LONDON (Commodity Online): Gold is the hottest commodity in the world. Gold stocks are the darling among investors. People around the world are looking for the best gold producing companies to invest in these days. But which are the top gold companies in the world. Here is a primer on the top gold producing companies across the continents.
South African Companies
DRD Gold
Blyvoor (South Africa) – Underground diamond drilling improved to some 177 m of prospect drilling and 189 m of cover drilling during the quarter.
Ergo (South Africa) – Ergo Phase 2 drilling has been completed and the final resource estimation for uranium, sulphur and
gold is being compiled.
ERPM (South Africa) – All exploration activities have been suspended. During the quarter, DRD acquired Mintails’ remaining 35% stake in the Elsburg Joint Venture, which is now known as ErgoGold, to take its ownership to 100%.
Australian Companies
Lihir
The project for expanding Lihir Island to more than 1 Moz/y proceeded in Q1 09 and remained on schedule and on budget.
The feasibility study for the power project is on track for completion mid-year.
Ballarat (Australia) – following the delayed completion of underground ventilation infrastructure, after quarter end Lihir
resumed development work to open up the larger ore zones located in the northern areas of the mine. This is expected to
be achieved by the end of the year.
Côte d’Ivoire – an additional five exploration licences were granted, increasing LGL’s exploration holdings in Côte d’Ivoire to
14 licences. There are a further 16 licences currently under application.
Exploration activity focussed on infill resource drilling at Dougbafla East (Oumé) and extensional drilling of the Akissi-So and
Assondji-So resources on the Hiré licence.
Oceana Gold
Macraes Goldfield (New Zealand) –a regional geochemical sampling programme was conducted across the northern strike
extension; analysis of these results is ongoing. An infill drilling programme continued at Frasers Underground.
Reefton Goldfield (New Zealand) – exploration activities were limited during the quarter but are planned to resume in
Q2 09.
Exploration activities in the Philippines continued, and field work programmes were developed for exploration areas that
are awaiting permit approval. In addition, further analysis and modelling was undertaken on the assay results from drilling
completed in 2008 at the Didipio project on near-mine prospects.
Sino Gold
Exploration expenditure in Q1 was US$1.5 million.
Eastern Dragon (China) – Sino Gold’s ownership of Eastern Dragon Lode 5 and the surrounding exploration Licence increased to 95% and 60%, respectively. The former was at a cost of US$20 million, whilst the latter was at a cost of US$11 million.
Beyinhar (China) – Further work on Beyinhar’s grade, metallurgy and permitting is being progressed.
Resolute Mining
Exploration expenditure was A$2.7million.
Subsequent to quarter end, Syama (Mali) poured its first gold following its redevelopment. ; iIt is expected to produce an
average of 250 koz/yr of gold. Exploration continues at regional and near mine prospects in Mali, Tanzania and Queensland.
At Ravenswood (Australia), mining in the Sarsfield open pit ceased in February 2009.
St Barbara
At Leonora (Australia), a mineral mapping programme has started and the results will be used to define and prioritise targets for testing. Drilling continued at Southern Cross (Australia). The full mining cycle from development, through mining to paste fill has now been undertaken at Gwalia Deeps (Australia) on the 1050 Level and has confirmed the operational design.
Canadian Companies
Agnico-Eagle
Lapa (Canada) achieved its first gold pour in April.
Pinos Altos (Mexico) – construction of the new mine project is well advanced. All of the critical components have been
delivered to the mine site and mechanical and electrical installations are proceeding according to plan. The first ore will be
placed on the leach pads during Q2 09. Commissioning of the milling circuit and first gold production are expected before the end of Q3. Life of mine average annual gold production is expected to be approximately 175 koz/y through to 2022.
Meadowbank (Canada) – construction of the new project is well advance;d commissioning of the mill and first gold production are anticipated before the end of Q1 2010. In addition, a scoping study for an increase in daily average production (from 8.5 kt/d to 10 kt/d) is underway, with results expected in Q3 09.
Centerra
Exploration costs in Q1 09 increased to C$5.6 million from C$4.9 million in Q1 08 reflecting an increase in exploration
spending at Kumtor and on new joint venture projects.
At Kumtor, drilling expenditures totalled C$3.3 million, in line with a year earlier. Subsequent to quarter end, Centerra was
informed that the Minerals Resources Authority of Mongolia suspended the main operating licences for Boroo due to alleged
issues relating to the operating licenses such as “record keeping, incorrect land use, and improper operating procedures”. The company is working with the authorities to try and resolve the issues. At the Gatsuurt project (Mongolia), negotiations for an investment agreement made progress, and construction has started on a road to the site.
Crew Gold
Nalunaq Gold Mine (Greenland) – placed on care and maintenance in February. The company is exploring opportunities to
dispose of the property and the Nugget Pond Processing Facility. An agreement to sell Nalunaq is being structured.
Wa (Ghana) – Crew completed negotiations with Azumah Resources to combine properties. Crew will be able to earn up to
a 100% interest in the Wa property by performing the exploration work required under the permits, and receive an increasing
number of Azumah shares depending on the success of the exploration programme, and a royalty based on ounces produced.
