|
|
|---|
Showing posts with label US dollar collapse. Show all posts
Showing posts with label US dollar collapse. Show all posts
Friday, May 21, 2010
Germany to Euro Shorts: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.” TNR.v, CZX.v, GBN.v, ASM.v, GRC.to,
0 comments Posted by andre at 5:11 AM
Nothing is for certain, but our reversal in USD is well under way. With US Debt close to 13 Trillion all Euro situation is just an aberration in the History of US Dollar Collapse. US budget deficit is projected for years ahead to stay above 1 Trillion dollars with Gross Federal Debt well over 70% of GDP assuming it at 14 trillion, can you even imaging in U.S. German rules:
"Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016."
On a weekly chart US Dollar is very close to finish this week with a very strong Bearish reversal candle.
Do not burn your Euros yet, US Dollar was appreciating on Europe worries, but the weaker Euro is exactly what Europe needs in Competition for Export to Emerging markets and China first of all.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
FT:
By Quentin Peel in Berlin
Published: May 20 2010 12:52 Last updated: May 21 2010 11:37
Germany’s lower house of parliament on Friday approved Berlin’s contribution to a €750bn stabilisation package for the eurozone.
After fraught talks with parties in the Bundestag on Thursday, it became clear that Angela Merkel, chancellor, would win a majority in favour of German credit guarantees of up to €150bn ($187bn, £130bn) from her centre-right coalition but fail to win cross-party support from the opposition Social Democrats and Greens.
The Bundestag passed the bill with 319 votes in favour, 73 against and 195 abstentions. The Bundesrat upper house is expected to pass the bill later on Friday.
Ms Merkel’s promises of tougher rules for the eurozone and action to curb speculation in the financial markets have been part of the price to win parliamentary support for the loan guarantees. A move to ban naked short-selling of eurozone debt was also seen in Berlin as a clear political gesture to win the parliamentary majority
On Thursday Ms Merkel stepped up pressure for a global agreement on tighter financial regulation, a banking tax or levy and a financial transaction tax, while spelling out the rules it wants members of the eurozone to adopt to curb their public debts and deficit spending.
George Osborne, UK chancellor, was separately expected to tell EU finance ministers in Brussels on Friday that Britain would resist attempts to improve economic governance that require a change to the European Union treaty.
The new UK government is committed to a referendum on any treaty that transfers new powers to Brussels. Mr Osborne has said he will oppose suggestions that he should show his Budget to the European Commission before presenting it to parliament.
Thomas De Maizière, Germany’s interior minister, said Berlin would increasingly seek to defend its own interest in the EU while shedding its role as passive paymaster. “Germany is going to act just as other European countries do in Brussels and this will not make it automatically anti-European,” he said.
Wolfgang Schäuble, finance minister, published a nine-point programme of proposals for more rigorous policing of the budgetary policies of eurozone members, including a proposal to draw up a procedure for “orderly state insolvencies” for countries that cannot service their debts.
Other points in his plan, to be presented on Friday at the first meeting of a task force in Brussels charged with rewriting the rules of the common currency area, include stripping countries of their votes if they persistently break stability and growth pact limits on deficit spending, and cutting them off from regional investment funds.
Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016.
Ms Merkel and Mr Schäuble are adamant that more action must be taken at the level of both the EU and the Group of 20 economies to regulate financial markets, in addition to adopting much more rigorous budget controls within the EU.
Ms Merkel called on financial institutions to give “honest advice” about how their activities should be regulated, warning they would face political measures to regulate the markets whatever happened.
Mr Schäuble appeared more sceptical. Challenged to defend Germany’s ban on naked short selling in light of the hostile reaction in the markets, the minister said: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.”
Additional reporting by Joshua Chaffin in Berlin and George Parker in London
Published: May 20 2010 12:52 Last updated: May 21 2010 11:37
Germany’s lower house of parliament on Friday approved Berlin’s contribution to a €750bn stabilisation package for the eurozone.
After fraught talks with parties in the Bundestag on Thursday, it became clear that Angela Merkel, chancellor, would win a majority in favour of German credit guarantees of up to €150bn ($187bn, £130bn) from her centre-right coalition but fail to win cross-party support from the opposition Social Democrats and Greens.
The Bundestag passed the bill with 319 votes in favour, 73 against and 195 abstentions. The Bundesrat upper house is expected to pass the bill later on Friday.
Ms Merkel’s promises of tougher rules for the eurozone and action to curb speculation in the financial markets have been part of the price to win parliamentary support for the loan guarantees. A move to ban naked short-selling of eurozone debt was also seen in Berlin as a clear political gesture to win the parliamentary majority
On Thursday Ms Merkel stepped up pressure for a global agreement on tighter financial regulation, a banking tax or levy and a financial transaction tax, while spelling out the rules it wants members of the eurozone to adopt to curb their public debts and deficit spending.
George Osborne, UK chancellor, was separately expected to tell EU finance ministers in Brussels on Friday that Britain would resist attempts to improve economic governance that require a change to the European Union treaty.
The new UK government is committed to a referendum on any treaty that transfers new powers to Brussels. Mr Osborne has said he will oppose suggestions that he should show his Budget to the European Commission before presenting it to parliament.
Thomas De Maizière, Germany’s interior minister, said Berlin would increasingly seek to defend its own interest in the EU while shedding its role as passive paymaster. “Germany is going to act just as other European countries do in Brussels and this will not make it automatically anti-European,” he said.
Wolfgang Schäuble, finance minister, published a nine-point programme of proposals for more rigorous policing of the budgetary policies of eurozone members, including a proposal to draw up a procedure for “orderly state insolvencies” for countries that cannot service their debts.
Other points in his plan, to be presented on Friday at the first meeting of a task force in Brussels charged with rewriting the rules of the common currency area, include stripping countries of their votes if they persistently break stability and growth pact limits on deficit spending, and cutting them off from regional investment funds.
Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016.
Ms Merkel and Mr Schäuble are adamant that more action must be taken at the level of both the EU and the Group of 20 economies to regulate financial markets, in addition to adopting much more rigorous budget controls within the EU.
Ms Merkel called on financial institutions to give “honest advice” about how their activities should be regulated, warning they would face political measures to regulate the markets whatever happened.
Mr Schäuble appeared more sceptical. Challenged to defend Germany’s ban on naked short selling in light of the hostile reaction in the markets, the minister said: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.”
Additional reporting by Joshua Chaffin in Berlin and George Parker in London
Germany to Euro Shorts: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.” TNR.v, CZX.v, GBN.v, ASM.v, GRC.to,
0 comments Posted by andre at 5:11 AM
Nothing is for certain, but our reversal in USD is well under way. With US Debt close to 13 Trillion all Euro situation is just an aberration in the History of US Dollar Collapse. US budget deficit is projected for years ahead to stay above 1 Trillion dollars with Gross Federal Debt well over 70% of GDP assuming it at 14 trillion, can you even imaging in U.S. German rules:
"Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016."
On a weekly chart US Dollar is very close to finish this week with a very strong Bearish reversal candle.
Do not burn your Euros yet, US Dollar was appreciating on Europe worries, but the weaker Euro is exactly what Europe needs in Competition for Export to Emerging markets and China first of all.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
FT:
By Quentin Peel in Berlin
Published: May 20 2010 12:52 Last updated: May 21 2010 11:37
Germany’s lower house of parliament on Friday approved Berlin’s contribution to a €750bn stabilisation package for the eurozone.
After fraught talks with parties in the Bundestag on Thursday, it became clear that Angela Merkel, chancellor, would win a majority in favour of German credit guarantees of up to €150bn ($187bn, £130bn) from her centre-right coalition but fail to win cross-party support from the opposition Social Democrats and Greens.
