Mining News Today

Bolivia's hydrocarbons industry, viewed as one of the most unattractive in the region despite its massive natural gas reserves, got a much needed boost after state hydrocarbons company YPFB announced a five-year investment program of US$11bn.
YPFB president Carlos Villegas said in August last year that the company would need investment of US$11bn through 2026, which could suggest that Bolivian authorities are planning to accelerate works to finally increase stagnant natural gas production.
"I dream of having our state company becoming as important as Brazil's Petrobras or Venezuela's PDVSA," Bolivian President Evo Morales said at a ceremony to unveil the investment program.
YPFB's investment program will be financed by Bolivia's government, external financing sources and foreign firms that have announced new agreements with the company. YPFB officials said late last year that they had already obtained a US$1bn loan from Bolivia's central bank.
While Bolivia's government has frequently been depicted as hostile to foreign investment, especially after it nationalized most of its hydrocarbons industry, signals have recently started to emerge that the government may again be looking to attract foreign expertise.
Bolivia's government in late November said it was aware that nationalization of the industry in 2006 had not been sufficient to boost production and formed a company to promote and advance new hydrocarbons projects in the county.
Dubbed Empresa Boliviana de Industrialización de Hidrocarburos, the new firm was given a small budget and will seek to form partnerships with foreign companies.
"Bolivia shouldn't have to wait 60 years to get the industry going," the country's hydrocarbons minister Óscar Coca said.
Spanish oil major Repsol said in November it would invest US$1.5bn in Bolivia to increase natural gas production in the country. Russia's Gazprom and French oil major Total in 2008 signed an MOU with YPFB to invest US$4.5bn in a new natural gas project in Bolivia.
Brazil, meanwhile, also said this week that it was interested in investing in Bolivian natural gas infrastructure, according to Brazil's ambassador in La Paz, Frederico Cézar de Araujo.
According to the diplomat, Brazil could be willing to invest US$1.5bn-2bn in the neighboring country.
Average investors will still want to take a wait and see approach to the country, but signs that international majors are still interested in the country and YPFB's announcement could mean authorities are finally starting to increase production.
Also this week in Oil & Gas:

 

Brazil
- Brazil's attorney general's office is preparing to appeal an injunction that removed sugar and ethanol major Cosan from a government list of companies accused of using slave labor.
Cosan has said it had no knowledge of the situation. The company also said it has cancelled contracts with the sugarcane processor involved in the scandal.
- Mines and energy minister Edison Lobão confirmed the interest of Petrobras in acquiring a stake in Portuguese oil major Galp. According to Brazilian and Portuguese media reports, Petrobras is aiming to buy Italian major Eni's 33.34% stake in Galp.
- Brazil's gasoline will contain 20% ethanol from February 1 as opposed to the current 25% admixture rate. The measure, set to last for 90 days, was taken in order to minimize the impact of rising ethanol prices on the Brazilian fuel market.
Chile
- PetroMagallanes, the Chilean subsidiary of New Zealand's Greymouth Petroleum, announced that oil and gas has flowed from its Río del Oro-1A well on the Caupolicán block in the Tierra del Fuego region of southern Chile.
- Chilean fuel distributer Copec, one of the largest conglomerates in the country, will invest US$700mn in 2010 and aims to consolidate acquisitions made last year.
- Copec also finalized a long awaited contract with Chile's state oil company Enap.
Colombia
- Canadian oil junior Azabache Energy started a 2D seismic program to acquire 50km of data in Colombia. The company earlier in the month received approval to change its name to Azabache Energy from Argenta Oil & Gas.
Ecuador
- Ecuador is set to launch a biofuels pilot program in Guayaquil. The pilot project will create a 5% gasoline admixture with ethanol produced from sugarcane.
Peru
- State oil company Petroperú will list shares on Lima's BVL stock exchange in February in an effort to boost transparency.
- Petroperú and Spain's Técnicas Reunidas will sign the FEED-EPC contract for the modernization of the Talara refinery in Piura this month.
The project is slated to cost between US$1.2bn and US$1.3bn, although the final figure could be adjusted once engineering studies are complete.
- The Andean Development Corporation (CAF) approved a US$65mn loan for Maple Energy's US$246mn, 35Mg/y (133Ml/y) ethanol and biomass project in northern Peru.
Venezuela
- Tulsa-based service firm Helmerich & Payne expects its second fiscal quarter of 2010 to be impacted by US$20mn because of the currency devaluation recently announced by authorities in Venezuela.

RESULTS & FIGURES
Latin America-focused Global Energy Development produced 398,082b of net oil in 2009 compared to 438,007b during the previous year.
Oslo-based Norse Energy reported natural gas production from its Manati field in Brazil averaged 5.85Mm3/d in the fourth quarter of 2009. The volume represents a 7% increase from the third quarter last year.
Brazilian fuel distribution, gas and chemical group Ultrapar plans to invest 314mn reais (US$180mn) in its Ipiranga unit, Brazil's second largest fuel distributor, in 2010.
Ethanol sales by distillers in Brazil's center-south region, where 80% of the country's sugarcane is grown, reached 2.11Bl in December, according to the latest figures from Brazilian sugarcane and ethanol association Unica.
Of this total, 118Ml were exported and 1.9Bl went to the domestic market.
Norway's InterOil Exploration & Production, which operates in Colombia and Peru, produced 7,114b/d last month compared to 6,236b/d in November.
Peruvian consulting firm Maximixe claims there are 3.4Mha of deforested land in the country that could be used to cultivate biofuel crops.
Of the total, 75% are located in the Peruvian jungle in the departments of San Martín (1.4Mha), Loreto (950,000ha) and Ucayali (654,000ha).
Peru's fuel price stabilization fund has seen its debt surpass 400mn soles (US$139mn) as the oil price continues to climb.
Peru's liquid hydrocarbons production totaled 53.3Mb in 2009, up 20.7% from the previous year.
Canada's Talisman announced an international exploration program of US$700mn for 2010. Nearly US$500mn of that will be invested in potential new core areas and include the drilling of new wells in Peru and Colombia.

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Uranium One says Q4 output rose 42%

TORONTO – TSX- and JSE-listed Uranium One on Thursday reported fourth-quarter production of 1,2-million pounds, an increase of 42% compared with the group's attributable output in the third quarter of 2009.
Production for the full year rose 24% from 2008, to a best-ever 3,6-million pounds of uranium, the company said in a statement.
The production gains were mainly thanks to the successful ramp up in production at the new South Inkai mine, in Kazakhstan, Uranium One said.
The company also announced on Thursday that it had completed a C$270-million convertible debenture financing with a consortium of Japanese companies, and also received $20-million in dividends from its share of the Betpak Dala joint venture.
Uranium One owns 70% of the joint venture, which holds the Akdala and South Inkai mines in Kazakhstan.
The company also holds 30% of the Kharasan mine, and recently acquired a 50% holding in the Karatau mine, both of which are also in Kazakhstan.
The firm reported annual attributable sales of 3,2-million pounds of uranium in 2009, 44% higher than a year earlier.
Fourth quarter sales rose to a record 1,5-million pounds, more than triple the 0,4-million pounds reported in the third quarter.
Uranium One said it has received all the approvals it needs for its acquisition of the Irigaray in situ recovery central processing plant, the Christensen Ranch satellite ISR facility and associated uranium resources in the Powder River Basin, in Wyoming.
The deal is expected to close by January 31, and Uranium One aims to start first production from the Irigaray plant and Christensen Ranch well fields in 2011.
Finally, the company said it completed the sale of its 99% interest in the South Texas Mining Venture to Uranium Energy Corp, for 2,5-million restricted common shares in Uranium Energy, on December 18.

