gold about to tumble dow to soar!, page-2

a time to savour A time to savour


Friday, April 07, 2006

SOARING metals prices drive strong equity markets, with interrelated operational disruptions again playing a major role in generating bullish sentiment.



Magic millions for Tianshan
With gold touching $US600 ($A822) per ounce overnight, explorer Tianshan Goldfields shows a good sense of timing by delineating more than 2 million ounces at its Gold Mountain project in China.

Visa breaches lead to costly black-listings
Two undisclosed companies involved in the Papua New Guinea mining sector are reportedly facing significant penalties, including the black-listing of their expatriate employees, after a large number were found to have breached the conditions of their business visas.

Problems at Goro
Inco temporarily ceases construction activities at its Goro laterite nickel project in New Caledonia after protesters cause about $US10 million ($A13.7 million) worth of damage over the weekend.

Treasurer deflates flow-through optimism
With just over a month left before the fate of flow-through shares in the 2006-07 federal budget is decided, the man who holds the purse strings, Treasurer Peter Costello, gives the strongest indication yet that the pleas of the mining industry will once again fall on deaf ears.

Hartleys' golden outlook
A flurry of mergers and acquisitions and a gold price moving towards the $A1000 mark is what the Australian gold sector can look forward to, according to broking house Hartleys, which also warns against dysfunctional hedging.

Best not biggest: Barrick
With a mammoth 139 million ounces in gold reserves, the world's newly-crowned number one gold producer, Barrick Gold, flags exploration expenditure of $US160 million ($A220 million) this year and expects to bring a further six operations online over the next three years.

China targets Pilbara magnetite
The latest incursion of China into the Australian resources sector involves CITIC Pacific, which buys two Australian iron ore companies ahead of development investments worth $US2.5 billion ($A3.4 billion) and first production in 2009.

Wedgetail ticks Nullagine
Wedgetail Exploration gives the go-ahead to its Nullagine gold project and looks at adding a heap leach operation to the $A43 million development in Western Australia, where first gold is set for the end of the March quarter 2007.

Chinese mills encroach on Territory Iron
Territory Iron joins the growing list of Australia's junior iron ore players keen to deal with Chinese steel mills after an undisclosed mill signs on for most of Territory Iron's first year of production from its $A10 million Frances Creek project.

Integra firms numbers
Gold mining contender Integra Mining outlines a capital cost of $A45 million is required to get its 1.2 million ounce Aldiss-Randalls gold project in Western Australia off the ground, which could potentially net the company $100 million in cash flow.

PanAust project to cost $US232 million
The Phu Kham copper-gold project in Laos will cost Pan Australian Resources $US232 million ($A324 million) to develop and ANZ Investment Bank will provide about 65% of the necessary debt finance, with the remaining capital coming from either new equity or finance from off-take partners.

ConsMin awaits Titan's response
Consolidated Minerals brings its second nickel mine in the Kambalda district into production, while nickel explorer Titan Resources awaits results of an independent valuation before responding to ConsMins' takeover offer.

Gindalbie inks first deal with Chinese firm
China's insatiable appetite for iron ore is partially satisfied after Gindalbie Metals enters a joint venture with the country's second-largest steel producer, Ansteel, over the Karara project in Western Australia.

Second Que River deposit for Bass Metals
Bass Metals believes it could be mining from the Nico Lens at its Que River project in Tasmania by the end of the year after it hands down the initial resource estimate for the "high-margin" deposit.

Moto may opt to rattle tin
Moto Goldmines might tap the market for $C200 million ($A238 million) before the end of the year to accelerate its namesake gold project in the Democratic Republic of Congo into production, which could potentially host up to 20 million ounces.

Syama gets green light
Resolute Mining gives the green light to a redevelopment of the Syama gold mine in Mali at an increased capital cost of $US97 million ($A135 million), a move which will lift the company's production base over 500,000 ounces annually.

Kingsgate dismisses counteroffer speculation
Kingsgate Consolidated chairman Ross Smyth-Kirk dismisses speculation that there are other companies seriously interested in acquiring Andean Resources, as the hostile bid for the Argentinean gold explorer was made unconditional.

Churchill buys Indonesian coal
London-listed, Perth-based Churchill Mining acquires an 80% stake in the Sendawar thermal coal exploration project in Kalimantan, Indonesia, in a mainly scrip deal valued at £2.75 million ($A6.6 million), with a £5.25 million placement also undertaken to support the acquisition and ensuing work programs.

Goldman Sachs backs latest Kagara instalment
Kagara Zinc could be on the road to doubling its production after it starts development of the decline targeting the new Mungana base metals deposit in Queensland containing more than 348,000 tonnes of zinc and 77,000t of copper.

Intec goes for early zinc production
Intec seeks to take advantage of the strong zinc price by entering into a joint venture with private miner Polymetals to exploit the Hellyer tailings deposit in Tasmania.

More Douglas drama and delays
Iluka Resources and Roche Mining are no closer to resolving their $A105 million dispute over the construction of the $270 million Douglas mineral sands project in the Murray Basin of Victoria, with Roche confirming the project will take about 12 months longer to finish than expected.

Gold resource due at Nyanzaga
After many years kicking around the African dirt, cashed-up explorer Sub-Sahara Resources and partner Barrick Gold are set to hand to down a resource for the "potentially" large Nyanzaga gold joint venture in Tanzania.

Mercator flags 2007 production
Mercator Gold looks to establish around 600,000 ounces in mineable resources at its Meekatharra ground before kicking off production in the first half of 2007, and believes the "under-explored" region could potentially host up to 5 million ounces.

Terex contract in China
Terex finalises a $US150 million ($A206 million) contract to supply off-highway haul trucks to Shenhua Group, a Chinese state-owned company operating a new openpit coal mine located near Hohhot in Inner Mongolia.

SDS goes to Sandvik
Major mining supplier and engineering group Sandvik AB moves to acquire Australian drill equipment company SDS in a friendly cash transaction worth $A106 million.

http://www.miningnews.net

T10 :)