Aton wants the Pharaohs Gold
Egypt has a 6000-year history of good mining that pretty much came to an abrupt end when Colonel Nasser staged a revolution in 1952 and nationalized the mining industry in 1962. Coups and counter coups continue with an attack on police in Cairo last week killing six at the same time as I was flying out of Cairo after a trip to a mining company. There have been more attacks since I left including an attack on a Coptic church that killed 27 Christians at a service in Cairo on Sunday. In a strange way, these constant attacks may well help gold mining in Egypt over the long-term.
Americans want to believe that coups or revolutions and the threat of constant violence is something that only happens in other countries but all the signs are there that say we are due a revolution soon or at least a coup. I wrote a book in November of last year I called The Art of Peace about my reflections on being at war and what comes our way soon. This is part of how I summed it up on the very last page,
Bear in mind that was written over a year ago. To anyone with an open mind, certainly Sanders was screwed by the leadership of his own party and proved more popular than HRC ever gleamed possible. And despite all the fake news from the NYT and WP with their claim of a 98% chance of HRC winning the election, those voting chose the 2nd most despised candidate in US history as our next president because he claimed he was going to change things.
How close is the US to revolution? Pretty damned close. In what will go down in history as the most perfect example of FAKE NEWS to ever come down the pike, the Washington Post fired a shot across the bows of anyone in the alternative media who dared question The Official Party Line. A no-name meaningless site that no one ever heard of before called PropOrNot listed 200 alternative news sites as being stooges of the Russians or useful idiots and demanded the FBI investigate them. I cannot tell you how disappointed I was not to have made the cut. If I could apply for membership I would hand them my credit card for the fee in an instant.
November 24, 2016 will mark the date of the death of the Washington Post. Like a scorpion in the last stages of dying, the rag will continue thrashing around stinging anything in reach until finally it stings itself.
But more importantly, the WP may have set in motion a planned false flag operation on behalf of the Military-Industrial-Congressional Complex to reverse the election and keep power in the hands of the elite in the person of Hillary Rodham Clinton who has long proved that she spreads her legs for everyone. If you want to buy her, bring your quarters. HRC lost the election because she was the most despised presidential candidate in US history. Now she’s whining how the Russians did it.
The card-carrying members of the MIC Complex including useful idiots even from the Republican side such as John McCain, Lindsey Graham and Mitch McConnell are claiming the Russians hacked the DNC and John Podesta emails. They are calling for a Bi-Partisan investigation.
Guys, how about getting someone not bought and paid for by the MIC Complex to put in their two cents?
Lest the NYT and WP admit they are nothing more than paper tigers, the pair of masters at fake news is supporting the investigation while using weasel words to admit that actually the “evidence is not conclusive.” Those are weasel words and we know it because evidence is evidence and non-conclusive is always non-conclusive. You can’t have evidence that is non-conclusive because it wouldn’t be evidence then. Evidence has to be conclusive.
Actually we know the Russians didn’t do the hack of either the DNC or John Podesta because real intelligence experts have told us the Russians were not behind the hack. That article points out that the NSA knows for certain the Russians were not behind the hack. Another piece from a real news source points out that if the FBI had evidence of someone participating in the hack on behalf of the Russians, he or she would be under arrest or at least charged no matter where they might be in the world.
When governments fail to protect the economic well-being of their citizens, revolution becomes inevitable. If economic change can be made peacefully, that happens and the citizens quiet down. If on the other hand a government fails to allow for peaceful change, chaos and bombs follow naturally.
The coup in Egypt in 2013 ousted one elected government that the people were unhappy with and installed an equally unpopular military government. It also killed the tourist industry, long a mainstay of the Egyptian economic. When the worldwide price of oil collapsed by 70% from June of 2014 another leg supporting the Egyptian economy tumbled with it.
Egypt was a third world country when the oil tap was flowing and tourists mobbed the souk daily. With both under siege, the government needs to do something to bring in revenue. For a time it looked like Centamin might help. Using the well documented maps showing just where the Pharaohs found their gold; the company found a giant deposit and outlined fourteen million ounces of gold. Their Sukari Gold mine went into production in 2010 and produces almost 500,000 ounces of gold yearly at a cash cost of about $700.
In Egypt when a gold company goes from exploration to exploitation prior to actual mining, the government sits down with them and hashes out a deal. The same people who administer the oil industry in Egypt just took the standard oil industry agreement and filled in the name of Centamin. That current agreement calls for a 50-50 split of all profits after the initial investment is recouped. That might make sense for the oil industry were all of the costs are up front. Basically once you have drilled an oil well and set your casing and piping to a storage facility, you have spent all the money you are going to spend.
Mining doesn’t work that way. Expenses are constant and you can always upgrade your equipment and search for more ore. Centamin has a 28-year source of gold at today’s production but is still drilling for more. Why not? If you don’t spend the money, you end up giving it to the government. So while Centamin generates a giant cash flow of over $600 million a year, they don’t report any profit and pay no share to the government of Egypt. It’s a stupid agreement that hurts both Egypt and Centamin. If the government of Egypt had just looked at how other countries in the world handle revenue from mining, they would have taken a piece of the company or a NSR. If they had done that they would be collecting tens of millions of dollars. Instead, they get nothing and Centamin is selling for perhaps 30% of what they should be selling for.
The company I went to visit is named Aton Resources (AAN-V) and they have a major trend some 40 km long in a 738 square km concession. A number of mines have been located on the trend with workings going back to the Bronze Age. The last mining took place in 1958 when two British companies bailed out when Nasser started making noises about nationalizing the industry. There has been next to no modern exploration or drilling done prior to Aton. The company was formerly named Alexander Nubia International.
The company started in 2007. Total drilling on the project by the company is just short of 10,000 meters. There is an inferred resource of 397,000 ounces gold equivalent at the Abu Marawat gold deposit. There were management issues in the past and the Board of Directors changed riders at the end of December 2015. And there was a 5 for 1 rollback in January of 2015.
I’ve been to the project last week. There is a lot of gold there. The drill results are exceptional and they will add ounces in a hurry. The company hoped to be releasing an initial 43-101 for the Hamama Deposit this month but late assay results and the Xmas chaos has forced a delay in the resource until early January. Aton recognized a need to be fully capitalized so conducted a major fund raising including participating with Rick Rule from Sprott. Rick Rule only loosens the purse strings when he sees a big potential but he takes his pound of flesh in return. The company just finished a $4.6 million dollar placement at $.065 with a full warrant at $.08.
It’s put up or shut up time for Aton. They have the deposit, Egypt needs the revenue, their technical staff is excellent and they have over $4.5 million in the piggy bank with a market cap of under $12 million. What I saw could easily become a mine. How big? Nobody knows today but the company is fully funded for a major exploration and drilling program in 2017. Expect constant news flow starting early in the year.
Egypt has a lot of potential for mining. Aton’s ground could support half a dozen junior mining companies. They have far more ground than they can ever explore. But the country needs to bring their mining code into the 21st century. The best way to do that would be to get in touch with other mining countries in Africa and see how they share revenue participation. What they have today simply doesn’t work. When that happens, both Centamin and Aton will have an immediate revaluation of their share price.
I thought Aton shares were cheap at $.065 so I bought some in the open market and I participated in the just announced PP. Aton is an advertiser and naturally I am biased. The website could use a do-over but the basic information you need to know about the company is there. I expect to see a lot of progress in the coming year from this management team. Do your own due diligence.