Let the Gold Surge of 2011 Begin
Here is my write-up on gold's latest breakout, and the fascinating role that silver is presently playing in gold's price dynamics.
Excerpt: "With the tension that was building in the slingshot tether, either gold's failure to break higher would increasingly pull downward against silver's impressive momentum, or silver would retain the lead and pull gold into a more convincing breakout. The latter occurred, of course, and I believe that the immense fundamental strength supporting silver's price advance has handed silver the leash in terms of which metal is leading the other. I expect that to continue, with possible pauses along the way, until silver reasserts its long-term historical price relationship to gold ... just as it did in 1980 at 16:1."
In other news, please keep an eye on my last blog post highlighting Alexandria Minerals. I have extended an invitation to the company for someone to come in and interact with the community directly, just as we did for Caza Gold in the second post of the series. But to make it happen on such short notice, they may need to see whether or not the community is sufficiently interested.
So please, if you're interested in having someone from, Alexandria Minerals join our collective discussion of the company here, please make that interest known either here, or in the original Alexandria Minerals post. I will indicate in a comment here if someone does make an appearance.
No promises, as I've only just sprung this on them today. I certainly don't want them to feel pressured into participating. What I do want is for them to see just how eagerly our community wishes to gain further insight into this compelling microcap gold explorer. So make some noise, Fools. :)
I also wanted to acknowledge and thank Endeavour Silver's VP for Corporate Communications, Hugh Clark, for registering as a Fool and posting a comment to my blog post here. He was also kind enough to follow up on a question posed by JBay76 regarding what happens to cyanide used in mining operations. Here is his response:
Hi Christopher – With some help from the guys at the process plant in Durango, here’s the answer to the very good question from your reader.
To answer your direct questions, we use about 3 kilos of cyanide per metric tonne of ore, or 6.6 pounds of cyanide per 2,205 pounds of ore. We recover and re-use about 70% of the chemical and the remaining 30% ends up in the tailings dam. Once exposed to sunlight at the tailings dam, the cyanide soon degrades into a benign, harmless material.
We are upgrading our tailings facility to what is called “Dry Stack” for a number of reasons. One of the reasons will be the recovery of the cyanide will jump from 70% to 90%. This is significant to us, not only for environmental reasons, but will provide us additional cost reductions. The upgrade is scheduled to be completed in Q3 2011.
I trust this helps.
Hugh Clarke, VP Corporate Communications
Endeavour Silver Corp.