IKN #202Premium

The IKN Weekly
Week 202, March 17th 2013
Contents
This Week: FOMC next week, Towards specialization (first part of a rambling rant).
Fundamental Analysis: Gold Resource Corp preview
Stocks to Follow: Overview, Rio Alto (RIO.to), B2Gold (BTO.to), IMPACT Silver (IPT.v),
Minera IRL (IRL.to) (MIRL.L), OceanaGold (OGC.to) (OGC.ax), Gold Resource Corp (GORO),
Lara Exploration (LRA.v), Aurcan Corp (AUN.v).
Copper Basket: Overview, Lumina Copper (LCC.v), Candente Copper (DNT.to), Panoro
Minerals (PML.v), Nevada Copper (NCU.to).
The Lottery Ticket Basket: Overview, Marlin Gold (MLN.v), Bellhaven (BHV.v).
Regional Politics: Chile: Eike Batista’s MMX abandons iron ore project, Dom Rep: Pueblo Viejo
gold shipment halted at customs, Peru: Mining to get more expensive, Chile: Codelco strike
threats and La Escondida picking fights with its unions a sign of oversupply?, Peru: Tia Maria
conflict update, Peru: Senace, a bureaucratic change for project permitting, Chile: Michelle
Bachelet makes her move, Bolivia: China keen on investing in lithium.
Market Watching: Can we get excited about a two day rebound in juniors?, Mirasol (MRZ.v):
Insider buying, Fortuna Silver (FVI.to): Pro and anti mine locals face off, Sulliden Gold (SUE.to),
its meeting Wednesday, its trade potential, Esperanza Resources (EPZ.v): The reasons to deny
the mine its environmental permit look weak.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
FOMC next week
The Fed has a two day FOMC next week, with the public announcement due Wednesday 2pm
and a presser scheduled for 2:30pm. Fed-watchers aren’t expecting any changes in leading
policy, so eyes will be on the minutae of the Fed release and the usual word-by-word
examinations. Consider your card duly marked and if you want to get into the finer pre-details,
as always the superlative blog Calculated Risk has a wonkfest of a preview (1) for your
consideration.
Towards specialization
As part of an ongoing, on-and-off conversation, blogger Felix Salmon kindly pointed me towards
this little essay (2) entitled “information overload” which I read on Saturday (i.e. yesterday
morning) which crystallized some of the feelings amassed from over 200 weeks of writing The
IKN Weekly. Here come a couple of extracts but it’s wholly unfair to pull just these points from
the piece because it covers a lot of aspects, so do take time and read it yourself.
The new inequality will be an information absorption inequality. You can’t switch the
information off. You can’t opt out without the trade off being that you will be dumber
and less informed and thus probably more rubbish at making investment choices.
1

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
This is the Good Will Hunting era. Anyone can make themselves a genius if they just
try to keep up with the sources which are available. Ignorance is choosing not to
engage and being close minded to new information sources.
I should emphasise this information was always out there, it was simply never so easily
or freely available. It was siloed or withheld. Information access has been
democratised however. You can either choose to participate or fall into the new social
subclass of the uninformed but stubbornly opinionated.
You know the way computers get smarter because of the quality and quantity of the
data they process. I don’t think humans are any different. It’s all a question of data
mining.
The author of the Tumblr article chooses the direction of information absorption over refusing
to enter the arena of the new information age and as a result being left behind, which is correct
of course. The article makes many good points but on one aspect (which is why this piece gets
mentioned today) I at least partially disagree with the author’s argument.
We used to data-mine relatively at the same speed, but in niche pockets. Our views were
compartmentalised as a result. We failed to see the big picture. This has changed.
The course of human knowledge building is based firmly on specialization and this is not a new
phenomenon, either. Five hundred years ago, to choose a semi-random era, it was common for
“learned men” (sorry folks, plain fact is that at that time they really were nearly all males of our
species) to have cutting edge knowledge in disparate fields (take Da Vinci as your example, or
Copernicus, or Bacon or any number of others). Over the course of time, the depth of
knowledge required to be considered a leader in any field has become so great that quite
simply there are not enough hours in the day to be poly-subject leader. Yes, it is possible to
have a decent grasp on a wide range of subjects and the author of the Tumblr drops Joe
Weisenthal’s name more than once, but even in his case the knowledge range is only “wide” in
the limited sense of business, finance and politics; there’s not much published Weisenthal on
Philately or Ancient Greece or History of Fascism or Paleontology or English literature (middle
or modern), just to name a few subjects off the top of the head.
The age we live in today really is a case of “this time it’s different”. It separates itself from
anything that’s come before, even from a mere 15 years ago when I set up my first e-mail
address, by the volume and the ease of information access. Life can indeed become an
information overload very easily and wow, don’t I know that myself! From the beginning I set
out The IKN Weekly with a specific range to cover, that of Latin America by location, and junior
mining companies as business sector. There have been a few occasions when I’ve strayed out
of those areas (I’ll mention another business or industry from time to time, or I’ll cover a
company like OceanaGold) but on the whole the focus has been kept quite well.
Here today, four years on from the start of the Weekly, I sometimes feel swamped by the
information I need to digest in order to cover my tiny little specific sector of the market. The
rationalization that happens is something like:
“Well, to fully understand an area of knowledge, I need to stop thinking about
the whole of LatAm and start concentrating on a single country. Let’s stop
pretending I’m some sort of expert on the region and start specializing in Peru
only, at least I’ll feel more comfortable.”
2

“Hold on, Peru is darned complicated for the mining scene, too much
information. Let’s narrow it down and get to the bottom of just a few regions,
the important mining ones like Cajamarca, Arequipa, La Libertad.”
“Hmm, there’s a lot going on in Cajamarca, I need to really focus in on the
local scene here and there’s not enough time to get a real handle on the other
places.”
“Yeah, but inside Cajamarca there’s what’s happening at Conga, then
Yanacocha which is different, then Cerro Corona, then Shahuindo then...”
Get the picture? It’s not a case of “seeing the big picture” or “choosing to ignore” what’s out
there (in the words of the Tumblr author), it’s much more about choosing your limits. Yes, for
me it’s important to keep in touch with the big picture when it comes to finances and I need to
know what’s going on with, for example, the Dollar versus the Euro or the state of the trade
balance between Australia and China. However, keeping up with those subjects is vastly
different from being able to make any sort of worthy analysis.
My small and rather insignificant world is the 80/20 world, where you can get a handle on 80%
of most subjects fairly rapidly and make a cogent argument one way or the other, without
having to spend untold hours in trying to learn the 20% that’s left behind. The problem is that
with the ever-increasing amount of knowledge and information stream out there, just getting to
80% of any subject takes more and more time. On re-reading that last sentence I’d say that it’s
not so much a problem as a new hurdle to be tackled, it’s the next step of my job, but that’s
not the point I want to make. The point is that as a information distiller (I read that Spanish
language report on potential political risk in country X so that you don’t have to) I have to make
constant editorial decisions about what, in my view, is need to know in this sector and what
isn’t. Then when I’ve made my choices it’s digested into a new form (the latest edition of the
Weekly) and sent to you the reader. If I do the job to a satisfactory level you keep paying me
and if I don’t , you won’t. But mine is the job of constant filtering and compromise, of making
“Is this important enough?” calls on reading new information. I’m not saying it’s easy or that it’s
difficult, I am saying that it’s the nature of the beast, not more and no less.
The choice, eventually, comes down to one of three options
1) Spreading yourself out more thinly over the subjects currently covered
2) Keeping the deeper knowledge going on a narrower range
3) Working harder and doing both
My own nature, one that’s inherently lazy but also inquisitive that likes to get to the bottom of a
subject if possible, tends towards option two. There are many ways this may manifest itself and
as just one example, when it comes to the geographical coverage in the Weekly the split has
tended to be away from LatAm countries that are ambivalent or opposed to junior mining
companies on their territories and towards regions that welcome the activity covered by The
IKN Weekly. True for here and I’d wager that it’s true for most any other coverage of juniors in
the region, as people tend to concentrate their efforts on places that will approve of their work.
For example, why go to great lengths to get to the bottom of the metallurgy and projected
milling operation logistics of the San Jorge mine in Mendoza Argentina when on filing your 35
page report, the only feedback you get will be, “Yubbut with the looneytune politicos running
the province that thing’s never going to get its permits”. This, just one example of the so-called
information overload, is most probably a mistake and something I need to guard against as I go
about my job. This is why is only partially disagree with the Tumblr article author; yes, it’s
about specialization and it’s a tendency that will accelerate. But it’s also about keeping a
watchful eye on changes and being ready to note new opportunities and act upon them quicker
than the rest.
3

