Gold and Silver – Page 303 – Republic of Mining

Gold mining’s ‘Occupy’ moment – by Geoff Candy (Mineweb.com – December11, 2012)

December 11, 2012

http://www.mineweb.com/

Dissatisfaction with mining company performance is causing major institutional shareholders in mining equities to question the running of the companies in which they are invested and in some cases to demand changes in management direction – and personnel.

GRONINGEN (MINEWEB) – While the protesters that formed the heart of the Occupy movement in the US (and throughout the rest of the world) would most likely struggle to see any similarity between themselves and the fund managers and investors that buy and sell gold mining and exploration companies, one can’t help but notice a few parallels between the two.

Indeed, listening to the increasingly strident criticism of mining company management by the likes of BlackRock, Hallgarten & Co and US Global to name but three, it is not hard to imagine them siding with the 99% who want to see more of the money; disappointed as they are in the return they have so far received on their investment.

These investors feel disappointed in the management of the companies in which they have invested because they have, in many instances, failed to capitalise on the record rise in many commodity prices and, in particular gold prices and, as a result, like the Occupy protesters, have begun to make their dissatisfaction felt, albeit in a slightly more orderly fashion.

Incoming Newmont CEO is an honest-to-goodness miner – by Dorothy Kosich (Mineweb.com – December 4, 2012)

December 4, 2012

http://www.mineweb.com/

A major North American mining company announced Monday it will actually appoint a mining engineer as CEO, shattering years of CFO, lawyers, and investment banker promotions to the top spot.

RENO (MINEWEB) – With the announced promotion of Newmont President COO Gary Goldberg to President and CEO, Newmont returns to a mine operator in the top job for the first time since South African Gordon Parker was named CEO in 1986.

Could the promotion of Goldberg, who joined Newmont in December last year from Rio Tinto, to the CEO’s post be a sign that Wall Street and mining’s love affair with non-technical mining types, such as CFOs, attorneys and investment bankers as mining company CEOs, be drawing to a close?

This reporter was born in Nevada during the era of one of Newmont’s finest CEOs, metallurgist Plato Malozemoff, who occupied the top spot for an unprecedented three decades. Some of the biggest names in mining would become part of Newmont’s portfolio during his tenure as Newmont expanded around the world.

Malozemoff and Newmont geologists John Livermore and J. Alan Coope would usher in the era of the submicroscopic, disseminated gold with the Carlin Trend discovery that would revolutionize gold mining.

Quebec miners in holding pattern as province finalizes royalty, exploration rules – by Nicolas Van Praet (National Post – November 26, 2012)

November 27, 2012

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

MONTREAL — Companies mining in Quebec are expected to ship $9.6-billion worth of minerals this year, double the amount exported only five years ago. But the boom taking hold is being complicated by political uncertainty and competing visions over just how far taxpayers should go in backing companies digging valuable resources in their midst.

Quebec’s Chambers of Commerce Federation says several companies have told its officials they are currently suspending new natural resource and mining investments in the province until the Parti Québécois government finalizes a royalties regime and further clarifies exploration rules. But even established companies tapping existing mines are experiencing growing pains and finding it’s next to impossible to build definitive societal consensus for their projects.

Two particular events illustrate the difficulty miners are having in keeping Quebecers on side.

On Monday, Osisko Mining Corp., the Montreal-based firm operating Canada’s largest open-pit gold mine in Malartic near Val D’Or, confirmed that the head of the independent citizens committee monitoring the mine through to its eventual closure quit. Bernard Gauthier’s resignation came after another member of the seven-person committee said over the weekend the entire group was poised to quit on Wednesday to protest the alleged heavy-handedness of the company in their affairs.

Banro calm in face of turmoil in Democratic Republic of Congo – by Peter Koven (National Post – November 26, 2012)

November 26, 2012

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

Amid one of the the world’s most troubled regions, Simon Village maintains that it is business as usual for his company. All the same, he will admit to being a little alarmed by recent events near his operations in the Democratic Republic of Congo (DRC).

“If you remember, the M23 were just sitting in the bushes north of Goma. And then, all of a sudden, they were in Goma. It caught people by surprise,” the chief executive of gold miner Banro Corp. said in a phone interview from the DRC.

The Eastern Congo leapt into the news last week after the M23, a breakaway group of former soldiers, seized the city of Goma and promised to “liberate” the entire country.

The surprise move has de-stabilized the already-volatile border region near Rwanda, triggered fighting with the Congolese army, and displaced thousands. It is widely believed that the rebels are being backed by Rwanda, a country that has fuelled prior unrest in the Eastern Congo.

Goma is a city of one million people on the north end of Lake Kivu. Roughly 200 kilometres to the south, Toronto-based Banro continues to dig up gold at its Twangiza mine. Banro also has an operating office in Bukavu, a city on the south end of the lake that the rebels want to seize, according to reports.

