Beacon Rock Research Nuggets

 Northern Freegold Resources (TSX: NFR) is making good progress on its 2010 exploration at its Freegold Mountain project in the Yukon Territory.  Northern Freegold Resources has completed 3,000 meters of 4,500 meters of reverse circulation drilling targeted to increase its Nucleus gold deposit and 4,000 meters of its 5,500 meters of reverse circulation drilling at the adjacent Revenue copper-gold porphyry target.  We anticipate a steady stream of drill results which may prove significant.  We suspect that the proposed Titan 24 Deep Geophysical Survey may provide potentially more significant information.  Reverse circulation drilling tests only the top 150 meters while the Titan 24 survey may provide insight to depths of 750 meters.  As the Titan 24 is recognized by major mining companies for qualifying interest in large copper porphyry projects, should the survey to commence in September successfully identify potential for a copper porphyry, Northern Freegold Resources’ Freegold Mountain project’s investment potential may be significantly increased.  

Tuesday, August 10, 2010 - 21:03

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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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Planet Resource Recovery, Inc. (Pinksheets: PRRY) was founded with the goal of developing eco-friendly technologies for the re-covery and remediation of the planet’s resources. While early in development, these unique technologies have potential for rapid sales growth and broad application...

The development of Alexco’s mine and mill at Bellekeno is on schedule for completion for commissioning and start-up of the mill in the third quarter of 2010. The issuance of the Type A Water Use License is the last major step after completion of the mill and mine to commence operation. The...

Minefinders Corporation Ltd. (NYSE AMEX: MFN, TSX: MFL) commenced commercial production at its Dolores gold-silver mine near Chihuahua, Mexico in May of 2009. At that time, the mine was forecast to produce over 1.7 million ounces of gold and 64.4 million ounces of silver from heap-leach...

International PBX Ventures, Ltd. (TSX Venture: PBX) was our best “new idea” from the recent investment conference in Vancouver, BC. Our last “new idea” from the San Francisco gold show was ATAC Resources Ltd. (TSX Venture: ATC) which recently closed at about C$1.76 per...

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Rich Media Presentations and Videos

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Market Commentary

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.

The jump in the price of gold Tuesday to a record $1,083.30 per ounce, following the announcement of the $6.7 billion sale of 200 metric tons of gold by the International Monetary Fund (IMF) to India’s central bank, should serve as a clear indication to U.S. investors that they are no longer the center of the economic universe. It is evident that occupants of closed systems become more unstable over time. This includes investors within the United States, and potentially more important, the occupants within the Beltway in Washington D.C.

It is becoming clearer that higher gold prices are tracking prospects for further devaluation of the U.S. Dollar. This is a result of the falling relevance and global stature of the U.S. economy, military and political cohesiveness. The stability of gold as a currency provides one of the best and most immediate polls on the direction of a nation’s future.

Record liquidity in the markets has temporarily welded the optimism of both bulls and bears in stocks and commodities. TheDow closed at 9712.28, up 15% in the third quarter, the best quarterly performance since 1998, and up 52% from the March bottom. Gold appears to have stabilized above $1,000 per ounce, the highest level since March of 2008 during the Bear Stearns meltdown. There may be a showdown for stocks and commodities, with High Noon rapidly approaching.

The gains recognized in the stock market may be short lived. Despite reactivated liquidity moving into the stock market, a loss of confidence in discounted future earnings may lead to a correction in the near term. If rapid growth in the U.S. economy is slow to materialize, and the ranks of the “long-term unemployed” continue to swell, the Federal Reserve will become increasingly frustrated in its mission to achieve “full employment.”

Observation following a tumultuous political summer season: the time honored pattern of a summer correction in the gold price has been broken. Over the last seven years, gold has followed the seasonal buying patterns of China and India. Accordingly, gold prices increase from higher demand beginning in late summer continuing through early spring of the following year, and remain flat or decline until the cycle is repeated.