Home Blog Page 508

Gold watchers say don’t rule out US election turmoil yet

0

The stock market is riding high, taking Joe Biden’s widening lead in the polls as a sign to discount the odds of a contested election. But some investors say it’s too soon to count out turmoil just yet, and that gold is poised to benefit from the uncertainty.

Fears eased this week that the election would fail to produce a clear winner, with traders pointing to polls suggesting a stronger lead for Democratic hopeful Biden. The possibility of a close vote and messy aftermath had made markets nervous in recent weeks while bolstering hopes for haven assets such as gold.

“Despite some polls indicating Biden’s lead is widening, I would not assume the risk of a contested election has dropped, although I know that’s what many are concluding,” said Kristina Hooper, chief global market strategist for Invesco Advisers, which manages $1.1 trillion for clients. “A lot can happen between now and the election, and I do believe gold can benefit from it.”

Gold seen rebounding after biggest monthly loss since 2016

Bullion, which surged 30% through the first eight months of 2020, lost momentum in September, easing for a second month as the dollar gained. While last week saw signs demand was starting to mend — with prices posting the best gain since August on prospects for U.S. stimulus — it’s been rockier this week. Gold tumbled on Tuesday after Trump ended talks with Democratic leaders on a new support package, only to pare that loss on Wednesday.

Under-appreciated risks

Risks surrounding the election may “be under-appreciated by precious metals markets,” according to Citigroup Inc. The bank said late last month those concerns could help push bullion to a record by year-end. Spot gold hit an all-time high of $2,075.47 an ounce in August and was at $1,890.92 on Wednesday.

“Gold thrives on uncertainty: we’ve never had an election in my experience in the U.S. that is as uncertain as this, and as uncertain a political environment as this,” said George Milling-Stanley, chief gold strategist at State Street Global Advisors, the marketing agent for SPDR Gold Shares, the biggest exchange-traded fund backed by the metal.

“GOLD IS STILL AN EXCELLENT DIVERSIFIER WITHIN THE PORTFOLIO CONTEXT FOR PEOPLE WISHING TO HEDGE AGAINST THESE UNCERTAINTIES WE HAVE COMING TOWARDS US”

Growing tensions in the run-up to the contest were underscored by an unusually contentious debate last week between Trump and Biden. Markets had been girding for a possible disputed result after Trump last month wouldn’t commit to a peaceful transfer of power were he to lose the election. The Cboe Volatility Index, or VIX, has risen for six straight sessions, the longest run since 2018.

“We’ve been fooled by the polls before, so there remains a lot of uncertainty around the outcome,” Wayne Gordon, executive director for commodities and foreign exchange at UBS Global Wealth Management, said on Bloomberg TV. “Gold is still an excellent diversifier within the portfolio context for people wishing to hedge against these uncertainties we have coming towards us.”

Gordon recommended buying gold in March, when the metal was plunging as deep losses in risk assets forced some investors to sell gold to raise cash. Since that call, prices have jumped more than 30%.

Potential headwinds

There are potential headwinds for gold that could keep its rally sidelined, including a slowdown this year in demand for the metal from central banks and a dollar that proved resilient in September.

But while the U.S. election season poses the greatest political risk, it’s only one of a raft of potential drivers that are likely to underpin investor interest in gold, according to Commerzbank AG. Those include Brexit, rapidly rising national debt levels, economic stimulus and extremely low interest rates, the bank said.

Michael Cuggino, president and portfolio manager at Permanent Portfolio Family of Funds, sees gold “increasing in value regardless of the election outcome” over the longer term.

“As long as real interest rates are negative across the curve, more liquidity is provided by the Fed and Congress, and growth resumes in the U.S. and abroad post-Covid, inflation expectations will be heightened and gold should continue to rise, albeit in its traditionally lumpy fashion,” Cuggino said.

In the meantime, the focus for gold over the next several weeks will stay on the U.S. election. Trump has called universal mail-in balloting, where states automatically send a ballot to every registered voter, “rigged” and “unfair,” stirring worries about a prolonged dispute over vote tallies.

“This time around it’s a little bit different,” said Darwei Kung, head of commodities and portfolio manager at DWS Group. “It’s not just the outcome of the election, but the process of the election, that sort of uncertainty.”

Bloomberg News

Barrick CEO calls for consolidation and warns of reserve crisis

0

Barrick Gold CEO Mark Bristow on Wednesday said the gold industry in Africa should consolidate further, as he warned of a “serious reserve crisis” looming for the sector.

