Archive | Gold and Silver

Chinese ownership of Nunavut’s resources stokes unease – by Derek Neary (Nunavut News – May 21, 2020)

The Chinese stake in Nunavut’s minerals is about to grow, if approvals are granted, and that’s raising some eyebrows.

China’s government controls many Chinese mining companies, including Shandong Gold Mining, which is in line to buy Toronto-based TMAC Resources for $149 million (U.S.).

“There’s a long-running sort of latent fear of selling strategic resources to an entity which is controlled entirely, or in part, by the government of a competitor,” said Adam Lajeunesse, co-author of the 2017 book China’s Arctic Ambitions and What They Mean for Canada. Continue Reading →

Kirkland Lake Camp Gold Production Hits Almost 42 Million Ounces to Date (December 2019)


The Abitibi is the largest Archean greenstone belt in the world. It’s roughly 150 km wide and stretches from just west of Timmins in Ontario for about 650 kms. to Chibougamau, Quebec. The Kirkland Lake camp stretches from Matchewan on the western side, through the town of Kirkland Lake to the Ontario/Quebec borber where the lengendary Kerr/Addison mine – the biggest historic gold producer in the camp – was found beside Larder Lake.

By the end of 2019, the Kirkland Lake camp had produced approximately 41, 550,000 ounces of gold from 36 mines historic mines. Only the Macassa Mine, owned by Kirkland Lake Gold and the Young Davidson Mine, owned by Alamos Gold Inc. are currently producing.

This makes the camp the second richest in Ontario after the Timmins region which has produced about 76 million ounces of gold by Dec/2018 and the third most productive in Canada, the national number two spot going to the Val d’Or/Rouyn-Noranda camp next door in the province of Quebec which has produced 72 million ounces of gold to date (Dec/2019). Continue Reading →

Gold-silver price ratio to keep falling as ‘undervalued’ silver outperforms – analysts – by Allen Sykora (Kitco News – May 21, 2020)

(Kitco News) – With silver seemingly “undervalued” and the reopening of economies expected to boost industrial demand, traders are looking for the gold-silver ratio to continue its decline as silver continues its recent outperformance.

The view is not unanimous, however, as some traders worry that renewed trade tensions between the U.S. and China could dent industrial demand for silver.

The gold-silver ratio measures how many ounces of silver it takes to buy an ounce of gold, with a rising number meaning an underperformance by silver compared to gold, and vice-versa. Back in March, the ratio rose as high as 127. Continue Reading →

Italians sell their gold as COVID-19 crunches economy – by Angelo Amante and Cristiano Corvino (Reuters U.K. – May 20, 2020)

ROME (Reuters) – Massimiliano Barrotta is seeing a surge in customers coming to sell their gold in his Rome store as Italians feel the economic pain of their government’s lockdown, imposed to curb one of the world’s worst COVID-19 epidemics.

The eight-week shutdown has been gradually eased since May 4, but it has left an economy on its knees, with businesses laden with debt and tens of thousands of new unemployed. The European Commission expects Italy’s economy to shrink by nearly 10% this year.

“We have seen an increase of about 50% in our purchases of gold from private customers this year, particularly in the last two weeks,” Barrotta, the manager of three “Compro Oro” (I buy gold) shops, told Reuters. Continue Reading →

Chinese company makes agreement to buy Nunavut gold mine – by John Last (CBC News North – May 20, 2020)

The company behind an ongoing gold project in Nunavut’s Kitikmeot region, is all set to be sold to a Chinese mining company. TMAC Resources owns the Hope Bay gold mine project, located 125 kilometres southwest of Cambridge Bay.

On May 8, the company announced a “definitive agreement” to sell to Shandong Gold Mining, a state-owned Chinese mining company, for around $230 million.

The deal values TMAC at $1.75 per share — a 52 per cent premium on the share’s average price, according to the announcement, and about 30 cents more per share than its listed price before the announcement. Continue Reading →

Val d’Or/Rouyn-Noranda Area Gold Production of 72 Million Ounces to Date (December 2019)


The Abitibi is the largest Archean greenstone belt in the world. It’s roughly 150 km wide and stretches from just west of Timmins in Ontario for about 650 kms. to Chibougamau, Quebec. The Val d’Or/Rouyn-Noranda camp is located in the province of Quebec and has produced 72 million ounces of gold to date (December 2019).

This makes the Val d’Or/Rouyn-Noranda camp the second richest gold mining district in Canada after the Timmins camp in northern Ontario which has produced just over 76 million ounces by the end of 2018.

Total gold endowment for the Val d’Or/Rouyn-Noranda area reached 113.4 million ounces at the end of 2019. If current inferred resources are included, gold endowment increases to 142.6 million ounces earning a spot as one of the most prolific gold mining belts in Canada. Continue Reading →

Rubicon Minerals seeks to bury a dubious past: Red Lake mine developer suggests name change at upcoming shareholders meeting – by Staff (Northern Ontario Business – May 19, 2020)

A Red Lake mine builder is pondering a name change. Shareholders of Rubicon Minerals will be asked to consider a new name for the company letterhead – Battle North Gold Corporation – at the June 22 annual general meeting.

The name of the proposed mine could also change from the Phoenix Gold Project to the Bateman Gold Project, the township where the development is located.

In a May 19 release, Rubicon said the name change provides a “fresh perspective” on the accomplishments made in over last three and a half years. Continue Reading →

Odey Says Governments May Make Private Gold Ownership Illegal – by Jack Farchy and Nishant Kumar (Bloomberg News – May 20, 2020)

Crispin Odey, one of Europe’s highest-profile hedge fund managers, said that governments may ban private gold ownership if they lose control of inflation in the wake of the coronavirus crisis.

