Tuesday, February 26, 2008

Google Disaster GOOG : Comscore Reports Awful January

Henry Blodget February 26, 2008 7:16 AM
Comscore reported shockingly bad US paid click performance for Google in January: flat growth year-over-year versus a 25% increase in Q4. Even if Comscore is only half right, this is a disaster.
Flash note from analyst Bob Peck at Bear Stearns:
comScore reported 532mn domestic paid clicks in Jan. 08, flat YoY, but down 12% sequentially (Jan. 08 vs. Oct. Oct. 07). The click through rate was the lowest since comScore stated reporting this data and was down 200bp from levels in 4Q and down 400bps from levels in 1Q of last year. While this is one data point for domestic google.com only and from one source, which may or may not be accurate, it is a concerning data point and somewhat reflects what we have heard from SEMs - that they were not seeing a high volume of clicks from consumers possibly due to the economic slowdown.Note that Google reported a 30% YoY growth rate in overall (global) paid leads in 4Q07 and comScore reported growth of 25% YoY for domestic google.com paid leads for 4Q. While not an apples-to-apples comparison, we will continue to monitor the comScore numbers for Feb and Mar before definitive conclusions can be drawn.
This report is so shocking it bears repeating: ComScore said Google's US revenue units (paid clicks) grew 25% last quarter--a quarter that disappointed Wall Street. In January, the same source, ComScore, says the same revenue units were flat.
What could be the explanation for this? Strapped shoppers not clicking on as many links. This is exactly why one insider argued last week that Google is very exposed to economic weakness--and why we have been concerned for six months that Google was not "immune" to a recession.
Yes, Comscore could be wrong, and, yes, it's only one data point. But hard to imagine how the bulls are going to spin this one.

Monday, February 25, 2008

Silver Wheaton SLW Reports Record Annual Earnings and Operating Cash Flows

This silver rocket continues to rise, Silverstone Resources SST.v will be next to launch from 3.0 CAD base of consolidation.


Lundin Mining LUN.to LMC insiders are buying again

It is important to note it is not Lundin Mining Buy back, but Lundin family is buying another 1.6 million shares at the recent market prices:

Feb 24/08
Feb 13/08
Ellegrove Capital Ltd.
Indirect Ownership
Common Shares
10 - Acquisition in the public market
Feb 24/08
Feb 12/08
Ellegrove Capital Ltd.
Indirect Ownership
Common Shares
10 - Acquisition in the public market
Feb 24/08
Feb 11/08
Ellegrove Capital Ltd.
Indirect Ownership
Common Shares
10 - Acquisition in the public market


Sunday, February 24, 2008

Google GOOG vs Commodities, Virtual vs Real

Shift to the real assets will continue further, once growth rate will slow even further compression of multiples will bring GOOG price further down to sustainable valuation:


I could not agree more with this analyses:


Lundin Mining LUN.to LMC Tenke Fungurume

Nothing is new here, DRC government would like to get bigger cut, the most important news are that contracts are valid and Tenke Fungurume NPV can sustain bigger payout to DRC.

"Without going into the exact demands made, the common themes identifiable from the statements released thus far seem to be:
More for the DRC government;
More for local communities;
No need to disrupt operations so long as companies accept the new terms."


