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NEWS RELEASE: New gold discoveries decline by 45%

Date: 25th March 2013

Release time: Immediate

The declining rate of new gold discoveries and grades across the global market during the last decade has accelerated over the last 4 years.

Data and analysis from IntierraRMG reveals that the 2 year period from 2003 to 2004 was the best in the study range, with over 400 million ounces of new gold discovered. This includes inferred, indicated and measured ounces with an average grade of 1.65 grams per tonne. In contrast, 2005 and 2006 had the lowest number, with just over 150 million new gold ounces discovered – albeit with a similar grade.

Discoveries then increased significantly during 2007 to 2008 with greater than 390 million ounces. The average grade also increased significantly to 2.65 grams per tonne; the highest in the 10 year period.

Over the next two years, slightly more than 250 million ounces were discovered with a declining grade of 1.25 grams per tonne. This deterioration continued through 2011 and 2012 as the amount of new gold ounces discovered dipped below 225 million ounces with a reduced grade of 1.17 grams per tonne.

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Arsenic release fears: federal government seeks emergency cleanup of toxic [Yellowknife] mine – by Bob Weber (Canadian Press/The Tyee – March 17, 2013)

http://thetyee.ca/

YELLOWKNIFE – Federal officials are scrambling to clean up a crumbling, abandoned northern gold mine that is in imminent danger of releasing massive amounts of arsenic, asbestos and other toxins.

“It’s pretty scary stuff,” said Mark Palmer, senior adviser on Aboriginal Affairs and Northern Development’s Giant Mine Project, which describes a proposed cleanup of collapsing, poison-filled buildings and caverns on the shore of Great Slave Lake as an emergency response.

“We are worried they are going to fall down and if that happens there will be a release.” The Giant Mine just outside Yellowknife was an economic mainstay for 50 years. But its gold was locked within crystals of arsenopyrite, and after the mine finally closed in 2004, about 237,000 tonnes of highly toxic, water-soluble arsenic trioxide remained on the site.

Most of the arsenic was blown back underground, where huge dustpiles of it sit in 15 subterranean chambers, some big enough to swallow an 11-storey building. About 3,600 cubic metres of arsenic and arsenic-contaminated material remain in surface structures — uncontained and, in many cases, exposed to the elements.

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Detained Barrick Gold shipment [Dominican Republic] seen as shot across the bow- by Pav Jordan (Globe and Mail – March 20, 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.

Barrick Gold Corp. managed to get its shipment of gold out of the Dominican Republic this week, but that may not spell the end of travails in the Caribbean country that is demanding a greater share of profits from its newest gold mine.

In the latest incarnation of resource nationalism in the hemisphere, Barrick is being asked by the government to renegotiate how it shares profits from the $3.7-billion Pueblo Viejo gold mine with the impoverished state.

Barrick argues that its current contract is legally binding, and will see 50 per cent of net cash flow – or some $11-billion – go to the government over the 25-year life of the mine, jointly owned by fellow-Canadian miner Goldcorp Inc.

“They are going to have to come up with some sort of compromise that will allow Barrick to continue to operate the mine profitably and allow the government to really save face on this, because the government has put a lot of political capital into what they’ve said they are going to do,” said John Gravelle, Canadian mining leader for consultancy PricewaterhouseCoopers.

Dominican President Danilo Medina said in speech to the nation in February that the current deal with Barrick was “unacceptable” and threatened to impose a windfall tax on profits if no deal is reached.

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Dawson City preserves its golden memories – by Lynn Martel (Vancouver Sun – March 18, 2013)

 http://www.vancouversun.com/index.html

Yukon outpost was once largest city west of Winnipeg, as thousands came seeking their fortune in creek beds

At first glance, the wooden stake erected in the nondescript patch of dirt does not appear to be particularly remarkable in any way. But, if a wooden stake could tell its story, the original claim post at Bonanza Creek, where the first pieces of gold that ignited the Yukon Territory’s Klondike Gold Rush were discovered, would surely tell a whopper.

Planted in the ground on Aug. 17, 1896, today the Discovery Claim National Historic Site preserves the spot on Bonanza Creek, 15 kilometres from its confluence with the Klondike River, where George Carmack and his fishing buddies, Skookum Jim and Tagish Charlie established the first of their four claims.

