US Dollar Break Down and the Moment of Test for Obama and the markets. GDX, DIA, SPY, QQQQ, TSE, CDNX

US Dollar managed to shoot up from recent consolidation at weaker Double Top formation. Dow and SPX are at November lows. Gold, Silver, Gold miners, TSX and China FXI are showing more strength and much higher then in November. It is the Obama's moment - so far all mambo jumbo from Secretary of Treasury was not worth our attention apart from new waterfall of money. Nothing to analyse - directions instead of an action plans. Will they manage to revive the expectations today and tomorrow and deliver with the help of invisible hand of PPT rally from a more solid bottom as a double one? Below 7500 banks and insurance companies will be insolvent in mass, not just few of them, markets will become indefensible and new Bear Leg could go to Dow 5000. US Dollar above November high means Deflation and Depression and not only for USA. What will change the things as they are? Normally it is the point of total desperation when the bottom is formed. We are very close, but clear action must show that the FED is winning against Deflation. With all other things equal Gold is showing it very strong. Silver is very close to 15USD when investors will wake up and start to chase it again. We do not like to live with our golden eggs among the ruins, so Mr Obama it is time to stop to be a rock star and act as a crises manager: let the Green Fellow rest from recent struggle with gravity, Inflation will prevent Total collapse and we will enjoy slow motion deterioration and change of things.

Roxmark Mines RMK.v Premier-Roxmark intersects high-grade gold at Hardrock Project - Up to 2870 g/ton (92.27 opt) across 0.30 metres. RMK.v, PG.to,

It is hard to believe that the stocks of Roxmark Mines RMK.v were trading under 0.05CAD just two month ago. Solid story in a solid place with a strong partner - Gold in Canada.

HUNDER BAY, ON, Feb. 17 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG - News) is pleased to announce, initial results from drilling in the EP-Zone, one of several targets currently being drilled on the company's Hardrock Project in Northwestern Ontario. This program is expected to consist of more than 50,000 metres of definition and exploration drilling leading to NI 43-101 compliant gold resources in 2009. The Hardrock Project is being operated by Premier under joint venture with Roxmark Mines Limited (TSX-V:RMK - News).
The EP-Zone has been identified as a potential high-grade open pit target in the vicinity of the historic North Zone, from which 2.97 Million tonnes of ore was mined at a grade of 7.54 grams per tonne gold (g/t Au). Initial drilling has identified 3 sub-zones within the EP target consisting of the South Limb, North Limb and HGV horizons. Significant mineralization has been intersected in the first nine holes within all three horizons including 11.83 g/t Au across 11.4 metres (m) in the South Limb, 2.24 g/t Au across 21.0 m in the North Limb, and 2870.00 g/t Au across 0.3 m within the HGV horizon.
The following tables demonstrate the potential of the EP-Zone and include historic results that help to highlight the mineralization within each horizon intersected in limited previous drilling in the area. Note that true widths of the intercepts are estimated at approximately 70% of the intervals provided.

Sabina Silver SBB.v Announces Skinner Program Under Way. SBB.v, SLW, SLV

With silver moving up fast life is coming back to strong Silver Juniors:

Sabina Silver Announces Skinner Program Under Way
Option on East My-Ritt Property granted to Skybridge Development Corp.
Tuesday February 17, 2009, 9:00 am EST
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Feb 17, 2009 -- Sabina Silver Corporation ("Sabina") (CDNX:SBB.V - News) announced today the exploration program on the 100% owned Skinner property in the Red Lake district of Ontario has begun. Also, the Company has entered into a Letter Of Intent granting an option (the "Option") to Skybridge Development Corp. to acquire Sabina's 50% interest in the East My-Ritt property in Red Lake, Ontario.
2009 SKINNER GOLD PROGRAM - ONTARIO
The Company's 100% owned Skinner property covers a structurally deformed contact between ultramafic and mafic lithologies, which may represent a favourable geological setting similar to that found in the Red Lake district and other greenstone belts in Ontario and Quebec. A modest nine hole 2,200 m diamond drill program began on February 9, 2009 on the primary target which is a steeply northward dipping, east-west trending sheared contact of an ultramafic horizon.
In 2008 drilling west of the Dunkin showings on the property resulted in the discovery of the Blind Zone, returning 0.62 g/t Au over 11.90 m (including 4.97 g/t Au over 0.75 m). The Blind Zone is located at a sheared contact between gabbro and ultramafics. The Dunkin showings are quartz veins hosted by gabbro. Four holes are planned to test for extensions to the Blind Zone and test beneath the Dunkin showings. Three of these holes, one in progress, will be drilled from the surface of Narrow Lake during this winter to take advantage of ice conditions on the lake.
Three of the nine drill holes are planned to test the sheared ultramafic horizon 1 to 2 km west of the Blind Zone. These proposed holes are either located up-ice of gold-in-till anomalies or located to test inferred flexures in the shear zone.
One final drill hole is planned to test beneath a cluster of 5 anomalous gold-in-soil samples containing values of up to 900 ppb located approximately 1 kilometre south of the Dunkin showing.
Option to Skybridge Development Corp. on East My-Ritt property
On February 10, 2009, Sabina and Premier Gold Mines Ltd, the Company's 50% partner on the East My-Ritt property (the "Vendors") entered into a Letter of Intent with Skybridge Development Corporation ("Skybridge") which would provide Skybridge an option to acquire 100% of the East My-Ritt property. Under the terms of the LOI, the Vendors would receive $250,000 in cash and 1.5 million Skybridge shares. The payment of cash and shares would occur in 5 equal distributions over a 4-year period, with the first payment due upon signing a definitive agreement. Additionally, the Vendors would retain a 0.5% Net Smelter Royalty (NSR) with Skybridge on the property as well as the right to jointly buy out the existing underlying royalty provisions on the property. The existing underlying royalty provisions are comprised of a 3% NSR on all eight claims and a 10% Net Profits Interest on six of the claims.
"This is a win/win opportunity for all parties," said Tony Walsh, Sabina's President & CEO "Sabina's mandate for 2009 is to conserve cash to progress the Company's core assets and growth strategy. Granting the Option to Skybridge enables work to continue on the property without depleting Sabina's treasury. The Option also allows Sabina to monetize a non-core asset while providing exposure to the property's successes through the royalty."
Terms and share issuance remain subject to TSX Venture Exchange and all regulatory approvals.
The East My-Ritt property is located 1.5km west of the town site of Red Lake, Ontario and consists of eight (8) patented mining claims totaling approximately 320 acres. Skybridge will initiate geological and geophysical compilation work on the East My-Ritt Property in preparation for an upcoming drill program to be conducted under NI 43-101 quality assurance and quality control reporting standards.
Terms and share issuance remain subject to TSX Venture Exchange and all regulatory approvals.
Quality Assurance - Skinner Drilling
A system of sample standards, blanks and duplicates were inserted as part of the Company's QA/QC analytical stream processed at Accurassay Laboratories (Thunder Bay, ON) an accredited laboratory. Further details on quality assurance can be referenced in Sabina Silver press release dated July 7, 2008.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in Nunavut, the Del Norte project in the Stewart-Eskay Creek Mining District and several projects in the Red Lake gold camp. The Company is well capitalized with $37 million in cash and marketable securities at September 30, 2008.

