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In
This Edition...
Precious
Metals Market Update
Gold & Silver ETF's
Geopolitical View
Gold
Producer News
Website Updates
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| Dear
Subscriber, |
| The
newsletter will be published
next on July 31, 2010. |
| IN THIS
EDITION OF INSIDEMETALS
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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.
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| 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 |
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| PRECIOUS METALS
MARKET UPDATE |
|
Gold closed
at $1208.00/oz (London Fix)
on July 15, 2010, a 2.3%
decrease from the
$1236.25/oz (London Fix)
closing price on June 24,
2010, when data for the
previous newsletter was
gathered.
Silver closed
at $18.42/oz (London Fix) on
July 15, 2010, a 0.2%
increase from the $18.38 oz
(London Fix) closing price
on June 24, 2010.
Platinum closed
at $1530.00/oz (London Fix)
on July 15, 2010, a 1.2%
decrease from the
$1549.00/oz (London Fix)
closing price on June 24,
2010.
Palladium closed
at $470.00/oz (London Fix)
on July 15, 2010, a 0.9%
increase from the $466.00/oz
(London Fix) closing price
on June 24, 2010.
GOLD vs.
EURO/U.S. DOLLAR CHART
Gold closed at
$1208.00 on July 15, 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 $1261.00
(London Fix) on June 28, 2010.
During the mid-February to
mid-April period of
consolidating gold prices, the
US dollar began to climb in
value with respect to the euro.
The dollar then began to soar in
value to the euro in mid-May, as
concerns about the economies of
several European countries,
principally Greece and Portugal
increased. The Euro/$ value on
April 22, 2010 was 1.3339, and
declined to less than 1.20 in
early June 2010.
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.
In the last couple of weeks
the price of gold and the
Euro/$ value are starting to
converge as the US dollar has
weakened and the Euro/$ ratio
closed at 1.2828 on July 15,
2010.
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| Gold
& Silver ETF's |
The SPDR Gold Trust (GLD) now
controls 42,253,189 ounces of
gold. The trust's gold
holdings have been steadily
increasing since October 2008
and reached record holdings of
42,453,322 ounces on June 29,
2010. GLD holdings were
42,316,395 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
295,313,280
ounces
of
silver,
an
increase
of
approximately
271,434
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.
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2007
Silver Nevada Miner Bar -
99.9% Pure 5 Troy Ounces of
American History
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| GEO POLITICAL
VIEW |
DAY ONE IN
MARGARITAVILLE
Singer Jimmy
Buffet blames
George Bush for
the gulf oil
spill. Buffet says
that the roots of
the spill lie with
the Bush
administration
which was too cozy
with Big Oil. I
wonder if Buffet
would be so
forgiving of Obama
if he knew the
President had been
warned that the
government was
unprepared for a
major spill in the
gulf, almost one
year prior to BP's
Macondo well
blowout.
A front page
article in The
Wall Street
Journal on July 5,
2010 by Neil King
and Keith Johnson
points out that
the Obama
administration was
warned about the
dangers of
offshore drilling
in April of 2009
through a federal
appeals court's
decision on a case
that was brought
two years earlier
by indigenous
Alaskans and a
coalition of
environmental
groups which
challenged
Bush-era plans to
lease large chunks
of offshore Alaska
to oil drilling.
The court agreed
with the
plaintiffs that
government didn't
adequately account
for the
environmental
perils raised by
drilling on the
continental slope.
The court agreed
and found that the
government was not
prepared for a
major spill at
sea, especially in
deep water.
Following recent
criticism
regarding
President Obama's
seemingly delayed
actions concerning
the oil spill, he
claims he was in
charge since day
one. When did day
one begin?
Leadership calls
for taking actions
when warned of a
potential problem.
The Obama
administration
instead urged the
court to revisit
the decision. The
administration
needed to push
ahead to show
support for the
public's clamoring
of
drill-baby-drill,
the government
also didn't want
to sustain the
loss of royalties
generated from
offshore
production
estimated at $10
billion and income
from future
offshore leases.
The U.S. Court of
Appeals reversed
its decision and
allowed drilling
to proceed in the
Gulf of Mexico,
including BP's
Macondo deep well
which blew out.
There was ample
warning for the
government to get
serious about
drill rig
inspections and
scrutiny. Drilling
was started on the
Macondo well on
February 2010.
