Sunday, January 25, 2009

Gold and Gold Mining Companies: Prices to Soar?

The term rally and bullish should continue for gold and gold futures over the next year or so, as it shouldn't have any problem breaking above the $900 an ounce barrier and soaring from there. Gold and silver mining producers or companies will also do great this year, not only from demand, but operations will cost much less as energy costs, which are a key cost for gold mining companies, will remain down this year, while gold prices continue to rise. That should produce a banner year for gold mining companies.

Much of what has held gold prices down during these tough economic times has been the forced liquidation and deleveraging major funds had to do in order to raise cash to cover their debt and expenses. That forced them to sell their positions in gold and other commodities in order to do that. That's the reason commodities struggled for some time, especially some of the precious metals. It's also the reason the US dollar was inflated far beyond its underlying fundamentals.

Now that it looks like gold is back as the haven of safety it always has been, we'll start to see it grow in a much larger way and respond as it should have been all along. The bulls are out of the pen and we'll see the yellow metal soar in 2009.

Many financial experts are turning into bulls now, as the reason they were so unsure is no one know how long big funds and investment firms would take to unwind their positions and be ready to go back to the commodity markets. It seems we have the answer now, and that answer is a bull market.

This of course means that quality gold companies will enjoy good times going forward, as they lead commodities and other precious metals forward. I don't think the grain markets will participate in the bull market, but most many metals will, including silver, which according to percentages could even outperform gold.

Another reason gold will do well for some time is the terrible ideas of the government to bailout every industry that runs their companies poorly. That will force them to keep printing money into oblivion, and that fiat money has a bad ring to it, as it'll definitely push inflation much higher because there's no one to buy U.S. debt to pay for these extraordinarly expensive initiatives.

That's good news for gold investors, as inflation will be another arrow in the quiver that will keep gold prices rising, and the gold rally extending.

Foreign governments will ease out of the untrustworthy U.S Treasury bonds, and so that will leave the U.S. and Federal Reserve with no option to keep the money printing presses humming, and they will.

That will also bring the value of the U.S. dollar down, and will make gold even more attractive.

Similar to the forced liquidation period of funds and investment firms, it'll be impossible to know how long the bull gold rally will last, but I think it'll be much longer than the forced liquidation period that helped the dollar remain strong, although the fundamentals were so off.

In this case, the trillions being promised and spent by the US government could keep gold as a solid investment for quite some time, as the U.S. dollar continues on its road to collapse.

As far as gold and silver mining companies, we'll see quite a number of them enjoy some of the best years they ever have, assuming they're already well run companies and positioned to take advantage of the haven of safety investors will be looking for in 2009.

Tuesday, January 20, 2009

DRDGOLD: South African Gold Miner Cutting 1,335 Jobs

DRDGOLD, the fourth largest gold producer in South Africa announced it is cutting 1,335 jobs at it shut down a mine east of Johannesburg.

The workers losing their jobs are part of a contingent that labored at the ERPM mine that closed in October for maintanence related to underground water problems. The ERPM mine had to be shut down underground as the pumps used to handle the underwater situation could get rid of the rising water levels fast enough, making it impossible for mine workers to continue.

According to DRDGOLD, they've transferred some remaing workers to other operations, while other accepted volunatary retrenchment.

The gold company added there was no way they could continue gold mining operations, as it is beyond the financial means of the company to retain full time workers at an operational level.

Gold mining in South Africa is the major export for the country, being 9 percent of overall export earnings for the South African economy.

DRDGOLD and the overall South African gold mining industry continues to be under pressure, as more job cuts will come until operations are improved.

World Gold Council: Gold Investment Digest Report - 2008

World Gold Council report of gold performance for 2008

NEW YORK & LONDON - (Business Wire) Gold proved its metal in 2008, according to World Gold Council’s latest Gold Investment Digest, providing a safe haven and long term store of value for investors in record volume and outperforming many other assets in relative price and volatility terms.

Despite one of the most tumultuous years in financial markets since the Great Depression, gold ended the year on a firm footing recording its eighth consecutive annual price increase. The last three months of 2008 was a quarter of two halves. While distressed gold sales by some institutional investors meeting margin calls on other assets had a dampening effect on price in the first few weeks of the final quarter, by mid November broader recognition that the dire financial situation was likely to endure for some time, fears about the credit system and future inflationary impact of shifts in monetary policy and the dollar resuming its secular decline led gold to rally by around $150/oz. Gold, therefore, closed the year at US$869.75.oz, up 4% from the same period in 20071.

Gold price volatility remained high by historical standards at the end of the year, at 37% (gold’s long-run price volatility is around 12.5%), although still below most other asset classes. However, underpinned by robust and diverse market fundamentals, gold traded in a tighter range than other financial assets, major world indices and most other commodities.

