US Gold's (UXG) Solid Future with Rob McEwen

Outside of the mining industry, the name of Rob McEwen may not be well known, but within the industry he's a legend, and his legendary status is being enhanced with his successful running of US Gold (NYSE:UXG), as well as Minera Andes (TSE:MAI).

For those who may not know McEwen, he's the person who launched Goldcorp (NYSE:GG) and started it on the way to becoming the company it is today.

While running Goldcorp, McEwan gave shareholders an average annual return of 31 percent; a huge accomplishment by any measurement.

As for his launching of US Gold, when institutional investors found he had started the company, based on his reputation alone the share price of the stock soared to $10 a share.

But even his reputation and leadership wasn't enough to make a big difference when the financial crisis in 2008 emerged, and shares of US Gold plummeted to below $1 a share, as the company had little in the way of resources to justify the ongoing price.

That was until the latter part of 2009, when the company discovered El Gallo in Mexico, which is among one of the best silver finds in recent history.

After a recent scoping study of El Gallo, the conclusion is it will be able to produce at low cash costs, has a solid grade, is open pit, and includes a significant exploration upside.

McEwen has stated that by 2013 the company will produce about 5 million ounces of silver and 35,000 ounces of gold. He also believes it will be listed on the S&P 500 by 2015.

McEwen also runs Minera Andes, as mentioned, and it is believed he will eventually merge the two companies to create a mining exploration powerhouse.

With a $100 exploration war chest to look for expansion in Nevada and Mexico, along with merger probability, US Gold will bring some serious returns for those with a long-term investment horizon.

Gold $5,000 Says (UXG) (MAI) Chairman

Rob McEwen, Chairman of Minera Andes (MAI) and US Gold Corp (UXG), says he says gold is probably going to reach $5,000 an ounce in the next 3 to 4 years, citing demand from investors and central banks.

The price of gold may hit $5,000 an ounce, nearly three times current levels, in three to four years, as demand from sovereign states, central banks and exchange-traded funds (ETFs) rises, the chairman of two Canadian gold mining companies said.

"Gold is used as insurance for bad governments," Rob McEwen, chairman and chief executive of Minera Andes Inc and US Gold Corp, told Reuters on the sidelines of the Mines and Money conference in Hong Kong on Wednesday.

Gold is traditionally used as a hedging tool against inflation and economic uncertainty. The yellow metal has also been a favourite investor hedge against loose monetary policies in the wake of the global financial crisis.

McEwen said gold was in the middle of a super cycle that could end by 2015, adding that the length of the gold super cycle and the $5,000 forecast were based on historical gold prices and the ratio of the Dow stock index against gold since 1970.




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