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EXPLORAÇÃO DE OURO IGNORA CRISE (Brazil)

Posted by Gilmour Poincaree on January 1, 2009

01/01/2009

Cruzeiro On Line

PUBLISHED BY ‘JORNAL CRUZEIRO DO SUL’ (Brazil)

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PUBLISHED BY ‘JORNAL CRUZEIRO DO SUL’ (Brazil)

Posted in AS INDÚSTRIAS DE MINERAÇÃO, BRASIL, COMMODITIES MARKET, ECONOMIA - BRASIL, ECONOMIC CONJUNCTURE, ECONOMY, EXPANSÃO ECONÔMICA, EXPANSÃO INDUSTRIAL, FINANCIAL CRISIS 2008/2009, FLUXO DE CAPITAIS, GOLD, INDÚSTRIAS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, MINING INDUSTRIES, MINISTÉRIO DAS MINAS E ENERGIA, RECESSION, STOCK MARKETS, THE FLOW OF INVESTMENTS | Leave a Comment »

EURO UP AGAINST DOLLAR, BUT SET FOR FULL-YEAR FALL – EURO GAINS BUT SET FOR FIRST YEARLY DROP SINCE 2005 – DOLLAR SEEN ON SHAKY FOOTING HEADING INTO 2009 – POUND DOWN 27 PCT VS DLR, WORST SINCE GOLD STANDARD ENDED

Posted by Gilmour Poincaree on December 31, 2008

Wednesday December 31 2008

Reuters

PUBLISHED BY ‘THE GUARDIAN’ (USA)

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PUBLISHED BY ‘THE GUARDIAN’ (USA)

Posted in AUSTRALIA, BANKING SYSTEM - USA, BANKRUPTCIES - USA, CURRENCIES, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, EURO, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, HOUSING CRISIS - USA, INTERNATIONAL, RECESSION, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, USA | Leave a Comment »

GOLD FIELDS ‘TO MEET SECOND-QUARTER TARGET’ AS PRODUCTION INCREASES (South Africa)

Posted by Gilmour Poincaree on December 24, 2008

24 December 2008

by Nicola Mawson

PUBLISHED BY ‘BUSINESS DAY’ (South Africa)

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PUBLISHED BY ‘BUSINESS DAY’ (South Africa)

Posted in COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, MINING INDUSTRIES, RECESSION, SOUTH AFRICA, THE FLOW OF INVESTMENTS | Leave a Comment »

GOLD ENDS 4-DAY RALLY AS BUYERS TURN TO STOCKS

Posted by Gilmour Poincaree on December 20, 2008

20 Dec 2008, 0112 hrs IST, ET Bureau

THE ECONOMIC TIMES

PUBLISHED BY ‘THE ECONOMIC TIMES’ (India)

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PUBLISHED BY ‘THE ECONOMIC TIMES’ (India)

Posted in COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, GOLD, INDIA, INTERNATIONAL, RECESSION, STOCK MARKETS, THE FLOW OF INVESTMENTS | Leave a Comment »

DOLLAR LOWER, GOLD FALLS IN EUROPEAN AFTERNOON TRADING

Posted by Gilmour Poincaree on December 16, 2008

December 15, 2008 – 11:10 AM

Associated Press

PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

LONDON – The U.S. dollar was lower against other major currencies in European trading Monday afternoon. Gold fell.

The euro traded at $1.3650, up from $1.3371 late Friday in New York.

Other dollar rates:

_ 90.67 Japanese yen, down from 91.12

_ 1.1599 Swiss francs, down from 1.1767

_ 1.2341 Canadian dollars, down from 1.2432

The British pound was quoted at $1.5303, up from $1.4969.

Gold traded in London at $826.00 per troy ounce, down from $826.50 late Friday.

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PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

Posted in CANADA, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, EURO, EUROPE, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INTERNATIONAL, POUND (Britain), RECESSION, SWITZERLAND, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, UNITED KINGDOM, USA | Leave a Comment »

RESOURCE COUNTERS HELP SEND STOCKS TO FIVE-WEEK HIGH (South Africa)

Posted by Gilmour Poincaree on December 10, 2008

December 10, 2008

Reuters and Bloomberg

PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Johannesburg – Stocks climbed to a five-week high yesterday buoyed by firmer mining shares.

