Houston Gold News

Miner in China rescued after 17 days underground

admin — Sat, 19 May 2012 16:55:00 +0000

A coal mine in northeast China floods May 2 A miner is rescued Saturday after 17 days underground A total of 10 miners died in the flood Ten more escaped, five were rescued and a search continues for three missing Beijing (CNN) — A miner in northeast…
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Miner in China rescued after 17 days underground

Queensland scraps coal terminal expansion: report

admin — Sat, 19 May 2012 13:51:00 +0000

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Queensland scraps coal terminal expansion: report

First Nickel closes a US$10 million loan facility with the Bank of Nova Scotia

admin — Sat, 19 May 2012 11:00:00 +0000

TORONTO, ONTARIO–(Marketwire – May 18, 2012) - First Nickel Inc. (“First Nickel”, “FNI” or the “Company”) (TSX:FNI) is pleased to announce that it has entered into a US$10 million revolving credit facility with The Bank of Nova Scotia (“BNS facility”) with an initial 2 year term. Funds from the BNS facility will be used to finance working capital requirements for the Lockerby mine and for general corporate purposes.

FNI is also pleased to announce that it has freed up capital tied to its Lockerby mine closure plan, replacing a letter of credit with a surety bond. The bond guarantees the full cost of the $5.9 million closure plan with the Company posting $2.4 million as cash security in support of the bond. The letter of credit had previously been secured by a $5.9 million restricted term deposit which is now fully available for the Company’s use.

“These two transactions further strengthen our balance sheet providing $13.5 million of additional liquidity,” said Steven Cresswell, Vice President and Chief Financial Officer.

About First Nickel Inc.

First Nickel is a Canadian mining and exploration company. The Company’s mission is to be the most dynamic North American emerging base metal mining company in which to work and invest and to be respected in the communities in which we operate. FNI is in the process of ramping up production at its Lockerby nickel / copper mine in the Sudbury Basin in northern Ontario. Once the Lockerby Mine reaches full production (expected by end of 2012), it is expected to produce at a rate of approximately 10 million pounds of nickel and approximately 7 million pounds of copper annually, providing a strong base of cash flow from which to grow the Company. In addition to the Lockerby nickel mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario, and the Belmont region of Eastern Ontario. First Nickel’s shares are traded on the TSX under the symbol FNI.

Cautionary Statement Regarding Forward-Looking Information

Certain statements contained in this news release may contain forward-looking information about First Nickel. Forward-looking information can often be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “budget”, “forecast”, “estimate”, “schedule”, “expect”, “goal”, “intend”, “target”, “potential”, “objective”, “may”, “plan” or “will” or the negative thereof or variations thereon or similar terminology. Forward-looking information may include, but is not limited to: the resumption of operations at Lockerby mine and the continued operation thereof; availability of financing in the future; future financial or operating performance of the Company and its projects; the future price of metals; the long term supply and demand for nickel; continuation of exploration activities; mineral reserve and mineral resource estimates; the realization of mineral resource estimates; costs of production and key supplies; capital, operating and exploration expenditures; forecasts of sales and production; costs and timing of the development of new and existing deposits; costs and timing of future exploration; the requirements for additional capital; government regulation of mining operations; environmental risks, reclamation expenses and/or title disputes or claims.

By its nature, forward-looking information is based on certain factors and assumptions which involve known and unknown risks, uncertainties and other factors which may cause the actual results, realization of mineral resources, performance or achievements of the Company, financial position or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Accordingly, actual events may differ materially from those implied by any forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speak only as of the date the statements were made and readers are also advised to consider such forward-looking information while considering the risk factors set forth in the management’s discussion and analysis for the year ended December 31, 2011 under the heading “Risks and Uncertainties” and under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2011. The Company disclaims any intention or obligation to publicly update or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

An argument for a contrarian investment

admin — Sat, 19 May 2012 10:01:24 +0000

While it might not look like it now, the most investable trend over the next 20 years is going to be in the resource sector, the renewable and non-renewable resources, the minerals, ores, fossil fuels and biomass a wealthier and growing global population is increasingly demanding from finite supplies and already strained production capabilities.

Renewable and Non-renewable Resources

We have crossed a critical threshold. The demand we are now placing on our planets resources appears to have begun to outpace the rate at which they can be supplied.

