Thursday, September 30, 2010

Gold in America: TNR Gold Corp.: 100% Interest Negotiated on Shotgun Gold Project, Alaska TNR.v,, ABX, KGC, TCK, GG, NEM, BVN, AUY,,,, FCX, GDX, HUI, XAU

"CaseyResearch: Most Alaskan gold comes from only a handful of mines – and that tells you something about the size of the deposits being worked. The two largest mines, Fort Knox and Pogo, account for more than 80% of 2008 total gold production, or 640,000 ounces. The Kensington project, which started producing gold just a month ago, is set to become the third largest. Perhaps. But these mines are small potatoes compared to some of the current projects being advanced toward production. Given that a million ounces of contained gold is considered a large gold mine, Alaska’s major deposits are genuine monsters: Pebble has 107.3 million ounces of gold, Donlin Creek has 42.3 million, and Livengood has 19.7 million. If these go into production, Alaska will rank as one of the world’s top gold producers."


 "If you grow something - it takes time, energy and a lot of effort. Not all connections will be apparent at the first sight - you need to know what you are doing. Those who are in this Gold Bull market from its very beginning, remember that Barrick was always among those "hedgers who was playing by the music of anti gold cartel." Situation has changed, when the company announced its unloading of its hedging and now it will enjoy the leverage to the gold price, but the real party will be going where resources are - in junior mining sector. In order to have more understanding of the next steps to realise value in this stage of this Bull we need to do some digging. We will refer you to couple of our old post, which are relevant today even more than before."

  We hope that, finally, market will find out that TNR Gold has gold not only in its name, but holds now 100% of Shotgun Gold deposit in Alaska. With all recent cyber activity in the market we thought that there is no hope in justice for this junior and nobody will ever honor their word again. Nova Gold has proved us to be wrong here. We guess that such a deal took some time and we are raising our hat to the Nova Gold management, who fulfilled their commitment.
  Even more, apparently, they can see the value and upside in all assets of TNR Gold in Gold, Copper, Lithium and REE. The deal is done with shares and warrants of TNR Gold. Nova Gold was holding the stake in TNR Gold before and now they have increased it just under 10%. Whoever has been shaken the tree with automated selling, he will not be able to get any more cheap shares in this junior. Management and insiders hold 50% of the company. Among other shareholders is another major - Barrick Gold. Canada Zinc Metals holds a strategic stake in the TNR Gold and Chinese Togling is buying now more than 30% in CZX.v In this light, trip to China will be very interesting: TNR Gold holds REE project in Canada: Big Beaverhouse and with all recent publicity around REE, we can expect some new developments here as well.

  Update: Now CEO of TNR Gold is buying in the market as well.

  This Fall is going to be hot for this company: International Lithium has announced their upcoming trip to China and Europe with pre IPO financing and TNR Gold will have a full plate after spin off of International Lithium with this acquisition.
  Insiders are backing International Lithium valuation at 15 million CAD according to information circular and Shotgun, we think, could be north of 15 million as well, if we consider 15 USD per Oz on NON NI43-101 historical resource or double the NAV (8 million * 2 =16 Million CAD) according to industry standard valuation now.

  Los Azules and Escorpio IV legal case is a pure blue sky potential here for valuation of this company and all other properties will be an icing on the cake.

  By the way, Minera Andes is rising with volume last few days as well - something is brewing on over there. Normally, before real estate agent will bring his clients house will be cleaned.
  We are so much fed up with this illegal practice of junior miners stocks manipulation in Canada, that will notice one more time: even today on the up tick and the volume up Scotia was hitting on the bids with 500 shares trade. It is not the way to sell - you would sit on the ask in a rising market, but the way to suppress the price and wait others to sell at this lower level: it was happening last few days. And today at the close Scotia proudly hit the bid with 500 just to show the closing lower - at 0.185CAD.

Recent Trades - Last 10 of 64

Time ET Ex Price Change Volume Buyer Seller Markers

15:59:01 V 0.185 0.01 500 33 Canaccord 85 Scotia K

15:56:34 V 0.19 0.015 340 80 National Bank 59 PI E

15:50:51 V 0.19 0.015 500 99 Jitney 1 Anonymous K

15:43:39 V 0.185 0.01 4,000 33 Canaccord 1 Anonymous K

15:34:07 V 0.185 0.01 500 33 Canaccord 85 Scotia K

15:28:09 V 0.185 0.01 9,000 7 TD Sec 9 BMO Nesbitt K

15:14:55 V 0.19 0.015 10,000 2 RBC 1 Anonymous K

15:04:35 V 0.19 0.015 5,000 7 TD Sec 1 Anonymous K

15:02:08 V 0.19 0.015 8,000 79 CIBC 79 CIBC K

15:02:08 V 0.19 0.015 12,000 79 CIBC 1 Anonymous K

  We would caution hot heads from this "mysterious hedge fund" specialising in illiquid juniors with market cap under 20 mil - you can lose you pants here and will not shake out Nova Gold, Canada Zinc Metals and Barrick Gold with insiders. IR has told us that they have informed TSX and Exchange is monitoring the situation.

  We are not certified to provide any valuation, so you will have to divide the value on the number of shares outstanding by yourself here.

  But lets dig up the asset - Shotgun:

  Technical Report on the Shotgun - Winchester project, SW Alaska.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.