A dearth of exploration has seen average mine life across the gold mining sector fall from 20 years to closer to 10 years, he added, speaking at the Joburg Indaba mining conference.

“The prospect of a serious reserve crisis is looming,” said Bristow. Gold production across the industry has only increased by 1.6% every year for the past two decades, he said.

Bristow said this week’s deal between Northern Star Resources and Saracen Mineral Holdings was a “great example” of industry consolidation that should be celebrated.

A DEARTH OF EXPLORATION HAS SEEN AVERAGE MINE LIFE ACROSS THE GOLD MINING SECTOR FALL FROM 20 YEARS TO CLOSER TO 10 YEARS

On Mali, where Barrick is among the biggest investors and operates the Loulo-Gounkoto gold mine, Bristow said the transition after an August military coup has been “very well” run.

“Everyone agrees that 18 months for transition back to full civilian rule is doable, and that’s ambitious,” Bristow said, adding that “none of the organs of state has stopped functioning.”

Bristow again signalled his appetite for acquiring Freeport-McMoran’s Grasberg mine in Indonesia, the world’s biggest gold mine and second-biggest copper mine.

“There are not a lot around, and so by deduction of course we remain interested in being able to add to our portfolio any tier 1 asset out there,” he said.

Bristow said he has no doubt the company will be able to repatriate $500 million which belongs to its Kibali joint venture in the Congo.

“That paperwork is far down the road,” he said. At the start of July, Bristow had said the money would be cleared to leave the country “very soon.”

“There’s a fundamental recognition that to continue to attract investors into the DRC, you have to give them the right to repatriate their profits,” he said.

Reuters

Prospect salivates market leading results

0

ZIMBABWE-focused mining group, Prospect Resources, says it expects to produce top quality lithium to support its glass and ceramic business at the Acadia Lithium Project.

The project is still under development and independent laboratory test results have confirmed that the Arcadia project could produce one of the lowest iron lithium concentrates in the market.

In a latest update, Prospect said it has been focused on production process improvements at Arcadia to generate higher quality and consequently higher value products.

The company’s proprietary production processes were independently carried out by PESCO and Light Deep Earth (LDE) to produce premium ultra-low iron petalite concentrate products, achieving 4,37 percent Li2O and 0,01 percent Fe2O3.

Prospect managing director, Mr Sam Hosack, was quoted as saying: “These independent results reinforce Arcadia’s ability to consistently produce one of the lowest iron lithium concentrates in the market. These quality improvements continue to separate our products from our peers.”

He said his organisation has received numerous requests for samples from customers across Europe and Asia.

“We are now prioritising glass-ceramic customers to receive future petalite product samples,” said Mr Hosack.

Recently, Prospect announced that it has secured a long-term agreement with Sibelco N V, the world’s largest industrial minerals solutions company to supply petalite from its Arcadia Lithium project.

The mining group said the seven-year agreement will see the company supplying 700 000 dry metric tonnes (dmt) of high quality, ultra-low iron petalite concentrate during the tenure of the agreement. The seven-year agreement is for up to 100 000dmt per annum of high quality, ultra-low iron petalite concentrate while the pricing formula for the agreement is linked to the end customer sales contracts with minimum pricing provisions.

 

The Chronicle

Bulawayo City Council blocks gold mining at Umzingwane dam

0

THE Bulawayo City Council (BCC) has turned down a request by a company which wanted to mine gold at the decommissioned Umzingwane Dam and surrounding areas.

Umzingwane Dam is one of the city’s three supply dams that were decommissioned.

According to the latest council report, Extra Rich Mining Private Limited proposed to partner council in mining gold at the decommission dam while at the same time de-silting it.

Director of Engineering Services Engineer Simela Dube said if the company was granted permission to extract gold at the decommissioned dam, illegal panning activities were likely to increase which could even endanger lives of Bulawayo residents.

Eng Dube said the water body was also going to be contaminated with cyanide largely used by illegal miners in their extraction activities.

He said the siltation of the city’s dams was not that bad to warrant de-siltation.

“The proposed development would increase impurities in the raw water besides making it muddy which would in turn increase the water purification costs to council. Furthermore, the proposed project would instead increase siltation and reduce the dam’s holding capacity. The dam does not have any silt hence there is no need for de-siltation and alluvial mining along Umzingwane River would lead to siltation and reduction in water inflows to the dam,” said Eng Dube.

He said such an exercise would worsen the perennial water shortages affecting Bulawayo.