The gap between human demand on our planet’s renewable resources and the supply of those resources is known as ecological overshoot. To better understand the concept think of your bank account – in it you have $5000.00 paying monthly interest. Month after month you take the interest plus $100. That $100 is your financial, or for our purposes, your ecological overshoot and its withdrawal is obviously unsustainable.

The human enterprise now consumes nearly 60 billion metric tons of the world’s four key resources – minerals, ores, fossil fuels and biomass (plant materials) – per year.

Developed countries citizens consume an average of 16 tons of those four key resources per capita (ranging up to 40 or more tons per person in some developed countries).

Royal Gold’s Management Presents at Bank of America Merrill Lynch Global Metals, Mining & Steel Conference (Transcript)

admin — Sat, 19 May 2012 00:42:09 +0000

[at Seeking Alpha] – Royal Gold’s Management Presents at Bank of America Merrill Lynch Global Metals, Mining & Steel Conference (Transcript)
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Royal Gold’s Management Presents at Bank of America Merrill Lynch Global Metals, Mining & Steel Conference (Transcript)

Golden Dory ups stake in Labrador iron deposit

admin — Fri, 18 May 2012 22:58:25 +0000

Golden Dory Resources says it is increasing its stake in the Gabbro Lake iron ore deposit in Canada’s Labrador Trough.

The primarily gold-focused company with projects in Newfoundland and Nevada, said it is upping its stake in Gabbro Lake to 70% from the 50-50 partnership it currently shares with Metals Creek Resources Corp.

Under the JV agreement, Golden Dory (TSX-V:GDR) can earn a 60% interest in the property by issuing 1.5 million shares to Metals Creek, and an additional 10% by issuing another 2.5 million shares. Golden Dory is a penny stock, trading at 3.5 cents on Friday, with a tiny market cap of $2.7 million. The company would also have to complete certain milestones, including a minimum of 1200m of drilling and completing an NI 43-101 resource estimate by the fourth anniversary of the agreement.

Golden Dory says its deposit is comparable in size and composition to Alderon Iron Ore’s Kami deposit also located in the Labrador Trough:

“The defined geophysical signatures at Gabbro Lake are very similar in size and in strength of magnetic signatures with those associated with Alderon’s Kami project which hosts NI 43-101 compliant resources of 490 Mt @ 30% Fe indicated, and 598 Mt @ 30.3% Fe inferred (Alderon Iron Ore Corp. website). In terms of overall project size, the Gabbro Lake property is approximately 20% larger than Alderon’s Kami project, consisting of 9275 hectares versus 7625 hectares for Kami.”

Read the full news release below:

TSX.V-GDR

GANDER, NEWFOUNDLAND – May 16, 2012

Golden Dory Resources Corp. (“Golden Dory”) is pleased to announce that it has reached an agreement, subject to Venture Exchange approval, with Joint Venture partner Metals Creek Resources Corp. (TSX.V- MEK) whereby Golden Dory can earn up to a 70% interest in the Gabbro Lake Iron Ore property in the prolific Labrador Trough. Currently the project is operated under a 50/50 joint venture between Golden Dory and Metals Creek with Metals Creek as project operator.

The Gabbro Lake project is strategically located in the eastern portion of the Labrador Trough, 50 km east of the rail line servicing the Schefferville and Labrador City mining camps and 8 km from an all-weather access road. The project is host to at least four discreet airborne magnetic targets up to 3.8 km in length and locally 500 m in width. Within the Gabbro Lake property, the magnetic data defines the targets as a structurally folded and faulted iron formation and shows a number of areas that may be thickened by the structural complexity. Prior to this joint venture, no one is known to have carried out any previous exploration on these iron formation prospects.

