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Gold and Silver

Barrick shakeup highlights risk fears – by Pav Jordan, Eric Reguly, Jacquie McNish (Globe and Mail – June 7, 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.

Toronto, Rome — The dismissal of Barrick Gold Corp’s chief executive officer over the company’s long-stagnant stock price signals deepening concerns that a year-old, multibillion dollar bet on an African copper project has turned sour.

Toronto-based Barrick, the world’s biggest gold miner, said on Wednesday it ousted president and CEO Aaron Regent less than four years into the job, a period during which the company’s shares barely moved on the Toronto Stock Exchange despite a huge rally in the price of gold.

“We are fully committed to maximizing shareholder value, but have been disappointed with our share price performance,” said Peter Munk, who founded Barrick and remains the driving force of the company.

Barrick made a bold move into the copper market last year with its $7.3 billion acquisition of Equinox Minerals Ltd., but the deal alienated many investors who saw it as an expensive departure from the company’s focus on gold. Barrick shares dropped sharply on news of the deal.

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Barrick fires chief Regent; CFO appointed to top job – BNN.ca staff (Business Network News – June 6, 2012)

http://www.bnn.ca/Home.aspx

Aaron Regent is out as chief executive of Barrick Gold, and CFO Jamie Sokalsky has been appointed to the top job. The company cites its disappointing share performance as the main reason for the change, while sources tell BNN the move was a result of conflicting strategies on the miner’s future direction.
 
“We are fully committed to maximizing shareholder value, but have been disappointed with our share price performance. Our Board has every confidence in Jamie’s experience and commitment to take our company forward,” said Peter Munk, Barrick founder and chairman, in a statement.
 
But, a source close to the company tells BNN’s Howard Green that the real issue was corporate strategy. “This wasn’t around performance of the company, this was around the direction of the company,” the source, who asked not to be identified, said.

Recent moves — such as dividend hikes — to improve share performance have failed to significantly boost the share price.

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Barrick ousts CEO in major shakeup – by Peter Koven (National Post – June 6, 2012)

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

In a surprise move, Barrick Gold Corp. announced it is replacing chief executive Aaron Regent as its share price continues to underperform.
 
Chief financial officer Jamie Sokalsky has been named the new CEO in the shakeup. As well, Barrick director John L. Thornton has been appointed co-chairman with Peter Munk. Barrick provided few details about why it decided to make this dramatic move, though Mr. Munk pointed to the weak share price.
 
“We are fully committed to maximizing shareholder value, but have been disappointed with our share price performance. Our board has every confidence in Jamie’s experience and ability to take the company forward,” he said in a statement.

Mr. Munk has constantly praised Mr. Regent’s actions in the past, so this move caught investors off-guard. Despite the weak share performance, Mr. Regent was well regarded among investors.

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NEWS RELEASE: CFO Jamie Sokalsky Appointed Barrick CEO; John L. Thornton Assumes Role of Co-Chairman with Barrick Founder Peter Munk

 June/06/2012
 
TORONTO — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) announced today that its Board of Directors has appointed Executive Vice President and Chief Financial Officer Jamie Sokalsky as President and Chief Executive Officer, replacing Aaron Regent. Mr. Sokalsky has also replaced Mr. Regent on Barrick’s Board of Directors.

In addition, John L. Thornton, currently a Barrick Director, has been appointed Co-Chairman of Barrick’s Board of Directors. These leadership appointments are effective immediately.
 
“On behalf of our Board, I would like to thank Aaron for his significant contribution to Barrick’s development. We are fully committed to maximizing shareholder value, but have been disappointed with our share price performance. Our Board has every confidence in Jamie’s experience and commitment to take our company forward,” said Peter Munk, Barrick’s Founder and Chairman.
 
Mr. Sokalsky said: “I feel enormously privileged to take on this role at Barrick, a company that combines operational excellence and financial strength with a track record of successful execution. My focus will be on maximizing shareholder value and our mission of superior performance.”

