Wednesday, April 15, 2009

Canada Zinc Metals CZX.v: Zinc at Six-Month High, Poised for Longest Rally Since January CZX.v, LUN.to, HBM.to, NSU.to, SGC.v, SNU.v, TCK, BLS.to,

Zinc supposed to be boring compare to the hot stuff like Lithium, but it could be the best investment again after 2003 run to over 2 USD/lb. With all these news on our Next Big Thing Lithium and Green Bull market guess what is needed for supporting infrastructure: Copper and Zinc, lots of it. All those Electric cars will need Zinc for production, Wind turbines and Electric Grid. Cheapest car at 2000 USD Mano by Tata Motors TTM will open doors to mobility for millions of new customers. Recently Zinc has impressive rally and we wrote before about its fundamentals. Lundin Mining LUN.to came out of near death experience at 0.7CAD to over 2.0CAD. Market could Retest the lows or maybe even make new ones, but we know that there is life out there apart from US Corp financial misery and even in US part of bailout money will find its way into Energy Security plays and Infrastructure.
Canada Zinc Metals CZX.v is completely forgotten and looks like Mr Market decided that Zinc will never cross 0.8CAD/lb again, play is highly leveraged to Zinc price, located in stable Canada next to impressive Teck Korea Zinc Cirque deposit. Will management be able to consolidate the region play with recent Chinese investment from Tongling at 0.425CAD once it closed? Region play Target could be as large as 75 million tons 5% Zinc after further exploration (Akie and Cirque combined). Or maybe Company should join our Next Big Thing and acquire some Lithium properties in Canada to extend its Green Obama Bailout Infrastructure play appearance?
By Glenys Sim
April 15 (Bloomberg) -- Zinc advanced for a fourth day to the highest level in six months on speculation demand is increasing in China, the world’s largest producer and consumer of the metal used to galvanize steel.
Stockpiles in Shanghai warehouses dropped last week for a third week to 73,318 metric tons, according to exchange data. The global surplus of zinc, the third-best performer on the London Metal Exchange this year, narrowed in February, according to an International Lead and Zinc Study Group report.
“We’re getting anecdotal evidence of orders picking up in recent weeks, and this has given the bulls a reason to push prices higher,” Shenzhen Rongtuo Trading Co. analyst Pang Ying said today. Three-month delivery zinc jumped as much as 1.5 percent to $1,462 a ton, the highest since Oct. 14, and traded at $1,452 at 11:14 a.m. Singapore time, heading for the longest rally since January.
Zinc for July delivery on the Shanghai Futures Exchange gained as much as 4.2 percent to 13,300 yuan ($1,946) a ton, before trading at 13,220 yuan.
China’s imports of refined zinc outpaced exports for a third month in February, according to customs data. March trade figures are expected to be released this week.
“China is the world’s largest producer of zinc and still remains a net importer as the widening spread between London and Shanghai prices encourages overseas purchases,” said Pang.
Premium Increases
The premium of Shanghai over London climbed to more than 1,000 yuan a ton this week, compared with this year’s low of around 300 yuan in March, according to data compiled by Bloomberg. Futures in China gained 33 percent this year, compared with 20 percent in London.
Reports of domestic stockpiling are helping support prices, Pang said. Hunan Nonferrous Metals Corp. plans to borrow 1.2 billion yuan ($176 million) from banks to help its units stockpile metals, the Hunan Daily reported yesterday. The country’s State Reserve Bureau has procured about 159,000 tons of zinc this year.
China’s Shaanxi province will buy 44,000 tons of zinc from local producers for stockpiling, researcher CBI China Co. said March 19, while Chenzhou in China’s Hunan province plans to store 50,000 tons of zinc this year to support local industry amid the global economic crisis.
Among other LME-traded metals, copper was little changed at $4,705 a ton and aluminum was unchanged at $1,513 a ton. Lead fell 0.7 percent to $1,475, nickel lost 0.8 percent to $11,750 a ton, while tin climbed 0.2 percent to $11,025 at 11:08 a.m. in Singapore.
To contact the reporter on this story: Glenys Sim in Singapore at Gsim4@bloomberg.net Last Updated: April 14, 2009 23:35 EDT

Roxmark Mines RMK.v: Premier Hardrock Drilling intersects high grade gold at Tenacity 16.86g/t Au across 5.5m. RMK.v, PG.to, HUI, XAU, GDL, GDX


Very impressive Gold intersection. This J/V is getting better and better results, 4 drills are turning fast and Premier Gold PG.to means business here. Past producing region is receiving new Gold Bull market money and model is confirming expectations to become a sizable deposit in Canada.
Roxmark Shareholders RMK.v could relax and enjoy the ride, next step will be first resource estimation and then who knows at what price Premier will be ready to take out another 30% of the project.
So far from our top Picks list for 2009 Suramina Resources SAX.to was acquired by Canada Gold Hunters CGH.to, Chinese Tongling is investing at o.425CAD double the recent market price into Canada Zinc Metals CZX.v, Continuum Resources CNU.v was bought out by Fortuna Silver FVI.v and TNR Gold TNR.v has moved aggressively into Lithium field and acquired properties in Canada.
M&A in the sector will be driving valuations from this still rock bottom levels in Junior mining plays.


THUNDER BAY, ON, April 15 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG - News) is pleased to announce that ongoing drilling at the Hardrock Project in Geraldton, Northwestern Ontario continues to return high-grade gold mineralization in the Tenacity Zone, as well as high grade narrow vein mineralization in a deeper target (KL Zone). This drilling suggests that the Tenacity Zone may improve with depth as confirmed by an intersection of 16.86 grams per tonne gold (g/t Au) across 5.5 metres (m) in the furthest down-plunge section drilled to date. Additionally, drilling has confirmed high grade gold in a deeper target beneath Tenacity with intersections of 40.1g/t Au across 1.0m and 17.45g/t Au across 1.9m. Highlights of recent Tenacity drilling include:
- Drilling suggests the potential to develop both open pit and
underground resources with apparent improvement in grade and
continuity down-plunge.
- Exploration drilling (three holes) confirmed high grade gold
mineralization within a narrow vein target with intersections in
excess of 17.14 g/t Au ((greater than) 0.50 oz/ton).
Follow-up drilling at Tenacity, as well as the testing of other target areas, is on-going.
"Our success in drilling numerous target sites at Hardrock speaks volumes of the quality of this Project", stated Ewan Downie, President of Premier. "Gold mineralization found over appreciable widths in multiple horizons support our view that a sizeable gold resource will be delineated on the Project".
The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK - News; Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced more than 2.0 Million ounces of gold from the same shallow deposits within 2000 feet (600 metres) of surface from 1938-1968. The mined zones remained open at depth at the time mining ceased and developed historical resources were left in place within the existing mine workings (a qualified person has not done sufficient work to verify the historical resource, the company is not treating the historical resource as a current resource and the historical resource should not be relied upon).


