| 13 June 2012 - Weathering summer storms as gold exploration field programs develop |
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Weathering summer storms as gold exploration field programs develop By Sara Patterson from http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=153193&sn=Detail&pid=102055 CHARLOTTE, NC - For the vast majority of the population, Seasonal Affective Disorder strikes sometime in deepest-darkest winter, a product of short days and bleak weather. In the natural resource sector, however, the malady settles in sometime around May-and by the time leaves begin to fall and share process begin to rise, most of us are certifiable. The cause, of course, is the same perfect storm that many manage to forecast yet few board up against. Markets go quiet and dull, former peaks sanded roughly down by a pervasive Sell in May and Go Away mentality. Boredom and speculation, when carelessly combined, bubble up into utter foolishness. And with Europe's fate in flux and Bernanke assuming a rigid poker face, the typically passive summer doldrums have spun themselves into frenzied tempests in teapots. All of this, of course, almost stubbornly overlooks the nuances of the sector itself. Gold, having surged through the post-Recession panic that caused it to peak near $2,000 in late 2011, seems to be settling into the $1,600-1,700 range; a position that we can likely rely on in the coming months. The yellow metal swings somewhat less dramatically these days, having at least momentarily lost its hair-trigger reactions to the faintest whispers of bailouts or hedged bets, and in this lies an unheeded reassurance. A thusly recognized value emphasizes the undervaluation of viable gold-focused companies at every level, establishing a foundation from which to evaluate juniors and majors alike on the basis of actual project merit-a concept that becomes almost foreign when we get too swept up in summer storms. Take these moody months to treat the markets as you would a tantruming child; cast a brief glance to make sure nothing's on fire, and then carry on about your day. Field seasons in many regions are nearing their height, delivering calculated results and cultivated strategies that will position explorers and developers not only for an autumnal market shift but for sustained, tangible progress-the oft-forgotten backbone of the sector itself. Now is the time to watch and listen, to know the difference between a well-targeted assay result and an aimless spray of drill holes, to gauge the viability of developing districts and cultivate an informed analysis of individual companies. The market can kick and scream and sulk to its heart's content, but at the root of it all lies the far more simple reality that in all but the bleakest of times-and these times are hardly the bleakest, lest we forget-success hinges on headway. The stories are all there, no matter how hidden by the larger hype. As examples: Lake Victoria Mining Company, sinking its roots into gold-rich Tanzania along with players including African Barrick, is in the midst of active drilling on key projects, completing a core drilling program at its Uyowa property in late May before immediately commencing drilling at its Kiabakari East project. Angkor Gold , a company centered in increasingly-lucrative and stabilizing Cambodia, strategically increased license interest and began reporting results from steadily progressing work programs, with three operating drill rigs and eight projects in various stages of development. And Brazilian Gold Corporation outlining 503,000 ounces of gold in the first resource estimate at its Jau Target in Brazil, building toward what management believes is the potential for large-scale mineralization across the company's land package. Focused in relevant, prolific regions and in the midst of established exploration and development programs, such companies-rather than panic-tinged rhetoric-could be the truest characterization of the sector's summer season. These months were perhaps never meant to be the self-fulfilling market doomsday prophecy that they have increasingly become; there should instead be a shift in focus from market speculation to tangible project development. This is not to say that market movements never warrant a close watch, but that emphasis in the quieter months should turn to the field seasons and work programs that ultimately, at a grassroots level, form the foundation of the indices that will again edge into the spotlight come autumn. There is no need, in any event, for seasonal affectation to become habit. Source : http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=153193&sn=Detail&pid=102055 |
