Jan 10

Canadian stocks trending higher

By William Spain, MarketWatch

CHICAGO (MarketWatch) — Canadian stocks moved generally higher Tuesday, in keeping with an upward trend for their American cousins.

Toronto’s SP/TSX Composite Index

/quotes/zigman/20942 CA:$ISPTX

 rose more than 1%, outpacing the Dow Jones Industrial Average

/quotes/zigman/627449 DJIA

, lately up 0.7%.


“Risk/cyclical trades have come back into vogue today,” wrote Colin Cieszynski, analyst at CMC Markets Canada. “Stocks and commodities have posted strong gains overnight and into this morning.”

One reason could be that China reported a higher-than-expected trade surplus for December, as a result of lower imports than had been forecast, he noted. This suggests that the Chinese economy, the second largest in the world, “remains sluggish and increasing speculation that more [People‘s Bank of China] easing may be on the way.”

Further, he added, “reports that China may improve foreign access to its stock markets may also be helping to turn around sentiment toward the country. “

Shares of Canadian Pacific Railway Ltd.

/quotes/zigman/23972 CA:CP


/quotes/zigman/23955/quotes/nls/cp CP

 gained almost 1%, a day after news reports suggested that activist hedge fund manager Bill Ackman is readying a proxy fight to replace Fred Green as chief executive.

Research In Motion Ltd.

/quotes/zigman/18555 CA:RIM


/quotes/zigman/18534/quotes/nls/rimm RIMM

 added about 1% following the reception of its new PlayBook at the annual Consumer Electronics Show in Las Vegas.

Toronto-listed gold stocks were doing especially well: The SP/TSX Capped Diversified Metals and Mining Index

/quotes/zigman/24977 XX:TTMN

 rose almost 3%.

Shares of Iamgold Corp.

/quotes/zigman/14530 CA:IMG


/quotes/zigman/14515/quotes/nls/iag IAG

 spiked 3% and First Quantum Minerals Ltd.

/quotes/zigman/11596 CA:FM

  jumped 6.4%. Kinross Gold Corp.

/quotes/zigman/31886 CA:K


/quotes/zigman/31867/quotes/nls/kgc KGC

 added 2% and Barrick Gold Corp.

/quotes/zigman/12792 CA:ABX


/quotes/zigman/12772/quotes/nls/abx ABX

 popped about the same, while NovaGold Resources Inc.

/quotes/zigman/8093 CA:NG


/quotes/zigman/19253/quotes/nls/ng NG

 traded up 0.4%.


add Add $ISPTX to portfolio




add Add DJIA to portfolio




add Add CP to portfolio




add Add CP to portfolio




add Add RIM to portfolio




add Add RIMM to portfolio




add Add TTMN to portfolio




add Add IMG to portfolio




add Add IAG to portfolio




add Add FM to portfolio




add Add K to portfolio




add Add KGC to portfolio




add Add ABX to portfolio




add Add ABX to portfolio




add Add NG to portfolio




add Add NG to portfolio



William Spain is a MarketWatch staff writer in Chicago.

Jan 10

GORO Stock Seeing Many Buyers

In trading on Tuesday, shares of Gold Resource Corp (AMEX: GORO) entered into overbought territory, changing hands as high as $24.82 per share. We define overbought territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be overbought if the RSI reading rises above 70.

In the case of Gold Resource Corp, the RSI reading has hit 70.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 61.4.

Click here to find out which 9 other overbought dividend stocks you need to know about, at DividendChannel.com »

Investors could look at GORO’s 70.6 reading as a sign that the recent heavy buying is in the process of winding down, which could bring a pullback in the stock. The chart below shows the one year performance of GORO shares:

Gold Resource Corp 1 Year Performance Chart

Looking at the chart above, GORO’s low point in its 52 week range is $15.06 per share, with $31.38 as the 52 week high point — that compares with a last trade of $24.74.

Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on GORO is its dividend history.

In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.


GORO makes up 1.53% of the Latin America Small-Cap Index ETF (AMEX: LATM)

GORO operates in the Precious Metals sector, among companies like Harmony Gold Mining Co. Ltd. (NYSE: HMY) which is up about 1.3% today, and NovaGold Resources Inc. (AMEX: NG) trading higher by about 1.2%. Below is a three month price history chart comparing the stock performance of GORO, versus HMY and NG.

