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Tuesday, March 8, 2011

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Why You Should Buy Physical Gold NOW!

Posted: 08 Mar 2011 06:59 AM PST

Official figures released recently by the World Gold Council have confirmed that the annual demand for gold in 2010 rose by 9%, a ten year high, suggesting that the current price is not only sustainable but likely to increase further. Indeed, if you want to protect what you have and want to be sure that you are left with something for your future survival then get into gold now. It is the inflation proof investment that is like fire insurance for your personal wealth. Exactly like fire insurance, do you think you should buy it before or after the event? Words: 702

How China Can Achieve Its Top Economic Priority of Price Stability

Posted: 08 Mar 2011 05:58 AM PST

The Angry Bear submits:

By Rebecca Wilder

Premier Wen Jiabao made stabilizing prices China's top economic priority for 2011. Amid the surge in world energy costs, this story didn't make the front page. However, Chinese policymakers did take their time spent out of the limelight to allow the Chinese yuan to appreciate roughly 0.3% against the U.S. dollar.

Chinese inflation is elevated and near 5% (4.9% is the official rate as of January 2011). I understand that China's growth adjustment will take time, but if you've got unwanted inflation, then domestic policy is too loose (fiscal or monetary). And in this case, it's the monetary policy that's too loose. That goes for both currency and rates policies.

On the rates front: There's a very frothy feel in domestic asset markets, specifically the property market. Low rates and easy money have sparked a(nother) property boom in China, one that policymakers are trying to tamp down.


Complete Story »

Endeavour Silver Expands Its Silver/Gold Resources for 7th Consecutive Year

Posted: 08 Mar 2011 05:56 AM PST

Endeavour Silver Corp. (TSX: EDR, NYSE-Amex: EXK, DB-Frankfurt: EJD) announced today that for the seventh consecutive year, the Company has grown its silver and gold resources in Mexico. Endeavour released today its updated NI 43-101 reserve and resource estimates to December 31, 2010 (see table below) for its two producing silver mines (the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State) and two exploration projects (the Parral Project in Chihuahua and Arroyo Seco Project in Michoacán) in Mexico.

India Markets Tuesday Wrap-Up: Markets End Strong on Global Cues

Posted: 08 Mar 2011 05:47 AM PST

Equitymaster submits:

After opening on a positive note, the Indian stock market indices managed to sustain the momentum till the closing hour. While the BSE-Sensex closed 217 points higher (a 1.2% rise), the NSE-Nifty closed higher by 59 points (up 1.1%). The BSE Midcap and the BSE Small cap indices also saw some buying interest, seeing gains of 1% and 0.8% respectively. All sectoral indices were in the positive zone, with IT and banking stocks leading the gainers. However FMCG and capital goods stocks did not see much buying interest.

As regards major global stock markets, most Asian indices closed in the green on the back of some easing in crude oil prices. India was among the top gainers in Asia along with Hong Kong and Singapore. Most European indices opened in the green. The rupee was trading at Rs 45.1 to the dollar at the time of writing.

Coal India is


Complete Story »

The Dollar Index: Getting Very Specific on the...

Posted: 08 Mar 2011 05:25 AM PST

SafeHaven

Bifurcation in Precious Metals Complex and the Implications

Posted: 08 Mar 2011 05:25 AM PST

Silver has been red hot lately and the silver shares have joined in the fun. Yet, we haven't seen a corresponding breakout in Gold or in the gold shares (as evidenced by GDXJ and GDX). In the chart below we show SIL (large silver stocks), Silver, Gold, GDXJ (gold juniors) and GDX (large cap golds).

Best Article on Silver in Ten Years!

Posted: 08 Mar 2011 02:36 AM PST


Silver and Gold Remain Near Record Highs as Greek and Portuguese Debt Hammered

Posted: 08 Mar 2011 01:36 AM PST

gold.ie

$US rallying....Kuwait on board

Posted: 08 Mar 2011 12:22 AM PST

Watch the dollar today, because its going up right now for some godforsaken reason some homogoat is buying it. Kuwait wants to protest now too..."day of rage" March 11, This weekend should be fantastic.

Trade expert: 50% dollar devaluation could be coming

Posted: 08 Mar 2011 12:02 AM PST

From Newsmax:

Author and trade expert Clyde Prestowitz warns that it would take up to a 50 percent devaluation of the dollar against the Chinese yuan and an end to the greenback as the global reserve currency to truly right the global trade economy.

