PDAC 2012

Nevsun Resources Ltd. (TSX /AMEX :NSU) will be exhibiting at this year’s Prospectors & Developers Association of Canada’s (PDAC).

The annual convention is to be held on March 4 and 5, 2012 at the Metro Toronto Convention Centre.

Nevsun Resources was hand selected by PDAC for its production success at Bisha and offered the opportunity to present at the Corporate Presentation Forum for Investors. Scott Trebilcock will be presenting on behalf of Nevsun on Monday, March 5 at 2:00pm in Room 803AB.

The Prospectors & Developers Association of Canada holds the most important event in the world of exploration, bringing together over 18,000 attendees from all over the globe. With over 600 exhibitors, a trade show, investors exchange, and core shack, PDAC is the world’s leading investment show.

PDAC offers Nevsun the opportunity to discuss its activities with mining analysts, fund managers, bankers; meet face-to-face with high net-worth individual investors; reinforce relationships with existing investors; make important links with a worldwide audience; and, reveal investment potential and conditions.

Nevsun will also be presenting at MineAfrica’s 10th annual Investing in African Mining and the Chamber’s 13th Annual Mining Breakfast on Tuesday, March 6 at 8:55am at the Sheraton Centre Toronto Hotel.

To attend PDAC register here.

Nevsun would also like to welcome you to view their updated photo gallery of the copper phase expansion at Bisha. You can now view the images by following the link below:

Nevsun Resources Ltd.: Copper Phase Photos

By Amanuel Biedemariam

It is easier for this generation of African Americans to forget the legacy of slavery, segregation and the hell their ancestors went through given the hectic individual life they live in. However, it is impossible to forget because the legacies are engrained into the daily life of all blacks regardless of age or status. The physical, emotional, social and legal imprints are everywhere thus impossible to miss. It is the same for every group, whether Armenian, Kosovars or Palestinians that goes through difficult circumstances as societal unit. It is also the same for Eritrea because those legacies live in every Eritrean.

Like the African Americans, Eritreans went through similar hardships in the hands colonial powers and Fascist Italians for decades. When that passed new forms of colonial legacies painted Eritrea’s history. For over a century, Eritrea faced untold hardship due to wars, colonialism, segregation and aggressions that threatened to wipe Eritrea from existence. Between 1981 until 1987, it seemed as though the enemies have succeeded to achieving their absolute control of Eritrea for the last time. At that moment in history, Eritrea arose from the ashes, dusted off, and marched to never look back. In the years that followed, Eritrea managed to wipe the enemies clear and started the history of independent Eritrea afresh from 1991. Eritrea has thus far been though four pinnacle stages of existence that the enemies said it cannot.

The first phase was that Eritrean revolutionary fighters were bandits. This was propaganda, Ethiopia pushed to downplay the Eritrean movement. By 1975, Ethiopia was forced to publicly negotiate with those that it called bandits in the doorsteps of Asmara after thousands of Eritreans joined the revolutionary struggle and after Eritreans achieved military victories against Ethiopia all over the country.

The second stage covered the period between 1975 until 1987 when the struggle was beset by civil wars and consistent attacks by Ethiopia in which the very existence of the armed struggle was tested. At one time, the entire Eritrean struggle was fortified in one area, Nakfa.

The third phase was the physical liberation of Eritrea. This covered periods from 1987 until 1993 when Eritrea’s struggle for independence was completed. During this period, EPLF liberated Massawa and that led to the complete liberation of Eritrea from the hands of Ethiopian soldiers. Soon after independence, Eritrea conducted and completed successful referendum globally with over 98% voting for independence.  At that time the prevailing belief was that Eritrea cannot achieve independence let alone survive and able to run a country. Many predicted in few months Eritrea will fail and return to Ethiopia.

The fourth phase is the current phase that marks the periods from 1993 until now. During this period, Eritrea is tested in many ways and, the agenda of driving Eritrea to chaos persists to date. The most obvious being the war with Ethiopia in 1998-2000. The enemies hoped and expected, Eritrea to fail. They said Eritrea is not viable and in six months, will fall into civil chaos from hunger and starvation.

To expedite it, they conspired, hatched schemes and created economic obstacles to strangulate Eritrea. Ethiopia enlisted Yemen and Sudan to encircle and suffocate Eritrea from existence. This period tested the will of the people and their ability to persevere in many ways. This also is a period in which, sifting of ideas and people took place within Eritrea. Those that harbored ill will were exposed and in time, many of these behind-the-scene schemers were embarrassed ala Dr. Bereket Habtesselassi and Haile Mekarious.

In this phase, Eritreans made quantifiable achievements in scope and magnitude. This happened at a time of many adversities and difficulties. Eritrea’s challenges were daunting and varied. Eritrea faced economic, diplomatic, security and political… challenges that tested the will of the nation. However, Eritrea lifted the clouds of darkness in layers to see light beyond mere survival. This required, believing on each other, coordinated effort and understanding between the people and the leadership about what is at stake to challenge them head on.

The UNMEE was one challenge that Eritrea faced. In retrospect that was one monumental achievement because, it was part of the plan designed to create cracks. It was poison to a serene-proud-society and unspoiled environment. It created uneasiness because of the filthy behaviors that UN peacekeepers demonstrate everywhere. The process took its course and Eritrea used it as an opportunity to, in one-hand welcome international process and, when it failed to produce the desired outcome, to clear house and assert its position as independent nation. It was rocky but successful nonetheless. This process meant to bring peace and stability between the two nations turned out to be a tool to undermine the sovereignty of Eritrea. Eritrea overcame that issue and all the political entanglements that was part of the very process.