GORO,HMY,NG Relative Performance Chart

Jan 10

Bullish Two Hundred Day Moving Average Cross

In trading on Tuesday, shares of Barrick Gold Corp. (NYSE: ABX) crossed above their 200 day moving average of $48.63, changing hands as high as $48.89 per share. Barrick Gold Corp. shares are currently trading up about 1.5% on the day. The chart below shows the one year performance of ABX shares, versus its 200 day moving average:

Click here to find out which 9 other stocks recently crossed above their 200 day moving average »

Barrick Gold Corp. 200 Day Moving Average Chart

Looking at the chart above, ABX’s low point in its 52 week range is $42.50 per share, with $55.95 as the 52 week high point — that compares with a last trade of $48.43.

Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation from Forbes

According to the ETF Finder at ETF Channel, ABX makes up 16.63% of the Gold Miners ETF (AMEX: GDX) which is trading up by about 2.3% on the day Tuesday.

See what other ETFs contain ABX »
See what other stocks are held by GDX »

ABX operates in the Precious Metals sector, among companies like Randgold Resources, Ltd. (NASD: GOLD) which is up about 4.5% today, and IAMGold Corp (NYSE: IAG) trading higher by about 3.9%. Below is a three month price history chart comparing the stock performance of ABX, versus GOLD and IAG.

ABX,GOLD,IAG Relative Performance Chart

Jan 10

Gold in 2012 to Average $2,050/oz and Will Reach $2,500/oz

Best Regards

Jan 10

5 Gold Mining Takeover Targets For 2012

By Verena Kallas

Although high gold prices are encouraging gold miners to boost their production as much as possible in order to bring their reserves to market, gold mining stocks have broadly underperformed compared with the gold commodity price. Part of the difference is due to the greater risks faced by miners, including production delays, distribution costs and political risks, which are not priced into the value of gold as a product.

In 2011, the divergence has been greater than before: while gold appreciated for most of the year, the large miners have generally depreciated. Junior gold miner stocks, which are even more volatile than the seniors, have shown the worst performance relative to the price of gold, leaving them more vulnerable to being taken over.

In order to increase their gold reserves without the expense of exploring for new mines themselves, top producers such as Barrick Gold (ABX), Goldcorp (GG), Newmont Mining (NEM), AngloGold Ashanti (AU), Kinross Gold (KGC), AuRico Gold (AUQ) and Rio Tinto (RIO) could be interested in buying out small mining companies, particularly those with projects located in areas close to their own operations. Low interest rates should also encourage miners with large cash positions to acquire gold resources now, as long as the demand for gold still exceeds supply. This may be an even better way to play what we think will be a new price level of $2000 for gold.

A major gold deal in 2011 was the acquisition by Newmont Mining of Fronteer Gold for about $2.3 billion in cash. Another notable transaction was the $1.5 billion takeover of Northgate Minerals by AuRico Gold via a share exchange. The deal will double AuRico Gold’s production and give it a foothold in Canada, and Australia. The pending $2.4 billion acquisition by Eldorado Gold (EGO) of European Goldfields (EGFDF.PK) will help it to surpass the annual output of its rivals Agnico-Eagle Mines (AEM) and Yamana Gold (AUY).

Smaller recent deals include Agnico-Eagle Mines’s purchase of Grayd Resource (GYDRF.PK) for about $226 million in cash and shares at a 66% premium. The main attraction is Grayd’s La India deposit, which is not far from Agnico-Eagle’s Pinos Altos Gold Mine in Mexico. B2Gold (BGLPF.PK) just completed its $127 million cash-and-stock acquisition of Auryx Gold, owner of gold projects in Namibia, at a 74% premium.

The next targets in the gold sector are expected to be mostly among smaller miners with high-grade results and growth potential, as well as little or no debt and low execution risk. They include:

Extorre Gold Mines (XG): Extorre Gold Mines is a junior miner that has not yet arrived at the production phase. Its gold resources at its flagship Cerro Moro project in Argentina are estimated at 2 million ounces (Moz). Eldorado Gold is a potential suitor. It had made a bid for Andean Resources, with its Cerro Negro gold project close to Cerro Moro, but could not beat Goldcorp’s $3.42 billion offer. Since that deal closed in late 2010, Goldcorp has grown Andean’s Cerro Negro from 2 Moz to over 5 Moz. Extorre’s Cerro Moro could have similar growth prospects. Extorre has total cash of $39.87 million and no debt. Its price-to-book ratio is 16.67 and its market cap is $705.22 million.