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OMA’s Wesdome’s new Mishi pit pumps-up prospects in Algoma

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.

New mines in Ontario can come in all shapes, sizes and commodities — Earlier this week, OMA member and gold producer Wesdome officially opened the Mishi Pit, which is being integrated into the company’s precious metal operations in the Wawa area — A group, including company directors, Wesdome investors, financial analysts and employees participated in the ceremony, which included a controlled blast. . . .

Though this addition to Wesdome assets, which is expected to account for 9,000 ounces of gold in 2012, may be modest by some standards, its positive contribution to the local employment scene is quite significant.  The Mishi Pit is located about two kilometres from the company’s Eagle River Mill and 16 kilometres from its larger Eagle River underground gold mine.

The opening of the Mishi Pit itself has directly created 40 new jobs itself adding to the 240 employees at the Eagle River Mine.  Incorporating Mishi ore into the Eagle River mill has created a second shift at the processing plant and led to the hiring of additional employees.

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Romanian mining town suffers from its riches – by Luiza Ilie (National Post/Reuters – May 31, 2012)

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

ROSIA MONTANA, Romania — Nature has carved a humbling landscape of deep river valleys and reddish peaks in a corner of the Carpathian mountains in western Romania.
 
Rosia Montana town, made up of 16 villages that dot the slopes along the river Rosia, has hundred-year-old churches and houses, cemeteries and ancient Roman mine galleries.
 
It also has gold. But for many who live here, that is more of a bane than anything else. Canada’s Gabriel Resources wants to build Europe’s largest open cast gold mine in Rosia Montana, a 15-year quest that has put the area at the centre of a national debate between heritage and development.
 
The mine could bring billions of euros in taxes and potentially thousands of jobs to an economically depressed region. But it will also require blasting four mountain tops, relocating the community and flooding one village to create a 300-hectare pond for chemical waste held back by a 180-metre-high dam.
 
On Friday, shares of Gabriel rose more than 20% after Romania’s economy minister said he was convinced the Rosia Montana project would start this year. The mine has the support of most of the 2,800 locals, the mayor and county administration and President Traian Basescu, eyeing the bounty the investment will bring.

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Homestake [South Dakota gold mine] grand dame’s body donated to science – by Dorothy Kosich (Mineweb.com – May 31, 2012)

www.mineweb.com

One of the ultimate examples of the sustainability of mines-the nation’s first deep underground science lab-was formally unveiled deep in the caverns of the former Homestake gold mine.

RENO (MINEWEB) –  Nearly five years ago Mineweb told readers about plans to transform the former grand dame of U.S. gold mining, the Homestake gold mine in Lead, South Dakota, into the nation’s first national deep underground science laboratory.
 
On Wednesday, South Dakota’s Sanford Underground Research facility formally unveiled the new 4,850-foot deep Davis campus, which will seek to unravel the mystery of dark matter, and also search for a rare form of radioactive decay.
 
The Large Underground Xenon Dark Matter Search Experiment or LUX experiment, considered the world’s most sensitive and largest dark-matter detector–is the culmination of the work of 70 scientists and 14 institutions over the past four years.
 
LUX physicist Simon Fiorucci told a local TV station, “There is a lot of mass that does not emit light that we cannot account for.”

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[Timmins gold] Mine lies in path of blaze – by Kyle Gennings (Timmins Daily Press – May 25, 2012)

The Daily Press is the city of Timmins broadsheet newspaper.

Flames were expected to cross two highways overnight

The Gogama-area forest fire was expected to cross two highways 144 and 101 overnight and continue heading in an easterly direction.

“The fire has increased in size over the past few days,” said Joel Legasy, fire management supervisor for the Ontario Ministry of Natural Resources Timmins unit. “The precipitation we saw through Monday night and into Tuesday morning slowed the fire temporarily, but by yesterday (Wednesday) afternoon the fuel dried out and the fire became more intense.”

