Oct 27

Comstock Mining: Rich History, Even Brighter Future

Gold Price Comments Off on Comstock Mining: Rich History, Even Brighter Future

Comstock Mining is clearly proud of the rich history surrounding its Nevada properties, but beyond that, the company has worked hard to advance to production in just a few years. Gold Investing News spoke with Comstock’s president and CEO, Corrado De Gasperis, about how Comstock got to where it is today, what’s been happening lately and what investors can expect next.

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Oct 24

Trimetals Mining Poised to Grow in Nevada?

Gold Price Comments Off on Trimetals Mining Poised to Grow in Nevada?

In an article for Mineweb, Kip Keen took a look at Trimetals Mining (TSX:TMI.B)at Brien Lundin’s New Orleans Investment Conference. Though the company’s gold deposits in Nevada currently look “rather inconsequential,” the author notes that they have grown steadily, and have potential to keep doing so.

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Oct 24

Nevada Gold Companies Digging Deep: Part 1

Gold Price Comments Off on Nevada Gold Companies Digging Deep: Part 1

Longtime observers know it’s not just lithium that is driving Nevada’s resource boom. Just like back in the 1800s, gold remains a valuable commodity for the Silver State.

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Oct 21

Canamex Resources Intersects 22.9 Meters Grading 3.29 G/T Gold in Penelas East Zone at Bruner

Gold Price Comments Off on Canamex Resources Intersects 22.9 Meters Grading 3.29 G/T Gold in Penelas East Zone at Bruner

Canamex Resources announced that it has received results from samples of core drilling at the Bruner gold project in Nevada. Core Hole B-1446C intersected 22.9 meters grading 3.29 grams per tonne gold from 221.6 meters to 244.5 meters depth. The high grade zone intersected in that hole remains open to the west and north, as does the thick lower grade mineralization encountered in the hole.

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Oct 15

Rye Patch CEO Pleased with Results of Wilco Drill Program

Gold Price Comments Off on Rye Patch CEO Pleased with Results of Wilco Drill Program

Rye Patch Gold Corp. (TSXV:RPM,OTCQX:RPMGF) announced the results of the 2014 drilling campaign on its Nevada-based Wilco project, commenting that it was able to establish “a high-grade corridor within the Colado resource area which is open to the north, northwest, and southeast.”

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Oct 01

Corvus Gold Identifies Vein Shoot Target at North Bullfrog

Gold Price Comments Off on Corvus Gold Identifies Vein Shoot Target at North Bullfrog

Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) reported results from the final six holes of its 2014 Phase I drill program and the first hole of its Phase II drill campaign at the North Bullfrog Project in Nevada. A new parallel target zone to the west of the main Josh Vein called NW10 was defined, bringing the total width of the Yellowjacket structural zone in the north and has provided critical data in defining a new high-grade shoot target at the intersection of the NW10, Josh Vein and Rhyolite zones.

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Sep 30

Klondex Mines Announces Updated Resource Estimate for Midas: Increased total M&I AuEq ounces to 526k oz

Gold Price Comments Off on Klondex Mines Announces Updated Resource Estimate for Midas: Increased total M&I AuEq ounces to 526k oz

Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) updated the mineral resource estimate at its 100%-owned Midas underground gold mine in Nevada:

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Sep 22

Gold Mining "Hurt Long-Term", Output "Peaking in 2014"

Gold Price Comments Off on Gold Mining "Hurt Long-Term", Output "Peaking in 2014"
Gold mining producers cutting exploration, M&A spending as profit margins shrink…
 

GOLD MINING output worldwide is set to peak and then “plateau” in 2014, according to the leading data analysts, as today’s lower prices force producers to cut exploration spending in a bid to boost profit margins.
 
“It seems inevitable,” says the new Gold Survey 2014 Update from Thomson Reuters GFMS, that the mining industry’s response to 2013’s gold price crash “will be detrimental to mine supply levels in future years.”
 
Forecasting a 10% drop in the average market price to $1270 per ounce for full-year 2014 (currently at $1290), “The mining sector is increasing production this year,” says the consultancy, “with a number of important projects coming into production and/or ramping up to full capacity, having benefited from investment flows in earlier years when prices were much higher.”
 
But new investment is now being cut back, meaning that “longer term, the production profile is likely to come under pressure” with 2014 marking what Thomson Reuters GFMS calls “a cyclical top for mine production.”
 
Over the first half of the year, global gold mining output rose 4% worldwide from January-June 2013, led by increases from China, Australia and Russia – the top 3 producer nations.
 
Gold mining output fell however in the next 3 major producers – the United States, South Africa and, most sharply, Peru. There, the giant Yanacocha project, the world’s biggest operational gold mine at its peak a decade ago, saw the quality of gold ore drop 65% from a year before.
 
Better “husbandry” and falling energy prices mean the average cash cost of mining 1 ounce of gold fell 6% by mid-2014 from a year before, Thomson Reuters GFMS explains. But thanks to the slump in world market prices, the industry’s basic profit margin has fallen 25% year-on-year, it says.
 
Attempting to cut costs further, the gold mining industry’s “closures or suspensions have so far been limited to small or ageing operations,” the report says. But there have also been “deferrals of major development-stage projects”, because the last “turbulent year” in precious metals at one point saw gold’s market price dip below the mining industry’s average cost of production when exploration and new development expenses are included.
 
In the stock market this has also led to “a market sell-off that has severely depressed mining valuations.” Mergers and takeovers remain “anemic”, with no “blockbuster consolidation plays” despite continued approaches from Newmont – the world’s No.2 gold mining company – to the world No.1 Barrick aimed at saving $1 billion per year across their operations in Nevada, USA.
 
Today’s lack of corporate activity in the gold mining  sector, says Bernard Dahdah at French investment and bullion bank Natixis’s London office, contrasts with the “mine acquisition frenzy” of the decade-long bull market in gold prices. Then major companies were “typically purchasing mines at the higher end of the cost curve.” Miners also failed to protect themselves against any drop in prices, remaining “unhedged” after finally closing in 2009-2011 the huge forward sales made at prices 80% lower at the turn of the century.
 
Gold producers, says Dahdah, “are now resorting to consolidation at the lower end of the cost curve. Exploration budgets are also being cut back.”
 
Cost-cutting across the base metals sector is being driven further by slowing global demand, reports specialist news and data provider Platts.
 
“Companies are not only becoming leaner and meaner because the old regimes…became too profligate when commodity prices were high,” writes Paul Bartholomew, Platts’ managing editor for steel in Australia. “Rather, they are responding to a slowing China and subdued global economy.”
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Sep 11

Premier Gold Mines Acquires Cove-McCoy Property

Gold Price Comments Off on Premier Gold Mines Acquires Cove-McCoy Property

Premier Gold Mines Ltd. (TSX:PG) announced it has closed the acquisition of a 100-percent interest in the Cove-McCoy gold property, in Nevada, from Newmont Mining Corp. (NYSE:NEM). Premier paid $15 million for the property.

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Aug 28

Corvus Gold Closes C$6.18 Million Offering of Shares

Gold Price Comments Off on Corvus Gold Closes C$6.18 Million Offering of Shares

Corvus Gold Inc. (TSX:KOR,OTCQX:CORVF) has closed a short form prospectus offering of 5,150,000 shares at a price of C$1.20 per share to raise aggregate gross proceeds of C$6.18 million. Corvus intends to use proceeds from the offering for a work program regarding its North Bullfrog Project in Nye County, Nevada.

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