Prestowitz is founder and president of the Economic Strategy Institute and formerly a counselor to the Secretary of Commerce during the Reagan Administration.

In a post at the website of Foreign Policy magazine, Prestowitz details a list of scheduled global banking and trade discussions. Then he dismisses them all, saying that the real problems facing the U.S. economy relate to...

Read full article...

More on the U.S. dollar:

A dollar collapse could be imminent

You must diversify now before it's too late

The next 10 days could determine the fate of the U.S. dollar

Checking in from PDAC

Posted: 07 Mar 2011 11:26 PM PST

TORONTO – The annual Prospectors and Developers Association of Canada (PDAC) conference is underway in the heart of downtown Toronto. This is one heck of a big conference and the energy here is as high as in any conference we've seen over the years. PDAC is a great place to judge the currently frenetic pulse of the mining industry, but frankly the conference, once a modest affair where grizzled prospectors brought in samples to show to business suited developers and get their pet projects noticed or raise more money to continue prospecting, … the conference where not all that long ago there might have been less than 5,000 attendees total has become unwieldy in its size and scope according to long-time veteran PDAC members we talk to. Word is that there will be more than 27,000 attendees at this year's confab, and we can attest to the claustrophobic feeling that comes when the isles between exhibitor booths are jam packed and barely moving at times. The din of the crowd in the Exhibitors' hall makes it difficult to hear, so what do people do? They speak louder and that ratchets up the noise level to something on the level of a few simultaneous freight trains at high speed. ...

Silver Shocker: Ted Butler

Posted: 07 Mar 2011 09:08 PM PST

¤ Yesterday in Gold and Silver

The gold price slowly worked its way higher through all of Far East and early London trading on Monday...and then really caught a bid once the London a.m. gold fix was in at 5:30 a.m. Eastern time...10:30 a.m. GMT.

Then minutes before the Comex open at 8:20 a.m. Eastern, the bullion banks went to work...and that, as they say, was that.  Even the smallest of rallies ran into an eager not-for-profit seller...and gold closed down a couple of bucks on the day.

Silver was on a tear all through Far East and early London trading, but ran into the usual resistance once Comex trading began at 8:20 a.m. Eastern.  Volume was very heavy...and I'm guessing that the bullion banks may have been doing some short covering.

For the most part, silver and gold had the same price patterns, but silver managed to hold onto some its gains...however JPMorgan made sure that the bulk of them vanished before the close of electronic trading at 5:15 p.m. New York time.  Silver was up over a buck for a short time before the Comex opened...and ended the New York trading day up about two bits from its Friday close.

  

I was surprised how poorly the gold stocks did...but I'm sure that the general weakness in the rest of rest of the equity markets contributed to their performance as well.  The HUI finished down 0.88% on the day.

The same can't be said for most silver stocks yesterday...as they were on fire.  I was amazed at the huge gains that some of these stocks turned in.  Undoubtedly they would have done even better than that if the bullion banks hadn't hammered the silver price at the Comex open.

I would surmise that there's a lot of moment/day traders in some of these smaller cap silver stocks...and at the first sign of a price drop, they will hit the sell button en masse.  Needless to say, I won't be one of them.

  

The dollar traded sideways until around 8:30 a.m. in London, before taking about a 60 point header...hitting its nadir around 7:00 a.m. in New York.  From there, an 80 point rally began that ended at precisely 2:00 p.m. Eastern time...and then it basically traded sideways for the rest of the New York session.

If you look at the highs and lows for both gold and silver yesterday, it's a bit of a stretch to say that it was all dollar related...as the highs and lows in the dollar and the PMs don't match at all.

  

The CME's Daily Delivery report showed that two gold along with twenty silver contracts were posted for delivery tomorrow.

Both GLD and SLV had additions yesterday.  GLD's inventory rose 214,588 troy ounces...and SLV was up another big chunk...this time it was 3,319,604 troy ounces.

Over at Switzerland's Zürcher Kantonalbank for the week that was, they didn't add any gold to their gold ETF...but added 126,383 troy ounces of silver.  I thank Carl Loeb for these numbers.

For the fifth day in a row, the U.S. Mint had no sales report.

There was a lot of in-and-out activity over at the Comex-approved depositories on Friday...and at the end of the business day, they reported a smallish decline of 42,416 troy ounces of silver.  The link to the action is here.

