Aurcana One Step Closer to Mid-Tier Status

Aurcana Reports Record Production in Q1. Keep an eye on this one! They've got the Shafter silver mine in Texas coming online very shortly, which will produce 3.8 million ounces of silver in the first 3 years.

All we need to do now is change the name to "Aurcana Silver" !

I am long AUN.
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"Thu Apr 26, 2012 Aurcana Reports: Record Silver Production at La Negra Mine

Aurcana Corporation ("Aurcana" or the "Company") is pleased to report silver production for Q1 2012 of 287,486 ounces compared to 240,275 in Q1 2011 , the largest quarter for silver production in Aurcana's history. Silver production for the first quarter of 2012 increased 19.6% compared to Q1, 2011. Silver Equivalent increased 29.3% to 492,864 for Q1 2012, compared to 381,146 in Q1 2011.

The average grade of silver increased 9% to 81 grams per ton in Q1, 2012, compared to 74 grams per ton in Q1, 2011.

Mill feed was 130,570 tonnes in Q1. Fifteen percent (18,948 tonnes) were from NI 43-101 Measured and Indicated Resources and 85% (111,622 tonnes) were from new discoveries or non-compliant resources. La Negra is now applying 43-101 standards in developing new mineralized zones to increase our compliant resources. A new compliant resource estimate will be released in the second quarter. Additionally, new ore zone development initiatives are being carried out on the Northwest Trend."


www.aurcana.com

The "V" That Jim Sinclair is Talking About

Jim Sinclair said recently in a King World News interview: "...we’ve seen some V-bottoms during daily operations, where they (manipulators) have forced gold (down) and it just snapped right back.  There is no question, it is a matter of record, that multiple central banks around the world have been large buyers of a significant amount of gold in the last two months."

"... every time the manipulators come in to reduce the price they are running into significant physical buying.... "


Why would gold drop to $1640 to $1625 in a day where the Fed re-iterates that interest rates would be kept low to 2014? That is bullish for gold. The answer is obviously, manipulation.

Newmont Mining Raises Dividend 75 Percent

Proof that gold miners are really profitable even with gold at current "low" levels! 
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"Newmont Mining (NYSE: NEM, Stock Forum), after Tuesday's close, announced that its Board of Directors declared a quarterly dividend of 35 cents per share of common stock, payable on June 28, 2012, to holders of record at the close of business on June 12, 2012.

"The 75% increase in our dividend compared to the second quarter of 2011 demonstrates our commitment to returning capital to shareholders," said Richard O'Brien, Newmont's President and CEO. "Our shareholders continue to benefit from our preeminent gold price-linked dividend policy."

The second quarter 2012 dividend of 35 cents per share was declared in consideration of Newmont's first quarter 2012 average realized gold price of $1,684 an ounce. Under the miner's gold price-linked dividend guideline, each quarterly dividend will be based on Newmont's average realized gold price for the preceding quarter.

At its current share price of $46.37, Newmont's quarterly dividend payout rate would give its stock a yield of about 3% on an annualized basis, presuming the gold price remained at $1,684 throughout the year. At a $2000 gold price, the yield would jump to nearly 6% if the stock stayed in the $46 range.
Despite its dividend increase, shares of Newmont Mining have dropped 18% during the past 52 weeks. The company plans to release its first quarter 2012 results before the market opens on Friday, April 27, 2012." From Stockhouse.com

Endeavor Silver Reports Record Production in Q1 2012

" Endeavour Silver Reports Record Production in First Quarter, 2012; Produces 1,072,491 oz Silver (Up 19%) and 6,321 oz Gold (Up 26%); Final NI 43-101 Reserve and Resource Report Results in Minor Adjustments to Reserves and Resources

Silver production was up 19% to 1,072,491 ounces (oz) and gold production was up 26% to 6,321 oz compared to the First Quarter 2011. Revenues were up 39% to US$49.0 million thanks to both the higher metal production and higher realized gold prices."

Here is definitely something to take note of below. The company and management are doing something very smart here in my opinion:
 

"Note: In January and February, 2012, gold and silver prices enjoyed a significant rebound from their lows in December, 2011. Endeavour therefore elected to sell most of the precious metal inventory it accumulated in Q4, 2011 in order to capture the higher gold and silver prices. However, gold and silver prices corrected sharply once again in March 2012 so Endeavour management once again chose to accumulate its precious metal production in Q1, 2012 rather than sell at depressed prices. Management plans to monitor precious metal prices closely and sell some (or all) of the silver and gold inventory at appropriately higher metal prices, or if the need arises for more cash."