International Tower Hill Mines (THM): International Tower Hill Mines holds a 100% interest in the Livengood gold project in Alaska. The project has resources of more than 10 Moz of gold, placing it in the in the top 2% of gold discoveries. THM’s advantages are a favorable permitting situation without native claim issues and access to infrastructure. The mine is right off an all-weather central highway in a major mining center. The state of Alaska is planning a natural gas line that would provide power to the project. Kinross Gold could be interested in THM as its Fort Knox mine is down the road from Livengood. The mine life of Fort Knox will be nearing completion just as that of Livengood begins. THM is debt-free and has total cash of $92.54 million. Its market cap is $ 389.21 and its P/B Ratio is a low 2.26.

Kimber Resources (KBX): Kimber Resources is a junior mineral resource company active in the acquisition, exploration, and development of gold and silver deposits in Mexico. Its principal asset is the Monterde Property, which consists of 35 mineral concessions in the Sierra Madre Mountains. Monterde is expected to produce about 60,000 ounces of gold and 1.9 Moz of silver per year for about 12 years. Current explorations are encountering high-grade, multi-ounce material and opening up the possibility of a significant increase in the deposit size. Kimber could draw interest from existing Sierra Madre gold belt producers, including Goldcorp. With a market value of $77.49 million, KBX is a small-cap potential investment. It has total cash of $11.05 million and no debt. At a price/book ratio of 1.24, the company looks undervalued.

Taseko Mines (TGB): Taseko Mines has a mix of operational and project-stage mineral properties in British Colombia, Canada. Its main producing asset is the Gibraltar Copper-Molybdenum Mine, the second largest open pit copper mine in Canada. The New Prosperity Gold-Copper Project, which holds an estimated 13.3 Moz of gold and 5.3 billion pounds of copper, has been opposed by native tribes, but the federal government has agreed to a second environmental review after Taseko made changes to address the ecological concerns. TGB’s other less developed projects include the Aley Niobium Project and the Harmony Gold Project. Its growth potential makes it an attractive takeover target and its P/B ratio of 1.14 looks cheap. TGB has a current market value of $551.48 million, and total cash of $371.82 million compared with $234.35 million in debt.

Yamana Gold (AUY): Yamana Gold is a mid-sized gold producer. Its main asset is El Penón in Chile, which it acquired through the takeover of Meridian Gold. It also has projects in Brazil and Argentina. Yamana could fit in with Kinross’s Chilean and Brazilian mines or Barrick’s operations in Chile and Argentina. AUY estimates its 2011 production to be in the range of 1.04 million to 1.14 million gold equivalent ounces (GEO). Production is expected to increase to approximately 1.7 million GEO by 2014. Despite an improving production outlook, AUY has been trading at a discount to its competitors. Its price/book ratio is a low 1.49. The company’s market cap is $10.20 billion; it has total cash of $570.49 million and $430.91 million in debt.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Jan 10

The Gold Stocks are Tracking Past Equity Bull Markets

All bull markets have similarities and all equity bull markets have strong similarities. They go through similar phases. Most bull markets start off slow and then build towards what we like to say is an acceleration into a bubble and potential mania. In last weeks editorial we noted how bull markets, prior to the bubble phase, tend to make major bottoms every three or so years. Yet, in looking at the present bull market in gold stocks and comparing it to the previous three equity bull markets (Technology, Japan and Gold Stocks) we find stronger and deeper similarities which confirms to us that the gold stocks are in the bull market of our time.

In examining these four bull markets we find that the typical secular bull market in equities follows a strong pattern. Most would assume that the bubble or mania phase is the strongest connection. While this is often the case its really the start of the bull market and middle phase that follow a textbook pattern. The first phase consists of a fairly strong rise over six or seven years while the second phase (through a correction or consolidation) consists of five or six years of no net progress. This sets the stage for the acceleration and eventual bubble phase.

The Nasdaq began its bull market in 1980 so its first phase ended with the historic stock market crash in 1987. The market rebounded fantastically through 1991 and 1992. However, it wasn’t until late 1992 that the market escaped a five year period of no net progress. Though not shown, it was 1995 when the market began to accelerate into its bubble.

Next we have the Nikkei which shows Japan’s historic bull market. Looking at historical data shows the bull market began in earnest in 1967. The first phase ended in 1973. From 1973 to 1978, the market made little progress. After 1978 things really began to takeoff.

In our next chart we show a rebalanced look at the current bull market (HUI in red) and the bull market from the 1960s and 1970s (BGMI in blue). The time scale is aligned to the BGMI. Note the distinct similarities between each other but also to the aforementioned Nasdaq and Japan.

