Gold and Silver – Page 312 – Republic of Mining

Iamgold acquires Trelawney Mining in $608-million deal – by Pav Jordan (Globe and Mail – April 28, 2012)

April 28, 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.

For Iamgold Corp., the $608-million acquisition of a little-known Ontario gold explorer is a step toward two key company goals – offsetting an Africa-heavy portfolio and propelling it toward a goal of doubling production in five years.

Toronto-based Iamgold is offering $3.30 a share for Trelawney Mining and Exploration Inc., which gives it control of a large gold deposit practically in its backyard, thousands of kilometres from Iamgold’s key producing assets in South America and Africa.

“The acquisition of Trelawney creates a larger and more geographically balanced portfolio of long-life gold assets for Iamgold,” Steve Letwin, the company’s chief executive officer, said Friday.

The all-cash acquisition comes as gold companies’ equity valuations flounder, sliced in half in some cases from year-ago levels by investors abandoning the sector in favour of less risky, higher-yielding assets. Ballooning costs for everything from raw materials to skilled labour are also fuelling investor concerns.

NEWS RELEASE: IAMGOLD expands gold production pipeline in Canada with acquisition of Trelawney

April 27, 2012

All amounts are expressed in Canadian dollars, unless otherwise indicated

TSX: IMG NYSE: IAG

TORONTO, April 27, 2012 /CNW/ – IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) (“IAMGOLD” or “the Company”) and Trelawney Mining and Exploration Inc. (TSX Venture:TRR)(“Trelawney”) today announced that they have entered into a definitive agreement (the “Agreement”) whereby IAMGOLD will acquire, through a plan of arrangement, all of the issued and outstanding common shares of Trelawney. Trelawney is a Canadian junior mining and exploration company, focused on the development of the Côté Lake Deposit located adjacent to the Swayze Greenstone Belt in northern Ontario.

Under the terms of the Agreement, each Trelawney shareholder will receive $3.30 in cash for each Trelawney share held. The transaction price represents a 36.6% premium based on Trelawney’s 20-day volume weighted average price (“VWAP”) for the period ending April 26, 2012.

“The acquisition of Trelawney creates a larger and more geographically balanced portfolio of long-life gold assets for IAMGOLD. This transaction provides an accretive return on invested capital as we are effectively redeploying the cash proceeds from the sale of non-core assets last year into a Canadian gold project that significantly strengthens our future gold production profile.

Goldcorp Inc. pledges its commitment to Timmins – by Len Gillis (Timmins Times – April 26, 2012)

April 27, 2012

http://www.timminstimes.com/

Goldcorp holds its first ever corporate annual meeting in Timmins

Goldcorp President and Chief Executive Officer Charles “Chuck” Jeannes told a Timmins audience Thursday that his company has made a substantial investment in both the Porcupine camp and in Porcupine Gold Mines and Goldcorp has every intention of growing that investment.

Jeannes was presiding at Goldcorp’s first ever annual general meeting held outside of Toronto or Vancouver. The meeting, with most of the board of directors in attendance, was held in Timmins in honour of the city’s 100th anniversary celebrations.

“You know we’re a dynamic business and we buy new assets and on occasion we’ve sold assets. I think the fact that we’ve continued to invest so much in Porcupine should be indicative of the commitment we have to this operation,” said Jeannes.

He said the commitment of the company made this year for the Hollinger Project, combined with the decision made in 2010 to expand the Hoyle Pond operation is a commitment of hundreds of millions of dollars and is clear evidence the company has long term plans for the city.

[Goldcorp Latin American] Mine closing sparks concerns – by Kyle Gennings (Timmins Daily Press – April 27, 2012)

April 27, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Activists travel from Central America to share concerns at Goldcorp AGM

Here in Timmins we are reminded of mining operations everywhere we look. It’s written on the sides of trucks, headframes thrust into the skyline and shafts driven deep into the Earth. Here, mining means life, prosperity and reason.