In this period, Eritrea needed to recalibrate its approaches. The war had two major impacts in the life of the nation, i.e. economic and security amongst other priorities. Eritrea’s economy and way of life was interlinked to that of Ethiopia’s in many ways. In addition, after war broke-out, Eritrea was forced to divert valuable resources and human capacities into the war effort creating a gap in the socioeconomic infrastructure that just started to take shape after independence.  Whatever gains Eritrea made in her short independent life was taken away, due to the unexpected war that took many lives and displaced millions adding another dimension to a major challenge.  That challenged the very existence of Eritrea and it was a challenge enemies designed against Eritrea assuming Eritrea cannot overcome.

In 2000, just as Eritrea was coming out from the war, General Sibhat Efrem came to the US for official visit  and conducted interview with the Voice of Eritrea DC (VoE) and said, “As a new nation Eritrea will be tested militarily, economically, politically, diplomatically, socially and in every conceivable way. Nations go through all types of hardships internally as have the French during the French Revolution, the US during the civil war and others. Nations that have not been tested will, at one time. And those who face the challenges head on, nations that can withstand outside pressures and, come out victorious, will enjoy their sovereign governance successfully. But those who fail will not survive as nations.”

General Sibhat then related it to Eritrean saying, “Early on, Eritrea went through various hardships due to religious, regional and political conflicts. During the armed struggle, the war between EPLF and TPLF took the life of thousands of Eritreans.”  And further noted, “In Africa, most nations were handed their freedom while, Eritrea had to earn freedom with blood, guts and hard work. Eritrea was tested and we will be in the future. And if we fail in any turn we cannot be viable as a nation.” That is a mindset and that is what makes Eritrea a NATION and will remain as one.

Eritrea had four things going for it: Experienced leadership; a dedicated, experienced, educated and selfless population willing to die for Eritrea; manageably sized nation; and flexibility. These four ingredients helped Eritrea to reel from a devastating, difficult and dangerous period.

The nation focused on food security; realigned its diplomatic approach within the region and globally; strengthened its security and started to make headways in its social and physical infrastructure reconstruction. Eritreans quickly returned to a familiar mindset and hankered with the understanding that all these developments to be a continuation of the armed struggle. In a sense, the war heightened the focus on the nation and helped tighten the unity.

It is rewarding to remember the challenges Eritrea faced and how it is overcoming them. It also speaks volumes of leaders with foresight that forewarned the world about Western intention and designs to create conflicts and manage them. Eritrea was amongst the first targets of the West before the Arab Spring. With the help of the Weyane regime, they tried to isolate specific ethnic groups into uprisings. Ethiopia enlisted some failed ex-ELF and flew them from Sweden to lead Eritrea. We also witnessed some ex-ELF driven into the US State Department anointed as the future leaders of Eritrea. It all failed because Eritreans knew what they have and chose not to give it up. Eritrea was not handed to them; a ballot box did not gain Eritrea; Eritrea exists because of those that paid the price and those six feet under in every part of the nation.

Eritrea rebuffed every attempt and shined. In fact, Eritrea benefited from all the wicked attempts thrown at her. The PR, the demonizing campaign, misinformation and disinformation negative campaigns as well as the deliberate attempt to alter the history of the brave nation, failed.  To the contrary, it put Eritrea on the global map faster. It killed the very agendas they were pushing forward. Eritrea came out from shadows of colonial legacies and now, the world knows Eritrea as a gritty nation that pursues prudent self-reliance programs religiously. Of course, to them it is something new but to Eritrea, it is not a choice it is a matter of survival. That’s how Eritrea came to life and how it will thrive.

Eritrea’s achievements are visible and life altering to agrarian communities that live in villages and small towns all over the country. On 21 February 2012, Eri.TV showed  newly completed potable water project in Digsa, Segeneiti sub-zone. What caught my attention was how the people viewed this new achievement. Tirhas said, “Thank God, we are doing fine. We used to travel 5 kilometers for services and to fetch for water. Now we have barrels in our doorsteps.”

Mr. Ghebremichael said, “We have electricity, potable water, a hospital and schools thanks to the government of Eritrea. We used to travel 5-10 kilometers but we have all that we need here and it is up to us to safeguard and maintain them.  This is not something new, this was EPLF’s stand during the armed struggle and this is a continuation of what it started during the struggle to equalize the standard of living throughout.”

This is as basic as it gets. On the other hand, Eritrea had to meet some of the major and comprehensive infrastructural needs of the country without resources and amidst a hostile environment in order to position Eritrea for the future. That is a tall order and balancing act. Eritrea met these challenges head on in a stealthy manner by exercising her advantages such as flexibility, mobility and the dedicated human resources to build the basic infrastructural needs. It was relatively seamless process because Eritrea is a nation with a history of organizing the masses into specific national goals. The people bought into it because of the awareness instilled in them during the struggle. Eritreans are confident and know they can overcome as they have during the struggle.

By hankering down, Eritrea positioned herself into the current stage where it is beginning to extract her wealth. The people of the world have noticed and Eritrea has arrived. Countries are sending their representatives not to fill-in diplomatic spaces but to do business; understanding Eritrea’s strategic importance and confident, that Eritrea is a nation they can depend on. Favorable climate, hospitable people, crime-free environment and incredible topography are other factors attracting world attention.

