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Rob Kirby: Fed sells paper gold while buying real metal
8:30p ET Monday, October 4, 2010
Dear Friend of GATA and Gold:
Rob Kirby of Kirby Analytics in Toronto reports tonight that JPMorganChase, acting as always as the agent of the Federal Reserve, is combing the planet for gold production commitments from mines even as the investment house, again as the Fed's agent, keeps selling paper gold. While Kirby's assertion is unsourced rather than documented, it is pretty much cinched by his observation that JPMorganChase could not hold its fantastic position in interest rate derivatives if it was not the Fed's agent in controlling both interest rates and the gold price. Of course the relationship between interest rates and gold, long documented by GATA, is the point of the gold price suppression scheme. Kirby's commentary is headlined "The Federal Reserve Is Selling Paper Gold and Buying Physical Gold" and you can find it at GoldSeek here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.
Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit: