Lake Victoria Mining Company

From allafrica.com
 

Preparations are in top gear to start production of the mineral in southern and central parts of the country.

It is expected that the Mkuju River uranium project in Namtumbo district, Ruvuma Region, will start production this year.

Mantra Tanzania Limited is developing the project which is in advanced stage. Speaking in Namtumbo over the weekend, the Mantra Tanzania managing director, Mr Tony Devlin said that the development of the project, whose feasibility study was completed in March this year, is progressing well.

He said that on completion, the mine has the potential of producing over 1,650 tonnes of uranium oxide a year and will overtake the US production which produces 1,560 tonnes.

Under this rate, he said, Tanzania will be in the list of eight largest producers of uranium oxide in the world.

“The project is shaping up as a truly world-class investment and has the potential, in its first phase of its development it will position the country as the third largest producer of uranium in Africa,” he told when a team of stakeholders lead by Ruvuma regional commissioner, Ms Christine Ishengoma, visited the site.

Mr Devlin added that at this level of production, Tanzania will produce three times more uranium oxide than South Africa.

He mentioned some of the benefits of the production to the country as foreign direct investment (FDI) of $ 298 million (about Sh417 billion), creation of over 1,200 jobs during the construction of the mine and a further 600 permanent jobs when the mine start production.

Another benefit includes generation of approximately $ 220 million (about Sh308 billion) in foreign exchange.

“But this project will also position Tanzania on the world map as it will be among the top ten world producers of uranium in the world,” Mr Devlin said.

Speaking during the tour, Ms Ishengoma, said that the project would make a big impact in the region and the nation in general.

“This is a good project which we should be proud of because there are enormous social and economic benefits attached to it,” she said.

Ms Ishengoma was sure that the company would offer employment to hundreds of youth in the area and also support other economic and social activities.

“We have been told by the management of the company that they will source most of the supplies like food locally. This is encouraging because many people here, who happen to be farmers, will be able to make good business with the company,” she said.

She challenged residents in the region to use the opportunities to start up businesses that could generate money.

“But I caution them they should not think that whatever they produce will be purchased by the company. They have to think about quality and quantity. Also produce what the company wants to buy,” she cautioned.

The RC appealed to the central government to give the company all the necessary support to make the project a dream come true.

From Link : http://allafrica.com/stories/201009060402.html

Golden, Colorado, September 7, 2010 (LVCA:OTCBB) – Lake Victoria is pleased to provide an update on the Reverse Circulation (RC) drilling program at the Singida-Londoni gold project in Tanzania.

The 6,000 meter drilling program, awarded to Layne Drilling (Tanzania) Ltd, is aimed at testing five main target areas, namely Sambaru 1 to 5, within the northwest-southeast trending Singida Shear zone. These five target areas are primarily located along sites of  artisanal gold mining. The drilling will also test the significance of  the electrical prospecting resistive bodies identified by the Company’s previous induced polarization (IP) geophysical profiles (Press Release 15 May 2010); these resistive bodies underlie a large arsenic-in-soil-anomaly at Sambaru 4, and may suggest the presence of a near surface quartz zone.

Initial exploratory drilling at  the Sambaru 3 artisanal site is complete with boreholes aligned along 4 northeast-southwest fence lines which are spaced 80 meters apart. 

Thirteen boreholes, amounting to 877 meters, have been drilled at a direction of 40 degrees east of north to perpendicularly intersect the northwest-southwest trending and southwesterly dipping mineralized Singida shear structure. The boreholes have an inclination of -55 degrees or -60 degrees below the horizontal, and the borehole collars are spaced at intervals of 30 meters to 40 meters apart on each of the 4 fence lines. 

Geological study and gold panning of the RC drill samples has identified a number of   silicified zones and other zones with increased sulfide minerals.  These down hole zones represent a surface width of about 35 meters and lie within metavolcanic greenstone rocks.  The silicified and higher sulfide zones were intersected in the two central drill fences. The sulfide minerals which consist of varying proportions pyrite  and arsenopyrite are associated with magnetite and occur within borehole intercept lengths of between 4 meters and 25 meters.  Occasional flakes and specks of  possible visible gold were noted with the sulfide minerals.

Roger Newell president of Lake Victoria said: “The first visual results from the exploration drilling program undertaken at Sambaru 3 are extremely encouraging, and we look forward to seeing similar gold-bearing sulfide and silicified zones  in other target areas at Singida.”

