Accounting for this are expected yields at two projects owned by Canadian companies based in Vancouver: the Ana Paula mine owned by Newstrike Capital Inc., in the Guerrero gold belt; and the Charay gold property in western Mexico owned by Westridge Resources Inc.

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Newstrike CEO Richard Whittall

Newstrike CEO Richard Whittall was interviewed for  Mining Weekly Online and describes how Mexico is rising rapidly as a significant new bullion producer, apart from the gold by-product produced at the country’s large silver mines.

Whittall talks about the Ana Paula project Newstrike bought from Goldcorp in 2010. Ana Paula is in the Guerrero gold belt located about four hours from Mexico City. The Guerrero gold belt is a newly established gold district, hosting Goldcorp’s Los Filos complex – the largest gold mine in Mexico.

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TGR: What are you concentrating on in this market environment?

LR: I’m focusing on the more advanced-stage exploration projects over earlier stage exploration because that’s where we’re going to see the near-term price action. The gold and silver companies are getting a lot more respect than base metal companies. One of the most important criteria investors want to see now is potential for a big payoff. If they’re going to put their money at risk, they want to know there’s at least the chance of a big payoff. 

To throw out a couple of companies here to illustrate these various points, Newstrike Capital Inc. (NES:TSX.V) is an early-stage exploration company but its share price is up 2.5x in the last year. It’s getting strong support from investors even though it’s well ahead of having a resource estimate. The investor interest in that company is based on the possibility of a very large deposit that it’s drilling in Mexico. 

Click here to read the full article.

Click the link below to watch.

Newstrike Capital on BNN – November 23rd 2011

James West named Newstrike as one of the “top picks” on today’s Market Call. Click here to watch.

Click here to watch the clip, fast forward to 3:00 minute mark to see the Newstrike Capital mention.

Click here to view the clip, fast forward to 4:19 for the Newstrike segment.

The greenback fell as much as much as 1 percent against a six-currency basket after Federal Reserve Chairman Ben S. Bernanke told Congress that the central bank is prepared to provide additional stimulus to bolster the economy. Yesterday, Ireland became the third nation in the European Union to have its credit rating cut below investment grade.

“The Fed is talking about more liquidity, not less,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “That’s more money for the markets, and gold is enthused. Investors are running away from currency volatility.”

Gold futures for August delivery climbed $23.20, or 1.5 percent, to settle at $1,585.50 at 1:42 p.m. on the Comex in New York, the seventh straight gain. The previous intraday record of $1,577.40 was on May 2. The spot price of the metal priced in euros and pounds also rose to all-time highs today.

Since Dec. 1, 2008, gold has doubled as the Fed kept interest rates at a record low and governments spent trillions of dollars to spur global growth. The Fed’s second round of so- called quantitative easing, known as QE2 among investors, ended in June.

Yesterday, tonnage holdings in exchange-traded products backed by gold jumped 1 percent, the most in a year.

‘Currency Exhaustion’

“People are getting currency exhaustion,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “With the Fed mulling over a possible QE3, which will dilute the dollar, gold is the main beneficiary.”

The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose to a four-week high, led by precious metals and grains.

Gold for immediate delivery has advanced 11 percent, heading for an 11th straight annual gain, the longest rally since at least 1920.

Before today, the MSCI All-Country World Index of equities rose 1.5 percent in 2011, and Treasuries returned 3.6 percent, according to a Bank of America Merrill Lynch index. The dollar had dropped 4.1 percent against the six-currency basket.

‘Shock Waves’

Bernanke said today that a failure by Congress to raise the nation’s $14.3 trillion debt limit would lead to a “major crisis” and throw “shock waves” through the financial system.

“We’re in a very difficult financial period in the world,” Martin Murenbeeld, the chief economist at Toronto-based DundeeWealth Inc., which manages more than $50 billion, said on July 11. “The faith in paper currency is rapidly ebbing.”

Click here to read the entire article at Bloomberg.com

TOM HUDSON: While gold prices have held up relatively well over the past two months, mining stocks have drilled lower along with the rest of the stock market. That brings us to tonight`s “Word on the Street”: “gold.” Alix Steel is a reporter at thestreet.com, back with us from the NASDAQ.

HUDSON: Alix, nice to see you. Why the divergence going on in gold prices and gold mining stocks? Since May, gold futures are down about 3.5 percent, gold mining stocks down 14.5 percent. What`s going on?

