Gold and Silver – Page 305 – Republic of Mining

Fond farewell to an icon, friend [Hemlo co-founder John Larche] – by Benjamin Aubé (Timmins Daily Press – October 12, 2012)

October 13, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – In the days after his death, he is being described by many as a hero and a legend, as a man of generosity and humility. But up until his final days, John Larche only ever saw himself as a simple prospector.

On Friday, Larche was laid to rest at the Timmins Memorial cemetery after a funeral mass at Église Notre-Dame-de-la-Paix. “My father’s biggest dream in life was not mining related,” said Larche’s son Paul. “His biggest dream was to raise his family with values that would carry them well through life so that they could realize happiness and the full potential of their aspirations, whatever they may be.

“Values you know my father for; honesty, integrity, humility, and a moral compass that pointed as true North as his prospectors compass.” Larche died peacefully on Thanksgiving Monday, Oct. 8 at the age of 84. Pre-deceased by his first wife, Violet, Larche is survived by his wife Dolores, his five children, Paul, David, Nicole, John and Lise, as well as his 16 grandchildren.

He was known largely for founding the famous Hemlo Gold Mine in the early 1980s near Marathon, Ont. with fellow prospector and business-partner Don McKinnon, who died just two months ago.

In 1983, Larche was named co-recipient of the Prospectors and Developers Association of Canada’s Prospector of the Year Award. From 1984-1988, he presided over the Prospectors Association of Canada and became the country’s top spokesperson in exploration.

Goldcorp fined $350,000 [for fatal mining accident] – by Ron Grech (Timmins Daily Press – October 12, 2012)

October 12, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Goldcorp Canada has been fined $350,000 in connection with a fatal accident that occurred underground at the Hoyle Pond gold mine in March 2011.

The company pleaded guilty in a Timmins court Thursday to a Ministry of Labour charge of failing to provide sufficient information, instruction and supervision to protect the safety of its workers.

The charge stems from an incident in which David Yuskow Sr., a 57-year-old electrician who worked at the mine, was crushed by a scoop tram at the 1,390-foot level.

Wes Wilson, special prosecutor for the Ministry of Labour, said the mine had a procedure for alerting scoop tram operators about “pedestrians” working nearby but, at the time, it was not enforced in the area where the accident occurred.

“The procedure required the placement of signs and amber lights to alert equipment operators to the presence and proximity of workers,” Wilson explained. “Signs and lights were readily available to the workers at the time of the incident.”

Rainy River district rediscovers mining – by Ian Ross (Northern Ontario Business – October 2012)

October 11, 2012

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

What’s old is new again. For decades, the Rainy River district in northwestern Ontario had no operating mines even though the Fort Frances area held a rich legacy of gold mining dating back to the mid-1800s.

With 27 past-producing mines on the books, more than half of Ontario’s gold production came from here between 1890 and 1910. Small wonder as gold prices have shot up that the district has become an exploration hot bed. Now a new generation is learning all over again what the mining industry is about.

“It’s a forgotten industry for a lot of people here because pulp and paper, and logging have ruled the economic paradigm here for several decades,” said Kyle Stanfield, director of environmental sustainability with Rainy River Resources.

His company is advancing toward production of its flagship Rainy River Gold project, located in Chapple Township, 65 km northeast of Fort Frances. Part of the company’s outreach is teaching the locals how the mining cycle works.

World’s richest manCarlos Slim bets on Mexican gold mining – by Dorothy Kosich (Mineweb.com – October 10, 2012)

October 10, 2012

www.mineweb.com

Billionaire Carlos Slim’s Minera Frisco is acquiring Mexican assets belonging to AuRico Gold for $750 million.

RENO (MINEWEB) – Little more than a month after AuRico Gold announced the Ocampo mine would lose at least 40,000 to 45,000 ounces of gold equivalent production this year and as much as 50,000 GEO in 2013; AuRico announced it would sell Ocampo and adjacent exploration properties to Carlos Slim’s Minera Frisco SAB

Billionaire Slim’s third-largest holding, Frisco–spun off last year from his holding company Grupo Carso SAB–will acquire Ocampo, the exploration projects Venus and Los Jarros, all located in the Chihuahua State and a 50% interested in AuRico’s Orion advanced development project in Nayarit State, Mexico, for a total cash consideration of $750 million.

