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Orvana Schedules Third Quarter Conference Call

Orvana Minerals Corp. (“Orvana”) (TSX:ORV) has scheduled a conference call for analysts and investors to discuss its Third Quarter 2010 financial results and provide an update on Orvana on Monday, August 16 at 10:00am Eastern Time. A news release on the results will be issued after market close on August 13, 2010.

Roland Horst, Chief Executive Officer and Malcolm King, Vice President and Chief Financial Officer will be presenting the third quarter results and update on Orvana which will be available on the Company website (www.orvana.com). Key Orvana management will also participate and be available to take questions at the end of the call.

To participate in the call please dial: +1-416-340-2217 or North American Toll Free 1-866-696-5910. Passcode: 7167756#.

A replay of the conference call will be made available on the Company website with the presentation.

Full release

Avion Gold Awards EPCM Contract – Process Plant Capacity To Double In 2012

Avion Gold Corp announces the commencement of its planned 100% capacity upgrade at its Tabakoto/Ségala operations in Mali, West Africa by awarding an Engineering, Procurement, Construction, Management (“EPCM”) contract to GENIVAR Limited Partnership of Montreal. Avion plans to increase plant throughput from 2,000 tonnes per day to 4,000 tonnes per day. This project is anticipated to be completed in 2012.

Activities during 2010 will focus on detailed engineering analysis, and ordering of long lead time equipment. Most of the construction will take place in 2011, with commissioning planned in 2012.

Commenting on the EPCM contract, Mr. John Begeman, Avion’s President and Chief Executive Officer, stated: “GENIVAR has a proven track record of building new process plants, and plant expansions, in West Africa. The EPCM contract is a major step towards Avion achieving its goal of increasing gold production to 200,000 ounces per year”.

Full release

Summer Sale on Gold Stocks

By Jason Hamlin, on August 9th, 2010

Gold has bounced back from the recent correction to reclaim the $1,200 level and looks poised to make new highs in the coming weeks. While the price of gold is just 5% from its all-time nominal high of $1,261, many of the best mining companies are 20% or more below their recent highs. If the next few months play out the way I expect, it could be a very profitable ride for those who establish positions ahead of the herd.

With the government ready to release the next round of quantitative easing (QE 2.0) amidst concerns of the economy slowing, we are likely to see continued weakness in the dollar and continued inflation in cash-based markets. While credit-based markets will rightfully continue to deflate, I expect gold and silver prices to begin a powerful new upleg very soon.

In addition, while I believe the economy will see diminishing returns from government stimulus, QE 2.0 is likely to succeed in giving the markets one more boost or at least helping to keep the ship above water a bit longer. If I am correct, gold and silver stocks stand to benefit enormously from this confluence of forces (dollar weakness, rising commodity prices, flat to increasing equity markets). Therefore, while I always like to have physical metal as a base, we should be able to generate some serious profits in the next year by taking advantage of the current sale on mining stocks. Purists can then sell the rally and convert the paper profits into considerably more physical gold and silver than if they were to simply buy the metals now.

Let’s take a look at a few of the major mining stocks that might be under-appreciated by the market at this juncture and offer a favorable risk/reward set up.

Yamana Gold (NYSE: AUY)
Yamana stock would need to advance 40% from its current price to reclaim its 2010 high. Q2 revenues were up 48%, mine operating earnings were up 78% and production grew by 5%. Yamana produced 930,000 ounces of gold in 2009 and is on track to produce between 1,030,000 to 1,145,000 ounces in 2010.

Goldcorp (NYSE: GG)
Goldcorp stock would need to advance 18% from its current price to reclaim its 2010 high. Q2 net earnings were $828.3 million, or $1.13 per share, compared with a net loss of $231.6 million, or $0.32 per share, in the second quarter of 2009. Production increased by 5% versus year ago, although it was down 12% versus the first quarter.

OceanaGold (TSE: OGC)
Oceana stock would need to advance more than 20% from its current price to reclaim its 2010 high.
Q2 production was down versus year ago but up versus Q1. Revenues rose 45% and operating profit nearly tripled, but earnings were down as the company spent $57 million to close its hedge book in April. 2010 production is estimated at 270,000 – 290,000 ounces, which is pretty impressive for a company with a market cap of just $650 million. Fundamentals are expected to improve in the 2nd half of the year.

NovaGold (AMEX: NG)
NovaGold stock would need to advance 37% from its current price to reclaim its 2010 high.
The company has one of the largest reserve/resource bases of any junior or mid-tier gold company, with proven and probable reserves of over 33 million ounces. The Donlin Creek project in Alaska is one of the world’s largest undeveloped gold deposits and many analysts believe NovaGold is a likely takeover target for Barrick or another major producer. The company secured financing this year from both Soros and Paulson at $5.50 per share, which has given investors further confidence in the company’s prospects.

