Twitter

Gold and Silver

Once upon a mine [Barrick CEO Aaron Regent profile] – by Paul McLaughlin (CAmagazine – August 2011)

CAmagazine is the leading accounting publication and preferred information source for Canadian chartered accountants and financial executives.

Paul McLaughlin is a Toronto-based freelance writer www.paulmclaughlin.ca

Two years and two risky deals later, Barrick’s CEO Aaron Regent has shown the mining community that he’s one leader not afraid of taking chances

When Aaron Regent, the president and CEO of Barrick Gold Corp., addressed the annual general meeting of the world’s largest gold producer in April, he had a lot of good news to bestow.

In a matter-of-fact tone, the 45-year-old CA, who had been appointed to the challenging role some 27 months earlier, began by telling the assembled shareholders at Toronto’s Metro Convention Centre that Barrick had “a strong year in 2010.” That was an understatement. The price of gold had surged to US$1,228 an ounce last year, up 25% from the year before and more than 200% since 2004.

In May it was nudging US$1,512 on the New York Stock Exchange and in June reached US$1,540 an ounce. Those numbers contributed significantly to Barrick, which has 25 operating mines and six projects on five continents, being able to report record adjusted first-quarter net earnings in 2011 of US$1.1 billion, up 32% from the prior year’s same period. Operating cash flow also jumped, by 27% from the previous first quarter, to US$1.44 billion.

Read more

NEWS RELEASE: Probe Mines Announces Memorandum of Understanding With Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nations for Its Borden Lake Gold Project, Chapleau, Ontario

Sep 07, 2011

TORONTO, ONTARIO–(Marketwire – Sept. 7, 2011) – Probe Mines Limited (TSX VENTURE:PRB) (“Probe” or the “Company”) is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) with the Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nations communities near Chapleau, Ontario. The MOU establishes a commitment by Probe to develop an ongoing relationship with the three communities in the area of the Company’s Borden Lake Gold Project and provides the communities with an opportunity to participate in the benefits of the project through training, ongoing communication and business development.

An Elders Committee (the “Committee”) will be created to provide advice to the Company on traditional values and local cultural and environmental matters during the exploration phase. Probe has also agreed to negotiate an Impact Benefit Agreement with the communities should the project proceed to production.

David Palmer, President of Probe, states “The signing of the MOU is an important first step in building a relationship based on mutual respect and cooperation with the First Nations communities. We are looking forward to working with the communities and receiving their input as we explore the Borden Lake area. Their contribution of local knowledge will be invaluable in helping us create a socially responsible exploration program to the benefit of all involved.”

Read more

Miner Detour Gold is a major player in the foodservice and hotel business

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.

One of the largest hotel and food service operations in Ontario right now is not a resort, or hotel, or casino, it is the Detour Lake mine site located 185 kilometres north and east of Cochrane.   Detour Gold is investing $1.3 billion to bring this open-pit gold project into production by early 2013.  Once in operation, it will be Canada’s largest gold mine.

Access to the mine site from Cochrane is by a provincial two-lane highway and a private company road.  The road trip from Cochrane takes about two and one half hours and crosses several major rivers flowing into the Arctic watershed.  The mine is near the Quebec border and about 100 kilometres south of James Bay.

On any given day at the moment, there could be 1,000 people, or more, on site from Detour Gold and at least 15 contracting companies.  It is a beehive of activity requiring military precision and logistics to feed and house the workers let alone bring in materials to build the mine infrastructure including the processing plant facilities and tailings areas. 

Read more

Gold Fever Gripping the Australian Outback – by Matt Siegel (New York Times – August 15, 2011)

The New York Times has the third highest weekday circulation in the United States (after USA Today and the Wall Street Journal) and is one of the country’s most influential newspapers.

SYDNEY, Australia — Four years ago, Marco Nero was on top of the world. He was earning more than $1 million working as a film effects designer for some of the world’s most prestigious digital animation houses. His mind, however, was elsewhere.

Mr. Nero, 40, was increasingly spending his office hours poring over Web sites for anything he could find about an unlikely subject: gold. Like Humphrey Bogart’s character in the classic 1948 film “The Treasure of the Sierra Madre,” he realizes now, he was developing a full-blown case of gold fever, a condition whose genesis he traces to a trip to a prospecting supply shop in the Sydney area.

