Paul VanEeden

Gold: No time in history has there ever been the same circumstances that we now have, which could cause gold to shoot up substantially. Currently about $150 an ounce more than what he thinks its fair value. (His FV calculation is based on relative inflation rate of gold compared to the inflation rate of the US$.)

Market: This is a sucker rally. Far more downside ahead. In an over leveraged economy like this debt cannot be repaid and we need to see this shake out and we are years away from this. Bankruptcies and change of ownership is the bottom line. Not prepared to stick his neck out much further than gold and cash.

Economy: He is of the opinion that deflation is a non-event. There is zero risk of monetary or genuine deflation. Inflation is a very, very substantial risk and is almost convinced that we will see high rates of inflation in the years ahead.

Oil: Looks at oil and commodities on an inflation-adjusted basis. Thinks that $70-$80 is fair value for a barrel of oil now, given the inflation we have seen. Bullish on oil after the next 6 or 12 months. Also a believer in Peak oil.

Potash has held its price up because of supply reductions from Potash (POT-T) and Russians. Sceptical that they can keep that game going. Expecting a revolt in the potash sector that will bring prices down. Should tread very lightly around any company that will need funding.

(Market Call Minute.) Iron ore prices are going to come down. Rio Tinto (RTP-N) just negotiated with the Japanese and iron ore prices came down 33%. Thinks Chinese will be tougher negotiators.

Planning on building a refinery in Placentia's Bay in Newfoundland. There hasn't been a new refinery built in North America in more than 30 years. Existing refineries cannot cope with the amount of heavy, sour crude, which means their output of gasoline and diesel is falling. This refinery will be the most advanced in the world and approximately the 8th largest. Specifically designed to refine heavy, sour crude.

Trying to put a Timmins’ gold mine into production. Less about $100 million last year and $75 million the year before. Balance sheet is not in very good shape.

Developing A geothermal project in Nevada. Well advanced in the production of the project. Has his eye on it and would be quite interested in buying it back again at some future point. A fantastic project.

Have an operating gold mine and last year made a discovery called the Hinge zone, which has some very spectacular gold grades in it. Have the potential to substantially increase their resource base. His only caution is that gold rose 50% from August of last year so your risk relies on the price of gold.

Gold: - Likes gold as an investment. Believes he can calculate the value just by looking at the relative inflation rate of the US$ versus the inflation rate of gold. Based on this, gold at $900 to $1000 is fair value. Inflation rate in the US, measured by M3, is rising by 17% year over year, which bodes very well for the gold price. What concerns him is the 50% rise from last August, which could result in a short-term contraction.

Finds this group to be overly promotional. Had a good run but totally collapsed again in price. Has a lot of stock outstanding.

Made a very interesting discovery in Mexico. Initial resource, which is sitting right at surface, is an oxide cap, has the potential to be anywhere from 1 to 3 million ounces. A few deep holes going into the sulphide zone shows there are grades in the sulphide. Has the potential to go a lot higher but will need more drill holes. Top stock on his radar screen.

Recently bought the Jerritt Canyon operations in Nevada. Very marginal operation so if gold had a substantial rally, this is something that could turn out a lot of cash flow, but it is so marginal that even in today's price, he doesn't know if they are making money. Too risky. Jerritt Canyon has seen its heyday.

Uranium price is down 50% from its highs and he doesn't think the worst is over. This company has 2 problems. The decline in the uranium prices as well as the moratorium on uranium exploration and mining in Labrador.