Iteration Energy Provides Operational Update and Management Update

Iteration Energy Provides Operational Update and Management Update

05:30 EST Monday, January 18, 2010

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

CALGARY, Jan. 18 /CNW/ - Iteration Energy Ltd. (TSX-ITX) ("Iteration" or the "Company") is pleased to provide an operational update highlighting its 2009 activity.

In the fourth quarter of 2009 the Company completed an 11 (10.5 net) well program for Sunburst oil at Manyberries in southern Alberta. Ten (9.5 net) wells were successful, and though the program was focused on improving the secondary recovery in existing pools, one new pool was discovered. Other activities in Manyberries completed during the fourth quarter included a number of facility upgrades, and the conversion of wells to water injection in order to improve waterflood recovery. Production in this area has increased by approximately 175 bbls/d and is currently estimated to be 450 bbls/d of light oil. Production for the area is expected to increase in the future as the waterflood recovery improves.

Iteration is currently conducting a winter drilling program aimed almost entirely at light oil prospects. We are currently on the third of a planned six (6.0 net) well program for Keg River reefs in the Rainbow area in northwestern Alberta. The first of these wells has flowed light oil at an average of 360 bbls/d since December 27, 2009. The second well in the program has flowed light oil at an initial rate of 100 bbls/d. In addition, Iteration plans to drill between 6 (4.5 net) and 8 (7.25 net) wells in Western Alberta, primarily the Gold Creek and Gordondale areas, targeting numerous stacked pays in the Cretaceous and Triassic formations. The first Montney farm-out well will be completed at Monias in BC in the first quarter of 2010, with the second well expected to follow later in the quarter - Iteration will have a 50% working interest in this play. A planned Q1 2010 eight (6.9 net) gas well drilling program in east central Alberta has been deferred to January 2011 due to the higher current net backs on oil prospects.

Production for the 2009 year is expected to average approximately 15,950 boed, which is toward the upper end of our most recently issued guidance of 15,600 to 16,100 boed. Exit production for 2009 is estimated to be 13,000 boed, which matches our guidance. In total, we drilled 16 (13.5 net) wells in the fourth quarter of 2009 with a 93% success rate bringing total drilling for 2009 to 31 (23.7 net) wells with a 89% success rate. Financial results for 2009 are expected to be released in mid March 2010 and we currently expect to be in line with our latest guidance.

Consistent with our hedging philosophy, Iteration added to its gas and oil 2010 hedge positions in the fourth quarter of 2009. On the gas side 15,000 mcf/d has been hedged against AECO for each of the first three quarters of 2010 at prices of $5.49/mcf for the first and second quarters and $5.84/mcf for the third quarter. Similarly on the oil side 800 bbls/d has been hedged against Canadian dollar WTI for each of the first three quarters of 2010 at prices of $85.25/bbl for the first quarter, $87.75/bbl for the second quarter and $85.10/bbl for the third quarter. Approximately 30% of Iteration's production is now hedged through the first three quarters of 2010. Below is a summary of Iteration's hedge positions:

    <<     -------------------------------------------------------------------------                        AECO Gas                        Cdn$ WTI Oil     -------------------------------------------------------------------------              Volume (mcf/d)  Price ($/mcf)    Volume (bbl/d)  Price ($/bbl)     -------------------------------------------------------------------------     Q1/10    18,300          $5.44            400 (collar)    $70.00- $94.00                                               800 (swap)      $85.25     -------------------------------------------------------------------------     Q2/10    18,300          $5.44            400 (collar)    $70.00- $94.00                                               800 (swap)      $87.75     -------------------------------------------------------------------------     Q3/10    18,300          $5.74            400 (collar)    $70.00- $94.00                                               800 (swap)      $85.10     -------------------------------------------------------------------------     Q4/10    2,400           $5.82            400 (collar)    $70.00- $94.00     -------------------------------------------------------------------------     Q1/11    1,900           $6.33            -               -     -------------------------------------------------------------------------     Q2/11    1,900           $6.33            -               -     -------------------------------------------------------------------------     Q3/11    1,900           $6.33            -               -     -------------------------------------------------------------------------     Q4/11    600             $6.33            -               -     -------------------------------------------------------------------------     >> 

We regret to announce that Peter Scott has left the Company effective January 17, 2010. Peter has made a very significant contribution as CFO since April 2009, and has greatly strengthened our accounting department over the last nine months. We wish him every success as he takes on similar responsibilities at a larger Calgary based company.

Mr. Willie Dawidowski joined the Company in June 2009 and is currently Vice President and Controller. Willie has 30 years of oil and gas experience and has served as Controller, Vice President or CFO for a number of oil and gas companies. Willie will provide ongoing continuity and leadership of the accounting and finance groups.

Additional Information:

Iteration is an Alberta based corporation engaged in the business of exploring for and developing oil and natural gas reserves in Western Canada and acquiring natural resource properties. Iteration's common shares are listed on the Toronto Stock Exchange under the symbol "ITX". Other information about the Company, including the Annual Information Form for the 2008 year, is available through the internet on the Company's website at www.iterationenergy.com and on the Company's SEDAR profile at www.sedar.com.

The TSX has not reviewed this press release and does not accept responsibility for the accuracy of any of the data presented here-in.

Advisory:

Natural gas is converted to crude oil equivalent at a ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent ("boe"). Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release contains forward-looking statements, including in particular statements in respect of planned drilling as part of Iteration's drilling program and estimated production levels. Although Iteration believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Iteration can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are based on the Company's current beliefs as well as assumptions made by, and information currently available to, the Company including estimated production levels which are based assumptions for commodity prices, capital expenditures and funds from operations. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. Information regarding these factors may be found under the heading "Risk Factors" in Iteration's Annual Information Form for the year ended December 31, 2009 and in Iteration's most recent financial statement's and management's discussion and analysis, which are available at www.sedar.com. The forward looking statements contained in this press release are made as of the date hereof and Iteration undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

%SEDAR: 00002576E

For further information: Mr. Brian Illing, President and CEO at (403) 261-6883

Get ready for Generation T There's a huge global government tax bill waiting to be paid in the next decade

We're largely familiar with Generation X and Generation Y. But perhaps it is time to brace for the emergence of another generation in the United States-- Generation T, where T stands for tax.

This group can be described as young Americans, maybe aged 16 to 30, stuck with forking over higher taxes to pay off the debt legislators built up in the years leading up to the great recession, and then allowed to swell substantially in a bid to save the economy from disaster.

The American members of Generation T are likely to be hit with taxes their parents were lucky enough to avoid. Among the types they will get quite acquainted with is the VAT, or value-added tax. Think Canada's GST on a U.S. scale.

Nobody will like it, analysts warn, and protests are bound to bubble. But in the end investors will demand it in return for buying the bucket-loads of bonds Washington has to sell to finance the programs that legislators are reluctant to cut.

"The fiscal situation in the United States is not merely difficult, it is catastrophic," said Andrew Busch, global currency and public policy strategist with BMO Capital Markets. "The projections are just horrendous."

Exacerbating the U.S. scenario is the need to fund the three major entitlement programs -- Medicare, Medicaid and Social Security. Federal spending on these three big-ticket items is set to rise from 8.4% of GDP, at present, to roughly 14.5% by 2030, the Congressional Budget Office has estimated. Meanwhile, revenue will rise only modestly from its present 18.8% level.

Americans won't be the only ones singled out with new widespread taxes. The debt-to-GDP ratios in key developed economies, including Canada's, are set to swell in the coming years. But in the U.S. case, it is projected to reach triple digits -- over 100% in 2012 -- joining the ranks of Japan and Italy.