Saturday, February 23, 2008

TNR Gold Private Placement at 0.4 CAD announced

TNR Gold TNR.v is definitely up to something if big boys are putting their money at 0.4CAD. Last PP was at 0.2CAD level and was well oversubscribe, within this year company has changed a lot. New shareholder base includes Prudent Bear fund. Insiders are holding over 23% of shares and were constantly buying. Its recent drilling at El Salto attracted attention from industry letter writers and Bob Moriarty has put a piece on his website 321gold.com after his visit to Argentina. This 4 million will help them move things forward, addition of drills will be nice to see. TNR will be presented at PDAC in Toronto with drill core on display, it must be impressive...
TNR Gold Announces $4 Million Private PlacementVANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2008) -
TNR Gold Corp. (TSX VENTURE:TNR)(PINK SHEETS:TRRXF)("TNR" or the "Company") is pleased to announce a brokered private placement led by PI Financial Corp. (the "Agent") for up to 10,000,000 units (the "Units"), priced at $0.40 per Unit to raise up to $4,000,000 (the "Offering"). Each Unit consists of one common share and one-half of one transferable common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.60 for a period of eighteen months from the date of closing. The Company has granted the Agent an over-allotment option for up to 2,000,000 additional Units.
As consideration for acting as agent, the Agent will receive a commission of 7% of the gross proceeds raised, payable in cash, in units or a combination of both, at the election of the Agent. Any units issued in lieu of cash commission will be on the same terms as the Units of the Offering. In addition, the Agent will be paid compensation options equal to 9% of the number of Units issued pursuant to the Offering. Each compensation option will entitle the Agent to purchase, at an exercise price of $0.50, one common share of the Company for a period of eighteen months from the date of closing.
All securities issued pursuant to this financing are subject to a 4-month hold period from the date of closing. The Offering is subject to TSX Venture Exchange approval and any regulatory approvals.
Proceeds of the private placement will be used to fund TNR's exploration projects in North and South America, and for general corporate purposes.
About TNR Gold Corp.
TNR Gold Corp is a base and precious metals exploration company focused on aggressively identifying new prospective projects as well as fostering work on its large portfolio of 16 properties in Argentina and Alaska. The company's focus over the next 12 months is the exploration and development of its Eureka, El Salto and El Tapau properties in Argentina and Shotgun project in Alaska.
On behalf of the board,
Paul Chung, Director

Friday, February 22, 2008

Lundin Mining LUN.to LMC Tenke Fungurume

"Freeport-McMoRan Copper & Gold Inc said on Wednesday it was confident a review of foreign mining contracts in the Democratic Republic of the Congo would allow it to go ahead and develop the Tenke Fungurume copper-cobalt mine project in the African nation."


Sunday, February 17, 2008

How much is Lundin Mining LUN.to LMC Value?

It depends on who is calculating and what information is availible to you. Recent drilling results after 18 months of drillng will be very handy.
With recent price at USD7.8 market cap of Lundin Mining is 3.1 billion. Tenke Fungurume reported almost 500 mln t of 2.6% Cu and 0.2% Co (lowest in inferred category splited almost 50%/50%). It was mentioned once that mineralised material is in the region of 1.5 billion t. If it could happen that resources will be reported at 1 billion t with 2.6% Cu and 0.2% Co it means 57 bil Lb Cu and 4.4 bil Lb Co with price for Cu in the ground of 0.1USD and Co 1.5USD rock value of Tenke Fungurume is 12.3 bil USD. Lundin Mining share is 24.75% (now before DRC resolution) it is 3.0 bil USD. So if this calculation could be true Lundin Mining now is worth only its Tenke Share.
Who will be the best to know whether there is really 1 billion t of 2.65 Cu and 0.2 Co?
Move of Freeport-McMoRan after DRC resolution will be very interesting.
You can put any discount here, slice it and dice it - the price will be determend by those who are ready to pay.

Lundin Mining LUN.to LMC Warning...that it is on track to deliver.

We must be honest, first hand to ourselves, it took me a while to make up my mind with recent negative development and warning from the company:


I do not like it. Thats it. I have let myself into mining company story when market will judge its value not based on its ASSESTS and company's ability to develope them, but on recent earnings and market situation.

I could have done much better if I have sold more at the top and was ready to buy now more agressively, I am still human, thanks God.

Why I am not selling now? It could be a stubborn mistake and that is why I will not add to the position of shares and calls which is substantial part of my portfolio. Very important here: I will survive if it will go to zero.

I have read everything availible about the company, talked to the management, listened to CC and here is my judgement for myself:

