LEX CORP NEWS LETTER

A few years back -2005- I owned Jinshan Gold Mines-JIN with an average of .80cents.  I did sell my position around $2.90 in late 2007.  Last week the company came out with some news that showed up on my radar.  I have been watching Jinshan Gold Mines since .45cents and last weeks news release and some DD's convinced me to buy the stock again.  2010 they will be producing over 100'000oz per year.

This is a picture I took a few years back at the PDAC.  I am the guy on the right.  Finally, Lex shows his true face.

Here is the most recent Corp.Presentation: http://www.jinshanmines.com/i/pdf/CorporatePresentation.pdf

Jinshan Achieves Record Gold Production and Commences Initial Start-up Crushing Operations at its CSH Gold Mine in China
9/10/2009 8:31:10 AM

For the month of August 2009, Jinshan poured 8,525 ounces of gold, which is a record high since Jinshan started production in July 2007 and is within 5% of design expectations of 9,000 ounces per month. Gold production has been steadily increasing this year from approximately 6,900 ounces in April due to better control on mining to improve the ore grade and ore size placed on the leach pad, as well as increasing the area under leach and leach solution pumping capacity.

Jinshan has also completed installation of the crusher facility on site and has been operating the crusher on a testing and start-up basis since mid-August, 2009. Currently, approximately 5,000 tonnes of ore per day is being crushed to 80% passing 9 millimetres and throughput is gradually ramping up as testing and adjustment of the various circuits is completed. Jinshan expects the crushing plant throughput to reach design capacity of 30,000 tonnes per day early in the fourth quarter. This is expected to result in a substantive increase in gold production from current levels.

A total of approximately 43,200 ounces of gold were produced in the first eight months of 2009, compared to approximately 35,500 ounces for the same period in 2008.

     As I write this post Gold is up $2.50 trading at $999.60.  I believe it's not if but when gold breaks $1000.  I believe this will happen either overnight.  If I am wrong then we should break $1000 sometime this week.  I have been buying up some gold producers and gold exploration stocks last week.  I mentioned a few on my stockhouse.com blog.  I took a position in NewGold-NGD at $3.75cents, Exeter Resources -XRC, Midway Gold -MDW, Hawthorne Gold Corp-HGC, Etruscan Resources-EET, and Oceana Gold -OGC.  All of these were mention on my stockhouse.com blog and have moved up nicely.  I believe they still have alot more upside. 

Here is an interesting chart:

We’re heading into September next week, so it’s a good time to revisit the historic seasonality of gold and gold stocks.

Over the past four decades, September has been the best time for gold in terms of its month-over-month price appreciation. You can see this on the chart below – in a typical year, the price of gold in September rises 2.5 percent above its August price.

The gold price has risen in 16 of the 20 Septembers since 1989, by far the best success ratio of any month of the year.

On my September Updates you will see coverage in the coming days on Exeter Resources-XRC, Midway Gold-MDW, Hawthorne Gold Corp-HGC and Etruscan Resources-EET.  I covered Oceana Gold back in my January Updates.

This is a gold producer trading around .24cents.  I took a position after doing some research on the stock. I believe it's undervalued and has alot of upside in a strong gold market.  Their Youga Gold Deposit in Burkina Faso should producer aprox. 80'000oz of gold for 6yrs.  I believe the resource at their Youga Gold Deposit will grow as they explore the property to increase the resource.  I highly recommend checking this one out. Remember, it's a penny stock, but it's attractive with the multiple projects they have.

http://www.etruscan.com/s/Home.asp

Corp. Presentation:http://www.etruscan.com/i/pdf/EtruscanPowerpoint-March09.pdf

Etruscan's Plan for Growth

Etruscan's plan for growth includes increasing gold production with the first gold production from the Youga gold mine in Burkina Faso having commenced in February 2008. Exploration is continuing at Youga to develop satellite deposits to extend the mine life of the project. Etruscan has completed a feasibility study on its Agbaou property in Côte d'Ivoire. Exploration continues on the Finkolo property in Mali to expand the identified resources. Etruscan is continuing its exploration activities on earlier stage projects in Burkina Faso, Mali, Côte d'Ivoire , Ghana and Namibia.