The Bundestag passed the bill with 319 votes in favour, 73 against and 195 abstentions. The Bundesrat upper house is expected to pass the bill later on Friday.
Ms Merkel’s promises of tougher rules for the eurozone and action to curb speculation in the financial markets have been part of the price to win parliamentary support for the loan guarantees. A move to ban naked short-selling of eurozone debt was also seen in Berlin as a clear political gesture to win the parliamentary majority
On Thursday Ms Merkel stepped up pressure for a global agreement on tighter financial regulation, a banking tax or levy and a financial transaction tax, while spelling out the rules it wants members of the eurozone to adopt to curb their public debts and deficit spending.
George Osborne, UK chancellor, was separately expected to tell EU finance ministers in Brussels on Friday that Britain would resist attempts to improve economic governance that require a change to the European Union treaty.
The new UK government is committed to a referendum on any treaty that transfers new powers to Brussels. Mr Osborne has said he will oppose suggestions that he should show his Budget to the European Commission before presenting it to parliament.
Thomas De Maizière, Germany’s interior minister, said Berlin would increasingly seek to defend its own interest in the EU while shedding its role as passive paymaster. “Germany is going to act just as other European countries do in Brussels and this will not make it automatically anti-European,” he said.
Wolfgang Schäuble, finance minister, published a nine-point programme of proposals for more rigorous policing of the budgetary policies of eurozone members, including a proposal to draw up a procedure for “orderly state insolvencies” for countries that cannot service their debts.
Other points in his plan, to be presented on Friday at the first meeting of a task force in Brussels charged with rewriting the rules of the common currency area, include stripping countries of their votes if they persistently break stability and growth pact limits on deficit spending, and cutting them off from regional investment funds.
Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016.
Ms Merkel and Mr Schäuble are adamant that more action must be taken at the level of both the EU and the Group of 20 economies to regulate financial markets, in addition to adopting much more rigorous budget controls within the EU.
Ms Merkel called on financial institutions to give “honest advice” about how their activities should be regulated, warning they would face political measures to regulate the markets whatever happened.
Mr Schäuble appeared more sceptical. Challenged to defend Germany’s ban on naked short selling in light of the hostile reaction in the markets, the minister said: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.”
Additional reporting by Joshua Chaffin in Berlin and George Parker in London
Published: May 20 2010 12:52 Last updated: May 21 2010 11:37
Germany’s lower house of parliament on Friday approved Berlin’s contribution to a €750bn stabilisation package for the eurozone.
After fraught talks with parties in the Bundestag on Thursday, it became clear that Angela Merkel, chancellor, would win a majority in favour of German credit guarantees of up to €150bn ($187bn, £130bn) from her centre-right coalition but fail to win cross-party support from the opposition Social Democrats and Greens.
The Bundestag passed the bill with 319 votes in favour, 73 against and 195 abstentions. The Bundesrat upper house is expected to pass the bill later on Friday.
Ms Merkel’s promises of tougher rules for the eurozone and action to curb speculation in the financial markets have been part of the price to win parliamentary support for the loan guarantees. A move to ban naked short-selling of eurozone debt was also seen in Berlin as a clear political gesture to win the parliamentary majority
On Thursday Ms Merkel stepped up pressure for a global agreement on tighter financial regulation, a banking tax or levy and a financial transaction tax, while spelling out the rules it wants members of the eurozone to adopt to curb their public debts and deficit spending.
George Osborne, UK chancellor, was separately expected to tell EU finance ministers in Brussels on Friday that Britain would resist attempts to improve economic governance that require a change to the European Union treaty.
The new UK government is committed to a referendum on any treaty that transfers new powers to Brussels. Mr Osborne has said he will oppose suggestions that he should show his Budget to the European Commission before presenting it to parliament.
Thomas De Maizière, Germany’s interior minister, said Berlin would increasingly seek to defend its own interest in the EU while shedding its role as passive paymaster. “Germany is going to act just as other European countries do in Brussels and this will not make it automatically anti-European,” he said.
Wolfgang Schäuble, finance minister, published a nine-point programme of proposals for more rigorous policing of the budgetary policies of eurozone members, including a proposal to draw up a procedure for “orderly state insolvencies” for countries that cannot service their debts.
Other points in his plan, to be presented on Friday at the first meeting of a task force in Brussels charged with rewriting the rules of the common currency area, include stripping countries of their votes if they persistently break stability and growth pact limits on deficit spending, and cutting them off from regional investment funds.
Mr Schäuble also wants the other 15 members of the common currency to adopt a similar national law to the German debt guillotine, a law enshrined in the German constitution committing the government to a balanced budget, with a maximum structural budget deficit of just 0.35 per cent of GDP by 2016.
Ms Merkel and Mr Schäuble are adamant that more action must be taken at the level of both the EU and the Group of 20 economies to regulate financial markets, in addition to adopting much more rigorous budget controls within the EU.
Ms Merkel called on financial institutions to give “honest advice” about how their activities should be regulated, warning they would face political measures to regulate the markets whatever happened.
Mr Schäuble appeared more sceptical. Challenged to defend Germany’s ban on naked short selling in light of the hostile reaction in the markets, the minister said: “If you want to drain a swamp, you don’t ask the frogs for an objective assessment.”
Additional reporting by Joshua Chaffin in Berlin and George Parker in London
Monday, May 17, 2010
US Dollar Collapse: Potential Reversal GDX, HUI, XAU, FXI, TNR.v, CZX.v, GRC.to, GBN.v, EPZ.v, ASM.v, CUU.v, CPG.v, RM.v, LMR.v, GDX, GDL, SLV
0 comments Posted by andre at 3:31 PMCorporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
The real drama is here above, It is Long Treasuries daily chart and it looks nervous, nobody even talks here about cuts, fiscal discipline and austerity measures. Once Europe is engaged in QE and ECB starts buying sovereign bonds from banks, attention will come back home. Recent spike in prices can be very short lived in a big picture frame.
Nothing is for certain in these days, but that candle on the chart above can mean reversal and that Green Buck Party is over. Less bad in the end is still bad. Market is ready to forget the Greece and remember California. With all investment banks discounting euro and providing parity forecast, counter rally can be very sharp. Euro below 1.2 means Europe disintegration, there are means to prevent it and intervention is already in the cards.
On the weekly chart US Dollar looks tired as well and with intervention in Japan and Europe reversal can easily tip the scales - remember in the end it is game to debase all FIAT currencies.
"It was second Deflationary Test with sudden drop in liquidity this time driven by sovereign debt crisis. Call it Run On The Bank among Big Guys. Fifteen minutes made no mistake about the state of the market and economy in deflationary environment - we have seen the future and it is ugly. Deflation spiral means death of financial market by thousand cuts - financial system is insolvent and the only way to run it is to keep liquidity high enough that nobody is testing it to deliver. QE will provide flood of money, debt will be rolled over and by destroying the value of FIAT currencies Debt will be Inflated out in the end. This time it is different - it is not only our theory, but confirmed market action. This time the most important here is that Gold was at almost all time high at the moment of test, Gold was moving up against all currencies and this time in a sharp contrast to the events of 2008 it was sharply up and over 1200 on the day of Market Crash. This new round of QE (when Europe has not even started!) will be going already from this very high base in Gold value and rising Inflation in Commodity and Growth driven economies. We will not go into the debt issue today in details and will only point out that it is a notch under 13 Trillion and in dangerously close proximity to 100% of GDP of U.S.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?"
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?"
