| 01/23/2010
www.insidemetals.com |
Vol
5, Issue 2 |
|
 |
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 February 6, 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 $1108.25/oz
(London Fix) on January 21,
2010, a 1.9% decrease from
the $1130.25/oz (London Fix)
closing price on January 7,
2010, when data for the
previous newsletter was
gathered.
Silver
closed at $17.68/oz
(London Fix) on January
21, 2010, a 2.3% decrease
from the $18.09/oz (London
Fix) closing price on
January 7, 2010.
Platinum
closed at $1612.00/oz
(London Fix) on January
21, 2010, a 4.1% increase
from the $1548.00/oz
(London Fix) closing price
on January 7, 2010.
Palladium
closed at $462.00/oz
(London Fix) on January
21, 2010, an 8.5% increase
from the $426.00/oz
(London Fix) closing price
on January 7, 2010.
GOLD vs. EURO/U.S.
DOLLAR CHART
The gold
price has
dropped to
$1,108.25
per ounce
after
establishing
a record
high close
of
$1212.50
(London
Fix on
December
2, 2009).
Gold has
been
steadily
rising
since the
October
2008 lows,
and closed
above
$1,000 per
ounce in
September
2009, and
then
sky-rocketed
to record
levels.
During
this rise
in the
bullion
price,
there was
a steady
decline in
the value
of the
U.S.
Dollar,
until
December
4, 2009,
when the
Euro/$ was
1.5068,
and then
the dollar
started to
increase
in value.
The Euro/$
value on
January
21, 2009
was
1.4064.
The
above
chart
reflects
the
expected
parallel
movement
in the
price of
gold and
the
value of
the U.S.
Dollar.
In the
last
week
there
has been
a slight
divergence
in the
lines as
the
dollar
has
strengthened.
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|
| Gold
& Silver ETF's |
|

The SPDR Gold Trust
(GLD) now controls over
35,749,401 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
$1,100 per ounce. The
GLD reached a record
36,450,190 ounces of
gold on June 1, 2009.
GLD holdings were
36,121,731 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 have
been steadily rising
since July 2009. SLV
silver holdings
reached a record
305,893,368 ounces
on December 3, 2009,
when the price of
silver closed above
$19.00 per ounce
(London Fix).
The SLV currently
holds 300,261,860
ounces of silver h
oldings in both
the GLD and SLV
have been steadily
increasing as the
price of both gold
and silver has
been rising. Both
the GLD and SLV
are maintaining
their positions in
spite of a recent
sharp decline 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
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| GEO
POLITICAL VIEW |
PALLADIUM - GOLD OF
ANOTHER COLOR
The surge in gold
prices to record
levels dominated the
commodity news in
2009. No one has been
immune from advice and
urgings to buy gold,
but the best performer
in the precious metals
sector has been
palladium. While gold
prices rose
approximately 50% in
2009 from just above
$800 per oz. to a
record close of
$1212.50 per oz (both
London Fix), palladium
prices have climbed by
approximately 117% for
the year, from $181
per oz to $393 per oz.
Palladium prices
which had surged
to over $550 per
oz in the first
quarter 2008,
collapsed in the
second half of the
year, and closed
2008 at $183 per
ounce.
A survey conducted
by Dow Jones (as
reported by Devon
Maylie, The Wall
Street Journal,
January 14, 2010)
asked 41 analysts
at investment
banks, brokerage
firms, and
research
organizations to
forecast metal
prices in 2010 and
2011. The survey
indicated that
analysts expect
palladium to
average $418 per
oz in 2010, up 58%
from its 2009
average of
approximately $265
per oz.
A factor in the
expected rise in
palladium prices
is a pick up in
industrial demand,
and uncertainty
about Russian
stock piles.
Russia is the
world's largest
palladium
producer. If
Russian palladium
sales don't
materialize, there
will be a
palladium
shortage.
Palladium is a
metal with
multiple uses. In
2008, 7.741
million ounces of
palladium was
used. The main use
of palladium is in
catalytic
converters for
automobiles where
49% of the supply
was used.
Approximately 30%
of the palladium
supply was used in
the electronic
industry,
dentistry, and
jewelry.
The palladium
supply in 2008 was
8.100 million
ounces, a decline
of 4% from 2007
levels. The
decline was
largely driven by
the reduction in
South African
production. 2009
refined palladium
production is
forecast to be
7.50 million
ounces.
