Sunday, 19 October 2014

Switzerland Is Only Country That Would Vote For Bigger Gold Reserves.



  I continue to follow Swiss Gold Referendum developments and would like to share the very important news for TNR Gold.


Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.




TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".




Stay tuned: new presentation will reflect this very important development for our company.






Kitco:


(Kitco News) - If there is one country in the world that would vote yes in a referendum to force its central bank to increase its gold reserves, it would be Switzerland, said one Liechtenstein fund manager.
Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report, said that he is not surprised there is a campaign to increase the country’s gold reserves as the yellow metal has had a long tradition of being linked to the Swiss franc.
Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report
“Switzerland used to have the highest gold reserves per-capita in the world up to about 10 years ago,” he said. “A lot of people still believe that gold is the foundation and the backbone of a strong currency.”
Stoeferle is in a unique position regarding the gold vote because Liechtenstein, which borders Switzerland, uses the Swiss franc as its currency. The vote, if passed, could have an impact on the country’s currency because it would impact the Swiss National Bank’s foreign reserves. Although Liechtenstein doesn’t get a say in the Swiss referendum Stoeferle has been following the initiative closely.
On Nov. 30, Swiss citizens will go to the polls to vote on three areas; whether or not the Swiss National Bank should increase its gold reserves to 20%, that the central bank should stop selling its precious metals and that all its gold should be held within the country.
With less than two months to go, Stoeferle explained that the Swiss gold referendum has now started to attract a lot of attention across the globe; however, he added that it is still too early to determine how popular the initiative is among the Swiss populace. He added that the campaign, started by the Swiss People’s party in April of 2013 after they collected more than 100,000 signatures to force the referendum, is expected to begin in earnest on Oct. 21.
Although it is still too soon to gauge the sentiment in the country, Stoeferle added that a lot of people aren’t happy that the central bank has expanded its balance sheet to weaken its currency and stimulate growth. Since 2011, the SNB has pegged the franc to the euro and maintains a floor of 1 euro to 1.20 francs.
“A lot of people believe that debasing the currency is not a sound economic policy,” said Stoeferle, “There is no evidence that a weak currency leads to long-term economic growth.”
The yes camp is up against some strong opposition as both the Swiss government and the national bank have urged people to vote down the gold initiative. Last week the Swiss government continued its campaign against the referendum as Eveline Widmer-Schlumpf, the country’s Finance Minster said at a press conference in Bern, that fixed gold reserves would impede the SNB’s monetary policy.
Although there are some short-term benefits from a weaker currency like increased exports, Stoeferle said that he doesn’t believe those benefits outweigh the weaker purchasing power on imports. Instead, he added, the government should be implementing stronger economic policies and encourage companies to be more efficient to compete in the global marketplace.
“Perhaps a weaker currency makes good short-term gains but a central bank should not act like a hedge fund. I think they need to think in the long-term what is best for the country and the currency,” he said.
Whether the referendum passes or not, Stoeferle said the next few weeks will be an interesting time for the country as the population discusses the future of its central bank’s monetary policy. He is expecting the referendum to raise awareness of the country’s economy and currency.
“This initiative is the result of direct democracy, which is something the people are very proud of,” he said. “This referendum will impact the country’s economy and currency and I think the people will very quickly become interested in this discussion.”
Currently Switzerland holds about 1,040 metric tons of gold, which makes about 7.8% of its foreign reserves. Last week currency analysts at Nomura said if the referendum passes the country will have to triple its reserves during the next five years to meet its 20% commitment. They added that the SNB will have to purchase between $67 and $83 billion worth of gold.
By Neils Christensen of Kitco News; nchristensen@kitco.com"

Friday, 17 October 2014

TNR Gold and McEwen Mining Agree to Convert TNR’s Back in Right to a NSR on the Los Azules Copper Project, Argentina



TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

I am very pleased to report our latest development on Los Azules.

We have finally locked up the participation in this unique world-class copper  asset for the benefit of all our shareholders:

1. Now we do not have to wait for feasibility study.

2. We do not have to contribute any capital.

3. Our industry standard NSR in "one of the largest undeveloped copper projects", according to McEwen Mining, is in effect immediately and can be monetised now at any time.

4. 0.4% NSR is now attributed to the entire Los Azules project - it is higher than pro-rata 0.6% attributed to only our part of Los Azules before.

5. We will participate in sale of Los Azules by McEwen Mining within 36 month and it is not affecting our NSR. 

6. We are receiving shares in McEwen Mining.

7. Now TNR Gold will benefit directly from:

A. Sale of Los Azules by McEwen Mining within 36 months.
B. Rise in value of McEwen mining shares.
C. Rise in Copper prices.
D. Potential increase in the deposit size and quality of the reported resources of the entire Los Azules.
E. Further feasibility studies conducted by the McEwen Mining or the new Operator and advancement of the project.

