The 1,200-acre South Mountain property in Owyhee County, Idaho, was first operated in the late 1800’s. It was heavily mined underground during World War II and for some years after. Thunder Mountain says between 1940 and 1954, the mine shipped over 53,000 tons of ore… containing nearly 16 million pounds of zinc; over 2.5 . . . → Read More: News Nuggets: Thunder Mountain, New Jersey Mining, Midas Gold, Western Pacific]]> * * * Thunder Mountain Gold of Boise (TSX-V:THM/OTCQB:THMG) said yesterday it has signed a letter of intent with a Boise private equity group to advance its flagship South Mountain Mine toward production. The group can earn up to 75% interest by investing 18 million dollars.

The 1,200-acre South Mountain property in Owyhee County, Idaho, was first operated in the late 1800’s. It was heavily mined underground during World War II and for some years after. Thunder Mountain says between 1940 and 1954, the mine shipped over 53,000 tons of ore… containing nearly 16 million pounds of zinc; over 2.5 million pounds of lead; nearly 1.5 million pounds of copper; over 500,000 ounces silver; and over 3,000 ounces of gold. A mill on the property processed another 20,000 tons of ore. 

In 2009, the company identified a new gold target at the mine, and in 2010 completed a NI 43-101.

THMG has been as high as 40 cents in the past year, and is trading now at about 14 cents. (www.thundermountaingold.com)

* * * New Jersey Mining of Kellogg (OTCBB:NJMC) last week reported more drill results from the Golden Chest Mine, its JV with Marathon Gold (MOZ:TSX) of Toronto, with one 5-meter intercept returning 12.4 g/t. New Jersey said two drills are operating on the property now and after snow melt they will move to the high-grade Katie-Dora area to target the extension of the open pit resource to the north.

New Jersey has been working at the mine on a small scale for several years and has taken about 2,000 ounces of gold. In late 2010, it inked the JV deal with Marathon, which allows Marathon to spend $ 4 million to earn half interest in the mine and New Jersey to operate the project.

The JV produced its first 43-101 report last month. NJMC is trading lately at about a quarter, MOZ at about CDN .85 (www.newjerseymining.com)

History Note: The Golden Chest is near Murray, in the old time gold rush part of the District. That area over the years has yielded something like 300,000 ounces of gold. The mine is thought to be the District’s largest historical lode producer, delivering about 65,000 ounces of historical gold.

We wrote a short piece about the gold rush last year. To read “Gold and the Coeur d’Alene Stampede”, go to this page and scroll about half way down: www.pennaluna.com/2011/11.

* * * Midas Gold of Vancouver (TSX:MAX) reported last week it has nearly completed a 17,000-meter winter drilling program at the Golden Meadows Project in the Stibnite – Yellow Pine Mining District of central Idaho. Midas says it plans on “significant additional drilling” for the rest of the year, cutting back to two drill rigs during spring break up and then increasing to seven or more for summer and fall drilling efforts.

The outfit spent nearly $ 24 million at Golden Meadows last year on drilling, exploration and related work.

Midas, which has its exploration office in the Spokane Valley, is consolidating ownership of the 90-year old district and has defined a multi-million ounce gold mineral resource. MAX has a 52-week high-low of CDN$ 3.00 and 4.90 and has fallen lately to about 3.20. (www.midasgoldcorp.com)

* * * Western Pacific Resources of Vancouver (TSXV:WRP) on Monday released results for the first three holes of the 2012 drilling season at its Mineral Gulch project in southern Cassia County, Idaho, not far from the Utah line. One hole returned 1.37 grams of gold per tonne and included a section showing 1.88.

