Some very interesting tidbits from Bill Cara's morning report that involves: McEwan Mining presentation, miner performance during U.S. election years, and China Gold interest in Barrick's African holdings.

Regards - VHF

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Morning Report

Bill Cara

August 16, 2012

Lunch with Rob McEwen is always an interesting event because in addition to the current update on company progress provided with unparalleled transparency and candidness you also get his unswerving dedication to the telling of the ‘gold is better than money’ story. He accomplishes both with flair, making him one of the best promoters among large company CEOs in the world. Yesterday, lunch from his new corporate head office digs, from the 47th floor looking down over Toronto’s financial strict, harbour and islands, was an enjoyable treat.

All of what we were presented is available within two presentations on the company website.

Presentation on the Gold outlook: >http://www.mcewenmining.com/Presentation/MUX-Presentation/default.aspx

One slide caught my attention because of the sense it makes of the ongoing US presidential election campaign, based on anything-to-win tactics of the candidates that involve the usual “Government is strong and knows what it is doing, but gold is a useless commodity hoarded by fear-mongers” theme.

CIBC World Markets show a comparison of the performance of the Gold price index (XAU) in election years 1984 through 2008 versus the post-election years 1985 through 2009, regardless of which Party won the White House or control of Congress. The dichotomy is stunning.

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Another slide shows the extent to which goldminer equities are oversold today, which some analysts could interpret as a potential 100% to 150+% gain in the year ahead:

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Btw, African Barrick (ABG.L) is up over +10.0% in London today as Barrick, the principal shareholder, is having discussions with China National Gold that may result in China acquiring their interest. This is more indication of the growing demand from China for gold.

http://www.advfn.com/p.php?pid=nmona&article=53841877&symbol=L%5EABG

Have a good day.