Eldora Gold Resources News-gold's Insurance Cost Index Explained

Eldora Gold Resources News-By Brad Zigler. We've expounded on the option market insurance model in this column before. In their most basic utility, options offer investors protection from catastrophic changes in asset values, just like homeowners, automobile and gulp! life insurance contracts.

And just like other insurance markets, option prices are determined in part by the issuers' perception of risk. When the odds of a payout increase because of increased fire hazards, a poor driving record, disease or wobbly asset values the cost of protection rises.

For years now, professional traders have gauged risk in the investment market by metering the volatility assumptions embedded in option prices. The Volatility Index (VIX) measures the expected variance in the stock market over the ensuing 30 days by extracting the implied volatility of near-term options on the SPDR Depository Receipts (SPY).

Eldora Gold Resources News-More recently, the VIX concept has been translated to the oil and gold market. The CBOE Gold Volatility Index (GVZ) has been tracking risk expectations in the gold market by distilling the "IV" ("implied volatility") SPDR Gold Shares Trust (GLD) options for the past couple of years.

Presently, GVZ pegs the annualized volatility of the gold market at 20 percent. Is that high or low? Well, it's certainly higher than it was. Last month, anyway. Back in September, when gold was reaching new nominal highs, GLD volatility dipped as low as 16.7 percent.

The implication? Back then, option traders were pricing contracts with the expectation that gold prices proxied by GLD would likely vary up or down 1.4 percent (16.7 percent divided by 12 months) over a 30-day period.

When GVZ aka volatility is high, writing (selling) naked options and credit spreads are more likely to make money. When GVZ is low, debit spreads and naked option purchases are favored.

Relatively speaking, buying GLD options would have been the play in mid-September. If you were exceptionally prescient, you would have bought calls for a month-long, $130-an-ounce ride up Bullion Mountain.

GVZ peaked at 22.6 percent along with gold prices on Oct. 14. GVZ then signaled a heightened risk of change in gold's price trend. Now GVZ's falling along with gold prices, indicating a certain market complacency with the trend.

The Gold Insurance Cost Index measures the risk of price trend changes as well and, as you can see from the chart below, pretty much tracks alongside GVZ. The insurance index is derived by comparing GLD option premiums to SPY contract costs. Each day, puts with at least eight weeks til expiration and each 10 percent out of the money are ratioed: the GLD put premium in the numerator and the SPY premium down below. The daily change in the resulting percentage is then indexed to a base level. In the chart below, the starting date is arbitrarily set as July 23.

Eldora Gold Resources News - The essential difference between the two metrics is volatility itself. The insurance index is more sensitive and generally renders its peak and trough signals a day or two sooner than GVZ. Time can be a great advantage to a trader or a hedging investor giving insurance index followers a bit of a jump on GVZ watchers.

Of course, tracking GVZ is easy. No calculation is required. Its value can be pulled up in real time along with any other market quote.

Which indicator you choose to follow is purely a matter of personal preference. Disclosure: No position
About the author: Hard Assets Investor Hardassetsinvestor.com (http://hardassetsinvestor.com/) is a Van Eck Associates-sponsored, research oriented Web site devoted to sharing ideas about hard assets investing.

Update on Venezuela Gold Mining: Eldora Gold Resources Canada News

WINONA, ON CANADA October 28, 2010 /24-7PressRelease/ -- Update on Venezuela Gold Mining: Eldora Gold Resources Canada News - Uncertainty grips expectant gold-mining communities in Venezuela. Continuing a report on the situation of gold-mining in Bolivar State and in particular on the Las Cristinas mine in Sifontes municipality, Correo del Caroni reporter, Natalie Garcia maintains that the end of the Crystallex concession has reopened the debate on the Venezuelan State's gold-mining policies, which could be said to have failed, given current labor instability and cordons of misery south of Bolivar State.
Update on Venezuela Gold Mining: Eldora Gold Resources Canada News - VHeadline News Editor Patrick J. O'Donoghue reports: Several decades ago, the Las Cristinas was held up as the salvation of thousands of local inhabitants, who were scratching a living off illegal and wild cat mining. Las Cristinas, Garcia pointed out, has not been formally exploited for more than 20 years, even though it has around 31 million ounces of gold and proven reserves.

