Avion Gold Corporation and Avocet Mining PLC are pleased to announce that they have executed a Definitive Agreement in relation to the previously announced transaction pursuant to which Avion has agreed to acquire a 100% interest in the Hounde Group concessions in Burkina Faso.
For full pressrelease, see this LINK
Orvana Minerals Corp. is sad to report that a contractor Orvana’s subsidiary in Spain, was fatally injured when his excavator overturned in an unfortunate accident on July 1,2010.
For full press release, see this LINK
Update Prime Minister Julia Gillard has slashed the mining tax rate and cut the types of resources affected in order to secure an agreement with mining companies – lopping $1.5 billion from expected revenues in the process.
- New tax will apply only to iron ore and coal
- Tax to be capped at 30 per cent
- Key promise of lifting super will be kept
- Plans to cut company taxes will be halved
- Budget still to return to surplus by 2013
By O B Research
When we write this, gold is approximately 2% off its all time high, yet the stock of quality gold producers are lagging big time. Of course some of that can be explained by the general market view, which certainly is not very rosy right now. However, we sense there is some scepticism in the air, and also maybe a bit of “summer doldrum fear”. We feel quite strongly, that selling now and stand on the sidelines for a couple of months, can be a big mistake. Not to say a costly one.
The average gold price for the second quarter should come to around $1195/oz, resulting in the highest quaterly price average in history. Add to that, lower cash cost for those producers with cost in another currency than the currently strong US$, an excellent example would be our top pick OceanaGold with their cost being in NZ$.
All in all, we are convinced that when the quarterly reports starts coming out end of July, the market will be greatly surprised by the profit margins that will come to light. We do not believe the gold stocks are ready to “cut loose” from the general market just yet, so in crasch scenario, gold stocks should also go down, but maybe less than the general market. Hopefully the markets stay stable and if so, we are convinced that today’s prices are bargains in many of the mid tier’s.
Team O B Research
The expanded exploration program includes a drilling program and technical/economic assessments for a potential Reefton underground operation. Historical production and recent drilling suggests continuation of economic mineralisation below the Globe Progress pit. This will be analysed for the potential to exploit via underground methods in addition to likely expansions of the current open pit. Following the drilling campaign, a pre-feasibility study will be undertaken.
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