Jim Mustard VP of PI Financial can provide you with additional information on Los Azules Copper project and TNR Gold assets related to it.


Please read our full legal disclaimer in our presentation and on our website: http://www.tnrgoldcorp.com/

Stay tuned: new presentation will reflect this very important development for our company.






TNR Gold:


TNR Gold Corp. and McEwen Mining Inc. Agree to Convert TNR’s Back in Right to a NSR on the Los Azules Copper Project, Argentina

Vancouver, B.C. October 17, 2014, TNR Gold Corp. (the "Company" or “TNR) (TSX VENTURE:TNR.V ) announces that it has entered into a transfer agreement (the “Transfer Agreement”) with McEwen Mining Inc. (NYSE:MUX, TSX:MUX) ("McEwen") pursuant to which the Company will convert all of rights and interests (the “E&O Agreement Rights”)  under a Cordon de Los Azules Exploration and Option Agreement dated effective as of May 15, 2004, as amended April 26, 2005 and November 8, 2012, including its 25% back-in right (the “Back-In Right”) in the northern portion of the Los Azules Copper Project (the “Project”) in San Juan Province, Argentina.  The Back-In Right is exercisable following the completion of a feasibility study and if the Company elected to back-in for 5% or less or had its interest diluted to 5% or less, TNR would receive a net smelter royalty of 0.6% from the northern portion of the Project (see TNR News Release November 12, 2012).
In exchange for TNR converting the E&O Agreement Rights, McEwen will:
 (1) cause its  wholly owned Argentinian subsidiary, Andes Corporacion  Minera S.A. (“Andes”) to enter into a net smelter royalty agreement with Compania Minera Solitario Argentina S.A.  (“Solitario”), an Argentinian company controlled by TNR,  pursuant to which Andes will pay Solitario a 0.4% net smelter returns royalty (“NSR”) in respect of the entire Project;

(2) issue TNR 850,000 common shares; and

(3) pay TNR 1% of any purchase price paid to and received by McEwen in respect of any sale, assignment of transfer of all of its interest in the Project, to a party other than to an affiliate of McEwen, on or before the third anniversary of the Transfer Agreement.

The Company believes converting the E&O Agreement Rights are in the best interest of its shareholders because it clarifies the ambiguity surrounding the details of the Back-In Right and the conditions under which the Back-In Right can be exercised.

Gary Schellenberg, President and CEO of TNR commented, “We have noted significant confusion in some of our shareholders regarding the particulars of the Back-In Right. It is the goal of TNR, through its lead generator business model, to advance toward the royalty ownership model as our projects, identified at an early stage of exploration, are advanced toward development by joint venture partners. This latest agreement with McEwen now completes the process for the Los Azules Project.”

 “We are very pleased to reach this agreement with McEwen. I would like to thank Rob McEwen personally for his efforts to work with us to find an amenable solution to simplify the Back-In Right at Los Azules. I am confident this transaction will facilitate the advancement of the Los Azules Project. Los Azules is a unique, long-life, copper mining opportunity in Argentina. Recent acquisitions which include the Las Bambas copper mining project in Peru acquired by Minmetals Group from China and the Taca Taca copper deposit in Argentina acquired by First Quantum Minerals Ltd. confirm there is significant value to be realized for projects in this region. TNR Gold now carries an industry standard NSR on the entire Los Azules project which also allows McEwen Mining to facilitate further strategic transactions with this Project and I believe the shareholders of TNR will benefit as the Project advances through the feasibility stages,” commented Mr. Kirill Klip, Non-Executive Chairman of TNR.

ABOUT LOS AZULES

The Los Azules copper deposit is located in the San Juan province of Argentina. McEwen is the current operator on the Los Azules copper deposit and the Company has previously advised that on May 15, March 28, and March 13, 2013, McEwen Mining Inc. issued press releases in relation to the deposit, which are accessible on SEDAR athttp://www.sedar.com and on McEwen Mining Inc.’s website at http://mcewenmining.com.
McEwen's press releases appear to be prepared by Qualified Persons and the procedures, methodology and key assumptions disclosed therein are those adopted and consistently applied in the mining industry, but no Qualified Person engaged by TNR has done sufficient work to analyze, interpret, classify or verify McEwen's information to determine the current mineral reserve or resource or other information referred to in their press releases. Accordingly, the reader is cautioned in placing any reliance on the disclosures therein.