The significant growth seen on Thursday prompted the Ontario Provincial Police to close escorted access to the Old Mill Campground via highway 101, around 1 p.m.

“We can no longer escort anyone through to Foyelet,” said OPP Const. Marc Depatie. “The high winds, heavy smoke and heat are such that I cannot safely condone the travel for residents or for my fellow officers.”

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[Saskatchewan] Gold mining set to increase – by Trilby Henderson (Regina Leader-Post – May 19, 2012)

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

With its massive production potential, northern Saskatchewan is securing its seat as one of the best locations in the world to mine gold. For the province’s gold production companies, this fact comes as no surprise as they find themselves on pace to achieve major production milestones in 2012.
 
Neil McMillan, president and CEO of Claude Resources, said the company is on track to draw its one millionth ounce of gold from its Seabee Gold Operation by August this year.
 
“A one-million-ounce ore body is considered a world-class ore body,” McMillan said. “But in many respects, we think we’re just getting started because we have the potential to expand that producing asset from 50,000 ounces per year, probably into the 100,000 ounces per year range in the next three to four years.”
 
Claude first began commercial production at the Seabee Gold Mine, located about 125 kilometres northeast of La Ronge, in late 1991 and has been in constant operation since then, churning out about 50,000 ounces of gold each year.

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Timmins honours King of the Klondike, Sean Ryan, at gala dinner – by Len Gillis (Timmins Times – May 17, 2012)

http://www.timminstimes.com/

Ryan, John Larche and Don McKinnon honoured as part of 100th anniversary celebration

Some of the most famous prospectors in Timmins, indeed in all of Canada, were honoured this week at the Gala Mining Dinner hosted by the Porcupine Miners Memorial Committee to help celebrate the 100th anniversary of Timmins.

Fittingly the event was held at the McIntyre ballroom Tuesday night, named for the the mine discovered by another of the city’s legendary mine finders. But the evening was dedicated to some of the more modern prospectors who have made their mark in other parts of Ontario and other parts of Canada, but have always remained true to their Timmins roots.

The tributes were presented in recognition of the city’s 100th anniversary and also because later this year, the city will unveil three larger-than-life bronze statues to commemorate the mining discoveries by Jack Wilson, Benny Hollinger and Sandy McIntyre, the prospectors who found the Big Three gold mining properties in Timmins, The Dome Mine, The Hollinger Mine and The McIntyre Mine.

It made the evening the right setting to honour three modern-day Timmins prospectors whose names have become synonymous with success in finding gold; John Larche, Don McKinnon and Sean Ryan.

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Special tribute to prospecting legends – by Kyle Gennings (Timmins Daily Press – May 16, 2012)

 The Daily Press is the city of Timmins broadsheet newspaper.

Porcupine Prospectors and Developers Association honour trio of mining heroes

For many, the idea of prospecting goes hand in hand with the gold rushes in the early 1900s. Colourless men in britches panning the rivers outside of Dawson City, wearing wide brimmed hats keeping the sun off of their sweat stained backs.

However, prospectors have transcended the years and can still be found roaming the bush, the mountainsides and the valleys of Canada staking claims, seeking gold and above all, the big pay out from the mining companies. While the technology has changed drastically, the principle of hard work hasn’t.

Which is why the Porcupine Prospectors and Developers Association honoured three men with lifetime achievement awards for being at the forefront of their peers — they are mine finders. Don McKinnon, John Larche and Shawn Ryan were awarded for their prowess as gold finders, and more than that, their ability to provide mining companies a reason to dig deep.

“Prospectors live a hand-to-mouth existence,” said Gregory Reynolds, former managing editor of the Timmins Daily Press. “Never having a steady pay cheque and never knowing where in Canada the next contract will take them.”

