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iShares Silver Trust Message Board

  • keeve06 keeve06 Mar 18, 2013 3:06 PM Flag


    As promised...

    big trouble for barrick at pascua lama??

    pascua lama is one of barrick’s largest gold and silver mines that is slated to be in commercial production by mid 2013. harvey organ believes pascua lama should have been in commercial production several years ago, but problems associated with glaciers have kept them from doing so.

    there has been on ongoing debate about the glacier and water issues in both chile and argentina as it pertains to barrick’s mining operation of pascua lama.

    i also believe there is bad news coming out of pascua lama. again, this represents 25% of barrick’s gold reserves and if pascua lama is not allowed to go commercial, it would be disastrous for barrick’s stock price, balance sheet and contractual obligation to supply silver wheaton 170-200 million ounces of silver.

    if pascua lama is unable to mine gold and silver without threatening the glaciers in both argentina and chile, barrick will have to go into the futures markets and purchase silver to deliver to silver wheaton at its contractual price of $3.90 an ounce.

    abx is lacking the extraction technology needed to overcome certain complexities and has consulted with engineering firm fluor.... Send me an email for linked data.... later

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    • Stick with SLW, you cannot lose.

      • 1 Reply to gregturner799
      • Stick with SLW, you cannot lose...

        COMMENT: don't be so sure about that....

        Silver Wheaton (SLW) paid ABX basically $4.00 an ounce for 200 million ounces of Silver.

        ABX spent that money in an attempt to retrieve said Silver and met with failure because the silver is buried dirt that is capped by a glacier that is capped by dirt..

        To date a cost effective technology to retrieve said silver is not available as yet...

        Compounding the problem is was discovered that said glacier supplies fresh water to two separate countries Chile and Argentina via two separate rivers...

        The drilling and mining operations have been suspended by court orders from both nations because of contamination....

        At some point Silver Wheaton (SLW) will be demanding of ABX's Silver that it bought...

        If ABX can't mine the still in the ground Silver it will be forced to go onto the Open Market and Buy 200 million ounces of Silver that is currently selling about $29.00 an ounce to satisfy its contractural obligation to Silver Wheaton (SLW).

        Also ABX has a contractural obligation to deliver ??? ounces of gold to Goldcorp (GG) yet ABX hasn't mined any ore as of yet.

        All three companies are at risk for the already paid for Gold and Silver has already been sold...

        This fiasco could cause a run for metals that are in short supply to satisfy contract obligations.

        If the obligations are not met a domino effect of unpredictable consequences of unknown proportions in the futures markets and derivatives markets as well...

        Both gold and silver will go exponential.

    • what specific issues do they raise about mining and glaciers ? I consider glacier impacts to be more of a climate change issues (global, and not much regional) there some specific ABX activity that threatens specific glaciers.

      we do see climate change come up as project Canada oils sands for instance. But those issues are usually put forth for the emotional plea, and don't come into play for final decisions as often...since local projects tying into global issues have indirect, at best, linkage.

      thanks in advance.

      • 1 Reply to stumbleoften
      • Your right it has nothing to do with climate change issues... this is a 4 year ongoing concern that covers many issues and basically hidden from the public because of the monies spent thus far involving 4 or more countries... its silver that s been sold and gold yet to be mined but is counted as inventory... to even begin to understand the complexities one most read and discern many hours of material... but the outcome is sure to affect the metals markets.

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