Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 5 www.resourceworld.com 9 price support could come from growing US auto sales and China's effort to improve its air quality by reducing particulate emis- sions from vehicles. Current Chinese platinum and palla- dium loadings per vehicle are about 15% of US levels, while diesel standards in China are of lower quality compared with the US, Rule noted. "Yet the Chinese have said they will bring their vehicle emission standards to American standards over five years. If that happens, then it will help drive platinum and palladium consump- tion to a level beyond the industry's ability to produce at the current price point," he said. "However, I'm not saying this will definitely occur. In a society like China ,what they say and what they do can often be two different things." In considering PGM producers, Rule again stressed that his thoughts were speculative in nature. "And I have specu- lated on two names: Platinum Group Metals [PTM-TSX; PLG-NYSE], which is a Canadian company developing a new mine in South Africa, [and] Ivanhoe Mines [IVN-TSX], which has made an amazing platinum discovery, also in South Africa." out of the aSheS As we enter 2015, the hope must be that the US recovery is not only experienced by Wall Street but by Main Street too, helping buoy commodities uptake through a recov- ered real estate market and on the purchase of new autos, electronics and white goods. In turn, this could create a virtuous cycle, helping to boost developing world manu- facturing output and acting as a fillip for further growth in these regions. In turn, that could be good news for precious met- als producers as many developing-world societies are more disposed to making physical purchases, particularly of gold, as both a store of wealth and as a mark of prestige. In China, growth is likely to remain within the 7.0-7.5% bracket for the fore- seeable future, which still represents a staggering level of metals and minerals uptake. Beijing also seeks to spur further urbanization, representing extra infra- structure build and consumerism. And while the Chinese growth story continues, it is worth remembering that India's has yet to really start. In the meantime, the contrarian inves- tor should continue doing what he or she does best: buying low in order to sell high in the next upswing, which will eventu- ally arrive, even for the embattled junior precious metals sector. "I don't know another sector on the planet that has the cyclicality junior precious metals stocks do," Rule said. "If you're psychologically prepared to ride the rollercoaster, the single most predictable financial event I know is that a bear market is the author of a bull market." n A Rock Fell on the Moon dad and the Great yukon silver ore heist It's not often one gets to read about a crime mystery written by the daughter of the perpetrator; yet in the revealing and heart- wrenching book, A Rock Fell on the Moon, penned by Alicia Priest, she tells the story of how her father planned, executed and was convicted of stealing several hundred dollars worth of high-grade silver ore. While still a young girl, Alicia and her older sister, Vona, had a happy life living on Canada's frontier; however, her father, Gerry, was not so happy. He found his job boring and wanted to do better financially. Her dad was chief assayer for United Keno Hill Mines (UKHM) in the tiny hamlet of Elsa in the central Yukon Territory where the company mined extremely high-grade silver. As it turned out, a substantial amount of very high-grade silver ore was left behind in an unused part of the underground mine. Gerry Priest and two accomplices figured out a way to access the ore, transport it to the Port of Skagway and eventually to the smelter at Helena, Montana where UKHM had their legitimate ore smelted. As might be expected, things began to fall apart when the company, the RCMP and the FBI began investigations that led to two trials, during the second of which Gerry was convicted and sentenced to prison. This, of course, tore the family apart and was a debacle from which the family never really recovered. Compiled from court documents, news- papers and personal interviews, Alicia Priest writes a highly detailed account that makes for fascinating reading as the mystery unfolds. No doubt the book will become an important document in the annals of Canadian mining lore. Alicia Priest has written for the Globe and Mail, The Vancouver Sun and other publications. One has to admire Ms. Priest for her bravery in divulging to the pub- lic the details of a highly embarrassing situation; most people would be extremely reluctant to do so. If you have any interest in mining mysteries, this is a great read. – Ellsworth Dickson n BOOk R E v i E w

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