Palladium prices
just closed at
$462 per oz. An
opportunity for
precious metals
investors is North
American Palladium
(PAL), a palladium
producer which
will be re-opening
its Lac des Iles
palladium mine in
Ontario, in the
second quarter of
the year. The
stock price of PAL
has in the month
of January risen
from $3.65 per
share to a high of
$4.62 per share on
January 21, 2010,
based on recent
press releases
regarding the
re-opening of the
Lac des Iles mine,
and the initiation
of commercial
production at its
Sleeping Giant
gold mine in
Quebec (refer to
press releases
below under AMEX
COMPANIES).The Lac
des Iles mine had
been placed on
care and
maintenance when
palladium prices
had collapsed and
should produce
140,000 ounces of
palladium this
year, and could
reach 250,000
ounces in 2012
following planned
development.
PAL shares just
closed down at
$4.09 per share
following the
recent market
decline. This
could be a golden
opportunity.
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A Nevada Based Management
Consulting Firm
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| NYSE
GOLD PRODUCER NEWS |
January
10, 2010:
Barrick Gold
Corporation's
(ABX) joint
venture with
Chilean copper
miner
Antofagasta, in
Pakistan has
been threatened
by a provincial
government's
plans to cancel
the $3 billion
copper-gold
project. The two
companies are
partners in the
Tethyan Copper
Company (TCC)
joint venture
which holds a
75% interest in
the Reko Diq
project located
in the
southwestern
province of
Baluchistan. The
provincial
government holds
the remaining
25%. The deposit
holds more than
11 billion
pounds of copper
and 9 million
ounces of gold.
The threat of
cancellation in
this province
was meant to
ease the anger
of the poor
regarding
exploitation of
the natural
resources in the
province by
outsiders.
January
11, 2010:
Newmont Mining
Corp. (NEM) and
Fresnillo Plc
announced that
their Joint
Venture Pentmont
has conceded and
they will take
no further
action to out
bid Goldcorp
Inc. for
Canplats
Resources.
Canplats main
asset is the
Camino Rojo
gold-silver
deposit in
Mexico which has
a measured and
indicated
resource of 3.44
million ounces
of gold and 60.7
million ounces
of silver, and
an inferred
resource of 0.55
million ounces
of gold and 7.6
million ounces
of silver hosted
within the
Represa deposit.
January
12, 2010:
Eldorado Gold
Corp. (EGO)
announced that
it will resume
operations at
its White
Mountain gold
mine in the
Jilin Province
of China, which
had been shut
down because of
a dispute over
alleged water
contamination.
EGO acquired the
property through
its acquisition
of Sino Gold in
December 2009.
EGO owns 95% of
the mine which
began commercial
production in
January 2009.
The mine is
expected to
produce an
average of
65,000 ounces of
gold annually.
January
12, 2010:
Gold Fields Ltd.
(GFI), through
its Gold Fields
Horsefly
Exploration
Corporation
subsidiary,
reported
drilling results
to the Woodjam
Joint Venture
made up of
Cariboo Rose
Resources Ltd.
(40% interest)
and Fjordland
Exploration Inc
(60% interest).
Woodjam is
located
approximately 28
miles east of
Williams Lake in
central British
Columbia. GFI
has an option to
earn up to 70%
in the property
by spending $19
million in
exploration over
the next 7
years. GFI
tested two areas
with the
completion of 11
core holes
totaling 8,525
feet in the
Takom Zone and 3
core holes
totaling 3,260
feet in the
Deerhorn Zone.
Most of the
holes in the
recently
completed
drilling program
intersected
copper-gold
mineralization.
Assay highlights
include 328 feet
grading 0.017
oz/t gold and
0.43% copper at
Takom, and 293.5
feet grading
0.034 oz/t gold
and 0.26% copper
at Deerhorn.
Further drilling
will be
undertaken.
Refer to the
press release
for assay
details.
January
12, 2010:
Goldcorp Inc.
(GG) announced
record gold
production in
2009 of over 2.4
million ounces
of gold, which
exceeded
previous
guidance of 2.3
million ounces.
