Gold Demand In India Could Be a Bit Understated: Man Caught With $25,000 Worth of Gold in Rectum

The New India Express has a story this morning that offers some perspective on consumer gold demand in the country. A man was caught at the Chochin airport in Nedumbassery, India with six gold biscuits stuffed up his rectum. Each "biscuit" weighed around 100 grams, making that over 21 ounces of gold-- or over $25,000 worth. The officials discovered the gold after the man was noticed acting nervously, which prompted a physical inspection.

India and China account for more than 70% of global gold demand, but high tariffs on gold imports to India have led to increased smuggling in recent years. Import duties on gold to India is nearly $4 per gram and last year, the Mumbai airport reported that they experienced the highest number of gold seizures in 20 years. The airport in Hyderabad reported that the amount of gold seized in the past year has doubled. According to Kitco, "The value of the gold seized since the start of fiscal year was about $150 million, up from $110 million during the previous period."

In many of the smuggling cases, the smuggler who is caught is often hired by a syndicate.

"Non-declaration, mis-declaration and concealment of imported goods is an offence under the Customs Act, which may result in confiscation, fine, penalty, arrest and prosecution."

Gold in India is commonly used as a ceremonial gift during religious festivals, weddings, and other celebrations and India's gold consumption is so high, that the global price of the metal typically rises as the festival season approaches.

The total amount of black market gold moving into India can't be accurately determined but smugglers are constantly getting caught. Nearly every day there is a new story about gold being found hidden in an airplane toilet for later retrieval and just last week, a father and son were caught in Trichy attempting to smuggle 200 grams in a shampoo bottle.

The increased crackdown on smugglers has of course led to some creative methods for getting the gold into the country. Since we only hear about the smugglers who are caught, we never get to learn the truly effective techniques. Last fall, two smugglers were caught with $52,000 worth of gold foil that had been glued onto the cardboard of toy packages. Who knows how much gold makes it in while hidden in people's rectums?

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The Central African Republic Civil War is Financed by Illegal Gold and Diamonds

A U.N. panel has reported that the ongoing conflict in the Central African Republic is being financed by gold and diamonds. Located between Sudan and Cameroon, the Central African Republic has been embroiled in civil war since General Francois Bozize staged a military coup that suspended the constitution and dismissed most of parliament in 2003.

The Séléka rebels (Séléka means "Union" in the Sango language) have been trying to wrest control of the country from the Central African Republic government ever since, and in 2012, the group took over several towns in the northern and central regions of the country.

The U.N. panel stated that these conflicts were being financed at least in part by the illegal gold and diamond mining trade. Illegal mining is often euphemistically referred to as "artisanal mining" and due to the lack of regulation involved, can have a devastating impact on the local environment due to the use of arsenic and cyanide in gold extraction methods.

In December 2013, the U.N. imposed an arms embargo to curtail the fighting, but in that time, an estimated 3,000 people have been killed in the conflict.

The panel recommended deploying troops and drones to the northern region to assist in monitoring the rebels.

An export ban on diamonds from the Central African Republic was enacted last year by The Kimberley Process, a group of 81 countries that have united to stem the flow of "blood diamonds"-- diamonds that are sold to fund violence. The ban has of course led to a rise in illegal gold and diamond smuggling, with an estimated value of more than $24 million dollars moving out of the country under the radar.

The Séléka rebels withdrew from the capital city of Bangui earlier this year after their leader and  then president of the C.A.R. Michael Djotodia relinquished his office amid international pressure following several months of killing civilians.

But the Séléka still control the north, and have begun to impose taxes on gold mining, coffee, diamonds, and livestock to continue financing their group. According to the U.N. panel, there has been very little success in disarming the organization. The Séléka have also been bitterly divided since Djotodia stepped down and attempted to disband the rebels in 2013. Many rebels refused to abandon their mission and continue to fight.