For some in Central America, however, they claim mining means many other things: Suffering, loss of independence and sickness. Activists blame mining corporations.

“Goldcorp does not operate in Honduras and Guatemala the way it does in Canada,” said Reina Gamora, a Honduran school teacher and activist, who made the 6,000-kilometre trek to appeal to the hearts and minds of those who understand mining. “They operate through utilizing the corrupt government that operates in Honduras. They ignore the human rights and environmental impacts their operations have.”

Gamora and two colleagues made the trip to appeal to the shareholders in Goldcorp at the firm’s annual general meeting in Timmins on Thursday. They want to ensure proper cleanup measures are taken as the San Martin mine undergoes its closure process.

OMA member Osisko strengthens mining industry-Metis relations

April 20, 2012

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 Osisko Mining has signed a Memorandum of Understanding (MOU) with the Metis Nation of Ontario (MNO) concerning the development of its Hammond Reef gold project in Northwestern Ontario. The MOU defines how the parties will be consulted and commits both parties to work together to address potential impacts of the mineral development project on Metis rights, interests and way of life.

“The signing of the MOU is the result of a respectful consultation process between the signatories,” said Sean Roosen, Osisko President and Chief Executive Officer. “The agreement represents a milestone in our continuing working relationship with all the local communities in the region and underscores Osisko’s commitment to continue developing a strong relationship with Aboriginal people.”

“This agreement is an important step in building a mutually respectful and sustainable relationship between the Metis community and Osisko Hammond Reef. It sets out a consultation process through which Osisko Hammond Reef can engage with the Metis Community at the local and regional levels in order to better understand Metis rights and interests that may be impacted in the local area around the project,” said Gary Lipinski, President of the MNO.

Rainy River bets on new Ontario gold play – by Euan Rocha (Reuters.com – April 19, 2012)

April 20, 2012

http://ca.reuters.com/

TORONTO (Reuters) – Canadian gold exploration company Rainy River Resources (RR.TO: Quote) believes it has stumbled on a whole new gold district in northern Ontario, where it is developing its flagship Rainy River project, Chief Executive Raymond Threlkeld said.

The project, located about 400 kilometers (250 miles) south of Goldcorp Inc’s (G.TO: Quote) (GG.N: Quote) legendary Red Lake gold mine and roughly 200 kilometers west of Osisko Mining Corp’s (OSK.TO: Quote) Hammond Reef gold project, has a very promising future ahead of it, Threlkeld said on Thursday.

Toronto-based Rainy River expects a soon to be released study on its namesake project to outline stronger production and processing numbers, along with some increases in capital costs.

“The ore is a little bit softer than we originally designed for, so it will allow a little bit more throughput. We were looking at 32,000 metric tonnes (35,273 tons) per day, but it could be as high as 35,000 tonnes per day,” Threlkeld said.

“We think we might average (annually) closer to between 350,000 ounces and 375,000 ounces, versus the 329,000 ounces we are currently estimating, on average, over the life of mine.”

Iamgold takes aim at the gold mining big leagues – by Pav Jordan (Globe and Mail – April 20, 2012)

April 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.

Steve Letwin, chief executive officer of midtier gold miner Iamgold Corp., practically rubs his hands in glee as he talks about plans to propel the company into the major leagues in as little as five years.

With his Toronto-based company sitting on $1.4-billion in cash and with zero debt on the balance sheets, Mr. Letwin lays out a plan to nearly double production by 2017 from the current 850,000 ounces, with most of that to come from acquisitions, including one in coming months that will likely be worth between $400-million and $500-million.

“If we can’t pull the trigger on something in the next three months that makes sense for our shareholders we haven’t done our job,” said Mr. Letwin, a 30-year resource industry veteran who has broken ground from Canada to Colombia to deepest Africa.

“And if we’re going to buy, we’re going to buy now. These equities are ridiculously cheap, some of them.”