According to the oral history traditions of the Tagish First Nations peoples, Jim, Charlie and Patsy Henderson were fishing with Jim’s sister, Shaaw Tla, and her husband, George Carmack when they were approached by a seasoned gold hunter, Robert Henderson. Following the unwritten code of the miner that any knowledge of potential finds must be shared, Henderson told Carmack of some promising prospects he’d discovered in the Klondike River Valley.

Not long afterward, Carmack, Jim and Charlie made their way up Rabbit Creek, a short ways from Henderson’s camp on Gold Bottom Creek. After panning yielded a few encouraging traces of gold, they inspected a place where the bedrock was exposed, and quickly unearthed a dime-sized nugget.

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An advanced [mining] project moves forward [Northwestern Ontario] – Thunder Bay Chronicle-Journal (March 18, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

This is the seventh instalment of a multi-part series looking at the mining sector of Northwestern Ontario and the Ring of Fire.

Author Napoleon Hill, known for his writings on success, said that, “More gold has been mined from the thoughts of men than has been taken from the earth.”

While this may be true, a tremendous amount of gold has been mined out of the ground, but not without the thoughts and vision of the men and women who held firm in their commitment to stay the course of the long road from discovery to production.

Patience and persistence are essential virtues to anyone in the mining business. It can take years from the point of the initial period of exploration to construction of a producing mine. There are many challenges along the way and mining companies need to have a relentless but realistic optimism.

Osisko Mining Corp., the Montreal-based company founded in 1998 that is currently developing the Hammond Reef Gold Mine project 23 kilometres north of Atikokan, is one such company.

Osisko, whose motto professes a “fresh outlook on mining,” first became involved in the Atikokan project when it took over from junior mining company Brett Resources in 2010.

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Stealing from the pot: Book reveals escapades of [Timmins] gold highgrading – by Liz Cowan (Northern Ontario Business – March 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

It wasn’t just the shareholders reaping the benefits of the gold mines in Tim¬mins several decades ago – highgraders were getting rich too. Kevin Vincent, a Timmins journalist and broadcaster, released the first of three volumes of Bootleg Gold, which recounts the untold stories of gold smuggling in the city and elsewhere around the world.

A chance encounter with a former Tim¬mins police officer in the 1980s sparked his interest in highgrading. After listening to Jack Atkinson’s tale of his involvement in bringing down the biggest gold smuggling operation in North America, Vincent was hooked.

“I asked Jack where all the books and movies and documentaries were on gold smuggling and he said there was nothing. That’s when I started doing research and it was much bigger than I imagined on a global scale. None of it has been held out as this major crime enterprise,” he said.

Vincent’s first volume recounts the stories of some of Timmins’ highgrading capers, including the 1938 Dome Mine robbery, along with some escapades from other places.

“I didn’t ‘out’ anyone in the book and it wasn’t my intention to do that,” Vincent said. “If I outed one prominent businessperson, I would have to out everyone in Timmins.

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Barrick gold shipment detained by Dominican Republic – by Reuters (Globe and Mail – March 14, 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.

Barrick Gold Corp., the world’s largest gold miner, said on Thursday that a shipment of gold from its Pueblo Viejo mine in the Dominican Republic had been detained by customs officials in the Caribbean nation.

The delay comes just weeks after Dominican President Danilo Medina demanded that the company renegotiate its operating contract for the rich gold mine and threatened to clamp a windfall tax on profits if the contract was not modified.

Toronto-based Barrick said in a statement it was investigating the cause of the delay and seeking confirmation that the shipment can resume. It gave no further details. Fernando Fernandez, director of customs in the Dominican Republic, said the shipment was halted because of a problem with documentation.

“When it is resolved, the shipment will go out,” he told reporters. Pueblo Viejo, one of world’s largest new gold projects, is jointly owned by Barrick and Canada’s second largest gold miner, Goldcorp Inc.

On Feb. 27, in a speech marking the 169th anniversary of the Dominican Republic’s independence, Mr. Medina said the terms of the contract with the two Canadian miners were unacceptable and demanded more benefits from the mine.

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In conversation with Barrick CEO Jamie Sokalsky – (Beyond Borders – January 29, 2013)

Click Here For: Barrick Gold Beyond Borders

After serving as Barrick’s Chief Financial Officer for more than 13 years, Jamie Sokalsky was appointed President and CEO in June 2012. He quickly set the company on a new course that stresses disciplined capital allocation. At the same time, he has indicated Barrick remains steadfast in its commitment to corporate social responsibility (CSR) and sharing the benefits of mining with host communities. In a wide-ranging interview, Sokalsky talked about his new role and CSR at Barrick.

