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   Gold/Mining/EnergyDISCOVERY BOARD ~ PRECIOUS METALS ENERGY URANIUM OIL


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From: PaperPerson5/18/2012 6:23:29 AM
   of 4690
 
Comex Gold Rallies Sharply on Short Covering, Bargain Hunting, Fresh Safe-Haven Demand
Thursday May 17, 2012 2:15 PM

Comex gold futures ended the U.S. day session sharply higher and near the daily high Thursday, posting the largest daily advance in many weeks. Traders and investors stepped in to "buy the dip" in gold prices by doing some heavy short covering and bargain hunting. For the first time in a while some significant safe-haven investment demand also cropped up in gold. The gold market was also oversold, technically, and due for an upside corrective bounce, which it saw Thursday. June gold last traded up $37.00 at $1,573.60 an ounce. Spot gold was last quoted up $33.60 an ounce at $1,574.50. July Comex silver last traded up $0.814 at $28.01 an ounce.

The market place was seeing just a bit of a pick-up in investor risk appetite early Thursday morning, following Wednesday afternoon’s release of the minutes of the latest meeting of the Federal Open Market Committee, which hinted that further quantitative easing of U.S. monetary policy is not off the table. Then the Philadelphia Federal Reserve business survey was released and it was weaker than expected. That dented gains in the dollar index and U.S. stock market, rallied the U.S. Treasury prices, and was one impetus for traders to do some short covering and fresh buying in the gold market.

It’s important to note that Thursday’s gains in gold came amid somewhat of an overall “risk-off” day in the general market place, following the Philadelphia Fed survey. The big gains in gold do suggest a portion of the yellow metal’s gains were related to safe-haven investment demand.

Wednesday afternoon’s FOMC minutes that hinted further quantitative easing of U.S. monetary policy is possible if the economy were to continue its lethargic ways is an underlying bullish factor for the raw commodity markets, including the precious metals. Thursday’s weak U.S. economic data further stoked notions “QE3” is not at all off the table. Most traders and investors reckon a QE3 situation would be inflationary down the road, which is commodity-market-bullish. However, many reckoned the monetary stimulus seen by the major central banks of the world during the past 3.5 years would have already produced inflationary price pressures.

For the gold market bulls, they needed to see a day of solid, corrective upside price action. Prices were nearing the key technical level of $1,500.00 an ounce. A move below that major psychological support level would begin to inflict longer-term chart damage and would call into question the 11-year-old price uptrend that remains in place on the longer-term charts. Gold prices around this week’s low also mark a 20% decline from the all-time highs scored last year. Many market watchers determine a bear market to be in place when a market price has backed off by 20%.

The European Union debt and financial crisis is still on the front burner of the market place. The Fitch ratings agency Thursday further downgraded Greece’s debt rating, which was not at all surprising. After Tuesday’s failed efforts by Greek politicians to form a coalition government, fresh Greek elections are now scheduled for mid-June. Concerns regarding Greece leaving the Euro zone are high, as the Greeks’ commitment to financial austerity is highly questionable. Spanish and Italian bond yields are above 6%, which is stressing the EU financial system.

The U.S. dollar index traded near steady Thursday after hitting another fresh four-month high overnight. The greenback has benefited recently on fresh safe-haven demand mainly due to the EU situation. The dollar index bulls have good upside near-term technical momentum. Meantime, crude oil futures prices were slightly lower Thursday after prices Wednesday hit a fresh 6.5-month low of $91.81 a barrel. Crude oil remains in a bearish fundamental and technical posture. If crude oil continues to trend lower and the dollar index continues to trend higher, sustainable near-term price uptrends in gold and silver could be difficult to achieve—unless more solid safe-haven demand for gold surfaces.

The London P.M. gold fixing was $1,554.00 versus the previous London P.M. fixing of $1,548.50.

Technically, June gold futures prices closed nearer the session high Thursday. While serious near-term chart damage has been inflicted recently decent follow-through buying and a bullish weekly high close on Friday would begin to suggest a near-term market bottom is in place. Gold bears still have the overall near-term technical advantage. A 2.5-month-old downtrend is still in place on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,585.80. Bears' next near-term downside price objective is closing prices below solid technical support at this week’s low of $1,526.70. First resistance is seen at Thursday’s high of $1,579.80 and then at this week’s high of $1,585.80. First support is seen at $1,564.40 and then at $1,550.00. Wyckoff's Market Rating: 3.5.

