Friday, December 31, 2010

Caledonia Mining Company (CALVF) Updated Chart

This updated chart says Caledonia Is heading higher as shown in this chart a couple of days ago.

Thursday, December 30, 2010

Silver Shortage Confirmed Again

Below is the release from the U.S. Mint confirming the shortage of available silver so meet demand as required by law. The U.S. Mint must produce quantities sufficient to meet public demand and yet is is unable to follow the law due to the Silver Shortage.

American Eagle Silver Uncirculated Coin

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Until recently, all available silver bullion blanks were being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .”

Although the demand for precious metal coins remains high, the increase in supply of planchets—coupled with a lower demand for bullion orders in August and September—allowed the United States Mint to meet public demand and shift some capacity to produce numismatic versions of the American Eagle One Ounce Silver Proof Coin.

However, because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced.

The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.


Wednesday, December 29, 2010

Caledonia Mining Company (CALVF) Daily Chart Update

After laying dormant for a long time, Caledonia Mining Corporation common stock has started showing some signs of life. It is currently in an uptrend on the daily chart and has just tested the power up trend line and then broke through the power down trend line. This has the look of a stock that is heading higher in the new year. I own CALVF and am looking forward to gains in the near term.

Tuesday, December 28, 2010

Weekly Chart For Shoshone Silver Gold Mining Company (SHSH)

Here we are at the end of December and it looks like tax loss selling has taken Shoshone Silver & Gold Mining Company down to a MSL (Major Support Level) at approximately $0.15.  The slow stochastic indicator shows that SHSH is quite oversold at this level and support should probably hold here.  This is a buy low opportunity right now!  I own SHSH and have been adding to my position around this level.  Get this soon to be producing silver company now while everyone is selling out for tax reasons and reap the rewards in 2011.  Do your own due diligence before making any investment decisions.

Sunday, December 26, 2010

Long Term Chart Of Clifton Mining Company (CFTN)

Look at the solid multi-year price support for CFTN just under its current price.  If CFTN were to get down to the $0.25 level, I would be loading up the boat.  I don't know if I would even wait that long because you may not get the chance.  I own CFTN and am glad. 

Saturday, December 25, 2010

(CFTN) Clifton Mining Company Stock Chart Update

I recently posted this chart of Clifton Mining Company

Here is another look at the Clifton (CFTN) chart with zones of support noted.

It looks like the MACD has been sold down from overbought levels.

(SHSH) Shoshone Silver Gold Mining Company Chart Update

Take a look at this tasty little chart for (SHSH) Shoshone Silver & Gold Mining Company.  Shoshone Silver has a strong balance sheet with no debt, a portfolio of great properties, and and just turning the corner of becoming a producing company.  The management has kept the share count extremely low by utilizing resources to fund operations and not diluting the shareholders to death.  Look at the support this stock has around the 15 cents area.  The stock is currently oversold and at support which means one thing to me.  This stock is ready to head higher.  I have recently ramped up my position in SHSH as the stock has been sold down to a level of support that I see real value.  I am looking for more positive progress from this company in 2011.  Take a moment to check out the Shoshone Silver and Gold Mining website.

Wednesday, December 22, 2010

Clifton Mining Company (CFTN) Stock Coiled Like A Spring And Ready To Take Off

This chart is screaming buy at me.  I own this stock already but I am anticipating a breakout higher very soon.  After powering higher in September CFTN has been consolidating its gains and is no longer over bought.  Clifton has recently begun processing ore through its mill and stands to reap the rewards of its agreement with Desert Hawk Mining Company whereby Clifton Mining will receive royalties from the production of gold, silver and other metals from its properties.  I don't have any idea what these numbers will look like, but they should be better than the ZERO royalties they had previously been recording.  Take a look at this chart and see if it screams bullish at you.

Tuesday, December 21, 2010

Predictions: Will Silver Crash In 2011?

Predictions are easy to make, but that doesn't mean they will come true.  So how can we predict anything with certainty?  I guess we really can't, but we can make educated guesses to increase our odds of being correct.  I suppose attempting to make Super Bowl predictions for the NFL is just as hard as predicting what the price of cotton will be next year.  But anytime we make a prediction, we attempt to factor in all possible known information and then make our guess based on the way we interpret that information.

So getting back to predicting the price of silver for 2011, I predict it will go up.  In fact, I predict it will go much higher!  This is based on many factors a few of which are supply and demand, short positions in the paper silver  market, massive fiat currency printing by most central banks and most specifically the Federal Reserve Bank and a quantum shift in investor sentiment toward protecting wealth as they realize that the debt bubble that is America is going to be blown as large as necessary in order to legally default on the U.S. Governments payments to the world.

Wednesday, December 15, 2010

The O.T. Mining Corporation Executive Summary November 30, 2010

Investment is defined as “putting money into something with the hope of a profit,” especially in a market opportunity where the demand for a product or service is stronger than available supply. Such is the case today as far as the rising world market demand for copper and other base metals is concerned, and investing in American companies exploring for new potential mines on American soil is a great opportunity for substantial personal financial returns, as well as being in the nation’s best interest. (See articles on demand for copper appendix - 1)

Today, in the United States, our capacity to import our required mineral resources is being diminished by virtue of unstable political conditions. Reliance for our metal requirements on foreign sources can no longer be considered prudent. As well, ignorance at home, coupled with a lack of understanding how new ore bodies are discovered and new mines developed, has placed a dangerous impediment to establishing self-sufficiency.

Many of our great mining camps are either scratching the bottom of the barrel or bear mute testimony to the fact that those reserves once thought to be unlimited, no longer can provide for the demands of our society. Listed among the great mining camps of the United States, now long silent, are those of Calumet and Hecia and the iron mines in Michigan.