There was also
ample time for the
government to
clean up the
problems
identified months
earlier by an
inspector
general's report
of the Minerals
Management Service
which was laden
with reported
scandals. When the
well blew out, the
government was
hesitant to
mobilize its
resources and
implement approved
mitigation plans
to burn the oil at
sea before it
soiled the
beaches,
fisheries, and
wildlife.
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Consulting Firm
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| NYSE
GOLD PRODUCER NEWS |
June
28,
2010: Gammon
Gold
Inc.
(GRS)
lowered
its 2010
production
and cash
outlook
for its
Ocampo
mine to
reflect
the
shutdown
of
operations
at its
El Cubo
mine in
Mexico.
Gammon
now
expects
its 2010
gold
production
at
Ocampo
to range
between
100,000
to
110,000
ounces
and its
silver
output
to range
between
4.40
million
to 4.95
million
ounces,
with
total
cash
costs of
$425 to
$450 per
gold
equivalent
ounce.
In
March,
the
company
said it
was
expecting
gold
production
of
150,000
to
180,000
ounces
of gold
and
silver
production
of 6.1
million
to 6.8
million
ounces,
with
total
cash
cost
estimated
at $440
to $475
per gold
equivalent
ounce.
Gammon
also
said it
would
redeploy
154
contract
workers
and
underground
mining
equipment
from El
Cubo to
support
expanded
operations
at
Ocampo.
A labor
dispute
at El
Cubo in
June has
resulted
in an
indefinite
suspension
of
operations
and the
termination
of 397
union
jobs.
June
28,
2010: Harmony
Gold
Mining
Company
Ltd.
(HMY)
suspects
the
involvement
of
criminal
mining
activity
to be
the
cause
of
last
week's
underground
explosion
at its
Phakisa
mine
in the
Free
State
(South
Africa),
in
which
four
people
died.
Harmony
CEO,
Graham
Briggs,
said
that
while
the
cause
of the
explosion
has
not
been
determined,
"booby-trap"
explosive
devices
similar
to the
type
made
by
illegal
miners
were
found
some
900
meters
from
the
accident
scene
while
work
was
done
to
restore
ventilation
to
level
66.
June
29,
2010: Coeur
d'Alene
Mines
Corp.
(CDE)
has
started
production
at its
Kensington
Mine
in
Alaska.
The
company
expects
to
produce
50,000
ounces
of
gold
during
2010,
and
will
average
approximately
125,000
ounces
of
gold
annually
over
the
mine's
initial
12.5
year
mine
life.
Coeur's
CEO,
Dennis
Wheeler,
said
Kensington
represents
the
company's
third
new
metals
mine
to
start
production
in the
past
three
years.
June
29,
2010: Goldcorp
Inc.
(GG).
In
order
to
meet
its
international
treaty
obligations,
the
government
of
Guatemala
announced
that
it
would
suspend
operations
at
Goldcorp's
Marlin
mine
following
complaints
that
operations
were
contaminating
water
supplies.
The
suspension
will
be
ordered
even
though
the
allegations
have
not
been
confirmed
through
testing.
The
government
is
complying
with
the
request
for
suspension
made
by the
Inter-American
Commission
for
Human
Rights
on
behalf
of
communities
residing
near
the
mine.
June
29,
2010: Gold
Fields
Ltd.
(GFI)
announced
that
its
Group's
attributable
production
for Q4
F2010
is
expected
to be
about
895,000
ounces,
which
is at
the
upper
end of
the
guidance
provided
on May
7,
2010.
Total
cash
cost
and
notional
cash
expenditure
for Q4
F2010
are
also
expected
to be
within
the
guidance
provided.
Attributable
production
for
the
Group's
four
regions
(South
Africa,
West
Africa,
South
America,
and
Australasia)
increased
13%
compared
with
the
March
quarter.
Gold
Fields'
Annual
Report
and Q4
F2010
results
will
be
published
on
Thursday,
August
5,
2010.
June
29,
2010: IAMGOLD
Corp.
(IAG)
announced
that
its
Essakane
gold
mine
in
Burkina
Faso
in
West
Africa
started
production
six
weeks
ahead
of its
previously
planned
schedule
and a
full
six
months
ahead
of the
original
target
of
year-end
2010.
IAG
began
processing
ore
last
week
and
the
mill
is
operating
as
planned.
Essakane
is
IAG's
first
greenfield
project
built
in
Africa.