“Mining activities within the dam would exacerbate the perennial water problems of the city considering that mining is also a water intensive activity. It should be noted that the idea looked attractive as gold usually did but the worry is that the proposed project will compromise the water quality and quantity within the dam,” he said.

Eng Dube said aquatic life was critical in water bodies especially for human and animal consumption and therefore there were fears that the envisaged technology would disturb the ecosystem.

“It was also noted with grave concern that Umzingwane Dam is pivotal in the pumping stability of water therefore the proposed development would bring a lot of disturbances to the dam lining and would consequently increase seepage.”

Health Services director Dr Edwin Sibanda said council has to be careful in making the decision as it could result in the local authority falling short in the service delivery mandate while exposing residents to diseases.

“Water sources are generally ‘high security’ areas. Opening them to third parties exposes the consumers to pollution and contamination,” said Dr Sibanda.

The local authority’s public relations department headed by Mrs Nesisa Mpofu noted that the water crisis had seriously affected the image of the city.

The department said gold extraction at a supply dam will therefore not be well with residents.

“The water crisis has made a huge dent on our brand and it would be better if we sought to come out of the woods with this matter. Any project at our dams that is not improving the water situation may be seen to be in the wrong spirit. Unfortunately the issue may not be well received by stakeholders,” observed the department.

After submissions by the different heads of departments, the council resolved to reject the request.

 

The Chronicle

Positive Covid-19 tests won’t stop our reopening: Zimasco

0

KWEKWE-based ferrochrome producer, Zimasco, says it will not be deterred from resuming operations despite having three workers testing positive for Covid-19.

The company is finalising preparations to restart production after it temporarily suspended operations at the height of lockdown measures.

General manager in charge of marketing and administration, Ms Clara Sadomba, confirmed the positive Covid-19 tests and said the company has intensified testing and protective measures ahead of reopening while affected workers are in isolation.

“We did find positive cases when we carried out tests in preparation of opening. Every worker goes through the RTD test at our local clinic prior to being allowed entry. If this is negative, we proceed and will take them through our procedures and processes to make sure,” she said. “Should the RTD be positive then there will be need for the person to undergo a PCR test to establish accuracy of the positive result and we will then be guided on a way forward from that.”

Visitors, according to Ms Sadomba, also go through the same process. She said the positive cases will, however, not hinder operations at the smelting company.

“As part of the procedures to return to work and entering the workplace, employees were tested before returning. In terms of Covid-19 protocols, those found positive would have followed the Government guidelines of isolation. These workers did not enter the workplace and their absence out of a workforce of nearly 500 would not stop operations,” she explained.

Zimasco is an integrated ferrochrome producer and operates chromite mining locations in Shurugwi, Guinea Fowl, Lalapanzi, Mutorashanga and tributary operations along the Great Dyke of Zimbabwe. Its non-core operations include coal-bed methane and ranching assets in Zimbabwe. The company employs 750 workers directly and more than 1 000 indirectly.

The company suspended its smelting and mining operations in March as the local industry suffered from the crippling effects of the deadly Covid-19 pandemic.

 

The Chronicle

Mimosa builds VTC and Hospital in Zvishavane

0

PLATINUM producer, Mimosa Mining Company constructed and equipped Zvishavane Vocational Training Centre girls’ hostel and the Zvishavane District Hospital Private Ward that were officially opened by the President of Zimbabwe Emmerson Dambudzo Mnangagwa in Zvishavane yesterday.

Precious Chikuruwo

Mimosa Managing Director, Mr Fungai Makoni emphasizing his company’s commitment to playing its part in improving the lives of the people.

Zvishavane Vocational Training Centre is one of 42 such centres around the country. It helps produce artisans who are key skilled workers who are able to contribute to the attainment of Vision 2030, among courses trained at the VCT is Cosmetology, Tourism and Motor Mechanics

The mining firm also donated 22 computers to the VTC as part of their Corporate Social Responsibility, built an 18-bed ward at the District Ward and a pharmacy which is equipped.

The Midlands Minister of State for Provincial Affairs Senator Larry Mavhima applauded the work by the platinum miner emphasizing that it is improving the health sector in the country.

In his opening remarks, Minister of State for Provincial Affairs and Devolution, Cde Larry Mavima said the state-of-the-art private ward which was built at a cost of US$1million will make it possible to treat even the complicated cases that may arise in the district.

“Even if I fall sick today, there will be no need to airlift me to Harare as facilities here are more than adequate” Minister Mavhima.