Conclusion

Throughout Africa, most of the nations are powder cakes. A little push they crumble. We saw it in Ivory Coast and in nation after nation where countries are crumbling and loosing sovereignty. Their wealth and resources exploited and the people going from one Western puppet to another in the name of democracy while in abject poverty. This is because, they lack connection, and a history of collective struggle between the people and those who claim to lead these nations.

The people of Eritrea offer a new and decisive departure for the norm. They provide alternatives, in a continent that long searched for model governance approaches. Eritreans did it by a motto that said, “The masses need to be aware, organize and arm.”  This motto relies on Eritrea’s own recipe for success, “Self Reliance!” exercised in all aspects of life. For example, Eritrea does not depend on foreign tourist alone to expand the tourism industry because it can on Eritreans in the Diaspora to fill the gap. That bought time and gave it stability the industry needs. It is also a blessing and answer to the prayers of our fathers and mothers that worshiped faithfully in the name of the Almighty. That is what saves Eritrea from the peonage of Western criminals.

Eritrea’s stories are not told to the world because the daily issues tend to overwhelm the life of Eritrean.  The stories are plentiful and colorful that the world needs to hear and read about. They are the stories of the human spirit. And only Eritreans can tell it because if they don’t the enemies will define it. Nakfa was one example that the world needs to hear and know about. It is history of war, grit, brilliance and sheer determination the world has not heard because it happened in Africa by Africans. It is a story of a victorious moment that changed the tide in a nation’s history. Conversely, it is legacy Eritreans cannot and will not overlook. While that is a physical reminder, the emotional scars live in all of us. This is a moment in history to expose it without being caught in the daily dilemmas they try to embroil us in.

Zel-Alemawi-Zikhri N-Sema-et-Ta-Na

Awetnayu@hotmail.com

South Boulder Mines Ltd (“South Boulder” or the Company”) is pleased to announce that it has entered into a joint venture agreement with TSX listed Strata Minerals Inc. (TSX-V:SMP or “Strata”) on the non-core Cardabia Phosphate Project in Western Australia.

During the deal South Boulder has received $200,000 in cash and Strata has been granted TSX Venture approval on the 13th February 2012 for the Cardabia transaction. 2.5 million fully paid Strata shares will be allotted and in return Strata has acquired an 80% interest in the project.

Further, South Boulder retains a 20% free carried interest through to the completion of a bankable feasibility study (BFS).

The company states that the project divestment allows South Boulder to further focus efforts on the expedited development of the Colluli Potash Project in Eritrea and continue transitioning the Company into a potash producer.

The Cardabia Project is comprised of exploration tenement applications E08/2359, E08/2322, E08/2301, E08/2302 and E08/2303 which cover a total area of ~1,600km2.

It is located ~ 1,000km north of Perth and ~ 80km south of the town of Exmouth. Historical work conducted at the Cardabia Project in the late 1980’s defined widespread shallow nodular phosphate in air-core drilling.

The agreement allows for Strata to own an 80% interest in the project and to sole fund all exploration through to the completion of a BFS.

Lorry Hughes, Managing Director of South Boulder stated, that South Boulder Mines has been looking for some time to unlock value for our shareholders in some of its non-potash fertilizer assets, which tend to be overshadowed by the magnitude and potential of the flagship Colluli Potash Project in Eritrea.

He explained that the agreement allows for the Cardabia project to be explored by an experienced phosphate company at no risk or cost to South Boulder. The Managing Director underlines that the joint venture agreement with Strata will create value for South Boulder shareholders.

/CE

Eritrea

Asmara, 13 February 2012 – Eritrean Government’s High Delegation led by Mr. Osman Saleh, Minister of Foreign Affairs, conducted meetings with different UK officials and private investors.

The delegation in its meeting with Mr. Henry Bellingham, Head of African Affairs in the UK Foreign Ministry, conducted extensive discussion regarding bilateral relations, regional peace and the positive role Eritrea is playing, the development progress being registered in Eritrea as well as other bilateral issues.

During their meeting the two sides reached in understanding to enhance the ongoing consultation and engagement between Eritrea and UK in a bid to strengthen their relations.

Mr. Henry Bellingham further expressed his desire to visit Eritrea leading a trade delegation.

In a meeting conducted with heads and representatives of existing and potential investors in Eritrea, Mr. Yemane Gebreab, Head of Political Affairs at the PFDJ, gave extensive explanation on the development activities in Eritrea, investment opportunities, as well as the prospects of benefit for UK companies investing in Eritrea.

Reports indicate that many companies expressed their interest on Eritrea.

Likewise, the Eritrean Delegation in the meeting it conducted with Mr. Andrew Mitchell, the Secretary of State for International Development, and policy experts explained that Eritrea has laid the foundation for ensuring economic development relying on self-reliance and indicated that its vision for development is based on trade and investment partnership.

In the meeting, Mr. Andrew Mitchell expressed the desire of the UK Government to have economic cooperation with Eritrea. It is to be recalled that the Eritrean Delegation conducted a seminar for Eritrean nationals residing in the UK.

/Shabait

Ivory Coast and Zambia bring the curtain down here later on Sunday on an Africa Cup of Nations marked by low crowds, upsets, the presence of fairytale qualifiers Libya, and the Port Said stadium slaughter.

