He wrote the book on “$10,000 Gold” – and he’s sticking to it – by Lisa Wright (Toronto Star – January 13, 2014)

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.

Despite coming off one of the worst years ever in the gold market, CEO of the Bullion Management Group sticks to his extremely bullish price prediction.

Nick Barisheff is the first to admit his golden gaffe. “Last year – a year that saw gold’s greatest decline in 32 years – my book $10,000 Gold was published. How’s that for timing,” the gold bug deadpanned to giggles from the Empire Club of Canada business audience Thursday.

But what he said immediately afterward in his speech to the Bay Street crowd at the Fairmont Royal York Hotel luncheon naturally raised a few eyebrows. “However, I’m confident that gold’s bullish fundamentals are still intact,” said Barisheff, CEO of Bullion Management Group Inc., a precious metals investment firm based in Markham.

In fact, despite the gloomy outlook among metals analysts as the price languishes at the $1,200 (U.S.) per ounce price range, he believes it will rise to $1,800 later this year – and that it remains on track for $10,000 an ounce by 2020.

Read more

NEWS RELEASE: Red Pine and Flying Post First Nation Sign Exploration Agreement

TORONTO, ONTARIO–(Marketwired – Jan. 13, 2014) – Red Pine Exploration Inc. (“Red Pine” or the “Company”) (TSX VENTURE:RPX) announces the signing of an Exploration Agreement (“EA”) effective December 1, 2013 between the Flying Post First Nation Community (“FPFN”) and the Company in connection with the exploration and development of its Cayenne-Chili Property located about 110 kilometres south-west of Timmins.

The EA outlines the working relationship between the Parties with respect to exploration activities within an Area of Interest, which falls entirely within the FPFN Traditional Territory. The Area of Interest includes all claims and surrounding area forming the Cayenne-Chili Property, which is the focus of the Company’s current exploration activity.

The EA remains in effect until such time as the Company or its designate and the Flying Post First Nations have entered into an Impact Benefit Agreement.

The agreement includes specific terms that underline each Party’s mutual respect for the land and a responsible approach to exploring in FPFN’s Traditional Territory. In addition to Community support and input, the agreement also provides the Company with unencumbered access to and on the property in order to conduct all activities related to its exploration and development programs.

Read more

Philippines Sees Nickel Boon on Indonesia’s Ban: Southeast Asia – by Cecilia Yap (Bloomberg News – January 13, 2014)

http://www.bloomberg.com/

The ban on mineral-ore exports from Indonesia, the world’s biggest nickel producer, is poised to benefit neighboring miners in the Philippines, which are predicting an increase in sales. Shares of Nickel Asia (NIKL) Corp. advanced to the highest level since July.

The ban is positive as demand and prices for Philippine supplies will increase, according to Emmanuel Samson, chief financial officer at Nickel Asia. The Taguig City-based company accounts for about a third of Philippine output, Samson said in a telephone interview.

While the Indonesian ban is intended to encourage local processing and boost the value of commodity shipments from Southeast’s Asia’s largest economy, the curbs may hand an advantage to rival producers such as Nickel Asia. Buyers in China, the top user, stockpiled ore before the ban and it may take as long as six months to work off that extra inventory, according to Samson. Producers in China also need to adjust to the lower grade of ore that comes from the Philippines, he said.

“If they do that, it would be very easy for us to ramp up production,” Samson said in an interview Jan. 9. “We think the increase is not going to be until such time that the inventory level will come down,” he said, referring to prices.

Refined-nickel futures jumped as much as 2.4 percent to $14,190 a ton today on the London Metal Exchange, the highest level in two weeks, on concern supplies will be reduced.

Read more

Insight: Gold mine stirs hope and anger in shattered Greece – by Deepa Babington and Lefteris Papadimas (Reuters U.S. – January 13, 2014)

http://www.reuters.com/

OURANOUPOLI, Greece – (Reuters) – A Canadian quest to mine for gold in the lush forests of northern Greece is testing the government’s resolve to prove Europe’s most ravaged economy is open again for business.

The Skouries mine on Halkidiki peninsula – a landscape of pristine beaches and rolling hills dotted with olive groves – is among the biggest investments in Greece since it sank into a debt crisis four years ago.

But it has set Greece’s desperate need for finance to rebuild the economy against the interests of its vital tourism industry, and aroused anger on the peninsula – site of the famed Mount Athos monasteries – over the environmental cost.

