Dubai Dust Storm

As we all well know now,there's some trouble in paradise but how deep this goes still has some ways to play out. Some of the media reports have varied but overall calm hit the markets today as it appears some of the scariest debt will be taken care of. The question remains how many other Dubai's are lurking out there and has the US taken care of the worst of theirs ?

As far the internet goes, the stories can appear to be valid, only to discover they are written by some anti-elitist types telling tales of intimate connections to the highest powers of the US government and certain currency events that are close to happening, but we see these stories nowhere else on the net,hmmmm.

Best to keep a level head, realize we are in an overbought,range trading market that is searching for some levelling off zone. This will hopefully remain through Christmas along with the precious metals finding a new base level in here without any nasty corrections so many are calling for. Aren't these the same people who called the top the last six months ?

The precious metals prices are here to stay in my opinion. Canaccord just upped their peak gold and silver prices to $1300 and $21 respectively. Those are very nice numbers to work with going into next year. Got Artha ?

More AHC News !

The news machine keeps rolling for Artha as they came out with some very excellent results on their ground exploration program. Hopefully I can help discect it for you into some laymans lingo over the next few posts.

Each of the zones sampled have their own exciting results and is why I was attracted so much to Artha when they first got the option rights. In a nutshell they are finding the indicator minerals that you need to find when hunting for a mineral deposit in the hottest stretch of land in South America.


Key statements:

Phase 1 reconnaissance mapping and sampling program have confirmed the potential for discovery of precious and base metal mineralisation

Noelia Breccia prospect adjoining Pirquitas shows geochemical and geological signatures suggestive of the upper levels of a Au-Ag low sulphidation epithermal system

A broad, 6km by 2km contact zone on the Vallecito property (40km east of Pirquitas) between sediments and dacitic intrusives suggest potential for skarn replacement mineralisation


Results from this first phase work have clearly demonstrated that a number of high priority targets exist with geological, geochemical and structural indications consistent with both low sulphidation Au-Ag epithermal systems and large skarn deposits similar to the Aguilar mine approximately 100km south of Artha's properties


On the Vallecito Property:

The evidence suggests that this might be an IOCG type deposit but also has potential for an iron skarn deposit linked to contact metasomatism.



I will get more into this news over the coming days but this is an important news release for Artha and clearly shows they have multiple hot targets that will keep them busy, and us excited for a long time here. I have stated this before but I haven't been this pumped about a grassroots exploration company in a long time. The potential is clearly showing through now.


Here's the link to the news:


http://www.artharesources.com/s/NewsReleases.asp?ReportID=374006&_Type=News-Releases&_Title=Artha-Announces-Pirquitas-Properties-Update

$1200 Gold In Sight

"There's something happening here
What it is ain't exactly clear "
- Stephn Stills, Buffalo Springfield



Once again the gold and silver market chugs higher in leaps and bounds while the US dollar broke through a crucial technical support line at 75 cents. Where this goes from here is anyone's guess but I sense from the power of the buying it may be a swift move to the $1200 - $1250 range.


There is too much negative news out there from Geitner secretly wanting the dollar to go lower and make the US more competive or the Russians today buying up more Canadian dollars. News like this is not everyday stuff. What's exactly happening here beyond a currency crisis is the mystery that has long been read of but we are now witnessing.



On the flip side there are many top callers out there who if right,we will be seeing a very swift move down as this rise has been extremely fast. The charts are screaming "overbought" but this current move may make a few chartists looking foolish as the bull stomps higher busting every short to pieces as they are forced to cover ASAP.


Personally what I think is happening here is a mass short squeeze that the media seems to not want to mention and are playing the US dollar side of things. It may well be a combo but remember it was only a couple of weeks back the COT report showed a record amount of shorts. Were they all sucked in for the gold bear slaughter ? me thinks so.

But how long this lasts til the market takes a breather for awhile is my next big question. This bull move is like none other we have ever seen and has some serious legs behind it. We all know one never wants to stand infront of a runaway train.

1980 Time Warp

Let me take you back...way back. All the way to 1980 when all sorts of crazy stuff was happening. The US Olympic hockey team upset those hated Russians, The Rolling Stones released "Emotional Rescue", The Police and Sugar Ray Leonard were all the rage, while inflation reared it's ugly head like never before.


Along the way gold prices had spent the previous year in the $400 range and spiked to above $850 by mid January only to be taken down in tremendous fashion to the $500 range by mid March. For those who bought junior explorers in the previous 5 years, they were rewarded in spades. Back then the media did not track/publicize the junior stocks like now let alone noticed by a young buck like me who though was aware of the price of gold.

We never had easy access to any of the stocks we can today, or the advice of wise men who had been there,done that. To even invest with a broker was a major deal and alot of hassle plus you had to have some serious bucks before you got any decent advice. It was like a closed shop for the young and inexperienced....my how times have changed.

For your entertainment,here is a sample I found showing just what happens in a true gold/silver mania. Obviously something comparable to the tech mania in the early 90's if you ask me. Can't happen you say ? But what if it does ? and what type of company would you want to invest in ? You know my answer.




Name 1975 Price 1980 Price

Lion Mines $0.07 / $380

Bankeno $1.25 / $430

Wharf Resources $0.40 / $560

Steep Rock $0.93 / $440

Mineral Resources $0.60 / $415

Azure Resources $0.05 / $109

Sunday Night Gold

Just a comment on gold action tonite. Though the COMEX has been open only a few hours, gold is up $10 already which is very unusual for this time of night. I think all the talk of gold being overbought is from those that don't understand the fundementals of gold and the US dollar.

The US dollar is on the ropes and unless some sort of interest rate/intervention by the FED,there is nothing stopping the precious metals. Silver is also up tonite an identical .8%. Nothing big in terms of percentage but very big in terms of timing of this. I think tomorrow could be a big day for the precious metals, something is up with the world currencies and the shakeout of the dollar will continue.

One more note, if you have ever looked back when gold went to $800 back in 1979 you may be too young to remember that there were many penny precious metals stocks that went from a dime or less to $300-400 per share on a half decent hit on results. That's no bull. I was just a teen at the time and it was incredible to hear of massive fortunes being made. I have one family member who made $2 million on just a couple of good ones, getting in early like with AHC. $2 million back then was like $10 million now.

I will find that list for you as not many will even fathom what can happen in a true metals mania. AHC is one I believe will be one to seriously consider when looking for the undiscovered gem witht that type of potential. These guys have found mines before and they will again. Always invest in those that know how to walk the walk, not talk the talk.

AHC News - Part 2

One other area that must be noted from the news release is the Pirquitas South Prospect for the shear fact alone that it contains the same geology as the Pirquitas mine. As stated in the news :

The Pirquitas South Prospect is a stockwork system in the same Ordovician sediments that host the Pirquitas Mine. The stockwork sits within the intersection of a NW and NE structural system and contains a hydrothermally altered zone with moderate to strong argillic alteration and veinlets of quartz and iron oxides. The size of the main alteration halo is approximately 1.6km x 1.4 km with two smaller halos mapped to the south and south west.


That is a second target zone with a phenomenal size of prospective land both within 2.5 and 5 KM respectively from the center of Silver Standard's mine. I'm not sure of any other junior trading at 20 cents that is this close to such a major deposit with this many prime drill targets and experienced management capable of hitting paydirt.

From the company's PR they also state they will be carrying out some areo magnetic testing in the new year which will help zero in on more precise drill targets. I also expect to see some sort of ground sampling results in the coming weeks. Optomism is abundant here as they also state they expect to find more exploration targets in the coming months next to one of the worlds largest open pit mines.

If you have missed my previous post, you should do yourself a favor and check out Silver Standard's website and view the video with the 3-D look at the Pirquitas mine to really grasp the enormity and how close Artha is to this beast.


http://www.silverstandard.com/projects/pirquitas-mine.htm

AHC News - Multiple Drill Targets

Artha Resources came out today with some solid insight into the key property areas they plan to drill target. The map above shows us the magnitude of the major land holdings all around Silver Standard's Pirquitas mine and multiple targets. So what's our odds of them hitting anything decent ? No one really knows til the drill bit speaks, this is the true nature of playing the grassroots stocks.


But when you break down the areas and define some of the geological terms, several provide some clear evidence that our odds increase,especially when the words " along strike " from the Pirquitas mine appear. Not only that, it is the size of the area. The Noellia Breccia is 1.7 X .8 KM in dimension,that is one nice sized chunk of land ! If we get some decent sniffs on the ground sampling then AHC will attract mucho market attention.

As the PR states:

Follow-up field work lead to the identification of a large tectonic breccia with dimensions of 1.5km x 0.6km. The breccia is hydrothermally altered and is aligned along a NW structural system with NE cross-cutting secondary structures, consistent with the major regional structures which host many of the known deposits in the area.


Considering the dozen or so historical mines since the 30's that dot the area around Pirquitas it would make sense that Noellia has decent potential to host something of value. As noted in the PR, a Priority #1 indeed !


If the map pic does not work, please use this link and see the press release below and there is a map at the bottom that can be blown up.

Over the coming days I will disesct the other drill targets but this is enough to digest for one day.

One more note. As much as the share price action has lagged on this news, I think it is just a matter of time til the Artha story becomes more well known. For those that have followed me over time, you will know I have been very keen on AHC for awhile now and is the most exciting exploration stock I have been invested in for a very long time.

Got Artha ? Stay tuned !


Artha News : www.artharesources.com

Precious Metals Rock'n Roll Train

So much for the range trade idea,this precious metals train is leaving the station here with the continued demise of the US dollar. Gold and silver exploded upward again today peaking at all time highs of $1140 gold and and $18.49 silver. To put it a in better perspective, gold was up 1.2 % while silver rocketed over 5.7% ! Silver is a smaller and tighter market with a much larger short position than gold and has been lagging gold for awhile now. I smell some fireworks.


You can now see why I like Artha Resources so much for it's silver potential. Not to downplay their gold potential though. They have updated their website and there are two noticable mentions. One is for large tonnage,low grade gold potential on their Davcha 2 & 3 proprties and a mention of potential copper vein system/deposit on the main Davcha 1 property seperate from the silver/tin/zinc.