ABOUT TNR GOLD Corp.  (www.tnrgoldcorp.com)

Over the past twenty-one years TNR, through its lead generator business model, has been successful in generating high quality exploration projects around the globe. With the Company's expertise, resources and industry network, it is well positioned to aggressively identify, source, explore, partner and continue to expand its project portfolio.
TNR recently reported an inferred mineral resource at the Shotgun Gold project in Alaska containing 20,734,313 tonnes at 1.06 grams per tonne (“g/t”) gold for a total of 705,960 ounces gold (“Au”) using a 0.5 g/t Au cut-off (see news release dated 22 April 2013).
TNR is also a major shareholder of International Lithium Corp. (TSX:ILC.V) (“ILC”), a company created by TNR to advance its internationally acquired lithium prospects. TNR currently holds about 25.5% of the outstanding shares of ILC.
At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska and Argentina and is committed to continued generation of in-demand projects, while diversifying its markets and building shareholder value.
John Harrop, PGeo, FGS, is a "Qualified Person" as defined under NI 43-101 and has reviewed and approved the technical content of this news release.
For further details please see our website at http://www.tnrgoldcorp.com/s/NewsReleases.asp
On behalf of the board,

Gary Schellenberg
President


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. "


Frank Holmes: Gold Appears to Have Reached a Bottom.



  Frank Holmes gives a very good observations of the driving forces in the gold market and point our attention to Swiss Gold Referendum again.


Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.


On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on: 
1) Returning their national gold which is held abroad back to Switzerland 
2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold 
3) Prohibiting further gold sales 

What will a “YES” vote mean for Switzerland and gold? Read more."






Kitco:


SWOT Analysis: Gold Appears to Have Reached a Bottom


Strengths
  • After the one-week holiday, Chinese consumers returned to the gold markets. Gold futures rose this week as many anticipate the Chinese will take advantage of lower gold prices. Indeed, gold seemed to withstand recent decreases in oil prices as well as increases in the dollar, implying that many investors are taking advantage of the bargain prices. On Friday, the Bank Credit Analyst highlighted that gold prices are unlikely to break down after successfully bouncing off support at $1,200 and are poised to stage a relief rally into the end of the year.
  • Franco-Nevada Corp. has entered into an agreement with Lundin Mining Corp. to acquire a gold-silver stream. Lundin recently purchased an 80-percent interest in Freeport-McMoRan’s Candelario/Ojos del Salado mining complex in Chile.
  • There was a significant amount of positive news from many companies this week. Balmoral Resources Ltd. reported that its drill results revealed a higher-grade potential at its Martiniere property. Romarco Minerals, Inc. received its awaited 401 Water Quality Certification for its Haile project. Lastly, Richmont Mines raised its gold output view to 85,000-90,000 ounces, claiming strong performance from Island Gold mine.
Weaknesses
  • This week, Deutsche Bank recommended shorting gold due to the strong dollar environment. 
  • A continuation of the prevailing socialist model in South America, Chile’s Supreme Court granted a petition by the Diaguita communities to overturn a resolution to develop the El Morro gold-copper project joint venture (JV) in Chile. This is the third time Goldcorp’s El Morro project has been suspended in three years.
  • This week Luna Gold established a special committee of independent board members to look into strategic alternatives. The stock tumbled as much as 30 percent on the news.
Opportunities
Multiple opportunities relating to the Swiss National Bank Gold Initiative:
  • Switzerland has decided to hold a vote on the initiative, which would force the central bank to hold at least 20 percent of its assets in gold. The initiative, scheduled for a November 30 vote, would forbid the sale of any holdings and require them to be held in Switzerland.


  • If passed, the Swiss National Bank would have to buy roughly 1,500 tonnes of gold over five years to meet the 20-percent requirement. Since 1993, the Bank has reduced its gold holdings by 1,550 tonnes, the largest liquidation by any central bank. Changing from the largest seller to a rapid buyer should create serious tailwinds for gold.
  • The initiative put forth in Switzerland is part of a larger theme relating to increased gold purchases by central banks. Global central bank reserve holdings had been declining without interruption since 1989 until the financial crisis. Since 2008, there has been a steady rise in central bank gold holdings. With the possibility of substantial purchases from the Swiss National Bank, this rise should continue.
Threats
  • This week, BMO Capital Markets, Morgan Stanley and ANZ all reinforced their negative outlook for gold prices. While this consensus is negative, such wide consensus agreement usually coincides with a reversal in the going trend.
  • The World Gold Council is calling on India to mobilize and monetize its household savings imbedded in physical gold stocks. If the Indian government decides to use the idle gold from households and temples, it would reduce the need for future imports, which would be negative for global gold demand.
  • Uncertainty from residents of the Mokopane area in the northern Limpopo province of South Africa is threatening to hold up Robert Friedland’s platinum project. The billionaire promised the residents a 20-percent stake in the project, but the residents remain unsure of the exact method of repayment for the project.
Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors"

Wednesday, 15 October 2014

Sprott Precious Metals Roundtable Webcast - October 2014.


