Why Sprott Resource Corp. Sold $76M in Bullion
Gold Seek
Private equity firm Sprott Resource Corp. recently sold off nearly $76 million in gold bullion, but don't count the firm out of precious metals yet. What is the firm shopping for with its new-found cash? In this interview with The Mining Report, new
Steve Yuzpe and Maria Smirnova: Why Sprott ResourceJutia Group

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The Pentagon just released an encouraging report that says that The West is making progress in breaking the Chinese Monopoly on heavy rare earths.  The U.S. Department of Defense is hoping to build a domestic rare earth supply chain that can provide the rare earths for the military and industrial sector.  Prices are basing indicating that the market believes that additional supplies of rare earths will come online.  These critical rare earths are important for some of the top soaring stocks such as Apple, Tesla, Vestas, Raytheon, GM and Boeing.

It is time for our subscribers to closely watch the rare earth sector as the U.S. flies B-52 bombers into disputed zones with China.  Escalating tensions may have major implications on the price of rare earth oxides in the West.  China controls 99% of heavy rare earth production which is critical for the West’s latest military technologies.

The dispute is over islands in the East China Sea which is owned by Japan.  China and Japan have been seeing rising escalations for several years which has caused major spikes in rare earth prices as the West feels China’s chokehold on these critical high tech elements.

The Chinese-Japanese tensions are rising which could trigger a spike in rare earth prices as China cuts back exports.  Over the past two decades China has monopolized a group of metals that is critical in the latest military technologies such as stealth helicopters and guided missiles.  China just announced that they will cut back on heavy rare earth exports in 2014.

Watch Ucore Rare Metals (UURAF) which controls the heavy rare earth Bokan Deposit in Alaska.  The company has made many technical advancements in 2013 on the highest grade heavy rare earth deposit in the United States.  They are working closely with the U.S. Department of Defense to advance this project.  I have been to the property in 2011 and seen the tens of millions of dollars of work that has advanced this asset to the feasibility stage.

Ucore Rare Metals (UCU.V or UURAF) has made several accomplishments during a very difficult resource market in 2013.  Ucore published a Preliminary Economic Assessment (PEA) earlier this year which showed attractive economics despite lower rare earth prices.  The company is confident that the strategic heavies are beginning to turn higher and demand will grow over time.  The PEA showed a lower Capex and shorter timeline to get into production versus many of their peers.

In addition, the Alaska State Legislature voted unanimously to move Ucore’s Bokan Project ahead.  The State of Alaska has the financial strength to help advance this project.  Look for funding developments from the State in the near future as they are very supportive of this project.  Ucore is using state of the art mining technologies  to improve mining efficiency and economics.  Ucore has recently submitted its Plan of Operations and received permits to place a mining camp on Bokan and allow infield drilling, condemnation drilling and other mining activities.

Recently, Ucore announced a significant resource update which was the result of $12 million worth of expenditures.  They also added a new board member who has significant financial and legal expertise. We may see tax loss selling this December and Ucore may hit four year lows as investors look to take losses.  It may be prudent to use this as a discount opportunity to purchase shares at multi-year lows.

I expect a major move higher as the dispute with China escalates in 2014.  Despite all these major technical advancements in Ucore, investors like you and me can pick up arguably the most important and highest grade U.S. heavy rare earth deposit for a fraction of what is was worth in 2011 at four year lows.

The increasing tension between The West represented by Japan and China is increasing over the supply of critical rare earths and minerals.  It has become such a crisis that the U.S. Department of Defense is assisting with the metallurgy for this small rare earth junioIr in Alaska who controls the highest grade heavy rare earth asset in the United States.  The focus is on advancing the asset to production as the Department of Defense published a report in 2012, which said the heavy rare earths were vital for the success of our military.  United States technology and military equipment can’t risk not having a secure supply.

Currently the U.S. is dependent on many imported minerals despite having a domestic abundance.  For many years I told you to look for strong interest from the U.S. government to advance a domestic heavy rare earth mine which can provide the material for stealth aircrafts and cruise missiles.  The U.S. and Japan can not rely just on China.  At any moment they can shut the exports and play hard ball.  The West better have a backup plan which is stockpiling the metal and at the same time advancing potential heavy rare earth assets into production.

Listen to my recent interview with Ucore CEO Jim Mckenzie below. We discuss all the major advancements in 2013.

 

For more information on Ucore contact Mr. Jim McKenzie, President and Chief Executive Officer at: (902) 482-5214.

Disclosure: Jeb Handwerger owns UURAF and the company is a sponsor on my website.