“Gold’s performance over the year is impressive considering the massive wealth destruction that took place elsewhere in financial and commodities markets,” said Natalie Dempster, Head of Investment, North America for World Gold Council. “Impacted to a lesser extent by the financial crisis, which affected equities, and declining industrial demand, which affected physical assets, gold outperformed global equities and all major commodities during 2008.”

During the final quarter, investors turned to physical-backed gold ETFs in large numbers, buying 96 tonnes of incremental gold via exchange trade funds. December recorded the strongest monthly inflow into gold ETFs, with investors buying 44 tonnes of gold. Investment in gold ETFs, monitored by the World Gold Council, now stands at around US$33 billion2.

“As investors became increasingly concerned by the state of the economy during the course of the year, they turned to gold as a store of value. Within the third and fourth quarters of 2008, inflows into gold ETFs reached record levels as investors were motivated by gold’s lack of counterparty risk and the opportunity to hold a real, physical asset,” Dempster said. “As we move into 2009, continued uncertainty over the financial landscape, combined with future inflationary fears resulting from interest rates cuts and quantitative easing by central banks, are likely to pique investor interest in gold further.”

Gold Investment Digest, a concise and comprehensive analysis of investment trends and economic indicators that influence investment interest in and the demand for gold, can be downloaded at Users will need to register, which is free of charge. At the same address, users can access a range of investment statistics, which we have completely overhauled to extend the country coverage and make the materials easier to download. For further information, or should you like to learn more about investment in gold, please contact:

Notes to Editors:

World Gold Council

World Gold Council (WGC), a commercially-driven marketing organization, is funded by the world’s leading gold mining companies. A global advocate for gold, WGC aims to promote the demand for gold in all its forms through marketing activities in major international markets. For further information visit

World Gold Council’s latest Gold Investment Digest concludes 2009 should result in increased gold demand.

Friday, January 16, 2009

Aaron Regent Takes Over CEO Reigns of Barrick Gold

Aaron Regent became the head of Barrick Gold Corp. (ABX) today, succeeding company founder and chairman Peter Munk, 81. Munk had stepped into the role when former CEO Greg Wilkins had to go on leave for medical reasons. Wilkins stepped down in July.

While Regent is one of the younger CEOs in the industry, he comes with a lot of experience in mining, as a co-CEO and senior managing partner of Brookfield Asset Management, and also as president of Falconbridge Ltd., a global mining company.

Munk said concerning hiring Regent to head the company he launched:

"I watched that (sale) from the sidelines and I think there was nobody in the mining industry who would not have had the greatest admiration for Aaron's sense of strategic evaluation. I think truly for a man who is 40-odd-years-old and has Aaron's kind of experience, the future is unlimited."

Laying out his priorities for the company, Regent said he's going to focus on exploration, project development and acquisitions, but quickly added that things aren't going to be changing much going ahead, as things are operationally solid.

His first steps will be to travel to visit the assets of the company to build up and understanding of the entire company, along with spending some time getting to know his management team and receiving their input.

Last quarter the company reported net profits of $254 million, down from the $345 million last year.

Barrick Gold is the largest gold mining company in the world.

Thursday, January 15, 2009

GFMS Looks for Gold to Surge in Second Half of 2009

While gold could average around $915 an ounce in the first part of 2009, it's in the second half that it could really soar, according to consultancy GFMS in its Gold Survey 2008 report. They project gold could reach as high as $1,080 an ounce as the U.S. dollar inevitably weakens. (Why the U.S. dollar will plunge in 2009.)

The average price of gold in 2008 was just under $872. Today gold was trading over $816 at 4:30 EST.

For the year, GFMS is looking for a trading range for gold of $750 an ounce to $1,080an ounce.

There's no doubt gold will rebound, as the bubble will burst sometime in the year for U.S Treasury bonds, which are wrongly being touted as havens of safety. Click on the link above to find out why that's so.

Because we don't have any idea how much more forced liquidation is out in the market, it's the one variable that could allow the U.S. dollar to remain temporarily strong, as companies continue to sell assets to cover their losses and raise cash.

Even though demand for gold in jewelry fell by almost 11 percent last year, that shouldn't have any impact on the price of gold, as safety and inflation protection will be the driving forces pushing the yellow metal up.

With the Federal Reserve going to be forced to print more money to cover the misguided bailout-mania and acquisition of Treasury bonds, that will also eventually push the strength of the U.S. dollar down and drive people toward gold. It's only a matter of when, not if.

Wednesday, January 14, 2009

Gold Falls for Third Session in a Row on Poor Retail Sales, Dollar Strength

For the third session in a row gold prices plummeted, as poor retail sales and the continued strength of the U.S. dollar put downward pressure on the metal.

It was no surprise to investors that retail sales were weak, but the numbers were down over twice the expected decline, falling by 2.7 percent last month. Declines have happened in the retail sector now for six straight months.