Lithium: China aims to be world pacemaker of new-energy auto production. TNR.v, SQM, WLC.v, CLQ.v, BYD, FXI, TTM, GM, F, GOOG, QQQQ, OIL, OIH, RIMM,

BYD Electric E6 will Warren Buffet drive this one? Geely Electric Panda.

Cherry S18 Electric Car from Chinese Chery Automatic Company.






These are our Next Big Thing Bull fundamentals in action:


BEIJING, April 15 (Xinhua) -- April's Auto Shanghai 2009 show highlights the use of energy-saving automobiles, with several well-known auto-makers, including GM and Ford, set to announce new products.
For many Chinese exhibitors this will also be a good platform to show new-energy products. Domestic carmakers including Geely and BYD announced earlier that they would unveil new-energy vehicles, while the country's first hybrid sport utility vehicle (SUV) CS7 is expected to make its debut.
New-energy autos mainly refer to electric vehicles (EV) -- driven by an onboard power generator; hybrid electric vehicles (HEV) -- which combine two or more propulsion system and can save as much as 40 percent of the fuel, and hydrogen or solar energy cars.
These automobiles, which features less reliance on gasoline and diesel, energy-saving and environment protection have attracted many countries worldwide to set foot in research and development in the hope of saving energy.
Industry insiders expect China to become the pacemaker of a new-energy automobile industry in the future thanks to strong policies from the government and a full industrial chain.
On March 20, China unveiled a revitalization plan for the domestic automobile industry, which outlines the details of enlarging new-energy auto production, and developing spare parts and components.
The plan said the country would channel "special funds" from the central budget to encourage use of new-energy autos. Government or companies that purchase the cars are expected to get a compensation of 4,000 yuan (585.6 U.S. dollars) to 25,000 yuan per car.
By 2011, annual production capacity of new-energy autos should stand at 500,000, and 5 percent of new vehicles, including lorries and buses, should be new-energy ones, according to the plan.
Li Chunbo, the CITIC Securities analyst, told Xinhua on Wednesday:" China doesn't occupy a leading position in developing traditional oil-fueled vehicles, but it has great potential in new-energy car production, if it takes advantage of policies."
Pei Pucheng, China's Society of Automobile Engineers praised the measures as a "positive signal" at the same time, saying favorable policies would guide more enterprises to engage in the industry, attract more talents and encourage consumption.
Worsening air conditions and energy shortages have been big risks to China's economic development and environmental protection.
China had 50 million automobiles in 2008, and it is estimated that the figure will hit 150 million by 2020, and fuel consumption is expected to top 250 million tonnes of oil.
China ranks the third largest auto producer worldwide in terms of production capacity, only behind the United States and Japan. Last year, the country produced 9.35 million automobiles, an increase of 5.21 percent year on year.
Wan Gang, minister of science and technology, underscored that it was a very good opportunity for China to develop self-made new energy autos.
The country is very likely to shift from the status of a "large producer" to "leading producer" of autos gradually, he said.
Expert Pei said, although China had been developing new-energy autos for a very short period of time, the country was playing an important role in battery production, one of the most important parts of a new-energy auto.
"The most widely-used auto batteries are lithium batteries. The performance of batteries directly decides the quality of new-energy automobiles," Pei noted.
CITIC Securities issued a report in March, which said, "It appears that more and more lithium battery producers are moving to China. This will help China to occupy more market share in the new-energy auto market."
China has about 200 lithium battery enterprises, accounting for40 percent of the world battery production. BYD company limited is not only an auto producer but also the leading enterprise in lithium battery production.
Last December, BYD unveiled F3DM hybrid automobile, which was driven by a lithium iron phosphate battery. This battery established its name for low-cost and high-efficiency.
Another domestic auto-maker, Chery Automatic Company, announced in February a new vehicle with a maximum speed of 120 km per hour.

Chen Quanshi, an expert with automobile engineering school of Tsinghua University, told the reporter on Wednesday that the country's auto industry was expected to enter a "golden era" with the support of government policies and a developed industry.
"The government should make more efforts to make new-energy automobiles popular, and further reduce production costs," Chen added.
The 13th Shanghai International Automobile Industry Exhibition, also known as Auto Shanghai 2009, will be held between April 20 and 28 in Shanghai.

Tuesday, April 14, 2009

Lithium: Bull market fundamentals and why invest in New Oil - Lithium for Electric cars? Updated TNR.v, SQM, WLC.v, CLQ.v, BYD, GOOG, TTM, GM, F, IOH, OIL,