The big overnight increase in silver prices had a huge effect on my bullion dealer's business yesterday, as it was wall-to-wall buyers at his store all day long.  He had one of the biggest one-day silver sales days in the history of his business.  Price almost no longer matters, as the buyers just want in.  One can only image what business may be like when silver goes main-stream.  One thing is for sure...there won't be much [if any] silver to sell...because at that point in the cycle, demand will totally swamp supply.  I would suspect that it's getting close to that point already.

Washington state reader S.A. was kind enough to slip this Dow vs. Silver graph into my in-box yesterday...and I thought it was more than worth sharing.

  

One can only image what business may be like when silver goes main-stream.
SLV ETF adds 3,319,604 troy ounces of silver. Smith Barney's Louis Yamada says - $80 Silver, $2,000 Gold & $140 Oil. Portfolio's true value is in ounces, not dollars - John Embry

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U.S. sets $223B deficit record

Today's first story is courtesy of reader Scott Pluschau...and is posted over at the washingtontimes.com website.  The federal government posted its largest monthly deficit in history in February, a $223 billion shortfall that put a sharp point on the current fight on Capitol Hill about how deeply to cut this year's spending.

That one-month figure, which came in a preliminary report from the Congressional Budget Office, dwarfs even the most robust cuts being talked about on the Hill, and underscores just how much work lawmakers have to do to get the government's finances in balance again.  The link is here.

Caught in the Euro Trap: Internal Opposition Grows to Further Bailout Measures

Today's next story is a Roy Stephens offering taken from yesterday's news items over at the German website spiegel.de.  Angela Merkel can't win when it comes to the euro bailout. Leaders of her own government coalition in parliament openly oppose new measures that could create additional liability for German taxpayers. The chancellor is expected to offer concessions in Brussels, but they could haunt her in state elections.  It's a longish piece...and the link is here.

Greek Debt Rating Cut Three Steps to B1 by Moody's on Rising Default Risk

Here's another story courtesy of reader Scott Pluschau.  This one's posted over at Bloomberg.  The cost of insuring Greek debt against default rose to a record after Moody's Investors Service cut the country's credit rating by three notches.  The Finance Ministry in Athens called the move "completely unjustified." Moody's said lagging tax collection and "implementation risks" would make it more difficult to reach budget-cutting targets in a 110 billion-euro ($154 billion) bailout.

I still think that Greece [along with the rest of the PIIGS] is done for...and will have to withdraw from the EU...and the Euro.  The link to the story is here.

Flat-Earth European Central Bank misreads oil spike again, and kicks Spain in the teeth

Roy Stephens sent me this Ambrose Evans-Pritchard offering out of yesterday edition of The Telegraph.  Ambrose, none to happy with ECB chief Jean-Claude Trichet about his utterances on higher interest rates, gets up on his soap box and really gets going.

The European Central Bank has once again risen to the bait. Faced with an oil supply shock that deflates incomes, it plans to tighten the vice yet further with a knee-jerk rate rise in April.

Spain is now being whacked again. One-year Euribor rates jumped 14 basis points to 1.92pc within hours after ECB chief Jean-Claude Trichet uttered the code words "strong vigilance". As the ECB knows, this is the rate used to price most Spanish mortgages...and the Spanish press is up in arms.

This is a longish commentary for Ambrose...but if you have the time, it's worth the read...and the link is here.

Spanish town reintroduces peseta

While Ambrose Evans-Pritchard was waxing philosophical about Spain in one section of The Telegraph yesterday, columnist Fiona Govan filed this story from Madrid in another section.  This story is courtesy of reader 'David in California'. 

The townsfolk of Mugardos in northwestern Spain are being encouraged to search out forgotten stashes of the defunct currency and to spend it in local shops.  More than 60 shops in the fishing village on the rugged Galician coast have agreed to accept pesetas alongside the euro in an attempt to encourage spending during a time of economic crisis.

This is kind of cute...and I hope it catches on in the rest of the country, because one of these days they're going to using that currency again for real.  This is a very short, but very interesting piece...and the link is here.

Gaddafi Doubles Down, More Dangerous Than Ever

The ever-vigilant Roy Stephens has the first of two stories about Libya.  This first one is written by Pepe Escobar over at the Asia Times...and is posted on the alternet.org website. 