Minera Andes MAI.to fight for the control continued. MAI.to, TNR.v, CDNX

TNR Gold TNR.v will have a strong honest partner on Los Azules, Mc Ewen has made a move worth his reputation:

Minera Andes announces revised C$40.0 million private placement with Robert R. McEwen at a subscription price of C$1.00

Tuesday February 17, 2009, 8:19 am EST
<<>>SPOKANE, WA, Feb. 17 /CNW/ - Minera Andes Inc. (the "Corporation" or "Minera Andes", TSX:MAI and US OTC:MNEAF) announced today that it has agreed with Robert R. McEwen, a director and existing shareholder of the Corporation, to amend the terms of the private placement with Mr. McEwen, as first announced on February 9, 2009.
Mr. McEwen has agreed to complete the private placement in a two step transaction designed to alleviate the Corporation's immediate financial pressures. First, Mr. McEwen will purchase 18,299,970 common shares of the Corporation at a price of C$1.00 per share for proceeds to the Corporation of C$18,299,970 which will be used, as to $US11.3 million, to satisfy the cash call made in respect of the Corporation's 49% interest in the San José Project ("Step 1"). Second, Mr. McEwen will assume the bank loan owing by the Corporation to Macquarie Bank Limited ("Macquarie") in the aggregate principal amount of US$17.5 million ("Step 2"). The subscription price of C$1.00 per share represents a 108% premium to the closing price of Minera Andes' common shares on the TSX on February 13, 2009 of C$0.48 per share.
In order to initiate the transfer of funds to Argentina for the cash call by February 20, 2009, Step 1 is to be completed by the close of business in Toronto on February 18, 2009.
The Step 2 assignment of the Corporation's bank loan from Macquarie to Mr. McEwen, is subject to Mr. McEwen reaching agreement with Macquarie, and Macquarie has already indicated its agreement to this. The security for the bank loan also has to be transferred to Mr. McEwen, and Step 2 requires Hochschild Mining plc ("Hochschild") consenting to the transfer of the security in the San José Project from Macquarie to Mr. McEwen. If agreement is not reached with either or both of Macquarie and Hochschild by the close of business (Toronto time) on February 25, 2009, Mr. McEwen will purchase a total of 21,700,030 common shares of the Corporation at a price of C$1.00 per share and the Corporation will use the proceeds thereof to repay Macquarie directly.
The bank loan, once assumed by Mr. McEwen, will be convertible at the option of Mr. McEwen into common shares of the Corporation at a price of C$1.00 per share (for a total of 21,700,030 common shares), at any time, subject to approval by the shareholders of the Corporation. If such shareholder approval is not obtained by 60 days after closing, the bank loan (as assumed by Mr. McEwen) will be due and payable by the Corporation 15 business days after the date of the shareholders' meeting.
In addition, if prior to such shareholder approval being obtained there is a change of control of the Corporation, involving a person other than Mr. McEwen or one his affiliates, the bank loan (as assumed by Mr. McEwen) will be immediately converted into common shares of the Corporation at a price of C$1.00 per share (for a total of 21,700,030 common shares).
Step 1 and Step 2 of the transaction with Mr. McEwen are subject to the approval of the TSX.
Mr. McEwen will not demand repayment of any amounts under the bank loan (including the sum of US$7.5 million which is currently due on or about March 7, 2009) prior to the receipt of shareholders approval or, failing such approval, 15 business days after the date of the shareholders' meeting convened to obtain such approval. In addition, Mr. McEwen has agreed to waive all existing events of default under the Macquarie credit agreement.
Mr. McEwen has also confirmed that the Corporation may complete an offering of common shares on similar terms as the proposed transaction with Mr. McEwen for the purpose of funding its exploration activities.
Step 1 and Step 2 are intended to improve the Corporation's financial situation and provide shareholders the opportunity to approve the issuance of shares to Mr. McEwen, where time permits such approval to be sought, without a material adverse effect on the financial condition of the Corporation.
On February 9, 2009, the Company announced that it had entered into a letter agreement with Mr. McEwen pursuant to which Mr. McEwen or his affiliates would purchase 121,212,121 common shares of the Corporation at a price of C$0.33 per share (the closing price of the Company's common shares on the TSX on February 4, 2009), for proceeds of C$40.0 million.
Subsequent to that announcement, the Corporation received advice from Hochschild that it was prepared to make a formal bid to acquire all of the issued and outstanding shares of the Corporation at an exchange ratio of 0.24 ordinary shares of Hochschild (which is listed on the London Stock Exchange) for each common share of the Corporation. Based on the closing price of Hochschild's shares and the Corporation's shares on February 15, 2009 this bid, if made would have an implied price of C$0.8658 per common share of the Corporation. Hochschild is not currently listed on any Canadian stock market so any bid if made, could not be made until at least April 2009, at which time the requisite technical reports in respect of Hochschild's material properties are scheduled to be completed.
Hochschild indicated that it would (i) provide bridge financing to the San José project so that the payment of the outstanding cash call by MAI could be deferred until expiry of the formal bid by Hochschild; and (ii) make a loan available to the Corporation in the principal amount of US$17.5 million so that the Corporation could repay its indebtedness to Macquarie and that the maturity date of such loan would effectively be extended until December 1, 2009, provided in each case, among other things, that the Corporation would immediately express support for any such bid by Hochschild and negotiate the terms of a definitive support agreement for the making of any such bid (with a view to settling the terms of such agreement by February 26, 2009). The proposal from Hochschild also provides that any such financial assistance shall be immediately due and payable upon the Corporation supporting an alternative transaction.
The Special Committee, together with its advisors, considered the
Hochschild proposal for a bid some time after April 2009 and financial
assistance and concluded that the proposed transaction with Mr. McEwen is in
the best interests of shareholders. In reaching this conclusion, the Special
Committee considered, without limitation, the following factors:
- the implied price of the proposed Hochschild bid, if made, is
inferior to the price offered by Mr. McEwen;
- the financial assistance offered by Hochschild is expressly
conditional upon the Corporation negotiating the terms of a support
agreement (the proposed material terms of which are unknown) and
failing which the proposed transaction with Mr. McEwen will have been
withdrawn and the Corporation will again be subject to untenable
financial pressure;
- the proposed Hochschild bid, if made, will be based on an exchange
ratio determined today, however any bid made by Hochschild cannot be
made until April 2009 at the earliest;
- the possibility that financial assistance provided by Hochschild
would become immediately due and payable upon a competing proposal
supported by the Corporation is coercive and
- the proposed transaction with Mr. McEwen does not prevent a
subsequent transaction with Hochschild or any other third party and
its effect on the Corporation's financial condition should enable the
Corporation to vigorously negotiate the terms of any such proposal
without the pressures of financial hardship.
Mr. McEwen presently owns, or exercises control or direction over, 46,057,143 common shares, or 24.3% of the issued and outstanding common shares. The issuance of 18,299,970 common shares to Mr. McEwen under Step 1 will result in Mr. McEwen owning or exercising control or direction over approximately 30.9% of the then issued and outstanding common shares of the Corporation. The issuance of 21,700,030 common shares under Step 2 will result in Mr. McEwen owning or exercising control or direction over approximately 37.4% of the then issued and outstanding common shares of the Corporation.
Under the TSX Company Manual, shareholder approval would be required as a result of the fact that together Step 1 and Step 2 will result in greater than 10% of the outstanding common shares of the Corporation being issued to an insider of the Corporation.
The Corporation applied to the Toronto Stock Exchange (the "TSX") under the provisions of Section 604(e) of the TSX Company Manual for an exemption from securityholder approval requirements in respect of the issue of 40,000,000 common shares to Mr. McEwen at a price of C$1.00 per share on the basis that the Corporation is in serious financial difficulty, in each in the circumstances described above The members of the Special Committee of the Corporation's Board of Directors, Allan Marter, Donald Quick and Victor Lazarovici (each of whom is free from any interest in the offering), authorized such application concluding, each time, that the Corporation is in serious financial difficulty as a result of the cash call for the San José Project and the outstanding bank indebtedness, and the transactions with Mr. McEwen are reasonable for the Corporation under the circumstances.
With its financial condition improved, the Special Committee believes the Corporation will be in a position to undertake a review of the options available to it for the medium and longer-term. At present, the Special Committee believes that the Corporation's ability to obtain maximum value for its shareholders is limited and constrained by financial distress caused by the cash call due imminently and the bank loan which may be called upon seven days notice.
As a result of its previous announcement concerning the private placement with Mr. McEwen, the TSX has advised that it has initiated a de-listing review of the Corporation as a consequence of relying on the financial hardship exemption under Section 604(e). The Corporation believes that, upon completion of the private placement, it will be in compliance with all of the TSX listing requirements.
The transactions described above with Mr. McEwen will also be a related party transaction for the purposes of Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions. It is the intention of the Corporation to avail itself of certain exemptions set out in such Instrument from provisions that would otherwise require the Corporation to obtain a formal valuation and the approval of its minority shareholders in connection with the private placement.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds approximately 304,000 acres of mineral exploration land in Argentina. Minera Andes holds a 49% interest in the San José Project, an operating gold and silver mine. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program has defined a resource and a preliminary assessment has been completed. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 shares issued and outstanding.
This news release is submitted by Allan J. Marter, a Director and the Chairman of the Special Committee of the Board of Directors of Minera Andes Inc.