Commercial
production
will
be
achieved
on the
first
of 30
consecutive
days
on
which
total
ore
processed
exceeds
445,000
tonnes,
which
is 60%
of the
designed
throughput.
Initially,
only
soft
oxide
ore
will
be fed
to the
plant
for
the
first
few
months
while
construction
of the
primary
crusher
is
ongoing
and
should
be
completed
in
about
six
weeks.
June
30,
2010: Gammon
Gold
Inc.
(GRS)
reported
that
drilling
at its
Guadalupe
y
Calvo
mine
in
Mexico
identified
a
bonanza
grade
intercept
of 1.1
meters
assaying
63.68
grams
per
tonne
gold
equivalent
using
a
gold-silver
ratio
of
55:1.
Gammon
said
52,681
meters
of the
2010
planned
75,800
meters
of
drilling
at
Ocampo
and
Guadalupe
y
Calvo
has
been
completed
and
high
grade
discoveries
have
been
made
at
Santa
Eduviges,
Belen,
San
Amado,
Jesus
Maria,
Maria,
Molinas
Southwest,
Rosario,
and
the
southern
extensions
of
Aventurero
targets.
At
Ocampo,
newly
discovered
multiple
veins
in the
Molinas
SW
target
area
will
require
an
entire
new
direction
for
future
development
and
mining.
Work
in
2009
identified
potential
mineralization
to the
northeast
in the
San
Amado
district,
and to
the
southeast
in the
Aventurero
and
Rosario
districts.
Now
the
Molinas
SW
target
indicates
that
the
underground
mine
is
open
to
expansion
to the
northwest.
Development
is
progressing
at San
Eduviges
and
recent
surface
drilling
of
Santa
Juliana
vein
structures
is
targeting
mineralization
below
200
meters.
Underground
development
on the
Aventurero
vein
is
currently
275
meters
away
from
the
intersection
of the
Aventurero
vein
with
the
Santa
Juliana
vein
structures.
The
2010
drilling
at
Guadalupe
y
Calvo
has
extended
known
mineralization
by
approximately
140
meters
further
along
strike
with
completion
of 6
core
holes
(2,514
meters)
which
have
produced
encouraging
assays,
including
the
bonanza
grade
intercept
reported
above.
June
30,
2010: Goldcorp
Inc.
(GG)
announced
that
it
would
implement
recommendations
from a
recent
human-rights
assessment
in
everyday
operations
at its
controversial
Marlin
mine
in
Guatemala.
The
local
government
has
threatened
to
suspend
operations
at the
Canadian-owned
mine
located
in San
Miguel
Ixtahucan
after
reports
of
contaminated
water
and
elevated
levels
of
mercury,
copper,
zinc,
arsenic
and
lead
in the
blood
and
urine
of
people
living
nearby.
July
1,
2010: Kinross
Gold
Corp.
(KGC)
completed
its
acquisition
of
Underworld
Resources
in a
cash-and-share
transaction
valued
at
C$139.2
million.
KGC
held
an
8.5%
stake
in the
company
prior
to
completion
of
this
transaction.
Underworld's
main
asset
is the
White
Gold
project,
which
is
located
in the
Yukon
Territory.
The
White
Gold
project
hosts
the
Golden
Saddle
Deposit
which
includes
an
initial
resource
estimated
at 1
million
ounces
at a
3.2
grams/tonne
grade
of
gold
in the
indicated
category
and an
additional
407,000
ounces
at 2.5
grams/tonne
grade
in the
inferred
category.
July
2,
2010: Compania
de
Minas
Buenaventura
SA
(BVN)
reported
that
union
mine
workers
at
Uchucchacua,
which
produces
silver,
and
mine
workers
at
Orcopampa,
a gold
mine
are
considering
going
on a
strike
to
press
the
company
for
higher
wages.
Orcopampa
produced
8,549,730
grams
of
gold
in
2009.
Uchucchacua
produced
286,039
kilograms
of
silver
in
2009.
July
6,
2010: Barrick
Gold
Corp.
(ABX)
announced
that
the
Placer
Dome
2.75%
convertible
senior
debentures
due
2023
may be
surrendered
for
conversion
until,
and
including
September
30,
2010.
The
conversion
rate
is
40.8296
common
shares
per
$1,000.00
principal
amount
of
debentures.
July
8,
2010: Harmony
Gold
Mining
Company
Ltd.