After 23 days of competition, 55 matches, 76 goals and seven red cards, Sunday’s compelling final pits Francois Zahoui’s star-studded Ivorians against a Zambia side driven by the desire to honour the national team killed off the cost of Gabon in 1993.

The Zambians’ quest to win the title for their fallen comrades has provided a poignant subplot to the build-up to the Nations Cup climax at Libreville’s 40,000-seater L’Amitie Stadium. Despite the final’s allure it is in danger of being played out in front of row upon row of empty places.

Paltry attendances have been a depressing but all too frequent feature in Equatorial Guinea/Gabon – full houses turned out to watch the co-hosts, but elsewhere it has been a markedly different picture.

A neglible 132 people turned up to watch Sudan’s first round game with Burkina Faso in Bata’s 30,000 seater stadium. “It’s a shame, but I’ve told my players that millions will be watching on television, includuing 12 million Zambians,” said Zambia coach Herve Renard.

The Confederation of African Football claimed the problem was not confined to their continent. “What can CAF do? We want stadia to be full but no force in the world can go into homes and tell people ‘Go the the stadium’,” said CAF president Issa Hayatou. “In Africa, but it must be the same in Europe, when the organising country’s team is knocked out, enthusiasm drops.”

The Copper Bullets are up against an Ivorian side desperate to atone for their disappointing campaigns in 2008 and 2010. Didier Drogba’s unbeaten Elephants have skilfully sidestepped the traps which have claimed the scalps of continental superpowers Ghana, knocked out in the semi-finals by Zambia, and first round victims Senegal, Tunisia, and Morocco. While they are hunting for their second title 20 years after their first, Zambia are seeking to lift the title at the third attempt.

Drogba, and his veteran colleagues Boubacar Barry, Didier Zokora, and defender Kolo Toure know they will never have a better chance to claim the continental crown. This Nations Cup has changed the face of Gabon and Equatorial Guinea, with millions ploughed into essential infrastructure.

Gabon’s estimated outlay alone is an estimated 450-600 million euros. Gabon president Ali Bongo Ondimba insisted the money had been wisely spent. “We’ve only got dark elephants, not white elephants.

We don’t have any white elephants, we don’t want them. “We’ve worked on roads, telecommunications, airports, hospitals, and so on.. overall this Nations Cup has been good for the country.”

The 2012 edition was missing many of the continent’s biggest hitters – Egypt, winners in 2006, 2008 and 2010, Algeria, South Africa, Nigeria and Cameroon all failing to qualify. Their absence made Libya’s presence all the more noteworthy. Despite going out in the first round they covered themselves in glory, making the finals against the backdrop of bombs and bullets from the bloody revolution to overthrow dictator Moamer Kadhafi, and toppling Senegal in their closing match.

For the second successive edition the Nations Cup was stained by blood. In 2008 it was the machine gun attack on the Togo team by separatists in the northern Angolan enclave of Cabinda which left three dead. Two years on African football was in mourning again, this time for the 74 fans slain when fighting broke out after a league game in the northern Egyptian city of Port Said. As Cairo-based CAF’s flags flew at half mast and a minute of silence was observed before games, Gabon captain Didier Ebang Ovono said: “Our hearts go out to the families of the victims, to take a life for a football match is truly catastrophic.”

-Reuters

Peter Grandich

Peter Grandich believes that we’re in the midst of a stealth gold bull market. Grandich, editor and publisher of The Grandich Letter, recently penned the book Confessions of a Wall Street Whiz Kid, the moniker “Good Morning America” gave to him after he predicted the Black Monday stock market crash in 1987. He’s now predicting gold to top $2,350/oz in this exclusive interview with The Gold Report.

The Gold Report: Going back to your time as a fund manager in the ’80s on Wall Street, how does what was happening then compare with what is happening now?

Peter Grandich: It’s dramatically different. The biggest change is that the game is stacked against the average investor more so than at any other time. For example, the mortgage debacle a few years ago was equivalent to all the big car companies manufacturing cars that they knew were going to crash and buying life insurance on the people that they sold the cars to knowing that they would die so they could collect on both ends. That’s what the financial institutions did. Those people are still in charge of the game. I take exception when I hear people talking as if the game is fair and the average person has a reasonable chance.

TGR: One revelation in your book is that your struggles led you to a belief in Christianity. Does your spiritual life influence your investment decisions?

PG: Yes. There’s far less chance of me pushing the envelope and touching the gray area—or even going into the red area.

TGR: Another theme in the book is about being wrong and accepting that as an investor. Could you talk about the psychological pitfalls of investing?

PG: I could write a book about losing. The ultimate crime of investing is not being wrong. The crime is staying wrong and that happens to a lot of investors. They institute the worst investment strategy and simply hope things will change. Hope is a wonderful spiritual strategy but a very bad investment strategy.

The majority of investors usually can withstand the financial risk that they’re taking, but greatly underestimate the mental anguish that can come from the downside of what their investments or speculations/gambling will bring. Wall Street created the word “speculating” so that it doesn’t have to use the word “gambling,” but it’s gambling. You have to be prepared to lose part or all your money when you gamble and I don’t think most investors are. They think of the best possible scenario and never think of the worst.

Most investors don’t operate with a real plan either. That’s why they lose over time because they don’t have a written strategy and instead choose emotions and day-to-day, seat-of-their-pants thinking.