At this time the drill has commenced work at the Sambaru 4 target where a program of  about 2,300 meters of exploratory drilling is planned on fence lines spaced 80 meters apart.  This drilling will test a potentially mineralized strike length of about 700 meters.

During September, drill samples, together with quality control samples, will be submitted to the SGS assay laboratory in Mwanza, Tanzania.  Results will be reported as they become available.

Drilling is expected to be complete by the end of September at which time plans call for the drill rig to move to the Kinyambwiga gold project to undertake approximately 2,000 meters of infill and exploratory drilling. Electrical geophysical profiling is currently underway at Kinyambwiga to identify the strike extension of mineralised quartz veins.  Results of the electrical profiling will assist in planning the new borehole locations.

About the Company

Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania is Africa’s third largest gold producer, behind South Africa and Ghana, but also has reserves of uranium, nickel and coal. Gold exports alone earned it $ 1.076 billion in 2009, up from $ 932.4 million the previous year. Lake Victoria holds eleven prospective gold projects and five uranium projects within its Tanzania property portfolio. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303-586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise

Golden, Colorado, August 31, 2010 (LVCA:OTCBB) – Lake Victoria Mining Company began Reverse Circulation (RC) drilling, Monday August 30^th at the Sambaru Target 3, one of five drill targets, located at its central Tanzania, Singida-Londoni Gold Project. Commencing on schedule, the first three holes totalling 217 meters of the planned 6000-meter drilling program are complete.

Seventy-six (76) RC boreholes will test the five confirmed targets of Sambaru, all of which are located within the Company’s five kilometre long Singida-Londoni Gold Project. A recently discovered geochemical extension to the Sambaru Target 4 (press release 9 August 2010) has been included in this drillig program.

Drill samples will be sent weekly to a registered laboratory in Tanzania and initial gold assays are expected to be available by late September. Roger Newell, President of Lake Victoria Mining Company expressed, “We are pleased to see the drilling program commence on time and look forward with anticipation to the assay results which will begin to reveal what the Company’s Singida-Londoni Gold Project contains as a gold resource.”

About the Company

Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania is Africa’s third largest gold producer, behind South Africa and Ghana, but also has reserves of uranium, nickel and coal. Gold exports alone earned it 1.076 billion in 2009, up from 932.4 million the previous year. Lake Victoria holds eleven prospective gold projects and five uranium projects within its Tanzania property portfolio. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303-586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Golden, Colorado, August 9th, 2010 (LVCA:OTCBB) – Results from the recent infill soil-sampling program have increased the Sambaru Target 4 potential strike length to over 900 meters at the Company’s Singida-Londoni Gold Project, central Tanzania.

Subsequent to the regional soil sampling program across the Singida-Londoni project in July (press release 14 July 2010), a follow-up and more detailed soil sampling program on 100 meter spaced north-south lines and at sample intervals of 50 meters, was recently completed across the eastern side of the Sambaru 4 Target, one of the 5 targets delineated from the original sampling and mapping survey. A total of 78 samples were collected, including 3 quality control blank samples, and submitted to SGS Laboratory in Mwanza for gold and arsenic determinations. Arsenic is a pathfinder element for gold where gold has low values at the ground surface. 

Results returned consistent values and coherent gold and arsenic anomalies, averaging 94 parts-per-billion and 174 parts-per-million respectively, across a 250-meter wide zone on the northwest-southeast trending Singida Shear zone.  The infill soil-sampling program has increased the potential strike length of Sambaru Target 4 from about 500 meters to over 900 meters.  

The 5,000-meter reverse circulation drilling program scheduled to commence at the end of August, will test the five confirmed targets within the five kilometre long Singida-Londoni Gold Project as well as the recent extension to the geochemical anomaly at SambaruTarget 4.

About the Company

Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana. Lake Victoria holds eleven prospective gold projects and five uranium projects within its Tanzania property portfolio. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Over the next six months, investors in Canaco Resources (TSX.V:CAN) can expect to be bombarded with drill results from 4 different projects the company has underway in what will likely be the defining year of Canaco’s existence.

Given the low price of the stock lately, it wouldn’t take much to send it in the right direction: adding $0.20 a share would make it a double.