How are you enjoying your new role as CEO?

Very much. I’m proud to be the CEO of a company that’s an icon in Canada and a world leader in its industry. I’ve been with this company a long time and I know what great assets, people, and opportunities we have. Our goal is to set the bar in terms of responsible mining, where we consistently hit our financial targets while operating in a way that provides benefits to the communities where we operate. It’s exciting, and we have a great future head of us.

You have been with Barrick since its early days. In your view, is it the same company today?

I think the fundamental values of the company are very similar, even though we have grown and evolved and are a much more global company today. The ethics of the company — and the desire for people to conduct themselves with honesty and integrity — have always been there. I’d say the desire to do things the right way has been in Barrick’s DNA since the founding of the company by Peter Munk. Those fundamental core values remain the same.

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NEWS RELEASE: Unigold Strengthens Executive Team

March 12, 2013 15:28 ET

TORONTO, ONTARIO–(Marketwire – March 12, 2013) – Unigold Inc. (“Unigold” or the “Company”) (TSX VENTURE:UGD) is pleased to announce Wes Hanson, P.Geo., has joined the Company as Chief Operating Officer and Technical Director. Mr. Hanson is a Professional Geologist with over 30 years’ experience devoted towards the exploration and development of both precious metals and base metals deposits.

Mr. Hanson’s experience includes regional exploration, resource definition drilling and resource estimation, engineering design and cost estimation (first principles), mine and plant site development supervision, surface and underground mine, mill and maintenance supervision and executive management. Mr. Hanson brings technical, operational and corporate management experience to the Company and will be instrumental our initial NI 43-101 compliant mineral resource and focusing on advancing metallurgical studies and exploration to make new discoveries at Neita.

“We are delighted that Wes has joined Unigold,” commented Andrew Cheatle, President and CEO. “He brings with him extensive technical and operational experience in the management of exploration. Wes will play an important role in advancing our exploration, definition and development activities as Unigold grows the value of our exploration assets. He will be focused on delivering our initial NI 43-101 compliant mineral resource and successfully establishing a strong project pipeline from the many areas of gold, copper and zinc anomalies identified over the entire 22,600 Ha Neita property.”

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Gold Fields chief Holland isn’t afraid to get out front – by Geoffrey York (Globe and Mail – March 12, 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.

JOHANNESBURG — When the wave of violent strikes erupted across the country, Nick Holland’s security advisers cautioned him to stay away from his gold mines. He went anyway – and soon found himself facing an army of 5 ,000 angry miners marching across the fields, waving machetes and sticks.

“I always like to be at the front,” says Mr. Holland, chief executive officer of Gold Fields Ltd., the world’s fourth-biggest gold producer. “But it gave me a really scary feeling in the pit of my stomach, that we were about to have something blow up.”

Gold Fields survived the wildcat strikes that left dozens dead at other mines in South Africa last year, but now Mr. Holland faces an even greater challenge: How to save his company from a national mining-industry crisis of rising costs, deteriorating production, high political risk, labour pressures and the threat of new taxes.

It’s a daunting moment for South Africa’s gold industry, the biggest in the world for nearly a century but now in steady decline. At a time when innovation is crucial, Mr. Holland has become a pioneer, orchestrating a bold move to divide Johannesburg-based Gold Fields by spinning off its older South African mines into a new company, leaving its most modern and international mines in the hands of Gold Fields itself.

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$1,000 daily price swings and $3500 gold – Sinclair’s dire predictions – by Lawrence Williams (Mineweb.com – March 11, 2013)

http://www.mineweb.com/

‘Mr Gold’, Jim Sinclair, who has a huge following amongst the pro-gold sector, propounds some interesting views on where the global economy and the gold price are heading

You can’t accuse Jim Sinclair of mincing his words – nor of not being prepared to go on record with predictions with respect to his analyses of where the gold price is going that other analysts and commentators fear to mouth – whatever they may actually believe.

Sinclair doesn’t care if people think his analyses are seen as far-fetched, or totally over the top. He firmly believes in his personal assessment of what will happen in gold – and you just can’t write off his opinions as deluded ramblings. His experience in the gold market and track record on price predictions makes ignoring what he says unwise.

Even so in a recent interview on King World News in the U.S. in which he predicts that the gold price might move as much as $1,000 up or down in a single day his analysis may seem a little extreme.

