Wednesday 13th December 2017

Resource Clips


October, 2013

Gold stocks slaughtered, Barrick drops 10%

October 31st, 2013

by Frik Els | October 31, 2013 | Reprinted by permission of MINING.com

The gold price slid more than $24 or 2% an ounce on October 31 to a week low of $1,323 after the U.S. Federal Reserve signalled it may cut back its stimulus program sooner than thought and Chinese demand for the metal waned.

After a fightback from near three-year lows below $1,200 struck at the end of June, gold’s momentum now seems to have turned negative again with gold stocks sold off heavily on a relatively modest fall in the price of the metal.

By the October 31 close Barrick Gold TSX:ABX had lost 5.9%, after announcing results that were in line with expectations and the suspension of its troubled Pascua Lama project on the border between Chile and Argentina.

The world’s number one miner of the precious metal followed up after hours with more damaging news. The Toronto-based miner announced it is raising $3 billion by issuing 163.5 million common shares at $18.35 per share.

Barrick is now worth $19.4 billion, down 44% so far this year and nowhere near its $54-billion market value a mere two years ago.

Investors duly marked down the stock again with the counter shedding an additional 5.7% to $18.31 in after-hours trade in New York, wiping more than $2 billion off the value of the company on the day.

Barrick is now worth $19.4 billion, down 44% so far this year and nowhere near its $54-billion market value a mere two years ago.

Newmont Mining NYE:NEM, with a market value of $13.5 billion, escaped the worst of it, down 2.8% in regular trading and trading slightly to the upside after hours, after announcing profits up 11% despite a fall in revenue.

Attributable gold production rose 4% to 1.28 million ounces, while attributable copper output decreased 3% to 34 million pounds during the third quarter at the Denver-based company.

The world’s third-largest gold producer behind Newmont, AngloGold Ashanti NYE:AU was one of the worst performers of October 31. The Johannesburg-based company’s ADRs listed in New York slid 6.7% on October 31 and the value of the company has now halved this year.

Fellow South African miner Gold Fields NYE:GFI, the worst performer among the gold majors this year, gave up 4.4% in New York. The world’s fourth-largest gold producer has had its value slashed 63% in 2013, with investors punishing it for its contrarian purchase of high-cost mines amid the slump.

Goldcorp TSX:G, expected to produce around 2.5 million ounces of gold this year, declined 3.9%. The Vancouver-based company retained the top spot as the most valuable gold stock, with a Toronto big board market capitalization of $21.6 billion.

Toronto’s Kinross Gold TSX:K managed to hold above a $6-billion value despite losing 5.3% on the day. Investors in the company are nursing a $5-billion loss in market cap this year after Kinross, like all the majors, took multi-billion charges against the value of its operations.

Canada’s second-tier gold miners also suffered a loss of confidence from gold investors, giving up much of the gains of recent weeks.

Yamana Gold TSX:YRI skid 3.4%, Agnico Eagle Mines’ TSX:AEM losses were fairly modest at 2.5% while Eldorado Gold TSX:ELD declined 5.1% and IAMGOLD TSX:IMG dropped 5.3%.

Reprinted by permission of MINING.com

Mexico mining tax approved, but hits political roadblock

October 31st, 2013

by Cecilia Jamasmie | October 31, 2013 | Reprinted by permission of MINING.com

Mexico mining tax approved, but hits political roadblock

Despite tensions in the senate, the tax package is expected to be finalized October 31.

 

Mexico’s senate approved by 73 votes to 50 the broad outline of a package of tax reforms, which included a debated 7.5% charge on resource companies and as much as 8% for gold, silver and platinum.

The lawmakers, however, decided to set aside scores of divisive sections to be processed later.

Members of the National Action Party (PAN), the main opposition party, expressed their discontent with the decision by abandoning the session as the senate began to work through the reservations, reports CNN Mexico.

They claim the taxes will see investment in the country’s mining sector drop off dramatically, with major companies such as Canada’s Goldcorp TSX:G and Grupo Mexico warning they may need to take their money somewhere else.

Despite the senate tensions, the tax package was expected to be finalized later October 30 or at some point October 31. Following senate approval the reforms only need to be enacted by President Enrique Peña Nieto to become law.

About 334,000 people work in Mexico’s mining sector and more than two million are indirectly employed by it, which makes it the country’s fourth-largest industry in dollar income, only behind cars, oil and electronics.

Reprinted by permission of MINING.com

October 31st, 2013

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Zijin’s avant-garde

October 30th, 2013

Equitas Resources finds an undrilled copper-gold prospect close to home

by Greg Klein

Next Page 1 | 2

The search for copper-gold porphyry potential takes some companies far and wide. So Equitas Resources TSXV:EQT sees an additional advantage to its newly acquired Nahmint property. Within easy reach of the company’s Vancouver headquarters, “we could go visit the project this afternoon if we wanted,” says Equitas president/CEO Jay Roberge. Located 25 kilometres from Port Alberni on southern Vancouver Island, the 9,552-hectare property has five past-producing mines, road and water access, nearby power, positive local response and a solid foundation of recent work. What really intrigues Roberge, however, is that Nahmint has yet to be diamond drilled. “We don’t know of any drilling of any sort.”