Fourth quarter
gold production
was 601,000
ounces. GG's
year-end
financial
statements are
expected to be
released on
Thursday, March
11, 2010. The
calculation of
2009 operating
costs have not
been completed,
but total cash
costs are
expected to be
approximately
$295 per ounce
on a gold
by-product basis
and
approximately
$390 per ounce
on a co-product
basis. GG
expects to
produce
approximately
2.6 million
ounces of gold
in 2010, at a
total cash cost
of approximately
$350 per ounce
on a by-product
basis and $450
per ounce on a
co-product basis
(assuming gold
at $1,000/oz,
silver at
$16/oz, and
copper at
$2.75/lb.).
January
12, 2010:
Stillwater
Mining Company
(SWC) produced
102,800 PGM
ounces, in the
4th quarter of
2009, up 11.5%
over the
year-earlier
quarter. PGM
production for
the entire year
was 529,900
ounces, an
increase of
12.7% over 2008
production,
which exceeded
2009 guidance of
515,000 PGM
ounces. 2009
production
consisted of
122,900 ounces
of platinum and
407,000 ounces
of palladium.
2010 guidance
remains at
515,000 PGM
ounces. SWC's
realized average
prices received
in 2009 for
mined platinum
and palladium
was down 18.0%
and 11.0%
respectively
from their 2008
averages. PGM
prices in 2009
have been
steadily
increasing, and
the company's
total recycling
volumes have
gradually
recovered in
2009 as PGM
prices have
increased and
supply
arrangements
have been
adjusted. The
average realized
price for mined
ounces of
platinum and
palladium sold
in the 4th
quarter was
respectively,
$1,296 per ounce
for platinum,
and $374 per
ounce for
palladium.
January
12, 2010:
Yamana Gold Inc.
(AUY) provided
its outlook for
2010 and 2011
operations. AUY
expects
production from
continuing
operations to be
in the range of
1.03 million to
1.145 million
gold equivalent
ounces (GEO) in
2010, and 1.045
million to 1.150
million GEO in
2011,
representing an
overall increase
of 12% in
production from
continuing
operations in
2009. Production
from
discontinued
operations is
expected to be
approximately
40,000 GEO in
the first
quarter of 2010.
Refer to the
press release
for production
and cost details
from specific
operations.
January
14, 2010:
Kinross Gold
Corp. (KGC)
provided
preliminary
operating
results for the
full year 2009
and its outlook
for 2010. For
the full year
production is
expected to be
approximately
2.23 million
gold equivalent
ounces (GEO),
which is in line
with previous
guidance, and
approximately
21% above 2008
production. The
average cost of
sales per GEO is
expected to be
in line with the
previous
guidance range
of $435 to $450
per GEO. Full
year 2010
production is
expected to be
approximately
2.2 million GEO.
The average cash
cost of sales
per GEO in 2010
is expected to
be in the range
of $460 to $490.
Capital
expenditures for
2010 are
forecast to be
approximately
$550 million,
which includes
$225 million for
mine
development, $90
million for a
new ball mill at
Paracatu, and
$48 million for
new project
expenditures.
Refer to the
press release
for details on
operations.
January
18, 2010:
Gold Fields Ltd.
(GFI) has
provided written
notice to the
Woodjam Joint
Venture that it
intends to
exercise its
right of first
refusal with
respect to the
Woodjam South
Copper-Gold
property, as a
response to
notice that
another
international
mining company
has made an
offer to acquire
the Woodjam
South
copper-gold
project.
Pursuant to the
offer, GFI can
earn a 51%
interest in the
property by
spending $7
million on
exploration over
42 months and
the purchase of
a total
ofC$500,000 of
common shares of
the Woodjam
Joint Venture
proportionate to
owner's
respective
interests.
January
18, 2010:
Newmont Mining
Corp. (NEM) has
temporarily
halted mine
operations at
Batu Hijau mine
in Indonesia
after a deadly
accident, but
continues to
process ore from
stockpiles. PT
Newmont Nusa
Tenggara (NNT),
the joint
venture operator
of the mine
reported that a
rock slide at
the mine on
Sumbawa Island,
buried a dozer
operator last
Sunday. All pit
operations have
been stopped
pending an
investigation by
the Department
of Energy and
Mineral
Resources.
Operations had
been previously
halted by a
pit-wall rock
slide that
occurred on
September 2009.
