| 06/26/2010
www.insidemetals.com |
Vol
5, Issue 11 |
|
 |
In
This Edition...
Precious
Metals Market Update
Gold & Silver ETF's
Geopolitical View
Gold
Producer News
Website Updates
|
|
| Dear
Subscriber, |
| The
newsletter will be published next on
July 17, 2010. |
| IN THIS
EDITION OF INSIDEMETALS
|
|
In this edition of the InsideMetals
Newsletter, we'll take a look at gold
& silver ETF's, production, pricing
and news, as well as precious metals
trends, gold producer news and recent
website updates, which includes our new
Advertising and Media Kit information.
|
|
 |
| In
This Issue |
| Precious
Metals Markets Update |
| Geopolitical
View |
| Whitney
& Whitney Inc. |
| NYSE
Gold Producer News |
| AMEX
Gold Producer News |
| NASD
Gold Producer News |
| InsideMetals.com
Website Updates |
|
| PRECIOUS METALS
MARKET UPDATE |
|
Gold closed
at $1236.25/oz (London Fix) on June 24
2010, a 1.5% increase from the
$1217.50/oz (London Fix) closing price
on June 10, 2010, when data for the
previous newsletter was gathered.
Silver closed
at $18.38/oz (London Fix) on June
24, 2010, a 2.2% increase from the
$17.98 oz (London Fix) closing price
on June 10, 2010.
Platinum closed
at $1549.00/oz (London Fix) on June
24, 2010, a 1.2% increase from the
$1530.00/oz (London Fix) closing
price on June 10, 2010.
Palladium closed
at $466.00/oz (London Fix) on June
24, 2010, a 3.6% increase from the
$450.00/oz (London Fix) closing
price on June 10, 2010.
GOLD vs. EURO/U.S.
DOLLAR CHART
Gold closed at $1236.25 on June 24,
2010. The metal traded in a narrow range
between $1075.00 and $1150.00 from
mid-February through mid-April, then
gold started to climb and established a
new record high close of $1256.00
(London Fix) on June 18, 2010. During
the mid-February to mid-April period of
consolidating gold prices, the US dollar
began to climb in value with respect to
the euro. The dollar then began to soar
in value to the euro in mid-May, as
concerns about the economies of several
European countries, principally Greece
and Portugal increased. The Euro/$ value
on April 22, 2010 was 1.3339, and on
June 24, 2010 it was 1.2262.
The above chart reflects the usual
parallel movement in the price of gold
and the value of the U.S. dollar since
early 2008, until early 2010. In the
last couple of months there has been a
steady increase in the dollar while
the gold prices have fluctuated with
respect to the U.S. dollar as
indicated by the strong divergence in
the two lines.
|
| Advertise to
a world-wide targeted audience |
 
|
| Gold
& Silver ETF's |
The SPDR Gold Trust (GLD) now controls
a record 42,316,395 ounces of gold.
The gold holdings that have been
steadily increasing since October 2008
have been recently consolidating as
gold prices have risen from $925 in
July 2009 to current levels above
$1,225 per ounce. GLD holdings were
41,993,615 ounces when this newsletter
was last issued.
The
accumulation
of silver by
the iShares
Silver Trust
(SLV) has
been
steadily
increasing
since early
2008, in
spite of
declining
silver
prices
beginning in
August 2008
through
October
2008. SLV
silver
holdings and
the price of
silver moved
upward in
mid-January.
Silver
prices and
SLV silver
holdings had
been
steadily
rising since
July 2009
and reached
a record
305,893,368
ounces on
December 3,
2009, when
the price of
silver
closed above
$19.00 per
ounce
(London
Fix). After
several
months of
consolidating
silver
prices and a
decline in
ounces
controlled
by the SLV,
there has
been a
recent rise
in the
silver price
above $19.50
per ounce
and a
decline in
the number
of ounces
controlled
by the
trust. The
SLV
currently
holds
295,042,345
ounces of
silver, a
decline of
approximately
2,498,319
ounces since
the
newsletter
was last
published.
Both the
GLD and
SLV are
maintaining
their
positions
in spite
of recent
sharp
fluctuations
in gold
and silver
prices.
