Gold and Silver – Page 269 – Republic of Mining

Extent of Peruvian Amazon lost to illegal goldmines mapped for first time – by Dan Collyns (The Guardian – October 29, 2013)

October 29, 2013

http://www.theguardian.com/uk

Researchers have recorded a 400% increase in the area of Madre de Dios taken over by small mines from 1999 to 2012

Lima – The area affected by illegal gold mining in Peru’s south-eastern Amazon region increased by 400% from 1999 to 2012, according to researchers using state-of-the-art mapping technology.

Using airborne mapping and high-satellite monitoring, researchers led by the Carnegie Institution for Science also showed that the rate of forest loss in Madre de Dios has tripled since the 2008 global economic crisis, when the international price of gold began to rise to new highs.

Until this study, thousands of small, clandestine mines that have boomed since the economic crisis went unmonitored, according to the research team, which was led by Carnegie’s Greg Asner and worked with Peru’s environment ministry.

Crucial technological differences, such as the use of the Carnegie Landsat Analysis System-lite (CLASlite), meant the team was able to map both large and small mining operations.

The Pretium gold resource controversy in context and a letter from the frontline – by Lawrence Williams (Mineweb.com – October 25, 2013)

October 25, 2013

http://www.mineweb.com/

The disagreement between two respected engineering companies over the Pretium resource in BC, Canada has generated much controversy but should not detract from a still exciting project.

LONDON (MINEWEB) – The Canadian resource sector has been abuzz with people taking sides on the Pretium controversy over the Brucejack resource estimation and whether Strathcona, or Snowden, both highly respected engineering companies, are correct in their different handling of samples and results.

Personally, as a mining engineer by background, I suspect with a deposit of this type with a very large number of ultra-high grade gold intersections in its Valley of the Kings section, within a much lower grade more disseminated orebody, that neither will accurately represent ultimate mining grade terms and, if, and when, a mine is developed at Brucejack, selective mining methods could enable the orebody to be mined to a far higher grade than the bulk sampling would suggest, should economics suggest that is the most profitable long term route for shareholders.

Do I have an interest in Pretium? From a technical point of view perhaps yes – it looks to be one of the most exciting recent gold discoveries in Canada.

Agnico delivers record gold production in third quarter – by Peter Koven (National Post – October 24, 2013)

October 24, 2013

The National Post is Canada’s second largest national paper.

TORONTO – Agnico Eagle Mines Ltd. kicked off the third-quarter gold earnings season with a strong result that sets a positive tone for the rest of the sector.

The Toronto-based miner’s adjusted earnings came in at US$60.5-million, or US35¢ a share, which was well above the highest analyst estimates. Agnico also boosted its full-year production guidance and announced deeper cost cuts.

The stock jumped more than 15% in early trading on Thursday. “We had some pretty solid production across the board,” chief executive Sean Boyd said in an interview, adding the company has said for months that the second half of 2013 would be stronger than the first half.

The results show gold companies can thrive in a weaker gold price environment, a major concern for investors over the past several months. Agnico’s gold production in the quarter reached a record 315,828 ounces, driven by a strong result from the Meadowbank mine in Nunavut, which opened in 2010. That mine performed poorly in its first couple of years of operation, but has turned a corner.

Sprott open letter challenges WGC/GFMS gold demand figures – by Lawrence Williams (Mineweb.com – October 23, 2013)

October 24, 2013

http://www.mineweb.com/

Eric Sprott, challenges the most generally accepted data on gold supply/demand and feels that analyst reliance on this severely impacts their predictions and thus the gold price itself.

LONDON (MINEWEB) – Strong precious metals advocate, Eric Sprott, thinks there is something haywire in the gold supply/demand statistics published regularly by the World Gold Council and relying on data compiled for it by Thomson Reuters GFMS. In Sprott’s view, and this is accompanied by his own research figures, the GFMS data is flawed – yet it tends to be the industry standard taken as the definitive position by gold follower around the globe.