Press Release Source: TNR Gold Corp. On Thursday September 30, 2010, 8:00 am EDT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2010) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR - News) is pleased to announce an increase to a 100% undivided ownership interest in the Shotgun project in Southwestern Alaska (the "Property") through the acquisition of NovaGold Resources Inc.'s ("NovaGold" or the "Vendor") outstanding 50%.

Key Highlights:

-- Acquires NovaGold's 50% interest in the Property to increase it's ownership to 100%;
-- 6,000,000 shares and 3,000,000 warrants in the Company for consideration of NovaGold's 50% interest;
-- Shotgun Ridge contains a Non NI43-101 historical resource of 980,000 ounces grading 0.93 g/t(i);
-- 210.5 metres grading 1.29 g/t Au at Shotgun Ridge indicates higher grade feeder zone open at depth; and
-- $8 million spent on the project to date by the Company and previous operators.

"The Shotgun property is a major gold asset and the successful unification of a 100% interest translates into a significant increase in inherent value for the Company," states Gary Schellenberg, CEO - TNR Gold Corp. "The current economic climate is ideal for the advancement of a project such as this and we look forward to the opportunity to realize its potential."

NovaGold has agreed to sell its remaining 50% participating interest in the Property (the "Interest") to the Company in consideration for receiving an aggregate of 6 million common shares and 3 million share purchase warrants in the capital of the Company. In addition, a 2% net smelter returns royalty from mineral products produced from the Property will be granted to the Vendor by the Company, which can be purchased by the Company for USD 5 million any time prior to a production decision having been made.

Each share purchase warrant shall entitle the Vendor to acquire one common share in the capital of the Company for a period of three years following the completion of the purchase and sale of the Interest (the "Closing Date") at a price of C$0.20 per share from the Closing Date until the date which is one year from the Closing Date, at a price of C$0.25 per share from the date which is one year and one day from the Closing Date until the date which is two years from the Closing Date and at a price of C$0.30 per share thereafter until the expiry date.

Shotgun Project

The Shotgun project is located 175 kilometres south of Donlin Creek within the Kuskokwim Gold Belt in Southwestern Alaska, an area emerging as a world-class gold district hosting more than 40 million ounces of aggregated gold resources. The Shotgun project includes a number of prospects, including Shotgun Ridge and nearby Winchester. Donlin is an intrusion-associated system and represents one of the largest undeveloped gold deposits in the world. The Company believes that there are several key similarities between prospects in the Shotgun Project area and that of the Donlin Creek gold deposit as well as other intrusion associated deposits.

Previous work at Shotgun Ridge by NovaGold has estimated a historical resource of 980,000 ounces grading 0.93 gram per tonne (g/t) at a cut-off of 0.5 g/t(i).

The Company built on NovaGold's previous exploration work on Shotgun Ridge and a subsequent drill program in early 2006 reported a 210.5 metre intersection grading 1.29 g/t Au, which has led to the identification of two higher grade feeder zones and leaves the mineralization open at depth. This discovery intersection has yet to be followed up and an updated NI43-101 compliant resource has yet to be estimated. To date there has been 4,095 metres of drilling at Shotgun Ridge.

(i)(Not a NI43-101 compliant resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. This resource estimate is quoted from the Technical Report on the Shotgun-Winchester Project, SW Alaska. 7 March 2008 and available on

The Winchester zone is an underexplored intrusion-associated gold prospect situated approximately 16 km south of Shotgun Ridge. The full extent of mineralized sills and dykes at Winchester is unknown since only 1.5 kilometres out of the 8 kilometre long ridge, host to numerous unexplained gold geochemical anomalies, has been explored in detail. Drilling during 2005 and 2006 identified gold-bearing sills in the eastern end of the Winchester zone. To date there has been 1,653 metres of drilling at Winchester.

Although the style of gold mineralization in sills at Winchester is quite different from the quartz-breccia stockwork that hosts the gold at Shotgun Ridge, the two prospects are geochemically very similar and are considered to be part of the same overall system. TNR believes a major structural axis, encountered in several drill sections, is critical to the mineralization and runs parallel to the ridge at Winchester. The next phase of exploration at Winchester will extend into the untested area along the ridge to the west in the direction of the structural axis.

The other two prospects that make up the Shotgun property are Shot and King. Shot contains some of the strongest geochemical anomalies on the Property and needs to be tested for similar mineralization to that found at Winchester. King includes several unexplained geochemical anomalies as well as a drill ready breccia zone.

John Harrop, P.Geo, is the company's qualified person on the project as required under NI 43-101 and has reviewed the technical information contained in this press release.


The Company is a diversified international metals exploration company focusing on the continued advancement of existing properties and identifying and acquiring new prospective projects. The Company has a portfolio of 18 active projects, of which 9 rare metals projects, including Mariana, will be held or optioned to the Company's wholly owned subsidiary International Lithium Corp upon completion of a proposed plan of arrangement.

The objective of the proposed plan of arrangement is to spin out the Company's rare metals property interests into a separate public company, International Lithium Corp. This proposed plan of arrangement has been approved by the Company's shareholders and the courts of British Columbia. The Company will now proceed with the spin out and will provide updates on the progress of the spinout in further news releases. For further details of the spinout, please refer to Stockwatch news dated May 26, 2010, or visit International Lithium's website.

The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the combined companies' commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,

Gary Schellenberg, President

CUSIP: #87260X 109

SEC 12g3-2(b): Exemption #82-4434

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Neither the 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."

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