Eldora Gold Resources News - Willow Creek Signs LOI to Acquire Historic Gold Property in Prestigious Walker Lane, Nevada

Eldora Gold Resources Canada News-Willow Creek Enterprises Inc. (OTCBB: WLOC) ("The Company," "Willow Creek") Willow Creek is pleased to announce that it has signed a Letter Of Intent to acquire the Hercules property from Minquest, which is located in the prestigious Walker Lane Mineral Belt in Nevada, USA.

The historic Walker Lane Mineral Belt, western Nevada, is a highly mineralized trend that contains several world-class epithermal precious metals deposits, such as: the Comstock Lode (estimated production of 8.6 million ounces of gold and 192 million ounces of silver), Round Mountain (Barrick / Kinross)(over 10 million ounces of gold produced since 1906), Rawhide, Aurora, Goldfield mines, as well as porphyry copper deposits: Yerington (1.75 billion pounds of copper produced from 1953-1978 by Anaconda Copper Company),

Eldora Gold Resources Canada News - The Hercules property gives Willow Creek (OTCBB: WLOC) access to one of the most prolific mining areas in the world. According to a report made by Global Geological Consultants (GGC)* in 2003, The Hercules prospect has direct analogies to the historic Comstock Lode deposit, which is located less than 10 miles to the north. While the Comstock Lode produced approximately $670,000,000 worth of gold and silver from 1860 to 1880, the Hercules Mine, located on the "Hercules" property, is estimated to have produced 5,000 oz of gold and 20,000 oz of silver during early, turn-of-the-century mining efforts. In more recent years, modern exploration has been conducted on the property by companies such as Pioneer Mining Corporation, Phelps Dodge Corporation, and Horizon Gold. The GGC* report further states that the potential for the discovery of thicker, mineralized veins within the Hercules is very good, and that recommended drill tests could identify a deep-seated mineralized deposit for which the Walker Belt is known. Further support for exploration of the Hercules was given by Joseph Tingley** in an annual compilation of major precious metal deposits in Nevada, where he noted a resource for the Hercules deposit of approximately 260,000 oz of gold and 1,950,000 oz of silver.

"The company believes the Hercules property contains one of the most significant untested Comstock-type vein systems in the Western United States. With gold prices hovering well over $1,300.00 an ounce, and silver prices steadily climbing, the Hercules property offers a tremendous opportunity to our shareholders as we move forward," stated Terry Fields, President Willow Creek.

Eldora Gold Resources Canada News - Management believes that in addition to its proximity to other major discoveries, the Hercules' physical location makes it an ideal property for exploration and development. Existing infrastructure, including manpower and accessibility for the Hercules property, is supported by the nearby city centers of Reno and Carson City. State highways and paved roads provide easy access, while moderate temperatures allow for year-round physical work on the property. As we approach the colder months, this physical attribute will allow us to continue our work as many others are forced to shut down their operations until the spring.

Political support for the mining industry enjoyed by the state of Nevada was another determining factor for management when selecting the Hercules property. Favorable laws, positive safety regulations, and the lack of political unrest seen in many other parts of the world are among the main reasons that Nevada's gold production accounted for more than 79% of total U.S. production and 7.2% of the world's gold production in 2009 (Economic Overview of Nevada's Mineral Industry report; Nevada Mining Association). Nevada State Geologist and Director of the Nevada Bureau of Mines and Geology Jonathan Price recently stated that Nevada is still in its biggest mining boom, one that produced more than 200 million ounces of gold in Nevada from 1981 to last year. With the addition of the Hercules prospect to our portfolio of properties, Willow Creek (OTCBB: WLOC) hopes to contribute to Nevada's production numbers in the years to come.

* Summary Report and Exploration Proposal on the Hercules Gold Prospect. Lyon Nevada, published January 24, 2003 by Geoffrey Goodall, P. Geo

** Nevada Bureau of Mines and Geology - Special Publication MI-2005

Eldora Gold Resources Canada News - This news release contains "forward-looking statements", as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as "estimate," "anticipate," "believe," "plan" or "expect" or similar statements are forward-looking statements. Risks and uncertainties for the company include, but are not limited to, the risks associated with natural resource exploration and development and needs for funding as well as the risks shown in the company's most recent annual report on form 10-k and on form 10-q and from time-to-time in other publicly available information regarding the company. Other risks include risks associated with the regulatory approval process, competitive companies, future capital requirements and the company's ability and level of support for its exploration and development activities. There can be no assurance that the company's development efforts will succeed and the company will ultimately achieve commercial success. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the company's periodic reports filed from time-to-time with the United States Securities and Exchange Commission.