There is also the Brisas del Cuyuni mine formerly in the hands of Gold Reserve, which is suing the government for compensation.

The journalist (pictured right) ventures that Las Cristinas' future looms uncertain because details have not been released about the next steps to be taken.

A proposal was launched in 2008 at a meeting of the Basic Industries & Mining (Mibam) Ministry to set up an "ALBA Gold Mining District," consisting of three blocks to be distributed among small-to-medium socialist mining companies belonging to the Bolivarian Alliance for the Americas (ALBA).

Update on Venezuela Gold Mining: Eldora Gold Resources Canada News - Within the strategy, there was a social plan to invest part of the money coming from gold production, creating a warehouse center, a gold refinery and mint, and a goldsmith network under the control of mining cooperatives. Part of the plan included building a copper recovery plant because of the association between copper and gold.

Garcia raises the possibility of a 50/50 joint venture between the State and VenRus, the Russian company, currently holding the La Isidora and La Camorra concessions.

Whatever the outcome, Garcia concludes, local communities are calling for the immediate activation of mining projects and their inclusion when it comes to distributing the profits.

The main call as ever is for new job opportunities and an improvement in the local communities' standard of living. Patrick J. O'Donoghue news.editor@vheadline.com
Update on Venezuela Gold Mining: Eldora Gold Resources Canada News - Our editorial statement reads:
VHeadline.com Venezuela is a wholly independent e-publication promoting democracy in its fullest expression and the inalienable right of all Venezuelans to self-determination and the pursuit of sovereign independence without interference. Our stance is decidedly pro-governance (defined as being contrary to anarchy) and pro-government to the extent that we support all and any government policies aimed at consolidating and improving the living conditions and future prosperity of ALL Venezuelans, regardless of race, color or creed. We also seek to shed an international spotlight on nefarious practices and corruption which, for decades, has strangled this South American nation's development and progress. In every respect VHeadline Venezuela's declared editorial bias is most definitely pro-Constitutional, pro-Democracy and pro-VENEZUELA.

-- Roy S. Carson, Editor/Publisher Editor@VHeadline.com

Eldora Gold Resources Canada was founded by a group of experts in the mineral recovery and mining industry, whose focus is to provide accurate information, state of the art equipment and outstanding customer service. Eldora Gold has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings.

Property Evaluation: Eldora Gold Resources Canada

Frankfurt Listing. Eldora Gold Resources Canada has applied for a listing on the Frankfurt Stock Exchange – Open Market.
The company expects to have achieved its full listing status during the 4th Quarter of 2010. Please direct all Investor Inquiries to investors@eldoragold.com

Eldora Gold Resources Canada: Property Evaluation is our consulting division which provides the service of mineral content evaluation of mining properties. Our extensive private database coupled with state of the art satellite and geophysical image processing gives our clients the information they require to buy/sell or mine theirs claims.
We also provide a forum for customers to buy and sell their properties coupled with our mineral evaluation analysis. Eldora Gold Resources Canada: Our mission statement is to provide our clients with a profitable process of extracting mineral deposits in a way that is environmentally friendly.
We strive to significantly slow down the destruction of our environment as the result of chemicals and minerals leaching into the soil from tailings.
We also strive to extract as much valuable minerals from the tailings to ensure our clients are profitable.

Properties. Eldora Gold Resources Canada will offer a forum for our clients to buy or sell mining properties.
This prospecting real estate section will form a database of our customers mining properties for sale. This database will also contain information about each property using our evaluation technology and sample testing service and will define the mineral possibilities and concentrations.
Advertising properties on this site will be free of charge and Eldora Gold will only require a small commission on the sale of the property from the seller, and a finders fee from the buyer.

Eldora Gold has applied for a listing on the Frankfurt Stock Exchange – Open Market. The company expects to have achieved its full listing status during the 4th Quarter of 2010. Please direct all Investor Inquiries to investors@eldoragold.com
Eldora Gold Resources Canada: Eldora Gold was founded by a group of experts in the mineral recovery and mining industry, whose focus is to provide accurate information, state of the art equipment and outstanding customer service. There are 3 core founders, each with a unique and extensive background.