This
suggests
that
investors
continue
to believe
in the
long term
prospects
for gold
and
silver.
|
2007
Silver Nevada Miner Bar -
99.9% Pure 5 Troy Ounces of American
History
|
|
|
| GEO POLITICAL
VIEW |
STORM CLOUDS CALL FOR A
GOLD UMBRELLA
sset managers and investor may
want to seriously ponder the
storm clouds that are building
and will soon be darkening the
view of our economic future.
An article posted in Mineweb
by Lawrence Williams on June
23, 2010, points out that
forty-eight U.S. states will
be incurring deficits in 2010
that will probably exceed $300
billion. As a comparison,
Williams brings up the fact
that the deficit in Greece
that shook up world finances
was $28 billion --- about
13.6% of their GDP. States
such as California, New York,
Florida, and Illinois will
have deficits exceeding 20% of
their revenue. These
shortfalls will undoubtedly
require Federal bailouts
because defaults are
unthinkable because of the
upcoming November elections,
and the reality of little or
no improvement in the
employment picture.
Without a significant
improvement in employment
the real estate market will
continue in its malaise, and
with the expectation that
the Bush tax cuts will not
be renewed it has been
predicted that there will be
a decline in income in 2011
as production and income has
been shifted into 2010 to
take advantage of the more
favorable current tax rates;
therefore, since 2010 is
expected to be more
favorable to business with
respect to taxes than 2011,
what do we have to look for
in 2011?
With more economic
uncertainty ahead, now is
the time to be adding good
low cost gold and silver
producing stocks to your
portfolio such as Goldcorp
Inc., Yamana Gold Inc, and
Silver Wheaton Corp.
|
Advertise to
a world-wide targeted audience
|
|
Whitney
& Whitney Inc. -
A Nevada Based Management Consulting
Firm
|
|
|
| NYSE
GOLD PRODUCER NEWS |
June
11, 2010: Coeur
d'Alene
Mines Corp.
(CDE) is
preparing to
halt
operations
at its
Martha mine
in the Santa
Cruz
province in
Argentina as
the mine's
reserves are
nearing
depletion.
Operations
are
scheduled to
end in late
2010.
Exploration
is ongoing
to determine
if the
mine's life
can be
extended.
CDE plans to
keep the
mine on care
and
maintenance
until it can
find a
buyer. A
permanent
closure
would force
CDE to fund
costly
reclamation
and closure
activities
as required
by
environmental
laws.
June
17, 2010: Barrick
Gold Corp.
(ABX).
Senior
manager of
taxation,
Sean Jermy
said that
Australia's
proposed
tax on
resources
would
impact
Barrick's
decision
on
investing
in the
country.
The 40%
tax on
super
profits
would
improve
the
attractiveness
of other
destinations
outside of
Australia.
Jermy
quoted
Western
Australian
Mines and
Petroleum
Minister,
Norman
Moore, who
has
previously
said that
the state
had around
A$170-billion
worth of
resource
investments
pending,
of which
25% could
be lost
owing to
the super
profits
tax.
une
17, 2010: Eldorado
Gold Corp.
(EGO)
provided
an updated
on its
2010
exploration
program.
The
company
has
budgeted
$35.4
million
for
exploration
in 2010 to
conduct
generative,
early
stage,
advanced,
and mine
site
programs.
At the
Kisladag
mine in
Turkey a
new zone
of
mineralization
was
identified
adjacent
to the
southeast
boundary
of the
deposit,
outside
the
current
pit
design. At
the
Tanjianshan
project in
China,
infill and
step-out
drilling
has
discovered
the 323
zone. At
the
Efemcukuru
development
project in
Turkey,
systematic
step-out
drilling
has
located
the
Kokarinar
vein over
a strike
length of
600
meters.
Refer to
the press
release
for
details of
the
exploration
results.
June
17, 2010: Gammon
Gold Inc.
(GRS)
reported
that it
fired 397
union
workers
and is in
the
process of
filing
criminal
charges
against
seven
union
executives
in the
wake of
labor
disruptions
at its El
Cubo mine
in Mexico.