Three of the drill programs will be conducted on the company’s large Handeni Project in eastern Tanzania, where gold discoveries have occurred on a district scale and defined an extent of mineralization with a strike length of over 100 km.

On the Magambazi prospect, a total of 12 diamond drill holes totaling over 2,000 metres will be completed during the phase 1 drilling at Magambazi and three holes totaling 700 metres at Magambazi North. These drill holes will test the down-dip extensions of known bedrock mineralization that is currently the site of intense surface artisanal mining operations and strong surface geochemical anomalism.

The target gold mineralization at Magambazi is defined by artisanal workings and surface rock chip sampling over 350 m strike and is open to the northwest under significant transported cover. At Magambazi North, the target gold mineralization is defined by a 650 m long soil geochemical anomaly (greater than 40 parts per billion Au) with peak soil values of 0.68 gram per tonne Au.

In the northern part of the Handeni gold trend, at Semwaliko North, a reverse circulation drill program is planned to test bedrock artisanal workings that extend over a strike length of 500 m and over widths up to 40 m. The best rock chip channel samples previously reported from the project were 10 m at 2.54 g/t Au and two m at 14.3 g/t Au.

The Magembe diamond project, adjacent to De Beers’ world class Williamson diamond mine will also be drill tested during the second quarter of 2008.

The Williamson mine has been producing diamonds from the Mwadui kimberlite, discovered by Canadian geologist Dr John Williamson, since1925, and has produced over 19 million carats of diamonds.

Tanzania has been a significant diamond producer for several decades, with the bulk of production coming from the Williamson Mine at Mwadui where commercial production began in 1925. Over 300 kimberlites are known in Tanzania of which, 20% are diamondiferous. Some 600 dipolar magnetic anomalies with similar geophysical characteristics to known kimberlite pipes have been recorded during recent geophysical surveys. Also of relevance are the psuedo-kimberlites or para-kimberlites along the young craters where diamonds have been discovered.

Canaco’s Tanzanian exploration efforts are being guided in large part by the work of world renowned geologist, Dr. David Groves.

He is Canaco’s director of Project Development, was the past Professor of Economic Geology and Director of University Western Australia’s Centre for Global Metallogeny, and is now Emeritus Professor attached to the Centre for Exploration Targeting. Dr. Groves’ major expertise lies in economic geology, the formation of mineral deposits, particularly gold, and conceptual targeting of mineral deposits.

According to Dr. Groves,

“Here we’ve got the chance to control a very large ground holding in which we’ve got some quite exciting prospects….all of the things were seeing are exposed on the surface, and we’ve got a lot of ground that’s under cover, and our experience elsewhere like Geita has shown the biggest deposit there was under cover. What was showing on the Geita Hill there was just the tip of the iceberg of something much bigger, and what we see something like Magambaze, the potential is there that this the tip of the iceberg of some system which is much bigger than it., and because we are effectively first movers into this new terrain, we’ve got a ground position that could take advantage of that…If the deposit isn’t exactly like Magambaze, we’ve got at least 6 km of strike and mineralization, we think from the geophysical work it could be 20 km…we can control that we’ve got the chance that a discovery is going to be made.

The Geita gold mine, owned by Ashanti Goldfields and Anglogold, was officially commissioned on August 10 2000, and is expected to yield a minimum of 14 million ounces of gold.

Tanzania is home to some of the largest mines in production today, including Barrick’s Bulyanhulu gold mine, currently with 11.2 million ounces of proven and probable gold reserves. In 2006, the mine produced 330,000 ounces of gold at total cash costs of $339 per ounce.

Mining contributes 2.3 percent of Tanzania’s GDP presently, a figure projected to grow to 10 percent by 2025.

Besides the company’s principle focus in Tanzania, Canaco is participating in a 50/50 joint venture with Candente Resources (TSX.V:DNT) on the 67 sq. km El Oro property , which hosts one of the most significant historic gold-silver producers in Mexico, with past production of over 20 million ounces of gold equivalent over a 400-year period.

Canaco is led by Andrew Lee Smith who has over 20 years of experience in successfully exploring, developing and operating North American base and precious metal mining and gem projects.