 


ETF Trends
Gold Funds See Unprecedented 31% Slump With World Losing Faith
Bloomberg
ETP investments reached a record $148 billion last year, helping sustain the bull market that drove a more than sixfold increase in prices since 2001 by offering a way to own bullion without needing to store it. The slump shows some investors losing
Gold funds see unprecedented slumpIrish Times
Gold ETFs Endure 31% Plunge in Physical HoldingsETF Trends
Gold fund exodus to sink holdings to lowest since 2008 next yearReuters

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MINING.com
Gold price: No taper could bring 'relief rally'
MINING.com
The gold price enjoyed another double digit jump on Monday, building on the strong end to last week's trading ahead of a crucial decision by the US Federal Reserve on winding down its US monetary stimulus program. On the Comex division of the New York 
Market Oracle FREE NewsletterThe Market Oracle
Gold Books Modest Gain as Fed Meeting Looms Large (Update 1)TheStreet.com
Gold may rally to $1300 if Fed delays taper: PollCNBC.com
Korea Times –Investing.com –Gold Seek
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Gold Stocks: The Great Contrarian Trade Of 2014?
Forbes
More specifically, gold stocks, or better yet, junior gold stocks. The junior gold miners have been obliterated, down around 80% since the 2011 peak. Causes include a declining gold price, production shortfalls, cost blow-outs, dilutive capital raises
gold, demand , manipulation, etfs, jeff christian, cpmMineweb
Lack of Demand, not Manipulation, Behind Gold Price Drop, Says CPM's Jeffrey Gold Seek

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Business 2 Community
Opportunity for Gold Today Same as It Was for Stocks in 2009
Business 2 Community
Opportunity for Gold Today Same as It Was for Stocks in 2009 image 121213 PC lombardi I turned bullish on gold bullion in 2002. At that point, gold bullion was trading around $300.00 an ounce. Now, it trades above $1,250. Simple math suggests this is
Is That Gold Bullion In Your Pants, Or You Just Happy to Be in India?MetalMiner
Gold seizures have doubled and so have hawala premiums. What gives?Firstpost
Gold-Starved Indians Still Soaking-Up SilverWall Street Sector Selector

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Resource Investor
Gold, Silver Inch Up on Week; US Mint Silver Bullion Coins Jump
CoinNews.net
Gold and silver bounced back Friday to recover from sharp prior-day losses and each logged weekly gains as a result. Gold for February delivery rebounded $9.70, or 0.8%, to finish at $1,234.60 an ounce on the Comex division of the New York Mercantile 
Gold Price "Faces Critical Week" as Fed Taper, US Budget Deal "Erode Gold BullionVault
BULLION MORNING – Gold prices lower in range, FOMC looms largeFastMarkets Metal News
Gold faces critical week ahead as Fed meets, bear market continuesResource Investor
Bloomberg –The Japan News
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The Market Oracle
Japanese Silver Moves Up; US Gold Bullion Weakens
MetalMiner
Following a couple days of improvement, the price of US gold bullion weakened by 0.8 percent. Japanese gold bullion saw its price rise 0.6 percent. Chinese gold bullion finished the day down 0.2 percent. Following a two-day rise, the price of Indian
Opportunity for Gold Today Same as It Was for Stocks in 2009CountingPips
Market Oracle FREE NewsletterThe Market Oracle
Gold seizures have doubled and so have hawala premiums. What gives?Firstpost
Wall Street Sector Selector
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Firstpost
Is That Gold Bullion In Your Pants, Or You Just Happy to Be in India?
MetalMiner
Jewelry (and, to be sure, gold) demand is such an intrinsic part of Indian culture that it is not surprising that as official imports have slowed, smuggling has risen. Read the first part of this story here. Official Indian gold imports may fall 70% in
Gold seizures have doubled and so have hawala premiums. What gives?Firstpost

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Trade the Newsroom
Gold Prices To Struggle On Higher Interest Rates, U.S. Dollar
Forbes
(Kitco News) – Gold prices are set to end a 12-year bull run in 2013, as values are likely to end down about 20% versus last year, with the yellow metal pressured by expectations for an improved U.S. economic outlook and the likelihood of the Federal
GOLD ANALYSIS Taper talk boosts gold. Is this a fundamental change in Mineweb
Gold Price Gains Amid US Fed Taper Talk on "Short-Covering & Bargain Hunting"BullionVault
Gold rises nearly 3% this week – all in the face of MORE tapering talkGold made simple News
The Market Oracle –iNVEZZ
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MINING.com
IAMGOLD Says Price Of Gold Is Too Low For A Dividend
Forbes
“While our outlook for gold over the long term is optimistic, in light of the current gold price we are suspending the dividend to preserve our balance sheet. We are on target to reduce costs by $100 million this year and will continue to look for
Iamgold suspends semi-annual dividend in face of falling gold pricesGlobalPost
IAMGOLD stops paying shareholdersMINING.com
(PR) IAMGOLD preserves balance sheet; suspends dividendWall Street Journal

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Gold and silver are moving higher as the record short position begins to unwind.  Look for a powerful move and double bottom in gold and silver as demand is soaring in Asia and huge short positions are being covered in the West.  When the majors are buying projects at a high premium like in early 2011, when Newmont bought our recommendation Fronteer Gold  for top dollar that will once again be a time to be careful and raise cash.