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Peru govt seizes $14m Doe Run financial guarantee

As pressure mounts on Doe Run Peru to reopen its La Oroya smelter, the government of Peru has seized the zinc and lead refiner's $14-million financial guarantee to make sure the company fulfils its environmental clean-up responsibilities.
Doe Run Peru announced a week ago that the smelter would not reopen in January as planned, drawing criticism from local authorities and workers.
The guarantee will be held until the company finishes the environmental remediation it is obliged to do, the country's Energy and Mines Ministry said in a statement on Thursday.
Once the work has been completed, the government will give the money back to the company.
The Ministry said it had also seized a $4-million guarantee in 2009 for the same reasons.
Up to now, Doe Run Peru has executed 52% of the environmental clean up project (known in Spanish as PAMA).
The remaining 48% requires a $160-million investment.
On September 24, Peru's Congress approved a law that extended to 30 months the term for the mining company to complete the PAMA programme, which includes the construction of a sulphuric acid plant, to reduce emissions, and the improvement of the copper circuit in the La Oroya plant.
The Archbishop of Huancayo, Pedro Barreto, criticized the company's decision to postpone the smelter´s inauguration, which means workers continue to endure “forced vacations”, he told local news radio station CNR.
On Thursday, Doe Run Peru, controlled by billionaire Ira Rennert, said it is seeking a “strategic partner” to finance the reopening of its shuttered smelter, Bloomberg News reported. “There’s a lot of speculation right now,” Doe Run Peru vice-president Jose Mogrovejo said.
Lima-based newspaper Caretas reported that Rennert is holding negotiations to sell the La Oroya smelter to Glencore International AG. Mogrovejo told Bloomberg that Doe Run does not plan to sell 100% of the smelter.

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Antofagasta Minerals options up to 65% of copper project in US - Chile

Chilean copper producer Antofagasta Minerals has signed an agreement to earn up to 65% in Duluth Metals' (TSX: DM) Nakomis copper-nickel project in the US state of Minnesota, the former reported in a statement.
Antofagasta agreed to invest US$130mn in the project over three years to earn 40%. If the company completes an economically viable feasibility study it can earn 25% more.
"This transaction is in line with our strategy to seek and acquire high quality mineral resources in order to improve our growth outlook in the long term," Antofagasta CEO Marcelo Awad said.
Nakomis has 274Mt grading 0.6% in inferred copper resources and also has nickel, platinum, palladium and gold.
Antofagasta Minerals is owned by London-based Antofagasta plc (LSE: ANTO), which in turn is controlled by Chile's Luksic group.

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National mine output to hit 5.73Mt this year - Cochilco - Chile

Chile's copper mine production is expected to rise to 5.73Mt this year from 5.34Mt in 2009 and in 2011 will reach 5.89Mt, according to the quarterly market research report by the country's state copper commission Cochilco.
Global mine output is expected to increase to 16.8Mt this year from 15.8Mt in 2009 and will reach 17.6Mt in 2011.
Peru, the world's second largest copper producer behind Chile, will fall from 1.23Mt last year to 1.21Mt in 2010 but rise to 1.22Mt next year, according to Cochilco.
The US, the third largest producer, will drop from 1.21Mt in 2009 to 1.17Mt this year but rise to 1.21Mt again in 2011.
China, the fourth largest, put out 1.06Mt in 2009 and will produce 1.13Mt this year and 1.22Mt in 2011, the report says.

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Xtierra reports favorable metallurgical tests linked to Bilbao feasibility - Mexico

Toronto-based Xtierra (TSX-V: XAG) has completed oxide metallurgical test work related to a feasibility study on its Bilbao silver-lead-zinc-copper project in Mexico's Zacatecas state, the company said in a statement.
"The oxide test results are extremely positive and indicate that we have a practical and economic solution to the processing and recovery for the oxide resources which represent approximately 40% of the total resource potential at Bilbao," said CEO Terence McKillen.
He added: "More importantly, it allows us to focus on open pit mining methods for the initial development of Bilbao, including all of the oxide and transition resources with the potential of extracting a significant portion of the sulfide resources before underground development."
The tests recovered 61.2% zinc, 41.0% lead, 66.7% silver, 71.0% copper and 55.0% gold, the company said.
Xtierra started the feasibility study in April 2009.
Bilbao has an NI 43-101 compliant 3.6Mt indicated resource with average grades of 3.53% zinc, 2.75% lead, 0.29% copper and 88.23g/t silver and 2.38Mt of inferred resources averaging 2.52% zinc, 2.79% lead, 0.28% copper and 83.08g/t silver, according to the company.

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Mining exports rise to US$1.7bn in November on better prices - Peru

Peru's mining industry exported US$1.72bn worth of metals and minerals in November 2009, rising 48.7% from US$1.16bn year-on-year, according to the latest figures from the country's central bank.
Two of Peru's main products, copper and gold, saw the total value of exports rise despite lower volumes shipped, thanks to higher prices.
The red metal brought in US$707mn in November compared to US$459mn year-on-year, while physical sales abroad dipped to 112,700t from 126,500t as average prices soared to US$2.846/lb from US$1.647/lb. The entire metals complex saw values sink drastically in late 2008 as a result of the global economic crisis.
Gold exports brought in US$587mn in the eleventh month of 2009, rising from US$411mn as volumes slipped to 520,400oz from 539,400oz.
Meanwhile, Peruvian zinc exports totaled 148,700t worth US$178mn in November, up from 134,700t worth US$71.8mn. Lead pulled in US$144m from the sale of 68,000t, up from US$48.8mn and 33,700t, the central bank figures show.
Exports of fine silver from Peru plummeted to just 0.4Moz in November 2009 from 3.2Moz year-on-year, taking revenue down to US$6.4mn from US$32.0mn.
Iron ore export income fell to US$27.7mn from US$39.8mn, though shipments inched up to 0.7Mt from 0.6Mt. Peru also sent abroad US$12.9mn worth of non-metallic minerals, down from US$15.6mn.
Mining products account for more than 60% of Peru's export revenue.

