Houston Gold News » africa

S. Africa’s Zuma squashes mine nationalization talk

admin — Fri, 10 Feb 2012 23:45:57 +0000

President Jacob Zuma squashed more than two years of talk on Friday about the nationalisation of South Africa’s massive mining sector, saying state control or ownership of the mines in the world’s biggest platinum producer could not work.
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S. Africa’s Zuma squashes mine nationalization talk

Nevsun shares plunge 30% after slashing 2012 guidance

admin — Tue, 07 Feb 2012 20:25:04 +0000

Shares in Nevun Resources Ltd. fell off the cliff this morning after the company issued a press release saying its 2012 production estimate from its Bisha copper-gold mine in Eritrea is half of what the mine produced in 2011.

The shares crashed around 30% , the biggest intraday drop since October 2008, after Vancouver-based Nevsun issued production guidance of 190-210,000 ounces, compared to the 379,000 ounces pulled from the mine last year.

Bloomberg reported the company saying its March 2011 estimate of its resources was too optimistic, and it will delay its revision of estimates for the entire project to the second or third quarter from the originally scheduled first quarter.

The company’s shares soared 22% when it reported a copper discovery next to the mine back in October, Bloomberg said.

Nevsun said it is expecting to begin copper production in 2013.

Read my lips: South African Minister announces no mining tax surprises

admin — Mon, 06 Feb 2012 14:00:13 +0000

According to South Africa’s National Planning Minister, Trevor Manuel, the country will not be hitting mining companies with any surprise new taxes. While Manuel hesitated to leave his statements at that, he did hint that there may be adjustments to existing codes on the industry, and reiterated he importance of sensible taxation to extract rent from the industry and direct that investment back into South Africa’s development.

“I don’t think that surprises are good for an industry like this and this is likely to be the trend taken by government in introducing change,” Manuel told delegates at a mining conference in Cape Town.

From a tax perspective, companies traded outside of South Africa can breath a sigh of relief, as there had been rumblings of possible changes coming against their interests. Still on the horizon is the study commissioned by South Africa’s ruling African National Congress on whether or not the country should nationalize its mines. Local media reports have tipped the hand that the study will most likely reject nationalization and come out in favour of higher taxes and royalties, which appears contrary to Manuel’s position. However, Manuel insists that should any tax changes arise, a long-term view will be taken and changes will be implemented slowly, so as not to shock the system.

The timing of the news comes perfectly for Vancouver-based Great Basin Gold (TSX:GBG) (NYSE Amex: GBG), which today released an operational update on its properties, including the Burnstone Mine, 50 miles southeast of Johannesburg, South Africa. A steady increase of recovered gold for the mine showed that the work being done to increase ore development meters by 4%, while decreasing waste development meters per quarter decreased 48% from Q1 2011 effective. The goal, as stated by the company’s latest presentation pegs a targeted production of 254,000 gold ounces, with a mine life of 25 years.

And while there are plenty of notable mining giants in the region, such as Rio Tinto, BHP Billiton and DeBeers, the field contains plenty of other players that can be tracked on North American indices. Outside of gold, other entities include platinum production and rare earth production among other metals worth looking at.

Currently mining platinum group metals, Anooraq Resources (TSX-V:ARQ) (NYSE Amex: ANO) announced last week a restructure, recapitalization and refinancing transaction for its companies aimed at increasing platinum group metal (PGM) production at its Bokoni Platinum Mine. Previously deferred until after 2020, the new structure sees the Mine receive an anticipated boost of needed capital (to the tune of US$325 million) through a new capital development programme designed to add 100,000 PGM ounces per annum by 2016. Through some shuffling and dealing off of its undeveloped properties, Anooraq’s focus shifts primarily to production moving forward unfettered allegedly without major tax shifting coming down the pipe.