• Is Ecuador still fubar for mining, or is there real change?
• Will Argentina move in a different and more FDI-friendly direction?
• Is Chile losing the mantle of top destination due to costs, or are we still good there?
Those and a hundred others. There’s more to be said on this subject and I’m likely to return to
it over the next few weeks, but next time the subject matter will be more on-topic and less
nebulous in nature.
Fundamental Analysis of Mining Stocks
The best laid schemes o' Mice an' Men,
Gang aft agley,
An' lea'e us nought but grief an' pain,
For promis'd joy!
Burns, To A Mouse
The idea today was to run a NOBS update report on Gold Resource Corp (GORO), as on March
1st its annual report had been flagged by the company (3) as delayed and given 15 extra days
(by normal SEC protocol) to be filed. The interesting (though rather boring for your author)
development is that today is March 17th and GORO has yet to file. I quote from the 12b-25
“Notification of Late Filing” document:
“The subject annual report, semi-annual report, transition report on Form 10-K... will
be filed on or before the fifteenth calendar day following the prescribed due date”
The problem is half of my own doing and half that of GORO, as the company is dragging its
heels on filing to the apparent last minute. The 12b-25 is dated March 1st and GORO’s original
filing date limit was March 4th, so silly me thought that the clock started ticking on the 15
calendar days as of the 1st. Apparently that was an error, and GORO has until March 19th to file
its paper. In practical terms my mis-calc has screwed up my plans for this week’s Fundies
section no end. Your author did all the background prep on the numbers and was ready to roll
the new information in, consider its effects and write it all up in a NOBS report, but the non-
appearance of the annual (plus any word on company guidance for 2013) has well and truly
scuppered things.
The report is likely a key piece to our current short thesis and it’s why the decks were cleared.
Both results and guidance may offer clear indications (or at least clues) that our base theory,
that of a company that won’t be able to keep up its current rate of dividend payments, is
correct or false. With the annuals in hand we’ll be in a better position to check theory versus
reality and make any add/hold/cover call on this short. Therefore (and after due consideration
this Sunday morning once my error had dawned on me and I’d cursed GORO’s name several
times for not filing this weekend) the decision is to wait until the annuals appear and send you
the NOBS report as a separate document the next day. For example that may happen as early
as tomorrow and if so you can expect the report delivered early Tuesday morning. There’s not
much point in publishing the prep work to the company update report before we get the
annual, but there’s no point in waiting until next week, either. Therefore (and assuming GORO
files during the week) expect a one-off NOBS update in your inbox between now and IKN203.
4

Stocks to Follow
Our 14 open position stocks had a better week overall, with seven moving up (BTO.to, IRL.to,
AUN.v, OGC.to, LRA.v, GORO short, MLN.v), three unchanged (AQM.v, FCV.v, USC.to, all
smallfry) and four losers (RIO.to, PLA.v, LPK.to IPT.v). That’s the best balance we’ve seen for a
while and barring an irksome 8c loss in RIO.to, which failed to rally alongside plenty of its
peers, there’s nothing really to complain about here. No big percentage losers, while the best
wins were registered in B2Gold (BTO.to up 10.0%) and the Gold Resource Corp short (GORO
short up 9.6%).
There’s a potentially embarrassing amount of green on the short-term sentiment “this week”
column now, with RIO.to and MLN joining the rest this week. More fool me for allowing a little
optimism to bloom in this traitor of a market, perhaps, but I simply cannot escape the feeling
that there’s a lot of true value around these days. Gold was supposed to drop to $1,550/oz,
then $1,500 on its way to $1,200 (I think that was the bearish narrative) which affected gold
equities more than the bullion price. With gold now steadying and back sniffing at $1,600/oz
without threatening any of those TA downside targets, the question is to ask is why shouldn’t
these companies rebound some, rather than why they should.
There are currently 14 stocks on our open list, one less than our self-imposed maximum. Three
are green, one is unchanged, ten are red.
Company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
Top Picks
Rio Alto Mining RIO.to buy C$2.04 07-apr-11 C$4.52 121.6% $6.29 tgt
B2Gold BTO.to buy C$3.42 28-nov-12 C$3.18 -7.0% $5.70 tgt 4 buys
Recommends
Minera IRL IRL.to buy C$0.73 22-jul-12 C$0.68 -6.8% $1.56 tg, added, new avg
Aurcana Corp AUN.v buy C$1.07 11-nov-12 C$0.77 -28.0% $1.50 tgt near term play
OceanaGold OGC.to buy C$3.03 16-sep-12 C$2.78 -8.3% $5.34 tgt growth prod
Lara Expl. LRA.v buy C$1.15 08-apr-12 C$1.23 7.0% solid biz model, LT hold
Plata Latina PLA.v hold C$0.79 10-apr-12 C$0.445 -43.7% considering sale
Lupaka Gold LPK.to spec buy C$1.12 23-oct-11 C$0.315 -71.9% holding, tgt 61c
IMPACT Silver IPT.v buy C$1.14 13-jan-13 C$1.01 -11.4% new position, $1.85 tgt
Gold Res Corp GORO short U$14.11 25-jan-13 U$12.68 10.1% short, $9.60 tgt
Smaller/Riskier
AQM Copper AQM.v hold C$0.31 16-oct-11 C$0.06 -80.6% holding thru for my sins
Focus Ventures FCV.v spec buy C$0.175 01-jul-12 C$0.16 -8.6% revised tgt 25c
United Silver USC.to hold C$0.21 28-oct-12 C$0.10 -52.4% 60c tgt, avg down Dec'12
Marlin Gold MLN.v spec buy C$0.075 10-feb-13 C$0.075 0.0% small, new, near term
Closed in 2013
USA Graphite USGT feb'13 U$0.93 08-jan-13 U$0.17 81.7% tgt made, trade closed
Lachlan Star LSA.to feb'13 C$1.50 30-sep-12 C$0.95 -36.7% sold to reduce port risk
2009, 2010, 2011 and 2012 closed positions in appendices below
Now for some notes on a selection of the above stocks.
Rio Alto Mining (RIO.to): This week coming should see the long-awaited release of updated
numbers for the oxide gold resource at La Arena. Meanwhile, we can at least some insight on
what to expect from the 1q13 production figures, as Peru’s Mining Ministry (MEM) gave us
overall country production numbers for the month of January last week and the mine-by-mine
breakdown (by the way, if there are any other Peru mine production numbers that interest you,
no matter what metal, feel free to write in; once you can read Spanish and know your way
around the MEM website the monthly numbers are pretty easy to find and I’ll be happy to
help), which means that La Arena’s production total for January is there and published, too.
5

Here’s the updated monthly production chart for the mine and as you can see, RIO reported
13,670 oz for January, slightly lower
than December. That’s a little ahead
RIO.to: Monthly gold production figures
of the average month required to hit (NB: Nov and Dec '12 estimates)
RIO’s 1q13 forecast of 34,000 oz Au 25000 24401
22500
(see 2013 guidance NR here (4)) as 20144 19560
20000
i 4 t 0 w k o i u n l d 1 p q u 1 t 3 R i I f O F e o b n r u tr a a r c y k a fo n r d a M ro a u r n c d h 17500 16692 17639 15426 15091 15998 17039
15000 12887 13793 13670
come in the same. So not a bad start 12500 11871
to the year, I’d venture. 10000
7500
Meanwhile, the stock didn’t trade 5000
well, not as a separate entity and not 2500
0
compared to plenty of peers out
there, either. I’m not 100% sure as
to why that might be, but after
Monday’s very clunky open I did something I rarely do and watched RIO’s share price trading
quite closely all week. What I saw, particularly on Wednesday and Thursday (as well as some
very strange dumpage early Friday) were trades going through that looked like slow-drip selling
of a larger position (perhaps more than one), perhaps a fund liquidating. Then all of a sudden
Friday (as this chart shows, check the volume bars) the market came for RIO as one of the
juniors in a whole bunch that got bought (see ‘Market Watching’ below for a bit more on this).
B2Gold (BTO.to): Let’s start by mentioning the volume, which saw a very decent 11.5m
shares traded on Tuesday but then a massive 48.7M on Friday, with 45.5m of those run
through the US OTC listing of the stock
(BGLPF). As this five day chart shows,
Tuesday’s volume bump came with a
decent price bump and Friday’s came
with a late-day sag. Finally, we note that
the selling house Friday was Instinet
(house 13), which is the Nomura
brokerage that carries a lot of
institutional and ETF holding trades. It all
adds up to one thing: that the Friday
trades were pre-arranged (at a pre-
arranged price) to soak up the 44m
approx shares that were being held by
the junior ETF (GDXJ), as BTO is no
longer a member of that ETF (it’s got too
big to carry there, in simple terms).
Therefore it’s interesting (and wholly bullish9 that those large chunks found ready buyers in this
6
21naJ bef ram rpa yam nuj luj gua pes tco von ced 31naJ
Ozt Au
source: MEM