(HMY)
has
exited
the
Australian
mining
sector,
and
has
sold
its
Mount
Magnet
gold
project
in
Western
Australia's
Goldfields
region
to
Ramelius
Resources
Ltd.
for
$40
million.
In
2007,
Harmony
sold
Mount
Magnet
to
Monarch
Gold
Mining
Company
Ltd.
for
$65
million,
but
ownership
reverted
to
Harmony
in
2008
after
Monarch
went
into
administration
and
terminated
the
purchase
agreement.
The
Mount
Magnet
project
includes
the
historic
Hill
50
gold
mine
which
has
produced
5.6
million
ounces
since
its
discovery
in
1891.
July
8,
2010: Gammon
Gold
Inc.
(GRS)
announced
that
it has
entered
into
an
agreement
with
Corex
Gold
Corp
to
acquire
4,706,000
units
of
Corex
pursuant
to a
non-brokered
private
placement
at
C$0.68
per
unit.
Each
unit
consists
of one
common
share
and
one
half
of one
share
purchase
warrant
exercisable
for a
period
of 24
months
from
the
closing
date
of the
transaction
at
C$0.90
per
warrant.
The
private
placement
will
provide
Corex
funds
totaling
C$3,200,080.
Corex
will
place
an
additional
1,694,000
units,
with
other
qualified
investors
for
C$4,400,000.
After
participating
in the
private
placement
Gammon
will
hold
approximately
12% of
the
issued
and
outstanding
shares
of
Corex.
Gammon
will
also
have
the
right
to
participate
in
future
Corex
financings
in
order
to
maintain
its
proportionate
interest
in
Corex,
a TSX
Venture
Exchange
listed
junior
gold
exploration
company
focused
on
advancing
the
Santana
Gold
Project
in
Sonora,
Mexico.
July
9,
2010: Goldcorp
Inc.
(GG)
announced
a
number
of
additions
to its
senior
executive
management
team,
including
the
appointment
of
David
Deisley
as its
executive
vice-president
of
corporate
affairs.
Deisley
previously
served
as
vice-president
and
general
counsel.
Further,
Timo
Jauristo
was
appointed
executive
vice-president
of
corporate
development.
July
11,
2010: Newmont
Mining
Corp.
(NEM)
announced
that
its
subsidiary
PT
Newmont
Nusa
Tenggara
has
allocated
$38
million
in
funds
for
corporate
social
responsibility
to
help
finance
community
development
near
mining
sites
near
its
Batu
Hijau
mine
in
Indonesia.
July
12,
2010:
Goldcorp
Inc.
(GG)
announced
that
it has
acquired
a 15%
stake
in
junior
miner
Evolving
Gold
Corp.
through
a
C$15.6
million
private
placement.
Goldcorp
acquired
more
than
19
million
Evolving
Gold
shares
at
C$0.82/share.
Goldcorp
will
have
the
right
to
participate
in
equity
financings
and
certain
non-cash
transactions
in
order
to
maintain
its
relative
interest
in
Evolving
Gold.
Evolving
Gold
will
use
the
proceeds
to
explore
its
Rattlesnake
Hills
project
in
Wyoming,
and
its
Carlin
and
Humboldt
projects
in
Nevada.
July
15,
2010: Barrick
Gold
Corp.
(ABX)
and
its
joint
venture
partner,
Antofagasta
Minerals
S.A.
of
Chile
briefed
the
Prime
Minister,
Yousuf
Gilani,
of
Pakistan
on the
exploration
and
development
of the
massive
Rekodig
Copper-Gold
project
in
Balochistan,
which
should
generate
about
$3.5
billion
for
the
federal
government
and
$4.5
billion
for
Balochistan
over
the
estimated
40
year
mine
life.
The
project
would
generate
employment
for
about
6,500
skilled
and
unskilled
workers,
transfer
technology,
create
a
demand
for
support
industries
and
establish
a new
township
in the
region.
ABX
holds
a
37.5%
interest
in the
project,
and
its
share
of the
resource
is
equivalent
to
15.9
million
ounces
of
gold
and
20.1
billion
pounds
of
copper.
July
15,
2010: Gammon
Gold
Inc.
(GRS)
reported
that
its
second
quarter
production
rose
as
increased
production
from
the
Ocampo
mine
in
Mexico
helped
offset
the
impact
of the
shutdown
of its
El
Cubo
mine.