1. This is an asset story for me.
2. My value is based on a take over value of company's assets with major catalyst in DRC resolution.
3. All generated cash flow is merely suport of development of its assets.
4. Very important: all recent negativity is not positive...but is not crucial to my game plan.
5. Today on CC I head most important thing for me: Phil Wright is right man for the job, he is cleaning the house and preparing the market to positive suprises, he has put everything straight and any upside from here: in better metall prices or Tenke resolution will shoot the stock up. On the other hand there could be total mess and that is why it is important that I will survive. I like how Lukas Lundin handle the situation: he belives in Tenke and brought Tenke Mining into Lundin Mining as fast as he could after DRC situation started, otherwise it have been bought already at a floor price. He has put his name on it. Bankrupt Lundin Mining is out of question for this man of honor. If the economy and metal prices stayed robust nothing would need to be done, they were able to make it. But we know what is happening and he acted promtly and we have a new guy in charge. The only positive thing here is the new guy and Lukas being at the front. One more time it is a matter of his name now. He never was bad, why should I think that he has lost his grip now? All these worries about the end of commodity bull is mere abberation for me. The biggest difference between Lundin Mining and Google is its tangible, desired assets, which can not be replicated at any human's will and ability. Now we have a problem, a major one, our ownership of the most important asset in DRC is under question. Once it will be resolved, share price will find its way up. And here is another very important thing: I will not mind that the value of Tenke Fungurume will be realised in Freeport-McMoRan shares, if they will bid for LMC. Here is why I am playing this game, unless goods are fall out of demand, the value of the shop (rocks) containing those goods will always be above zero. If it is not stolen, damaged (non recoverable) or pledged for loans (stolen by management and bankers) it will protect your downside.

As always do not forget to think while reading. Spelling is not working as usual, sorry.

Friday, February 15, 2008

TNR Gold TNR.v Bob Moriarty 321gold.com visit

So now we know who have moved the market, Bob Moriarty from widely followed 321gold.com prized the company, hopefully finaly management of TNR is up to something big:

Lots of Copper and Gold in Argentina


Tuesday, February 12, 2008

Lundin Mining LUN.to LMC Merrill Lynch launched coverage with a buy rating and a $12 target.

"Lundin Mining climbed 20 cents to $8.27 after Merrill Lynch launched coverage on the Vancouver-based global mining company with a buy rating and a $12 target. Shares of Lundin have dropped by half since July and by 40 per cent since October as the commodity rally faded and traders worried over the licensing status of the Tenke copper mine in the Democratic Republic on Congo."

Saturday, February 09, 2008

TNR Gold TNR.v is on Canaccord Watch List

They have recently added TNR.v to their Watch list with few other junior mining stocks. Canaccord was very active last few days and was buying in the market.

Lundin mining LUN.to LMC Tenke Fungurume

Lundin mining and Freeport-McMoRan are ready for a run - I do not expect any material changes to thier contracts, removed uncertainty will bring both stocks back onto uptrend.
Congo mining review results in two weeks - minister
By Joe Bavier
KINSHASA (Reuters) - Democratic Republic of Congo (DRC) will announce the results of a long-delayed review of mining contracts in two weeks' time, the central African country's deputy mines minister said on Thursday.
The former Belgian colony set up a commission to review some 60 mining contracts last year after a new government was named following the first democratic elections in more than four decades in 2006.
The process, which aims to clean up deals agreed during the chaos of a 1998-2003 war and ensure a fair share of mining revenues for the state, has been repeatedly delayed.
The contracts include deals with international firms such as Freeport McMoRan Copper & Gold Inc, BHP Billiton and Nikanor.
"It is in the interests of DRC and its investors that the elements of contracts that need to be adjusted are dealt with quickly and clearly," Deputy Mines Minister Victor Kasongo said in a statement.
Companies with contracts under review would receive a summary of the commission's findings in two weeks, the statement said. They would then be consulted on any changes or renegotiation of the current agreements.
On Tuesday, Kasongo announced during the Indaba mining conference in Cape Town that the commission was planning to fast-track the review process.
"Our task is to get these contracts through the process, and to ensure as a result that the mining companies in DRC combine high profits and shareholder value with absolute political and legal security," Kasongo said.
Last year the country's mines minister reassured investors, saying most mining companies operating in Congo would remain in the long term despite the review.
However, in November, a leaked preliminary report from the commission said that all the contracts under review should be cancelled or renegotiated and that no contract it saw was considered "viable" in its current form.
Interest in the former Belgian colony's once mighty mining sector -- a potential treasure trove of unexploited concessions -- has boomed since the 2006 elections, meant to draw a line under years of conflict and decades of mismanagement.

Friday, February 08, 2008

TNR Gold TNR.v second drill hole hit Cu-Mo mineralisation

This could explane last two days action: second drill hole at El Salto hit Cu-Mo mineralisation as well and visual metals in the core must created buying pressure even before grade results. So now we have mineralised porphyry system with 400-500 depth and 500m space between first two holes. Grade question will be crucial: is it economic?