“I happened to talk to the gentleman that was behind the counter, and he showed me a 2-ounce gold nugget he had and it was a beautiful piece. I held that in my hand,” he said. “I was probably hooked at that point.”

Shortly thereafter, despite protests from friends and family, he quit his job to hunt for gold.

Read more

Ontario Gold Mining – by Stan Sudol

Stan Sudol is a Toronto-based communications consultant and mining columnist. stan.sudol@republicofmining.com

Historically, Ontario’s gold mining industry has played a major role in the settlement of the province’s northern regions and along with the Cobalt silver boom and further gold and base metal discoveries in northwestern Quebec were primarily responsible for the establishment of Toronto as today’s mine financing capital of the world.

The many gold mines that came into production during the Depression of the 1930s made a vital contribution to keeping the province solvent and with over a century of experience building many underground mines helped solidify Ontario’s hard-rock mining expertise that is well respected globally.

However, northern Ontario’s gold rushes have always seemed to play second-fiddle to the legendary Klondike in the Yukon, aided by famous writers like Jack London, Robert W. Service – of the Cremation of Sam McGee fame – and Canadian literary icon, Pierre Berton. At it’s peak, the Klondike gold rush only lasted for a few years – 1896-99 – and produced a miserly 12.5 million ounces of gold. “Chump change” compared to northern Ontario’s four major gold rushes and a number of smaller gold districts, most of which are still producing the precious metal today.

Read more

Northern Ontario: A Golden Klondike – 192 million ounces of gold and counting – by Stan Sudol

(Wiki Photo)

Stan Sudol is a Toronto-based communications consultant and mining columnist. Stan.sudol@republicofmining.com

A much shorter version of this article appears in the September, 2011 issue of the Northern Miner’s Mining Markets: A Resource for Investors magazine.

A fever is spreading throughout northern Ontario, from the eastern districts adjacent Quebec to the far reaches of the northwest right up to the Manitoba border. This raging malaise is caused by a metal that has captured mankind’s attention from the dawn of time. I am referring to “gold fever” and many in northern Ontario – a vast northern territory, which is almost equal to Germany, United Kingdon, Greece and Ireland combined – are thoroughly infected or obsessed over this beautiful precious metal.

Historically, Ontario’s gold mining industry has played a major role in the settlement of the province’s northern regions and along with the Cobalt silver boom and further gold and base metal discoveries in northwestern Quebec were primarily responsible for the establishment of Toronto as today’s mine financing capital of the world.

The many gold mines that came into production during the Depression of the 1930s made a vital contribution to keeping the province solvent and with over a century of experience building many underground mines helped solidify Ontario’s hard-rock mining expertise that is well respected globally.

However, northern Ontario’s gold rushes have always seemed to play second-fiddle to the legendary Klondike in the Yukon, aided by famous writers like Jack London, Robert W. Service – of the Cremation of Sam McGee fame – and Canadian literary icon, Pierre Berton. At it’s peak, the Klondike gold rush only lasted for a few years – 1896-99 – and produced a miserly 12.5 million ounces of gold. “Chump change” compared to northern Ontario’s four major gold rushes and a number of smaller gold districts, most of which are still producing the precious metal today.

Considering the record setting price of gold, moving upwards almost daily, the political stability of northern Ontario and its strong world-class mining infrastructure versus lesser developed countries like Tanzania, Guatemala or Papua New Guinea, exploration in all current and former gold mining camps is booming.

Read more

Barrick Gold Corporate History (1980-2000) – International Directory of Company Histories

For a large selection of corporate histories click: International Directory of Company Histories

Company History:

Barrick Gold Corporation is an anomaly in the gold exploration and mining industry; it has little debt and low-cost production, yet high yield and even higher sales. Though Barrick began as a less than spectacular petroleum and oil company in Canada founded by Peter Munk and David Gilmour, they turned to prospecting in 1983 and became the quintessential success story. While gold mining operations may spend decades searching for the motherlode, Barrick began by acquiring established mines and bringing them to new levels of productivity and profit.

