Today, Peter Schiff has announced his plan to help struggling Americans. If you do not know who Peter Schiff is, he is an American author, businessman, financial commentator, and a 2010 candidate for the United States Senate. He is also president and chief global strategist of Euro Pacific Capital Inc. and is often quoted in major financial publications and frequently makes guest appearances on internet radio as well as CNBC, Fox News, and Bloomberg Television. He also is the host of the podcast Wall Street Unspun.
Schiff is known for extremely bearish views on the United States stock market, bond market, the US dollar, and the United States economy in general. Recently he has stated that a deflationary period would be good for the US and struggling Americans to be specific.
With unemployment still uncomfortably high, the housing market down, and the consumer price index (CPI) down three straight months, at Fed Chairman Ben Bernanke's semi-annual testimony to Congress this week he was very careful to downplay deflation and to assure markets that the Federal Reserve has the capacity to reverse deflation, should it occur. However, Bernanke's comments didn't settle the deflation debate, nor did they convince Peter Schiff that the Fed chairman knows what is going on.
In an Article today, Schiff stated "I don't know where anyone thinks prices are falling,” alluding to rising prices for food, healthcare and energy. He also declared "I don't know where most people do their shopping but I don't see falling prices. To me, prices are rising." While the Fed believes it has prevented a deflationary spiral such as Japan faced in the 1990s from taking root, Schiff sees more government stimulus analogous to feeding an addiction. He states that “we are high on government stimulus; the US needs to go “cold turkey” from more monetary stimulus and government spending
After Bernanke’s testimony yesterday, Schiff stated "It's not that the Fed has done too little, they've done too much, interest rates are too low, they need to be much higher.” He says the federal government is spending too much, they need to spend a lot less, and government stimulus is the source of our problems." Schiff believes the U.S. economy is addicted to government stimulus and is at risk of overdosing. He stated "They're trying to sober up a drunk by giving him more alcohol - it won't work."
Schiff does concur with the view that there will be economic would become weaker if the Fed and Congress force the economy to go "cold turkey" rather than slowly weaning it off stimulus. But the pain would be short-term; however, any short-term pain will be well worth the long-term gain, and may even avoid another Great Depression.
Schiff believes that even though we have been in the worst recession since the Great Depression, at the moment, deflation is non-existent because the government has created so much inflation that they have prevented prices from falling. Schiff stated. "It would have been a relief for a lot of Americans...if things cost less and the cost of living was falling in line with a weaker economy."
Schiff believes inflation is a much greater threat than deflation. In his view the government created inflation by creating too much money, keeping interest rates at zero, and increased spending. The result of this government induced inflationary period is that Americans are soon going to be paying much more for food, clothing, energy, healthcare, etc. However, the prices of financial assets and real estate are not going anywhere but down, according to Schiff.
Authors note: We all know that the US cannot continue to print dollars, just because they have the ink and paper. Since this is a precious metals blog, I feel I should interject with the notion that when paper money is worthless (seems to be heading in that direction), people will fall back to anything of value. PMs such as Silver and Gold will likely be used to purchase goods and services. I know what I am describing is the SHTF scenario, but it always pays to be prepared.
On Euro Pacific Capital, Inc. Peter Schiff wrote: “I have long been an advocate of fortifying investment portfolios with precious metals. Holding actual precious metals is important, but it is primarily a way to preserve capital. I believe that a fully realized precious metals portfolio also includes some exposure to the companies that explore and produce gold and silver.”
In the paragraph above, Schiff is advising holding precious metals as a hedge and investing in mining companies. Of course he would not say “take all of your free money and buy Silver and Gold” because that would be reckless and likely to cause a panic that could precipitate the SHTF. Now, this last statement is not a fact, it is just my thoughts and opinions. I DO recommend buying as much silver and gold as you can. How much? That depends on how much you are comfortable with. Most places of business still want payment in dollars, so do not use all of your money to buy PMs or you might find it hard to pay your mortgage, rent, utilities, etc.