First, note that each market made its initial major peak at virtually the same time, about seven plus years in. Second, each market endured a major correction though each was different in time and scale. The HUI recovered more quickly but has yet to break away from the initial high. The HUI hasn’t made much progress since 2006 while the BGMI did nothing from 1968-1973. The BGMI made its final low (late 1972) almost five months after its initial peak. It was at that point when the BGMI would surge over the next 18 months to a new high. If the HUI follows the same path and scale then it would make its final bottom within weeks and gain strongly until the fourth quarter of 2013.

From this point forward the three historical bull markets essentially accelerated course and endured one final correction before the mania. The corrections were (BGMI 1975-1976, Nasdaq 1994, Japan 1981-1982).

The only distinction to make is that the gold stocks (BGMI) didn’t have the kind of mania the other two bull markets had. Perhaps that is just because mining is such a difficult business or that speculators concentrated on junior companies, silver and silver miners. In other words, the mania was centered outside of the senior gold companies.

In any event, its important to share these similarities as it shows that the struggles in the gold stocks are right on par with previous bull markets. Nothing that has happened is out of the ordinary. In fact it is only following the pattern of equity bull markets. Combined with the low valuations and low ownership of gold stocks, this is some very powerful evidence of what lies ahead. If you’d like professional guidance in riding this bull market and uncovering the winning companies then consider our premium service.

Looking for more analysis? Consider our professional guidance and analysis by taking a free 14-day trial to our service.

Jordan Roy-Byrne, CMT
This e-mail address is being protected from spambots, you need JavaScript enabled to view it


Jan 10

Dare To Be Flat

Iran admit they are enriching uranium at its underground nuclear enrichment Fordow site and imposes Death Sentence on U.S. man they accuse of spying and oil closes…Flat? Oil prices yesterday failed to make significant gains despite some disturbing revelations coming out of Iran perhaps because the markets were less than impressed with the meeting between German Chancellor Angela Merkel and French President Nicholas Sarkozy. While Iran has played a major role in keeping oil prices elevated it does not seem that Iran is enough to keep the oil market on fire. Oil needs other news to keep the bullish move going. Especially out of Europe and China.

Early on today we did get some. This morning we saw a report that French industrial production climbed 1.1 percent in November that MarketWatch said was lifted by production of electronics and refinery output. Angela Merkel also tried to say that there was progress made in the European situation. The Financial Times Reported that ” Negotiations on a new European treaty to reinforce budget discipline in the eurozone are making rapid progress and there is “a good chance” of reaching agreement by the end of January, according to Angela Merkel, Germany’s chancellor. Her confidence was mirrored by Nicolas Sarkozy, French president, speaking after a bilateral Franco-German summit in Berlin on Monday. He said the new treaty, including a requirement for all 17 eurozone members to agree constitutional amendments to balance their budgets, should be signed by March 1. Today Dow Jones says that A cautiously optimistic tone prevailed in European trading hours Tuesday, helping the euro and commodity-linked currencies of Australia and Canada make small gains against the dollar ahead of a key meeting scheduled for later in the day between German Chancellor Angela Merkel and International Monetary Fund Managing Director Christine Lagarde.

Market Watch Reported that ” China’s trade surplus yawned wider in December, beating expectations as exports shot higher. December exports rose 13.4% compared to a year earlier, the General Administration of Customs said Tuesday, with the result above a 12.5% median forecast reported in a Dow Jones Newswires survey. Exports had risen 13.8% in November. Imports rose 11.8%, below a forecast 18% and cooling sharply from November’s 22.1% increase. This resulted in a $16.52 billion surplus for December, which Dow Jones Newswires said compared to expectations for a $7.8 billion. November’s surplus amounted to $14.5 billion.”

Also Dow Jones is reporting that some oil buyers are asking ask for more Saudi grades after recent price cuts. Even China that says they don’t think punishing Iran for nuclear ambitions should be tied to the oil exports yet they say that they may seek more Saudi Arabian crude oil to make up for lower Iranian supply . Dow Jones says at this time that Japanese and Korean refiners are not seeking any extra barrels yet to replace Iran day.

The products got a boost on a report from Barbara Powell a Bloomberg who said that Motiva Enterprises in Port Arthur, Texas shut a diesel hydrotreater for repairs and will idle a crude unit Jan. 17 and a coker March 1 for work quoting two people with knowledge of the operations. Powel says that the hydrotreater will be down for about 24 days and the 75,000-barrel-a-day crude unit for about 17 days, said the people, who declined to be identified because they aren’t authorized to speak for the refinery.

Maybe it wasn’t that cold after all. At first when I saw orange juice go limit up I thought the recent cold snap damaged some crops. Yet in further review the truth may be something different. The AP reported “The U.S. Food and Drug Administration says it will step up testing for a fungicide that has been found in low levels in orange juice. FDA officials said they are not concerned about the safety of the juice but will increase testing to make sure the contamination is not a problem. In a letter to the juice industry Monday, the agency said that an unnamed juice company contacted FDA in late December and said it had detected low levels of the fungicide carbendazim in the company’s own orange juice and also in its competitors’ juice. Fungicides are used to control fungi or fungal spores in agriculture. Carbendazim is not currently approved for use on citrus in the United States, but is used in Brazil, which exports orange juice to the United States. An FDA spokeswoman said the company’s testing found levels up to 35 parts per billion of the fungicide, far below the European Union’s maximum residue level of 200 parts per billion. The United States has not established a maximum residue level for carbendazim in oranges.

In the letter to the Juice Products Association, FDA official Nega Beru said the agency will begin testing shipments of orange juice at the border and will detain any that contain traces of the chemical. Because it is not approved for use in the United States, any amount found in food is illegal.

Beru said that because the FDA does not believe the levels of residue are harmful, the agency will not remove any juice currently on store shelves. But he asked the industry to ensure that suppliers in Brazil and elsewhere stop using the fungicide.”If the agency identifies orange juice with carbendazim at levels that present a public health risk, it will alert the public and take the necessary action to ensure that the product is removed from the market,” he said.

The discovery comes after the agency said it would also step up testing for arsenic in apple juice. FDA officials said last year that the agency is considering tightening restrictions for the levels of arsenic allowed in the juice after consumer groups pushed the agency to crack down on the contaminant.

Studies show that apple juice has generally low levels of arsenic, and the government says it is safe to drink. But consumer advocates say the FDA is allowing too much of the chemical — which is sometimes natural, sometimes man made — into apple juices favored by thirsty kids.

Patty Lovera of the consumer group Food and Water Watch said the federal government needs to rely on its own testing, not that of the companies. “The federal government needs to set consistent, meaningful, enforceable standards for all toxins,” she said.


Jan 10

Spot Gold "Underpinned" by 3-Year Uptrend, Silver Jumps Above $30, as "Growth Replaces Inflation" as China’s #1 Worry

Spot Gold prices touched a new 3-week high against the US Dollar in London on Tuesday morning, trading above $1638 per ounce as world stock markets rose with industrial commodities.

Silver Bullion leapt above $30 per ounce, gaining more than 4.5% from last week’s close, as German government Bunds eased back and other Eurozone bond prices ticked higher, edging interest rates lower.

Ahead of Thursday’s meeting of the European Central Bank – widely expected to cut interest rates across the 17-nation currency zone below 1.00% for the first time – the Euro currency crept up to its highest level since Friday lunchtime at $1.28, just 1¢ above Sunday night’s 16-month low vs. the Dollar.

“Precious metals are benefiting from a broad-based buying across asset classes,” says Marc Ground at Standard Bank.

“The 2008-11 uptrend line at $1532.62 underpins the Spot Gold weekly chart,” says Axel Rudolph, technical analyst at Commerzbank.

Looking at Spot Gold in Euros, an “Impulsive move higher is being witnessed,” Rudolph adds, saying that for Eurozone investors “it will take an unexpected reversal…for the current bullish momentum to be thwarted.”

The Gold Price in Euros today touched a 1-month high above €41,000 per kilo.

Latest data from the International Monetary Market on Friday put the size of speculative bets that the Euro will weaken further “at an all time high” according to HSBC’s Global Markets team today.

“We have seen good physical demand emerge below $1610 for two days in a row,” said a Hong Kong Gold Bullion dealer in a note on Tuesday.

“There is some buying, but we haven’t seen a substantial pickup in physical demand before the Lunar New Year,” says Dick Poon, manager of refinery group Heraeus’ Hong Kong operations, quoted by Reuters.

The Chinese New Year will fall on January 23rd, marking a week of national holidays now associated with heavy household demand for physical Gold Coins, jewelry and other products.

“People are worried about the Eurozone, and concerned if China can maintain its growth,” says Poon.

German chancellor Angela Merkel will tonight follow Monday’s meeting with French president Sarkozy by meeting Christine Lagarde, head of the International Monetary Fund, to push ahead with the 50% writedown on Greek government debt agreed at a summit last October.

Italian bond prices rose Tuesday morning, trimming interest rates on Rome’s 10-year debt to 7.14%. That’s still more than five percentage points higher than Berlin pays, however.

New data from China meantime showed the pace of import growth falling sharply from 22.1% year-on-year in November to 11.8% last month – a two-year low.

“Domestic demand is slowing down very quickly,” says Zhang Zhiwei of Nomura in Hong Kong. “The first quarter is going to be very tough.”

November saw China cut its banking reserve requirement – the amount of savers’ deposits which must be kept back, rather than lent out – for the first time in three years.

“Growth has [now] replaced inflation as Beijing’s top policy concern,” says Qu Hongbin, co-head of Asian economics research at HSBC, forecasting 3 cuts to China’s banking reserve requirements by July.

“Gold shipments certainly haven’t gone from nought to sixty like they did last year,” said a senior logistics executive by telephone to BullionVault this morning.

“But there’s still a tremendous amount of material going there,” he went on, adding that Chinese gold imports leapt in September, and have remained at strong levels since.

“The worry is India. November’s flow was dead, the worst since 2008.”

The Reserve Bank of India today granted approval to four more banks for the import of Gold Bullion and other precious metals. That takes the total number of banks licensed to import gold and silver to India – the world’s heaviest consumer market – up to 35.

“It’s not because they foresee huge demand coming up,” Reuters quotes a bullion dealer, noting that 2011 gold imports to India – which has no domestic mine supply – are estimated to have fallen by 9% from 2010’s all-time record high.

“They are just trying to open up for more competition in the market and customers will have more choices.”


Legal disclaimer and risk disclosure

(c) BullionVault 2008 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Jan 10

North Bay Resources Inc. (NBRI) Issues Ruby Mine Update

SKIPPACK, PA–(Marketwire -01/10/12)- North Bay Resources Inc. (OTC.BB: NBRI.OB – News) (“North Bay” or the “Company”) is pleased to issue the following shareholder update on the status of current operations at the Ruby Gold Project.

The Ruby Tunnel rehab project continues to make steady progress. The weather has remained favorable, and we are prepared to keep working as long as the weather continues to cooperate. We expect that the Ruby will be a year-round operation once we are in full production and generating revenue. Until we reach that point however, snow removal operations are considered non-productive, and once significant snowfalls come to the high Sierras, we expect to break camp for the duration of the winter. Fortunately, that has not occurred yet, and so we have been taking advantage of the mild winter thus far to continue working. Given the current forecasts, we expect the work will proceed unabated for at least another week or two.

About The Ruby Gold Project

The Ruby Mine, a/k/a the Ruby Gold Project, is a fully-permitted underground placer and lode mine located near Downieville in Sierra County, California that is known to have produced over 250,000 ounces of gold since the 1850s, and which is considered to be part of the northern extension of the historic Mother Lode system. The Ruby Property covers approximately 1,755 acres, consisting of the subsurface mineral rights of two patented claims totaling approximately 435 acres and 30 unpatented claims containing approximately 1,320 acres. The equipment, fixed assets, and infrastructure in place include a 1,000 yard per day placer wash plant, 50-ton per day quartz mill, 6,000 feet of tracked haulage, and related support equipment needed for underground mining operations. The property also features an excellent system of roads, is accessible via paved highway from Reno or Sacramento, has abundant water and timber available for mining purposes, and has PGE power available on-site. For further information about the Ruby Mine, please visit the Ruby page on the North Bay website at http://www.northbayresources.com/ruby/.

About North Bay Resources Inc.

North Bay Resources Inc. (OTC.BB: NBRI.OB – News) is a fully-reporting junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada.

In the US, the Company has acquired the Ruby Gold Mine in Sierra County, California, and is presently looking to acquire additional operating mines in the western US.

The Company’s mission is to build a portfolio of viable mining prospects throughout the world and developing them through subsidiaries and JV partners to their full economic potential. North Bay’s business plan is based on the Generative Business Model, which is designed to leverage its properties into near-term revenue streams even during the earliest stages of exploration and development. This provides shareholders with multiple opportunities to profit from discoveries while preserving capital and minimizing the risk involved in exploration and development.


This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.

Cautionary Note to U.S. Investors — The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website (or press releases), such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form S-1 and subsequent Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml

Perry Leopold
North Bay Resources Inc.

Jan 10

Not Flush

Best Regards