TNR Gold TNR.v - Los Azules - Minera Andes MAI.to: Junior miners seek silver lining amid gloom. MAI.to, TNR.v, CDNX, FXI.

FT picked up the story on Junior Miners: time is to follow the money - in this difficult market we need additional safety of insiders' money flow into their own stories or deep pocket consumers like Chinese. We are monitoring here M&A activity and believe these companies will be the first beneficiaries of returned interest into the sector. Latest stories on M&A Juniors from our top picks:

TNR Gold TNR.v Los Azules - Minera Andes

TNR Gold TNR.v Batidero - Suramina Resources SAX.to - Canadian Gold Hunters CGH.to

Canada Zinc Metals - Chinese giant investment.

Continuum Resources CNU.v - Fortuna Silver FVI aqcvisition.

Junior miners seek silver lining amid gloom
By Tom Burgis in Cape Town and William MacNamara in London
Published: February 16 2009 18:01 Last updated: February 16 2009 18:01
Instead, the thinned ranks of delegates were talking about the struggle for survival among junior mining and exploration companies.
Consolidation seems inevitable, executives and analysts agreed. But they have been saying so for months. For now, sector reorganisation is largely happening among the smaller companies on the peripheries of the industry.
Many stricken juniors have scaled back operations and are living off their cash piles – if they are fortunate enough to have them – and postponing a day of reckoning that will come if metals prices remain low for long.
Only a few major mining companies outside of China are bargain-hunting among the juniors. Their shareholders are all too aware of the majors’ cash flow problems.
But at the Indaba last week, courting began in earnest, bankers and executives said. Precious metals will lead the way, many expect.
“The whole ground on which we sit has shifted dramatically,” said David Russell, joint acting chief executive of Braemore Resources, a platinum mining and smelting company in South Africa.
“Some of [the juniors] have a mental block, but the penny has dropped,” he said. Braemore hopes to be able to pick up miners desperate to refine their ore. “We are seeing overtures – even to ourselves.”
Gold is faring better than any other metal in the downturn, turning some stricken juniors into targets.
As the Indaba convened, a takeover battle heated up over Minera Andes, a cash-strapped junior gold and silver miner in Argentina. As the company came close to breaching debt covenants Hochschild Mining, its joint venture partner in Argentina, offered to either buy out the company’s joint-venture stake for $70m, or buy the company outright in an all-paper transaction.
But instead Minera Andes turned to its largest shareholder, Canadian mining entrepreneur Rob McEwan, in a C$40m (US$32m) private placement that would put Mr McEwan in control of the company.
The unresolved battle highlights both the attractiveness of gold assets and the importance of private money to the nascent revival in corporate activity.
Hochschild’s controlling shareholder, Eduardo Hochschild, and Mr McEwan can afford to make bets that traditional public companies cannot.
With more than $100m in cash, Hochschild is approaching 2009 as “a logical time to try and consolidate some properties” in South American silver and gold mining, said Robert Danino, deputy chairman.
Several junior mining executives have expressed a desire to have a single, savvy investor come in and solve their problems through a private placement.
They know that with debt scarce, they cannot all be snapped up.
Fiddling agitatedly with BlackBerrys at the Cape Town conference, executives repeatedly said that countless juniors would go to the wall – except, of course, their own.
Yet according to Mark Bristow, chief executive of FTSE 100 gold miner Randgold Resources, many of the juniors do not deserve to be saved.
The easy-money environment during the commodities boom produced a slew of companies that have stopped production and may never be viable again, Mr Bristow said.
Many of these companies are dependent on high metals prices supporting their low-grade, expensive projects. “Everyone trusted their own PR,” Mr Bristow said. While he is “hunting, big time”, potential targets are few.
“A lot more [small miners] will go bust,” he predicted.
According to Ernst & Young, the top 20 mining companies on London’s Aim board lost 46 per cent of their value in the fourth quarter of 2008, compared with the previous quarter, and 75 per cent compared with the fourth quarter of 2007.
Ernst & Young expects to see “an increase in the number of unsolicited, potentially opportunistic takeover bids in 2009”.
But potential buyers know, too, that fire-sale terms will only grow more attractive as juniors’ troubles deepen. For now, this is prolonging the freeze in corporate activity.