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Norsemont: Pampacancha drill results support resource expansion at Constancia - Peru

Drill results from the Pampacancha South prospect at Canadian Norsemont Mining's (TSX, Lima: NOM) Constancia project in Peru have shown 71.3m grading 1.61% copper equivalent, including 30m at 2.50%, the company reported.
Pampacancha South sits 3km southeast of the Constancia deposit. "These latest drill results take us a further step towards our vision to increase Constancia's global resource from its current 440Mt to more than 800Mt," said Norsemont president and COO Robert Baxter.
"Further drilling is planned to define and quantify a Cu-Au-Ag-Mo resource," Baxter added.
The results are the first from the current drill program at Pampacancha, which was discovered in September 2008. Additional holes yielded copper equivalent values of 1.10% over 49.3m, 0.93% over 28.4m and 0.92% over 20.5m.
Drilling is also underway at the Uchuicarco discovery 3.2km northwest of the Constancia deposit and will be followed by drilling at Yanaccacca 500m north of Constancia.
Norsemont also reported it has received authorization for drilling at the Chiloroya South discovery 5km south of Constancia from Peru's energy and mines ministry, and "significant" drilling is planned for the immediate future.
The Constancia feasibility study from September 2009 shows capital costs of US$846mn to build an open-pit mine and sulfide concentrator with nominal processing capacity of 50,000t/d. Output would be 149Mlb/y (67,675t) copper over 15 years, plus some gold, silver and molybdenum.

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National mining company launches operations - Ecuador

Ecuadorian president Rafael Correa has signed a presidential decree officially creating the national mining company or Empresa Nacional Minera (ENAMI EP), which will work towards two fundamental goals, the non-renewable natural resources ministry (MRNNR) said in a statement.
The first goal is to work on social environmental issues with small and artisan miners to help them develop sustainable businesses, deputy mining minister Carolina Bernal was cited as saying in the statement.
The second is to work with large-scale miners in developing major mining projects, both alone and alongside other mining companies.
ENAMI EP's general objective, however, is to manage non-renewable natural resources that are affected by mining in order to ensure they are used in a sustainable way and be present in all stages of mining activity to protect the environment and enforce respect for community rights.
The national mining company was created as public corporation with legal status, its own capital, and economic and admistrative autonomy.

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Junior roundup: Everton, Linear Gold, Lithium One, Kootenay, Galway, Excellon

Ottawa-based Everton Resources (TSX-V: EVR) reported that recent drilling with partner Linear Gold (TSX: LRR) at the Lechosa prospect of their Ampliación Pueblo Viejo property in the Dominican Republic returned 15m grading 1.27% copper, 14m of 1.23g/t gold and 22m of 83.7g/t silver in separate holes.
The phase 2 drilling was carried out in November-December and covered 761m in nine holes. Phase 3 drill work is to begin immediately, Everton said in a statement.
***
Vancouverite Lithium One (TSX-V: LI) reported initial results from ongoing sampling at the Sal de Vida lithium brine project in Argentina. Average values from 35 samples were 794mg/l (679ppm) lithium, 9,054mg/l (0.77%) potassium and 1,284mg/l magnesium, the company said in a statement.
Lithium One also reported the start of drilling that aims to test the depth and brine content of the project area, which covers 300km2 of the Hombre Muerto salt flat.
***
Step out drilling at Vancouver-based Kootenay Gold's (TSX-V: KTN) Promontorio project in Mexico yielded 3.0m grading 551g/t silver, 0.63g/t gold and 20% lead-zinc at the Ranch EM anomaly, the company said in a statement.
The current step out drill program has covered 4,274m in 13 holes on four prospect areas, Promontorio main pit zone, Ranch EM anomaly, Dorotea and Dorotea Northwest, Kootenay said.
A newly completed 43-101 technical report update recommends that future exploration focus on resource definition and assessing economics at the main pit zone, infill drilling at Dorotea and continued exploration drilling on extensions where mineralization has been shown.
***
Torontonian Galway Resources (TSX-V: GWY) reported surface channel and chip sampling at its California gold properties in Colombia has returned 28m of 16.6g/t, 34m of 3.8g/t and 16m of 4.5g/t at the Pie de Gallo area.
Sampling at other parts of the property also showed gold mineralization, including 36m of 2.6g/t. An initial hole has been drilled at Pie de Gallo with results expected in two weeks.
***
Toronto-based Excellon Resources (TSX: EXN) has unveiled assays for 13 holes at its Platosa property in Mexico, 10 of which continued the delineation of the 623 Manto identified in July 2009 and indicated it may extend further southeast.
Results included 1.15m grading 3,300g/t silver, 11.8% lead and 0.13% zinc, as well as 1.77m grading 1,470g/t silver, 4.9% lead and 7.3% zinc. The other three holes were drilled at the southwest corner of the NE-1 Manto and extended known mineralization there, including 1.45m of 602g/t silver, 5.27% lead and 14.1% zinc.
Drilling in 2010 will focus on the 623 Manto, areas near the Platosa mine and at the La Zorra area to the west.

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Miners restart protests to demand promised aid after restructuring - Venezuela

Former informal miners that accepted a mining restructuring plan being promoted by the Venezuelan government have restarted protests to demand the government pay funding promised to aid displaced workers.
"This time the protest will go on until we get a response from the government," a miners' spokesperson told BNamericas.
The miners held a similar protest in December, but received no response from the government.
The restructuring measure is designed to cut down on informal mining in the zone and eliminate concessions on the Caroní river basin and the Sierra Imataca area in order to protect water resources.
The program stipulates that miners who stop informal mining will receive loans to start up agricultural activities.

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Barrick sues New Gold over El Morro - Chile

Barrick Gold (NYSE: ABX) has filed a lawsuit against New Gold (TSX, NYSE: NGD) for exercising its right of first refusal on the El Morro gold project in Chile, according to a statement by New Gold.
In October Barrick made an agreement with Xstrata (LSE: XTA) to acquire the latter's 70% in the project for US$465mn, a deal that depended on New Gold not exercising its right of first refusal.
However, this month Goldcorp (NYSE: GG) made a deal with New Gold in which it agreed to pay US$463mn for the company to exercise the right and then transfer the 70% to Goldcorp, thus obstructing Barrick's plans to gain control of the stake.
"New Gold is unaware of any fact or circumstance that would support any of the allegations being made by Barrick and believes that the claim is completely without merit," read the company's statement issued Thursday. "New Gold intends to defend this action using all available legal avenues."
New Gold also owns the other 30% of the project.
Located in Chile's northern region III, El Morro has 8.3Moz of gold and 6.3Mlb (2.86Mt) of copper in measured and indicated resources.

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IN BRIEF Gold slips for first time this year, closes at US$1,151/oz on LBM

The price of gold trading on the London Bullion Market (LBM) slipped for the first time so far this year on Tuesday when it closed at US$1,151/oz, compared to US$1,153/oz the trading day before.
The US dollar, whose recent weakness had been propelling gold prices continuously higher since the start of the year, recovered some ground Tuesday against the euro and other currencies.

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MEM sees Doe Run agreement with concentrate providers by month-end - Peru

Peru's energy and mines ministry says it is confident that Doe Run Perú, which owns the halted La Oroya smelter in Junín, will reach an agreement with its concentrate providers by end-January.
The company was recently reported to be unable to meet the January 31 deadline for restarting the operation, the first in a 30-month timeline for getting the decades-old smelter running, financed and in line with environmental obligations.
The idea is that once the smelter is running, it will have cash flow to help sustain operations and obtain credit. In the meantime, workers have agreed to take a 50% pay cut until end-January to help the company restart the smelter, according to state news agency Andina.
"I am confident that by month-end the company will at least present an agreement with the providers," said deputy mining minister Fernando Gala in a statement from the ministry.
La Oroya produces 11 different metals and is known for having caused serious lead contamination around the town of La Oroya.

