http://www.miningweekly.com/article/chile-cuts-its-2012-copper-output-global-price-view-2012-08-14

While the headline appears negative, if you read the detail you will understand that Chile, who produces 1/3 of the world's copper, is suffering from declining ore grades at some of the largest copper mines in the world.

Is a downward revision of production and output a result of a downward revision to GDP of consuming copper nations as the article states or due to the decline in ore grade production? Or a combination of both?

Regardless, this puts BC and Schaft Creek on the map as one of the leading district opportunities to meet the growing metals demand of the future.

The article also suggests that what is baked in is "Austerity" and lower worldwide GDP. There are arguments for both sides of the Austerity(deflationary) vs QE (Inflationary) arguement. I tend to believe that governments will opt for the easier way out, to avoid civil unrest and their own demise of government, and print away. Boldholders may demand austerity and get it for a short time as the bankers have too much influence in government(yes they do own government, surprise surprise) In the end the people will not accept the austerity measures needed (see Greece, Spain, Italy) and the government will want to avoid a 30's style depression. Given that course of action, GDP will rebound very quickly, as will the pricing model of all metals.

DC14