These growing debts in advanced countries will also put pressure on government imbalances as interest charges to service budget shortfalls will almost double from 1.9% of GDP in 2007 to 3.6% of GDP in 2014.

That has triggered alarm bells among the chattering classes and has prompted some prominent economists, led by Nobel Prize winner Paul Krugman, to predict that a U.S. VAT isn't just probable but inevitable.

"The reality is if you jacked up the corporate rate to the level that Washington needs, all the corporations would leave the U.S.," said Gary Clyde Hufbauer, senior fellow at the Peterson Institute for International Economics. "As for jacking up personal rates, you can't do it on the back of just millionaires -- you need to draw deep into the terrain of people, or folks that President Obama said he would never tax."

According to Mr. Hufbauer, the U.S. tax burden will have to climb significantly, from its present level of 18% to 20% of GDP to the mid-20% range.

Tax experts say a VAT is among the least-damaging taxes a government can deploy because it does not tax savings, thereby providing an incentive for people to work harder.

Other tax experts say the VAT's introduction could help fix myriad flaws in the present U.S. tax regime. Leonard Burman, director of the Washington-based Tax Policy Centre and public finance expert with the Urban Institute, said that a large fraction of households -- up to 40% -- do not pay income tax because they don't generate enough in wages or use credits to offset earned income.

"The concern is that households who do not owe income tax perceive government to be free and thus will always support new programs, even if they have very little value. Put differently, they have no stake in reducing [government] spending," Mr. Burman said in a paper for the Virginia Tax Review.

Mr. Burman has recommended introducing a VAT, whose proceeds would help finance surging health-care costs. But to soothe public fears of overtaxation, the VAT would need to be accompanied by other reforms, he suggested, such as cuts to personal and corporate income tax rates and a "credible process" to curb program spending.

Alas, some analysts wonder if this is at all possible.

Mr. Busch said the U.S. Congress appears to be "oblivious" to the need to curb spending, noting the Senate just approved a US$1.1-trillion omnibus bill that will see spending at a number of government departments climb by a staggering 10%, well ahead of inflation.

"This gives drunken sailors a bad name. At least with drunken sailors they pass out or run out of money. Congress does neither," he said.

Chris Edwards, director of tax policy studies at the Cato Institute, said the public would likely reject, in droves, a new consumption tax, regardless of its potential benefits. It will be seen as giving legislators more reason to spend, he said, adding the VAT's European origins will also anger Americans.

However, he noted there is a movement afoot in Washington to establish a special bipartisan task force to draft a deficit-reduction plan, co-led by Sen. Kent Conrad of North Dakota -- among the most high-profile VAT advocates.

"From my point of view, this appears to be a nefarious plot to implement the VAT," he said, acknowledging it could well materialize.

pvieira@nationalpost.com---------

DEBT WILL DRIVE TAXES

A rebound in the global economy is set to kick off the beginning of the next decade. But this return to growth will be accompanied by a surge of another sort -- in the amount you, the taxpayer, are about to pay to government.

The great global recession exacerbated the state of budget balances in much of the developed world. The debt burden among Group of 20 nations is expected to rise to over 120% of GDP, up from roughly 80% before the onset of the recession.

Legislators have to restore fiscal order or risk credit downgrades, such as Greece has sustained in recent weeks. Spending restraint is an option, but history dictates politicians find this hard to do -- especially with an aging population that's expecting social security and health care.

"Countries like Japan, Britain and the U.S. with large public deficits and growing debt are painting themselves into a corner whereby tax increases will be a necessity in order to stabilize debt burdens," says Jack Mintz, a leading tax expert and a professor at the University of Calgary's school of public policy.

"While governments will look to raise taxes in the most politically acceptable way, which often means imposing higher levies on the rich and corporations, there is little room for manoeuvre."

Source: Paul Vieira, Financial Post

Commodities give TSX a modest lift

The Toronto stock market started the trading week off positive Monday, led by higher commodity and financial stocks.

The S&P/TSX composite index closed up 65.17 points to 11,750.54 after a lukewarm start to the U.S. quarterly earnings season and moves by China to cool its economy had pushed the main index down more than 2 per cent last week to below where it started the new year.

The TSX Venture Exchange climbed 12.25 points to 1,605.72.

Volumes were lower than normal as New York markets closed for the Martin Luther King holiday.

A day before the Bank of Canada makes its scheduled announcement on interest rates, the Canadian dollar moved 0.28 of a U.S. cent higher to 97.42 cents (U.S.). The central bank is widely expected to leave rates – which hover near zero – alone until at least the end of the second quarter.

The base metals sector was up 1.39 per cent. The February crude contract rose 24 cents to $78.24 a barrel shortly before the TSX closed, taking the energy sector ahead 0.63 per cent.

EnCana Corp. improved 46 cents (Canadian) to $35.67, while Imperial Oil gained 46 cents to $41.10.

Oil and gas explorer Enterra Energy Trust said Monday it will convert to a corporation by the end of May, changing its name in the process to Equal Energy Ltd.

Calgary-based Enterra said Monday it wants to make the move before a change in the rules governing the taxation scheme for trusts takes effect in 2011.

Enterra units jumped 56 cents, or 25.93 per cent, to $2.72.

The financial sector moved up 0.65 per cent after losing ground at the end of last week in the wake of disappointing earnings results from American banking giant JPMorgan Chase.

TD Bank was ahead 75 cents to $64.10 and Manulife Financial closed up 22 cents at $20.54 .

The February gold contract was ahead $2.90 (U.S.) to $1,133.40 an ounce and the gold sector edged up 0.19 per cent.

Mosaid Technologies Inc. shares rose $1.45 (Canadian) to $21.51 after it said its revenue will be $3 million higher in the 2010 financial year than previously thought, rising to an estimated range of $68 million to $70 million. And Winnipeg-headquartered New Flyer Industries Inc. said it received orders for 711 buses in the fourth quarter for a total of $308 million.

Sterling Resources

TSX higher, led by rising energy mining stocks

; N.Y. closed for King holiday19 minutes ago via Canadian Press
TORONTO - Energy and mining stocks supported the Toronto stock market to a modest gain Monday morning.

The S&P/TSX composite index moved 50.2 points higher to 11,735.6 after a lukewarm start to the U.S. quarterly earnings season and moves by China to cool its economy pushed the main index down more than two per cent last week to below where it started the new year.
"When China raised the reserve requirements, it was unexpected," said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.

"All of a sudden, you say: Is some of the global stimulus going to be removed quicker than I thought?"

The TSX Venture Exchange climbed 5.64 points to 1,599.11.
Volumes were lower than normal with New York markets closed for the Martin Luther King holiday.

A day before the Bank of Canada makes its scheduled announcement on interest rates, the Canadian dollar moved 0.38 of a cent higher to 97.52 cents US. The central bank is widely expected to leave rates - which hover near zero - alone until at least the end of the second quarter.

The base metals sector was up one per cent as the March copper contract on the New York Mercantile Exchange rose five cents to US$3.42 a pound in electronic trading. Teck Resources (TSX:TCK.B) added 46 cents to $41.26 while Labrador Iron Mines Holdings (TSX:LIM) ran up 21 cents to $5.09.

The February crude contract rose 54 cents to US$78.54 a barrel, taking the energy sector ahead 0.56 per cent. EnCana Corp. (TSX:ECA) improved 61 cents to $35.82 while Imperial Oil (TSX:IMO) gained 46 cents to $41.10.

