The Carnage continues at the TSX

Here's an example of a great mine bending over just to keep the forward momentum going.

VANCOUVER, Sept. 5, 2013 /CNW/ - Spanish Mountain Gold Ltd. ("Spanish Mountain" or the "Company") (TSX-V: SPA) is pleased to announce that it has engaged Secutor Capital Management Corporation to act as lead agent (the "Agent") on a commercially reasonable basis for a proposed private placement (the "Offering") to raise up to $3,000,000 through the issuance of up to $1,500,000 of common share units (the "Units") and of up to $1,500,000 of flow-through units (the "FT Units").

Each Unit will be sold at a price of $0.10 per Unit and will consist of one common share of the Company and one common share purchase warrant (a "Warrant"). Each FT Unit will be sold at a price of $0.12 per FT Unit and will consist of one common share of the Company which will be designated as a flow-through share (the "FT Shares") for the purposes of the Income Tax Act (Canada) (the "Tax Act") and one-half of a Warrant. Each full Warrant will entitle its holder to purchase one common share at a price of $0.15 per share for a period of two years following the closing of the Offering. The Company has also granted the Agent an over-allotment option, exercisable at any time prior to the closing of the Offering, to purchase an additional 15% of the total number of Units and FT Units sold pursuant to the Offering.

SPA is creeping up very slowly. Often during this month you see the bigger stocks showing volatility as people hunt for deals in the JR market. So far, no sign this is happening. I still expect movement in the bigger stocks but I don't expect to see anything spectacular in the JR market primarily because of the horrendous damage the TSX has done to it.

I won't be selling any dividends. Instead, I'll bargain hunt there. Until the new exchange shows life I suspect my predictions from the past will hold true. Cash will be king and the decimation will ramp up. You may still see a false euphoria designed to trick people into thinking a stock is taking off but it will be followed by a harsh decline. There are still a lot of people holding the TSX bag.

I still expect to see more development in the real deposits of Canada. The safe haven idea is becoming a fact. I plan to hold developing mines like Schaft Creek but I'm expanding the timelines. Previously I said 2 years but now I'm going to invest on a 5 year plan. Take HPY. They just got a former Teck geologist on board. Given the slowdown at Teck I expect David Blann will be doing a lot more infill this year and next. The idea behind obtaining the new face is to customize the plan to Teck's needs.

HPY still has that lovely tungsten deposit that's shaping up rather nicely. The last round of drilling was proof of the value. I find it funny the market has not caught on. Are the investors waiting for it to become more advanced? Watch as many get left out in the cold. They will be scrambling to determine fair market value and a deal will side swipe them. I'm expecting this one to come in out of the blue and you can't say I didn't warn you. At 15-16 cents it's an absurd bargain. The new results suggest a real value well over a buck. In this market, it might jump 60 cents. as it changes the nature of its development.

If I get time I'm going to delve in deeper on the market movements. I'm expecting to see some action in the bond market that might shake things up as the realization of shortages sets in and managers try to find a buck.

Summer is almost over

So what's really happened while I was gone. I see HPY uncorked another stellar hit in their tungsten property! Copper Fox spun off into Desert Fox. Drills are rolling at Schaft Creek under Teck and we may finally see som forward movement in Arizona. SPA is gaining traction despite the TSX. Pilot and Probe have restored close to former value. ALS didn't pancake as many called for. BXX has survived and it's still a fat little piggy that needs a major hit in some way. I see GRV still holding value and I expect the next results to show this is a mine able property. Hellooo neighbour, need some copper?

Now, the one to watch this year:

Colorado Resources Announces 402m of 0.28 % Cu and 0.27 g/t Au in Step-Out Hole 400m Southeast of North ROK Discovery Hole 1

WEST KELOWNA, BRITISH COLUMBIA--(Marketwired - Aug. 28, 2013) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce the results of nine additional drill holes (3,148 metres) from the ongoing drill program at its 100% owned North ROK property (the "Property"), located 15 kms northwest of Imperial Metals' Red Chris mine in NW British Columbia. In addition, the Company announces that it has received approval from the Ministry of Energy, Mines and Natural Gas ("MEMNG") to drill an additional 40 holes on the Property.

Drill holes NR13-005 through NR13-009, NR13-012 and NR13-013 were drilled on 100-200 metre step-outs along strike to the southeast of discovery hole NR13-001, while drill hole NR 13-011 was drilled 100m to the northwest of the discovery hole. Drill holes NR13-006, NR13-007 and NR13-013, which stepped back to the southwest, have also returned mineralization 150m off the main trend and may indicate the presence of a second, parallel zone developing in this area.

The Company is very pleased with the progress it has made in defining the size of the North ROK porphyry body, and demonstrating the continuity of mineralization on multiple sections over a 500m strike length. NR13-013 in particular, drilled over 400 metres along strike SE from the initial discovery drill hole, has returned an impressive 402.2 metre interval grading 0.28% copper and 0.27 g/t gold (0.45% Cu Eq*), including 160.9m of 0.41% copper and 0.28 g/t gold (0.58% Cu Eq*). With NR13-009 failing to achieve planned depth, the mineralized zone remains open to the southeast of this important intersection. The Company has now completed first-pass drilling on 500 metres of the 1,200 metre long magnetic high trend, giving the technical team a good understanding of this significant mineralized system, which continues to remain open along strike in both directions, and at depth.

Adam Travis, President and CEO of Colorado Resources commented, "In a mere 4 months since our initial discovery hole was announced, we have completed nearly 6,000m of drilling, enlarged the North ROK porphyry body to over 500m in strike length, maintained average grades of over 0.50% copper equivalent* ("Cu Eq") (0.30% copper and 0.37 g/t gold) in a total of over 1,800m of mineralized intersections, and returned significant porphyry mineralization from 10 of 12 holes. I am particularly encouraged by hole NR13-013 - our farthest mineralized intersection from the discovery hole - which had to be terminated at the drill's maximum capacity (565m depth), but was still returning mineralized material grading 0.24% copper and 0.11 g/t gold (0.31% Cu Eq*) from the bottom of the hole."