The Mineral Gulch property includes the historic Black Pine Mining District and adjacent exploration areas. Reportedly the district produced over 500,000 ounces of gold between the start of mining in around 1915 and the time Pegasus Mining stopped worked there in the mid-1990’s. WRP staked the area in 2009 before going public. WRP is quoted lately at about CDN.27. (www.westernpacificresources.com) 

TLR says it expects the deal to close this quarter, subject to regulatory approval and closing . . . → Read More: News Nuggets: Timberline Resources, Mines Management, and Sunshine Mine fire]]> Pennaluna Prospector ™ — Coeur d’Alene, Idaho – April 11, 2012

* * * Timberline Resources Corporation of Coeur d'Alene (AMEX:TLR/TSX-V:TBR.V) said yesterday it plans to become 100% owner of the Butte Highlands Gold Project in Montana, inking a letter of intent to buy out JV partner Highland Mining LLC for stock and cash worth about $7 million plus a net smelter return production royalty.  Highland Mining will also cancel a loan covering more than $24 million of development work so far completed at the mine.

TLR says it expects the deal to close this quarter, subject to regulatory approval and closing conditions, and plans to have water discharge and hard rock operating permits later this year.  TLR stock has a 52-week high-low of .47 and $1.07… and is trading now near the bottom of the range at about 52 cents.  (http://www.timberline-resources.com)

* * * Mines Management of Spokane (AMEX:MGN/TSX:MGT) reported yesterday it signed a deal with Vancouver-based Estrella Gold Corporation (TSX-V:EST.V) that would let MGN earn up to 75% of the La Estrella gold and silver project in central Peru.  MGN will make option payments and spend US$ 5 million on exploration.

Mines Management controls the massive Montanore advanced stage silver-copper exploration project over in Lincoln County, Montana.  The stock has ranged widely in the past year between $3.14 and  $1.35.  It's trading now at about $1.50. (http://www.minesmanagement.com)

* * * Sunshine Silver Mines Corporation said nearly two weeks ago that the fire that broke out on the 3100 level of the Sunshine Mine on February 14 was likely out and carbon monoxide levels had dropped sharply.  A company spokeswoman said once the firm is certain the fire is extinguished, it will investigate the cause and make plans to restart operations disrupted by the blaze.  There has been no word since.  (At least two dozen workers were laid off as a result of the incident, in which no one was hurt.)

Sunshine Silver Mines bought the 'Shine in 2010 and filed papers with the SEC for a $250 million IPO last summer. The effect of the fire and work disruption, if any, on the IPO is presently unknown to us.

* * * Coming Attractions: We're putting the finishing touches on a Pennaluna Prospector Special Report that will cover in some detail how a new government attack on microcap fraud and money laundering is hitting innocent investors as well as crooks.  This SEC offensive is creating big changes in the way deposits of small cap stocks are handled by brokers and clearing firms.  If you are a subscriber to the Prospector, we'll notify you as soon as we finish and post it. 

The firm is working to pinpoint the site of smoldering in underground timber infrastructure so it can put the flames out. MSHA is on approving and monitoring the activity.

The company says 44 people continue . . . → Read More: News Nuggets: Sunshine Mine Still Smolders]]> Pennaluna Prospector ™ — Coeur d’Alene, Idaho – March 2, 2012

*** Sunshine Mine still smolders, workers cut

Sunshine Silver Mines Corporation said today it laid off 24 workers because the underground fire that broke out on the 3100 level February 14 continues to smolder, producing smoke that limits mine access only to fire teams. It was believed the blaze had been extinguished last week.

The firm is working to pinpoint the site of smoldering in underground timber infrastructure so it can put the flames out. MSHA is on approving and monitoring the activity.

The company says 44 people continue to work above ground.

Even way out here in the sticks, we can hear the cadence of marching feet in the Middle East – since the proposed banning of Iranian banks from the SWIFT international money system would be the economic equivalent of bombing major ports.

Perhaps global leaders will guide everyone back from the brink.

On the other hand, we ask you once again, "Got gold? " And now we add, "Got oil? "

While you contemplate your answer, . . . → Read More: News Nuggets: Sunshine Mine fire, Shoshone Deal, US Silver]]> Pennaluna Prospector ™ — Coeur d’Alene, Idaho – February 23, 2012

Ahh, nothing like the possibility of (another) war to liven up the blood.