Crude prices fell every day last week, losing just over five per cent, as the first batch of fourth-quarter earnings and economic data pointed to signs of continued weakness in the U.S. economy.
Oil and gas explorer Enterra Energy Trust (TSX:ENT.UN) said Monday it will drop its income trust structure and convert to a corporation by the end of May, changing its name in the process to Equal Energy Ltd.. Calgary-based Enterra said Monday it wants to make the move before a change in the rules governing the taxation scheme for trusts kicks in 2011. Enterra units jumped 54 cents or five per cent to $2.70.

Shares in Cirrus Energy Corp. (TSXV:CYR) dropped 65 cents or 23.38 per cent to $2.13 after delivering a disappointing update on its drilling activities at its subsidiary in Holland. A platform refurbishment was meant to allow "continuous uninterrupted production" from its well. Instead, production performance has steadily declined.

The February gold contract gained $4.60 to US$1,135.10 an ounce and the gold sector climbed 0.54 per cent. Goldcorp Inc. (TSX:G) gained 65 cents to $41.25 and Kinross Gold Corp. (TSX:K) was ahead 22 cents to $19.97.

The non-commodity sector of the TSX was also supportive as Magna International (TSX:MG.A) advanced 54 cents to $59.31 and Royal Bank (TSX;RY) gained 23 cents to $55.04.
When Wall Street returns on Tuesday, the focus will turn towards the next batch of fourth-quarter corporate earnings figures, including those from Citigroup Inc. and IBM Corp.
So far, earnings have been fairly mixed, with upside surprises from the likes of Intel Corp. offset by disappointments elsewhere, most notably Alcoa Inc. and JPMorgan Chase.
"Are they going to meet their guidance? And how are they going to meet it? asked Nakamoto.
"Expectations have ratcheted up."

In other corporate news, a group of bidders including former Canadian senator Jerry Grafstein says it's preparing to make an offer for some of Canwest's (CGS.V) newspapers, including its flagship National Post. The consortium of investors also includes former Global TV executive and Montreal Star editor Raymond Heard and writer and broadcaster Beryl Wajsman.
But Nakamoto said he expected there are funds and companies that would be interested in the whole newspaper chain.

"I would think there's a bunch of private equity investors - like even Onex Corp. (TSX:OCX). Why wouldn't they look at it? It seems right up their alley. Or why wouldn't the Ontario Teachers Pension Fund look at it? There's a lot of money out there."
Canwest shares were unchanged at 8.5 cents.
Mosaid Technologies Inc. (TSX:MSD) shares rose $1.56 to $21.62 after it said its revenue will be $3 million higher in the 2010 financial year than previously thought, rising to an estimated range of $68 million to $70 million. It said the improved performance is the result of a landmark licensing agreement between the Ottawa patent firm and Samsung Electronics Co., Ltd.
Heritage Oil Corp. (TSX:HOC) says that Tullow Uganda Ltd. has exercised its right to pre-empt Heritage's sale of a 50 per cent interest of two blocks in Uganda to Italy's Eni International B.V., and will pay more than US$1.35 billion for the assets. Heritage shares ran ahead $1.20 or 14.6 per cent to $9.41.
New Flyer Industries Inc. (TSX:NFI.UN) said Friday it received orders for 711 buses in the fourth quarter for a total of $308 million. The company said the orders included 506 new firm and option orders and 205 exercised options for buses. Its units added 20 cents to $10.60.
In overseas trading, Japan's Nikkei 225 stock average ended 1.2 per cent lower while Hong Kong's Hang Seng fell 0.9 per cent.
London's FTSE 100 index was up 0.74 per cent, Frankfurt's DAX gained 0.67 per cent while the Paris CAC40 climbed 0.62 per cent.

Pescos Talks Stock...

TSX opens lower after weak U.S. data

CANADA STOCKS-TSX opens lower after weak U.S. data

09:01 EST Thursday, January 14, 2010

TORONTO, Jan 14 (Reuters) - Toronto's main stock index could open lower on Thursday after unexpectedly weak U.S. data hurt investor sentiment.

U.S. stock index futures turned negative after data showed claims for first-time job benefits rose more than expected last week, and retail sales unexpectedly fell in December. [ID:nN13117317] [ID:nN14170396] [.N]

Before the data, Canadian energy producers had been expected to get a boost from rising oil prices. But the price of crude pared gains after the U.S. number.

Canadian stocks closed higher after a choppy session on Wednesday after two days of losses.

Here is some of the news that may affect the market:

OIL REBOUNDS

Oil rose towards $80 a barrel after dropping to 2010 lows the previous day as expectations for rising demand growth in the world's top energy consumer the United States shored up prices. [O/R]

GOLD SLIPS

Gold eased slightly in Europe as the dollar firmed a little against the euro ahead of a European Central Bank policy decision later in the session, curbing interest in the metal as an alternative asset.[GOL/]

BARRICK SUES TO BREAK UP DEAL

Barrick Gold Corp is suing to halt Goldcorp Inc's planned acquisition from New Gold of a 70 percent stake in the El Morro copper-gold project in Chile, which Barrick is also trying to acquire. [ID:nN13225887]

CANWEST SWINGS TO PROFIT

Canwest Global Communications Corp , which has filed for bankruptcy protection for parts of the company, reported a first-quarter profit on Wednesday due to a large gain from the sale of its interest in Australia's Ten Network Holdings. [ID:nN13113732]

KIRKLAND LAKE IN PRIVATE DEAL

Canadian gold miner Kirkland Lake Gold Inc said on Wednesday it has entered into a bought deal private placement with underwriters that could see it raise up to C$25 million ($24.3 million) by selling share-and-warrant units, its second private placement since August. [ID:nN13222298]

CANADA'S RESEARCH ROUNDUP

Following is a summary of research actions on Canadian companies reported by Reuters on Thursday. [RCH/CA]

* RBC raises Cogeco Inc price target to C$41 from C$35; rating "sector outperform"

* Raymond James cuts Canadian National Railway Co to "market perform" from "outperform"

* Raymond James cuts Stantec Inc to "market perform" from "outperform"

* Raymond James raises SNC Lavalin Group Inc target price to C$58 from C$55

* Raymond James cuts Wajax Income Fund to "market perform" from "outperform"

* RBC raises Delphi Energy Corp price target to C$2.25 from C$1.80, rating "outperform"

($1=$1.03 Canadian) (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)

Pescod Talks about...

VENTANA GOLD

(T-VEN)

$8.05 +0.43

GALWAY RES.

(V-GWY)

$1.44 -0.03

VICTORIA GOLD

(V-VIT)

$0.84 +0.07

There’s some interesting drilling results out from some

mining exploration companies today and some of the re-

sults have to be described as spectacular. Ventana Gold for

instance, announces results that are both of a step out na-

ture and infill drilling, but some of the holes such as 93

metres of 15.8 g/t and 72 metres of 9.7 g/t is the kind of

stuff you can only dream of finding. Which is the good

news of course.

In the meantime, Ventana is locked into this itty-bitty

problem with owners of the property that were quite con-

tent with what they were being paid before, but now that

things seem to be going so well, suddenly want a lot more.

Funny how that happens.

In the meantime, Galway Resources is drilling right beside

Ventana and is expected to announce some drilling results

on their project some time in the next ten days. Suddenly,

those look quite interesting.