GRS has
said the
mine has
been
plagued by
low union
productivity
and
untenable
financial
demands
from
employees.
As a
result GRS
suspended
operations
at the
mine.
June
17, 2010: Newmont
Mining
Corp.
(NEM)
reported
that its
Batu Hijau
copper/gold
mine
operated
by an
Indonesian
joint
venture
may
produce
10%-20%
less than
expected
in 2020
because of
heavy
rainfall.
Sales
would not
be
affected
because
there are
sufficient
stockpiles
to cover a
decline in
production.
In spite
of an
anticipated
decline in
expected
production
for 2010,
the mine
may
produce
573
million
pounds of
copper in
2010, up
from 479
million
pounds
produced
in 2009.
June
18, 2010: Agnico-Eagle
Mines Ltd.
(AEM)
announced
that it
will hold
its grand
opening in
Nunavult
for the
Meadowbrook
open pit
gold mine
which is
located
approximately
110 km by
road north
of Baker
Lake in
Nunavult's
Kivalliq
region.
The mine
is
expected
to produce
300,000
ounces of
gold per
year until
2019.
Meadowbrook
is
Nunavult's
newest and
only
operating
mine. The
mine will
employ
approximately
340
workers
when it
begins
commercial
production.
June
18, 2010: Gammon
Gold Inc.
(GRS)
announced
that it
has
executed a
binding
Letter of
Intent
(LOI)
agreement
that will
give them
the option
to acquire
a 43,229
hectare
block of
mineral
concessions
called the
Los Jarros
Properties
from
Valdez
Gold Inc.
Under
terms of
the LOI,
Gammon
will have
the option
to
purchase a
100%
interest
in the
properties
through a
series of
successive
payments
within 48
months
from the
date of
executing
the
agreement.
Gammon is
required
to make
payments
over four
years
totaling
$2.5
million.
The claims
are
contiguous
to
Gammon's
Ocampo
land
package on
the north
and east;
the claims
also
surround
Agnico-Eagle's
Pinos
Altos
property;
and cover
regional
extensions
of the
Concheno
properties
of Frisco
Mining.
Past work
by Valdez
has
identified
a
high-sulfidation
epithermal
gold
prospect
in the
southern
portion of
the
properties.
June
22, 2010: Goldcorp
Inc. (GG)
announced
that its
second
sulfide
processing
line (Line
2) at the
Penasquito
mine in
Zacatecas,
Mexico has
achieved
mechanical
completion
ahead of
its
previously
expected
third
quarter
completion
date. Line
2 is now
in a
commissioning
phase and
ramping up
toward its
designed
50,000
tonne/day
capacity.
Line 1 is
operating
at its
designed
daily
50,000
tonne/day
throughput.
Declaration
of the
project
achieving
commercial
production
remains on
schedule
for the
third
quarter.
Construction
of a
30,000
tonnes/day
high
pressure
grinding
roll
circuit
(HPGR) is
on track
for
completion
in the
fourth
quarter.
Full
production
ramp-up to
the
designed
130,000
tonne/day
capacity
remains on
track for
early
2011.
Mining
rates at
Penasquito
are in
excess of
500,000
tonnes/day
and
concentrate
grades and
quality
are within
expectations.
June
23, 2010: Barrick
Gold Corp.
(ABX). The
9th
Circuit
Court of
Appeals
ordered
the Bureau
of Land
Management
to
reassess
the
environmental
impacts
and expand
its
analysis
of the
cumulative
effects of
the
exploration
being
conducted
by Barrick
across
nearly 48
square
miles of
northeast
Lander
County,
Nevada.
The Cortez
Hills area
being
explored
and
developed
by Barrick
is
considered
sacred by
tribes and
conservationists
are
concerned
that
mining may
adversely
impact
groundwater
quality.
June
23, 2010: Coeur
d'Alene
Mines
Corp.
(CDE) has
entered
into a
contract
with China
National
Corp. to
sell gold
concentrate
produced
from their
Kensington
gold mine
in Alaska.
Kensington
is
expected
to produce
50,000
ounces of
gold in
2010, and
average
125,000
ounces of
annual
production
over a
12.5 year
mine life.