So far, four main target areas, Anomalies A to D, have been identified at Gabbro Lake with the most significant highlighted below, of which B & D are the first priority targets:

Anomaly A – 1.4 km long; surface sampling returning 33.77% Fe2O3 (1 sample);

Anomaly B – 3.8 km long; surface sampling returning from 46.06% Fe2O3 to 58.36% Fe2O3 (4 samples);

Anomaly C – 1.2 km long; no surface sampling to date;

Anomaly D – 1.6 km long; surface sampling returning from 27.98% Fe2O3 to 75.38% Fe2O3 (14 samples)

A total of 34 representative grab samples collected by Golden Dory and Metals Creek from outcrop and float returned assays ranging from 11.42% up to 75.38% Fe2O3. Approximately 79% of the samples measured greater than 25% Fe2O3 including 62% of the samples over 40% Fe2O3. The iron formation samples were analyzed for Fe2O3 and other major oxides by XRF Fusion at Activation Laboratories in Ancaster, Ontario. The Company is also completing Davis Tube analytical work on a series of samples which will be reported when they become available.

At this early stage, the Gabbro Lake property compares favourably with the advanced Kami Project owned by Alderon Iron Ore Corp., located 100 km to the southwest of Gabbro Lake. The defined geophysical signatures at Gabbro Lake are very similar in size and in strength of magnetic signatures with those associated with Alderon’s Kami project which hosts NI 43-101 compliant resources of 490 Mt @ 30% Fe indicated, and 598 Mt @ 30.3% Fe inferred (Alderon Iron Ore Corp. website). In terms of overall project size, the Gabbro Lake property is approximately 20% larger than Alderon’s Kami project, consisting of 9275 hectares versus 7625 hectares for Kami.

A proposed 1,200m Phase 1 diamond drilling program is planned for, immediately following spring breakup which is expected to be late June. Diamond drilling and support services contracts are expected to be awarded shortly. The Company is in its final stages of receiving required exploration approvals while an archeological assessment is currently underway.

The JV Agreement

Under the joint venture agreement, subject to TSX Venture approval, Golden Dory will become operator and can earn an initial 60% interest by issuing 1.5 million shares of Golden Dory to Metals Creek and by funding the 2012 Exploration Program which will include a minimum of 1,200 m of diamond drilling. Golden Dory can earn an additional 10% (70% aggregate interest) by issuing an additional 2.5 million shares to Metals Creek and by providing a NI 43-101 compliant resource report by the fourth anniversary of the agreement.

Kevin Keats, President and CEO of Golden Dory states; “We are very excited about this opportunity we have in one of the leading Iron Ore districts of the world. The project size, as well as the number and quality of targets compare very favourably with other significant developments in the district including the Kami Project owned by Alderon Iron Ore Corp. The Gabbro Lake project gives Golden Dory an excellent entry point into a proven jurisdiction and we are currently preparing for the first drilling to ever take place on the property.”

About Golden Dory

Golden Dory Resources Corp. (TSX.V-GDR) has several mineral projects in its portfolio. Gold exploration at the Huxter Lane-Brady Project in Newfoundland & Labrador, Canada; the Long Canyon (Pequop South), and Reef properties in the state of Nevada, USA. The Company is also seeking partners on its earlier stage gold, uranium and high grade base metal properties in Newfoundland, and its lithium/rare metals projects in Ontario. In 2012, the Company is taking over as operator of the Gabbro Lake Joint Venture (up to 70% interest) in the iron-rich Labrador Trough of Newfoundland.

This news release has been reviewed and approved by Timothy Froude, P. Geo., a “Qualified Person” under National Instrument 43-101. For further information, please contact Kevin D. Keats, President and CEO of Golden Dory at (709) 256-4201, or Stephanie Fitzgerald at CHF Investor Relations at (416) 868-1079.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Investors are cautioned that trading in the securities of the Company should be considered highly speculative. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Golden Dory will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Golden Dory which can be viewed at www.sedar.com .

(Not for dissemination in the United States of America)

Big bullion bounceback

admin — Fri, 18 May 2012 22:45:00 +0000

Spot gold jumped just over 1% or $16 an ounce on Friday bringing its two-day gains to almost $50 an ounce.

Gold ended the week at $1,590.80, recovering from an intra-day low Wednesday of $1,528 as investors sold the precious metal to cover losses elsewhere.

That level briefly signaled a bear market with the precious metal 20% below the record of $1,913 hit on August 23 last year.

The sharp turnaround in sentiment in the bullion market has some asking whether the rally is a dead cat bounce or perhaps the best chance to buy before prices rocket.