TGR: At the Cambridge House investment conference in Vancouver, you said that you don’t look fondly upon the economic outlook for the U.S., but you remain bullish on some foreign markets, especially China. China’s markets lack transparency and even some Chinese companies listed on North American markets have proven to be less than trustworthy, such as Chinese timber producer Sino-Forest Corp. Are you sending investors into the lion’s den?

PG: It’s foolhardy to think that the U.S. is the safest place and China’s the worst place to invest in equities. There’s no question that China’s going through some growing pains. But there are also shady things that go on here in the U.S. that don’t get reported or are twisted.

It’s no longer a question of if China will become the world’s largest economic power, but when. To not have exposure to Chinese equities over the next several years would be like not getting exposure to U.S. equities during our greatest growth in markets from the ’50s–’90s. And right behind China will follow India. If we don’t have exposure to China and India and the companies that do business there over the long term, we’re shortchanging ourselves.

TGR: How should investors get exposure to China without getting exposed?

PG: The simplest, safest way is through exchange-traded funds or mutual funds that specialize in a group of stocks to avoid getting caught in one particular stock or style of business.

TGR: What are some Chinese investment themes that perhaps investors can piggyback on?

PG: China has a tremendous need for resources. That appetite is not going to disappear anytime soon. It’s underpinning the commodities bull market, in particular steel and iron ore.

TGR: I read a report recently that said China was seeking alternative sources of iron ore for its smelters as part of an effort to limit its reliance on iron ore from Australia and Brazil. China’s looking to northeastern Canada in the Labrador Trough. Do you know anything about that?

PG: A couple of my clients are there and some of my largest personal holdings are there. The Labrador Trough is probably the most interesting play in the world right now. A Chinese company recently did a big deal with Adriana Resources Inc. (ADI:TSX.V; ANARF:OTCBB; A7R:FSE) up there.

I’m very bullish on Alderon Iron Ore Corp. (ADV:TSX; ALDFF:OTCQX). I call it the son of Consolidated Thompson because it has many of the people who were successful at Consolidated Thompson and is following Consolidated’s path, but in a more expedited way. I believe it’s going to go the same way and be taken over within 12 months.

TGR: Alderon has the Kami iron ore project near to Consolidated Thompson’s Bloom Lake deposit in the Labrador Trough. A recent preliminary economic assessment (PEA) on the project reported a pre-tax net present value (NPV) of just above $3 billion (B). How does the Kami deposit compare with its peers?

PG: Alderon should be able to develop Kami at a lower cost, which is key in that area. There’s no question that there’s a lot of iron ore up there, but success is a question of cost, efficiency and effectiveness. The expectation is that it will get port access in a relatively short period. The last missing ingredient will be an offtake agreement with a Chinese company, and the company seems to be suggesting that it’s in advanced talks. All in all, the next big deal in that area appears to be Alderon.

A year from now, Alderon could be worth $10–12/share based on what Consolidated Thompson was worth. It’s a legitimate target to have in the back of our minds.

TGR: Are there any other iron juniors that you’re following?

PG: A big story on the exploration front is going to be Cap-Ex Ventures Ltd. (CEV:TSX.V). I was able to see Cap-Ex’s plans for its drill program in 2012 and it’s just unbelievable. This deposit already looks like it’s much bigger than anything else there. The company plans to have four to six drills going. It’s an interesting story. There is also Zone Resources Inc. (ZNR:TSX.V; 7ZR.F:FSE), a little company that is very low priced, very early stage and high risk. Its recent results from its 2011 program indicate that it could be into something significant. There is some serious talk that Quebec’s government and the Chinese may expand infrastructure in the far north, where there presently isn’t much now.

TGR: You expect the U.S. dollar to weaken once attention shifts away from the troubled euro. At that point, do you expect gold to have a sizeable run?

PG: I have called this the mother of all gold bull markets. I don’t think we’ll see a bull market like this again in our lifetime. However, it’s also been the most stealth bull market. North Americans, and particularly Americans, have shown little or no participation, yet the price has increased five to six fold. All the fundamentals remain in place: central banks have gone from big sellers to net buyers and major producers don’t forward sell much anymore.

The news that the Fed plans to continue flooding the system with cheap paper is just another example of why gold’s path of least resistance is to the upside. I believe an all-time high, not just a nominal high, but adjusted for inflation, could reach $2,350–2,500/ounce (oz).

TGR: Which of your junior gold equities that you follow have recent news that could act as catalysts?

PG: Of all the companies that I am involved with, just about every one is an undervalued junior because they have multiple, advanced-stage exploration projects in either prefeasibility or feasibility studies. Their values are far more than their market caps. For instance, if Sunridge Gold Corp.’s (SGC:TSX.V) project wasn’t in Eritrea, this stock would already be many times its current price.

TGR: Wouldn’t it then be taken out?

PG: Yes. The market is discounting this project somewhere between 80% and 99% because it’s in Eritrea. However, the country risk is even less than what it was.

The U.N. sanctions against the country ended up getting watered down. The Chinese have announced a major investment in Eritrea and are talking about doing more.

It’s extremely good for Sunridge and bullish for the bigger company in Eritrea at the moment, Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.A).

I would not put it past Nevsun to acquire it, but I would think Nevsun would wait until Sunridge’s projects are more advanced. Once Sunridge’s studies are in, Nevsun, another company or Sunridge will develop it. It’s close to getting updated resources on multiple projects, so it’s just too compelling.