  Now this conversation will be taken from the different perspective. DOW crashed 460 points intraday today so far and all assets will be re-priced now dramatically. Risk is out there and it not only depends on FED's mood.

Gold Imports by India Seen Rising More Than Fourfold Last Month.

  


  "Bloomberg reports that demand for Gold in India has surged up to 95t in September and there are some estimates that it could be as high as 115t. Today during the morning Ebola panic DOW has crashed 370 points and Gold has surged to $1250. Nobody knows the future, but one observation is almost for sure: the risk calculation is totally distorted by the ZIRP FED actions and any external event out of FED's control, like Ebola scare (which is very unfortunate), can bring the very fast repricing of assets' prices. The cure will be all the same - QE4 buzz is more and more aloud now.
  With India back into the Gold market and China buying almost all produced Gold out of China, Switzerland referendum is the real wild card, which could ignite the run on physical gold deliveries. Read more."

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.


"On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on: 
1) Returning their national gold which is held abroad back to Switzerland 
2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold 
3) Prohibiting further gold sales 


What will a “YES” vote mean for Switzerland and gold? Watch the videos."

Gold Imports by India Seen Rising More Than Fourfold Last Month.

  


  Bloomberg reports that demand for Gold in India has surged up to 95t in September and there are some estimates that it could be as high as 115t. Today during the morning Ebola panic DOW has crashed 370 points and Gold has surged to $1250. Nobody knows the future, but one observation is almost for sure: the risk calculation is totally distorted by the ZIRP FED actions and any external event out of FED's control, like Ebola scare (which is very unfortunate), can bring the very fast repricing of assets' prices. The cure will be all the same - QE4 buzz is more and more aloud now.
  With India back into the Gold market and China buying almost all produced Gold out of China, Switzerland referendum is the real wild card, which could ignite the run on physical gold deliveries.

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.


"On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on: 
1) Returning their national gold which is held abroad back to Switzerland 
2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold 
3) Prohibiting further gold sales 


What will a “YES” vote mean for Switzerland and gold? Watch the videos."


Bloomberg:

Gold Imports by India Seen Rising More Than Fourfold Last Month.


"Gold imports by India, the largest user after China, probably surged more than fourfold last month on expectations declining prices would boost festival demand.
Purchases are estimated at about 95 metric tons compared with 15 tons to 20 tons in September last year, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation. The government raised import taxes for a third time in August last year after a month earlier obliging importers to set aside 20 percent of purchases for re-export as jewelry.
India represented 25 percent of global demand in 2013. Imports of gold were valued at $3.75 billion in September, 450 percent more than a year earlier, the Commerce Ministry estimates. Buying and gifting of gold is considered auspicious and the most favorable time is the festival of Dhanteras, two days before Diwali which occurs on Oct. 23. Festivals run through November and the wedding season follows to early May.
“These are normal imports before Diwali,” Bamalwa said in a phone interview from Kolkata today. “There is no abnormal feature. Prices have fallen in the international market and this is good for Indian consumers.” Bloomberg."



Accelerating Electric Vehicle Adoption.


By Bill Williams

  Charging infrastructure is very important for creation of the mass market for electric cars and now we have very fast developments in this space.

Lithium Race. Made by Tesla Motors: Superchargers Invasion In Europe.



  If you are still wondering how to charge your electric car in Europe, please look at the map above. Talks between Tesla, BMW and Nissan about the universal access to the superchargers technology can ignite very fast growth for electric cars in the budget segment. Now we need the mass market electric car from Tesla Motors to make this rEvolution happen for real. Read more."


All You Need To Know About Tesla's Nevada Lithium Batteries Gigafactory.


  

  "The deal of the century or at least its first decade for electric cars is signed by Elon Musk. Gigafactory will open the doors for the mass market for electric cars and $35k Tesla Model III will be the first one rolling out. I will provide links in addition to the report by Damon Lavrinc so that you can get the full picture of this groundbreaking development for our industry. Read more."

Electric Cars Jolt: Tesla, BMW And Nissan Meeting In Secret To Discuss Supercharger Network.




Structural Geology And Lithium.



By Gaurav Tandon , Assistant Professor atNMIMS


International Lithium And Ganfeng Lithium: Avalonia Lithium Project, Ireland.