Follow the Money - Gold, Silver and Miners. AUY, SLW, GDX, CZX.v, MAI.to, TNR.v, CDNX

GLOBAL CAPITAL FOR MINING
Miners don't need banks
In the past few months, mining companies have raised USD 30bn, directly from keen investors keen to lock in great value. Author: Barry SergeantPosted: Friday , 13 Feb 2009
JOHANNESBURG -
While US Treasury Secretary Timothy Geithner continues to dither over details of the Financial Stability Plan, leaving markets in general to stumble on sideways, selected mining companies continue to raise fresh capital directly from investors. While bank bail outs have become commonplace in a number of countries, and all kinds of sectors have raised hands in appeals for non-bank bailouts, the mining sector has struggled on silently.
But the struggle tides may have turned, for miners at least. In the past few months, mining companies have raised at least USD 30bn by way of new equity issues (also known as rights or capital issues), bonds, loan notes, and, in some forced circumstances, sales of equity stakes in operating entities. Old fashioned bank lending is rare, if seen at all.
The single biggest raising, at USD 7.2bn, was announced this week, when mining major Rio Tinto sold bonds to Chinalco, a far smaller company, but a significant player in the global aluminium sector. If the bonds are subsequently converted into equity, Chinalco's stake in the Rio Tinto group will rise to 18%. Chinalco, however, is also to spend USD 12.3bn buying direct equity stakes in some of Rio Tinto's best operating assets, such as Hamersley Iron.

TNR Gold TNR.v - Suramina Resources SAX.to merges with Canadian Gold Hunters CGH.to. TNR.v, SAX.to, CGH.to, CDNX

Suramina Resources SAX.to is an operator on a number of TNR Gold TNR.v properties. Lukas Lundin is basically consolidating his exploration plays buying out Suramina Resources. TNR Gold is involved in Los Azules and Minera Andes MAI.to story takeover fight, this M&A activity is warming up the Junior market and the Argentinean plays recently. Stocks are oversold and recent prices do not reflect their value, it is very important to see that Industry players are trying to crab the cake now, confirming our observations. Combined company will have cash for Exploration, advanced exploration properties and one of the best team in the industry. Time is to buy assets: who will be next on the plate? We need some Chinese flavour to these party, so real value will be coming back into reflection in market prices of all involved Juniors.

Canadian Gold Hunter and Suramina Resources Inc. Enter Into Arrangement Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 13, 2009) - Canadian Gold Hunter Corp. (TSX:CGH - News; "Canadian Gold Hunter") and Suramina Resources Inc. (TSX:SAX - News; "Suramina") are pleased to announce that they have entered into a definitive agreement (the "Arrangement Agreement") to effect a business combination between the two companies pursuant to a plan of arrangement under the Canada Business Corporations Act.
Pursuant to the Arrangement Agreement, Canadian Gold Hunter will acquire all of the issued and outstanding shares of Suramina on the basis of 0.7541 shares of Canadian Gold Hunter for each one Suramina share (the "Exchange Ratio"). All outstanding Suramina options will be exchanged for replacement options of Canadian Gold Hunter, the number and exercise price of which will be determined using the Exchange Ratio. The transaction values the Suramina shares at $0.1975, representing a 12.7% premium to the 20 day volume weighted average closing price of Suramina. Upon completion of the transaction, Suramina will be a wholly-owned subsidiary of Canadian Gold Hunter and it is estimated that Canadian Gold Hunter will have 110,335,992 shares outstanding. Former shareholders of Suramina will hold approximately 47.3% of the outstanding shares of Canadian Gold Hunter. The transaction is expected to close in mid-April 2009.
Full details of the transaction, including the terms of the Arrangement Agreement, will be included in a joint information management circular which is expected to be mailed to shareholders of Canadian Gold Hunter and to shareholders of Suramina on or about March 18, 2009. Both companies plan to hold a special meeting of shareholders to approve the transaction and related matters on or about April 14, 2009. The transaction is subject to all requisite regulatory and court approvals as well as shareholder approval of the transaction by at least 66 2/3% of the votes cast by the Suramina shareholders and shareholder approval of the Canadian Gold Hunter share issuance in connection with the transaction by not less than a majority of the votes cast by the Canadian Gold Hunter shareholders, in both cases, present in person or represented by proxy at the meetings.
The transaction has been approved by the board of directors of both Canadian Gold Hunter and Suramina (with interested directors abstaining) following the unanimous recommendation of a special committee comprising independent Canadian Gold Hunter directors for Canadian Gold Hunter and independent Suramina directors for Suramina. The board of directors of both companies recommends that their respective shareholders vote in favour of the transaction.
Benefits of the Business Combination
- Suramina brings to the transaction a large, diversified copper/gold exploration portfolio in South America. Projects range from grass roots to advanced resource definition stage, including the Josemaria copper/gold porphyry project with a 43-101 inferred resource of 460 million tonnes grading 0.39% copper and 0.30 g/t gold at a 0.3% TCu cut-off, containing 3.9 billion pounds of copper and 4.4 million ounces of gold. (Please see news release dated December 5, 2007 for complete information). Suramina's local exploration team has a strong track record of success including the discovery of the Veladero gold deposit, now owned by Barrick Gold, as well as the initial recognition and development of the Bajo de la Alumbrera gold mine, now owned by Goldcorp., Xstrata and Yamana.
- Canadian Gold Hunter brings to the transaction a major new gold/copper exploration project in Mexico as well as a strong portfolio of copper/gold exploration projects in Canada, including the GJ/Kinaskan project with a 43-101 measured and indicated resource of 153.3 million tonnes grading 0.321% copper and 0.369 g/t gold, containing 1.09 billion pounds of copper and 1.82 million ounces of gold (cut-off grade of 0.20% copper). (Please see news release dated October 7, 2008 for complete information). Canadian Gold Hunter's exploration team has, combined, over 70 years of international exploration and development experience.
- In the short term, capital market conditions favour stronger, larger, diversified exploration vehicles. The combined entity will be financed, debt-free, and an active exploration company. As well, the transaction will introduce significant cost efficiencies through reduction of total G&A and other head office costs.
- In the long term, the combined entity will be extremely well-positioned for the anticipated commodity markets recovery with a diversified roster of gold/copper projects in various stages of advancement. The combined exploration expertise of both companies will ensure best possible shareholder value.
In connection with the proposed business combination, Haywood Securities Inc. provided a fairness opinion to the special committee of the board of directors of Canadian Gold Hunter and Dundee Securities Corporation provided financial advice and a fairness opinion to the special committee of the board of directors of Suramina. Legal advice to the special committee of the board of directors of Canadian Gold Hunter was provided by DuMoulin Black LLP. Legal advice to the special committee of the board of directors of Suramina was provided by McCullough, O'Connor Irwin LLP, and Cassels Brock & Blackwell LLP acted as corporate counsel on the transaction.
ON BEHALF OF THE BOARD OF CANADIAN GOLD HUNTER
Richard J. Bailes, President
ON BEHALF OF THE BOARD OF SURAMINA
J. Patricio Jones, President