You're Muammar Gaddafi, and you're sitting in your Bab al-Azizia bunker sipping green tea and surveying the odds of staying in power. Let's see. You control some neighborhoods in Tripoli; some cities in the far west, near the Tunisian border; your birthplace, Sirte. And that's it.

This is a wonderful piece...and the joy of it is, that it isn't very long...and definitely worth the read. The link is here.

Walker's World: Gadhafi fights back

Roy's second piece on Libya is written by UPI Editor Emeritus Martin Walker...and it isn't quite as wonderful as the previous piece out of the Asia Times.  After that piece, it's more like a cold shower.  It's also more of read...but it's worth it as well.

Above all, Gadhafi has stalled the momentum of the revolution and dented the heady claim that the Arab Spring was unstoppable. He has held out the prospect, however slim and however unsavory, that tyranny can survive and that the bad guys can still win.  The link is here.

My remaining stories, of which there are still quite a few, are all precious metals related in one form or another.

Louis Yamada - $80 Silver, $2,000 Gold & $140 Oil

Smith Barney's technical research chief, Louise Yamada, told King World News that her target prices for gold are $1,500 and then $2,000, for silver $40 and eventually $80, and for oil $115 and eventually $140. You can find excerpts from the interview at the KWN Internet site...and the link is here.

Richard Russell - Gold to $6,000 as Media Ridicules

Posted: 07 Mar 2011 09:08 PM PST

Here's a blog that Eric King sent me late last night.  It is, as the title states, by the 'R' Man himself...and it's worth the read as well.  The link is here.

As Silver Prices Soar, Silver Coins Get Smaller

Posted: 07 Mar 2011 09:08 PM PST

Reader Scott Carpenter sent along this next item of interest that's posted over at the goldandsilverblog.com website.  Last month, the Perth Mint of Australia began selling one-tenth ounce Silver Koala coins. Previously, this series had been offered in sizes ranging from one-half ounce to 1 kilo. Other numismatic and bullion coin offerings from the Perth Mint have also been available in sizes starting at one-half ounce, but this seems to be the first instance that a one-tenth ounce size has been available.

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Portfolio's true value is in ounces, not dollars, John Embry says

Posted: 07 Mar 2011 09:08 PM PST

Here's another interview posted over at King World News...and I thank Chris Powell for [once again] saving me the trouble of writing the preamble..."Sprott Asset Management's John Embry tells Eric King that demands for delivery could explode the derivatives-fueled suppression of silver, that other governments are likely to devalue their own currencies to support the U.S. dollar if it starts breaking down too much, that such devaluation can only send the precious metals upward, and that the true measure of an investment portfolio isn't any dollar figure but its total ounces of precious metal.

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The Constraints on Silver Supply - Bob Quartermain

Posted: 07 Mar 2011 09:08 PM PST

It's more than slightly embarrassing when a reader sends you something from your own website that you aren't aware of.   Such was the case with Washington state reader S.A...who sent me the following Casey Research video of ex-Silver Standard Resources Chairman Bob Quartermain.

At the Casey Research Gold and Resource Summit, Bob Quartermain spoke about the constraints facing the silver supply today, "Mine supply doesn't meet demand...and in many of the new applications, silver isn't being recycled, so it's not going to come back into the scrap supply chain...We'll have to go out and find new mines or new sources for silver; and that can only speak to higher prices."

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Market Corner

Posted: 07 Mar 2011 08:59 PM PST

From the latest week ended.

Dow Jones Industrial Average: Closed at 12159.88 -88.32 on normal volume and falling momentum. Stocks were weak on this Friday on rising oil prices after having an up day yesterday on phony jobs data. Today we see a new head and shoulders top on the Dow with both shoulders at 12250 resistance. We saw the PPT come in at 330 pm today just before the close to prop stocks and prevent a down Monday. Shares were down over -160 early in the session and appeared it would last into the close. Technically, stocks are still inside the bull trading range and above all moving averages. Next week they could sink and support at 12,000 followed by more buying as the IPO offering parade continues. Barring negative weekend news, expect an up Monday, but perhaps after a weak open to digest what happened on this Friday.