US Dollar Collapse: Potential Reversal GDX, HUI, XAU, FXI, TNR.v, CZX.v, GRC.to, GBN.v, EPZ.v, ASM.v, CUU.v, CPG.v, RM.v, LMR.v, GDX, GDL, SLV
0 comments Posted by andre at 3:31 PMCorporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
The real drama is here above, It is Long Treasuries daily chart and it looks nervous, nobody even talks here about cuts, fiscal discipline and austerity measures. Once Europe is engaged in QE and ECB starts buying sovereign bonds from banks, attention will come back home. Recent spike in prices can be very short lived in a big picture frame.
Nothing is for certain in these days, but that candle on the chart above can mean reversal and that Green Buck Party is over. Less bad in the end is still bad. Market is ready to forget the Greece and remember California. With all investment banks discounting euro and providing parity forecast, counter rally can be very sharp. Euro below 1.2 means Europe disintegration, there are means to prevent it and intervention is already in the cards.
On the weekly chart US Dollar looks tired as well and with intervention in Japan and Europe reversal can easily tip the scales - remember in the end it is game to debase all FIAT currencies.
"It was second Deflationary Test with sudden drop in liquidity this time driven by sovereign debt crisis. Call it Run On The Bank among Big Guys. Fifteen minutes made no mistake about the state of the market and economy in deflationary environment - we have seen the future and it is ugly. Deflation spiral means death of financial market by thousand cuts - financial system is insolvent and the only way to run it is to keep liquidity high enough that nobody is testing it to deliver. QE will provide flood of money, debt will be rolled over and by destroying the value of FIAT currencies Debt will be Inflated out in the end. This time it is different - it is not only our theory, but confirmed market action. This time the most important here is that Gold was at almost all time high at the moment of test, Gold was moving up against all currencies and this time in a sharp contrast to the events of 2008 it was sharply up and over 1200 on the day of Market Crash. This new round of QE (when Europe has not even started!) will be going already from this very high base in Gold value and rising Inflation in Commodity and Growth driven economies. We will not go into the debt issue today in details and will only point out that it is a notch under 13 Trillion and in dangerously close proximity to 100% of GDP of U.S.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?"
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?"
Gold in South America: Cornerstone Reports Significant Progress on Ecuador Permits CGP.v, AUY, NEM, ABX, TNR.v, BVN, HUI, XAU, GDX, FCX, GG, MAI.to,
0 comments Posted by andre at 5:20 AM
Related News
Cornerstone and Newmont Propose to Form a Strategic Exploration Alliance in Southern Ecuador
Primary TargetGoldLocationThe Macara concessions is approximately 75 km2 located near the Ecuador-Peru border. The Strategic Alliance area of influence encompasses approximately 2000 km2.Property InformationThe property hosts gold bearing quartz-tourmaline veins and breccias associated with an intrusive body. Recent work by Sierramin has returned assay values from channel samples up to 23.8 g/t Au over 1.0 m and 7.3 g/t Au over 1.8 m. Chip samples collected during reconnaissance prospecting returned assays of 13.0 g/t Au over 2.0 m (incl. 44.2 g/t Au over 0.5 m) and 8.3 g/t Au over 0.65 m from sulphide bearing quartz veins within shear zones cutting granites.
Primary TargetGoldLocationThe Macara concessions is approximately 75 km2 located near the Ecuador-Peru border. The Strategic Alliance area of influence encompasses approximately 2000 km2.Property InformationThe property hosts gold bearing quartz-tourmaline veins and breccias associated with an intrusive body. Recent work by Sierramin has returned assay values from channel samples up to 23.8 g/t Au over 1.0 m and 7.3 g/t Au over 1.8 m. Chip samples collected during reconnaissance prospecting returned assays of 13.0 g/t Au over 2.0 m (incl. 44.2 g/t Au over 0.5 m) and 8.3 g/t Au over 0.65 m from sulphide bearing quartz veins within shear zones cutting granites.
Press Release Source: Cornerstone Capital Resources Inc. On Monday May 17, 2010, 8:00 am
MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 17, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) reports that it has been issued a number of key permits needed to re-start exploration activities in Ecuador. During the first two weeks of May, Cornerstone received new titles under the January 2009 mining law to 13 of its mineral concessions including the 10 Shyri properties under option to Intrepid Mines Ltd. (see news release October 29, 2009).
Also issued by the Ecuador Ministry of Environment during this period were the approval of the Environmental Management Plan for the Gama property, part of the Shyri project, and a water permit for drilling at Gama. Cornerstone representatives are meeting with the regulators this week to determine any final steps required to initiate exploration work and will provide updates of further developments. While the permitting process has been a lengthy one under an array of new laws and regulations in Ecuador, the company is encouraged that it is progressing within the current legal framework and expects to have its final permissions in the near future.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please see contact information.
Cautionary Notice:
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Colin B. McKenzie, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 17, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) reports that it has been issued a number of key permits needed to re-start exploration activities in Ecuador. During the first two weeks of May, Cornerstone received new titles under the January 2009 mining law to 13 of its mineral concessions including the 10 Shyri properties under option to Intrepid Mines Ltd. (see news release October 29, 2009).
Also issued by the Ecuador Ministry of Environment during this period were the approval of the Environmental Management Plan for the Gama property, part of the Shyri project, and a water permit for drilling at Gama. Cornerstone representatives are meeting with the regulators this week to determine any final steps required to initiate exploration work and will provide updates of further developments. While the permitting process has been a lengthy one under an array of new laws and regulations in Ecuador, the company is encouraged that it is progressing within the current legal framework and expects to have its final permissions in the near future.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please see contact information.
Cautionary Notice:
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Colin B. McKenzie, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Gold in South America: Cornerstone Reports Significant Progress on Ecuador Permits CGP.v, AUY, NEM, ABX, TNR.v, BVN, HUI, XAU, GDX, FCX, GG, MAI.to,
0 comments Posted by andre at 5:20 AM
Related News
Cornerstone and Newmont Propose to Form a Strategic Exploration Alliance in Southern Ecuador
Primary TargetGoldLocationThe Macara concessions is approximately 75 km2 located near the Ecuador-Peru border. The Strategic Alliance area of influence encompasses approximately 2000 km2.Property InformationThe property hosts gold bearing quartz-tourmaline veins and breccias associated with an intrusive body. Recent work by Sierramin has returned assay values from channel samples up to 23.8 g/t Au over 1.0 m and 7.3 g/t Au over 1.8 m. Chip samples collected during reconnaissance prospecting returned assays of 13.0 g/t Au over 2.0 m (incl. 44.2 g/t Au over 0.5 m) and 8.3 g/t Au over 0.65 m from sulphide bearing quartz veins within shear zones cutting granites.
Primary TargetGoldLocationThe Macara concessions is approximately 75 km2 located near the Ecuador-Peru border. The Strategic Alliance area of influence encompasses approximately 2000 km2.Property InformationThe property hosts gold bearing quartz-tourmaline veins and breccias associated with an intrusive body. Recent work by Sierramin has returned assay values from channel samples up to 23.8 g/t Au over 1.0 m and 7.3 g/t Au over 1.8 m. Chip samples collected during reconnaissance prospecting returned assays of 13.0 g/t Au over 2.0 m (incl. 44.2 g/t Au over 0.5 m) and 8.3 g/t Au over 0.65 m from sulphide bearing quartz veins within shear zones cutting granites.
Press Release Source: Cornerstone Capital Resources Inc. On Monday May 17, 2010, 8:00 am
MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 17, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) reports that it has been issued a number of key permits needed to re-start exploration activities in Ecuador. During the first two weeks of May, Cornerstone received new titles under the January 2009 mining law to 13 of its mineral concessions including the 10 Shyri properties under option to Intrepid Mines Ltd. (see news release October 29, 2009).
