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Update From Vancouver

Posted by Peter Grandich at 11:58 AM on Thursday, October 22nd, 2009

No rain today (tonight is expected to be another story) so hoping to head up to Whistler for the day.

U.S. Stock Market – Yesterday’s late day sell-off was the first of its kind in quite awhile. The market has not had a 10%+ correction since the March lows. We’ll need to watch the next couple of days to see if one has finally arrived. Whether it does or not the market continues to “melt-up” and my target of DJIA 10,500-11,000 remains intact.

U.S. Dollar – In 25 years+ in this business, I can’t recall any single market having such an overwhelming number of bears (95% bears in U.S. Dollar Futures) and not see a reversal of some magnitude. There are just so many legitimate bearish factors continuing to pile up against the U.S. Dollar. The only hope for some counter-trend rally to begin would come IMHO if the U.S. Dollar Index could close above 78. Until such time, the path of least resistance remains down.

Gold – Sorry for the bad language but if you’re a bear you have to be poo-pooing in your pants right about now. Despite widespread bearishness not only from the usual wrong suspects, many former bulls became weak kneed or outright bearish and continue to see the market move away from them. Gold has shown tremendous internal strength by actually self-correcting intra-day by selling off only to come roaring back. Today so far has been no exception. We’re in a secular bull market that has been “stealth-like” and despite being a few dollars from it’s all-time nominal high, gold remains hated and/or ignored by most. I LOVE IT!!!!

Oil - Oil indeed broke out above $76 and has $85+ written all over it. If it can get there with the DJIA also hitting my target, both could become shorts so stay tuned.

U.S. Interest Rates – Going much higher over time!

I’ve met with a few companies so far on my trip and here’s a summary of those meetings as of now:

Effective immediately, I’ve resigned my position with ATW Gold. I’ve said over and over again that management is the key for a junior’s ability to be the one in ten that makes it. While I have considerable personal respect for Graham Harris of ATW Gold, I believe his management team has not done the job. While I believe Graham will try hard to right the ship, the bottom line is they lost the confidence of shareholders, myself and the market in general. I think there are too many others who offer better opportunity at this time and one should recognize this and move on.

I had a terrific meeting with the management of Evolving Gold. Yesterday’s drill results IMHO strongly suggest that they have true home-run potential. I no longer think the question is DO they have something but HOW BIG will it end up? Management agreed with me that they have room for improvement on the corporate communication side of things but don’t let that be a knock against them. Remember, they’re the very same management team which has discovered and is developing what 99% of all other management teams can only dream about. I CONTINUE TO BELIEVE ANYTHING UNDER A BUCK IS AN AGGRESSIVE SPECULATIVE BUY.

Met with Hunter-Dickinson management and had great updates on Farallon, Taseko, Northern Dynasty and Continental Minerals. With great bias I must tell you in all my years associated with HD, I never found them as confident in one of their deals as they are with KMK.

I had an in-depth update on Sunridge Gold. They have all the makings of becoming the next Nevsun. Company is on European road show. I’m told to look forward to lots of news flow.

Must Watch! For all those who make fun of people like me and others that speak openly about the U.S. government’s “Working Group”, I strongly suggest you watch this video.

God Bless!

Posted in A Grandich Company, All Posts, Base Metals, Copper, Exploration Shares, Farallon Resources, Gold, Mining Shares, Nickel, Northern Dynasty, Oil, Precious Metals, Sunridge Gold, Taseko Mines, U.S. Economy, US Dollar, US Stocks, Zinc, world economy | 24 Comments »

Donner Metals Update

Posted by jojo at 8:23 AM on Monday, October 19th, 2009

The Mining Journal just covered the recent forum in London, including a bit they titled “Monopoly Rules; Winning is all about having the correct strategy.” Under the header “Passing ‘Go’,” Donner Metals Ltd.’s Dave Patterson refers to the opening speaker’s Monopoly analogy by applying it to the Matagami Project. : http://clients.westminster-digital.co.uk/minesite/microsite/events/62/video/index.aspx?companyid=62_5

  • In Monopoly, you need to have access to the railway, and utilities. Matagami has road, railway, airport, power, an onsite mill, and more infrastructure in place. It’s much easier to win when you can ride the railway without having to pay for building one from scratch.

don-10-17-09
This picture shows the proximity of infrastructure in the area currently under development in Matagami.

  • In Monopoly, when you Pass Go, you collect $200. In Québec, when you spend $1.00 on exploration, you get $0.40 back from the government. This is a huge incentive in a world-class mining district like Matagami.
  • Finally, in Monopoly it pays off both short- and long-term to own Park Place because you can collect on what you already have with the option of building more in the future. There have been 10 past producers in the camp, one current producer, and Donner/Xstrata’s new Bracemac-McLeod deposit is coming in as the third largest in the camp. Plus, there is potential for more new discoveries.

Pay close attention to the strategy in this game, and you should see that the Matagami Project is a quality property with low-cost, high-margin deposits in a camp that has proven economic in every metals cycle since opening in 1963.

In June 2010, Xstrata is expected to  finish the accelerated feasibility study. If it’s positive which seems likely since Xstrata skipped the pre-feasibility study to fast-track it, they should be breaking ground in July.

Posted in A Grandich Company, All Posts, Base Metals, Copper, Donner Metals, Exploration Shares, Gold, Mining Shares, Nickel, Precious Metals, Silver, US Stocks, Zinc | 3 Comments »

Things

Posted by Peter Grandich at 10:26 AM on Saturday, October 17th, 2009
  • Watch this video before joining the “Don’t Worry, Be Happy” crowd on Wall Street.

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Dollar, US Stocks, world economy | 8 Comments »

Crescent Resources – Play Ball!

Posted by Peter Grandich at 10:00 AM on Friday, October 16th, 2009

Crescent Resources (CRC-TSX-V $.21 ) is an early stage exploration company and they have now become a second player in the emerging Rattlesnake Hills Gold District in Wyoming. Crescent announced (I participated in the private placement) that they have concluded the deal on their Rattlesnake Hills Project, a highly prospective gold project that has tremendous upside potential. The property is adjacent to another company that I like – Evolving Gold - and I believe that they have potentially found a very large gold deposit in Wyoming.

Since late in 2008, Evolving Gold has been drilling their property and reported some spectacular high grade intercepts, but more importantly, very long lower grade intercepts where they should be able to build a large gold resource. These results have driven their share price and market cap. But there still appears room for movement as they’re currently drilling with 6 drill rigs and this should create a steady flow of drill results that should likely be reported between now and well into 2010.

Crescent Highlights:

  • Acquisition of key claims (4,000 acres) adjacent to and in same geological environment as Evolving Gold’s Rattlesnake Hill’s property.
  • Neighbor Evolving gold has made major gold discovery on their property and has reported areas of high grade gold (10.8 grams per tonne over 67.1 meters) within a much larger envelope containing broad areas of lower grade material.
  • Many geological features including phonolite intrusions and breccia diatremesare found on Crescent’s land position, which are considered to be the focus of local gold mineralization at Rattlesnake Hills.
  • Strong geological comparisons between Rattlesnake Hills and Cripple Creek Gold District in Colorado where over 25 million ounces have been mined over the years.
  • Evolving Gold is current drilling with 6 drills. Crescent beginning ground work.

The Rattlesnake Hills gold mineralization appear to be an alkalic gold system and similar to the Cripple Creek Gold District in Colorado where over 25 million ounces have been mined to date. There is a string of other similar deposits through a belt going from Montana, Wyoming, Colorado, and New Mexico, which include the Zortman-Lundusky and Ortiz gold mines.

Crescent can now be considered a significant player in the Rattlesnake Hills as their 4000 acre property is located right next door and in the same geological system as Evolving Gold’s property.