This will continue to hamper commodities as consumers continue to save rather than spend, and demand for goods plummet.

Another factor is the cutting of interest rates by other countries to attempt to jumpstart there economies, which keeps the dollar stronger than it normally would be in these types of conditions.

February delivery for gold dropped by $11.90 to finish the session at $808.80 an ounce on the New York Mercantile Exchange. Over the last three days gold has plunged by 5.4 percent.

Monday, January 12, 2009

Gammon Gold Raises 2009 Guidance as Gold Production Up 27 Percent

Annual gold production at Gammon Gold (GRS) increased by 27 percent, spurring the company to say things are now turned around.

For 2008, the company mined 154,428 ounces of gold, while also bringing out another 5,778,428 ounces of silver.

The gold-to-silver ratio of 59:1 helped the company improve its cash costs, as the $539 gold equivalent ounce was 20 percent better than 2007.

According to the company, improved productivity throughout the company, as well as an increase in processing capacity at the Ocampo mine were the keys to their performance.

Giving their guidance, Gammon Gold said they are looking to produce between 185,000 to 205,000 ounces of gold, while silver should come in between 8,170,000 to 8,945,000ounces,

Assuming a 78:1 gold-to-silver ratio, costs should be between $410 to $445.

Sunday, January 11, 2009

UC HUB Performs Gold Mining Due Diligence

UC HUB has done a thorough check on title and lien checks for gold mining properties.

Los Angeles, CA, January 11, 2009 --( UC Hub Group Completes First Phase of Mining Title Due Diligence.

UC Hub Group Inc (OTC BB UCHB.OB-NEWS) per its recently announced formal asset acquisition of gold mining contracts continues to aggressively vet the said assets.

In their efforts for compliance with respect to due diligence in moving forward with the Wickenburg Arizona mining operations the company has done updates and submitted further due diligence procedures to perfect ownership of the gold mining claims.

UC HUB has conducted a thorough document check of public records to confirm the validity of the Vested Deed and Mining claim for the Wickenburg Arizona mining property. As a result of these efforts, UC Hub has received the recorded documents from their respected sources and has determined that both are without judgments or lien as of this date. UC Hub does not want to solicit any interest until the minimum due diligence is provided through proof of ownership, lien analysis, government land status and bona fide technical evidence of values. There are many parameters and risk factors with gold mines and each may potentially be a positive or a negative catalyst. The Company remains cautious.

Also, as of the week of January 12, 2008, UC Hub will have a TEAM onsite at the Wickenburg mine to survey, plot, sample, and prospect and document the mining claim in an effort to expedite the beginning of the expected mining/sampling process and validate representations on this property using longitude and latitude data bases along with various technical processes. Once this mining/sampling is reviewed and analyzed by various professionals, then the Company will determine the potential of submitting a larger scale Mining Operations Plan to the necessary regulatory groups. For sake of clarity, “Mining” is defined as extracting any ore from any area for review.

The above cautious actions are being completed to ensure that the shareholders might receive what was represented and this deal does not become a mine that is built on promotion and rhetoric, but in fact, is a performance mine. This is not to say or infer there will be any such success in any form.

Safe Harbor Provision

This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of UC Hub Group Inc, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, the availability of technical personnel, changes in technology and competition.

Larry Wilcox
1 800 278 8870

Alamos Gold Inc. Reports Strong Fourth Quarter and Full Year 2008 Production and Provides 2009 Operating Forecast

TORONTO, ONTARIO - Alamos Gold Inc. (TSX: AGI) ("Alamos" or the "Company") announces fourth quarter gold production of 39,347 ounces, achieving the top end of the Company's quarterly production guidance of 35,000 to 40,000 ounces. Full year 2008 gold production of 151,000 was 42% higher than gold production of 106,200 ounces in 2007. The calculation of total cash costs for the fourth quarter and full year 2008 have yet to be finalized. However, the Company expects that total cash costs for the fourth quarter will be significantly below previous guidance of $395 per ounce, and that total cash costs for 2008 will be approximately $400 per ounce.

The Company is also pleased to report that it began drum agglomeration ahead of schedule in late December. The drum agglomeration process is expected to improve leach pad percolation and increase gold recoveries.

John A. McCluskey, President and Chief Executive Officer stated, "In 2008, Alamos has been successful at delivering on what we promised. We've now had six consecutive quarters of meeting or exceeding our production and cost guidance. We are exiting 2008 at a quarterly production rate of almost 40,000 ounces and our total cash costs are decreasing as a result of higher recoveries and a weaker Mexican peso. These factors, combined with our strong balance sheet, with no debt and over $40 million in cash, provide us with significant resources to grow the Company through internal expansion at Mulatos and strategic acquisitions".

