Gold miners seek safety as political risks rise

Sulliden Gold Corporation Ltd. (TSX:SUE)(OTCQX:SDDDF) has completed a new gold and silver mineral resource estimate for its 100%-owned Shahuindo Project in Peru. The updated estimate delivered a 121% increase of indicated gold ounces in the oxides and a 397% increase in inferred gold ounces from the sulphides relative to the 2009 year-end estimate. Sulliden continues to actively drill the Shahuindo property and new results will continue to be released throughout 2011. Image of the Shahuindo Project by Sulliden Resources

Buying in China and India, central banks increasing reserves and particularly dwindling gold production could potentially drive the gold price to US$5,000/oz says a new report by investment bank Standard Chartered. The report, which studied 375 mines around the world, also shows that while exploration budgets have steadily risen since 2002 (with the exception of 2009) in response to rising prices, the rate of new gold discoveries have continued to decline.

Eritrean National Mining Corp. has agreed to pay US$32 million for a 30 percent stake in Chalice Gold Mines' Zara gold project, Bloomberg reported Wednesday:

Diversified Australian miner Astra Mining announced on Wednesday plans to list on the Frankfurt Stock Exchange before the end of August after two days earlier inking a deal to enter the Nigerian market and further expand its global presence. Deal-hungry Astra Mining’s global portfolio includes gold and tin interests in south east Asia and southern India, coal mines in Australia, iron ore in India, manganese in Africa and the commercialisation of a new high-strength steel technology from a base in Hungary.

Catalpa Resources and Conquest Mining have agreed to merge and buy a new asset from Newcrest Mining, Perth Now reported. The newspaper says the new entity will acquire a 70 percent stake in Newcrest's Cracow gold mine and will also buy the Mt Rawdon gold mine from Newcrest: In a statement to the Australian Securities Exchange Catalpa and Conquest said the merged company will be in a position to produce 400-450,000 ounces of gold by 2013, putting it into to the top five of the local gold producers. The combined market cap would be about $1.2 billion.

Get set for a pace of drilling and exploration results from the Yukon even more blistering this year than the last. By way of yardstick, 2010 was stellar for exploration in the Yukon, with about $150 million in such expenditures. But this year is looking even better, with exploration expenditures expected to top $250 million, according to Natural Resources Canada, which some months ago surveyed the 2011 spending intentions of mining and exploration companies. And with the shorter Yukon exploration season, many drilling campaigns in the Yukon are just getting underway.

Aurizon Mines Ltd. (TSX: ARZ)(NYSE Amex: AZK) is pleased to report that an updated mineral resource estimate has been completed for the Hosco deposit at its 100% owned Joanna Property, located 20 kilometres east of Rouyn-Noranda, in north-western Quebec. The updated mineral resource estimate was prepared by SGS Canada Inc. - Geostat ("SGS Geostat") in collaboration with Aurizon's personnel. Image of the Joanna Gold Project by Aurizon Mines Ltd.

Bralorne Gold Mines announced the first successful milling results for its Bralorne mine operation located near Gold Bridge, British Columbia. Milling operations began on a test basis in early April with the processing of low grade material from the stockpile. The mill was operated nearly continuously during May, with gravity and flotation concentrates being produced.

PNG Gold Corporation outlined its exploration, development and financing plans for the Imwauna project, Normanby Island, Milne Bay Province, Papua New Guinea. The property contains numerous vein systems that outcrop at surface. The main vein system discovered to date - the Imwauna vein system - hosts high grade, low sulphidation, near-surface epithermal gold-silver mineralization.