-- Posted Tuesday, 11 January 2011 | | Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $1384.50 | +$10.10 |
Silver | $29.54 | +$0.60 |
XAU | 216.37 | +1.82% |
HUI | 544.91 | +2.21% |
GDM | 1610.53 | +1.93% |
JSE Gold | 2584.80 | +41.46 |
USD | 80.78 | -0.12 |
Euro | 129.80 | +0.30 |
Yen | 120.17 | -0.73 |
Oil | $91.11 | +$1.86 |
10-Year | 3.341% | +0.037 |
T-Bond | 120.96875 | -0.21875 |
Dow | 11671.81 | +0.30% |
Nasdaq | 2716.83 | +0.33% |
S&P | 1274.47 | +0.37% |
The Metals:
Gold climbed steadily higher in Asia and London and saw a gain of $12.15 at $1386.55 in early New York trade before it fell rather markedly to see a $1.10 loss at $1373.30 by about 10AM EST, but it then rallied back higher in the last three and a half hours of trade and ended near its earlier high with a gain of 0.73%. Silver rose $0.72 to $29.66 before it also pared its gains a bit in early New York trade, but it still ended with a gain of 2.07%.
Euro gold climbed to almost 1068, platinum gained $28 to $1765, and copper gained over 8 cents to about $4.34.
Gold and silver equities rose about 2% by midday and remained near their highs into the close.
The Economy:
Report | For | Reading | Expected | Previous |
Wholesale Inventories | Nov | -0.2% | 1.0% | 1.7% |
Tomorrow at 8:30AM EST brings Import and Export Prices for December and at 2PM brings the fed’s Beige Book for January and the Treasury Budget for December expected at -$80.0 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on worries over supplies as Alaska’s pipeline remains shut down and “a presidential panel investigating the Gulf oil spill said the oil industry and the government need to do more to reduce the chances of another large-scale disaster.”
The U.S. dollar index traded mostly slightly lower as the euro held steady on reports that Japan will buy European bonds.
Treasuries fell as the Dow, Nasdaq, and S&P mostly rose on stronger than expected earnings reports. Today’s $32 billion 3-year note auction sold at a high yield of 1.027% with a bid to cover of 3.06.
Among the big names making news in the market today were Goldman Sachs, Sears, Toyota, Verizon, Lennar, and Alcoa.
The Commentary:
“Dear CIGAs,
Sovereign debt woes out of Europe, particularly Portugal, continue to bring a strong bid into gold. During the early part of the European trading session gold had pushed within a mere 4 euros of its all time high before it was taken down as the clock moved into New York trading (gee – what a surprise). These problems are not going to go away any time soon and as they come to the forefront of the headlines will serve to remind traders of the problems with the Euro and facilitate a drive to gold as a safe haven. They will also be there to serve as a supportive feature for the metal during bouts of price weakness should further fund long side liquidation take place.
If Portugal, or any other of these financially troubled Euro nations, cannot sell their bonds, the ECB is going to have to come in and become the buyer of last resort or else risk a spreading of a debt contagion on their watch. Chatter was that they were already doing just that today. We’ll see how many of their bonds the Japanese and Chinese will actually buy after stating that they would be purchasers of some of the debt. Savvy investors in the Euro zone have figured out that what the ECB is doing is a sort of back door QE and that is why they are buying gold and thus why the price of gold in euros is so firm.
In US dollar terms, gold climbed back above the significant chart level of $1380 during those European trading hours but fell back coming into New York and surrendered the level. We still have a “sell the rally” psyche since the price is trading below the short term moving averages so bulls will need to get the price firmly above $1400 to change that but first they have to better this $1380 mark. As the session wore on in New York, bulls made a late comeback and recaptured the hill at $1380 heading into the close, achieving a nice technical victory. Several of the technical indicators that I follow are down in the oversold zone and beginning to flatten out so it will not take too much in the way of further price gains to push those indicators into generating buy signals. Bears would still dearly love to take price below $1365 and hold it there to enable a push towards $1345 – $1340 but thus far have been frustrated in their attempts to do by the emergence of solid buying of physical coming out of Asia and Europe. These shorts will be forced out if price closes above $1400.
Silver is showing good strength at a time when it needed to on the technical charts. The further it moves up and away from $28.50, the better for the bulls as it will bring some buyers back in from the sidelines who were hesitating for fear of getting trapped by fund selling that would ensue if those support levels were taken out. The chatter about tightness in the physical silver market certainly appears to be validated by the price action of the metal at the Comex. I still want to see it climb back above the $30 level and hold there before getting confident enough to expect another leg higher. It ran into selling exactly at the 10 day moving average which is currently trending lower so we will want to see it first push past this level near $29.80 and close above it to begin spooking the bears and inducing some short covering.