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MEM sees US$5bn in 2010 mining investment, approves norm to speed permitting - Peru

Investment in mining projects in Peru could reach US$5bn in 2010, considering the estimated US$30bn worth of projects in pipeline for the next six years, the country's energy and mines ministry (MEM) reported.
"Five billion dollars per year would mean a doubling of the investments seen last year, which were roughly US$2.38bn," said deputy mining minister Fernando Gala.
The official noted that the figure is an estimate, pointing out that mining investment varies depending on the stage of development of any given project and access to financing.
EIS EVALUATION OUTSOURCING
Meanwhile, MEM has approved a legal norm to allow the outsourcing of mining project EIS evaluations that aims to reduce approval times from 210 days to a maximum of 150 days, Gala said.
The change will apply to large-scale projects and will allow third parties that are not part of the ministry to work on EIS evaluations, the ministry said previously.

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Junior roundup: Ecometals, Li3, Strait Gold, U3O8, Oro Silver, Oroco, Xtierra

Toronto-based Ecometals (TSX-V: EC) reported it has entered into an agreement to sell its 90% stakes in Ecuadorian subsidiaries Condormining and Condorview to private Canadian company Alca Gold for US$9.0mn in cash.
The two subsidiaries hold the mineral rights, surface rights and physical assets of the Cóndor gold project in southern Ecuador. The remaining 10% stakes are controlled by a military affiliated office of Ecuador's government.
Ecometals will keep working at its Río Zarza exploration project in Ecuador and Serra do Navio manganese and Pedra Branca gold projects in Brazil.
***
Lima-based Li3 Energy (OTC BB: LIEG) has engaged Argentine mining consultants Rojas & Asociados as project manager for upcoming lithium exploration programs in Chile, Argentina and Peru, both firms reported.
Li3 aims to evaluate 15 lithium properties covering some 200,000 acres (80,937ha) with sampling, geophysics and drilling. The goal is to reach the preliminary economic assessment stage at priority targets by end-2010.
***
Toronto's Strait Gold (TSX-V: SRD) has closed the second and final tranche of a private placement for total proceeds of Cdn$541,900 (US$520,713), which it will use for working capital and to fund exploration at its Alicia copper-gold property in Cuzco, Peru, the company reported.
***
Torontonian U3O8 Corp (TSX-V: UWE) reported it has identified key geological and chemical characteristics for uranium upon analyzing a historic bore hole from Guyana's Roraima Basin.
From the bore hole and airborne geophysical data U3O8 has defined additional exploration targets where the aim is to identify drill targets for testing in 2010, the company said in a statement.
***
Vancouver-based Oro Silver Resources (TSX-V: OSR) has completed its earn-in acquisition of a 100% interest in the Ana Camila claim group adjacent to its El Compás gold-silver project in Mexico's Zacatecas state, the company said in a statement.
Ana Camila measures 320ha and covers the 500m northern extension of the El Compás gold-silver vein system, Oro said.
***
The latest results from phase 2 drilling at Vancouverite Oroco Resource's (TSX-V: OCO) Cerro Prieto project in Mexico's Sonora state include 22.5m of 4.36g/t gold, 26.0m of 2.96g/t gold and 19.0m of 2.99g/t gold, all in infill holes.
Results from step out holes include 61.0m of 0.20g/t gold including 7.8m of 0.55g/t gold.
Oroco drilled 8,576m in 42 diamond holes in 2009. The holes also yielded silver, lead and zinc mineralization.
***
Toronto's Xtierra (TSX-V: XAG) reported it has begun drilling on the El Dorado gold project in Mexico's Zacatecas state. Tecmin Servicios is carrying out the drill program, which initially contemplates 2,000m of underground and surface work.

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CF's petrochemical plant will not affect Shougang operations - report - Peru

Illinois-based fertilizer manufacturer and distributor CF Industries' (NYSE: CF) planned nitrogen complex in San Juan de Marcona in Peru's southern Ica region will not affect the operations of Chinese-owned iron ore producer Shougang Hierro Perú, CF's representative in Peru, Ismael Benavides, was reported as saying by local business daily Gestión.
"Shougang's operations are 5km to 10km from the planned petrochemicals pole," Benavides added.
On January 22, 2009, Peru's mines and energy ministry (MEM) declared San Juan de Marcona the site for the installation of a petrochemical pole and in October zoning for future plants was defined.
However, Shougang argues the land forms part of its concession area over which it holds the rights.
According to Benavides, the area where CF proposes to construct its ammonia and urea plants totals 1,970ha, which represents 3.3% of Shougang's 60,000ha total concession area.
The representative added that it was a mistake to say that petrochemical companies would have to pay a fair price to Shougang for land declared suitable for the development of the petrochemical pole as the land is state-owned and under the administration of the respective regulator.
"Any problem Shougang has, or any discussion, must be resolved with the state," Benavides said.
CF is coordinating the development of its project with MEM for which it plans to submit its EIS at the end of this month.

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Chariot holds "positive" public hearing on Mina Justa - Peru

Toronto-based Chariot Resources (TSX: CHD) has held a public hearing required as part of the environmental and social impact assessment (ESIA) for its 70%-controlled Mina Justa copper project in Peru, with a positive reaction from the community at San Juan de Marcona, according to the company.
A 30-day period is in place for any additional comments or observations by the public, after which the ESIA will move to the final government approval stage. The energy and mines ministry is in charge of the review process.
"We are pleased and reassured that our work in identifying and working with the various interest groups, together with regular communication meetings within the community, have had a positive impact and that we have advanced our ESIA to [the] next stage of the approval process," Chariot CEO Ulli Rath said in a statement.
Based on the original feasibility study, Mina Justa would produce 481,596t of copper cathode and 598,801t of copper in concentrates over an 11.5-year life, with startup capex of US$576mn. Ongoing optimization studies have shown that life-of-mine production could be increased by 427Mlb (193,865t).
Chariot is also making efforts to sell the company.

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Solitario, Votorantim plan 2010 exploration, 2011 feasibility work at Bongará - Peru

Denver-based Solitario Exploration & Royalty (Amex: XPL, TSX: SLR) reported that its partner on the Bongará zinc project in Peru, Brazil's Votorantim Metais, is planning to start road construction and underground access to the San Jorge deposit in 2010.
Metallurgical testing and 10,000m of surface drilling are also in the plan for this year.
The goal is to begin a detailed feasibility study in 2011, Solitario said in a statement.
Solitario noted that the timing of the 2010 activities depends on the receipt of permits, and Votorantim is updating the social risk impact assessment in parallel with archeological clearance activities and other permit requirements.
Approvals are expected during Q2, Solitario said.
Specifically, road construction will include some 18km of new roads to the deposit, which to date has been accessible only by helicopter or on foot. The companies plan 700m of underground workings.
Advanced metallurgical test work is due for completion during Q1, Solitario added.
Votorantim can earn up to 70% in Bongará by spending at least US$18mn on exploration and development and making annual cash payments of US$200,000 to Solitario until a production decision is made. The Brazilian would further finance Solitario's 30% interest until production starts in the form of a loan.