Showing posts with label gold mine stock. Show all posts
Showing posts with label gold mine stock. Show all posts
Friday, July 23, 2010
Monday, May 3, 2010
NIA: Introduction and Mining Stock Recommendation
The National Inflation Association (NIA) is an organization dedicated to preparing Americans for hyperinflation and helping Americans to survive and prosper in the upcoming hyperinflationary crisis. The U.S. government’s obligations include a $12.8 trillion national debt, $6.3 trillion in Fannie/Freddie debt and $60 trillion in unfunded obligations for programs such as Social Security, Medicare and Medicaid. The NIA believes that the United States for all intents and purposes is bankrupt and Americans need to take steps immediately to protect themselves from the potential loss of the purchasing power of their U.S. dollars.
NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.
The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.
Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.
Today, MIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and is also a significant gold producer. In 2009, gold production increased 56% to 72,112 ounces. Coeur has a strong Latin American presence and will have its first full year of production in 2010 at its newest operation, the Palmarejo silver/gold mine in Mexico. The company also holds 100% operating interest and exploration rights at underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine in Australia. The Company is finalizing the construction at its Kensington gold project in Alaska, and conducts exploration activities in Argentina, Chile and Mexico. You can read the CDE profile at http://www.inflation.us/cde.html
As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.
NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.
The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.
Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.
Today, MIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and is also a significant gold producer. In 2009, gold production increased 56% to 72,112 ounces. Coeur has a strong Latin American presence and will have its first full year of production in 2010 at its newest operation, the Palmarejo silver/gold mine in Mexico. The company also holds 100% operating interest and exploration rights at underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine in Australia. The Company is finalizing the construction at its Kensington gold project in Alaska, and conducts exploration activities in Argentina, Chile and Mexico. You can read the CDE profile at http://www.inflation.us/cde.html
As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.
Thursday, April 1, 2010
Gold Mining Update-April 1, 2010
There are five gold mining companies making headlines today. Lihir Gold rejected a buyout offer and appointed a new CEO. I believe the two items are unrelated. Allied Nevada gave us an update on its reserves and resources while Apollo Gold and Linear Gold did enter into an agreement to merge. Yamana Gold’s Minera operation in Peru that was shut down for weeks after an earthquake is up and operational. Last but not least, Agnico-Eagle will acquire all the Comaplex Minerals Corp. stock it does not already own and get a gold producing property out of the deal.
Lihir Gold rejected an offer from Newcrest Mining to acquire 100% of Lihir's common shares. Newcrest made the offer on 29 March 2010. Terms of the offer were 1 Newcrest share for every 9 Lihir shares plus A$ 0.225 in cash for each Lihir Gold share. After careful review and analysis, the board of directors unanimously decided that the offer did not represent good value for Lihir Gold shareholders.
Coincidentally, Lihir Gold appointed a new CEO. The company appointed former BHP senior executive Graeme Hunt as Managing Director and Chief Executive Officer. Lihir Chairman Ross Garnaut stated that Mr. Hunt was the ideal candidate for the CEO role. He brings with him strong leadership skills, vast knowledge of the mining industry and extensive experience in strategic development.
Allied Nevada reported today an update on its mineral reserves and resources. Allied has more than doubled its oxide gold reserves to 2.4 million ounces at its Hycroft mine, which it fully owns near Winnemucca, Nevada. Measured and indicated gold equivalent ounces increased 28% to 10.3 million ounces compared with 8.1 million gold equivalent ounces reported in March 2009.
Apollo Gold and Linear Gold announced today that they have entered into a definitive arrangement agreement by way of a court approved plan of arrangement. The Arrangement Agreement supercedes a previous letter of intent executed by Apollo and Linear regarding the merger. Both companies anticipate that the merger will be completed in June 2010
Yamana Gold reaffirms that their gold production will gradually increase, and cash costs would sequentially decrease, throughout the year. The Minera Florida gold processing plant suffered severe damage from an earthquake that hit Chile on February 27, 2010. Although the mine site was unharmed, it was without a secure normal power supply for weeks. This caused Minera Florida to produce less than anticipated. Yamana stated that the Minera Florida operation is now fully operational.
Agnico-Eagle and Comaplex Minerals Corp. announced that Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. The terms of the agreement would give each shareholder of Comaplex 0.1576 of an Agnico-Eagle share per Comaplex share. Agnico-Eagle would also acquire Comaplex's Meliadine gold property. Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada, approximately 300 kilometers from Agnico-Eagle's producing Meadowbank gold mine. Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 13M tons grading 7.9 grams per ton (g/t) and inferred gold resources of 1.73M ounces from 8.4M tons grading 6.4 g/t.
Lihir Gold rejected an offer from Newcrest Mining to acquire 100% of Lihir's common shares. Newcrest made the offer on 29 March 2010. Terms of the offer were 1 Newcrest share for every 9 Lihir shares plus A$ 0.225 in cash for each Lihir Gold share. After careful review and analysis, the board of directors unanimously decided that the offer did not represent good value for Lihir Gold shareholders.
Coincidentally, Lihir Gold appointed a new CEO. The company appointed former BHP senior executive Graeme Hunt as Managing Director and Chief Executive Officer. Lihir Chairman Ross Garnaut stated that Mr. Hunt was the ideal candidate for the CEO role. He brings with him strong leadership skills, vast knowledge of the mining industry and extensive experience in strategic development.
Allied Nevada reported today an update on its mineral reserves and resources. Allied has more than doubled its oxide gold reserves to 2.4 million ounces at its Hycroft mine, which it fully owns near Winnemucca, Nevada. Measured and indicated gold equivalent ounces increased 28% to 10.3 million ounces compared with 8.1 million gold equivalent ounces reported in March 2009.
Apollo Gold and Linear Gold announced today that they have entered into a definitive arrangement agreement by way of a court approved plan of arrangement. The Arrangement Agreement supercedes a previous letter of intent executed by Apollo and Linear regarding the merger. Both companies anticipate that the merger will be completed in June 2010
Yamana Gold reaffirms that their gold production will gradually increase, and cash costs would sequentially decrease, throughout the year. The Minera Florida gold processing plant suffered severe damage from an earthquake that hit Chile on February 27, 2010. Although the mine site was unharmed, it was without a secure normal power supply for weeks. This caused Minera Florida to produce less than anticipated. Yamana stated that the Minera Florida operation is now fully operational.
Agnico-Eagle and Comaplex Minerals Corp. announced that Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. The terms of the agreement would give each shareholder of Comaplex 0.1576 of an Agnico-Eagle share per Comaplex share. Agnico-Eagle would also acquire Comaplex's Meliadine gold property. Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada, approximately 300 kilometers from Agnico-Eagle's producing Meadowbank gold mine. Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 13M tons grading 7.9 grams per ton (g/t) and inferred gold resources of 1.73M ounces from 8.4M tons grading 6.4 g/t.
Tuesday, March 16, 2010
Gold Mining Report-March 16, 2010
In the last few years, most of the gold mining activities have been located in Southern Hemisphere. Lately, mining activities and consolidations are starting to ramp up in the northern areas of Canada, specifically in the Yukon Territories.
NovaGold Resources was a major player in the gold mining industry, but after the financial crisis and related budget problems, it halted its development activities. However, lately the company has been in the news again due to interest by investors like George Soros and John Paulson, who have increased their positions in NovaGold’s stock.
Kinross Gold announced today that in addition to their press release on March 11, 2010, it has entered into a definitive support agreement with the Canadian Junior mining company, Underworld Resources. Kinross’s friendly take-over bid will acquire 100% of the outstanding common shares of Underworld that they do not already own on the basis of 0.141 of a Kinross common share plus $0.01 in cash per common share. Underworld agreed to support the offer and Underworld's directors and senior have agreed to tender their common shares to the offer. In the deal Kinross will also acquire a development prospect called White Gold, which has already identified an indicated resource of greater than 1 million ounces of gold, and the project's Golden Saddle deposit, ore grades look highly favorable for positive economic feasibility at 3.2 grams per ton.
Yesterday,(yea I now I am slacking) Seabridge Gold announced that an independent review of Seabridge Gold's resource estimates for the KSM project has been completed by a third-party, Behre Dolbear & Company. Behre Dolbear confirms that the KSM resource model is reasonable and appropriate. Furthermore, they confirmed that the resource estimates prepared by Resource Modeling in January were accurate, conformed to industry practices, and complied with industry standards. However, the Seabridge realistically cannot enter production at the KSM project unless one of the major mining groups decides back them financially. Higher gold prices may provide them that incentive.
Back in the U.S., Newmont Mining Corporation stated that the Chinese demand for gold bullion will remain strong this year, despite historically high prices for the metal. Philip Stephenson, Regional Group Executive, Operations, Newmont Asia Pacific is forecasting that they are still going to see strong investment demand from China. Last year, 2009, there was a 20% increase in investment demand from China. Newmont is expecting a similar level of demand in 2010.
Newmont's Boddington gold mine in Western Australia recently opened and expectations are high. They also have several early-stage exploration projects near existing Australian mine sites. However, these are more likely to extend existing mine life, rather than boost production levels.
NovaGold Resources was a major player in the gold mining industry, but after the financial crisis and related budget problems, it halted its development activities. However, lately the company has been in the news again due to interest by investors like George Soros and John Paulson, who have increased their positions in NovaGold’s stock.
Kinross Gold announced today that in addition to their press release on March 11, 2010, it has entered into a definitive support agreement with the Canadian Junior mining company, Underworld Resources. Kinross’s friendly take-over bid will acquire 100% of the outstanding common shares of Underworld that they do not already own on the basis of 0.141 of a Kinross common share plus $0.01 in cash per common share. Underworld agreed to support the offer and Underworld's directors and senior have agreed to tender their common shares to the offer. In the deal Kinross will also acquire a development prospect called White Gold, which has already identified an indicated resource of greater than 1 million ounces of gold, and the project's Golden Saddle deposit, ore grades look highly favorable for positive economic feasibility at 3.2 grams per ton.
Yesterday,(yea I now I am slacking) Seabridge Gold announced that an independent review of Seabridge Gold's resource estimates for the KSM project has been completed by a third-party, Behre Dolbear & Company. Behre Dolbear confirms that the KSM resource model is reasonable and appropriate. Furthermore, they confirmed that the resource estimates prepared by Resource Modeling in January were accurate, conformed to industry practices, and complied with industry standards. However, the Seabridge realistically cannot enter production at the KSM project unless one of the major mining groups decides back them financially. Higher gold prices may provide them that incentive.
Back in the U.S., Newmont Mining Corporation stated that the Chinese demand for gold bullion will remain strong this year, despite historically high prices for the metal. Philip Stephenson, Regional Group Executive, Operations, Newmont Asia Pacific is forecasting that they are still going to see strong investment demand from China. Last year, 2009, there was a 20% increase in investment demand from China. Newmont is expecting a similar level of demand in 2010.
Newmont's Boddington gold mine in Western Australia recently opened and expectations are high. They also have several early-stage exploration projects near existing Australian mine sites. However, these are more likely to extend existing mine life, rather than boost production levels.
Friday, March 12, 2010
This Week in Mining
Rising gold prices this year have been driving a wave of acquisition activities in the sector with at least three major deals being announced this week alone.
Newmont Mining, the world's second largest gold producer, said this week that it may pursue operations in politically risky countries. Last week the company sold its interest in the Amulsar Gold Project in Armenia to its partner Lydian International for around $25M.
