Twitter

Gold and Silver

Press Release: Wabauskang Expects Court of Appeal Decision to Bolster its Case against Ontario and Rubicon

Wabauskang First Nation

Treaty 3
March 6, 2013

Wabauskang First Nation expects its lawsuit opposing Rubicon Mineral’s proposed Phoenix Gold Mine Project in Red Lake, Ontario will soon be strengthened by a decision from Ontario’s highest court.

Wabauskang’s lawsuit against Ontario and Rubicon relies on Grassy Narrows First Nation’s victory in the Keewatin decision from 2011. There the Court effectively concluded that only Canada, not Ontario, can issue resource authorizations that affect Treaty rights in Grassy Narrows’ and Wabauskang’s traditional territory, including the Red Lake area. The Keewatin appeal was heard in January and a decision is expected in the next few months.

While attending this week’s Prospectors & Developers Association of Canada conference in Toronto, Wabauskang Chief Leslie Cameron said, “we were heavily involved in the Keewatin appeal and made arguments in support of Grassy Narrows and that support our own case against Rubicon and Ontario. The Court of Appeal seemed really interested in our arguments. We’re expecting to win.”

“If we’re successful, Ontario’s going to have to totally rethink how it treats us and other Treaty 3 First Nations when it comes to mining,” said Chief Cameron. “For a start, we think Rubicon will have to face the writing on the wall and admit they shouldn’t have got their closure plan for the Phoenix Mine. We’re reasonable people.

Read more

Spirit of Schumacher still lingers – by Benjamin Aubé (Timmins Daily Press March 2, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The landscape of Schumacher may have changed over the years, but the community’s vibrant spirit and heritage is being kept alive and well.

Like those of F. Scott Fitzgerald’s Dr. TJ Eckleburg in The Great Gatsby, legendary philanthropist Frederick Schumacher’s eyes still watch over the town that bears his name.

A party honouring 101 years of the community’s existence and heritage was held at the McIntyre Arena, the building where Schumacher’s portrait is mounted on the exterior. Friday, Mar. 1 was Mr. Schumacher Day, and the Schumacher Arts, Culture and Heritage Association (SACHA) celebrated in style.

“It’s a committee that’s been together for a year now,” said Rob Knox, a member of the SACHA committee. “Our focus has been the preservation of Schumacher arts, culture and architecture, and celebrating the citizenry of Schumacher and the diverse and wonderful history of this small mining community.

“We’ve undertaken a few various community events in an efforts to elevate the notion of Schumacher as a community and its history and its overall contribution to the city of Timmins and the Porcupine Mining Camp.”

Read more

Aboriginal excellence to be honoured at PDAC – by Lindsay Kelly (Northern Ontario Business – March 1, 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.

In the early days of the Klondike Gold Rush, Tagish prospector Skookum Jim was known for his perseverance and tenacity. The same attributes could easily be bestowed on Windigo Catering, which will receive an award named for the 19th-century miner at the Prospectors and Developers Association (PDAC) in March.

Windigo is the 2013 recipient of the PDAC’s Skookum Jim Award, which acknowledges Aboriginal achievement in the mining industry. It’s the first such accolade for the catering and janitorial service company based in Sioux Lookout, but likely won’t be the last.

In the last year, the company has continued to excel in its role providing catering and janitorial services at Goldcorp’s Musselwhite Mine northwest of Thunder Bay. Now the company is poised for growth, an exciting prospect, but one that’s slightly daunting, said Debbie Korobanik, general manager of Windigo’s parent company, Windigo Ventures General Partner.

“We’re just trying to keep the growth at a level where it’s still manageable,” Korobanik said. “Sometimes I worry about that. There’s lots going on.”

Read more

Golden moment for Detour Lake Mine – by Ashley Lewis (Timmins Daily Press – February 27, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

COCHRANE – Detour Gold has passed a significant milestone, pouring its first four bars of gold at its Cochrane-area mine. There were a “few moist eyes in the room when that bar came out,” said Drew Anwyll, general manager at Detour Gold.

The four bars were approximately 2,000 ounces of gold. The mine, which has been under construction for the last 26 months, is now reaching a different level of operations. “We moved from an exploration company into an operating mine,” said Anwyll.

He said he along with company president Gerald Panneton and senior vice-president Pierre Beaudoin have been receiving accolades for the mine’s startup but it really comes down to the hundreds of thousands of people who have been a part of the whole process.

“It was a great day for the entire team and was a result of the hard work from the employees, contractors and everyone involved,” Anwyll said. “I’d also like to especially thank the Cochrane community as well.

“We’re all very proud to be part of the community. We’ve developed great relationships and I’m looking forward to building some great partnerships in the years to come.”

Cochrane residents make up a quarter of the Detour Lake mine employees.