Time to monitor Guatemala’s mining sector? – Al Jazeera English (November 24, 2012)

November 25, 2012

http://www.aljazeera.com/

Canadian company Goldcorp is accused of violating human rights and damaging the local environment around Marlin mine. A Canadian mining company stands accused of violating human rights and damaging the environment in Guatemala.

As the price of gold has rocketed amidst global economic uncertainty, Goldcorp argues it is sharing its record revenues with an impoverished community by providing jobs and economic development.

The company owns the Marlin mine in Guatemala, which was opened in 2005 despite the objections of indigenous communities.

Guatemala has ratified an international convention requiring local consent for such projects; but this did not stop it from proceeding. Nor did it stop the World Bank from giving GoldCorp a $45m loan for the mine in contravention of its own guidelines on local consulatation.

Future uncertain for [Timmins Goldcorp] mine pit park – by Benjamin Aubé (Timmins Daily Press – November 16, 2012)

November 17, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Now that Goldcorp is only awaiting the Ministry of Environment’s approval to start mining the Hollinger open pit near downtown Timmins, the long-term future of the site is still up in the air.

The general understanding had been that a publicly accessible park and lake would be left behind in 10 years when Goldcorp is scheduled to end its mining operations at the Hollinger.

But now that the project is starting to get into gear, some Timmins residents want concrete answers rather than vague promises.

It’s important to note that Goldcorp representatives have been insistent on the fact that the Site Plan Control Agreement between the company and the city is separate from the Subsequent Land Use Plan, which is still up for public input as the project moves forward.

The section on the company website relating to the Hollinger project explains that, “Detailed studies have determined that the removal of mine hazards through filling or mining of historic mine workings would allow for partial to full future use of the Hollinger property.”

Skittish investors abandon Iamgold – by Martin Mittelstaedt (Globe and Mail – November 15, 2012)

November 15, 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.

Iamgold Corp. shares sagged nearly $3 or more than 19 per cent in active trading, after the gold producer reported weaker-than-expected third-quarter earnings and announced a major reduction in its production outlook for next year.

The stock tumble follows the recent pattern in the gold-mining industry, where companies that disappoint investors have seen their stocks get crushed as skittish owners rush for the exits.

Operating profit in the quarter fell to 16 cents (U.S.) a share, down almost half from 30 cents earned in the same period a year ago. The consensus estimate among analysts had been 24 cents.

“Execution in the gold space is very important and when you mis-execute, investors shoot first and ask questions later,” said Pawel Rajszel, an analyst at Veritas Investment Research Corp. who slapped a sell recommendation on Iamgold Wednesday.

Iamgold, which has mines in Suriname in South America and in West Africa, said gold output this year will be “at the lower end” of its guidance of 840,000 to 910,000 ounces; for next year the company is expecting between 875,000 to 950,000 ounces, a major reduction from previous forecasts that ranged up to 1.1 million ounces.

Pierre Lassonde’s Keynote Address at the Denver Gold Forum (September 10, 2012)

November 14, 2012

Hosted each September in Colorado, the Denver Gold Forum (DGF) is the world’s most prestigious precious metal equities investment forum. The Denver Gold Forum showcases four-fifths of the world’s publicly traded gold and silver companies when measured by production and reserves.

For a video presentation of the speech, click here: http://www.gowebcasting.com/events/denver-gold-group/2012/09/10/keynote-address/play/stream/5084

Pierre Lassonde Speech

Thank you, Tim. It’s a great pleasure to be here. I’ve been coming to the Denver Gold Show for as long as it’s been around, so 20-some-4 years, I guess. And it’s always one of the preeminent forums for our industry.

So, I thought what I would do today is I’ve entitled my presentation “It Was the Best of Times, It Was the Worst of Times” and it has to do, really, with where we are in the industry. When you look at the last 30 years, if you want, this bull market in gold started in 1971; gold went from $35 to $800 in the 70’s.

You can see it took about seven years for the industry to respond, but then respond it did. Production then more than doubled over the following 20 years while the gold price kept going down for 20 years, interestingly enough. But we see the same pattern again. We’ve had seven years of downturn in the production, but then finally last year in 2011 we are back up now at the same level as we were back in 2000.

Neighbours feel pit decision less than golden – (Timmins Daily Press – November 13, 2012)

November 14, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The location of the Hollinger pit continues to polarize opinions regarding Goldcorp’s mining project on the site.

With no assurance in place to protect potential property devaluation or damage over the next decade of mining on the site, nearby residents and business owners are still fuming over city council’s decision to green-light the project on Monday.

“I think there were methods that could have been put in place to allow everyone to benefit,” said Lorne Feldman, owner of Feldman Timber and the industrial development it’s located in, off Algonquin Blvd. E. Businesses in the development include Shoppers Drug Mart, A&W and the Timmins Family Health Team clinics.

“That could have provided the protections necessary to adjacent land owners, and also allow this very worthwhile project to move forward.”

