Reuters reports Canadian gold miner IAMGold is on the look-out for acquisitions and while it is not itself up for sale, its chief executive said on Friday the company represents good value right now.
IAMGold has in the past said interested in various stage projects, from exploration through to production and just over the last fortnight has put money into three South American juniors. IAMGold produces roughly 1 million ounces per year from operations in Africa and North and South America and sees bullion topping out at $2,000 an ounce this year or next from current levels around $1,790.
Rainy River Resources' received a 3.2% bump on Friday after the Toronto-based company released a highly positive preliminary economic assessment of its property in Western Ontario. Friday's move also came after Canaccord Genuity upgraded the stock to speculative buy. Rainy River is up more than 9% over the last two days and is worth some $600 million on the Toronto big board.
The study envisions an open pit and underground operation that would have life-of-mine average annual production of 329,000 oz of gold and 497,000 oz of silver. In the first four years of the 13-year mine-life, the average cash cost net of silver credits is estimated at $417/oz of gold generating over $1.6 billion free cash flow at current metal prices.
Reuters reports the US move to put off a decision on TransCanada Corp's proposed $7 billion Keystone XL pipeline for 18 months is a significant blow for Ottawa, which has strongly backed the project.
The Canadian government and the Alberta oil industry will now turn their attention to the 1,170km Northern Gateway pipeline project from Alberta to a new marine terminal in northern British Columbia to serve Asian markets. But the $5.5 billion project which has significant Chinese backing, is already almost a year behind schedule and would not go into operation in 2017 at the soonest. Even this schedule is optimistic: starting in January, an unprecedented 4,000-plus people – mostly greens – will speak for a collective 650 hours at public hearings.
Treasury Metals (TSE:TML) failed to generate excitement this week from news that it has doubled the resource estimate at its Goliath gold project near Dryden, Ontario.
The stock barely moved on Wednesday, opening and closing at $1.05. It was down around 5 cents in mid-day trading on Thursday.
The Alberta oilsands has a new kid in town.
Calgary Herald reports that Grizzly Oil Sands, a privately-owned company, has been approved for an 11,300 barrel-per-day, in-situ oilsands project southwest of Fort McMurrray:
Cabinet approval for the project was given this week after approval was sought last year but chief executive John Pearce said the process of engineering and ordering equipment is already well underway.
The company expects first production by early 2013, and to grow production at its other property to 60,000 bopd by 2020 reports The Herald.
Mining Review reports the decision last week to allow Zimbabwe to resume diamond exports from the controversial Chiadzwa and Marange alluvial fields is being questioned, after the country's mines minister admitted on Thursday that smuggling was still rife. The comments are in stark contrast to his previous insistence that the country's diamond industry was meeting international trade standards.
Zimbabwe is set to earn over $2 billion per year from exports with current diamond output estimated to be in excess of 25% of world production. Rough diamond prices have dropped by more than 10% over the last two months and is set to fall further as the first Marange diamonds come onto the market by the end of this month.
Diavik Diamond Mines (DDMI) wants to harness the wind to help extract diamonds from beneath the earth.
The company — which operates the huge Diavik operation in the Canadian Arctic through a joint venture between DDMI, Rio Tinto (LON:RIO) and Harry Winston Diamond Limited Partnership (TSE:HW)— said earlier this week it has begun constructing a wind farm at the mine to supplement diesel power.
Despite a pre-feasibility study packed with good news and an ever-louder drumbeat suggesting an imminent takeout, Western Potash sank 6.67% on Wednesday, a day the broader market managed to keep losses to less than 3%.
Western Potash said on Monday it is upping the projected capacity of the Milestone project by 12% to 2.8 million tonnes per year and surprised by lowering its capex and opex cost projections. Scotia Capital commented that state-owned entities from Brazil, India and China could be interested in Western Potash to secure supply outside of Canpotex and Russian producers which together control around 57% of global supply.
A proposed coal mine near Hudson's Hope, BC, got a billion-dollar shot in the arm today.
The BC government reports that CKD Mines, which is developing the Gething metallurgical coal project, will receive $1.36 billion through two separate investments coming from Chinese companies — the first, $860 million, is from CKD Mines, a partnership formed in 2010 that includes the Kailuan Group Co., Ltd, Shougang Group and Canadian Dehua International Mines Group Inc.