Barrick Gold is the undisclosed bidder for Detour Gold

By Bloomberg News

(Bloomberg) —Barrick Gold Corp. is the undisclosed gold miner who was asked to sign a confidentiality agreement alongside activist investor John Paulson to discuss potentially buying Detour Gold Corp., according to people familiar with the matter.

While Barrick’s level of interest in Detour is unclear, neither Paulson nor Barrick signed the confidentiality agreements, said the people, who asked to not be identified because the matter isn’t public. Paulson has held previous discussions about Detour with Barrick, they added.

A representative for Detour declined to comment. Representatives for Barrick, Detour and Paulson declined to comment.

Paulson & Co. Inc., the billionaire investor’s hedge fund, said Thursday it intends to call a special meeting of shareholders to replace most of Toronto-based Detour’s board, after it rejected its request to run an auction.

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Dollar and gold falters as Trump hits fed, stocks drop: markets wrap

By Bloomberg News

The dollar erased most of its gains and treasuries strengthened after President Donald Trump criticized the Federal Reserve for raising interest rates. U.S. equities were mostly lower as financial shares led declines.

Commodities tumbled into correction territory earlier Thursday, sliding again in the face of the resurgent dollar and lingering global trade tensions. Among the recent milestones: Copper dipping below $6,000. West Texas Intermediate crude tested $68 before rebounding. Gold crashing through $1,220.

Trump expressed frustration with the central bank in an CNBC interview. The critique follows Fed Chairman Jerome Powell’s upbeat assessment this week of the domestic economy. The greenback had rallied for three consecutive days after Powell pledged to continue to tighten policy to keep the domestic economy from overheating, pressuring emerging market assets and commodities.

“The market is already challenging the notion that the Fed can tighten as much as it has been projecting, but even so, it does throw a bit of a monkey wrench into that debate,” said Mazen Issa, a senior foreign-exchange strategist at TD in New York. “This is a knee jerk reaction.”

While Powell’s comments that the U.S. economy may not yet have reached full employment helped cement investor expectations for the path of monetary tightening, the strengthening dollar has done little to lift the mood elsewhere. The immediate focus in the stock market remains on company results, but trade threats are never far away. China said on Thursday it doesn’t want a trade war, but isn’t afraid of one.

The dollar’s advance had weighed on emerging-market assets and commodities such as copper sold off. The pound slumped as tensions over Brexit endured and retail sales figures disappointed.

These are the main moves in markets:


The S&P 500 Index fell 0.2 percent as of 2:18 p.m. in New York. The Dow Jones Industrial Average eased 0.3 percent. The Nasdaq Composite Index slumped 0.2 percent. The U.K.’s FTSE 100 Index gained 0.9 percent. The MSCI Emerging Market Index slumped 1 percent. The Stoxx Europe 600 Index fell 0.2 percent.


The Bloomberg Dollar Spot Index was flat after rising as much as 0.6 percent. The euro rose 0.3 percent to $1.1672. The British pound dropped 0.3 percent to $1.3035. The Japanese yen gained 0.6 percent to 112.18 per dollar. South Africa’s rand climbed 1.7 percent to 13.50 per dollar.


The yield on 10-year Treasuries fell three basis points to 2.84 percent. Italian 10-year yields were little changed at 2.51 percent. Germany’s 10-year yield fell one basis point to 0.33 percent.


West Texas Intermediate crude rose 1.5 percent to $69.76 a barrel. Gold fell 0.3 percent to $1,224.35 an ounce, after reaching the weakest level in more than a year.

(By Sarah Ponczek)

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Paulson & Co to ask Detour Gold for special meeting for board overhaul

By Reuters

Activist investor John Paulson’s hedge fund on Thursday said it would urge Detour Gold Corp to call a special shareholder meeting to replace a majority of the company’s directors, as it pushes for change at the Canadian gold miner.

Paulson & Co’s statement comes a day after the parties engaged in a heated public exchange over Detour’s failure in publicly disclosing a buyout offer.

Detour did not disclose the buyout offer to Paulson because the company was aware that a third party had already informed him about it, the gold miner said in its latest statement.

The company on Wednesday asked the Ontario Securities Commission (OSC) to investigate Paulson, accusing it of “concerning and unlawful behavior” after the hedge fund put out a statement disclosing a buyout offer for Detour from a gold miner.

Paulson called the accusations “false and misleading” and said the hedge fund was in contact with the OSC before it put out the statement.