The Minister of Mines and Mining Development Hon Winston Chitando applauded the development by Mimosa said that the level of Corporate Social Responsibility by the miner sets a standard for the mining community to contribute to community growth.

“The two projects demonstrate the potential of mining to contribute to development in the community. This is what we envisage for all investors in the mining sector. ” ~ Minister Chitando

The president paid a tribute to Mimosa Mine for its Corporate Social Responsibility and its response to the government’s call for smart partnership between government and private sector, the President also applauded the company for contributions at Gweru and Masvingo Hospitals.

Invictus AGM date set, new director to be elected

0

LEADING mining and exploration company, Invictus Energy Limited has announced that its Annual General Meeting (AGM) will be held on the 28th of November this year.

The company has advised the people wishing to contest for election as a director to file their nomination papers by 12 of October 2020 and that the nomination papers should be in writing.

“Invictus Energy Limited (“Invictus” or “the Company”), advises that in accordance with ASX Listing Rule 3.13.1 and clause 11.2 of its Constitution, it’s next Annual General Meeting (AGM) is to be held on 28 November 2020.

In addition, the closing date for the receipt of nominations from persons wishing to be considered for election as a director is 12 October 2020. Any nominations must be received in writing no later than 5.00 pm (WST) on 12 October 2020 at the Company’s registered office.

Shareholders will be advised of further details regarding the AGM including the date and time of the AGM in a separate Notice of Meeting, which will be provided to shareholders during October 2020.

The Notice of Meeting will also be available on the ASX Company Announcements Platform and the Company’s website at www.invictusenergy.com

Invictus Energy Ltd is an independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa. The asset portfolio consists of a highly prospective 250,000 acres within the Cabora Bassa Basin in Zimbabwe. Special Grant 4571 contains the world-class multiTCF Mzarabani and Msasa conventional gas-condensate prospects.

Task Mine rescue mission can only be stopped by Cabinet

0

Civil Protection Unit (CPU) and body which falls under the Ministry of Mines and Mining Development has not stopped the rescue mission at Task Mining Syndicate as has earlier alluded but awaits cabinet decision on the way forward, a Ministry official has said.

Speaking to Mining Zimbabwe, Ministry of Mines Engineer Michael Munodawafa said that the Ministry has no power to stop rescue missions when an accident has been clarified as a disaster. The power lies in the hands of the CPU who are again given the go-ahead to undertake such decisions by the Cabinet.

Munodawafa said the Ministry sent an internal advisory letter addressed to the Chegutu District Administrator and not to the owners of the mine.

“If there is a disaster the Ministry has no power to shut down mining operations. The letter was addressed to the DA and not the mine owners, the case will be addressed by the cabinet soon.”

Munodawafa said that the Ministry failed to undertake rescue operations on time because Task Mine was not properly planned. Shafts were placed all over the place an event that could have also endangered the rescue team. He said measures are underway to map a way forward on how best operations can be taken.

“There are no plans in Chegutu, not even a single plan…we have to understand where you are going before we rescue, we had to focus also on the safety of the rescuers.” Engineer Munodawafa said.

Once Cabinet confirms the abandonment of the search mission, all access points into the shaft will be sealed off, making the shaft in effect a grave for (Task Five) Constantino Dzinoreva (47), Charles Mutume (31), Crynos Nyamukanga (44) Shingai Gwatidzo (20) and a minor Munashe Christian (17).

A letter which was written by the Chegutu District Development Coordinator, Tariro Tomu to Task Mining Syndicate management suggested that rescue operations were proven to be unsuccessful therefore should be stopped with immediate effect.

“A technical report from the Ministry of Mines has shown that operations are proving to be unsuccessful because of safety challenges. There is continuous fall of ground within the collapsed zone,” reads the letter in part.

The letter also stated that the Ministry indicated that there is no escape route in case of emergency and the plan exposed workers to great risk when operating.

“There is no second escape route in case of emergency and the plan of installing a bulkhead and allowing people to work below it is a risky operation as there is a high risk of it falling thereby exposing the workers to great danger if trapped,” reads the letter.

The letter by the DA to the Mine owners also indicated that rescue operations and retrieval of the bodies should be stopped with immediate effect.

Vast Resources commences production at Baita Plai polymetallic mine

0

Vast Resources PLC (LON:VAST) has confirmed that production has recommenced at its Baita Plai polymetallic mine in Romania and that it is on track to meet its October production and sales targets.

The AIM-listed mining company said that following the recommencement of mining, daily blasting has been implemented on the mineralised horizon of the Antonio skarn between 17 level and 18 level.