Even though they’ve moved up somewhat, Sunridge shares are still substantially lower than their 52-week high. This is a key year for Sunridge. It’s gone through tough times. Its stock went down to pennies on the dollar.

If it demonstrates what I think it’s going to in these reports, no matter that it’s in Eritrea, it should have a much higher valuation.

Some people that I’ve met who are familiar with Sunridge believe its Emba Derho zinc-gold-copper VMS deposit is bigger than Nevsun’s Bisha project. That says a lot.

TGR: Could Nevsun be taken out by something like Rio Alto Mining Ltd. (RIO:TSX.V; RIO:BVL; RIOAF:OTCQX), BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) or a Chinese company?

PG: Both Nevsun and Sunridge could be gobbled up by a bigger company. But Nevsun could also be interested by something that’s worth 5 to 10 times more than its current value with the advantage of being in its own backyard.

Also, Cliff Davis, the chief executive of Nevsun, and the principals of Sunridge go back a long time. They have cooperated on a lot of things. But no matter what happens, Sunridge’s stock is extremely cheap.

TGR: Many retail investors hope that they will exit their junior resource equity positions via a takeover at a considerable premium. Shareholders of Minefinders Corp. (MFL:TSX; MFN:NYSE) recently got their wish when Pan American Silver Corp. (PAA:TSX; PAAS:NASDAQ) made a $1.5B takeover bid in January. Did that news bolster your hopes of takeovers for other companies with properties in Mexico, like Timmins Gold Corp. (TMM:TSX.V; TMM:NYSE.A) and Geologix Explorations Inc. (GIX:TSX)?

PG: I believe that they’re both prime takeover candidates. The difference is that only Timmins could actually be an acquirer, as well as be acquired.

TGR: Pan American is putting a lot of stock in Mexico. Obviously, Minefinders has had some problems with its Dolores operation, but it’s going to bring its expertise to bear on a promising deposit.

Timmins Gold had production of about 21,500 oz in Q411 from its San Francisco mine. But its recoveries were only 65%, up from about 50% in Q311. Do you have any reservations about Timmins because of its low recoveries?

PG: No. Timmins started from scratch and was producing within three years during the worst financial crisis in the modern era. CEO Bruce Bragagnolo should be congratulated. The company seems to be quite assured that it has the heap leaching all worked out. It is quite confident that it will reach 100,000 oz in 2012.

TGR: Geologix continues to drill the Tepal project in Mexico, which is really a copper play. Drilling has revealed that there’s significant mineralization at depth. That could lead to an underground operation after the open pit is completed. What could that do to the share price?

PG: The share price is just too cheap. Regardless of that, the drilling news indicates that it could have something bigger. But by the time the reports start to come together in the spring, Geologix may not be around. It could become an acquisition target before it has a chance to be reasonably priced. That’s not a problem for those of us who entered recently, but it may not get the full value that it wants.

So many good, advanced-stage exploration projects were beaten down in 2011—some to 80% below their 52-week highs. The Geologixs of the world are on the lists of the majors because the majors still struggle with replenishing resources. Mexico, despite its problems with crime, is still a very favorable mining district without many of the headaches some other areas of the world have.

TGR: Do you have any other stories you’d like to tell us about today?

PG: There is one company: Excelsior Mining Corp. (MIN:TSX.V), a copper project in Arizona. It’s my largest holding, so I’m speaking my book. It’s incredibly cheap, but once management puts a couple of things in place, it’s going to tell the story in a big way and I hope the stock will react. It’s truly an unknown story right now. It could be worth a lot more than it currently is.

TGR: Its primary project is North Star, where it is doing in-situ recovery. What are your thoughts on that method of copper recovery?

PG: It’s safe and environmentally friendly, but people don’t understand it. Another company has run into some issues with part of its project being close to a town and there’s been a push to not allow it to have permits. The good news for Excelsior is that it’s truly out in God’s country. There’s no situation like that facing it.

TGR: The PEA stated an NPV of $480M with an internal rate of return of 34%. Would you like to see that a bit higher?

PG: Making money at about $0.60 copper costs is livable. There still needs to be a better understanding of the deposit, metallurgy and exploration potential, too. Because of the style of the management team, I anticipate that this won’t end up being a one-project company.

TGR: Any parting thoughts for us today, Peter?

PG: The mother of all gold bull markets remains intact. The bears have once again been bloodied and they’ll go into hiding until we go through $2,000/oz and then they’ll come out again. Then the media will flock to them to tell us for the 19th time why gold has topped out.

TGR: Thanks for sharing your forecast.

Financial Adviser and Market Analyst Peter Grandich started publishing The Grandich Letter—now a blog—without a high school diploma or even a day of formal training. His ability to interpret and forecast financial happenings, which once earned him the moniker “Wall Street Whiz Kid,” has led to hundreds of media interviews. He is regarded as one of the world’s foremost market strategists. He’s also published a new book called Confessions of a Wall Street Whiz Kid.

Massawa, 11 February 2012- In a speech he delivered today in Massawa on the occasion of the 22nd official commemoration celebrations of Operation Fenkil, President Isaias Afwerki underlined the need to exert concerted action towards effectively implementing development programs in Massawa City and its environs as the epicentre of national development.

Emphasizing that the glory of Operation Fenkil, national liberation and honoring the trust of martyrs is measured by concrete achievements in the nation-building process, the President reminded all nationals to mount united development effort within the framework of integrated rebuff.