Kinross Gold announced the proposed acquisition of Underworld Resources for $139.2 million, or $2.62 per share. Kinross already holds an 8.5% stake in the company and Thursday's offer represents a 36% premium over Underworld's closing price of $1.93 on Wednesday.
Apollo Gold announced Tuesday the acquisition of Linear Gold for C$102M. The combined company will have total reserves of approximately 2.3M ounces of gold in Canada.
On another note:
Barrick Gold, one of the the largest gold producers faced the risk of losing its mining license for the $3B Reko Diq gold-copper project in Pakistan even though the CEO stated that he was confident the company would reach an agreement to develop the project, which it owns jointly with Chilean copper company Antofagasta. Barrick’s North American business produced 600,000 ounces of gold at a cash cost of $523 per ounce. This was driven by the Goldstrike operation, which produced 210,000 ounces at $528 per ounce as higher-grade ore continued to be mined in the open pit and underground and the Cortez mine contributed 170,000 million ounces at $382 per ounce. Barrick is even expecting to increase in gold production from the Cortez property. Assay results predict a higher grade of ore from the Cortez Hills mine when it becomes operational.
There is probably more but thats about all I can digest for one day. Remember buy real money, buy PMs!
Newmont Mining, the world's second largest gold producer, said this week that it may pursue operations in politically risky countries. Last week the company sold its interest in the Amulsar Gold Project in Armenia to its partner Lydian International for around $25M.
Kinross Gold announced the proposed acquisition of Underworld Resources for $139.2 million, or $2.62 per share. Kinross already holds an 8.5% stake in the company and Thursday's offer represents a 36% premium over Underworld's closing price of $1.93 on Wednesday.
Apollo Gold announced Tuesday the acquisition of Linear Gold for C$102M. The combined company will have total reserves of approximately 2.3M ounces of gold in Canada.
On another note:
Barrick Gold, one of the the largest gold producers faced the risk of losing its mining license for the $3B Reko Diq gold-copper project in Pakistan even though the CEO stated that he was confident the company would reach an agreement to develop the project, which it owns jointly with Chilean copper company Antofagasta. Barrick’s North American business produced 600,000 ounces of gold at a cash cost of $523 per ounce. This was driven by the Goldstrike operation, which produced 210,000 ounces at $528 per ounce as higher-grade ore continued to be mined in the open pit and underground and the Cortez mine contributed 170,000 million ounces at $382 per ounce. Barrick is even expecting to increase in gold production from the Cortez property. Assay results predict a higher grade of ore from the Cortez Hills mine when it becomes operational.
There is probably more but thats about all I can digest for one day. Remember buy real money, buy PMs!
Thursday, March 11, 2010
Gold Mining Report-March 11, 2010
Today has been very interesting in the world of gold mining. To wet your whistle, an exploration and aquisition company is now going into the gold production business. Another gold mining company announced that they would acquire 100% of the outstanding common shares of a smaller exploration company without making a hostile take-over bid, and the coup de gras, even though this mining company rose 0.8% to $39.10, the company along with its partner may have some trouble with the locals. The local government threatened to withhold their mining license! Read it on 24K Chuk Kam!
Great Basin Gold Limited usually engages in the acquisition, exploration, and development of precious metal deposits primarily gold and silver deposits. Now it has moved from just an exploration company to a production company. It owns interests in the Hollister gold project and the Esmeralda property in Nevada, and the Burnstone gold project in South Africa. L.A. Little at Real Money is moving into the bullish realm as GBG’s production comes on line. It is well supported in price as a result and any weakness that stems this news needs to be used to accumulate shares.