In 2009, the Company is forecasting gold production of 145,000 to 160,000 ounces from the Mulatos mine at a total cash cost (including the 5% royalty) of $350 per ounce.

The following key assumptions form the basis for the 2009 production budget:

- Recoveries of 60%

- Crusher throughput average 13,400 tonnes of crushed ore per day

- Grade of 1.60 grams per tonne of gold ("g/t Au")

- Waste-to-ore ratio of 1.3:1

- Mexican Peso:USD foreign exchange rate of 12.6:1

Significant capital expenditures for 2009 include approximately $9 million to close the existing crushing circuit. This project is expected to further improve gold recoveries to the 65%-plus level. Other sustaining capital is expected to total approximately $10 million. The 2009 exploration budget is $7 million and will focus on definition drilling at Cerro Pelon, Puerto del Aire and Gap, step-out drilling at San Carlos and Phase I drilling at El Carricito.

The Company expects to announce a decision with respect to construction of a mill to process high-grade ore in the first quarter of 2009. As a result of the decision to close the crushing circuit to increase recoveries from the heap leach operation to the 65%-plus range, the incremental benefit of constructing a mill capable of processing various ore types has been substantially reduced. Accordingly, the Company expects that it will select a lower cost milling option to focus primarily on processing high-grade ore at Escondida, at a total capital cost of approximately $45 million (including $25 million in waste removal costs). The Company expects that it will be able to finance construction of the mill out of operating cash flows.

A revised global mine development plan and reserve and resource update will be announced in the first quarter of 2009. The Company expects these to result in significantly extending the life of the Mulatos mine.

About Alamos

Alamos is a Canadian-based gold producer with operations, exploration and development activities in Mexico. The Company employs approximately 400 people in Mexico and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities. Alamos is fully leveraged to increases in gold prices. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI".

Cautionary Non-GAAP Statements

The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. "Total cash costs" as used in this analysis is a non-GAAP term typically used by gold mining companies to assess the level of gross margin available to the Company per ounce of gold by subtracting these costs from the unit price realized during the period. This non-GAAP term is also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "total cash costs" as determined by the Company compared with other mining companies. In this context, "total cash costs" reflects the per ounce cash operating costs allocated from in-process and dore inventory associated with ounces of gold sold in the period, plus applicable royalties. "Total cash costs" may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed, gold recovery rates and gold prices during the period.

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Alamos Gold Inc.
John A. McCluskey
President and Chief Executive Officer
(416) 368-9932 or 1-866-788-8801
Website:© MarketWire 2009

Saturday, January 10, 2009

Gold Rock Holdings, INC. (GRHI) Appoints President

ENCINITAS, CA - GOLD ROCK HOLDINGS, INC.'s (GOLD ROCK) (PINKSHEETS: GRHI) Board of Directors today announced its decision to select Larry Bailey, former White House official and noted Urban Specialist and Businessman, as its President. Gold Rock Holdings and its wholly owned subsidiaries represent over 60 years of domestic and international construction and building projects.

Mr. Bailey brings an extensive background in development, financing, and government entitlement programs, to support the company's proposed strategy of assisting local governments in the Gulf Region states with construction of 25,000 new dwelling units over the next 10 years.

Gold Rock Holdings Inc. is poised to act as a catalyst in jumpstarting the nation's lagging construction industry targeting fixed income seniors, low to moderate income residents, and returning 'baby boomers' seeking new inexpensive 'retirement' housing.

A proposed ten (10) year program will showcase "green construction" technologies, training and job creation as center pieces in a public/private strategy for utilizing local manpower to build permanent housing for residents of the region. Beginning first in Mississippi, Mr. Bailey will spearhead a lower Mississippi Delta region initiative involving builders and contractors working in concert with local governments. The program is expected to create 90,000 jobs in a 10 state region over the next several years.

Mr. Bailey states, "Analysts cite market demands for over a hundred thousand dwelling units in Mississippi, alone. Most are needed by fixed and lower income residents in some 40 counties where evidence of hurricane damage is a constant reminder that replacement housing is high on the agenda of many Mississippi residents."

The integration of public and private resources in housing construction as outlined by Gold Rock Holdings offers the nation a prototype with immediate impact and a solution to surging unemployment in an industry and region where the housing demands are staggering from the devastation of the hurricane seasons of 2006-2008.

For further information about this release, contact Rich Kaiser, Investor Relations, YES INTERNATIONAL, 1-800-631-8127.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward-looking information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.

Rich Kaiser
Yes International

© MarketWire 2009

Friday, January 9, 2009

"New Gold Inc." Lowers Debt by Buying Back Senior Secured Notes

In a move to lower its debt load, New Gold Inc (NGD.TO) bought back C$50 million of its senior secured notes at 40 percent off their face value.

As a result, the senior secured debt load of the company will fall from C$237 million to C$187 million. That will also help the company cut an annual C$5 million in costs related to interest from the lowered debt.