Vancouver-based Eldorado Gold Corp took over the project in 2012, promising to invest $1 billion over the next five years as part of a plan to mine eventually source up to 30 percent of its global gold production in Greece. Yet preliminary work on the mine, which is supposed to open in 2016, has set off months of politicking and protests.

Read more

UPDATE 4-Indonesia export ban leaves mining in turmoil, nickel prices rally – by Wilda Asmarini and Michael Taylor (Reuters India – January 13, 2014)

http://in.reuters.com/

JAKARTA, Jan 13 (Reuters) – Indonesia’s mining sector was left in turmoil on Monday after the government pushed through a controversial ban on exporting unprocessed mineral exports.

Global nickel prices and mining shares rallied in the first trading day after the ban in the world’s top nickel ore exporter. The ban on a range of mineral ores took effect on Sunday, five years after a law was passed to force miners to build processing plants. The government provided a last-minute reprieve for exporters to keep shipping some minerals, although U.S. miner Freeport McMoRan Copper & Gold was waiting for confirmation so that it could continue to ship copper.

The policy aims to reduce reliance on raw material exports, but many firms failed to invest in enough smelter capacity to process all of Indonesia’s mining output — meaning that a total ban would have forced extensive shut downs of output and cost the economy billions of dollars.

Late changes approved by President Susilo Bambang Yudhoyono — to ease any short-term economic pain — should allow copper exports by Freeport and Newmont Mining Corp.

Read more

NEWS RELEASE: Goldcorp announces offer to acquire Osisko for C$5.95 per share in cash and shares

(All Amounts in U.S. dollars unless stated otherwise)

VANCOUVER, Jan. 13, 2014 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) today announced that it intends to commence an offer to acquire all of the outstanding common shares of Osisko Mining Corporation (“Osisko”) (TSX: OSK, Deutsche Boerse: EWX) for approximately C$2.6 billion in cash and shares (the “Offer”).

Under the terms of the Offer, Osisko shareholders will be entitled to receive 0.146 of a Goldcorp common share plus C$2.26 in cash for each Osisko common share. Based on Goldcorp’s TSX closing share price of C$25.29 on January 10, 2014, the total consideration offered to Osisko shareholders is C$5.95 per Osisko common share representing a premium of 28% over the 20-day volume-weighted average share price of Osisko from all trading on Canadian exchanges for the period ending January 10, 2014 and a premium of 15% over Osisko’s TSX closing share price on January 10, 2014.

Transaction Highlights

Consistent with Goldcorp’s strategy of disciplined portfolio enhancement, focus on gold and investment in low political risk jurisdictions.
Large ~10 million ounce gold reserve(1) that, with Goldcorp’s financial and technical resources, should support a long mine life and low all-in sustaining costs.

Read more

Neil Young’s misguided assault on Alberta oil sands doing a disservice to natives – by Peter Foster (National Post – January 13, 2014)

The National Post is Canada’s second largest national paper.

The first performance by environmental supergroup Suzuki Weaver and Young — at Massey Hall in Toronto on Sunday afternoon — was more entertaining, and thought-provoking, than anticipated.

The venue was to hold a concert by rock legend Neil Young in the evening as part of his four-city Canadian “Honour The Treaties” tour. All proceeds are to go to a legal fund for the people of Fort Chipewyan, which is 220 kilometers north of Fort McMurray. Mr. Young is hardly the first celebrity to join the pack assault on the oil sands, and to pick the downstream community of Fort Chipewyan as a focal point, although he seems to have been the first to suggest that the development looks like Hiroshima. On Sunday he opined that such a comparison was “mellow.”

His backup group of David Suzuki, as “moderator,” and climate modeller turned Green party BC MLA Andrew Weaver were there to amplify Mr. Young’s castigation of greed, corporations and the Harper government. But the pregnant question raised by the conference was the extent to which native people might be more victimized by their “friends” than their alleged enemies.

The afternoon’s standout performance came from Athabasca Chipewyan First Nation (ACFN) chief Allan Adam, a tough-looking but earnest man who, while obviously frustrated, revealed the complexities of his situation.

Read more

Greenland Seeks Advice on Uranium Extraction – by Clemes Bomsdorf (Wall Street Journal – January 10, 2014)

http://online.wsj.com/home-page

Government Has Worked to Lure Developers and Miners, but Small Populace Lacks Experts

COPENHAGEN—Greenland’s leader said Friday the nation is looking to implement the toughest possible rules for exporting uranium, a radioactive material that is a natural byproduct when mining rare-earth minerals.

Greenland Prime Minister Aleqa Hammond, in an interview, said “it is our duty and obligation” to pursue the same conditions as nations considered to be leaders when it comes to security precautions. “We will be following the highest international standards [and are aiming at] Canada and Australia.”

The future of Greenland’s mining sector is one of the more important questions facing Ms. Hammond, elected in 2013. Because Greenland still is under Danish sovereignty, Ms. Hammond has been negotiating with Denmark’s leaders, including Prime Minister Helle Thorning-Schmidt —on how to approach the sensitive issue of uranium extraction and export, and an agreement is expected later this year.

Read more

White River First Nation wants staking ban on its land (CBC News North – January 10, 2014)

http://www.cbc.ca/north/

Lobbying for same treatment as Ross River Dena Council

Yukon’s White River First Nation is calling for an immediate ban on mineral staking within its traditional territory. The First Nation wants the same treatment that is being extended to the Ross River Dena Council.

A temporary ban on staking went into effect in the Ross River area since the end of December 2013, while consultations continue between the government and the First Nations.

That was in response to a 2012 court ruling, later upheld despite a Yukon government appeal, which ruled in favour of a challenge by the Ross River Dena Council, who sought to be consulted before staking takes place.

In December 2013, the Yukon government also made changes to the Yukon Quartz and Placer Mining Acts to comply with the decision, but for now, those changes only apply to Ross River.

Read more

Goldcorp to spend US$570-million on Éléonore mine – by Robert Gibbens (Montreal Gazette – January 10, 2014)

http://www.montrealgazette.com/index.html

Goldcorp Inc. said it is spending US$570 million this year on its Éléonore mine in Quebec’s James Bay region to get it into initial production of 40,000 to 60,000 ounces in the final quarter.

The new mine has a total capital cost of $1.8 billion to $1.9 billion, up from the last estimate of $1.75 billion, and targets average annual output of 600,000 ounces, Goldcorp CEO Chuck Jeannes said Thursday. (All figures are in US dollars.)

“We’re counting on strong cash flow from our other gold mines, including Red Lake in Ontario, with 2014 output of 440,0000-480,000 ounces, and Penasquito in Mexico with 530,000-560,000 ounces, to provide the liquidity to fund Éléonore and our other projects requiring total capital spending of $2.3 billion to $2.5 billion,” he said in a quarterly update.

Also, Goldcorp has a $2-billion undrawn credit facility available, he added. Overall, Goldcorp expects to produce 3 million to 3.15 million ounces in 2014, up 13 per cent to 18 per cent from 2013, and targets 3.5 million to 3.8 million ounces in 2018.

Read more

NEWS RELEASE: Edmund J. Longyear to Be Inducted into International Mining Technology Hall of Fame

SALT LAKE CITY — Jan. 9, 2014 — Boart Longyear (www.BoartLongyear.com), the world’s leading provider of integrated exploration drilling services, equipment and performance tooling, is honored to announce that Edmund J. Longyear will be inducted into the International Mining Technology Hall of Fame’s inaugural class for his role in exploration. Fourteen inductees will be honored during a gala dinner hosted at the Grand America Hotel in Salt Lake City, Utah, on Saturday, Feb. 22, 2014.

Longyear’s influence in contract diamond drilling, geological services and shaft sinking in the early part of the 20th century served the rapidly growing U.S. iron ore mining and steel industry. This led to him winning the exploration nomination.

“Edmund truly was a pioneer in mineral exploration and drilling,” said Richard O’Brien, president and chief executive officer of Boart Longyear. “He deserves the recognition that the International Mining Technology Hall of Fame bestows upon its inductees.”

In 1890, Longyear drilled the first diamond core hole in the Mesabi Iron Range in northern Minnesota. He later formed the E.J. Longyear Company, which would eventually become Boart Longyear.

Read more

Mining equipment companies try to dig out from downturn – by Rick Barrett (Milwaukee Wisconsin Journal Sentinel – January 11, 2014)

http://www.jsonline.com/

Outlook remains rocky for Joy Global, Caterpillar

If there’s a bottom to the mine shaft for Milwaukee mining equipment companies, which saw business plummet in 2013, they haven’t found it. Joy Global Inc. ended the year with net income down 30%, to $533.7 million, or $4.99 a share, and revenue down 12% to $5 billion.

Caterpillar Inc., which has its mining equipment division based in South Milwaukee, reports fourth-quarter and full-year earnings on Jan. 27. In its most recent quarter, the company said earnings plunged 44%, to $946 million, or $1.45 a share, and that revenue would be down 17% for the year.

Caterpillar shut factories and cut its workforce by some 13,000 people, including hundreds of jobs in Milwaukee and South Milwaukee, where it manufactures some of the world’s biggest mining machines.

Until 2013, rising commodity prices fueled a boom for Caterpillar, based in Peoria, Ill., and Joy Global. Then China’s economy sputtered, undercutting demand for mined materials and the machines used to extract them from the ground.

Read more

Mining, moose and consultation (Thunder Bay Chronicle-Journal Editorial – January 12, 2014)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

GIVE Kitchenuhmaykoosib Inninuwug full marks for consistency. No matter what is proposed on its lands around Big Trout Lake, 375 km north of Thunder Bay, KI and its feisty chief, Donny Morris will probably oppose it. Two mining ventures — potential economic winfalls — were stopped cold and now Morris has told the Ministry of Natural Resources not to conduct an aerial moose population survey.

The band’s position is rooted in the evolving legal requirement for consultation before anything can proceed. Indeed, Morris gets credit for helping to lead this important process. First Nations must be consulted and reasonably accommodated when outside ventures like mining are proposed. And if a band wants no part of such proposals, no matter their potential to lift people out of poverty and create job training and employment, well, that is apparently its right.

No one should deny a community the courtesy of sitting down and working out rules for such things. But Morris has made such a habit of opposition that it is beginning to appear counter-productive.

Mining company Platinex was first to try to set up shop around KI. Operating under terms of the Mining Act it began exploring and there soon arose a dispute over KI’s lack of permission.

Read more

Gold: A History, a Hunt, a Fever – An easy read, but fails to address obvious problems – by Douglas Bell (Globe and Mail – January 10, 2014)

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.

The currency of journalism is impartiality. Ideally, it is practiced without fear or favour. When conducted at the behest of an a priori agenda, it is impotent (hardcore journalists are forever sneering at those who practice “advocacy”).

As a practical matter the difference is obvious. State owned and operated media in Russia don’t afford the same species of product as the BBC. An authoritarian oligarchy rigs its “journalism” to filter out inconvenient facts. The BBC enjoys credibility precisely because the broadcaster and its news service engineers a relationship at arm’s length from the state. In this sense, it’s not a stretch to suggest that Matthew Hart’s approach in reporting the global gold rush is, in spirit, nearer Moscow than London.

Formally Hart – himself a former producer at CBC news and an esteemed print journalist – is a fluent stylist and an adventurous reporter. In South Africa, he plummets into the earth more than a mile and a half (“My stomach sailed into my ribs. My ears blocked. Air whistled through the wire mesh”) aiming to investigate what it takes to dig the stuff out.

Read more

Jack Lifton refutes WSJ article: ‘How the Great Rare-Earth Metals Crisis Vanished’ – by Jack Lifton (Investor Intel – January 12, 2014)

http://investorintel.com/

The WSJ article published on January 8, 2014 How the Great Rare-Earth Metals Crisis Vanished declares that the “rare earth crisis” is over, and as support refers to the conclusions of a “leaked” Pentagon report. It glibly declares, analyses, and dismisses, as a failure, a Chinese plot to maintain control of the production and pricing of the rare earths as having been defeated by the forces of the market and capitalism.

But the real crisis is that western end-users of rare earth enabled components have proved that if you don’t capitalize the security of supply then when the market turns in your favor you are unprepared to take advantage of it. It is in the naked greed of the stock market where the real rare earth crisis was invented, fomented, sucked dry — and forgotten. The stock market flies no national flag and its players care little for apple pie or mom.

Notwithstanding what this author states there is today no nation other than China that has in place a total domestic rare earth supply chain. Thus even if you do produce rare earths outside of China you must send them to China if you want to first refine mining concentrates and then to fabricate rare earth metals and alloys for use, for example, as magnets. In particular none whatsoever today of the “critical” heavy rare earths are produced outside of China.

Read more