Kinross Gold . The board of directors of Underworld unanimously recommends the offer to its shareholders. For each Common Share of Underworld, Kinross will offer 0.141 of a Kinross common share, plus $0.01 in cash. The offer represents an implied offer price of ~$2.62 per Common Share. The transaction values the fully-diluted share capital of Underworld at approximately $139.2 M. Underworld's key asset is the White Gold project, in the Tintina gold belt south of Dawson City, Yukon Territory. The project has roughly 1.5 million ounces of resources. Kinross stock is currently trading down 0.8% at $17.90.
Barrick Gold rose 0.8% to $39.10, as the company's CEO Aaron Regent maintains his optimism about Barrick's ability to reach an agreement to develop the huge $3 billion Reko Diq gold-copper project in Pakistan. Barrick and Chilean copper mining company Antofagasta together own the majority of the project, while the local government owns the remaining stake. Many have been worried that the project might be in jeopardy after the local government threatened to withhold a mining license that the companies would need to move the project forward with the project.
Goldcorp reported Q4 (Dec) earnings of $0.25 per share, excluding non-recurring items, in-line with the First Call consensus of $0.25; revenues rose 27.8% year/year to $778.3M vs the $732.4 M consensus. The Company reported gold production of 601,300 ounces at a total cash cost of $289 per ounce for the quarter ended December 31, 2009.
Great Basin Gold Limited usually engages in the acquisition, exploration, and development of precious metal deposits primarily gold and silver deposits. Now it has moved from just an exploration company to a production company. It owns interests in the Hollister gold project and the Esmeralda property in Nevada, and the Burnstone gold project in South Africa. L.A. Little at Real Money is moving into the bullish realm as GBG’s production comes on line. It is well supported in price as a result and any weakness that stems this news needs to be used to accumulate shares.
Kinross Gold . The board of directors of Underworld unanimously recommends the offer to its shareholders. For each Common Share of Underworld, Kinross will offer 0.141 of a Kinross common share, plus $0.01 in cash. The offer represents an implied offer price of ~$2.62 per Common Share. The transaction values the fully-diluted share capital of Underworld at approximately $139.2 M. Underworld's key asset is the White Gold project, in the Tintina gold belt south of Dawson City, Yukon Territory. The project has roughly 1.5 million ounces of resources. Kinross stock is currently trading down 0.8% at $17.90.
Barrick Gold rose 0.8% to $39.10, as the company's CEO Aaron Regent maintains his optimism about Barrick's ability to reach an agreement to develop the huge $3 billion Reko Diq gold-copper project in Pakistan. Barrick and Chilean copper mining company Antofagasta together own the majority of the project, while the local government owns the remaining stake. Many have been worried that the project might be in jeopardy after the local government threatened to withhold a mining license that the companies would need to move the project forward with the project.
Goldcorp reported Q4 (Dec) earnings of $0.25 per share, excluding non-recurring items, in-line with the First Call consensus of $0.25; revenues rose 27.8% year/year to $778.3M vs the $732.4 M consensus. The Company reported gold production of 601,300 ounces at a total cash cost of $289 per ounce for the quarter ended December 31, 2009.
Wednesday, March 10, 2010
Gold Mining Report-March 10, 2010
International Tower Hill Mines and Minatura Gold have new mining news today. We also report on Barrick Gold, Newmont Mining Corporation, Kinross Gold Corporation and GoldCorp stocks. International Tower Hill Mines announced the results of the updated independently prepared resource estimate for the Livengood gold project, located in Alaska. The results of these estimates are anticipated to have a positive impact on the strip ratio and mining economics. The Money Knob deposit is still open in several directions and depths. They estimated yields by using different gold cut-off grades. Using a 0.5 g/t gold cut-off grade, the new estimate yielded an Indicated Resource of 9.3M ounces of gold and an Inferred Resource of 3M ounces of gold. Using a 0.7 g/t gold cut-off, which THM envisions as a possible milling cut-off grade, the Indicated Resource is 5.8M ounces of gold and the Inferred Resource is 1.8M ounces of gold. When they used a 0.3 g/t gold cut-off grade, the average grade for the heap leach as described in the THM’s November 30, 2009 heap leach PEA study, the Indicated Resource is 13.5M ounces of gold, and the Inferred Resource is 5M ounces of gold.