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Vulisango rejects new Simmers board

JOHANNESBURG - Disgruntled Simmer & Jack Mines (Simmers) empowerment partner Vulisango on Monday rejected the new interim Simmers board.

The JSE-listed Simmers last week announced Theba chairperson Vusi Khanyile as its new nonexecutive chair and Deon van der Mescht as CEO, both with immediate effect, Khanyile replacing Nigel Brunette and Van der Mescht replacing Gordon Miller.

Both Miller and Brunette have been under pressure to step down from Vulisango, Simmers announcing their resignations in December, but indicating that both would not relinquish their positions as chairperson and CEO of TSX-listed First Uranium.

"This move signifies the formal separation of Simmers and First Uranium. While the dual roles of chairperson and CEO served us well during the crucial development years, the time had come to separate the responsibilities," said Brunette.

John Berry would also move off the Simmers board in order to focus on First Uranium, in which Simmers has a 37% shareholding.

Ralph Havenstein, Colin Brayshaw, Sindi Koyana, Adrian Meyer and Nick Segal have been appointed as interim independent nonexecutive directors and Van der Mescht and CFO Gerhard Jacobs executive directors.

Vulisango condemned the pre-February 1 general meeting appointments as an "erosion of shareholders' democratic rights".

The empowerment company said that the exiting of Brunette, Miller and Berry have pre-empted a legitimate process, without the support of the major shareholders.

The newcomers, Vulisango added, were seriously compromised in terms of "this flawed" appointment process and created the impression that the new board had been legitimately appointed in accordance with shareholder scrutiny and election.
"This is a deliberate attempt to constrain the process of ushering in a duly elected and credible board as proposed by significant shareholders and supported by ourselves, at the forthcoming general meeting," Vulisango CEO Valence Watson commented.
Vulisango described First Uranium as one of Simmers' most valuable assets. It noted, however, that First Uranium was experiencing "serious cash flow, performance and compliance issues".

One of the key performance areas of the new Simmers board would be to consider First Uranium's turnaround options.

Given that the method of appointing the new board was tantamount to setting up a surrogate structure for First Uranium, the new board could not be expected to hold those that appointed them properly accountable for performance and compliance.

Watson said that the exiting management from Simmers were using First Uranium as a sanctuary and buying time that would enable them to execute further value-destructive schemes.

The board proposed by "significant shareholders" as well as Vulisango had the mining and corporate experience to correct the operational performance, reduce costs and to restore shareholder confidence.

Those proposed included former Harmony Gold CEO Bernard Swanepoel as nonexecutive chairperson; and Implats' CEO David Brown, Aquarius CEO Stuart Murray, former Africa Rainbow Minerals coal division executive William Osae, former Iscor, Harmony and Rand Uranium dealmaker De Wet Schutte and Nampak and Freeworld Coatings' Peter Surgey as independent nonexecutive directors.
Vulisango intends to proceed with voting in its board nominees in order, it said, to put the company on a new path that unlocks value and ensures compliance.

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Greystar eyes large Colombia gold mine project

BUCARAMANGA - Canada's Greystar Resources said it will start construction of its gold and silver mine in Colombia late this year, aiming to become the country's largest precious metals project in production.

Greystar plans to invest $600 million at its Angostura gold and silver mine with output beginning in the second half of 2012, Frederick Felder, Greystar's executive vice president told Reuters in an interview.

"Once this project reaches an average of 511 000 ounces of gold per year, it would become the country's largest gold mine in production," Felder said recently in Bucaramanga, where Greystar has its Colombian offices.

Angostura is also expected to produce an average of 2,3-million ounces of silver per year over a 15-year mine life.

The mine is slated to produce 214 000 ounces of gold and 1,1-million ounces of silver in 2012. But the mine would reach its peak capacity in 2014 when it hits 682 000 ounces of gold.

Angostura has 10,2-million troy ounces of measured and indicated gold reserves and 3,4-million of inferred resources. Additionally, it has 74-million ounces of silver reserves and resources, according to preliminary feasibility studies.

Greystar plans to invest an additional $300-million to run the mine through 2026 and spend as much as $2-billion in operating costs during the mine's life.

To help finance Angostura, Greystar recently secured around $100-million through an equity placement that comprised shares and warrants. The International Finance Corp, the private arm of the World Bank, invested around $11,5-million for a 13 percent stake in the company.

The company will soon hire investment banks to advise the company on how to keep securing more capital.

"We will be looking to having a financial advisor on how to move forward a combination of equity and loans depending on what the market says and how the project is received," Felder said.

Angostura is the country's most advanced gold project under way, said Arturo Quiros of the country Miners' Association, Asomineros, noting the company invested over $100-million in exploration studies.

Soaring gold prices and potentially rich unexplored gold areas are encouraging international mining companies to invest in Colombia, where President Alvaro Uribe has sent troops out to push back rebels still fighting in Latin America's oldest surviving leftist insurgency.

Greystar has applied to secure additional hectares potentially rich in minerals in four different Colombian provinces.

Greystar, which has been present in Colombia since 1995, halted its activities in Colombia in 1999 when a contractor was kidnapped. But the company did not leave and restarted its operations in the country in 2003 as security improved.

The country Miners' Association, Asomineros, says the Colombian gold industry could attract as much as $3,3-billion in investment over the next three years.

Key among the gold projects under way in Colombia is the AngloGold Ashanti's <ANGJ.J> mine La Colosa in Tolima province. The company announced it had found unproven reserves of 12,3-million ounces in La Colosa.

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Aurizon Mines expects lower output this year, but increasing in 2011

LONDON - Platinum group metals are positioned for a stellar year, with new investment vehicles in the United States seen as a precursor to a wave of investment buying in anticipation of a recovery in industrial demand.

The launch of platinum and palladium-backed exchange-traded funds on the New York market has given US investors their first opportunity to invest in the metals via an ETF.

"We think platinum will be the best performer this year," said Daniel Smith, an analyst at Standard Chartered in London.

"If you look at where we are in the economic cycle and where (mining) costs are as well in South Africa, platinum is quite a bullish story overall," he said. "The US ETFs are just adding fuel to the fire."

ETFs have already proved a popular way to invest in gold. The largest gold ETF, the SPDR Gold Trust, is the world's number six bullion holder ahead of China, Japan and Switzerland.

Ross Norman, director of TheBullionDesk.com, said if platinum group metals ETFs garner similar investment flows, they could attract some three-million ounces in the next four-six years. This could have a stabilizing effect on the market, he said.

"Many producers and consumers see (ETF investment) as a third leg to the demand side," he said, with such buying adding to industrial and jewelry demand.

"When prices are cheap, typically investors will buy and when they are expensive, they'll sell," he said. "So to an extent, they see it as a way of stabilizing prices."

The new US funds, operated by a US subsidiary of London's ETF Securities, started trading on January 8 on the NYSE Arca platform of the New York stock exchange.

An initial issue of 100 000 shares - each backed by a tenth of an ounce of the metal - was made prior to the launch of the platinum fund. Further shares will be issued on demand, and metal bought by the market maker to back them.

U.S. traders expect the new ETFs to spark significant new investment flows.

"Even if the new products have just a fraction of the success of the GLD, it puts a new demand quotient under the curve," said Frank McGhee, head precious metals trader of Chicago-based Integrated Brokerage Services.