We were recharging our own batteries recently and sharpen our sword. With all this intensive news flow in the field it is important to step back and make clear what is making this trend not just a trade for a couple of months, but The real Next Big Thing and The Bull Market.
We took a couple of books in order to have a better perspective on the general market conditions and particular coming Green-Tech Boom.
First one is "10 World-Changing Trends. The Jubak Picks by Jim Jubak.
"A January 2008 independent study by Nielsen NetRatings found more than 1 million people like you look to Jim for advice and commentary. That's nine times as many as any other investment columnist on the Web."
Second was "Clean Money. Picking Winners in the Green-Tech Boom by John Rubino.
"John Rubino is co-author, with GoldMoney’s James Turk, of The Collapse of the Dollar and How to Profit From It (Doubleday, 2007), and author of How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998). After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a Eurodollar trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with TheStreet.com and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He now writes for CFA Magazine and edits GreenStockInvesting.com."
We have thrown into the mix of wisdom some of Warren Buffet timeless observations, who is our bed time reading favorite and all unconventional stuff as usual is our own.
Our conclusions for your own thinking consideration are following:
Jim Jubak has identified ten Macro Trends in the world and we were happy to find out that his findings are already in our portfolio. Here is our contrarian soul takes over: with one million readers he is wildly followed - trends are becoming Macro plays.
John Rubino helped us to translate Obama Dreams into market applications: "Solutions for global warming or Peak Oil will be worth literally trillions of dollars..."
With recent announcements on aggressive Infrastructure building for Electric Cars in China, Europe and USA; news from Toshiba about quick-charge Lithium-ion batteries and Electric Cars models rolled over by all major automakers, it is clear for us that Alternative Energy and Mobility are converging into Electric Cars solution with Lithium becoming New Oil - commodity of the 21st century.
Lithium could become the Key to investment strategy into this "...next great bull market...its going to be bigger and longer lived ten tech-stock and housing booms combined, according to John Rubino:
1. Why clean tech will be the investment opportunity of our lifetimes.
2. Why the hottest sectors are also the most complex and risky."
We are not sure who will build the best battery, who will sell the most popular car (or will they make any money by doing it), we have read somewhere that at the beginning of automaking there were more then 3000 automakers and still remember Etoys, Commerce One and Ariba.
We are getting old, lazy and more and more would like to bet on a "Sure Thing": like selling ink to FED for them to print money and try to sell it to public for a par value.
Lithium for us, particularly after Toshiba news, is that Next Big Thing. Risk of the new disruptive technology still exists, but place in periodical table guarantees at least that there is no Lighter Metal which could be used for High Density Energy storage where it matters most - in Mobility revolution. All major automakers has taken Lithium-ion based batteries as a standard and money are pouring in from guys like John Doerr and Warren Buffet. It is good enough for us. We are using our Dragon approach.
But back to Jubaks Macro Trends - will Lithium as New Oil for Electric cars stand its test?
1. Go where the Growth is - and it means putting some money in the developing economies of China, India, Brasilia and the rest of the gang.
For China and India to endorse Electric Cars could be The Only solution to bring Mobility to at least part of the population and it is not a theory any more - it is happening fast. India's Tata Motors TTM has announced first Nano with a basic price tag of US2000 which opens Mobility to vast consumer base, electric version to be rolled out later. There is an interesting observation that for first time buyers in China and India, who never experienced performance of gasoline based engines, it will be easier to sell Electric Cars, but here we think that running cost and improving performance will be really the key. Conclusion: it is happening now and Lithium play is in line with High Growth play.
2. The Rise of the Global Blue chips. These companies are emerging from the world's emerging economies to challenge Coke, IBM, and Wal-Mart on the global scale.
We have mentioned Tata Motors TTM already, if you missed they own iconic Jaguar and Range Rover among other things by now. These deals are actually killing their balance sheet now, but they are ready to sell their Nanos in Europe and USA as well. GM and Ford are crying now about Japanese automakers, wait until Chinese and Indian guys will start make cars and batteries for that matter. BYD company from China with Warren Buffet is not a bad company as well.
"China has about 200 lithium battery enterprises, accounting for40 percent of the world battery production. BYD company limited is not only an auto producer but also the leading enterprise in lithium battery production"
All these guys in the Electric Cars sector will need Batteries and Lithium supply secured for years to come to make them.
3. The world is getting wealthier and older at the same time.
Jubak has put here different meaning to apply this Trend to retirement money managing. We will make an application of this Demographic trend to Lithium. In retirement planning running costs are taking over above other considerations. In the Developed world Electric Mobility Unit could become the solution for aging Baby Boomers: they are Empty Nester's, need low running cost: Electric Cars now are estimated to be from 0.25 to 0.5 USD per gallon equivalent, need security, driving range is local - it must be small, secure and easy going. Think about not cars, but something futuristic with anti collision devise based on GPS and easy to get in and out. Once energy storage solution will be improved based on Toshiba claim for Lithium-ion batteries design of full Electric Vehicle could be out of today's GM and Ford comprehension: you do not need to play around transmission any more, actual electric motors could be inside the wheels.
4. Inflation, the beginning of new era.
Lithium as other commodities will be driven by Supply and Demand and with Inflation its price will be rising. More money chasing the same amount of Real Hard Assets will put prices up even without Increasing Demand. Inflation is a monetary policy decision to go for Growth. Recent Obama policy for growth will have Inflation as an outcome.We are well positioned with Lithium in this macro Trend as well.
5. Energy. As the world runs out of cheap oil.
It is how we started our Next Big Thing investigation.
We are still thinking that there is more life in the world than just counting effects of Budget Deficits and Quantitative Easing complications for sovereign currencies. After all our Gold and Silver plays are so far from close to our heart drive and energy of new and coming - it is almost like slipping into Dark Ages when the main drive is survival, are we all gonna end with miserable army trucks moving our gold bars? Is there any life at all after Obama Stimulus? What Chinese are gonna be driving for that matter? We are looking for new drives, new ideas, once we move into Inflation stage of recovery from second Great Depression - what will be hot? Gold and silver will preserve value and maybe even will become Reserve Currency - we are in this field already. What is next? Energy security? Peak oil? As financial system became totally unsustainable because of cheap credit, corrupted Agency relations and pure Greed, so the basis of modern life based on cheap energy consumption is becoming the next bubble to burst. Will it lead to downsize when oil will be used mostly for Military Applications? You can not fight the war with batteries so far, only oil can drive tanks, fighter jets and aircraft careers. With all rock style accessories without any substance so far Obama is keen on one thing: energy security - he is ready to debase the currency US Dollar, to cut Medicare, to tax "rich", but he is pushing on alternative energy and energy efficiency. He must be known something that we do not believe so far: cheap oil is gone and even stronger - oil is gone for ordinary consumer within next twenty years.
6. The Commodities crunch. Natural Resources demanding world.
Here our Lithium idea is spot on the money. It is price will be driven by restricted by Nature Supply and by rising Demand if all our Trends will work out for our application. It is already one of the major concerns. Demand could come almost overnight in mining terms and exploration and mining development are taking years and so far only handful number of companies are in the game in our High Leveraged Junior sector - who are developing future Lithium projects to become mines for new Bull.
7. Food. Tne new Oil.
We will send you to the book for understanding of this Trend. For our Lithium theme it means, that ethanol is not the solution to mobility so Brazil will be welcome to our Lithium Demand club - they will make more money on selling food then ruining the old new cars on it. Gas will not be cheap any more as well - Food Demand will push Agri business to the edge of using more and more fertilisers for which production Gas is an essence. Food production and its Distribution will become Lithium solution based as well.
8. The Environment, at last.
Here Lithium is The Play. Lithium based solutions are providing necessary Medium for all other Clean Energy Sources in the High Energy Intensive Mobility applications. Lithium-ion batteries are a storage of Energy. Electric cars are as clean as their Energy source - Electricity Generation and here you are welcome to John Rubino. There are some estimations that in USA off peak power is enough for recharging at least 10% of recent car fleet overnight. Nuclear power will be the solution on mass scale in our opinion, but you can chose from Solar, Wind, Geothermal and other alternative opportunities as well.
11. Hidden Technology. Tech stocks are dead; long live technology investing.
Lithium here is the necessary material to make all this Clean Tech and Green Energy revolution happen in the Mobility rim. Also it is important that other REE are found with Lithium like Tantalum which is necessary for High Technology Applications like super capacitors and High End Optics.
12. The stability premium.
Even we can get tired to invest in all Mambo Jumbo and places which are run by despots of different kinds, who will put shadows on our Green Dreams by eating babies or taking our properties overnight. With recent high volatile markets stability will receive its premium and our Next Big Thing Lithium must be based on a stable grounds. It is becoming the matter of Energy Security. This Bull is in its infancy and we would like to run it for years to come in a relatively secure environment. So we are very pleased that we can find stable from political point of view places for our Lithium Play in good old Canada and some top experts in the area are based there as well.
Do not forget that apart from recognisable Warren Buffet quotes all unconventional stuff about Juniors and Lithium combined in the Next Big Thing is our own made, there are No Investment Advises Here and before further study of our ideas, names and links remember Berny Madoff twist to the Effective Market theory - do not expect anyone to make money for you apart from yourself. Do your homework, read our legal disclaimer and welcome to the Next Big Thing.
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Gold: 3D processing of airborne magnetic data identifies additional copper-gold porphyry targets at the Gaoua project VTR.to, TNX.to, SNU.v, NSU.to,