Crescent’s exploration work has now started with the objective of finding drill targets as quickly as possible. The initial field work should consist of ground geological work and geophysics. They have staked additional claims and details of which should be forthcoming.

Management

I am a firm believer in following the flow of people, and the Crescent management team have had key roles in the past (and present) of exploration, discovery, and development of several well known companies that have gone from early stage exploration through to become developing mines. Michael Hopley, President and CEO, has proved himself with companies such as Bema Gold, Sunridge Gold, and Tournigan Gold. Earlier in his career, Mike held the position of exploration manager for Gold Fields at Cripple Creek, which is a very similar geological environment to Rattlesnake Hills. Also in the management team are Don Halliday, Executive Vice President and Greg Davis, VP Business Development who have been involved in Bema Gold, Nevsun Resources, Crosshair Exploration, and Sunridge Gold.

The share structure in Crescent is favorable as there are currently only 30.6 million shares outstanding and there will be less than 40 million after the company closes the current private placement financing.

What to Expect?

From now until well into 2010 we can expect to see drill results from Evolving Gold. Now that the definitive agreement is complete, Crescent can fully begin field work on its’ property and can begin to generate news of their own.  Crescent offers a chance to get in early on a highly promising gold district with tremendous upside potential.

Please note I presently own a very large equity position in CRC in addition to the compensation received.

Posted in All Posts, Base Metals, Copper, Crescent Resources, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Stocks | 14 Comments »

Apella Resources Update

Posted by Peter Grandich at 8:12 AM on Friday, October 16th, 2009

www.smartstox.com has a good update on Apella Resources.

Posted in All Posts, Apella Resources, Base Metals, Exploration Shares, Gold, Lead, Mining Shares, Precious Metals, Silver, Vanadium | 8 Comments »

Brief Update

Posted by Peter Grandich at 8:55 AM on Wednesday, October 14th, 2009

The mini “melt-up” in the U.S. Stock Market continues. In 2008, professional money managers and the like were asked, “How come you didn’t get me out?” Now, they’re being asked, “How come you didn’t get me in?” Justifably or not, the U.S stock market continues to rise sharply without any major setbacks. This is causing more people in whether they like it or not. Hitting DJIA 10,000 is only going to intensify this need as the media plays up the event.

My target remains DJIA 10,500 – 11,000. If and when its hit, my plan is to put back on my perma-bear suit. But for now, sit back and watch the “Don’t Worry, Be Happy” crowd do their thing.

The very short-term key (like in hours or a few days) is – you guess it, the U.S. Dollar. It’s now below key support of 76 on the U.S. Dollar Index. A further sell-off should limit or avoid any metals correction but a reversal could bring on a sharper correction. I don’t like to hedge but it’s a coin flip right now so stay tuned.

Lots of emails about Continental Minerals (KMK-TSX-V $1.40). What I can tell you is this:

The latest deal has created lots of interest in Asia. This is a big deal having two different Chinese mining companies taking a major stake in the same company. Both have been playing up their interests in the financial media. I’m told by KMK that Asian institutional interest has gone bonkers since the announcement (You can see it in the big increase in volume). KMK management tells me they’re on a road tour promoting KMK for the first time in quite awhile and key management is heading for China as we speak. Hmmm…

I will be out of the office all next week. I will be interviewed on BNN next Tuesday at 4:15PM EST. I look forward to seeing many of you at Michael Campbell’s conference on October 24th. There will be a special “after-hours” workshop where I will expand on my latest thoughts.

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Dollar, US Stocks, world economy | 25 Comments »

Things

Posted by Peter Grandich at 7:10 PM on Tuesday, October 13th, 2009

Of all the “claims” I’ve heard from the gold bears/weak-knees bull camp, without a doubt this one today takes the cake:

“…Gold is NOT in a bull market. The dollar is in a bear market…”

Hello? Ah, a declining U.S. Dollar “Is” bullish for gold. It truly amazes me to see how long someone can be wrong and continue to find “innovative” ways of twisting in the wind.