Rick Dubeau of the Hollinger Project Community Advisory Committee (HPCAC) and Bill Hughes, owner of Senator Place apartments, have been raising concerns for the past few weeks in city council, most recently in presentations prior to Monday’s decision.

Osisko buying Queenston Mining in all-stock deal – by Craig Wong (National Post – November 13, 2012)

November 13, 2012

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

Canadian Press – Osisko Mining Corp. signed an all-stock deal Monday valued at $550-million to buy Queenston Mining Inc. and its flagship Upper Beaver project in Ontario’s Kirkland Lake region.

Osisko president and chief executive Sean Roosen said work on the Upper Beaver project is coming to a critical stage in its development. “We feel this is the perfect time for us to bring our mine permitting and development teams into the project to back the plan and to make Upper Beaver a successful mine,” Mr. Roosen said on a call with analysts.

“We also have the ability to fund Upper Beaver development from internal cash flow so we don’t anticipate any further dilution as we evolve these projects.”

Queenston also owns several other gold properties in the Kirkland Lake gold camp area as well as interests in projects in Quebec, Manitoba and elsewhere in Ontario.

Queenston president and CEO Charles Page said the Upper Beaver project has the potential for four million ounces of gold. “Osisko’s proven development team can certainly maximize the potential of the Upper Beaver project,” he said.

[Timmins] Council approves [Goldcorp] pit plan – by Benjamin Aubé (Timmins Daily Press – November 12, 2012)

November 13, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – City council unanimously approved the site plan agreement for the Hollinger Project on Monday, giving Goldcorp formal permission to proceed with the open pit mining operation that was first proposed back in 2007.

The decision did come after Bill Hughes, owner of the Senator Place apartments, and Rick Dubeau of the Hollinger Project Community Advisory Committee (HPCAC) expressed concerns they said are still being raised by the public.

Hughes, representing reportedly close to 250 people living at the Senator apartments and other locations within 300 metres of the pit, said that there are still many questions left unanswered about the project, despite the many reports and committees that have raised concerns.

“The plan of action should be to step back, consider what (HPCAC) has said, what I have said, what engineers have said, what environment lawyers have said,” expressed Hughes, when asked what he thought the proper course should be.

He asked, “Are we there or are we not there?”, expressing confusion as to whether any action was being taken despite the city’s comments that the public was being fully engaged in the process.

NEWS RELEASE: OSISKO ANNOUNCES FRIENDLY ACQUISITION OF QUEENSTON

November 13, 2012November 12, 2012

November 12, 2012

MONTREAL, QC and TORONTO, ON – November 12, 2012. Osisko Mining Corporation (“Osisko”) (TSX:OSK) (FRANKFURT:EWX) and Queenston Mining Inc. (“Queenston”) (TSX:QMI) (OTCQX:QNMNF) are pleased to announce that they have entered into a definitive agreement (the “Agreement”) pursuant to which Osisko will acquire, by way of a court-approved plan of arrangement, all of the issued and outstanding common shares of Queenston. Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 230km2 of prime exploration lands on trend with Osisko’s flagship Canadian Malartic mine.

Pursuant to the terms of the Agreement, Queenston shareholders will receive 0.611 of an Osisko share for each common share of Queenston held, implying an offer of C$6.00 per share based on Osisko’s closing price on the Toronto Stock Exchange (“TSX”) on November 9, 2012. The offer represents a 45% premium to Queenston’s 30-day volume-weighted average price (“VWAP”) for the period ending November 9, 2012.

The transaction values Queenston’s equity at approximately C$550 million on a fully diluted in-the-money basis and implies an enterprise value of approximately C$400 million. Pro forma the transaction, Queenston shareholders will own approximately 12% of Osisko (based on fully diluted in-the-money shares outstanding).

Troubled Pascua Lama gold project experiences yet another setback – by Dorothy Kosich (November 12, 2012)

November 12, 2012

http://www.mineweb.com/

Chile’s mine health and safety regulator has requested a number of studies be presented for its consideration before it will allow the resumption of pre-stripping activities at Barrick’s Pascua Lama.

RENO (MINEWEB) – The costs and delays at the troubled Pascua Lama project–which already contributed to the dismissal of former Barrick CEO Aaron Regent–continue to mount as Chilean authorities halted construction work at portions of the project due to concerns about the health of workers at the site.

However, in a statement issued Sunday, Barrick said the order “only affects activities related to pre-stripping in Chile.” “Major construction activities on the Chilean side of the project, including work on the ore tunnel, the crusher and the camp will continue uninterrupted,” Barrick said in a news release. “Construction activities in Argentina are not impacted.”

“At this time, pre-stripping is not a critical path item in the construction schedule and a temporary halt is not anticipated to impact the overall project schedule or cost estimates,” the company said.

The Chilean newspaper La Tercera reported that safety inspectors from Chile’s National Geology and Mining Service (Sernageomin) visited Pascua Lama on October 24 and found there was an excess of fine particulates in suspension in the air.