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Resource Clips


Posts tagged ‘Perseus Mining Ltd (PRU)’

Five reasons China is coming to buy your gold mine

August 21st, 2013

by Frik Els | August 21, 2013 | Reprinted by permission of Mining.com

Chinese producers are aggressively looking at picking up gold companies and mines elsewhere as domestic demand reaches record highs.

Takeovers and asset purchases by Hong Kong and mainland miners increased to a record $2.2 billion in 2013 according to data compiled by Bloomberg.

Five reasons China is coming to buy your gold mine

Chinese companies like Zijin Mining Group and Zhaojin Mining Industry Co are in a good position to take a bite out of struggling North American and European-based producers because:

Chinese gold demand is soaring and at 1,000 tonnes will overtake Indian purchases this year, but domestic deposits are less than 5% of the global total.

Targets are cheap—the S&P/TSX Global Gold Index of the globe’s 49 biggest gold companies are down 31% this year alone.

Domestic Chinese producers enjoy some of the lowest cash costs—Zhaojin manages $549 an ounce, compared with a global average of $831.

Chinese and Hong Kong companies have access to cheap capital—Zijin got $4.9 billion in soft loans from a state bank for M&A.

The majors are actively looking to sell as debt levels increase and high-cost mines are mothballed—Barrick Gold TSX:ABX could dump as many as 12 of its mines.

Possible targets include:

While these companies are looking to get rid of a number of mines:

See also: $45bn and counting: China’s foreign mining misadventures

Reprinted by permission of Mining.com

Week in review

December 14th, 2012

A mining and exploration retrospect for December 8 to 14, 2012

by Greg Klein

Next Page 1 | 2

U.S. politicians ponder windfall royalties

The United States has joined the list of countries considering additional ways to mine miners, according to a Wednesday Reuters story. Some American politicians are talking about royalties as high as 12.5%, the same benchmark applied to certain other resources, including oil and gas.

Reuters said the proposal would get about $700 million during the lifespan of Freeport-McMoRan’s copper-molybdenum operations in Colorado, Arizona and New Mexico. Last year alone, the royalty could have taken $150 million from Barrick’s TSX:ABX Goldstrike mine in Nevada, according to Reuters’ figures. Barrick told the news agency the company’s taxes have already jumped four-fold over five years.

Democrat Representative Raul Grijalva, a proponent of the 12.5% levy, sees it differently. “As we face these fiscal challenges, these are the pennies that we should pinch,” Reuters quoted him. Along with some other U.S. federal politicians, Grijalva also wants to review miners’ tax breaks.

Previous attempts to raise miners’ taxes have failed, Reuters stated, “as the industry has strong political allies.” The story added that “state and local governments often catch a windfall from mining revenue.”

Ivory Coast hikes taxes but overestimates profits, miner says

A mining and exploration retrospect

A new tax on Ivory Coast gold extraction underestimates cash costs by nearly 50%, according to at least one source. New legislation that applies to 2012 production assumes cash costs of $615 an ounce, Reuters stated on Friday. The tax on “profits” above that amount will fluctuate with the yellow metal’s price. At $1,600, that comes to 17%. The rate will be lower for companies that pay the country a corporate tax, the news agency added. Randgold Resources CEO Mark Bristow called the new levy, expected to raise $79.8 million, a “punitive tax,” Reuters said.

In a December 7 Bloomberg report, Endeavour Mining TSX:EDV spokesperson Nouho Kone said Ivory Coast gold production can actually cost between $1,000 and $1,200 an ounce. “The worst-case scenario would be to see companies shut down their mines in the short term,” he told Bloomberg. Reuters stated that Perseus Mining TSX:PRU put its $160-million Sissingue project on hold last September “pending clarification of the fiscal regime applicable to the project.”

Maybe Ghana too

Ghanaian President John Dramani Mahama’s re-election brings to mind his previous effort to impose a 10% tax on windfall profits, Monday’s Financial Post reported.

The government had already raised miners’ corporate taxes from 25% to 35% and imposed “a uniform regime for capital allowance of 20% for five years of mining,” the FP stated. But the government’s intended windfall tax had been shelved due to industry pressure, according to a Wednesday Reuters dispatch.

Reuters added that government discussions with gold miners are underway “to loosen up so-called ‘stability agreements’ held by some firms that lock in royalty and tax rates.” This year Ghana raised gold royalties from 3% to 5%, but the stability agreement exempted companies like AngloGold Ashanti and Newmont Mining TSX:NMC, the news agency stated.

