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Argentines get itchy amid new foreign exchange controls

Section: Daily Dispatches

Argentina Bank Dollar Deposits Fell $645 Million After Forex Controls Implemented

By Taos Turner
Dow Jones Newswires
via The Wall Street Journal
Saturday, November 12, 2011

BUENOS AIRES -- Argentines withdrew $645 million in U.S. dollar-denominated deposits from private-sector banks in the first week after the government made it harder for individuals and companies to buy dollars.

The numbers, published by the Central Bank of Argentina late Friday, seem to confirm that the new currency controls have made Argentines nervous and led many to do what they typically do during times of crisis -- buy dollars or withdraw them from the banking system.

Private sector banks had $14.833 billion in dollar deposits before the currency controls were imposed on Oct. 31, according to the central bank. Five days later that had declined by 4.3% to $14.188 billion.

... Dispatch continues below ...


Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.

-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.

"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

For the company's full press release, please visit:

In the same week, peso deposits rose 4.2%, according to the central bank.

Government officials say the currency controls aim to curb money laundering. But most analysts say the real aim of the crack down on dollar purchases is to stem capital flight that has cut central bank reserves to $46.57 billion from $52 billion in early August.

Economists say the currency controls themselves are now contributing to the drain on central bank reserves. That's because of the way the bank calculates its reserves, which includes a measure of how many dollars are deposited in the country's banking system.

By making it harder to acquire dollars, the government has sparked fears that Argentina's currency, the peso, will lose value quickly, making it even more important to obtain dollars now.

Many people have also become worried that in a worst-case scenario the government might freeze dollar deposits, making it impossible to withdraw them.

Government officials say that's not going to happen. In fact, on Friday the monetary authority made it easier for banks to give out dollars.

But Argentines have seen it happen before in previous crises and many of them simply don't trust the government -- or banks.

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Prophecy Platinum Drills 120.9 Meters
Grading 1.26 g/t PGM+Au at Yukon Wellgreen Project

Company Press Release
Monday, September 26, 2011

VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) has announced the drill results received from its 2011 drilling Wellgreen platinum group elements, nickel, and copper project in the Yukon Territory.

Borehole WS11-188 encountered 457 meters of mineralization grading 0.47% nickel equivalent (including 0.72 grams per ton platinum, paladium, and gold) from surface to the footwall contact. Within this larger swath of mineralization, the hole encountered a high-grade section of 17.8 meters of 3.14 grams per ton platinum, palladium, and gold, 1.03% nickel, and 0.74% copper (1.77% nickel equivalent).

The hole was drilled completely outside of current resource boundaries, between the East Zone resource and the West Zone resource that was reported in the company's press release no July 14, 2011.

The high-grade intercept located between the two resources not only demonstrates that the East and West Zone resource form a single, geologically contiguous body but also indicates that the higher-grade material in the East Zone continues to the west and at depth at Wellgreen.

For drill result tables and maps, please see the company's full press release here: