Archive | Gold and Silver

Acacia Mining fights back in Tanzania gold ore battle – by Henry Sanderson and Neil Hume (Financial Times – May 26, 2017)

https://www.ft.com/

Shares in Acacia Mining bounced 8 per cent on Friday after the crisis-hit miner fought back against accusations that it had misstated the value of its gold shipments from Tanzania by up to 10 times.

The London-listed company said the claims made by a presidential committee in the east African country this week that it was under-reporting exports from its Bulyanhulu and Buzwagi mines did not stand-up to scrutiny.

“If the committee’s published findings were based on accurate data, Bulyanhulu and Buzwagi would be the world’s two largest gold producers,” the company said in a statement. “Given the magnitude of this discrepancy, we believe there should be an independent review.” Continue Reading →

Strike impacts Freeport’s Grasberg mine, workers ‘resigned’ – by Susan Taylor (Reuters U.S. – May 25, 2017)

https://www.reuters.com/

TORONTO – Freeport McMoRan Inc said Thursday that mining and milling rates at its Grasberg mine in Papua, Indonesia have been affected by an extended strike, and a “large number” of approximately 4,000 absentee workers were deemed to have resigned.

Escalating labor tension is a further disruption for Freeport, entangled in a lengthy dispute with Indonesia over rights to the giant mine, which has cost both sides hundreds of millions of dollars. Arizona-based Freeport is now trying to mitigate the impact of workforce issues on mining and milling rates, which it would not quantify, by re-allocating resources, training additional workers and supplementing its mill throughput with available stockpiles, spokesman Eric Kinneberg said.

Benchmark copper prices hit three-week highs Thursday as worries about prolonged disruptions at Grasberg triggered short-covering, ahead of a long holiday weekend in Europe and top consumer China. Freeport Indonesia union industrial relations officer, Tri Puspital, told Reuters on Saturday that the strike had halved Grasberg’s output. Continue Reading →

PDAC 2017: Lukas Lundin on patience and
 his early successes – by Salma Tarikh (Northern Miner – March 25, 2017)

Global mining news

Mining tycoon Lukas Lundin, chairman of the Lundin Group, spoke with The Northern Miner at the Prospectors & Developers Association of Canada convention in March about his early successes in Argentina and the Democratic Republic of the Congo (DRC), before touching upon his latest adventure in Ecuador.

Starting with the Bajo de la Alumbrera project in Catamarca, Argentina, Lundin says in 1990 he began investigating the classic copper-gold porphyry deposit, but was unfamiliar with porphyries at the time. “I was a bit naive. I didn’t know what a porphyry system was in the nineties. I thought it was a heap-leach gold project.

“It probably helped not to know too much, because if you knew too much, you’d probably think it was too far in the interior or too long to go to the coast … the majors thought it was too complicated.” Despite these challenges, Alumbrera has become one of the world’s top-10 copper producers. Continue Reading →

Tanzanian president fires mining minister and chief of state-run agency – by Fumbuka Ng’wanakilala (Reuters U.S. – May 24, 2017)

http://www.reuters.com/

DAR ES SALAAM – Tanzania President John Magufuli fired his mining minister and the chief of the state-run mineral audit agency on Wednesday after an investigation into possible undeclared exports by mining companies to evade tax.

Magufuli’s decision, announced in a televised speech, signals an escalation of tensions between the government and the mining industry, which has denied engaging in tax evasion. Mining accounts for about 4 percent of the East African nation’s gross domestic product.

Magufuli said the investigation report revealed that Acacia Mining declared the presence of gold, copper and silver in its mineral sand exports but did not declare other precious metals in the consignments. Continue Reading →

Dawson City miners wary of UNESCO World Heritage bid – by Dave Croft (CBC News North – May 23, 2017)

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

Desigination would see Klondike area recognised by the United Nations for its history and culture

Some Dawson City placer miners are opposed to World Heritage status for parts of the Klondike, despite a letter from three levels of government pledging mineral exploration and development will not be affected by the designation. The miners raised their objections at a public meeting in Dawson City over the weekend.

An application for World Heritage status was made in January to the United Nations Educational Social and Cultural Organization (UNESCO), by a committee that includes representatives of the Yukon Chamber of Mines and the Klondike Placer Miners’ Association.

If granted, it would make the Klondike an area officially recognized by the United Nations for the history of the Tr’ondëk Hwëch’in First Nation, the 1898 Gold Rush, and the activities of the people currently living there. A decision is expected before July 2018. Continue Reading →

Nevada gold production increases in 2016 – by Adella Harding (Elko Daily Free Press – May 18, 2017)

http://elkodaily.com/

Gold production in Nevada rose 2.4 percent in 2016 to nearly 5.47 million ounces, while silver production was down 6.4 percent to a nearly 8.89 million ounces, show new figures from the Nevada Division of Minerals. Total gold production in 2015 was nearly 5.34 million ounces, and 2015 silver production totaled a little less than 9.5 million ounces.

“The value of production won’t be available until the Department of Taxation releases their Net Proceeds of Minerals bulletin,” however, said Michael Visher, deputy administrator for the minerals division, in an email in May.

The two largest gold producers were Barrick Gold Corp. and Newmont Mining Corp. Barrick produced nearly 2.64 million ounces of the total gold production and 200,757 ounces of silver from operations on the Carlin Trend, the Cortez operations near Crescent Valley and Turquoise Ridge in Humboldt County. Continue Reading →

Exclusive: Barrick’s Argentina mine may be allowed full operations in June – by Maximiliano Rizzi (Reuters U.S. – May 22, 2017)

http://www.reuters.com/

BUENOS AIRES – The government of Argentina’s San Juan province has approved a plan for improving Barrick Gold Corp’s Veladero mine following its third spill of cyanide solution in 18 months and could allow full operations to resume in early June, a government official said.

Eduardo Machuca, the province’s secretary of environmental management and mining control, told Reuters in a phone interview that local authorities had reviewed and discussed Barrick’s improvement plan and improvements to the mine were well under way.

“I think that around June 10 there will be conditions to enable the mine, once the pneumatic, hydraulic and all engineering tests are done,” Machuca said on Monday. Continue Reading →

Canadian gold majors eye home-field exploration advantage – by Matthew Keevil (Northern Miner – May 23, 2017)

http://www.northernminer.com/

VANCOUVER — Canada’s gold miners are naturally interested in discovery back home, but the push for more so-called homegrown ounces appears to be on the rise following the recent down cycle, with oft-cited reasons including: geopolitical risk, operational synergies, and favourable infrastructure.

The Northern Miner reviewed exploration reports from three marquee Canadian gold producers to find where these major miners are most active in Canada.

Barrick Gold

The world’s largest gold producer had its start near Wawa, Ont., but it’s subsequently developed major production centres in Nevada and abroad. Barrick Gold (TSX: ABX; NYSE: ABX) operates the historic Hemlo gold mine 35 km east of Marathon, Ont., however, where it drilled nearly 20,000 metres last year. Continue Reading →

From Yukon to Patagonia, Gold Explorers Stir After Sleep – by Danielle Bochove (Bloomberg News – May 18, 2017)

https://www.bloomberg.com/

From Canada’s Yukon to southern Patagonia, outbreaks of gold-rush fever are popping up as bullion markets stage a tentative recovery.

The number of holes drilled at gold deposits has been rising steadily for more than a year, according to S&P Global Market Intelligence. And while early-stage exploration budgets haven’t kept pace with spending at existing mines, prospecting hot spots are starting to pop up in traditional destinations Canada, Australia and Latin America.

In some parts of Argentina, exploration has jumped about 50 percent, mainly for lithium but also for gold in provinces such as Santa Cruz, according to state-controlled energy company YPF SA. Chile’s government also sees a pickup this year with prospectors focusing on both copper and gold. Colombia is also attracting more attention. Continue Reading →

Mining magnate Frank Giustra takes a break from producing Blade Runner sequel to return to his first love — mining – by Natalie Obiko Pearson (Financial Post – May 20, 2017)

http://business.financialpost.com/

Bloomberg News – Frank Giustra likes to see big where others think small. The Canadian mining maverick’s latest target is a subterranean patch of red earth in southwestern Mexico. In January his new undertaking, Leagold Mining Corp., bought the Los Filos mine from Goldcorp Inc. for US$350 million.

It wasn’t the open pits churning out 200,000-plus ounces of the precious metal that caught this attention — it was the untapped deposit stretching for roughly 600 meters below. “We just looked at it and thought: This is a jewel,” Giustra, 59, said in an interview at his downtown Vancouver office, where a George Rodrigue blue dog painting hangs at the entrance.

The plan is to use Los Filos to build “a major gold producer over the next two, three, four years,” he says. “Unless the world changes dramatically, I think we’ll pull it off.” Giustra has a track record of finding the sparkle in the dirt. He’s used what he calls a grow-by-acquisition model to help build Endeavour Mining Corp. as well as a predecessor to Goldcorp, which is now one of the largest gold producers and Leagold’s biggest shareholder. Continue Reading →

Dungeons of gold: Sex, booze and braais in underground mine cities – by Graeme Hosken and Jan Bornman South Africa Times Alive – May 22, 2017)

http://www.timeslive.co.za/thetimes/

Millions of rands in sex, food and alcohol is being traded in secret underground cities linked to illegal mining activities in small towns such as Welkom in the Free State.

The town, once a hive of legal mining activity, was the site of one of the worst illegal mining disasters South Africa has seen when at least 34 “zama zamas” were killed in an underground explosion last week. In the aftermath of the explosion illegal miners, police and mine security experts have told stories of underground passages and tunnels in which everything is available for a steep price.

The existence of more than 6000 disused gold, chrome, diamond and platinum mines across South Africa has allowed for the creation of a thriving underground economy. One mining expert says the underground industry supports thousands above ground. Continue Reading →

Investor lawsuits stack up against Barrick Gold over ‘misleading statements’ on cyanide spill in Argentina – by Sunny Freeman (Financial Post – May 19, 2017)

http://business.financialpost.com/

A number of class action lawsuits have been filed against Barrick Gold, alleging the world’s largest gold miner misled shareholders about the fallout of its most recent cyanide spill at a flagship mine in Argentina.

The class actions claim the company misled shareholders in public statements it made after a March rupture of a pipeline carrying a gold-cyanide solution at its Veladero mine in Argentina — the third spill at that mine’s leach pad in two years. Cyanide is used at mine sites to separate gold from the ore.

“Barrick Gold and certain of its senior executive officers made a series of materially false and misleading statements to investors about the Veladero mine and the company’s outlook and expected financial performance,” alleges the latest suit, filed Thursday by Kessler Topaz Meltzer & Check LLP. Continue Reading →

Billion-Dollar Gold Dream Lures Mining Maverick Out of Hiatus – by Natalie Obiko (Bloomberg News – May 17, 2017)

https://www.bloomberg.com/

Frank Giustra likes to see big where others think small. The Canadian mining maverick’s latest target is a subterranean patch of red earth in southwestern Mexico. In January his new undertaking, Leagold Mining Corp., bought the Los Filos mine from Goldcorp Inc. for $350 million. It wasn’t the open pits churning out 200,000-plus ounces of the precious metal that caught this attention — it was the untapped deposit stretching for roughly 600 meters below.

“We just looked at it and thought: This is a jewel,” Giustra, 59, said in an interview at his downtown Vancouver office, where a George Rodrigue blue dog painting hangs at the entrance. The plan is to use Los Filos to build “a major gold producer over the next two, three, four years,” he says. “Unless the world changes dramatically, I think we’ll pull it off.”

Giustra has a track record of finding the sparkle in the dirt. He’s used what he calls a grow-by-acquisition model to help build Endeavour Mining Corp. as well as a predecessor to Goldcorp, which is now one of the largest gold producers and Leagold’s biggest shareholder. Continue Reading →

Paulson Keeps SPDR Gold as Druckenmiller, Templeton Buy Barrick – by Luzi-Ann Javier (Bloomberg News – May 15, 2017)

https://www.bloomberg.com/

Gold and the companies that produce it were back in favor with fund managers last quarter, when the metal posted the best quarterly performance in a year.

Billionaire hedge-fund manager John Paulson maintained his position in SPDR Gold Shares, the world’s biggest exchange-traded product backed by the metal, a regulatory filing showed Monday. Stan Druckenmiller’s Duquesne Family Office LLC bought 2.85 million shares in Barrick Gold Corp., adding the company to its holdings in the period ended March 31, while Templeton Global Advisors Ltd. more than tripled its stake in the Toronto-based miner.

Investors poured $460 million into SPDR Gold in the first quarter, rebuilding their stake after the biggest redemption since June 2013. Investors returned to bullion and gold miners as they dialed back expectations of faster U.S. economic growth amid concerns about U.S. President Donald Trump’s ability to push his pro-growth policies through Congress. Continue Reading →

Ontario snapshot: 4 gold projects nearing production – by Salma Tarikh (Northern Miner – May 16, 2017)

http://www.northernminer.com/

Ontario is a hot spot for gold exploration in Canada, as it hosts several of the country’s large historic gold camps. According to Fraser Institute’s annual Survey of Mining Companies 2016, Ontario ranked as the sixth best jurisdiction for investment attractiveness in Canada and globally came in 18th place. Here’s a review of four gold projects in Ontario set to start production within the next two years:

1. Clavos

Sage Gold (TSXV: SGX) is eyeing pouring first gold at its 100%-owned Clavos gold deposit in Timmins, Ont., by the end of 2017. Last November, Sage completed an $11.5 million financing package with Cartesian Royalty Holdings (CRH) to further explore and develop the past-producing deposit with an aim of entering commercial production by early 2018.

That financing package included a $1.85 million equity injection and a $9.65 million gold prepayment facility, where CRH could buy 15% of Clavos’ future gold output. Continue Reading →