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Henry Smyth: The recent history of the future of gold
2:05p ET Sunday, August 15, 2010
Dear Friend of GATA and Gold:
Demand for gold has been building markedly for five years, causing the rise of gold's price chart to steepen as the markets restore gold to its traditional role as money, Granville Cooper gold fund manager Henry Smyth writes in a report published last week. Gold buying pressure, Smyth remarks, "is global and now includes every investment player, from central banks to individuals. This buying pressure spans the paper gold markets as well as the physical markets, from the forward, futures, and derivatives markets in New York and London to the gold loops, chains, and bars sold in the bazaars of Dubai, Mumbai and Shanghai."
Smyth concludes: "Some have called for an official revaluation of gold by central banks to alleviate the strain in the global credit markets. I say gold's revaluation has been under way for 10 years through the collective decisions of millions of individuals across every time zone. This will produce profound changes in the geofinancial landscape in ways very few can imagine."
Smyth's report has a couple of interesting charts, is headlined "The Recent History of the Future of Gold," and can be found at the Granville Cooper Internet site here:
Smyth was interviewed about his report last week by TheStreet.com's Alix Steel for Kitco News and you can watch it at the Granville Cooper Internet site 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: