Stock Market July 2009

[sidewinder]

Santoy Becomes Virginia Energy Resources Inc., Revises Board & Management

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to announce that Pursuant to a Plan of Arrangement (originally announced in a Company news release dated December 22, 2008, and approved by both company's shareholder votes announced May 22, 2009), Santoy Resources Limited ("the Company") has now completed its business combination with privately held Virginia Uranium Ltd. Post-closing, the Company has changed its name to Virginia Energy Resources Inc. ("Virginia Energy"), has consolidated its issued share capital to approximately 54,377,279 common shares outstanding, and will have its trading symbol changed from SAN to VAE on the TSX Venture Exchange.

Virginia Energy currently holds a 20.8 per cent equity interest (in the process of increasing to 22.2 percent) in the Coles Hill uranium deposit, located in southern Virginia. Coles Hill, considered to be one of the largest undeveloped uranium deposits in the United States, had been advanced through to the feasibility stage in 1982. It has an estimated measured and indicated resource of 119 million pounds of U3O8 (at a cut-off grade of 0.025 per cent U3O8) based on a National Instrument 43-101 technical report on the Coles Hill property prepared for Santoy Resources by Behre Dolbear and Co. Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultant Inc. (Dr. Peter Christopher, PEng) dated Feb. 2, 2009, and revised on April 29, 2009. This report is available on SEDAR and on Santoy Resources' website,

This deposit is about 20 miles from the place I grew up.  It is a very rich deposit containing 110 million pounds and the locals are pretty much opposed the the Coles family developing the deposit.  Local greenies have organized statewide in opposition.  I thought that about 3 years ago they were close to getting something done when ARIVA announced they were interested in putting in a milling and processing operation and the deal fell apart with  ARIVA choosing another location.  Here is another case of pounds in the ground and nothing being done about it.  The Cole family must be running out of money and ability to get the state approval for a mining operation to have taken in Santoy and possibly others.  I will have to get some onsite intel on what has really happened.  I always thought that the family who owns the land was being pretty greedy trying to develop this project themselves and would run out of money.  Human nature and knowing the people back there in Virginia, especially those in Pittsylvania county say if the Coles family suddenly fell into some big money like a uranium find of this size, the rest would be jealous and do everything in their power to prevent it.  It really is more about greed More than environmental concerns IMO.   Old man Coles, (Ha he's only a few years older than me, time flys) has 200 acres of deposits and who know whats around the area in other deposits.  If there is any place around more depressed with joblessness and underemployment it is within 25 sq miles of that place.  Jobs would be created and the economy could benefit from developing this project.  Hopefully Santoy can add some expertise in handling the environmental objections mostly incited by "outside agitators" as I call them. 

The ARIVA proposal would have been an additional boost to the local economy.  In order to process the ore from the Coles farm a milling operation would have to be within a reasonable trucking distance of the farm and I think they were looking to built between the Coles farm and Lynchburg, home to Babcox and Wilcox a large energy firm.  The whole thing (blocking the mining) is simply stupid on the part of the locals who for the most part don't have a pot to piss in.  Anyway I was happy to see my Santoy shares are now called Virginia Energy Resources and I will hang on to them just in case. 

[sunseeker]

Hi BF

So while we appear to have a shortage of coins, it doesn't appear we have a shortage of gold, as "if we wanted to" we could simply "print more coins out of gold" as we do with fiat currencies.

You are only using like to produce like. You need to have the gold in first place to produce the coin. You aren’t bringing anything new into existence. It’s still gold, and resources are finite. Gold is getting harder and harder to find and one day no significant quantities will be found. It will in effect run out. Only then I suppose we will know how much there really is. Scientists could produce it by electron bombardment, but that wouldn’t be cost effective.
As long as we are able to grow plants we can produce paper, and make bank notes (Australia has plastic ones. More expensive to produce but remain longer in circulation).
Not that we need to even do that now because it’s all about numbers in a computer. Type in $1,000,000. There you go that’s another million dollars. It takes hardly any effort at all to bring money into existence in that way. There is no way that you could do that with gold. You can only bring gold into the system through hard work, diligence and expertise.

Going back to yesterday’s posts that’s probably another good reason to look towards the computer industry. LOL

The argument for silver is even more compelling because unlike gold silver has is still being destroyed beyond recovery. There are more patents involving silver than for any other metal, but supplies are expected to be exhausted by 2020. No other metal can replace silver for industrial use.

I take your point on the Mona Lisa. Although if they found that Leonardo da Vinci had painted a few dozen and they had been lying concealed in a wall in the Vatican what do you think that would do to the value of the one in the Louvre?

Somehow I am able to do that with Uranium miners, because I believe that there is or will be a shortage and I can see future demand,
 

Uranium is one of the most abundant elements on the planet. Its value comes from the fact that it isn’t easy to extract it, or handle it. Aluminium used to be the same. Aluminium is very abundant in the earths crust but not in a free form. It used to be far more expensive than gold. When they found the method of producing it in great quantities the price plummeted.

ATB 

[Bottomfeeder]

SS....Ha good one.  Like the cartoon!

I do find silver to be alot more compelling for the reasons you mentioned, also most silver is obtained as a by product of gold production.  I do however have a very difficult time believing that silver supplies will be exhausted by 2020, and that there are no other metals to replace it.  IF so why in the world would it be trading under $15?  I don't know about those numbers.   Could the markets be so wrong for so long?

I am also aware of the abundance of U.  As you stated the problem is in extraction, and of course consumption being significantly higher than what is extracted annually, something like what about 40% more consumed than mined annually.  Add in that power plant construction "in progress/planning stages" globally that would amount to a "double" on the demand side by 2030.  I can sink my teeth into those numbers.

But back to gold, my question to you is this:  What happens when/if the world runs out of gold, other than the price goes higher?  I mean hey were all in resources for the hopeful outcome of the underlying resource going higher, but what else occurs?  I mean what I am trying to say is it ain't earl, lol.

2000 tons of gold continuing to be extracted does seem like a lot of gold to me though.  And hey don't go minimizing planting, feeding, cutting down trees, shipping, processing and printing paper as being effortless or without skill, labor or cost.  Plus haven't you been watching Bernanke sweating the past 18 months? Not easy printing money.  LOL;D

Dont take me as minimzing the effort or prettiness of the material, damn stuff is just hard to put a "fair value" on.  It just seems to me that if you want  to make a safer bet that has just as much if not more long term reward you should be looking at some oil, as it is a bet on continued globalization, looks like a no-brainer by comparison.

[onlooker]

Hi Pinetree:

For Americans, I like Mish’s blog.  It is not a typical blog for Americans to vent their frustrations on or ask questions about their government.  Mish is very proactive.  He has Balanced Budget Amendment and Abolish The Federal Reserve Act of 1913 petitions for his readers.

I agree with most issues on his blog.  I agree with only some of his views on gold manipulation.

First, I would like to present some background information to back up my thoughts.
There are people who are gifted in the maths and sciences at a genius level.
See:  http://video.google.com/videoplay?docid=4913196365903075662

Mr. Daniel Tammet has a form of autism.  In my life, I know of three individuals from my secondary school years who are geniuses.  Unlike Mr. Daniel Tammet, they do not have autism.  They act, look like the average Canadian Joe.  All three were part of the brain drain to American.

One of them I have kept tabs with.  He now works with Uncle Sam’s defence department.  He is financially well rewarded, and holds a most prestige and unique job.  Also, he has government orders to keep his mouth shut.  Therefore, no one can ever find out about his brilliant findings in published scientific journals and, horrors, the internet.  And, the worst case scenario of breaking an obligation with a government is to get a possible Karen Gay Silkwood-like treatment.

Next I want to talk briefly about computers and gold and silver.  I previously presently this spot gold price graph.
http://caseyresearch.com/dImage.php?i=1227183028-gold8.gif
and this spot silver price graph.
http://caseyresearch.com/dImage.php?i=1227183029-silver7.gif

I will repeat myself and say that the 2-dimensional graphs for two separate commodities; one for gold and the other for silver are alike.  Except this time I will say that there is no freaking way that they are not generated by one computer program shared by bullion dealers on opposite sides of the continent.  There are many, many other graphs like the ones above.

For Mr. Daniel Tammet or any one of my childhood genius friends, the creation of computer trading programs producing two dimensional graphs is like child’s play to them.  Heck, I am sure they are all capable of dealing with abstract five-dimension construct, and not just two dimensional graphs.   

See:  http://en.wikipedia.org/wiki/Fifth_dimension

Therefore, IMO,small investors (mere mortals) are also competing with super intelligent computer programs created by geniuses.

Also see the following complete article on computers and trading. 
http://press.princeton.edu/books/rochlin/chapter_05.html

[¶63.] The computerized networks of information and communication established to allow powerful, centralized, vertically organized firms and banks to exert better control over financial markets are now transforming into networks of action, dispersing their power and decreasing their control. ,,,, ,,,,,, effectiveness.

[¶64.] To adapt, regulators would have to accept that they can no longer regulate effectively from the traditional position of an outside authority, able to control a few large firms by rewarding good behavior and punishing bad. To do so in the newly dispersed markets would involve a degree of intrusiveness and control that would be neither effective nor affordable.  ............. effect.

[¶65.] Unfortunately, no such entity is yet on the horizon. The coordination costs would be enormous, and so would the knowledge burden that would be imposed on regulators or other agents, who would have to become at least as proficient in the uses and misuses of the new technology as those whose behavior they are trying to identify and detect.[ .......... deconstructing.

Mish’s blog mentioned:

The odds of such a massive collusion over the years between all those players allegedly involved, without a single insider stepping forward to verify the collusion is virtually zero.

I disagree with this statement that because not a single insider has stepped forward, then there were no collusions.

Come on Mish, people working for the government or private sector have gag orders and they very seldom break them for fear of reprisal – worst, worst case, death.

If a company uses a computer program to trade, who do you go after in the courts?  The inanimate computers?  The inanimate computer programs?  The rotating clerks in different continents who input similar but different variables to the program?  The rotating computer program designers?  The original computer designer who have long since moved on to another company?  Piece together and examine daily shredded trading information from landfills?

Mish’s blog mentioned that there are agreements such as The Central Bank Gold Agreement (CBGA) which looks at governing over any gold collusion.

Come on Mish, The CBGA agreemeet is so general with no specific and numerous fine print clauses that any company will simply ignore it.  In short, such agreements are not enforceable.  Besides, who goes around enforcing such general rules?  They monitor themselves, making this agreement a useless one.     

I will agree with Mish’s idea that the GATA's quest to discover collusion in the gold and silvers markets is a lost cause.  Not on the grounds that collusion does not exist, but on the grounds that it is next to impossible to prove it is true.

I will also agree with Mish’s idea that the GATA can sometimes hype their claims to prove their point.  But, doesn’t very one do it, including this writer?

Regarding, Jim Willie’s comments being conspiratory or not.

I know that real people are often not permitted to release the truth for fear of reprisal, fear of ridicule, for love of country, whatever. 

For example, history has shown time and time again, the sad fact that leaders are jerks, and do not care for the people they trample to get what they can for themselves or even their nation.  That they will not release the truth in order to achieve their perceived greater good deed. 

Therefore, although Jim Willie often does not give out specific names, times, places; I still keep his information in the back of my mind.  To check it up.  To keep tabs on it.  If it doesn’t come true.  This is still alright with me.  But, I do not want to immediately label it as conspiratory and not examine it at all.  IMO, that is mental laziness on my part.  Only time will time if there is some truth to his comments.