Still at the Gold Symposium, but I have fired up my laptop to provide you with an update.
My notes are summarised under each individual project:
Andash
- The government has assumed their 20% share of the project.
- Once the gov had their 20% they asked KGL why the project was taking so long. KGL explained the situation and the gov now wants it to progress ASAP.
- If we get approval it should be prior to x-mas with construction to start in the new year. (seem all but certain IMO).
- t $2.75/pound copper the cash costs at $29/oz of Gold. At current prices (for copper) the cash costs are likely to be negative. (i.e. all the gold is "free").
- The local town (which has a pop of 4,000 people and is 4km from the Andash Project) now want it to go ahead. The sentioment has changed.
- Only 5 wealthy land owners ever opposed the project. Their opposite appears futile now that the gov is on side.
- All engineering planning has been completed, only need to construct
Atkash
- KGL did not want to exercise their option on Atkash as it would have cost them $8 million without nothing whether Andash was going ahead. Without Andash, Atkash is uneconomical.
- Once approval is gained on Andash, they will re-examine Atkash and are confident of getting it.
- A Russian co recently offered the land owners $14 odd m for it, but reneged on the deal. KGL is now the only "buyer" IMO.
Jinka Minerals General
- Jinka was never purchased to take the focus off Andash. KGL's strategy has always been to acquire -> develop -> operate.
- Jinka minerals was about to go to an IPO but KGL was there at the right time and jumped in before hand.
Burnakura
- Feaso is delayed cause they are looking at the underground operations which will be more profitable.
- Still scheduled to start producing in June 2012.
- An RC campaign of 20,000 m will start shortly to infill the current resource.
- Start one will be 250k tpa.
- Stage two will be heap leach to treat the oxide ore.
Gabanthia
-Strategy remains to truck high grade ore to Burnakura
- Prevoius co stopped mining as soon as they hit any copper.
Jervois
- Not much was said expect the grades continue to get higher the deeper the drilling goes.
Geothermal project
*For some of you who remembered my post a few weeks back are the quarterly I was interested in finding out about this more.
- After "ditching" geothermal projects in Central Asia the company undertook a review of other opportunities throughout the South Pacific.
- They could recieve confirmation of the licence any day now. All the company had to do to secure the licence was to such a land holders claim which they have done.
- Once the project is granted one hole needs to be drilled to take the project from inferred to indicated resource status. It is then good to go (so to speak).
- Kentor will then spin the company out into a new co. they are not sure if KGL will retain shares in the company themselves or provide the shares to current holders.
- Strategy will this is to max shareholder returns (all extra cream IMO).
General comments on Gold
- David Evans stated the case for gold to:
2011 = $1,750 2015 = $3,800 2020 = $10,000 (however this will only be worth $4,600 in todays money due to massive inflation)
- David Evans said "the combined value of all the worlds gold miners is less than a global corporate such as Exon"
- Govs are conning public with global warming and expect them to run the same campaign on the devaluing of currencies.
- Eric Sportt
- Gold supply has hardly increased over the last 10 yrs
- Currently the world only adds 1.4% to the above ground supply of gold each year.
- On six simple measures there has been an increase in demand for of gold by 2,000 t pa from 2000 to 2010. This increase in demand is not being met by an increase in gold supply (as per stat above) therefore some central banks MUST be leasing/selling it (without informing the public).
- China/East Asia cannot get enough of the stuff.
- Gold exports to China (via Hong Kong) were 57 tonnes in Sep 2011 allow. A 6 fold increase on last year.
- the sale of physical gold and silver to people/public and investors is increasing at an enormous rate. in 2000 the US mint sold 8,405,000 oz of silver. In 2010 they sold 34,662,500 oz of silver.
- When Sprott launched their silver trust they made a bulk purchase of silver and it took three months for it to be delivered. Some of the dlivered bars where printed after their date of purchase (i.e. they had to produce more silver to meet previous demand).
- With $1bn you could buy all the silver listed on the commex.
- Eric spott values James Sincalirs opinion and he has stated gold to hit $12,000/oz. He correctly predicted that it would hit $1,650.
- Gold Assets only represent 1.5% of the worlds total assets. As funds/asset managers/clients demand exposure to gold this demand cannot be met by an increase in supply but must come from existing above ground stock.
- Louis Boulanger
- Since 1961 the US national debt has never gone fown.
- If we had sound money today gold would be at 10,000 an oz.
Thats just a couple of notes I have heaps more information to share. It has been a great event
KGL Price at posting:
$1.00 Sentiment: Buy Disclosure: Held
(20min delay)