supposedly drab and illiquid market.
Now for news, and BTO announced that it would be releasing its 4q12 results pre-bell March
28th (that’s Maundy Thursday this year) with a conference call scheduled for later that same
day. Expect a NOBS update report on our Top Pick in that Sunday’s edition (March 31st), ladies
and gentlemen.
Meanwhile, positive news out of the company’s Libertad mine yesterday (Saturday), as the
According to a press release in Nica (Spanish language only) BTO has reportedly (5) reached
agreement with the protesting informal miners who have been staging a protest outside the
mine gates for the past months and who were the cause of the disturbances earlier this year
that ended with injuries and arrests. The moneyline is a quote from the mine manager at
Libertad (known locally as the Santo Domingo mine), Pablo Venturo:
“In Santo Domingo there are five groups of artisanal-type miners. In previous months were have
reached agreement with four of these groups and today we have signed an agreement with the
fifth group.”
According to the agreement, BTO has committed to amplify its social and community projects,
including improvements to the local health centre, partial funding for construction of the new
municipal building, funding for the local waste disposal pit and to support local small mining co-
operatives.
IMPACT Silver (IPT.v): Another week in which IPT releases strong fundies news and the
market just shrugs its collective shoulders. On Thursday IPT told us (6) that its new (and
separate facility) Capire mine had started preliminary operations, which means its plan is right
on schedule. As mentioned a couple of times previously, we’re not expecting massive things
from Capire in 2013, as the operation won’t be much more than test level for the initial period
until IPT thinks is has a handle on met, recovery, etc. This operation may add slightly to overall
production in the near-term, but longer term it has the capacity to really make a difference and
push IPT towards its 1m oz Au/year target.
OceanaGold (OGC.to): OGC had a good week and a good Friday, being another one of the
juniors that saw very strong volumes late day. It’s also notable that it was Canada, rather than
the normal OGC price driver of its Australian listing, that saw the big volumes on Friday (signs
of “an algo kicking in” perhaps, as mailer AP
suggested). This could be, but again I state
that positive or negative share movements
are not an influence on the fundamental
parameters of any given stock, be it RIO,
OGC BTO or any other, and will ultimately
wash through as the real underlying
influence of (as simply put as possible) just
how good the company is comes to the fore.
And yes, I strongly believe that OGC is a
better company than its current market cap
valuation suggests.
In other news (and mentioned in Tuesday’s
Flash update) OGC announced (7) that the
Didipio truck impounding glitch with the Philippine government was all indeed a temporary
glitch as expected, that the problems had apparently been smoothed out and that port
deliveries were happening as per.
Minera IRL (IRL.to)(MIRL.L): Still nothing much doing here, with a small price improvement
but no volume. For the umpteenth time last week I received a mailed in complaint from one of
you about the lack of liquidity in IRL trading (specifically the Canadian listing) as a potential
buyer couldn’t get a fill from a very reasonable bid. I passed this 100% valid gripe on to the
7

company and can say that IRL is aware of the issue and is looking into what can be done about
it. This isn’t really my place or my show do know that there are a number of market
professionals (from many different angles too) that will read these words, so if any of you think
there may be a mutually (i.e. you and IRL, nothing to so with me) beneficial solution or deal to
do, why not get into contact with the company?
Gold Resource Corp (GORO): As noted above, GORO is now in the interesting position of
being in default with the SEC on its annual filings. It remains to be seen how this one plays out
but here we’ll just stick to mentioning market action. Trading-wise GORO had a mediocre week
and was very poor compared to peers (even worse than RIO) with again, plenty of evidence to
suggest a significant holder was systematically selling out of a position. That suits me and my
short position very nicely, of course.
Lara Exploration (LRA.v): Volumes weren’t great and the bid/ask gap was often wide, but
overall a positive week for LRA as a few smaller players looked to take up positions. It’s difficult
to know when the next piece of newsflow comes from this stock and what it will be about,
though with over a dozen active projects on its books (run largely by other people’s money
optioning in) there’s plenty of scope for news at any time. This is one of the easiest middling-
sized positions to hold in the portfolio right now, as despite its low average volume it acts very
well and has its supporters.
Aurcana Corp (AUN.v): One more for the pile, yet another beaten down junior name that
saw late day Friday buying that would smack of tape-painting if it weren’t for the outsized
volume. In AUN’s case, a company that averages under 1m share per day ran through over 4m
shares on Friday
The Copper Basket
After eleven weeks of 2013 The Copper Basket is showing a 5.70% loss to level stakes.
8

company ticker price 1/1/13 Shares out Market Cap current pps gain/loss%
1 NGEx Resources NGQ.to 3.40 158.5 467.58 2.95 -13.2%
2 Augusta Res AZC.to 2.43 144.1 383.31 2.66 9.5%
3 Lumina Copper LCC.v 9.43 43.46 320.73 7.38 -21.7%
4 Copper Fox CUU.v 0.83 399.61 295.71 0.74 -10.8%
5 Nevada Copper NCU.to 3.50 80.5 247.14 3.07 -12.3%
6 Hot Chili Ltd HCH.ax 0.72 286.78 195.01 0.68 -5.6%
7 Reservoir Min. RMC.v 2.41 41.46 112.36 2.71 12.4%
8 NovaCopper NCQ.to 1.80 51.89 97.03 1.87 3.9%
9 Panoro Minerals PML.v 0.62 176.25 84.60 0.48 -22.6%
10 Western Copper WRN.to 1.39 93.78 80.65 0.86 -38.1%
11 Candente Copper DNT.to 0.375 121.93 49.99 0.41 9.3%
12 Curis Resources CUV.to 0.70 56.31 48.43 0.86 22.9%
13 Oracle Mining OMN.to 0.80 49.03 36.77 0.75 -6.3%
14 Yellowhead Min. YMI.to 0.59 60.97 31.09 0.51 -13.6%
15 Strait Minerals SRD.v 0.08 56.86 3.98 0.07 -12.5%
NB: HCH.ax priced in AUD$, rest CAD$ Portfolio avg -5.70%
Five of our basket stocks made gains on the week (NGQ.to, HCH.ax, NCQ.to, DNT.to, SRD.v)
and three were unchanged (PML.v, YMI.to,
CUV.to), which means that seven lost ground Copper Basket 2013 average, weekly
(LCC.v, AZC.to, CUU.v, NCU.to, WRN.to, 14%
12%
RMC.v, OMN.to). The best numbers were filed 10%
by Candente Copper (DNT.to up 13.9%) as it 8%
6%
continues to bounce within a trading range
4%
while the worst were seen in Oracle Mining 2%
0%
(OMN.to down 10.7%) which is now down on
-2%
the year. -4%
-6%
Overall there was little change to the basket
average, with just 0.35% dropped since last
week as the goods almost balanced out the
bads while most moves were smaller sized.
We move to our regular coverage of the copper
macro scene and our preferred indicators. Price
action was initially bullish but ultimately slightly
bearish, as copper tried to rally on Tuesday but
largely failed to break away from the $3.50/lb
range.
Now for inventory talk and we had yet another
rise in stocks levels last week (getting to be
quite the bad habit) as a reported 826,277mt of
copper is now held in the world’s warehouses
(+2.9% week over week). LME stocks rose by
3.2% to 525,825mt, Shanghai Futures
warehouse stocks rose by 2.9% and Comex
stocks rose by 0.4%.
As for cancelled warrants, they remain very low
and overall bearish, but we did get a slight
improvement on the week to 6.29% of LME inventories.
9
ht6naj ht31 ht02 ht72 r3bef ht01 ht71 ht42 dr3ram ht01 ht71
source: IKN calcs, TSX data
31/1/1
morf
egnahc
%

Cancelled Warrants at LME, IKN157 to date
35%
30%
25%
20%
15%
10%
5%
0%
10
751NKI 951NKI 161NKI 361NKI 561NKI 761NKI 961NKI 171NKI 371NKI 571NKI 771NKI 971NKI 181NKI 381NKI 581NKI 781NKI 981NKI 191NKI 391NKI 591NKI 791NKI 991NKI 102NKI
source: Cochilco, LME
rof
yrotnevni
EML
%
latot
yreviled
resu-dne
Now for updates on some of the basket stocks:
Lumina Copper (LCC.v): The lack of closure at LCC hasn’t escaped the attention of the
snarkier ends of the junior-watching public, either (8). Here’s a 12 month chart which shows
the sell-off that began roughly this time last year, when the penny finally dropped in the
market that LCC wasn’t about to keep its planned timeline and sell Taca Taca to the highest
bidder. From mid-May onwards the stock has bounced around in a fairly wide $7 to $11 range,
with $9 being the rough average.
The problem is Argentina and quite frankly the problem isn’t going away anyway nearly as
quickly as those who have been consistently wrong about the country would like. Step forward
Ross Beaty, the man who enjoyed a spell of
non-stop success until hitting a very large and
expensive brick wall in the shape of Argentina,
via both LCC and Pan American (PAA.to).
Sorry people, you may be hoping and praying
for some kind of Argentine economic collapse,
or a new government to move its economy in
a more healthy direction, but all the wishing in
the world isn’t going to make it happen,
period. The story we see unfolding is
uncannily similar to the constant predictions of
immediate doom we heard about Chávez’s
Venezuela, every year without fail from 2005
through to today. According to those who get
paid for saying what the North wants to hear,
every year inflation was about to kill the economy, every year the banking system was on the
edge of collapse.
Meanwhile (and to cheer up those who’d like Argentina to be more neolib), a good report in
today’s La Nacion shows that there are financial brains in the country who see the problems
facing the mining industry there and can identify the things Argentina needs to do a lot better
in order to make itself more attractive. There’s been a lot of inward reflection on the poor state
of play in Argentina’s mining sector in the last few days due to Vale’s decision to pull out of the
near $6Bn Rio Colorado potash project in Mendoza, with articles such as this La Nacion (9) one
part of the process. Here’s an extract:
“In the last few years foreign investors have started to get worried, due amongst other
reasons to the changes in the rules of thew game and the growth of local
macroeconomic imbalances” said the economist. In a sector where 99% of investment
is foreign money, this isn’t a small point.
Mining represents 1.1% of Argentine GDP (it was 0.3% in 2001), a figure which,

