Gold and Silver – Page 302 – Republic of Mining

Demolition planned for Shania centre [for gold mine] – by Ron Grech (Timmins Daily Press – January 9, 2013)

January 10, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The Shania Twain Centre and Underground Gold Mine Tour will be history in more ways than one if Goldcorp Canada completes a deal to purchase the land where those attractions are located.

“If an agreement can be reached, our plans are to demolish both,” Domenic Rizzuto, manager of human resources and corporate social responsibility for Goldcorp’s Porcupine Gold Mines, told The Daily Press.

Goldcorp’s interest in the property comes at a time when the company is developing an open pit mine in an area pocked by subsidances from the old Hollinger mine workings.

The original proposed layout of the open pit saw the exterior wall or berm curving around the property where the Twain centre and mine tour site are located. If the land sale goes through, there will be less need for Goldcorp to prevent the berm from encroaching in that area. “Goldcorp is in discussions with the city to purchase the Shania Twain Centre and Gold Mine Tour because there is an economic case to so,” said Rizzuto.

Timmins council announced on Monday the city was close to finalizing an agreement to sell the Twain centre and mine tour property to Goldcorp.

Growth golden at Brigus projects – by Kyle Gennings (Timmins Daily Press – January 9, 2013)

January 10, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The coming year holds the promise of further expansion for Brigus Gold operations in the Black-River Matheson area. The Black Fox mine is slated to expand production while the Grey Fox mine will continue operational prep for full production in 2015.

For Brigus CEO Wade Dawe, 2013 will be yet another landmark year in growth for the mid-level operation, one that will see the residents of Timmins benefit.

“In 2012 we made great progress, we built the underground portion of the mine (Black Fox) and that is wrapping up very well,” he said. “We are on track to increase production in 2013 to between 90,000 and 100,000 ounces compared to the 77,347 ounces in 2012.”

This increase will continue to lay the ground work needed to allow Brigus to focus on further expansion of the Grey Fox operations. Dawe said that 2013 should be a stable year.

“Right now, we have approximately 377 employees at the Black Fox mine,” he said. “In 2013 our employment numbers will be reasonably stable. We may add up to 5% of additional personnel, although we are essentially stable in 2013.” Operations will ramp up even further in 2014.

Barrick, China walk away from Africa deal – by Pav Jordan (Globe and Mail – January 9, 2013)

January 9, 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. has ended months of efforts to sell its African unit to state-owned China National Gold Group (CNGC), unwilling to settle for fire-sale prices even as it struggles to cover massive cost overruns elsewhere.

The assets had been up for sale as part of a revitalization strategy that was launched by the world’s largest gold miner last summer amid a falling stock price and shareholder discontent.

The move leaves Barrick with a high-cost producer in African Barrick Gold PLC at a time when mining on the African continent is losing its shine for shareholders, who are wary of resource nationalism amid months of labour strife in African mines.

The end to the talks also underscores the fiscal discipline of Chinese state-owned mining companies, showing they are careful not to overpay for assets even as the country seeks ownership of mineral resources to feed booming economic growth.

Barrick chief executive officer Jamie Sokalsky, who took the helm of the Toronto-based miner in June after the ouster of predecessor Aaron Regent, engaged the Chinese as one of a series of bold moves to address investor backlash against Barrick, which like others in the sector pursued aggressive growth for years but failed to spark good returns for shareholders.

Rubicon Minerals appoints new operations boss – by Staff (Northern Ontario Business – January 7, 2013)

January 9, 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.

Rubicon Minerals has appointed a new vice president of operations and hired a new director of investor relations. “Putting in place a team that can take us to the next level is one of my key priorities,” said Michael Lalonde, Rubicion president and CEO, in a Jan. 7 statement.

Dan Labine is the new operations boss, effective Jan. 21 and Allan Candelario will handle investor relations. Labine has more than 35 years of engineering, mine operation, and project management experience, most recently as Goldcorp’s senior project manager in charge of the construction and development of the Cochenour project in Red Lake.

Rubicon is constructing a gold mine in the Red Lake district. Its Phoenix Gold project is slated for a 2014 startup. Labine supervised the construction of a five-kilometre underground haulage drift between the Cochenour project and its Red Lake mine infrastructure.

Labine previously worked in management for Inco, AMEC Earth and Environmental Ltd. and was a senior project engineer for Nordpro Mine and Project Management Services.

Gogama mine project shines for IAMGOLD – by Benjamin Aubé (Timmins Daily Press – January 8, 2013)

January 9, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Another company is looking to put its stamp on the region’s rich mining history. IAMGOLD hopes its Côté Gold project near Gogama will be up and running by the year 2017. Timmins council voiced its enthusiasm for the welcoming of another gold mine to the region.

Mayor Tom Laughren praised the company for initiating a presentation to city council, as well as its early consultation with local and First Nations communities that has been ongoing since IAMGOLD purchased Trelawney Mining in June 2012. “I think that’s phenomenal for a mining organization to be out there ahead of time,” said Laughren. “Anytime there’s mining in our region, we’re very excited.”

IAMGOLD’s manager of corporate social responsibility, Aaron Steeghs, was among the four project representatives on hand at Monday’s presentation. He began by stating the company’s commitment to “zero harm,” encompassing “health and safety, community and First Nations relations, and environment.”

The Côté Gold project will consist of an open-pit mine, and will include tailing storage, a mill site and camp facilities. Located 25 kilometres Southwest Gogama, 130 kilometres south of Timmins, and 170 kilometres North of Sudbury, the operation promises to offer a significant number of employment opportunities over the mine’s projected 15-year lifespan.

NEWS RELEASE: Foundation Signs Agreement with Wahgoshig First Nation

January 9, 2013

Vancouver, B.C. January, 8, 2013; Foundation Resources Inc. (TSX.V:FDN: “Foundation” or “the Company”) is pleased to announce that further to the Company’s press release dated November, 14, 2012, the Waghoshig First Nation (“WFN”) has agreed to amend its Memorandum of Understanding (MOU) with Sheltered Oak Resources Corp. allowing Foundation to become a party to the agreement upon the completion of the acquisition of OAK. The agreement is limited to the Kerrs Property, which is also in Lake Abitibi area of Ontario, but does serve as a basic starting point for future negotiations between the parties.

“While this is agreement relates to the Kerrs Property, it contains what most knowledgeable industry participants would consider standard terms, and we believe it demonstrates a desire by WFN to work with mineral exploration companies on mutually respectful terms,” stated Barry Girling Interim CEO of Foundation. “Robert Hanson, Chairman of OAK and I had what can only be described as a very productive meeting with Chief David Babin and we look forward to continuing the strong relationship that has existed between OAK and WFN.”

The Company has also increased its offer to acquire 100% of the outstanding shares Solid Gold Resources Inc (TSX.V:SLD: “SLD”) on the basis of one share of Foundation for each share of SLD (the “FDN Offer”) up from its previous offer of 0.8333 shares of Foundation for each share of SLD (see press release dated November 27, 2012). The proposed terms of the FDN Offer represents a premium of approximately 45% to the 10 day SLD VWAP price of 0.031 per share for the period December 20, 2012 through January 7, 2013. MGI Securities Inc. (“MGI”) is acting as financial advisor to the Company with respect to the FDN Offer.

African Barrick Gold/China National Gold deal dead in the water – by Lawrence Williams (Mineweb.com – January 8, 2013)

January 8, 2013

http://www.mineweb.com/

The long running negotiations between Barrick Gold and China National Gold over the former’s African Barrick Gold (ABG) subsidiary have fallen through and ABG’s share price has dived as a result.

LONDON (MINEWEB) – Discussions on the sale of African Barrick Gold (ABG) to China National Gold Group Corporation (CNG) appear to have come to nothing after a rigorous examination of ABG’s operations by the Chinese state-owned gold mining company. London-quoted African Barrick’s share price initially dropped sharply on receipt of a statement from ABG confirming its 73.9% owner, Canada’s Barrick Gold, has now ended its discussions with CNG which means that ABG is ‘no longer in an offer period under the Takeover Code’.

The Barrick announcement went on to say “Given the direct nature of the discussions between Barrick and CNG, this has meant an extended period of uncertainty for ABG as well as significant extra work. Throughout this period, our focus has been on ensuring the ongoing integrity and stability of our operations, and our employees have made an important contribution towards achieving this. At the same time, Barrick has made it clear that it sees considerable long-term value in the ABG asset base. Barrick remains committed to supporting ABG in fully realising the potential of the business.”

This has not been a great day for Barrick with the news also coming through that its plans to develop the huge Reko Diq copper/gold project in Pakistan’s Balochistan province have been declared invalid by the Pakistani high court, although given the company’s recent rethinking on its major project programme, coupled with the location of Reko Diq close in a far from stable part of the world, this may actually be perceived as a positive in some eyes!

Cutifani Said to Be Leading Candidate for Anglo CEO Post – by Matthew Campbell & Firat Kayakiran (Bloomberg.com – January 5, 2013)

January 7, 2013

http://www.bloomberg.com/

AngloGold Ashanti Ltd. (ANG) Chief Executive Officer Mark Cutifani is the leading contender to replace Cynthia Carroll at the helm of mining company Anglo American Plc (AAL), according to people familiar with the situation.

Cutifani has emerged at the top of a list of candidates that has included former BHP Billiton Ltd. (BHP) CEO Chip Goodyear and Chris Griffith, the head of Anglo American’s platinum unit, said the people, who asked not to identified because the matter is private. The decision isn’t yet final on a replacement for Carroll, who said in October she would resign as CEO of the London-based miner after a $14 billion drop in market value.

