The sculpture, For the Love of God, is a platinum cast of a human skull inlaid with 8,601 diamonds. The skull was sold for £50-million to a consortium of buyers, including Hurst himself.

The skull, along with 70 other pieces from the artist, will be featured at a show starting this April at the Tate Modern.

Damien Hurst is a contemporary artist who courted controversy in the 1990s. He is known for art that focused on death, dead animals dissected and immersed in tanks of formaldehyde. Hurst is believed to be Britain’s wealthiest artist. The Sunday Times Rich List estimated his wealth at £215 million in its 2010 list.

Hurst also worked with gold when he created The Golden Calf, an animal preserved in formaldehyde with 18-carat gold horns and hooves.

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Diamond and platinum skull worth £50-million to be shown at the Tate

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/read-my-lips-south-african-minister-announces-no-mining-tax-surprises/ http://www.houstongoldnews.com/gold/read-my-lips-south-african-minister-announces-no-mining-tax-surprises/#comments Mon, 06 Feb 2012 14:00:13 +0000 admin http://www.houstongoldnews.com/uncategorized/read-my-lips-south-african-minister-announces-no-mining-tax-surprises/ 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.

]]> http://www.houstongoldnews.com/gold/read-my-lips-south-african-minister-announces-no-mining-tax-surprises/feed/ 0 http://www.houstongoldnews.com/gold/south-africa-is-looking-at-mining-super-tax-%e2%80%98targetted-intervention%e2%80%99-in-platinum-sector/ http://www.houstongoldnews.com/gold/south-africa-is-looking-at-mining-super-tax-%e2%80%98targetted-intervention%e2%80%99-in-platinum-sector/#comments Sun, 05 Feb 2012 21:38:00 +0000 admin http://www.houstongoldnews.com/uncategorized/south-africa-is-looking-at-mining-super-tax-%e2%80%98targetted-intervention%e2%80%99-in-platinum-sector/ 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:

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

Sub Sea Research LLC, which made the initial discovery in 2008, posted a video outlining their progress.

“On June 1942, a vessel called Port Nicholson loaded 71.4 tons of platinum en route from Halifax to Boston. She was intercepted by a U-87 and sunk with all of her platinum onboard. It was kind of forgotten through history until the ’90s that [the platinum] was even on board when these documents  were declassified,” states the narrator.

The company is proceeding cautiously, and is investigating debris on the outside of the ship to be sure that they have the right cargo.

Finding a platinum bar would definitively prove the contents of the ship  ”. . . before we risk going into the hull of the ship and risking equipment that is worth 1/2 million dollars.”

Hat tip, Business Insider

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Boston shipwreck contains $3 billion of platinum