Unions lose bid to block foreign workers from staffing B.C. mine

HD Mining International called it a “massive victory,” the Globe and Mail reported Friday. A federal court judge has allowed the company to import Chinese workers for its proposed Murray River coal mine in British Columbia. Two unions had applied for an injunction blocking the work permits after learning that HD Mining planned to staff its underground operation exclusively with Chinese workers—which would total over 400 at full production.

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Perseus reports Ghana Results as high as 9 g/t Gold over 24m

January 16th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPerseus Mining Ltd TSX:PRU announced results from its Edikan Gold Mine in Ghana. Highlights include

9 g/t gold over 24 metres
(including 16.2 g/t over 6 metres)
211 g/t over 1 metre
66.7 g/t over 3 metres
(including 102 g/t over 1 metre)
4 g/t over 34 metres
(including 11.3 g/t over 5 metres)
27.1 g/t over 5 metres
(including 64 g/t over 2 metres)
26.2 g/t over 5 metres
(including 60.1 g/t over 2 metres)

Managing Director Mark Calderwood stated, “An impressive set of results highlighting the potential at Edikan for not only large tonnage but areas of high grade. With samples for 632 drill holes still pending we will be in for a steady flow of results during 2012. This should be a busy year for resource and reserve estimates, starting with the planned March upgrade to Edikan resources and reserves followed by a resource upgrade at our Côte d’Ivoire project planned for June.”

View Company Profile

Contact:
Mark Calderwood
Managing Director
61.8.9240.6344

or Nathan Ryan
61.3.9622.2159

or Rebecca Greco
416.822.6483

by Greg Klein

Perseus reports Ghana Edikan Gold Assays as high as 21.2 g/t over 7.8m

December 1st, 2011

Resource Clips - essential news on junior gold mining and junior silver miningPerseus Mining Limited TSX:PRU announced drill results from its Edikan gold mine in Ghana, West Africa. Highlights include

1.7 g/t gold over 70.8 metres
2.3 g/t over 23 metres
4.5 g/t over 18 metres
2.2 g/t over 25 metres
2.3 g/t over 23 metres
1.4 g/t over 52 metres
1.4 g/t over 31 metres
1.5 g/t over 53.8 metres
1.9 g/t over 51 metres
2.9 g/t over 40 metres
1 g/t over 57 metres
2.3 g/t over 21 metres
4.1 g/t over 39 metres
1 g/t over 43 metres
21.2 g/t over 7.8 metres
15.6 g/t over 10 metres (including 65.7 g/t over 2 metres)
3.1 g/t over 40 metres (including 35.4 g/t over 2 metres)
4.3 g/t over 16 metres
4.9 g/t over 22.7 metres
4.8 g/t over 17.4 metres

Managing Director Mark Calderwood stated, “The recent drilling intercepts from Fetish, Bokitsi and Chirawewa are the final results to be included in the 2011 Edikan Gold Mine resource upgrade which we are planning to release before the end of 2011. The significant backlog of assays results and ongoing drilling will be included in subsequent resource upgrades. Seven drill rigs are currently active in Ghana, including five rigs on continuing resource/reserve drilling plus one RC rig evaluating exploration targets at EGM, and another testing targets on other Perseus tenements in the district. The Esuajah North resource upgrade will be released prior to the 2012 reserve estimation upgrade in the first half of calendar-year 2012.”

View Company Profile

Contact:
Mark Calderwood
Managing Director
+61 8 9240 6344

by Ted Niles

Perseus reports Ghana Gold Assays as high as 2.2 g/t over 53m

April 7th, 2011

Perseus Mining Limited TSX:PRU announced assays from its Central Ashanti Gold Project in Ghana, West Africa. Results include 2.2 g/t gold over 53 metres, 1.9 g/t over 52 metres, 1.8 g/t over 81 metres, 5.1 g/t over 10 metres, 3.3 g/t over 19 metres, 2.8 g/t over 28 metres, 1.4 g/t over 11 metres, 1.8 g/t over 17 metres, 17.5 g/t over 2.3 metres, 5.3 g/t over 8 metres and 6.8 g/t over 4 metres.

Managing Director Mark Calderwood remarked, “The company is well ahead of schedule in its quest to complete 150,000 metres of drilling in Ghana this year, having completed 47,322 metres in the first three months. Over 13,500 metres of this drilling was carried out to sterilize waste dump sites. We expect the slow turnaround for assays to improve during the next couple of months. Drilling at the CAGP is currently focused on growing our gold reserves from 3.3 million ounces to 4 million ounces to allow the option of increasing production rates.”

View Company Profile

Contact:
Mark Calderwood
Managing Director
+61 8 9240 6344

by Ted Niles