Gold's new price level $1,200+ TNR.v, GG, KRC, FDN.v, DEC.v, MB.v

Gold has now solidified its new position above what was previously lofty - $1,200 an ounce.

With further bailout actions for Greece - the global monetary supply now increases further. The pace of price increases is become apparent even to those not educated in the ways of capital markets.

Gold Prices To Rally As Currency Volatility To Continue

Chicago -- (Kitco News) --Gold prices might have fallen in reaction to the European Union’s bailout package for its ailing southern-member states, but the pull back appears to be nothing but a bump in the road to higher prices.

Spot and futures prices fell in early dealings Monday once the 750 billion euro aid package was announced, with futures prices falling nearly 2% at one point before curbing some losses. Meanwhile, the euro and global equities markets – stymied by worries that the initial debt-relief package for Greece wasn’t enough and that the debt problems bubbled under in other countries such as Portugal, Spain, Ireland and Italy would finally surface – rallied sharply.

The rally in riskier assets suggests, at least initially, that financial markets believe Europe really means it when it says going to stand the troubled southern euro-zone. The deal cobbles together funds from euro-zone countries, the International Monetary Fund, and the European Central Bank. Other global central banks, such as the U.S. Federal Reserve, are offering assistance.

What makes this aid package different than other EU and IMF offerings is the size, market watchers said. “This is a much bigger plan,” said Frank Lesh, futures analyst at FuturePath Trading.

With recent developments in Gold - more investors are looking back at Gold. Let's revisit some of our favorite projects on the TSX.

1. TNR Gold Corp (TNR:TSXV)

It is, TNR Gold, after all!
Despite popular belief of TNR's focus on copper - it's focus was on gold just a few years ago with its large project in Alaska called Shotgun.

The Shotgun property is located 175 kilometres south of Donlin Creek within the Kuskokwim Gold Belt in Southwestern Alaska, an area emerging as a world-class gold district hosting more than 40 million ounces of aggregated gold resources. The Shotgun property includes a number of prospects, including Shotgun Ridge and nearby Winchester. Donlin is an intrusion-associated system and represents one of the largest undeveloped gold deposits in the world. (See NovaGold.net.) The Company believes that there are several key similarities between prospects in the Shotgun area and that of the Donlin Creek gold deposit as well as other intrusion-associated deposits. Previous work at Shotgun Ridge by joint-venture partner NovaGold Resources Inc. has a estimated historical resource of 980,000 ounces grading 0.93 gram per tonne (g/t) at a cut-off of 0.5 g/t (National Instrument 43-101non-compliant resources).The geology and style of mineralization at Shotgun is very similar to the Dome area of the Donlin deposit.

What's amazing about this is a million ounces anywhere else would equal an operating mine and a mine life of easily 10+ years. The most drill program was back in 2006, where the company struck incredible intervals:
If these numbers were today - TNR would be trading much higher, you can be assured!

Drilling during 2006 at Shotgun Ridge intercepted 210.5 metres grading 1.29 g/t Au. Results from this drill hole were key in enabling TNR staff to identify two steeply dipping feeder zones and structurally reinterpret the Shotgun Ridge zone.

Good comparable is Aurizon Mines (ARZ:TSX) which has a profitable mine in Ontario producing 100,000 ouncs of Gold and using this revenue stream to bring a 2nd mine online - their reserve is at a million ounces (100k production x 10 years!)

Difference? Market cap of Aurizon is at $800+ million.
A pounds in the ground estimation of 1,000,000 ouncs of Gold, using $1,000/ounce gold is a $1,000,000,000 (billion), still a rough $200 million discount off Aurizon's market cap.

Post-spin-off - TNR Gold will still continue to benefit from share valuations from this. Thus we believe the ILC spin-off will bring a nice summer bonus for shareholders.

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Decade Resources has hit similarly interesting numbers - and the stock skyrocketed earlier this year - jumping from $0.08 struggling to close financing - to oversubscribing after results like 7.3 g/t over 28.35 metres. See attached price chart with overlaid news flow from the last half year.

Arguably - gold results now would be very timely. We've also noticed another junior group, Foundation Resources, do significantly well with high grade results - jumping nearly 5-600% within the last few months.

Given the level of inflationary forces worldwide, as interest rates start to climb up, raw materials and hard assets are still anticipated to outpace the growth rate on fiat currency.

Disclosure: Mining101 writers are typically long and bullish on commodities. Please do your own due dilligence before investing.