Also issued by the Ecuador Ministry of Environment during this period were the approval of the Environmental Management Plan for the Gama property, part of the Shyri project, and a water permit for drilling at Gama. Cornerstone representatives are meeting with the regulators this week to determine any final steps required to initiate exploration work and will provide updates of further developments. While the permitting process has been a lengthy one under an array of new laws and regulations in Ecuador, the company is encouraged that it is progressing within the current legal framework and expects to have its final permissions in the near future.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please see contact information.
Cautionary Notice:
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Colin B. McKenzie, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
MOUNT PEARL, NEWFOUNDLAND--(Marketwire - May 17, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) reports that it has been issued a number of key permits needed to re-start exploration activities in Ecuador. During the first two weeks of May, Cornerstone received new titles under the January 2009 mining law to 13 of its mineral concessions including the 10 Shyri properties under option to Intrepid Mines Ltd. (see news release October 29, 2009).
Also issued by the Ecuador Ministry of Environment during this period were the approval of the Environmental Management Plan for the Gama property, part of the Shyri project, and a water permit for drilling at Gama. Cornerstone representatives are meeting with the regulators this week to determine any final steps required to initiate exploration work and will provide updates of further developments. While the permitting process has been a lengthy one under an array of new laws and regulations in Ecuador, the company is encouraged that it is progressing within the current legal framework and expects to have its final permissions in the near future.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please see contact information.
Cautionary Notice:
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Colin B. McKenzie, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Friday, May 14, 2010
Gold in Africa: Sunridge Gold and Antofagasta Minerals Exploration Joint-Venture Update, Asmara Project, Eritrea SGC.v, NGQ.to, NSU.to, LUN.to,
0 comments Posted by andre at 4:29 AM
Company is putting another project under drill in its J/V with Antofagasta. Results from Daero Paulos drilling are disappointing so far. Asmara project is the most promising asset of the company now and recent development by Nevsun Resources with commissioning of mining equipment for mine in Eritrea will bring some tail wind with the exploration news.
Sunridge Gold Corp. (SGC-TSX-V) is a junior company that has successfully defined four independently estimated 43-101 mineral deposits on the Asmara Project, Eritrea in East Africa. A positive scoping study on the large Emba Derho copper-zinc-gold deposit was completed in June 2009.The four deposits have total indicated 43-101-resources containing:
1.28 billion pounds. of copper,
2.5 billion pounds of zinc,
1.05 million ounces of gold, and
31.2 million ounces of silver Sunridge recently entered into a strategic partnership with Antofagasta Minerals S.A. whereby Antofagasta has agreed to fund US $10,000,000.in exploration work on areas of the Asmara Project and has become the Company's largest shareholder through a US $5.0 million private placement.
Management: Sunridge is managed by an experienced team with a successful track record of discovery and development of precious and base metals projects with companies such as Bema Gold and Nevsun Resources.
1.28 billion pounds. of copper,
2.5 billion pounds of zinc,
1.05 million ounces of gold, and
31.2 million ounces of silver Sunridge recently entered into a strategic partnership with Antofagasta Minerals S.A. whereby Antofagasta has agreed to fund US $10,000,000.in exploration work on areas of the Asmara Project and has become the Company's largest shareholder through a US $5.0 million private placement.
Management: Sunridge is managed by an experienced team with a successful track record of discovery and development of precious and base metals projects with companies such as Bema Gold and Nevsun Resources.
Press Release Source: Sunridge Gold Corp. On Wednesday May 12, 2010, 8:30 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/12/10) - Sunridge Gold Corp. ("Sunridge") (TSX-V:SGC - News) is pleased to announce that Sunridge and Antofagasta Minerals S.A. have commenced a new drilling program at the Adi Rassi copper-gold prospect within the Asmara Project, Eritrea, which is within the Exploration Areas and part of the joint-venture exploration funding agreement with Antofagasta Minerals announced October 2, 2009. The Adi Rassi copper/gold prospect is located about 8 kilometers southeast of the company's Debarwa high-grade copper/gold VMS deposit. The program will consist of at least four holes totaling 1,200 meters of diamond drilling.
The copper and gold mineralization at the Adi Rassi prospect is associated with quartz veins and breccia zones along a major shear zone that trends northeast and dips steeply to the west. This mineralization is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows. Alteration associated with copper mineralization can be seen at surface in a zone that measures about 80 meters wide along a strike length of approximately 500 meters.
From 1971 to 1974 the prospect was evaluated by the Ethio-Nippon Mining Company and a drill program of 11 diamond drill holes comprising 2,170 meters of core were completed over a 550 meters of strike length. The best results from this historic drilling were 41.3 meters of 1.77% Copper (DDH EN-7) and 33.6 meters of 1.5% copper (DDH EN-4).
Note: The above drill results are taken from the report "Adi Rassi Copper Prospect - Ore Resources Evaluation" by D.J. Toogood, December 1997, Phelps Dodge Exploration Corp. While the above historical data appears to be complete and the procedures followed appear reliable, Sunridge has not completed the work necessary to verify the reported results.
DAERO PAULOS DRILLING:
All results have recently been received from the drilling of the large Daero Paulos copper target also part of the Antofagasta joint-venture exploration funding agreement. Twelve widely spaced diamond drill holes were drilled over an area of surface alteration measuring approximately 500 meters wide and 2.5 kilometers long. The program returned only a few narrow zones of mineralization.
REGIONAL TARGET GENERATION
In addition to the above drilling programs a regional target generation program is underway covering all parts of the Exploration Areas as defined in the joint-venture exploration funding agreement with Antofagasta. Stream geochemical sampling, satellite imagery analysis and local geological mapping are the main tools being used and it is hoped that this work will result in the generation of new drill targets over the next few weeks.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
Sunridge has approximately 76 million shares outstanding and approximately $5.5 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at http://www.sunridgegold.com/ or call Don Halliday or Greg Davis at the numbers listed below.
NOTES:
1. A Quality Assurance/Quality Control program was part of the samplingprogram on the Daero Paulos copper prospect. This program includes chainof custody protocols as well as systematic submittals of standards,duplicates and blank samples into the flow of samples produced by thesampling.2. Samples were prepared at African Horn Testing Services (Eritrea) andanalyzed at Genalysis Laboratories (a NATA registered laboratory) inPerth, Western Australia.3. The results of the Daero Paulos copper prospect drill program have beenreviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr.Hopley is also the person responsible for preparation of the technicalinformation contained in this news release and is President and ChiefExecutive Officer of Sunridge.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer"
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/12/10) - Sunridge Gold Corp. ("Sunridge") (TSX-V:SGC - News) is pleased to announce that Sunridge and Antofagasta Minerals S.A. have commenced a new drilling program at the Adi Rassi copper-gold prospect within the Asmara Project, Eritrea, which is within the Exploration Areas and part of the joint-venture exploration funding agreement with Antofagasta Minerals announced October 2, 2009. The Adi Rassi copper/gold prospect is located about 8 kilometers southeast of the company's Debarwa high-grade copper/gold VMS deposit. The program will consist of at least four holes totaling 1,200 meters of diamond drilling.
The copper and gold mineralization at the Adi Rassi prospect is associated with quartz veins and breccia zones along a major shear zone that trends northeast and dips steeply to the west. This mineralization is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows. Alteration associated with copper mineralization can be seen at surface in a zone that measures about 80 meters wide along a strike length of approximately 500 meters.
From 1971 to 1974 the prospect was evaluated by the Ethio-Nippon Mining Company and a drill program of 11 diamond drill holes comprising 2,170 meters of core were completed over a 550 meters of strike length. The best results from this historic drilling were 41.3 meters of 1.77% Copper (DDH EN-7) and 33.6 meters of 1.5% copper (DDH EN-4).
Note: The above drill results are taken from the report "Adi Rassi Copper Prospect - Ore Resources Evaluation" by D.J. Toogood, December 1997, Phelps Dodge Exploration Corp. While the above historical data appears to be complete and the procedures followed appear reliable, Sunridge has not completed the work necessary to verify the reported results.