Among those historic providers, is the great mining camp of Butte, Montana, once known as the “Richest Hill on Earth”. The Butte deposit has provided a very significant portion, not only of copper, but many other metals, and presently helps to sustain the supply needs of the nation. But, alas, even with the metals extracted from the Butte deposit, the United States does not have self-sufficiency in many of these metals. What assurance is there that security of supply is going to be met?

Lying about 14 miles to the north-northeast of Butte is an old gold and silver mining camp known as the Ruby Mine. Exploration to date on this 21.3 square mile property, controlled by The O.T. Mining Corporation, has provided evidence to support the theory that another Butte style ore deposit may in fact exist. (See location map appendix – 2)

An investment in the Ruby property constitutes a rare opportunity for extraordinary profitable returns, while taking great pride in helping to initiate a new Renaissance for mining in the State of Montana and the United States of America. Evidence gleaned through the application of modern cutting edge exploration technology gives credence to the possibility that a copper ore resource as large as or greater than the Butte mining camp may well be hiding in the vicinity of the Ruby.

Company Profile

The O.T. Mining Corporation (“O.T.”) is a U.S. junior exploration company whose assets consist of 100% ownership (less a 3% net smelter royalty) of the 21.3 square mile Ruby Property and the nearby Basin Mill in Jefferson County, southwestern Montana as well as a 16.93% ownership interest in Namex Explorations Inc., a Canadian junior exploration company that is presently being restructured. (See photos of Basin Mill and office/core storage facility appendix – 3)

O.T. was incorporated in the State of Montana in 1980 as Ruby Resources of Montana Inc. On May 4th, 1987, the Company’s name was changed to The O.T. Mining Corporation. O.T’s stock trades on the Pink Sheets – symbol OTMN.PK. O.T. is a United States non-designated 15c 2-11 company. The Cusip number is 671061 109. O.T. is listed in Standard and Poor’s and Mergent Inc.’s OTC Industrials.

As at September 30, 2010, O.T. had 13,821,593 common shares issued and 1,426,157 options outstanding. Fully diluted - 15,247,750. (See fact sheet for additional information appendix - 4)

Property Description and Location

The Ruby Property is one of the few enormous exploration projects in the free world. It covers 21.3 contiguous square miles and consists of 13 patented and 681 unpatented claims in Jefferson County, Montana. It is host to precious - gold and silver - and multiple base metals - copper, lead, zinc, cobalt and molybdenum. The northern 14.5 square miles of the Property contains a large copper/molybdenum porphyry system and the southern 6.8 square miles hosts a high-grade gold, silver and base metals epithermal volcanic system. The project has now reached the definitive drilling stage. Forty-five drill holes and access roads have been permitted and the technical team is ready and eager to get to work.

The Ruby Property lies between two major mines and shares many geological features including the same geological formation (the Boulder Batholith) with them. One is the world famous Butte mine, the Continental Copper Mine (known as the Berkeley Pit when owned by The Anaconda Copper Company). Berkeley/Continental, which is 14 miles south west of the Ruby Property, is approaching $50 billion of high-grade base and precious metals production since the 1860’s with estimates of a similar amount yet to be discovered. The other mine is the Montana Tunnels Mine, 20 miles northeast of Ruby. It was a major producer from the 1860’s through the early 1930’s, and was brought back into production in 1988. Since then, this open pit mine has produced more than 50 million tons of gold, silver, lead and zinc ore. (See the magnetic low the O.T. shares with Butte and Montana Tunnels appendix - 5)

Historical Exploration of the Ruby Property

The Ruby Mine was a low tonnage, high-grade producer of gold and silver between 1885 and 1912. Knopf (1913), Corry (1920) and Earl (1980) estimated that 42,184 ounces of gold at 2.44 ounces per ton and 446,565 ounces of silver at a grade of 38.66 ounces per ton were produced. The operators mined ore from the surface to a depth of 300 feet. Shaft mining of the “bonanza ore shoots” - The Ruby, Dowling, Degner and Ray - ceased in 1912 due to the technology of the day being unable to deal with water problems below the 300 foot level. (See graph of bonanza gold and silver ore shoots appendix - 6)


In 1914, the last miner began a horizontal adit at the 600 foot level to intersect the ore shoots. This effort ceased in 1917 when the operator ran out of money. Work resumed in 1966 when the adit was driven to nearly 3,100 feet. While missing the target by just 200 feet, a lead-zinc zone was intersected. A 193 ton bulk sample was taken, which returned 1.33 percent copper, 5.19 percent zinc, 7.6 percent lead and 4.3 ounces of silver per ton.

In 1976, a major mining company conducted a geologic and economic study that indicated that as much as 600,000 tons of gold and silver ore remained in the proven and unproven bonanza ore shoots. The company further concluded that the Ruby could host a potential porphyry copper mine - large enough to justify a 20,000 - ton per day mill.

In 1980, this company entered into a joint venture agreement with O.T.’s predecessor, Ruby Resources Ltd. When the former failed to fulfill its obligations because of cash flow problems, Ruby Resources recovered its full title.

A technical report, prepared by the respected consulting firm of Behre Dolbear & Company Ltd. dated April 11, 1997, estimates the Ruby Mine “to have superior exploration potential. As an established gold and silver property, Ruby has identified gold and silver exploration targets. A base metals vein was encountered on the property when exploration operations renewed briefly in the mid - 1960’s. This vein is an exploration target. Finally, evidence suggests the presence of a large intrusive body at depth, which comprises a porphyry copper target. The property presents diverse exploration targets, comprising gold and base metal potential”.

Exploration Work on The Ruby by O.T.

In 1987 with O.T. as owner, the Property consisted of the immediate Ruby Mine area that covered 479 acres. O.T.’s focus was on exploring and developing the Ruby Mine into a small tonnage high-grade producer of gold and silver. However, extensive research and exploration work led to the understanding of the similarities between the Ruby Property and the Butte Mining Camp. This in turn led to the quiet acquisition of additional claims. At present, O.T.’s mineral claims cover 21.3 square miles.