In this context, Sprott has written an ‘Open Letter’ to the World Gold Council, putting forward his company’s own take on the real position in the gold supply/demand equation and draws the conclusion that global gold demand exceeds available new supply by a substantial margin. To read the ‘Open Letter’ in full click here.

Indeed Sprott’s analysis of the position echoes, and expands on, some of the conclusions drawn by Mineweb in some recent articles – not least in terms of the gold flows to Asian and Middle Eastern nations in general, and to China and India in particular.

Pretium shares sink as geologists declare ‘no valid gold’ at B.C. project – by Peter Koven (National Post – October 23, 2013)

October 23, 2013

The National Post is Canada’s second largest national paper.

The controversy around Pretium Resources Inc. is escalating after the miner revealed that a highly-respected team of geologists declared its entire resource to be invalid.

The judgment came from Strathcona Mineral Services Ltd., the Toronto firm that famously declared Bre-X to be a scam. Pretium shares plunged 28% to $3.45 on Tuesday as investors absorbed the news.

There is plenty of gold in Pretium’s “Valley of the Kings” discovery in British Columbia, but disagreement persists over how it should be measured. Strathcona, which was hired by Pretium to oversee a bulk sample program for the deposit, resigned two weeks ago because it disagreed with the company’s chosen methodology and found fault with its resource.

Strathcona President Graham Farquharson criticized Pretium management on Tuesday, saying his firm informed Pretium about its concerns several times and they were not immediately disclosed.

NEWS RELEASE: More communities connect with gold miner-First Nations power partnership

October 23, 2013

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Five more First Nations communities in Northwestern Ontario have connected with Wataynikaneyap Power to strengthen its transmission initiative plans. Earlier this year, Ontario Mining Association member Goldcorp and 13 First Nations started this company to develop a transmission line. The goal is to connect remote communities to the provincial power grid and provide more reliable power to communities and companies already connected.

With Deer Lake, Keewaywin, McDowell Lake, North Spirit Lake and Poplar Hill First Nations coming on board, there are now 18 First Nations working with Goldcorp on this project. “Our communities require a reliable power source to be able to participate in economic development opportunities taking place in the region,” said Wataynikaneyap Power Executive Director Peter Campbell. “We look forward to benefiting from this very important infrastructure project.”

“Wataynikaneyap Power is an example of how industry and First Nations can work together on projects that are good for the economy and the environment while benefitting communities in the region for years to come,” said Gil Lawson, Mine Manager for Goldcorp’s Musselwhite Operation, when the power company was launched. Since then, Mr. Lawson has been appointed Vice President Operational Support Canada and U.S. for Goldcorp.

Goldcorp shows council pit concept – by Benjamin Aubé (Timmins Daily Press – October 21, 2013)

October 23, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Goldcorp has finally received a draft of its air and noise control permit from the Ministry of the Environment regarding the Hollinger open-pit mining project. The news was among the updates provided by Goldcorp/Porcupine Gold Mines general manager Marc Lauzier and superintendent of surface operations Paul Miller at city council on Monday.

“We’re hopeful this will move on fairly quickly,” said Miller, relating to the company receiving news on its MOE permit. “We’ll be stripping overburdens of old construction and getting into the mining activity.”

Also presented to council was an initial rendering of what the Hollinger open pit could look like while mining activity takes place there over a projected 10-year lifespan. Designs show three individual pits, which will be the focus of mining activity on the site.

Miller said the design might be modified as the project moves on. Lauzier added the shape of the pit could change “depending on the economics” and the price of gold.

Canadian miners should learn from Gabriel’s missteps – by Eric Reguly (Globe and Mail – October 19, 2013)

October 21, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

ROME — After almost two decades of false starts and a running battle with some of the savviest environmental groups on the planet, it’s make-or-break time for Europe’s biggest and most politically sensitive gold project. In early November, the Romanian government will, like a Roman emperor at a gladiator fight, give the thumbs up or thumbs down to Gabriel Resources Ltd.’s $1.4-billion (U.S.) Rosia Montana mine in Dracula’s legendary homeland, Transylvania.