Even way out here in the sticks, we can hear the cadence of marching feet in the Middle East – since the proposed banning of Iranian banks from the SWIFT international money system would be the economic equivalent of bombing major ports.

Perhaps global leaders will guide everyone back from the brink.

On the other hand, we ask you once again, "Got gold? " And now we add, "Got oil? "

While you contemplate your answer, here’s what’s going on out this way.

1. Fire hits Sunshine Mine
2. Shoshone inks big deal
3. US Silver to buy back shares
4. Stillwater beats Street forecasts
5. Ohio joins Pennaluna Nation

*** Fire hits Sunshine Mine

An underground fire that broke out on the 3100 level of the Sunshine Mine last week caused a dozen miners to be safely evacuated. It took nearly a week to fully extinguish the blaze by closing fire doors and using oxygen blocking foam.

In 1972, the Sunshine was the site of a tragic fire that killed 91 miners. It’s now owned by a subsidiary of Sunshine Silver Mines Corporation, a private firm affiliated with billionaire investor Thomas Kaplan. The company counts Marc Faber and Robert Quartermain (of Silver Standard) among board members and is reported to have around 60 employees.

Sunshine Silver Mines filed papers with the SEC for a $250 million IPO last summer. The effect of the fire, if any, on the IPO is unknown to us at this point.

This fire follows the recent closing of Hecla’s Lucky Friday Mine for year-long repairs required by MSHA after two fatal accidents last year. While fortunately no one was hurt, the incident is not good news for the safety reputation of Valley mining.

*** Shoshone Silver/Gold of Coeur d’Alene (OTCQB:SHSH) changed management last fall and the new guys have hit the ground running.

Last month, Shoshone closed its deal to buy the Silver Strand Mine from Kellogg-based New Jersey Mining (OTCBB:NJMC).

Last week, the outfit inked a new letter of intent that could give it half interest in the gold claims, leases, open pit operation, leach pads and flotation mill controlled by Desert Hawk Gold Corporation in Tooele County, Utah.

Shoshone will receive 50% ownership in return for $10 million in equity… a $100K nonrefundable deposit… and a $2 million loan to start up the Kiewit gold heap leach operation, which is included in the deal.

SHSH is trading lately at about 15 cents. (www.shoshonesilvermining.com)

*** U.S. Silver Corporation of Toronto (TSX:USA/OTCQX:USSIF) last week received TSX approval to buy back up to 5% of its outstanding shares over the next year. It recently reversed the shares one for five and is also listing on the AMEX.

USA said three weeks ago it expects this year’s production at its Galena Mine near Wallace to be 2.4 million ounces of silver… along with 6.5 million pounds of lead… and 1.2 million pounds of copper. It also said it aims to have the nearby Coeur Mine reopened and producing by year end, and plans about 100,000 feet of exploration drilling in 2012, a 30% increase from last year.

USA controls around 14,000 acres in the District — including mines like the Galena, Coeur, Caladay and Dayrock. Together they have produced over 200 million ounces of silver during the past sixty years. USA is trading now at about CDN$ 2.60. (www.us-silver.com/)

*** Stillwater Mining (NYSE:SWC) on Tuesday beat Wall Street expectations by posting better than expected fourth quarter results — thanks to higher platinum and palladium prices and improved production at its mine over near Nye, Montana. Stillwater is the only major produce of platinum and palladium in the U.S. and employed many Valley miners during the long bear silver market.

Total annual production at the mine rose seven percent. The company’s quarterly revenue rose 80% and quarterly profits climbed to $24.7 million, up from $16.5 million a year ago.

Shares have a 52-week high-low of $7.31 and $25.90. They’re trading now at about $14.90.

*** Ohio joins Pennaluna Nation. After 86 years, Pennaluna is now registered to do business in Ohio and can open new accounts for residents. (That makes 44 states and counting.) Welcome, Buckeyes!

Thanks for reading. We’ll see you next time.