Systematic exploration work has been carried out over the Property and included an airborne DIGHEM and magnetic survey in 2001 by Fugro, a Titan 24 MT-IP survey by Quantec Geoscience Ltd. in 2004, IP surveys by Matrix Geo Technologies in 2005 and 2006, extensive Mobile Metal Ion (“M.M.I.”) geochemical surveys, limited drilling, geologic mapping, surface sampling and prospecting. All of the old exploration data has been compiled and examined in detail and the geology of the Butte porphyry system has been studied and used to help understand the Ruby Property. (MMI defined appendix – 7)


Six exploration target areas have been identified in order of exploration priority they are

  1. A large copper-molybdenum porphyry system in the North Area. This system is strikingly similar to the porphyry system at nearby Butte (the fourth largest porphyry system in the world). The Butte and Ruby porphyries are only 14 miles apart. They are the same age, occur in the same igneous rocks, and occur along the same regional belt and geophysical trend within the belt. The two porphyries are both very large and have similar geometries and alteration types. (See image of North Anomaly regarding the metal chargeability appendix – 8)

  1. The down dip and along strike extensions of the high-grade gold-silver mineralization in the Ruby Mine Area. (Described under Historical Exploration above)

  1. Ruby mine type precious metal epithermal veins in the Kit Carson Area. Rock samples from this area returned anomalous values in gold and silver. Fourteen of forty-seven rock samples contained values of greater than one ounce per ton silver. A grab sample of quartz vein rubble collected by a senior Watts, Griffis geologist in 2002 assayed 16.9 ounces of silver per ton and 0.005 ounces per ton gold. A sample of similar material collected by an O.T. geologist assayed 34.7 ounces of silver per ton.

In addition, the existing April Vein and Ruby West Targets have potential for Ruby mine-type mineralization, and the West Target has potential for porphyry-type mineralization.

The results from the cumulative programs and the opinions and conclusions drawn by O.T.’s technical team have been verified and are fully supported by the internationally respected mineral consulting firm of Watts, Griffis & McOuat, in its Technical and Recommendations Report dated November 27, 2006. The Report, prepared in compliance with National Instrument 43-101 confirms O.T.’s findings and recommends a diamond drill program on O.T.’s four elephantine targets.

O.T.’s present exploration program will begin by concentrating its efforts on the superior economic porphyry system that is geologically similar to the porphyry system at Butte. Work completed since 2004 has documented the presence of a North Area Target that is at least 15,000 feet long by 8,000 feet wide and at least 2,600 feet thick. It is open in two directions and at depth. In 2008, with the input from several porphyry experts, the “Dry Gulch Target”, located to the south of the North Area Target, became another priority porphyry target. It has a similar size and shape as the North Area Target and has similar potential. (See definition of a porphyry appendix – 9)

Dr. Fess Foster released a comprehensive report, dated August 11, 2009, that is posted on O.T.’s web site; It favorably compares the Ruby porphyry system with the porphyry system at Butte. Production from the Butte Camp is approaching $50 billion in metals since the 1860’s. Approximately 95% of this wealth was mined from “Main Stage Veins” and the Ruby Project has the potential for similar veins. As Dr. Foster says, “the most compelling justification for exploring the Ruby Porphyry is its striking similarity with the porphyry system at nearby Butte”.

The Porphyry

The Ruby Porphyry appears to be a very large system based upon the very limited drilling and geophysical data available. There seems to be about 16 billion tons of potassic and phyllically altered porphyry with continuous low level copper enrichment in the North Area Target. The Dry Gulch dimensions are unclear but could be the same as the North Area Target. If so, the total size of potassic and phyllically altered porphyry with low level copper enrichment could be as much as 32 billion tons, and is open to the east, west and at depth.

The Ruby porphyry appears to be a Type 2 system. Type 2 porphyries contain hydrolytic alteration that postdates and extends down into core potassic alteration. Many of the world’s great porphyry ore bodies have late stage veins associated with this hydrolic alteration. These include Butte MT., Resolution AZ., Chiquicamata, Escondida, Rosario and El Salvador; the latter four deposits occur in Chile. The late veins can contain substantial underground mineable ore, and host a considerable amount of the overall metal content of the porphyry system. Over 95% of the metal production from Butte was from the late (Main Stage) veins.

Butte and Ruby are metallogenetic twins. The following are some of the important geological similarities between the Butte and Ruby porphyry systems:

  • They are both hosted by the same phase of the Boulder Batholith.
  • They have similar structural settings.
  • Both are very large systems.
  • The two systems have a curved, arcuate shape in plan, with east west trending linear features on the north side of the main system.
  • Both contain potassic alteration overprinted by phyllic alteration.
  • Both contain widespread low-level copper.

O.T.’s exploration plan for the Ruby focuses on underground targets similar to the spectacular Main Stage mineralization at Butte. Production records were not kept in the early days, but production from Butte is known to have been significant. Recorded production from the Butte District totals approximately:

  • 23 billion pounds of copper
  • 5 billion pounds of zinc
  • 4 billion pounds of manganese
  • 855 million pounds of lead
  • 327 million pounds of molybdenum
  • 725 million ounces of silver and
  • 3 million ounces of gold.


Underground ore was mined at Butte from the four types of veins described below. Gold is not listed because it is a byproduct and occurs in very low concentrations. Molybdenum is not listed because it was never mined from underground.

  1. A total of 162.6 million tons of copper veins averaging 4.4% copper and 2.7 ounces per ton silver.
  2. A total of 14.5 million tons of zinc veins averaging 11.9% zinc and 5.6 ounces per ton silver.
  3. A total of 3.4 million tons of silver veins averaging 23.6 ounces per ton silver.
  4. A total of 2 million tons of manganese veins averaging 24.5% manganese, 1.6% zinc and 0.91 ounces per ton silver.