Caledonia Mining to use 70m Investment to Double Gold Output at Blanket Mine

Caldeonia Mining announced plans for a 70 million dollar expansion of their Blanket Mine located in Zimbabwe's Matabeleland South Province.

The mine has a projected output of 40,000 ounces this year but the company expects to increase that output to around 75,000 by 2021.

Caledonia Mining is publicly traded on the Toronto and AIM exchanges and the company owns 49% of the Blanket Mine.

The company stated that the expansion efforts were actually part of a plan to cut operating costs and smooth infrastructure problems of the mine.

The proposed investment will be issued in two phases, with an initial infusion of 50 million dollars between 2015 and 2017 and another 20 million dollars dispersed from 2018 to 2020.

The funds will be sourced internally and the majority of the gold will come from current output estimates.

Much of the funding will be used to construct a Central Shaft for the mine, which will allow increased exploration and improve efficiency.

Caledonia CEO Stefan Hayden said in a press release that "The Central Shaft will also enhance the Mine's operational flexibility by reducing its current dependence on a single production shaft and give it the flexibility to continue to explore and develop at depth,"

The operation is expected to add around 400 permanent jobs for Zimbabwe and is one more vote of confidence from the mining industry for the country, which has recently instituted a new policy of “indigenization” where they force foreign owned miners and banks to cede control of their operations to the government.

U.S. and Royal Mint Launch New Gold Coins on Higher Sales

The United States Mint and the Royal Mint of Great Britain released new gold coins this month to meet increasing numismatic demand.

The 2014-W Proof American Platinum Eagle and the Roosevelt Presidential $1 Coin & First Spouse Medal Set were released on October 20 and 21st and the Royal Mint in England announced this week that they will begin offering 24 carat Brittania coins in 1/2 ounce, 1/4 ounce, and 1/10 ounce denominations.

The Royal Mint's Director of Commemorative Coin and Bullion, Shane Bissett said that these "coins offer a relatively affordable introduction to gold" and that the mint wanted to make "the purchase of gold even more accessible to customers."

The 1/10 ounce coin is currently worth £90.80. Previously, the cheapest available gold coin from the Royal Mint was the Sovereign, which is currently worth twice that.

Gold coin sales have been on the rise in recent months and the United States Mint reported that coin sales have been increasing month after month with October sales being the highest so far in 2014.

The increase in sales has been partially attributed to seasonal demand as well as the popular belief that gold may be currently undervalued at a time when the markets are due for a correction.

44 Pounds of Gold Found at House of Brazilian Drug Dealer

Antonio Hilario Ferreira, a Brazilian drug kingpin better known as "Rabies", has been serving time in prison for drug trafficking since 2008, but authorities are only just now beginning to understand the scope of his operations. 

Yesterday, Brazilian police announced the discovery of 20 kilos of gold (approximately 44 pounds) buried underneath a house owned by Ferreira. The value of the gold totals more than $800,000. 

Last month, three barrels containing $1.7 million dollars in cash were found in wooded areas of the favelas Mangueira and Salguiero. 

Brazilian Federal Police conducted a special operation against drug gangs in the Manguierra favela in Rio de Janeiro and the Sao Gonzalo favela of Salgueiro. During the raid agents seized more than 40 kilos of cocaine, 50 tablets of marijuana, a handgun, and also made four arrests. 

The gold was found under the floor of a balcony and a bedroom of the house in the Waterfall Alegre neighborhood. The property was listed under the name of a relative of Rabies. 

Gilberto Braga, an economics professor at the Brazilian Institute of Capital Markets said, "Apparently, Rabies is a smart criminal, well advised, who knows very well to protect themselves from financial market volatility. Gold is today what economists define as intrinsic concept of reserve. With many falling stock and currency instability on the eve of elections, investing money in metal is one of the safest investments. Even with possible fluctuations in price, gold has always maintained its value." via google translate. 

Ferreira has been spending his days in the penitentiary in Gericino but authorities believe that despite his incarceration, he has been able to continue operations from inside the prison. 

