Network Metals LLC

Gold fell for the seventh straight session yesterday, and it finished at around $915. We still continue to see consolidation among junior mining companies involved with gold (see below for another gold joint venture), and mergers and acquisitions are a hot topic at the PDAC conference in Toronto. The high gold prices, even down at the $900 level, are still very enticing for any company with a site that can produce gold profitably, and most are anxious to get to production if they are not there yet. Given the time frame of the current rise in gold prices, it holds that most gold mines anywhere near production can ostensibly remain profitable at $700 or even $600 gold. If $900 remains a reality for an extended period of time, we will see new mining sites with higher costs of production popping up, but for now most sites near production should produce profitably and could be good values at current levels.