“Upon closing of the transaction, the company expects to use the net proceeds from the transaction to eliminate certain debt obligations, invest in internal growth opportunities, provide sufficient working capital and liquidity for the company going forward and to undertake a significant return of capital to shareholders,” said AuRico in a press release. The transaction is expected to close in December.

Ocampo’s problems stemmed from what AuRico said is an “unusually high turnover of skilled labor,” as well as “significantly reduced underground ore development in the Northeast underground mine.”

Mining legend built legacy by giving back [John Larche dies] – by Kyle Gennings (Timmins Daily Press – October 8, 2012)

October 9, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Timmins lost one of the golden pillars of its community this Thanksgiving Day. John Larche died of natural causes, surrounded by his family at Timmins and District Hospital on Monday morning. He was 84.

It was the final page in a life highlighted by a long list of accomplishments which changed the face of the prospecting and mining industry the world round; it was the final page in a life that saw both hardship and success, one that was built on giving back, a life that cemented him in the memory of the City with the Heart of Gold

Larche was one of the true legends of the Porcupine Camp, as one of Canada’s most successful prospectors and in term of generosity in the community. He became involved in exploration in 1955, as an independent prospector and contractor.

He remained active in the industry until shortly before his death. Beginning in the late 1960s, he was elected president of the Porcupine branch of the Prospectors and Developers Association for 17 consecutive terms.

“He was a long-time friend,” said Dean Rogers, the association’s current president. “John was one of the stalwarts of the Porcupine Camp’s second generation, a true legend”

Will the Parti Québécois Alter Québec’s Mine-Friendly Policies?: Eric Lemieux – by Brian Sylvester (The Gold Report – October 5, 2012)

October 6, 2012

http://www.theaureport.com/

A plan to build roads into mining projects. Tax breaks for junior mining companies. Does the return to power of the Parti Québécois signal the end to the province’s mining-friendly policies? Unlikely, according to Eric Lemieux, equity analyst with Laurentian Bank Securities. In this exclusive interview with The Gold Report, Lemieux says that even if the PQ tweaks current policy, it will take time, and he believes there are plenty of good stories to tell and invest in before that happens.

The Gold Report: Eric, you primarily cover mining companies in Québec, one of Canada’s most mining-friendly provinces. However, last month the Parti Québécois (PQ) won a minority mandate. Are the glory days for Québec’s mining sector over?

Eric Lemieux: Without saying the glory days are over, the election of the Parti Québécois will definitely put things on hold. The PQ has a very pro-environment and anti-mining perspective based on the personal convictions of certain ministers.

I think the PQ will change some of the priorities in Québec. I do not know if it will turn out to be effectively anti-mining. I think its people will just want to do things differently or give the perception that they are doing things differently. Recall the PQ held a very pro-ecological, anti-mining electoral stance that went in-line with the “printemps érable” (Maple Spring Arising) with the student protests.

MPs arrested over Canadian mine protest – by Olga Dzyubenko (Globe and Mail – October 5, 2012)

October 5, 2012

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.

BISHKEK — Reuters – Kyrgyzstani police on Thursday arrested three members of parliament who had led a crowd that tried to storm government headquarters in a protest over a Canadian-owned gold mine, Centerra Gold.

Wednesday’s clashes between police and supporters of the opposition Ata Zhurt party in the former Soviet republic were the most violent in the capital, Bishkek, since the April, 2010, revolt that ousted then-president Kurmanbek Bakiyev.

The protesters want the mine, crucial to Kyrgyzstan’s fragile economy, to be nationalized. The three parliamentarians – Kamchibek Tashiyev, Sadyr Zhaparov and Talant Mamytov – are being held on suspicion of trying to seize power. Prosecutors have 48 hours to decide whether to charge them.