January
20, 2010:
Kinross Gold
Corp. (KGC) has
agreed in
principle to
acquire the
high-grade
Dvoinoye deposit
and the
Vodorazdelnaya
property, both
located
approximately 56
miles north of
Kinross' Kupol
operation in the
Chukotka region
of the Russian
Far East. KGC
plans to process
ore from
Dvoinoye at the
Kupol mill,
pursuant to an
ore purchase
agreement with
Kinross' 75%
owned Chukotka
Mining and
Geological
Company, the
owner of the
Kupol mine. The
total purchase
price for these
properties is
$368 million,
comprising $165
million in cash
and
approximately
10.56 million
newly issued
Kinross common
shares with a
market value of
$203 million as
of the close on
January 19,
2010. The new
Kinross shares
will be subject
to a four month
holding period
after closing.
The
Vodorazdelnaya
property holds
approximately
355 square miles
with both an
exploration and
mining license,
and identified
targets for
exploration. The
Dvoinoye deposit
hosts an open
pit mine which
operates six
months per year
at a throughput
of approximately
275 tons per
day. The deposit
may contain 3.5
to 3.9 million
tones of ore at
an average grade
of 0.5 to 0.55
oz/t gold (non
NI 43-101
compliant).
January
20, 2010:
Newmont Mining
Corp. (NEM)
reported in a
regulatory
filing that it
will pay a fine
tentatively set
at $4.9 million
for a water and
cyanide solution
spill at a mine
in Ghana. A
gauge
malfunction
caused about 75
cubic-meters of
solution to
spill over the
top of a holding
pond in October,
killing 800 to
850 fish in a
drainage area
near the mine
site.
January
21, 2010:
Barrick Gold
Corporation's
(ABX) massive
Pascua-Lama
project will
undergo a probe
by Chilean
environmental
authorities. The
Atacama region's
environmental
commission said
the probe will
look into a
water source for
the project.
Protests from
environmental
groups charged
that the project
would
contaminate
nearby glaciers
and threaten
water supplies.
The
environmental
probe could lead
to fines or even
a revoked
concession.
Pascua-Lama,
which straddles
the
Chilean-Argentina
border, contains
approximately 18
million ounces
of gold, 718
million ounces
of silver, and
650 million
pounds of
copper.
January
21, 2010:
IAMGOLD Corp.
(IAG) announced
that gold
production for
2009 totaled
939,000 ounces,
which was 7%
above guidance.
Cash costs for
2009 are
expected to be
in line within
the latest
guidance range
of $460 to $470
per ounce of
gold. Gold
production for
the 4th quarter
is expected to
come in at
234,000 ounces.
IAG also
produced 4.1
million
kilograms of
niobium with an
operating margin
which is
expected to be
in the range of
$19 to $21 per
kilogram. Gold
production for
2010 is expected
to be between
940,000 to
1,000,000 ounces
of gold at an
average cash
cost of $490 to
$510 per ounce.
Commercial
production at
the Essakane
project in
Burkino Faso is
on schedule for
an August 2010
start with an
estimated
480,000 to
490,000 ounces
of production
during the first
16 months
through the end
of 2011. At the
100% owned
Westwood project
in northwestern
Quebec an
updated
Preliminary
Assessment Study
indicates a
potential for
the project to
commence
production in
2013 with an
average annual
production of
186,000 ounces
for 16 years and
an average cash
cost of $358 per
ounce. Capital
expenditures of
$102 million are
expected for
2010 to advance
development of
the mine. Based
on a preliminary
unaudited
assessment, IAG
expects to post
an impairment
charge in its
2009, 4th
quarter
financial
results, in the
range of $85 to
$100 million,
primarily
related to its
Camp Caiman
project in
French Guiana.
|
| AMEX
GOLD PRODUCER NEWS |
January
11,
2010:
Aurizon
Mines
Ltd.
(AZK)
reported
that
2009
gold
production
for the
year
totaled
159,261
ounces
from
757,085
tons of
ore
processed
at its
100%
owned
Casa
Berardi
mine.
The
average
grade of
the ore
was
0.227
oz/t
gold.
Ore
processed
in the
4th
quarter
of 2009
produced
36,459
ounces
of gold
from
191,117
tons of
ore at
an
average
grade of
0.210
oz/t.
Casa
Berardi
will
produce
between
145,000
to
155,000
ounces
of gold
in 2010
at an
average
grade of
0.195
oz/t
gold. At
its
Joanna
project
in
Quebec,
AZK will
conduct
a $3.4
million
exploration
program
to
continue
to test
targets
to the
north
and
south of
its
Hosco
deposit;
to
perform
in fill
drilling
on the
Heva
deposit;
and to
test for
a
potential
satellite
pit some
2,300
feet
west of
the
proposed
Hosco
pit.