Glover Island (Canada) – the exploration programme proved negative and Crew plans no further work.
Eldorado Gold
Efemçukuru – poor weather conditions affected preparations of the north portal site, although the mining contractor has
started to set up the offsite campsite facilities and expects to have workers on site by end Q2 09.
Perama Hill (Greece) – Eldorado is preparing a revised preliminary environmental impact assessment to submit to Greek
authorities in Q2 09, for which approval is expected by year end. Following that, a full environmental impact assessment (EIA) will be submitted in the first quarter of 2010, for which approval is expected during 2011, with construction beginning shortly
afterwards. A reserves and resources report is planned for Q3 09.
Gammon Gold
Exploration continued at Ocampo, where infill drilling focussed on defining better the ore model. At El Cubo, works, including
an extensive surface fieldwork to map and sample new target areas, are planned for completion in Q2 09; and at Guadalupey Calvo, where following receipt of test work, activities on a scoping study will resume. Subsequent to quarter end, Gammon Gold received Presidential approval for the absolute freehold title acquisition of its 4,275 hectares Ocampo land package and has subsequently become the first gold mining company headquartered outside of Mexico to own exclusive land rights and titles for the property used in its operations.
Golden Star Resources
Wassa (Ghana) – exploration activities focused on development drilling at Wassa. Drill results confirmed continuity of the
higher grade ore pods at Wassa’s SAK pits.
Saramacca Joint Venture (Suriname) – exploration work continued, with Newmont continuing to fund the work.
Paul Isnard (French Guiana) – the project continues on a care and maintenance basis awaiting completion of the French
government’s review of mining in French Guiana.
IAMGOLD
IAMGOLD completed the 100% acquisition of Orezone Resources in February, and its 99% owned Essakane project (Burkina Faso). Production is expected in H2 2010.
Westwood project (Canada) – a preliminary assessment study returned positive results, to move towards first production in 2013. The study shows that during the first 13 years, production will average about 200 koz/y of gold with cash costs averaging US$290/oz. The operation is projected to generate a pre-tax operating cash flow of US$665 million over the mine life, with US$287 million over the first five years, using a gold price of US$700/oz.
Quimsacocha (Ecuador) – subsequent to quarter end, the national elections in Ecuador resulted in the re-election of President Correa, who has publicly declared support for IAMGOLD’s mining at Quimsacocha. On March 2, 2009, mining officials declared the termination of the mining mandate, thereby removing a major obstacle. IAMGOLD intends to resume drilling and other feasibility work at Quimsacocha once the necessary authorizations are received. The final feasibility study for Quimsacocha is expected to take a further twelve months to complete at a cost of US$14 million.
New Gold
New Afton (Canada) is expected to start production in the second half of 2012. The project will be an underground block
cave mine, which will produce an annual estimated average of 85koz of gold over a twelve year mine life. The development
schedule for New Afton involves the continuation of underground development and resumption of surface construction at
the end of 2010 with commencement of production in the second half of 2012. During Q1 09, erection of the mill building
was completed, providing a secure location for the storage of mine and mill equipment.
In June, New Gold announced completion of a C$1.2 billion business combination with Western Goldfields. through a share and cash deal. New Gold acquired all of the issued and outstanding common shares of Western Goldfields in consideration for the issuance by New Gold of one common share of New Gold and Cdn$0.0001 for each Western Goldfields common share outstanding.
El Morro (Chile) – a permit is expected during H1 2010, pending approval of the EIA.
Northgate
Pre-feasibility work at Young-Davidson is expected to finish by the end of June, and a full feasibility study is scheduled for
completion at year-end.
Drilling at Stawell (Australia) indicated two additional zones of gold mineraliszation on either side of the GG5 mining zone.
Commissioning began in the heated leach circuit at Fosterville (Australia).
Red Back Mining
First pass drilling at Tasiast (Mauritania) in the area between the Piment and West Branch deposits delineated a new strong
mineralised structure over a strike length of 350 m and to a vertical depth of up to 180 m. The zone is open in all directions.
Akwaaba Deeps (Ghana) – the underground development remains on schedule with significant mining volumes due to be
reached in Q3 09.
SEMAFO
US$4 million was spent on an in-depth drilling exploration programme at Mana (Burkina Faso). 2009 total production guidance is between 220-240 koz gold. SEMAFO is raising gross proceeds of C$40.51 million through an underwritten share offering of 17.85 million shares at C$2.27/share (C$46.6 million if an over-allotment option is exercised).
Yamana Gold
Yamana spent US$11.3 million on exploration in Q1 09, compared to US$21.7 million during the Q1 08.
Pilar (Brazil) – a feasibility study and construction decision is expected in Q1 2010. An update to the Inferred resource
estimate expanded contained gold to 1.5 Moz (from 1.0 Moz) and improved the grade from 2.44 g/t to 3.61 g/t. Much of the increase came from the Jordino deposit.
Chapada (Brazil) – first phase expansion is expected to be completed in Q3 09. Subsequent to quarter end, Yamana signed an agreement with Aura Minerals, under which Aura would purchase three of Yamana’s non-core operating mines – the San Andrés Mine (Honduras) and the Sao Francisco and Sao Vicente Mines (both in Brazil).