Paulson & Co, which has a 5.4 percent stake in the gold miner, said on Thursday that the OSC had not reviewed the hedge fund’s statement. The Canadian market watchdog had not “expressed its views on any of the issues raised by Detour and Paulson,” the hedge fund said.

Paulson & Co has threatened to replace Detour’s board if it does not successfully explore strategic alternatives, including a sale, and look for a new chief executive.

Paulson & Co said it would request for the shareholder meeting to be held no later than Sept. 28.

(Reporting by John Benny in Bengaluru Editing by Saumyadeb Chakrabarty and Anil D’Silva)

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Paulson plans to replace Detour board, explore sale of company

By Michael Allan McCrae

Paulson & Co. will move forward with its efforts to replace a majority of the Detour Gold’s board and explore the possible sale of company.

In a letter release today, Paulson also said Detour had been “approached by a major gold mining company interested in potentially acquiring it.”

Detour Gold is up 13% to $13.93. The company’s 52-week range is $9.11 to $17.86.

Detour Gold (TSX:DGC), an intermediate gold producer with an open pit mine in northeastern Ontario, has clashed with the billionaire hedge-fund manager. Last month Paulson sent a letter to the company asking it to put itself up for sale. Paulson criticized management and poor stock performance.

In today’s letter Paulson took issue with how Detour handled a major interested in acquiring the company.

Last Friday Michael Kenyon, Interim CEO of Detour Gold, sent an unsolicited written communication to Paulson selectively disclosing non-public information that the Company has been approached by a major gold mining company interested in potentially acquiring it. As part of the communication, Detour Gold stated it would only sign a confidentiality agreement with the interested party only if both the party and Paulson agreed to a stand-still, even though Paulson has no affiliation with the major mining company. In light of such approach, Paulson requested that the Company’s board immediately disclose such material to all shareholders and the investing public and announce a formal process to evaluate all strategic opportunities. In addition, Paulson & Co. has constructively asked the independent directors of the board to reconstitute the board and to announce a search process for a new CEO simultaneous with a review of strategic alternatives. To date, the Detour Gold board has failed to do so, therefore Paulson is issuing this press release so that all Company shareholders and the wider public have the same information as Paulson.

Detour told Bloomberg it has no comment on the matter.

Creative Commons image of open pit mine courtesy of Mines CERSE

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Colibri Resource intersects 61 metres with an average grade of 0.75 grams per tonne gold

By Editor

Colibri Resource corporation intersected 61 metres with an average grade of 0.75 grams per tonne gold including 1.5 meters of 17.3 grams per tonne.

The Maritime-based junior is drilling its Pilar Gold Project in Sonora, Mexico.

The objectives of the Phase 1 drill program at Pilar have been to confirm continuity within previously interpreted zones of mineralization, discover extensions to the known mineralization, and explore locally for new zones of gold mineralization.

“Our model for the Main Zone has been proving to hold true. The results released today, as well as those already released in Phase 1, have extended the Main Zone’s mineralized envelope to the northwest as well as the southeast by upwards of a total of 145 m,” writes the company in a news release.

“This represents an increase of 52% in the length of the Main Zone and potential remains open to both the northwest and southeast.”

Creative Commons image of Mexican flag from Ivan Hernández

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Wreck of Russian warship carrying $130bn in gold found off South Korea

By Cecilia Jamasmie

Wreck of Russian warship carrying $130bn in gold found off South Korea

A South Korean salvage team has discovered the wreck of a Russian warship that’s still carrying 200 tonnes of gold bullion and coins worth 150 trillion won ($130 billion),

It is thought that the battle ship, called Dmitrii Donskoi, sank during the Russo-Japanese War in 1905, going down with 5,500 boxes of gold bars and coins to prevent the Japanese from seizing it.

Historical accounts reveal it would have also included port expenses, salaries of sailors and officers and gold reserves of various other ships damaged in the battle.

Russian first-class armored cruiser Donskoii. (Image courtesy of PRNewsfoto | Shinil Group.)

The vessel was discovered at a depth of more than 1,400 feet, about one mile off the South Korean island of Ulleungdo, Seoul-based treasure-hunting company Shinil Group said in a statement.

A joint team made up of experts from South Korea, Britain and Canada discovered the wreck on Sunday. They had used two manned submersibles to capture footage of the vessel.