"Patriotism is the last refuge of a scoundrel."
Samuel Johnson (1709-1784)

Founded in 1926, Pennaluna trades stocks on all U.S. and Canadian exchanges, Nasdaq, OTCBB and Pink Sheets. Phone 800-535-5329 or see www.pennaluna.com . For online trading visit www.penntrade.com. For a free subscription to this newsletter, click here.

Disclosure: Pennaluna & Company is a FINRA broker-dealer and market maker. As such, it frequently buys or sells stocks for its own account, or in order to make a market. Consequently, Pennaluna may at any time buy or sell or make a market in any stock mentioned herein, and associated persons may also buy, sell or hold such stock at any time. The firm and/or associated persons may also engage in private placements or other investment banking activities with any company mentioned. Some securities mentioned may be small-cap stocks and subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information; some may be foreign securities and subject in addition to currency, political and other risks. Mention of a security does not imply an endorsement. Comments and opinions are solely those of the writer. This publication is not investment advice; is not a research report and provides insufficient information upon which to base investment decisions; is intended solely to provide readers with information; is not a solicitation for the purchase or sale of any security; and is not intended to be nor should it be used as tax advice, which should be sought from a professional familiar with your individual financial situation. Mention of a company or stock does not in any manner constitute a recommendation, unless specifically so stated. Information is believed accurate but accuracy is not guaranteed. Any websites mentioned other than www.pennaluna.com and www.penntrade.com are not under the control of the firm and it can take no responsibility for information found on such sites.

The buyer reportedly plans to reopen the historic old producer that was discovered by Noah Kellogg in 1885 and in operation for over a century.

Price was not disclosed nor was additional information given about the purchaser.We have heard rumors, but cannot yet verify them. So far we can confirm only that . . . → Read More: News Nuggets: Bunker Hill Option Signed]]> Pennaluna Prospector ™ — Coeur d’Alene, Idaho – February 8, 2012

Bunker Hill Option Signed

* * * BREAKING NEWS – The AP reported this morning that Galena Mineral Resources Group has signed an option to buy all assets of the long-closed Bunker Hill Mine in Kellogg, Idaho.

The buyer reportedly plans to reopen the historic old producer that was discovered by Noah Kellogg in 1885 and in operation for over a century.

Price was not disclosed nor was additional information given about the purchaser.We have heard rumors, but cannot yet verify them. So far we can confirm only that the buyer is a Nevada LLC with seven members that filed papers seven months ago.

We discussed the Bunker in one of last year’s Silver Valley Updates.You can read about it here.

But — fortunately — out here in our neck of the woods we still have folks who actually accomplish things.  And thus we have the following mining stock news to pass along to you … together with our best wishes for an enjoyable and meaningful Thanksgiving holiday.

. . . → Read More: News Nuggets: Timberline Resources, Revett Minerals, Hecla Mining]]> Pennaluna Prospector ™ — Coeur d’Alene, Idaho – November 22, 2011

Inside the Beltway, the nation’s “leaders” continue to elevate the practice of dither, dally and blather to a high art form. 

But — fortunately — out here in our neck of the woods we still have folks who actually accomplish things.  And thus we have the following mining stock news to pass along to you … together with our best wishes for an enjoyable and meaningful Thanksgiving holiday.

* * *  Timberline Resources of Coeur d’Alene (AMEX:TLR/TSX:TBR.V) last week closed the sale of its Timberline Drilling subsidiary, to a group of private investors that included the contract driller’s senior management.  Timberline valued the sale at $14.5 million. 

TLR says it has now paid off all debt and will focus strictly on gold exploration and development as it advances toward production at its Butte Highlands (Montana) and South Eureka (Nevada) gold properties. TLR, with a 52-week low of .50 and high of $1.32, is trading lately around .65.

* * *  Revett Minerals of Spokane (AMEX:RVM/TSX:RVM) got a boost last week when a federal appeals court gave a favorable ruling in an environmental lawsuit over the Rock Creek Project in northeast Montana.  Rock Creek is Revett’s jumbo development-stage property that is estimated to hold 300 million ounces of silver and 2.5 billion pounds of copper. You can read the court’s decision here: http://www.ca9.uscourts.gov/datastore/opinions/2011/11/16/10-35596.pdf

RVM has a 52-week price range of $3.22 to $6.10.  It jumped over 20% on the good news and has now settled back to about $4.85. 

