Beacon Rock Research Nuggets

Northern Freegold Resources Ltd. (TSX – V: NFR) announced an initial NI 43-101 compliant resource on its Revenue Target Deposit at its 100% owned Freegold Mountain project in the Yukon.  The Inferred resource has an estimated 3.7 million gold equivalent ounces (at 1.1 g/t gold equivalent).  This is in addition to the Indicated gold equivalent resource estimate of 1.4 million gold equivalent ounces and an Inferred resource estimate of 900,000 gold equivalent ounces at its adjacent Nucleus Zone.  Both the new Revenue deposit and the existing Nucleus Zone are open to expansion laterally and at depth.

The Revenue deposit resource was based on 54 drill holes (10,582 meters) through 2011.  The Revenue deposit resource estimate of 101 million tonnes is composed of 1.1 million ounces of gold, 10.2 million ounces of silver, 286.9 million pounds of copper and 89.6 million pounds of molybdenum (grading 0.34 g/t gold, 3.14 g/t silver, 0.13% copper and 0.04% molybdenum using a gold equivalent cut-off grade of 0.5 g/t gold).  The initial Inferred resource is at levels near or exceeding the upper range offered in the earlier Target Deposit estimate range.  The initial Revenue deposit resource estimate covers only a small portion of the potential 8 kilometer area from the Nucleus Zone to the Revenue/Stoddart gold-copper porphyry.  We believe the direction of the project is competitive with the nearby Western Copper and Gold Corporation (Amex: WRN) Casino deposit. 

Wednesday, January 18, 2012 - 15:37

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Beacon Rock Research Companies

MineFinders (AMEX:MFN TSX:MFL)

Alexco Resources (AMEX:AXU TSX:AXR)

Paramount Gold (AMEX:PZG TSX:PZG)

Etruscan Resources, Inc. (TSX:EET)

Brigus Gold (AMEX:BRD TSX:BRD)

Exeter Resources (AMEX: XRA TSX:XRT)

Seabridge Gold (AMEX:SA TSX:SEA)

Santa Fe Gold (SFEG:OB)

Acadian Resources (TSX:ADA)

Mercator Minerals (TSX:ML)

Nova Gold Resources (AMEX:NG TSX:NG)

Sonic Foundry (NASDAQ:SOFO)

Northern Freegold Resources (TSX.V:NFR)

Goldbrook Ventures (TSX.V:GBK)

South American Silver (TSX:SAC)

ATAC Resources Ltd.(TSX.V:ATC)

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North Bay Resources Inc. (OTCQB: NBRI) has rehabilitated over a mile of underground workings and has broken through to what was the most productive area of the mine when it was unexpectedly forced to close in 1942 by order of the U.S. Government pursuant to War Production Board Order L-208....

Namibia Rare Earths Inc. has established an exceptional heavy rare earth resource at Area 4 of its Lofdal project in Namibia. They are scheduled to complete a metallurgical study in 1Q13 with potential of reducing the cutoff grade and increasing resources to Measured and Indicated.

Namibia Rare Earths Inc. (TSX: NRE) released final results for their 2012 exploration drill program at their heavy rare earth Lofdal project and provided an update on expanding exploration activities in Namibia. The primary purpose for the release was to provide details on several new...

We recently visited Corvus Gold Inc.’s (TSX: KOR; OTCQX: CORVF) North Bullfrog gold project in southwest Nevada and were interested to find a surprising blend of potential near to long-term catalysts for stock price appreciation. As expected, the project benefits by being located in one of...

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Corrado De Gasperis

Market Commentary

Individual ownership of physical gold is a most enlightened manifestation of the pursuit of happiness. Gold acquired with after-tax income is a personal, political, and even spiritual achievement. Holding physical gold in ones hand is as precious as a new grandparent holding their newborn grandchild, the hand of a high school sweetheart, or clasping one’s own hands in thankfulness of not getting what one may deserve. In short, ownership of physical gold may be, in the moment, appreciated for its beauty and meaning, tangible evidence of the enjoyment of free will, and an indicator or measurement of lifetime achievement.