Butte type veins would be extremely profitable in today’s market. Copper appears to be the most dominant metal at Ruby. Assuming that veins are discovered with the same average grade as the above-discussed copper veins (ie. 4.4% copper and 2.7 ounces of silver per ton), they would have a net value of U.S. $400 per ton at today’s metal prices.

Current underground mining costs for high-grade veins are in the $100 - $230 per ton range. Mining costs for Butte type veins would likely be in the low end of this range. These costs do not include exploration, permitting, development etc. expenditures, but the profitability of mining Butte-type veins with current metal prices is apparent.

The very limited drilling to date at Ruby indicates the following:

Copper is the most common and dominant metal encountered. It is anticipated that copper would be an important component of any Butte-type veins that may be discovered. Molybdenum, silver and gold are widespread. Lead and zinc are uncommon but have been encountered in a few narrow veins. Therefore, these five metals may also be present in yet to be discovered veins. No significant manganese has been identified to date but could be encountered with additional drilling.

The Exploration Program

As with all exploration, it is not possible to determine in advance the exact amount of exploration work that will be required and where it will be done. Dr. Fess Foster’s budget of $16,140,000 for pure exploration work is a very reasonable estimate. Significant additional funds should not be required, and the work may not be as costly as estimated. As new geophysical, geochemical, geological and drilling information becomes available, they will be carefully analyzed and appropriate changes made to the program. The most successful exploration programs are those that allow the geologists to modify the plan accordingly as more data becomes available and the rocks are better understood. (See Dr. Fess Foster’s exploration budget appendix – 10)


The program will begin by drill proving the North Area target. Surface geophysics and geochemistry have been completed, and it is now ready to drill. The Dry Gulch Area requires additional geophysical and geochemical studies before the optimal drill hole locations can be determined. Funds have been included for geophysical, geochemical and geological (mapping and surface sampling) studies of the area north of the Boulder River. Very little work has been done here, and the porphyry system could extend beneath this area.

This is a substantial program due to the large size of the Ruby Porphyry. The program is budgeted over a three-year period. It may be possible to complete most of the work in two years. The program should not be rushed. Exploration odds are greatly improved with a methodical, scientific approach.

Significant Investment Opportunity

  1. The company controls a 21.3 square mile property with high-grade gold/silver mineralization and exceptional potential for additional large copper ore deposits.

  1. The company has utilized only cutting edge and innovative exploration technologies to develop its property. These technologies have been overseen and implemented by highly trained and experienced mine-finding geologists with exceptional amounts of international and local experience. In addition, O.T. has put together a management team with seasoned business acumen and sound judgment. (See management and technical team resumes appendix – 11)

  1. One of Canada’s top geological and engineering consultants, Watts, Griffis & McOuat of Toronto, performed a highly detailed evaluation in 2006 and provided an updated N.I. 43-101, which included a recommendation for further exploration, geophysical surveys and diamond drilling.

  1. Major mining companies are seeking large mineralized zones to replace their depleted reserves. O.T.’s Ruby Property with its multiple targets is ideal as a candidate for acquisition and competitive bidding for this company will very likely emerge, as the targets are drill proven.

  1. O.T.’s project enjoys very strong local support. O.T. has an aggressive weed spraying program on its properties, works with the county and USFS to maintain public roads in the area, is committed to exceptional reclamation of its minimal surface disturbances and received the 2005 Entrepreneur of the Year award from the Jefferson Local Development Corporation.

  1. The 2009 Montana elections were very favorable towards mining. Republicans now have a 68-32 majority in the house and a 27-23 majority in the senate. The Montana Mining Association is working on several pieces of new legislation to improve mine permitting and is very optimistic that many will pass. According to a 2009 Montana Chamber of Commerce poll, 70% of Montanans strongly support mining.


  1. In contrast to the vast majority of exploration companies, O.T. is minimally capitalized with only 15 million shares fully diluted. The company is unknown, as yet, to the market place and hence its shares are priced so that the risk reward ratio is truly phenomenal.

In the words of James Hess, the late founder of O.T, as he pondered the Ruby Project; “I would never try and second guess Mother Nature. Why would she set all the precise conditions up for another Butte like deposit and not deliver the goods? I am convinced the ore is there. We just have to find the main stage veins”. When the drill bit bites into the ground and the final lie detector test is carried out, the truth shall be known and it is our hope that the dream of James Hess and all those who have been captivated by the Ruby will be redeemed.

O.T. is seeking 20 million dollars to fund the exploration and drilling program and to provide working capital. The company is also open to new shareholders in the interim. There is a private placement available with minimum purchases of 30000 shares for $10,500.00. The money raised will be used to meet corporate expenses for this fiscal year.

Rosemary L. Christensen

Disclaimer: This Executive Summary contains forward-looking statements regarding the Company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the anticipated timing, process and scope of further exploration and drilling activities. These statements are based on the assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks.

Corporate Information Sheet


Name of Company: The O.T. Mining Corporation

Mailing Address: 310 Victoria Avenue, Suite 103, Westmount, Quebec H3Z 2M9 Canada

Telephone Number: 514-935-2445

Fax Number: 514-935-8161

Contact: Rosemary L. Christensen, President

Related Companies: Working Interest Corporation – wholly owned subsidiary that holds the shares of Namex Explorations Inc.

Corporate and Professional Services

Montana CPA: Bill Holmlund
919 Flowerree St.
Helena, Montana 59601 U.S.A.

Corporate Accountant: Stephen Cleaver, Chartered Accountant
3-1750 The Queensway, Unit 435
Etobicoke, ON M9C 5H5 Canada

Legal Counsel: Howard M. Sommers, Esq.
Aronauer, Re & Yudell, LLP
444 Madison Avenue, 17th Floor
New York, NY 10022 U.S.A.

Montana Counsel: William L. MacBride, Jr.
Gough, Shanahan, Johnson & Waterman
33 Last Chance Gulch P.O. Box 1715
Helena, Montana 59624 U.S.A.