Overall debt for the company will be down to C$242 million at the close of the deal.

New Gold estimates there will be a pre-tax increase of $14 million in the first quarter in response to their actions.

Monday, January 5, 2009

Silverado Announces Results of Preliminary Feasibility Study on Workman's Bench Gold

Silverado Announces Results of Preliminary Feasibility Study on Workman's
Bench Gold and Antimony Deposit at Nolan Creek

VANCOUVER, Jan. 5 /PRNewswire-FirstCall/ - Silverado Gold Mines Ltd. (the "Company" or "Silverado") SLGLF OTCBB, SLGL Frankfurt,, is pleased to announce that the preliminary feasibility study on its Workman's Bench gold and antimony lode gold deposit at its Nolan Creek property in Alaska has been completed. The study was commissioned by the Company in September 2008, and was performed by Thomas K. Bundtzen ("Bundtzen") of Pacific Rim Geological Consulting Inc., an independent mining consultant. The study concluded that the Workman's Bench project is economically viable and also supports a mineral reserve calculation and updated mineral resource estimate on the property.

Workman's Bench is the Company's prime exploration target for a lode gold and antimony deposit in the southwestern part of the Solomon Shear Zone, which is located on the Company's Nolan Creek Property in Alaska.

The results of the study are reported in a NI 43-101 Technical Report entitled "Update of Mineral Resource and Reserve Estimates and Preliminary Feasibility Study, Workman's Bench Antimony-Gold Lode Deposit, Nolan Creek, Wiseman B-1 Quadrangle, Koyukuk Mining District, Northern Alaska", dated January 1, 2009 and prepared by Bundtzen. The Technical Report was filed today on SEDAR and will be available at, on EDGAR at and on the Company's website at

Highlights of the Technical Report are as follows:


An initial updated gold and antimony indicated mineral resource estimate for the Workman's Bench deposit was reported in a news release dated November 17, 2008, as corrected. As a result of further analysis, Bundtzen has concluded that the indicated mineral resource estimate in the Workman's Bench lode deposit as disclosed in the news release dated November 17, 2008 can be classified as probable mineral reserves in accordance with the CIM Definition Standards. There have otherwise been no material changes to the grades and quantities previously reported. The following table summarizes the mineral reserves for the Workman's Bench gold-antimony deposit, effective January 1, 2009.

Reserve Cut-off Quantity Grade Metal Grade Metal
Category grade (ton) (% Sb) (ton Sb) (oz/ton Au) (oz Au)
(% Sb)
Probable 4.0 42,412 28.00 11,880 0.408 17,300

- Rounding may result in some discrepancies.
- No processing recovery factors have been applied to these reserve figures.
- The unit ton refers to short tons.
- Cut-off grade is 4.0% Sb 'equivalent', which refers to the combined values of gold plus antimony expressed in terms of antimony alone

The following table summarizes the mineral resources for the Workman's Bench and Pringle Bench gold-antimony deposit, effective January 1, 2009.

Reserve Cut-off Quantity Grade Metal Grade Metal Category grade (ton) (% Sb) (ton Sb) (oz/ton Au) (oz Au) (% Sb)
Inferred 4.0 27,697 12.26 3,397 0.230 6,372


- Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- Rounding may result in some discrepancies.
- No processing recovery factors have been applied to these resource figures.
- The unit ton refers to short tons.
- Cut-off grade is 4.0% Sb 'equivalent', which refers to the combined values of gold plus antimony expressed in terms of antimony alone.

Assumptions and Methods

Bundtzen included the following steps during calculation of the indicated resources and probable reserves at Workman's Bench:

- personal inspection of Workman's Bench lode style gold property during 2007 - 2008;
- database compilation and data validation;
- geological interpretation and modeling;
- compositing assay intervals to a common length;
- determination of average material density for lode properties;
- analysis of grade variability;
- polygonal estimation of grade by compositing of sample assay information taken within designated widths and lengths of mineralized zones;
- assignment of appropriate cut off grades, the lowest grade that can be mined economically;
- classification of confidence in the estimates with respect to CIM
(2005) guidelines, and;
- mineral resource and reserve tabulation and validation of the resource estimate and reserve calculation.

Data Verification

During numerous personal inspections of the Nolan Creek properties (2007 to 2008) Bundtzen observed sample collection and sample preparation practices for lode-style deposits.

On June 13 and 14 and September 28 and 29, 2008, Bundtzen visited Nolan Camp and examined all significantly mineralized core intervals acquired from the 2007 and 2008 exploration drilling of the Workman's Bench property. A total of 124 mineralized intervals were examined. The analytical data was compared with each of the mineralized zones to confirm the elevated antimony and gold values in the sampled intervals.