July silver futures prices closed nearer the session high Thursday and saw short covering and bargain hunting after prices Wednesday hit a 4.5-month low. Silver prices are still in a 2.5-month-old downtrend on the daily bar chart. The silver bears still have the solid near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $29.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the December low of $26.50. First resistance is seen at Thursday’s high of $28.295 and then at $28.50. Next support is seen $27.50 and then at Thursday’s low of $27.175. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed down 40 points 347.40 cents Thursday. Prices closed nearer the session low. Copper bears have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week’s high of 367.45 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the January low of 340.60 cents. First resistance is seen at 350.00 cents and then at Thursday’s high of 352.15 cents. First support is seen at this week’s low of 344.90 cents and then at 342.50 cents. Wyckoff's Market Rating: 3.0.

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From: PaperPerson5/18/2012 1:41:37 PM
   of 4690
 
Big picture: gold is still under accumulation, at least as measured by Joe Granville's useful technical innovation called On Balance Volume. What Granville figured out was that you could take each day's volume and assign it an uptick or downtick based on wehthr the stock price rose or fell that day. same for a week. take the weekly volume and assign it based on net change for week.

Over time, the OBV trend line shows whether the stock is being accumulated or distributed by smart money.

I am applying OBV to measure accumulation and distribution in GLD, the electroniically traded fund that has become the best most measurable proxy for the metal. While the traders are focused on the daily chart, which is fairly depressing and could make somebody throw in the towel on gold, I am encouraged by the weekly chart.

on balance volume, which is an indicator of accumulation or distribution, has remained quite positive on a week-to-week basis, even while exhibiting weakness on the daily chart.

DAILY

Looking at this ETF, gold is now closing in on $160) after falling off its higihs in recent months. I see this as retrentching for a new advance, and have not changed my mind even in the last few weeks when the numbers have been pretty grim.

besides being a nice round number, $1,600 happens to be the 50 day moving average right now.

so breaking through 1600 is a strong objective for gold as it works toward reestablishing a bull market.

stockcharts.com

WEEKLY

here is gold on a weekly chart with a 50-week (nearly one year) moving average.

by this weekend the price looks like 1600.

the chart should change TONIGHT to reflect the higher friday close for the week.

picking a moving average period of time is kinda arbitrary. I am using 50 weeks because it is close to a year and it lets me leave the parameters unchanged on stockcharts.

the moving average number to hit on this chart is $1626.

stockcharts.com

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From: PaperPerson6/5/2012 11:08:46 PM
   of 4690
 
Nice piece on how gold royalty firms are making out. Talks about Ssl and Magellan briefly.

mobile.reuters.com

Royalty firms could spur junior miner deal bonanza
Mon Jun 4, 2012 3:15am EDT

* Cash-rich royalty companies poised to strike new deals

* Equity market slump puts junior miners in a tough spot

* Developers, juniors, mid-tier miners all vying for funds

By Euan Rocha

TORONTO, June 3 (Reuters) - Royalty companies that raked in cash from strong precious metal prices in the last three years look poised to drive a wave of deal activity in the Canadian mining sector, especially among junior players hungry for financing.

These companies, which fund projects in return for a portion of future revenues, generated huge amounts of cash flow from existing deals as the price of gold and silver soared since the beginning of 2009.

Now, with the recent pullback in precious metal prices and slumping stock markets, they could be the saviors for small and mid-tier miners who are eager to grow but strapped for capital.

Etc etc etc

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To: PaperPerson who wrote (4614)6/5/2012 11:42:22 PM
From: TheSlowLane
   of 4690
 
Who needs the banksters? ;^) The sector is generating enough free cash flow to finance itself...the producers and royalty companies can finance the developers...

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From: Rob J236/13/2012 6:54:11 AM
   of 4690
 
Red Eagle Mining Intercepts 6.0 Metres at 31.85 Grams Per Tonne Gold at Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2012) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF), is pleased to announce the first and only assay results received to date on the in-progress, phase two drill program at the San Ramon deposit in the Santa Rosa gold project in Colombia. The first results include strong gold mineralization in both core drill holes SR-041 and SR-042, with the most significant intercept being in hole SR-042 which included 6.0 metres at 31.85 grams per tonne gold.