Carroll’s successor may be announced within two weeks, the people said. The new CEO will face the challenge of increasing growth at Anglo American, which has struggled with cost overruns at projects, including the Minas-Rio iron ore mine in Brazil, and sparred with Chilean state mining company Codelco.

“Mark is a pretty energetic guy,” said Caesar Bryan, a portfolio manager at Gabelli & Co. in Rye, New York, which owns Anglo American and AngloGold shares. “He’s someone that’s very focused on return on invested capital and he seems to have an open mind to doing things differently.”

Excerpt from “The History of Mining: The events, technology and people involved in the industry that forged the modern world” – by Michael Coulson

January 3, 2013

To order a copy of The History of Mining please click here: http://www.harriman-house.com/products/books/23161/business/Michael-Coulson/The-History-of-Mining/

BRAZIL and MARRO VEHLO

At least one of the companies that Disraeli was pushing, Imperial Brazilian, established a profitable mining business in the state of Minas Gerais in Brazil at the old and rich Gongo Soco mine, which lasted from 1826 until 1856 when flooding led to the mine’s collapse. Over 30 years it produced more than 400,000 ozs of gold, the revenue generated being divided 60% to costs, 20% to shareholder dividends and 20% to the Brazilian government in taxes, making it one of the few profitable companies to come under Disraeli’s gaze.

Brazil had been a major gold producer since gold was first discovered in Minas Gerais at the end of the 17th century. Gold production is thought to have been around 1,200 tonnes between 1700 and 1820, at which time British capital was allowed in, following independence from Portugal, to revive the ageing mines of the region. The British had in fact benefited for decades from the growth of gold mining in the pre-independence era as Portugal ran a permanent trade deficit with Britain which was plugged by gold deliveries from Brazil.

Are You a Base Metal Growth Bull or a Gold Gloom-and-Doomer? – by Brian Sylvester (The Gold Report – January 2, 2013)

January 3, 2013

http://www.theaureport.com/

Gold bugs say the global economy could collapse any day now. But what about investors who see continued growth in emerging economies and a steady, if slow, U.S. recovery? Look to base metals, recommends Haywood Analyst Stefan Ioannou. He expects price runs for 2013–2015, especially for zinc, which is facing a serious supply squeeze. Do your homework now to get positioned as soon as the uptick begins. Ioannou shares his favorites in this Gold Report interview.

The Gold Report: Stefan, what is your 2013 outlook for copper?

Stefan Ioannou: Strong fundamentals underpin the copper price going into 2013. Despite a tough copper equity market in 2012, the metal price itself has been pretty solid, averaging around $3.60 per pound ($3.60/lb). Improving automobile numbers out of the U.S. and stronger manufacturing numbers out of China will both have a positive near-term impact on the copper price. We expect copper prices to move a bit higher in 2013.

TGR: How far off is a return to $4/lb copper?

SI: I think 2013 is too soon for a sustained $4/lb price, but it will likely test that mark a few times in the coming year. There is a stronger argument for a long-term $4/lb copper price.

TGR: Many of the copper companies you cover also have a zinc component. Zinc started 2012 near $2,200 per metric ton ($2,200/mt), dipped to $1,750/mt at midyear and now hovers around $2,000/mt. What is behind the volatility?

Excerpt from “The History of Mining: The events, technology and people involved in the industry that forged the modern world” – by Michael Coulson

January 3, 2013

To order a copy of The History of Mining please click here: http://www.harriman-house.com/products/books/23161/business/Michael-Coulson/The-History-of-Mining/

PADDY HANNAN (1840-1925)

The history of gold prospecting in Australia is populated by countless thousands of mostly unlucky and long forgotten men. One of the few whose name still survives is Paddy Hannan, who found the fabulous Kalgoorlie gold field in Western Australia in 1893 and whose statue is still to be seen in the centre of Kalgoorlie today.

Hannan was born in Ireland in 1840, one of five brothers and six sisters. He travelled to Australia in 1862 and worked for several years as a miner in the gold fields of Ballarat in Victoria where his uncle, William Lynch, was a miner. After that he went to work in the gold fields of New Zealand for several years and returned to prospect in New South Wales and then South Australia. He later crossed Australia to prospect for gold in Western Australia around Southern Cross. Hannan was a careful man with an ability to find water as well as gold, something that stood him in good stead in parched Western Australia. It was this skill at finding water that led to Hannan’s discovery of the famous Kalgoorlie gold field in 1892, for it was while he was looking for sources to fill his waterbags that he stumbled over surface gold.

2012: A year for calling leaders to account – by Geoff Candy (Mineweb.com – January 2, 2013)

January 2, 2013

http://www.mineweb.com/

Tragedy, firings and calls for leadership were at the heart of the mining sector’s big stories of 2012.