Eldora Gold Resources Canada: The Company’s Technical Manager has more than 30 years experience in manufacturing and process plant operations holding a BSc In Metallurgical Engineering from the University of Toronto as well as significant experience in precious metals refining. He also holds a US patent in Cadmium-free gold solder alloys. He specializes in the tailings processing technology and all engineering aspects of Eldora Gold Resources Canada’s proprietary equipment and techniques.

Eldora Gold Resources Canada has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings.

Our technology has no up-front cost to the client due to the low capital cost of the equipment. Eldora Gold Resources Canada will start by verifying the mineral content of the tailings through certified sample testing and we will supply the equipment and training necessary to extract the mineral concentrate.

Newsvine - Property Evaluation: Eldora Gold Resources Canada

Frankfurt Listing. Eldora Gold Resources Canada has applied for a listing on the Frankfurt Stock Exchange – Open Market.
The company expects to have achieved its full listing status during the 4th Quarter of 2010. Please direct all Investor Inquiries to investors@eldoragold.com
Eldora Gold Resources Canada: Property Evaluation is our consulting division which provides the service of mineral content evaluation of mining properties. Our extensive private database coupled with state of the art satellite and geophysical image processing gives our clients the information they require to buy/sell or mine theirs claims.
We also provide a forum for customers to buy and sell their properties coupled with our mineral evaluation analysis. Eldora Gold Resources Canada: Our mission statement is to provide our clients with a profitable process of extracting mineral deposits in a way that is environmentally friendly.
We strive to significantly slow down the destruction of our environment as the result of chemicals and minerals leaching into the soil from tailings.
We also strive to extract as much valuable minerals from the tailings to ensure our clients are profitable.
Properties. Eldora Gold Resources Canada will offer a forum for our clients to buy or sell mining properties.
This prospecting real estate section will form a database of our customers mining properties for sale. This database will also contain information about each property using our evaluation technology and sample testing service and will define the mineral possibilities and concentrations.
Advertising properties on this site will be free of charge and Eldora Gold will only require a small commission on the sale of the property from the seller, and a finders fee from the buyer.
Eldora Gold has applied for a listing on the Frankfurt Stock Exchange – Open Market. The company expects to have achieved its full listing status during the 4th Quarter of 2010. Please direct all Investor Inquiries to investors@eldoragold.com
Eldora Gold Resources Canada: Eldora Gold was founded by a group of experts in the mineral recovery and mining industry, whose focus is to provide accurate information, state of the art equipment and outstanding customer service. There are 3 core founders, each with a unique and extensive background.
Eldora Gold Resources Canada: The Company's Technical Manager has more than 30 years experience in manufacturing and process plant operations holding a BSc In Metallurgical Engineering from the University of Toronto as well as significant experience in precious metals refining. He also holds a US patent in Cadmium-free gold solder alloys. He specializes in the tailings processing technology and all engineering aspects of Eldora Gold Resources Canada's proprietary equipment and techniques.
Eldora Gold Resources Canada has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings.

Our technology has no up-front cost to the client due to the low capital cost of the equipment. Eldora Gold Resources Canada will start by verifying the mineral content of the tailings through certified sample testing and we will supply the equipment and training necessary to extract the mineral concentrate.

Focus: About Eldora Gold Resources Canada

About Eldora Gold Resources Canada: Eldora Gold was founded by a group of experts in the mineral recovery and mining industry, whose focus is to provide accurate information, state of the art equipment and outstanding customer service. There are 3 core founders, each with a unique and extensive background.
The President has been involved in technical sales and engineering for over 25 years holding 5 certificates in ferrous metallurgy and is a member of the Society of Manufacturing Engineers. He also brings with him and extensive manufacturing background and a strong sales history specializing in the technical sales of Eldora Gold Resources Canada’s tailings processing service along with the Property Evaluation service.
Our Chief Geologist has been a consultant/contractor in the mining exploration industry for over 20 years and holds a BSc in Geology from McMaster University. With extensive mining and database experience from projects worldwide, his client list is very extensive and includes some of the top names in the mining industry. Specializing in Property Evaluation using Eldora Gold Resources Canada’s data analysis process he offers accurate property reports using the latest technology.
About Eldora Gold Resources Canada: The Company’s Technical Manager has more than 30 years experience in manufacturing and process plant operations holding a BSc in Metallurgical Engineering from the University of Toronto as well as significant experience in precious metals refining. He also holds a US patent in Cadmium-free gold solder alloys. He specializes in the tailings processing technology and all engineering aspects of Eldora Gold Resources Canada’s proprietary equipment and techniques.
Eldora Gold Resources Canada has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings.