"Platinum is a small market," he added. "Even a modest success puts a tremendous floor under the market." In Europe, buying of platinum group metals-backed exchange traded funds boomed last year. ETF Securities more than quadrupled holdings of its London-based palladium ETF in 2009, while those of its London platinum product more than doubled.

The other major operator of precious metals ETFs in Europe, Zurich Cantonal Bank, said its platinum-backed product also more than doubled in size last year.

CAR SALES SET TO RISE

Signs of economic recovery had already helped platinum and palladium to start breaking higher late last year. Prices rose steadily through 2009 after crashing to multi-year lows at the end of the previous year.

Platinum rose 58 percent and palladium more than doubled in value in 2009, and prices are extending those gains this year. Both hit their highest since mid-2008 last week amid news of the launch of the U.S. ETFs and signs industrial demand is rising.

"There are lots of reasons to believe that more industrial precious metals like platinum and palladium will outperform gold, because the industrial sector in general has been stronger," said Commerzbank analyst Eugen Weinberg.

Car demand specifically will be key for platinum group metals, over half of which is typically consumed by automakers.

Analysts say China, which overtook the United States as the world's largest auto market last year, is likely to post slower but more rational car sales growth of around 10 percent in 2010.

A strong end to 2009 for US and European car sales may also have set the industry up for a better 2010, they added.

Tom Kendall, precious metals strategist at Mitsubishi Corp, said while industrial uptake had not so far risen strongly, buying in expectation of an improvement in industrial demand and worries over supply were lending plenty of support to prices.

"People look at South Africa and find it hard to be positive about the chances of real improvement in the situation with regards to safety, labor relations, costs," he said.

South Africa is the source of four out of five ounces of the world's platinum, and a third of its palladium.

Analysts will be closely watching whether cuts to capital expenditure there, particularly given the slump in prices in late 2008 and early 2009, will curb output and lift prices.

Platinum reached a record high $2 290 an ounce in March 2008 amid fears over a shortage of South African supply, while palladium hit a seven-year peak the same month at $590 an ounce.

While few analysts are forecasting a return to those highs, early predictions are for the precious metals to stick to an upward trend in 2010.

"This year will be a PGMs year," one precious metals trader said. "That is really where the news is."

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Platinum takes centre-stage after US ETF launch

LONDON - Platinum group metals are positioned for a stellar year, with new investment vehicles in the United States seen as a precursor to a wave of investment buying in anticipation of a recovery in industrial demand.

The launch of platinum and palladium-backed exchange-traded funds on the New York market has given US investors their first opportunity to invest in the metals via an ETF.

"We think platinum will be the best performer this year," said Daniel Smith, an analyst at Standard Chartered in London.

"If you look at where we are in the economic cycle and where (mining) costs are as well in South Africa, platinum is quite a bullish story overall," he said. "The US ETFs are just adding fuel to the fire."

ETFs have already proved a popular way to invest in gold. The largest gold ETF, the SPDR Gold Trust, is the world's number six bullion holder ahead of China, Japan and Switzerland.

Ross Norman, director of TheBullionDesk.com, said if platinum group metals ETFs garner similar investment flows, they could attract some three-million ounces in the next four-six years. This could have a stabilizing effect on the market, he said.

"Many producers and consumers see (ETF investment) as a third leg to the demand side," he said, with such buying adding to industrial and jewelry demand.

"When prices are cheap, typically investors will buy and when they are expensive, they'll sell," he said. "So to an extent, they see it as a way of stabilizing prices."

The new US funds, operated by a US subsidiary of London's ETF Securities, started trading on January 8 on the NYSE Arca platform of the New York stock exchange.

An initial issue of 100 000 shares - each backed by a tenth of an ounce of the metal - was made prior to the launch of the platinum fund. Further shares will be issued on demand, and metal bought by the market maker to back them.

U.S. traders expect the new ETFs to spark significant new investment flows.

"Even if the new products have just a fraction of the success of the GLD, it puts a new demand quotient under the curve," said Frank McGhee, head precious metals trader of Chicago-based Integrated Brokerage Services.

"Platinum is a small market," he added. "Even a modest success puts a tremendous floor under the market." In Europe, buying of platinum group metals-backed exchange traded funds boomed last year. ETF Securities more than quadrupled holdings of its London-based palladium ETF in 2009, while those of its London platinum product more than doubled.

The other major operator of precious metals ETFs in Europe, Zurich Cantonal Bank, said its platinum-backed product also more than doubled in size last year.

CAR SALES SET TO RISE

Signs of economic recovery had already helped platinum and palladium to start breaking higher late last year. Prices rose steadily through 2009 after crashing to multi-year lows at the end of the previous year.

Platinum rose 58 percent and palladium more than doubled in value in 2009, and prices are extending those gains this year. Both hit their highest since mid-2008 last week amid news of the launch of the U.S. ETFs and signs industrial demand is rising.

"There are lots of reasons to believe that more industrial precious metals like platinum and palladium will outperform gold, because the industrial sector in general has been stronger," said Commerzbank analyst Eugen Weinberg.

Car demand specifically will be key for platinum group metals, over half of which is typically consumed by automakers.

Analysts say China, which overtook the United States as the world's largest auto market last year, is likely to post slower but more rational car sales growth of around 10 percent in 2010.

A strong end to 2009 for US and European car sales may also have set the industry up for a better 2010, they added.

Tom Kendall, precious metals strategist at Mitsubishi Corp, said while industrial uptake had not so far risen strongly, buying in expectation of an improvement in industrial demand and worries over supply were lending plenty of support to prices.

"People look at South Africa and find it hard to be positive about the chances of real improvement in the situation with regards to safety, labor relations, costs," he said.

South Africa is the source of four out of five ounces of the world's platinum, and a third of its palladium.

Analysts will be closely watching whether cuts to capital expenditure there, particularly given the slump in prices in late 2008 and early 2009, will curb output and lift prices.

Platinum reached a record high $2 290 an ounce in March 2008 amid fears over a shortage of South African supply, while palladium hit a seven-year peak the same month at $590 an ounce.

While few analysts are forecasting a return to those highs, early predictions are for the precious metals to stick to an upward trend in 2010.

"This year will be a PGMs year," one precious metals trader said. "That is really where the news is."

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Goldcorp beats output forecast in '09, expects 3,8Moz by 2014

TORONTO (miningweekly.com) – Goldcorp, the world's second-biggest gold-miner by market value, topped its own production guidance last year, and expects to increase output by around 50% over the next five years, to about 3,8-million ounces by 2014.
The company, which will release year-end financial statements on March 11, produced 2,42-million ounces in 2009.

Goldcorp said in January last year it expected to produce 2,3-million ounces, and increased the guidance to about 2,4-million in November.
Fourth quarter gold production was 601 000 oz, Goldcorp said in a statement on Monday.
The company still needs to finalise the 2009 numbers, but expects to report total cash costs of around $295/oz on a byproduct basis and about $390/oz on a coproduct basis.
“Executing to our plan remained our top priority throughout 2009,” said CEO Chuck Jeannes.
“Our mines all performed at or ahead of expectations, we advanced projects throughout our growth pipeline, including the commencement of regular production and concentrate sales from Penasquito, and we funded all of this progress from existing sources of liquidity without dilution of shareholders' equity.”