For right now, investors are ignoring undervalued situations such as International Tower Hill Mines (THM) which owns one of the best deposits in North America with over 20 million ounces of gold.  But they may not ignore THM for much longer especially if gold turns higher.  I have learned that the stories hated during a declining gold price become the largest gainers when the price moves higher.

The long term trend in gold remains higher and this correction may provide opportunities for precious metals investors to gain exposure to highly leveraged vehicles to the gold price.  International Tower Hill Mines is like an option on the gold price with no decaying time value or expiration.  THM’s Livengood Asset is one of the largest undeveloped deposits in the world still 100% controlled by a junior.  It could produce massive amounts of gold annually.  Hundreds of millions of dollars have been spent on this asset with 792 drill holes yet investors can purchase the company for around a $40 million market cap way below its book value.  One must remember that current resources are only on 1 sq mile of a 75 mile land package.  I believe there may be additional high grade zones like Money Knob on the property.

The project is located in a gold district which has mined precious metals since 1914 and the State of Alaska especially this region is incredibly supportive of this asset.  Livengood coming into production over the next decade could provide thousands of jobs for the region and could really boost the economy in nearby Fairbanks.  I have been blessed to be able to visit the property.

It is located just off an all season highway.  I have known some of the key technical people for several years and they are high caliber with strong moral ethics.  They have the experience in permitting and starting up some of the top mines in Alaska such as Pogo and Ft. Knox which are cash cows for Teck Cominco and Kinross.

THM released their feasibility study in one of the worst gold mining markets in history. The study showed that they will not be economic until $1500, however if gold should go higher the leverage to the price of gold is extremely impressive. The mine is massive and could produce over 500,000 ounces of gold per year if gold moves above $1500.

With an advanced NI 43-101 feasibility study the management who previously built major Alaskan Mines such as Pogo and Ft. Knox, Tower Hill could attract strategic partners to advance this project. The company is also actively exploring other mine configurations to bring the Capex and cash costs down. It is important to remember that International Tower Hill Mines sports a market cap of around $40 million and has spent over $250 million advancing this project through feasibility. That sounds like a bargain to me.

Listen to a recent interview with the CEO of International Tower Hill Mines Corp Don Ewigleben below.

Disclosure:Author is long THM and the company is a sponsor on website.

___________________________________________________________________________

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Wall Street Journal (blog)
Gold Bullion "Selling Now Done", Growing Bearishness "Good News for Bugs"
BullionVault
GOLD BULLION prices held steady around $1230 per ounce in London trade Monday morning, ticking upwards as Asian stock markets closed higher after strong data from China but European shares slipped. The Euro rose to 6-week highs vs. the Dollar on 
Gold Futures Advance on China Demand Speculation, Weaker DollarBloomberg
China's Reforms May Boost Gold ETFsWall Street Journal (blog)
SPDR Gold Trust ETF (GLD) Selling WaningETF Daily News (blog)
Reuters –CNBC.com
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Buenaventura's Largest Silver Mine Reports Strike; Big Change Hits Indian Gold
MetalMiner
Decreasing 6.6 percent made Indian gold bullion the biggest mover of the day on Friday, December 6. Weakening prices followed two days of improvement as the price of US gold bullion dropped 1.5 percent. Chinese gold bullion fell 0.9 percent last Friday.

and more »


Financial Express
Gold price settles up Rs 163 in futures trade
Zee News
New Delhi: Recovering from their previous losses; gold prices settled higher by Rs 163 to Rs 29,117 per ten grams in futures trade Monday as market participants enlarged their positions, moving in tandem with a firming trend overseas. Appreciation in
Gold price gains Rs 255 on low level buying in DelhiFinancial Express

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Gold's Price in 'Flux' Until Taper Timeline Gets Clearer
DailyFinance
by CNBC Dec 9th 2013 6:10AM. gold price fed taper Al Grillo/AP By Sri Jegarajah Gold prices will remain listless for the remainder of the year as investors await more visibility on when the U.S. Federal Reserve will start cutting bond purchases
Gold Prices Near Steady In Quieter Trading; New Fundamental Inputs AwaitedForbes
Gold Prices Rise Alongside Gap Up in Precious MetalsTheStreet.com
Gold ends with a gain as traders mull Fed commentsMarketWatch
FastMarkets Metal News –Investing.com –ETF Daily News (blog)
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