TNR Gold Corp. (“TNR”) is pleased to announce 2008 exploration plans for Argentina, which reconfirms TNR’s strategic focus on gold and copper exploration in Argentina.

2008 exploration plans include a minimum of 11,000 metres of drilling on three of our properties including the El Salto, El Tapau and Eureka. Additionally, our La Ortiguita property is presently being drilled by our joint venture partner La Mancha Resources Inc., and the Los Azules property, of which we have a 25% back-in clause and a strategic land position in the area, is presently being drilled by Minera Andes Inc.

Gary Schellenberg, CEO of TNR comments “ Argentina is a strong focus area of exploration for the company as we have been involved in the country since the early 1990’s, which has allowed us to successfully obtain an enviable land position and build a quality in-country exploration staff.” Mr. Schellenberg concludes “ the low cost of exploration, a friendly mining environment and a favourable geological setting are major reasons for our foray into Argentina.”


The current drilling program is focusing on several well defined, chargeability anomalies delineated by a recent 3D IP survey on the property and coincidental geochemical anomalies. The first drill hole (ES-07-01) was drilled to a depth of 391.4 metres along northeasten margin of the porphyry intrusion. The drill hole intersected variably mineralized (pyrite, chalcopyrite +/- molybdenite) breccias, porphyry dikes and altered/deformed metasedimentary country rocks across its entire length. The assay results are pending for the hole. The second drill hole (ES-07-02), which has targeted chargeability high coincident with molybdenum and copper anomalies near southwestern margin of the porphyry intrusion, is currently at 460 metres depth and is planned to be drilled to a depth of 550 to 600 metres. This hole is also variably mineralized with pyrite, chalcopyrite +/- molybdenite from top to its current depth. The remaining holes will be drilled at the minimum of 500 metres deep with the goal to test remaining high chargeability anomalies and the continuation of the porphyry system to the south.

The El Salto property, consisting of 3,300 hectares in the San Juan Province, is located within the “Yellow Belt” district of San Juan which hosts the two well-known copper deposits, the El Pachon Deposit (724 MT @0.65% Cu) in Argentina, and the Los Pelambres Mine (1487 MT @0.66% Cu) near the Chile-Argentine border (Falconbridge/Xstrata and Antofagasta web sites).


An exploration program is presently underway on the El Tapau property, located 130 kilometres west of the city of San Juan, in the province of San Juan.

The goal of this program is to define precise targets for a planned minimum 5,000 metres drilling program in 2008. It will include geological sampling, mapping and surveying throughout the area. It will focus on an area of 600 metres by 400 metres that yielded gold values ranging from a trace to 19g/tonne averaging 2.2 g/tonne from 157 sample sites collected from previous exploration. An IP survey was recently completed to further define a strong large chargeability high, approximately 1.5 km by 2.0 km (east-west) in extent, underlying this area and open to the northwest. Results of this survey will be announced as they become available.

The El Tapau Project, consisting of 3,400 hectares and is believed to host both intrusive-related copper-gold and epithermal gold system in the Frontal cordillera of the eastern Andes. Numerous historical underground copper mines are located on the claim, and quartz stockwork zones are common throughout the project area. El Tapau is strategically located in proximity to the Company's El Salto property, which will allow for work programs to be carried out simultaneously on both projects. El Tapau and El Salto properties are accessible year-round by paved and dirt roads.


The 10,192.34 hectare Eureka property, a copper-gold prospect, is located in the Jujuy Province of northwestern Argentina near the border with Bolivia. An exploration crew will be mobilized in the next two weeks to put a logistics in place and identify new drill targets for the 2008 season, which will include a minimum 3,000 metres drilling program.

The exploration program will include geochemical prospecting, trenching, mapping and a 3D IP survey conducted over the historic Eureka mine to determine if the known area of flat lying copper rich beds can be geophysically traced and detected further at depth. The program will also include sampling of the Eureka mine which was recently opened and cleaned out by the Company. Only 70 metres of the 450 metres deep, prospective Eureka formation have been explored to date. If a correlation is present then the survey will be conducted over the initial 8 square km target area previously identified by Minera PeƱoles, and then further extended to cover the entire property.


La Mancha Resources Inc. (“LMA”) has announced a 2008 exploration budget of $1.3 million on our La Ortiguita property. The program, which commenced in November 2007 to conclude in March 2008, includes a 4,000 metres RC and DDH drilling program aimed at confirming the presence of favaourable metallallogenic features and finding intersections with anomoulous gold and silver values. A synthesis of the results will be produced by mid 2008.This information has been derived from a news release issued by LMA, the project operator, on February 5, 2008.

Exploration conducted to date has targeted a porphyry copper-gold/epithermal gold system and has found an arcuate band of silicification approximately 300 to 400 metres wide and extending over 1.5km of length, associated with an approximately 50 metres wide shear zone.

The La Ortiguita property is located on the El Indio trend in proximity to Veldadero and Pascua, Lama Gold deposits in the province of San Juan.


Minera Andes Inc. (“MAI”) has announced that a 2007-2008 field season is underway that includes a 10,000 metres (24 holes) of drilling program and completing a scoping study to define a resource.

MAI, the operator on the Los Azules property, has also executed a definitive option agreement with Xstrata Copper covering the Los Azules porphyry copper project in San Juan province, Argentina. This information has been derived from a news releases issued by MAI, the project operator, on November 14, 2007 and January 28, 2008.

TNR’s option with Xstrata consists of approximately 20,000 acres located adjacent to the northern border of MAI’s Los Azules property. TNR granted Xtrata Copper an option over 100% of the property, subject to a 25% back-in right in favour of TNR. In 2005 Xstrata optioned its 100% interest to MAI in exchange for making all the cash payments required and incurring $3,000,000 in exploration expenditures by May 15, 2008.

Drill results from MAI’s 2006 campaign at Los Azules confirmed significant high-grade copper on the property. An 11-hole drill program returned intervals up to 1.62% copper over 221 metres and 1% copper over 173 metres in separate holes, both of which are on the Xstrata optioned property.

TNR has a 25% back in clause on the property if a feasibility study is completed within 3 years of the exercise of the option, subject to payback of two times the expenditures on the property. If TNR backs in for 5% or less then its interest will convert to a 1% net smelter royalty. TNR maintains a strategic land position in the area.


1. Prospectors & Developers Association of Canada ( PDAC 2008 )
March 2-5, 2008 Toronto, Ontario

2. Cambridge House Show
April 12 -13, 2008 Calgary, Alberta

3. Global Capital Conference
October 1-2, 2008 London, England

This news release has been prepared under the supervision of Ike Osmani, P.Geo, TNR’s qualified person on this news release.

Thursday, February 07, 2008

TNR Gold TNR.v Banner is on 321gold website

Is this run connected to 321gold and some serious results and following promotion?


TNR Gold TNR.v is at 0.42CAD 309000 shares traded so far

Shares are so tightly held, that even this buying pressure is moving stock price up 30% today. NR must be just around the corner, something is brewing on.

Lundin Mining LUN.to LMC New Presentation


Lukas Lundin chairman of Lundin Mining LUN.to LMC on BNN

Finally the guys are making some damage control: watch out on 02-07-2008 at 10.05 AM


High commodity metal prices are here to stay.

"Ernst & Young says metals analysts’ prediction of metal prices “have consistently and significantly lagged behind the actual spot market,” and that mining and metals equities have been undervalued.
Ernst & Young said: "It is our view that current metal prices are actually a return to sustainable price levels following an extended period of artificially depressed prices, rather than the conventional wisdom that the industry is near the top of a cycle."

Wednesday, February 06, 2008

TNR Gold TNR.v bid at 0.28 ask at 0.32

Welcome to our party, so far 120k shares traded at 0.28CAD. Somebody likes results at El Salto as well. If we cross 0.3CAD fireworks will start.
The problem with this stock is that if you would like to accumulate any meaningfull position you will drive the price up: it is so tightly held. You have to accumulate for months.

Lundin Mining LUN.to LMC "$900mDRC copper mine to come on stream in '09"

"It was announced on Wednesday that mine production at the $900-million Tenke Fungurume copper-cobalt project in the Democratic Republic of Congo (DRC) would begin next year.Lundin Mining Senior vice president of projects Paul Conibear stated that the Tenke Fungurume project, which had an inferred resource of 235-million tons of copper, would mine the world’s largest and richest deposit of copper-cobalt.Lundin Mining held a 24,75% interest in the Tenke Fungurume project while the company's operating partner, Freeport-McMoRan Copper and Gold held a 57,75% interest and La Generale des Carrieres et des Mines, the DRC State-mining company, held the remaining 17,5% interest.Conibear stated that construction of the initial phase of operations was well under way, although he admitted that production start-up was slightly behind the initial schedule of the fourth quarter 2008.This was due to due to delays in construction works. Nevertheless, he said that to date approximately 55% of design and 70% of procurement had been completed.In addition some 15% of the construction work has been completed, which included the bulk earthworks at the plant site and shop areas as well as the concrete work.Conibear said that the project was about 40% complete overall."
"Conibear also stated that aggressive exploration work was in progress on the Tenke Fungurume mineral concessions with the aim of upgrading resources to reserves to support expansion plans. To date, 31 000 m had been drilled and nine rigs were currently active across the concession."
"Fast-track" is what we need now to remove uncertainty:
DRC to launch "fast track" appeal for mining review

Tuesday, February 05, 2008

TNR Gold TNR.v La Ortiguita drilling by La Mancha

ARGENTINA 2008 exploration budget of $1.3 million has be allocated to exploring the La Ortiguita property, located on the El Indio trend in proximity to gigantic deposits like Veladero and Pascua Lama. For the prospect, La Mancha is involved in a farm-in with TNR Gold. The new program, which started in November 2007 and lasts until March 2008, includes 4,000 metres of RC and DDH drilling aimed at confirming the presence of favourable metallogenic features and finding intersections with anomalous gold and silver values. A synthesis of the results will be produced by the end of the second quarter of 2008.

Sunday, February 03, 2008

Silver is in a very strong Break Out

Few ideas for your thoughts how to play this break out in silver:
SST.v Silverstone Resources - new Silver Wheaton SLW
SRLM.ob Sterling Mining - new producer from old Sunshine Mine
ASM.v Avino Gold and Silver Mines - equipment value is more then MC, management woken up lately
MGN Mines Management - huge resources, Montana, SLW took a 10% stake in the company
RVM.to Revett Minerals - upgraded resources, one of the most undervalued Ag Oz in the ground
SBB.v Sabina Silver - one of the most undervalued Ag Oz in the ground
CNU.v Continuum Resources - droped below its value in J/V with Fortuna

Lundin Mining LUN.to LMC my voice in the desert.

Dear Sophia,

Please forward the following message to Chairman of Lundin Mining Mr Lukas Lundin.

Dear Sir,

I think it is very good time to break the silence and bring some positive news to the market in light of latest negative news about restatement and uncertainty about the company.

I still strongly believe that you are building one of the most interesting companies in the resource sector, but if company fails to outline active damage control strategy at the very important resistance level at 7CAD, stock will fall and Company will be bought for peanuts of its real value.

Even most devoted shareholders of your company can not find answers about recent negative developments and are waiting for your active role in current crises.


Sincerely yours,


Lundin Mining LUN.to LMC major risk is To Be Sold at Low Price

Lets shareholders voice to be heard! We need to wake up those guys.
Send this chart by email or by fax to attention of Mr Lukas Lundin Chairman of Lundin Mining:
Vancouver Office: 2101-885 West Georgia Street Vancouver BC, Canada V6C 3E8
Tel: +1-604 689 7842
Fax: +1-604 689 4250

Porphyry Deposits Explained - El Salto TNR Gold Target

Porphyry Deposits Explained

Every investor in the mining industry has heard about porphyry deposits, yet few have a real understanding of what that term signifies. Many investors appreciate that porphyry deposits are often enormous in size and represent the most important source of copper and one of the leading sources of gold. In fact, the single largest supplier of gold in the world, with 2.5 million ounces of annual production, is the enormous Grasberg gold-copper mine in Indonesia, which is based on a porphyry deposit.In its simplest terms, porphyry deposits are formed when a mass of molten rock from deep in the crust works its way up to near the surface. Those magma bodies, often encompassing tens of cubic kilometers of hot molten rock, set off processes that "cook" the rocks for kilometers or even tens of kilometers around. That process can lead to the formation of ore deposits.Often, porphyry deposits encompass a district where the same process has been repeated a number of times over an area that sometimes extends for tens of kilometers.The most important part of the process of formation of a porphyry deposit is a hot water circulation system that can remain active for hundreds of thousands of years. In many cases, repeated pulses of magma keep the systems active for literally millions of years.The circulation of hot water serves to concentrate metals within the system. Water that is kilometers deep in the earth is heated by the molten rock to hundreds of degrees Celsius, and kept in the liquid state by the enormous pressure at that depth. When that superheated water is mixed with sulphur, chlorine and other reagents, it easily dissolves metals, including gold. Those fluids scavenge metals molecule by molecule from vast areas -- many tens of cubic kilometers of rock.The metal bearing fluids rise over the heat source. Where a process is present to extract the metals from solution, the metals are concentrated, occasionally to a sufficient extent to create an ore deposit.A porphyry deposit refers to the situation where the metals are deposited in a disseminated manner throughout a large volume of rock. Where larger conduits are present, such as in fracture zones, the metals are preferentially deposited along these structural corridors. Rocks tend to fracture over zones often tens of meters wide referred to as "fracture zones" or "shear zones".Porphyry deposits typically measure in the hundreds of millions of tonnes, with some deposits in excess of a billion tonnes. The most important economic metals are copper and gold.Porphyry deposits are frequently associated with other deposit types. For example, skarn deposits are formed when the metal bearing fluids encounter a limestone unit. The abrupt change in chemistry results in a sudden deposition of the metals.

TNR Gold TNR.v

Maybe there is the last chance to build meaningfull position in TNR Gold below 0.25CAD. It is important level where the warrants are priced from last PP and management was recently granted options at the same price. With drill results from first hole on El Salto just couple of weeks away this very speculative play can start getting attention in the market. According to latest NR they have hit CU-Mo mineralisation in the first hole and now it is important to see the grade, the second hole is well under way now as well. Company is busy drilling and preparing El Tapau for next drill campain, story is slowly making its way into the light.
Insiders are still buying every single stock availible in the market, one of the directors Paul chang exercised his 100000 options at 0.25.
More on TNR Gold

Lundin Mining LUN.to LMC Mantle Resources MTS.v positive ZINC sentiment

Lundin Mining has around 26% in its revenue from Zinc but its recent slide was almost the same as Zinc metal price collapse. This changing Supply landscape will add fuel to short covering rally in Lundin Mining and Mantle Resources.
Snow hits Chinese lead and zinc smelters hard, boosting prices -industry insiders
"We previously predicted that there would be a surplus in China's zinc market in 2008. However, we will need to revise that forecast after the bad weather subsides, as zinc stockpiling may accelerate among downstream users,"

Friday, February 01, 2008

Lundin Mining LUN.to LMC Freeport-MacMoRan FCX Hot Commodities CNBC

"Tenke Fungurume is a Major project we are very exited about. Government is encouranging us to move forward, we have begun construction and expecting contract to be approved."

Lundin Mining LUN.to LMC and Juniors mining is all about Infrastructure Boom

This is what we are talking about: crazy price from MSFT for YHOO is very important indicator that market is alive and people are ready to overpay for things they think they are need badly. Now have a look at CHINALCO paying for stake in RIO Tinto and Infrastructure Boom in Things that are Nessesary:

Microsoft offers to buy Yahoo in $44.6 bln deal

Google now will be under pressure from this side as well. Multiple for Yahoo! in this aquisition is around 30 compared to Google's 51 as of yestoday close.

Google GOOG WEB2.0 Bubble is Bursting

Finally great company has missed even greater expectations, more analyses will come later, but for now it is apparent that all financials deteriorated further: growth rate sliped at fastest pase ever. FCF in last year was 3.4 bil USD. Multiple at closing at USD564 FCF/MC (176.5 bil) was 51.9, compared to yahoo around 20. Recession will eat hard into Google revenue growth, CAPEX will hurt FCF further in 2008. Multiple of 50 Free Cash Flow to Market Cap is not sustainable any more, expect first stop at 40. It is 40*3.4=136 bil market cap, stock price USD435. With further recession fears multiple of 30 will come into play (50% over Yahoo!). It will reflect in stock price of USD326. On the Technical side stock has broken crucial uptred line on weekle bases. Technacal signal SELL which has been reported here 2 weeks ago now confirmed buy fundamentals.