Also speaking on the occasion, Ms. Tsigereda Woldegiorgis, noting that as this year’s Operation Fenkil commemoration celebration is being observed at a time when unjust sanctions resolution against Eritrea has been adopted, asserted that the Eritrean people would as ever put up staunch rebuff against enemy conspiracies.

Likewise, Mr. Hamed Haji, chairman of holidays coordinating committee in the Northern Red Sea region, indicated that Operation Fenkil commemoration celebrations would continue to be marked each year in a patriotic spirit.

Reports indicated that various artistic exhibitions featured highlighting the outstanding Operation Fenkil.

By Amanuel Biedemariam

The key question regarding the Horn of Africa is what the desired outcome for the region is. The answer for that are peace, stability and direction towards sustainable development. The question then becomes, who has the interest for peace in the region.

That requires honest assessment by all involved humanitarians, peace-loving people, national and regional as well as international actors. Ultimately however, the people of the region will have to decide who is for peace and who is not. So who is for peace in the Horn of Africa (HOA) and who is threatened by peace in the region?

In an interview with EriTV, President Isaias Afewerki of Eritrea made the following remarks regarding the situation in Somalia. “Most people ask and presume that all the interest on Somalia is based on the riches that Somalia possesses. They think it is about oil, uranium or the strategic Indian Ocean location that Somalia owns etc… However, many fail to realize that the main interest stems from the fact that they see a united Somali-Nation as a big threat.”

To examine it further, a look-back at developments since World War II and can discern one fact; i.e. those that got involved in the region are primarily involved for their own interest and not the interest of the people of the region. This is true for Italy in Eritrea, Somalia and Ethiopia; true for Great Britain that was entrenched in various parts of the region including Kenya and Sudan in major ways. The United States, the Soviet Union, France and China have been deeply involved in the region and remain seized to date.

However, throughout the decades, none has brought peace or the semblance of it. To the contrary, the sufferings of the people increased tremendously to the point of genocides even holocaust considering the suffering, displacement and lives lost over the decades. The suffering competes with major human calamities of world history. But who is counting? Who cares about the lives of the millions of families?

One constant, Western power, in order to pursue their interests always enlists leaders that are puppets. That strategy has been very effective for them thus far. The failures of the various regimes in the region reflected the geopolitical juxtaposition. The fall of Ziad Barre, the deterioration of Somalia and, the fall of Mengistu Haliemariam of Ethiopia are the byproducts of the Cold War. Similarly, the current problems that permeate in the region stem from Western interference in large part.

The question is what is the interest of foreign powers in the region? Key fact, historically, the interest of Western powers has always clashed against the interest of the people in the region. The interest of the people is governance under sovereign nations that are representative of their needs and national aspirations in peace. But that is under constant assault making it harder for nations to remain intact as sovereign nations as in the case of Somalia. Many nations like Sudan are under constant threat by actors that would like to see Sudan divided and weakened further. Nations that are united and responsive to the needs of their constituencies represent a threat to Western interests seeking full control of the region to further their geopolitical aspirations. Hence, to look at one issue in isolation and debate it may be counterproductive. One must look at the situation within global context to make sense of what is taking place in the region.

A Snapshot of the Current Geopolitical Realities   

A quick glance at the current geopolitical makeup of the Mediterranean Sea easily reveals that NATO nations have controlled the regional realities entirely with one exception, Syria. In North Africa, one can argue from Morocco, Tunisia, Algeria, Libya as well as Egypt are under control of Western led NATO circles. NATO controls Southern Europe and Northern African countries from the Mediterranean. As it currently stands the Chinese, Russians and others are outmaneuvered from the region except in Syria. In the Red Sea, an area that starts in South Eastern Egypt and ends at the gates of the Indian Ocean; the US is deeply entrenched in most countries that surround the sea from Saudi Arabia, to Yemen, Egypt and Djibouti. The only countries remaining are Eritrea and Sudan. In Sudan China is the key player. While there are signs that Eritrea and China foster close relations, it is hard to tell the extent. However, it remains clear that the West is intent to remove China’s influence from the region. In order to attain that goal the West needs to control Eritrea and Sudan at best or, destabilize them in the least to gain the geopolitical supremacy of the Red Sea.

This is a scheme designed to give the West almost absolute control of the Mediterranean and Red Sea waters. The extension reaches the Indian Ocean to the strait of Hurmuz where another geopolitical juxtaposition is taking place. The focus of the West is to minimize the influence and reach of China, India, Russia and others who can compete against them. The West led by the US and France are firmly planted in Djibouti and would like to have the same presence in Yemen, a choke point, in one of the busiest and most important waterways of the world.

To attain their geopolitical goals these powers are using all advantages at their disposal. This includes their positions at the UN Security council; their military, political and economic powers; as well as the media and PR prowess that enables them to peddle favorable opinions. These powers are brutes. They care-not about the kids, people and the future of the region. They care-not about the sovereignty of the countries involved. They care-not about the traditions, norms and religions of the countries. The more the people depend on them and the weaker the nations, the better opportunity it is for them to manipulate. A repressive and a non-representative government is a government of choice. The criminal sellout Meles Zenawi of Ethiopia is the best example.

In fact, there is a deliberate move to negate sovereignty altogether. It is unfathomable to call for a regime change in China or the US. Yet, these powers are flouting the idea of regime changes in countries of interest through the UN. The ICC has become yet another tool. Regional organizations like the Arab League can lead opinions that recommend changes in countries of their respective regions as in the case of Libya. The UN, AU, and EU etc. dictate Somalia’s leaders… The stick is sometimes direct and at times provided through puppet regimes as in the case of Somalia through Ethiopia and Kenya.