Based on a
current
mine
reserve of
1.5
million
ounces,
China
National
will
purchase
approximately
half of
Coeur's
concentrate
produced
at
Kensington.
June
24, 2010: Goldcorp
Inc. (GG)
said there
is no
basis for
suspending
operations
at its
Marlin
mine in
Guatemala.
On
Thursday,
January
24th, the
government
announced
that it
would
suspend
operations
at Marlin
due to
allegations
it was
contaminating
water
supplies,
even
though, as
of late
Wednesday,
it had not
been able
to confirm
allegations
through
testing.
June
24, 2010: Kinross
Gold Corp.
(KGC).
Drilling
has
commenced
on the
Council
gold
project in
Alaska, a
joint
venture
with
Millrock
Resources
Inc. The
$800,000
exploration
program
located on
the Seward
Peninsula
will
consist of
2,500
meters of
reverse
circulation
drilling
to test
for
hard-rock
gold
deposits
in the
uplands
surrounding
the
historic
placer
workings.
Millrock
is acting
as the
operator.
KGC can
earn a 55%
joint
venture
interest
in this
project,
and other
properties
defined by
the joint
venture
agreement
by
incurring
exploration
expenditures
of $3
million,
and paying
Millrock a
total of
$260,000.
KGC can
earn an
additional
20%
interest
for a
total 75%
interest
by
expending
another $3
million
and by
assuming
obligations
of two
underlying
agreements
on the
Council
project's
area of
interest.
|
| AMEX
GOLD PRODUCER NEWS |
|
June
14,
2010: Aurizon
Mines
Ltd.
(AZK)
announced
results
from
its
surface
infill
drilling
program
at
Casa
Berardi
in
northwestern
Quebec.
The
68-hole
(12,803
meter)
program
drilled
in
the
designated
Principal
Area,
which
is
located
approximately
1.0
km
east
of
the
West
Mine
Shaft,
and
is
being
evaluated
as
an
open
pit
by
a
pre-feasibility
study
which
is
scheduled
to
be
completed
in
the
fourth
quarter.
As
of
December
31,
2009,
the
crown
pillar
of
the
Principal
Area
hosts
an
indicated
mineral
resource
of
1.8
million
tonnes
at
6.2
grams
of
gold
per
tonne
for
350,000
ounces
of
gold
and
an
inferred
mineral
resources
of
0.8
million
tonnes
at
6.0
grams
per
tonne
for
162,000
ounces
of
gold.
Sixty-six
of
the
sixty-eight
holes
drilled
were
successful
in
intersecting
gold
mineralization
above
the
cut-off
grade
of
1.0
gram
per
tonne.
The
results
of
the
infill
drilling
program
will
be
integrated
into
a
new
resource
which
is
expected
to
be
released
in
the
third
quarter
of
2010.
June
14,
2010: Claude
Resources
Inc.
(CGR)
reported
new
exploration
results
from
its
ongoing
underground
drill
program
at
its
100%
owned
and
operated
Seabee
Gold
Mine.
Highlights
from
the
drill
program
include
46.06
grams
of
gold
per
tonne
over
4.30
meters
of
true
width
at
Seabee
Gold
Mine
in
drill
hole
U10-631
and
15.90
grams
per
tonne
over
6.30
meters
true
width
in
hole
U10-629.
At
its
Santoy
8
gold
deposit
mining
is
being
conducted
via
a
ramp
at
the
30
and
50
meter
levels
below
the
surface.
The
Santoy
8
gold
deposit
is
expected
to
positively
impact
the
company's
production
profile
and
unit
cost
structure.
During
April,
and
May
2010,
the
production
and
head
grade
from
the
Seabee
mine
produced
8,489
ounces
at
an
average
head
grade
of
8.48
grams
of
gold
per
tonne.
CGR
maintains
its
production
forecast
of
between
46,000
to
50,000
ounces
of
gold
in
2010,
and
will
include
commencement
of
commercial
production
at
Santoy
8
in
late
2010.
June
18,
2010: Richmont
Mines
Inc.
(RIC)
announced
that
its
proposed
acquisition
of
30%
of
the
issued
and
outstanding
shares
of
Louvern
Mines
Inc.
not
currently
owned
by
RIC,
has
been
approved
by
Louvern
shareholders.