Seabridge Gold (AMEX: SA)
Seabridge stock would need to advance 42% from its current price to reclaim its 2010 high.
Another explorer sitting on a massive deposit of over 50 million ounces, with 30 million ounces now proven and probable reserves. The company currently has a market cap of just over $1 billion, but many analysts believe the company is worth somewhere in the $4 billion to $14 billion range. Indeed, average consensus analyst estimates are for a target share price of $72.

Sentiment towards gold and silver stocks has turned bearish over the past few months. As a contrarian investor, this is precisely the time that I want to add to my positions with prices temporarily depressed. We are heading into the high season for precious metals, as well as the Indian wedding season. Demand is likely to shoot higher in the coming months and I continue to believe that gold will end the year in the $1,300 – $1,500 range. If I am correct, share prices for gold miners should also make new highs, which could represent some hefty percentage gains between now and year end. The Summer sale is likely to end soon, so take advantage while you still can.

This article is written by Jason Hamlin and with his kind permission, O B Research has been privileged to publish his work on our website. To find out more about his work, please visit:


2011 – The Year Of Gold?

by O B Research

While the Central Bank Gold Agreements have succeeded each other outlining central bank’s gold sales, less than two tonnes of gold has been sold since the last agreement was implemented on Sept 27 2009 through the end of May this year, and this from an annual quota of 400 tonnes.

The ECB and 18 other central banks signed the third 5-year agreement on gold sales (CBGA 3). There were four important statements in the agreement:

  1. Gold remains an important element of global monetary reserves
  2. The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted program of sales over a period of five years, starting on 27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 metric tons and total sales over this period will not exceed 2,000 metric tons
  3. The signatories recognize the intention of the IMF to sell 403 metric tons of gold and noted that such sales can be accommodated within the above ceilings
  4. This agreement will be reviewed after five years

The key here is the IMF sales and how much they have disposed of up until today, and how much that is left for them to sell during this 5 years agreement. We know that the IMF sold 200 tonnes to India, 10 tonnes to Sri Lanka and 2 tonnes to Mauritius for a total of 212 tonnes. This leaves IMF another 191 tonnes to sell until the end of the agreement in Sept 2014.

IMF have reported sales in the open market this year, and for the period ending late June, they have disposed of 71 tonnes of gold. With the rate they are selling gold so far, this suggests that the IMF might be completely done with their quota by the end of 2010 (assuming an average sale rate of 17 tonnes/month).

What’s next?
The question that we are asking ourselves, what will happen next? What will happen to the price of gold when the IMF stops selling gold into the open market? For years now, up until recently, western central banks have been adding 400 tonnes/year to the total gold production of 2,500 tonnes/year. The central banks have on a yearly basis added around 15% of supply and the price of gold has had a steady rise under these circumstances.

We have not seen any signs of central banks switching into selling mode again and the IMF have not said to be planning any more sales. Besides, if the IMF decides to make more sales, this would need to be approved by many parliaments including the US Congress, which would take some time.

To drastically remove 15% of annual supply can have very interesting effects on a market. With no sign of demand declining, we come to the conclusion that 2011 could be the year when we see the big outbreak for the price of gold. Our general advice is to keep 5-10% of your overall portfolio in physical gold, and we see no reason to change that view.

Team O B Research

(Sources: www.mineweb.net & www.ibtimes.com)

2011-The Year Of Gold?

Avion Gold Produces 8,770 Ounces In July 2010

Continues on Track to Meet 2010 Production Targets.
 Avion Gold Corporation announces July 2010 monthly production of approximately 8,770 ounces of gold from its Tabakoto/Ségala operations in Mali, West Africa. Year to date gold production for 2010 is approximately 46,700 ounces.

In July 2010, Avion processed 59,800 tonnes of ore at an average grade of 4.84 g/t Au, with a 94.3% mill recovery, for gold production of 8,770 ounces. Third quarter production remains forecast to be approximately 20,000 ounces of gold.

Commenting on the production results, Mr. Andrew Bradfield, Avion’s Chief Operating Officer, stated: “In June and July, Ségala pit ore was supplemented with high grade ore from a small pit mined within the existing Tabakoto open pit. Production from this small Tabakoto pit is now completed. Avion continues on track to produce between 75,000 and 85,000 ounces of gold in 2010”.

Equipment and supplies that are required for underground mining are on route to Tabakoto. Portals are expected to start in late Q3 or early Q4, depending on when the mining equipment arrives at the mine site.

The Company has completed most of the infrastructure and roadways necessary to mine the Dioulafoundou deposit with a plan to commence mining the deposit beginning in mid-October of this year, after the rainy season.

For full pressrelease, see this LINK

Team O B Research