Oil experienced one of its largest price swings in history during the third quarter as prices fluctuated within a range of $56 a barrel. From its record high of $147.27 a barrel on July 11, it went a low as $90.51 a barrel on September 16.
Overall in the quarter oil futures fell by 28 percent, the largest fall since 1991.
Along with the obvious economic factors which have slowed down oil demand, there is also the strengthening of the U.S. dollar during that period as well.
November delivery for crude oil fell to close to $40 during the quarter to settle at $100.64 at about 3:00 p.m on the NYMEX. That's the first time it has fallen in seven quarters. It went up by $4.27 in today's trading.
When you take into account OPEC announcing they're cutting production, and the two hurricanes recently hitting the south and disrupting oil flow, it's really an amazing event that the black liguid has stayed this low. Add the ongoing Nigerian attacks on their pipelines and rigs, along with the conflict between Russia and Georgia and it's even more astounding.
It seems like oil futures are completely driven by demand at this time, as according to Deutsche Bank the price of Oil for 2009 New York will probably drop by 23 percent to around $92.50 a barrel. At this time U.S. demand for petroleum has dropped about 4 percent from the same period last year.
Although gas prices increased by almost 9 cents today, overall its followed the decline in oil for the quarter, dropping by 11 percent to end at a nationwide average of $3.633 a gallon, according to AAA.
Tuesday, September 30, 2008
Paramount Gold and Silver Corp. Reports on "Clavo 99"
CHIHUAHUA, MEXICO, Sep 30, 2008 (MARKET WIRE via COMTEX) -- Paramount Gold and Silver Corp. (PZG ) reports assay results from three drill holes at Clavo 99. The higher good grades in the deeper, northwestern extension of Clavo 99 have been confirmed by diamond drill holes SM-54, 60 and 61.
As seen in previously reported holes SM-46, 50 and 52 close by to the northwest, hole SM-60 had both modest grades over a modest thickness, suggesting that it is near the margin of Clavo 99. Hole SM-54 was an excellent hole (4.33m @ 3.27 g/t Au, 215.9 g/t Ag), fairly typical of the Clavo as a whole. However, SM-61 was further into the clavo and deeper. It had similarly good grades, but a greater thickness of 13.2 m of 1.57 g/t Au and 107.2 g/t Ag.
For assays and maps visit www.paramountgold.com
--------------------------------------------------------------------------
Grade
Thickness
Hole From To Interval True Gold Silver Gold Gold
Width Equiv.(i) Equiv.(i)
--------------------------------------------------------------------------
Number (Meters)(Meters) (Meters)(Meters)(grams/ (grams/ (grams/ (grams
ton) ton) ton) x meters)
--------------------------------------------------------------------------
SM-54 211.70 212.70 1.00 0.57 1.79 338.0 8.55 4.87
--------------------------------------------------------------------------
222.80 223.80 1.00 0.57 1.53 120.0 3.93 2.24
--------------------------------------------------------------------------
245.90 262.50 7.60 4.33 3.27 215.9 7.59 32.86
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SM-60 161.20 166.40 5.20 2.98 0.13 17.8 0.49 1.46
--------------------------------------------------------------------------
172.3 178.20 5.90 3.38 0.61 20.60 1.02 3.45
--------------------------------------------------------------------------
204.10 208.50 4.40 2.52 1.29 6.1 1.41 3.55
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SM-61 183.85 192.00 8.15 5.35 1.04 88.9 2.82 15.09
--------------------------------------------------------------------------
incl. 186.00 190.30 4.30 2.82 1.52 156.6 4.65 13.11
--------------------------------------------------------------------------
197.00 205.00 8.00 5.25 2.47 251.2 7.49 39.32
--------------------------------------------------------------------------
205.00 208.50 3.05 2.00 0.32 8.3 0.49 0.98
--------------------------------------------------------------------------
208.50 213.00 4.95 3.25 2.03 21.9 2.47 8.03
--------------------------------------------------------------------------
213.00 217.20 4.20 2.76 0.21 5.4 0.32 0.88
--------------------------------------------------------------------------
--------------------------------------------------------------------------
197.00 217.20 20.20 13.25 1.57 107.2 3.71 49.17
--------------------------------------------------------------------------
(i) Calculated at Ag/Au = 50
Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "Drill holes SM-54, 60 and 61 revealed additional high grade gold and silver intercepts at Clavo 99. These latest results maintain our excitement for the potential of extending this high grade zone along strike and to greater depths."
Quality Control
Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.
The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).
Contacts:
Paramount Gold and Silver Corp.
Larry Segerstrom, COO
866-481-2233 / 613-226-9881
Paramount Gold and Silver Corp.
Chris Halkai, Investor Relations
866-481-2233 / 613-226-9881
Paramountgold.com
SOURCE: Paramount Gold and Silver Corp.
Paramountgold.com
Copyright 2008 Market Wire, All rights reserved
As seen in previously reported holes SM-46, 50 and 52 close by to the northwest, hole SM-60 had both modest grades over a modest thickness, suggesting that it is near the margin of Clavo 99. Hole SM-54 was an excellent hole (4.33m @ 3.27 g/t Au, 215.9 g/t Ag), fairly typical of the Clavo as a whole. However, SM-61 was further into the clavo and deeper. It had similarly good grades, but a greater thickness of 13.2 m of 1.57 g/t Au and 107.2 g/t Ag.