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[Yukon] Gold rush – by Jason Unrau (National Post – May 12, 2012)

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

TheYukon mining boom shows no signs of slowing,but environmentalists fear forthe safety of the Peel watershed

At the turn of the 19th century it played host to the famed Klondike Gold Rush that drew thousands to the rugged wilderness in search of riches, but now the Yukon entertains a newer, more modern kind of mining rush.

For the past two years, mineral exploration here has been through the roof, nearly half-a-billion dollars spent searching for the next motherlode of gold, silver, copper, zinc, molybdenum or tungsten and nearly 200,000 claims staked.

“From July [2011] I flew 10 months worth of hard staking and we probably singlehandedly staked 25 to 30,000 claims,” said Ben Drury, a pilot with Horizon Helicopters, one of the many charter services in the Yukon that benefited from the staking craze.

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Kinross, gold producers vow to fight back as shares tumble despite rising prices – by Pav Jordan (Globe and Mail – May 10, 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.

Canada’s big gold miners are under siege in the markets, their shares tumbling even as bullion rides high, and they’re vowing to fight back.

“I’m a shareholder and my family is a shareholder, and we’re determined to change that around,” Tye Burt, chief executive officer of Kinross Gold Corp., declared Wednesday, referring to the company’s languishing stock price.

Mr. Burt and others in the industry are lamenting the gap between the value of gold stocks and the price of bullion, which is holding near-record highs after a surge that is almost a decade old now.

Kinross shares are down 60 per cent in the past eight months. Barrick Gold Corp. (ABX-T37.650.942.56%), the world’s biggest producer, has seen its stock sink 34 per cent since September, while smaller rivals such as Yamana Gold Inc. (YRI-T13.750.332.46%) and Iamgold Corp. (IMG-T10.80-0.07-0.64%) have suffered declines of 27 per cent and 55 per cent respectively from their 52-week highs.

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Kinross Gold’s Mauritanian desert storm -by Nicolas Johnson (Globe and Mail – May 8, 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.

The Tasiast gold mine in the Mauritanian desert was the biggest acquisition in Kinross Gold Corp.’s 19-year existence and one of the biggest takeovers in the history of the gold industry.

It was to have been the centrepiece of the Kinross portfolio, transforming the Toronto-based company into one of the fastest-growing gold miners in the world.

Instead, the $7.1-billion acquisition of Red Back Mining Inc. has bludgeoned Kinross’s stock and balance sheet. The company took a $2.49-billion writedown in February, angering investors and leaving the company’s chief executive officer battling to retain his credibility. Shares of the miner have lost about half their value since the August, 2010, deal.

On Wednesday morning, at Kinross’s annual meeting in Toronto, president and CEO Tye Burt will get another chance to convince shareholders that the biggest bet of his career will pay off. The miner reports earnings a day earlier, on Tuesday.

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New-World Networking Collaboration will Advance Mining Industry:Anglo Gold – by Lindsay Kelly (Northern Ontario Business – May 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.

By 8:30 a.m. on the day of his presentation to members of the Sudbury Area Mining Supply and Service Association (SAMSSA), Michael MacFarlane had already been up for four hours and worked for three. As the senior vice-president of technology and innovation for AngloGold Ashanti, MacFarlane lives in Sudbury and works in South Africa, and believes the mining industry has arrived at the era of the global virtual employee.

“That’s how the work gets done,” he said. “That’s the future.”   To keep up with the rising demand for minerals, companies need to focus on global networking to find the expertise and innovation needed to sustain the industry, MacFarlane said. For the last 100 years, the industry has operated using the same methods, a combination of human labour matched with heavy machinery and automation, he noted. But a higher mining intensity is needed in order to keep up with future needs, and that requires mining companies to change the way they do things.

 “We cannot continue to mine the deposits we have at the rate we’re mining them,” MacFarlane said. “You have to take the intensity and triple it if we have any hope of meeting the signal of what the market’s looking for. The current mining methods we have, I just don’t believe they’re going to work in the underground context and deliver the response that the market’s asking for.”

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