Source: www.edrsilver.com. 

I am long EXK.

 

Gold Junior Soars on Assay Results

"TomaGold Corp. (TSX: V.LOT, Stock Forum) soared 128% to 80 cents Wednesday after its Monster Lake project in Chibougamau, Que., coughed up a high grade intersection in a single drill hole. TomaGold said it intersected 5.7 metres grading 237.6 grams gold per tonne in hole M-12-60, which is part of an 18-hole program that aims to demonstrate continuity and confirm the northern extension of the Annie Zone." From Stockhouse. 


TomaGold is a Canadian mineral exploration company active in northern Quebec. The company management is committed to evolve in a conscientious and determined the orientation strategy to maximize shareholders’ equity by managing Professional gold mining assets as well as existing the acquisition and promotion of other precious metal projects. The Company has adopted a code of conduct which are the pillars of integrity, good governance, respect for First Nations and finally, the responsibility Environmental. Website - http://tomagoldcorp.com/

More on the Monster Lake Property - "The 3 zones remain open along strike due to single hole which have encountered gold mineralization or simply from the lack of drilling.  For instance hole 95-75 intersected 3.14 g/t Au over 2.0 meters and hole 95-55 cut 5.83 g/t Au over 1.1 meter and are single holes south of the 52 Zone, which add a potential 400 meters of additional strike length to the zone.  The north extension of Zone 52 is also open as no holes have been drilled for at least 500 meters along strike to the North."

I don't own any shares but will conduct some due diligence over the next couple of days.

Insider Buy Alert - Paramount Gold

Insiders are backing the truck up and loading shares of Paramount Gold and Silver (PZG). A sign of good things to come, perhaps?

Here are the most recent transactions, courtesy of CanadianInsider.com:

Filing Date

Transaction Date

Insider Name

Ownership Type

Securities

Nature of transaction

# or value acquired or disposed of

Unit Price

Apr 3/12

Mar 30/12

FCMI Financial Corporation

Direct Ownership

Common Shares

16 - Acquisition under a prospectus exemption

1,170,732

$2.05 USD

Mar 30/12

Mar 29/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

10,800

$2.22 USD

Mar 30/12

Mar 29/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

7,050

$2.25 USD

Mar 30/12

Mar 29/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

17,150

$2.23 USD

Mar 30/12

Mar 29/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

200

$2.22 USD

Mar 30/12

Mar 29/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

13,600

$2.23

Mar 30/12

Mar 29/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

1,200

$2.22

Mar 29/12

Mar 29/12

Buffone, Carlo Anthony

Direct Ownership

Common Shares

10 - Acquisition in the public market

15,000

$2.20

Mar 29/12

Mar 29/12

Buffone, Carlo Anthony

Direct Ownership

Common Shares

10 - Acquisition in the public market

5,000

$2.20 USD

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

5,700

$2.23 USD

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

13,000

$2.22 USD

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

200

$2.20 USD

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

5,800

$2.21 USD

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

7,700

$2.18

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

2,100

$2.16

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

200

$2.16

Mar 29/12

Mar 28/12

Crupi, Christopher

Direct Ownership

Common Shares

10 - Acquisition in the public market

15,300

$2.17"

Brigus Ready for a Breakout

BIG news out of the Brigus Gold camp today. I guess there was a good reason for all that recent insider buying!

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"Brigus Reports 26.83 Grams Per Tonne Gold Over 15.50 Metres at the Contact Zone on the Black Fox Complex.

The initial resource estimate for the Contact and 147 zones, as released in December 2011, added more than 50 percent to the gold resource at the Black Fox Complex. Exploration drilling at the Black Fox Complex is progressing as planned with four drill rigs and an updated resource estimate on the Contact and 147 zones will be released in 2012."

ALSO:

"Brigus Gold Corp's (BRD.TO) first-quarter production touched the top end of its guidance, helped by robust output at its Black Fox mine in Ontario and the gold producer said it expects costs to be lower than its earlier forecast.
 
The company still sees gold production of 77,000 ounces to 85,000 ounces in the year.
Cash costs, which are estimated at $775-$825 per ounce, are likely to drop to about $700 per ounce in 2013, the company said in a statement."
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If this doesn't bump the shares up, I don't know what will. This stock should be trading AT LEAST over $1 a share right now...

I am long BRD.

Huldra Silver - Keep an Eye on this One

Huldra silver is one silver stock that could be in production very soon and is a stock I would keep an eye on for 2012.