Phase two consists of 24 core drill holes (see Figure 1 - Drill Hole Plan: media3.marketwire.com, of which 19 holes totaling 3,995m have been completed to date with assays pending on 17 holes, numbered SR-043 to SR-059. The following table summarizes significant gold intercepts in the first two holes which were drilled from the same pad at inclinations of 45° and 70° and confirm that strong gold mineralization extends to depth (see Figure 2 - Cross Section B-B': media3.marketwire.com. True widths are estimated to be close to 90% and 70% of the intercepts and vertical depths are estimated to be close to 70% and 90% of the drilled depths for holes SR-041 and SR-042 respectively, as reported below. All assay results are uncut.

Table 1 - San Ramon Drill Intercepts
Hole ID From
(m)
To
(m)
Interval
(m)
Au g/t
SR-041 68.40 75.40 7.00 1.96
incl. 74.90 75.40 0.50 22.10
113.00 147.60 34.60 0.63
incl. 146.50 147.60 1.10 8.35
SR-042 138.70 205.60 66.90 3.06
incl. 184.00 190.00 6.00 31.85
"Our drilling at San Ramon continues to deliver high grade intercepts, with today's results of six metres at nearly an ounce per ton of gold confirming the robustness of the deposit," comments Ian Slater, Chief Executive Officer. "Both holes also significantly increased the width of the known gold mineralization and this was just the first two holes back out of sixty being drilled this summer."

San Ramon trends east-west, dips 65-70° to the north, extends over 1,800m, is up to 60m in width and is exposed at surface. Wide-spaced drilling intercepts from phase one averaged approximately 1.2 g/t Au to a vertical depth of over 250m. The mineralisation extends to surface where channel sampling has also averaged approximately 1 g/t Au. The 2012 work program for San Ramon includes the phase two core drill program (24 holes totaling an estimated 5,000m), a phase three core drill program in the near surface oxides over the entire known gold mineralisation which will commence in June (36 holes totaling an estimated 5,000m), preparation of a NI 43-101 resource and a preliminary metallurgical test work program.

Phase One Results

All the remaining assays have now been received from the phase one drilling program. Results from phase one drilling at San Ramon were previously reported (see news release dated January 17, 2012 - redeaglemining.com. Core drill holes SR-024 to SR-040 were exploratory holes targeting a few of the many currently identified anomalies outside of the San Ramon deposit and, while typically containing thin gold bearing veins, did not return economically significant results. With the exception of holes SR-029 and SR-031 which targeted the Malambo prospect in the Northwest Sector (which contains a large concentration of historic workings). The following table summarizes significant gold intercepts from the two holes drilled in the Malambo prospect to date.

Table 2 - Malambo Drill Intercepts
Hole ID From
(m)
To
(m)
Interval
(m)
Au g/t
SR-029 140.00 141.00 1.00 6.12
363.00 364.00 1.00 9.66
SR-031 136.50 138.00 1.50 5.18
165.35 166.50 1.15 13.30
A Mobile Metal Ion (MMI) systematic soil sampling program has been completed over the entire Santa Rosa project with assays highlighting multiple gold and copper anomalies in both the Northwest and Central Sectors that have not yet been drill tested. In addition, over 400 historic adits have now been mapped and sampled to date. Active exploratory work continues over the entire project area.

Table 3 - Drill Hole Specifications
Hole Easting Northing Elevation
(m)
Azimuth Dip EOH
(m)
SR-024 857403 1223497 2496 0 -45 301
SR-025 854294 1223584 2480 180 -45 301
SR-026 854294 1223584 2480 150 -45 314
SR-027 857403 1223497 2496 180 -45 151
SR-028 854404 1223747 2471 180 -45 325
SR-028A 854404 1223747 2471 180 -45 636
SR-029 852389 1224776 2514 180 -45 401
SR-030 852389 1224776 2514 230 -45 401
SR-031 853006 1224396 2554 220 -45 305
SR-032 859267 1222803 2491 180 -45 129
SR-032A 859267 1222803 2491 180 -45 355
SR-033 856004 1223542 2524 230 -45 300
SR-034 860246 1222491 2490 90 -60 193
SR-035 860246 1222491 2490 180 -45 400
SR-036 856993 1222294 2515 0 -50 321
SR-037 858172 1223205 2448 180 -45 256
SR-038 858177 1223306 2448 0 -45 340
SR-039 857335 1223762 2506 65 -45 131
SR-040 857335 1223762 2506 65 -65 80
SR-041 857796 1223267 2445 180 -45 178
SR-042 857796 1223267 2455 180 -70 239
Quality Control and Assurance

All drill samples were collected with two diamond drill rigs using approximately one metre sample intervals and following standard industry practice. Acme Analytical Laboratories prepped and screened samples in Medellin, Colombia and assayed samples in Santiago, Chile. Gold values were determined by fire assay of a 30g charge with an AA finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. QC/QA included the insertion and continual monitoring of standards and blanks into 10% of the sample stream batches, along with check assays conducted at alternate accredited laboratories.