Barrons blasting Jim Sinclair's Tanzanian Royalty TNX.to will make more advertising to Africa Gold plays then they think. Volta Resources is one of our Safari candidates for accumulation this summer doll drum season.
TORONTO, April 2 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX:VTR - News) is pleased to announce that 30 copper-gold porphyry targets have been highlighted from three dimensional ("3D") processing and interpretation of high resolution airborne magnetic data recently obtained on the Company's Gaoua copper-gold porphyry project in southern Burkina Faso, West Africa.

Gold: Sunridge Advances Work on Gupo Gold Deposit & Medrizien Prospect Yields Grab Samples Up to 319 g/t Gold SGC.v, SNU.v, NSU.to, HUI, XAU, FCX

We already had our fun in Majors this year GDX, SLW, SSRI, AUY on option side. Now they have advanced to more reasonable levels and we are moving Down the food chain recently. Without too many noise FCX has announced first Copper production from Tenke Fungurume in Congo, Lundin Mining get out from free fall to as low as 0.7CAD and now is trading above 2.0 CAD. People are seriously talking about new Bull in the market and Copper is above 2 USD/lb. Now or in two years time we have the direction where the market will go with all these liquidity and Inflation coming. It is time to go on a Safari and accumulate fallen angels which nobody wants and you can get them almost for cash value price. What is to look for here as catalyst? Nevsan Resources NSU.to development in Eritrea.
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 1, 2009 -- Sunridge Gold Corp. (CDNX:SGC.V - News) is pleased to provide updates on the continuing work on two of the Company's gold projects, the Gupo gold deposit and the Medrizien gold prospect, located on the Asmara project, Eritrea. To date, Sunridge has primarily focused on its three base metals projects, Emba Derho, Adi Nefas and Debarwa. With a scoping study nearing completion on the large Emba Derho copper-zinc-gold deposit, management of Sunridge is now commencing more detailed exploration and development work on the gold deposits and prospects in close proximity to Emba Derho with the objective to add near surface gold resources to any future mining operations there. The Emba Derho deposit is only about 500 meters from Medrizien and approximately 6 kilometers away from Gupo.
Gupo Gold Deposit:
The Gupo gold deposit is one of a number of gold deposits on the Asmara project that was mined in the early part of the 20th century by Italian colonists. Gupo is a near surface, structurally controlled gold deposit that was previously mined from a number of small open-pits that stretch over a two kilometer strike length.
Sunridge has recently engaged AMEC Americas Limited to complete a comprehensive data review of all historic drill data on the Gupo deposit. The review will include a geostatistical analysis of all data and evaluation of the quality assurance and quality control programs of previous drill programs. It is anticipated that this work will allow for an updated resource estimate to be completed in the near future. The results will also assist in planning the next phase of drilling at Gupo.
A large database exists for the Gupo Gold deposit as it has been subject to three previous drill campaigns as follows:
- 1996 - 1998 - La Source Division Exploration ("La Source") drilled 124 reverse-circulation drill holes and 5 diamond drill holes;
- 2002 - Sub-Sahara Resources drilled 1 diamond drill hole;
- 2007 - Sunridge drilled 26 combination reverse-circulation/diamond drill holes.
Based only on the La Source drilling information, currently, the Inferred Resource at Gupo is 1,965,000 tonnes at an average grade of 2.99 g/t gold containing 189,000 ounces of gold to a vertical depth of 80 meters. Sunridge management believes that this resource can has the potential to be expanded and upgraded from the inferred to indicated category by the inclusion of the additional 27 drill holes completed by Sub-Sahara and Sunridge as well as by further exploration drilling.
Medrizien Gold Prospect:
The Medrizien Gold prospect was also mined by the Italian colonists and was one of the largest gold producers in the area by both open-pit and underground methods. Sunridge management has recently completed sampling and mapping of the Medrizien prospect in order to develop drill targets. A total of 65 rock grab samples were taken over the length of the prospect of which 57 samples were from the surface showing of mineralized quartz veins and altered halo of volcanic rocks. The results showed 10 samples with assays over 1 g/t gold with these sample values averaging 12.13 g/t gold with the highest assay being 74.7 g/t gold. The 8 rock samples taken from the old underground workings range from 0.14 g/t up to a value of 319 g/t with an average of 51.32 g/t gold.
The gold mineralization in the Medrizien Gold prospect varies in thickness from a few meters up to 25 meters over a 3 1/2 kilometer strike length and occurs in a stockwork of quartz veins associated with sulphides (pyrite and chalcopyrite) and in a surrounding halo of sheared volcanic rocks with sericite and pyrite.
About Sunridge
Sunridge Gold Corp. is a mineral exploration company focused on the acquisition, exploration, discovery and development of precious and base metal projects. The company is currently conducting exploration on the Asmara Project in Eritrea. The Company has 62.4 million shares outstanding, approximately $6 million in cash and the Company trades on the TSX Venture Exchange under the symbol SGC. For additional information on the company and its projects please view the slide show on our website at www.sunridgegold.com or call Don Halliday or Greg Davis at the numbers listed below.