Louvern
shareholders
and
shareholders
of
a
Richmont
subsidiary,
9222-0383
Quebec
Inc.
will
amalgamate
under
Part
IA
of
the
Quebec
Companies
Act
one
share
of
RIC
for
each
5.4
shares
of
Louvern
held.
RIC
expects
to
issue
1.4
million
common
shares
during
the
week
of
July
5,
2010.
June
23,
2010: Aurizon
Mines
Ltd.
(AZK)
has
entered
into
an
exploration
agreement
with
Typhoon
Exploration
Inc.
to
explore
Typhoon's
Fayolle
Project
in
Quebec.
A
$3.5
million,
15,000
meter
drilling
programs
will
commence
in
July
and
should
be
completed
by
the
end
of
the
year.
The
Fayolle
project
is
a
porphyry-type
gold
target
located
along
a
2.5
x
1
km
shear
zone.
The
property
contains
an
inferred
mineral
resource
totaling
113,000
ounces
of
gold
delineated
to
date
to
a
depth
of
100
meters.
|
| NASDAQ
GOLD PRODUCER NEWS |
June
14, 2010: Pan
American
Silver Corp.
(PAAS) has
reached an
agreement with
a local
subsidiary of
Chinalco on
the long-term
surface rights
for property
around
projects owned
by the two
companies in
Peru. PAAS
owns the
Morococha
mine. and
Minera
Chinalco Peru
(MCP) plans to
develop the
adjacent
Toromocha
copper
project. Part
of the
Morococha mine
infrastructure
and facilities
are located on
ground not
owned by PAAS,
and which MCP
needs for its
Toromocha pit.
Under terms of
the agreement
PAAS will
relocate the
Morococha
facilities
over a five
year period
and transfer
certain
mineral
concessions
and access
rights to MCP.
In exchange,
PAAS will
receive a
package of
surface
rights,
easements and
other rights
that are
beneficial to
PAAS, which
include rights
to a number of
mineral
concessions
outside the
planned
Toromocha pit
where
high-grade
silver veins
have been
identified.
PAAS will also
receive a
total of $40
million in
staged
payments to
offset part of
the capital
needed to
relocate
facilities.
January
23, 2010: Royal
Gold Inc.
(RGLD)
priced a
public
offering of
5.2 million
shares at
$48.50 per
share. The
underwriters
have an
option on
780,000
additional
shares. The
offering
could
provide
proceeds of
$240.3
million to
pay down
debt, fund
acquisitions
and for
general
corporate
purposes.
HSBC
Securities
is the
global
coordinator
for the
offering.
Goldman
Sachs and
Scotia
Capital are
also
participating.
|
| INSIDEMETALS.COM WEBSITE
UPDATES |
InsideMetals has
added to the Home Page of its
website, an Advertising
& Marketing Guide link
for readers who may be interested in
advertising their business on the
InsideMetals website, or in the
newsletter. The website has been
visited by readers from more than
184 countries.
The Advertising
& Marketing Guide contains
basic demographic information as
to the regions in the world from
which the website is viewed;
information as to banner
advertisements and placements in
the website and in the newsletter;
and special Gold
and Silver Medallion Advertising
Programs that
are available to mining and
exploration companies.
If interested, please visit the
following links for more information:
|
|
| |
 30
Day No Risk Offer to Our Premium
Subscription
InsideMetals provides unique coverage of
over 35 major publicly traded gold
producers across the NYSE,
NASDAQ and AMEX: everything
from full business summaries,
financials, production and reserve
reports, news, tools and more.
Not only do you receive these great
benefits, you get positive
and negative ranking numbers for
each gold stock that indicate investment
potential... empowering you to make
educated and informed investment
decisions.
Why not see for yourself how valuable
InsideMetals is by taking full advantage
of our 30 Day No Risk Offer?
Get
your 30 Day No Risk Subscription Now! |
|
|
We
hope you have enjoyed our newsletter.
The newsletter will be published next
on July 17, 2010.
Until next time!!!,
InsideMetals
|
|
|