For assays and maps visit www.paramountgold.com
--------------------------------------------------------------------------
Grade
Thickness
Hole From To Interval True Gold Silver Gold Gold
Width Equiv.(i) Equiv.(i)
--------------------------------------------------------------------------
Number (Meters)(Meters) (Meters)(Meters)(grams/ (grams/ (grams/ (grams
ton) ton) ton) x meters)
--------------------------------------------------------------------------
SM-54 211.70 212.70 1.00 0.57 1.79 338.0 8.55 4.87
--------------------------------------------------------------------------
222.80 223.80 1.00 0.57 1.53 120.0 3.93 2.24
--------------------------------------------------------------------------
245.90 262.50 7.60 4.33 3.27 215.9 7.59 32.86
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SM-60 161.20 166.40 5.20 2.98 0.13 17.8 0.49 1.46
--------------------------------------------------------------------------
172.3 178.20 5.90 3.38 0.61 20.60 1.02 3.45
--------------------------------------------------------------------------
204.10 208.50 4.40 2.52 1.29 6.1 1.41 3.55
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SM-61 183.85 192.00 8.15 5.35 1.04 88.9 2.82 15.09
--------------------------------------------------------------------------
incl. 186.00 190.30 4.30 2.82 1.52 156.6 4.65 13.11
--------------------------------------------------------------------------
197.00 205.00 8.00 5.25 2.47 251.2 7.49 39.32
--------------------------------------------------------------------------
205.00 208.50 3.05 2.00 0.32 8.3 0.49 0.98
--------------------------------------------------------------------------
208.50 213.00 4.95 3.25 2.03 21.9 2.47 8.03
--------------------------------------------------------------------------
213.00 217.20 4.20 2.76 0.21 5.4 0.32 0.88
--------------------------------------------------------------------------
--------------------------------------------------------------------------
197.00 217.20 20.20 13.25 1.57 107.2 3.71 49.17
--------------------------------------------------------------------------
(i) Calculated at Ag/Au = 50
Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "Drill holes SM-54, 60 and 61 revealed additional high grade gold and silver intercepts at Clavo 99. These latest results maintain our excitement for the potential of extending this high grade zone along strike and to greater depths."
Quality Control
Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.
The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).
Contacts:
Paramount Gold and Silver Corp.
Larry Segerstrom, COO
866-481-2233 / 613-226-9881
Paramount Gold and Silver Corp.
Chris Halkai, Investor Relations
866-481-2233 / 613-226-9881
Paramountgold.com
SOURCE: Paramount Gold and Silver Corp.
Paramountgold.com
Copyright 2008 Market Wire, All rights reserved
Gold Futures Down for First Time in Three Sessions
For the first time in three days gold fell as the U.S. dollar strengthened, putting downward pressure on the futures' price for December delivery.
The precious metal finished the session down by $13.60 to end at $880.80 an ounce on the Comex division of the NYMEX. That brought the metal down by 5.5 percent for September.
For the quarter it's down by 6.1 percent, while for they year it's still in the positive, having grown by 1.7 percent so far.
The precious metal finished the session down by $13.60 to end at $880.80 an ounce on the Comex division of the NYMEX. That brought the metal down by 5.5 percent for September.
For the quarter it's down by 6.1 percent, while for they year it's still in the positive, having grown by 1.7 percent so far.
Friday, September 26, 2008
US Wheat Follows Other Commodities Down
With no fresh news on underlying wheat fundamentals, the grain followed other commodities down based on the unsurety of the economic bailout of the financial sector in the U.S.
December wheat at the Chicago Board of Trade fell by 20 1/4 cents to $7.16 a bushel as investors held back with the weekend coming up and the economic uncertainty.
The Kansas City Board of Trade followed suit as it came under pressure as well. December wheat fell by 19 1/2 cents to $7.16 a bushel.
There were also concerns about demand needing to increase after Egypt and Iran decided to acquire wheat from Russia this week.
As usual, the Minneapolis Grain Exchange followed in the footsteps of its CBOT cousin, also experiencing a decline to $7.89 3/4 a bushel, a 16-cent fall.
Traders are looking for direction from the quarterly grain stocks and small grain reports by the U.S. Department of Agriculture at 8:30 a.m. EDT Tuesday. Although an estimate, it'll help give a better picture on the actual usage of the grain.
It is thought at this time that the report will say wheat production for August fell from the expected 2.462 billion bushels originally estimated to 2.459 billion bushels.
December wheat at the Chicago Board of Trade fell by 20 1/4 cents to $7.16 a bushel as investors held back with the weekend coming up and the economic uncertainty.
The Kansas City Board of Trade followed suit as it came under pressure as well. December wheat fell by 19 1/2 cents to $7.16 a bushel.
There were also concerns about demand needing to increase after Egypt and Iran decided to acquire wheat from Russia this week.
As usual, the Minneapolis Grain Exchange followed in the footsteps of its CBOT cousin, also experiencing a decline to $7.89 3/4 a bushel, a 16-cent fall.
Traders are looking for direction from the quarterly grain stocks and small grain reports by the U.S. Department of Agriculture at 8:30 a.m. EDT Tuesday. Although an estimate, it'll help give a better picture on the actual usage of the grain.
It is thought at this time that the report will say wheat production for August fell from the expected 2.462 billion bushels originally estimated to 2.459 billion bushels.
High Desert Gold's Update on Bluebird Copper-Silver Project Drill Program
VANCOUVER, BRITISH COLUMBIA, Sep 26, 2008 (MARKET WIRE via COMTEX) -- High Desert Gold Corporation ("HDG" or the "Company") is pleased to announce that it is drilling the sixth diamond drill hole at the Bluebird copper-silver property in western Montana. The initial plan is to drill 850 metres in order to test the continuity of copper and silver mineralization which was previously identified by drilling conducted by Anaconda Copper Company ("Anaconda") as reported in HDG PR08-12, August 11, 2008.
