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Can’t-miss headlines: Gold holds to $1,245+, Platinum Group’s WBJV back on track & more

The latest morning headlines, top junior developments and metal price movements. Today the gold price holds to last week’s gains and Platinum Group outlines plans after a massive financing.


The spot price of gold held onto gains it made late last week. Having climbed from under $1,235 an ounce late Friday, it was $1,245.60 an ounce at presstime. Spot silver was $20.07 an ounce. And in base metals, early this morning the non-LME spot price of copper fell off from near $3.33 a pound to just over $3.30 a pound.


New regulations are giving breathing room to some – but not all – miners in Indonesia, as the country adopts curbs on raw ore exports. There was a record auction of the Brasher Doubloon, said to be the first US gold coin. And talking uranium discovery, we interview Fission Uranium’s Ross McElroy, who is being awarded the Prospectors and Devlopers Association of Canada’s (PDAC) Bill Dennis award for Canadian discovery. Meantime on Reuters: Trafigura’s old guard cashes out with billion-dollar share buybacks. And from Bloomberg: India blocks Vedanta’s bauxite mining plans in Odisha state.

Junior PR

In its latest quarter Perseus Mining said it produced 48,360 ounces gold with all-in sustaining costs of $1,228 an ounce. Perseus operates the Edikan gold mine in Ghana.

Diamond-producer Lucara Diamond gave 2014 production guidance, projecting sales between 400,000 to 420,000 carats diamonds and heavily rising operating costs. Cash costs per tonne are set to jump by about 50 percent from $23 a tonne to $31-$33 a tonne. Lucara cited more waste mining for the increase in costs. In 2014 Lucara said it would mine 3 to 3.5 million tonnes of kimberlite feed and 10 to 11 million tonnes waste rock. It also estimated revenues between $150 million to $160 million.

Platinum Group – which had to scramble last year to arrange new funding after a partner elected not to meet a cash call – said that with a $166 million financing complete development of its WBJV Project 1 platinum project would gear-up again. At full steam, Platinum Group projects production of 275,000 ounces 4E (i.e. platinum and palladium, mostly, as well as rhodium and gold) at WBJV Project 1.

And Fission Uranium outlined exploration plans at its Patterson Lake South (PLS) project, including a radon-in-lake survey, which played a key role in its discovery of PLS. Fission conducts the radon surveys in winter when lake water – under ice – circulates the least, giving a more stable picture of potential radon anomalies. Fission said it would cover 10 electromagnetic conductors.

Update 1

In a C$2.6 billion takeover bid Goldcorp offers about $1 billion cash and 0.146 a Goldcorp share for Osisko. It comes as a 28 percent premium over a 20-day volume weighted trading period, though, like many gold producers – juniors especially – Osisko’s shareprice is well off heights it reached in recent years. The question now becomes: might others enter the fray? More to come on Mineweb.

Update 2

Capstone Mining reported production results for 2013 including, for the first time, output from its Pinto Valley copper mine in Arizona, which it recently acquired. As was to be expected, Pinto Valley dominated its production accounting for about half Capstone’s copper output in the fourth quarter: 31 million pounds copper at Pinto versus 56.9 million pounds company wide. Capstone said Pinto is operating near its 50,000-tonne-per-day target.

Also, Brigus Gold, which is the subject of a Primero Mining takeover, said it produced 98,710 ounces gold for the year, and 21,916 ounces gold in the fourth quarter. Brigus reported Q4 average grades of 3.53 gt/ gold versus average grades of 4.34 g/t Au over the year.

And Fortuna Silver projected 30 percent growth in 2014 silver production to 6 million ounces and 51 percent growth in gold production to 32,300 ounces with all-in sustaining cash costs of $17.14 per ounce silver. For 2013 Fortuna produced 4.6 million ounces silver and 21,242 ounces gold up by 16 and 3 percent over 2012, respectively, it said.




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