One of China's Largest Gold Producers Expanding Into the U.S. and Australia

Shandong Zhaojin Group Co., one of the largest gold companies in China, has announced that the company has recently entered into negotiations to acquire gold mines in both the United States and Australia.

Chairman of the company, Lu Dongshang said that they are currently in various stages of talks with potential mines but did not disclose any specific assets.

Shandong Zhaojin Group Co.,  is a state-controlled gold company and has made several purchases of domestic mines in the past but has not yet expanded into foreign investments as much as other Chinese mining companies.

In recent years, Chinese gold companies have upped their purchases of foreign mines throughout Africa and Australia. The actual number of Chinese-owned mines around the world is not known due to Chinese investor's penchant for purchasing via proxies.

Last year, the demand for gold in China reached record highs and the country surpassed India as the world's leading consumer of gold. The World Gold Council has estimated relatively flat growth for this year, but many gold experts staunchly dispute this and totals for 2013 have been revealed to be DOUBLE what the WGC originally reported due to the council being unable to get real totals of demand or imports for the country. 

Lu Dongshang said that for the company to be interested in a foreign mine, it would have to produce at least 5 grams per ton of ore and 50 tons in reserve due to foreign mines usually having a higher cost of production.

Lu said that Shandong Zhaojin was also looking at the possibility of consolidating domestic operations as part of a cost-cutting measure.

Gigantic Gold Nugget to be Auctioned in San Francisco Tomorrow

It is known as the "Butte Nugget" because of where it was discovered, in the mountains of Butte County, Nevada.

The huge gold nugget was found on public land last July.

Gold prospecting is legal on most public lands.

For security reasons, the prospector wishes to remain anonymous. And we don't blame them. The nearly 6 pound gold nugget is expected to sell for more than $350,000 at the San Francisco Fall Antiques Show.

The nugget is being auctioned by Don Kagin, owner of Kagin's Inc, a numismatic firm. Kagin said he has made extra effort to ensure the authenticity of the find after he was tricked in 2011 by what was then believed to be the largest Mother Lode nugget of the modern era, weighing more than 8 pounds.

That nugget, dubbed the "Orange Roughie" was later discovered to be from Australia, and not an original, historic California Gold Rush find. The perceived historical value of that nugget drove the price up and when it was discovered to actually be a modern find from Australia, Kagin was forced to buy the nugget back (for $460,000) and resell it at a much lower price.

During the gold rush of the 1800s, several gigantic gold nuggets were discovered, including a 58-pounder called the Magalia Nugget, but nearly all of those have been melted down.

David McCarthy, the senior numismatist at Kagin's worked to verify the find by travelling to the location where it was dug up, but even he doesn't know exactly where it was. He had to be blindfolded before the prospector would take him to the spot. He described it as "rugged."

Shanghai Gold Exchange Planning to Offer Forwards and Options in Gold

Sources close to the Shanghai Gold Exchange revealed to Business Standard today that they are currently in the preliminary stages of establishing forwards and options trading, two investment options that could help the country's efforts in their bid to administer London's gold fix.

China is the world's largest consumer of gold and with India accounts for 70% of worldwide demand. The London Gold Fix is in the process of undergoing a makeover and a search for a new benchmark administrator is currently underway. The London Gold Fix has been subject to an industry-wide call for new methodologies after multiple lawsuits were filed earlier this year alleging illegal manipulation of the pricing.

It has not yet been announced when trading of the speculative derivatives will begin, but last month the SGE launched its International Bourse which allowed foreign banks to trade in yuan-denominated contracts. There has already been significant interest and now the exchange is planning to "expand its product line".

Options are said to be launched first, on the main board, but only be available to domestic investors. Forwards will be offered next and will initially be offered only to international investors.

Sources also indicate that the Shanghai Futures Exchange is also considering offering gold options trading.