Goldcorp is nearing completion at the Penasquito mine, which shipped its first lead and zinc concentrates in November.

Ore processing throughput rates for the first sulphide processing line are now at operational production levels, and the company is making good progress toward completion and ramp-up of the second sulphide processing line in the third quarter of 2010, Jeannes said.

"Production of both lead and zinc concentrates have ramped up consistent with expectations and commercial production remains on track for the third quarter."

Goldcorp has mines in Canada, Argentina, the US, Mexico, Honduras and Guatemala. The company is in the process of acquiring Canplats Resources, which has a project in Mexico, and announced last week it will buy 70% of the El Morro project, in Chile.

The miner said it ended the year with about $865-million in cash at year-end, an undrawn $1,5-billion credit facility expects to generate about $1-billion in cash flows in 2010.

STEADY GAINS IN 2010
This year, the group confirmed that it expects to produce about 2,6-million ounces of gold, at a total cash cost of around $350/oz on a by-product basis and $450/oz on a coproduct basis.
Gold production levels on a quarterly basis are expected to ramp up steadily throughout 2010, and output gains will be spread across the company's operations, Goldcorp said.

The company also published its gold production forecasts for the next five years, repeating a promise made this time last year to increase output by around 50% over the next half-decade.
The new Penasquito mine, in Mexico, is the main driver of production growth over the period, but the Pueblo Viejo mine, which Goldcorp is developing with larger rival Barrick, will also make a significant contribution, the company said.
There will also be “incremental increases” at a number of the group's other large, long-life assets.

Goldcorp expects to produce 2,8-million ounces of gold in 2011, 3,1-million ounces in 2012, 3,4-million ounces in 2013 and 3,8-million ounces in 2014.

The Pueblo Viejo project, which is in the Dominican Republic, is scheduled to start production by the fourth quarter of 2011.

Goldcorp owns 40% and Barrick owns 60%.

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Mining bidding wars hint at M&A spree to come

TORONTO - A spate of hotly contested takeover deals in Canada's mining patch and steadily rising metal prices may drive busy dealmaking in 2010 after a lull in acquisitions last year, experts say.
And new sources of financing are opening up as banks slowly return to the lending game and commodity-hungry China opens its coffers to partners, providing plenty of incentive for larger players to feed on smaller developers.
"Most of the (miners') financial positions are much stronger than they were a year ago and everybody seems to be refocusing their attention on growth," said Haytham Hodaly, analyst at Salman Partners.
Goldcorp, which has been growing aggressively in recent years, is currently wrapping up two acquisition bids on foreign soil.
In Chile, the company said last week it would spend $513-million to acquire Xstrata's 70 percent stake in the El Morro copper-gold project, trumping an existing bid from rival Barrick Gold, the world's largest gold company.
Goldcorp also just finished fighting off Penmont, a joint venture of gold and silver heavyweights Fresnillo and Newmont, to clinch the takeover of Canplats Resources, which is focused on the Mexican mining space.
That followed Cliffs Natural Resources' victory over Noront Resources in a battle for Canadian chromite explorer Freewest Resources, and comes as royalty companies Royal Gold and Franco Nevada both bid for smaller rival International Royalty, with Royal winning agreement on a C$640 million offer.
The return of hostile bidding, which was a feature of the red-hot 2006-2008 M&A boom, suggests companies are again prepared to be aggressive to lock down new assets.
The recent activity follows a year of cautious rebound from the 2008 crash in metal prices. Industry players say that now, with gold having held above $1 000 since October and base metals still churning higher, potential buyers may have hit a point of comfort with the economics of adding assets.
"If the gold price and other metal prices remain strong ... then we would expect to see more (deals)," said Paul Burchell, an analyst at Dundee Securities.
In addition to Goldcorp, which wants to use El Morro as an entry into the red-hot Chilean mining space, other large-tier miners are seen as prime candidates to bulk up through M&A.
Uranium giant Cameco, which said last year that it could consider a deal valued in the $1 billion to $2 billion range, may now be ready to make such a move after selling its Centerra Gold subsidiary for about C$872-million in December.
Teck Resources (TCKb.TO), Canada's top base metals miner, said last fall it was "open for business" and thinking of acquisitions after a tough year fixing its balance sheet in the wake of its 2008 leveraged takeover of Fording Coal Trust.
CHINESE STAKES
Teck's rebuilding effort included selling a 17 percent equity stake to state-owned China Investment Corp for $1,5 billion, reflecting a growing trend among Canadian companies of turning to Asia as a source of capital.
Such deals, typically sales of minority equity stakes and often including a long-term supply deal, are expected to increase in frequency and in the size of companies involved.
"I think China is still looking to secure resources, and they certainly have a lot of foreign exchange reserves they want to deploy and one way to do that is to buy a copper mine," said David Whetham, a resource fund manager at Scotia Capital.
Other players seen in possible deals include HudBay Minerals, which has been rumored to be shopping a stake in its Fenix nickel project in Guatemala.
"There's a lot of discussions ongoing right now with bigger companies," said Glenn Ives, North American mining leader at accounting firm Deloitte.
Target companies can use the deal to leverage closer ties to a region expected to drive global growth in coming years.
Along those lines, Teck has also been in talks with Asian coal customers regarding taking on a partner for its coal business.
Teck Chief Executive Don Lindsay has said it would only pursue such a deal if it would lead to enhanced "business relationships".
The source of capital, meanwhile, should fund projects where equity or debt financing may not be an attractive option.
Asian capital "will probably mean that there will be more projects developed (in Canada), which actually will be hugely beneficial to the economy," said Deloitte's Ives.

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Golden Minerals Closes Previously Announced Transactions With Sentient and Hochschild

GOLDEN, CO--(Marketwire - January 8, 2010) - Golden Minerals Company ("Golden Minerals" or the "Company") (TSX: AUM) (PINKSHEETS: GDMN) is pleased to announce that it has successfully completed the previously announced transaction with Hochschild Mining plc and the previously announced private placement with The Sentient Group.
Under the terms of the transaction with Hochschild Mining plc ("Hochschild"), the Company has acquired Hochschild's 35% interest in the Minera El Quevar S.A. joint venture, which controls approximately 10,000 hectares of the 64,000 hectare El Quevar project, including the Yaxtche target area. The Company issued 400,000 shares of Golden Minerals common stock and warrants to acquire an additional 300,000 shares of common stock exercisable for three years at an exercise price of US$15.00 per share. Hochschild is a leading precious metals company listed on the London Stock Exchange, with a primary focus on the exploration, mining, processing and sale of silver and gold.
Under the terms of the private placement with The Sentient Group ("Sentient"), the Company has issued a total of 844,694 shares of common stock to Sentient, which includes 745,318 shares issued in the initial private placement plus an additional 99,376 shares issued upon exercise of Sentient's contractual pre-emptive right in order to maintain Sentient's 19.9% equity interest following completion of the Hochschild transaction. All shares issued to Sentient were sold at a purchase price of C$7.06 per share, which was established on December 7, 2009 under price protection rules of the Toronto Stock Exchange and reflects a premium to the 5-day volume weighted average price on that day, resulting in gross proceeds to the Company of C$5.96 million. Sentient is an independent private equity firm that manages over $1.3 billion of investments in the global resources industry.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its exploration projects and in providing mine management services. The Company has a portfolio of 35 exploration projects, primarily located in Argentina, Peru and Mexico, including the advanced stage El Quevar project in the Salta Province of northwestern Argentina and the Zacatecas project in Mexico. The Company's experienced management team has proven in house ability to explore, develop and operate mining projects. Golden Minerals operates the San Cristobal mine in Bolivia for Sumitomo Corporation under a Management Services Agreement.