S&P 100 Index: Closed at 592.54 -4.87 on normal volume and falling momentum. Price corrected in a normal ABC consolidation and began a new wave up today that was smothered by crude oil worries. Yet, after today's PPT later day propping, we think buyers will return on Monday as they have all those IPO shares to sell. New support is the 20 day average at 591.58 and price is above all moving averages, which is bullish. I see an early set-up for a peaking continuation triangle that might come together in 4-8 weeks creating a correction. The up-trend remains intact and we forecast more buying next week with perhaps a slower Monday opening.

S&P 500 Index: Closed at 1321.15 -9.82 on falling but now flat momentum and normal volume. The technical trend is up and price is above all moving averages. New support is the 20-day average at 1316.51 and new resistance is 1325 on the price. It appears the price has finished a new wave one up and sold back in a normal two wave. Three up is the largest wave and that should be coming next week. This index reports the actions of the largest traders and we look for higher volumes next week as they work to sell more stock faster in this IPO mania. Price is firmly supported in a secondary tightening channel within a channel. This should pressure volumes and price higher on Monday after, perhaps, a weak and undecided open.

Nasdaq 100 Index: Closed at 2359.96 -11.86 on normal volume and flat momentum. Price is above all moving averages with new resistance at 2400 and support at 2350 on price. We see a new and tight continuation triangle readying for a new bull run. Wave one up of the new wave set is intact and we are 110 points above major support. I look for a rally to 2400 producing a new double top followed by mild selling and then a newer race even higher in price above 2400. Expect Monday buying for this index.

XAU Index: Closed at 215.86 +0.80 with price breaking out and above the top trading range channel line. Momentum is up but the metal to shares ratio is sideways. Resistance is 220 followed by 230. We are forecasting a rally all the way into May with peaks about March 10th and May 10th… two normal correction cycles on the way. The recent high of 230+ would produce a double top but this time I think we blow through that number, mostly on rising silver prices near May 10th. Gold is up too, but is not going as fast as silver jumping up on both the technicals and fundamentals. For the rest of this month expect a very gradual rise to 220 and then a stall traveling sideways.

30-Year Treasury Bonds: Closed at 119.22 +0.84 after falling lower in the Friday session. New support is 119.00 and resistance is 119.50. Bill Gross said on television today that the bond game is over. We knew this but were pleased to hear the truth from a big bond trader. Price is sliding lower in a bear trading channel. Momentum was rising but is now going flat. We've had a major price gap selling down between 121.50 and 120.50. Watch for price to rise, fill that gap and fall down again the 3rd week of March. For now we get one more sell to 118.00 followed by a mini-rally and then a skid to 117.50. Should bonds go under 118.00 and hold for three sessions, look for a sell down to 115.50.

Gold: Closed at 1429.60 +12.90 after touching a former recent high on gold at 1433.40. Momentum is up and we look for a rally all the way to May 10th when we expect a peak followed by selling. For now, gold is up above recent highs that today are new support. Price is above all moving averages. Last spring we had both a May peak followed by higher highs in later July. Should stock markets go negative in May and traders perceive gold as the go to market afterwards, we could see a repeat performance. Watch for new buying next week.

Silver: Closed at 35.59 +1.34 as silver experienced some fast rallies this week. We are seeing more days when trading ranges go wider and faster. Just this Friday, silver was up +3.8% moving in nearly a one dollar range on open interest of 84,000 contracts. It appears a new rally, five wave set has begun with a new assault on 35.85 hard resistance. Should this number be broken next, I see $38.48-$38.85 on higher resistance.

US Dollar: Closed at 76.40 -0.09 on falling momentum and dropping through major support at 77.00. Lower support is 76.50-75.50. The European central bank head made noises like he would increase interest rates to control inflation. In the USA, Bernanke and Geithner are saying the opposite and will hold rates near zero. Just in January the dollar was barely under 82.00 supported by 80.00. We see downside dollar pressures for 4-6 weeks as stocks rise and Federal Reserve bond and dollar printing go wild. Our next go to selling price for the dollar will be 75.50 by mid-month of March.

Crude Oil: Closed at 104.56 +2.73 on higher momentum and a trading range price breakout. Price is now above all moving averages with the nearest one $8.00 below the close. Intermediate resistance is $106 with hard resistance at $108 and $115. Our latest high for 2011 is $125-$135 with a growing excellent chance it goes even higher. Libya is oil-off-line for many months with its foreign workers fleeing the country. The USA remains negative toward new drilling. While demand in the US is falling, production is forecast to fall faster.          If  developments in the Middle East continue as is, and we think they will, the new normal for crude oil is a technical $132 with $5 gasoline in the US. Expect prices moving toward $106-$108 next week.