Gold: Canadian Gold Hunter Completes Initial Phase Drill Program at Caballo Blanco, Mexico CGH.to, SAX.to, OK.v, FST.v, LUN.to, FVI.v, PAA.v, SNU.v

As you can mention from our previous post about Orko Silver OK.v you were able to Buy OK.v at levels as low as 0.3CAD last October and now Pan American Silver is making a PP at 1.25CAD. Canada Gold Hunters CGH.to is forgotten by market story about Lundin Lukas Gold Exploration play in Mexico. News on recent drilling are not spectacular, but solid with large open pit mining model in mind. If Gold will stay above 1000 USD/oz in the future this kind of play will be back onto the radar screens. Lukas Lundin apparently has some breath now with Lundin Mining LUN.to above 2.0 CAD and financing done to address liquidity problems, Tenke Fungurume has started first Copper production, so maybe he will have some energy for his small Exploration plays. First step is consolidating at this ridiculously cheap levels and merger between CGH.to and Suramina Resources SAX.to his Argentina and Chile plays in Gold, Silver and Copper to be closed shortly. He has a few other companies engaged in Africa like Sanu Resources SNU.v, Fortress Mining FST.v in Russia among others. Suramina Resources SAX.to has received a nice premium to its trading in the market in all share deal, so some shopping could be warranted at this levels.
"VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2009) - Canadian Gold Hunter Corp. (TSX:CGH - News; the "Company") announces that it has completed the initial follow up phase diamond drill program on the Caballo Blanco project in Veracruz, Mexico. The program consisted of 14 holes totaling 3,603 metres.
Significant assays from the latest drilling are tabulated below."

Silver: Pan American Silver and Orko Silver to Jointly Advance the "La Preciosa" Silver Project. OK.v, PAA.to, FVI.v, ASM.v, EZP.v, MGN, RVM.to, SBB.v


M&A is the name of the game: Juniors have the Goods and Majors have to pay to get them into the production pipeline. This is the kind of news strong shareholders of Orko Silver OK.v deserved in this market. Strong partner for development with 100% financing until production for 55% of the mine and PP above the market price. Will Pan American PAA.v become the consolidator in Mexican plays or Silver Standard SSRI will make its move now? On the plate are Fortuna Silver Mines FVI.v, Avino Silver and Gold Mines ASM.v, Esperanza Silver Corp. EPZ.v to name a few. With all those bail out money and debasing of Us dollar run away Inflation is in the cards, Gold and Silver will make its move before long and these prices will be remembered as bargains.
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 14, 2009 -- Pan American Silver Corp. ("Pan American") (Toronto:PAA.TO - News)(NasdaqGS:PAAS - News) and Orko Silver Corp. ("Orko") (CDNX:OK.V - News) are pleased to announce that they have reached an agreement for the joint development of Orko Silver's La Preciosa silver project in the state of Durango, Mexico.
The Project
The La Preciosa silver project and adjacent mineral concessions of Santa Monica and San Juan, covers 32,422 hectares of contiguous mining claims on which Orko has already defined an indicated and inferred mineral resource. The indicated resource is estimated to comprise 10,637,000 tonnes, grading 185 grams of silver per tonne and 0.27 grams of gold per tonne, for a total of approximately 63,000,000 ounces of silver and 94,000 ounces of gold, while the inferred resource is estimated to comprise 12,087,000 tonnes, grading 185 grams of silver per tonne and 0.25 grams of gold per tonne, for a total of approximately 71,700,000 ounces of silver and 97,000 ounces of gold. The primary discovery is the Martha vein, which ranges from 2 to 40 meters in thickness and has been traced over 3.5 kilometers on strike. Martha remains open at depth and along strike, as do several other promising veins and earlier stage exploration targets within the remainder of the La Preciosa claims. For more details on the resource estimates, refer to the technical report by Mine Development Associates ("MDA") dated March 31, 2009. George Cavey, P.Geo., Orko's Vice-President, Exploration, is the Qualified Person who takes responsibility for the technical disclosure in this news release.
The Joint Venture Agreement
Pan American and Orko have agreed to form a joint venture to develop the La Preciosa project. Pan American will contribute its demonstrated mine development expertise, as well as 100% of the funds necessary to develop and construct an operating mine, in consideration for a 55% interest in the joint venture, while Orko will contribute its exploration expertise and the La Preciosa project and related concessions to retain a 45% interest.
Over the next 36 months, Pan American has agreed to spend an estimated US$16 million at La Preciosa to conduct resource definition drilling, acquire necessary surface rights, obtain permits, and ultimately prepare and deliver a feasibility study to maintain its interest in the Joint Venture. Furthermore, Pan American has agreed to spend a minimum of US$5.0 million in the first 12 months of the development program to maintain its interest in the Joint Venture, of which a minimum of US$2.5 million will be spent to continue to explore the highly prospective land package that Orko is contributing to the Joint Venture.
Key terms of the joint venture and the development strategy for La Preciosa include:
- Pan American will be the operator for the joint venture and has agreed to share with Orko all technical information relating to the development of La Preciosa,
- A joint venture Management Committee will be formed, with representation from both Orko and Pan American, which will be responsible for monitoring the project's development,
- Any mine construction decision and subsequent operating budgets will require the unanimous approval of the Management Committee,
- Pan American has agreed to a "standstill" with Orko for as long as the joint venture is in operation.
Commenting on the agreement, Mr. Geoff Burns, President and CEO of Pan American stated: "I am extremely pleased to be partnering with Orko Silver in the joint development of La Preciosa. Orko has done a first class job in defining a very significant silver resource and the project is at an ideal stage to take the next step towards future production. Having just completed the development and construction of two mines, we had been actively seeking opportunities to re-deploy our talented team of mine builders. The timing is right, the location is right and the resource seems right to allow for some real value creation and growth for both Pan American's and Orko's shareholders."
Mr. Gary Cope, President and CEO of Orko commented: "We have long believed in the value of La Preciosa and it is rewarding to know that Pan American has recognized that same potential by committing both its capital and human resources to the project. We believe that with further exploration we should be able to define a significantly larger silver resource. Most importantly, we have structured a Joint Venture which is truly an open partnership. Orko's shareholders will benefit from the financial capacity and extensive mine development expertise that Pan American brings to the joint venture. As such, this transaction significantly reduces the financing and dilution risk for our shareholders. We believe this will be a strategic advantage for Orko and we look forward to working closely with Pan American's team as La Preciosa moves toward production."
GMP Securities L.P. and BMO Capital Markets acted as financial advisers to Orko and have both provided fairness opinions that the transaction is fair from a financial point of view.
Private Placement
Coincident with the formation of the La Preciosa joint venture, Pan American has also agreed to purchase, on a private placement basis, 4,000,000 common shares of Orko at a purchase price of CDN $1.25 per share. Pan American's investment in Orko's common shares is subject to certain anti-dilution and pre-emptive rights to participate in future financings of Orko. The price represents a premium to the current market price and further reflects Pan American's confidence in the value of the project. The private placement is subject to acceptance by the TSX Venture Exchange.
About Pan American Silver
Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company, and to achieve this by increasing its low cost silver production and its silver reserves. The Company has eight operating silver mines in Mexico, Peru, Bolivia and Argentina.
About Orko Silver
Orko Silver Corp. is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in Durango State, Mexico.