The Top40 index rose 5.28 percent to 19 986.66 points on Wednesday, while the broader all share index climbed 4.67 percent to 21 930.94 points, levels last seen on November 5.

Gideon Muller, a trader at Thebe Securities said: “Commodity prices are picking up our market [such as] your mining houses and platinum shares.”

BHP Billiton rose 11.48 percent to R188.95 and rival Anglo American gained 7.71 percent to R230.50.

AngloGold Ashanti rose 11.08 percent to R271.

Anglo Platinum increased 8.92 percent to R455 and Impala Platinum advanced 2.5 percent to R121 after platinum prices firmed.

Pallinghurst Resources fell 2.25 percent to R4.35. The company and the Bakgatla Ba Kgafela tribe would invest $175 million (R1.8 billion) in Platmin to allow the company to fund the construction of its Pilanesberg platinum mine in the North West.

Sasol climbed 7.01 percent to close at R299.63.

Kumba Iron Ore slipped 3.7 percent to R157, the biggest decline since November 28. The iron ore producer plans to proceed with an R8.5 billion expansion as its competitors slash output.

Banking stocks, which are sensitive to interest rate moves started to march higher after a report showed retail sales slumped for a sixth month, raising speculation the central bank will cut rates today.

African Bank Investments Limited rose 6.11 percent to R28.12 and Standard Bank ticked up 1.09 percent to R83.49.

Garth Mackenzie, the head of derivatives trading at BoE Stockbrokers, said:

“The stimulus packages continue to boost growth expectations. “We are also seeing quite big gains in the local retailers ahead of the interest rate announcement.”

MTN surged 7.7 percent to R102.99. JD Group increased 8.7 percent to R33.95.

Tiger Brands rallied 3.5 percent, to R147.

Simeka Business Solutions added 7.7 percent to 42c, rising for the first time in six days. The information technology company said first-half earnings a share advanced as much as 40 percent.

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PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Posted in BANKING SYSTEMS, COMMERCE, COMMODITIES MARKET, COPPER, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, IRON ORE, METALS, MINING INDUSTRIES, PLATINUM, PRECIOUS METALS, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, SOUTH AFRICA, STOCK MARKETS, THE FLOW OF INVESTMENTS | Leave a Comment »

CHINA AND IRAN SWITCH TO GOLD

Posted by Gilmour Poincaree on November 24, 2008

November 24, 2008 – 6:17 am

by daily.pk

Gold rallied sharply Thursday, and is rallying again at the time of this writing on Friday — it’s now Assistant to the President of SINOPEC Group, Zhou Baixiu (2nd L), and Iran's Deputy Oil Minister in charge of International affairs, Hossein Noghrehkar Shirazi (4th L), exchange the agreement protocols during an official ceremony in Tehran December 9, 2007 - Agencies
broken above the significant resistance range of 740-750, and is currently testing the $800 level. While the technical outlook on the daily chart still looks a bit bearish for gold, some major fundamental news of late suggests the bull market may be ready to resume.

Consider:

– Iran recently switched to gold reserves.

– China is massively increasing its gold reserves.

– Perth mint, one of the most prominent gold mints in Australia, has suspended orders.

– Prominent investment strategist John Embry has warned that December delivery contracts of gold may fail — this would expose gold scarcity and send prices upwards.

The China and Iran situation is particularly interesting; their decision to switch to gold reserves suggests a reluctance to hold US dollars and US Treasuries. This would increase the likelihood that deficit spending would prove to be inflationary, as it would need to be paid for via an expansion of the money supply. Moreover, while it is probably too early to say for sure, this could be the beginning of the world market making a run on the US dollar, a scenario which many dollar bears, most notably Peter Schiff, have come to expect in light of the rising deficit spending and the very weak fundamentals underlying the US economy.

I have viewed gold as a key element of any long-term portfolio, and continue to do so.

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PUBLISHED BY ‘PAK ALERT PRESS’ (Pakistan)

Posted in CENTRAL BANKS, CHINA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FOREIGN POLICIES, GOLD, INTERNATIONAL, INTERNATIONAL RELATIONS, IRAN, MACROECONOMY, RECESSION, THE FLOW OF INVESTMENTS | 4 Comments »

WALL STREET CAST ITS VOTE FOR NEW YORK FEDERAL RESERVE PRESIDENT TIMOTHY GEITHNER FOR TREASURY SECRETARY, RALLYING IN HIS FAVOUR

Posted by Gilmour Poincaree on November 22, 2008

November 22, 2008

LATEST: Rob Curran

Article from: Dow Jones Newswires

The Dow Jones Industrial Average surged nearly 500 points in the last hour of trading after reports Reutersthat president-elect Barrack Obama would name Mr Geithner to the top Treasury post.