according to estimates made by Abeceb.com could double by the year 2016 as long as
the current doubts are dispelled. The country’s geological potential remains intact but
with the same “blessings of nature”, Chile and Peru exported in 2011 (most recent data
available) mining products valued at U$60Bn and U$25Bn respectively, while in
Argentina exports came to just U$5.5Bn.
A lawyer specializing in mining law explains these contrasts from a legal point of view.
“The perception is that in Chile there is a lot less judicial arbitrariness than here. In
Peru, event though there is a high level of social conflict, authorities are seen to give
more support at the moment when the law needs to be upheld.” This is why, in his
opinion, Argentina is sub-developed in relation to its natural mineral richness.”
That sounds right to me, but whatever you do, don’t expect any improvement. By way of
evidence, note that the Argentine government’s reaction (10) to the Vale decision was 1) to say
that “oh we’ll get a Chinese company in to develop it instead 2) to threaten Vale with
expropriation and 3) to demand that Vale pay the workers currently employed at Colorado their
salary for the next year, no matter whether or not the project is moved forward.
This is the Argentina of 2013 and if you think it will change while Cristina is in office, think
again. And if you think Argentina’s economy will collapse and CFK can’t finish her term, the only
way that will happen is if world commodity prices collapse (in Argentina’s case, start with
soybeans) so what are you doing invested in metals? And if you think Argentina can’t survive
for long with 30% inflation, look at Venezuela’s inflation rate in the years before and during
Chávez, not just now (that’s 20 years and no defaulted dollar bonds, people). And if you think
the Kirchnerist party won’t win the 2015 Presidentials, you underestimate the grassroots
support enjoyed by both CFK and her political machine and even if the K-people lose, the only
viable alternative at this point is more traditional factions of the umbrella Peronist party.
People like Ross Beaty and Geoff Burns have been 100% wrong on their calls about Argentina
and it matters not one jot about their previous star-filled successes. They’ll continue to be
wrong as well. LCC isn’t going to sell to anyone, not with the type of price ticket it needs for
development. The only people predicating on the opportunities in Argentina are those with
assets trapped inside already, it’s Stockholm Syndrome writ large, so a step forward and a bow
from McEwen Mining and Yamana Gold at this point.
Avoid this stock. I hope that’s clear.
Candente Copper (DNT.to): The DNT soap opera sees a new round of peaceful
demonstrations against the project starting today (March 17th) in the Cañaris community, with
organizers claiming (11), “Nobody (from the local population) wants the mine, because we are
all fighting in respect of the water supply and the environment. This conflict has divided us and
caused a lot of confrontations.” This confuses me slightly as if “nobody wants the mine” how
can it have caused divisions and confrontations? The other event happens on March 24th (next
Sunday) when locals will vote to choose their next community president and replace current
leader Cristobal Barrios, who is not running (because he’s barred from re-election by the rules).
Meanwhile, the 13.9% upmove in DNT looks good, but it’s not much more than a bounce in the
normal trading range.
Panoro Minerals (PML.v): Decent news from this company, as it announced Thursday (12)
that its $15m equity financing priced at 55c per share (no warrant) had closed successfully and
all 27.3m new shares placed. That’s a good result in this market and it’s a good result
compared to the recent price action in PML, with 50c or below the market prices ever since the
placement was announced on February 20th (bar the first couple of days). This smacks of larger
money willing (and able) to pay a premium to the market in order to get hold of a chunky-sized
piece of this company and that in turn usually means that larger money has done its DD
carefully and likes what it sees (probably starting with the flagship Cotabambas project.
Nevada Copper (NCU.to): NCU is the typical copper exploreco stock at the moment. In
11

Pumpkin Hollow it has a good project in a politically safe zone and plenty of local support that’s
now going through its most important
permitting hurdle (apparently) more
smoothly then most. It also has the cash
needed to move its project forward and as
last Monday 11th March’s news shows (13)
it’s still meeting with drilling success and
managing to expand the deposit’s
mineralization envelope. And even with all
that, as this 10 day chart shows, nobody
cares. On Friday NCU ducked below $3 for
the first time since September, which was
back in the good old days when
Bernanke’s QE3 announcement saw
copper shoot to $3.80/lb.
The Lottery Ticket Basket
After eleven weeks of 2013 The Lottery Ticket Basket is showing a 2.20% gain to level stakes.
company ticker price 1/1/13 Shares out Market Cap current pps gain/loss%
1 Eagle Star Min. EGE.v 0.125 69.48 24.32 0.350 180.0%
2 Marlin Gold MLN.v 0.10 192.39 14.43 0.075 -25.0%
3 Bellhaven BHV.v 0.14 121.16 13.93 0.115 -17.9%
4 Fancamp Expl. FNC.v 0.125 109.8 13.73 0.125 0.0%
5 Glass Earth GEL.v 0.155 104.79 12.57 0.120 -22.6%
6 Gryphon Gold GGN.to 0.085 194.64 9.73 0.050 -41.2%
7 AQM Copper AQM.v 0.08 105.57 6.33 0.060 -25.0%
8 FDG Mining FDG.v 0.13 45.59 6.15 0.135 3.8%
9 Copper North COL.v 0.10 58.62 5.28 0.090 -10.0%
10 Rio Cristal RCZ.v 0.025 149.26 4.48 0.030 20.0%
11 Inca One Res. IO.v 0.12 34.0 3.91 0.115 -4.2%
12 Darwin Resources DAR.v 0.20 26.16 3.40 0.130 -35.0%
13 Cream Minerals CMA.v 0.03 155.34 2.33 0.015 -50.0%
14 Netco Silver NEI.v 0.025 47.01 1.88 0.040 60.0%
15 Firestone Ventures FV.v 0.045 36.32 1.63 0.045 0.0%
Portfolio avg 2.20%
The Lottery Ticket Basket moved back
into overall positive territory last week
30% Lottery Ticket Basket 2013 average, weekly
thanks to a net result of seven
25%
winners (MLN.v, BHV.v, GGN.to,
GEL.v, FNC.v, DAR.v, IO.v) no fewer 20%
than seven stocks remaining 15%
unchanged (AQM.v, EGE.v, FDG.v,
10%
CMA.v, RCZ.v, FV.v, NEI.v) and just
5%
one solitary loser (COL.v). Best of the
0%
bunch were Fancamp (FNC.v up
25.0%) and Bellhaven (BHV.v up -5%
21.1%).
12
ht6naj ht31 ht02 ht72 dr3bef ht01 ht71 ht42 dr3ram ht01 ht71
source: IKN Weekly data, TSX
2102/1/1
morf
egnahc
%

Last week was another one that got me to warm to this list and the way it’s not being random
about the market. I’d definitely look to the better volume issues if I wanted to play the microdot
end today, but if a rally does set in there may be some very decent percentage wins available
for your smaller play-cash here. So, coming on to three months in to this experiment and I’ve
almost surprised myself about my liking for this indicator.
Marlin Gold (MLN.v): One of your author’s two open positions held in this group (the other
being AQM of course) has put on a penny in the last two weeks (it sounds better in percentage
terms, 15.4%). We have some unofficial word on the rights issue, as the backstop is apparently
being used a little more than backstoppers Wexford expected and they’re now guessing
internally that they take ~11m of the ~15m in play. This would make them 63% holders of the
company and I’m guessing that they’re not at all unhappy about holding a few extra percentage
points of stock than originally calculated.
We also hear, again unofficial but fairly well sourced, that construction at the Trinidad project is
now 20% complete, which is slightly ahead of schedule, but that capital costs are coming in
lower (yes, that says lower) than originally budgeted. That sounds fair enough, but we should
also take into account that MLN didn’t make much of a noise through PDAC when the plan (in
my tiny warped mind at least was to expect a little more noise at this juncture. We understand
that some type of market update will arrive in April (rather than March), which is cutting the
newsflow a little fine for your author’s strict near-term trade here.
Bellhaven Copper & Gold (BHV.v): Last week’s percentage gain looks good, but the trading
points were pretty wild all week (as this five day price chart indicates) and when a stock can
jump from 12c to 9c and back again like this, it’s all best taken with a pinch of salt.
Regional politics
Chile: Eike Batista’s MMX abandons iron ore project
Add another checkmark to the subject of Chile getting expensive for mining. Last week saw
Brazilian billionaire Eike Batista’s MMX pull out of an iron ore project in Chile (14), citing rising
costs and marginal economics as the main reason for the decision. The $113m project has been
moved to near feasibility stage in the past four years but MMX last week pulled the plug, saying
“After careful revision (and) with the support of detailed debate with the technical and financial
teams, MMX council has decided to revise its Chilean assets strategy”. Extra comments after
that official press release quoted MMX as saying the project wasn’t as viable as it was four
years ago when it first received permits that would allow production (not siply exploration).
13