CRB Index: Closed at 362.88 +11.59 on rising momentum mostly from crude oil. However, the CRB has old resistance at 360 where we are now. A new technical high could be 546.41-550.00. It would be no surprise to us to see the price at 375-425 resistance within 4-6 weeks. New support is 350 and new higher resistance is 375. Expect a nice rally in the CRB over the next 4-8 weeks bulled by energy, grain and metals. -Traderrog


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Deteriorating Confidence Makes Governments Insolvent

Posted: 07 Mar 2011 06:40 PM PST

The inability of governments to pay their obligations in constant dollars, also recognized as inflation by the public and ongoing default by capital, has been occurring since 1934. It certainly intensified in 1971. The secular gold trend suggests that 1971 was simply the dress rehearsal for a bigger show taking place right now. As a side note, the association of hyperinflation with lower stock price under the fiat currency model is not historically consistent.

Headline: Hidden Debt Makes Governments Insolvent: Bear

As we prepare for the two-year anniversary of the March 9 lows for stock markets, investors are confronted with a number of worries that make it difficult to celebrate the near 100 percent jump in equities since then.

Oil prices are soaring off the back of unrest in the Middle East, there is talk of rate hikes from European Central Bank President Jean-Claude Trichet and unemployment remains stubbornly high despite some better news from the US on Friday.

On top of these, a mountain of debt is growing but because it is off governments' balance sheets it has been so far ignored, one man who worries perhaps more than most, Albert Edwards from the global strategy team at Societe Generale, said.

One of the world's most famous bears, Edwards is adamant the global economy and financial markets are not in a good place.

Source: cnbc.com

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Terraco Gold

Posted: 07 Mar 2011 05:39 PM PST

TEN on AOTH

Richard (Rick) Mills
Ahead of the Herd

As a general rule, the most successful man in life is the man who has the best information

Terraco Gold Corp TSX.V – TEN is an aggressive junior exploration company with properties in Nevada  and Idaho.

The Almaden property, located in Idaho, has been drilled with 887 holes, and 60,000 meters of historical drilling and has a Measured and Indicated gold resource of 864,000 oz of gold and an inferred resource of 84,000 oz gold. This resource is likely open pittable and heap leachable.

Almaden is similar to mines in northern Nevada which host bonanza‐grade gold in feeder zones below lower grade disseminated ores. High‐grade feeder system examples include; Midas (7.6M ounces), Mule Canyon, Buckhorn and Hollister
A majority of the historic drilling has been only to a depth of 100 meters and the resource is still open along strike for several hundred meters and also at depth. Earlier metallurgical work done in 1997 indicates a recovery rate of 63%. It's believed this recovery rate can be increased.

Bonanza‐grade gold occurs in areas of boiling commonly starting

at 150 m to 200m below disseminated ores
While there is real value in the current resource of almost one million gold ounces deeper drilling may identify high grade and perhaps bonanza gold and silver ore shoots that may have fed the current resource. The Almaden resource appears to be similar to mines in northern Nevada (Hollister @ 4 million oz gold or Midas @ 7.6 million oz gold) that had bonanza grade gold zones in feeder zones below the disseminated gold discovered to date.

What is so exciting about the upcoming Almaden drill program is that there is substantial evidence to suggest there might be higher grade, perhaps bonanza grade, feeder shoots at depth. The main body of mineralization runs along an exposed ridge. This does two things for a company – firstly an out cropping orebody on top of a ridge reduces the strip ratio in a low grade deposit but secondly, and much more important is, its roughly 200 meters higher than the start of the Stinking Water drill hole.