The metals are finally getting some help from the HUI but that index needs to climb above 560 to get anyone terribly excited. There are so many shorts in the mining shares that if the metals can break their overhead resistance levels, a frenzy of buying is going to appear.
Bonds were lower again (Here we go back to the yo-yo once again) as risk was back in vogue today. The Yen was sold off as it always is during times of risk trades and the CCI was up sharply with crude oil rising back above $90 and moving towards $91. Copper was also quite strong today taking on more than 10 cents at one point. At least for today the markets seemed to be in sync with what the bond market was doing. Perhaps that is because the Fed was not quite as active today doing their QE thing that they love to do with the freshly created binary digits that we all get to pay for (correction – our kids get to pay for). Anyone who thinks we still have free markets in the US needs to wake up and smell the coffee. The bond market is very heavily managed by the monetary authorities; without their manipulations of long term interest rates, the bond market would have already broken down and begun another leg lower. Prospective bond buyers should be forced to wear a wrist band with a red warning light that glows whenever the CCI (Continuous Commodity Index) is moving strongly higher particularly if crude oil is going along for the uphill ride.
I see my pals at GATA have won a small but perhaps significant victory in their efforts to pry open the books of the masters of the dark (that would be the Fed). Congrats to Bill and Chris!
Corn is leading the grains complex this morning as traders anticipate a bullish release from the USDA tomorrow morning. Corn tends to draw strength from gains in crude oil as that tends to support ethanol prices. If corn closes above $6.30 and wheat closes above $8.10, watch out! Beef and now pork prices are climbing sharply at the wholesale level pushing the price of cattle into record territory for some contracts. Look for a resurgence in cattle rustling ( I am serious about this). Many of the commodity charts are showing prices just below recent highs. A push past those levels and the rising price of food is going to see the afterburners kick in. Retail prices have already begun their climb higher as any of you who monitor prices at the local grocery stores are aware. When it takes as much money to pound a pound of bacon as it does a fine quality Choice beef filet, we are all in trouble. Unfortunately for all of us, there does not appear to be any relief in sight. Keep in mind that much of this is man induced – it is the direct result of Federal Reserve policy. As mentioned yesterday, the fundamentals in many of the foods are already strongly bullish – the extra kick higher than comes from a plethora of funny money chasing tangibles, just exacerbates the situation. I sincerely believe we are going to be seeing food riots around many parts of the globe this year. The Eastern authorities know full well whom to blame for that. Unrest in any nation is a serious political issue and the West is fomenting it by foolish monetary policies and reckless money printing.”- Dan Norcini, More at JSMineset.com
GATA Posts:
China's first gold fund raises target $500 million
Reserve bank's gold sale cost Australia $5 billion
Not owning gold is insane, Cazenove's Griffiths tells CNBC
Plenty of silver paper but metal is scarce, Sprott warns
The Statistics:
Activity from: 1/10/2011
Gold Warehouse Stocks: | 11,683,698 | -14,474 |
Silver Warehouse Stocks: | 104,239,641 | -2,014 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1272.682 | 40,917,983 | US$56,214m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 123.06 | 3,956,629 | US$5,457m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 132.21 | 4,250,620 | US$5,866m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 474,927 | US$632m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 50.99 | 1,639,463 | US$2,252m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,963 | US$7m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 1.518 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 117.58 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,786.51: -53.18 change from yesterday’s data.