It added that the blasted ore is stored underground in both the working place silos and the surface silos. Transport of the ore from the surface silos to the flotation plant silos has commenced in preparation for the hot commissioning of the flotation plant expected to follow shortly, the group said.

In addition, Vast said the incline project has commenced on 18 level with daily blasts being achieved on the new underground development since 1 October 2020 according to plan. The incline is designed to provide access to the continuation of the Antonio skarn from 18 level down to 19 level and will provide a production base for the next four years.

Based on the success of the recommencement of mining activity, the company said it can confirm that it is on track to meet its October production and sales targets as outlined in the project production and associated operational cashflow forecasts announced on September 7, 2020.

In a statement, Andrew Prelea, Vast’s chief executive officer commented: “We are delighted that our Baita Plai operation is operational once more. The swift action our team took to reconnect the mine and flotation plant meant that production was able to resume quickly, resulting in minimal downtime and importantly, there is no expected impact on October production and sales targets.

“With potentially one of the lowest operating costs globally, and significant resource expansion opportunities, Baita Plai has significant commercial potential and we are focussed on realising this inherent value for all stakeholders.”

About Vast Resources

Vast Resources is focussed on the rapid transformation from an exploration company to a mining company and delivering multiple revenue streams. This will be driven by the advancement of its two primary value drivers, the Baita Plai Polymetallic Mine in Romania, and the Chiadzwa Community Concession in Zimbabwe, into near term production.

Vast was once a shareholder of gold producing Pickstone Peerless mine in Chegutu.

Teranga increases Golden Hill resource estimate

0

Teranga Gold (TSX: TGZ) has increased the mineral resource estimate for its Golden Hill project in southwest Burkina Faso after incorporating results from its latest drill program on the property.

Golden Hill is an advanced-stage exploration project located within the central part of the Houndé greenstone belt, a highly mineralized gold region that already hosts three operating gold mines.

The property is now estimated to contain 12.62Mt of indicated mineral resources averaging 1.85 g/t gold for 750,000 ounces, as well as 11.48Mt of inferred mineral resources averaging 1.81 g/t gold for 670,000 ounces.

The new resource estimate is based on the results from more than 900 reverse circulation and core drill holes totalling over 100,000 metres at five deposits — Ma, Jackhammer Hill, Peksou/C-Zone, Nahiri, and A and B-Zone — and a number of prospects.

GOLDEN HILL IS AN ADVANCED-STAGE EXPLORATION PROJECT LOCATED WITHIN THE CENTRAL PART OF THE HOUNDÉ GREENSTONE BELT

Following its most recent 27,000-metre drill program, the company has increased resources at the Ma structural complex (Ma deposit) to 521,000 ounces classified as indicated and 410,000 ounces classified as inferred. It also converted resources previously classified as inferred to the indicated category at the Peksou/C-Zone and the A and B-Zone.

According to David Mallo, Teranga’s vice president of exploration, there is “opportunity to increase resources further through more drilling and the optimization work that is already underway.”

“Within our three Golden Hill exploration permits, the structural-stratigraphic mineralized host can be traced for over 32 kilometres along trend, of which we have only explored about 10 kilometres. We look forward to getting back on the ground to drill and explore along this mostly untested trend where we have identified a number of undrilled target areas with very positive geophysical signatures, within the favourable host stratigraphy, compared to those observed at our known deposits, including Ma and Jackhammer Hill,” Mallo said.

The next step is to resume the exploration and drilling program intended to add resources and to evaluate the numerous prospects and deposits identified to date, as well as expand drilling outward to new areas of interest.

“We expect to spend approximately $15 million on our resource expansion
program at Golden Hill through the end of 2021 in order to reach our goal of outlining a resource of between 2 and 3 million ounces of gold,” president and CEO Richard Young stated in a press release.

“Despite today’s higher gold prices, our hurdle rate for new projects remains at achieving an internal rate of return of 15% at $1,300 gold, and Golden Hill’s development will be conditional on meeting or exceeding that threshold,” Young added.

A request to the government of Burkina Faso will also be submitted in the fourth quarter to convert the Golden Hill exploration permits to a mine license based on a technical study supported by the resource estimate.

Teranga currently has two operating open-pit mines in Africa: Sabodala in Senegal and Wahgnion in Burkina Faso.

Shares of Teranga Gold jumped 1.9% by noon EDT Monday. The Africa-focused gold miner has a market capitalization of C$2.44 billion_Mining.com