 
"But why all this? Why this problem? It's because these people, the directors, were in Santiago and I told them "You do all the work here on Google Earth". They did go to the project site, so they said that no, these areas look good (for construction), but we repeated to them that in those places there would be avalanches when there was a harsh winter. That's how the problems started." 
Reporter: "If that director had done things right, would they have avoided all these problems?" 
Alexis Spencer: "I think so yes, of course, if things had been done right from the start we would be where we are today. Afterwards other directors were brought in. We talked with management and we were listened to and we managed to get the directors out, because we went to talk with Barrick Santiago and explained the problems and Barrick fired them all." 
They brought in other project directors, also foreigners and we still had problems. All this only began to get sorted out a little when the latest project manager arrived, the Chilean Eduardo Flores, but by then it was already badly done and all he could do was remediation, band-aids, we were already stuck with the problems."


Full interview here. For the record, Ron Kettles came from Bechtel Brazil to Barrick in 2004 and was eventually fired in 2011.

9/14/15

What we now know about the Barrick (ABX) spill at Veladero on Sunday is that...

...some 15,000 litres of water containing cyanide (Barrick's cute terminology was "cyanided solution") was spilled when one of its conduit pipelines ruptured. What's up for debate is where that cyanide went after it suddenly and unexpectedly left its intended pipe.

The locals swear blind the water reached and entered the local river, then on to the water supply. Their information sources are workers at the mine who daren't go on the record else get fired immediately, but they're on WhatsApp and Twitter telling people the reality. Sales of bottled water have rocketed in Jáchal. These are the same locals who were kept in the dark all day yesterday and only has their rumours confirmed late Sunday night after staging a demonstration outside the local municipality demanding answers.

The management at Barrick swear blind (in the press release they only bothered publishing in the Veladero region, no point in doing it in English for the world right guys?) that although the spill did happen, it was contained on site and not a drop of "cyanided solution" reached the local river.

This is of course the same company that swore blind for years on end it wasn't affecting any of the glaciers at Pascua Lama just a few clicks up the road form Veladero. Right up to the moment the Environmental Agencies closed the project down for doing just that. Bless 'em.

Mining sector bottom signal du jour

In a couple of weeks' time, Andrew Bell's half hour segment on the mining sector, weekday mornings on BNN, is being expanded to a full hour. Oh you lucky Canadian people you, eh...

I still think that channel should never have changed its name from ROBtv.

The Keith Neumeyer $100m market cap challenge

Here's the question: Which of these companies will reach a market cap of exactly $100m first?*
  • First Mining Finance (FF.v)
  • First Majestic Silver (FR.to) (AG)
Personally, I think it's going to be a close run thing. :-)


*And we're talking exactly $100m...not cheating Keith

Your task for the day

Go to the Google machine and type in combinations of "Jeff Berwick" "Shemitah" "Crash" "Systemic Collapse" "September 14" and of course "My New Book Available Now".

My lordy lord there are some dumb people in this world. Or as George Carlin put it, "Think of how stupid the average person is, and realize half of them are stupider than that".

Chart of the day is...

...five years of zinc:


It's under 80c/lb again this morning. But don't worry! We're nearly at that happy end year period when the Canadian anal ysts tell us how next year there's going to be a supply crunch in zinc. It's a tradition in Canada y'see...like Christmas.

Barrick (ABX): A broken pipeline at its Veladero mine in Argentina causes problems with the local town

This report today from a local news service in Argentina, "DiarioHuarpe" tells of how the community of Jáchal near the Veladero gold mine owned by Barrick Gold (ABX) first heard unfounded rumours about a large pipeline breakage problem at the mine which over the course of yesterday Sunday were turned into confirmed facts.

The locals demanded that water supply be shut off in the town and that schools be closed today Monday because the broken pipeline has supposedly spilled a large quantity of cyanide contaminated liquid at the mine. Barrick however say that the local water supply is drinkable. Miguel Martín, head of communications at Barrick said that "They're saying that the local water supply is contaminated but that is completely false", that "We don't have any contaminated water anywhere" and that ABX would publish a press release this morning on the subject (no word on whether the presser is in Spanish for Argentine locals or for all of us...we'll know in about 45 minutes).

My thanks to reader J for the headsup. 

The top three most visited IKN posts this week are...

...in reverse order:

Third Place: "Torex (TXG.to): What? Political risk in Guerrero? Surely not!". Because people care about IKN's cutting edge English language coverage of political risk events.

Second Place: "Volumes". Because people care about IKN's opinions on just how cruddy this market really is.

First Place: "How internet censorship works, IKN edition".  Because people are paranoid.




Screw you, people.

9/13/15

My stars how I hate football

Waste of time, should never have been invented.

The IKN Weekly, out now


Learn all about this plaque here

IKN331 has just been sent to subscribers. The main event was a piece on Standard Trolling (TON.v) , but part of today's edition is an update on what's happening at the Minera IRL (IRL.to) (MIRL.L) soap opera, along with what we can expect in the days to come. It ends on a personal note and just to annoy a few people just a bit more, here's that bit:


I’ll end this week’s update on IRL with a quick personal note, because I’m fully aware that both friend and foe inside or close to IRL will be reading these words very soon. I’ve heard from well-placed sources that the IKN coverage of Minera IRL has really got under the skin of some people at/close to the company. For sure mostly the Team Hodges side, but there’s also some annoyance from people who’d consider themselves to be on the side of Diego Benavides as well. Apparently, some of those people now truly hate me and would wish me physical harm. That’s a very good thing, ladies and gentlemen readers; getting waves of hate from the type of greedy, ignorant, boorish, racist, self-serving, uncaring scumbags who don’t give a rat’s hind quarters about shareholders, stakeholders or even if the Ollachea mine gets built as long as they get their share of the money is my idea of a strong success. And as long as they’re obsessing on me it might keep them from people who aren’t psychologically equipped to handle their bullying behaviour and nefarious deeds. So keep the hate coming people, all welcomed.