Advisor: Joe Hinzer, President
Watts, Griffis & McOuat
Geological and Engineering Consultants
8 King Street East, Suite 400
Toronto, Ontario M5C 1B5 Canada

Corporate Services: Continental Stock Transfer & Trust Company
17 Battery Place, 8th Floor
New York, NY 10004 U.S.A.

Innovative Technology: Mobile Metal Ions Process

Soil geochemical exploration has been a routine part of mineral exploration for 75 years. The application of traditional single or multiple acid digests of soil samples has been the backbone of many programs worldwide for both major and junior mining explorationists. In conjunction with geological mapping and geophysical surveys, these traditional approaches have been successful in delineating or outlining near-surface ore bodies. However the mining industry recognized that additional deposits of high-grade base and precious metals are present beneath those discovered at surface. It became apparent that a geochemical tool was required that would permit explorationists to "see" beneath the surface and identify these high-grade ore bodies.

Acting on a request from the Australian mineral exploration industry, Dr. Alan Mann and colleagues at the Mineral Exploration Research Institute of Western Australia developed a radically different approach to soil geochemical exploration. Their technique, known as the Mobile Metal Ions Process ("MMI"), focuses on the extraction of metals from a fixed location in the soil profile based on a proprietary dissolution or digestion of soil samples. In addition, ligands or chemical compounds specific to base and precious metals are used in the process to keep metal ions in solution subsequent to extraction from the soils. This prevents the metals from precipitating out of solution or becoming stuck to the vessels used during the digestion, analysis, process and permits an accurate measurement of the amount of metal in the soil.

The metal ions measured with the MMI process have migrated upwards from a buried mineral source and become attached to individual soil particles or grains. Their mode of transportation from buried source to surface is considered to be primarily by ground water and subsequent evaporation, however, a variety of methods probably assist in mobilizing ions to surface and include evapotranspiration, self-potential "battery effect", the vertical component of ground water flow, vapour phase transport and simple diffusion.

The recognition of an MMI soil geochemical anomaly not only has significant implications for focused exploration at depth but also for reducing costs during an exploration program. The MMI anomalies have been documented in over 1000 case history studies worldwide to form directly above their source. This permits focused drill testing and avoids the traditional "shot-gun" approach that results in significantly increased costs from inaccurately sited drill collars. The source or mineralized zone producing the MMI anomaly has been drill proven to depths of 2000 feet.

The O.T. Mining Corporation ("OT") has delineated a porphyry copper-molybdenum deposit at this depth in Montana during their MMI-assisted exploration of the Ruby property. The success of the MMI approach on the Ruby property has been such that in the future, airborne and ground geophysics and geological mapping may be avoided with target delineation based solely on MMI soil geochemistry. This represents a further reduction of exploration costs that can be redirected into focused drill testing.

The MMI technique is capable of detecting very subtle geochemical signatures generated by buried mineralized zones but it will neither indicate the grade of these mineralized zones nor the depth at which they occur. Drilling must be done to confirm depth and grade. Generally speaking, however, the larger and higher the MMI signal the greater the size of the mineralized zone. Ground geophysical techniques such as ionization potential (I.P.) can be utilized to define the depth to mineralization.

The tools necessary for the use of MMI geochemistry are simple and inexpensive. These include a shovel, vinyl scoop, ruler and snap-shut plastic sample bags. Samples are not sieved and no further preparation in the field or laboratory is undertaken or required. A two-man crew or a single sampler can easily collect the appropriate samples from the area of interest. Samples can be collected from a grid or over individual geologic features (faults, shear zones, unique rock types) or over geophysical anomalies (magnetic, electro-magnetic) to prioritize drill testing by determining which of these features contains the most significant metal source. The MMI survey will indicate whether the target is a base or precious metal-rich target.

The MMI approach has been responsible for numerous technical and commercial successes worldwide. Some of these are listed on the MMI website at

Definition of Porphyry Copper

Porphyry copper: a deposit of disseminated copper minerals in and around a large body of intrusive rock which also contains gold, molybdenum, tungsten and other metals. These ore bodies traditionally contain hundreds of millions to multibillion tons of ore. Properly mineralized porphyries become the largest and richest mines in the world.

Porphyry copper deposits form when certain types of molten magmas cool beneath the earth’s surface. Hot waters carrying metals accumulate in the top of the magma bodies. The metals can be speckled (or “disseminated”) throughout the rock, or be deposited in cracks (as “veins” of “veinlets”). Common metallic minerals include pyrite (iron sulfide), chalcopyrite (copper sulfide), and molybdenite (molybdenum sulfide). Collectively, the presence of these metallic minerals is called “mineralization”.

The hot water that carries the metals bleaches and changes the surrounding rocks by forming clays and other new minerals. This is called “alteration”, and is analogous to exposing colored clothes to hot water for an extended period, causing them to become bleached. Porphyry copper deposits form distinctive types of alteration, including “potassic” and “phyllic” alteration. These alteration zones can occur much like the peels of an onion, with the ore zone near the center, similar to a bullseye. Understanding the type and shape of alteration areas in the porphyry system is obviously very important.

Year 1 Costs
Year 2 Costs
Year 3 Costs
30,000 feet of core drilling @ 125/foot for all-in costs (drilling, cutting, logging, photographing, sample shipping and geochem).
20,000 feet (each year) of core drilling (same costs basis as described above).
Contractor costs for road/drill site construction, water hauling, reclamation etc.
Contractor costs for downhole geophysical surveys of drill holes.
Construct additional core storage and logging area, purchase 2 new saws.
Mapping, geologic research, supervision, environmental, permitting, PR.
Additional surface geophysical surveys in the Dry Gulch Area.
Additional IP north of the Boulder River (60 line miles).
Additional MMI north of Boulder River and fill in around existing North Area Au/Ag anomalies (3,500 samples).
Miscellaneous unanticipated costs.
20% for contingency and ever increasing fuel and consumable costs.
GRAND TOTAL (for all three years)


Obviously, management and the technical team are the key to O.T.’s or any exploration company’s success. To this end, O.T. has assembled a team of proven “mine makers” with over 150 years of combined experience in the field. In addition, the company only utilizes the services of the highest caliber independent contractors; those used and recognized by the major mining companies.