That’s the kind of early-stage opportunity Equitas looks for, he says. The company’s goal, should assays prove fruitful, would be to escalate shareholder value with a new discovery. That strategy has drawn the immensely deep-pocketed interest of Zijin Mining Group, China’s biggest gold and second-biggest copper producer. Listed on the Hong Kong and Shanghai exchanges, the giant holds about 19.9% of Equitas.

Equitas Resources finds an undrilled copper-gold prospect close to home

Boots on the ground: Paul Carpenter, Jacques Houle, Michelle Ickringill and Brant Protasiewich completed Equitas’ October program at Nahmint.

The company considered over a hundred other properties before deciding on Nahmint. And if there’s a silver lining to the downturn, it’s the relatively low price of this acquisition.

Nahmint produced copper, silver and gold for 10 years up to 1918. Work since 2006 has included extensive soil and rock sampling as well as 1,079 line kilometres of aeromagnetic surveys. As of October 30 Equitas wrapped up its own initial field work on the property’s Three Jays North target, near one of the former underground mines. That program produced another 303 soil samples, 35 rock samples and six stream moss mat samples for lab analysis. Results are expected by late November.

Specifically the soil sampling and mapping found elongate zones of silicified, sulphidic mafic volcanics containing stockwork and disseminated fine-grained sulphides including pyrite, chalcopyrite and bornite.

Soon to begin is a satellite survey of the entire property, using remote sensing and geospatial technology to complement all the data compiled so far. Those results are expected within weeks. Slated for December or early 2014 is an NI 43-101 report.

The previous aeromagnetic survey shows an anomaly at Three Jays. “What’s really exciting about that is the anomaly down-dips to the south at about 80 degrees,” explains Roberge. “The mine shaft down-dips to the south at 80 degrees too, but they were a few hundred metres south of the anomaly itself. Then when they got to the bottom they started putting in horizontal workings towards the north, perhaps thinking they would find a new layer. We believe Three Jays could be a porphyry system with overlying high-grade skarn and that’s going to be the initial focus.”

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Venture Capital Markets Association co-founder Don Mosher says IIROC inhibits juniors’ efforts to raise money

October 30th, 2013

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Cameco’s profit up 324%, Cigar Lake mine to begin production in Q1 2014

October 30th, 2013

by Cecilia Jamasmie | October 30, 2013 | Reprinted by permission of MINING.com

Shares of Cameco Corp TSX:CCO were up close to 6% in Canada and the U.S. as the uranium miner’s third quarter earnings came in far ahead of expectations, thanks to strong uranium sales volumes and prices, and decreasing production costs.

The Saskatoon, Saskatchewan-based company earned $211 million or 53 cents per share in the three months ending September 30, up from $79 million or 20 cents per share a year earlier, Cameco Corp TSX:CCO said Wednesday.

Uranium production in the quarter totalled 5.8 million pounds, up from 5.3 million pounds a year ago, while sales amounted to 8.5 million pounds, up from 5.2 million in the same quarter last year.

Cameco’s profit up 324%, Cigar Lake mine to begin production in Q1 2014

Cameco’s average realized price increased to $52.59 per pound, up from $45.77 a year ago, while its average cost slipped to $26.19 per pound compared with $28.85 a year ago.

Despite uranium prices being 30% lower in the quarter, at $37.45 a pound, the giant producer of the yellow commodity said it was able to lock in a higher price under previous orders with its customers.

The company also reiterated that its Cigar Lake project in Saskatchewan, a joint venture with France’s AREVA and two other partners, should definitely begin production in the first quarter of 2014, with the mill starting to process ore from the mine by the end of the second quarter.

Reprinted by permission of MINING.com

October 30th, 2013

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AREVA hostages freed after three years

October 29th, 2013

by Greg Klein | October 29, 2013

AREVA hostages freed after three years in custody

AREVA operates two open pit mines in Niger, the world’s fourth-largest uranium producer.

Kidnappers have released four AREVA employees after holding them hostage for more than three years, the French government announced October 29. Al Qaeda-linked terrorists abducted the group in September 2010 from their residence in Arlit, Niger, where they worked at the uranium giant’s Somair mine. French President Francois Hollande credited their release to the president of Niger, Reuters stated.

The men, Daniel Larribe, Marc Féret, Thierry Dol and Pierre Legrand, were said to be in good health and en route to Niamey in southwestern Niger.

Somair resumed full production in August after a May 23 terrorist attack killed one employee and injured at least 14 others. AREVA’s two Niger mines produce 7.5% of global production, according to the World Nuclear Association.

The Niger operations are held 63.6% by AREVA and 36.4% by a state agency. The French government holds a majority stake in AREVA.

October 29th, 2013

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B.C. Minister of Energy and Mines Bill Bennett rationalizes his government’s support for HD Mining’s hiring policy

October 28th, 2013

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