The scientific and technical information contained in this news release has been reviewed and approved by Michael Johnson, P.Geo., who is a "Qualified Person" as defined under National Instrument 43-101.

About Red Eagle Mining

Red Eagle Mining Corporation is a well-financed Colombian gold exploration and development company with an experienced exploration and management team. Red Eagle Mining is currently exploring two properties in Colombia, Santa Rosa and Pavo Real. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Cretaceous Antioquia Batholith. Gold mining within the Santa Rosa project pre-dates the 16th century when an estimated 30 million tonnes were mined. Santa Rosa is located 70km north of Medellin near the town of Santa Rosa de Osos in a region characterized by gently rolling hills and excellent infrastructure. Santa Rosa is also located 50km west of AngloGold Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t Au) and 60km east of Continental Gold's Buritica gold deposit (630,000 ounce M&I resource grading 17.8 g/t Au). Pavo Real is an extensive project within the Mid-Cauca gold belt containing both a sedimentary hosted gold system and a 15km long copper/gold/silver skarn formation hosting significant high grade brownfield mines. For further information on Red Eagle Mining please refer to our website www.redeaglemining.com, or contact Ian Slater, Chief Executive Officer

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To: Rob J23 who wrote (4616)6/21/2012 6:39:25 PM
From: PaperPerson
   of 4690
 
got some RD. Thanks for letting us know about it!
kinda of a cool drill play and it seems to be moving.
low outstanding shares and cashed up.
do you know anything about the management?

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To: PaperPerson who wrote (4617)6/21/2012 9:54:30 PM
From: PaperPerson
   of 4690
 
RD breakout

theglobeandmail.com

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From: Rob J236/26/2012 7:46:33 AM
   of 4690
 
Red Eagle Mining Intercepts 35.5 Metres at 2.28 Grams Gold Per Tonne at Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) -Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce additional assay results received from the recently completed 24 hole, 5,400m phase two core drill program at the San Ramon gold system located within the Santa Rosa gold project in Colombia. Assays have now been received for 10 holes with assays pending on 14 holes (SR-052 to SR-065). The additional results show strong gold mineralisation over significant intervals in core drill holes SR-044, SR-045A, SR-047 and SR-048, with the most significant intercept being in hole SR-045A of 35.5 metres at 2.28 grams gold per tonne. This follows an intercept of 66.9 metres at 3.06 grams gold per tonne in hole SR-042 reported in the news release dated June 13, 2012 (http://redeaglemining.com/news/?pg=1&nyy=2012&nid=35), covering assays on the first two holes of phase two.

Table 1 summarizes significant (+0.20 g/t) uncut gold intercepts from phase two core drill holes SR-041 to SR-051 [see Figure 1 (http://redeaglemining.com/siteFiles/89/files/maps-lg/Stage1_San_Ramon_Drill_Map_June_2012Large.jpg) Drill Hole Plan and Figure 2 (http://redeaglemining.com/siteFiles/89/files/maps-lg/SR_SE_Sector_Long_Section_Schematic_22June12-Large.jpg) Long Section] of which the latest assays are for holes SR-043 to SR-051. Internal dilution within intercepts is limited to the inclusion of runs of no more than 6m below cut-off.

Table 1 - San Ramon Drill Intercepts (*previously reported)

Hole ID From (m) To (m) Interval (m) Au (g/t)
SR-041* 68.40 75.40 7.00 1.96
incl. 74.90 75.40 0.50 22.10
113.00 147.60 34.60 0.63
incl. 146.50 147.60 1.10 8.35
SR-042* 138.70 205.60 66.90 3.06
incl. 184.00 190.00 6.00 31.85
SR-044 213.90 247.90 34.00 0.71
SR-045A 115.60 117.60 2.00 6.87
147.00 182.50 35.50 2.28
incl. 149.90 151.40 1.50 28.26
incl. 173.90 175.80 1.90 14.36
SR-047 147.00 149.00 2.00 0.52
162.00 168.00 6.00 0.44
174.00 223.00 49.00 1.08
incl. 180.00 181.00 1.00 11.70
incl. 220.00 223.00 3.00 6.10
SR-048 114.80 125.90 11.10 1.77
incl. 116.80 117.80 1.00 14.40
SR-049 127.00 131.80 4.80 6.14
SR-050 88.20 89.20 1.00 1.31
95.20 98.60 3.40 1.21
Holes SR-043, SR-046, SR-049 and SR-051 were drilled to test the western extent of the structure and as expected did not return economically significant results. The exception was hole SR-049, which returned an intercept of 4.8m at 6.14 g/t Au, indicating that the structure may extend along strike to the west, possibly pinching to narrower widths in places but with higher grades, which is encouraging for underground mining evaluation below and outside the potential open pit.

