Silverstone Resources SST.v plans to more then double Silver sales in 2009. SST.v, SLW, CDNX, XAU

Very strong Technical picture here. STO is positive, MACD has Buy cross over, RSI is confirming new highs. Strong white hammer is projecting move to 1.5 CAD resistance level with Silver moving up.

Silverstone Reports 2008 Silver Sales of 1.7 Million Ounces and Forecasts 2009

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Feb 5, 2009 -- Silverstone Resources Corp. ("Silverstone") (CDNX:SST.V - News) reports sales of 1,669,000 ounces of silver in 2008. On November 21, 2008, Silverstone completed the purchase all of the payable gold and silver from Sherwood Copper Corporation's Minto Mine in the Yukon over the life of mine starting December 1, 2008 (see November 21, 2008 press release). Silverstone has received advance payments on approximately 3,700 ounces of payable gold and 33,000 ounces of payable silver from the Minto mine as at December 31, 2008 that will be recorded as sales in the first quarter. Silverstone purchased 2008 production at an average cost of US$3.97 per ounce. The cost of silver is fixed at less than US$4.00 per ounce through 2010.
-------------------------------------------------
Year Ended
Q4-2008 2008(1)
-------------------------------------------------
Ag (oz) Ag (oz)
-------------------------------------------------
-------------------------------------------------
Cozamin 290,000 1,185,000
-------------------------------------------------
Neves-Corvo 147,000 484,000
-------------------------------------------------
-------------------------------------------------
Total 437,000 1,669,000
-------------------------------------------------
Note: Audited results for the year ended December 31, 2008 will be
reported in April 2009.
(1) 2008 totals may not match the totals from individual quarters
due to post-quarter adjustments.
2009 Sales Forecast (2)
----------------------------------
Ag Eq.(3)
(000's oz's)
----------------------------------
----------------------------------
Cozamin 1,350-1,450
----------------------------------
Minto 2,400-2,600
----------------------------------
Neves-Corvo 450-550
----------------------------------
----------------------------------
Total 4,200-4,600
----------------------------------
(2) Silver sales forecasts are based on 2008 actual metallurgical
recoveries of silver to concentrates at the various operations
combined with forecast grades and production and existing smelter
contracts for the different concentrates.
(3) Silver equivalent ounces are calculated by using a ratio of 1 ounce
of gold is equivalent to 70 ounces of silver.
Mr. Hugh Willson, P.Geo., Vice-President, Exploration of Silverstone, who is a "qualified person" under National Instrument 43-101, has reviewed and approved the technical aspects of this news release.

SilverStone Resources SST.V - small brother of Silver Wheaton SLW, Panic Forced Selling is over.

Google GOOG Below 250 USD intraday! Dow plus 500 points Rally, Gold at 800!

Time when the prediction was made that Google could deep below 250 in a severe Bear market valuation passed in our memory as so distant and happy that it is almost not worth mentioning. But the call was done and was right on the money.

http://sufiy.blogspot.com/2008/07/google-goog-bear-case-contunued.html

Other observations could come into life with recent developments. Announcement about the new Head of Treasury fired the rally in the market. Yesterday all hope was lost: VIX made break up, DOW has violated Bearish Flag downwards and US Dollar almost broke up to upside. Today was the different story and first Gold start to rally and overtake very important resistances on the way to 800. HUI, GDX and all Goldies have followed in unison with gains up to 31% in Barrick Gold ABX. Is it a turning point? Very much could be: in DOW we have a Bullish Engulfing Reversal candle pattern, last capitulation could exhaust the market pretty much and they should do something over the week end to fix the situation with CITIGroup C. The most important is that gold rallied even with still rising US Dollar and maybe our endless battle with gravity is over. Goldies in HUI and GDX have formed very strong reversal and never retest the lows in recent sell off it could be very strong positive divergence from the general market which is in play again. So we can forget charting miserable destiny of financials in the DOW and concentrate back on our Bull in Gold, Silver and Commodities ones investors will come back to their common senses.

With the new guy in charge in Treasury we can expect understanding of the currency question and that the strong dollar will kill economy in Deflation spiral. Weak US Dollar is the medicine from this meltdown.

Shorts will be served Fried next week particularly in Gold and Silver and their producers Shares.

SSRI, SLW, AUY, GDX, SST.v, TNR.v, CZX.v, OK.v, BVG.v

Silverstone Resources SST.v - landing spot for Ben's Choppers

All those charts meditations on the way of things will stay without any positive implication if we will not be able, my dear Diary, to make some money from all what is left from our devotion and common sense practise after mind disturbing dollar levitation. So where are those waters to fish for what will be left of all those trillions coming on after paying bonuses to bail out bankers? We are pleased to help Mr Obama, because we all need weaker dollar and some positive inflation signs. As always we like crazy way of things: like to deploy your ten percent of the capital for one hundred percent return. Gold is a Call on USD going down, Silver is a Call on Gold and Silverstone Resources SST.v is a Call on Silver without any Time decay. Latest deal will double silver revenue in OZ next year and is a necessary step to bring confidence back into the company. You must do your own DD as always and can find some initial information on this blog.