The Miners:
Paramount’s (PZG) drill results, SEMAFO’s (SMF.TO) 2010 production, Cardero’s (CDY) management appointment, US Gold’s (UXG) drill results, ITH’s (THM) exploration program, Allied Nevada’s (ANV) 2011 guidance, United Mining’s (UMG.TO) completed milling agreement, First Majestic’s (AG) 2010 production, Great Panther’s (GPR.TO) 2010 production, Avino’s (ASM.V) sample results, and Golden Minerals’ (AUMN) project update were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Taseko | TGB +16.57% $5.91 |
2. Coeur | CDE+13.16% $27.77 |
3. Claude | CGR +11.62% $2.21 |
LOSERS
1. Golden Minerals | AUMN -2.75% $24.74 |
2. Solitario | XPL -2.25% $3.47 |
3. Harmony | HMY -0.78% $11.40 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
ICN Reports Hog Ranch NI 43-101 Technical Report Completed - More
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Melkior Reports Results of December Drilling on Carscallen Gold Project in West Timmins-Mineralized Intersections Discovered in Favourable Geological Enviro. - More
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Strategic Metals Ltd. Announces Spin-Out Transaction to Create New Company - More
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Yankee Hat Minerals Ltd.: Shareholders Vote to Pass All Resolutions at AGM - More
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Tirex Arranges $5,000,000 Institutionally Led Financing - More
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New Jersey Mining Finalizes Agreement to Expand Mill - More
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Molycor Retains Magnesium Experts for Tami-Mosi Project - More
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Messina Minerals Inc. Hurricane Drilling Intersects Zinc-Lead-Copper Massive Sulphides, Newfoundland - More
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Orosur Mining Inc. Issue of Ordinary Shares upon Exercise of Stock Options - More
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USEC Planning for Continued Operations of Paducah Plant - More
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Ethos Provides Update on Exploration in Mexico and Announces Amendment to Existing Option Agreement - More
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Crazy Horse Intersects 271m 0.49% Cu, 0.09 g/T Au and 1.7 g/T Ag in Drill Hole CZT006 - More
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Millrock Signs Definitive Agreement With Brixton Metals for Cristo Gold Property, Alaska - More
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White Pine Resources Inc. Announces Board Appointment - More
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Correction From Source: Rio Cristal Updates Status of Its Projects - More
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Romarco Encounters 30.7 Meters of 16.1 G/T and Provides 2010 Exploration Summary - More
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First Gold Continue to Expend Rose Deposit - More
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Former Yukon Premier Appointed to Board of Directors - More
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East Asia's Miwah Gives 2.8 g/t Gold Over 25 Metres, Within 210 Metres of 0.61 g/t Gold Starting From Surface; Sipopok Scout Drilling Encounters Miwah-Type - More
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Rockland Drill Results Show Widespread Disseminated Gold Mineralization, Schefferville Gold Property, Quebec - More
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Hinterland Acquires 166 Additional REE Claims in Kipawa Area of Quebec - More
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SearchGold Reports on $4,000,000 Swala Financing and 2011 Work Program for Burkina Faso - More
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Silver Falcon Mining, Inc. (SFMI) Recaps 2010 Operational Acheivements, Provides 2011 Outlook - More
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Belo Sun Mining Increases Indicated Mineral Resources to 1,059,000 Ounces and Inferred Mineral Resources to 2,018,000 Ounces at the Volta Grande Gold Project - More
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Alderon Confirms Rail and Port Capacity - More
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Brixton Metals Becomes Largest Landholder in Kahilt District, Alaska and Files Cristo NI 43-101 Technical Report - More
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Metals Creek Intersects 4.37 g/t Gold Over 23.4 Meters Within Porphyry at Thomas Ogden Zone in Timmins, Ontario - More
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Teslin Announces Additions to Management Team and Board of Directors - More
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Argentex appoints new Chief Financial Officer - More
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Cue Resources Ltd. Confirms and Expands Mineralization at San Antonio, Yuty Project, Paraguay - More
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Midland Exploration and Zincore Metals Commence First Drilling Program on the Gatineau Zinc Project - More
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Revolution Discovers Second Zone at Champion Hills Project, Carolina Slate Belt: Intersects 28.0 Meters Averaging 3.01 g/t Au - More
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Strathmore Commences Scoping Study at Its Church Rock Uranium Deposit, New Mexico - More
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ATW Completes Field Mapping for Gascoyne Project, Western Australia - More
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Santa Fe Gold Enters into Contract to Sell Siliceous Flux to Arizona Smelter for Precious Metals Recovery - More
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Tombstone Exploration Corporation Files 6K Regarding ZTEM Report - More
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Caza Gold Corp.: Mexican Gold Target Doubles in Size - More
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Nemaska Exploration Provides Update on Drill Program at Its Whabouchi Lithium/Beryllium Project - More