The Bluebird copper-silver project is located in Granite County, Montana approximately 25 miles south of Phillipsburg and 30 miles west of Anaconda. The property is a Spar Lake type target with the HDG property position covering a stratabound, primary copper-silver occurrence within the Bonner Formation of the Belt Supergroup. HDG controls 98 federal lode claims through staking and a lease agreement covering over 7,500 metres of strike length of the host stratigraphy. The initial drilling program at Bluebird will consist of a total of 7 diamond drill holes which will determine if the copper-silver mineralization has continuity along strike.
All holes drilled to date include intervals of observable copper mineralization. The longest visual interval of copper mineralization is seen in hole 1 which includes a 27.5 metre interval from 128 to 155.5 metres. This copper mineralization includes visible chrysocolla, malachite and chalcocite. The prior drill hole in this area drilled by Anaconda averaged 0.88% copper and 9.3 gpt silver over 29 metres including 10.4 metres averaging 1.68% copper and 22.7 gpt silver. (HDG PR08-12, August 11, 2008). The Anaconda drill results were released prior to the establishment of the National Instrument 43-101 reporting standards and may not be in compliance with current standards, therefore may not be reliable and HDG is not relying on these results.
Five holes have been drilled in the area of previous drilling and are testing approximately 1,100 metres of strike. A second new area will also be tested with two drill holes which is located 3 kilometres to the north along the strike of the mineralized horizon. The second area has similar surface geochemistry to the area of past drilling.
The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The two major properties held by HDG are the flagship Canasta Dorada gold property in Sonora, Mexico, and the Gold Lake porphyry copper-gold-molybdenum property in New Mexico.
The Qualified Person on the Bluebird property is Randall Moore, Executive Vice President of Exploration, High Desert Gold Corporation and he has reviewed the content of this press release.
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential," "interpretation" and similar expressions. Information concerning the interpretation of soil samples and drill results also may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. In particular, the Anaconda drilling results contained herein predate National Instrument 43-101 and may not be in compliance with the current reporting standards, therefore these results may not be reliable and HDG is not relying on these results. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Contacts:
High Desert Gold Corporation
Richard Doran
Executive Vice President, Investor Relations
(303) 584-0606
(303) 758-2063 (FAX)
Email: rdoran@highdesertgoldcorp.com
The Bluebird copper-silver project is located in Granite County, Montana approximately 25 miles south of Phillipsburg and 30 miles west of Anaconda. The property is a Spar Lake type target with the HDG property position covering a stratabound, primary copper-silver occurrence within the Bonner Formation of the Belt Supergroup. HDG controls 98 federal lode claims through staking and a lease agreement covering over 7,500 metres of strike length of the host stratigraphy. The initial drilling program at Bluebird will consist of a total of 7 diamond drill holes which will determine if the copper-silver mineralization has continuity along strike.
All holes drilled to date include intervals of observable copper mineralization. The longest visual interval of copper mineralization is seen in hole 1 which includes a 27.5 metre interval from 128 to 155.5 metres. This copper mineralization includes visible chrysocolla, malachite and chalcocite. The prior drill hole in this area drilled by Anaconda averaged 0.88% copper and 9.3 gpt silver over 29 metres including 10.4 metres averaging 1.68% copper and 22.7 gpt silver. (HDG PR08-12, August 11, 2008). The Anaconda drill results were released prior to the establishment of the National Instrument 43-101 reporting standards and may not be in compliance with current standards, therefore may not be reliable and HDG is not relying on these results.
Five holes have been drilled in the area of previous drilling and are testing approximately 1,100 metres of strike. A second new area will also be tested with two drill holes which is located 3 kilometres to the north along the strike of the mineralized horizon. The second area has similar surface geochemistry to the area of past drilling.
The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The two major properties held by HDG are the flagship Canasta Dorada gold property in Sonora, Mexico, and the Gold Lake porphyry copper-gold-molybdenum property in New Mexico.
The Qualified Person on the Bluebird property is Randall Moore, Executive Vice President of Exploration, High Desert Gold Corporation and he has reviewed the content of this press release.
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential," "interpretation" and similar expressions. Information concerning the interpretation of soil samples and drill results also may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. In particular, the Anaconda drilling results contained herein predate National Instrument 43-101 and may not be in compliance with the current reporting standards, therefore these results may not be reliable and HDG is not relying on these results. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Contacts:
High Desert Gold Corporation
Richard Doran
Executive Vice President, Investor Relations
(303) 584-0606
(303) 758-2063 (FAX)
Email: rdoran@highdesertgoldcorp.com
Royal Canadian Mint Says Ready for Gold Bullion Coin Demand
We talked yesterday about the inability of some gold products to keep up with the demand, as a number of coins are being suspended until production can catch up.
There's been a surge in the acquisition of physical gold coins as uncertainty in the financial sector has caused people to look for safety; not just investment safety, but an alternative currency in case things completely fall apart.
So even though the American Buffalo 24-karat gold one-ounce bullion coin has been suspended, the Royal Canadian Mint says it's not suspending its gold coin production at this time.
Coin dealers all across North America have reported a big surge in the demand for gold coins as the financial markets continue to flirt with disaster.
While the Royal Canadian Mint may eventually have to suspend some operations, they're in a much better position than their American counterparts because of the abundance of gold in Canada. That makes them less dependent on outside suppliers.
They control their mint from digging it out of the ground to striking the coins.
There's been a surge in the acquisition of physical gold coins as uncertainty in the financial sector has caused people to look for safety; not just investment safety, but an alternative currency in case things completely fall apart.