Gold bulls say a new round of monetary easing in the US – a distinct possibility – and possible similar programs in the crisis-ridden Eurozone will restore the yellow metal’s status as an inflation hedge and wealth preserver.

Flooding markets with cheap money would also hurt the dollar, further boosting the metal’s price.

Pebble Mine would damage water, fish habitat: EPA

admin — Fri, 18 May 2012 21:39:39 +0000

A report released today by the US EPA does not paint a favourable picture of the proposed Pebble Mine in Alaska.

The report, titled “An Assessment of Potential Mining Impacts on Salmon Ecosystems on Bristol Bay, Alaska”, says the Pebble Mine, a huge copper-gold deposit being shepherded through a 50-50 partnership between Anglo American and Northern Dynasty Minerals, would have significant impacts on fish populations and streams surrounding the mine site, located near Bristol Bay.

The study looked at the potential impacts of large-scale mining in the Bristol Bay and two other river watersheds, considering a potential open-pit mine producing 2-6.5 billion tonnes of ore and a 139-km transportation corridor:

Based on this mine scenario, we conclude that, at a minimum, mining at this scale would cause the loss of spawning and rearing habitat for multiple species of anadromous and resident fish. A mine footprint of this scale would likely result in the direct loss of 87.5 to 141.4 km of streams and 10.2 to 17.3 km2 of wetlands.

The report abstract notes that even if mining did not result in any accidents or failures, the mine “would result in significant impacts on fish populations in streams surrounding the mine site.” Accidents or failures could include the release of contaminants or the catastrophic failure of a tailings dam.

The release of the report coincides with an announcement this week by Northern Dynasty stating that the Pebble Partnership is planning to spend $107 million to advance the mine in 2012, with the objective of achieving permitting by the end of this year.

The Pebble Mine is one of the largest undeveloped polymetallic mineral deposits left in the world.

According to a project website, the deposit hosts 55 billion pounds of copper, 76 million ounces of gold, 3.3 billion pounds of molybdenum, and quantities of silver, palladium and rhenium. Comparing the world’s undeveloped gold deposits, Pebble ranks no. 1, dwarfing even Rio Tinto’s Oyu Tolgoi project in Mongolia, which is ranked fourth at just over 40 million gold ounces.

So far the Pebble Partnership has invested about $500 million into the project, including about $150 million on studies.

The size of the proposed mine and its location near salmon-bearing streams has attracted considerable controversy and opposition from some quarters.

Last November, 81% of the Bristol Bay Native Corporation — the largest private landholder in southwest Alaska — rejected the mine on the basis that it will “unavoidably put at risk the ‘fisheries and our Native way of life.”

A month earlier, voters in the Lake and Peninsula Borough narrowly supported (by 34 votes) a ballot measure put forward by anti-Pebble activists that would restrict future development that affects more than one square mile of land within the 31,000 square mile borough.

The ordinance, however, is being challenged in court by the State of Alaska which argues that it seeks to undermine state authority over large-scale resource development.

China’s rare earth quotas are a joke. 74% of oxides never left port this year

admin — Fri, 18 May 2012 21:00:39 +0000

Chinese authorities have added 10,680 tonnes to the country’s export allowance on the top of the 10,546 tonnes it had already allocated to 11 state-sanctioned miners this year.

It is something of a meaningless exercise because during the first quarter China only exported about 2,770 tonnes of rare-earth oxides – 26.3% of the initial quota according to customs data.

Compared to last year that is a 70% drop in demand. The Australian quotes Du Shuaibing of Baichuan, a Beijing rare earth consultancy: “The global market has adopted a cautious, wait-and-see attitude in rare-earth procurement, resulting in weakness upstream and downstream.”

China mines roughly 95% of the world’s rare earths and is also the globe’s top consumer. It said at the start of the year that it will keep the allocation for the entire year at just over 30,000 tonnes.

The country’s export restriction on rare earths is currently before the World Trade Organization after the EU, Japan and the US complained, but what promised to be a precedent-setting case about trade with China now looks more like a damp squib.

This has not stopped lawmakers in the US from viewing rare earths – employed in critical components of the automotive, high tech, green energy and defence industries – as a national security issue and the industry worthy of special treatment.

Some have even called into question an official report from the Pentagon that showed that even at the height of China’s clampdown US defence contractors never faced a shortage of rare earths.