Meanwhile, Victoria Gold came up with another good hole

as well. A huge one of 284 metres starting virtually right

from surface and averaging about 2 1/2 g/t. Which is the

good news. The bad news? Well, there is a ton of stock

out…

************************************************************************

PEREGRINE DIAMONDS

(T-PGD)

$2.36 +0.24

LITHIC RESOURCES

(V-LTH)

$0.49 +0.07

BRETT RESOURCES

(V-BBR)

$2.21 +0.19

Just the other day we were getting into some of the top

picks of John Kaiser and some of them are having quite a

day today, such as Brett Resources, his number one pick

in the gold sector.

Meanwhile, Amazon Mining should have results out on

its drilling in Brazil any time soon, but time for some up-

dates on some of his other top picks.

Peregrine Diamonds is a stock that just flew for him a cou-

ple of months ago, has settled back recently, but going into

the coming year it is one of his top selections when we

visited with him a week ago. He writes, “Peregrine Dia-

monds is gearing up for a $13.5 million two-stage explora-

tion program for its Chidliak diamond project on south Baf-

fin Island in 2010….Peregrine and its joint venture partner

BHP Billiton announced details about the program which

will see BHP vest for 51% after spending $22.3 million in

2009-2011. Assuming the entire budget is spent, Peregrine

will have to chip in (only) about $1 million for the 2010 sea-

son…”

“The program underlying the budget suggests that

BHP is eager to assess the scale of the Chidliak field be-

fore spending big dollars on bulk sampling…” Kaiser, in

his Bottom Fishing Report writes, “Drilling is expected to

start in April. During the March-June stage, they will fly a

large airborne geophysical survey and conduct extensive

ground geophysical surveys on potential drill targets….”

He continues, “Price target for 2010 is the $5-$10 range

as further evidence builds that a world class diamond field

comparable to Ekati/Diavik Is present on south Baffin Is-

land.”

Another of Kaiser’s favorites when we cornered him

over a week ago was what we would have called “a

cheapie with a chance” and it’s almost doubled in the past

week. So it might be a little late mentioning it, but that’s

Lithic Resources. Lithic has a lot to do with the theme Kai-

ser sees for a year down the road...and that’s that zinc,

which currently may be in slight over-supply is going to

face several of its significant mines being exhausted or

shutting down production and suddenly zinc, instead of

being an over-supply, will become quite scarce and he

thinks the metal will fare quite well.

Tiny Lithic is actually a cheap two-way play and the

stock that he was suggesting back at $0.10 has already

had a run, but the Crypto project also has significant in-

dium content and he suggests that rare earth may be

worth a chunk of change down the road as well.

Kaiser writes, “Accordingly, we are converting the bot-

tom-fish buy recommendation into a Spec Cycle

Hold...with a price range of $0.75-$1.00 as a reasonable

target for later this year if Lithic gets the financing for its

2010 program and zinc maintains a price above $1.00 per

lb.” Kaiser continues, “Bonus upside would come if

Crypto’s indium content starts to attract security of sup-

ply interest from indium end-users, or if the exploratory

drilling that will be part of the 2010 program reveals a sig-

nificant high grade silver system beneath the Utah work-

ings, deep drilling beneath the zinc skarm freshes out the

previously encountered high grade moly system, and,

perhaps most importantly for the mine development sce-

nario, the eastward extension of the zinc skarm minerali-

zation boosts the overall zinc-indium resource.”

Kaiser continues, “The big question will be whether or

not Lithic’s Crypto project achieves sufficient credibility

to justify taking the project through feasibility in 2011….”

Business confidence nearing record high Majority of executives expect growth, a need to hire, BoC survey finds

OTTAWA–Canadian businesses reported near record optimism about their future sales and say they are stepping up plans to hire more workers and invest, the Bank of Canada said Monday.

Seventy per cent of executives said sales growth will quicken over the next year, while another 21 per cent expect it to slow, the bank said in a quarterly Business Outlook Survey. The gap of 49 percentage points is close to 53 in the last survey, the biggest since the question was first asked in 1998.

Executives on balance said for the second quarter since mid-2007 that credit conditions had eased. Twenty-six per cent of executives said loans were easier to get, compared with 13 per cent who said they were harder. In the last report, the gap was four percentage points.

The survey indicated that terms have improved more for large companies, with some small firms still facing tighter lending terms.

Executives also predict slower inflation over the next two years, and on balance plan to buy equipment and hire workers.

On hiring intentions, 54 per cent of the 100 firms surveyed by the bank said they planned to add employees in the next year, as opposed to only 14 per cent that said they expected to reduce staff.

The balance of opinion on adding to payrolls in the next year was 40 percentage points, the highest since the first quarter of 2007. For investment in machinery and equipment, the balance of opinion was 17 percentage points, the highest since the third quarter of 2008.

In a news conference in St. Boniface, Man., Finance Minister Jim Flaherty said he was encouraged that both consumer and business confidence were improving but added that dangers remained.

"The economy is still recovering ... (but) has not recovered," he said.

TSX falls short as energy shares decline

Last Updated: Monday, January 11, 2010 | 06:16 PM EST

Financial Post

Story courtesy of

The Toronto Stock Exchange closed Monday’s session just short of flat as positive news out of China was offset by forecasts for milder weather in the U.S. in the coming weeks, the latter of which hurt the energy sector.

The S&P/TSX composite index was down 6.7 points, or 0.06%, to 11,947.13. The most positive sectors were materials, telecommunications and consumer discretionary, while the biggest sectors, energy and financials, kept things in the negative.

The biggest detriment to the TSX index was Talisman Energy Inc., which was down 3.55% to $19.85. The most positive factor to the benchmark was Toronto-Dominion Bank, which was up 0.71% to $64.18.

Just after Monday’s open, the TSX benchmark index surpassed the 12,000 threshold, a level not seen since September 2008 when markets were in a downward spiral that would see it going almost as low as 7,500 by March.

The TSX Venture composite index was up 3.42 points, or 0.21%, to 1,608.53.

A number of markets around the world gained strength after news that Chinese exports rose for the first time in more than a year, with the December figure up 17.7% compared with last December. Imports surged 55.9% for the year — the strongest increase since February 2004.

Closer to home, Canada Mortgage and Housing Corp. said December housing starts rose 5.9% to an annual rate of 174,500 units in December. That beat expectations for between 160,000 and 165,000.

Statistics Canada, however, said the value of building permits fell in November by 4.6% from the previous month to $5.9-billion.

North American investors will soon be weighing their portfolios against a slew of corporate results as the fourth-quarter earnings season gets underway. Alcoa Inc. reported results after the close on Monday that trailed analysts’ forecasts. Earnings from Intel Corp. are due Thursday and JPMorgan Chase & Co. is scheduled to report Friday. Most major Canadian companies will not start releasing earnings until the latter part of the month.

“Equities have been advancing ahead of earnings season, which suggests that there may be more optimism this time around, particularly since confession season has been eerily quiet with very few profit warnings,” Colin Cieszynski, an analyst with CMC Markets Canada, said in a note. “This suggests that either companies are fairly confident about meeting forecasts or we may be in for a few surprises.”

On the New York Mercantile Exchange Monday, crude oil was down 23 cents to US$82.52 a barrel, after being up earlier in the day. Natural gas took a beating on U.S. weather forecasts, falling 29.5 cents to US$5.454 per million BTUs. Gold was up $12.50 to US$1,151.40 an ounce.

The Canadian dollar was down 24 basis points to 96.76 cents US.

U.S. markets were mixed. At the close, the Dow Jones industrial average was up 45.8 points, or 0.43%, to 10,663.99, helped along by industrial stocks after the China data came forth. The Nasdaq composite index was down 4.76 points, or 0.21%, to 2,312.41, indicative of profit-taking after this measure hit a 16-month high on Friday.