Lithium: Toshiba has quick-charge hybrid car battery-Nikkei TNR.v, SQM, WLC.v, CLQ.v, GOOG, AAPL, RIMM, OIL, OIH, FXI, GM, F, TTM, BYD

News on Lithium are coming faster then we can blog them, if only our Juniors can find Lithium as fast, it looks like a lot of it will be needed very soon.This claim from Toshiba will make not only Electric Cars as fast as "normal ones", but recharging their Lithium Batteries will be as normal as usual custom. Claim is really impressive and we will look for further confirmation of this breakthroth tecnology.

Thomson Reuters
Toshiba has quick-charge hybrid car battery-Nikkei04.13.09, 03:03 PM EDT

"NEW YORK, April 13 (Reuters) - Toshiba Corp is ready to mass-produce a quick-charging lithium ion battery for hybrid vehicles with the highest electrical output for a battery of this kind, the financial daily Nikkei said in its Tuesday edition.
The paper said Toshiba ( TOSBF.PK - news - people ) has quadrupled the output density of its Super Charge ion Battery, or SCiB, to 3,900 watts. Output density is the power output per kilogram of the battery's weight.

It said the battery can be charged in as little as 90 seconds (??! - S.), making it suitable for plug-in hybrids, and can be recharged more than 10,000 times.
Nikkei said Toshiba has started shipping the battery to major Japanese, U.S. and European automakers on a trial basis.
It said Toshiba has also developed a lithium ion battery with a high energy density aimed at electric vehicles that will be able to discharge power over a long duration and hopes to start sample shipments in the fall.
Nikkei said Toshiba now makes 150,000 SCiBs a month but plans to start building a plant this fall that would make about 2 million batteries a month on start-up, with hopes for expansion to about 10 million by about 2015.
(Reporting by Gerald E. McCormick; editing by Richard Chang) Keywords: TOSHIBA/ "

Lithium: Recharging solutions for Electric cars. TNR.v, SQM, WLC.v, CLQ.v, GOOG, TTM, GM, F, OIL, OIH, RIMM, BYD

It is a pity that City boys are now employed in McDonalds and Domino Pizzas - we will not see a lot of these beauties on the old streets for a while.

But these babies will make money to automakers and their suppliers. Recharging problem is getting addressed all over the world and once batteries will improve to 200 miles range, electric cars will be a hit. Long recharge hours is not a problem if you are at home even now, longer range will clear this issue for vast majority modern commuters.



Tesco is the largest chain of supermarkets in the UK. 20 minutes charge time does not sound so long if you are shopping. Another solution for Emerging markets and cheap electric cars will be standard Energy Units based on lithium-ion and Lease them when selling the car to the customer. Energy Unit or batteries is one of the most expensive parts of any electric car now. Instead of one time charge customer will pay monthly lease on Energy unit and can replace it at any recharging station within minutes, leaving empty one behind.





"Forsaken gas stations in London may be going from gassy to green this year thanks to Evoasis. The company recently announced its intention to transform the stations from gas pumps to slick new high-speed electric vehicle recharging stations.
Recharge times for electric cars will be approximately 20 minutes and, in the case of the first station, will include 12 charging spots. They will include a lounge that will sell food and drink to the waiting customers. This first of six such stations will go up on Grosvenor Road.
Evoasis is also looking to work with Tesco and the Westminster council to provide stand-alone charging points.
Geoff Hoon, Britain’s transport minister, recently stated that since 2004 almost 5,000 electric vehicles have been registered for the road with 1,322 coming from last year."