Gammon
produced
49,379
gold
equivalent
ounces
in the
quarter,
a 4.8%
increase
from
the
year
earlier
quarter,
when a
seven-week
labor-related
disruption
at El
Cubo
held
back
output.
The
company
has
forecast
2010
production
of
100,000
to
110,000
ounces
of
gold
and
4.4
million
to
4.95
million
ounces
of
silver
from
Ocampo.
This
is
equivalent
to
180,000
to
200,000
gold
equivalent
ounces
at
a
total
cash
cost
of
$425
to
$450
gold
equivalent
ounces.
July
15,
2010:
Goldcorp
Inc.
(GG)
agreed
to
support
the
proposed
purchase
of all
of the
outstanding
common
and
preferred
shares
of
Terrane
Metals
Corp.
(TRX.V)
by
Thompson
Creek
Metals
Inc.
(TC:
NYSE).
Goldcorp
controls
58% of
the
outstanding
shares
of
Terrane.
Through
its
ownership
of 240
million
preferred
shares
and
27.3
million
common
shares.
Goldcorp
will
receive
proceeds
of
C$240.5
million
in
cash
and
13.9
million
TC
common
shares
representing
approximately
8% of
the
outstanding
shares
of
TC.
The
objective
of the
transaction
by
Thompson
Creek
is to
acquire
the
Mt.
Milligan
high
quality
copper-gold
project
located
in
British
Columbia
that
Terrane
had
optioned
from
Goldcorp.
July
15,
2010:
Stillwater
Mining
Company
(SWC)
reported
that
it has
met
with
representatives
of its
majority
shareholder
Norilsk
Nickel,
to
discuss
the
Russian
firm's
plans
for
its
Stillwater
shares.
Norilsk,
the
top
producer
of
platinum
and
palladium
in the
world
said
earlier
in the
year
that
it is
considering
the
sale
of its
approximate
51%
holding
in
Stillwater.
|
| AMEX
GOLD PRODUCER NEWS |
|
June
25,
2010: Brigus
Gold
Corp.
(BRD)
announced
that
the
combination
of
Apollo
Gold
Corp.
and
Linear
Gold
Corp.
was
completed
and
the
new
company
begins
operating
immediately.
Brigus
will
commence
trading
on
the
NYSE
Amex
and
the
Toronto
Stock
Exchange
under
the
symbol
BRD.TO.
June
29,
2010: Endeavour
Silver
Corp.
(EXK)
announced
that
it
has
expanded
its
property
holdings
near
the
company's
operating
Bolanitos
Mine
in
the
historic
Guanajuato
silver
district
of
Guanajuato
State,
Mexico.
EXK
has
acquired
the
Belen
II
and
Ampliacion
de
Belen
properties
(192
hectares),
located
approximately
2.5
km
east
of
EXK's
recent
Lucero
silver-gold
vein
discovery
and
midway
between
the
company's
operating
Bolanitos
and
Cebada
silver-gold
mines
at
Guanajuato.
EXK
also
optioned
the
Juanita
and
Tajo
de
Adjuntas
properties
(57
hectares),
located
about
4
km
southeast
of
Lucero
at
the
south
end
of
the
La
Luz
vein
system.
The
Belen
properties
cover
at
least
1
km
of
strike
length
along
the
poorly
explored
Belen
silver-gold
vein
and
related
parallel
veins.
These
veins
received
little
exploration
historically,
because
they
are
off
the
main
trends
of
the
Veta
Madre
and
La
Luz
vein
systems,
and
because
they
have
minimal
surface
exposure,
and
where
exposed
they
are
narrow
and
low
grade.
In
2006,
a
contractor
drove
a
short
ramp
123
meters
down
along
the
Belen
vein
and
found
that
vein
thickness
increased
below
surface
to
an
average
2-4
meters
in
width
with
patches
of
high
silver
and
gold
grades.
EXK
will
purchase
a
100%
interest
in
the
Belen
properties
by
paying
approximately
$200,000
within
3
months
(includes
a
$15,000
advance)
and
a
2%
NSR
royalty
on
mineral
production.
EXK
can
acquire
the
Juanita
and
Tajo
properties
by
paying
$50,000
for
each
over
a
3
year
period,
subject
to
a
2%
NSR.
June
30,
2010: Richmont
Mines
Inc.
(RIC)
announced
the
completion
of
its
acquisition
of
the
issued
and
outstanding
shares
of
Louvem
Mines
Inc.
by
way
of
amalgamation
of
9222-0383
Quebec
Inc.,
a
wholly
owned
subsidiary
of
Richmont
and
Louvem.
