Gold

The Globe and Mail reports ever since the euro zone bond markets first started to get the jitters, hedge fund managers have been whispering that gold could play a part in resolving the crisis. Until recently, this discussion has mainly been the preserve of conspiracy theorists and backbench German politicians. But now the use of gold to fund a euro zone bailout is coming closer to reality.

TSX Venture-listed GobiMin's financial and operating results for the third quarter of 2011 showed the diversified explorer made a handsome profit on the sale of a stake in a Chinese coal project. GobiMin disposed of a 24.49% indirect equity interest in Balikun Coal Project for a total consideration of $30.35 million, recording a gain of $8.21 million. The unaudited interim financial statements also showed the company ended the quarter with $63 million in cash. GobiMin also announced its Sawayaerdun Gold Project has completed drilling works of about 30,100 meters with 84 drill holes and continues for further drilling aiming to maximize the project potential and that it has extended the deadline for obtaining the mining license of Yanxi Copper Deposit to January 31, 2012.

Australia’s plan to impose a 30 percent tax on its booming iron ore and coal sectors cleared its biggest political hurdle on […]

A new study is casting doubt on the viability of undersea mining, despite recent success by Vancouver-based Nautilus Minerals (TSE:NUS) in obtaining the first-ever permit to mine the seafloor off the coast of Papua New Guinea. The Canadian-led study, published in the journal Geology, states that "the possibility of mining sea floor [deposits] has stirred debate about the sustainable use of this new resource and whether commercial development is worth the risk.” The Vancouver Sun quotes Mark Hannington, the University of Ottawa's Goldcorp Chair in Economic Geology and lead author of the study, saying that while there may be vast mineral deposits under the ocean, they cannot hope to meet the world demand for metals:

Gold for December delivery lost over $39 an ounce, or more than 2%, to trade at $1,685.40 an ounce on the Comex division of the New York Mercantile Exchange by midday on Monday. The losses were on top of a 3.6% slide last week and brings the decline in the metal from its November high to $110/oz. Bullion jumped to a record $1,921.15 an ounce on Sept. 6 and has now shown 11 consecutive years of price gains, but volatility in the gold market is increasing and the gap between gold’s highs and lows this year have reached more than $600, the largest since the 1960s. Gold has averaged about $1,705 so far this quarter and $1,563 in 2011, figures compiled by Bloomberg show.

Emerging from a short and distort saga awash in cash, Silvercorp Metals on Monday announced the acquisition of SX Gold, a mining concern controlled by the Luoyang city government in northeastern China's Henan province for $22.7 million. Earlier this month the company, the largest silver miner in China, increased its quarterly dividend by 25% to 2.5 cents, after reporting a big jump in second-quarter profit and record cash flows. The stellar financial results came after a forensic accounting report showed no truth to allegations of $1 billion in accounting fraud at the company which was first alleged on September 2 by shortsellers that had built up a massive position in the stock.

Due to euro jitters and the U.S. credit downgrade, investment demand in Europe for gold jumped 135% to a record quarterly value of €4.6 billion. On Thursday the World Gold Council’s Gold Demand Trends report for Q3 2011 was released. "The increase in overall investment demand was all the more impressive given the sharp gold price correction in September, which encouraged a wave of profit taking among bar and coin investors. Virtually all markets saw strong double-digit growth in demand for gold bars and coins," said the World Gold Council in a statement.

TORONTO, Nov. 18, 2011 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("GGI" or "the Company") is pleased to announce today that it has signed a Mineral Agreement ("MA") with the Government of Guyana and has received the Mining License for the Aurora Gold Project, as previously promised through its Memorandum of Understanding ("MOU") agreement with the Guyanese Government (see press release dated October 5, 2011). This is the first large-scale mining license to be issued in the gold sector in Guyana since 1991.

TORONTO, Nov. 18, 2011 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle") (NYSE & TSX: AEM) and Grayd Resource Corporation ("Grayd") (TSX-V: GYD & OTCQX: GYDRF) announced today that 91,228,900 common shares (the "Shares") of Grayd, representing approximately 94.77% of the outstanding Shares on a fully-diluted basis, have been validly deposited pursuant to the offer (the "Offer") made by Agnico-Eagle to acquire all of the issued and outstanding Shares. All conditions of the Offer have been satisfied and the Offer has now expired and will not be extended. Agnico-Eagle has taken up all deposited Shares and will pay for such deposited Shares not later thanNovember 23, 2011.