Buyers became energised after a report by NBC News that Mr Obama will personally unveil Mr Geithner as the incoming Treasury boss at a news conference on Monday, along with other members of his economic team.

The report by NBC’s Andrea Mitchell, who is married to former Fed chairman Alan Greenspan, cheered depressed investors, even though there was no immediate confirmation.

“The market is running up on the news that Timothy Geithner will be the next treasury secretary,” said Peter Cardillo of Avalon Partners.

“Maybe it can bring confidence back.”

Yet the Dow still lost more than 5 per cent on the week, as Citigroup plunged to levels not seen in 15 years and traders worried about the survival of General Motors and Ford.

Mr Geithner, 47, is intimately familiar with Wall Street and worked on recent rescue efforts for the financial system. Those rescue efforts are a work in progress, however.

Citigroup fell US94 cents, or 20 per cent, to $US3.77, taking its losses to 60 per cent for the week and 72 per cent for November as the bank scrambles to review strategic options.

Selling of Citi’s shares grew heavier after chief executive Vikram Pandit said he had no desire to sell the Smith Barney brokerage unit. The stock’s close was the lowest for Citi since the last day of 1992; it has lost more than $US53.8 billion ($67.7 billion) in market value in November.

“It’s mind-boggling,” said Bud Haslett, chief executive of Miller Tabak Capital Management.

Traders say the Treasury Department’s decision last week not to buy distressed assets abruptly changed the outlook for banks.

“The change in the direction of the Troubled Asset Relief Program was the major thing” weighing on financials, said Peter McCorry, senior equity trader at Keefe Bruyette & Woods. “Changing the rules of the TARP is an indication that the rules can and will change mid-game.”

The Dow rose 494.13 points, or 6.54 per cent, to 8046.42, its biggest gain in more than a week.

The broad S&P 500 index rose 47.59 points, or 6.32 per cent, to 800.03, a day after closing at its lowest mark since 1997. The tech-oriented Nasdaq Composite added 68.23 points, or 5.18 per cent, to 1384.35. For the week, the Dow lost 5.3 per cent, the S&P 500 lost 8.4 per cent and the Nasdaq was down 8.7 per cent – and all three had their biggest drops in four weeks.

In response to Wall Street, the Sydney Futures Exchange’s December share price index futures contract jumped 68 points to 3500, representing an 83.5-point premium to the benchmark S&P/ASX 200 Index and suggesting a solid start to the Australian market on Monday.

The Australian dollar settled offshore trading at just above US63 cents.

In the most volatile Wall Street market since the 1930s, traders say it takes little to push the market in one direction or another.

“We’re dealing with a lot of redemptions,” said one manager at a fund of funds, indicating that forced selling due to clients’ requests for cash is ongoing.

Goldman Sachs Group rose $US1.31, or 2.5 per cent, to $US53.31, finishing the week with a loss of 20 per cent. Morgan Stanley rose US85c, or 9.2 per cent, to $US10.05, but declined 16 per cent on the week.

The model of Wall Street banks is under strain as investments across all asset classes turn sour, and trading with leverage goes out of style.

KeyCorp fell US64c, or 9.3 per cent, to $US6.27 after the regional bank slashed its dividend.

Dell shed US51c, or 5.2 per cent, to 9.30. Third-quarter profit exceeded the Wall Street estimate, helped by cost cuts, but revenue fell to $US15.16 billion from $US15.65 billion a year earlier.

The shopping season begins in force next week, and traders will see if consumer-spending fears are justified. The Consumer Select Discretionary SPDR, a basket of retailers and other consumer stocks, rose $US1.12, or 6.9 per cent, to $US17.45, but fell 9 per cent this week, just one of many wild swings.

Gold mining companies surged as a wave of “deflation” fears receded for now.

Gold is used as a safe haven, but also a hedge against inflation, a market worry that was replaced by deflation lately. Newmont Mining added $US5.79, or 25 per cent, to $US28.79, but has fallen by almost half since its peak.