In his view it’s a bit like a biblical battle between good and evil – but here it’s down to East vs West in what he sees as a coming gold/currency war as the inevitable forces fighting to bring some kind of order to the global debt situation come up against those desperate to protect the US dollar from sinking into oblivion in a sea of ever escalating debt.

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Documentary: Gold Mining: “South Dakota Saga” 1941 Homestake Mining Company


 

“Gold mining and the life of gold miners in South Dakota, as seen by the mining company.”

Public domain film from the Library of Congress Prelinger Archive, slightly cropped to remove uneven edges, with the aspect ratio corrected, and mild video noise reduction applied.
The soundtrack was also processed with volume normalization, noise reduction, clipping reduction, and equalization.

Gold mining is the removal of gold from the ground. There are several techniques and processes by which gold may be extracted from the earth.

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Detour Gold Shuns M&A to Avoid Barrick’s Plight – by Liezel Hill (Bloomberg.com – March 8, 2013)

http://www.bloomberg.com/

Detour Gold Corp. (DGC), a miner backed by billionaire hedge-fund manager John Paulson, is avoiding acquisitions that have hurt competitors to focus on its C$1.5 billion ($1.46 billion) project in northern Ontario.

The company has set “deliverable” targets at Detour Lake, potentially the biggest gold mine in Canada, Chief Executive Officer Gerald Panneton said. The value of some miners is “dilapidated” because they issued shares to fund acquisitions that diverted management’s attention, he said.

“A mine is a headache, pure and simple, so if you have 10 mines, how many headaches do you have?” Panneton said in a March 5 interview at Bloomberg’s Toronto office. “If you have one mine and you are focusing, you have a better chance of success.”

Shares of gold-mining companies have underperformed the metal for each of the last six years amid surging production costs, project budget blowouts and startup delays. Barrick Gold Corp. (ABX), the world’s largest producer, where Panneton worked for 12 years, said Feb. 14 it took a $3 billion writedown on a Zambian mine it bought in 2011. Another Toronto-based competitor, Kinross Gold Corp. (K), said a day earlier it took a $3.09 billion writedown at the Tasiast gold project, an African mine acquired in 2010.

Index Beater

“There is a great deal of gold at Tasiast — we view it as a cornerstone asset and an important part of our future,” Steve Mitchell, a Kinross spokesman, said yesterday by e-mail.

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Award is icing on the cake for Aboriginal mine service company Windigo Catering

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.

Windigo Catering, an Aboriginal business serving Ontario Mining Association member Goldcorp’s Musselwhite Mine, has found its own recipe for business success. This has been recognized through becoming the sixth recipient of the Prospectors and Developers Association of Canada’s (PDAC) Skookum Jim Award. This honour is presented to recognize excellence in service and contributions to the mining industry by Aboriginal enterprises.

The company is owned by five members of the Windigo First Nations Council in northwestern Ontario. Profits are shared among the five Windigo member First Nations – Bearskin Lake, Cat Lake, North Caribou Lake, Sachigo Lake and New Slate Falls. As well as catering, the company provides camp management, commissary, housekeeping, laundry and janitorial services.

Windigo First Nations is a partner in the business-to-business agreement with Goldcorp that has helped nurture a range of employment, skills training, economic development opportunities and environmental protection initiatives. Windigo Catering, which is located in Sioux Lookout, employs 66 people of which 83% are Aboriginal.

Training along with competitive salaries and benefits are provided by the company to employees. The catering company grosses more than $6 million annually and the Windigo First Nation Council also receives monthly revenue sharing cheques from the mine.

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The Hemlo Gold Story – CBC Documentary

 

Just off the trans-Canada highway, half way between Thunder Bay and Sault Ste. Marie, near the highway to Marathon, Don Mckinnon, John Larche and David Bell discovered Ontario’s fourth largest mining camp, Hemlo, in 1981.

A fierce legal battle errupted over the ownership of one of three mines – the Williams – between Teck-backed junior miner Corona and Lac Minerals. In August 1989, the Supreme Court of Ontario awarded the property to Teck and Corona. Over the past 25 years the Hemlo camp has produced 21 million ounces of gold.

For a good historical overview of Ontario gold mining by Sudbury Star mining columnist Stan Sudol, please click here: Northern Ontario: A Golden Klondike – 192 million ounces of gold and counting

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