The
amalgamation
was
approved
by
the
shareholders
of
Louvem
at
a
general
and
special
meeting
of
the
shareholders
on
June
18,
2010.
July
2,
2010: Northgate
Minerals
Corp.
(NXG)
reported
that
regulators
will
allow
construction
and
development
to
begin
in
early
August
at
the
Young-Davidson
gold
mine
in
northern
Ontario.
The
mine
is
expected
to
produce
an
average
180,000
ounces
of
gold
per
year,
at
a
cash
cost
of
$350/ounce
over
a
15-year
mine
life
beginning
in
2012.
NXG
also
reported
the
completion
of
drilling
at
the
site
in
2010,
and
the
results
to
date
indicate
a
strong
potential
to
expand
the
current
2.8
million
reserve.
July
7,
2010: Aurizon
Mines
Ltd.
(AZK)
has
formed
a
joint
venture
with
Niogold
Mining
Corp.
(TSX.V)
to
develop
the
Marban
Block
property
in
the
Abitibi
area
of
Quebec.
Marban
covers
3
km
of
a
500
meter
wide
favorable
gold
bearing
shear
zone
containing
an
indicated
598,000
ounce
resource
and
an
inferred
361,000
ounce
resource.
AZK
can
earn
a
50%
in
the
project
by
incurring
expenditures
of
C$20
million
over
the
next
three
years.
AZK
must
spend
C$5
million
in
the
first
year
and
will
be
responsible
for
completing
an
updated
mineral
resource
estimate
and
making
a
resource
payment
of
C$30/oz
or
C$40/oz
for
50%
of
the
measured
and
indicated
resources.
AZK
can
earn
an
additional
10%
interest
in
the
project
by
delivering
a
feasibility
study
for
the
project,
and
another
5%
interest
by
arranging
project
financing
for
capital
expenditures
determined
by
the
feasibility
study
to
place
the
project
into
commercial
production.
Niogold
would
be
the
operator
during
the
initial
earn-in
period.
AZK
would
take
over
as
operator
after
a
50%
interest
has
been
earned.
July
7,
2010: Minefinders
Corporation
Ltd.
(MFN)
reported
the
results
of
an
independently
prepared
pre-feasibility
study
for
its
La
Bolsa
gold
and
silver
project
in
Sonora,
Mexico.
The
property
is
located
27
km
west-northwest
of
the
city
of
Nogales,
near
the
Sonora/Arizona
border.
The
study
considers
conventional
open-pit
mining
methods
at
La
Bolsa
with
low-cost
heap
leaching
processing.
Throughput
is
projected
at
8,500
tonnes
of
ore
per
day
with
two-stage
crushing
and
gold
and
silver
recovery
achieved
through
a
carbon
absorption
system.
The
mineable
reserve,
using
prices
of
$825/oz
of
gold
and
$14/oz
of
silver
contains
316,135
ounces
of
gold
and
4.5
million
ounces
of
silver.
Assuming
average
recoveries
of
72%
for
gold
and
7%
for
silver,
the
total
production
from
La
Bolsa
is
estimated
at
227,600
ounces
of
gold
and
315,000
ounces
of
silver
over
a
six
year
mine
life.
The
initial
capital
cost
is
estimated
to
be
$31.4
million.
July
8,
2010: Endeavour
Silver
Corp.
(EXK)
announced
a
record
second
quarter
2010
silver-gold
production
from
its
two
operating
mines
in
Mexico.
EXK's
production
was
ahead
of
its
3.1
million
silver
ounce
forecast
for
2010.
The
Guanacevi
and
Guanajuato
mines
produced
a
total
of
826,439
ounces
of
silver
in
the
second
quarter,
a
41%
increase
over
the
second
quarter
of
2009.
Gold
production
rose
61%
year-on-year
to
4,461
ounces
of
gold
in
the
second
quarter.
As
a
result,
silver-equivalent
production
rose
to
1.1
million
ounces
in
the
second
quarter.
The
company's
2010
capital
expansion
programs
would
add
to
the
output
for
the
year.
Guanacevi's
production
should
be
increased
to
1,000
tonnes
per
day
as
the
new
Porvenir
Cuatro
and
Santa
Cruz
mines
come
into
production.