In Europe, the London FTSE 100 index fell 2.43 per cent to 3780.96 points — its lowest closing level since April 3, 2003, capping an overall fall of 10.68 per cent for the week.

In Paris, the CAC 40 plunged 3.33 per cent and in Frankfurt the DAX shed 2.20 per cent, with banks Allianz and Deutsche Bank among the heavy losers.

“Although this morning saw a slight rally for the UK market, the afternoon has seen these gains eroded with the market nose diving,” said David Jones, a strategist at IG Index in London.

“Sentiment this week has turned even gloomier than we have been used to of late.”

Additional reporting by AFP and staff writers

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PUBLISHED BY ‘THE AUSTRALIAN’ (UK)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, CENTRAL BANKS, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ENGLAND, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FRANCE, GERMANY, GOLD, INFLATION, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, STOCK MARKETS, THE FLOW OF INVESTMENTS, USA | Leave a Comment »

PAN AMERICAN SILVER CUTS 500 JOBS (Canada)

Posted by Gilmour Poincaree on November 14, 2008

November 13, 2008 at 9:21 AM EST

The Canadian Press

VANCOUVER — Pan American Silver Corp. is cutting 500 jobs, rolling back executive salaries by 10 per Silver and gold jewels and other itemscent and reducing exploration and capital spending to deal with weaker finances and a drop in prices of silver and zinc, its key metals.

The Vancouver company said Thursday the streamlining was required to cope with weaker metals prices, a 10 per cent drop in revenues and sharply lower profits in the latest quarter.

“These are challenging times for the global mining industry,” president and CEO Geoff Burns said in a release.

“We have responded by retooling our business plans to reduce costs and adjust to the new pricing environment. We have managed our business conservatively over the past couple of years and enter this difficult period in solid financial health, with no debt and with the skills and the experience to adapt and thrive without compromising our growth.

“There are many reasons to be optimistic about future silver and gold prices. Government bailouts and debts worldwide have reached epic proportions and will, in my opinion, eventually undermine the very value of the paper currencies and the economies those same governments were charged with protecting. This should benefit gold and silver prices and Pan American Silver.”

In its financial report, Pan American said its net earnings for the third quarter ended Sept. 30 fell to $6.4-million (U.S.) or eight cents a share, from $23.9-million, or 31 cents a share for the same 2007 period.

Sales fell 10 per cent to $79.5-million, said the company, which reports its finances in U.S. dollars.

Pan American has seven operating mines in Mexico, Peru and Bolivia. An eighth mine in Argentina is scheduled to start up this month.

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PUBLISHED BY ‘THE GLOBE AND MAIL’

Posted in ARGENTINA, BOLIVIA, CANADA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, GOLD, INTERNATIONAL, METALS, MEXICO, NORTH AMERICA, PERU, PRECIOUS METALS, SILVER, THE FLOW OF INVESTMENTS, ZINC | Leave a Comment »

CARPATHIAN DRILLING INTERSECTS 8 M OF 6.95 G/T AU ON THE RDM GOLD PROJECT, BRAZIL

Posted by Gilmour Poincaree on November 13, 2008

November 4, 2008

Carpathian Gold Inc. (CPN:TSX) (the “Corporation” or “Carpathian”) is pleased to announce initial drill In this undated handout file photo from Newmont Mining Corporation, gold nuggets and bars are shownresults from the 100% owned Riacho Dos Machados gold project (”RDM”) located in Minas Gerais State, Brazil. The RDM gold project is a 22,000 hectare land parcel comprised of 12 Exploration Licenses and one Mining Concession that covers a 20 kilometre long north-south shear zone. The Mining Concession hosts a past producing open-pit gold mine, which was previously operated by Companhia Vale do Rio Doce (”Vale”) between 1986 and 1997 from which oxide gold ore was mined to maximum depths of 60 m below the surface. Carpathian believes the RDM project can be quickly advanced by upgrading the previous work through drilling on the property in order to complete a NI-43-101 compliant resource estimate, which would be followed by a preliminary economic assessment and feasibility studies. Three diamond drill rigs have been active on the Mining Concession and approximately 10,300 m of drilling has been completed from 58 diamond drill holes. The drill program has been concentrated in the area of the previous open-pit operation along the known 1,350 m long gold zone and down to a vertical depth of approximately 200 m below the existing open-pit. In addition, the drill program also evaluated the possible northern and southern extension of this gold zone by an additional 500 m in each direction. Along with this drill program, 22 diamond drill holes from the drilling completed on the property by Vale have also been re-sampled and re-logged. The primary objective of this program was to obtain sufficient drill data to validate previous drill results, extend the gold zone along strike and define sufficient mineralization at an open-pit gold grade to justify deepening the current open-pit by approximately 200 m. Drill results from the current program have encountered the gold mineralization where anticipated, including in the southern strike extension. The assay results received to date support the previous grades and thickness as defined by Vale, but have also encountered areas of higher grades and thickness; such as drill hole FRM 19 which intersected 8 m of 6.95 g/t Au. While a number of sample assay results are still outstanding, some of the highlight assay intersections received to date are listed below. All of these results represent the portion of the mineralized zone that is considered to be accessible through the deepening of the open-pit. A complete list of the assay results can be found at the end of this press release. A map showing the location of the drill holes completed can be found on the Corporation’s website at http://www.carpathiangold.com.

“With the announcement last week of the completion of the RDM acquisition, the Corporation can begin to recognize the additive value of this new and complementary exploration/development platform”, said Dino Titaro, President and CEO. “The early drill results indicate that the RDM project is meeting our expectations and that the gold grades and thicknesses encountered to date support the vision of deepening the open-pit, and the potential of a future underground operation, and that the mineralization is in fact continuous along strike and now extends almost 2 km in length. Given that the project already lies within a Brownfield permitted Mining Concession with infrastructure in place, we believe an early-production profile can potentially be realized.” The gold mineralization at RDM is shear zone hosted, within a package of Precambrian aged metamorphic rocks. This shear zone strikes 20 degrees and dips 40 to 50 degrees west. The gold mineralization is known to be continuous over a strike length of 1,350 m and open at depth to greater than 550 m at the RDM mine-site. The current drilling program has demonstrated that this mineralization is now continuous for a strike length of at least 2,000 m. Within the shear zone, which can reach thicknesses of up to 40 m, the gold mineralization often occurs as ’stacked’ mineral zones with cumulative thicknesses in the order of 15 to 20 m. Examples include drill hole intersections such as FRM 20 from Area V where the overall thickness of the shear zone is 33.9 m which includes 3 distinct gold mineralized zones totaling 15.6 m at a weighted average of 3.45 g/t Au. In drill hole F 2 (Area III) the overall thickness of the shear zone is 35.0 m which also includes 3 distinct Au-mineralized zones totaling 23.0 m thick at weighted average of 1.82 g/t Au. These stacked mineralized intersections all occur within the area being tested for purposes of deepening the existing open-pit. On the Mining Concession, Vale had previously defined a resource in the sulphide zone below the open-pit, of 3.77 Mt at 4.61 g/t Au for approximately 560,000 ounces of gold. This resource is non 43-101 compliant and is based on diamond drill programs and underground development and sampling along 1,350 m of the shear zone down to a vertical depth of approximately 550 m (see NI 43-101 Technical Report on the property dated February 29, 2008 and filed on http://www.sedar.com). Carpathian’s current work program on the property has been designed to: 1) validate the historical resource; 2) evaluate the possibility of expanding the mineralized zone along strike and thus the overall resource potential; 3) define sufficient gold mineralization at a high enough gold grade to justify deepening the current open-pit by approximately 200 m as well as expanding it on strike; 4) define the size and tenor of the gold mineralization below the open-pit expansion for a potential underground operation down to a vertical depth of at least 500 m; 5) obtain samples for further metallurgical test work; 6) complete a NI 43-101 compliant resource estimate based on the historical drill results and Carpathians’ drill results; 7) simultaneously work on environmental and social programs, and; obtain sufficient information to complete a Preliminary Economic Assessment on the project. The drill program on the property has been temporarily suspended for resource model development and further re-sampling and logging of the Vale drill core.Sample Protocol

All samples collected from Brazil are prepared and analyzed at the independent ISO Certified ALS Chemex laboratory, located near Belo Horizonte, Brazil using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Coarse blanks, pulp blanks, pulp duplicates, and known gold standards are inserted on a routine basis. They consist of 12% per cent of submitted samples. In addition, on a periodic basis 3% of the crusher rejects are re-submitted and a minimum of 3% of the pulps will be analyzed at the ISO Certified OMAC Laboratory in Ireland for check assays. All samples are from split NQ drill core sampled on a metre by metre basis through the mineralized zone and into surrounding altered rock. Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.

The Corporation is a mineral exploration company focused on gold exploration primarily on its property in Romania as well as gold exploration and development on its development-stage property in Brazil. The Corporation has 207,278,454 shares outstanding.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Forward-Looking Statements: This press release includes certain statements that may be deemed “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, and other similar words, or statements that certain events or conditions “may” or “will” occur. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

For further information: Dino Titaro, President & CEO, Or Mike O’Brien,
Manager Investor Relations, (416) 368-7744 (CAN), Fax.: (416) 260-2243 (CAN),
info@carpathiangold.com, www.carpathiangold.com; Eric Leboeuf, Investor Relations, Montreal, (514) 341-0408, 1-866-460-0408, Fax.: (514) 341-1527,
ericleboeuf@paradox-pr.ca; Toni Vallen, Seton Services, UK, +44 207 229 3177,
toni@setonservices.com; Renmark Financial Communications Inc., Jeffery Szita:
jszita@renmarkfinancial.com; Ryan Van de Polder: rvandepolder@renmarkfinancial.com; (416) 644-2020, Fax: (416) 644-2021,
www.renmarkfinancial.com

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PUBLISHED BY ‘NEWSWIRE – Canada’

Posted in AS INDÚSTRIAS DE MINERAÇÃO, BRASIL, COMMODITIES MARKET, ECONOMIA - BRASIL, EXPANSÃO ECONÔMICA, EXPANSÃO INDUSTRIAL, FLUXO DE CAPITAIS, GOLD, INDÚSTRIAS, PRECIOUS METALS | Leave a Comment »

GOLD JUMPS 4% ON CHINA’S BAILOUT PACKAGE

Posted by Gilmour Poincaree on November 11, 2008

11 Nov 2008, 0155 hrs IST, REUTERS

LONDON: Gold rose more than 4% on Monday as dollar weakness and sharp gains across commodities Photo - WN - Periasamysharpened appetite for the precious metal, but retreated from highs as the dollar recovered some lost ground against the euro. A near $600-bn economic stimulus package announced by China on Sunday helped allay risk aversion and fuelled gains in equities as well as oil and base metals, carrying gold higher.

In London, spot gold touched an intraday peak of $767.80 an ounce, before easing back to $751.10/753.10 by 21:30 pm IST, against $735.95 in New York on Friday. US December gold futures rose more than 2% and were trading at $751.30, up $17.10.

In Mumbai, a major gold hub in India, the price of yellow metal hardened further on the back of stockists’ buying, supported by a rally in international markets. Standard and pure gold rose by Rs 70 and Rs 80 to Rs 11,785 and Rs 11,850 per 10 gm, respectively.

“The weakness in the US dollar… and the rise in crude oil and industrial metals reflect the announcement made by Chinese government on Sunday for a stimulus package of roughly $568 bn,” said Dresdner Kleinwort consultant Peter Fertig. “

This should spur investment in housing and infrastructure in the next two years, which will (lead to) stronger demand for energy and base metals. This is also a supportive factor for gold.”

China launched its stimulus plan on Sunday, pledging nearly $600 bn in extra spending by the end of 2010. Base metals jumped in response to the plan, with copper surging nearly 10%, nickel 13% and zinc around 7% following the news. All the metals have lost substantial ground in recent months.

At a G-20 meeting in Brazil, finance ministers and central bankers representing 90% of the world’s economy said they will take “all necessary measures” to normalise the financial markets and counter the backlash to the credit crisis.

The dollar weakened against the euro as risk appetite improved. A recovery in the stock markets prompted investors to move into higher-yielding currencies such as the euro and the yen.

A softer dollar tends to benefit gold, which is often bought as a hedge against weakness in the US currency. The currency’s recovery from lows against the euro later led gold to pare gains. Among other precious metals, silver tracked gold higher to a peak of $10.51 an ounce, up 5%, before settling back to $10.29/10.39 an ounce from $9.99.