Iamgold’s growing investment in Burkina Faso – by Geoffrey York (Globe and Mail – April 14, 2012)

April 16, 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.

ESSAKANE, BURKINA FASO – This is a dangerous land. Just across the border are the Sahara wastes where Islamist terrorists and separatist rebels roam free. Inside the country are gangs of bandits and the occasional violent riot by drunken soldiers.

Yet it’s also a land where Canadian miners are eagerly investing hundreds of millions of dollars. The gold belt of northern Burkina Faso, like other regions of West Africa, has emerged as a new favourite haunt for Canadian mining companies, despite a vast array of security risks.

Less than four years after its arrival, Toronto-based Iamgold Corp. (IMG-T12.55-0.13-1.03%) has become the biggest private employer in Burkina Faso with 2,200 employees. It plans to invest a further $600-million over the next three years to expand its mine and double its processing capacity.

Like many other Canadian investors, the company sees its future in West Africa’s fast-growing mining sector, rather than in the older mines of South Africa, even though the South African industry is still bigger.

Bonanza gold grades at Upper Canada, Monster Lake – by Marilyn Scales (Canadian Mining Journal – April 11, 2012)

May 4, 2015April 12, 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.

Like most CMJ readers, I get a shiver up my spine at the thought of bonanza gold grades. So it was with excitement I read that Toronto’s Queenston Mining (Queenston.ca) had intersected 42.4 g/t Au at its Upper Canada property in Kirkland Lake, ON. Better yet, that was the grade over 5.5 metres.

Not all the grades at Upper Canada were as high. There was also 22.9 g/t over 6.6 metres, 13.2 g/t over 5.5 metres, 4.47 g/t over 37.2 metres and 4.40 g/t over 26.2. These results came for diamond drilling in the Upper L zone as well as the H, M & Q zones. Queenston says the results expand both the underground and pit potential of a large gold system.

A few high grade drill intersections do not a gold mine make, but Queenston has already outlined 1.96 million tonnes averaging 2.38 g/t Au in the indicated resource (uncapped) and 5.38 million tonnes at 4.55 g/t Au in the inferred category (uncapped). Together the resource contains an estimated 937,000 oz of gold that will be recovered by both open pit and underground mining.

Gold production hit high in 2011 – by Peter Koven (National Post – April 12, 2012)

April 12, 2012

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

Global gold production continues to rise, bringing new supply into the market. But as long as investor demand for the yellow metal remains skyhigh, it may not matter.

Gold consultancy GFMS launched its 2012 gold survey on Wednesday, and it took a bullish stance on prices despite a recent correction and a couple of worrying trends in the market.

One of them is that supply keeps going up. The survey showed that mine production hit a record high in 2011, rising 3% year-over-year to 2,818 tonnes (or almost 100 million ounces). It is the second straight year that production reached a new high, defying the “peak gold” theory that some commentators have thrown about.

Neil Meader, research director at Thomson Reutersowned GFMS, said the trend of rising production should continue in the short and medium terms.

The Gold Rush – Charlie Chaplan (Mining Movie – 1925)

April 5, 2015April 6, 2012

This information is from Wikipedia, the Free Encyclopedia: http://en.wikipedia.org/wiki/Main_Page

The Gold Rush is a 1925 silent film comedy written, produced, directed by, and starring Charlie Chaplin in his Little Tramp role. The film also stars Georgia Hale, Mack Swain, Tom Murray, Henry Bergman, Malcolm Waite.

Chaplin declared several times that this was the film that he most wanted to be remembered for.[1] Though a silent film, it received an Academy Awards nomination for Best Sound Recording (see re-release below). In 1953, the film entered the public domain (in the USA) due to the claimants failure to renew its copyright registration in the 28th year after publication.[2] MK2 Editions and Warner Home Video currently holds DVD distribution rights. A Blu-Ray edition has been recently announced by The Criterion Collection.