Dom Rep: Pueblo Viejo gold shipment halted at customs
As mentioned on the blog last week, we had a development in the spat between the
government of Dominican Republic and the Barrick Pueblo Viejo gold mine (60% owned by
Barrick (ABX) and 40% owned by Goldcorp (GG)) when customs officials stopped a
consignment of gold from leaving the country (15). We’ve found out since then that the
shipment in question, due to move to Canada via Miami, is of silver/gold doré worth $11.6m
and the problem is that according to customs officials the consignment was not declared
correctly and its contents don’t properly match the paperwork that accompanied the packages.
As a result, Dom Rep’s customs police are now conducting a thorough investigation down the
full chain of production and delivery and have also pledged to do the same for any exports from
Pueblo Viejo in the future. At this moment the doré is still stuck at customs and is physically
located at the main international airport. We’ve also seen the president of the Barrick Pueblo
Viejo mine, one Victor Rocha, arrive in Dom Rep to negotiate the freeing up of the
consignment.
There is no smoke without fire and what we’re seeing is obviously a strategy by the Dom Rep
government to get the mining company to the table on its greater ambition, that of
renegotiating the contract it has with the mine (see Weeklies passim) and obtaining more tax
revenue from the early years of production. It’s certainly an interesting line of strategy from
Dom Rep and I admit to a sneaking admiration for the move. Whether or not it’s effective in
getting a deal from ABX/GG remains to be seen.
Peru: Mining to get more expensive
You might read that headline and think “tell me news, not history” but it gets a feature due to
an official-type admission (16) from Peru’s chamber of mining, the SNMPE, that this will be the
case. Here’s the central point made in the report:
SNMPE President Eva Arias said in an interview that Peru's mining sector will
need to become more efficient to cushion the impact of higher costs and to
remain competitive compared with other mining districts. Peru is a major
global producer of copper, gold, silver and other minerals.
The higher costs in the sector have been driven by more expensive supplies
and labor, as well as the steady appreciation of Peru's currency against the
U.S. dollar during the past decade. Many of Peru's biggest mining companies
saw their net profits decline last year partially due to increased costs, while
others have had to rethink their investment plans for large-scale projects.
Chile: Codelco strike threats and La Escondida picking fights with its unions, a sign
of oversupply?
Chile’s mining unions are a formidable force and companies have consistently ceded to their
demands over the past few years, resulting in Chile’s large mine copper workers being paid top
salaries and getting solid pay rises every year. Therefore, the news (17) that the BHP controlled
La Escondida mine, the world’s biggest single copper mining operation, last week dismissed up
to 600 of its workers (employed through 3rd party contractor BSK) for protests and roadblocks
as part of their demands for higher salaries is an interesting development.
The workers in question took part in protests between Feb 28th and March 3rd and the news of
the firings (between 500 and 600 people with no precise number given so far, according to
reports) was met by the expected reaction from unions, who are now calling for a “massive
protest” in order to overturn the dismissal orders and if management doesn’t back down, the
chances of a mine-stopping strike are high.
The thing here is that for once, management seems ready to stand its ground and as this single
mine supplies around 6% of the world’s annual copper consumption, that’s no small matter. It’s
not the move made by a company worried about maximizing profits either (as in any previous
recent year you care to mention) but one more interested in its costs input lines than ever
before. One look at the continued rise in copper inventories is enough clue as to why this might
14

be as well. Along with the latest news that Chile’s State owned Codelco (18) may see a strike
from its workforce to demand better pay, conditions and a return to more nationalized
production in Chile, this story may best be gauged by the reaction any industrial action has on
the world price for copper. If (as I suspect) we see copper spot price pop on supply crimping
from Chile, the bearish signal would be clear.
Peru: Tia Maria conflict update
Your author is keeping an eye on the next probable social conflict in Peru that surrounding
Southern Copper’s (SCCO) plans to reactivate the Tia Maria copper project two years after
protests that saw violence, a couple of deaths and its permitting eventually rejected. A few
weeks ago we noted that the conditions being placed on a negotiation by locals living close to
the project weren’t ones likely to be accepted by either company or national government
(namely, the main three that 1) a completely new EIA application, not a re-hash 2) a local
referendum and 3) government mediation at the negotiation table) but last week we heard
from hardline anti-mine locals that even those propositions, put forward by the local political
leader of the defence organization, were unacceptable and too soft. More radical organizations
and committees in the Islay region where Tia Maria would be built (note: mainly local
landowners and farmers, rather than enviro pressure groups or NGOs) said (19) that “Tia Maria
does not have and will never have social approval” and that any plan to move the project
forward would not succeed.
Peru: Senace, a bureaucratic change for project permitting
Last week Peru’s Minister of the Environment, Manuel Pulgar Vidal, announced (20) that the
newly formed body under the auspices of his ministry, the “National Service of Environmental
Certification for Sustainable Investments” (its official Spanish title being “El Servicio Nacional de
Certificación Ambiental para las Inversiones Sostenibles”, which is a mouthful and means it’s
going to be universally known by its acronym “Senace”) would begin its task of approving
environmental impact studies as from April 2014. This new body will take over the job from the
current piecemeal EIA approval system that is dependent on the type of industry or sector
looking for project approval, which means that new environmental permits for mining will also
eventually come from this body and not from the Ministry of Energy and Mining (MEM). With
luck this should speed up the permitting process in Peru for mining projects (note words luck
and should, these things are never certain when it comes to LatAm bureaucracy) as currently
any single permit application has to bounce around several different ministries and authorities
(e.g mining, regional environment, national environment, water, culture etc) before approval is
granted and the basic idea driving the newly formed Senace is to have all these people in one
place thus speeding up the process.
Chile: Michelle Bachelet makes her move
The next big regional Presidential election after Venezuela will be that of chile in November
2013 and on Friday we saw the first significant move in the campaign. Ex-President of the
centre-left coalition Concertación party (in Chilean terms at least, difficult to equate what
happens in Chile to true left/right politics) Michelle Bachelet, all but announced her (already
expected) candidature which is apparently to be made official on April 13th (21) at her party’s
primaries conference. The right wing has already reacted to the move, with candidate Allemand
saying that it would be a mistake for Chile to return to the past. Pretty weak considering
Bachelet is credited with strong growth during her previous tenure and is a very popular leader
in Chile. She should now be considered hot favourite for the win later this year, with the likely
opposition coming from the right’s most popular political figure, Mauricio Golborne.
Bolivia: China keen on investing in lithium
Last week saw a pow-wow in London organized by the Latin American Trade and Investment
Association (LATIA (22)) and your author’s source at the meeting was particularly impressed by
the amount of interest China (and in particular, government officials attached to the Emerging
Markets Association of London (23) gave to Bolivia and its lithium projects at the Uyuni salt
flats. For its part Bolivia was keen to stress that it was now only doing business on a country-
to-country level and is moving forward only with national or state run partners, no private
15

companies allowed. The other prerequisite demanded by Bolivia was that of value addition, with
any partner wanting to, for example, make batteries out of the Bolivian lithium having to
commit to and build the necessary fabrication plant in Bolivia. These stipulations aren’t news of
course, but my source was particularly impressed about the willingness of Chinese delegates to
accede, no questions asked and no quibbles, to the demands. The final deal would be based
around a 25 year concession leased to a Chinese State run type company (no real problem
there, most of the Chinese industrial entities are pseudo-State anyway) after which both the
concession and the technology would become Bolivia’s property.
Finally, a small non-mining snippet from Bolivia. On the back of last year’s very successful
$500m bond emission from the country, expect another one of the same size later this year.
Market Watching
Can we get excited about a two day rebound in juniors?
No, but we can at least point it out. This chart (the same parameters as I used to run every
Saturday in 2012 on the blog, with five days, and the ETFs for gold, silver, copper miners,
precious metals miners and junior miners) makes the point clearly enough; juniors rallied and
others didn’t.
More important than the GDXJ move in percentage terms was the volume traded on Friday,
with several stocks seeing outsized trading for the first time in a long time. Potentially weighting
adjustments (BTO leaving the index make for new balances, for example) but it’s unlikely to be
even half the story, there was all signs of fresh
cash moving around. And adding to the mood,
just one day after featuring the Peru IGBVL
“general” index on the blog (24) and noting
that it was back under 20,000, a level that’s
seen rebounds on several occasions in the past
two years, on Friday we saw the IGBVL make
its biggest single day upmove in six months
(25). My eye stays on the IGBVL more than
other regional indices as it does a combo job of
monitoring the state of emerging markets and
the state of mining (about 60% of index
weighting is mining or mine-related) so
strength in the Lima exchange is rare without a
16

good showing from mining companies. It’s too soon to be shouting about some sort of massive
rally and we also need to see how the latest fabbo lesson in pretzel economics from our friends
in the ECB will play out in Cyprus and beyond, but there is reasonable grounds for quiet
confidence about a bottom having been reached these last few weeks, for the decent end of
the juniors market at least (as mentioned last week, Rick Rule’s call on quality juniors going up
from here but crappy juniors continuing to slide gets strong agreement from this office).
Mirasol (MRZ.v): Insider buying
Mirasol Resources (MRZ.v) is a silver exploration stock that’s had little coverage in The IKN
Weekly over the years (it’s been mentioned in passing a couple of times, nothing much) due to
the following
1) By the time I looked seriously at the stock it had already made its main discovery in
late 2009 and shot higher
2) I had difficulty buying into the hype that pushed it higher in 2010
3) Ever since the early 2011 peak in silver, the stock has fallen
4) It’s in Argentina
And it’s that fourth item that’s been the most off-putting of the lot, frankly. MRZ has all but one
of its projects (lots of exploration stage concessions and its current flagship the Joaquin JV with
Coeur) in Argentina (the other is in Chile), an address I’ve avoided for a long time (barring that
Minera IRL exposure, which I firmly believe to be an exception). I’ve just checked back and
barring the Regulus Resources (REG.v) stock inherited from the Antares Minerals spin-out, my
last Argentina exposure was in 2010. That just about proves the point.
Anyway back to MRZ and although I may not like the stock others do (e.g. Brent Cook likes the
main deposit a lot and he knows rocks), which brings us to John Tognetti of Haywood. In fact
there’s a argument to say that Tognetti is Haywood, as it’s under his direct guidance that the
company has grown to the house it is today. He’s also a big fan of MRZ and has been on board
from the early days, however our interest isn’t about the shares he’s bought in previous years
but the shares he’s bought in the last few days.
Those block trades (that also show up on the volume of the five year chart below) have moved
Tognetti’s holding in MRZ to 9.7m, or a very chunky 22% of the 44.16m total shares out in the
company.
17