ALIX STEEL, REPORTER, THESTREET.COM: Well, it`s a good question and the biggest answer I have for you is that miners are risky and investors are skittish. And aside from that, there are two other reasons. The first is the introduction of the physically backed ETF since 2004, giving investors a much safer way to buy into the gold market that wasn`t there before.

In addition we`ve seen a lot of companies have to issue shares in order to get cash to fund their project. I spoke to an equity research analyst at Standard & Poor`s who said that between 2001 and 2010 their gold has increased its shares outstanding by 86 percent. That takes a while for it to shake out of shares.

HUDSON: And I want to ask you about Barrick Gold (NYSE: ABX) in a moment, but a couple of other factors to consider with gold miners. You mentioned risk. It comes down to two things, really, cost of production, how much does it cost per ounce to get the gold out of ground, and the location of the mines, because, let`s face it, there is a lot of geopolitical risk in the world.

STEEL: Absolutely. And in terms of cash cost — total cash cost here, about $700 to $1,100 an ounce. Now what that means is that the gold price has to rise much faster in input costs like oil in order for these companies to really make money, expand their profits.

Luckily though oil is down about 20 percent from its highs, and gold is down only 2 percent, so they might get some luck there.

And then in terms of location, you`re absolutely right, they need to find safe places, such as North America and Mexico. There has been a lot of chatter in Peru and Bolivia about the threat of perhaps nationalizing mines or raising taxes on miners. And that would be a big headwind.

HUDSON: We have just one minute left here, and I want to talk about Barrick Gold (NYSE: ABX). It`s the biggest, the oldest of the publicly traded gold miners. You mentioned some of the share overhang that has plagued this stock just really within the past several weeks. What`s the outlook here from the mid-40s?

STEEL: Well, hopefully things will be looking up. I mean, for the year Barrick is down about 16 percent, and since May, about 14 percent. The company is expecting to produce on the top end about 8 million ounces of gold for cash costs under $500.

But it`s not going to have the same kind of leverage, the same kind of juice as a mid-tier miner, and a mid-tier miner being one that is producing but still exploring and growing like, for example, an Eldorado Gold (NYSE: EGO), which is expected to produce under a million ounces of gold, but for cash costs under $400. So it`s really a trade-off, how much risk do you want to take on but how much growth do you really want.

HUDSON: What about disclosures here? Any position yourself in Barrick or Eldorado, Alix?

STEEL: No stocks, just the jewelry, Tom.

HUDSON: Just the jewelry, there you go. Alix Steel. You can read the article at thestreet.com, of course, a link to it on our Web site as well. “Word on the Street,” always great to see you, Alix Steel with thestreet.com.

The Newstrike Capital segment appears at the 4:38 mark, click here to view the BNN video clip.

Listen to the Podcast to learn more about the Guerrero Gold Belt and Newstrike Capital’s Ana Paula and Oaxaca properties.

Click here to visit Mining.com and listen to the podcast.

Focusing on Newstrike’s advanced stage Ana Paula project, the article includes an interview with Gillian Kearvell, Newstrike’s Vice President of Exploration.

Click here to Subscribe to “The Northern Miner” and read the entire article.

Gold, to be sure, has treated him well. Mr. Paulson netted $5 billion in personal gains last year thanks to his heavy bet. The hedge fund manager doubled down on the precious metal in recent years, believing that the dollar would lose value.

To implement that long-term bet, he created a gold fund, which invests in gold-exposed investments like mining companies, as well as a class of shares in all of his other funds denominated in the precious metal.

At a recent investor conference in Las Vegas, Mr. Paulson reiterated his belief that gold was not a bubble, according to notes from an investor who attended the conference. Mr. Paulson said owning gold would add to returns while also protecting against inflation. He said his funds were ready for such inflation, which he sees over the next three to five years, thanks in part to the quantitative easing policy of the Federal Reserve.

Mr. Paulson recently acquired more shares in AngloGold Ashanti, according to his most recent 13F filings, which reflect Paulson & Company holdings through the end of March. Mr. Paulson told investors that AngloGold Ashanti – the third-largest gold producer in the world and the largest single holding in his Advantage Fund – was the best managed gold company in the world.

Click here to read the entire article at New York Times.com