Minatura Gold announced that it has completed drilling of the first of a 50-hole drilling program in certain gold mining concessions located in Colombia’s Department of Antioquia on 1,775 acres, including the Zaragosa Project located on Coco Hondo and Angostura properties. Minatura believes that these areas contain an estimated 50 million cubic meters of material. The first hole of the anticipated 50-hole drilling program was drilled and completed on February 26, 2010. To complete the drilling program, Minatura will be using two churn drills, SonicSampDrill drilling units with crawlers, and is under contract with SonicSampDrill to provide four additional drill masters to operate the units. These areas in the Zaragoza Project were previously dredged by the Plato Gold Dredging Company over 50 years ago. Plato recovered an estimated 700,000 ounces of gold at that time. It is believed that the inefficient dredges used by Plato led to a substantial amount of unrecovered gold deposits. Minatura intends to install and operate a bulk sampling plant to test the tailings above the water table. The Company expects the new plant to be operational by the end of the second calendar quarter in 2010.
Mining stocks were mixed. Barrick Gold opened at $39.48 but ended the day down 0.79 to close at 38.75. Currently, Barrick is down 0.08 in the after-market session. Barrick Gold Corporation primarily engages in the exploration, development, production, and sale of gold worldwide.
Newmont Mining Corporation opened at $51.12 and was rose eagerly to $51.58, but by the end of the session Newmont lost its gains and closed at 50.27. Although right now it is up 0.01 in after-hours trading. Newmont together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Its assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. By end of 2009, Newmont had proven and probable gold reserves of approximately 91.8 M ounces and a total land position of approximately 33,400 square miles.
Another large-cap miner, Kinross Gold Corporation opened at $18.57 and peaked at $18.76 around 10:00am, then continued to slide, losing 0.50 and closing at 18.07. Kinross through its subsidiaries engages in the gold mining and mining related activities such as the exploration for and acquisition of gold-bearing properties, the extraction and processing of gold-containing ores, and reclamation of gold mining properties. Its gold production and exploration activities are carried out principally in the United States, Brazil, Chile, Ecuador, and the Russian Federation. In Q4 2008, its proven and probable mineral reserves were 45.6 M ounces of gold.
Goldcorp opened trading at $40.52, peaked around 11:00am at $40.88 then gave back 0.99 to close at 39.45. Currently it is trading up 0.04 in the after-market session. Goldcorp Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and central and South America.
Minatura Gold announced that it has completed drilling of the first of a 50-hole drilling program in certain gold mining concessions located in Colombia’s Department of Antioquia on 1,775 acres, including the Zaragosa Project located on Coco Hondo and Angostura properties. Minatura believes that these areas contain an estimated 50 million cubic meters of material. The first hole of the anticipated 50-hole drilling program was drilled and completed on February 26, 2010. To complete the drilling program, Minatura will be using two churn drills, SonicSampDrill drilling units with crawlers, and is under contract with SonicSampDrill to provide four additional drill masters to operate the units. These areas in the Zaragoza Project were previously dredged by the Plato Gold Dredging Company over 50 years ago. Plato recovered an estimated 700,000 ounces of gold at that time. It is believed that the inefficient dredges used by Plato led to a substantial amount of unrecovered gold deposits. Minatura intends to install and operate a bulk sampling plant to test the tailings above the water table. The Company expects the new plant to be operational by the end of the second calendar quarter in 2010.
Mining stocks were mixed. Barrick Gold opened at $39.48 but ended the day down 0.79 to close at 38.75. Currently, Barrick is down 0.08 in the after-market session. Barrick Gold Corporation primarily engages in the exploration, development, production, and sale of gold worldwide.