This news release has been prepared by management of the company who takes full responsibility for its contents. Finra, the sec and the OTCBB neither approves nor disapproves the contents of this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 

Eldora Gold Resources News - Correction in Precious Metals Likely to Set Stage for Further Run Ups

Eldora Gold Resources Canada News - China is the world’s largest producer of gold, but it has plenty of other precious metals and rare minerals as well. Some in the world are already worried about so much power concentrated in one place.
A Bloomberg Report this week stated that silver exports from China, one of the world's largest, may drop about 40 percent this year as domestic demand from industry and investors climbs. China is the third-largest producer after Peru and Mexico. It is expected that reduced exports will boost prices. Industrial applications for silver, including electrical conductors and batteries, represent about half global demand. Silver has rallied 44 percent this year, outperforming gold and copper.
Eldora Gold Resources Canada News - In addition, China, which has been blocking shipments of crucial minerals to Japan for the last month, has also halted some shipments to the United States and Europe. These rare earth minerals are crucial to manufacturing many advanced products such as radar, cell phones, high-powered magnets and mini-hard drives in laptop computers. China’s control of them and its willingness to flex its economic muscles seem certain to further intensify trade and currency tensions. The bad news is China mines 95 percent of the world’s rare earth elements. If restriction on exports of these minerals continues, it could force multinational companies to produce more of their high-technology goods in China.
Speaking of mining, let's take a look at the long-term XAU chart. The XAU (gold and silver stocks index) Index failed to break into new highs - as visible on the very-long-term chart above. Although we see it presently at a declining support level, we don't expect this level to hold given declining gold, silver and stock prices.

Eldora Gold Resources Canada News - Support levels such as the lower border of the trading channel, previous local tops, and multi-year support levels are also in play. The declining, short-term trend line has been broken recently most likely due to the USD Index rally. The area around the 170 level appears to be the probable bottom for the current decline.

In a recent Market Alert sent to our Subscribers, we discussed the possibility for Traders to bet on lower prices using options. Lower prices in mining stocks may be the way to go due to their lower volatility. Their close trading range has caused a decline in option premiums.
Eldora Gold Resources Canada News - In the research section of Sunshine Profits website, Predicting and Taking Advantage of Corrections in Gold is an essay, which is perfect for our current situation. Options traders should be sure not to miss this instructive piece.
Summing up, it is likely that mining stocks will eventually rally but we will probably first see a corrective period. Lower prices are likely to be seen in the short-run with a rally to follow perhaps before the end of the year.
Disclosure: No positions

About the author: Przemyslaw Radomski. Przemyslaw Radomski is the founder, owner and the main editor of SunshineProfits.com. Being passionately curious about the market’s behavior he uses his statistical and financial background to question the common views and profit on the misconceptions.

Using Gold to Monitor Market's Reaction to QE2: Eldora Gold Resources News

Eldora Gold Resources Canada News- A Wall Street Journal article today on quantitative easing (QE) hints the Fed will take a middle of the road approach in terms of the size and duration of QE2. As we would expect, the stock and commodity markets’ initial reaction is negative. A middle of the road approach to QE seems counter intuitive to the Fed’s own historical analysis of why quantitative easing was ineffective in Japan. In CCM’s July 2010 review of James Bullard’s Seven Faces of “The Peril,” our read between the lines interpretation of Bullard’s take on QE included:
In order for quantitative easing to sufficiently increase future inflation expectations, market participants must believe the Fed will do “whatever it takes for as long as necessary” to obtain the objective of sufficiently positive inflation. This means the Fed must be willing to leave balance sheet expansion in place for as long as necessary to create expectations of higher future inflation by market participants (consumers, investors, companies, etc.). This reminds us of past “bazooka-like” policy moves, where policymakers would say, “You think we can’t create positive inflation? Just watch.
Eldora Gold Resources Canada News- The key to next week’s Fed statement on quantitative easing will be how they address the concept of “whatever it takes for as long as necessary.” We can use gold and the US dollar to monitor the market’s reaction to QE2 and the stock market. On October 11th in U.S. Dollar Could Rally In Coming Weeks, we hypothesized QE2 could be a “buy the rumor, sell the news event” relative to risk assets. Since October 11th, the dollar index has moved from 77.18 as high as 78.36; a move above 78.36 would increase the odds of the US dollar having a multi-week countertrend rally.
On October 13th with the S&P trading at 1,169, we listed 1,196 as a possible short-term upside target. The S&P 500’s intraday high on October 25th was 1,196, which means we have entered a zone where the odds of a short-to-intermediate-term reversal have increased (emphasis on odds). Stock market breadth on October 26th was weak, adding to the list of concerns over the next few days.
Eldora Gold Resources Canada News- We recently mentioned some yellow flags in the gold market. Thus far, gold is holding up well enough that a push to new highs still could be in the cards. From a short-term bearish perspective, a break of the thin blue trendline below would increase our concerns about a correction in gold. The long-term fundamentals for gold remain sound.
As we monitor gold, QE and the dollar, we must also consider the possible impact on "weak dollar assets" such as gold, silver, copper, oil, agricultural commodities, Australian dollar, Canadian dollar, and emerging markets.
Video: What Is Quantitative Easing?
Eldora Gold Resources Canada News- In part three of our six part series on quantitative easing, we examine Fed statements, writings, and publications related to the objectives of, and rationale behind, QE2. The analysis of some key Fed commentary on quantitative easing allows us to better understand the Fed’s perspective relative to QE’s possible impact on the financial markets, investing, the economy, interest rates, asset prices, and the wealth effect. Today’s quantitative easing video also touches on the following:

• Duration of QE program
• Consumption
• Investment
• Ben Bernanke’s “printing press” speech
• US dollar devaluation
• Fiat / paper money system
• Spending
• Inflation
• Dividend-paying securities (video link below)

Disclosure: Author long GLD, UDN, SLV, JJC, DBA, FXA and EEM

About the author: Chris Ciovacco. Chris began his investment career with Morgan Stanley in Atlanta in 1994. With a focus on global macro investing, Chris uses both fundamental and technical analysis to assist in managing risk while looking for growth opportunities around the world in all asset classes.