Unsustainable Aspirations

One of the most telling example of how ineffective this failed brutal scheme is the case of Somalia. The people of Somalia have faced years of assault from many angles. Yet, no force or international interferences have swayed the people from their national One-Somalia aspiration. The people of Somalia are proud people that have proven to be formidable. This is not to discount the loss of lives, the destruction of their ways and means.

The current situation in Egypt and Yemen show the futility of Western designs. Egypt is a lynchpin to the Mediterranean and the Red Sea. It is also strategically significant for the West and Israel. Yet, no interference can guarantee their interest. To the contrary, the situation is changing against their interest because it is clashing with the interests of the people. The primary interest of the US- Israel-led West is security and resource greedy geopolitical agenda. In the past, it relied on loyal militaries that ensured Western interest. However, once the Mubarak regime fell, the Military entrusted to run the country failed to deliver on domestic matters. It even failed on the very issue they were supposedly experts at, security. The military failed the people when a soccer stadium became a place of death to many. Time will tell what will come of the people’s firm determination to determine their own future. Will the West accept the people to go through their own revolution and come out victorious? Not likely.

Yemen is in the same situation like Egyptians. The West, while pressing for a regime change in Syria is making every effort to accommodate the regime in Yemen against the will of the people that want to clear-deck and start fresh.

This happened in Ethiopia in 2005.The opportunity for a peaceful change was quashed by a rogue mercenary regime. At that time, the concern of the West was not the people rather it was the Humvee’s image that Ethiopian troops used to quash the demonstrators. This is a reminder that those who support the regime will keep supporting it against the aspirations of the people.

This is the current reality in the Horn of Africa. The aspiration of the people clashes with interests of the powers that are not concerned about them. Any movement toward a genuine change is quashed with the help of the West. Absent of a peaceful change chaos ensues as in Somalia.

Thence, what is the answer?

It is when people recognize the force of peace and support them. It is by making sure that people understand that peace will reign only through unwavering commitment to peace. It is by making a stride towards development under any circumstance. It is by identifying the forces that can bring peace and working with them to ensure it. It is through facilitating people-to-people relation that can withstand the test of time. It is through education that a strong foundation for the next generation is set. It is by recognizing good. By committing to trade and respecting sovereignty etc…

One of the best developments of the last three years has been the fact that Eritrean and Ethiopian communities in the Diaspora have come to a mutual understanding who is for peace and who is shunning peace. While the strategic relation is on its infancy, one of the best outcomes of this understanding has been the fact that no energy is wasted at each other. In fact, there have been steady developments towards a greater working coordination against Meles Zenawi. Additionally, one can comfortably claim that opinions regarding many matters affecting the region have crystallized to the point that the views are similar throughout. For example, it is no longer a debate whether the West is for democracy or not. Similarly, there is a crystal clear understanding how unjust and rigged the international system remains.

Conclusion

This is truly a historic moment and opportunity for the Horn of Africa to come together in ways unseen and unheard before. Over the last six decades, millions of people have suffered to the point that life has lost its meaning completely. The problem, there is no end in sight. The global actors that play part in this holocaust are determined to pursue their agendas at the expense the people of the region indefinitely. After China and Russia vetoed a resolution on Syria, the new Cold-War era between the West and China/Russia started earnestly. That means a region trapped between international ping-pongs one more time as in the previous Cold War.

Hence, this historic opportunity accords the people in the region and Diaspora a choice whether to work for the interest of these powers or the interest of the people of the region. It accords all, the opportunity to work either for peace or the hegemonic interests of West. In this tag of war, there is and has been history of trends to show who is or isn’t for peace in the region. The people of Eritrea have demonstrated a great deal of wisdom and hospitality for the people of the region without exception. That trend ought to be encouraged and exploited as a tool moving forward. There is a great deal of misinformation, deliberate distraction of views and opinions contrary to the realities described above.  As Malcolm X said, “If you are not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing.”  So, stand for peace, justice and each other for the sake of the suffering people!

Awetnayu@hotmail.com

Eritrea-UK

The UK Foreign Office announced on Wednesday that Foreign Office Minister Henry Bellingham met with the Eritrean Delegation to discuss a range of issues including the UK’s bilateral relationship with Eritrea

The Eritrean Foreign Minister, Osman Saleh, and Yemane Ghebreab, senior political adviser to the President, visited the Foreign Office from 7-8 February. This was the first Eritrean ministerial visit to the UK.

The Eritrean Delegation met the Minister of Africa, Henry Bellingham, the Secretary of State for International Development, Andrew Mitchell, and had meetings with senior FCO and UKBA officials. A range of issues were discussed including the UK’s bilateral relationship with Eritrea; regional security and stability; migration and piracy.

Mr Bellingham also hosted a business roundtable for existing and potential investors in which 22 companies participated. Discussion centred on potential investment opportunities in the extractive industries, infrastructure development, agriculture and financial services.

Chalice Gold Mines

Chalice Gold Mines Limited has released its latest presentation which will be made to the Africa Mining Congress and Indaba Mining shortly. Please click here to view the presentation.

Chalice Gold Mines would particularly like to draw your attention to the Company’s Mogoraib North Project, outlined in the presentation, which will be the focus of a drilling campaign starting shortly.