The slump in prices of REEs is as dramatic as the decline in volumes. Some more abundant rare earth elements such as lanthanum have crashed by more than 70%. While heavy and scarcer REEs such as dysprosium have generally held up better, many have also experienced price declines of 50% or more.

The changing marketplace has also led to a brutal beating of Molycorp, which was once the world’s top supplier of REEs and is now restarting mining and processing.

The Colorado company is destined to become the number one producer of the 17 elements outside China, but the rapidly changing economics of the industry has seen its stock decline 20% this week and 74% since May last year.

Read >> Rare earthquake: May last year Molycorp investors were $5.5 billion richer

Read >> Benign neglect: Black Ops II, Obama and Molycorp

Read >> We need to talk about how rare earth prices are imploding

Graff Diamonds IPO should catapult the diamond king up the billionaires list

admin — Fri, 18 May 2012 20:58:27 +0000

Founder and controlling shareholder Laurence Graff, the undisputed king of uber-expensive diamonds, will earn a tidy $290 million windfall when he restructures his Mayfair-based company and will massively boost his paper wealth when Graff Diamonds lists in Hong Kong.

Graff Diamonds is kicking off a roadshow on Monday and will market the shares at $3.20 to $4.70 to raise $1 billion. It should afford the high end jewelry producer and retailer a market value of $3 billion to $4 billion.

Graff has about 20 stores worldwide, owns the majority of the cutter and polisher South African Diamond Corporation and also has a stake in Gem Diamonds, which operates the Letšeng mine in Lesotho.

Letseng produces some of the world’s largest diamonds including the 603-carat Lesotho Promise which Graff made into a necklace of 26 stones that is valued at more than $60 million.

FT.com (sub required) reports Graff is reliant on a small number of buyers – its top client last year bought a single item worth $100 million when total annual revenue was $756 million – and has to carry a massive inventory:

Graff specialises in sourcing some of the biggest and most expensive stones in the world and identifying the people who are willing to buy them. It has an inventory worth almost $900m at cost, of which 50 per cent are individual stones or items of jewellery containing stones of 10 carats or more.

The company only revalues individual pieces at their point of sale and analysts at Credit Suisse have estimated that the inventory could ultimately be worth $2.5bn-$3bn, which would approach the market capitalisation of Graff itself.

Besides jewelry Graff he owns a wine estate and hotel near Cape Town South Africa, a valuable modern and contemporary art collection and the obligatory super-yacht.

CNBC profiled Graff, who grew up in the working class neighbourhood of East London and dropped out of school at age 14 to become a jeweler’s apprentice, in June last year:

Graff, now in his eighth decade, is circumspect about the future. His son François, 47, works for him in London. But two years ago, a potentially smooth family transition seemed at risk. Mr. Graff and his wife of 47 years, Anne Marie, were set to divorce after Mr. Graff fathered a child with a woman who had worked for him. The London tabloids screamed that it would be the largest divorce settlement in British history.

At the last minute, the couple reconciled. And Mr. Graff is open in recognizing his daughter.

Graff not only deals in rough stones. The accompanying image (courtesy of Christie’s auction house) is of the Wittelsbach diamond which was bought by Graff in 2008 for $24.3 million.

The 35.56-ct. Wittelsbach diamond was once owned by King Philip IV of Spain, who purchased it for his daughter, Margarita Teresa (in the background) for her engagement to Leopold I of Austria in 1664. It was mined in India and owned by the same private collector since 1964.

In a controversial move, Graff recut the diamond to remove imperfections, prompting criticism that he had essentially painted over a Rembrandt. The Wittelsbach Graff sold last year for an undisclosed amount.

The Graff family fortune is put at roughly $2.6 billion according to Forbes, which places Laurence Graff outside the top 40 of the 2012 mining billionaires list.

After the IPO he is likely to join two other diamond billionaires in the top ranks.

Number 21, Nicky Oppenheimer of De Beers is in charge of a family fortune estimated at $6.8 billion while Beny Steinmetz’s diamond businesses supply him with a net worth of $5.9 billion. Controversial Angola-focused diamond miner Lev Leviev sits at #61 on the list .

Click here for profiles of the world of mining’s 40 richest people >>