Drill core intervals were checked through re-assay and inspection. Bundtzen is satisfied that the sampling and analysis of drill core was carried out in a sound manner.

Selected field duplicates of sampled intervals, two from underground channels, and one from a trench, were submitted by Bundtzen to an umpire laboratory (Alaska Assay Laboratories LLC) to check analytical results from ALS Chemex. In as much that the samples are collected by different individuals at different times and analyzed by different labs, Bundtzen judges that results from this limited comparison indicate acceptable levels of bias and accuracy for gold and antimony values and confirm the existence of mineralization.


Bundtzen completed the preliminary feasibility study in order to evaluate the merits of extracting antimony and gold from Workman's Bench using the reserve and resource base summarized above. The conceptual work plan would involve the selective underground extraction of high quality vein mineralization, processing of ore with a nearby surface plant using gravity (and possibly flotation) technologies, recovering most of the gold value on site at Nolan
Creek, and shipping a metallurgical grade stibnite concentrate to overseas buyers, either Asian (China) or European (Rotterdam, Netherlands) markets. The preliminary feasibility study used a wide variety of economic data to produce projected capital and operating costs estimates, environmental and social considerations, mining methods, processing technologies, permitting
issues, taxation issues, and commodity price trends, all of which became components of the Nolan lode development economic model.

Assuming an antimony price of $2.25/lb and a gold price at $700/ounce, and process recovery rates of 85% for antimony and 90% for gold, a seasonally operated 125 tpd concentrating plant could ship stibnite concentrates during a five year period and make a profit of about $27 million over the life of the operation. The mine would pay back capital costs in the third or fourth
quarter of the third year of development. Antimony, which accounts for 77 percent of the value of the product under the mining scenario, would clearly drive the project although gold (23 percent of total value) is a significant byproduct. Gold bars would be produced at the mine site thus creating early cash flow. Maintaining stibnite (ore of antimony) concentrate quality for
overseas markets is very important to the success of the proposed development. Preliminary metallurgical testing of a bulk sample from the Workman's Bench Lode shows high recovery rates of gold and antimony. Other impacting factors include wall rock stability underground permitting issues, and metal price trends of both antimony and gold.

The mine plan contemplates deploying standard cut and fill mining methods that would take place for five months during the winter, followed by a three month period of ore processing. When in full production the mill will process up to 12,500 tons of ore per year which will yield up to 4,590 ounces of gold and 5,000 tons of stibnite concentrate. Stibnite concentrates would be shipped during late summer and early fall of each year.

Cautionary Notes to U.S. Investors

U.S. investors are cautioned that the term "inferred resources" as used herein, is recognized by NI 43-101 under Canadian regulations, but is not recognized by the SEC. US investors are advised that NI 43-101 standards and the SEC's Industry Guide 7 standards are substantially different, and that many of the terms and concepts set out in and required to be disclosed by NI
43-101 as information material to the Company are neither recognized by the SEC nor included in or compliant with Industry Guide 7 standards.

Qualified Person

The mineral resource estimates and mineral reserves contained in this news release were prepared by Thomas K. Bundtzen, P.Geo, BS, MS, CPG-10912, ABSLN # 279639, President of Pacific Rim Geological Consulting, Inc. of Fairbanks, Alaska, who is independent of the Company as defined by NI 43-101. Bundtzen is a Certified Professional Geologist with the American Institute of Professional Geologists. Bundtzen is a "Qualified Person" as defined by NI 43-101 and also qualifies under the rules stated by the U.S. Securities and Exchange Commission ("SEC"), and has verified the data contained in this news release for accuracy.

About the Company

The Company is an exploration stage company focused on the exploration of gold properties, with some past production, and the development of new environmentally friendly low-rank coal water fuel technology. The Company has gold properties located throughout Alaska, which include a 100% interest in numerous mining claims located on the Nolan Creek property. Please visit

The Company is developing low-rank coal water fuel that is designed to be produced from low-rank coal and processed into an environmentally friendly oil substitute. Silverado Green Fuel Inc. is a wholly owned subsidiary of its publicly traded parent, Silverado Gold Mines Ltd. For more information about Silverado Green Fuel Inc., please visit

Forward-Looking Statements

This news release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions,
estimates and forecasts about the Company's business and the industry and markets in which it operates. Such forward-looking statements involve risks and uncertainties regarding the market price of gold, availability of funds, government regulations, common share prices, operating costs, capital costs, outcomes of test mining activities and other factors. Forward-looking
statements are made, without limitation, in relation to operating plans, property exploration activities, including test mining activities, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", or "continue", and the negative of such terms or other comparable terminology. Actual events or results may differ
materially. In evaluating these statements, you should consider various factors, including the risks detailed in the Company's filings with the Canadian Securities Authorities and the US SEC. These factors may cause the Company's actual results to differ materially from any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

SOURCE Silverado Gold Mines Ltd.