So even though the American Buffalo 24-karat gold one-ounce bullion coin has been suspended, the Royal Canadian Mint says it's not suspending its gold coin production at this time.
Coin dealers all across North America have reported a big surge in the demand for gold coins as the financial markets continue to flirt with disaster.
While the Royal Canadian Mint may eventually have to suspend some operations, they're in a much better position than their American counterparts because of the abundance of gold in Canada. That makes them less dependent on outside suppliers.
They control their mint from digging it out of the ground to striking the coins.
Oil Drops on Bailout Uncertainty
Oil settled about $1 lower on Friday as the unknown concerning the bailout package continues to paralyze investors across the board.
Crude in the U.S. settled at $106.89 a barrel, while Brent crude in London slipped by $1.06 to $103.54.
With demand for oil slackening because of consumers tightening their wallets, oil would probably be much lower if the hurricanes hadn't disrupted production in the Gulf of Mexico. That has helped support the commodity in otherwise difficult circumstances.
Shell Oil said it will take about two more weeks to get all its offshore fields in production again. Shell is the largest oil producer in the Gulf.
About 25 percent of U.S. crude production is in the Gulf of Mexico.
Crude in the U.S. settled at $106.89 a barrel, while Brent crude in London slipped by $1.06 to $103.54.
With demand for oil slackening because of consumers tightening their wallets, oil would probably be much lower if the hurricanes hadn't disrupted production in the Gulf of Mexico. That has helped support the commodity in otherwise difficult circumstances.
Shell Oil said it will take about two more weeks to get all its offshore fields in production again. Shell is the largest oil producer in the Gulf.
About 25 percent of U.S. crude production is in the Gulf of Mexico.
Thursday, September 25, 2008
Missouri State Treasurer Sarah Steelman Rejects Financing Ethanol Plant Citing "Conflict of Interest"
After a couple of years of time given to remove conflicts of interest, Show Me Ethanol LLC had its application for a loan rejected by the Missouri State Treasurers Office after failure to comply. The loan requested was for between $2 to $6 million through the linked deposit program called Big Missouri.
The purpose of the Big Missouri program is to lend funds to small businesses at low interest rates to give them a good shot at growth.
Treasurer Sarah Steelman's spokeswoman said that they weren't able to figure out what type of involvement a company called Central Missouri Biofuels had in the matter.
The conlict of interest exists because state Rep. John Quinn and the brother of Gov. Matt Blunt are investors in Show Me Ethanol, and it couldn't be determined what type of role they had in Central Missouri Biofuels.
While Quinn was whining about the decision, it makes sense to keep oneself out of these types of situations where they could come back and bite you.
As for Steelman, she has always had a zero-tolerance policy towards these types of situations.
When the process began, lawmakers or relatives weren't allowed to benefit from assistance from the state. This year there was a change in policy so that they could invest up to 2% in companies that receive grants or loans from the state.
Even though they are allowed to legally do it, it's still unethical. The mischieve that could come from granting taxpayers money to dubious ethanol projects is too great to allow lawmakers or their relatives to financially benefit from the public loans.
Corn Futures Drop as Market Waits on Bailout Plan
Uncertainty in the market and overall economy have investors on the sidelines in a number of categories, and concerning corn futures it's no different.
Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.
As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.
Still, investors are waiting on the sidelines until, and if, the agreement is made law.
Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).
Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.
As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.
Still, investors are waiting on the sidelines until, and if, the agreement is made law.
Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).
US Gold's Drilling in the Magistral District Returns 23.7 Opt Silver Over 5.9 ft., Within 9.2 Opt Silver Over 31.0 ft.
Results Continue to Extend Main Zone
US Gold's Drilling in the Magistral District Returns 23.7 Opt Silver Over 5.9 ft., Within 9.2 Opt Silver Over 31.0 ft.
Results Continue to Extend Main Zone
Last update: 10:16 a.m. EDT Sept. 25, 2008
TORONTO, ONTARIO, Sep 25, 2008 (MARKET WIRE via COMTEX) -- US GOLD CORPORATION announces that drilling within the Magistral District, Sinaloa State, Mexico, continues to expand the mineralization and intersect richer silver grades at the Palmarito Project. Drilling has successfully extended the Main Zone by 310.0 feet (ft.) (95.0 meters) to the northeast and 105.0 ft. (32.0 meters) vertically. The furthest hole drilled to the northeast returned 23.7 ounces per ton (opt) silver over 5.9 ft., (814.0 gpt (grams per tonne) silver over 1.8 m), within an intercept of 9.2 opt silver over 31.0 ft. (313.8 gpt silver over 9.5 m). The zone remains open and shows good potential for expansion.
PALMARITO - MAIN ZONE
Richer Silver Mineralization at Depth
Core drilling continues to successfully extend the silver-gold mineralization down-dip of the Main Zone (Figure 1 & 2). RC results released earlier this year included 15.7 opt silver eq. over 30 ft. (538.6 gpt silver eq. over 9.1 m) and 13.6 opt silver eq. over 15 ft. (464.7 gpt silver eq. over 4.6 meters). US Gold's exploration is discovering higher silver grades at depth, which suggests drilling may be nearing a possible feeder system.
Metallurgical Recoveries and Net Smelter Returns are assumed to be 100%
Numbers may not add due to rounding.
The results above successfully expanded the Main Zone by 310.0 ft. (95.0 meters) to the northeast. The vertical extent of the mineralization was expanded by 105.0 ft. (32.0 meters) to a total of 863.0 ft (263.0 meters) below surface. The furthest hole drilled to the northeast returned our highest assay values to date, 23.7 opt silver over 5.9 ft., (814.0 gpt silver over 1.8 m), within 9.2 opt silver over 31.0 ft. (313.8 gpt silver over 9.5 m). Two additional holes, stepping out 325.0 ft (100.0 meters) further to the northeast, are in progress and are targeting the possible feeder system. The zone remains open and shows good potential for expansion.