Rosemary L. Christensen, President, Secretary-Treasurer and Director

As a co-founder of O.T. with the late James W. Hess, whose vision and drive resulted in the present company, Rosemary Christensen became Secretary Treasurer and a Director in 1987. She became President in July of 2009. Christensen, a member of the Quebec Bar, founded the Somerville House Companies that have been involved in the investment business since 1972. She pioneered motion picture syndication in Canada, created tax incentive investments and expanded the company to include the metals mining industry.

J.R.O. Walli, P. Eng., Vice President and Director

J.R.O.Walli is a member of the Canadian Institute of Mining and Metallurgy and a member of the Association of Professional Engineers. Amongst Mr. Walli’s more notable achievements: From 1962 to 1967 when with Associated Mining Construction Ltd., he was responsible for the design and construction of seven deep potash shafts sunk by the freezing process, a technology that he brought to Canada from Germany. From 1967 to 1969, Mr. Walli was Project Manager, Minera Andina S.A., Santiago, Chile, more popularly known as the Rio Blanco Project of Cierra Corporation, New York. He was responsible for design, procurement and construction of this 10,000 metric ton per day underground copper mine located in the high Andes, incorporating a number of “world firsts” for the mining industry; eg. the concentrator was constructed underground in huge caverns excavated for the purpose of locating it away from the hostile avalanche environment. In 1975 Mr. Walli became Managing Director at the inception of the Oman Mining Company, L.L.C.., Muscat, Sultanate of Oman. His team brought on-line three underground copper mines, a 3,000 tonne per day concentrator, a 20,000 tonne per year electric smelter, a 24,000 tonne per year electric refinery and a 54 megawatt gas turbine power plant. The design and construction of a deep water jetty was implemented for this totally self contained fully integrated facility

Fess Foster, B.Sc., Ph.D., C.P.G, Senior Geologist, Montana

Dr. Foster has 27 years of primarily industry experience. His background includes exploration geology, mine permitting, environmental evaluations, project management and public/government affairs. Formerly he was Director of Geology and Environmental Affairs at the 3 million ounce-plus Golden Sunlight Mine near O.T.'s Ruby Property and later VP of Exploration for American Bonanza Gold Mining Corp. At Golden Sunlight Mine, Dr. Foster instituted a strong exploration program that resulted in the delineation of 1.1 million ounces of gold reserves at a cost of $4. per ounce and was personally responsible for the discovery of a 330,000 ounce gold deposit. He also initiated a progressive environmental program and has extensive experience with Montana permitting and regulatory issues.


Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P.Geo., C.P.G , Director and Vice President of Exploration, 2003

Dr. Fedikow has 30 years of industry and government experience as an exploration geochemist and mineral deposits geologist. In 2001 he was the recipient of the Provincial Geologists Medal, a Canadian national award for outstanding geoscientific achievement. As an exploration geochemist and mineral deposit geologist, he has published numerous articles on mineral deposits and their geochemical expressions in rock, soil and vegetation sample media. Specifically, he has applied the Mobile Metal Ions Process (MMI) in exploration programs for lode gold, base metal massive suphides, platinum group metals, magmatic nickel-copper, epithermal gold-silver and porphyry copper deposits in a variety of geological and overburden environments. Mark is a Fellow of the Association of Applied Geochemists.

Oliver T. Maki, Chief Geologist

Mr. Maki began his career in 1945 working in Latin and North America in all facets of the mining industry for such companies as Gulf Sulphur where he was responsible for its Mexican sulphur operations, as general superintendent for the American Zinc Company in the U.S., as an economic geologist for the United Nations Development Program in Chile and as an economic geologist for the Organization of American States, Washington, D.C. Mr. Maki, in 1969-70, directed and carried out the exploration program on which his third drill hole was the discovery hole for one of the largest open pit copper mines in the world, the three billion ton Los Pelambres copper mine on the border of Chile and Argentina.

Thomas H. Fitzgerald, Jr. Director since 1987

In 1959, Mr. Fitzgerald founded and is President and Senior Investment Officer of the firm that bears his name. For 18 years he was editor of the Money Market Directory. He is a member of the American Finance Association and the Presidents Council of the American Institute of Management and the Market Technicians Association. Mr. Fitzgerald served in Korea as a paratroop lieutenant with the United States Army.

Arthur Seligman, Director since 1991

Since 1984, Mr. Seligman has been Director of Sales and Marketing for the Petroleum Development Company (PDC). During his tenure, the company has grown to become the largest distributor of public hydrocarbon drilling programs in the country. Its Investor Relations Department, which he established, receives annual praise from the broker/dealer community as the best in the business.

Tuesday, December 7, 2010

Global Bank Run Day is Today December 7th, 2010

What will be the effect of this global bank run day where soccer legend Eric Cantona has called for all people to withdraw their cash (fiat currency) from the banking system using ATM's or any other means to drain cash from the fraudulent banking system worldwide? 

Apparently customers of one of Ireland's largest banks have been unable to access their cash accounts through ATMs or online.

Max Keiser  has started a global campaign to crash JP Morgan Chase bank who is one of the most fraudulent banks in the world buy taking the unbacked, worthless paper IOU's called cash and trading them in for real money, $ILVER.  JP Morgan is thought to be short possibly 3.3 billion ounce of paper silver.

Check out this cool Vid:

Another Sign Of Physical Silver Shortage

U.S. Mint delays America the Beautiful silver bullion coin on launch day

In what is almost becoming the norm, the Mint is finding it hard to get the necessary silver needed to mint all of the silver coins that are in demand.

