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Message: Keith Barron, gold production & Jr. Miner's

King World has a nice blog from Dr. Barron about the collapse in gold production as a result of the gold price suppression scheme and the role of the Jr. Miner's which should put SFMI in good position if it can get it's drilling game going! How do you think Dr. Barron's Aurelian Resources find stacks up to SFMI's potential find?

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/14_Global_Gold_Production_Is_Poised_To_Fall_Off_A_Cliff.html

"Over the last five years, China has been the number one producer. But if you take China out of the equation, you will see that global gold production is poised to fall off a cliff. This is a situation that is getting to be very dire. We are seeing the major companies fail to replace their reserves. The major companies eliminated much of their exploration staffs, in favor of letting the juniors do that work, and the juniors haven’t been able to get the job done.

As you know, I founded Aurelian Resources before it was bought out, and the discovery I was involved with was a 13.7 million ounce discovery of 8 grams per ton gold. That’s a large discovery and a really robust grade. You can compare that to the average grade being mined by the industry right now, which is about 1 gram.

You can’t go much further below 1 gram without having nothing, so the margins are getting awfully thin for the gold companies. This is why you are seeing major companies miss their overall production targets, costs, and earnings in the last two quarters."

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