Read more

Goldcorp OMA member provides $100,000 to support the homeless

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.

Ontario Mining Association member Goldcorp has donated $100,000 to the Good Samaritan Inn in Timmins in support of the homeless. For the past 11 years, the Good Samaritan Inn has provided shelter, clothing and food for the people in need in this Northern Ontario community.

This major financial contribution from Goldcorp’s Porcupine Mines, combined with community fundraising and the support of many volunteers has given Good Samaritan Inn the means to acquire a new building. For Goldcorp Porcupine Gold Mines, the decision to help out was an easy one, said Marc Lauzier, General Manager of Goldcorp’s Porcupine Gold Mines. “Goldcorp is proud to support such a worthy cause and needed service that makes Timmins a strong, healthier community.”

On any given night, the Good Samaritan provides refuge for up to 42 people. According to a recent study by Laurentian University, it is estimated that there are 720 homeless individuals in Timmins including 257 youth under the age of 15.

“Goldcorp is proud to be partnering with the Good Samaritan Inn and supporting the purchase of a new building to provide shelter for the homeless,” said Mr. Lauzier, “Supporting this excellent community-based group, the dedicated volunteers and the important work they are doing is one way we can do just that.”

Read more

BMO Advisor Coxe: “This Is the Worst Trading Situation I Have Ever Seen” – by Peter Byrne (The Gold Report – February 22, 2013)

http://www.theaureport.com/

Taking inspiration from George Orwell’s “1984,” renowned BMO advisor Don Coxe has coined the expression “Weakness is Strength” to describe the current economic situation. In a far-ranging interview with The Gold Report, Coxe explains how an international regime of weak currencies has set the scene for an upsurge in the price of gold shares. He believes that gold will return as a preferred hedge against loss of value because inflation is inevitable.

The Gold Report: Your investors’ report last week was entitled, “Orwellian Currencies: Weakness is Strength.” Could you please explain?

Don Coxe: In his classic book, “1984,” George Orwell’s Big Brother rules society with three slogans: “War is peace. Freedom is slavery. Ignorance is strength.” I coined the slogan “Weakness is Strength” to sum up the idea that a weak currency creates a strong economy. But it has to be weak like Goldilocks’ porridge: Weak enough so that domestic industries can still sell products abroad, but not so weak that people dump government bonds and cause a financial crisis, which is the situation that threatened the Eurozone when the euro went south 18 months ago.

After the fall of the Berlin Wall and the implosion of Communism, there was a general consensus that capitalism had become triumphant. At the end of the last decade, a Democratic president proclaimed the end of the welfare state and the end of big government.

Read more

Barrick’s Golden Sunlight mine pursues clean-up of historic mines (Beyond Borders – January 2013)

Click Here For: Barrick Gold Beyond Borders

RESPONSIBLE MINING AT BARRICK GOLD CORPORATION

Barrick’s Golden Sunlight mine is spearheading an ambitious project to clean up environmental contamination at historic mine sites in Montana that will save the state and federal taxpayers millions of dollars.

Montana’s long history of mining, much of which pre-dates modern mining and environmental regulation, left a collection of improperly closed tailings impoundments and waste-rock piles that require clean-up. With taxpayers on the hook for the costs, Barrick found a creative solution.

In particular, while Montana’s historic tailings impoundments and waste-rock piles contain metals that can harm the environment, they also contain gold that can be extracted profitably at today’s prices. Barrick’s Golden Sunlight mine offered to re-process and store this material in its modern facilities, obviating the need for taxpayer-funded clean-ups.

Read more

UPDATE 3-Kyrgyzstan sets deadline to revise Centerra Gold deal – by Olga Dzyubenko and Bhaswati Mukhopadhyay (Reuters.com – February 21, 2013)

http://www.reuters.com/

Feb 21, 2013 (Reuters) – Kyrgyzstan has given Centerra Gold three months to redraw terms before ripping up an agreement to run its flagship mine in the Central Asian country, accusing the Canadian miner of “colossal” environmental damage and underpaying the state.

Centerra said it had received a new claim from the government for $315 million for alleged environmental destruction, almost tripling the damages claims that it faces.

Parliament ended two days of fierce debate by passing a resolution on Thursday demanding the government revise a deal struck in 2009, a year before then-president Kurmanbek Bakiyev was driven from power by a popular revolt.

“If within three months our negotiations yield no results, the government will unilaterally cancel the agreement,” Economy Minister Temir Sariyev said during the debate on Wednesday.

Centerra, whose shares have halved since the Kyrgyz government said in June it would review the mine deal, said the 2009 agreement was “solid and transparent” and it had already started talking to the government.