DAERO PAULOS DRILLING:
All results have recently been received from the drilling of the large Daero Paulos copper target also part of the Antofagasta joint-venture exploration funding agreement. Twelve widely spaced diamond drill holes were drilled over an area of surface alteration measuring approximately 500 meters wide and 2.5 kilometers long. The program returned only a few narrow zones of mineralization.
REGIONAL TARGET GENERATION
In addition to the above drilling programs a regional target generation program is underway covering all parts of the Exploration Areas as defined in the joint-venture exploration funding agreement with Antofagasta. Stream geochemical sampling, satellite imagery analysis and local geological mapping are the main tools being used and it is hoped that this work will result in the generation of new drill targets over the next few weeks.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
Sunridge has approximately 76 million shares outstanding and approximately $5.5 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at http://www.sunridgegold.com/ or call Don Halliday or Greg Davis at the numbers listed below.
NOTES:
1. A Quality Assurance/Quality Control program was part of the samplingprogram on the Daero Paulos copper prospect. This program includes chainof custody protocols as well as systematic submittals of standards,duplicates and blank samples into the flow of samples produced by thesampling.2. Samples were prepared at African Horn Testing Services (Eritrea) andanalyzed at Genalysis Laboratories (a NATA registered laboratory) inPerth, Western Australia.3. The results of the Daero Paulos copper prospect drill program have beenreviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr.Hopley is also the person responsible for preparation of the technicalinformation contained in this news release and is President and ChiefExecutive Officer of Sunridge.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer"
Gold in Africa: Sunridge Gold and Antofagasta Minerals Exploration Joint-Venture Update, Asmara Project, Eritrea SGC.v, NGQ.to, NSU.to, LUN.to,
0 comments Posted by andre at 4:29 AM
Company is putting another project under drill in its J/V with Antofagasta. Results from Daero Paulos drilling are disappointing so far. Asmara project is the most promising asset of the company now and recent development by Nevsun Resources with commissioning of mining equipment for mine in Eritrea will bring some tail wind with the exploration news.
Sunridge Gold Corp. (SGC-TSX-V) is a junior company that has successfully defined four independently estimated 43-101 mineral deposits on the Asmara Project, Eritrea in East Africa. A positive scoping study on the large Emba Derho copper-zinc-gold deposit was completed in June 2009.The four deposits have total indicated 43-101-resources containing:
1.28 billion pounds. of copper,
2.5 billion pounds of zinc,
1.05 million ounces of gold, and
31.2 million ounces of silver Sunridge recently entered into a strategic partnership with Antofagasta Minerals S.A. whereby Antofagasta has agreed to fund US $10,000,000.in exploration work on areas of the Asmara Project and has become the Company's largest shareholder through a US $5.0 million private placement.
Management: Sunridge is managed by an experienced team with a successful track record of discovery and development of precious and base metals projects with companies such as Bema Gold and Nevsun Resources.
1.28 billion pounds. of copper,
2.5 billion pounds of zinc,
1.05 million ounces of gold, and
31.2 million ounces of silver Sunridge recently entered into a strategic partnership with Antofagasta Minerals S.A. whereby Antofagasta has agreed to fund US $10,000,000.in exploration work on areas of the Asmara Project and has become the Company's largest shareholder through a US $5.0 million private placement.
Management: Sunridge is managed by an experienced team with a successful track record of discovery and development of precious and base metals projects with companies such as Bema Gold and Nevsun Resources.
Press Release Source: Sunridge Gold Corp. On Wednesday May 12, 2010, 8:30 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/12/10) - Sunridge Gold Corp. ("Sunridge") (TSX-V:SGC - News) is pleased to announce that Sunridge and Antofagasta Minerals S.A. have commenced a new drilling program at the Adi Rassi copper-gold prospect within the Asmara Project, Eritrea, which is within the Exploration Areas and part of the joint-venture exploration funding agreement with Antofagasta Minerals announced October 2, 2009. The Adi Rassi copper/gold prospect is located about 8 kilometers southeast of the company's Debarwa high-grade copper/gold VMS deposit. The program will consist of at least four holes totaling 1,200 meters of diamond drilling.
The copper and gold mineralization at the Adi Rassi prospect is associated with quartz veins and breccia zones along a major shear zone that trends northeast and dips steeply to the west. This mineralization is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows. Alteration associated with copper mineralization can be seen at surface in a zone that measures about 80 meters wide along a strike length of approximately 500 meters.
From 1971 to 1974 the prospect was evaluated by the Ethio-Nippon Mining Company and a drill program of 11 diamond drill holes comprising 2,170 meters of core were completed over a 550 meters of strike length. The best results from this historic drilling were 41.3 meters of 1.77% Copper (DDH EN-7) and 33.6 meters of 1.5% copper (DDH EN-4).
Note: The above drill results are taken from the report "Adi Rassi Copper Prospect - Ore Resources Evaluation" by D.J. Toogood, December 1997, Phelps Dodge Exploration Corp. While the above historical data appears to be complete and the procedures followed appear reliable, Sunridge has not completed the work necessary to verify the reported results.
DAERO PAULOS DRILLING:
All results have recently been received from the drilling of the large Daero Paulos copper target also part of the Antofagasta joint-venture exploration funding agreement. Twelve widely spaced diamond drill holes were drilled over an area of surface alteration measuring approximately 500 meters wide and 2.5 kilometers long. The program returned only a few narrow zones of mineralization.
REGIONAL TARGET GENERATION
In addition to the above drilling programs a regional target generation program is underway covering all parts of the Exploration Areas as defined in the joint-venture exploration funding agreement with Antofagasta. Stream geochemical sampling, satellite imagery analysis and local geological mapping are the main tools being used and it is hoped that this work will result in the generation of new drill targets over the next few weeks.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
Sunridge has approximately 76 million shares outstanding and approximately $5.5 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at http://www.sunridgegold.com/ or call Don Halliday or Greg Davis at the numbers listed below.
NOTES:
1. A Quality Assurance/Quality Control program was part of the samplingprogram on the Daero Paulos copper prospect. This program includes chainof custody protocols as well as systematic submittals of standards,duplicates and blank samples into the flow of samples produced by thesampling.2. Samples were prepared at African Horn Testing Services (Eritrea) andanalyzed at Genalysis Laboratories (a NATA registered laboratory) inPerth, Western Australia.3. The results of the Daero Paulos copper prospect drill program have beenreviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr.Hopley is also the person responsible for preparation of the technicalinformation contained in this news release and is President and ChiefExecutive Officer of Sunridge.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer"
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/12/10) - Sunridge Gold Corp. ("Sunridge") (TSX-V:SGC - News) is pleased to announce that Sunridge and Antofagasta Minerals S.A. have commenced a new drilling program at the Adi Rassi copper-gold prospect within the Asmara Project, Eritrea, which is within the Exploration Areas and part of the joint-venture exploration funding agreement with Antofagasta Minerals announced October 2, 2009. The Adi Rassi copper/gold prospect is located about 8 kilometers southeast of the company's Debarwa high-grade copper/gold VMS deposit. The program will consist of at least four holes totaling 1,200 meters of diamond drilling.
The copper and gold mineralization at the Adi Rassi prospect is associated with quartz veins and breccia zones along a major shear zone that trends northeast and dips steeply to the west. This mineralization is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows. Alteration associated with copper mineralization can be seen at surface in a zone that measures about 80 meters wide along a strike length of approximately 500 meters.
From 1971 to 1974 the prospect was evaluated by the Ethio-Nippon Mining Company and a drill program of 11 diamond drill holes comprising 2,170 meters of core were completed over a 550 meters of strike length. The best results from this historic drilling were 41.3 meters of 1.77% Copper (DDH EN-7) and 33.6 meters of 1.5% copper (DDH EN-4).