Wreck of Russian warship carrying $130bn in gold found off South Korea

The team had to use two manned submersibles to capture footage of the vessel. (Image: Shinil Group.)

The images caught by the diving artifacts show “extensive damage to the vessel caused in an encounter with Japanese warships in May 1905, along with cannons and deck guns encrusted with marine growth, the anchor and the ship’s wheel,” The Telegraph reported (subs. required).

Shinil Group, which hopes to lift the Dmitrii Donskoi in October or November, said half of any treasure found aboard would be handed over to the Russian government. Of the remainder, 10% will be invested in tourism projects on Ulleungdo Island, including a museum dedicated to the vessel and Captain Ivan Lebedev, who died a few days after the Battle of Tsushima.

Wreck of Russian warship carrying $130bn in gold found off South Korea

The Dmitrii Donskoi warship is believed to have sunk in a naval battle 113 years ago. (Image: Shinil Group.)

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South Africa gold producers offer single-digit hikes — document

By Reuters

South African gold producers have offered annual wage increases of around 5 to 6 percent over three years to most rank and file miners and up to 4.5 percent for more skilled workers, according to a document seen by Reuters.

Gold producers have been giving above-inflation wage hikes for years, adding to the cost burden of an industry that has been battling in the face of depressed prices, labour unrest and soaring power bills. Inflation is currently 4.6 percent.

Demands by the four unions involved range widely but are over 30 percent in some cases. One union source told Reuters that the gold producers’ offers were “very low”.

The four companies involved are Sibanye-Stillwater, Harmony Gold, AngloGold Ashanti and a smaller producer.

The four unions are the National Union of Mineworkers (NUM), the Association of Mineworkers and Construction Union (AMCU), Solidarity and UASA.

The NUM wants the basic monthly pay for entry-level underground workers to rise to 10,500 rand ($785) over the next two years, which translates into annual increases of between 15 and 18.5 percent, depending on the company.

AMCU has put in demands of over 30 percent.

In a presentation to the unions on Wednesday, the companies said 75 percent of gold mines in South Africa, once the world’s top gold producer, are currently loss-making or marginal.

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BHP posts record annual iron ore output, beats Q4 forecasts

By Reuters

Global miner BHP Billiton Ltd posted record iron ore output for fiscal 2018 on Wednesday as fourth-quarter production topped expectations and set a slightly higher target for the current year.

Shares in the miner jumped more than 3% after both quarterly and full-year production rose 3% on improved productivity.

“BHP’s FY18 production was in line with or slightly better than our expectations in all major segments,” Jefferies said in a report.

Iron ore output at the world’s biggest miner rose to 72 million tonnes during the three months through June, compared with 70 million tonnes a year ago.

“We maintain our Hold rating on BHP shares, but we have become more constructive due to recent strong operational performance and a reduced valuation,” it said, adding that it expects a $2 billion-plus share buyback when BHP reports financial results next month.

Iron ore output at the world’s biggest miner rose to 72 million tonnes during the three months through June, compared with 70 million tonnes a year ago.

Full-year production came in at 275 million tonnes. BHP set a fiscal 2019 production target of 273-283 million tonnes.

“We have delivered a strong finish to the 2018 financial year with an 8% increase in annual production and record output at Western Australia Iron Ore, Queensland Coal and at our Spence copper mine in Chile,” BHP Chief Executive Andrew Mackenzie said.

BHP also said that it expects to record a charge of $650 million in its fiscal 2018 results following the 2015 Samarco dam failure in Brazil that killed 19 people.

The charge was at the low end of expectations, analysts said.

“The hit they have taken is at the lesser end of the scale, which could also be the reason why the stock is performing well today,” said Christopher Conway, head of research and trading at Australian Stock Report.

BHP shares rose 3.2% by 0244 GMT, around the middle of its trading range over the past two months after a strong run-up earlier in the year.

BHP also said that its plan to divest its underperforming US shale oil and gas business is on track, and added that it expects to announce one or more transactions in coming months for a complete exit by the end of 2018.

The race for BHP’s onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins, is being led by British oil giant BP Plc which made an offer worth well in excess of $10 billion, people familiar with the matter told Reuters in June.

In a key area the company has targeted for growth, BHP said it had increased its stake to 50% in the Samurai prospect in the US Gulf of Mexico, where recent drilling found hydrocarbons “in multiple horizons”, which had not been found in a previous exploration well in the area.