GRONINGEN (MINEWEB) – 2012 was a big year for leadership. A host of countries, including France and China elected new leaders, others, like the US, chose more of the same. But, all around the world, leaders were being forced to work a little harder to win votes – unsurprising really, when one considers the parlous state of the global economy.

But, it was not just in the political sphere that leadership was being questioned. Mining leaders, at both a government and a company level were put on the spot. Indeed, one could argue that leadership (or a lack thereof) was at the heart of many of the sector’s largest stories in 2012.

The biggest and most tragic story of the year was the unrest on South Africa’s gold and platinum mines – unrest that led to the massacre at Marikana and a wave of strikes almost unprecedented in the industry.

While the full extent of the changes wrought in that crucible are yet to be seen, it is certain that the sector has undergone profound change and will have to see much more before it can begin to recover.

The judicial commission of inquiry into the massacre being Chaired by former judge Ian Farlam, has yet to reach a verdict but it has already raised a number of questions about leadership on all sides of the issue.

Gold in 2013: climb, consolidate or collapse? – by Lawrence Williams (Mineweb.com – December 31, 2012)

December 31, 2012

http://www.mineweb.com/

While fundamentals seem to favour much stronger gold and silver prices this year, strange goings-on in the markets, should they continue, could see price rises fall short of expectations.

LONDON (MINEWEB) – Yes – its annual stick your neck out time for precious metals commentators as we try and foretell what will happen in the markets over the coming year – and precious metals price forecasting is an invidious business.

Once you go on record with a prediction it’s there for all to see – and, if you’re unlucky, to refer back to should your crystal ball prove to be wildly incorrect. So, firstly, what is this writer’s track record in predicting the gold price? Well, in 2012 not great, although far less inaccurate than most.

My prediction for the year-end gold price was $1875 – well above the final London close for the year of $1664, indeed a little more than $200 (or 12%) out. Perhaps not too bad, when one considers that in January, $2,000 was a fairly common year-end target and even the more conservative analysts were mostly predicting better things for the gold price.

For 2011, I was also rather over-optimistic with a year-end price prediction of $1760 against a final London close of $1574, despite gold soaring to well above this predicted level earlier in the year. Timing is everything in the gold price prediction game. This was 10.6% above the final figure – and even so, far closer than many were predicting.

[Timmins] City boom continues in 2013 – by Benjamin Aubé (Timmins Daily Press – December 28, 2012)

December 31, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – For the past few years, the City of Timmins has focused on both increasing industry in the traditional sectors of mining and forestry, as well as seeking out new economic and industrial opportunity.

With a new airline (Porter) coming to town in 2012, along with the development of a diversified economy, Mayor Tom Laughren and city council will be looking to keep up with a city that is growing in more ways than one.

“I think Timmins will continue to see the building boom happening for the next couple of years,” said Laughren, previewing the challenges and opportunities 2013 is promising to offer. “I think it will still be a very much the mix we have out there right now, which is industrial, commercial and residential.

“The numbers are way up there, (construction) has been climbing, and with the price of gold, that’s going to continue.

“Having said that, one of the big challenges around that is going to be housing. The two biggest challenges I hear from local businesses when I visit them to talk about economic development are attracting workers, and then finding a place for them to live.”

With parts of Southwestern Ontario being hit hard by job losses, Laughren said that one of council’s priorities will be developing a housing strategy. The mayor said it “is easy to say, but will be tougher to do.

Wooing shareholders back to gold mining [AuRico Gold] – by Pav Jordan (Globe and Mail – December 27, 2012)

December 27, 2012

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.

Barely four months into his job, AuRico Gold Inc. chief executive officer Scott Perry has had one message to investors: It’s time to get boring. Odd as that may sound, especially from a youthful CEO such as Mr. Perry, it echoes the new mantra of a gold industry that is recovering from a massive shareholder exodus that slashed values at companies large and small.

It is still more understandable given AuRico’s checkered past performances as Gammon Gold Inc. – it changed its name in June – and a stock market that is punishing gold producers who pursue growth for growth’s sake, and at the expense of shareholder value.

“The big thing I keep talking about with shareholders is we just want a portfolio that is deemed reliable, stable, consistent,” Mr. Perry said in an interview last week from offices in downtown Toronto. “So, if I was to speak crudely, it’s ‘let’s just get boring.”

AuRico’s stock price has oscillated like a yo-yo over the past four years, from lows of $2.95 a share in November, 2008, to highs of nearly $14 a share in August, 2011. These days, its shares are trading in the $7 to $8 range (they closed Dec. 24 at $7.67 a share), stabilizing after the company embarked on a radical redesign over the past year or so, from changing its name to stripping itself of underperforming assets.