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United Mining Group Completes Milling Agreement for its Crescent Silver Mine - "United Mining Group, Inc. (the "Company") (TSX:UMG - News)(Pinksheets:UMGZF - News)(Frankfurt:UM8 - News) announces that it has completed its agreement, announced on October 7, 2010, with the New Jersey Mining Company (NJMC) to secure near term milling capacity for the Company." More
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New Drill Results Expand Paramount Gold's San Francisco Target - "Results from the remaining 28 drill holes (18 reverse circulation and 10 core) from Paramount Gold's San Francisco target on its 100%-owned San Miguel project continue to confirm the potential for near-surface, bulk-minable gold and silver deposits. Paramount discovered the San Francisco target in late 2009 and subsequent drill campaigns have expanded the areas of known mineralization (see news releases dated January 7, March 8, June 17 and October 6, 2010 and click here (http://paramountgold.com/_docs/SanFranciscoZone.jpg) to view a map of drill hole locations)." More
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Ivernia Announces Financing Arrangements - More
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Frontline Gold Corporation Reports the Expansion of Its Stewart Gold Camp Projects, NW BC - More
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Merrex-IAMGOLD to Proceed With Minimum US$3,000,000 2011 Exploration Program at Siribaya - More
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North Bay Resources Inc. (NBRI) Forms Joint-Venture to Operate Ruby Gold Project - More
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BCGold Corp. Appoints Darren O'Brien as Vice President, Exploration - More
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American Bonanza Gold Corp.: Technical Report Update - More
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Apogee's Sampling Program Returns Assays up to 5270 g/t Ag, 4.69% Pb, 2.41% Zn and 1.87% Cu. A Second Diamond Drill is Added to the Property. - More
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Glen Eagle Intersects Li2O Values Over 37 Meters in two Drill Holes - More
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Barkerville To Purchase Royalty Interests - More
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Gold Canyon Commences Winter 2011 Drill Program at Springpole Gold Project - More
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Lumina Receives Positive Results From Metallurgical Testing Program at Taca Taca-High Grade Copper and Saleable Molybdenum Concentrates Achievable - More
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MDN Extends the Ikungu Structure 600 M to the West - More
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Quest B-Zone Pegmatite Zone Drilling Returns Up to 105.3 Metres at 1.34% TREO With Sections Grading Up to 20.36% TREO, Strange Lake, Quebec - More
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Southern Arc Reports High Grade Gold Drill Intercepts at Central Raja, Pelangan Prospect, West Lombok Property - More
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Alexis Appoints François Perron as New President & Chief Executive Officer - More
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Fairmont Resources Inc. Options 100% Interest in Marmion Contact South Property, Ontario - More
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Avion Intersects High Gold Grades at Kofi Project, Mali, West Africa - More
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Goldstone Announces Balance of 2010 Drilling Results, Plans More Intensive 2011 Program for Key Lake, Beardmore - More
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First Liberty Power Corp., Research Report Released - More
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Purepoint Signs Athabasca Basin Joint Venture With Cameco - More
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Rainy River Announces High-Grade Infill Drilling Results - More
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Champion Minerals Acquires Strategic Iron Properties in the Fermont Iron Ore District, Labrador Trough, Quebec - More
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Astral Samples 1m Grading 26.9g/t Gold and 3m Grading 649g/t Silver in Sinaloa, Mexico - More
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Nevada Copper Intersects 180 Feet of 1.59% Copper - More
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Fjordland Exploration Inc.-Woodjam North: Deerhorn Zone Drill Hole Intersects 95.74 m Grading 0.53g/t Gold and 0.22% Copper - More
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JOURDAN Acquires Three Strategic Lithium Properties in the Val-d'Or Area (Quebec), the Largest Adjoins Canada Lithium Corporation's Quebec Lithium Project - More
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Mineral Mountain Intersects High Grade Gold Mineralization in the "Cook Porphyry Zone", Shining Tree Area, Ontario - More
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San Marco Expands La Buena Gold Project in Mexico - More
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American Paramount Gold Complete's Geophysical Survey at Capgold Project - More
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Willow Creek Confirms Equity Financing - More
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VMS Ventures Reports 58.89 Metres of 1.21 g/t Gold Including 9.89 Metres of 5.13 g/t Gold in Diamond Drill Hole SA-10-007, Sails Lake Property Near Snow Lake - More
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Lake Shore Gold Demonstrates Near Surface Resource Potential and Extends Mineralization to Minimum 750 Metre Depth at Gold River Trend - More
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Kryso Signs Agreement with China Non-Ferrous Metals International Mining Co. Ltd. (“CNMIM”) - More