China - is it bottoming out? FXI, CZX.v, TNR.v, SST.v, GDX, AUY, SLW

There are some signs that Chinese economic deterioration has bottomed out - lending growth has accelerated, the pace of deterioration in the manufacturing sector, has slowed (though it remains in contraction) credit extension is at record levels (multiplying the effects of the government stimulus). However, this increased activity may only partly offset the weakness of the export sector and residential investment even as consumption is slowing . Nevertheless a reduction in the pace of deterioration is a good sign
Danske: The development in the PMIs suggest we should soon see a stabilisation in both industrial production, where some stabilisation is already evident and exports, where early foreign trade figures for other Asian countries suggest trade is still contracting in early 2009. The development is in line with other recent data (credit growth) indicating that the Chinese economy at least is recovering
Wang: ,Growth will accelerate from the current pace to 7.2% for 2009 with consumption contributing 4.4pp and investment 4pp and the collapse in exports slicing off 1.2pp.
Pettis: the sudden surge in lending in December put back on balance sheet loans that were taken off in 2007 and 2008. Chinese capex reliance on retained earnings will limit investment pickup - suggests China will not avoid the hard adjustment it faces ahead
Citi: Further downside risks are possible if the macro condition worsens, but China's valuations seem to be bottoming from an ROE perspective, current 2009 P/B of 2.1x for 18% 2009 ROE looks more appealing than a 2008 P/B of 5.0x for 21% ROE in January 2008.
Setser: available trade data still seems negative for China. eg Korea’s exports to China have been falling faster than Korea’s overall exports, suggesting China's export contraction continued
Dollar: Industrial growth declined sharply, but primary sectors grew at 7.3% in the 4th quarter, and services at 8.0%, perhaps indicating the beginning of rebalancing in which the service sectors become the growth leaders. the Chinese consumer is a bright spot in an otherwise gloomy global picture and the right govt policies (support of heath, education etc) could cushion consumption
Although exports make up less than 20% of GDP, a considerable amount of investment is targeted towards this sector, meaning that the still weak external demand might limit Chinese recovery, especially if consumption also weakens - furthermore, manufacturing deterioration may have stopped but the sector continues to contract and with lack of profits to finance investment and weak outlook for external and domestic demand in many sectors, investment may be limited
Loss of jobs, reduction in incomes will depress consumption in urban areas.
MS: lending rates may not be sustainable given that most is bill financing
Although the 14% bump in retail sales year on year seems high, it is considerably lower than the monthly y/y gains sustained in recent months and ignores the fact that last years lunar new year sales were distorted by devastating storms.
Feb 14, 2009
Associated Readings (13 Articles)

TNR Gold TNR.v - Solitario - Robert McEwen and Minera Andes MAI.to San Jose and Los Azules Full Story. TNR.v, MAI.to, CDNX.

Story is making its way, very good article with clear details. Solitario is a TNR Gold subsidary in Argentina.

The Northern Miner, 2/11/2009

TSX to determine Minera Andes' fate as producer asks to issue 121 million sharesVancouver - A few months ago, it seemed like Minera Andes (MAI-T) had it all:49% stake in a producing gold-silver mine, a massive copper depositnearing development stage, and a pipeline of promising exploration properties.It's amazing how quickly things can change. Now the company's ability to survive beyond mid-February is in the hands of the Toronto Stock Exchange,which has to decide if the company can, without shareholder approval, issue 121 million shares and bring a major shareholder's ownership to 53% in orderto raise the funds Minera needs to meet pressing obligations.That shareholder is none other than Rob McEwen, founder and former CEO of Goldcorp (G-T, GG-N). The highly successful McEwen, who is currentlythe president and CEO of US Gold (UXG-T), already owns 24% of Minera and sits on the board as a director. And at a time when money is hard to comeby through the usual routes, a private investment of $40 million appears to be the white knight Minera desperately needs."We're sitting there, basically travelling at about 100 miles an hour about to slam into a wall," McEwen says, describing the events leading up to his offer."This is Thursday and we need the money by yesterday. And because we've exhausted our routes the dealer comes in and says, ‘Here are some terms weshould think about offering [to a third party]...but it'll have to be at a discount.' And I'm going, ‘Now wait a minute.'"McEwen believes in Minera; he says its share price is far too low considering its producing mine, its massive Los Azules copper deposit, and its pipeline ofexploration possibilities. And, as a major shareholder and director, he says he wasn't about to give the company away to a non-shareholder at a bottomed-out price.So on Feb. 9th McEwen offered to buy 121.2 million shares at 33¢ a piece, for total proceeds to the company of $40 million. The price was set asMinera's closing price on Feb. 4th.Minera has 190 million shares outstanding. That means the McEwen share issuance would dilute Minera shares by 65%. The financing would also resultin McEwen, already an insider, owning a majority of Minera's shares. Both of those events trigger the need for shareholder approval, according to TSXregulations. But Minera doesn't have time for that. To understand why, we need to go back to the beginning.The company's current financial predicament stems entirely from its producing mine. Minera owns 49% of the San Jose gold-silver mine in Santa Cruzprovince, Argentina. Hochschild Mining (HOC-L) owns the other 51% and operates the mine, which achieved production in mid-2007.As part of its efforts to finance development at San Jose, Minera borrowed US$17.5 million from Macquarie Bank in 2007. The debt facility was predicatedon the expectation that San Jose would achieve positive cash flow in 2008, allowing Minera to repay the debt. Minera used its assets to secure the loan;the agreement stipulated that the company could not dilute its interest in San Jose without defaulting.Hochschild brought San Jose online in August 2007 and even before the high grade, underground gold-silver mine reached full commercial production themajor decided to expand the operation. Initially the mine was built to process 265,000 tonnes of ore each year; Hochschild embarked on an expansion tobring annual capacity to 530,000 tonnes.Minera has essentially no control over decisions at San Jose. The company that owns San Jose, of which Hochschild owns 51% and Minera 49%, iscontrolled by a five-member board of directors. Three of those members are from Hochschild; the other two are from Minera.Both partners expected to fund the expansion using cash flow. Unfortunately development work cost more than expected and in December Hochschild toldMinera it needed cash. Specifically, Hochschild said the partners needed to provide US$23 million to fund the expansion, which meant Minera Andesneeded to hand over US$11.3 million within 60 days.That's when things got interesting. The company had some $2.5 million in the bank - not nearly enough to fund the cash call - and because San Jose wasnot producing positive cash flow, Minera was already in breach of one of the covenants on its Macquarie loan.In short, the company needed US$28.8 million almost immediately and rather unexpectedly."We asked in the summer if there would be any cash calls in the fall and Hochschild said no," says McEwen. "Then in December, all of a sudden, opsthere's a cash call and it's due in 60 days.Minera evaluated its options. McEwen says the board tried to raise interest in an equity financing but, not surprisingly, found the equity marketsunresponsive. One institution offered to try a best-efforts financing, provided McEwen participated, but best-efforts financings in the current market offer nocertainty. Minera also tried to re-negotiate its loan but instead of finding willingness to extend or increase the amount the bank said it wanted to acceleratethe repayment schedule."So we're not getting much luck on the equity front, we're not getting much luck on debt refinancing, and so we're looking at a situation where, if we don'tmake this cash call, our interest in San Jose goes from 49% to 38%," says MwEwen.And there's the rub. The other major covenant controlling the Macquarie loan is that a dilution in Minera's stake in San Jose defaults the loan, allowing thebank to demand full repayment in seven days. When Minera failed to repay the US$17.5 million, the bank could step in and seize the company's assets.That's when McEwen made his $40-million offer and left the directors' meeting. The tricky part is that convening a shareholder meeting to approve thesignificant, insider share issuance would take months but Minera only has until Mar. 3rd to pay the cash call or essentially it's all over. So the companyapplied to the TSX for exemption from the requirement for shareholder approval according to Section 604(e), the financial hardship exemption.The next day, Hochschild made two offers to Minera. The major first made a bid for the entire company, offering 0.22 Hochschild share for each MineraPage 1 of 2http://www.northernminer.com/issues/PrinterFriendly.asp?story_id=&id=95965&RType=&PC=NM&issue=021120092/11/09 7:08 PMThe next day, Hochschild made two offers to Minera. The major first made a bid for the entire company, offering 0.22 Hochschild share for each Minerashare. The takeover bid valued Minera at 62¢, a 100% premium to the company's closing price on Feb. 5th. Alternately, Hochschild offered to buy Minera's49% interest in San Jose US$70 million in cash.At the same time Hochschild also appealed to the TSX to "re-examine and reconsider" the availability of the hardship exemption. The TSX will render itsdecision on Monday, which is the closing date for the McEwen financing.As for the Hochschild offers, a special committee of independent Minera directors and financial advisors decided the McEwen offer was a better decisionfor the company."If the TSX doesn't go along with this the company is going to lose its interest in the property or be consumed," says McEwen. "Hochschild's strategy is totie this all up and prevent it from closing on Monday. Then no one else will be there to buy it and they'll get it at the price they want."