Expect silver shortages to grow greater and greater as the physical market continues to tighten. With silver now trading over $30 per ounce for the 1st time in over 30 years, people are starting to remember that silver is scarce, useful and is real money.

Full Story Here

Tuesday, November 30, 2010

Silver:Gold Ratio Update November 30, 2010

Updated look at the silver to gold ratio in weekly chart form

Saturday, November 20, 2010

Ron Paul Says Just Say No To TSA Patdowns And Government Bullying

Listen to Ron Paul tell it like it is.  It is time for Americans to stop acting like cattle and sheep.  It is time for everyone to wake up to the fact that the TSA and naked porno body scanners and legalized sexual molestation have no place in a free nation. 

Friday, November 19, 2010

Silver : Gold Ratio Update New Charts Show Where We Are Now November 2010

We Are Heading For $500 Dollar Silver (Five Hundred Dollar Silver)

JP Morgan Chase is a huge short seller of silver.  This means they have sold large amounts of paper silver and collected Federal Reserve Notes for them.  The problem with this?  They have to buy back all that silver some day.  If they sold it for $15 per ounce and have to buy it back for $100 to $500 per ounce it will put them out of business.  At the very least they will have to be "Bailed Out" by the FFR (Fraudulent Federal Reserve).  Be sure to do a search today on GOOGLE, for the term $500 Silver or Five Hundred Dollar Silver.

It is time to Crash JPM Morgan Chase for their fraudulent manipulation of the silver market that they have been suppressing for all of these years.  So what are you going to do?  Are you going to save your money in rapidly depreciating FRN's (Federal Reserve Notes)?  Or, are you going to switch your FRN's into REAL MONEY which is Silver & Gold?

I know what I'm going to do...... Crash JP Morgan.

Thursday, November 18, 2010

Sick And Tired Of JP Morgan Chase? Buy Silver, Crash JP Morgan

Check out Max Keiser.  He is waging an awesome war against possibly the most corrupt bank in the world, JP Morgan Chase.  JP Morgan Chase is alleged to be short vast amounts of paper silver.  Not only that, but they are the custodian of the largest silver ETF, SLV.  Is it time to get even?

Friday, October 22, 2010

Shoshone Silver Gold Mining Company Chart (SHSH)

Shoshone Silver Mining (SHSH) Stock has shown it has now broken out of the longer term downtrend it has been in.  It has done this on heavy volume.  I own SHSH and feel it is an excellent investment.

Monday, October 18, 2010

Clifton Mining Company Ready To Head Higher?

After announcing that they will become a revenue producing company in the very near future, CFTN stock price made a nice move up and has been consolidating.  This chart says CFTN will be heading higher and soon.  I own CFTN, should you?

Thursday, October 14, 2010

Clifton Mining Corporation - The Missing Information Has Surfaced

As a shareholder of Clifton Mining Company, I have a high level of interest in their future plans and operations.  Specifically, when will they start making money and how will that affect their share price.

While Clifton Mining has made announcements regarding its joint venture agreement with Desert Hawk Gold Corp, it has been vague and left a lot to the imagination.  There is a saying that lack of information breeds misinformation.  This is certainly true.

I have now been able to ascertain a much more detailed look into what is actually occurring with Clifton and Desert Hawk Mining.   Clifton shareholders will surely want to study the document that I am providing a link to below.

It is the prospectus for Desert Hawk Gold Corp.  As it turns out, they are doing an IPO at $0.70 per share.  Clifton Mining owns 500,000 of these shares.  Not only that, but it gives detailed information regarding the joint venture between Clifton Mining and Desert Hawk.  There are some other gems in there as well.  For example, you will see that Desert Hawk has a different agreement with the Moeller Family Trust for the Yellow Hammer gold claims that are very near to the Clifton Mining claims.

So pull up a chair and check this out.  It really does look like the Clifton Mining properties are set to begin production with Clifton Mining in a position to sit back and reap the cash flow from the net smelter royalties and ride the possible appreciation in share price of Desert Hawk Gold Corp after they do the IPO.  Enjoy CFTN shareholders.

Prospectus For Desert Hawk Gold Corp

Friday, September 17, 2010

One More Look At Shoshone Silver Gold Mining Company (SHSH)

Looks like a buying opportunity to me ;)  (I already own this stock but like the way things are lining up)

Shoshone Silver Gold Mining Company (SHSH) Looking Ready To Break Out Higher

Shoshone Silver Gold Mining Company is one of my favorite microcap mining companies with a collection of excellent properties in the Silver Valley (Idaho) as well as other locations.  They have a great balance sheet, low share count and good management.  Looks like SHSH is about to head higher to me.  (Disclaimer: I own this stock and have for a while now)  I wrote about Shoshone Silver Mining quite a while back and things have only gotten better since then.

Wednesday, September 15, 2010

Silver Gold Ratio Breaking Out And Up?

Silver On The Other Hand.....

GDX Has Not Broken Out .... Yet.....

According To James Turk, Silver Is Ready To Take Center Stage

Here are a couple of great charts from James Turk at  These charts show that silver may be ready to explode higher in the coming months just as gold has done.  It looks like silver has some real catching up to do in comparison to the rise gold has already made.  Read his excellent analysis here.

Long Term Silver Chart Versus Long Term Gold Chart

Taking a look at this long term silver chart vs long term gold chart from Roger Wiegand   tells me that silver has some catching up to do.  If you believe gold is heading higher in the years to come due to endless fiat money creation, then what do you think silver might do?  I would say "outperform".

Friday, September 10, 2010

Silver & Gold COT Commitment Of Traders Report For Friday

Gold and Silver reports starting to look real ugly?  But does it matter?  It always has, but maybe one day, things will change.

Thursday, September 9, 2010

Silver To Gold Ratio Shows Silver Ready To Gain On Gold

Take a look at the silver/gold ratio to see that the consolidation on the silver to gold ratio chart looks close to being resolved. It is certainly not a foregone conclusion that silver will outperform from here, but it bears watching.