The vote could go either way, though the share price says the odds are against the Toronto-listed company. Gabriel’s stock collapsed early last month, falling from $1.47 (Canadian) to as low as 41 cents, when Romanian Prime Minister Victor Ponta said parliament would likely reject a draft mining law that would allow the project to go ahead. (It’s now at 93 cents.) Gabriel’s response was to threaten the government with a $4-billion (U.S.) lawsuit if the law were to die. That threat still stands. Rosia Montana’s future lies in the hands of lawmakers and lawyers, not engineers and financiers.

Gabriel says a lot about what’s right and what’s wrong with Canadian gold miners, which dominate the industry. About half of the top names are Canadian, among them Barrick, Goldcorp, Yamana, Kinross and Eldorado. They are big risk takers, superb at engineering and financing and occasionally capable of impressive value creation.

Tanzania: Barrick Gold – Compensation to Villagers Brings Joy -by Mugini Jacob (All Africa.com – October 18, 2013)

October 18, 2013

http://allafrica.com/

IT has been all smiles with the locals in the neighbourhood of North Mara Gold Mine since last week after word went around that African Barrick Gold(ABG) has released compensation amounting to 8.12 bn/-.

The villagers have been anxiously waiting for the compensation after a special task force formed by the government completed evaluation on the areas needed by the mine to expand its operations.

Paulo Ludovick is one of those who will share the spoils after accepting to sell part of his land to the ABG, the leading Tanzanian gold producer with several gold mines located in the lake zone region.

“People will pocket 8bn/-. It has never happened in a single episode, and it is just a small piece of land”, Mr Ludovick told the’ Daily News’ About 382 men and women are on the list of the ABG’s latest compensation initiative to communities living near Nyamongo area in Tarime District of Mara Region.

The compensation has been dubbed phases 33 and 26. Compensation of many phases have been done in the past and payment of other several phases are being prepared, according to a credible report from the Tarime District Council made available to the ‘Daily News’ this week.

Analysis: Lurching gold prices mystify traders, undermine confidence – by Frank Tang (Reuters Canada – October 18, 2013)

October 18, 2013

http://ca.reuters.com/

NEW YORK (Reuters) – In the early hours of the New York morning on Thursday, when scarcely a few hundred lots of gold futures are usually traded, a wave of buy orders worth over $2.3 billion surged into the market.

Prices soared 3 percent in just 10 minutes, setting the tone for the next 12 hours of trade – and puzzling many traders and investors who have been rattled by a series of similarly abrupt, and largely unexplained, trade surges over the past two weeks.

While sudden swings in the price of gold are nothing new, the usual causes – a shock in economic data or a “fat finger” erroneous trade – don’t seem to fit. While the U.S. dollar had also tumbled on Thursday, bullion’s move was far more extreme.

Some are pointing at spin offs from today’s predominantly 24-hour electronic trading, with a far smaller number of market makers on the trading floor to match orders and provide liquidity.

The half-dozen mammoth orders whipsawed prices and disrupted trade in the CME Group’s (CME.O: Quote) Comex futures, a market already edgy about bullion’s fading safe-haven appeal and its lackluster performance during the U.S. budget impasse.

Preventing and managing social conflict in Peru (Beyond Borders – July 2, 2013)

October 17, 2013

Beyond Borders is published by Barrick Gold Corporation: http://barrickbeyondborders.com/

Peru has one of the world’s fastest-growing economies, driven largely by its mineral wealth and the expansion of the mining industry. Today, most major global mining companies have operations in the country, including Barrick, BHP-Billiton, Newmont, Freeport McMoran, Glencore Xstrata and others.

Increased mining sector investment and revenues have provided significant benefits to Peru’s national economy. The sector’s contribution to total government revenue averaged 14 percent between 2000 and 2010. In 2010 alone, Peru mined $18 billion worth of minerals, accounting for 12 percent of the country’s gross domestic product. The mining boom has contributed to a marked reduction in Peru’s poverty rate to about 28 percent in 2011 from 42 percent five years earlier, according to The World Bank.

