Archive | Gold and Silver

2017 PDAC Thayer Lindsley Award: Peter Megaw, MAG Silver Corporation

PDAC 2017 Thayer Lindsley Award: Peter Megaw from PDAC on Vimeo.

This award recognizes an individual or a team of explorationists credited with a recent significant mineral discovery anywhere in the world.

Peter Megaw, MAG Silver Corporation: For the 2003 discovery of the 200 million ounce Juanicipio silver deposit in the Fresnillo District, Mexico, ultimately leading to a further 600 million ounces being identified in the immediate area.

In 2003, Peter Megaw, a Professional Geologist and co-founder of MAG Silver, made a blind discovery known as the Juanicipio silver deposit that contains more than 200 million ounces silver. The discovery resulted from an understanding of structural controls and mineral zoning patterns of epithermal vein systems and persistent application of field-based exploration methods.

The Juanicipio silver deposit was discovered in the 500 kilometre-long Fresnillo epithermal belt in Mexico, which extends from the Guanajuato district (1.3 billion ounces silver) through Zacatecas (1.0 billion ounces silver) and Fresnillo (1.2 billion ounces silver) to the San Martin-Sabinas district (800 million ounces silver). Continue Reading →

2017 PDAC Environmental & Social Responsibility Award: Teranga Gold Corporation

PDAC 2017 Environmental & Social Responsiblity Award: Teranga Gold from PDAC on Vimeo.

(L to R) Richard Young (Teranga Gold Corp.) and Don Lindsay (CEO Teck Corp.)

This award honours an individual or organization demonstrating outstanding initiative, leadership and accomplishment in protecting and preserving the natural environment and/or in establishing good community relations during an exploration program or operation of a mine.

Teranga Gold Corporation: For outstanding community relations and making proactive, lasting contributions to the communities and surrounding regions of its Sabodala Gold Mine in Senegal, West Africa.

The Sabodala Gold Mine is the first and only gold industrial mine in Senegal. Teranga Gold Corporation (Teranga) has operated the mine since 2009, and has established itself as a leader in community relations and responsible mining practices.

In its 2015 Sustainability Report, Teranga acknowledges that it is operating as a guest in Senegal, and the right to be there must be earned. This is reflected in the company’s approach to mining, which begins by creating a culture of risk mitigation and shared long-term value with host communities. Continue Reading →

Acacia Mining: Tanzania ban costs $1 mln daily in revenue – by Susan Taylor (Reuters U.S. – March 24, 2017)

TORONTO – Acacia Mining is losing more than $1 million in revenue each day at two mines in Tanzania because of the country’s ban on exports of gold and copper concentrates, the London-listed company said on Friday.

Acacia, majority owned by Barrick Gold, said it can produce and store concentrate at its Bulyanhulu and Buzwagi mines beyond the end of April, but must assess how long that can continue if the ban remains.

“We are taking a range of actions to help manage this financial impact,” Acacia said in a statement, without specifying any measures. Acacia, the largest miner in Tanzania, said talks with government officials have failed to result in the ban being lifted. Continue Reading →

Barrick, Goldcorp team up to develop one of world’s largest gold deposits in Chile – by Cecilia Jamasmie ( – March 28, 2017)

Canada’s Barrick (TSX, NYSE:ABX) and Goldcorp (TSX:G) (NYSE:GG), the world’s No.1 and No.3 producers of the precious metal by value, are teaming up to develop projects in northern Chile, particularly Cerro Casale, one of the world’s largest gold-copper deposits.

As part of the agreement, Barrick has sold a 25% stake in Cerro Casale to Goldcorp, which will result in a 50-50 joint venture focused on building gold mines in Chile’s prolific Maricunga belt.

The move, a fresh sign that miners are moving from cost-cutting to expanding operations and investing in exploration, also prompted Goldcorp to acquire Exeter Resource Corporation (TSX:XRC) for about $250 million. The takeover makes of Goldcorp the sole owner of the Caspiche gold-copper project, conveniently located only 10 km north of Cerro Casale. Continue Reading →

Investors won’t swallow Detour delay – Staff (Mining Journal – March 28, 2017)

Detour Gold’s (CN:DGC) revised mine plan for its namesake operation in Ontario released last week is unlikely to inspire near-term investment, placing the company in limbo until it is able to execute on expansion plans – previously pegged for early next year – in more than three years’ time.

Detour in late January said it had moved development of the West Detour zone of the Detour Lake mine back from early 2018 to 2021 in a new “base case” scenario forced by a local aboriginal group, which wants a federal environmental assessment of West Detour by the Canadian Environmental Assessment Agency. That is typically a two-to-three-year process, whereas the provincial review generally takes a year.

This prompted a rethink on the mine plan, which will mean some uglier numbers than previously anticipated. Though the annual mining rate will increase to 125 million tonnes by adding more mining equipment and the mine life has been extended slightly, life-of-mine costs “site costs” are up 8% to US$758 per ounce. Continue Reading →

Massive Canadian gold coin worth millions stolen from German museum – by Tu Thanh Ha (Globe and Mail – March 28, 2017)

A group of Berlin thieves pulled off an improbable heist early Monday morning, breaking into a German museum with a ladder and carting away a 100-kilogram gold coin named the “Big Maple Leaf” in a wheelbarrow.

Between 3:20 and 3:45 on Monday morning, thieves entered the Bode Museum through a window and stole the coin, which was originally issued by the Royal Canadian Mint. It has a face value of $1-million but, according to current gold prices, could be worth at least $5-million.

Martin Halweg, a spokesman with the German police, told The Globe and Mail that the suspects are believed to have set up a three-metre-long ladder, which enabled them to enter at the back of the Bode next to a set of railway tracks. They then used a wheelbarrow to remove the valuable, which is one in a series of six certified by Guinness World Records because of its size and 999.99/1000 gold purity. Continue Reading →

Gold hits 1-mth top after Trump doubts knock dollar and shares – by Marcy Nicholson and Jan Harvey (Reuters India – March 28, 2017)

NEW YORK/LONDON – Gold rallied more than 1 percent on Monday after U.S. President Donald Trump’s failure to push through a healthcare reform package on Friday raised questions over his ability to deliver promised tax cuts and spending plans.

That knocked the dollar .DXY to a four-month low versus a basket of currencies. Stocks and U.S. long-dated Treasury yields slipped but recovered lost ground as investors hoped Trump will still be able to bolster the economy. [MKTS/GLOB]

Spot gold XAU= was up 1 percent at $1,256.02 an ounce by 2:28 p.m. EDT (1828 GMT), having touched a one-month high of $1,261.03 and failing to hold above the 200-day moving average for the second time in a month. U.S. gold futures GCv1 for April delivery settled up 0.6 percent at $1,255.70. Continue Reading →

[South Africa] Reviving King of Gold Means Getting Mine Workers Off Their Knees – by Kevin Crowley (Bloomberg News – March 24, 2017)

During his early years as a miner in South Africa, Joas Mahanuque spent six hours a day on his knees drilling for Impala Platinum Holdings Ltd. The dust-filled tunnels half a mile underground were too low for him to stand, and temperatures reached 105 degrees Fahrenheit (40 degrees Celsius).

Today, he has essentially the same job 2.5 kilometers (1.5 miles) beneath the surface for Gold Fields Ltd. But unlike most of the precious-metals miners in the country, Mahanuque sits comfortably atop a new 7-ton vehicle, using a joystick to control an 8-foot drill as ventilated air blows behind him.

“It’s not hard,” the 37-year-old said while taking a break under the bright tunnel lights of South Deep, the country’s only fully mechanized underground gold mine. “You just sit and operate and make money.” Continue Reading →

Silver Wheaton Corp wants a name change to reflect that gold makes up more than half its revenue – by Sunny Freeman (Financial Post – March 23, 2017)

TORONTO — Vancouver-based streaming company Silver Wheaton Corp. is proposing a name change to Wheaton Precious Metals Corp. as it seeks a brand that better reflects the increasingly large contribution gold is making to its bottom line.

“A lot of investors judged our book by its cover and so we’ve decided to change the cover,” chief executive officer Randy Smallwood said in an interview Wednesday. “The name change really reflects the fact that we are truly a precious metals company and not just a silver company.”

In 2004, Silver Wheaton pioneered the concept of financing miners upfront in return for a portion of future production at a fixed discounted price. The company started off in the silver space but has seen a marked increase in gold production since 2013. Continue Reading →

Tribunal favours Barrick, Antofagasta in Pakistan lease denial case – by Cecilia Jamasmie ( – March 21, 2017)

A World Bank’s tribunal has ruled in favour of Tethyan Copper Co. (TCC), a joint venture between Barrick Gold (TSX, NYSE: ABX) and Antofagasta (LON:ANTO), in relation to the denial of a mining lease for the multi-billion-dollar Reko Diq copper and gold reserve in the Pakistani province of Balochistan.

The decision by the International Center for Settlement of Investment Disputes (ICSID), issued on Monday, confirms that Pakistan violated several provisions of its bilateral investment treaty with Australia, where Tethyan Copper is incorporated, Barrick said in a statement. The ruling also rejects Pakistan’s final defense against liability.

The case dates back to 2011, when the provincial government of Balochistan rejected TCC’s application for a mining licence at the remote Reko Diq site, near the Afghan-Pakistan border, even though the firm had been awarded a licence for exploration in the area in 2006. Continue Reading →

Endeavour, Acacia talks break down – by Staff (Mining Journal – March 22, 2017)

Two months after announcing they were in discussions about a possible merger, Acacia Mining (LN:ACA) and Endeavour Mining (CN:EDV) have called it quits, deciding a joint Africa-focused gold mining proposition is not in the best interest of shareholders.

The combination, which would have seen Acacia’s Tanzania operations joined with Endeavour’s West Africa assets, had been heralded as the first major piece of gold M&A in 2017 and got analysts and bankers, alike, very excited at the prospect of further corporate transactions.

In separate statements, the two said they had agreed to terminate discussions, with shareholder value seemingly the main sticking point. The deal was initially seen as a way for Barrick Gold (CN:ABX) to more than halve its 64% Acacia stake to a 30% level. Continue Reading →

Column: Gold is marooned between U.S. rates and India demand – by Clyde Russell (Reuters India – March 21, 2017)

LAUNCESTON, AUSTRALIA – It’s not unusual for a financial market to be pulled in different directions simultaneously by competing influences, but what is notable for gold currently is the apparent inability of the contradictory factors to gain momentum.

History and logic suggest that when the United States starts a monetary tightening cycle, gold will underperform, since as a non-yielding asset it loses out to instruments that will enjoy higher yields from the rising rates.

The Federal Reserve lifted interest rates on March 15 for the second time in three months, with expectations that it will raise at least twice more this year and perhaps three times in 2018. Continue Reading →

Orefinders Resources starts assessment study of former Kirkland Lake mine – by Staff (Northern Ontario Business – March 21, 2017)

A Toronto junior explorer has eyes on putting a former Kirkland Lake-area gold mine back into production.

Orefinders Resources are crunching the numbers on a new resource calculation around a high-grade gold zone they discovered within the former Mirado open-pit mine, and are starting a preliminary economic assessment (PEA) to consider restarting mining operations.

The property, located 35 kilometres southeast of Kirkland Lake, contains three former mines, including the Mirado. Gold was first mined on the property in the 1940s followed by number of companies who subsequently explored, drilled and mined over the years, the last being Golden Shield Resource in the mid-1980s. Continue Reading →

Salesman Who Bought Gold in Jungle to Fight Laundering Case – by Michael Smith and David Voreacos (Bloomberg News – March 20, 2017)

Juan Pablo Granda had a simple job — go into South American jungles and buy gold for his employer, NTR Metals, to smelt.

After U.S. investigators began examining whether NTR might have helped traffickers convert cocaine profits into cash, the company hired Jones Day to review its practices — and Granda agreed to help the law firm, his lawyer said. So, when NTR told him to fly home last week for a meeting, nothing seemed amiss. But by the time that was over, he’d been fired.

Then his mother called from the home they shared in Miami. “She said, ‘Listen, I’ve got all these FBI agents here, they might want to arrest you,”’ said Granda’s attorney, Edward O’Donnell IV. “So he got in his car and went to his mom’s house. He talked to the FBI agents, and they arrested him.” Continue Reading →

PDAC 2017: What’s wrong with hedging? – by Trish Saywell (Northern Miner – March 14, 2017)

Barrick Gold (TSX: ABX; NYSE: ABX) pioneered gold hedging more than two decades ago, but the company endured sharp criticism when the strategy became a liability, and management eventually closed out its fixed-price hedge book at a significant cost in 2009.

The pros and cons of hedging remain the subject of debate to this day, and the topic came up during a discussion at the recent Prospectors & Developers Association of Canada convention in Toronto, when a participant asked a panel of bankers whether they thought the practice was a useful tool for the industry.

Egizio Bianchini of BMO Capital Markets — who prefaced his remarks by pointing out that BMO has the smallest commodity desk of all the banks represented on the panel, making him “the least conflicted” to answer the question — responded with an emphatic yes. Continue Reading →