Note: The above drill results are taken from the report "Adi Rassi Copper Prospect - Ore Resources Evaluation" by D.J. Toogood, December 1997, Phelps Dodge Exploration Corp. While the above historical data appears to be complete and the procedures followed appear reliable, Sunridge has not completed the work necessary to verify the reported results.
DAERO PAULOS DRILLING:
All results have recently been received from the drilling of the large Daero Paulos copper target also part of the Antofagasta joint-venture exploration funding agreement. Twelve widely spaced diamond drill holes were drilled over an area of surface alteration measuring approximately 500 meters wide and 2.5 kilometers long. The program returned only a few narrow zones of mineralization.
REGIONAL TARGET GENERATION
In addition to the above drilling programs a regional target generation program is underway covering all parts of the Exploration Areas as defined in the joint-venture exploration funding agreement with Antofagasta. Stream geochemical sampling, satellite imagery analysis and local geological mapping are the main tools being used and it is hoped that this work will result in the generation of new drill targets over the next few weeks.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
Sunridge has approximately 76 million shares outstanding and approximately $5.5 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at http://www.sunridgegold.com/ or call Don Halliday or Greg Davis at the numbers listed below.
NOTES:
1. A Quality Assurance/Quality Control program was part of the samplingprogram on the Daero Paulos copper prospect. This program includes chainof custody protocols as well as systematic submittals of standards,duplicates and blank samples into the flow of samples produced by thesampling.2. Samples were prepared at African Horn Testing Services (Eritrea) andanalyzed at Genalysis Laboratories (a NATA registered laboratory) inPerth, Western Australia.3. The results of the Daero Paulos copper prospect drill program have beenreviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr.Hopley is also the person responsible for preparation of the technicalinformation contained in this news release and is President and ChiefExecutive Officer of Sunridge.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer"
Tuesday, May 11, 2010
Gold is at All Time High 1232.80 USD/oz TNR.v, GRC.to, GBN.v, BBT.v, EPZ.v, KTN.v, CPG.v, MGN, ASM.v, GG, AUY, AEM, NEM, RGLD, ABX, GDX, SLV
0 comments Posted by andre at 1:35 PM
We will leave the situation on how technically stock like P&G could drop 50% in fifteen minutes to be investigated by the mass media, but will confirm here one more time: it was second Deflationary Test with sudden drop in liquidity this time driven by sovereign debt crisis. Call it Run On The Bank among Big Guys. (Next Bull Lithium: Crash of the Markets, Gold and the Price of Oil for Helicopters) Fifteen minutes made no mistake about the state of the market and economy in deflationary environment - we have seen the future and it is ugly. Deflation spiral means death of financial market by thousand cuts - financial system is insolvent and the only way to run it is to keep liquidity high enough that nobody is testing it to deliver. QE will provide flood of money, debt will be rolled over and by destroying the value of FIAT currencies Debt will be Inflated out in the end. This time it is different - it is not only our theory, but confirmed market action. This time the most important here is that Gold was at almost all time high at the moment of test, Gold was moving up against all currencies and this time in a sharp contrast to the events of 2008 it was sharply up and over 1200 on the day of Market Crash. This new round of QE (when Europe has not even started!) will be going already from this very high base in Gold value and rising Inflation in Commodity and Growth driven economies. We will not go into the debt issue today in details and will only point out that it is a notch under 13 Trillion and in dangerously close proximity to 100% of GDP of U.S.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
1. We are in a new Bull market territory with Gold moving up against all FIAT currencies.
2. Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
3. Expect shakeouts, but the direction in Gold market is clear: further Up - driven by run from all FIAT currencies, rising interest rates, generational Bear market in Treasuries, negative real rates and expansion in monetary base (QE) with inevitable by definition Inflation. And we have to pray for it - we do not know how to survive in Deflation Spiral should anybody made a crucial mistake.
4. First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well.
We are running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to deflation war scenario. It is time for Lithium to come into picture.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
1. We are in a new Bull market territory with Gold moving up against all FIAT currencies.
2. Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
3. Expect shakeouts, but the direction in Gold market is clear: further Up - driven by run from all FIAT currencies, rising interest rates, generational Bear market in Treasuries, negative real rates and expansion in monetary base (QE) with inevitable by definition Inflation. And we have to pray for it - we do not know how to survive in Deflation Spiral should anybody made a crucial mistake.
4. First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well.
We are running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to deflation war scenario. It is time for Lithium to come into picture.
Gold is at All Time High 1232.80 USD/oz TNR.v, GRC.to, GBN.v, BBT.v, EPZ.v, KTN.v, CPG.v, MGN, ASM.v, GG, AUY, AEM, NEM, RGLD, ABX, GDX, SLV
0 comments Posted by andre at 1:35 PM
We will leave the situation on how technically stock like P&G could drop 50% in fifteen minutes to be investigated by the mass media, but will confirm here one more time: it was second Deflationary Test with sudden drop in liquidity this time driven by sovereign debt crisis. Call it Run On The Bank among Big Guys. (Next Bull Lithium: Crash of the Markets, Gold and the Price of Oil for Helicopters) Fifteen minutes made no mistake about the state of the market and economy in deflationary environment - we have seen the future and it is ugly. Deflation spiral means death of financial market by thousand cuts - financial system is insolvent and the only way to run it is to keep liquidity high enough that nobody is testing it to deliver. QE will provide flood of money, debt will be rolled over and by destroying the value of FIAT currencies Debt will be Inflated out in the end. This time it is different - it is not only our theory, but confirmed market action. This time the most important here is that Gold was at almost all time high at the moment of test, Gold was moving up against all currencies and this time in a sharp contrast to the events of 2008 it was sharply up and over 1200 on the day of Market Crash. This new round of QE (when Europe has not even started!) will be going already from this very high base in Gold value and rising Inflation in Commodity and Growth driven economies. We will not go into the debt issue today in details and will only point out that it is a notch under 13 Trillion and in dangerously close proximity to 100% of GDP of U.S.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
1. We are in a new Bull market territory with Gold moving up against all FIAT currencies.
2. Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
3. Expect shakeouts, but the direction in Gold market is clear: further Up - driven by run from all FIAT currencies, rising interest rates, generational Bear market in Treasuries, negative real rates and expansion in monetary base (QE) with inevitable by definition Inflation. And we have to pray for it - we do not know how to survive in Deflation Spiral should anybody made a crucial mistake.
4. First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well.
We are running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to deflation war scenario. It is time for Lithium to come into picture.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
1. We are in a new Bull market territory with Gold moving up against all FIAT currencies.
2. Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
3. Expect shakeouts, but the direction in Gold market is clear: further Up - driven by run from all FIAT currencies, rising interest rates, generational Bear market in Treasuries, negative real rates and expansion in monetary base (QE) with inevitable by definition Inflation. And we have to pray for it - we do not know how to survive in Deflation Spiral should anybody made a crucial mistake.
4. First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well.
We are running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to deflation war scenario. It is time for Lithium to come into picture.
Monday, May 10, 2010
Volta Reports Best Results to Date at Its Kiaka Gold Project - Intersects 134 Meters at 2.16 g/t Gold, Including 10.0 Meters at 7.43 g/t Gold VTR.v,
0 comments Posted by andre at 10:48 AMVolta Reports Best Results to Date at Its Kiaka Gold Project - Intersects 134 Meters at 2.16 g/t Gold, Including 10.0 Meters at 7.43 g/t Gold VTR.v,
0 comments Posted by andre at 10:48 AMSunday, May 9, 2010
WHOA: NYP Says Federal Agents Have Launched Civil And Criminal Probes Into JPMorgan For Silver Manipulation ASM.v, KTN.v, MGN, RVM.to, EPZ.v, SGC.v,
0 comments Posted by andre at 4:13 PM
We have a giant Bullish Cup and handle formation in Silver now, Gold move to the new high must be confirmed by new high in Silver.
