The S&P five-week rally – based on better-than-expected U.S. data – along with rallies in other indices took a breather. The S&P 500 was down 3.36 points (-0.25%), the Dow Jones Industrial Average was down 46.36 points (-0.3%), and the Nasdaq Composite Index was down 7.92 points (-0.27%).

Gold ($1,723.10) and silver ($33.61) prices suffered a small setback as a result of some profit -taking after putting on a good show for the last few weeks.

Yukon-Nevada Gold Corp (TSX: YNG.TO 0.3450 +13.11%) announced that it has restarted production at its wholly-owned Jerritt Canyon gold operation in Nevada. Gold production is going to ramp up from 9,000 oz per day in February to 12,500 oz gold per day in March.

Harmony Gold Mining’s (NYSE: HMY 12.65 +1.61%) stock moved up after the company released its second quarter financials. The company generated its highest-ever profits and increased gold production by 5% quarter on quarter at 344,592 oz by increasing the recovery grades by 13% and reducing cash operating costs by 6%.

Rangold Resources Ltd’s (NASDAQ: GOLD  118.54 +1.94%) stock also went up as a result of reporting a 259% increase in profit to $433.4 million for the 2011 year and a proposal to double their annual dividend to $0.40 per share.

The most active gold and silver producers were Barrick Gold Corp. (NYSE: ABX  49.04 -0.06%), Newmont Mining Corp. (NYSE: NEM 60.54 -0.77%) and Goldcorp Inc. (NYSE: GG 47.85 +0.50%).

This morning’s gainers also included Mines Management Inc. (AMEX: MGN 2.16 +3.85%) and Solitario Exploration & Royalty Corp.  (AMEX: XPL  1.72 +2.38%). The juniors were riding positive press releases related to, in the case of MGM, acquiring a gold-silver property in Peru, and positive drill results for  XPL.

Platinum Group Metals Ltd (AMEX: PLG 1.20 +2.56%) shares bounced up as a result of announcing the discovery of high-grade platinum group metals reefs at its South African Waterberg project.

Mountain Province Diamonds Inc.’s (AMEX: MDM 4.47 -4.08%) stock experienced a morning decline on some profit taking. The stock is still 9% higher than before announcing the proposed spin-off of their Kennady North diamond project located in Northwest Territories, Canada.

Junior explorers intending to do business down in Mexico as well as investors that want to assess the country’s  risks should consult the new ARCIS International’s Mexico Monthly Review.

]]> http://www.houstongoldnews.com/gold/yukon-nevada-gold-rallies-after-restarting-jerritt-monday-market-roundup/feed/ 0 http://www.houstongoldnews.com/gold/wits-gold-together-with-pan-african-resources-to-acquire-the-operating-evander-gold-mine-from-harmony-for-zar1-7-billion/ http://www.houstongoldnews.com/gold/wits-gold-together-with-pan-african-resources-to-acquire-the-operating-evander-gold-mine-from-harmony-for-zar1-7-billion/#comments Mon, 30 Jan 2012 14:46:00 +0000 admin http://www.houstongoldnews.com/uncategorized/wits-gold-together-with-pan-african-resources-to-acquire-the-operating-evander-gold-mine-from-harmony-for-zar1-7-billion/ JOHANNESBURG, Jan. 30, 2012 /CNW/ – Witwatersrand Consolidated Gold Resources Limited (‘Wits Gold’) and Pan African Resources plc (‘Pan African’), collectively the ‘Consortium’ announced today that they have entered into an agreement with Harmony Gold Mining Company Limited (‘Harmony’) to acquire 100% of Harmony’s interest in Evander Gold Mines Limited (‘Evander’), in a 50/50 joint venture, for a total Transaction consideration of ZAR1.7 billion (C$210 million ¹) less any distributions made by Evander to Harmony prior to the closing date of the Transaction.

The Transaction represents an attractive value proposition to the Consortium and will provide Wits Gold with an immediate increase in attributable gold resources and reserves. Undertaking this Transaction as a Consortium has created the opportunity for Wits Gold to bid for a better quality asset, at a lower risk and financial exposure to the company.

