Gold Price

The gold price has broken out to the upside on a long term triangle. I would have expected a much larger rise, based on the diamond pattern last week. If the price breaks out above the $650-$660 range we could see a $750 broken very quickly.

Gold Report Australia – www.goldreport.com.au

Weekly Gold Report

The top 5 announcements for the week ending the 26th of Jan 2007

Goldstar Resources NL has notified the ASX that EPIC Pacific Rim LLC has acquired almost 21 million shares in Goldstar, on market, for $13.45m. This purchase gives EPIC Pacific Rim LLC a 16.78% shareholding and voting right. 

Highlands Pacific Ltd has been notified that Xstrata will exercise their option to acquire 81.81% of Highlands stake in the Freda River Project in PNG. The project will operate as a Joint Venture and exclude the Nena Deposit. Xstrata still has an option over the Nena Deposit, which it can exercise for payment of $10.8m, plus other terms and conditions. 

Beaconsfield Gold NL has agreed to pay Macquarie Bank $2.85m for the inter-company debts of Allstate Exploration NL and has also reached agreement with Newmont Australia Ltd to buy their interest in Allstate for $1.4m. Macquarie Bank will gift the payment “to the benefit of the employees of the mine”. The Beaconsfield/Macquarie payment will be made in two stages, with the first $700,000 on execution of documentation and the remaining payment of $2.15m once the mine has re-opened and reached commercial production levels. 

View Resources Ltd has announced the completion of the full hedge book program for the Brozewing deposit. View has locked in 175,000 oz at a flat forward price of $900/oz and also acquired 150,000 put options at a strike price of $830/oz. This gives the company an average margin of around $300/oz and significant upside for about 60% of production, if the gold prices goes over $830/oz. 

Lihir Gold Ltd has added an extra 4.4 Moz of gold reserves to the Lihir gold deposit in Papua New Guinea. The gold mine now has a Proven and Probable Reserve base of 258.5 Million tonnes @ 2.83 g/t gold for 23.6 Million oz (Moz). The increase has been due to the increase in the gold price assumption to $475/oz, lowering the cut-off grade, adjustments to cots assumptions and enhanced pit shell design that incorporates new mineralisation.

Gold Report Australia – www.goldreport.com.au

GRA Weekly Report

These are the top 5 announcements for the week ending the 19th of Jan 2007

Bolnisi Gold NL has announced an initial gold/silver resource at the La Patricia prospect in Mexico. The Non-JORC compliant Inferred resource is stated to contain 3.6Mt @ 1.49 g/t Au and 35 g/t Ag for 171,000oz gold and 4.03Moz silver. A low cut-off of 0.15g/t Au and 10 g/t Ag has been used and been converted to a gold equivalent of 0.8 g/t. 

Lihir Gold Ltd announced an update to the market regarding the merger between Lihir Gold Ltd and Ballarat Goldfields NL. The merger is to be achieved through a scheme of arrangement, requiring Ballart shareholder approval through a vote to be conducted on the 12^th of February 2007. Lihir Gold is offering 5 shares for every 54 shares in Ballarat Goldfields. 

Oxiana Ltd evaluated recent drilling at the Prominent Hill project and has concluded that the drilling clearly demonstrates that the Copper-gold system extends at least twice as far as previously outlined and that there is high potential to significantly expand the Prominent Hill resource. 

PlatSearch NL have signed a Joint Venture with Newcrest Operations Ltd (Newcrest) over the Mirikata project in the Gawler Craton, located approximately 20 SW of Oxiana’s Prominent Hill project. The basic earn-in terms are for Newcrest to spend $2m over 5 years to earn 70%, with a minimum of $100,000 to be spent by 30 June 2007. 

Norton Goldfields Ltd have entered into an agreement to acquire the Mount Morgan Gold Mine Tailings Project. The project contains about 4 million tonnes of tailings and mullock containing 225,000oz of gold at an average grade of 1.69 g/t Au. About 180,000 oz is expected to be recovered over a four-year period. The project also contains a further 4 million tonnes of low-grade sulphide tailings and 6 million tonnes of slag.

Gold Report Australia – www.goldreport.com.au

Gold Price breakout

The gold price appears to be forming another diamond pattern. This is almost identical to the pattern that formed late last year and which resulted in a $40 upward movement.

GRA Weekly Report

These are the top 5 announcements for thew week ending 12-1-2007

Bendigo Mining Ltd has ceased production to focus on exploration and building reserves in more productive areas of the goldfield. The company achieved a head grade of 4.7 g/t Au for November and December, which was significantly lower than expected results and was attributed to over-estimating the potential of historic areas.  The plan over the next 18 months is to test a 2 million oz Inferred resource target to a depth of 1,200 metres.The Managing Director and CEO, Mr Doug Buerger, and the General Manager Geology, Mr. Garry Johansen, have both ceased employment with the company. The Chief Operating Officer, Mr. Rod Hanson will assume both roles.The company will also write down $90 million of non-current assets, subject to audit opinion, generating a substantial loss for the current financial year.Bendigo shares dropped by 60% on the strategy change and St. Barbara Mines Ltd acquired 10% of the issued shares in Bendigo Mining on Friday. 

Agincourt Resources Ltd have confirmed the presence of the a significant new gold and silver mineralised Epithermal system at the Kapur Gambir district, with mineralisation having been intersected over a strike length of 800 metres and is open in all directions. 

Emperor Mines Ltd has reported that members of the military forces entered parts of the Vatukoula gold mine, claiming that they were acting under orders from the senior commanders in Suva. Soldiers entered the mine, identified themselves, demanded keys, entered company property and occupied parts of the mine complex, claiming they were under orders to secure the mine. 

Beaconsfield Gold NL has asked for shareholders to renew their approval of the issue of 60 million shares to sophisticated and professional investors should the opportunity arise to secure full ownership of the Beaconsfield gold mine. Beaconsfield Gold has made an offer to Macquarie Bank for the unsecured debt of the Allstate group. 

Goldstar Resources NL has confirmed that all major asset of the company were secure and had suffered no damage as a result of the bushfires at Christmas. The company has also commissioned the skip-way haulage system that will be used for the bulk sampling program at the Eureka Project.

Gold Report Australia

GRA Weekly Report

These are the top 5 announcements for the week ending 5-1-07

Oceana Gold Ltd announced that dry commissioning of their plant at the Reefton Gold Project, on the south island of New Zealand, has started. The Reefton project is a surface deposit of 6.65 Mt @ 2.56 g/t Au and the 1Mtpa plant is expected to produce about 500,000 oz over a 7 year mine life. 

Diatreme Resources Ltd is in the process of spinning out its 13 gold tenements and it’s interest in the Tick Hill Gold Project into a new company called Xtreme Resources Ltd. A prospectus is being prepared with a view to applying for admission to a recognised stock exchange. 

Haoma Mining NL has begun production from its Bamboo Creek plant, with 1.75kg gold and 4.4kg of silver were produced from stripping 2.5 tonnes of carbon. The plant is currently operating 24 hours per day and processing an average of 700 tonnes of low-grade ore per day and is cash positive at the current rate of production. 

Intrepid Mines Ltd has completed drilling to test the down dip extension of the Paulsens orebody to 490 metres below surface, with the best drill results being 10.7m @ 15.8 g/t Au and 4.8m @ 68.4 g/t Au. The deepest significant intersection was 150m below the base of the current reserve. 

Perseverance Corporation Ltd has reached the 90% ownership of Leviathan Resources Ltd, which has now triggered the compulsory acquisition of the remaining shares in Leviathan.

Gold Report Australia – www.goldreport.com.au