On its Goldstrike Property on the Carlin Trend in Nevada, Barrick has established the Betze-Post and Meikle Mines: the former is the richest and most productive mine in the United States while the latter is the largest underground mine in North America. Ongoing exploration and drilling continue in the region, as well as on properties in Canada, South America, and Africa, with projections to reach more than five million ounces of gold production by 2003. Since Barrick’s mining and processing facilities are among the most technologically advanced in the world, this is all but a fait accompli.

Read more

Goldcorp is Losinging its Social Licence to Operate in Guatemala – by Marilyn Scales

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 often speak of having a “social licence” to operate. This reflects the willingness of local communities to support their endeavours. The more the miner and the indigenous people talk, the better their understanding and ability to accommodate one another.

What sounds straightforward is often complicated by unrealistic expectations, earlier history, cultural rigidity and interference by third parties.

The latest company on the verge of losing its social licence is Vancouver’s Goldcorp, that operates the Marlin gold mine in Guatemala. The most recent report to examine Goldcorp’s record there was commissioned by the company in response to charges of human rights violations at the Marlin mine. The report concluded that the company had failed to respect the right of indigenous peoples in that country, but also had brought jobs, healthcare and education to the impoverished western highlands region. Goldcorp further insists that allegations of environmental problems are unfounded.

Read more

Gold Resources and McEwen’s Junior Index – by Marilyn Scales

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.

It is difficult to overstate the importance of gold. It has been prized as decoration as long as humankind has been around. It makes a solid foundation for world banking. It has been fought over. It is the stuff of which legends are made. And gold is undeniably beautiful.

Most of the general public and the mineral industry snap to attention when gold is in the news. Reports of new gold finds are especially welcome. But they may be fewer and farther apart if the findings of Halifax’s Metals Economics Group (MEG) are accurate. (www.MetalsEconomics.com) 

MEG examined the costs of finding and acquiring gold reserves and found that overall the industry is not discovering new deposits fast enough to meet future production demand.

The report looked closely at major gold producers, those with an output of 450,000 oz or more in 2008. They overcame “… rising costs, equipment and labour shortages, electrical outages, wars, permitting hurdles, typhoons, political opposition, and other obstacles,” the report noted to replace reserves at twice the rate they are mining them. Most of these gains were made through acquisitions or upgrading existing resources due to the high gold price, not through grassroots discoveries.

Read more

Celebration Set for Historic Kirkland Lake Toburn Gold Mine – by Marilyn Scales

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.

The first gold mine in Kirkland Lake, ON, is reopening this summer, not as a producer but as a monument to the early days of prospecting in Ontario’s North. The hunt for gold was filled with characters — “Swift” Burnside, the Tough brothers, Sir Harry Oakes and Bill Wright — all eager to make a profit on the next great gold mine. Part of their legacy is the headframe of the Toburn mine that began commercial production in 1913.

The Toburn mine struggled along with a 90-t/d stamp mill from 1913 to 1931. Then Toburn Gold Mines Ltd. was incorporated and installed a new, larger mill, which operated until 1953. A total of 1.1 million tonnes of ore grading almost 17.0 g/t Au (0.5 opt) was treated. 

The site was abandoned after mining ceased and reverted to the Crown. In 2006 the Northern Prospectors Association set about acquiring the last remaining original headframe on the “Mile of Gold”. Project funding was contributed by individuals, corporations and public institutions. Two years later, the Town of Kirkland Lake acquired the property and the Toburn Operating Authority was created to oversee its rebirth as a tourist and learning destination.

Read more

Good News From Canadian Gold Miners – by Marilyn Scales

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.

Look to the gold sector for good news from Canadian miners. While base metal, coal and potash producers continue to trim output, companies such as Vancouver’s Goldcorp have recorded record quarterly production. Gold output at all of the company’s operations was 692,000 oz during the last quarter, bringing the 2008 total to 2.3 million oz.

Nor is that the only good news from Goldcorp. Although the calculation of operating costs for 2008 has not yet been completed, the company expects total cash costs will be $300/oz of gold on a byproduct basis.

The company is also predicting it will produce another 2.3 million oz of gold in 2009 at a total cash cost of $365/oz on a byproduct basis. Increases will be achieved at most mines, but production at the Alumbrera mine in Argentina and El Sauzal mine in Mexico will be significantly lower than previous years. The 2009 forecast for Goldcorp’s Canadian operations include 620,000 oz from Red Lake mines, 290,000 oz from the Porcupine division, and 235,000 oz from Musselwhite mine.