Located in a sub-basin outside the main Witwatersrand Basin in South Africa, the Evander gold field has historically produced in excess of 48Moz of gold at an average grade of 7g/t. Well known to both management teams, the mine comprises, amongst others the operating 8 shaft, three development projects (Evander South, Rolspruit and Poplar), the Kinross metallurgical plant and the Libra surface tailings project. The mine was recently returned to profitability with production of 27,500 ounces at a cash cost of ZAR208,597/kg (US$909/oz) in the latest quarterly figures reported by Harmony.

The board of directors of Wits Gold believes that the Transaction further represents an opportunity for Wits Gold to move from an exploration specialist to an emerging mid-tier gold producer, with related cash flows. The Transaction represents the first step into delivering into Wits Gold’s new strategy with this move to producer status, while the cash generated may be utilised to fund part of Wits Gold’s advanced development projects. The purchase consideration of ZAR1.7 billion (C$210 million)¹, less any distributions made by Evander to Harmony between 1 April 2012 and the closing date of the Transaction (“Closing Date”) by way of dividends, capital reduction or share repurchases, will be payable as follows:

• ZAR1.4 billion (C$181 million)¹ less certain distributions, in cash on the Closing Date of the Transaction;
• Four cash payments of ZAR25 million (C$3.2 million)¹ each, payable quarterly and commencing three months after the Closing Date, amounting to a total of ZAR100 million;
• A further ZAR100 million (C$12.9 million)¹ payable 19 months after Closing Date, provided the average rand gold price exceeds ZAR410,000 per kg* over the 12 preceding months. This payment can be made in either cash or shares (or a combination of both) at the election of the Consortium and should the Consortium elect to make payment wholly or partially in shares, each of Pan African and Wits Gold will issue shares to Harmony in equal value proportions; and
• ZAR100 million (C$12.9 million)¹ payable 31 months after Closing Date, provided the average rand gold price exceeds ZAR450,000 per kg* during the preceding 12 months. This payment can be made in either cash or shares (or a combination of both) at the election of the Consortium and should the Consortium elect to make payment wholly or partially in shares, each of Pan African and Wits Gold will issue shares to Harmony in equal value proportions.

* No payment will be due if the average gold price for the period was not achieved

The individual Consortium members intend utilising a combination of debt, equity and operational cash flows to settle the Transaction consideration. The Consortium will benefit from Pan African’s specialist operational skill set and from Wits Gold’s specialist exploration expertise, as well as the mining experience of both companies’ Chief Executive Officers. The Consortium will jointly control and manage the operations through a steering committee with equal representation from both companies.

Philip Kotze, CEO of Wits Gold commented: “This Transaction allows Wits Gold to become a producer overnight and the cash generated from this operation will be utilised to partly fund our growth projects. Forming a partnership with Pan African has enabled both companies to make an offer for a better quality operating asset with significant upside potential. We look forward to working together with our partners to provide the best value for all our shareholders”.

Please refer to the detailed SENS announcements released by each of the companies earlier today for further details of the Transaction.

1. Exchange rates quoted as at close of business 27 January 2012 of   C$1.00:ZAR7.74
2. Reserves and Resources quoted from Harmony 2011 Annual Report which is SAMREC and JORC compliant.

Johannesburg
30 January 2012

JSE Sponsor to Wits Gold Limited PricewaterhouseCoopers Corporate Finance (Pty) Limited

NOTES:

About Pan African

Pan African is a South African based precious metals mining group that produces approximately 100,000 ounces of gold and 12,000 ounces of Platinum Group Metals per annum, with a focus on low costs and high margin. The company is focused on increasing productivity through stringent efficiency and safety improvements.  Recently the company announced that headline earnings per share for the six months ended 31 December 2011 are expected to be between 83 per cent and 93 percent higher than the 0.52 pence per share generated for the six months ended 31 December 2010, due to the current gold price and also as a result of managements operational improvements and cost control at their gold producing asset, Barberton. The company has recently commissioned the Phoenix chrome tailings retreatment plant that extracts Platinum Group metals from chrome tailings and is planning to build a 1.2Mtper annum gold tailings retreatment plant at its Barberton Mining Operations.

