January 23, 2019 

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Another U.S. precious metals miner goes foreign


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 By Michael Miller

12/13/2018  12:34PM

I’m working on a future project for a project. I’m finding what I want and in the process reading old writings. You may enjoy some I read but not on the subject of my project. The following was written July 31, 2009 by Scoop. China was not getting much recognition for its economic shift to gold, the yuan and the declining influences of the all mighty US dollar. Today China is getting a lot of press. Are you seeing it in your publications?

“Slow morning in Alleghany but the following seems worth repeating.

China has gone crazy for gold.
In April the government's Foreign-Exchange Agency announced the purchase of an additional 16 MILLION ounces for state coffers.
A few months earlier, National Geographic Magazine reported that for the first time China had surpassed the U.S. as a buyer of gold jewelry.

But here's the amazing thing few investors realize...

What the Chinese government did for oil over the past decade... they are today doing for gold. This is a huge development. China is also one of the few countries in the world where known gold reserves are increasing... not shrinking.
In short, the Chinese government wants more gold. It realizes gold is one of the only buy-and-hold investments in the world right now. The Chinese have a lot of money to spend... nearly $2 Trillion according to a recent report in The New York Times.

The Ministry of Land and Resources has completely rewritten the country's mining laws (known as the Minerals and Resources Law) to encourage local and foreign companies to explore for and produce more gold. The government has also recently created the Shanghai Gold Exchange, to allow anyone to trade gold, on the open market, without government interference.

Twenty years ago, China produced an inconsequential amount of gold. Today, China is the #1 gold-producing nation in the world (a fact Scoop lacks multiple sources to support).

When it comes to gold mining in China, it's a whole different world than what is found in America or Canada. There's no such thing as a NI43-101 disclosure form for mining companies. Instead of a handful of giant companies running the industry (how global gold mining has evolved, especially in the US), it’s basically thousands of small operations scattered across the country.

In short, it's like the American Wild West. Ah, the American wild west; frontier freedom and frontier justice; pioneering spirit as defined by the California gold rush and the population and development of the west; exploiting the natural resources for the benefit of society; producing new wealth. Go, China, go!

As Mike has offered “The California gold belt is the most proven deposit with the fewest miners working it on earth.”

Scoop asks, “Why is the American investor asleep and ignoring gold and developing the gold assets of its oldest gold mining company?”
 By Michael Miller

07/19/2018  6:33PM


Newmont Mining has completed a US$69-million expansion at its Exodus operation, which has resulted in a 10-year extension to production and will lower all-in sustaining costs by about US$25 per ounce at its Carlin mine during its first five years of operation. The expansion, which was the company’s second in the last month, was completed both ahead of schedule and within budget and will add between 50,000 ounces a year and 75,000 ounces a year of gold production. The expansion will also lower Carlin’s all-in sustaining costs by about US$25 per ounce in its first five years of operation.

Thanks to John Livermore and friends; Nevada continues supporting America with new gold production.

Fred Searls Jr., one of initial Leaders of Newmont, began his lifetime interest with gold mining in California. His history with Sixteen to One mine differs from the inaccurate account In “Men and Mines of Newmont” by Robert H. Ramsey (page 71). No disrespect intended. Mining exudes folk-lore, myths, legends and downright fabrications. Fred cut his geological teeth going north in the 250 level beyond the Tightner Shaft. He rued his mistake in surveying the level which is clearly noticeable on old maps. He, General Lucius D. Clay and the famous stock guru and statesman, Bernard Baruch liked mining ventures.

Baruch Clay and Searls were buddies. Searls told them about his days as a geologist at the Sixteen to One. He told a friend of mine, Donald Dicky that it was the only mistake he ever made in mining. Don and I laughed because Don told me years earlier when I was down and pouting about a story of mining. We failed to find enough gold in the fall of 1991. I had to lay off the crew shortly before Christmas.

Don liked Fred and spoke of his large idiosyncrasies as well as his large ego. (He was also a colorful dresser.) “One mistake?” Don grunted. “Mistakes are many when it comes to mining. Don’t worry Mike, Let it go. It’s your comeback that counts.”

Fred and group put up some money in the early 1960’s to keep the Sixteen mining. Gold spot price, frozen in 1933, caused the other mines to close. What must have interested Fred was where he screwed up his survey was this new target: north on the 1500 level into the Red Star. The miners found speckled gold along the drift, but expenses caught up to the Sixteen and in December 1965, management laid off the miners; however management allowed those loyal men to continue mining, which they did for years. Fred never owned stock in our Company. He and his buddies loaned some cash for operating. They tore up the note. Maybe Fred cleared his conscious. One mistake? Baloney!
 By Michael Miller

06/26/2018  9:54AM

Problems continue with major gold producers in foreign countries.

As the tax dispute between Acacia (Barrick owns 63.9 percent of Acacia and the Tanzanian government continues, the company’s representative, Barrick Gold, has decided that it won’t provide a definite deadline to end the negotiations. The decision comes after Barrick, which is negotiating on behalf of Acacia, failed to meet a mid-year target to complete talks surrounding the ongoing tax issue.

Despite failing to meet the deadline, both Acacia and Barrick remain positive about the situation, noting that the discussions between Barrick and the government of Tanzania are constructive and that progress has been made towards creating a “definitive agreement,” which is necessary for the “implementation of the proposed framework.”

The tax dispute between the miner and the East African country transpired when Tanzania began making sweeping changes to its mining industry in order to reap more benefits from its minerals.

As part of these changes, the Tanzanian government slapped Acacia, its biggest gold miner, with a US$190 billion bill in unpaid taxes, penalties and interest in 2017. This is not the first time that the company has suffered as a result of the Tanzanian government making changes to policies and procedures within the mining sector. The miner has lost almost 80 percent of its value following a ban on unprocessed ore that was set into motion in March of last year.

According to the deal, Acacia would give the government a 16-percent stake in its mines, as well as a payment of US$300 million and equally split any “economic benefits” from operations.

California has mining problems but not ones like those outside USA.



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