Silverado Gold Mines Ltd.: Mailing Address: Suite 1820 - 1111 West Georgia
St., Vancouver, BC, V6E 4M3, Canada; Email: Investor Relations:, Public Relations:; Telephone Numbers:
Corporate: (604) 689-1535, Facsimile: (604) 682-3519, Toll Free:
1-800-665-4646 (Canada and USA only); Trading Symbols: OTC BB - SLGLF,

Saturday, January 3, 2009

Azteca Gold Corp. Announces First Closing of Private Placement

SPOKANE, WASHINGTON, Jan 02, 2009 (MARKET WIRE via COMTEX) ----Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE: AZG) ("Azteca" or the "Company") announces that on December 31, 2008 the Company closed a non-brokered private placement for gross proceeds of $1,183,302. The Company issued 23,666,044 units, each unit consisting of one common share and one-half share purchase warrant. Each warrant entitles the holder to purchase one common share for $0.25 until December 31, 2010. Shares issued pursuant to this financing are subject to a 4 month hold period ending May 1, 2009.

The Company will extend the private placement by conducting a second and final closing on or before Wednesday, January 7, 2009. The Company will sell up to an additional 10,000,000 Units for gross proceeds of CAD $500,000.

Funds will be used for drilling and assaying expenses on the Company's 50% owned Two Mile Project as well as general working capital. Insiders subscribed for 63.1% of the amount raised.

Timing of Two Mile Project Assays

The Company expects to receive first preliminary assays on the mineralization of hole DDH-005A from the assay lab the week of January 5, 2009. Assaying and subsequent assay releases will be ongoing for holes DDH-005A, DDH-005B, and DDH-006 during 2009.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, changes in laws or regulations, the risks of obtaining final approval from necessary regulatory bodies in connection with the Private Placement, inaccurate assumptions concerning the exploration for and development of mineral deposits and timing related to receipt of the preliminary assays. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 136,441,996

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: Azteca Gold Corp. Jon Slizza VP of Finance (509) 981-2020
Email: SOURCE: Azteca Gold Corp. Copyright 2009
Market Wire, All rights reserved.

High River Gold Provides Update on Operations, Financial Status, and Personnel Changes

TORONTO, ONTARIO - High River Gold Mines Ltd. ("High River" or the "Company") (TSX: HRG) would like to provide an update on the operating status of its four gold mines, on its financial situation, and on recent personnel changes:

Operations Update


After a prolonged mill shutdown, the Taparko mill was restarted in November 2008. Early indications were that the mill vibration issue was resolved with the replacement of the gearbox. However, after several weeks of operation, the vibrations previously encountered in the mill drive-train have recently re-occurred. As a result, throughput for December has varied from zero to just over 2,000 tonnes per day, substantially below the planned average throughput rate of 2,450 tonnes per day. December gold production will consequently total approximately 4,100 ounces. A 7 to 10 day mill shutdown is scheduled for mid-January during which operating personnel will undertake action designed to correct the problem. Remedial action will include the reinstallation of the electric motor base plate, and a rotation of the ball mill bull gear 180 degrees about the vertical axis.


After the achievement of commercial production on October 1, 2008, Berezitovy mill throughput regularly exceeded 85% of the design capacity with satisfactory recoveries. Recently, throughput and recoveries at the mill have suffered due to mining in the pit encompassing the old underground workings, which resulted in fragments of the old timbers entering the process plant. Also the mill has been producing too coarse a grind, which has also adversely affected recoveries. As a result, gold production during the month of December is only expected to total approximately 1,400 ounces, with a further 3,200 ounces in material available for future processing in the furnace. Operating personnel at the mine are currently planning remedial action to resolve the issue.

Buryatzoloto (Zun-Holba and Irokinda)

The Zun-Holba and Irokinda underground gold mines continue to operate according to plan, and are currently on track to meet the budgeted 2008 whole year production target of 145,000 gold ounces (100% basis).

Financial Status

Cash Position

As of December 31, 2008, High River's head office cash position totalled approximately $11 million, a lower than anticipated amount due to the negative impact on Company cashflow from the unexpected operational difficulties at Taparko and Berezitovy.


High River and its operating subsidiaries have three lenders which comprise the majority of current and long term debt outstanding.

Approximately one half of the consolidated current and long term debt outstanding of $193 million, as of September 30, 2008, is comprised of various loans due to Nomos Bank by Buryatzoloto and Berezitovy. All scheduled loan repayments have been made to Nomos Bank, including a US $15 million loan repayment on November 21, 2008 on behalf of Berezitovy, and a further US $10 million loan repayment on December 21, 2008 on behalf of Buryatzoloto.

High River's Somita SA subsidiary, which operates the Taparko mine, continues to be in breach of loan covenants pursuant to the US $35 million loan agreement with Royal Gold Inc. The present balance of the facility with Royal Gold Inc. is US $30.3 million. Discussions are ongoing regarding obtaining a waiver of the covenant breaches.

