$5,000/oz gold? Rob McEwen says it's coming in 2014 or 2015
Über gold promoter Rob McEwen has also developed a taste for silver mining.
Author: Dorothy Kosich
15 September 2009
When über mining investor Rob McEwen makes predictions on gold prices or appears
to have developed an interest in silver mines, retail investors heed his clarion
call and place their bets that the gold price is about to soar.
In a presentation to the Denver Gold Group on U.S. Gold Monday, McEwen was
somewhat subdued as he only briefly mentioned he thought gold could hit $5,000
an ounce before the end of the gold cycle As this reporter scrambled for a
clarification of his remarks in a brief interview, McEwen stuck by his
prognostication, forecasting the end of the gold cycle would occur either in
2014 or 2015.
McEwen is so dedicated to the power of gold, he told his audience of fund
managers, analysts, investment bankers and miners that he personally owns 21% of
U.S. Gold. In comparison most major mining CEOs own a mere pittance.
He is steadfast in his belief that the Cortez Trend-which hosts Barrick's
massive Cortez Hills gold project-will yield millions of gold ounces for his
U.S. Gold company.
But, McEwen also has developed a fondness for silver, albeit he lacks the same
passion for the precious metal as he feels for gold.
He declared to his audience Monday that "El Gallo, Mexico is becoming one of the
world's great silver discoveries. " With a 540,000-acre position in what he
called "highly mineralized lands," McEwen's U.S. Gold is spending $10 million in
exploration over 12 months. He anticipates an initial resource and heap leach
test during the first quarter of 2010.
Though he told Mineweb his interest in silver has been stimulated more by
individual mining properties rather than a newfound passion for silver, McEwen
has also become active in Minera Andes, which he says owns 49% of the world's
ninth largest silver mine, San Jose in Argentina. By 2010, McEwen forecasts that
San Jose will have 7.5 million ounces of silver and 95,000 ounces of gold. He
also predicts the operating cash costs will go lower than the 29% drop to
$4.99/oz achieved in the first quarter of this year,
He also believes that Minera Andes' Los Azules project is "one of the largest
undeveloped copper discoveries in the world. And in keeping with his philosophy
as Minera's Chairman and CEO, McEwen owns 33% of the company's shares.
As the years roll by, McEwen's legendary penchant for marketing to the max
remains intact as he offered audience members trillion dollar notes as an
impromptu raffle prize at the conclusion of his talk.
www.mineweb.com