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Junior roundup: Firestone, MAG, Ventana, Andes Gold

Edmonton-based Firestone Ventures (TSX-V: FV) has wrapped up work on phase 1 of its 2009-10 zinc-lead-silver regional exploration program in western and central Guatemala, the company said in a statement.
Crews collected 149 rock samples, 26 stream sediment samples and 1,033 soil samples with results expected later in January, at which point targets for further surface work and potential drilling will be evaluated.
Regional mapping and sampling and targeted drilling will restart in mid-January.
***
Vancouver's MAG Silver (TSX: MAG) reported the latest gold and molybdenum assays on drill holes at the Pozo Seco zone of its Cinco de Mayo property in Mexico include 44m grading 0.16% molybdenum and 0.27g/t gold.
Additional highlights are 65m of 0.10% molybdenum and 0.18g/t gold, as well as 39m of 0.12% molybdenum and 0.15g/t gold. The holes demonstrate that the moly-gold zone continues to the northwest and remains open toward recently acquired ground, MAG said.
Cinco de Mayo is in Chihuahua state.
***
Vancouver-based Ventana Gold (TSX: VEN) reported it has completed the exercise of existing option agreements for the El Cuatro, La Suiza and La Itala properties in Colombia, giving it 100% of the minerals rights for the three blocks.
The properties are within and adjacent to the La Bodega gold property, where another option agreement is under dispute with the land owners. Ventana has said the dispute is an attempt to invalidate the option agreement and is without merit. The case is in arbitration.
***
New York's Andes Gold (Pink Sheets: AGCZ) reported plans to begin a phase 1 assessment of a possible tailings processing operation in Ecuador. Andes has stockpiled 5,000t of tailings from some months of small-scale production on its own properties and a number of neighboring operations.
The idea is to begin processing the tailings, which could hold 3.5g/t gold, within the next several months, Andes said in a statement.

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IT needs in the mining sector focused on operational field, says Mincom

After having mostly covered their needs in the backoffice space, the main IT demands from the Latin American mining sector are now concentrated on the operational field, heavy industry enterprise software provider Mincom's Latin American president, Gary Poole, told BNamericas.
The mining industry contribution to Mincom's Latin American operations is over 80%, while globally it is around 45%.
Poole said the biggest problem in mining is related to lost opportunities in the operational area. "Companies lose a lot of money when they have large reserves, or underground reserves, as you won't know what's there until you mine it. Then you have to excavate, transport and crush it, and in each stage there are losses," he said.
According to the executive, today mining firms need solutions that provide transparency regarding where the losses are in the whole production chain.
Mincom has developed a new strategy to target the mining industry, which includes a new segmentation of the vertical.
"In the past we treated mining as mining. Now we are segmenting the market into commodities, and we are developing solutions for each of the commodities, in order to offer more value to those particular mining companies, over and above what we offer with our standard products to mining," Poole added.
The fastest growing segment within the mining industry is, according to Poole, the mid-tier market, including those that are just finishing exploration. For them, Mincom has launched its Accelerator solution, which comes preconfigured for their segments.
"We expect much of the revenue of mining to come from those mid-tier companies," Poole said.

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Mining royalties could be increased - minister

Brazil could ask mining companies to give a portion of output to the government, newspaper O Estado de S. Paulo reported citing mining and energy minister Edison Lobão.
New regulations currently being developed could also see mining royalties increased.
Current mining royalties of around two percent are insufficient, Lobão said, noting that mining royalties in other countries were sometimes as high as ten percent.
Brazil currently charges a 3% royalty on sales of aluminum, manganese and potassium, 2% on iron, coal and fertilizers, 0.2% on gemstones and 1% on gold.

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Yamana approves US$80mn exploration budget, discloses plans for 2010

Toronto-based miner Yamana Gold (TSX: YRI; NYSE: AUY) has approved an exploration budget of US$80mn for 2010, the company said in a statement.
The company also disclosed exploration objectives for 2010 in Brazil, Argentina, Chile and Colombia.
According to the statement, some of Yamana's areas of focus in 2010 will include defining the size and potential of a new mineralized zone at the Suruca mine, 6km northeast of the Chapada mine in central Brazil.
Also in Brazil, the company said it will provide a resource estimate at Caiamar by mid-2010 with a further update by the end of the year.
Since purchasing Caiamar in July 2009, Yamana has completed 28 holes totaling 14,000m of exploration drilling. A total of US$3.4mn has been budgeted for exploration and 25,000m of drilling is planned at Caiamar, located in central Brazil's in Goiás state. In the first year of drilling, Yamana will assess the deposit's potential and evaluate the potential of the regional Caiamar concessions, in addition to defining the orebodies, the statement said.
Caiamar is located 38km from Yamana's Pilar project, 300km northwest of capital Brasilia. At Pilar, Yamana aims to upgrade the mineral resource to the indicated category and increase total overall mineral resources.
At Yamana's Fazenda Brasileiro property the company seeks to extend mine life and expand its Lagoa do Gato mineral resource, continue defining new near mine targets and upgrade mineral resources to support future production. Lagoa do Gato is located 4km northeast of Fazenda Brasileiro, which is in northeast Brazil, 180km from Bahia state capital Salvador.
In Argentina, the company is expanding the resource at QDD Lower West in San Juan province and continue exploration efforts at Salamanca, 10km north of Yamana's Gualcamayo gold mine.
"Yamana recently completed a core drilling campaign comprised of 17 drill holes for a total of 3,000m concentrating on the Salamanca mineralized tensional gash," the company said.
Results to date continue to compare to results from the three known mineral deposits at Gualcamayo, which have mineral resource grades of 1.08g/t gold at QQD and 2.6g/t gold at both QDD Lower West and AIM.
In northern Chile, Yamana is upgrading known deposits at El Peñón from 500,000oz gold equivalent to the indicated mineral resource category. Also, the company said it is expanding the footprint of Minera Florida with successful exploration at Chancón-Membrillo. The objective at Minera Florida is to upgrade 150,000oz gold equivalent to the indicated resource category.
"With that objective completed, 2010 exploration will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources to the indicated resource category and a broader regional exploration program," the statement said. "The 2010 exploration program is to include 69,500m of exploration drilling and 24,550m of infill drilling with a budget of US$18.4mn, US$5.8mn higher than the original budgeted amount."
In central Colombia, Yamana recently acquired an exploration concession and project called Solferino in the province of Antioquia.
"Colombia remains within Yamana's geographical focus on stable jurisdictions in the Americas. Yamana believes Colombia has significant exploration potential," the statement said.

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