Another platinum producer of note to look at in South Africa is Eastern Platinum (TSX-V:ELR), with production at its Crocodile River mine, and another on the way in 2012. So far the company has shown its ability to produce PGMs at a rate of 130,000 oz per annum (in 2010), with significant growth potential to 160,000 ounces per annum planned by 2014.

Based out of Saskatchewan, Great Western Minerals (TSX-V:GWG) (OTCQX:GWMGF) accurately saw the South African government being pro-development and moved forward with its Steenkampskraal Mine in the Western Cape Province of South Africa. Owning 74% of the mine designed for Rare Earth Extraction through the production of monazite. A series of steps taken by GWG were designed to “fast track” the project into launching during the first quarter of 2013, after suitable refurbishment of the historical mine site the new Steenkampskraal design is supplanting. The company reported that it had successfully carried out the first full-scale melt with its newly acquired furnace, with the first pour ceremoniously being undertaken on January 27, 2012.

The news comes with some caveats, but the overall outlook for South African miners is that of relief that no big shocks are on the horizon. The result will be a safer playing field in which to operate, and to hit future targets without a significant fear of nationalization or major tax hits to come.

VantageWire.com

Disclaimer: No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. VantageWire makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the VantageWire only and are subject to change without notice. VantageWire assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. The author of this article does not currently own shares of any of the companies mentioned in this article. Furthermore, VantageWire assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

South Africa is looking at mining super-tax, ‘targetted intervention’ in platinum sector

admin — Sun, 05 Feb 2012 21:38:00 +0000

South Africa’s ruling party, the African National Congress, appears to be moving away from nationalization of the mining industry to reassure foreign investors but is considering other plans to increase state involvement in the sector, particularly with regard to platinum.

According to the New Age paper the ANC report stressed that nationalization would be unaffordable, as the government would need to raise R1 trillion ($125 billion), more than its entire budget, to buy out listed mining companies:

The proposals included a 50% tax on the sale of mining rights to prevent speculation. A windfall tax of up to 50% on super-profits, defined as a return on investment of 22%, was also included. However, the royalty tax would be reduced from four to one percent.

Platinum, a strategic mineral, would be nationalised via “targeted interventions”, while the government would participate in the industry to a much greater extent, the weekly reported.

However, the royalty tax would be reduced from four to 1%.

Firebrand Julius Malema (pictured), the leader of the youth wing of the ANC which often acts as kingmaker in the country’s politics, spearheaded the campaign to seize mines, farms and banks last year.

Malema is never far from headlines in the country with racially charged comments but an anti-corruption police unit is probing his business dealings and last week his suspension from the ANC for “bringing the organization into disrepute” over an unrelated matter was upheld.

A closely watched survey by the Fraser Institute shows South Africa’s appeal for mining investment has declined dramatically since 2006.

In 2006 South Africa was ranked 37th out of 64 countries and territories. The country’s position has declined since then and its 2010 ranking was 67th in an expanded survey of 79 countries and territories.

The mining sector in South Africa contributes 9.6% to GDP and employs 3.1% of the country’s labour force. In 2010 the sector contributed 15.3% of country’s exports.

A Citigroup report in 2010 states of South Africa’s $2,500 billion worth of reserves, $2,300 billion resides in the platinum group metals. In dollar value Guinea, South Africa, India, the Ukraine and Kazakhstan are the countries that under-produce the most in terms of their reserves:

China gold output in 2011 was 360 tonnes

admin — Sun, 05 Feb 2012 10:26:00 +0000

Interfax-China reported that China’s gold bullion output grew by 5.89% in 2011 to reach a record high of 360.96 tonnes up by 20.08 tonnes from the previous year making the country the world’s largest producer for the fifth year running. The China Gold…
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China gold output in 2011 was 360 tonnes

Tougher year for platinum mines

admin — Sat, 04 Feb 2012 19:45:00 +0000

The stresses that have afflicted South Africa’s platinum miners for the best part of a year appear to be coming to a head.
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Tougher year for platinum mines

Cluff Gold expands its mining operations in West Africa

admin — Fri, 03 Feb 2012 13:50:42 +0000

Cluff Gold (TSX:CFG) (AIM:CLF), a gold miner focused mainly in West Africa, announced on Friday that it will buy Orezone Gold’s Sega gold project mining licences and property in Burkina Faso for 11-million shares and $15-million in cash.