Most of the main European and Asian markets were up Monday, except in France, where the CAC index was down 0.5%.

Goldcorp to buy Xstrata stake in El Morro project

UPDATE 3-Goldcorp to buy Xstrata stake in El Morro project

11:51 EST Thursday, January 07, 2010

* To acquire 70 pct stake through deal with New Gold

* New Gold shares up 6.5 pct in Toronto (Adds comments from Goldcorp CEO, Barrick spokesman; updates share price; in U.S. dollars unless noted)

By Euan Rocha

TORONTO, Jan 7 (Reuters) - Goldcorp Inc said on Thursday it will spend $513 million to buy mining giant Xstrata's 70 percent interest in the El Morro copper-gold project in Chile, foiling Barrick Gold's plans to acquire the stake.

Goldcorp will buy the stake through a creatively structured deal with fellow Canadian miner New Gold Inc , the minority stakeholder and Xstrata's partner in El Morro.

In October, Swiss-based Xstrata agreed to sell its interest in the project to Canada's Barrick, the world's No. 1 gold miner, for $465 million. But, New Gold had the right of first refusal on Barrick's purchase -- meaning it had the right to match the offer -- until January 2010.

New Gold, through a wholly owned subsidiary, will exercise that right and acquire the 70 percent interest.

Goldcorp will advance $463 million to New Gold to fund the deal. After the acquisition by the New Gold subsidiary, Goldcorp will acquire that subsidiary from New Gold.

Goldcorp will pay New Gold $50 million in cash upon closing the acquisition of the subsidiary. Goldcorp has also agreed to amend certain terms of the El Morro shareholders agreement, with respect to New Gold's capital funding obligations.

On closing, Goldcorp will hold 70 percent of El Morro and New Gold 30 percent.

El Morro is an advanced stage copper-gold project located in north-central Chile. It contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper.

Goldcorp looks for large, high quality assets that have low operating costs and a long mine life, Chief Executive Chuck Jeannes told Reuters.

"This ticks all of those boxes. Additionally, we look for large property positions that are relatively unexplored, so that we have the opportunity for continued organic growth -- this property also fits that bill," said Jeannes.

For Barrick, the property had the additional appeal of promising costs-savings, as it is located not far from its Veladero mine, and Pascua Lama and Cerro Casale projects.

Barrick spokesman Vince Borg said the company would review the agreement and then decide whether it might try to stay in the process.

"It would depend on the agreement that they struck (but) we haven't seen that yet," he said.

Borg played down the prospect of frosty relations between Barrick and Goldcorp, which are the world's top two gold miners by market size and partners on the Pueblo Viejo project in the Dominican Republic.

"We're partners, peers and competitors," he said.

The deal comes as Goldcorp is also entangled in a bidding war for Canplats Resources , which owns the Camino Rojo gold-silver deposit in Mexico that sits close to Goldcorp's Penasquito gold-silver mine. [ID:nN24183175]

Construction of the Penasquito mine is nearing completion and Goldcorp plans to use the expertise of the team that led the build of that mine, to help spearhead work on the El Morro project.

Goldcorp expects its first full-year of production from El Morro in 2015, said Jeannes.

New Gold shares were up 6.5 percent at C$4.28 midday on the Toronto Stock Exchange, while Goldcorp fell 8 Canadian cents to C$43.30.

($1=$1.03 Canadian) (Reporting by Euan Rocha and Cameron French; editing by Rob Wilson)

Tethys Petroleum Limited Uzbekistan Update

Tethys Petroleum Limited Uzbekistan Update

08:46 EST Monday, January 11, 2010

TASHKENT, UZBEKISTAN--(Marketwire - Jan. 11, 2010) - Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL)) today gave an update on activities in Uzbekistan.

Tethys is honoured to announce that the President of Uzbekistan, his Excellency President Karimov, has issued an Order that includes instructions to provide support to the oil and gas activities of Tethys in Uzbekistan. The Order instructs NHC Uzbekneftegaz, the Uzbek state oil and gas company, to evaluate further expansion of cooperation with Tethys in carrying out exploration works on perspective areas and increasing oil production on existing fields.

Julian Hammond, Chief Commercial Officer of Tethys, commented, " We are very pleased to receive this support from his Excellency President Karimov in furthering our activities in Uzbekistan. The fact this Order has been issued after a relative short period of activity by the company in Uzbekistan reflects the commitment we have shown on our existing project and also the commitment to expand our activities in the oil and gas industry in Uzbekistan."

The first focus area is to support Tethys in increasing production at the North Urtabulak Oil Field in south western Uzbekistan where Tethys currently operates and produces oil under a Production Enhancement Contract ("PEC") and possibly in other fields.

Tethys' new field development well, NUR116, at the North Urtabulak oilfield, is drilling on schedule and has reached the next casing point at a depth of 2,007m (6,582 ft) with the 9 5/8 " casing about to be run and cemented. The planned TD for the well is 2,475m (8,117 ft). The NUR116 well is located in the relatively undrilled "NW Salt Zone" of the field and is being drilled for the Company by Xibu Drilling Engineering Company Limited (part of Great Wall Drilling Company) on a turnkey basis. Tethys is currently completing a dynamic reservoir model for the field, to assist in field development planning, and is in the process of introducing several new techniques to increase production including radial drilling and organic acid stimulation. Tethys believes there is substantially more recoverable oil remaining in the North Urtabulak oilfield, reported as the second largest oilfield in Uzbekistan when discovered. It is expected that the new well will be put on production immediately it is completed.

The second focus area is assisting Tethys in the area of new exploration. Tethys believes there is substantial exploration potential in Uzbekistan, including in the Ustyurt basin in Northern Uzbekistan. Tethys has recently announced a new exploration oil discovery in the Ustyurt basin in Kazakhstan which has already flowed oil from the first zone to be tested and with the results from the second zone expected some time in the next month. Tethys believes that its unique technical knowledge gained in Kazakhstan could be invaluable in any potential joint exploration work with Uzbekneftegaz in similar geology in Uzbekistan. Tethys believes the issue of this Order will facilitate discussions with the State oil and gas company and help progress toward obtaining some exploration acreage in this attractive area.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risks relating to the sufficiency of the cash flow from SSEC to repay funds advanced by TTL. See the description of risks and uncertainties and underlying factors and assumptions relevant to the Company's business, including its exploration and development activities, contained in the Annual Information Form dated March 31, 2009 (which are incorporated herein by reference). The "forward looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

FOR FURTHER INFORMATION PLEASE CONTACT:

Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com www.tethyspetroleum.com 

or

In Kazakhstan PG Communications Ardak Akanov, Managing Director +7 (727) 272 8867, +7 (727) 272 8237  +7 (727) 272 7745 development@pressclub.kz 

or

In Asia-Pacific Quam IR Anita Wan Associate Director  + (852) 2217-2999 anita.wan@quamgroup.com 

"Get Your Gold the Hell Outta Here!"

"Get Your Gold the Hell Outta Here!"

By Doug Hornig, Casey's Gold & Resource Report
That's the directive that came down from HSBC USA in late November.

It seems that everyone these days wants gold. Real, physical gold coins that they can hold in their hands, or bars that they're assured are resting safely in a well-guarded vault. HSBC's New York vault, for example, buried deep below its 5th Avenue tower, where it has stored people's gold since it inherited the facility from Republic Bank a decade ago.

But no more.

HSBC has served notice to its retail customers - many of whom are simply middle-men and custodial services which store gold with HSBC on behalf of hundreds of their own account holders - that all their gold must be out of its facility by July 2010. Otherwise, folks, prepare for an unwelcome knock at your door. HSBC's letter says that, in the absence of directions to the contrary, clients' metal "will be returned to the address of record... at your expense."