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GoGold reports parral production and sales for Quarter ending June 30, 2018

By GoGold Resources Inc.

Halifax, NS – GoGold Resources Inc. (TSX: GGD) (“GoGold”, “the Company”) announces sales of 382,150 silver equivalent ounces for the quarter ended June 30, 2018, which was an increase of 34% over the previous year. The Company produced 163,991 ounces of silver and 1,630 ounces of gold for 292,273 silver equivalent ounces at the Parral project during the quarter, a 2% decrease from the prior year.

During the quarter, the Company began irrigating the second lift on a non-compacted first lift to test whether compaction of the first lift is required. The results of this test concluded that compaction of the first lift will be required as without compaction, there is a delay in the recovery of metal from the material processed above on the second lift. The first lift will now be compacted with drainage pipes on top before the second lift is placed. This will replicate single lift leaching, which has been proven to perform well.

“It was necessary to complete this test to determine if compaction of the first lift was required. The results indicated that compaction is required and this affected production this quarter. Now that we are stacking on the first lift again the heap is performing well,” said Brad Langille, President and CEO.

The Company stacked a total of 447,193 tonnes of material during the quarter, an average of 4,914 per day, of which the majority were fresh tailings. This is an increase of 24% over the average stacking rate from the previous year and was the result, in part, of the purchase and application of a new stacker.

In June, the Company returned to stacking on the first lift, with recovery beginning very quickly as had been previously experienced. The Company will continue stacking on the first lift or above a compacted lower lift with additional drainage between lifts in the future, which will cause production to increase back to normal levels.

The commissioning of the SART (sulfidization, acidification, recycling, and thickening) plant at Parral has been delayed as more filtration was required to achieve throughput targets. The additional filter was purchased and delivered to site and will be installed during the current quarter. Once the current bottlenecks are worked out, the SART will reduce cyanide consumption and generate a saleable copper sulfide product that will contribute to revenue and cost savings.

Mr. Robert Harris, P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release.

About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company’s Parral Tailings project is one of the lowest cash cost silver producers in the world. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit

For further information please contact:
Steve Low
Corporate Development
GoGold Resources
T: 416 855 0435

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold’s securities in the United States.

This news release may contain “forward-looking information” as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Parral tailings project, the Santa Gertrudis project, future operating margins, future production and processing, and future plans and objectives of GoGold, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the Parral and Santa Gertrudis projects. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from GoGold’s expectations include exploration and development risks associated with GoGold’s projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold’s continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold’s Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.

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Anglo Asian’s Azerbaijan gold output up 43% in first half of 2018

By Reuters

BAKU, July 17 (Reuters) – Azerbaijan’s top gold producer, Anglo Asian Mining, said on Tuesday it had increased its gold production by 43 percent year-on-year in the first half of 2018 to 33,255 ounces from 23,218 ounces in the same period last year.

The London-listed firm said its total production of gold-equivalent ounces (GEO) rose by 22 percent to 37,349 GEO from 30,561 GEO.

Gold is produced at Gedabek and other Azeri mines under a production venture in which Anglo Asian holds 51 percent and the state the remainder.

The company said copper production declined to 587 tonnes from 1,322 tonnes in January-June 2017, and silver output declined to 84,785 ounces from 85,087 ounces.

Anglo Asian said in February its gold output would rise to 64,000-70,000 ounces in 2018, from 59,617 ounces last year, and it expected its total metal production to increase to 78,000-84,000 GEO in 2018, from 71,461 GEO last year.

The company said on Tuesday it was “well positioned to achieve forecast production for 2018 of between 78,000 to 84,000 GEO.”

Anglo Asian began production at Gedabek, the bigger of two mines it operates, in July 2009 with plans to extract 22 tonnes of gold. It eventually plans to develop seven mines in western Azerbaijan, including Gedabek, with estimated gold reserves of 430 tonnes in total.

The company started a significant exploration programme at the end of 2016 after making a new gold discovery at Ugur, 3 km (2 miles) from its Gedabek processing facilities.

Gold bullion sales in the first half of 2018 totalled 25,778 ounces at an average price of $1,319 per ounce, up from 15,689 ounces sold in January-June 2017 at an average of $1,238 per ounce.

Net debt totalled $2.9 million by June 30, down from $10.4 million at the end of the first quarter of 2018 and $18.3 million at the end of 2017.

(Reporting by Margarita Antidze; Editing by Alexandra Hudson)

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