Located about 20 km by road from Cluff Gold’s Kalsaka project, the Sega project includes an indicated gold resource of 450,366 ounces and 8.3-million tons of ore at 1.69 g/t, and 147,344 ounces inferred resources in 2.9-million tons of ore at 1.58 g/t.

Cluff Gold said the acquisition would help the company increase the Kalsaka mine life significantly with limited upfront capital expenditure, with detailed metallurgical test work already completed by Orezone, indicating average heap leach recoveries of 85% for oxide and transitional ore, with favourable agglomeration properties.

“A preliminary economic assessment will start immediately to confirm the feasibility of a heap leach operation processing Sega’s oxide and transitional resources, while maintaining a throughput at Cluff Gold’s Kalsaka plant, in line with existing capacity of 1.6-million tons a year,” the company said in a statement.

Cluff Gold will pay Orezone $15 million (c£9.5 million) in cash along with 11 million new Cluff Gold ordinary shares. The company confirmed the acquisition would be financed from Cluff Gold’s existing cash resources. As at 31 December, Cluff Gold had $28.9 million in cash.

Completion of the transaction remains conditional on standard closing conditions, including the approval of the government of Burkina Faso and the approval of the TSX.

“The acquisition enhances the potential for our Burkina Faso operations to continue to provide significant cash flow through the development and early production from our flagship development asset, Baomahun, in Sierra Leone,” said Cluff Gold chief executive Peter Spivey.

According to Orezone’s CEO Ron Little, the transaction adds significant value for both companies and will provide more immediate cash flow for the government of Burkina Faso.

“The sale provides Orezone with a significant nondilutive financing to advance the development of its Bombore gold project, while still allowing the opportunity to participate in the upside at Sega through an equity interest in Cluff Gold,” added Little.

Randgold – Kibali Project in the Starting Blocks

admin — Thu, 02 Feb 2012 15:08:57 +0000

JERSEY, CHANNEL ISLANDS–(Marketwire – Feb 2, 2012) -

Golden Star Resources reboots oxide plant, gains 70,000 ounces production

admin — Wed, 01 Feb 2012 17:35:03 +0000

Originally the Bogoso/Prestea oxide plant in Ghana operated from 1990 to 2008, until it was sidelined due to a lack of an adequate oxide ore supply required to keep the plant afloat. After three years of being put on care and maintenance, Golden Star Resources (TSX:GSC) (AMEX:GSS) announced the re-commissioning of the oxide plant at Bogoso/Prestea, a move that’s expected to generate up to 70,000 ounces of gold in 2012. The anticipated production would bring Golden Star’s total production from 301k ounces in 2011 up to 350k-370k ounces in 2012.

Renovations required on the facility came to the tune of approximately $3 million, with much of the oxide plant being refurbished from the crusher to the carbon treatment and gold room circuits. The first gold pour from the refurbished oxide mill is expected in February 2012.

The lacking supply of non-refractory ore has been essentially replenished with a steady supply coming from further drilling at the Pampe deposit, located 26km west of the Bogoso/Prestea plant. Mining at Pampe recommenced in August of 2011, resulting in a stockpile of non-refractory and transition ore totals over 129,000 tonnes grading approximately 2.2 grams per tonne.

While the supply of non-refractory and transition ore helps feed the mill, one issue still in question is that of a power supply. During recent months, the power supplied by the Ghana government utility has been less than reliable. So far, there have been power interruptions, which are expected to continue throughout the year. And despite adjustments that have been made to allow for such interruptions, there’s no guarantee that these won’t persist throughout the year. Bogoso management will be taking over operation of standby power facilities in mid-February to mitigate the impact of power interruptions.