No investor, highly successful or otherwise, is infallible and as we mentioned above today when
mulling over Lumina Copper (LCC.v), big mining names with previously good track records for
market success have been hit badly by Argentina exposure in the last couple of years. But no
matter my own call on the country (I say avoid) the move by Tognetti on MRZ last week is
notable and worthy of mention on these pages. Potentially Tognetti was mopping up a forced
sale and was offered the shares by a seller that would otherwise have caused strong price
pressure on the stock (after all, there’s a lot of this redemption thing going about) but we’re still
talking $5.4m of stock here and that’s a vote of confidence.
Fortuna Silver (FVI.to): Pro and anti mine locals face off
As well as the report you see below, the episode at FVI’s San José mine in Mexico (known
locally as the Cuzcatlán mine) was widely covered by the “anti” press, blogs, websites etc but
the normal bias they show makes them easy to discount. However, Mexico’s Milenio is a decent
enough balanced source so here’s a translation of this report (26) from that news outlet.
Around 200 people opposed to the Cuzcatlán mine in the municipality of San José del Progreso
were stopped while they commemorated the anniversary of the murder of activist Bernardo
Vázquez Sánchez at the gates of the mine, according to the Prodh (Pro Human Rights) Centre.
“The incidents occurred when a Public Ministry official approached to ask for information and
when he left, several members of a group associated with the mine “San José Defendiendo Sus
Derechos AC” (translation of group name, ‘San José Defending Its Rights’) blocked all access
roads with five vans, including Federal highways, to stop the free transit of the people there.”
Then they fired guns (into the air) without causing any injuries.
IKN back and a few comments. First up, here’s a photo of the protest group as taken from one
of the anti-mine activist websites (27). I count
around 30 people in shot (and the gates/fence
in the background mark the boundary of the
San José mine) which means there were
around 170 milling around somewhere else if
that Milenio report is accurate about numbers.
That may or may not be the correct number of
protesters, but overall it’s fair to say that there
weren’t many there. The protest was also
called on a pretty important anniversary for
the anti-mine protesters, that of the death of
Vázquez (which we reported in some detail
this time last year) as the antis insist that the
mine is to blame while FVI (quite rightly I
firmly believe) states that it has nothing at all
to do with what happened to the man. In
short, I’d call the group (or even the Milenio
200 figure) a poor turn-out for the occasion.
Next, there may be anti-mine protesters among locals but there’s clearly also a decent
contingent of pro-mine locals who care enough to be active with their support. This in itself
shows that there isn’t some sort of blanket rejection for FVI and its San José mine in the
locality.
However, and it’s a big one, the fact that illegal roadblocks were set up by the pro-mine
group(s) and guns were fired into the air, both tactics obviously used to intimidate (you could
even go as far as to say terrorize, given the circumstances of them being assembled to
commemorate a death by gunfire) the anti-mine people does no favours whatsoever to the
mine and its cause. Note particularly that it matters little whether the pro-mine groups have
links, officially or otherwise, to the FVI-owned mine. This kind of action can only escalate ill-
feeling, cause fear and drive sympathy towards the anti-mining groups and should be
immediately and clearly denounced by FVI/San José. It’s a story that could easily end badly for
the company, no matter if their supporters think they’re doing the right thing.
18

Sulliden Gold (SUE.to), its meeting Wednesday, its trade potential
We covered the stock last week and noted the outcome of Wednesday’s community meeting in
the Flash update of Thursday morning (see appendix 2). We even got the mooted (but not
100% predicted, even less traded) pop in the share price, as on Thursday morning there was all
the 79c and 80c you could eat but it wasn’t until the brokerages had published their anal yses
that people came for the stock and rushed it to the weekly 90c finish (an example from
Haywood here (28)). So, the move was a bit of a sleeper but it came all the same
According to the company timeline, we should now look for EIA permitting approval in July,
construction permits perhaps two months after that and then construction with a view to initial
production as soon as 2014. Of that timeline, it’s a fairly safe bet that the EIA is permitted by
the national Mining Ministry so trading around that datapoint (for example, expecting a share
price bounce) should be a safe proposition for those so inclined. Once that’s in place things
might start getting trickier. As noted in the Flash update we’re now entering a situation where
the national government green lights a project, while the regional government is lining up
against its execution. As that government is run by Gregorio Santos and is Cajamarca (think
Conga to begin with) that’s not a small matter.
At the moment this is not my idea of an investment, but on consideration there are two
catalysts that would make me revise that view:
1) Something happening politically to Santos. For example in April he’s up before the
judge on a previous charge related to kidnapping and even the death of a person in
Cajamarca at the time when he was a local “rondero” leader, not regional governor. If
that process goes badly for him he may end up in prison, which would change the
complexion of the region and its opposition to mining considerably.
2) SUE obtains confirmed financing for Shahuindo (not just letters of intent on potential
credit lines). If a bank puts up confirmed cash for the deal it will be a better signal than
any permit signed and delivered at a national level. My best guess is that it’s going to
take SUE a lot longer than its projected timeline to secure financing for Shahuindo, but
as always in this strange region I leave myself open to surprises.
Esperanza Resources (EPZ.v): The reasons to deny the mine its environmental
permit look weak
I just wish I could time the permit announcement. This link (29) takes you to the petition that’s
being used to round up support for the anti-mine case for the Cerro Jumil mine project in
Morelos State, Mexico, owned by Esperanza Silver (EPZ.v). Apparently there are 7,900 signees
so far (not bad, but neither is it an outstanding, game-changer of a number). It lists its
objections as follows (translated):
1) Because cyanide is used in the production process
2) Because 700Ha have been concessioned that will grow to 15,000 at the end of the project.
3) Because the zone will fill up with holes, infills, piles of minerals and stone.
4) Because the vibrations generated by explosions could damage parts of the Xochicalco
archeological zone.
5) Because of the concentration of gases from the now closed waste disposal dump at nearby
Tetlama, which could explode.
6) Because it would pollute the Los Sabinos river, with serious consequences for the biodiversity
and hydraulic resources for all the region.
Of that little lot, numbers 3) and 5) just sound silly. Numbers 1), 4) and 6) are almost certainly
central parts of the integrated Environmental Permit Application and will have been covered in
great detail by both company and government at a technical level. Number 2) looks for all the
world like misinformation, as the company has already said that of its 15,000 concessioned
hectares, less than 700 will be developed as the mine (which is fairly standard, as companies
will always stake around a target and keep those concessions in good order if the project
makes it to production). In other words, if that’s all the anti-mine people have it looks like a
19

fairly weak case.
In fact, the only objection I’ve found that might have some influence is seen in this photo
(widely used by the anti-mine campaigners), which shows that the Cerro Jumil mine site is in
clear view of the aforementioned archeological
remains. This could be taken as visual pollution
and might, repeat might be enough to make a
case against the mine.
I keep coming back to EPZ, even though I wrote
that as an investment it’s now classed under
“one less to worry about” due to its dilutive
looking deal with Pan American (PAA.to) (PAAS)
which has it taking three of PAA’s minor projects.
That’s because the effect of that dilutive deal
now looks as though it’s about washed through
and given a positive result from the Mexico
Semarnat enviro people on Cerro Jumil, it could
still provide a decent trading win for those
concerned. This is a story that’s a potential quick
trade set-up from here, rather than an investment, but all the same is worthy of closer
inspection than I believed just a few days ago. No position yet.
Conclusion
IKN202 is done, we close with bullet points:
• We’ll have that Gold Resource Corp (GORO) analysis with you as soon as possible
(satisfaction guaranteed or your money back). As the filing limit date is the 19th,
Wednesday morning looks most likely at this time.
• Things look slightly more appealing out there in juniorland but no singing and dancing
yet, definitely not on just two days of evidence. More than price rises, I’d want to see
the continued growth in volumes to raise hopes any higher. And I keep returning to
Rick Rule’s line about quality having bottomed while the broader junior markets will
continue to be weighed down by the crud it carries. As an observation it continues to
resonate with me as spot on, two weeks after hearing it.
• Copper fundamentals continue to suck, however. Since IKN201 I’ve mentioned in mails
to a few of you that I much prefer the look of precious metals to their industrial cousins
(and therefore neutral-ish on silver, the Jekyll & Hyde metal). The evidence of market
oversupply in copper is growing by the week (as are those inventories). And yes, that
Lumina Copper (LCC.v) piece turned into a bit of a rant, sorry ‘bout that.
• Of all open positions, the one I’ll be watching most carefully next week is B2Gold
(BTO.to) as it’s a Top Pick here, it’s a fairly chunky personal position and its action last
week (along with the settlement news in Nica, perhaps) augurs well for the near-term
future. And when it comes to quality, it oozes the stuff.
The top long-term picks are Rio Alto Mining (RIO.to) and B2Gold (BTO.to). I thank you in
advance for any feedback sent in. Flash updates will be sent promptly if required by events.
I wish you good trading fortune, ladies and gentlemen.
Otto
20