On Thursday, about 1,000 supporters rallied in the main square of the southern city of Jalalabad, their power base, to demand their release. There was no violence. “Parliament, the President, the government should resign because they are not resolving the Kumtor issue,” one demonstrator shouted through a megaphone.

Rebounding gold miners ‘have got religion’ – by Pav Jordan (Globe and Mail – October 4, 2012)

October 4, 2012

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

Buoyed by a new mantra of cost discipline, Canadian gold miners are starting to catch the wave of booming bullion prices after a summer of woe.

From major producers like Barrick Gold Corp., Goldcorp Inc. and Kinross Gold Corp. to junior explorers, gold mining stocks are booming, propelled by a shift in the industry to restrain spending and focus on profits and cash flow, rather than pursue reckless strategies that favoured growth at any cost.

The spot price of gold danced around $1,779 (U.S.) an ounce on Wednesday, or about seven times where it was a decade ago, when central banks were bailing out of the metal. Today, banks are piling back into gold to hedge their U.S. dollar reserves as forecasts for gold prices climb above $2,000 an ounce. And gold stock prices are beginning to catch fire.

Drastic shifts in corporate strategies are helping gold companies and their shares, repairing a disconnect between their valuations and the price of the metal. Risk-weary investors had favoured exchange-traded funds (ETFs) for exposure to gold, rather than shares of the miners themselves.

In gold, iron ore they trust – by Marilyn Scales (Canadian Mining Journal – October 2, 2012)

May 4, 2015October 3, 2012

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Mining companies appear to be having an easier time attracting investors recently – particularly if they have a gold or iron ore project. Both commodities have been hot, hot, hot the past year, and developers are prospering.

Labrador Iron Mines Holdings of Toronto has arranged at $30-million bought deal public equity financing. The company calls itself “Canada’s newest iron ore producer” having begun production at its James direct shipping ore iron mine earlier this year. Now LIM will issue 30 million common share at a price of $1.00 each. The deal is underwritten by Canaccord Genuity that is also entitled to an overallotment of 4.5 million shares. The net proceeds are to used for working capital and general corporate purposes.

Premier Gold Mines of Thunder Bay, ON, has arranged a $58.5 million deal consisting of a bought deal public offering and flow-through shares. The company has a number of active exploration projects in Ontario and Nevada. A syndicate of underwriters led by RBC Capital Markets has agreed to purchase 6.58 million common shares at $6.08 each plus 2.61 million flow-through shares at $7.08 each. The underwriters have been granted an overallotment option of 15%. Premier will use the net proceeds of the flow-through shares on its Canadian projects; the balance could be spent in the United States.

Boozy temperance tales [Timmins history] – by Karen Bachmann (Timmins Daily Press – September 28, 2012)

September 29, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Karen Bachmann is the director/curator of the Timmins Museum and a local author.

TIMMINS – Hope you enjoy the quick snapshot of life in Timmins in 1917. To begin with, change seems to have been the order of the day as the Tisdale Council was swept out of office and replaced with an entirely new slate.

Sylvester Kennedy won what was described as a “landslide” – a 37 vote majority, over the incumbent E. Dickson. The campaign was described as “vigourous.” Cards, flyers and “counter-irritants” were freely used by all those running. The public benefited from hearing the politicians’ views at no less than three public debates held in Moneta, Schumacher and South Porcupine.

To everyone’s relief however, after the ballots had been counted and the results were known, both the new mayor and the retiring one celebrated together and pledged to continue to work for the betterment of the community.

That’s what I call a breath of fresh air! As for local politics in Timmins, no election was held as three men running for council positions and one running for mayor pulled out before election day. Apparently, it had been discussed amongst all the candidates that this was the best course of action for the community.

Barrick Gold closes Peruvian mine for one day after violent clashes – by Vanessa Lu (Toronto Star – September 21, 2012)

September 21, 2012

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Barrick Gold is resuming operations Friday at its Pierina mine in Peru after violent clashes this week between police and nearby villagers left one person dead and four injured.