* * *  Hecla Mining of Coeur d’Alene (NYSE: HL) said Monday that suspended operations at its Lucky Friday Mine should not affect its full-year silver production estimate.  The stock nonetheless has slid below $6.00 to around $5.75.

The mine is closed for inspection following a mishap last week that caused the operation’s second fatality of the year.  Brandon Gray of Mullan died after an accident that happened as he worked on the new $200 million No. 4 Shaft.  He was employed by Cementation Inc., the construction company on the job.  A second worker was also hurt.  Last spring, Larry “Pete” Marek, a long time miner from Kingston, died in a roof collapse on the 6,150-foot level of the mine. 

[Ed. Note: For a glimpse of the human toll exacted over the years to produce Idaho silver, see the book “From Hell To Heaven -- Death-Related Mining Accidents in North Idaho” by Gene Hyde.  Over 2,000 people are memorialized there.  It is published by the Museum of North Idaho: www.museumni.org.]  

* * *  Goldrich Mining Company of Spokane (OTCBB:GRMC) said Monday it has closed a private placement for $500,000 with Regent Pacific Mining Group, a small diversified mining house that trades on the Hong Kong Stock Exchange.  Goldrich was known for half a century by the less genteel moniker of Little Squaw Gold, but changed its name three years ago. 

GRMC owns virtually all of Alaska’s historic Chandalar Mining District — about 27 square miles of ground 190 miles north of Fairbanks.  Gold was first discovered there in 1905 and in the past both high-grade gold veins and alluvial deposits were mined on the property.  A test mine produced about 1,500 ounces of gold last year.  GRMC has a 52-week range of .17 to .41, and is trading lately under .20.   

* * *  Thomas Kaplan — the natural resource wizard who controls North Idaho’s Sunshine Mine and Sunshine Silver Mine Corporation — last week was named Chairman of Vancouver-based NovaGold (AMEX:NG/TSX:NG).  Kaplan’s Electrum Group indirectly controls over 20% of NG stock, which is trading lately at about US$10.

Sunshine Silver Mine Corporation filed papers last summer for a $250 million IPO.  [Ed. Note: We can’t confirm this for certain, but were pretty sure Dr. Kaplan is the only Silver Valley mining guy who’s earned three degrees from Oxford.]   

    “Gratitude is not only the greatest of virtues, but the parent of all others.”

        Cicero

Founded in 1926, Pennaluna trades stocks on all U.S. and Canadian exchanges, Nasdaq, OTCBB and Pink Sheets.  Phone 800-535-5329 or see www.pennaluna.com .  For online trading visit www.penntrade.com.  For a free subscription to this newsletter, click here.

Disclosure: Pennaluna & Company is a FINRA broker-dealer and market maker.  As such, it frequently buys or sells stocks for its own account, or in order to make a market.  Consequently, Pennaluna may at any time buy or sell or make a market in any stock mentioned herein, and associated persons may also buy, sell or hold such stock at any time.  The firm and/or associated persons may also engage in private placements or other investment banking activities with any company mentioned.  Some securities mentioned may be small-cap stocks and subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information; some may be foreign securities and subject in addition to currency, political and other risks. Mention of a security does not imply an endorsement. Comments and opinions are solely those of the writer.  This publication is not investment advice; is not a research report and provides insufficient information upon which to base investment decisions; is intended solely to provide readers with information; is not a solicitation for the purchase or sale of any security; and is not intended to be nor should it be used as tax advice, which should be sought from a professional familiar with your individual financial situation.  Mention of a company or stock does not in any manner constitute a recommendation, unless specifically so stated.  Information is believed accurate but accuracy is not guaranteed.  Any websites mentioned other than www.pennaluna.com and www.penntrade.com are not under the control of the firm and it can take no responsibility for information found on such sites.