Gold price plunges to February lows

Silver Quest Resources (TSX VENTURE:SQI) ("Silver Quest" or "the Company") is pleased to report drill results from 11 holes (BW-171 through BW-179, BW-181 and BW-182) drilled in the current 20,000 metre drill campaign to expand the resources on the Davidson Gold Project claims, a joint venture with New Gold Inc., which is the operator of the joint venture. Silver Quest has a 25% interest in the joint venture. The project is approximately 110 kilometres southwest of Vanderhoof, BC.

BHP Billiton is confident about sustained growth in China despite the worldwide market turmoil, Chairman of the world's biggest miner said on Wednesday. Speaking at a business lunch in Sydney, BHP Billiton Chairman Jacques Nasser said the global market turmoil has not changed the company's view of sustained growth in China. China buys about 30 percent of BHP's exports, and Nasser says the company is positive about China's future.

This year Ukraine will start its own large-scale gold mining, according to the representative of the State Service of Geology and Mineral Resources of Ukraine Eduard Stavyts'kyi. The ministry official confirmed that Ukraine's gold resources have been estimated at 2,500-3,000 tons. The State Service of Geology and Mineral Resources of Ukraine explain the decision to begin mining Ukraine's gold deposits by the radical growth of the world price of gold.

Lundin Mining is once again the target of takeover speculation, after the Daily Telegraph fed the rumour mill with talk of JP Morgan advising BHP Billiton and Belgian zinc miner Nyrstar on a joint bid for Lundin. The market reacted favourably to the speculation on Tuesday, bidding up the stock by 14.5% on the TSX, but seasoned investors in Australia say a takeover by BHP is likely not in the cards.

AUSTRALIAN miner Cockatoo Coal has put its Taabinga thermal coal project in Queensland up for sale, an informed source said today, in the latest sign that deal-flow in the coal sector is accelerating. Sydney-based Cockatoo - one of a handful of listed Australian companies with producing coal mines - has appointed advisory firm RFC Corporate Finance to handle the sale of the Taabinga project, which has an estimated 252 million tonnes of undeveloped coal resources.

Gold hit $1,800/oz on Tuesday and closed the day at $1,743/oz due to ongoing turbulence in the financial markets According to MarketWatch, gold has gained 23% this year and has risen 5.5% alone this week. The Federal Reserve, which met Tuesday morning, issued a statement expressing surprise at the slow economic growth.

The ban on iron ore exported from the state of Karnataka is having downstream effects on the supply of Indian steel, according to a story today in The Hindu Business Line. Quoting sources in the Bellary-Hospet region, the website says before the export of iron ore was banned in Karnataka in 2009, the state was producing about 42 million tonnes of iron ore and exporting 28 million tonnes. The following year, after the ban was implemented, 33.6 mt was produced, of which only 7.4 million tonnes was exported. But if all the iron ore pellets were used for sponge iron, pig iron and steelmaking, 41 million tonnes or iron ore would be required, or 33 million tonnes if the mills run at 80% capacity, leaving a significant supply shortfall, Hindu Business Line explains.

Mining companies in Peru invested $2.95 billion in the first half of 2011, up 70% compared to the same period last year, the government said.

Economic jitters continue to drive gold higher, which hit $1,782.50/oz on Tuesday. Stock markets bounced back after yesterday's gut wrenching fall. The S&P/TSX Composite index was up nearly 3% from yesterday. The S&P/ASX 200 did not perform as well and rose 1.22%, making most of the gains later in the day. The oil and gas sector, which suffered some of the worst losses on Monday, rebounded strongly. The Dow Jones U.S. Oil & Gas Index was up 3%.