July 17, 2012 – Republic of Mining

NEWS RELEASE: Gold discoveries not keeping pace with mined production

July 17, 2012

Gold in Reserves, Resources, and Past Production in Major Gold Discoveries by Country, 1997-2011 (Total Reserves, Resources, and Past Production of 743 million oz of gold)

http://www.metalseconomics.com/

Strategies for Gold Reserves Replacement: The Costs of Finding and Acquiring Gold

Halifax, Nova Scotia, July 17, 2012 – Metals Economics Group’s (MEG) recently released study, Strategies for Gold Reserves Replacement: The Costs of Finding and Acquiring Gold, reports that 99 significant gold discoveries (defined as a deposit containing at least 2 million oz of gold) have been reported so far in the 1997-2011 period, containing 743 million oz of gold in reserves, resources, and past production as of year-end 2011. Assuming a 75% resource-conversion rate and a 90% recovery rate during production, these 99 discoveries could potentially replace only 56% of the estimated gold mined during the same period, if they are economical to mine. Then again, the economic viability of the discovered gold relies to a large extent on location, politics, capital and operating costs, and market conditions, which will inevitably further reduce the amount of resources that will reach production.

The case for a new gold rush – by Martin Mittelstaedt (Globe and Mail – July 17, 2012)

July 17, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

When it comes to gold, Warren Buffett doesn’t know what he’s talking about, according to one of the metal’s most ardent European fans. Gold is likely to hit a record high of $2,000 (U.S.) an ounce over the next year, driven by fears over government deficits and worries that central banks will be forced into more money printing, according to Erste Group, an Austrian bank.

The bank believes the precious metal will eventually rise even further, reaching at least $2,300 an ounce, which would match its high from the early 1980s if inflation is taken into account. In a recent report to clients the institution says that given the instability in the global financial system, its price forecast “could be on the conservative side.”

Erste Group has been producing annual forecasts of gold prices since 2007, and has been bullish over the period – an accurate call, given gold’s surging fortunes over the past five years.

This year’s 120-page report includes such quirky measures as how many litres of beer can be purchased at Munich’s Oktoberfest each year with an ounce of gold. It also features a lengthy discussion on Mr. Buffett’s well-known antipathy toward gold, which the bank views as an irrational form of “aurophobia.”

NDP Leader Tom Mulcair stands his ground in Harper’s hometown – by Gillian Steward (Toronto Star – July 17, 2012)

July 17, 2012

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Gillian Steward is a former managing editor of the Calgary Herald. Her column appears every other week. gsteward@telus.net

NDP Leader Tom Mulcair strode into the heart of Calgary last week wearing full cowboy regalia — white hat, blue and white plaid shirt (with just a hint of orange), a huge bronze belt buckle (under a bit of a paunch), jeans and black boots.

With his beard he looked more like a grizzled range rider than Stephen Harper ever will. The Quebec MP was even pronounced the best-dressed politician at the Stampede by a keen observer of cowboy fashion.

“He seems to have nailed it with a good western outfit and he looks like he belongs, looks like he’s stepping into the role,” said Brian Guichon, owner of Riley & McCormick Western Stores. Guichon named Harper the runner-up for his outfit, which was topped by a black hat. Mayor Naheed Nenshi garnered third place. During his short visit Mulcair showed that he had much more going for him than an acute fashion sense.

Sudbury-born mine tech assists in Elliot Lake mall excavation [Penguin Automated Systems] – by Lindsay Kelly (Northern Ontario Business – July 2012)

July 17, 2012

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Robot recon

There’s an unwritten code adhered to by people working in the mining industry: when emergency strikes, you do whatever you can to help. That’s why Greg Baiden didn’t hesitate to offer up a pair of $2-million reconnaissance robots when he got word that part of the roof had collapsed at the Algo Centre Mall in Elliot Lake, potentially trapping people inside.

Baiden, chair and chief technology officer of Penguin Automated Systems Inc., was actually in Charlotte, N.C., en route to Florida to test a new optical communications system, when he got the call, but co-ordinating from afar, a team was mobilized from his Sudbury office.

The crew arrived in Elliot Lake on the evening of June 27, a day after the Heavy Urban Search and Rescue (HUSAR) team tasked with sifting through the rubble had reached the end of its capabilities. Though originally created for use in underground mines, Penguin designed the robots with mine rescue in mind.

Public money should not prop up asbestos mining – by Alana Wilson (Winnipeg Free Press – July 17, 2012)

July 17, 2012

http://www.winnipegfreepress.com/

Alana Wilson is senior research analyst in the Fraser Institute’s global centre for mining studies www.miningfacts.org

Canada’s mining industry is globally competitive, and has long succeeded without much in the way of government subsidies. It even thrived in the last recession by responding to market demand. Yet instead of letting markets drive mining investment in Quebec, the provincial government is bailing out the asbestos industry using taxpayer money — and this for a product that is harmful to human health.

In recent years, market demand for chrysotile asbestos produced in Canada shrunk dramatically which lead to a halt of chrysotile mining. But instead of letting mines stay closed, taxpayer funds will reopen an unprofitable chrysotile mine.

Quebec Premier Jean Charest recently approved a $58 million loan to allow the closed Jeffrey asbestos mine to reopen. Even before the announced bailout, the mine struggled and operated infrequently in recent years. All other Canadian asbestos mines have closed; the last one was shuttered in November.

The demise of Canada’s asbestos industry reflects a declining demand for asbestos, driven by health concerns.

The justification for Munk’s influence at Barrick wanes – by Boyd Erman (Globe and Mail – July 17, 2012)

July 17, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Barrick Gold Corp. shareholders have a chance to get answers next week to some of the most pressing questions about the ouster of Aaron Regent as chief executive officer, but one key question about the future of the world’s largest gold producer will almost certainly remain.

Barrick releases earnings July 26, and senior management will address its investors for the first time in any depth since the surprise June 6 CEO change that installed Jamie Sokalsky, a long-time company man.

Investors can expect to hear what the company’s new direction is going to be under Mr. Sokalsky, the subtext being that whatever he outlines will be what the Barrick board wanted from Mr. Regent and wasn’t getting. Barrick has started by reviewing all of its projects to maximize returns.

Of course, when you say “the Barrick board,” what most people hear is “Peter Munk,” the charismatic and iconic founder of the company. Mr. Munk casts a huge shadow over the Toronto-based mining company, and wields a lot of power as Barrick’s co-chairman.

Shawn Atleo will defend post as national chief – by Tanya Talaga (Toronto Star – July 17, 2012)

July 17, 2012

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

At any given moment, there are nearly 500 government lawyers challenging aboriginal treaty rights in Canada. There are 100 First Nations communities just like Attawapiskat — places of abject poverty with no adequate housing or hydro and almost as many reserves are without clean drinking water.

On some days, Shawn A-in-chut Atleo, the 45-year-old national chief of the Assembly of First Nations, admits it is like he is knocking his head against the wall in trying to make real progress for indigenous people. But he is running for re-election Wednesday because he feels the “moment of reckoning” is now.

Canada is moving to develop precious resources in Alberta’s oilsands and Ontario’s Ring of Fire — where one of the world’s largest chromite finds in the James Bay lowlands is said to exceed $30 billion — but they have to deal with the First Nations living adjacent to these riches in order to do so.

“Canada will not be whole until it addresses its relationship with First Nations through a rights-based viewpoint,” says Atleo, emphatically. “We are not just stakeholders.”