Picture, if you will, what the Wall Street Journal reported: "fleets of armoured cars laden with gold ferrying the precious metal out of New York."

Where to? That's a good question...

Equedia Weekly Report

With the uncertainties of 2009 behind us, the start of 2010 has been nothing short of amazing. Just last month, we had analysts on opposite sides of the table arguing and debating the sustainability of the economic turnaround. But with the New Year in full effect, the analysts and economic forecasters have changed their tune and are now singing the same song. The majority of them now believe that our markets will not only sustain this growth, but continue to climb slowly throughout the year.

Here at Equedia, we certainly believe ourselves to be optimists and love hearing the positive outlook given by these analysts and forecasters.

But not for the reasons you may believe

You see, we have continually tracked the numbers and the predictions of these economic analysts and forecasters. Whenever they make a prediction, we listen very closely. But that's where it gets interesting. If they predict one thing, we place bets in the opposite direction. Let's give you a few examples of why we do this.

Remember when oil was gaining strength in 2008? Analysts, including Goldman Sachs, were calling for oil to hit $200/bbl. That's when we went short. Shortly after the highs of near $150/bbl, oil began its plunge. Then analysts once again changed their views and called for $25 oil:

"With demand vanishing across all key oil consuming regions, benchmark crude oil prices continue to plummet," Merrill said in a research note. "A temporary drop below $25 a barrel is possible if the global recession extends to China."

The global recession did extend to China. That's when we went long. Since then, oil has never looked back and now trades at over $80/bbl.

What about when they told everyone to horde and hang on to their cash in March of 2009 when the market crashed to its lowest point in years? That was our signal to empty our pockets and invest in mining and resource stocks (see Playing Ball with Resources by clicking here.)

Since then, the TSX Venture (an exchange weighted heavily in mining and resource) has gained more than any other exchange (see Where the Billionaires Invest by clicking here.)

So now that analysts are calling for a continuance of growth and a strong performing 2010, we are making bets in preparation of the opposite. Now we are not saying that 2010 could not be a great year for the markets, but we have to remain ahead of the herd by making bets that can help protect us from what is ultimately going to happen.

Inflation

One of the biggest problem our economy now faces is the uncertainty of how strong inflation will hit and how soon. The governments (both in the US and Canada) will undoubtedly have to raise interest rates which cannot remain at these levels.

Now the fear arises when you combine the amount of money that is being printed (see The Impressive News Release by clicking here) with how low current interest rates are.

As many of you already know and have experienced not too long ago, raising interest rates is the prime combatant of inflationary pressures. In the United States, interest rates are decided by the Federal Reserve (see What the Fed Doesn't Want You to Know by clicking here.)

As explained by Investopedia, interest rates directly affect the credit market (loans) because higher interest rates make borrowing more costly. By changing interest rates, the Fed tries to achieve maximum employment, stable prices and a good level growth. As interest rates drop, consumer spending increases, and this in turn stimulates economic growth.

Contrary to popular belief, excessive economic growth can in fact be very detrimental. At one extreme, an economy that is growing too fast can experience hyperinflation, resulting in major problems.

Keep in mind that while inflation is a major issue, it is not the only factor informing the Fed's decisions on interest rates. For example, the Fed might ease interest rates during a financial crisis to provide liquidity (flexibility to get out of investments) to U.S. financial markets, thus preventing a market meltdown. This has been the clear goal of the our recent economic crisis.

The amount of borrowing already achieved is still not yet enough to get our economies back to where they were just a few years ago. Combine that with the growth our economies need to achieve to replace all the lost jobs, plus the amount of borrowing that's being done at current interest rates, and we end up with a serious problem.

How does that relate to your portfolio?

The impact of inflation on your portfolio depends on the type of securities you hold. If you invest only in stocks, worrying about inflation shouldn't keep you up at night. Over the long run, a company's revenue and earnings should increase at the same pace as inflation.

The exception to this is stagflation.

The combination of a bad economy with an increase in costs is bad for stocks (which is what is happening as we speak.) Also, a company is in the same situation as a normal consumer - the more cash it carries, the more its purchasing power decreases with increases in inflation.

The main problem with stocks and inflation is that a company's returns tend to be overstated. In times of high inflation, a company may look like it's prospering, when really inflation is the reason behind the growth. When analyzing financial statements, it's also important to remember that inflation can wreak havoc on earnings depending on what technique the company is using to value inventory.

Fixed-income investors are the hardest hit by inflation. Suppose that a year ago you invested $1,000 in a Treasury bill with a 10% yield. Now that you are about to collect the $1,100 owed to you, is your $100 (10%) return real? Of course not! Assuming inflation was positive for the year, your purchasing power has fallen and, therefore, so has your real return. We have to take into account the chunk inflation has taken out of your return. If inflation was 4%, then your return is really 6%.

This example highlights the difference between nominal interest rates and real interest rates. The nominal interest rate is the growth rate of your money, while the real interest rate is the growth of your purchasing power. In other words, the real rate of interest is the nominal rate reduced by the rate of inflation. In our example, the nominal rate is 10% and the real rate is 6% (10% - 4% = 6%).

As an investor, you must look at your real rate of return.

Unfortunately, investors often look only at the nominal return and forget about their purchasing power altogether. (credit Investopedia)

The best way to combat this scenario is to invest in inflation-hedging bets while maintaining your diversity in stocks. This means putting your money in hard assets like real estate or precious metals such as silver and gold while adding stock positions tied to the mining and resource sectors.

As mentioned in the above scenario, If you invest only in stocks, worrying about inflation shouldn't keep you up at night as a company's revenue and earnings should increase at the same pace as inflation.

But if you factor in mining and resource based investments into the equation, there is an opportunity to not only beat inflation, but also protect yourself against stagflation.

That is why to this day we can continue to remain bullish in the resource sector. Every day the resource and miners are continuing their climb and this is clearly evident in the market performance of the Canadian miners. Positive news announcements from precious metals juniors have helped many of them achieve new 52-week highs.

This lead us to our next story and update on one of our featured gold companies, Trueclaim Exploration (TSX-V: TRM).

Trueclaim (TSX-V: TRM) has climbed strongly from a low of $0.12 in mid December to the closing price this Friday of $0.24. That's a 100% percent increase in share price in less than one month.

Based on our emails and the chatter on the boards, many shareholders believe the recent run in share price may be attributed to the anticipation of the preliminary results from their Phase I drill program.

The wait is over.

After the market close this Friday, Trueclaim (TSX-V: TRM) announced their preliminary results from their Phase I drill program at their Scadding Gold property.

In three of the first four holes evaluated to date by the geologic team, visible gold mineralization was identified with highlights including the intersection of 47.59 grams per tonne of gold over one metre in hole TRM-09-13.



In outlining the results, John Carter, the President of Trueclaim (TSX-V: TRM), began by noting, "The Phase I program was designed to accomplish three main goals: to confirm the presence of historical non-compliant NI 43-101 gold occurrences as reported in previous reports of drill programs undertaken by others; outline the mineralized zones suggested in previous non-compliant NI 43-101 reports; and develop a better understanding of this mineralization. In multiple areas the results exceeded our expectations."

What stands out in the news release is not just the confirmation of visible gold mineralization, but the confirmation that the results to date suggests that the mineralization may have continuity between all five zones drilled.

More results from their Phase I drill program are expected soon which will help lead Trueclaim (TSX-V: TRM) into their Phase II program to determine their open-at-depth potential and confirm the zone to zone continuity of mineralization.

