Eldorado to hike gold production to over 500,000 ounces in 2020

Vanderhoof, a small community in northern British Columbia, has been told to expect a gold mine on its doorstep within 6 years. New Gold President and CEO Bob Gallagher paid a visit to Vandherhoof town council on July 20, telling local politicians the Blackwater gold mine should be up and running by 2017.

Goldcorp, the world's second largest gold miner, saw revenues increase by 62% over the 2010 second quarter, to $1.3 billion, on gold sales of 606,400 ounces. However, flooding, forest fires and problem equipment caused production to slip at some of the company's mines. Goldcorp downgraded its total expected gold production by six percent, from between 2.65 million and 2.75 million ounces to between 2.50 million and 2.55 million ounces.

Despite a flurry of mergers and acquisitions and a robust IPO market reports out on Wednesday suggest that fear is slowly replacing greed in the mining finance business. The Financial Post reports for investment bankers, the low-hanging fruit is long gone and the biggest financings are now high-risk: gold juniors in Africa, coal in Colombia and an infamous Quebec lithium play that overstated its resource. Global Mining Finance's July round-up says untrustworthy financial and resource reporting, threats of new royalty regimes, "super-profit" and carbon taxes, political turmoil, strikes and government takeovers are worrying resource investors all around the world.

The Zimbabwean reports Angloplat, the world's number one producer said it was optimistic about coming to an agreement with the Zimbabwean government over its Unki mine and Aquarius Platinum's record quarter was thanks to the performance of its Mimosa mine in Zimbabwe amid continuing talks. The government of Zimbabwe, the country with the largest platinum reserves outside number one producer South Africa, is demanding 51% of all foreign-owned mines operating in the country under its so-called indigenisation laws.

Spot potash prices for the standard grade leaving the port of Vancouver rose from $445 per tonne in May to $481 in June and $490 in July and is up US$111 since December according to the Scotiabank Commodity Price Index out on Wednesday. Scotiabank also said Canpotex, the marketing agent for Western Canada's three potash producers, is virtually sold out for the third quarter this year and a third price increase this year of $30 to $40 is likely.

Canadian Oil Sands Corp., which holds the largest stake in the massive Syncrude oilsands mine north of Fort McMurray, Alta., said Tuesday its second-quarter profits rose on the back of strong oil prices. Net income for the three months ended June 30 was $346 million, or 71 cents per share _ missing the average analyst estimate of 73 cents per share, according to Thomson Reuters.

Zimbabwe’s diamond production reached 2.329 million carats in the first half of 2011 with the bulk coming from the controversial Marange fields, Finance Minister Tendai Biti reported to Parliament on Tuesday. The Treasury expects production to ramp up in the second half to reach 8.2 million carats for the full year, which would be slightly lower than the 8.435 million carats mined in 2010.

Reuters reports US lawmakers approved legislation late on Tuesday setting a November 1 deadline for the Obama administration to decide the fate of a proposed $7 billion pipeline to transport Canadian oil sands crude to refineries on the Gulf coast and ease the glut in the Midwest hub. The price oil sands producers can charge for exports to the US is falling further behind the international benchmark because of the lack of pipelines and hedge funds have started to bet that the spread could go as high as $50/barrel leaving Alberta producers $75 million out of pocket per day.

Cenovus generated cash flow of $939 million or $1.24 per share diluted in the second quarter of 2011. Refining operating cash flow was $322 million during the quarter mainly due to improved refined product prices and higher throughput.