Major progress at Los AzulesIn other major Minera Andes news, a completed preliminary assessment has started the clock ticking on Xstrata's right to back in on Minera's mega LosAzules copper project. And the first economic study of Los Azules has slapped the massive copper project with a US$2.7-billion price tag.The preliminary assessment looked at an operation processing 36 million tonnes of ore annually to produce 170,000 tonnes of copper, 1.26 million oz.silver, and 38,000 oz. gold each year for 24 years. Over the life of mine, operating costs average out to US$7.59 per tonne of ore processed or 85¢ per lb.copper produced, net of gold and silver credits.Minera based the open-pit study on an inferred resource of 843 million tonnes grading 0.51% copper. Pre-production stripping would remove 150 milliontonnes of waste rock and once mining began the waste-to-ore strip ratio would be 1.5 to 1.With the price of copper set at US$1.90 per lb. and a discount rate of 8% the project returned a net present value of US$496 million and an internal rate ofreturn of 10.8%.The biggest number in the study, though, is the estimate for initial capital expenditures. The study forecast development costs at US$2.7 billion. Capitalpayback is expected to take 6.4 years.Los Azules is not an easy project to access. It sits at some 4,000 metres elevation in an isolated area of the Argentinean Andes, near the border withChile. There is essentially no infrastructure on site and there are no nearby towns or settlements. The road into Los Azules is closed roughly seven monthsof the year because of snow or running water.A mine at Los Azules would require a road and Minera considered three possible routes. Studies have since shown that a route in from the north is themost economically viable. Mine development would also necessitate building camp facilities, power lines, and concentrate and fresh water pipelines.Although Minera Andes has a 100% option on the property from Xstrata (XSRAF-O, XTA-L), the prefeasibility study satisfies a condition for Xstrata's 51%back-in right. Xstrata has the right now that a technical report shows that Los Azules can produce more than 100,000 tonnes of copper for at least tenyears.Xstrata has 90 days to make its decision. To claim its 51% interest the major would have to pay Minera three times the amount it has spent at the sitesince late 2005, assume control of the project, and complete a feasibility study within five years.

There is also some confusion over another back-in right on the property. Xstrata originally optioned the property from Solitario Argentina, leaving Solitario a25% back-in right on Xstrata's interest, exercisable within 36 months of Xstrata's decision to back-in. Xstrata and Solitario are now disputing the validity ofthe 36-month deadline."

Minera Andes MAI.to - Minera share issue meets resistance. MAI.to, TNR.v, CDNX, XAU, HUI, GDX.

More and more interest will be driven to Argentina by this corporate fight. Bailout 2.0 with 2 trillion on the line will make recent low commodities prices history within couple of months.

Minera share issue meets resistance
ANDY HOFFMAN
MINING REPORTER
February 11, 2009
In the past, Robert McEwen has fashioned himself as an advocate for shareholder rights. In 2006, the former chairman and largest single shareholder of Goldcorp Inc. sued the company in an Ontario court, trying to block its plans to increase its share count by a whopping 67 per cent without giving shareholders a vote.
That effort ultimately failed but Mr. McEwen is now on the other end of a massively dilutive share issue.
Minera Andes Inc., a cash-strapped junior miner that owns a 49-per-cent stake in the San Jose silver and gold project in Argentina, unveiled plans for a $40-million private placement this week. Under that deal, Mr. McEwen, who is a director of the company and already its largest shareholder, will buy 121 million Minera shares at 33 cents each. If successful, the financing will increase Minera's outstanding share count by 64 per cent and raise Mr. McEwen's stake in the company to 54 per cent from 24 per cent.
"I'd say, under the circumstances, the company found itself in a position where it had very few choices," Mr. McEwen said in an interview.
Print Edition - Section Front
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Not everyone agrees. Britain's Hochschild Mining PLC is crying foul over the plan and says Minera is ignoring a takeover offer it has made for the company.
Roberto Danino, Hochschild's deputy chairman, said his company made two proposals to Vancouver-based Minera on Friday. The first proposal was to purchase Minera's 49-per-cent stake in the San Jose project for $70-million (U.S.). Hochschild, which is the project's operator and owns the remaining 51 per cent of the mine, said the offer for Minera's stake represents a cash consideration of about 45 cents (Canadian) a share.
Secondly, Hochschild said it presented an all-stock takeover bid for all the outstanding shares of Minera consisting of 0.22 Hochschild shares for each Minera share. Based on Friday's closing share price, the bid would value Minera at about 62 cents a share.
Minera has yet to disclose the Hochschild proposals to its shareholders and instead it unveiled plans on Monday for the private placement with Mr. McEwen.
"That offer being accepted when there are clearly two superior offers on the table that take away all of their financial distress problems, all this is being done without consulting the shareholders. I really do believe that shareholders must be made aware of these offers," Mr. Danino said.
Mr. McEwen made his offer to a special committee of Minera directors on Thursday. Hochschild made its proposal on Friday. The special committee and the company's financial advisers evaluated the proposals over the weekend.
Allan Marter, who heads the special committee, said the company accepted Mr. McEwan's offer because it was "firm" and because Minera was under "very severe" time pressure.
Minera is facing major financial stress because of an $11.3-million (U.S.) cash call triggered by Hochschild and due Feb. 17. If the company could not come up with the money, its stake in the San Jose mine would be diluted down to less than 40 per cent. If that happened, Minera would then be offside on its covenants regarding a $17.5-million bank loan.
There have been several discussions and potential offers for Minera over the past 15 months that "haven't come to anything," Mr. Marter said.
Mr. McEwen echoed that sentiment, saying he gives "very little credibility" to the Hochschild proposal because the London company has "poisoned the well" during past negotiations.
Hochschild said its offers to Minera will expire today at 5 p.m. London time.
MINERA ANDES (MAI)
Close: 54¢, up 5.5¢

Minera Andes MAI.to - Rob McEwen's intent to take control of Minera Andes despite Hochschild bid. MAI.to, TNR.v, CDNX, XAU, HUI, GDX.

TNR Gold TNR.v was first mentioned on NR about the scoping study of Los Azules from Minera Andes. Solitario is a subsidary of TNR Gold.

