*** Local Mining News ***
Chilean court revokes Barrick’s Pascua-Lama $16-million fine, but orders new ones (3/4/2014, Mining.com)
General Moly Announces Results of an Optional Mine Planning Scenario with Improved Economics for Mt. Hope Project, Should the Molybdenum Market See Sustained Lower Prices (Press release, 2/25/2014)
MIDWAY FORMALIZES JOINT VENTURE WITH BARRICK SPRING VALLEY, NEVADA (2/24/2014, Press Release)
Timberline Receives Extension from NYSE MKT (2/20/2014)
Latest Nevada Gas Prices (click this link)
My latest Kitco commentary:
From Gold Bear to Gold Bull (Kitco News, Feb.18,2014)
My latest column in the Mining Quarterly:
Major McCoy and the Rebellious Ores of Eureka (p. 83-87 online, MQ Spring Edition 2014)
Paintings by Mariana Titus, The Three Anas & The Three Moon Anas, are presently at Lafitte Guest House & Gallery, New Orleans
Monday's AM prices used for this morning's early analysis:
COMEX Gold price = $1.333.6/oz (April contract most active)
COMEX Silver = $20.880/oz (May)
COMEX Copper = $3.0905/lb (May)
NYMEX WTI crude = $102.15/bbl (April)
ICE Brent crude = $108.84/bbl (April)
Eureka Miner’s Gold Value Index© (GVI) = 88.81 (gold value relative to a basket of commodities that include oil, copper and silver; 100 is a high gold value)
Value Adjusted Gold Price© (VAGP) = $1,254.6/oz
COMEX - VAGP = +78.95/oz; gold is trading at a premium to key commodities (bullish implication - "bottom is in for gold")
As of 8:48 AM (percentages are from yesterday's closing prices; parentheses are a comparison to last Friday's AM price):
Barrick Gold (ABX) = $19.915 down 2.14% (Last Friday AM $20.44)
Newmont Mining (NEM) = $24.24 down 2.77% ($23.18)
Midway Gold (MDW) = $1.25 down 1.57% ($1.23)
General Moly (GMO) = $1.25 down 1.57% ($1.19)
Timberline Resources (TLR) = $0.155 down 2.52% ($0.147)
Gold broke above the ephemeral $1,350 per ounce-level this week on worsening conditions in the Ukraine and a falling U.S. dollar. Today, a strong employment report from the Labor Department put a damper on gold's rally which is presently trading at $1,333.6. An additional 175,000 jobs added in February compared to an expected 150,000 is good news indeed together with upward revisions to previous months. However, a loan default in China is a potentially serious event as explained in my Kitco gold survey input (see below):
This morning there are many cross-currents affecting gold price. A surprisingly strong U.S. employment report brought the U.S. dollar off its 4.5-month low and raised the 10-year Treasury note above 2.8% - both headwinds for gold’s recent rally to the $1,350 per ounce-level. Before the NFP [Nonfarm Payroll Report], gold had been buoyed by the crisis in the Ukraine and a falling dollar. Another important influence is continued credit concerns in China highlighted by a loan default of a solar company yesterday. Some have likened this to a “Bear Sterns” event which could, if true, reverse China’s flagging physical demand for the yellow metal. The default has already savaged red metal prices with May Comex copper plunging to $3.0890 per pound, recovering some to presently trade at $3.0905.
My gold target for next week is $1,345 per ounce betting there will be slightly more bullish than bearish influences evolving from a very mixed global picture.
Spring 2014 Mining Quarterly
The Spring 2014 Mining Quarterly is out and can be accessed online.
MQ editor Marianne Kobak McKown has done another terrific job putting together the latest mining news and events in Northern Nevada. The ole Colonel submitted a column on Eureka's Major William Wirt McCoy - someone we can be very proud as we celebrate Nevada's Sesquicentennial:
Major McCoy and the Rebellious Ores of Eureka (p. 83-87 online)
In his 70 years, Major McCoy was a physician, cattleman, statesman and mining entrepreneur. He served with distinction in the Mexican-American War and the legislatures of three states. Most importantly for Nevada, he found an economic way to reduce the stubborn argentiferous lead ores of the Eureka mining district. His solution brought Eureka from a struggling mining camp in 1869 to become Nevada’s second largest city with a population of 10,000 and a world class lead-silver producer by 1878. Before his death in 1881, this remarkable man had contributed to the creation of Nevada through his brave actions in the Mexican-American War, served as a Senator of the “Battle Born State” and helped form Eureka town site and County.
My most sincere thanks to the many folks in Eureka that contributed to the historical and field research for this article. This included locating the sites of the McCoy waterworks, Eureka Smelting Company, brickyard south of town and quarry for the sandstone that revolutionized smelting in the Eureka mining district (photo above).
Happy reading, pardner!
Kitco Gold Survey
Here is my input for the weekly Kitco Gold Survey:
Photos by Mariana Titus
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Paintings by Mariana Titus, The Three Anas, are presently at Lafitte Guest House & Gallery, New Orleans
Write Colonel Possum at firstname.lastname@example.org for answers to your questions or to request e-mail updates on the market