Experts Believe the Next Great Gold Find Could Be Under Australia's Great Plains

New mining technology has recently enabled companies to discover previously unknown deeply-buried gold deposits and some experts believe the next great gold field could be found underneath the great plains of Australia.

Neil Williams, the former Chief of the government research agency Geoscience Australia believes that the world's mineral deposits are evenly distributed throughout the planet and that we have only thus far discovered mines with veins at or near the surface.

The current world's-deepest mine, the 2-mile deep Mponeng mine in South Africa was discovered and mined using traditional mining methods. Most geologists believe that the majority of the big deposits have already been discovered. Most vein discoveries in Australia have been found at depths of less than 250 feet, with some smaller deposits found at depths of less than 500 feet. But Williams believes there may be massive discoveries to come from exploring depths of 1,000 feet or more.

In the past, deposits would be found via a method of tracing river deposits upstream until they stopped and then searching the surrounding mountains and hillsides for the source vein.

But these days miners are utilizing new technologies including drones with sensors that can detect subsurface deposits and fracking techniques that inject fluids deep underground to break apart the rock and bring the ore to the surface.

The belief that there may be an even bigger deposit beneath the Great Plains stems from the discovery of the Olympic Dam mine, which was revealed to be located beneath 1,000 feet of unrelated rock in the 1970s. It is believed to contain more than $1 billion worth of copper and uranium.

Neil Williams says “There will be Olympic Dams under the Great Plains.”

South Africa Looks to Rehabilitate Dormant Mines

South Africa, a nation that has been mining gold for more than 130 years, is now seeking to reconfigure long-dormant or out-of-use mines as part of an effort to support local mining communities and help provide jobs.

The mining industry in South Africa has been declining for years and the result has been countless abandoned mining facilities, plants, worker housing, and pipelines in complete ruin.

South Africa has been the source for nearly one-third of all the gold mined globally in the history of the planet, but industry in the country has been contracting in recent years due to a rise in operating costs combined with harder-to-mine, deeper deposits.

After apartheid was ended in 1994, the government of South Africa put forth regulations to ensure that mining companies would better support local communities where they operated.

But repurposing old mines and facilities is something that is easier said than done. When companies are not able to find alternate uses for the facilities, the equipment can be demolished and sold for scrap.

Harmony Gold is one of the mining companies that has led the way with new uses for its mining facilities. At a decommissioned leaching plant in South Africa's Free State province the company has transformed a field into a crop of sugar beets that will be used for biofuel.

The leacher is being converted into a "digester" that will transform the biofuel into methane gas which will be used to power gold extraction at another Harmony plant.

In the Orkney area west of Johannesburg, AngloGold Ashanti has donated a former mine-owned clinic to the local community as well as converted several disused housing units into police stations.

In 1970, South Africa made up nearly 80% of the worldwide gold production. Last year, the country ranked 6th overall.

Remodeling and repurposing mines has also had another added benefit: lower crime. Abandoned facilities are often the targets of copper, wire, and other equipment theft.

"Mining communities must remain sustainable the day after the mine closes," mines minister Ngoako Ramatlhodi told Reuters.

"When we talk about mine rehabilitation we are not talking about just putting back the sand, but actually rebuilding those communities," he said.

Crocodile Gold Corp Raises Production Guidance by 10% for 2014

Crocodile Gold Corp, the Toronto-based mining company, has revised its production guidance for 2014 with a 10% increase in expected output.

In Q3 of 2014, Crocodile Gold Corp produced nearly 56,000 ounces of gold, raising its yearly totals to 163,516 ounces.

An average increase in grades and recoveries over 3 consecutive quarters are what has led to the revised production numbers.

Rodney Lamond, Crocodile's CEO and President said in a press release, "I am extremely pleased to announce that the Company is able to increase its gold production guidance again for 2014. This important milestone demonstrates that we are focused on the right activities to deliver consistent and sustainable results. The 55,909 ounce gold production this quarter marks the fifth consecutive quarter with over 53,000 ounces produced."