The Kumtor mine, bisected by a glacier 4,000 meters (13,000 ft) above sea level, is the largest gold mine in Central Asia operated by a Western company. It is the industrial centerpiece of the fragile Kyrgyz economy, contributing 12 percent of GDP in 2011.

Read more

Gold stocks’ time to shine – by Bryan Borzykowski (Canadian Business Magazine – Febuary 20, 2013)

http://www.canadianbusiness.com/

Miners who will outpace gold prices.

At first glance, the firing of Aaron Regent, Barrick Gold’s CEO, last June seemed unremarkable. The company’s share price had stalled amid concerns around cost overruns at its Pascua-Lama mine in Chile. While his dismissal was abrupt, it appeared to be a simple case of a company shakeup. But take a closer look at the gold sector and you’ll see that Regent’s ouster fits a pattern.

The list of laid-off CEOs is long. Kinross Gold’s Tye Burt, Centerra Gold’s Stephen Lang (he’s now chairman) and Great Basin Gold’s Ferdi Dippenaar are just three of the many gold company executives who found themselves out of a job or kicked upstairs.

Why the turnover? Because for the past few years, many gold companies have nearly run their businesses—and their investors’ equity—into the ground, despite an incredible rise in gold prices. Between 2008 and January 2013, gold prices climbed 82%—yet somehow, over the same period, the S&P/TSX global gold index fell about 15%. Thanks to cost overruns, labour inflation, misguided acquisitions and bad decisions, many gold companies have seen their stock plummet. Barrick’s share price has dropped 33% over the past 12 months. Kinross is down 29%.

The negative news has made the sector cheaper than it has been in years. Vincent Roy, BlackRock’s managing director of scientific active equity, points out that the S&P/TSX global gold index is trading at 16 times earnings, about half of where it traded in 2009. The inexpensive valuations, plus a gradual change in company attitudes, have made this sector attractive again. “We’re coming back to the view that it’s rational to have investments in gold equities,” says Onno Rutten, a precious-metals-focused portfolio manager with Mackenzie Investments.

Read more

NEWS RELEASE: Bullion Management Group joins Canada’s Social Investment Organization

 FOR IMMEDIATE RELEASE

Toronto, Ontario – Feb. 20, 2013 – Bullion Management Group Inc. (BMG) is pleased to announce it has become an associate member of the Social Investment Organization (SIO). The SIO is the national association for the socially responsible investment (SRI) industry in Canada, with a primary mandate of providing a leadership role in furthering the use of social and environmental criteria within the Canadian investment community.

BMG is Canada’s first, precious metal’s company to join the SIO. BMG seeks to continually pursue the highest global standards for bullion purchase, storage, integrity, transparency and security for its clients and has already been accepted as an Associate Member of The London Bullion Market Association (LBMA).

A report released in January of 2013 by the SIO states that socially responsible investment assets in Canada have climbed dramatically, showing growth in virtually every major market segment and outpacing the overall growth rate of the total assets under management. The Canadian SRI Review report states that assets managed under sustainable and socially responsible guidelines grew by 16 per cent between June 30, 2010 (the effective date of the last report) and December 31, 2011. By comparison, total assets under management grew by nine per cent in the same time period. Total assets managed under SRI guidelines are $600.9 billion, up from $517.9 billion, an amount that represents 20 per cent of assets under management in the financial industry.

Read more

Rio Tinto’s Mongolia Copper Dream Awakens 20-Year-Old Nightmare – by Elisabeth Behrmann & Yuriy Humber (Bloomberg.com – February 20, 2013)

http://www.bloomberg.com/

Rio Tinto Group’s Mongolia copper and gold mine looks a dream location sitting next to China, the biggest market. Yet, Mongolia’s bid for more control of the project draws comparison with a Rio mine that went badly wrong.

Mongolia’s government is ratcheting up criticism of Rio’s management of the $6.6 billion project, the landlocked country’s single biggest investment. Lawmakers have argued for a bigger share of profit, while President Tsakhia Elbegdorj wants more management control. He faces elections in June with a fifth of the nation’s 3 million people in poverty despite world-beating economic growth of 17.3 percent in 2011.

Rio has refused government overtures to rewrite the agreement on the mine known as Oyu Tolgoi, raising tensions and comparisons with another Rio copper mine more than two decades ago. That project known as Panguna on the island of Bougainville in Papua New Guinea was shut by local protests and is still the subject of a U.S. court case.

“In Bougainville the community felt, rightly or wrongly, they weren’t compensated adequately for the various impacts of mining they were having to absorb,” said Jeffrey Neilson, a senior lecturer in economic geography at the University of Sydney. Governments in emerging economies “have to be seen to be taking a strong stance and making sure that the benefits of their resource wealth are being shared.”

Read more

Detour Lake pours first gold bars, set to become Canada’s biggest producer – by Pav Jordan (Globe and Mail – February 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.