Footnotes, appendices, references, disclaimer
(1) http://www.calculatedriskblog.com/2013/03/fomc-projections-preview.html
(2) http://theleisuresociety.tumblr.com/post/45485986345/information-overload#_=_
(3) http://www.sec.gov/Archives/edgar/data/1160791/000119312513088140/d495636dnt10k.htm
(4) http://finance.yahoo.com/news/rio-alto-produce-190-000-110000356.html
(5) http://www.laprensa.com.ni/2013/03/16/ambito/138448
(6) http://finance.yahoo.com/news/impact-silver-corp-announces-commissioning-175947926.html
(7) http://www.reuters.com/article/2013/03/14/philippines-press-
idUSL3N0C604720130314?feedType=RSS&feedName=financialsSector&rpc=43
(8) http://myownmarketnarrative.blogspot.com/2013/03/lumina-copper-buyout-rumour-2013-eh.html
(9) http://www.lanacion.com.ar/1563851-se-encienden-luces-rojas-en-la-mineria-proyectos-que-ya-no-son-rentables
(10) http://online.wsj.com/article/SB10001424127887323393304578358420096574416.html
(11) http://www.rpp.com.pe/2013-03-16-lambayeque-comuneros-de-canaris-retomaran-sus-protestas-antimineras-
noticia_576661.html
(12) http://finance.yahoo.com/news/panoro-completes-c-15-million-121800336.html
(13) http://finance.yahoo.com/news/nevada-copper-corp-north-deposit-120000335.html
(14) http://www.emol.com/noticias/economia/2013/03/15/588575/empresa-del-brasileno-eike-batista-confirma-que-
abandona-proyecto-minero-en-chile.html
(15) http://business.financialpost.com/2013/03/14/barrick-says-pueblo-viejo-gold-shipment-halted/
(16) http://www.4-traders.com/XSTRATA-PLC-4003779/news/Peru-Mining-Group-Says-Development-to-Become-More-
Expensive-16541026/
(17) http://radio.uchile.cl/noticias/199447/
(18) http://www.lanacion.com.py/articulo/117000-trabajadores-de-mayor-minera-de-cobre-de-chile-convocaran-a-
huelga.html
(19) http://www.larepublica.pe/16-03-2013/arequipaproyecto-tia-maria-no-cuenta-ni-contara-con-licencia-
social?utm_source=dlvr.it&utm_medium=twitter
(20) http://www.horizonteminero.com/noticias/mineria/2248-senace-dara-luz-verde-a-estudios-ambientales-desde-abril-
de-2014.html
(21)http://www.analitica.com/va/sintesis/internacionales/2993475.asp
(22) http://www.latia.org/
(23) http://www.emaoflondon.com/
(24) http://www.incakolanews.blogspot.com/2013/03/chart-of-day-is_14.html
(25) http://gestion.pe/mercados/bvl-cierra-su-mayor-alza-porcentual-diaria-mas-seis-meses-2061596
(26) http://www.milenio.com/cdb/doc/noticias2011/6796c5299a5a24543edd5d41597d72db
(27) http://www.kaosenlared.net/america-latina/item/50482-m%C3%A9xico-situaci%C3%B3n-de-emergencia-en-san-
jos%C3%A9-del-progreso-oaxaca.html
(28) http://clientcentre.haywood.com/uploadfiles/secured_reports/SUEMar152013.pdf
(29) https://www.change.org/es-LA/peticiones/juan-jos%C3%A9-guerra-abud-semarnat-no-autorice-la-
explotaci%C3%B3n-de-la-mina-esperanza-en-xochicalco-morelos
Appendix 1: Flash update of Tuesday March 12th
Good evening, 10pm local time on Tuesday March 12th. Hope you're enjoying your evening (in The Americas at least).
Colossus Minerals (CSI.to)
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I've received several comments regarding Colossus Minerals (CSI.to) today, after its feature in IKN201 Sunday and its
strong move made today. Some points to make:
1) I deserve no praise for "picking" a stock that has jumped so quickly, because a) it was featured rather than
recommended and b) because of that I own no CSI myself (I remind readers that the baseline of The IKN Weekly is
what i do with my own junior miners portfolio, no more no less). Until it gets called a long no 'picking' has been done.
2) I am perfectly comfortable about being on the sidelines, watching today's move and staying on the sidelines for the
time being, too. The theoretical target and value of CSI are all well and good, but it won't be a stock that I own until at
least some of the specific risk factors discussed in last Sunday's report are resolved. I am naturally cautious and doubly
so in the current market, this won't change just because a stock has popped 20% (from what was an abnormally low
price point). I much prefer to wait until the company has de-risked and grab shares at a higher price than try to nail the
absolute bottom. If things go well for CSI it's capable of going a lot higher, not just higher.
3) Today's move seems to be a combination of the decent sector-wide bounce for oversold mining stocks (no
headwinds from fund redemption sales today) and the news...
http://www.infomine.com/index/pr/pb291385.pdf
...that ARC Fund now has a 10.2% position in CSI. ARC Fund is a mining investment fund run by the extremely smart
Alberto Arias, who is the driving force behind Sierra Metals (SMT.v) (he was very recently made chairman there). His
ARC Fund was also an early investor in Sandstorm, a company that has its own stake (via stream) in CSI, so it's safe to
assume that Arias knows the CSI story very well. Therefore the announcement today was viewed as a positive for CSI
and also implies that insiders are happy about the current risk profile and project development. Despite this
development, I underscore that I still personally prefer to wait for news that CSI is de-risking its project and its
political/community situation before making a pro-active call on the stock.
4) The cash flow valuation target shown in the NOBS report of IKN201 ($3.59) is not a definitive target for the stock. Far
from it in fact (and I invite readers to read the report carefully again, the reasoning is all there), as what it sets out to
achieve is to show what CSI is capable of as a stock under as lowball a situation as is reasonably logical if and when a
mining operation starts working. There are a lot of variables in the lowball model that could have been a lot more bullish
if I'd set out to throw sequins in your collective eyes. That's not how it works, folks, we're keeping it real but if I end up
buying CSI the target is likely to be higher because at that point i'll probably feel more comfortable about the de-risked
company (there's that word "de-risk" again, the repetition is deliberate people, there's a point being made).
Market comment
It was good to see (most of) IKN 'stocks to follow' stocks make decent moves today, though I'd like to highlight B2Gold
which traded higher on good volumes (over 11m shares traded). Also this evening (small sidebar) we have news from
OceanaGold (OGC.to) (OGC.ax)
http://www.kitco.com/pr/2225/article_03122013204355.pdf
that its hiccup with the Philippine authorities seems to have been solved and concentrate port deliveries are flowing
again, which gave the OGC Aussie listed stock a 2% pop. I'm in no rush to add to any position personally, but BTO did
look good today and it will be even better to see the strength follow through tomorrow. How gold and silver trade
tomorrow is unknown, but if the rebound continues there may be a very-near-term trade in Aurcana (AUN.v), which
looks like it's lagging the field and has a tendency to play catch-up quickly. Just one that may suit the nimbler players
amongst you.
Finally and to the short side, when considering that its annual financials are due this week it was interesting to see that
Gold Resource Corp (GORO) did not join in with the rebound party and quickly found sellers to knock it back down to
$13 after an early bounce.
Appendix 2: Flash update of Thursday March 14th
This NR from Sulliden Gold (SUE.to) this morning...
http://www.newswire.ca/en/story/1129197/sulliden-provides-update-on-shahuindo-project-permitting
...needs to be read carefully, as although the inference of a successful meeting is easy to suppose, the NR seems to
have been written very carefully and the only facts contained are that 1) the meeting was held and 2) there were 2,000
people present. By reading local media we get a different slant on yesterday's event. Here's a translation of this report...
http://www.rpp.com.pe/2013-03-13-afirman-que-audiencia-publica-en-cajabamba-fue-impuesta-por-minera-
noticia_575812.html
...from Peru's leading news/news radio station, RPP:
The director of Natural Resources of the Cajamarca Regional Government, Máximo León, said that the public audience
held this Wednesday in the province of Cajabamba, was organized by the mining company Sulliden Shahuindo, adding
that the majority of the population rejects this economic activity.
Also, he indicated that the methods the gold mining company used to explain the Environmental Impact Study were
clumsy and there was no transparency about informing how the project would be developed in the future.
Regarding informal mining, he said that the regional government was trying to formalize the activity, however the central
government had placed many barriers in its way and would have to assume responsibility.
The reference to informal mining is directly relevant here, because on Monday we saw a roadblock protest from around
60 informal miners
http://peru21.pe/actualidad/enfrentamiento-entre-policias-y-pobladores-cachachi-deja-ocho-heridos-2121256
(some reports have 200 people
http://www.larepublica.pe/12-03-2013/enfrentamiento-entre-policias-y-comuneros-deja-20-heridos
there) working around Shahuindo (the same ones mentioned in IKN201) who don't want the project to go ahead (again,
for the reasons mentioned in IKN201) that ended with 120 police officers breaking up the protest and eight protesters
hospitalized, two of those with gunshot wounds (the usual heavy-handed approach from Peru police officers, it seems).
The confrontation was organized by informal miners who want access to certain areas of the Shahuindo property to
continue, rather than environment-type anti-mining protesters, but the event has still caused antipathy amongst locals by
all reports. It's also worth noting that the informal miners planned a march on the meeting yesterday but were stopped
by a contigent of around 300 police officers protecting the area where the meeting took place.
22

