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Gold and
silver have fallen out of bed this week as the top stories provide an
opportunity for the mainstream media to deliver another volley of ‘things
are getting better’ nonsense into the economic ear of the permanently
numbed investing public.
Osama Bin Laden’s worst day of his life ended
with his death Sunday at the hands of United States Storm Troopers who caught
the lanky lethal lunatic with his pants down at fancy mansion outside the
Pakistani capital of Islamabad. The Pakastani
government was also caught without pants, admitting it had no idea of the
presence of Bin Laden nor the impending raid by Navy
Seals. The sheer glee of that fact was enough to send gold, silver and oil
into a tailspin, which we predict will last a week or so before this small
victory is forgotten amid the bigger problems the United States, and thanks
to its larcenous government, the rest of the world have ahead of them.
But all the good or bad news in the world
can’t stop the drills from turning among the roster of 1,600 Canadian
TSX and TSX Venture listed exploration companies, who are responsible for 80%
of the world’s precious resource financings and a proportional number
of the important discoveries in precious metals.
Today brought several big announcements, which,
following on the heels of last week’s
knocked-it-straight-outta-the-park intersection by Newstrike
Capital (TSX.V:NES, NWSKF:PK) of a 230 metre
intercept grading 7.51 grams per tonne gold,
demonstrates how the record investment in junior exploration is finally
paying off.
Newstrike wasn’t the only one putting out news of a big
hit, though it certainly qualifies as the home run of 2011 so far. Golden
Predator Corp. (TSX:GPD) drilling on two fronts, announced a 74 metre intercept grading 7.08 grams per tonne gold from the company’s winter drilling
program at Brewery Creek in the Yukon. This intersection follows others from
the same program including 28 metres grading 5.06
grams per tonne, 32.9 metres
grading 3.01 grams per tonne. Brewery Creek is
shaping up to be a large, high grade deposit.
Also noteworthy was Rio Alto Mining Ltd.’s
(TSX.V:RIO) 173 metre hit grading 1.53 grams per tonne gold from its La Arena mine in Peru. Another hole
reported in the same press release graded 1.2 grams per tonne
gold over 208 metres.
Galway Resources Ltd. (TSX.V:GWY) announced a 125 metre intercept grading 3.8 grams per tonne
gold, within which was a 36 metre section grading 8.9
grams per tonne gold from its California property,
which is along the eastern border of Ventana
Gold’s La Bodega project in northern Santander province.
Galway has two drill programs running right now with
a total of 5 rigs working and an additional one expected to join the
underground program at the Vetas target.
Considering the substantial drilling success realized to date, Galway
Resources looks like it is going to become very attractive to Ventana, which was purchased by Eike
Batista’s AUX Canada Acquisition Corp. for $13 a share.
James West
MidasLetter Premium
Edition identifies 5 stocks on the first Sunday of each month from the TSX
Venture Exchange that are expected to double within 12 to 18 months, 9 out of
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