Newmont Mining Corporation opened at $51.12 and was rose eagerly to $51.58, but by the end of the session Newmont lost its gains and closed at 50.27. Although right now it is up 0.01 in after-hours trading. Newmont together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Its assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. By end of 2009, Newmont had proven and probable gold reserves of approximately 91.8 M ounces and a total land position of approximately 33,400 square miles.
Another large-cap miner, Kinross Gold Corporation opened at $18.57 and peaked at $18.76 around 10:00am, then continued to slide, losing 0.50 and closing at 18.07. Kinross through its subsidiaries engages in the gold mining and mining related activities such as the exploration for and acquisition of gold-bearing properties, the extraction and processing of gold-containing ores, and reclamation of gold mining properties. Its gold production and exploration activities are carried out principally in the United States, Brazil, Chile, Ecuador, and the Russian Federation. In Q4 2008, its proven and probable mineral reserves were 45.6 M ounces of gold.
Goldcorp opened trading at $40.52, peaked around 11:00am at $40.88 then gave back 0.99 to close at 39.45. Currently it is trading up 0.04 in the after-market session. Goldcorp Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and central and South America.
Monday, March 8, 2010
Gold Mining Report- March 8, 2010
Three gold mining companies were in the news today. There was the discovery of a possible new high yield gold target, a huge sale of mining company stock to Soros Fund Management, and positive initial test results on a new gold extraction and processing method that could dratically reduce the volume of material used to recover the shiny stuff.
Paramount Gold and Silver announced a second bulk mineable target has been discovered at San Miguel project in new San Francisco, Mexico area. The new target generated some unusually high assay results. Paramount owns a 100% interest in the 466,000 acre San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in the area.
NovaGold Company announced that it is proposing to issue more than 13.6 Million (M) common shares of the company at $5.50 per common share for gross proceeds of $75M to Quantum Partners, a private investment fund managed by Soros Fund Management. This capital is in addition to the $100M financing announced by the company on March 4th of this year. The gross proceeds to be raised under the two financings total US$175 million.
Lastly, International Tower Hill Mines announced key initial metallurgical test results for mill processing of the major types of mineralization at the Money Knob deposit at the Livengood Gold Project in Alaska. The initial gravity and flotation gold recovery test results were highly encouraging for the use of a pre-concentration gold recovery system for the Money Knob mineralization. Potentially, both the operating and capital costs for a milling operation could be reduced by using this treatment for gold extraction. The initial extraction method results indicated that it could reduce by 80% the material volume used to recover gold. The company is currently engaged in further testing and optimization of both the concentration process and the extraction of gold from the concentrates.
That is your day in gold mining. Stay tuned for the Gold Mining Report as I hope to make it a regular feature of this blog.
Paramount Gold and Silver announced a second bulk mineable target has been discovered at San Miguel project in new San Francisco, Mexico area. The new target generated some unusually high assay results. Paramount owns a 100% interest in the 466,000 acre San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in the area.
NovaGold Company announced that it is proposing to issue more than 13.6 Million (M) common shares of the company at $5.50 per common share for gross proceeds of $75M to Quantum Partners, a private investment fund managed by Soros Fund Management. This capital is in addition to the $100M financing announced by the company on March 4th of this year. The gross proceeds to be raised under the two financings total US$175 million.
Lastly, International Tower Hill Mines announced key initial metallurgical test results for mill processing of the major types of mineralization at the Money Knob deposit at the Livengood Gold Project in Alaska. The initial gravity and flotation gold recovery test results were highly encouraging for the use of a pre-concentration gold recovery system for the Money Knob mineralization. Potentially, both the operating and capital costs for a milling operation could be reduced by using this treatment for gold extraction. The initial extraction method results indicated that it could reduce by 80% the material volume used to recover gold. The company is currently engaged in further testing and optimization of both the concentration process and the extraction of gold from the concentrates.
That is your day in gold mining. Stay tuned for the Gold Mining Report as I hope to make it a regular feature of this blog.
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