The news from SUE.to today is that it's likely to be taken at face value and a strong positive for the company and its
share price. However, it's clear that the NR doesn't contain the whole story and the main issue faced by SUE.to now is
national approval versus local and regional opposition. The social meeting will be deemed to have taken place by Peru's
national level mining ministry, who can then wash their hands of the issue and approve the environmental permit (that's
their job). However we're now seeing the troublesome regional government of Cajamarca take a position against the
project (additionally, the pain in the butt governor Gregorio Santos earlier this week mentioned the protests and police
violence, saying that any project that causes such issues is unworkable). The regional government is, in a de facto
manner, taking the side of the informal miners who work the area around Shahuindo and the situation brewing is one of
potential conflict, a mini-Conga if you like.
The bottom line is that Sulliden (SUE.to) will probably see a pop in its share price today BUT the situation is far from
clear once the near-term reaction has washed through. The carefully worded NR and the immediate negative comments
from regional leaders after the meeting are offered as evidence. This is not a story I'd buy and any early share price
pop may turn out to be a fade. If you're nimble enough and have a better eye for momentum trading than your author
then it may be possible to trade the open today, watch SUE go higher and quickly sell for a profit, however I stress that
this seems very high risk to me personally and there's no way I'd be interested in that kind of trade.
Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-ene-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
Fortuna Silver FVI.to sep'12 C$1.07 03-may-09 C$5.32 397.2% sell call $6.17/ Mar25
Strait Minerals SRD.v oct'12 C$0.125 09-dic-11 C$0.12 -4.0% closing coverage til FY13
Sunward Res SWD.to oct'12 C$1.47 13-mar-11 C$1.21 -17.7% sold, took loss
Gold Res Corp GORO oct'12 U$21.47 09-sep-12 U$17.40 19.0% Short trade closed
Yellowhead Min. YMI.to nov'12 C$1.00 01-abr-12 C$0.63 -37.0% sold, took loss
Primero Mining PPP nov'12 U$7.26 07-oct-12 U$6.73 7.3% Short trade closed
Bear Creek Min. BCM.v nov'12 C$3.38 07-nov-11 C$3.72 10.1% Took small profit
Vena Resources VEM.to dec'12 C$0.70 31-may-09 C$0.18 -74.3% Failed trade (caps F)
Galway Res GWY.v dec'12 C$2.19 24-nov-12 C$2.30 5.0% closed good ST arb trade
Stocks To Follow Closed Positions, 2011
Closed in 2011 closed close PPS
Sunward Res SWD.v jan'11 C$1.05 21-nov-10 C$1.63 55.2% target made, trade closed
Serengeti Res SIR.v mar'11 C$0.245 05-dec-10 C$0.285 16.3% sold pre-tgt, ST trade fail
Fronteer Gold FRG apr'11 U$2.37 03-may-09 U$15.24 543.0% buyout, trade closed
Minefinders MFN apr'11 U$9.09 07-nov-10 U$16.89 85.8% target made, trade closed
Metalline Min. MMG may'11 U$1.04 26-jan-11 U$0.89 -14.4% exit, resource disappointed
Peregrine Met PGM.to jul'11 C$0.87 06-mar-11 C$2.60 198.9% buyout offer, closed
Dynasty Metals DMM.to jul'11 C$4.20 03-may-09 C$2.85 -32.1% Sold. Fail. Move on.
Aura Silver AUU.v aug'11 C$0.22 13-oct-10 C$0.16 -36.4% Bad pick. Take loss
U.S. Silver USA.v aug'11 C$0.52 26-jan-11 C$0.71 36.5% closed to make room
B2Gold Corp BTO.to sep'11 C$2.80 12-may-11 C$4.27 52.5% target made, trade closed
Bear Creek Min. BCM.v sep'11 C$3.80 27-may-11 C$4.17 9.7% macro sell call victim
Minefinders MFN sep'11 U$14.70 10-aug-11 U$15.15 3.1% macro sell call victim
Great Panther GPR.to sep'11 C$3.03 22-aug-11 C$2.64 -12.9% macro sell call victim
Fortuna Silver FVI.to sep'11 C$1.07 03-may-09 C$5.36 400.9% sold 20%, macro sell call
Focus Ventures FCV.v nov'11 C$0.40 20-apr-10 C$0.20 -50.0% cut losses, bad trade
Regulus Res. REG.v dec'11 C$1.17 14-aug-11 C$0.52 -55.6% cut on news of poor 43-101
2009 and 2010 closed positions in appendices below
23

Stocks To Follow Closed Positions, 2010
Closed in 2010 closed close PPS
B2Gold Corp BTO.to Jan'10 C$0.88 08-nov-09 C$1.49 68.2% target made, trade closed
Radius Gold RDU.v Jan'10 C$0.18 23-aug-09 C$0.40 122.2% target made, trade closed
MAG Silver MVG mar'10 U$5.60 23-nov-09 U$7.28 30.0% closed in pdac week
Riverside Res RRI.v mar'10 C$0.435 20-sep-09 C$0.60 37.9% closed in pdac week
Amarillo Gold AGC.v mar'10 C$0.81 31-may-09 C$0.70 -13.6% closed in pdac week
B2Gold Corp BTO.to apr'10 C$1.24 18-feb-10 C$1.50 21.0% target made, trade closed
Lumina Copper LCC.v apr'10 C$0.84 14-jun-09 C$1.55 51.2% total position now sold
Troy Resources TRY.to may'10 C$1.10 03-may-09 C$2.25 104.5% sold on negative results
AuEx Ventures XAU.to may'10 C$2.51 24-may-09 C$3.38 34.7% trade closed
Nevada Copper NCU.to jun'10 C$3.27 14-mar-10 C$2.03 -37.9% need to lower Cu exposure
Carpathian Gold CPN.to jun'10 C$0.39 14-mar-10 C$0.35 -10.3% too exposed to cap raising
Amerix PM Corp APM.v jun'10 C$0.065 08-nov-09 C$0.05 -23.1% victim of macro bear
Antares Minerals ANM.v jun'10 C$1.42 06-dec-09 C$2.10 47.9% sold half
Vena Resources VEM.to jun'10 C$0.37 31-may-09 C$0.23 -37.8% sold half
Minera Andes MAI.to sep'10 C$0.75 28-jul-10 C$0.95 26.7% ST trade closed
Gold-Ore Res GOZ.to sep'10 C$0.52 01-aug-10 C$0.75 44.2% target made, trade closed
B2Gold Corp BTO.to sep'10 C$1.45 25-may-10 C$2.01 34.5% target made, trade closed
Blue Sky Uran BSK.v oct'10 C$0.41 19-may-10 C$0.22 -46.3% v small v bad trade closed
Dia Bras Expl DIB.v oct'10 C$0.14 30-aug-09 C$0.35 150.0% target made, trade closed
S. Amer. Silver SAC.to nov'10 C$1.38 24-oct-10 C$1.60 -15.9% loss on short, small fail
Ventana Gold VEN.to nov'10 C$7.92 27-jun-10 C$13.51 70.6% trade closed on buyout
Lumina Copper LCC.v nov'10 C$1.42 11-aug-10 C$3.65 157.0% trade closed
Antares Minerals ANM.v dec'10 C$1.42 06-dec-09 C$8.40 491.5% trade closed
Rio Alto Mining RIO.v dec'10 C$0.69 23-mar-10 C$2.16 213.0% trade closed
Coro Mining COP.to dec'10 C$0.585 03-oct-10 C$1.24 112.0% target made, trade closed
Stocks To Follow Closed Positions, 2009
Closed positions closed closing PPS
Cardero Res CDY/CDU.to May'09 U$1.20 03-May-09 U$0.87 -27.5% sold on negative news
Eastmain Res. ER.to May'09 C$1.04 06-May-09 C$1.315 26.4% trade closed
Radius Gold RDU.v May'09 C$0.165 03-May-09 C$0.235 42.4% trade closed
Latin Amer Min. LAT.v May'09 C$0.12 03-May-09 C$0.158 29.2% trade closed
Aquiline Res. AQI.to July'09 C$2.03 16-Jun-09 C$1.68 -17.2% took loss, bad timing
Chariot Resources CHD.to Aug'09 C$0.20 12-Jul-09 C$0.415 107.5% trade closed
Castle Gold CSG.v Sep'09 C$0.64 02-Aug-09 C$0.60 -6.3% ST trade didn't work out
Guyana Goldfields GUY.to Sep'09 C$2.30 12-May-09 C$4.50 95.7% profit taken
Los Andes Copper LA.v Sep'09 C$0.09 21-Jun-09 C$0.09 0% trade closed
Pediment Gold PEZ.to Oct'09 C$0.80 09-Aug-09 C$1.00 25.0% trade closed
Minera Andes MAI.to Oct'09 C$0.68 03-May-09 C$0.71 4.4% too much bad news
Dynasty Metals DMM.to Nov'09 C$4.18 03-May-09 C$6.01 43.8% half sold
Rusoro Mining RML.v Nov'09 C$0.55 03-May-09 C$0.57 3.6% underperformed
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
24