 I would like to present to your attention our Avalonia Lithium project in Ireland today. Now we are back on the ground advancing this J/V with Ganfeng Lithium - one of the top world-wide lithium producers from China. 
  Ganfeng Lithium is closing its purchase of lithium battery maker in China and International Lithium will become part of this vertically integrated lithium business. You can learn more from the materials below and always visit our website for the latest information. You can find me on LinkeIn and Twitter to engage in conversation.
  Recent world-wide public awareness about the climate change and lithium technology advance demonstrated by Tesla Motors, present to us the unique opportunity to capitalise on this trends advancing the development of lithium supply chain. The largest world auto-market is based now in China. The Chinese Premier has announced the war on pollution and electric cars are at the forefront of this development. Our strategic partnership with Ganfeng Lithium opens the doors for our company to participate in these global development in electrification of our transportation.

"Mr. Kirill Klip, President, International Lithium Corp. comments, "We are excited to spearhead this international collaboration and program that sets a precedent for sourcing metals that are imperative to the advancement of mobile devices, electric vehicles and alternative energy. The demand for Lithium is continually on the rise and there are shortage concerns which could impede on the growth of the green technology sector worldwide. The Irish government has taken this risk very seriously and pledged to facilitate the advancement of lithium production as part of an initiative to improve strategic metal supply chains. Together with Ganfeng Lithium, ILC has the opportunity to be part of this development and we are optimistic that we have a new potential source for the lithium battery supply chain".


Mr. Wang Xiaoshen, Vice Chairman/ VP, Ganfeng Lithium Corp. notes, "Recent news that corporations such as Tesla and Panasonic are making significant commitments to build gigafactory battery plants will significantly impact the demand for Lithium. Similarly the Chinese market will become increasingly more important to companies like Tesla in the near future. These two reasons make BLL an ideal prospect for the lithium industry."

International Lithium Corp. Begins Reconnaissance Program and Renames Blackstairs Lithium Project, Ireland.




China Rolls Out Welcome Mat for Electric Cars: Ganfeng Lithium Partners with International Lithium in Argentina and Ireland.


“Ganfeng has an army of lithium-focused geologists who looked at projects in every corner of the planet,” stated ILC president Kirill Klip in an exclusive interview, “but they chose ILC to do business with. This is a big de-risking factor for our current and future shareholders. The Chinese do their homework. They believe in the geology of our assets, our management and our development strategy.” Read more.



International Lithium:


International Lithium Corp. Begins Reconnaissance Program and Renames Blackstairs Litihum Project, Ireland


    Vancouver, B.C. September 17, 2014: International Lithium Corp. (the "Company" or "ILC") (TSX VENTURE:ILC.V) is pleased to announce the commencement of the first phase of a EUR€1,600,000 (approximately CAN$2,300,000) exploration program on the newly named Avalonia Lithium project located in Leinster province of southeastern Ireland. Pursuant to the Option Agreement announced on March 19, 2014 and Company News Release dated July 30, 2014, strategic partner Ganfeng Lithium Co. Ltd. ("Ganfeng or "GFL") has advanced EUR€500,000 (approximately CAN$725,000) for the first phase of the program.

    The first cash advance of the multi-phase program will be used to conduct regional scale geological mapping and geochemical surveys in preparation for drill target selection. Crews are now on-site. The newly acquired results will be compiled with existing data and known mineralized occurrences to prioritize exploratory drilling and resource delineation drilling in subsequent phases. ILC is manager of the project and will receive a management fee of up to 10% of the exploration expenditures.

    In respect of the expanded scale of the target area, the Company has elected to choose a name for the project that better reflects the potential for a significant lithium discovery within the over 50 kilometre strike length of the East Carlow Deformation Zone and the associated Leinster granites that host the lithium bearing pegmatites. The project will now be known as the Avalonia Lithium project.

    The name is derived from an ancient micro-continent called Avalonia which, during the closing of the Iapetus Ocean (the Caledonian orogeny), collided with the European continent (Baltica) and the North American continent (Laurentia). The collision created a deep extensive suture zone (Iapetus suture zone) well recognized as an excellent structural domain to produce Li and Rare Metal enriched pegmatite bodies. The suture extends from Norway to the British Isles, Southeast Ireland, Newfoundland, and the Eastern USA where the suture zone is known to host the Kings Mountain and Bessemer City lithium mines.

    The Avalonia Lithium project's Li and Rare Metal enriched pegmatite field is situated along the highly prospective Southeast Ireland segment (the East Carlow Deformation zone) of the Iapetus suture zone.

    About the Avalonia Lithium Project