"First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well."
SAI:
"WHOA: NYP Says Federal Agents Have Launched Civil And Criminal Probes Into JPMorgan For Silver Manipulation
Joe Weisenthal May. 9, 2010, 4:43 PM 2,920 19
See Also:
The New York Post has an explosive exclusive, if true:
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.
That JPMorgan (JPM) has somehow been involved in silver market manipulation has been the source of rumor and speculation for a long time.
Things really heated up on this front in March, when a whistleblower was due to speak in Congress about commodity market manipulation, but was scrubbed from the list at the last second. That sent of all kinds of red flags. The New York Post was on the story then too, citing an outspoken trader named Andrew Maguire who claimed that JPMorgan and HSBC were doing the Fed's work in ceaselessly selling silver (nakedly) on behalf of the Fed in order to keep prices down.
If today's report is true, it would clearly indicate that at least at the regulatory level (if not the political level, where any financial reform is bound to be toothless), there's been a major shift in attitude. Add this to the civil charges against Goldman Sachs (GS), and the Moody's (MCO) Wells notice, and you're starting to see a trend."
See Also:
The New York Post has an explosive exclusive, if true:
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.
That JPMorgan (JPM) has somehow been involved in silver market manipulation has been the source of rumor and speculation for a long time.
Things really heated up on this front in March, when a whistleblower was due to speak in Congress about commodity market manipulation, but was scrubbed from the list at the last second. That sent of all kinds of red flags. The New York Post was on the story then too, citing an outspoken trader named Andrew Maguire who claimed that JPMorgan and HSBC were doing the Fed's work in ceaselessly selling silver (nakedly) on behalf of the Fed in order to keep prices down.
If today's report is true, it would clearly indicate that at least at the regulatory level (if not the political level, where any financial reform is bound to be toothless), there's been a major shift in attitude. Add this to the civil charges against Goldman Sachs (GS), and the Moody's (MCO) Wells notice, and you're starting to see a trend."
WHOA: NYP Says Federal Agents Have Launched Civil And Criminal Probes Into JPMorgan For Silver Manipulation ASM.v, KTN.v, MGN, RVM.to, EPZ.v, SGC.v,
0 comments Posted by andre at 4:13 PM
We have a giant Bullish Cup and handle formation in Silver now, Gold move to the new high must be confirmed by new high in Silver.
"First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well."
SAI:
"WHOA: NYP Says Federal Agents Have Launched Civil And Criminal Probes Into JPMorgan For Silver Manipulation
Joe Weisenthal May. 9, 2010, 4:43 PM 2,920 19
See Also:
The New York Post has an explosive exclusive, if true:
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.
That JPMorgan (JPM) has somehow been involved in silver market manipulation has been the source of rumor and speculation for a long time.
Things really heated up on this front in March, when a whistleblower was due to speak in Congress about commodity market manipulation, but was scrubbed from the list at the last second. That sent of all kinds of red flags. The New York Post was on the story then too, citing an outspoken trader named Andrew Maguire who claimed that JPMorgan and HSBC were doing the Fed's work in ceaselessly selling silver (nakedly) on behalf of the Fed in order to keep prices down.
If today's report is true, it would clearly indicate that at least at the regulatory level (if not the political level, where any financial reform is bound to be toothless), there's been a major shift in attitude. Add this to the civil charges against Goldman Sachs (GS), and the Moody's (MCO) Wells notice, and you're starting to see a trend."
See Also:
The New York Post has an explosive exclusive, if true:
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.
That JPMorgan (JPM) has somehow been involved in silver market manipulation has been the source of rumor and speculation for a long time.
Things really heated up on this front in March, when a whistleblower was due to speak in Congress about commodity market manipulation, but was scrubbed from the list at the last second. That sent of all kinds of red flags. The New York Post was on the story then too, citing an outspoken trader named Andrew Maguire who claimed that JPMorgan and HSBC were doing the Fed's work in ceaselessly selling silver (nakedly) on behalf of the Fed in order to keep prices down.
If today's report is true, it would clearly indicate that at least at the regulatory level (if not the political level, where any financial reform is bound to be toothless), there's been a major shift in attitude. Add this to the civil charges against Goldman Sachs (GS), and the Moody's (MCO) Wells notice, and you're starting to see a trend."
EU Readies Emergency Fund Said to Be $645 Billion to Fight Off `Wolfpack' ABX, TNR.v, GG, AEM, AUY, GRC.to, EPZ.v, ASM.v, MGN, KTN.v, GBN.v, MAX.to,
0 comments Posted by andre at 3:37 PM
"Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members."
Bloomberg:
European Union finance ministers moved toward agreement on an unprecedented loan package worth at least $645 billion to prevent Greece’s fiscal woes from triggering a broader sovereign-debt crisis and shattering confidence in the euro.
EU Readies Emergency Fund Said to Be $645 Billion to Fight Off `Wolfpack' ABX, TNR.v, GG, AEM, AUY, GRC.to, EPZ.v, ASM.v, MGN, KTN.v, GBN.v, MAX.to,
0 comments Posted by andre at 3:37 PM
"Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members."
Bloomberg:
European Union finance ministers moved toward agreement on an unprecedented loan package worth at least $645 billion to prevent Greece’s fiscal woes from triggering a broader sovereign-debt crisis and shattering confidence in the euro.
Next Bull: Lithium - Crash of the Markets, Gold and price of Oil for Helicopters TNR.v, CZX.v, GRC.to, BVA.v, BVG.v, GBN.v, RM.v, LMR.v, WLC.v, CLQ.v
0 comments Posted by andre at 3:58 AM
.jpg)
Small print.
Some observations below are based on pure Science and some on solid Fiction, please be careful to draw any investment conclusions from some parts of the story. As a socially responsible citizens authors of this blog could benefit from your investment decisions regarding Ben Bernanke, Helicopters, Oil, Gold and Lithium.
CS. It is time for us to sharpen our pencil and put a few lines together about socio-economic events of this week which will have far reaching implications on our way of life. We will speculate on the real events behind the scene on a day of Cyber Meltdown: spectacular Dow Crash by the magnitude of 1000 point in fifteen minutes. We will develop a very strong argument in favour of Inflation and its cost based on PhD Thesis: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations. We will draw some lines on How Lithium, Gold and price of Oil are connected and what it means to be grounded. In the end we will leave you with the question: Where to invest - In Ben Bernanke, Ink Factory, Helicopters, Oil or Gold and Lithium?
Our memories from 2008 meltdown and the last deflation strike in March of last year are still too vivid for us to stay rational amid recent market panic of this week. Was it the fat finger, Cyber Meltdown or revenge of the Government Sachs, which was striped of its Olympus glamour is not so important - the most important message is the reaction of the Market itself and actions of the people in charge to follow.