Golden, Colorado, July 28, 2010 (LVCA:OTCBB) On July 27^th, the Company entered a contract with Layne Drilling of Mwanza. Drilling is scheduled to begin on August 30^th, at the Company’s Singida gold project, central Tanzania. In the latter part of September, it is planned that the drill rig will be moved to the Kinyambwiga gold project in the northern part of Tanzania to commence a second phase drilling program. An initial minimum of 8,000 meters of reverse circulation (RC) drilling is planned with the goal of defining subsurface gold mineralization and achieving a defined gold resource at both projects.

Roger Newell, president of Lake Victoria said: “It is very pleasing that Lake Victoria’s exploration programs have successfully defined drill targets at two important gold projects and this drilling program represents a significant milestone in the Company’s development. We look forward to providing the results as they become available.”

About the Company

Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana. Lake Victoria Mining Company, Inc. currently holds both gold and uranium exploration licenses in Tanzania. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Golden, Colorado, July 27, 2010 (LVCA:OTCBB) Concurrent with drill planning at our Singida gold project, Lake Victoria is also planning a second phase drill program at its Kinyambwiga gold project in northern Tanzania. Additional trenching and geophysical programs are already underway at Kinyambwiga, in preparation for the scheduled drilling program. 

Roger Newell, the company’s president stated: “Our goal is to have one or more gold resources inside the company this year and[AAU1]  Clive King, our new technical leader, and our exploration team are working to make this a reality. Clive has begun an intense exploration schedule of the company’s gold projects, like that at Kinyambwiga, focused on ferreting out the potentials in short order and defining the gold resources.”

Previous trenching at Kinyambwiga outlined the existence of at least five, shear hosted, narrow gold bearing quartz veins. These veins, which trend east-northeast and west-southwest, have been partly exposed by artisanal mining along a strike length of about 300 meters. 

The current phase of trenching involves re-opening of a number of the previously in-filled trenches as well as excavating some new trenches to cover the gaps on the planned north-south drill fences, to be spaced 80 meters apart. The objective of the trenching and drilling exercise is to determine the gold grade distribution in both hanging and footwall rocks adjacent to the veins.  This information will allow the company to define an initial gold resource estimate at Kinyambwiga.  A total of 630 meters of trenching is underway; 250 meters will be new trenches.

A geophysical gradient induced polarization (IP) survey, along 200 meter spaced north-south traverses is also in progress over the entire prospecting licence of approximately 30 square kilometers. To date, the eastern half of the licence, covering an area of 15 square kilometers, has been completed. Results have shown that both the area currently under trenching and an extensive artisanal mine site, approximately one kilometer to the north, lie adjacent to resistivity highs. Follow-up detailed Schlumberger IP profiling across both prospects are planned in the immediate future once the gradient IP survey is complete.  Results from the trenching, IP survey and detailed mapping will be used to plan a reverse circulation (RC) drilling program scheduled to begin September.

About the Company

Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana. Lake Victoria Mining Company, Inc. currently holds both gold and uranium exploration licenses in Tanzania. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc.

Dr. Roger A. Newell

Phone: 303 -586-1390

Email: info@lvcamining.com

Disclaimer

This news release may contain forward looking statements, relating to the Company’s operations or the environment in which it operates, which are based on Lake Victoria Mining Company, Inc.’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or beyond Lake Victoria Mining Company, Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place undue reliance on such forward-looking statements. Lake Victoria Mining Company, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Golden, CO (PRWEB) July 14, 2010

(LVCA: OTCBB) At least five gold targets within the northwest-southeast trending Singida shear zone, covering a strike length of 4.4 kilometers, have been identified at the Company’s Singida gold project, Tanzania. This is the result of a detailed compilation of all exploration data to date, including the most recent soil sampling and mapping programs. There are 76 reverse circulation (RC) drill holes currently planned totalling nearly 5,000 meters to test these targets. Excavation at drill site locations has commenced and will be followed up shortly with road construction to prepare for drilling that is planned for the latter part of August.

During June, a soil sampling survey was completed across the Singida-Londoni license area in which 483 samples, including 24 quality control blank samples, were collected and submitted to SGS Laboratory, Mwanza for gold and arsenic determination by Aqua Regia. Samples were collected on 400m spaced north-south grid lines at an interval of 50m and at a depth of 30cm. Additional detailed mapping of the geology and location of the artisanal working was also carried out.