In an official statement from its Peruvian unit, Barrick, which is the world’s largest gold producer, said its mine operations were suspended Thursday out of mourning for “the unfortunate event.” The dispute centres on a disruption in the local water supply, which Barrick says is out of its control, blaming drought conditions.

The open-pit mine is high in the Andes in north-central Peru at an altitude of 4,100 metres above sea level. While it was once one of Barrick’s bigger mines, Pierina produced 152,000 ounces of gold in 2011, out of a company-wide total of 7.7 million.

Mining is central to Peru’s economy. The country is a key producer of gold, copper, silver and zinc, but opposition has long existed from locals, who worry about environmental problems and possible contamination of the water supply.

B2Gold to buy Philippine miner for $1.1-billion – by Pav Jordan (Globe and Mail – September 20, 2012)

September 20, 2012

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 small Vancouver miner has struck the first major gold deal in months, marking what may be the start of a new wave of buying in the sector as bullion prices rise within reach of record highs from a year ago.

B2Gold Corp., which prides itself on mining for gold where others do not, said on Wednesday that it reached a $1.1-billion all-stock deal to acquire CGA Mining Ltd., owner of the largest operating gold project in the Philippines.

It is offering 0.74 B2Gold shares for each share of CGA, a 26 per cent premium to CGA’s closing price as of Sept. 17. Gold prices are near $1,800 (U.S.) an ounce, just off record levels near $1,900 an ounce a year ago.

“I think in a more buoyant market like we have now, there is a greater chance of things getting done,” said Jens Mayer, co-head of investment banking at Canaccord Genuity Corp., which advised B2Gold on the deal. “People are getting accustomed to the new world in terms of valuations.”

The B2Gold/CGA deal is one of the largest involving a Canadian company in recent months, adding some shine to what has been a lacklustre year for deal making in the sector.

Goldcorp says industry primed for mergers – by Liezel Hill (Toronto Star – September 19, 2012)

September 19, 2012

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Bloomberg News – Goldcorp Inc., the world’s second- largest producer of the metal, said mining acquisition targets are looking more attractive as tougher financing conditions have depressed share prices.

“The development-company valuations have come down to where, at least on paper, it looks like there’s some opportunities,” Chief Executive Officer Chuck Jeannes said in a recent interview. “There’s a lot of looking going on.”

Meanwhile Tuesday, Goldcorp said it has signed a deal to sell part of its stake in Primero Mining Corp. in a secondary offering worth $44.2 million. The big gold miner said a syndicate of underwriters have agreed to buy 8.4 million shares of Primero at a price of $5.25 per share.

Exploration and development companies, or so-called juniors, underperformed the large gold miners last year after they struggled to raise funds and investors shunned risky assets. The juniors are on average lagging the seniors again this year, even after rising 25 percent since hitting a two-year low on June 28. The 74 companies in a Bloomberg Industries index of gold explorers now trade at an average 1.54 times book value, versus a three-year average of 2.58.

Ivory Coast plans windfall tax on gold miners’ profits – by Loucoumane Coulibaly (Globe and Mail – September 14, 2012)

September 17, 2012

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.

ABIDJAN — Reuters – Ivory Coast plans a windfall tax of 19 per cent on gold mine profits to share in the benefits from soaring world prices for the metal. The decision, revealed in a government document, sets the scene for a possible dispute with foreign companies building up the sector.

West Africa-focused Randgold Resources Ltd., Australia’s Newcrest Mining and Toronto-listed La Mancha Resources all operate mines in the country. In August, the government granted production permits to Canada’s Endeavour Mining Corp. and Occidental Gold, a unit of Australia’s Perseus Mining Limited.

The document, seen by Reuters on Friday, also establishes a rate of 13 per cent, though it does not specify in what circumstances it will be applied. Under the proposal, submitted on Wednesday and adopted during a cabinet meeting, the West African nation will set an indicative cost of production at $615 (U.S.) per ounce, with profits taxed at a rate of 19 per cent.

“The price of gold, which was around $300 per ounce in 2002, is today above $1,700, or practically a six-fold increase without any comparable increase in production costs,” read the text of the proposal obtained from government spokesman Bruno Kone.