About Wits Gold

Wits Gold is a gold and uranium company which holds 14 new order Prospecting Rights over 1,195km2 in the southern Free State, Potchefstroom and Klerksdorp goldfields of the Witwatersrand Basin. The Company is currently focused on fast-tracking the development of its shallow DBM Project in the southern Free State goldfield, where a pre-feasibility study is currently in progress. The acquisition of the share in Evander Gold Mines will result in Wits Gold becoming South Africa’s newest gold producer, and delivers into the Company’s strategy to acquire producing assets with growth potential.

Read more here:
Wits Gold together with Pan African Resources to acquire the operating Evander Gold Mine from Harmony for ZAR1.7 billion

Surprisingly rare earths used in green technology and defence do not top the list but comes in at number five. Antimony, extracted mainly from stibnite (pictured), widely used for fireproofing is most at risk. The platinum group metals (auto catalysts) hold the second spot while niobium used in touch screens and scanners and tungsten for cutting tools are also at risk of supply disruption as a result of increased competition among the world’s growing economies, political instability, resource nationalism, along with events such as strikes and accidents. China is the number one producer of 50% of the 52 chemicals on the list and produces 75% of the world’s antimony.

China supplies over three-quarters of the world total of antimony with the remainder coming from Russia, South Africa, Tajikistan and Bolivia. The platinum group metals are concentrated in South Africa and Zimbabwe while China produces 95% of the world’s rare earths elements. MINING.com reported last week how the world is scrambling for rare earths after China latest crackdown on its industry sent prices rocketing.

Click here for the complete list from MineralsUK.

Image of stibnite ore from which most antimony, a native element, is extracted.
Read more here:
Antimony tops metals and minerals risk list, China controls 50% of 52 critical chemicals

According to Statistics SA, growth in mining production slowed to 9.6% year on year (y/y) in May from 12.0% y/y in April. Gold output fell by 5.8 % y/y and was down by a seasonally adjusted 3.6% month on month (m/m), while non-gold output was dragged down by declines in platinum group metals, which declined 9.9% m/m, and coal, which was 6.3% lower m/m.

Business LIVE reports:

“The threat of labour strikes, with labour unions having declared disputes with some mining houses, does not bode well for activity in the coming months,” they said, adding that some moderation in mining output could be experienced during the second half of the year, due to a high base established in 2010 and some loss in growth momentum internationally.

“Although commodity prices remain supportive, there are indications of a slowdown in global demand. The strength of the rand, which hampers export competitiveness, as well as transport and energy capacity are also hurting the sector,” Isaac Matshego and Dennis Dykes, from the group’s economic unit, said in a note on the latest mining production data released by Statistics SA.

Read more here:
South Africa mining sector outlook worsens

After successfully completing the negotiation process, management decided to enter into an agreement that gives the company unrestricted rights to explore resources and reserves on what is known as the Caribou Property. The property comprises four claims with 34 units totalling approximately 680 hectares in McConkey Township. It covers the north and northwest portions of Caribou Lake, NTS 41 H/16. The area is located approximately 100 kilometres north of Parry Sound and approximately 290 kilometres north of Toronto.

The property covers a mafic intrusive complex known as the Caribou Complex that has been explored previously for copper and nickel mineralization. Government geologists reported significant platinum values on the property during past exploration work. The mineralization described to date in the Caribou Lake intrusive has been comprised of disseminated pyrrhotite and pyrite with variable amounts of chalcopyrite in norite or pyroxenite. The presence of this style of mineralization associated with large IP anomalies has also been noted by previous workers.

The Caribou Property has an interesting history of exploration, but it hasn’t been explored adequately, especially not with modern exploration techniques that involve Systematic Platinum Group Element (PGE) analysis. NWTT looks forward to starting development that will allow the full potential of the property to finally be realized.

“The company is already at a stage where we are structuring the preliminary exploration programs,” says NWTT Vice-President Zdenko Vrba. “All modern exploration techniques are in play, and the company will choose the exploration process that could precisely and quickly define targets for further exploration.
Read more here:
NWTT Acquires New Mining Property With Historically Confirmed Findings of Platinum, Copper and Nickel