For both the Bogoso and Golden Star’s other mining operation at Wassa, each mine is on target for production through January. Combined production for the first quarter is expected to reach 79,000 ounces, as the full impact of the oxide mill won’t reflect on production until the second quarter.

Goldrush Encounters Gold Mineralization in RAB Drilling Program on Pompoi Permit, Contiguous With Roxgold’s Yaramoko Project in Burkina Faso

admin — Wed, 01 Feb 2012 16:15:21 +0000

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 1, 2012) - Goldrush Resources Ltd. (TSX VENTURE:GOD)(OTCQX:GDRRF) (“Goldrush” or the “Company”) is pleased to announce the results of a shallow Rotary Air Blast (“RAB”) drilling program on the Company’s Pompoi permit which is contiguous with and to the east of Roxgold Inc.’s (“Roxgold”) Yaramoko permit. The program included 5,433 metres of RAB drilling in 197 shallow holes along two fences oriented to traverse an interpreted east-west gold anomaly located in the southwest quadrant of the Pompoi permit. This anomalous area is 2.9 kilometres east of Roxgold’s recent Bagassi Central “55 Zone” high grade gold discovery.

Drill fence #1 was drilled across the southwest corner of the Pompoi permit in a southeast-northwest direction over a linear distance of 2.08 kilometres. Coverage and testing of the saprolite on this line was approximately 85% with short gaps of from 10 to 55 linear metres and totalling 295 linear metres, occurring where the RAB drill encountered thick laterite gravel and/or the water table. Assays of the drill samples revealed the presence of four, two metre thick mineralized intersections that varied from 0.47 to 7.40 g/t Au. Three of these intersections occurred in laterite gravels and may have been transported an undetermined distance from a bedrock source.

Hole PPRB11-110, the most westernmost hole on drill fence #1, was collared approximately 45 metres from the commonYaramoko-Pompoi property boundary. The intersection of 0.47 g/t Au over 2 metres at a vertical depth of 27 metres in hole PPRB11-110 occurred in quartz veining in granitic saprolite, which is very similar to the host rock setting at the Bagassi Central discovery. The intersection in hole -110 is open in all directions and the orientation of the mineralization is unknown at this time.

Drill fence #2 was drilled over a linear distance of 1.54 kilometres across the southwest corner of the Pompoi permit, subparallel to and approximately one kilometre northeast of drill fence 1. Coverage and testing of the saprolite was limited to approximately 25% with gaps varying from 30 to 760 linear metres and totalling 1180 linear metres, due to the presence of thick laterite gravels, a shallow water table and the dwellings of a native village. As a result, the program did not conclusively test the soil anomaly along this line and an alternative drilling method (air core or RC drilling) may be required in this area.

Hole PPRB11-176 on drill fence #2 intersected 2.3 g/t Au over 2 metres at a vertical depth of 10 metres, this intersection also occurring in granitic saprolite, which is similar to the host rock setting at the Bagassi Central discovery. The intersection in hole -176 is open in all directions and the orientation of the mineralization is unknown at this time.

Commenting on the results of this initial drilling program Len Brownlie, President and CEO of Goldrush, noted: “The initial RAB program on the southwest quadrant of the Pompoi permit has been successful in demonstrating the presence of gold mineralization in a similar setting to that encountered by Roxgold at Bagassi Central. Roxgold’s nearby success, combined with data from regional aeromagnetics and the results of our soil geochemistry and RAB drilling have confirmed that the Pompoi permit contains highly prospective targets that will require near term follow up. Coupled with our recent drilling success at our Ronguen gold deposit and our pipeline of 10 other exploration projects in Burkina Faso, we look forward to a very active and successful 2012 exploration campaign.”

Click here for the full news release