Lithium: Mitsubishi’s main hurtle for producing the iMiEV is whether or not GS Yuasa (the battery producer) can secure enough lithium. TNR.v, SQM

Interesting to see this comment on Lithium supply from one of the aggressive players in Electric car market. Mitsubishi is ready to be involved into Infrastructure development, will automakers become Strategic Investors in Lithium to secure stable supply?
"At a Mitsubishi press conference at the New York Auto show today, it was announced officially that the Mitsubishi iMiEV electric vehicle will be available for purchase in the US.
The iMiEV, which is proving to be a hit in test drives, has long been rumored to be coming to the US, but now it’s a fact. Although there is no exact date for release of the Mitsubishi iMiEV but it is expected before 2012.
Mitsubishi’s main hurtle for producing the iMiEV is whether or not GS Yuasa (the battery producer) can secure enough lithium for the lithium-ion batteries, although it should be noted that Mitsubishi production plans were recently increase to 20,000 iMiEV’s per year.
The iMiEV will (thankfully) get a new name when it comes to the States. We aren’t huge fans of the current acronym, which stands for Mitsubishi innovative Electric Vehicle.
The tiny iMiEV boasts a 63-hp electric motor that can get it up to a top speed of 81 mph. Whiel it takes about seven hours to recharge the battery from 220-volt outlets or a whopping 14 hours, if using a 110-volt source. Fortunately there’s a three-phase ‘quick charger’ that can charge it to 80 percent capacity in about 30 minutes."

Lithium: Things are moving fast from China to Oregon. TNR.v, SQM, WLC.v, CLQ.v, GOOG, TTM, GM, F, BYD, FXI, OIH, OIL, RIMM, AAPL

One more argument against wide spread penetration of Electric Cars is about to be proven weak: bailouts will provide necessary Infrastructure funds in line with Obama vision and Inflation will bring Oil higher again providing necessary economical substance. 0.25 to 0.5 USD per gallon equivalent will be a good incentive to buy Electric Car with Oil above 75 USD/b. Lithium supply will be next necessary precious commodity for this Mobility revolution and this story make its way to the headlines this summer.
"This week at the New York Auto Show Mitsubishi made the announcement that they would assist in building a state-wide charging network for electric cars in Oregon.
Mitsubishi Motors North America CEO Shinichi Kurihara announced the commitment the same morning that it was announced that the Mitsubishi iMiEV would be coming to the United States.
Mitsubishi’s contribution will come in the form of input to state while it builds the electric vehicle charging stations.
This makes the second partnership for the state of Oregon’s EV charging station project. Nissan was in Portland last Monday with a prototype of a 2010 electric car which is expected to be sold this year."

Monday, April 13, 2009

US dollar Collapse: Bearish flag weekly. GDL, SVL, HUI, XAU, DXY, TNR.v, RMK.v, MGN, SBB.v, OK.v, FVI.v, FXI, HAU.to, AMM.to, CGH.to, ASM.v, CZX.v

Technically US Dollar is very weak: recent mumbling between 86 and 84 levels has formed Bearish Flag with resolution below 82.87.

Barrons has blasted Jim Sinclair and his company Tanzanian Royalty - shorts must be desperate, Gold is positioned itself before the major move with the US Dollar resolution from this pattern.
Latest US Dollar fundamentals Horror Review:

Lithium and Uranuim - Is it base for Obama's Energy Security plan? TNR.v, SQM, WLC.v, CLQ.v, TTM, GM, F, GOOG, AAPL, RIMM


Take a good matter, add some sense of urgency and new Bull will be in the making: Lithium as an Energy storage solution for mobility and Uranium as the only scalable alternative to produce electricity.


Obama, Lithium, Uranium and Rodinia



by Richard (Rick) Mills, AheadOfTheHerd.com March 30, 2009




President Obama has made global warming one of the key issues of his administration and it’s an extremely ambitious agenda he’s bringing to the table. Included in his agenda is a pledge to eliminate oil imports from the Middle East and Venezuela within a decade and to slash his country’s carbon dioxide emissions by more than 30 per cent by the year 2020. If President Obama is to successfully implement his energy doctrine his administration has to do two things:
1.Wean America off using fossil fuels (coal, oil and natural gas) to produce energy.
2.Develope alternative clean energy sources within the US to avoid energy imports.
This Clean Energy Agenda will be spearheaded by White House Chief of Staff Rahm Emanue and complemented by hard line green leadership in both the House and Senate. This new committee has stated it will be acting quickly and decisively to reduce global warming and ending US dependence on foreign oil.LithiumThe following quote makes it very clear two of the clean energy solutions being promoted by this administration are electricity and batteries.“Today, we have the chance to achieve a real breakthrough: the plug-in hybrid…Hybrid engines save gasoline by switching back and forth from battery to gasoline power……With a plug-in hybrid, commuters can drive back and forth to work, recharge their cars overnight, and go a month or more without a trip to the gas station.” White House Chief of Staff Rahm Emanuel.


TNR Gold TNR.v Appoints Dr. Frederick W. Breaks to Advisory Board. TNR.v, SQM, WLC.v, CLQ.v, GM, F, TTM, BYD


CS. In our Junior DD investigation management is always the first check point. Should we try outsmart Warren Buffet who says that he never did a good deal with a bad people? On another hand he mentioned that business should be simple that even the dumb person could run it, because one day it will. Our philosophy is to put 10% of our Capital in order to receive 100% return. Few will fail, few will reward handsomely if we did our homework right. We can not allow in our investments in speculative high leveraged Junior plays anything which will be less then the best available. Too many risks are already in the game. Management is the main competitive advantage in this game: to secure the best deals - properties of merit, to finance the development and to attract industry majors, who are ready to pay the big buck down the road for successfully developed resources. That is why we are following plays with Lukas Lundin or Robert McEwen. Not everything they touch will become Gold, but a lot of things did.


TNR Gold TNR.v attracted Dr Breaks a major expert figure in the REE market with few discoveries behind his belt, junior is apparently betting on Lithium story and moving fast putting properties and people able to develop them together.


"VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2009) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR - News) is pleased to announce that Dr. Frederick W. Breaks has been appointed to the advisory board.
Dr. Breaks is a Ph.D. and Professional Geoscientist who is well known as a Lithium and Rare Earth Elements (REE) expert in Canada. A proven explorer, he discovered two significant lithium-rich deposits: Avalon Venture Ltd.'s Big Whopper pegmatite near Kenora, Ontario and Houston Lake Mining Inc.'s Pakeagama Lake pegmatite in the North Spirit Lake area of Northwestern Ontario. His ability to create genetic and exploration models of lithium-rich, pegmatite deposits was developed during his career at Ontario Geological Survey where he authored and coauthored over 120 peer-reviewed scientific papers.
President Gary Schellenberg comments, "We are pleased to welcome Dr. Breaks as an advisor to our company. I am confident he will play a pivotal role in the company's worldwide search for Lithium and REE projects both from a technical standpoint and through his network of industry contacts." For more information about TNR's Lithium properties and Dr. Breaks, please visit our website at http://us.lrd.yahoo.com/_ylt=AgapU76i8IHnhr6Qe4BxnHCyf88A/SIG=1102k56q5/**http%3A//www.tnrgoldcorp.com/.
ABOUT TNR
TNR is a diversified metals exploration company focused on identifying new prospective projects globally with 19 properties currently in its portfolio.
The recent acquisition of Lithium projects in Canada confirms the company's commitment to project generation, market diversity, and building shareholder value.
On behalf of the board,
Gary Schellenberg, President"


More on Dr Breaks discoveries:


The Big Whopper, one of only four giant economic rare metal pegmatites worldwide, is set to become a producer of the highly valued lithium mineral petalite (LiAlSi4O10) used in glass, ceramics and the specialty glass-ceramics familiar as Corningware® and the new ceramic stovetops.



The Pakeagama Lake pegmatite, located 160 km north of Red Lake, is one of the largest and most highly evolved rare-element-mineralized pegmatite systems in the Superior Province of Ontario, Canada. It is a LCT pegmatite enriched in Li, Cs, Rb, Ta, Sn etc.


Lithium race is on: Renault-Nissan Lands in China, Obama Buys Hybrid Cars. TNR.v, SQM, WLC.v, CLQ.v, F, GM, TTM, RIMM, GOOG, AAPL

Another angle on recent developments in Electric cars, all major news makers are in: China and Obama - will Lithium really take off to become White Gold? USA and China are starting this time again from very different positions, but China seems to have all advantages this time: 2 trillion reserves against 2 trillion budget deficit in USA and ability to leapfrog old technologies and Oil Old Boys Club in order to build new infrastructure needed for Electric Cars development on massive mass production scale. But do not discount US Corp totally here: race is going to be interesting - it is still for a while the largest economy in the world even in its down slope cycle, part of all those printed money will find its way into New Technology plays with Energy Security agenda pushed by Obama. Old and new rising powers will drive new Bull - CleanTech, Alternative Energy and Mobility convergence for the mass market introduction in the form of Electric Car with industry accepted Lithium based batteries as energy storage solution. We are interested as usual in High Leveraged plays in a new Bull which are early into the game and are in acceptable country risk/reward matrix: so far only a few Juniors are rushing into the Lithium play.
Ucilia Wang

The Renault-Nissan Alliance said Friday it will help the Chinese government map out plans to popularize electric cars.
The automaker will create a detailed plan mapping out a battery-charging network and a marketing program. The alliance will do all these work for the Ministry of Industry and Information Technology. Nissan said it also is working with the city of Wuhan on a pilot project to create the infrastructure for electric cars.
The alliance plans to start selling electric cars in China in early 2011.
The alliance has been aggressively wooing governments from around the world to build markets for all-electric cars. It has inked similar deals in Japan, Israel, Denmark, Portugual, Monaco, the United Kingdom, France, Switzerland, Ireland and the United States.
Other carmakers and players in the auto industry also have been lobbying for government support to provide incentives for consumers to buy electric cars and to create policies that would smooth the process of setting up charging networks.
Earlier this week, Mitsubishi said it plans to work with Oregon and utility Portland General Electric on developing a charging station network. The utility is developing the network, and Mitsubishi said it’d provide the all-electric i MiEV for testing the network. The automaker hasn’t said when it will start selling the i MiEV in the United States. Mitsubishi plans to launch the car in Japan this summer.
The Portland utility and the state of Oregon have a similar deal with the Renault-Nissan Alliance.
While the state and local governments in the United States are looking ahead to promote low- or zero-emission cars, the federal government is focusing on helping the domestic automakers now.
President Obama announced yesterday that the government would buy 17,600 fuel-efficient cars from American automakers for its fleet. The administration plans to spend $285 million by June to buy those cars from General Motors, Ford and Chrysler, reported Washington Post. That would include 2,500 hybrid cars.
The General Services Administration will make the purchase. It also plans to spend $15 billion to test advanced technology cars in the federal fleet, including buses that run on compressed natural gas and all-electric cars.

Lithium: China is betting on Electric Cars. TNR.v, SQM, WLC.v, CLQ.v, GM, F, BYD

This is one of the conditions for Lithium to become Next Big Thing - leapfrog of Emerging markets to new technologies.

By Hao Di (chinadaily.com.cn)Updated: 2009-04-13 16:59
The Renault-Nissan alliance signed a cooperative memorandum on promoting the use of electric vehicles with China's Ministry of Industry and Information Technology (MIIT) on April 10, becoming the first foreign automaker to ink such an agreement with the Chinese government.
Under the memorandum, Nissan will provide information about the development of electric vehicles and formulate comprehensive plans on setting up and maintaining battery recharge networks and promote the wide use of electric vehicles.
Nissan aims to debut its electric cars produced by Dongfeng Nissan in the Chinese market in 2011, one year ahead of schedule, China Business News said.
Wuhan, capital of central China's Hubei province, will be the first pilot city in Renault-Nissan's zero emission program.
In mid-April, the MIIT will discuss issues concerning the industrialization of electric vehicles and supporting facilities with automakers including Nissan, General Motors, Daimler, Dongfeng and BYD, along with the State Grid Corporation of China (the country's biggest power supplier) and local government regulators.
Earlier, the National Commission of Reform and Development had publicized supporting policies for new energy vehicles and launched a pilot program in 13 cities that will subsidize the use of new energy cars in the public transport system.
Although the memorandum marks a key step in China's endeavor toward the mass use of electric vehicles, there are still many barriers that may hinder the development of electric cars in China.
"The biggest problem about the wide use of electric vehicles lies in supporting facilities," China Business News quoted a source with Nissan China as saying. It will cost tens of billions of yuan to set up battery recharge systems that are as convenient as gas stations.
Additionally, China is yet to set standards and rules that are closely related to the manufacturing and use of electric vehicles.