“It is no surprise that people are buying gold. But the authorities may attempt at some point to de-monetise gold, making it illegal to own as a private individual,” Odey wrote in a letter to investors seen by Bloomberg. “They will only do this if they feel the need to create a stable unit of account for world trade.”

Odey, a long-standing critic of central bank policies who is known for his apocalyptic predictions, increased the gold position in his flagship Odey European Inc. fund during the course of April. Continue Reading →

Hemlo Explorers to put its stamp on the North Shore – by Staff (Northern Ontario Business – May 15, 2020)

Canadian Orebodies rebranding and gearing up for “aggressive field season” in 2020

A Toronto junior miner exploring for gold on the north shore of Lake Superior is rebranding to pay tribute to the vision of its late president.

Canadian Orebodies is changing its name to Hemlo Explorers, effective at the start of trading on the TSX Venture Exchange May 20.

“In changing our name to Hemlo Explorers Inc., we pay homage to the late Gordon McKinnon, the company’s founding president and CEO, and his father Don McKinnon, the company’s inaugural Chairman and co-discoverer of Hemlo,” said Fraser Laschinger, the company’s chief financial officer, in a May 15 statement. Continue Reading →

Premier and Centerra lock horns over Hardrock project in Ontario – by Kelsey Rolfe (Northern Miner – May 11, 2020)

Global mining news

Is the Hardrock gold project, 275 km northeast of Thunder Bay in northern Ontario, a shovel-ready gem or a promising project in need of further technical work?

Joint-venture partners Premier Gold Mines (TSX: PG; US-OTC: PIRGF) and Centerra Gold (TSX: CG) have painted two very different pictures of the development-stage project in a legal dispute that began late last year.

In a statement of claim filed against Premier’s subsidiary in Ontario’s Superior Court in late December and viewed by The Northern Miner, Centerra accuses the company of inflating Hardrock’s resource estimate to improve its own profile. Continue Reading →

Ottawa urged to scrutinize China’s mining activities in the Arctic in wake of TMAC takeover – by Robert Fife, Steven Chase and Niall McGee (Globe and Mail – May 18, 2020)

China’s growing control over strategic minerals could be a threat to Canada’s national security, a former head of CSIS says, and Ottawa should recognize this when it reviews a proposed takeover of an Arctic gold mine by a Chinese state-owned conglomerate.

Shandong Gold Mining Co. Ltd., one of the world’s largest gold producers, is paying $207.4-million to buy TMAC Resources Inc., the latest struggling Canadian junior miner to be swept up by a larger and better-capitalized company.

The deal will be among the first pored over by Ottawa after it announced in April that it would bring “enhanced scrutiny” to bear on acquisitions by foreign state-owned investors in a period where the COVID-19 pandemic has driven down the value of companies. China is the largest producer and consumer of gold in the world. Continue Reading →

‘Lack of new major gold deposits’: Discovery numbers dive in the last decade – S&P Global Market Intelligence – by Anna Golubova (Kitco News – May 14, 2020)

(Kitco News) New major gold discoveries have been on a decline this past decade, according to a report by S&P Global Market Intelligence.

During the past three years there were no major new gold discoveries, the report said. And during the past decade, there were only 25 new major discoveries.

Dwindling numbers are due to miners focusing on exploration around older mines, S&P Global said. “The lack of new discoveries is the result of exploration focusing on older discoveries and later-stage assets,” wrote S&P Global principal research analyst Kevin Murphy. Continue Reading →

Quebec gold miner looks to process ore in Timmins: Monarch Gold studying Glencore’s Met Site for possible toll milling job – by Staff (Northern Ontario Business – May 14, 2020)

A Montreal gold mine developer is eyeballing Glencore’s Metallurgical Site (Met Site) near Timmins to process its ore.

Monarch Gold is bringing its Wasamac property in western Quebec into production and had been looking at toll milling options on both sides of the border.

In a May 14, Monarch announced the signing of a memorandum of understanding (MOU) with Glencore Canada for the potential use of the Kidd concentrator to treat ore mined from the Wasamac deposit, 15 kilometres west of Rouyn-Noranda. Continue Reading →

Investors seeking ‘apocalypse insurance’ send gold ETFs skyrocketing – by Gillian Livingston (Globe and Mail – May 14, 2020)

Sparked by a flight to safety during the COVID-19 crisis, investors are turning to gold as a haven, which has boosted the price of the precious metal and led to a high demand for Canadian gold-equity and gold-bullion exchange-traded funds.

“People definitely use gold as a form of ‘apocalypse insurance,’” says Daniel Straus, head of ETF research and strategy with National Bank Financial Inc.

The demand has sent the price of gold above US$1,700 per ounce, an increase of about 11 per cent so far this year and about 32 per cent over the past year. Continue Reading →

China’s interest in western Nunavut gold mine is commercial: legal expert – by Jane George (Nunatsiaq News – May 13, 2020)

The recent news that TMAC Resources Inc., a Canadian junior mining company in western Nunavut, wants to sell its Hope Bay gold mine to a huge Chinese mining company, Shandong Gold, has alarmed some Nunavut residents.

That’s understandable, but Shandong Gold, better known as SD Gold, just wants to make money, says Michael Byers, a legal scholar who holds the Canada Research Chair in Global Politics and International Law at the University of British Columbia and is is the author of “Who owns the Arctic?”

While general concerns about the probable sale of the mine to the Chinese-controlled company are justified, the Hope Bay acquisition looks more like a good business deal than a challenge to Canadian sovereignty, Byers said. Continue Reading →