"Our drilling at San Ramon continues to deliver confirmation of a robust mineralised system containing numerous high grade gold intercepts and long intervals," comments Ian Slater, Chief Executive Officer. "Assays are pending on another 14 holes from phase two and phase three drilling is continuing through the summer."

The San Ramon structure trends east-west, dips 60°-70° to the north, extends over 1,800m, is up to 60m in width and is exposed at surface. Wide-spaced drilling intercepts from phase one averaged approximately 1.2 g/t Au to a vertical depth of over 250m. The mineralisation extends to surface where channel sampling has also averaged approximately 1 g/t Au. The 2012 work program for San Ramon includes the phase two core drill program (24 holes totaling 5,400m), a phase three core drill program in the near surface oxides over the entire known gold mineralisation which has just commenced (36 holes totaling an estimated 5,000m), preparation of a NI 43-101 resource and a preliminary metallurgical test work programme.

Table 3 - Drill Hole Specifications

Hole Easting Northing Elevation (m) Azimuth Dip EOH (m)
SR-041 857796 1223267 2445 180 -45 178
SR-042 857796 1223267 2455 180 -70 239
SR-043 856191 1223330 2462 na -90 194
SR-044 857907 1223294 2470 180 -65 290
SR-045A 857694 1223258 2454 180 -75 199
SR-046 856191 1223330 2462 180 -80 162
SR-047 857604 1223297 2450 180 -70 264
SR-048 857918 1223229 2467 180 -45 151
SR-049 856204 1223390 2478 180 -45 148
SR-050 857605 1223231 2464 175 -45 169
SR-051 856204 1223390 2478 180 -75 227
Quality Control and Assurance

All drill samples were collected with two diamond drill rigs using approximately one metre sample intervals and following standard industry practice. Acme Analytical Laboratories prepped and screened samples in Medellin, Colombia and assayed samples in Santiago, Chile. Gold values were determined by fire assay of a 30g charge with an AA finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. QC/QA included the insertion and continual monitoring of standards and blanks into 10% of the sample stream batches, along with check assays conducted at alternate accredited laboratories.

The scientific and technical information contained in this news release has been

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From: PaperPerson6/26/2012 10:41:56 PM
   of 4690
 
Cool speculative news about gold as a global asset:
I first noticed this on the 'zero hedge' site. But it looks like John Butler of Amphora Capital originated the article.

Gold Could be Classified as Risk Free Asset by Bank Regulators
Jun 25th, 2012 @ 12:32 pm

valuewalk.com

By John Butler

REGULATORS TO CLASSIFY GOLD AS ZERO-RISK ASSET

In what might be the most underreported financial story of the year, US banking regulators recently circulated a memorandum for comment, including proposed adjustments to current regulatory capital risk-weightings for various assets. For the first time, unencumbered gold bullion is to be classified as zero risk, in line with dollar cash, US Treasuries and other explicitly government-guaranteed assets. If implemented, this will be an important step in the re-monetisation of gold and, other factors equal, should be strongly supportive of the gold price, both outright and relative to that for government bonds, the primary beneficiaries of the most recent flight to safety. Stay tuned.

DID ANYONE NOTICE?

In an Amphora Report last month, The Canary in the Gold Mine, I made the case that a key reason why gold has not been acting like a safe-haven asset in recent months is because banks are so capital impaired that they are scrambling to reduce their holdings of risky assets in favour of so-called ‘zero-risk-weighted’ assets, against which they needn’t set aside any regulatory capital. As it stands, gold has a 50% risk-weighting. But some government bonds, including US Treasuries, German Bunds and British gilts, are zero-risk-weighted.