Silverstone Resources SST.v - Bull in Silver continued.

This is the place to be and accumulate if you do not buy deflation argument and that Silver will go below 5.0 USD again. Finally we have great news for the company:

"The Northern Miner, 11/7/2008
Silverstone moves into gold, may double 2009 sales
Vancouver – Silverstone Resources (SST-V) secured the life-of-mine silver and gold production from Sherwood Copper’s (SWC-V) Minto mine in the Yukon.

The move should more than double Silverstone’s silver equivalent sales in 2009 to 4.5 million oz. and, as Silverstone president and CEO Darren Pylot notes in a conference call, it marks Silverstone’s first foray into gold.

The Minto mine, though primarily a copper mine, has proven and probable reserves of 9.13 million tonnes grading 0.74 gram gold per tonne and 7.73 grams silver per tonne. That translates into 204,000 oz. gold and 2.1 million oz. silver - or around 16.4 million silver equivalent oz. assuming Silverstone’s 1:70 ratio of gold to silver oz.

In 2009 Sherwood forecasts production of 30,000 oz. gold and 300,000 oz. silver as a by-product of copper processing.

To get its hands on that and future production Silverstone will pay Sherwood US$37.5 million upfront and US$300-per-oz. gold and US$3.90-per-oz. silver on production up to 50,000 oz. gold. Over 50,000 oz. gold Silverstone has the right to 50% of gold and silver.

Sherwood will immediately receive US$12.5 million with the rest to follow within 14 days of signing a letter of intent.

To make the payments Pylot says Silverstone will draw about US$10 million from a US$15 million line of credit and the rest from its US$28 million cash reserves.

As part of the deal Silverstone also gets the right of first refusal on potential silver and gold production from Sherwood’s Kutcho copper project in northern BC. Pylot says, if it goes to production and Silverstone was on board, Kutcho would be about 80% the size of Minto in terms of contained metal as a by-product. It would primarily come as silver.

Prior to the agreement with Sherwood Silverstone was focused on buying silver by-product.

Although Silverstone didn’t have an explicit goal to diversify into gold, Pylot says it was becoming difficult to find quality silver assets “with zinc and lead prices the way they are and silver suffering.”

That primarily accounts for its interest in the Minto mine where he says Sherwood can still operate at prices as low as about US$1-per-lb. copper.

Gold, in other words, just happened to be the main by-product (in terms of value) at a project where, more importantly, the underlying fundamentals impressed Silverstone.

“We want to get bigger by minimizing risk by getting mines that will run at all times of the cycle,” Pylot says. Minto fit that criteria.

With Minto on its roster, gold and silver’s share of Silverstone’s 2009 sales will respectively be about 40-60. Pylot says that the company does not have an explicit goal to diversify further but won’t say no to good deals outside the “silver space”.

“If gold comes up again, we will do that,” he says.

Pylot estimates that Silverstone will generate about US$27 million from Minto over the first 12 months.

For his part Sherwood president and CEO Stephen Quin says in a statement that given Sherwood and Capstone’s pending merger, "Some of the benefit to Silverstone from this transaction should flow back to Sherwood…since Capstone owns approximately 22% of Silverstone."

On news of securing production from the Minto mine Silverstone’s share price increased 6¢ to close at 74¢.

Silverstone has similar off-take agreements with Capstone Mining (CS-T) for silver from its Cozamin Mine and Lundin Mining (LUN-T) for silver from its Neves-Corvo and Aljustrel mines. It also has the right to purchase 12.5% of the potential life-of-mine silver from Aquiline Resources’ (AQI-T) Navidad project.

Stockmarkets meltdown, Gold is flying high. SSRI, RGLD, SLW, AUY, MTS.v, TNR.v, SST.v

Trust is broken, system is falling apart. Too many bailouts and liquidity pumping and just a few solid assets without anyone promise and IOU squared by derivatives.

FED did not cut, but Gold is flying without it! Cut will come and will add to the fire.

All financial economy is build on Trust, there are very few tangible assets left. In commodities market and PGM you have your assets in the ground, defined by drilling and not just "PlayStation kids Credit Default Assumptions", you still need credit to build a mine, but you have tangible assets in a "safe" and if there is Demand for them you can build on its economics.

Today is a crucial day: with rising systemic risk finally Gold behaved as it supposed to be in a free market without government manipulations - Safe haven of last resort. Raise more then 85 dollars in a one day trade will bring Gold to the front pagers of newspapers in the world.

HUI and XAU are supporting Gold rise and showing final break out from falling apart general markets.

Game here was simple in a hindsight now: with the first margin calls in July Funds sold where they had a profit: commodities, fueling the Bear Raid of PPT intervention in Gold market. Today when assets are liquidated in a fire sell to cover derivative obligations in a reality of a tight credit markets it is very important that HUI and XAU have "decoupled" finally from general market.