At the end of the 3rd Quarter for 2014, Crocodile Gold held a preliminary cash and gold bullion balance of more than $30.5 million dollars and a working capital of $16 million. The company recently moved its Canadian headquarters to First Canadian Place in Toronto.

"Our management teams are committed and focused in the areas of resource growth, gold production, and free cash flows to build a sustainable future for each of our current operating assets. While the challenging gold market has impacted our revenue, we are in a very strong position to capitalize when the markets recover," said Lamond.

Crocodile Gold is a Canadian Gold Mining and Exploration company with three mines in Australia, the Cosmo, Fosterville, and Stawell mine.

Miranda Gold Uncovers New High-Grade Vein at Willow Creek

Vancouver, BC-based mining company Miranda Gold announced today the discovery of a new high-grade gold vein at their Bullion Mountain mine in Willow Creek, Alaska.

The vein is 800m long and open but also includes three quartz subveins that have been assayed at 1.48 oz/tonne, .50 oz/tonne, and .53 oz/tonne.

A neighboring mine, the Gold Bullion Mine has already produced 77,000 ounces at 1.4 oz/tonne.

Miranda Gold holds an 80-year lease on most of the Willow Creek Mining District with historical mines including the Lucky Shot, War Baby, Coleman, Nippon, and Gold Bullion.

Willow Creek veins typically do not outcrop but can be found easily by close-spaced soil sampling. The new tests reveal comparable findings to those tested at the upper Coleman segment of the Lucky Shot mine, where a grade of 24.6 g/tonne and an estimated 62,100 ounces are contained.

Gold at Willow Creek is found in low-sulfide mesothermal quartz veins and the district contains 75 patented lode claims totaling 8,700 acres.

The historic production from land leased by Miranda is more than 500,000 ounces, mostly from three closely grouped veins at the Lucky Shot mine.

A joint-venture is currently being made with Gold Torrent Inc. with Gold Torrent Inc. supplying the initial $10 million in start-up costs. Miranda will receive 10% of the proceeds until the loan is repaid where they will then receive 30%.

Miranda Gold Corp is a gold exploration company with a focus on operations in Colombia, Nevada, and Alaska.

Renaissance Minerals Moves Forward with Okvau Mine in Cambodia

Australian-based mining company Renaissance Minerals has announced that it is started further exploration at the Okvau gold deposit in the Mondolkiri province of Cambodia.

The company raised $6 million for ore testing at multiple target areas.

Renaissance has a 100% ownership in the 1,100 sq-km Cambodian Gold Project and has just started the next phase of exploration at the Okvau site, the largest ever undertaken by the mining company.

Renaissance purchased the Mondolkiri gold mine in 2012 from the Australian mining company OZ Minerals for $19.2 million. When the mine was sold, OZ Minerals stated the reason for the offer was due to a lack of gold discovered combined with a renewed focus on copper mining in other locations.

Mondolkiri is considered to be one of the most promising locations in Cambodia but Renaissance has yet to extract any gold from the province.

The managing director for Renaissance, Justin Tremain said that the size and number of Cambodia's gold deposits are still largely unknown during a panel discussion with extractive industries at the Intercontinental Hotel in Phnom Phen.

“Cambodia is completely unexplored. The geology of Cambodia…is very promising, but…there has been no exploration undertaken in the country for historical reasons,” Tremain said.

India's Gold Imports for September 5X What They Were in 2013

Last month, gold imports for India reached a new all-time high of $3.75 billion-- up from $682.5 million last year.

Gold imports for the country have been reportedly down in recent months, attributed to high duties placed on the precious metal last year, but what the numbers have not reflected is the dramatic rise in gold smuggling that has been taking place in order to circumvent the tariffs.

India is the world's largest importer of gold and last year officials placed a 10% duty on gold imports while at the same time banning the import of medallions and gold coins.