Standard Bank Plc, with loans to Somita SA and High River of approximately $27 million, was recently granted a corporate guarantee from Severstal after completion of the Severstal private placement in High River. The repayment date on these facilities has been extended into 2010.

Total High River consolidated debt at the end of December 2008 is anticipated to be approximately US $142 million.

Trade Creditors

Recently, High River advised Somita SA trade creditors that it will slow down payments for accounts payable for a brief period in light of lower than expected cashflows from the group's operations. Management plans to pay suppliers for current purchases of goods and services.

Actions being taken to meet financial obligations

High River is currently in discussions relating to additional debt or equity financing arrangements to meet its financial obligations. It hopes to finalize these arrangements by January 31, 2009.

Personnel Changes

Two officers of High River, Don Whalen, Executive Vice President, and Mike Kelly, Executive Vice President and Chief Operating Officer, have left the Company. In the interim, until a permanent replacement can be found, Chief Operating Officer duties will be shared by High River CEO, Nikolay Zelenskiy, and the mine managers of the Company's 4 operating mines. As well, Valery Dmitriev, General Director of Buryatzoloto, has left High River. Replacing him is Vladimir Baltsat, who previously worked for Peter Hambro Mining Plc as the mine manager of the Pokrovsky mine in Russia.

About High River

High River is a gold company with interests in producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia.


This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

High River Gold Mines Ltd.
Dan Hrushewsky
Vice President Investor Relations
(416) 947-1440
(416) 360-0010 (FAX)
© MarketWire 2009

Paramount Gold and Silver Corp. Completes $2,000,000 Financing with the MineralFields Group

Paramount Gold and Silver Corp. (TSX: PZG)(NYSE-A: PZG)(AMEX: PZG)(FRANKFURT: P6G)is pleased to announce a private placement of CDN$2,000,000 through the sale of 3,636,363 units at $0.55 each to the MineralFields Group. Each flow through unit is comprised of one restricted common share and one share purchase warrant exercisable for a period of two years from closing at a price of $1.00 per share during the first year and $1.25 during the second year. First Canadian Securities received commission of 5% of the proceeds and warrants for acting as agent in the financing.

"We are very pleased to be entering into this relationship with MineralFields Group", said Christopher Crupi, CEO. "This is an important milestone in the growth of Paramount Gold and Silver Corp. and we look forward to working with MineralFields Group as we develop our projects in Canada.

Paramount Gold and Silver Corp. has also executed an agreement to acquire an interest in the Vidette Lake Gold Mine located in British Columbia, Canada and continues to look at other properties of interest. Further details regarding Paramount is available at

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at

Paramount Gold and Silver Corp.
Christopher Crupi

New Gold Places the Amapari Mine on Temporary Care and Maintenance

VANCOUVER, Jan. 2 /PRNewswire-FirstCall/ - New Gold Inc. ("New Gold") (TSX and AMEX - NGD) today placed its Amapari Mine in Brazil on temporary care and maintenance.

Robert Gallagher, New Gold's President and Chief Executive Officer stated: "We had hoped to mine and process oxide ores through the third quarter of 2009, but efforts to maintain recent improvements in production and costs with the increasing amounts of hard transition ore and waste in the Amapari pits have been unsuccessful. While significant resources remain at Amapari, the additional capital required to maintain economic production levels and the limited remaining oxide reserves justifies the decision to place the mine on care and maintenance."

New Gold has determined that it would be more cost-effective to process the remaining oxide ore (including transition material) with the underlying sulphide resource in a new process facility. New Gold is preparing a Preliminary Economic Assessment ("PEA") to exploit this resource with a conventional crush/grind/CIL mill. It is expected that this study will be completed in the first quarter of 2009. New Gold will also investigate other strategic alternatives for the Amapari operation.

In the meantime, mining at Amapari is being suspended immediately. The leaching of stacked material is expected to continue until it is no longer economic to do so. The operation will be placed on care and maintenance pending the results of the PEA. All environmental monitoring and on-going remediation programs will continue during this period and beyond, as will on-going exploration programs on New Gold's concessions at Amapari.

New Gold is an intermediate gold mining company with operating assets in Mexico and Australia and two development projects in Canada and Chile. For further information on New Gold, please visit our website at


Certain information contained in this press release, including any information relating to New Gold's future financial or operating performance, may be deemed "forward looking". All statements in this press release, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause New Gold's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: the results of the preliminary economic assessment assessing the viability of a new process facility; New Gold's operations are subject to significant capital requirements ; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Brazil, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Brazil, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as "Risks and Uncertainties" included in New Gold's MD&A filed November 12, 2008 available at Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this press release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

SOURCE New Gold Inc.