Our technology has no up-front cost to the client due to the low capital cost of the equipment. Eldora Gold Resources Canada will start by verifying the mineral content of the tailings through certified sample testing and we will supply the equipment and training necessary to extract the mineral concentrate.
Frankfurt Listing. Eldora Gold Resources Canada has applied for a listing on the Frankfurt Stock Exchange – Open Market.
The company expects to have achieved its full listing status during the 4th Quarter of 2010. Please direct all Investor Inquiries to investors@eldoragold.com
Tailings Processing. Tailings processing is our operations division which provides a chemical free, environmentally friendly solution to the process of extracting minerals from tailings.
Eldora Gold Resources Canada has developed proprietary equipment and techniques that extract mineral concentrate from existing tailings. Our technique also reduces the negative environmental effect of the chemicals remaining in the tailings from the original mining process.
Our low capital cost approach and high mineral recovery percentage provides an extremely profitable option for our clients. Eldora Gold also provides a database of buyers willing to purchase the concentrate.
Tailings Processing Technology. Eldora Gold Resources Canada has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings. Our technology has no up-front cost to the client due to the low capital cost of the equipment.

info@eldoragoldresources.com
www.eldoragoldresources.com

Update on Mining: Eldora Gold Resources Canada News

Oct 22, 2010 – PMI GOLD TO APPOINT TWO NON-EXECUTIVE DIRECTORS, PETER BUCK AND ROSS ASHTON TO THE BOARD SUBJECT TO THE CO-LISTING OF THE COMPANY IN AUSTRALIA.
Eldora Gold Resources Canada News: Update on Mining - VANCOUVER, Oct. 21 /CNW/ - PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or "the Company") announces that Mr. Peter Buck and Mr. Ross Ashton have agreed to join the Board of PMI Gold as Independent Non-Executive Directors subject to and following its proposed Australian co-listing.
Commenting on the appointments of Messrs. Buck and Ashton (Members AUSIMM), PMI Gold CEO, Douglas MacQuarrie stated "PMI Gold is pleased to be able to attract such experienced and respected Australian Directors to join the Board of the Company following its proposed Australian listing. Mr. Buck has been associated with the discovery and development of a number of mineral deposits in Australia and Brazil, and Mr. Ashton was the founding Managing Director of Red Back Mining Inc., which was recently the subject of a merger with Kinross Gold Corporation which valued Red Back at US$7.1B.  Their wealth of exploration and development experience will be invaluable for PMI Gold as the Company progresses development at its Obotan and Kubi Gold Projects in Ghana."
Mr. Buck is a geologist with 35 years of international exploration and production experience, principally in nickel, base metals and gold.  During his career he has been associated with the discovery and development of a number of mineral deposits in Australia and Brazil.
Mr. Buck worked with WMC Resources for 23 years in a variety of senior exploration and production roles, before joining Forrestania Gold as Exploration Manager in 1994. Forrestania Gold was subsequently acquired by LionOre Mining International with whom he was the Director of Exploration & Geology until mid-2006. He managed the highly successful exploration team that discovered several nickel deposits and the two million ounce Thunderbox gold deposit in Western Australia. Also, he played key senior management role in progressing these deposits through feasibility studies to production. Mr. Buck also played key senior advisory roles in indigenous relations in Australia, LionOre's African operations and new business development. During this period Mr. Buck was also a non-Executive Director with Gallery Resources (now IAMGOLD), and Breakaway Resources.
In 2006, Mr. Buck played a key role in managing the divestment of a large portion of LionOre's nickel exploration portfolio into Breakaway Resources. Following this transaction, Mr. Buck became the Managing Director and CEO of Breakaway. In 2009 Mr. Buck left Breakaway to pursue other professional and personal interests.  
Mr. Buck is currently Vice President of The Association of Mining and Exploration Companies (AMEC) and a Board Member of the Centre for Exploration Targeting established at the University of Western Australia and Curtin University.
Mr. Ashton has been involved in the exploration, consulting, financing and development of international resource projects since 1972. Most recently in his capacity as Managing Director and subsequently Chair of Red Back Mining Inc., Mr. Ashton was responsible for identifying the prospectivity and leading the team which discovered the multi million ounce Chirano gold deposit in Ghana. In 2004 Mr. Ashton re-domiciled Red Back from the ASX to the TSX with a new Canadian CEO, management and board. In 2005 Mr. Ashton resigned as Red Back Chair. In September, 2010 Red Back, as a +400,000 ounce per year gold producer, was the subject of a merger with Kinross Gold Corporation which valued that company at US$7.1B.
Mr. Ashton is a Non Executive Director of Brockman Resources Limited, an ASX listed iron ore explorer/developer with a market cap of ~$500 million.
With the appointment of Messrs. Buck and Ashton to the Board of PMI Gold, subject to and following the proposed Australian co-listing, Mr. Len Dennis will resign as a board member but will remain with the Company as a consultant.
On behalf of the Board,
"Douglas R. MacQuarrie"
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Eldora Gold Resources Canada News: Update on Mining - This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.  We Seek Safe Harbour.
Eldora Gold Resources Canada News: Update on Mining - About PMI Gold. Mining analysts have recently stated that West Africa will soon become the World's second largest gold producing region after China, with Ghana by far the largest gold producer in West Africa. PMI Gold controls four previous operating mines on 85 kilometres of Ghana's major gold belts all located near the centre of near 200 million ounces of historical gold production and current resources. Our Kubi Gold Project (NI43-101 mineral resource estimate of 604,000 ounces @3.66 g/t gold Indicated; 315,000 ounces @1.88 g/t gold Inferred, see SEDAR) adjoins the 60 million ounce AngloGold Ashanti Obuasi mine, the largest underground mine in West Africa with a 113 year, continuous mining history. At Obotan, where previous mining yielded 730,000 ounces of gold at a grade of 2.2 g/t, we recently announced a maiden +1 million ounce gold mineral resource estimate, and the commencement of an aggressive drilling campaign.
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Eldora Gold Resources Canada was founded by a group of experts in the mineral recovery and mining industry, whose focus is to provide accurate information, state of the art equipment and outstanding customer service. Eldora Gold has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings.