This has expanded the company's options huge here,not to mention the Wyoming uranium properties they are holding. Multi dimnensional company or what ? When hunting for a junior explorer AHC has it all in my books,not a single red flag in sight.


Where does the precious metals market go from here ? No one ever knows, but as one metals trader stated today : "This is not a market to stand in front of." Enuff said.

Range Trade

Another positive week behind us after Monday's pop set the tone. What has followed that pop is the setting up of a familiar pattern known as the "range trade". Look at any of the charts on the Dow or gold and you will see that rise off a bottom with a rounding top pattern followed by a levelling off for a week or so,then a dip as the market finds it's bearings.

The last few months have been repetitive so don't be surprised to see a mild dip this week or next as the market lets off a bit more steam. This is healthy and will allow the markets to move higher the more we see continuing signs that the worst is behind us and new numbers show the recovery is in process. How long that process will be is anyone's guess but as long as the governments are still in there til middle/late next year I expect the volatility to remain pretty calm.

Not to mention the gold/silver bull market that is tracking the Dow etc to a tee. The US is trying to talk up the dollar while in China but barring some major switch in policy/interest rates it isn't going to happen. So party on metals bulls, the time is nearing for the juniors to ramp up, it's inevitable with the majors declining production as Barrick is not shy talking about.

One For the Boys

In Flanders Fields By: Lieutenant Colonel John McCrae, MD (1872-1918) Canadian Army


In Flanders Fields the poppies blow
Between the crosses row on row,
That mark our place; and in the sky
The larks, still bravely singing,
fly Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved,
and now we lie In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die We shall not sleep,
though poppies grow In Flanders fields.

Starving Bear

By the looks of this pic,the bears will be waiting awhile yet to load up like last winters feast. The Dow,Naz, and TSX are looking strong with the past weeks rally and TA indicators show we have some room to run still but we are hitting a resistance line on the SPY at 110. Who wins out should be known by weeks end but I am betting on a continuance higher regardless of the low growth signals being given out by the economists.

The market and economists are two different beasts, and with the US dollar on the ropes I don't see much to make it move higher therefore the market bulls feed off this, especially after the IMF's announcement that the US dollar is overvalued. Can you say long term carry trade and higher gold and silver prices ?

At the same time the easy money has been made and it's become a stock pickers market,so buy them low when no one knows is my motto.

The markets are taking a breather this morning but that is to be expected with the huge gains of late. If we range trade here down a hundred points or two I would not be too worried.

Sorry for the lag in posts the past few days, the flu bug has bit me bigtime but like Ali in his prime, I am bouncing back off the ropes and slowly on the mend. And no, I do not have any sudden urge to roll around in a pile of mud.... I'm oink free. : )

Artha News - Appoints Geochemist to Advisory Board

Just a heads up on some Artha Resources news out this morning. They have appointed a highly experienced geochemist to their advisory board. His name is David Cohen and his credentials are second to none.

This is a very positive sign of a strong exploration company being built here when people like this are brought in at these early stages.

Here's the press release :

Wednesday November 04 2009 - News Release

Mr. Todd McMurray reports

ARTHA APPOINTS DAVID COHEN TO ITS ADVISORY BOARD

Artha Resources Corp. has appointed David Cohen to the company's advisory board. Mr. Cohen has 20 years of experience in pure and applied exploration and environmental geochemistry research based in Australia, Europe, Asia, the Middle East and North America. He is president of the (international) Association of Applied Geochemists, head of the School of Biological, Earth and Environmental Sciences at University of New South Wales and was previously chair of the Science Faculty at UNSW.

Mr. Cohen's current research projects include sampling and analytical methods for exploration and environmental geochemistry, environmental geochemical baseline surveys and multivariate data mining.

He lectures in environmental and exploration geochemistry, economic geology, geological data processing and statistics methods, and supervises a number of postgraduate research students in geochemistry. He has been a technical consultant to a number of industrial companies and government departments, and has published over 40 papers, book chapters and major government reports.

Gold Bull Marches On

Just when you thought the record gold shorts were about to take gold back down to earth, out came the long awaited news of IMF selling 200 tons of gold to India for $6.7 billion. As well there is rumours the Chinese will be buying a second 200 ton lot.

It was a slow response to this news and one that had been felt may be a negative on the gold market. When the price did start moving it moved hard and fast , doubling from $7 to $14 within half a minute and seriously squeezed the shorts all the way up to $25 range where it closed solid.

Silver lagged the gold move by an hour or so but then closed up at $17.21 up a decent 70 cents or so. There is a much larger short position out on silver and if gold keeps this up then look out silver bugs, we could be over the critical $20 very fast and the junior silver stocks like my fave Artha Resources, V.AHC will come alive.

The most amazing part was the US dollar was up half a cent which as we know usually means lights out for gold. Should make for some interesting action the rest of the week to see who has the biggest pair to risk waiting out any higher moves or if the sellers will step in at any failure to break $1100.

Strap on the seat belts, should be a wild week.