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Gold needn't fear rising rates, Macleod says; and Calandra on a Russian play
11:18a PT Sunday, February 12, 2012
Dear Friend of GATA and Gold:
Economist and former banker Alasdair Macleod's new essay at GoldMoney, "Katastrophenhausse," anticipates from monetary debasement the "crack-up boom" the economist Ludwig von Mises warned against, and he adds that if interest rates finally are allowed to rise again, they "will only bankrupt insolvent governments and other borrowers, and the interest costs would end up being covered by the creation of yet more fiat money." Macleod concludes that "the important point for owners of gold and silver is that rising interest rates should drive prices higher, and not suppress them as commentators might expect." His commentary is posted at GoldMoney here:
http://www.goldmoney.com/gold-research/alasdair-macleod/katastrophenhaus...
Meanwhile financial writer Thom Calandra, who is speaking at Cambridge Conference's California Investment Conference this weekend along with GATA's delegation, writes today at the Cambridge House blog about a big and hugely speculative mining prospect in the wilderness of the Russian Far East. Calandra's commentary is headlined "Eastern Russia's Kekura Unfolds" and it's posted at the Cambridge House blog here:
http://blog.cambridgehouse.com/2012/02/11/eastern-russias-kekura-unfolds...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Prophecy Coal (TSX: PCY) Wins Positive Feasibility Study
for the 600-MW Chandgana Power Plant in Mongolia
Company Press Release
January 17, 2012
VANCOUVER, British Columbia, Canada -- Prophecy Coal Corp. (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2) has received a positive feasibility study for the company's 600-megawatt Chandgana Mine-Mouth Power Project in central Mongolia. The report was independently prepared by Ralf Thomsen, project manager at Steag, a German firm specializing in the planning, financing, construction, and operation of highly efficient thermal power plants for fossil fuels.
The study covers technical specifications, deployment, and financial analysis of a 4x150-mw thermal power plant to be built adjacent to Prophecy's Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal. Last year the power plant received a construction license and the coal deposit received a mining license. Engineering, procurement, and construction management selection and project financing discussion have begun and are expected to be concluded this year.
Construction is planned to start in April 2013, with the first 150-mw unit being commissioned in October 2015 and subsequent units to start in April 2016, October 2016, and April 2017. With proper maintenance the project will have 30 years of commercial operation.
For the complete statement from the company, including maps and charts, please visit:
http://www.prophecycoal.com/news_2011_jan17_prophecy_receives_power_plan...
Join GATA here:
California Investment Conference
Saturday-Sunday, February 11-12, 2012
Hyatt Grand Champions Resort
Indian Wells, California, USA
http://cambridgehouse.com/conference-details/california-investment-confe...
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Sona Discovers Potential High-Grade Gold Mineralization
at Blackdome in British Columbia -- 13.6g over 1.5 Meters
From a Company Press Release
November 22, 2011
VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling.
"We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company."
Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered.
For the company's complete press release, please visit:
http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