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Eldora Gold Resources Launches GravSep™; Process Set to Rehabilitate Tailings Sites

Eldora Gold proudly announces it has completed the assembly of its premiere pilot plant, dubbed GravSep™, to assist with the extensive process testing phase. With GravSep™ on site, Eldora will use a combination of physical separation processes to extract a concentrate from the first selected mill tailings site in Kirkland Lake, Canada. This concentrate will contain the majority of the recoverable metallic values in these former tailings, as well as the majority of the minerals responsible for the adverse environmental consequences of the original tailings disposal.
The proprietary process includes the preparation of a recirculating water pond, whereby final tailing separation from pulping water will provide recirculating water for pulping fresh feed, thus no continuous use of fresh water is required. After pulping the excavated feed and pumping the pulp through the physical separation process, Eldora anticipates ultimately discharging a tailing material in a form suitable for environmental rehabilitation of the site.
Eldora Gold anticipates, based on initial testing, that the auspicious debut (1/2 tonne per hour) of GravSep™ will result in not only the recovery of valued minerals, but also the rehabilitation of former tailings sites. Given the assembly of its portable equipment, Eldora intends to provide a dual benefit from the operation of GravSep™ units: by marketing the resultant concentrate into suitable channels and also providing a low-energy green solution to mining communities.
The GravSep™ is designed to be scalable, and is suited for small deposits less than 300,000 tonnes that cannot support permanent high capital cost equipment installations. The anticipated advantages for Eldora’s proprietary environmentally-friendly physical separation processing, which can be tailored to each specific deposit, now include potential for successful treatment and rehabilitation for many smaller size deposits using simple to maintain and operate equipment, as well as chemical-free processing. Pumping is the single major energy input, and it extracts and recovers valuable mineral concentrates which also have significant deleterious environmental effects when left in-situ.
From an environmental standpoint, tailings have always been an unwanted byproduct of mining. These tailings are left in piles and potentially leach environmentally-destructive materials into the surrounding soil and groundwater. Processing tailings thus also reduces the negative environmental impact of remaining minerals from the original mining process.