"The higher-grades at Palmarito are great to see! Although additional drilling is required, we believe the potential to discover more high-grade is excellent. Overall, our exploration in Mexico is starting to hit its stride and I look forward to watching it unfold," stated Rob McEwen, Chairman and CEO of US Gold.
ABOUT US GOLD
US Gold Corporation is a United States based gold exploration company exploring throughout northeastern Nevada and Mexico. The Company has large land holdings and a strong treasury. US Gold's shares trade on the American and Toronto Stock Exchanges under the symbol UXG.
QUALIFIED PERSON
This news release has been viewed and approved by Steve Brown, Senior Geologist and Project Manager, who is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Mexican exploration properties. All samples were analyzed by ALS Chemex utilizing a 4 acid digestion with ICP finish.
Holes were drilled with HQ and NQ core. Samples were taken every 6.6 ft (2 meters) for areas that were believed to be non-mineralized and selectively chosen for mineralized areas based on geological characteristics.
Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "intends," "anticipates," "believes," "expects" and "hopes" and include, without limitation, statements regarding the Company's results of exploration, plan of business operations, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors". Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.
To view the associated figures with this press release, please visit the following links:
http://media3.marketwire.com/docs/UXG925fig1.pdf
http://media3.marketwire.com/docs/UXG925fig2.pdf
Contacts:
US Gold Corporation
Ana Aguirre
Manager, Investor Relations
(647) 258-0395 or Toll Free: 1-866-441-0690
(647) 258-0408 (FAX)
Email: info@usgold.com
SOURCE: US Gold Corporation
mailto:info@usgold.com
Copyright 2008 Market Wire, All rights reserved.
US Gold's Drilling in the Magistral District Returns 23.7 Opt Silver Over 5.9 ft., Within 9.2 Opt Silver Over 31.0 ft.
Results Continue to Extend Main Zone
Last update: 10:16 a.m. EDT Sept. 25, 2008
TORONTO, ONTARIO, Sep 25, 2008 (MARKET WIRE via COMTEX) -- US GOLD CORPORATION announces that drilling within the Magistral District, Sinaloa State, Mexico, continues to expand the mineralization and intersect richer silver grades at the Palmarito Project. Drilling has successfully extended the Main Zone by 310.0 feet (ft.) (95.0 meters) to the northeast and 105.0 ft. (32.0 meters) vertically. The furthest hole drilled to the northeast returned 23.7 ounces per ton (opt) silver over 5.9 ft., (814.0 gpt (grams per tonne) silver over 1.8 m), within an intercept of 9.2 opt silver over 31.0 ft. (313.8 gpt silver over 9.5 m). The zone remains open and shows good potential for expansion.
PALMARITO - MAIN ZONE
Richer Silver Mineralization at Depth
Core drilling continues to successfully extend the silver-gold mineralization down-dip of the Main Zone (Figure 1 & 2). RC results released earlier this year included 15.7 opt silver eq. over 30 ft. (538.6 gpt silver eq. over 9.1 m) and 13.6 opt silver eq. over 15 ft. (464.7 gpt silver eq. over 4.6 meters). US Gold's exploration is discovering higher silver grades at depth, which suggests drilling may be nearing a possible feeder system.
Metallurgical Recoveries and Net Smelter Returns are assumed to be 100%
Numbers may not add due to rounding.
The results above successfully expanded the Main Zone by 310.0 ft. (95.0 meters) to the northeast. The vertical extent of the mineralization was expanded by 105.0 ft. (32.0 meters) to a total of 863.0 ft (263.0 meters) below surface. The furthest hole drilled to the northeast returned our highest assay values to date, 23.7 opt silver over 5.9 ft., (814.0 gpt silver over 1.8 m), within 9.2 opt silver over 31.0 ft. (313.8 gpt silver over 9.5 m). Two additional holes, stepping out 325.0 ft (100.0 meters) further to the northeast, are in progress and are targeting the possible feeder system. The zone remains open and shows good potential for expansion.
"The higher-grades at Palmarito are great to see! Although additional drilling is required, we believe the potential to discover more high-grade is excellent. Overall, our exploration in Mexico is starting to hit its stride and I look forward to watching it unfold," stated Rob McEwen, Chairman and CEO of US Gold.
ABOUT US GOLD
US Gold Corporation is a United States based gold exploration company exploring throughout northeastern Nevada and Mexico. The Company has large land holdings and a strong treasury. US Gold's shares trade on the American and Toronto Stock Exchanges under the symbol UXG.
QUALIFIED PERSON
This news release has been viewed and approved by Steve Brown, Senior Geologist and Project Manager, who is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Mexican exploration properties. All samples were analyzed by ALS Chemex utilizing a 4 acid digestion with ICP finish.
Holes were drilled with HQ and NQ core. Samples were taken every 6.6 ft (2 meters) for areas that were believed to be non-mineralized and selectively chosen for mineralized areas based on geological characteristics.
Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "intends," "anticipates," "believes," "expects" and "hopes" and include, without limitation, statements regarding the Company's results of exploration, plan of business operations, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors". Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.
To view the associated figures with this press release, please visit the following links:
http://media3.marketwire.com/docs/UXG925fig1.pdf
http://media3.marketwire.com/docs/UXG925fig2.pdf
Contacts:
US Gold Corporation
Ana Aguirre
Manager, Investor Relations
(647) 258-0395 or Toll Free: 1-866-441-0690
(647) 258-0408 (FAX)
Email: info@usgold.com
SOURCE: US Gold Corporation
mailto:info@usgold.com
Copyright 2008 Market Wire, All rights reserved.