A rise in gold imports for September is expected annually, as India's festival season gets underway during the Autumn months, but this dramatic rise over the same month last year-- even in the face of high import duties-- suggests that gold demand is much higher than initially believed.

With a five-fold increase in official gold imports for September, it leaves many to speculate just how much of the precious metal also made it into the country illegally.

The rise in official imports has increased the country's trade deficit to an 18-month high of $14.2 billion.

Asante Gold Partners with Goknet Mining for Kubi Project

Goknet and Asante Gold have just announced a 50/50 split partnership to build out the Kubi gold project in Ghana, the companies announced today.

The Kubi project is located 15km south of Asante's 60 million ounce Obuasi Mine.

In the next 8 to 12 months the two companies will partner together for all the required permitting, engineering, portal construction, drilling, bulk sampling, and metallurgical testing.

The partnership will target the high grade, steeply plunging gold mineralized shoots that were discovered during exploratory drilling.

A resource estimate for the Kubi Mine Project was conducted in December 2010 by SEMS Exploration Services and showed indicated resources of 121,000 ounces. The company is currently performing an updated resource estimate.

The terms of the deal stipulate that both companies will finalize and sign the agreement within 30 days when Asante will issue Goknet 2 million shares and fund the joint venture with 2 million dollars within 6 months in exchange for 50% of the ownership. Asante will provide an additional $13 million over the next two years.

Once Asante has earned its 50%, the company will have the option to increase its share to 75% for one year by issuing Goknet another 10 million shares and then for another 5 million shares will be able to move to complete ownership of the project, minus a smelter royalty for Goknet.

Asante has calculated that there has already been more than $30 million already spent on exploration and development of the Kubi project but the company plans to immediately begin securing funding for the initial project financing.

Southern Cross Gains Approval for Marda Gold Project

Southern Cross Goldfields LTD, the Australian-based gold mining company has been granted approval to move forward with construction for its Marda Gold Project mine, located approximately 400km northeast of Perth.

The feasibility study will involve open-cut mining with expected output to be around 167,000 ounces over 4 years.

The first phase of the project will consist of the construction of the gold processing plant, tailings facility, accommodation camp and six pits. These initial pits will provide resources for the first 2.5 years of the project's life and will equal around 2/3 of the total reserves of the overall project.

Proposals for additional pits will be submitted to the Department of Mines and Petroleum as needed.

Southern Cross Managing Director, David Sproule said in a press release "This approval is an important milestone for the company which allows us to complete our project development pipeline with a series of attractive projects executed to generate significant return for our shareholders."

Sproule clarified that the priority for the company would be to bring their recently acquired Manuka Silver Mine online as well as resuming mining at Mt Boppy Gold Project near Manuka by early next year, then development with Marda would proceed.

Southern Cross Goldfields LTD is a mining and exploration company with operations in Western Australia and New South Wales. In 2013, the company completed a merger with Polymetals Mining Limited  

The World's First Traceable Gold Coin? The Royal Canadian Mint's 2015 Maple Leaf

The Royal Canadian Mint unveiled its 2015 Gold and Silver fractional coin sets this week with several numismatic "firsts" as features of the coins.

Both sets are 99.99% purity and come in weights of 1/20, 1/10, 1/2 oz, and 1 oz denominations. The silver set will consist of 5 coins with an additional 1/4 oz piece included.

The gold coin set will feature a different design on each coin of a maple leaf in different stages of falling through the air. The 1 oz  coin will be the first gold coin to feature a unique serial number engraved along its edge.

Each coin will also feature a reverse proof finish and contain the effigy of Queen Elizabeth II designed by Susanna Blunt.

600 units of each gold set will be minted.

The silver fractional set will come in 5 different weights and be struck with an "incuse" technique which imprints the image beneath the surface of the coin. The 1oz silver coin will also feature a translucent red enamel on the maple leaf design, highlighting the contours of the engraving in vibrant color.

The silver set will also have a reverse proof finish and feature an effigy of Queen Elizabeth II.