""Certain of the MIM Properties are subject to an underlying option agreement, which is the subject of a dispute between Xstrata Copper, as option holder, and Solitario Argentina S.A. ("Solitario"), as the grantor of that option and the holder of a back-in right of up to 25%, exercisable upon the satisfaction of certain conditions, within 36 months after the exercise of the option by Xstrata Copper. The dispute surrounds the validity of the 36 month restriction described above. If Solitario is successful, MIM's interest in substantially all of the MIM Properties may be reduced by up to 25% and upon exercise of the MASA Option, MASA's interest in that part of the Combined Property may be similarly reduced (the "Solitario Claim")."

TNR Gold is also holding property Escorpio IV adjusent to Los Azules and subject of a law suit from junior against Xstrata. More on law suit.

MCEWEN CND$40M, HOCHSCHILD US$70M
Rob McEwen's intent to take control of Minera Andes despite Hochschild bid

The promise of another Rob McEwen-owned and operated company-and a $70 million cash offer by Hochschild Mining has Spokane's Minera Andes basking in the investment spotlight.Author: Dorothy KosichPosted: Tuesday , 10 Feb 2009
RENO, NV -

Uber mining investor Rob McEwen Monday rode to the rescue of financially strapped junior miner Minera Andes, (TSX: MAI) Monday despite a Hochschild Mining offer to also get control of its joint venture partner in the San Jose Project.
Goldcorp founder McEwen--who originally invested in Minera Andes at the same time he was heavily promoting the future of U.S. Gold on the Battle Mountain-Eureka Trend in Nevada-appears to be getting serious about Minera's San Jose silver and gold joint venture with Hochschild Mining, which is the 51% owner and operator of the Argentina mine.
Minera Andes announced Monday that the company had entered into a letter of agreement with McEwen, who has agreed to make a Cdn$40 million private placement in the Spokane, Washington-based junior miner/explorer. McEwen's offer will give Minera the US$11.3 million it needs immediately to cover a cash call imposed by Hochschild in respect of Minera's 49% interest in the San Jose project.
Another US$17.5 million will be applied to repay Minera Andes' debt to Macquarie Bank Limited. The remainder of McEwen's investment will be used for "general corporate purposes and exploration," Minera said.
McEwen, who now owns 24.3% of Minera Andes, would exercise control of 53.7% of the junior miner under the agreement.
However, Hochschild had already made its own bid on 6th February to acquire Minera Andes 49% ownership interest in San Jose for a cash consideration of up to US$70 million or Cdn45-cents per MAI share - and made a public announcement to this effect late Monday. Hochschild also made an offer to acquire all of Minera Andes for 0.22 shares of Hochschild for each share of MAI held, implying a value of US$0.50 for each MAI share.
In addition, Hochschild offered to give Minera Andes an extra 10 days to repay its cash call to Hochschild, which is due on February 17th, as well as offering short-term bridge financing to Minera Santa Cruz, another Hochschild/Minera joint venture.
Minera Andes has applied to the Toronto Stock Exchange for an exemption from security holder approval requirements. The members of the Special Committee of the Corporation's Board of Directors, Allan Marter, Donald Quick and Victor Lazarovici "have concluded that the corporation is in serious financial difficulty as a result of the cash call of the San Jose Project and the outstanding indebtedness, the private placement is intended to improve the corporation's financial situation, and the private placement is reasonable for the corporation under the circumstances."
The TSX has advised the company that it is subject to a de-listing review as a result of relying on the hardship exemption. "The corporation believes that, upon completion of the private placement, it will be in compliance with all of the TSX listing requirements," Minera said.
In addition to its San Jose JV, Minera announced last week that a preliminary assessment of the Los Azules copper project, also in the San Juan Province of Argentina, could produce 170,000 tonnes annually of copper concentrate for 23.6 years. Annual by-product production is estimated to average 38,000 ounces of gold and 1.26 million ounces of silver.
The project is in a remote location near Argentina's border with Chile.

Minera Andes MAI.to - Hochschild offers to buy JV partner Minera Andes. MAI.v, TNR.v, CDNX, GDX, HUI, XAU.

Things are getting hot in Argentina. Now it brings another perspective on yesterday's announcement of Robert McEwen investment of CAD40 mln. Cash call coming out of the blue from Hochschild Mining for Minera Andes MAI.s now looks not as innocent: share price was driven down into the ground and then this proposal submitted to the Minera Andes Board on Friday. McEwen will have to explain couple of things to shareholders as well: why this information was not made public before of his announcement because it is definitely material. Anyway we are very pleased to see this development and they are positive for Argentina outlook as a whole, for Minera Andes shareholders options to chose from and for Los Azules project development which we are monitoring via TNR Gold TNR.v Canadian junior involved in the story.

Hochschild offers to buy JV partner Minera Andes

LONDON (Reuters) - Latin American silver and gold producer Hochschild Mining Plc (HOCM.L) has made an all-share takeover offer for its joint venture partner Minera Andes Inc. (MAI.TO), Hochschild said on Tuesday.
Hochschild said it made a proposal on February 6 to the board of Minera to pay 0.22 of its shares for each Minera share, which valued Minera shares at 62 Canadian cents, a 100 percent premium to the closing share price on February 5.
Hochschild said at the same time, it made an alternate proposal to acquire Minera's 49 percent stake in their joint venture San Jose for $70 million.
Hochschild said it was making known the proposals following Minera's announcement on Monday that it had agreed a C$40 million ($32.73 million) private placement with Robert McEwen at a price of 33 Canadian cents per share.
Hochschild said its proposals expire on Wednesday.
(Reporting by Eric Onstad; Editing by Erica Billingham)

Decoupling the forgotten Dirty Word - Gold buying frenzy in China. GDX, HIU, XAU, AUY, FXI, TNR.v, RMK.v.

As Don Coxe has recently put it: "High unemployment in USA does not mean that everybody else became poor". We can see some encouraging signs from China: economy was based on export and it has fallen dramatically, but consumer side of things is just at the very beginning in China. Few Asian strategist start to talk about decoupling again. As you remember we were strong believers in decoupling and are seeing more and more signs confirming it. The Great Bull in commodities maybe has just a brief pause after all: to clean up the bet on over leveraged Western consumers and make a strong base for future development based on more prudent monetary system.