However, in the report, I speculated that perhaps that would change in future, and that:

“…if it happens, it will be an important step toward the re-monetisation of gold. Gold would be able to compete on a level playing field with government bonds. While the playing field could be levelled in this way, there would be a gross mismatch on the pitch. On the one hand, you have unbacked government bonds, issued by overindebted governments, yielding less than zero in inflation-adjusted terms. On the other, you have gold, the historical preserver of purchasing power par excellence.” 1

Well, on 4th June the Federal Reserve, OCC (Office of the Comptroller of the Currency) and FDIC (Federal Deposit Insurance Corporation) collectively circulated a memo asking for comment on their proposed changes to the regulatory capital risk-weighting framework. Section 11, ‘Other Assets’, specifies that a “zero risk weight” is to be applied to “gold bullion held in the banking organization’s own vaults, or held in another depository institution’s vaults on an allocated basis…”

Whoa. There you have it. As it stands now it would appear that, in the near future, banks will not have their regulatory capital ratios penalised for holding gold instead of government bonds as a safe-haven, zero-risk asset.

While the fundamental backdrop for gold is highly favourable and has been for some years, as the supply of money, credit and government bonds has grown dramatically, this technical aspect of the gold market is also clearly bullish. Indeed, as I wrote in The Canary in the Gold Mine, if gold is re-classified as a zero-risk-weighted asset, “the price is likely to soar to a new, all-time high.” I stand by that statement. In about six months we will know whether I am right, or whether I have misread this one.

Given the potential importance for gold, I’m surprised that this announcement has not been widely reported in the financial press, alternative or even mainstream. Perhaps this is due to the fact that, at this point, the re-classification of gold has only been proposed, not implemented. The change is not due to take effect until 1st January 2013.

With interest rates near zero, however, the opportunity cost of sitting on a non-interest-bearing gold position for six months is close to zero. Yes, gold may appear to be in a downtrend and, yes, it might have been unusually volatile of late, but unless the regulators backtrack, I see this as clearly bullish for gold, enabling much catch-up to Treasuries.

It remains to say something about why, perhaps, US regulators are poised to change bank regulatory risk weightings in favour of gold in this way. I do have some ideas about that. However, those will have to wait for a future Amphora Report.

$$$

John Butler has 18 years’ experience in the global financial industry, having worked for European and US investment banks in London, New York and Germany. Prior to founding Amphora Capital he was Managing Director and Head of the Index Strategies Group at Deutsche Bank in London, where he was responsible for the development and marketing of proprietary, quantitative strategies. Prior to joining DB in 2007, John was Managing Director and Head of Interest Rate Strategy at Lehman Brothers in London.

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From: Rob J236/29/2012 1:00:30 PM
   of 4690
 
Brookemont Significantly Increases Acreage in the Gaspe Bay Aluminous Clay/Rare Earth Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2012) - Brookemont Capital Inc. ("Brookemont" or the "Company") (TSX VENTURE:BKT)(PINKSHEETS:BKTPF) wishes to announce that it has increased the acreage on its Gaspe Bay Aluminous Clay/ Rare Earth prospect. We have gone from 2234 contiguous hectares (5520 acres) to now having approximately 7600 contiguous hectares (approximately 16,500 acres). Management anticipates starting operations on this new prospect in July. The new acreage was acquired via Gestim.

Conrad Clemiss, president of the company stated, "Management is focused on building value for the shareholders of Brookemont. We have now acquired a significant land package in the Gaspe Bay region of Quebec, and we plan to become active on this new prospect as soon as possible. We have also just made arrangements to push all other cash payments on our other prospects out a year to enable the company flexibility going forward during these challenging junior market conditions. Management is optimistic about the short and long term future of Brookemont and looks forward to an active summer."

Brookemont currently has the following projects: (a) quartz mineral claims in the Yukon bordering Underworld, which was recently taken over by Kinross Gold Corporation and directly above the Coffee Discovery from Kaminak; (b) land in North Eastern Quebec prospective for REE's in close proximity to the Eldor REE prospect of Commerce Resources; (c) 63 square kilometres of land in Tanzania bordering Canaco Resources; and (d) approximately 16,500 contiguous acres prospective for aluminous clay/ rare earths in the Gaspe Bay Region of Quebec bordering Orbite Aluminae Inc.'s Grand-Vallée Deposit.

If you would like to be added to Brookemont's news distribution list, please send your email address to info@brookemontcapital.com

Conrad Clemiss, President, Director

Brookemont Capital Inc.

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