Guanajuato
production
would
also
increase
once
the
new
Lucero
South
access
ramp
and
ventilation
shaft
are
completed
this
quarter.
July
14,
2010: Brigus
Gold
Corp.
(BRD)
reported
that
it
produced
approximately
18,000
ounces
of
gold
in
the
Q2'10,
an
increase
of
27%
over
gold
production
for
Q1'10.
Gold
sales
for
Q2'10
were
17%
more
than
gold
sales
for
Q1'10
as
the
Black
Fox
mines
continues
to
show
improvement
in
the
gold
grade
mined.
This
trend
is
expected
to
continue
for
the
reminder
of
2010.
A
total
of
18,430
ounces
of
gold
was
sold
in
Q2'10,
including
3,872
ounces
(21%)
that
were
sold
in
the
spot
market
at
an
average
gold
price
of
$1,237/oz.
The
remaining
14,558
ounces
were
delivered
at
$876/oz
into
the
gold
hedgebook
which
leaves
a
balance
of
27,292
ounces
to
be
delivered
in
the
second
half
of
2010.
Gold
production
is
forecast
to
increase
through
the
remainder
of
2010
and
into
2011
as
the
underground
mine
ramps
up
to
a
steady
state
production
level
of
750
tonnes
per
day.
Brigus
expects
to
produce
24,000
ounces
of
gold
in
Q3'10
and
approximately
28,500
ounces
in
Q4'10
for
a
total
production
forecast
of
approximately
85,000
ounces
for
the
full
year.
Total
cash
costs
for
the
year
are
unchanged
at
$500
to
$550
per
ounce.
|
| NASDAQ
GOLD PRODUCER NEWS |
June
28,
2010: Royal
Gold
Inc.
(RGLD)
announced
the
closing
of
its
public
offering
of
5,980,000
shares
of
commons
stock,
including
780,000
shares
of
common
stock
pursuant
to
the
exercise
of
the
underwriter's
over-allotment
option.
The
offering
was
priced
at
$48.50
per
share,
and
raised
proceeds
of
$276.4
million
net
of
commissions
and
expenses.
July
6,
2010: Royal
Gold
Inc.
(RGLD)
has
acquired
rights
to
an
additional
1%
net
smelter
return
royalty
on
Barrick
Gold
Corporation's
(ABX)
Pascua-Lama
project
in
South
America
for
$68
million.
RGLD
purchased
the
interest
in
separate
transactions
from
three
individuals.
RGLD
paid
$40
million
to
acquire
an
immediate
0.6%
royalty,
and
will
make
a
deferred
payment
of
$28
million
on
or
before
October
29,
2010
to
acquire
the
remaining
0.4%
interest.
RGLD's
total
royalty
interest
will
increase
to
5.23%
net
smelter
return
after
the
completion
of
the
acquisition
at
gold
prices
above
$800
per
ounce.
The
transaction
also
provides
for
a
0.2%
fixed-rate
copper
royalty
that
becomes
effective
after
January
1,
2017.
This
increases
Royal's
copper
royalty
interest
to
1.05%.
Pascua-Lama
is
currently
in
early
stages
of
construction.
Commissioning
is
scheduled
for
late
2012,
and
first
production
is
scheduled
for
the
first
quarter
of
2013.
July
15,
2010: Royal
Gold
Inc.
(RGLD)
has
agreed
to
acquire
25%
of
the
payable
gold
produced
from
the
Mt.
Milligan
copper-gold
project
in
British
Columbia
from
Thompson
Creek
Metals
Company.
RGLD
will
provide
$226.5
million
at
the
closing
of
Thompson
Creek's
acquisition
of
Terrane
Metals
Corp.
and
$85
million
over
the
construction
period
of
the
Mt.
Milligan
mine.
In
addition
RGLD
will
pay
Thompson
Creek
a
cash
payment
of
equal
to
the
lesser
of
$400
or
the
prevailing
market
price
of
each
payable
ounce
of
gold
until
550,000
ounces
have
been
delivered
to
RGLD
and
the
lesser
of
$450
or
the
prevailing
market
price
of
each
addional
ounce
thereafter.
Terrane
has
reported
that
the
Mt.
Milligan
deposit
has
proven
and
probable
reserves
of
482
million
tonnes
of
copper
ore
grading
0.20%
copper
and
0.39
grams/tonne
of
gold
containing
2.1
billion
pounds
of
copper
and
6.0
million
ounces
of
gold.
|
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