Canada’s newest mega-gold mine poured its first gold bars on Tuesday, as the Detour Lake project in Northern Ontario reached production alongside volatile gold prices holding just above $1,600 an ounce.

Detour Gold Corp., the owner and operator of the huge open-pit mine, poured four gold bars at the Cochrane, Ont., project for a total of 2,000 ounces of the precious metal. The spot value of that gold was some $3.2-million (U.S.) at current gold prices.

The mine was built over 26 months and comes into being about six years after Detour bought the properties. It will vie for top spot with Canada’s largest gold mines, and has the potential to be expanded further under the right conditions.

“We do have the reserves to expand more, no doubt in my mind,” said Gerald Panneton, the president, chief executive and founder of the company he took public six years ago on the Toronto Stock Exchange. “Are we going to do it? It’s a question of economics and market. We will probably take a decision in a couple of years.”

When it went public in 2007, Detour Gold stock was trading at just below $4 a share, a fraction of the $20.75 where it closed on Tuesday. When the company was born, the price of gold was around $650 an ounce, or less than half what it is today.

Read more

Investigation continues into attack on Eldorado Gold mine in Greece – by The Canadian Press (Globe and Mail – February 18, 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.

A Greek prosecutor ordered the release Monday of a 54-year-old man hours after he was arrested in connection with an attack on a Canadian-owned gold mining operation in which about 40 masked intruders torched machinery and vehicles.

Police had arrested the man for “moral instigation” of the attack due to his contributions to an anti-mining blog. The prosecutor later ordered him released without officially charging him, while also ordering the investigation to continue.

Opposition to the Skouries mining project in northern Greece’s Halkidiki peninsula runs deep and the area has seen numerous protests in recent months, some of which have turned violent.

The mining company, Hellas Gold, which is 95 per cent owned by Vancouver-based Eldorado Gold Inc., is planning a gold mine and processing plant in the area.

Residents are divided between those who fear environmental destruction and those who support the mine for its job prospects at a time of severe financial crisis and spiralling unemployment.

Read more

Barrick Gold Bets Once More on Nevada After Zambian Flop – by Liezel Hill (Bloomberg.com – February 15, 2013)

http://www.bloomberg.com/

Barrick Gold Corp. is betting growth will come from Nevada, where the world’s largest producer scored its first big success three decades ago, after more than $9 billion in writedowns and cost overruns in the past two years on projects from the Andes to Zambia.

Chief Executive Officer Jamie Sokalsky said yesterday the Toronto-based company doubled the estimated resources at the Goldrush deposit in Nevada last year, even as it sells assets and cuts spending elsewhere to revive shares that slumped 24 percent. Barrick is also pushing ahead with Pascua-Lama, a gold and silver mine on the Chile-Argentina border it expects to open next year.

“The priorities for the company, once we finish Pascua- Lama, really are focused on Nevada,” Sokalsky said yesterday on the company’s earnings call. “We have one of the most exciting exploration finds in recent memory, the Goldrush discovery, to ultimately add to this Nevada production in the future.”

Sokalsky’s mantra yesterday was steady and safe. The CEO, who took the job June 6, said the company has no plans to build more new mines and is looking to sell lower-return assets including its energy unit and the 50 percent it owns in a nickel project in Tanzania.

Shareholders reacted positively to Sokalsky’s moves to do “anything that will increase shareholder value” yesterday, lifting the stock 2.3 percent in Toronto.

Read more

Barrick’s overpriced Equinox acquisition comes back to bite in US$4.2B writedown – by Peter Koven (National Post – February 15, 2013)

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

TORONTO – Like many of its mining peers, Barrick Gold Corp. has received its comeuppance for a badly overpriced acquisition.

The world’s biggest gold miner took a humiliating US$4.2-billion writedown on Thursday, mostly tied to its struggling Lumwana copper mine in Zambia. The move acknowledged what investors already knew: Barrick paid far too much when it agreed to buy Equinox Minerals Ltd. (Lumwana’s former owner) for $7.3-billion in 2011.

“The operating results at Lumwana have been disappointing since we acquired Equinox,” chief executive Jamie Sokalsky told investors. “They’ve been unacceptable, actually.”

Barrick’s move is the latest in a string of massive asset writedowns that have scarred the mining industry in the past year. It comes one day after Kinross Gold Corp. announced a US$3.1-billion charge on the Tasiast mine, another asset that was acquired for too much money.

The Barrick impairment is typical of the ones seen across the industry. The company made a huge acquisition at the top of an overheated market. When costs rose more than expected and metal prices cooled off, the carrying value of the asset on its balance sheet had to be reduced. Last month, Rio Tinto Ltd. and Cliffs Natural Resources Inc. took writedowns under similar circumstances.

Read more