Oil Prices Fluctuate on Demand and Economic Concerns
Uncertainty is the word floating around concerning oil prices, as investors await the decision concerning the government bailout plan, the decreasing demand for oil, and the time it will take to bring platforms and rigs back to production from recent storms.
Other factors in the mix are the cut in production announced by OPEC earlier in September, as well as the continued threat to Nigerian oil procution by regional terrorists.
The potentially serious consequences on the value of the dollar from the ill-advised financial bailout is also on the minds of oil investors going forward.
Fear and uncertainty keep oil and other commodities in an unpredictable mode. We'll see continued fluctuation in prices going forward until things settle down. Early morning trading on the NYMEX had November deliver for sweet crude dropping to $105.57, although they continue to move up and down from positive to negative territory.
Other factors in the mix are the cut in production announced by OPEC earlier in September, as well as the continued threat to Nigerian oil procution by regional terrorists.
The potentially serious consequences on the value of the dollar from the ill-advised financial bailout is also on the minds of oil investors going forward.
Fear and uncertainty keep oil and other commodities in an unpredictable mode. We'll see continued fluctuation in prices going forward until things settle down. Early morning trading on the NYMEX had November deliver for sweet crude dropping to $105.57, although they continue to move up and down from positive to negative territory.
Gold Bullion Dealers Say There's Shortage in Many Popular Bullion Products
Demand for gold bullion has resulted in a shortage in a number of popular products for bullion dealers. The shortage, which has been rumored for about a month, has now become a reality, although it's hopeful that it's temporary.
The shortage has had a significant impact on dealers, as some now have a lengthening waiting list. Some dealers who have policies of not taking orders for a product unless they have physical possession or guaranteed delivery from reliable sources of the metal have been hit especially hard.
To get an idea of the demand, most dealers have had about five times the usual orders in the last two weeks because of concerns over the faltering U.S. economy.
Some of the gold products not available at this time are the Pamp 1-ounce and 10-ounce gold bars; 5-9s special edition Maple Leaf; 1-ounce gold Eagles; and gold Buffalo coins. The U.S. mint is no longer taking orders for the Buffalo coin at this time. Gold Eagles are still being produced, but at such a slow rate that most retailers can't get hold of them.
Wednesday, September 17, 2008
Wheat Joins Commodity Rally as Investors Flee Equities
With the U.S. dollar falling and investors fleeing equities, the commodity market surged today as many of the dollar-denominated commodities enjoyed a significant uptick. Wheat was part of the swing.
Wheat futures in the U.S. increased by 5 percent Wednesday, moving up from its lowest level in over a year.
December wheat futures on the CBOT ended at $7.25-3/4 a bushel, up 35-3/4 cents, a 5.18 percent move upwards.
Even the news that Egypt decided to buy 205,000 tons of wheat from Ukraine and Russia wasn't enough to pressure the grain, as numerous economic factors lined up to give it a solid push forward.
High global wheat inventories have been putting downward pressure on wheat prices recently.
Wheat futures in the U.S. increased by 5 percent Wednesday, moving up from its lowest level in over a year.
December wheat futures on the CBOT ended at $7.25-3/4 a bushel, up 35-3/4 cents, a 5.18 percent move upwards.
Even the news that Egypt decided to buy 205,000 tons of wheat from Ukraine and Russia wasn't enough to pressure the grain, as numerous economic factors lined up to give it a solid push forward.
High global wheat inventories have been putting downward pressure on wheat prices recently.
Corn Rides Returning Favor of Commodities as Investors run for Cover
December delivery for corn increased by 22 cents a bushel, riding the migration of investors to commodities as they seek shelter from the financial markets. Corn closed at $5.54 a bushel on the Chicago Board of Trade.
Most dollar-denominated commodities were benefactors of the exodus from equities.
Soybeans were also up on the day, increasing by 26 cents to $11.39 a bushel, a 1.3 percent jump.
The U.S. dollar index was down as the greenback fell against most major currencies.
Most dollar-denominated commodities were benefactors of the exodus from equities.
Soybeans were also up on the day, increasing by 26 cents to $11.39 a bushel, a 1.3 percent jump.
The U.S. dollar index was down as the greenback fell against most major currencies.
Silver in Largest One-day Increase Since 1979
With equities taking a beating, and investors concerned about the safety of banks and financial institutions, they are abandoning stocks, and in some cases even money-market funds, for commodities.
Silver rose by $1.158 for December delivery today, the largest one-day increase since December 31, 1979. It reached $11.675 an ounce. Spot silver grew by 15 percent to end at $12.
To add to the jitters of the equity market, the oldest money-market fund in the U.S. - Reserve Primary Fund - has exposed investors to potential losses for the first time in 14 years. Much of that was the result of having to write off losses of $785 million in debt they had issued to Lehman.
The three-month rate for U.S. Treasury bills also dropped to the lowest level in 54 years, plunging as low as 0.0304 percent. That's the worst since 1954.
Silver rose by $1.158 for December delivery today, the largest one-day increase since December 31, 1979. It reached $11.675 an ounce. Spot silver grew by 15 percent to end at $12.
To add to the jitters of the equity market, the oldest money-market fund in the U.S. - Reserve Primary Fund - has exposed investors to potential losses for the first time in 14 years. Much of that was the result of having to write off losses of $785 million in debt they had issued to Lehman.
The three-month rate for U.S. Treasury bills also dropped to the lowest level in 54 years, plunging as low as 0.0304 percent. That's the worst since 1954.
Light Sweet Crude Oil in big $6.01 Increase
Investors continued to move their money out of equities and put it in commodities, as oil was a beneficiary of the recent economic bad news which has hammered the financial companies. AIG was the main culprit today in moving commodities up.
October delivery for light sweet crude in New York surged by $6.01 dollars to finish the session at $97.16.
Across the pond Brent North Sea crude also moved upward by $5.62 to end at $94.84.
The U.S Department of Energy says that over the last month oil-based product use has fallen by 4.4 percent over the same time last year.
Recent bad weather has also caused a drop of 6.3 million barrels in the U.S reserves.
Even with the gain today, prices have dropped by $55 a barrel since the July 11 high of $147 a barrel.
October delivery for light sweet crude in New York surged by $6.01 dollars to finish the session at $97.16.
Across the pond Brent North Sea crude also moved upward by $5.62 to end at $94.84.
The U.S Department of Energy says that over the last month oil-based product use has fallen by 4.4 percent over the same time last year.
Recent bad weather has also caused a drop of 6.3 million barrels in the U.S reserves.
Even with the gain today, prices have dropped by $55 a barrel since the July 11 high of $147 a barrel.
Gold Prices Explode by over $60 an Ounce
Jittery investors pulled their money out of equities and again poured into gold and other commodities as the U.S. dollar fell in price and financial companies continue to flirt with bankruptcy and failure.
December delivery for goal surged by 8.25 percent, rising to $64.50, reaching $845 an ounce on the NYMEX.
Silver prices also increased significantly for the day. The December contract moved up by 88.8 cents to $11.405 an ounce.
December delivery for goal surged by 8.25 percent, rising to $64.50, reaching $845 an ounce on the NYMEX.
Silver prices also increased significantly for the day. The December contract moved up by 88.8 cents to $11.405 an ounce.
Friday, September 5, 2008
Oil Drops to 5-month Low on Weak Demand, other Factors
Oil continues to plunge from its record high which reached $147 a barrel in July, as it dropped by over $2 a barrel, after settling the lowest on Thursday since April 4. Brent crude followed suit in London as it declined by over $2 a barrel as well, finishing at $103.95.
With China decreasing imports after the Olympics and consumers driving less, oil prices will probably continue to fall. Other factors include the ongoing storm season and the unknown decision by OPEC on what it will do going ahead. The weak U.S and world economy will continue to affect the price also.
The rise in value of the U.S. dollar will also continue to drive down oil prices.
With the Louisiana Offshore Oil Port, (largest oil-import terminal in the U.S.) saying they started offloading oil tankers early Thursday morning, it's also thought it could help keep oil prices down because of the quick resumption of delivery.
Thursday, September 4, 2008
Gold Settles at $803.20 for December Delivery - Drops 4th Straight Day
The U.S. dollar finished the day the strongest it has this year against the euro, as investors continue to abandon precious metals and other commodities. It was the fourth straight session drop for the metal, which plunged by $5 to finish at $803.20 for December delivery on the NYMEX. Earlier in the day it fell as low as $798.10.
With the U.S. dollar strengthening lately, traders have been abandoning commodities as an inflation hedge and moving their funds elsewhere.
"The short-term direction in gold remains pointed to lower levels, and selling could intensify if $790 is breached this week," Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said in a note.
Silver also dropped today, as well as copper, although silver only fell by less than a penny to $12.94 an ounce. Copper ended the session at $3.266 a pound, shedding 4.6 cents.
Australia Should Still have Bumper Wheat Crop in Spite of Drought
Even though some areas in Australia may experience a drop in wheat production because of an ongoing drought, overall the country is expected to enjoy a huge increase in exports in contrast to previous years.
The USDA projects about a 25 million ton harvest in 2008-09, in comparison to 13 million tons in 2007. That amount (25 million tons) is expected to be revised down in the next USDA report. Even so, Russell Phillips, general manager, Australian department of agriculture, fisheries and forestry, said he thinks the country could end up exporting about 16 million tons this year.
The new Australian export regulator, Wheat Exports Australia (WEA), has accredited five companies for exports so far, as Cargill Australia Ltd, Elders Toepfer Grain Pty Ltd, Goodman Fielder Consumer Foods Pty Ltd, Grain Pool Pty Ltd and OzEpulse Pty Ltd made the first cut.
Former export regulator Australian Wheat Board (AWB) was replaced after a scandal caused them to be replaced. Still, they have applied to the WEA for accreditation this week and are waiting for a reply. The AWB was cited for taking illicit payments from the former Iraqi government of Saddam Hussein.
Globally, wheat is expected to reach record levels of 670.8 million tons by May 31, 2009, up by 9.9 percent over last year. Stockpiles could surge by 18 percent to 136.2 million tons, according to the USDA.
Wednesday, September 3, 2008
Bunge Ltd. Clears Regulatory Hurdle for Corn Products Deal
The Hart-Scott-Rodino Antitrust Improvements Act has been successfully fulfilled by Bunge Ltd. in its quest to acquire Corn Products International. It involved satisfying a required regulatory waiting period.
While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.
Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.
Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.
Corn Products will continue operating under its existing brand name.
While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.
Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.
Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.
Corn Products will continue operating under its existing brand name.
2Q Results for Sabina Silver
VANCOUVER, BRITISH COLUMBIA, Sep 03, 2008 (MARKET WIRE via COMTEX) -- Sabina Silver Corporation (the "Company") announced today the financial results for the period ended June 30, 2008. The Company ended the first half of 2008 with cash and security investment resources of $44,598,201.