January
11,
2010:
Claude
Resources
Inc.
(CGR)
reported
that it
produced
14,300
ounces
of gold
in the
fourth
quarter
of 2009
and
28,500
ounces
in the
second
half of
2009.
This
production
represents
a12%
increase
in
production
compared
to the
second
half of
2008.
Total
production
for 2009
is
approximately
46,800
ounces.
In 2010,
CGR
plans to
mine
gold
from its
Seabee
gold
mine in
Saskatchewan,
and to
initiate
production
on the
nearby
Santoy 8
deposit
located
in close
proximity
to the
Seabee
Mill.
January
19,
2010:
North
American
Palladium
(PAL)
announced
that
palladium
production
at the
Roby
deposit,
at its
Lac des
Iles
mine
will
remain
at
140,000
ounces
of
palladium
(Pd) for
the
foreseeable
future.
Underground
production
at the
Roby
deposit
is
scheduled
to start
up in
the
second
quarter,
and to
continue
for
approximately
two
years
until
depleted.
Production
will
remain
flat
until
work
begins
on the
high-grade
Offset
Zone in
2012.
Once
production
commences
from the
Offset
Zone,
costs
will
decline
rapidly
and
production
could
reach
250,000
ounces
of Pd
per
year. Pd
prices
could
reach
$450 to
$500 per
ounce in
2010.
January
19,
2010:
Northgate
Minerals
Corp.
(NXG)
reported
4th
quarter
2009
gold
production
of
81,098
ounces
from its
3
operating
mines
(Fosterville,
Starwell,
and
Kemess
South),
which
brings
full
year
production
to a
record
of
362,743
ounces.
Fosterville
achieved
the
highest
quarterly
production
in the
mines
history
with
26,615
ounces
of gold.
Full
year
production
reached
103,360
ounces,
also a
record.
Starwell
reached
the
mine's
best
quarterly
production
for the
year by
producing
23,566
ounces
of gold.
Kemess
achieved
its
quarterly
and
annual
production
forecast
with 4th
quarter
production
of
30,917
ounces
of gold,
and
annual
production
of
173,040
ounces
of gold.
Kemess
also
produced
11.7
million
pounds
of
copper
in the
4th
quarter
for a
total of
52.5
million
pounds
of
copper
for the
year.
The
estimated
average
net cash
cost of
gold for
the 4th
quarter
was $529
per
ounce,
bringing
the
average
cash
cost for
2009 to
$475 per
ounce.
NXG is
forecasting
that it
will
produce
316,000
ounces
of gold
from the
above
three
mines in
2010.
NXG also
expects
to spend
$21
million
on
exploration
in 2010
at
Fosterville
($11.2
million),
Starwell
($7.2
million),
and
Young-Davidson
($2.6
million).
Refer to
the
press
release
for
details
on
exploration
and
operations.
January
20,
2010:
Apollo
Gold Corp.
(AGT)
announced
additional
positive
results
from six
holes
drilled at
its Grey
Fox
Project,
which
continues
to find
multiple
zones of
shallow
gold
mineralization
in rocks
similar to
the rocks
which host
gold
mineralization
at the
their
nearby
Black Fox
mine.
Assay
results
are still
pending
from 23
holes that
were part
of a 53
drill
hole,
32,600
foot
drilling
program.
Highlights
from the
six
assayed
holes are:
· 9.5
feet at an
average
gold grade
of 0.178
oz/t in
drill hole
GF09-45
· 10.2
feet
grading
0.108 oz/t
in drill
hole
GF09-42
January
20, 2010:
North
American
Palladium
(PAL) has
set a
production
target of
50,000
ounces of
gold for
its
Sleeping
Giant gold
mine in
the
Abitibi
region of
northwestern
Quebec.
The mine
recently
reached
commercial
production
on January
1, 2010.
PAL spent
$7.29
million to
bring the
mine back
into
production.
The mine
contains
proven and
probable
gold
reserves
of 70,000
ounces and
82,000
ounces of
measured
and
indicated
gold
reserves.
PAL has
commenced
an
exploration
program at
the mine
to
increase
the
reserves
and
resources
at the
mine.