Clifton Mining Company, Inc. Anticipates Full Scale Commercial Mining By October 2010

ALPINE, UT, Sept 09, 2010 /PRNewswire via COMTEX/ -- Clifton Mining's Partner, Desert Hawk Gold Corp, (DHG), has completed its $5MM funding to place the Clifton Properties into production.

DHG has also received the permits necessary to begin mining and milling. They have upgraded and doubled the size of the Cactus Mill, and they are currently moving waste in anticipation of the commencement of milling operations this month. DHG anticipates full scale commercial production by October 2010.

DHG will begin tuning the mill with other ore, for which Clifton will get a percentage, while mine development finishes on the Clifton mineral deposits.

Clifton and DHG are still awaiting the construction approvals for the two heap leaches that are planned for the area, including the Kiewit gold property leach. The plan is for multiple projects to be underway at the same time. The funding for that new construction is already in place. At current metals prices, when production begins from Clifton's properties, Clifton will receive an 8% NSR (Net Smelter Return) (12% NSR if gold is over $1250) on the precious metals and a 4% NSR on the non-ferrous metals produced from its properties.

Continue Reading Here

Saturday, September 4, 2010

Updated Silver Price Chart Makes Me Go HMMMMMMMM?

Is this a big fake out?  Or is this the beginning of something much more interesting?  Watch the silver price chart for clues to our future.  Silver has a lot of catching up to do if it is to get back into a more normal relationship with the price of gold.

Friday, September 3, 2010

Wednesday, September 1, 2010

Silver To Gold Ratio Chart Undecided

I recently wrote about how silver in terms of gold is extremely cheap.  Considering this and the fact that silver is close to showing its intentions relative to gold in the very near future, this chart is interesting.  The question remains which way are we heading? 

Friday, August 27, 2010

Is Silver Too Cheap In Comparison To Gold?

Silver and gold are known as precious metals. This is because they are and have always been considered precious. Something can be considered precious if it is extremely rare or highly valued or of great worth. With gold recently reaching a price of $1240 per troy ounce, this would meet the definition of highly valued and great worth.

Silver on the other hand is currently trading at just $19 per troy ounce. When compared to gold, silver doesn't look so highly valued and doesn't really meet the definition of having great worth. I'm sure you don't consider 20 bucks to be a large sum of money. $1240 on the other hand is quite a bit more impressive.

Looking at it another way, silver is currently worth approximately 65 times less than gold. Or gold is 66 times more valuable than silver. So the gold to silver ratio would be 65. Does this mean that gold is 65 times more rare than silver? Well, as I previously wrote on this site, above ground refined silver is rarer than gold.

Above ground refined silver and gold are gold and silver that have been mined from the earth and put into a tangible form such as jewelry, coins and bars. I find this to be quite remarkable.

If you look at the historical ratio of gold in terms of silver, it used to be about 16 to 1. Meaning gold used to be about 16 times more valuable than silver. Not surprisingly, historically there was about 16 times more silver mined each year than gold.

How about now? According to the Silver Institute, silver production from mining in 2009 was up 4% to 709.6 million ounces. That would put 2008 annual silver production at 682 million ounces. According to Gold Sheet Links, annual gold production for 2008 was approximately 76 million ounces. This would put the current silver to gold production ratio right about at 9. So 9 times more silver is currently being produced than gold.

Silver and gold have both been used as money and a store of value throughout history. In fact, up until 1964, the United States used 90% silver coins as our circulating currency. So getting back to the point, how can silver logically trade at such a small fraction of the price of gold when it is 5 times more rare in above ground available form and only 9 times more available on an annual production basis?

This leads me to believe that silver is extremely cheap in comparison to gold. I believe silver is extremely undervalued at this price.

Gold Miner Caledonia Mining Company Gets Ready To Reach 40,000 Ounces Of Gold Production Per Year

In a company release Caledonia stated that they have completed all of the underground installations at the Number 4 shaft project at the Blanket Gold Mine in Zimbabwe. So even though they have been fighting an unstable political and economic climate with frequent power outages, they are still on schedule to make their target production rate of 40,000 ounces of gold per annum from the Blanket Mine.

Read more below......

TORONTO, ONTARIO, Aug 26, 2010 (MARKETWIRE via COMTEX) -- Caledonia Mining Corporation ("Caledonia") /quotes/comstock/11t!e:cal (CA:CAL 0.06, 0.00, 0.00%) /quotes/comstock/11k!calv.f (CALVF 0.06, -.00, -2.50%) (AIM: CMCL) is pleased to announce the completion of all the underground installations relating to the No. 4 Shaft Project at the Blanket Gold Mine in Zimbabwe.

"Dry commissioning" of the automated skip loading system from 789m level to surface and the 765m level crushing station will commence at the end of August after which work will commence to widen the 750m level haulage above the grizzly tips which will be followed by the excavation of the first of three underground storage bins located between the 750m haulage and the 765m crushing station. The waste from these operations will be used to "wet commission" the entire shaft-bottom crushing and loading system. This process is planned to be completed by end of September, 2010. The flexibility to handle and hoist ore and waste rock separately to surface is intrinsic to the underground design and new installations.

Blanket will then commence the progressive production ramp-up to a target rate of 1,000 tonnes per day, or approximately 40,000 ounces of gold per annum. This is planned to be completed by the end of December 2010, although the ability to meet this target within this timeframe will depend on the availability of power. Work has already started on developing new mining production panels to allow for a rapid increase in the tonnes of ore mined per day.

Read the rest of the release here

SLV (Silver ETF) to GLD (Gold ETF) - Chart Says Resolution Is Near

This is a very interesting time for silver and gold investors as the relationship between the ratio of silver to gold gets ready to show where we are headed next. Stay tuned as this event will be taking place shortly. See the silver to gold ratio chart below for more clarification.