http://www.theaustralian.news.com.au/business/story/0,28124,25645...

http://www.theaustralian.news.com.au/business/story/0,28124,25645722-5017996,00.html

THE DIRT: Robin Bromby | June 16, 2009
Article from: The Australian
Well, at least here's one tip that seems to be panning out (pun intended).

Back on May 21, The Dirt stated: “Another stock to watch is Chesser Resources. This is a company run by Richard Valenta who came here after a strong track record in Canadian mining, and which has the Sisorta gold project in Turkey. This deposit is located on what is known as the Tethyan Belt, a geological structure that runs from Iran through to Turkey and includes the enormous Reko Diq copper-gold porphyry resource in Pakistan. Chesser is one of a number of companies chasing gold in Turkey, including Newmont Mining.’’

Well, Chesser has now put bread on the table with a maiden resource. It’s a little on the low side in grade terms, 303,000 ounces in all, comprising an indicated resource of 91,000oz at 0.9 grams/tonne and an inferred resource of 212,000oz at 0.6g/t. But these are early days. The company addresses the grade issue thus: “The reported grade is well within the range of current operating open pit, heap leach gold operations”.

Valenta sees it as a “solid beginning” and is confident of boosting the size of the resource. A new drill program is about to begin.

Given that it is such a crumby day on the ASX, it is not surprising that only $9500 of stock went through, the price rising by a sliver (0.02c) to 10c.

Perhaps the nervous nellies have been rattled by the recent drop in the gold price, caused mainly by the strengthening US dollar. The precious metal closed in New York last night at $US928 an ounce, but was showing some resilience in afternoon Asian trading by getting back over $US933/oz.

Actually, gold did pretty well by comparison with the base metals complex. Lead down 6.1 per cent overnight, nickel down 5.8 per cent and zinc sinking by 6.8 per cent.

The Dirt, however, is not faint-hearted about gold. The wheels are still coming off, folks. The Obama-Brown-Rudd debt steamroller will take all before it in terms of currency values.

Take Latvia, a brushfire that could start a firestorm in European banking finances. Pensions are being cut by 70 per cent, doctor salaries by 20 per cent, overnight rates are sitting at 200 per cent. The Harvest Party – the new name for the communists – came first in the recent local elections.

We bet the Latvians would be looking to gold right now.