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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (200476)	6/20/2011 12:43:30 PM
From: Nevada9999	Respond to of 313100

I think companies need the cash to capitalize future mines. Rick Rule says most mining projects presently under consideration for capitalization will not make 20% IRR and won't proceed under $1400 gold. The interview is on King World News with the Sinclair and Norcini interviews. Grades are low and metallurgy and politics are poor on most new discoveries. Legacy gold camps like Witwatersrand and Carlin are getting a lot tougher going forward. $1500 gold is not as good as it sounds. We dig 80 million ounces a year out of the ground and those reserves must be replaced (if demand continues).