Economics of Supply and Demand are very simple here: Stock market of the world used to be 51 trillion dollars. All we need here is 5% of it. Investors today have seen that Gold has decoupled of falling financial markets. Even if the markets will turn on the Election Rate Cut and all these liquidity pumped into the system, investors are going to Buy Gold as Insurance without any counter party risk. Assume 3% will go into physical markets of Gold, Silver, PGM and other commodities. It is 1.5 trillion dollars! They will just fly. With 1% going into HUI it will be 500 billion: it means all HUI companies will have to rise in their valuation 5 times. Now even divide everything by 2 - it is still Buy of a lifetime by any means.

Once this will happen the most "crazy and greedy" investors will take positions in Juniors: lets say 1% of all these money for the HUI: it is 5 billion - Juniors will have to rise Ten fold just to accommodate these demand for the goods in the ground.

These investors will meet money from Majors in HUI when they will start to buy resources and buy time which is the most precious ( in case of AIG bailout time was measured in 85 billions and 80% of the company respectively). They will spend another 10% of their valuation 50 billion

on buying into Juniors with resources.

You can play financials recovery as usual or you can chose the staff in the ground which today has received very bold endorsement from the Mr Market. (Mr Warren Buffet must be nearby now, they do like each other).

We need just 1% of the money running out of stock markets these days.

Today's action is when picture is better then thousand words.

Silver is showing its monetary function as well and gain here will be even more dramatic once money will come back into the sector.

Who will bailout US Dollar? LEH, MER, BAC, AIG, RGLD, SLW, SSRI, AUY, TNR.v, MTS.v

FED will cut rates: otherwise it is a "suicide option" for their friends: now it is apparent that domino bailout is in effect on the Wall Street. We still have room to go sharply down on fear metricks VOX, VXN, VIX.

Lehman Brothers LEH has filed for bankruptcy - FED did not protect it, Merrill Lynch MER is bought by Bank of America BAC for 50 billion, American International Group AIG is looking for 40 billion FED life support. Only chosen few will be saved - others will fight for themselves, financial assets will be unwind in the falling market. Selling pressure will add to selling pressure: FED needs buyers to prevent collapse, chosen few will get money with negative rate of return to taxpayers.

Last stage of operation should come into play: FED cut rates, awash market with liquidity, PPT will buy in the open market financial equity. They will try to talk all other central banks into rate cuts.

ECB, BOE to Pump Extra Cash Into Strained Money Markets

Anyway if systemic risk will be addressed by operations like BAC buying MER, US Dollar will go down and Gold will fly, against falling dollar and all other FIAT currencies. Ten global banks has created 70 billion dollar loan facility: time is not to fight the USD collapse, but to fight for financial system existence.

Today's action in Gold, Silver and commodities will be very important. Will Goldies finally decouple from financial economy mess and become new backbone of the Recovery?

Silverstone Resources SST.v small brother of Silver Wheaton SLW is showing some life.

Insiders are selling for different reasons, but they are buying only in one case when the stock is undervalued according to all available inside information to them.

P.S. Rate Hike for anyone?

http://canadianinsider.ca/coReport/allTransactions.php?ticker=sst

Silverstone Resources Corp. (SST)
As of July 9th, 2008
Filing Date
Transaction Date
Insider Name
Ownership Type
Securities
Nature of transaction
# or value acquired or disposed of
Unit Price
Jul 09/08
Jul 09/08
Howe, Jason Paul
Direct Ownership
Common Shares
10 - Acquisition in the public market
20,000
$2.030
Jul 09/08
Jul 09/08
Kennedy, Sarah Jane
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000
$2.030
Jun 25/08
Jun 18/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000
$2.460
Jun 25/08
Jun 18/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000
$2.410
Jun 25/08
Jun 18/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000
$2.410
Jun 25/08
Jun 18/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
7,400
$2.500
Jun 25/08
Jun 18/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000
$2.460
Jun 25/08
Jun 17/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
10,000
$2.470
Jun 25/08
Jun 16/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000
$2.400
Jun 25/08
Jun 16/08
Barnes, Robert
Direct Ownership
Common Shares
10 - Acquisition in the public market
6,600
$2.450

Silverstone Resources SST.v M&A Play?

Another Junior with Silver Wheaton SLW silver stream model. Management has been taken a nap recently and stock is down below latest PP at 2.9 CAD.

The beauty of things here is that your asset base is growing even when management is sleeping:

"Silverstone Announces 130% Increase in Silver Reserves at Lundin Mining's Neves-Corvo Mine"

http://www.silverstonecorp.com/news/

If you have missed SLW below 2.0USD, check this one with all due caution as usual.

Company could become acquisition target for Silver Wheaton if share price will continue to evaluate this company so much cheaper then SLW market valuation using the same investment metrix.