View of grinding mill to ROM pad

Here is a video of the Ball Mill at work: http://www.etruscan.com/i/media/MVI_0001.avi

I am highly recommending taking a look at Exeter Resources-XRC. I have been looking at this stock for some time and finally took a position. Their Caspiche Project has 8.7mil.oz of gold and 2.09bil.lbs of copper.  A new 43-101 resource should be out any day now.  I believe this resource will be increased to -10mil-15mil.oz/gold. They also have their high grade gold project Cerro Moro, which keeps coming up with great drill results.  I expect Exeter Resources to be taken out by Barrick or Kinross. Their Caspiche Project is very close to both of their mines.  Remember folks do you DD's.

 http://www.exeterresource.com/index.php

Exeter Resources On You Tube: http://www.youtube.com/user/ExeterResourceCorp

Exeter Resources On Twitter: http://twitter.com/ExeterResource

As of September 4, 2009 the company has C$30 Million, a cash reserve considered sufficient to fund two years of expenditure at current levels of activity, including drilling on the Company’s Caspiche and Cerro Moro projects. Exeter plans to retain sufficient cash reserves so that the longer term viability of the Company is ensured.

Exeter’s Caspiche Project in Chile (option to own 100% from Anglo American Chile Limitada) is a gold-copper porphyry system, a type of deposit common to many of the world's largest open pit gold-copper mines. It is located 15 kilometres (8 miles) south of Kinross Gold's Refugio mine (+6 million ounce gold resource), and 10 kilometres (6 miles) north of the very large Cerro Casale gold-copper deposit (24 million ounce gold resource), jointly owned by Kinross Gold and Barrick Gold.

In March 2009 Exeter announced an interim National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate for Caspiche, for drilling to the end of 2008. The inferred resource is 8.73 million ounces gold and 2.09 billion pounds of copper, or 12.65 million gold equivalent ounces (refer to March 24, 2009 News Release). The additional 3.92 million ounces of gold equivalent is calculated using a copper conversion price of $1.50 per pound and a gold price of $800 per ounce. The resource estimate leaves the deposit open for expansion to the west, south and to depth.

Drilling ceased in May with the onset of winter, and a second mineral resource estimate using all these drilling data is scheduled for September 2009. The Company plans to recommence drilling in October 2009 and to continue that program through to May 2010. The budget through to September 2010 provides for $12 million in expenditures and includes drilling to further expand the resource, in-fill drilling of the highest grade area to “indicated resource” status, infrastructure studies and metallurgical testwork. The Company has budgeted C$13 million to conduct this program from July 2009 through to September 2010.

The Company’s ultimate intention with regard to the Caspiche asset is to negotiate a transaction with a major mining company, which will enable us to realize all or part of the value of the Caspiche discovery for the benefit of shareholders.

The Cerro Moro Gold-Silver Project in Santa Cruz Province, Argentina is 100% owned by Exeter, with the Santa Cruz Government Mining Company, Fomicruz S.E. entitled to a 5% interest, on completion of mine permitting.

In July, 2009, Exeter announced an initial inferred mineral resource estimate for drilling to the end of 2008. The inferred resource is 646,000 ounces gold equivalent at a grade of 18 grams per tonne ("g/t") gold equivalent (refer to the July 8, 2009 Press Release). The Company's focus will be to advance drilling on the Escondida vein, which contains 518,000 ounces gold equivalent at a grade of 34 g/t gold equivalent. Engineering, environmental and infrastructure studies will also be advanced ahead of a scoping study planned for 2010. Exeter is now conducting a detailed drilling program on Escondida in order to upgrade the portions of the inferred resource that might be scheduled for early mining to the "indicated resource" category. This program entails some 18,000 metres of drilling and is expected to be completed by year end.

Drilling also commenced in July to test for possible high grade extensions of the Escondida zone onto the adjacent Fomicruz joint venture lands where the company may earn an 80% interest by incurring certain exploration expenditures. This zone will be tested over a strike length of two kilometres (1.25 miles), a similar distance to that tested to date on Escondida. The Company has budgeted C$8 million from July 2009 through September 2010 for the drilling focused Cerro Moro program.

We believe Cerro Moro has the potential to be developed as a low capital cost mining operation and the possibility of increasing the resource base is excellent.

From Q4-2009 onwards, Cerro Moro activities will likely focus on mine development studies. The gold deposit should benefit from being very high grade by industry standards, and being near the port of Puerto Deseado where substantial infrastructure is available. It is also within an established gold-silver district, with mines owned by AngloGold Ashanti, Pan American Silver, Coeur d’Alene Mines and Minera Andes/Hochschild.