Barrick has been operating in Peru for the past 15 years and has two mines in northern Peru — Pierina and Lagunas Norte. The contribution of these operations to economic prosperity is significant. In 2012, Barrick paid nearly $400 million in taxes and royalties in Peru, and purchased approximately $340 million in goods and services in the country. Ninety-nine percent of the 1,200 Barrick employees who work at Pierina and Lagunas Norte are Peruvian nationals.

Special Report: The Darfur conflict’s deadly gold rush – by By Ulf Laessing (Reuters India – October 8, 2013)

October 9, 2013

http://in.reuters.com/

KHARTOUM – (Reuters) – With its scrubland, unpaved roads and mud brick huts, the Jebel Amer area in Darfur, western Sudan, can look like a poor and desolate place. Under the ground, though, lies something sought by people everywhere: gold.

In the past year or so the precious metal has begun to alter the nature of the decade-old conflict in Darfur, transforming it from an ethnic and political fight to one that, at least in part, is over precious metal.

Fighting between rival tribes over the Jebel Amer gold mine that stretches for some 10 km (six miles) beneath the sandy hills of North Darfur has killed more than 800 people and displaced some 150,000 others since January. Arab tribes, once heavily armed by the government to suppress insurgents, have turned their guns on each other to get their hands on the mines. Rebel groups that oppose the government also want the metal.

The gold mine death toll is more than double the number of all people killed by fighting between the army, rebels and rival tribes in Darfur in 2012, according to U.N. Secretary General Ban Ki-moon’s quarterly reports to the Security Council.

Where have all the mining towns gone? – by Ashleigh Gaul (Up Here Magazine: Life in Canada’s Far North – September 2013)

October 8, 2013

http://uphere.ca/

They’re toxic and deserted wastelands – but to those who once lived there, the remains of mining communities are worth holding onto.

In July Susan Mather packed her family into a motor home. She drove north from Calgary, four kilometres past Yellowknife, to a skeletal timber headframe so rickety that cranes can’t set demolition workers on top to assess just how rickety it is. At its base, a yellow-and black-painted board reads, “Giant Mines Yellowknife, Ltd. Last injury: May 1999.”

That was six months before the last gold brick was poured in Yellowknife, and three years after Mather left her first home. These days, when she wants to visit, she books in advance. A mine manager escorts the family through a line of buildings in various states of disrepair.

They’re given hardhats, safety glasses, reflective vests and a rundown of safety precautions, then asked to log in. When Susan fills out a single line on behalf of the whole family, her son Karl jokes, “This isn’t a guest book, mom, it’s a log. This is a worksite.”

Estimated to cost between $500 million and $1 billion, Giant Mine and the townsite it built to house its workers might be the single largest industrial cleanup in Canadian history.

Gold price is ‘bound to go through the roof’ – by Brendan Ryan (Business Day – October 7, 2013)

October 7, 2013

http://www.bdlive.co.za/ [South Africa]

GOLD bulls have had it rough this year but many would have found solace in the Precious Metals Round Table web-based conference call and presentation held recently by Sprott Asset Management.

About 6,300 participants logged on to listen to speakers like investment “guru” Marc Faber — publisher of the Gloom, Boom and Doom Report — and Toronto-based Sprott chief investment strategist John Embry, a regular keynote speaker at gold conferences.

The bottom line? Hang on to your physical gold and gold shares because the point is fast approaching when the gold price is going to explode.

That prediction is, of course, completely at odds with what has actually happened in the gold market this year, where the price has plunged from about $1,700oz to $1,200oz, before recovering marginally to just above $1,300oz.

Predictions from institutions such as Natixis are far more restrained. The recently published Natixis Metals Review predicts gold dropping back to lows around $1,170oz over the coming six months to a year and averaging $1,200oz for next year.