"Although the first half of 2008 was a challenging one for Sabina," said Tony Walsh, President and CEO, "the Company is now poised to deliver on its commitments to create further shareholder wealth. A strategic plan has been created that both pushes the large Hackett River Project forward, while at the same time looking for opportunities to provide solid share performance and create further value during the interim."
Hackett River is the Company's flag ship project in Nunavut Canada. Not only is it one of the largest undeveloped silver projects around, but it is in one of the world's most appealing mining jurisdictions. As announced earlier this month, the Company has added some key team members; is focusing on preserving cash; has completed this year's required work to push Hackett River forward; and is evaluating other projects and companies for merger and acquisition opportunities.
"We believe all these things are adding value to the Company, and put us in a great position with a great message when we start our major marketing campaign this month," said Mr. Walsh, "I have no doubt that Sabina has the elements of an attractive investment and that we will be able to communicate that to the investment community."
Financial Results
For the three months ended June 30, 2008, the Company reported a net loss of $6,778 as compared to net earnings of $4,543,187 for the same period in 2007. The earnings in fiscal 2007 were a result of sales of securities during that period. The Company's earnings are primarily derived from the interest, sales and changes in fair value on investments held for trading and sale. Expenses in the period were nearly offset by earnings in the same period.
The Company had cash and security investment resources of $44,598,201 at June 30, 2008 as compared with $50,632,747 at December 31, 2007. All security investment resources are held in guaranteed investment certificates at Canadian banks and in marketable Canadian securities. The decrease in cash and investment resources is primarily due to exploration expenditures of $8,936,422 in the six month period which was partially offset by an increase in fair market value of marketable Canadian securities held for resale. The Company is fully financed to reach its feasibility and permitting objectives on the Hackett River Project.
Subsequent to the end of the quarter, Mr. John Wakeford and Ms. Elaine Bennett were appointed Senior Vice-President, Corporate Development and Vice-President, Finance & Chief Financial Officer respectively (see News release dated August 20, 2008 on the Company's website).
Mr. Wakeford has been granted 700,000 stock options exercisable at a price of $0.99 per share for a period of five years; Ms. Bennett has been granted 500,000 stock options exercisable at a price of $0.90 per share for a period of five years.
For the full June 30, 2008 financial statements and Management's Discussion and Analysis, please see the Company website at www.sabinasilver.com.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District and several projects in the Red Lake gold camp.
Forward Looking Statements
Statements relating to permitting, feasibility and exploration work at the Hackett River project and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2007.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Tony Walsh, President and CEO
Contacts:
Sabina Silver Corporation
Nicole Hoeller
Director, IR
1-888-648-4218
Email: nhoeller@sabinasilver.com
Website: www.sabinasilver.com
SOURCE: Sabina Silver Corporation
mailto:nhoeller@sabinasilver.com
http://www.sabinasilver.com
"Although the first half of 2008 was a challenging one for Sabina," said Tony Walsh, President and CEO, "the Company is now poised to deliver on its commitments to create further shareholder wealth. A strategic plan has been created that both pushes the large Hackett River Project forward, while at the same time looking for opportunities to provide solid share performance and create further value during the interim."
Hackett River is the Company's flag ship project in Nunavut Canada. Not only is it one of the largest undeveloped silver projects around, but it is in one of the world's most appealing mining jurisdictions. As announced earlier this month, the Company has added some key team members; is focusing on preserving cash; has completed this year's required work to push Hackett River forward; and is evaluating other projects and companies for merger and acquisition opportunities.
"We believe all these things are adding value to the Company, and put us in a great position with a great message when we start our major marketing campaign this month," said Mr. Walsh, "I have no doubt that Sabina has the elements of an attractive investment and that we will be able to communicate that to the investment community."
Financial Results
For the three months ended June 30, 2008, the Company reported a net loss of $6,778 as compared to net earnings of $4,543,187 for the same period in 2007. The earnings in fiscal 2007 were a result of sales of securities during that period. The Company's earnings are primarily derived from the interest, sales and changes in fair value on investments held for trading and sale. Expenses in the period were nearly offset by earnings in the same period.
The Company had cash and security investment resources of $44,598,201 at June 30, 2008 as compared with $50,632,747 at December 31, 2007. All security investment resources are held in guaranteed investment certificates at Canadian banks and in marketable Canadian securities. The decrease in cash and investment resources is primarily due to exploration expenditures of $8,936,422 in the six month period which was partially offset by an increase in fair market value of marketable Canadian securities held for resale. The Company is fully financed to reach its feasibility and permitting objectives on the Hackett River Project.
Subsequent to the end of the quarter, Mr. John Wakeford and Ms. Elaine Bennett were appointed Senior Vice-President, Corporate Development and Vice-President, Finance & Chief Financial Officer respectively (see News release dated August 20, 2008 on the Company's website).
Mr. Wakeford has been granted 700,000 stock options exercisable at a price of $0.99 per share for a period of five years; Ms. Bennett has been granted 500,000 stock options exercisable at a price of $0.90 per share for a period of five years.
For the full June 30, 2008 financial statements and Management's Discussion and Analysis, please see the Company website at www.sabinasilver.com.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District and several projects in the Red Lake gold camp.
Forward Looking Statements
Statements relating to permitting, feasibility and exploration work at the Hackett River project and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2007.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Tony Walsh, President and CEO
Contacts:
Sabina Silver Corporation
Nicole Hoeller
Director, IR
1-888-648-4218
Email: nhoeller@sabinasilver.com
Website: www.sabinasilver.com
SOURCE: Sabina Silver Corporation
mailto:nhoeller@sabinasilver.com
http://www.sabinasilver.com
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