We will even speculate that the real reason for Dow to crash 1000 points in fifteen minutes was subliminal classified message in the networks that helicopter commander Ben Bernanke have sent his helicopter squad to Europe. The squad was caught over Iceland in volcanic ash cloud and was grounded on deserted island and now all those precious billions of dollar bills are used in a camp fire to keep pilots warm. Messier Trichet from ECB has refused to send eurocopters stashed with cash and support the market operations on Thursday pointing to high oil prices and high price to be paid in the end of this kind of "open market" operations. He even went to length talking about austerity measures, economic reform, budget cuts and fiscal discipline. French connection with the Crash must be investigated further: first they took our wine lists, than mortgage based securities trading, what will be next? We will point only to the obvious: ECB head Jean-Claude Trichet the President of European Central Bank with his stubborn attitude to the Quantitative Easing. Next one will be Goldman Sachs Mr Fab himself - Fabrice Touree at the heart of the recent scandal. Have you noticed that this time Goldman Sachs were par excellence on transparency issues, it has avoided any double standards allegations and immediately released all emails of Mr Fab including his love letters and proper descriptions of all those variety of products sold to the sophisticated "widows and orphans" as they call our banks, stupid enough to buy that stuff. Buy the way they called these derivatives by a lot of misleading names for the clients in public documents, but in internal emails all use the same description and must be French word - S%&T. This twitter based letter combinations is raising the same emotions as the subject itself and we will allow ourselves to use it in this context, lacking the better alternative. This time Goldman Sachs was equally distant from its clients and employees - they were sacrificed immediately. In the end if The House does not give a S%&T about its clients, why attitude to employees should be different?
Here our part based on solid Fiction ends and we will move to pure Science.
As it is difficult to believe in the reasons behind the Thursday 1000 point Dow Crash we wrote above, we will make few observations based on real time market data. Market was trading down on Thursday from the opening with traders clued to the pictures from Greece violent Austerity Market Test, but they were sliding down in orderly fashion. At 14.00 sudden spike in Yen Dollar chart happen: Yen moved up and then all hell called Carry Trade has broken lose. Somebody big enough to get busted in a spectacular fashion was caught naked on Yen funding side. With rising Yen Rise of the Machines began: algorithmically driven buy orders start to protect from Yen run away, snow ball has driven Yen above USD by total 5% percent at one point. Please keep in mind that another Carry Trade funded in USD moved up against all other currencies as well: Euro and Pound were not spared, Hung Parliament in UK helped ignite the run on pound again. After Yen move within half an hour Dow started to crash: our take is that with running up Yen and following USD margin calls kicked in and selling began in most liquid stocks in Dow. Run away in Yen was stoped by Japanese Central Bank intervention to the magnitude of 2 trillion Yen. Dow Cyber Meltdown was protected by PPT, investors lost on filled stops much below limits and somebody big got busted for sure.
We will leave the situation on how technically stock like P&G could drop 50% in fifteen minutes to be investigated by the mass media, but will confirm here one more time: it was second Deflationary Test with sudden drop in liquidity this time driven by sovereign debt crisis. Call it Run On The Bank among Big Guys. Fifteen minutes made no mistake about the state of the market and economy in deflationary environment - we have seen the future and it is ugly. Deflation spiral means death of financial market by thousand cuts - financial system is insolvent and the only way to run it is to keep liquidity high enough that nobody is testing it to deliver. QE will provide flood of money, debt will be rolled over and by destroying the value of FIAT currencies Debt will be Inflated out in the end. This time it is different - it is not only our theory, but confirmed market action. This time the most important here is that Gold was at almost all time high at the moment of test, Gold was moving up against all currencies and this time in a sharp contrast to the events of 2008 it was sharply up and over 1200 on the day of Market Crash. This new round of QE (when Europe has not even started!) will be going already from this very high base in Gold value and rising Inflation in Commodity and Growth driven economies. We will not go into the debt issue today in details and will only point out that it is a notch under 13 Trillion and in dangerously close proximity to 100% of GDP of U.S.
After pictures from Greece we do not think that anybody will go there in U.S. Corp. Deflation will be prevented by any means, it is easy and price to pay is not so obvious. Newly printed US Dollars are "free", but price to drop them is not: you need Oil to keep you helicopters flying and here will be our first conundrum: At what point price of Oil becomes prohibitive to use Helicopters by Ben Bernanke in his open market operations?
Here is time to move to practical implications of the new Inflation round to fight Deflation Scare this time created by sovereign default. How Lithium, Gold and price of Oil are connected and what it means to be grounded? We will start with Gold and will give you few observations:
1. We are in a new Bull market territory with Gold moving up against all FIAT currencies.
2. Corporate default was exchanged on sovereign one, all bailouts were not more than transferring obligations from failed banks and other Corporations to the public finance. Bonuses were left with bankers, losses were privatised with public. Now we have on outskirts of Europe with less than 4% of EU GDP fireworks which suppose to end Euro legacy in wain. Do not rush to trash the Euro yet. Sovereign default is very different from corporate one. If the debt is issued in local currency it could be always printed more in order to repay it. U.S. Corp. is living in this space for years, UK is there and Europe will have to decide and move in support of Greece to prevent the run on the bank and collapse of the following PIIGS members.
3. Expect shakeouts, but the direction in Gold market is clear: further Up - driven by run from all FIAT currencies, rising interest rates, generational Bear market in Treasuries, negative real rates and expansion in monetary base (QE) with inevitable by definition Inflation. And we have to pray for it - we do not know how to survive in Deflation Spiral should anybody made a crucial mistake.
4. First Gold will make new all time high, second will be M&A play: Majors will shop for Juniors with resources in the ground. Here is the double game - Gold is moving up and Majors' production and Reserve Base is going down. If you like more leverage you are welcome to Silver market. Place to be is in stories will strong management, growing resources and stable political situations. markets will be volatile by all means and political tensions will be driving this Gold Bull as well.
We are running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to deflation war scenario. It is time for Lithium to come into picture.
Lithium is the leveraged play on Peak Oil and rising Oil price with coming Inflation. Sector is very small and market is even more smaller - everything is ready for the parabolic move in case of supporting fundamentals.
Recent Oil Spill shows the real price for Oil and leaves no doubt for us that there will be no more cheap oil: offshore drilling is costly now, it will be even more costly later. Relatively cheap Oil is in the hands of state owned companies in not so friendly to U.S. places. Oil squeeze will come from diminishing production rates and rising Inflation. The move will be even more explosive than in the Gold market - in the end only minority of people is effected by the gold price even now, Oil is the underlining of all Western Energy Diet. It is not sustainable. Emerging markets are taking more and more share of world wide production, oil producing countries are spending more at home. If you account all cost to produce, deliver and protect Oil supply to U.S. corp the price is already above 150 USD/barrel.
"Peak Oil and Lithium: Joint Operating Environment 2010
Please pay attention, this report is written by those who knows the Real Price of Oil. If you account all military needed to protect Oil supply lines and cost of wars to get more oil, price will be well above 150 USD/barrel already. Now we all have another problem: there is simply no more oil enough for all. Will future wars for oil be the only answer?"
Another "liberation" operation like Iraq, this time against Iran will break the camel's back with no return point. Competition for Oil is heating up and aggressive move by China into Electric Cars leaves no other options for US than to follow. In order to keep power China needs gradually improve standard of living, it will bring upside pressure on labor cost. Electrification will not only provide Energy Security to China, but will significantly reduce the cost of its transportation element and provide another opportunity to stay among low cost producers. Situation is completely different to U.S. - they have capital to invest in Electric Mobility CAPEX now and rip the rewards of lower cash cost on transportation side later. We will refer you to the Economics of Electric Cars.
Recent Ash Cloud events in Europe brought a very sobering sense of the feeling to be grounded. It is amazing how many things are taking for granted. This time it is Ash Cloud - what will happen with oil above 150?
Electric Cars is the only commercially viable technology today to sustain mobility world wide with rising Oil prices. Lithium is at the heart of Green Mobility revolution - it is an industry adopted standard for batteries and billions of dollars are invested into battery technology and upcoming by the end of this year Electric Cars on a mass market scale. This Bull market is still very young - only a year or so from the beginning after the crash of 2008.
We will provide you with few links to study the subject further:
1. Peak Oil.
2. Lithium ABCs.
3. Lithium the Next Big Thing for China Investments
Subscribe to:
Posts (Atom)