We have forecast gold prices for 2011 ranging from $1,300 to $1,500 per ounce, with potential to reach $1,600 at some point during the year given a strong tail wind. This is not significantly more aggressive than our 2010 gold price forecast of $1,200 to $1,400 per ounce, with potential to reach $1,500 by the end of 2010. We may be guilty of being guarded compared to more extreme views of bursting commodity bubbles, or on the other hand, “End of America” night terrors. For the most part, statistically speaking, even in the days of black swans circling overhead, reversion to the mean has a place, and pendulums pull toward the equilibrium. Our objective is to help provide investors interested in gold and silver an opportunity to hear a point of view, and to make decisions for themselves based on their individual abilities and willingness to accept risk.

We were pleased with our estimate for gold in 2010, having predicted gold between $900 and $1,200 with the potential to reach $1,500 should some catalyst present itself. On average gold traded over the high end of this range, but stalled there due to a sluggish economic recovery and a strong dollar. But late in the year, with Fed Chairman Ben Bernanke pursuing deflation like Moby Dick, wielding a second quantitative easing program of $600 billion to harpoon falling prices, gold scaled up short of our upside outlier estimate. Since the beginning of 2011, gold has corrected to the pleasure of sharp traders, while we maintain a longer view for higher gold prices beyond the near term.

It has been about a month since Fed Chairman Ben Bernanke gave his December 5th, 2010 interview on CBS’s 60 Minutes ( It has taken about a month to calm down and ponder the interview, placing it in its historic context, to understand what truths may be uncovered, and to derive whatever investment insights might be extracted. We suspect this one interview may best explain his actions in the crisis, as well as provide economic insights into his present direction that will impact 2011, and quite possibly the next decade.

Optimism and pessimism in society are relatively balanced. One or the other of these sentiments will gain momentum or an edge from time to time in the nation’s psyche. In the public sphere this can translate into stronger than normal movements in markets and politics. When the adherents of one of these forces become dominant they are naturally less willing to absorb information that runs contrary to their orientation and view of the world.

Gold, taken in correct dosages to cure the ills which plague the economy and future financial security may be just what the doctor ordered. But this remedy administered without following proper protocols may increase the incidence of unwanted side effects such as nausea, vomiting and loose stool. Taken to excess, addiction may follow, and the antidote may prove to be a gateway to harder substances.

The outcome of the race for the U.S. Senate in Massachusetts has made our 2010 outlook for gold turn from grey to Brown. Grey is simply a mix of black and white, something between the two extreme “either-or” outcomes. Brown, on the other hand, takes us out of the grey area and onto the color wheel, seen by us non-artistic types, and is a more complex shadow of the political primary colors of blue, green, and red. As the analysis of the political color chart receives attention of politicos, its effect on the economic canvas will be to slow the extreme deficit-expanding legislative brush strokes that made higher gold prices in the mid to long-term more or less certain.

Gold has appeared to have stabilized at a level above US$1,100, close to a recent 52-week and record high. For those following the price of gold, this is in line with annual increases over most of the last decade. It also coincides with seasonal variations in the metal’s price. Typically, due to demand from metal fabricators in Asia (China, India, and the Middle East) the price of gold tends to increase from late summer and early fall through the late winter and early spring months of the following year. This pattern was broken in 2009, quite possibly due to the unhealthy global economy, when the price of gold maintained more or less steady rates of appreciation to the present.

The news last Wednesday coming on the cusp of Thanksgiving celebrations in the U.S. should serve as a reminder of the globalization of risk and the importance of fundamentals in disparate locations around the world. While Dubai World’s credit crunch was “expected” according to some analysts, the speed and impact of the news was certainly noteworthy.

The meeting of the Asia-Pacific Economic Cooperation (APEC) group in Singapore may provide an opportunity to reflect on the direction that the U.S. Administration is now taking in international relations and economic affairs. Despite talk of a strong U.S. dollar by Treasury Secretary Timothy Geithner during his trip to Asia, as well as President Barrack Obama’s comments while in China, events surrounding APEC may be instructive for understanding the potential for the further currency devaluation, a slower global economic recovery, and higher gold prices.