A new full report on Trueclaim (TSX-V: TRM) will be released in the near future.

We`re looking forward to 2010.

Money Managers Have Confidence In 2010

Roseman: Two money-making stock portfolios

It has been a lost decade for stocks, from the tech bubble's implosion in early 2000 to the credit crunch and recession of the late 2000s.

Investing in U.S. stocks was worse than keeping your money under the mattress, as the S&P 500 index lost an average 2.5 per cent a year.

International stocks were also a money loser, as the MSCI world index fell 0.7 per cent a year during the decade.

But you could have earned handsome returns sticking with Canadian stocks.

The S&P/TSX index (in U.S. dollars) had a compound annual growth rate of 7.8 per cent a year from August 1999 to August 2009, according to research by Scotia Capital.

"Canada is rising because Asia is rising," says portfolio manager John Stephenson, senior vice-president of First Asset Funds Inc.

In emerging markets, such as China and India, you can find masses of people moving from the country into the city, becoming middle-class consumers, buying fridges and cars for the first time.

"The secret of investing is looking forward, seeing where world growth is coming from, not where it's been. The future will be dominated by a rising Asia," Stephenson says.

But Asia's loosely regulated stock markets can sting you if you're not an expert. "Where you want to invest is in Canada, the supply chain to global growth," he says.

Stephenson got his MBA at INSEAD in France, moved to the United States and worked at Enron Corp. for almost four years. This was before the energy trading firm failed and its executives were charged with criminal activity.

He still admires the U.S., but feels it's no longer innovative.

"About 40 per cent of the S&P 500 index's earnings growth at the end of 2007 came from financial services," he says. "And a lot of that growth came from securities linked to subprime residential mortgages. They seemed to offer a perpetual profit machine, one we now know was largely a sham."

I liked Stephenson's strategy, which he lays out in a book, Shell Shocked: How Canadians Can Invest After the Collapse (Wiley, $32.95), published last fall.

But I also wanted to know more about finding large-cap Canadian stocks that should benefit from Asia's rise in the coming decade.

So, I asked him to put together two $50,000 stock portfolios – one for investors who don't plan to retire for years and another for those who want income to live on or reinvest.

The growth portfolio has a dividend yield of 1.33 per cent and a 12-month target return of 19.16 per cent. While focused on commodity stocks, it also has technology (Research In Motion, Bombardier and CAE) and financials (Manulife and Sun Life).

The defensive portfolio has a dividend yield of 4 per cent and a 12-month target return of 9.4 per cent. It includes more high-yield bank stocks (TD, RBC), utilities (Enbridge, Emera, Fortis) and telecommunications (BCE, Rogers).

Precious metal stocks (Barrick and Goldcorp) show up in the growth portfolio, but are not recommended for income investors.

Stephenson endorsed the broad-based S&P/TSX composite index exchange-traded fund, as well as ETFs linked to energy, materials and financial indexes.

I'll check on these two portfolios, built on the idea that Canada is a supply chain for Asian growth, in three months to see how they're doing.

Scam warning for men

Scam warning for men

This is the first warning I have seen for men. I wanted to pass it on in case you haven't heard about it before.

A 'heads up' for those men who may be regular Lowe's, Home Depot, or Costco customers. This one caught me by surprise.

Simply going out to get supplies has turned out to be quite traumatic.

Don't be naive enough to think it couldn't happen to you or to your friends.

Here's how the scam works:

Two seriously good-looking 20-something girls come over to your car as you are packing your shopping into the trunk.

They both start wiping your windshield with a rag and Windex, with their breasts almost falling out of their skimpy T-shirts. It is impossible not to look. When you thank them and offer them a tip, they say 'No' and instead ask you for a ride to McDonalds.

You agree and they get into the back seat.

On the way, they start undressing.

Then one of them climbs over into the front seat and starts crawling all over you, while the other one steals your wallet.

I had my wallet stolen November 4th, 9th, 10th, twice on the 15th, 17th, 20th, 24th, and 29th. Also December 1st and 4th, twice on the 8th, 16th, 23rd, 26th and 28th; three times last Monday and very likely again this upcoming weekend.

So tell your friends to be careful. What a horrible way to take advantage of men. Warn your friends to be vigilant.

Wal-Mart has wallets on sale for $2.99 each. I found cheaper ones for $1.99 at Lowe's and bought them out.

Also, you never will get to eat at McDonalds. I've already lost 11 pounds just running back and forth to Lowe's, Home Depot and Costco.

Whew! These are dangerous times.

COASTAL ENERGY PACIFIC RUBIALES

COASTAL ENERGY

PACIFIC RUBIALES

Coastal Energy

was an interesting story with a great management team with

assets in Thailand and offshore Thailand. However, two

years ago they didn’t have much other than hope going for-

ward.

Now they are up close to 10,000 barrels a day and they

spudded the Songkhla-B prospect just before Christmas and

there should be results out some time in the next while. The

fact that Coastal is heading up strongly in the last few days

suggests that this well might have come up with something

for it to be making a move like this.

We caught up with Fred Kozak who has been advocating

this story for some time (as has Keith Schaefer of the Oil

and Gas Investments Bulletin) and Fred tells us the signifi-

cance of what is going on. There are two blocks on this tar-

get that they are drilling and the two faults have targets—

one of potentially 30 million barrels, the other of 70 million

barrels. Needless to say, if both of them hit, this story is

going to the moon. If not…well, this folks is what explora-

tion is all about.

Meanwhile, it’s that time of year we ask all our favourite

stock pickers if they could only buy one stock today, what

would it be? Kozak suggests that he is now showing the

strength of his conviction as he ups his target on Pacific

Rubiales to $25.00. While Pacific Rubiales has had an abso-

lutely amazing run (just like Bankers Petroleum, Coastal and

a few others) but a $25.00 target definitely is one of the suc-

cess stories of the day, should it get there.

I guess we owe Freddie a bottle of single-malt scotch

which is what he celebrates with when a story comes in big

and I suspect if Coastal comes up with that kind of news in

the next couple of weeks, there will be a few corks popping

around Houston.

We come up with the second question Freddie...if you are

a retail investor, Pacific Rubiales is now kind of out of your

league. Have you got any juniors? “Yes” he says, just

check out this one story that is a cheapie associated with

Pacific Rubiales.

**************************************************************************

East Asia has had a bit of a correction over the last

couple of days and Dave Coffin says it is just a normal

correction in an ongoing good story.

Meanwhile, Nicolas Campbell updates us on Keegan

which is having a great day today and he suggests that a

scoping study should be ready by the end of this month

which is going to give the analysts something to look

forward to. More drilling results should also be out in a

couple of weeks as well. He also wouldn’t be surprised

to see the company acquire additional land in their hold-

ings in Ghana.

Meanwhile Campbell also points out more takeovers

today with Barrick and Goldcorp arguing over New Gold.

But he does suggest that that’s a probable exit strategy

for Keegan down the road…at some point, somebody

bigger buys them out.

We note several analysts suggesting several compa-

nies work in the area of Ghana and Red Back might be an

obvious buyer.

AMAZON MINING

(V-AMZ)

$2.35 +0.24

THALLION PHARM.

(V-TLN)

$0.30 +0.01

As we’ve mentioned, it’s the time of year to ask the

stock pickers and people with significant companies for

their selections for the coming year. John Kaiser has had

winner after winner after winner in the past year—

everything from rare earths to diamonds to you-name-it.