January
21, 2010:
Gold Star
Resources
Ltd. (GSS)
announced
that it
sold a
record
409,902
ounces of
gold in
2009, an
increase
of 38.5%
over 2008
gold
sales. For
2009, the
Wassa mine
sold a
total
223,848
ounces, an
increase
of 78.5%
over gold
sales in
2008. Gold
sales at
the Bogoso
mine
totaled
186,054
ounces, a
9.1% over
2008 gold
sales. For
2010, GSS
forecasts
production
of 400,000
ounces at
a cash
operating
cost of
$585 per
ounce. In
2010,
Bogoso/Prestea
is
expected
to produce
200,000
ounces of
gold, all
from
sulfide
ore, at an
average
cash cost
of $650
per ounce.
Wassa is
expected
to produce
200,000
ounces at
a cash
operating
cost of
$520 per
ounce in
2010.
January
21, 2010:
New
Gold Inc.
(NGD)
provided an
update on
its Cerro
San Pedro
mine
hearings
related to
appeals
filed at
various
courts
resulting
from a
Mexican
Federal
Court's
September
21, 2009
ruling that
nullified
the
Environmental
Impact
Statement
(EIS) for
the project.
The court
dates are as
follows:
· January
28, 2010:
hearing
scheduled in
the Third
District
Court in
Mexico City
that seeks
to overturn
the Mexican
environmental
enforcement
agency's
November 18,
2009 order
to shutdown
mining at
Cerro San
Pedro. New
Gold on
December 14,
2009 got an
injunction
that allowed
mining to
continue
pending a
court
ruling.
· February
3, 2010:
hearing
scheduled in
the Third
District
Court in
Mexico City
related to
New Gold's
filing that
seeks to
overturn the
ruling by
the Mexican
environmental
protection
agency that
cancelled
the
company's
EIS.
|
| NASDAQ
GOLD PRODUCER NEWS |
January
18, 2010:
DRDGOLD Ltd.
(DROOY)
reported that
it is refining
detailed terms
of the sale of
a 60% interest
in its
Blyvooruitzich
Gold Mining
Company, a
wholly owned
subsidiary.
The stake is
being sold to
Aurora
Employment
Systems for
R296.2
million. It
was also
reported that
Aurora has
purchased
DRDGOLD's
defunct ERPM
mine for R20
million.
January
18, 2010:
Lihr Gold Ltd.
(LIHR)
reported that
it has
received
expressions of
interest from
potential
bidders for
its troubled
Ballarat mine
in Australia.
January
20, 2010:
Randgold
Resources Ltd.
(GOLD) intends
to invest $300
million in its
West African,
Massawa
project
located in
Senegal.
Massawa is
located 435
miles
southeast of
Dakar, the
capital of
Senegal. The
deposit
contains 3
million ounces
of gold.
Randgold hopes
to commence
construction
of the mine
next year, and
to start
mining by
2013.
January
21, 2010:
DRDGOLD Ltd.
(DROOY) has
agreed to buy
the 50%
interest in
Ergo Mining
from Mintails
that it did
not already
own for R82
million. The
purchase will
be settled in
three
tranches. Ergo
Mining had
been created
as a joint
venture
(50:50)
between the
companies in
November 2007
to explore,
evaluate and
process up to
1.7 billion
tons of
surface gold,
uranium, and
sulphur-bearing
tailings on
South Africa's
east and
central Rand.
January
21, 2010:
Lihr Gold Ltd.
(LIHR)
reported that
its full year
2009 gold
production
rose
approximately
27% to a
record 1.12
million
ounces, which
is in line
with previous
issued
guidance. LIHR
expects 2010
production to
be between
960,000 to
1.06 million
ounces of gold
as the company
works on
expansion
plans to
increase
output to 1.3
million ounces
a year by
2012.
January
21, 2010:
Royal Gold
Inc. (RGLD)
announced that
it has
obtained a new
$100 million
secured term
loan from HSBC
Bank USA,
National
Association,
which will be
funded in
conjunction
with the
closing of the
Plan of
Arrangement
between RGLD
and
International
Royalty Corp.
(IRC), as
announced on
December 18,
2009, whereby
RGLD would
acquire all of
the issued and
outstanding
shares of
IRC). The loan
will mature 18
months from
the funding
date with
principal
repayments
scheduled to
occur every
three months.
|
| INSIDEMETALS.COM
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