The Exploration potential on the Almaden property is in extending the known mineralization and potential discovery of higher grade feeder shoots

If Terraco's interpretation of how the feeder system works is correct, than higher grade feeder shoots could start showing at roughly 200 meters of depth. The Stinking Water drill hole was collared 600 meters away from the Almaden Main, started some 175 meters lower than the upper surface of the outcropping orebody and contains high grade intercepts – one intercept graded 11.5 grams a tonne gold over 3.7 meters.
The suggestion, to this author, is that the Hollister/Midas Mine model of having higher grade ore shoots feeding the current resource is potentially very real at Almaden.
Drilling is expected to start in about a month, permitting is underway. In Idaho permits are not needed for private or patented land – only for federal land and there are very few holes going to be drilled on Federal land.
Terraco's Moonlight gold/silver property is located in Pershing County, Nevada and adjoins the Barrick/Midway JV project, Spring Valley, to the south – Barrick and Midway have identified over 1,800,000 ounces of gold resource. Midway's Spring Valley project and Terraco's Moonlight are both on the Black Ridge Fault. Moonlight is also on trend and approximately five miles north of the Coeur Rochester silver/gold mine – also on the Black Ridge fault.
A systematic grass roots program on Terraco's Moonlight property consisting of mapping, rock sampling (results were as high as 4 grams per tonne gold and 2500 grams per tonne silver) and airborne and ground geophysical surveys identified several targets that appear to display either geological or geophysical characteristics similar to areas of gold mineralization in Barrick/Midway Spring Valley Project.
Terraco's Moonlight Project is one of the largest early stage

properties remaining on the Humboldt Trend

Chip sampling at the historic Moonlight Mine yielded results of up to 2510 grams per tonne (gpt) silver across one meter and 1045 gpt silver across 1.5 meters. Within the Moonlight Basin, dump and outcrop sampling yielded values as high as 3.75 gpt gold and 257 gpt silver.
Sampling has also revealed previously unidentified anomalous gold, silver and base metals in outcrop and float elsewhere within the Moonlight Project area.
At many of the old mines and prospects on the Moonlight property gold and silver do not appear to be closely correlated in sample results; this might suggest these precious metals originated from different mineralizing events.
There is some evidence to suggest that Moonlight could be the next mineralized event in a string of deposits on the Humboldt Trend ranging from Relief Canyon at the south end, north through Nevada Packard, Rochester, Spring Valley and Moonlight.
There have been two small drill programs by Terraco on the Moonlight property in the past. Results from both programs were, well let's just say they were less than expected. But let's remember something here – exploration is basically a succession of experiments. Each experiment you do, success or failure, brings in more data to increase your knowledge.
Since Terraco did their last drill program understanding of the mineralization controls of Midway's Spring Valley project (and other deposits in the area) has evolved immensely.
Drill results, sampling, mapping and a greater understanding of Spring Valley mineralization has led the Terraco team to change targets and move from the basin further east. Terraco plans to drill Moonlight this summer. Tom Chadwick – a Black Ridge fault expert – has been hired to do the mapping and coordinate his work with Joe Inman who is doing the geophysical work.
They now have new targets in the same host rocks and structural environment as Spring Valley. Also cross structures are extremely important at Spring Valley and Terraco has some major cross structures targeted in this summer's drill program.
Conclusion
Terraco Gold Corp. has two exciting and very well thought out drill programs starting in the first half of the year. Terraco's management has, in the past, been successful in all aspects of running a junior resource company – this team has been there and done it, not once but numerous times. Is Terraco Gold and its Almaden and Moonlight drill programs on your radar screen?
If not, maybe it should be.
Richard (Rick) Mills
rick@aheadoftheherd.com
www.aheadoftheherd.com

If you're interested in learning more about the junior resource market please come and visit us at www.aheadoftheherd.com.

Membership is free, no credit card or personal information is asked for.

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Richard is host of www.aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 200 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell.com, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald, Resource Investor and Financial Sense.

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This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

Richard Mills does not own shares of Terraco Gold Corp. TSX.V – TEN

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The Case For $2,250.00 Ounce "Silver"

Posted: 07 Mar 2011 05:12 PM PST

Goldsilver

Carlin Trend’s gold

Posted: 07 Mar 2011 05:02 PM PST

GoldCoin

Silver Miners: Much Cheaper Than Internet Stocks

Posted: 07 Mar 2011 04:54 PM PST

Gold 1,500? The World Is Changing!

Posted: 07 Mar 2011 04:50 PM PST


ECB : No change in Gold assets last week

Posted: 07 Mar 2011 04:35 PM PST


March Pullback

Posted: 07 Mar 2011 04:20 PM PST

Silver looks VERY top heavy and is due for a healthy correction. How low will she go? When should we load up?

I think we may touch $25 before a relative bottom is reached.




Would now be a good time to swap Ag for Au?

Silver Shocker

Posted: 07 Mar 2011 04:07 PM PST


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