Plot

The Tramp (Charlie Chaplin) travels to the Yukon to take part in the Klondike Gold Rush. Bad weather strands him in a remote cabin with a prospector who has found a large gold deposit (Mack Swain) and an escaped fugitive (Tom Murray), after which they part ways, with the prospector and the fugitive fighting over the prospector’s claim,

NEWS RELEASE: Rainy River Resources Signs Participation Agreement with Rainy River Area First Nations

April 5, 2012

04/03/2012

TORONTO, ONTARIO–(Marketwire – April 3, 2012) – Rainy River Resources Ltd. (“Rainy River” or the “Company”) (TSX:RR) and the Naicatchewenin First Nation, Rainy River First Nations, Mitaanjigamiing First Nation, Couchiching First Nation, Lac La Croix First Nation and Seine River First Nation (together, the “First Nations”) are pleased to announce the signing of a Participation Agreement (“PA” or “Impact and Benefits Agreement”) with respect to the development and operation of the Company’s Rainy River Gold Project, located in Northwestern Ontario. The PA is the culmination of negotiations initiated by the parties pursuant to a Memorandum of Understanding entered into in May of 2010.

The PA was developed together with the First Nations, each of which is a member of the Fort Frances Chiefs Secretariat, in order to define their participation in the development and operation of the Rainy River Gold Project. The agreement identifies key project milestones and ways to work together with the First Nations, as the Company initiates mine environmental assessment and permitting in 2012.

The PA sets out a schedule of benefits that the First Nations communities will receive, including employment and business opportunities, funding to support skills development, occupational training and education, as well as equity participation. The PA reflects the Company’s continued commitment to environmental stewardship, respect for First Nations’ traditional culture and values and the need for economic sustainability.

Still waiting for Nunavut’s mining boom – by Julie Gordon (Mineweb.com – April 2, 2012)

May 16, 2012April 2, 2012

www.mineweb.com

While mineral opportunity abounds, a lack of infrastructure, crippling cold and the challenge of attracting and retaining an adventurous workforce have dimmed the prospects of a mining boom in Canada’s Arctic territory.

TORONTO (Reuters) – The prospects of a mining boom in Canada’s Arctic territory of Nunavut – once as bright as the Northern Lights – are fading fast as costs in the inhospitable region spiral higher, forcing writedowns on two major gold projects there.

The sparsely populated territory has gained a reputation as one of the most promising regions in Canada for exploration, with prospectors promoting discoveries ranging from gold to uranium. But getting the ore out of the ground is a different story entirely.

While climate change has made it easier to find mineral deposits in Nunavut, the task of mining is complicated by a lack of roads and other infrastructure, the still-crippling cold and the challenge of attracting and retaining an adventurous workforce.

Agnico-Eagle Mines, which owns the only working mine in Nunavut, recently booked a partial writedown on changes to the mine plan at Meadowbank, while cash costs at the gold mine have risen to more than $1,000 per ounce.

Bullion miners lament cost and tax pressures – by Euan Rocha (Calgary Herald – March 28, 2012)

March 28, 2012

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

Agnico, which taps miners in Quebec, is facing cost pressures on the labour front

Reuters – TORONTO – Rising labour costs, surging oil prices and higher tax rates are eating into profits of precious metals miners and raising the cut-off bar on new projects, making it much more difficult for them to replace reserves and boost production.

High precious metal prices are prompting governments to raise taxes and royalties on miners, industry executives say, while giving little thought to the level of risk and the amount of investment required to develop these mammoth projects.

“Countries want to impose super taxes – well, where are the super profits?” Gold Fields chief executive Nick Holland said at the Reuters Global Mining Summit this week.

“If we do want to sustain the gold industry where it is – never mind grow it – we are going to need to spend money. And to spend that money we are going to need to provide returns for shareholders,” Holland said, explaining the conundrum facing global mining companies.