From a recent Seeking Alpha article, from author Jordan Roy-Byrne:

"There's one company that we've just begun covering that we really like. We met with management at the Prospectors and Developers Association of Canada (PDAC) conference. It's Huldra Silver Inc. (HUSIF.PK) and is going to be a new high-grade silver producer. It is expecting its final permit in April before it can go into production at its Treasure Mountain property.

 It's very well structured and also tightly held and currently has less than a $45M market cap. Once it gets going, management expects to produce 2 Moz/year. That would be very significant for this new tiny company relative to its market cap. We think there's some good near-term upside with very high leverage to rising silver prices. A move in silver above $40/oz could be a second major catalyst for Huldra Silver. Finally, the cash flow from production will enable the company to invest in developing and expanding the resource at Treasure Mountain while maintaining the share structure."

Share structure

Common Shares Issued & Outstanding	33,689,300
Warrants	9,572,662
Options	2,563,334
Fully Diluted	46,325,485

Huldra is also Chris Marchese's #1 silver stock for 2012. From the Motley Fool blogs: "Huldra Silver - This is a story that been kep under the radar for quite some time but is looking good for at least a 2-3 bagger and perhaps a core holding in ones portfolio."

Finally, according to a Pope and Company Analyst Report, these are the top 3 shareholders of Huldra:
"Management & Board of Directors ~13% Sprott Asset Management    9.6% Coeur D’Alene Mines Corp. (CDE: NYSE) 6.8%"

Very intriguing, indeed! 

I have no position in Huldra, but may initiate a position within the next 72 hours.

Gold Stocks News for Thursday

Lots of news flow today for the juniors.

----

"Sandstorm Gold Announces Proposed Share Consolidation  Vancouver, British Columbia, April 5, 2012 -- Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX-V:SSL) is proposing a consolidation of its issued and outstanding common shares ("the Common Shares") on the basis of one (1) post-consolidation Common Share for up to every five (5) pre-consolidation Common Shares (the "Consolidation"), with the final consolidation ratio to be set by the Company's Board of Directors within the range approved by the shareholders."

Fine with me. The company wants to open up to the US markets and bigger investors. The warrants will not be affected negatively.

------

"Brigus Gold Hits Q1 Production Target
Halifax, Nova Scotia; April 5, 2012 (NYSE Amex: BRD; TSX: BRD) – Brigus Gold Corp. (“Brigus” or the “Company”) is pleased to announce that it produced 16,922 ounces of gold at an average grade of 3.04 grams per tonne (gpt) in the first quarter of 2012 – hitting the top end of its guidance."

*This is also good for Sandstorm! Great job by the team at Brigus to turn this around. Only expect better things on from here.

-----

And finally....

Vancouver, April 5, 2012 – Luna Gold Corp. (TSXV-LGC) (LMA-LGC) (OTCQX-LGCUF) (“Luna” or the “Company”) is pleased to announce its gold production update at the Aurizona Gold Mine for the quarter ended March 31, 2012. 

Aurizona Gold Mine produced a quarterly record in Q1 of approximately 16,000 ounces.

Sandstorm owns a 17 percent stream. Luna Gold is an interesting story as well.

Gold Juniors Will Outperform the Next Leg

 Something amazing has happened from October of 2011 until present day - The Dow has actually been outperforming gold (the HUI, the GDX and the GDXJ, as pictured below). Do not expert this divergence to last long. As you see, the juniors (GDXJ) outperformed all from 2010 to 2011, hitting $44 at one point.

The Dow and the S&P (GSPC) started the divergence early December of 2011. It is in my strong opinion that the GDX and GDXJ are in very oversold territory - both are trading near 52 week lows. And it is in my opinion that the Dow is very overbought!

In the long run, it is not even close...gold has been king.

I also believe that, whether it's in 2 months, 6 months, a year, that gold stocks will start outperforming physical, especially the juniors.

From 2005 to 2008, the GLD and HUI traded virtually side by side...the crash of 2008 changed that and GLD has outperformed since then....

I do expect them to meet again, I just do not know when. I will say this - the miners pay dividends and will most certainly be increasing them in the coming years. The miners are all pretty undervalued at the moment as well. Maybe its when people finally realize this, will the gap start to close. Or maybe when they realize the GLD doesn't really have any gold! I do believe the investment mentality on gold stocks will change, it is only a matter of time. Just keep buying at these insane valuations and buy the dips!

I am long GDX and GDXJ. 

Charts courtesy of Yahoo! Finance

Insider Buy Alert - Brigus Gold

Courtesy of CanadianInsider.com:

I am long BRD.