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PUBLISHED BY ‘THE ECONOMIC TIMES’ (India)

Posted in ASIA, CENTRAL BANKS, CHINA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, GOLD, INTERNATIONAL, PRECIOUS METALS | Leave a Comment »

GOLD UNEXPECTEDLY NOT SHINING AS AN INVESTMENT – Hedge funds dumping mineral to raise cash is keeping the price down

Posted by Gilmour Poincaree on November 4, 2008

Updated 5:26 p.m. ET Nov. 3, 2008

NEW YORK – For years, investors known as gold bugs snapped up the metal and socked it away, betting that a colossal economic crisis would one day slam financial markets and send gold prices through the roof.

For many investors, that grim scenario is in full swing, except for one thing: After briefly hitting $1,000 an ounce for the first time in March, gold has fallen into a rut and shows no sign of budging anytime soon.

Gold’s failure to flourish despite broad financial carnage has disappointed many of the metal’s champions. Others say it’s simply in a lull and is ripe for another big surge. But most gold buyers agree that the metal’s lackluster performance lately has been surprising.

“It’s been a puzzle for most of us,” said Geoff Farnham of Venice, Calif. who inherited some gold holdings and recently began buying gold coins as “insurance.”

“In hard times, gold is a good thing to have,” the retired software developer said. “Knowing that there aren’t a lot of gold coins out there to buy, seeing the price continue to drop has been curious.”

It’s also been punishing for investment portfolios. Since soaring to an all-time high of $1,033.39 an ounce on March 17, gold has plummeted 30 percent. Gold for December delivery on Monday rose $8.60 to settle at $726.80 — roughly the same level where it traded a year ago.

So what happened? As the financial crisis pummels financial markets around the globe, hedge funds and other large investors who drove gold to dizzying heights earlier this year are now racing to unwind those positions to raise cash and cover huge losses. The massive deleveraging has pounded other commodities from crude oil to corn to copper.

“Gold is being pulled down by indiscriminate selling of virtually every asset,” said Jeffrey Nichols, managing director at New York-based American Precious Metals Advisors. “You could call it collateral damage.”

Instead of gold, investors are pouring money into the newest safe-haven asset: cash. That has pushed the dollar to multiyear highs against the euro and the pound, hurting demand for gold among investors who buy the metal as a safe-haven against inflation.

With economists now warning that a world economic slowdown could bring about deflation, or a sustained period of falling prices, gold analysts say it’s unclear how the metal will respond.

“Gold hasn’t been tested in a true deflationary crisis so we don’t what will happen to prices,” said Jon Nadler, precious metals analyst with Kitco Bullion Dealers Montreal.

Another question is whether demand for gold jewelry and luxury items will pick back up, which could boost prices. The holiday season is traditionally the busiest season for gold buying in the U.S., Asia and elsewhere, but analysts expect the global economic slowdown to hurt sales.

“It doesn’t look like it will be a good Christmas for jewelers,” Nadler said. “When you don’t have a job and bonuses and Christmas parties are being canceled, the mindset is toward frugality and gold takes a hit from that.”

Still, not everyone is selling gold.

Mark Albarian, CEO of Goldline International, Inc., a Santa Monica, Calif.-based gold dealer, said sales at his firm tripled in October compared to August — a sign that individual investors aren’t joining hedge funds in the rush to sell gold.

“Our clients overall seem to be very happy with their gold,” Albarian said, noting that gold is still outperforming most assets. “Gold may be back down to where it was last year. But our houses have dropped 10 to 30 percent during that time and stocks are way down. So gold has held up rather well.”

Looking ahead, some gold watchers are betting for another big climb. They argue the dollar’s recent rally can’t last as long as the government has to pay for a string of mammoth financial bailouts by either printing money or raising taxes — both inflationary weights that should weigh on the greenback and be bullish for gold.

“Fundamentals will re-establish themselves as the driver of the gold market, and we believe we’ll see $1,250 gold during this period,” Donald Doyle, chairman and CEO of New Orleans-based precious metals dealer Blanchard and Co., said in statement Monday.

In the meantime, Farnham said he’s hanging on to his gold. He said he’s hopeful the economy will improve and he won’t need to cash in his insurance, but with all the uncertainty, he’s not ruling out that he might have to.

“I think a lot of it will depend on world events,” he said, citing conflicts in the Middle East and threats to world resources like oil. “There’s potential for a lot of crisis out there, and crisis drives up gold.”

At least, that’s the theory.

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PUBLISHED BY ‘MSNBC’

Posted in COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INTERNATIONAL, PRECIOUS METALS, THE FLOW OF INVESTMENTS | Leave a Comment »