The soil sample results, besides indicating areas of known artisanal mining, have formed broad, gold-in-soil anomalies. These gold anomalies are occurring over the areas from which previous electrically induced polarization (IP) geophysical profiling has identified a number of underground resistive bodies, believed to represent gold-bearing quartz veins beneath the surface, as reported in the Company’s Press Release of 17th May 2010. The five gold targets, referred to as Sambaru 1 to 5 have surface strike lengths varying between 200 to 600 meters. In addition to assaying for gold, all of the soil samples were tested for arsenic. Arsenic in soil samples can often be a “pathfinder” element for gold when gold itself is not measurably present at surface. In addition to identifying the five targets, the compiled assay results have defined a large arsenic anomaly that is located within the central to north-western part of the license area and encompasses the Sambaru 4 target, decreasing in intensity towards Sambaru 5 in the northwest corner of the license. Noteworthy is that four IP profile lines, undertaken across the recently identified arsenic anomaly, have indicated at least 8 sub-surface, resistive bodies, thought to be gold-bearing quartz veins, across a surface width of 350 meters.

Mapping of the location of the artisanal shafts within these target areas suggest that mining was undertaken on a number of narrow sub-outcropping gold veins across a surface width of up to 50 meters. However, IP geophysical profiling suggests that these veins may extend further to the northeast beneath the surface cover.

Other Projects

Concurrently an IP gradient survey and a trenching programme have been undertaken at the Company’s Kinyambwiga gold project, on the eastern side of Lake Victoria. Exploration programmes, including soil geochemistry and ground magnetic surveys, are scheduled to begin on a number of the Company’s other gold licenses within the Lake Victoria gold belt to advance our projects systematically.

About the Company Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania produced 1.75 million troy ounces of gold during 2007 and is the 3rd largest gold producer in Africa behind South Africa and Ghana. Lake Victoria holds eleven prospective gold projects and five uranium projects within its Tanzania property portfolio. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com or by contacting:

Lake Victoria Mining Company, Inc. Dr. Roger A. Newell Phone: 303-586-1390 Email: info@lvcamining.com

By DAN BURROWS

Lots of gold bugs burrow into the precious metal because it’s thought to be the ultimate hedge against inflation. Given that the U.S. national debt just passed the $13 trillion mark (or about 90% of GDP), it’s not too hard to imagine a dark day of reckoning for the purchasing power of the almighty dollar not too far down the road.

But it turns out that gold isn’t really much of an inflation hedge at all, which explains how a big-time deflationist like David Rosenberg, Gluskin Sheff’s bearish chief economist and strategist, can be so bullish on the yellow metal.

“The widespread consensus that gold is an effective inflation hedge is not on the mark,” Rosie told clients Thursday. “Our statistical analysis shows there to be a fairly loose link even if gold is a store of value. We also know that in the deflationary 1930s, the Sterling price of gold doubled.”

In Rosenberg’s view, gold is about as easy a call as it gets. The ductile metal has been in a secular bull market for more than a decade (see chart). “And if inflation is really the be all that ends all for the gold price, then keep in mind that gold has rallied five-fold since 1999, and yet inflation is the same today as it was then, and the core rate has been cut in half,” Rosie says. “Go figure.”

So forget about inflation. Rosie says gold could easily double from its current price of about $1,200 an ounce because it’s really a hedge against financial instability. The world is awash with more than $200 trillion in household, corporate and government IOUs. Deflation makes debt more expensive to service — and harder to refinance. No wonder gold fever is heating up. Rosie says: The integrity of the global financial system is in question.

“This is why gold has so much allure today,” he writes. “It is a reflection of investor concern over the monetary stability, and [Federal Reserve Chairman] Ben Bernanke and other central bankers only have to step on the printing presses whereas gold miners have to drill over two miles into the ground.”

But Rosie’s bottom line on gold comes down to this: The yellow metal makes up a mere 0.05% share of global household net worth, he notes, and so even small incremental allocations into bullion or gold-type investments can exert a dramatic impact on price.

“What makes gold different is that, unlike paper money backed by the good word of the government, it has withstood the test of time for thousands of years,” Rosenberg told clients recently (but it’s worth quoting again). “It is not the liability of any government. It has an inelastic supply curve. How many times is gold mentioned in the Old Testament? Try 391 times. How many times is paper currency mentioned from Noah, to Abraham, to Moses? None. Nada. Efes. Gornisht. Nihil. Rien. Nichts. Niente.”