9,999 silver sets will be minted.

Both sets will come packaged in a clamshell case and lacquer beauty box and can be purchased directly from the Royal Canadian Mint's website.

Gold Nanoparticles Used to Measure Stickiness of Snot

As part of research to provide better treatment for sufferers of lung diseases, a team of scientists at the University of North Carolina at Chapel Hill have developed a new way to measure the stickiness of mucous utilizing gold nanoparticles and light.

The discovery could help doctors more effectively treat lung diseases such as cystic fibrosis and chronic obstructive pulmonary disease.

The team will present their findings at the 98th Annual Meeting of the Optical Society, Oct 19-23 in Tuscon, Arizona.

Amy Oldenburg, a physicist at the University of North Carolina Chapel Hill said "People who have certain lung diseases have thickened mucus. In healthy adults, hair-like cell appendages called cilia line the airways and pull mucus out of the lungs and into the throat. But if the mucus is too viscous it can become trapped in the lungs, making breathing more difficult and also failing to remove pathogens that can cause chronic infections.”

Traditional treatment for these types of diseases involve the prescription of medication that can thin the mucous, but until now, doctors had no real way to measure the effectiveness of such drugs.

“The ability to monitor how well mucus-thinning treatments are working in real-time may allow us to determine better treatments and tailor them for the individual.” said Oldenburg.

The new process is not expected to be tested on humans for another 5 to 10 years while the safety of the process is researched. Gold is non-toxic, but the scientists want to ensure that the gold nanoparticles would eventually be naturally expelled from the body.

PanTerra Gold Negotiates for Chinese Funding

Australian-based mining company PanTerra Gold is currently in talks with an influential Chinese investment group to secure further funding for its Las Lagunas Mining Project in the Dominican Republic.

The group will purchase 15% of shares at a premium and provide a 30 million dollar loan to be repaid in installments over the next two years.

PanTerra gold specializes in extracting refractory gold via the Albion Oxidation Process. Refractory gold is typically present as "finely disseminated particles" and unable to be efficiently extracted through traditional cyanide-leaching methods.

The Albion Process involves finely grinding the ore and utilizing atmospheric pressure before oxidizing sulphides in the ore which allows the gold to be extracted by standard means.

The deal could also pave the way for the Albion Process to be implemented within China as well.

Anticipated production for the Las Lagunas mine is around 850 tonnes per week until 2015, where plant processing optimizations could up the output to 1000 tonnes.

This new agreement with Chinese investors comes as part of continued efforts by the Chinese to acquire gold supply lines throughout the world as part of their efforts to obscure the amount of gold they are purchasing.

Midway Gold Updates Nevada Pan Project Mine Progress

Midway Gold, the Denver, Colorado based mining and exploration company provided an update for its Pan Project mine this week.

The mine, located about 35km from Eureka, Nevada is on track to complete its first pour by year's end.

Midway announced that the mine is expected to be profitable even at current costs and pricing.

Nevada is the United States' leading producer of gold and accounts for nearly 2/3 of all U.S. gold output. That makes Nevada the 4th largest gold producer in the world, behind China, Russia, and Australia.

When Midway acquired the project in 2007, the region had already seen a large amount of exploration but for market reasons, the Pan Project had not yet been mined.

The company drew up a mining plan at the end of 2011 that showed strong confidence in the resource base and allowed the company to finance more feasibility studies.

Part of Midway's success with the Pan Project will have to be attributed to the recent hiring of Kenneth Brunk, former executive with Newmont Mining. Brunk brought with him his experience with mining in Nevada but more importantly his expertise with the relatively new mining process of heap-leaching.

Heap-leaching has had a major impact on mining over the past few decades and Newmont was the first mining company to begin the technique on a commercial scale. The process is cheaper than traditional mining processes and does not require a mill, which allows for lower plant facility costs.

The original budget for Pan was estimated at 99 million dollars but updated estimates put the overall cost at only 75 million dollars.