Nor is Goldcorp the only bright spot.

Read more

Good News Gold, Bad News Base Metals – by Marilyn Scales

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.

Let’s start with the really good news. Agnico-Eagle Mines of Toronto has declared its 27th consecutive annual cash dividend. The payment of US$0.18 per common share will be made on March 27, 2009, to shareholders of record as of March 13, 2009. 

Hearing from an optimistic miner in these times is very good news, indeed.

“Agnico-Eagle enters 2009 with a strengthened balance sheet and the expectation that over the next 15 months we will complete the construction of three more gold mines. We also anticipate further increases in gold reserves and resources in 2009 as we continue with an extensive exploration program on our large gold deposits”, said Sean Boyd, vice-chairman and CEO. “We also look forward to providing the results of our ongoing studies on four internal production growth opportunities that give the potential to enhance our superior growth beyond 2010,” he added.

Agnico is in the enviable position of doubling its gold output next year and doubling it again to 1.2 million oz in 2010. Cash costs are expected to be less than US$300/oz in 2010, and only US$320/oz from 2010 to 2018. 

Read more

Hopes Fades for Crystallex’s Las Cristinas Gold Project – by Marilyn Scales

Marilyn Scales - Canadian Mining JournalMarilyn 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.

The history of the Las Cristinas gold project that CRYSTALLEX INTERNATIONAL of Toronto has tried to lay claim to is steeped in controversy and delay. But the squabbling may soon come to an end if Venezuelan president Hugo Chavez gets his way. He wants to nationalize the Las Cristinas project along with several other industries.

Placer Dome was one of the first companies to drill the Las Cristinas deposit in the early 1990s. The Canadian company formed a joint venture with Corporacion Venezolana de Guayana (CVG), and CVG remains the owner to this day. Crystallex was drilling the adjacent Albino concession at the time.

The entire Kilometre 88 area of Venezuela became one of the hottest gold plays in Latin America during the early 1990s. But the Las Cristinas deposit with 16.9 million contained oz of gold is the richest.

In 1997 Crystallex bought up a privately owned Venezuelan company said to own the rights to part of the Las Cristinas property. Placer Dome called the claim groundless, but it decided to suspend construction at Las Cristinas until the ownership question could be settled. In June 1998 the Venezuelan court dismissed Crystallex’s claim, clearing the way for Placer Dome and CVG to move forward. The next year low gold prices forced Placer Dome put the project on hold.

Read more

Canadian Gold Hunters Undeterred by Sliding Price – by Marilyn Scales

Marilyn Scales - Canadian Mining JournalMarilyn 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.

It seems like only yesterday pundits looked at the price of gold as it topped US$1,000 an ounce and predicted it could only go up. Actually it was seven months ago, near the middle of March 2008, and we all wish the price would return to that level. Instead, the mess in the global financial markets has for some reason made the U.S. dollar stronger and the price of gold dip to the $750/oz range.

Nonetheless, many Canadian juniors are pressing ahead with work at what they hope will someday be this country’s next generation of profitable gold mines. Here is a sampling that have landed in my inbox during the last two weeks.

ALTO VENTURES of Vancouver sais drilling has begun on targets at its Mud Lake and Three Towers properties in the Beardmore-Geraldton Gold Belt in Ontario. High grades have been unearthed in the region in the past. (www.AltoVentures.com) WESCAN GOLDFIELDS of Saskatoon is earning a 50% interest in the Mud Lake project.

BRIGADIER GOLD of Toronto has extended the gold zone to more than 200 metres vertical depth at its Larder Lake project near Kirkland Lake, Ontario. The intersections were made beneath trenches in which visible gold was discovered in 2005. (www.BrigadierGold.com)

Read more

Alaska Votes for Gold, Not Fishing – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. This week the voters of Alaska were asked to decide whether or not they favour prohibitive clean water regulations for new mines in that state. Ballot Measure 4 was aimed specifically at stopping Vancouver’s NORTHERN DYNASTY MINERALS (50%) and South …

Read more