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ENCORE RENAISSANCE to Acquire Property in Handeni Region of Tanzania - More
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First Majestic Silver Corp.: Production Up 72% to 6.53 Million oz Ag in 2010; Exceeds Guidance by 9% - "First Majestic Silver Corp. ("First Majestic" or the "Company") (TSX:FR - News)(NYSE:AG - News)(Frankfurt:FMV - News) (WKN: A0LHKJ) is pleased to announce that production in 2010 reached 7,024,055 equivalent ounces of silver, representing a 62% increase over 2009 from 4,337,103 equivalent ounces of silver." More
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Gold Resource Corporation to Ring NYSE Amex Opening Bell - "Gold Resource Corporation (GORO) (NYSE Amex: GORO) to ring the opening bell on the NYSE Amex Thursday January 13, 2011. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico." More
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SEMAFO Delivers Record Gold Production in 2010 - "SEMAFO (TSX:SMF - News) today provided a summary of its 2010 operating results. Effective operations at the Company's Mana Mine spearheaded a new annual production record of 261,100 ounces of gold in 2010, representing an increase of 8% over 2009." More
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Cardero Resource Appoints Nancy Curry as Manager, Corporate Communications - "Nancy brings over 20 years of financial market, management and public company experience to Cardero. Nancy began her career working in the brokerage industry and has worked for several national investment dealers specializing in trading futures. Her public company experience began in 1995 and she has worked with several resource and technology companies coordinating and implementing extensive Corporate Communications and Investor Relations programs. Most recently, Nancy was VP Corporate Communications for Diamonds North Resources Ltd. where that company was nominated twice for Best Investor Relations by a TSX Venture Exchange Company by IR Magazine." More
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US Gold Corporation: New Discovery at Limo Project Delivers Significant Results - "US GOLD CORPORATION (NYSE:UXG - News)(TSX:UXG - News) is pleased to announce exciting drill results from its Limo Project in Nevada. Four reverse circulation holes have been drilled on the Cadillac target since the discovery of a new zone was announced on December 6th. The best new hole intersected 1.29 grams per tonne (gpt) gold over 94.5 meters (m) and ended in mineralization." More
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International Tower Hill Mines Announces 2011 Exploration Program; Adds New Corporate and Project Personnel - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX:ITH - News)(AMEX:THM - News)(Frankfurt:IW9 - News) is pleased to announce its 2011 Exploration Program at the Livengood Gold Project near Fairbanks, Alaska, and the addition of key new corporate and project personnel. The planned 2011 exploration program, budgeted at approximately $10 million, will include 45,000 metres of resource expansion and in-fill drilling at the Money Knob gold resource along with a 10,000-metre district-scale new discovery exploration program." More
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Great Panther Reports Fourth Quarter and Record 2010 Production - "Great Panther Silver Limited (TSX:GPR - News) (the "Company") is pleased to report record 2010 production of 2,255,802 silver equivalent ounces ("Ag eq oz"), a 2% increase over 2009. New records were established for the output of all metals, comprising 1,534,957 ounces silver, 7,216 ounces gold, 1,092 tonnes lead, and 1,358 tonnes zinc." More
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Avino Samples Up to 0.65m of 4576 g/t Ag & 9.09 g/t Au at San Gonzalo - "Avino Silver & Gold Mines Ltd. (TSX-V:ASM - News)(OTC.BB:ASGMF - News)(Berlin:GV6 - News)(Frankfurt:GV6 - News) (Avino) is pleased to report on further progress from the bulk sampling program at Avino's San Gonzalo mine 85Km North east of Durango, Mexico." More
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Allied Nevada Provides 2011 Guidance and Outlook With Production Expected to Increase More Than 25% - "Following a successful year in 2010, the Company looks forward to another exciting year in 2011 as the Company is expected to undergo a period of significant growth. Our plans for 2011 include advancing the Hycroft oxide operation as we approach our goal of producing over 250,000 ounces of gold per year by 2012 and completing the feasibility study for the Hycroft milling project. Outside of Hycroft, we intend to introduce a new property, Hasbrouck, to the project status with a preliminary economic assessment," commented Scott Caldwell, President and Chief Executive Officer for Allied Nevada. "The paths we laid in 2010 form the strong financial and operational foundation from which we expect to transform the Company from a single asset junior mining company, to a fast growing mid-tier producer with a world-class flagship property and a pipeline of development projects and exploration properties. Allied Nevada has a strong balance sheet and an aggressive, staged growth profile which does not exist among many of our peers." More
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Golden Minerals Provides an Update on the El Quevar Project Including Results of Favorable Metallurgical Test Work and Announces Plans to Increase Drills - "Golden Minerals Company (AMEX:AUMN - News) (TSX:AUM - News) ("Golden Minerals" or "the Company") is pleased to provide an update on its El Quevar project, including the favorable results of metallurgical test work, 2011 project objectives, and expansion of the drilling program focused on further resource expansion and definition. The El Quevar project is located in the Salta Province of Argentina." More
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- Chris Mullen, Gold Seeker Report
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-- Posted Tuesday, 11 January 2011 | Digg This Article | Source: GoldSeek.com