New chief David Garofalo on the future of Goldcorp

Reuters reports Peru's mining firms have agreed to pay higher royalties in an overhaul of the current system, sources on both sides of negotiations between companies and leftist President Ollanta Humala's government said on Tuesday. Under the new system, companies would pay royalties based on their operating profits, not sales and will be be similar to the system used in Chile. The new royalties rates still need to be defined, but they would likely be higher than the current rates of 1% – 3% charged on sales. The initiative comes as mining companies in Peru plan to invest $42.5 billion over the next decade, mainly in copper and gold projects. Peru is the world's largest miner of silver and the second-largest miner of copper.

Yukon-Nevada Gold announced its financial and operational results for the second quarter ended June 30, 2011. Highlights for the three-month period ended June 30, 2011 include the Jerritt Canyon Mine whihch produced 22,168 ounces from purchased ore, stockpiles and mining operations in the three months ended June 30, 2011, compared with 18,441 ounces in 2010, reflecting a 20% increase in production despite continued shutdowns.

US Silver Corporation announced Monday record second quarter revenues of $30.8 million in the quarter, more than double the amount for the same period in 2010 and an increase of 61% from the first quarter of 2011 while net earnings were $6.5 million in the quarter, compared to $0.6 amount for the same period in 2010. U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho.

Revett Minerals announced on Thursday record quarterly revenues of $18.8 million, a 102% increase compared to the same period last year. The Company also increased its cash and cash equivalents on hand at the end of the second quarter to $14.7 million from $8.8 million at the beginning of the year. For the three months ended June 30, 2011 the Company had net income of $7.9 million or $0.23 per share. These record results are due to higher metal prices, significantly improved metal grades, and higher metallurgical and operating efficiencies.

Hecla Mining CEO Phil Baker Tuesday predicted the higher the gold price goes, the more small investor interest in silver will increase.

A copper mine proposed for southern Arizona is stuck in limbo while federal regulatory agencies decide whether to grant the mining company a permit. Canadian Business said Monday that Rosemont Copper is waiting for the U.S. Army Corps of Engineers to grant or deny a permit for the mine, located on a mix of private and public land in the Santa Rita Mountains some 30 miles southeast of Tucson.

Silver Falcon Mining announced on Tuesday it had cast 17 troy ounces at War Eagle Mountain, making it the first report of precious metal smelting in over 100 years at the historic Idaho site. Stock in the tiny company rose as much as 24% on triple the usual volumes on the news bringing its gains for the year to over 72%. Silver Falcon said it will now switch focus from processing the old tailings and commence with exploration activities now that weather inaccessibility is no longer a problem.

Businessweek quotes a confidential report prepared for South Africa's mining CEOs as saying South Africa’s ruling party is closer to some form of nationalization than at any other time since the end of apartheid. A government takeover of mines could choke investments in a country with metal and mineral reserves estimated at 2.5 trillion and lead to a collapse of the currency, the rand. Firebrand Julius Malema (pictured), the leader of the youth wing of the ruling African National Congress which often acts as kingmaker in the country’s politics, is spearheading the campaign to seize mines, farms and banks. Malema is never far from headlines in the country with racially charged comments but now an anti-corruption police unit is probing a trust fund owned by him allegedly being used to funnel payments in exchange for securing government tenders.

In late morning trade shares in Miraflores-based Portage Resources had gained more than 12% after announcing a 10:1 future stock split that would, after cancellation of some of the shares held by its CEO, bring the total number in issue to a whopping 4.45 billion. When MINING.com reported on Portage Resources a fortnight ago the counter had gone from 2c to 65c a share in the matter of three months. The explorer has been snapping up properties in Peru hitting pay-dirt with reserves of 58 million ounces of silver at one of them. Portage is a prime example of how volatile stocks in juniors miner can be: its 52-week high is $1.24 and despite Monday's 12% jump to 32c, the stock is worth half of what it was just five trading days ago.