One that we have latched onto and even visited Brazil to

see first-hand is Amazon Mining. The stock hits new highs

today and Jed Richardson, the geologist/VP with the com-

pany tells us to expect additional drilling results early next

week.

We asked him for a stock pick, particularly since he was

one of those advocating Wavefront last year and he goes

with a weird one. “I’m aware of the plight of pharmaceuti-

cal stocks” he says, but he has big expectations for Thallion

Pharmaceutical, which has just signed a mega-deal with LFB

Biotechnologies of France. Richardson says the company

is trading for less than cash in the till and if their special-

ized drug works for different kinds of e-coli problems, he

can see this story attracting a lot of attention.

Canadian Arrow reports drill results including new nickel copper discovery

Canadian Arrow reports drill results including new nickel copper discovery

cnw






SUDBURY, ON, Jan. 7 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company") reports the discovery of a new nickel copper sulphide mineralized zone while drill testing the Night Danger exploration target area. A nine metre wide section of stringers and blebs of sulphides assayed 0.57% Ni and 0.45% Cu. Two sections within this interval assayed greater than 1% nickel. The Night Danger area is a new showing identified by the Company and has no previous exploration history.


The Night Danger target was identified during the Canadian Arrow 2008 VTEM Airborne Survey in the Turtlepond Lake Area. The well pronounced anomaly, detected on two adjacent 100 metre spaced flight lines, is situated in a swampy area with no surface exposure. Diamond drill hole ND-09-1 intersected two separate intervals of sulphide mineralization between 63.45 and 88.05 metres down the hole. Narrow sections of up to 1.3% Nickel are contained within the lower sulphide horizon.





Table 1 - Night Danger (ND) and Glatz (GZ) Significant DDH Assay Results




<<
Hole From To Length Ni% Cu% Co% Au Pt Pd Ag
(m) (m) gpt gpt gpt gpt

ND-09-1 63.45 71.85 8.40 0.27 0.22 0.01 0.01 0.01 0.00 0.97

Includes 66.75 68.80 2.05 0.60 0.42 0.02 0.02 0.01 0.00 2.00

ND-09-1 79.00 88.05 9.05 0.57 0.44 0.02 0.03 0.03 0.01 1.16

Includes 79.00 79.80 0.80 1.04 0.13 0.04 0.00 0.02 0.01 0.50

Includes 85.30 86.25 0.95 1.31 1.99 0.04 0.04 0.14 0.01 4.00


GZ-09-2 45.0 50.9 5.9 0.34 0.17 0.02 0.02 0.00 0.00 1.27
>>






At the Glatz area six diamond drill holes (1,056 m) were completed to test surface showings with coincident geophysical anomalies. Sections of disseminated and blebby sulphides have been intersected; however the mineralization between holes is indicated to be narrow and discontinuous.


Deeper penetrating ground geophysical surveys will be completed at the Night Danger and other areas. Additional drill results to be reported from the Emmons Lake and Double E target areas are forthcoming.





Analytical Method





Mineralized diamond drill hole intervals reported are down hole core lengths only. NQ diameter drill core samples are split in half; one half being retained in its original core box and the second half sent to an independent commercial laboratory for analysis. Samples are analyzed by ALS Chemex Laboratories in Vancouver, BC. Samples analyzed for base metals (nickel, copper, and cobalt) are digested with a four acid digestion technique with an ICP-AES finish. Precious metals, (platinum, palladium and gold), are fire assayed with an ICP-AES finish.


The exploration program is being carried out under the direction of The Company's Vice President of Exploration, Todd Keast P. Geo., a qualified person as defined by National Instrument 43-101. The information in this release was prepared under the direction of Kim Tyler, P. Geo., President of the Company, a qualified person as defined by National Instrument 43-101.





About Canadian Arrow Mines:





Canadian Arrow Mines Limited is focused on acquiring and developing nickel sulphide deposits near existing infrastructure. The Company's principal asset is the Kenbridge Project, a nickel-copper sulphide deposit containing over 44,000 tonnes of nickel in the measured & indicated classes, (Sedar, Aug. 19, 2008), as follows:




<<
- Measured Resource: 3,546,000 tonnes grading 0.45% nickel,
0.24% copper, 0.015% cobalt.

- Indicated Resource: 3,593,000 tonnes grading 0.79% nickel,
0.42% copper, 0.018% cobalt.
>>






The deposit remains open in three directions, is equipped with a 620 m shaft and has never been mined.





*National Instrument 43-101: Mr. E. Puritch, P. Eng., Ms. Tracy Armstrong, P.Geo., and Antoine Yassa, P.Geo. of P&E Mining Consultants Inc. are the independent qualified persons for the Kenbridge resource estimates.





Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.





Additional information relating to Canadian Arrow is available on SEDAR at www.sedar.com





This press release may contain "forward-looking statements" within the meaning of the Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume, any obligation to update these forward-looking statements.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Market Overview

http://www.theglobeandmail.com/report-on-business/

Pescod Talks about...TRANSGLOBE ENERGY

TRANSGLOBE ENERGY
You can tell that Transglobe Energy is having a little bit of
a problem these days as oil prices head up, most oil com-
panies are going up and Transglobe is going the other way.
It has a whole bunch to do with politics as this company is
associated with Yemen.
We don’t know whether it’s just a handful or whether it
is several hundreds of Al-Qaeda that are creating all the
damage and concern in Yemen, but there are certainly at-
tracting the attention. Today the British and Americans
have decided despite the small numbers of Al-Qaeda, they
are going to be shutting down their embassies and British
Prime Minister Gordon Brown calls the country a “failed
country.”
It’s one of the poorest countries on the face of the earth,
but what next for Transglobe? Good question. First of all,
Transglobe has been moving a lot of its operations to
Egypt recently and two-thirds of their production now
comes from that country and it’s growing there.
In the meantime, Transglobe had been getting some
chit-chat that management and some big shareholders
would be probably looking for an exit strategy within the
next twelve months given the fact that they are currently
flirting with 10,000 barrels a day, but this little political
problem with Al-Qaeda and all, just might give them the
odd problem or two.
Bloomberg’s on the weekend came up with a rather in-
teresting observation...over the last decade no money was
made in American markets. It’s been a lot better in other
countries, particularly the Brit Countries, but still, it made
Bloomberg ponder the fact that suddenly you are learning
that it may not be that easy to make money in the markets
and secondly, the old strategy of buy and hold might be
passé.
In the meantime on the weekend, well-known technical
analyst Don Vialoux had some thoughts on what next for
the markets as he wrote in the Financial Post, “Equity mar-
kets are expected to follow their traditional four-year Presi-
dential Cycle, implying strong equity markets in the first
half of the year followed by a sharp decline into the third
quarter, followed by an important recovery beginning in
November.
A major reason for weakness in the third quarter is an-
ticipation of the U.S. mid-term election in the first week in
November.
Historically, political rhetoric escalates in the third quarter prior to the election. Equity markets respond to disap-
pointment about the ability of the President and Congress to pass promised legislation successfully.”
Meanwhile of more interest to us is Vialoux’s thoughts on seasonal influences as he writes, “Equity markets on
both sides of the border are expected to follow their traditional seasonal pattern in 2010. Look for choppy markets
during the fourth-quarter earnings report period in January and early February, followed by gains into early May in
anticipation of strong first-quarter results. There could be a significant decline from May to October, followed by a
strong upside move in November and December.”
He adds, “The best seasonal sector play in 2010 likely will be in the energy sector. Colder-than-average weather
this winter will prompt energy prices and energy equity prices to move higher during their seasonally strong period
between February and May.”

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