Gold buying frenzy in China

Source: CCTV.com
02-10-2009 17:25
As the financial markets reach some of the lowest points in decades, gold continues to shine in China. Sales of gold jewelry and Chinese New Year themed gold products are more popular than ever.
Sales of gold products reached their highest point in the beginning of this year in Beijing's major shopping centers. Beijing Caibai Shopping Mall says its revenue from gold jewelry reached nearly 330 million yuan in January, up nearly 40 percent year on year.
Wang Chunli, general manager of Beijing Caibai Shopping Mall, says, "most people are buying gold bars as part of a new year collection or as an investment."
Mr Shen, a consumer, says, "I invested in a few gold products. The markets for stocks and funds last year were terrible. So gold is enjoying good earnings. The gold I bought was only 90 yuan per gram. But now it's worth over 190 yuan per gram. So I am thinking I should invest more money in gold."
Ms Xiao, a consumer, says, "I bought this gold bar when it was only 93 yuan per gram. But the price has gone up to nearly 200 yuan per gram, so I am thinking about selling it. "
Analysts say gold is easy to store, and is the safest investment. That's why the market is seeing a surge in the number of consumers buying gold now.
World gold prices reached a record high of 1,030 US dollars per ounce last year. By year end it had dropped by 15 percent. Experts say that compared with other financial products, gold suffered the least from the financial meltdown.
Wang Lixin, Great China manager of World Gold Association says, "gold is a very solid asset. It does not belong to any countries, or governments, or institutions. And its connection to financial products is very low. Its value does not fall with stocks or funds. The overall performance of gold has been quite stable in the past. So we see lots of people diversifying their investments and putting money into gold."
A consumer says, "the financial crisis is so terrible. But the price of gold won't drop. So it could come handy if I need some cash."
Analysts say investments like stocks, bonds, and real estate are highly connected to economic performance. They rise and fall at the same time. Chinese consumers now believe gold is a very good product for holding its value.

Minera Andes MAI.to 40 mln CAD placement from Robert McEwen. MAI.to, TNR.v, CDNX

Just after publishing a positive scoping study on Los Azules Robert McEwen has stepped in with a vote of confidence in Argentina, Minera Andes and Los Azules. Great news for TNR Gold TNR.v involved in Los Azules and a good news for Minera Andes shareholders, they could be disappointed with the very substantial dilution and a level for placement at 0.33CAD. These money are coming for price for sure, but on a positive note McEwen will hold more then 50% of the company and cash call killing the share price will be out of the picture with bank debt due in March. Company will be very well positioned for development of Los Azules. Lukas Lundin is out of the picture at the moment: he did not participated in PP and his director has recently resigned.

Minera Andes announces C$40.0 million private placement with Robert R. McEwen

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.

Don Coxe on Commodities CRB, makets SPX, DOW and Gold. GDX, SPY, DIA, QQQQ.

Don Coxe is the guy to listen to because of the amount of money involved with the guys he is preaching to.

Commodities are pointing to outperforming markets: commodities will lead the market on recovery, they were strongest into the crises, they were hit the hardest, now they will outperform. "Big change in the wind".

http://events.startcast.com/events6/199/C0001/Event.aspx

Juniors CDNX time is to bring sweet days back. TNR.v, CZX.v, SST.v, OK.v, RMK.v, SBB.v, MGN, FVI.v, CNU.v, RVM.to, BBT.v, AMM.to, ASM.v.

In Canadian Venture CDNX life is coming back with still scared money inflow. Squeeze of volatility is resolving in an upside move. Markets bear rally, decisive move down in US Dollar, move up in Gold, Silver, Oil and other commodities on reflation hope will bring spectacular gains to survived Juniors.

Crises has separated Survives and Failed ones, consolidation is under way and first deals are announced on acquisition front. Chinese are shopping around and their appetite for even out of fashion Zinc assets is very encouraging. Copper has rallied on the news from China and lower level of PMI contraction in January compare to December. Dry Bulk Index is coming back from levels of total devastation. Trade disrupted by lack of credit is coming back, now the question will be how much is it affected by lack of demand?

Fortunate are those who preserved their dry powder and was buying at November - December lows, first time buyers are really blessed with these buying opportunities. What to do those who are sitting on paper losses? Time will come to make a difficult decisions: market will not come back to the old highs in a straight line. Time has gone for over the roof optimistic valuations for low grade properties in the middle of nowhere and may never come back. Some companies are weathering the storm better then the others. We are all blessed in a sense that we can see how Juniors are passing their graduation exams; if they can survive recent carnage they will build new value in a better market. You will have to find winners among survivors.

Time will come to sell and allocate capital to your winners, the key word they are yours - you have to find them. Not everything is so miserable and hopeless here - you now know where to search for, what to look for and there is not so many of them any more worth a look. Look who can not only survive, but to deliver results, get financing and obtain new properties.

Treasuries TLT - why it is The Bubble and why it is bursting. TYX, TNX, FVX, DXY, GDX, HUI, XAU

Tonight it looks like we are in a positive mode and everything is going up, we are pulling this chart for a change.

Nothing to add here to the picture.

Casualties are to follow: first US Dollar to break down and then FED to become technically insolvent. All those rushed into "Safe Heaven" play are sitting on a huge for a bond market losses, surprise for a lot of players will be that they will never come back until maturity in a new Bear market for Treasuries. If we are right in our suspicion that all those Cayman buyers of Treasuries are hiding FED agents among them, picture of Deterioration is FRIGHTENING.

Silver - just wait until the Greed will come back. SLV, XAU, SLW, SST.v, KTN.v, OK.v, MGN, CNU.v, FVI.v, SBB.v, SAX.to, RVM.to, ASM.v.

Silver is out of fashion, Silver miners are filing for bankruptcies and Juniors were selling below cash value in December. Victim of its dual monetary and commodity qualities Silver was punished hard during the Irrational Delusion stage of recent madness. Silver miners and Silver streams SLW SST.v companies were sold into oblivion because of their Debts and Leverage to silver price.

Time is for a Change here in a public perception: Silver is up more then 50% from its low at 8.4 in October 2008 at Friday's close at 13.16 USD/oz. Technically Bear move from its highs of above 20 USD/oz is over. Strong silver companies are up more then 100% SSRI, Juniors are making over 100% up from lows as well SST.v, OK.v, MGN, SBB.v, CNU.v among many of them.

It will continue to be a very volatile trade, but technical picture is very strong on a weekly. RSI is confirming recent higher highs, MACD after Buy cross over is moving up and only approaching positive territory, STO has a lot of positive momentum.

Candles have made a Bullish Three White Soldiers formation breaking out MA200. With enough momentum in Gold going up next week, resistance between 13-14 level could be cleared and 15 USD/oz level will be not a distant dream any more.

We expect that Silver miners, Silver Streams and particularly Junior Silver mining companies with appropriate quality in resources/management/financing will remind us sweet days of Bull market with silver price approaching 15 USD.

Cherry picking will be the name of the game as usual.

Gold miners GDX: break out above MA200 - Bull is back! GDX, HUI, XAU, AUY, TNR.v, RMK.v, AMM.to, BTT.v.

Finally Gold Miners are back into official Bull stage above their MA200. Technically it is very strong picture. GDX is breaking up after third retest of recent highs, STO is positive, MACD is turning up in a Buy cross over, RSI is confirming new highs.

Gold Miners are following gold this time and breaking up only now. We are in a position to see the change of leadership and important move up in GDX.

Gold challenging old highs is an indication that recent Irrational Delusion with strong US Dollar and Treasuries as a Safe Heaven is a minor historical aberration of a normal people' madness and that effective market theory can not stand test of a real life. Gold Miners are facing higher underlining Gold prices and lower cost with suppressed oil and commodities prices. It is time to raise capital as they are doing, but not because we are at the "important top", but because their future in the form of resources which now belongs to another companies are at the Important Low. M&A is the only way to survive and not become a prey. Companies are mining today grades which before 2000 were considered not more then dust. They need new projects to avoid production cuts due to lack of reserves. Here where Canada Venture CDNX and Juniors will come back into play.