Speaking of the dollar

How to know when gold is at a top? This is hysterically funny!

There’s a correction/consolidation out there so when it comes, rest assured the gold bears/weak knee bulls will say for the umpteen time, gold has topped. At this point, it should be only a pause that refreshes.

I believe it’s fool-hearty to think a diplomatic solution will be reached over Iran.

I’ve written about the political price the U.S. is going to pay for it’s outrageous debt and spending habits.

Commentary on Strathmore Minerals

I’m truly thrilled and grateful for the man upstairs for giving one of the best Christian men I ever met another job in the NFL

The Tyree Family and PG

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, Strathmore Minerals Corp., U.S. Economy, US Dollar, US Stocks, world economy | 18 Comments »

Grandich on Korelin Radio

Posted by Peter Grandich at 12:43 PM on Tuesday, October 13th, 2009

Grandich discusses Eastmain Resources on Korelin Radio. Please note Peter Grandich once worked for ER-TSX and presently holds shares in it.

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Stocks | 2 Comments »

Model Portfolio Recommendations

Posted by Peter Grandich at 10:17 AM on Tuesday, October 13th, 2009

I believe the metals and mining shares are in many cases over-extended for the near term and want to take some profits off the table. Sell SCP-TSX, ADM-TSX-V, CGR-Alnet and MDW-Alnet.

PST-NYSE and TBT-NYSE are the only open buys. KMK-TSX-V and EVG-TSX-V have buy limits. The rest of the model portfolio is a hold.

Please note I raised the buy zone on KMK-TSX-V. This article ran in the Asia market. Was it a Freudian slip that KMK was taken over? More on this and other positions in my next update.

Posted in All Posts, Exploration Shares, Gold, Mining Shares, Precious Metals, US Stocks | 6 Comments »

Strathmore Minerals – Appears Ready For Graduation

Posted by Peter Grandich at 12:36 AM on Tuesday, October 13th, 2009

Back in 2005, just about any stock that had the least bit of exposure to uranium saw its share price rise sharply. Gains of 500%, 1,000% or more were not uncommon. Then in the summer of 2007, most crashed and burned. Even the “Original Uranium Bug” was squashed (but has since been “Born Again” as a rare earth bug now). Most of those former fliers will never see the light of day again. Only a handful will earn their wings. Strathmore Minerals Corp. (STM-TSX-V $.67) appears to be one of them.

I could write a long summary of why I believe STM is set to separate itself from the “also-rans” but I’ll let you review this presentation for all the nitty-gritty details. I’m going to cut to the chase because I think time is very short before STM gets it diploma.

The proposed Pine Tree-Reno Creek sale to Bayswater Uranium Corporation is in my biased but honest opinion, the liftoff for STM with significant producer as its destination. Such a sale is worth about $.40 a share. This sale would provide a wealth of current working capital as the company moves closer to becoming a real producer on its Roca Honda project.

Roca Honda is a company maker. It has an excellent cockpit crew. CEO David Miller is a renowned mining expert that has delivered with AREVA. John DeJoia and Juan Velasquez are perhaps among the top permitting experts in the USA. The permitting application for Roca Honda is expected to be submitted shortly. If successful, Roca Honda would be one of the largest new uranium mines in the USA in nearly 30 years. The fact that STM has been under budget and on track in now year 3 of a 6 year permitting process is a sign of the crew handling operations.

There are several other assets and reasons to want to board this flight including the belief the company can continue to monetize other non-core assets and as a Canadian listed company operating in the USA, a lower U.S. dollar has positive cash flow possibilities in the future.

I’ve been extremely selective in my process of getting back into uranium plays. As noted earlier, many of them IMHO have been grounded for life. I believe STM is on the verge of lift off that can put many miles between it and the also-rans.

Posted in A Grandich Company, All Posts, Exploration Shares, Mining Shares, Strathmore Minerals Corp., US Stocks, Uranium | 26 Comments »

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