Gold seen rising as Canadian miner eyes lack of exploration

The Inuit government of Labrador says it will review a 2008 moratorium on uranium mining that it brought in to protect the environment, The Winnipeg Free Press reported, with the Nunatsiavut Assembly voting last night to review the legislation imposing the moratorium on mining, production and development of uranium on Inuit lands. The moratorium was imposed on concerns over the environmental effects of uranium mining including low-level emissions produced from tailings. If a government committee recommends that the moratorium be lifted, legislation would be put forward to remove the restriction, says The Free Press. A report is expected by December.

Embattled Silvercorp Metals on Wednesday was forced to respond by opening up its books after a second anonymous report which it believes comes from a group of shortsellers trying to drive down the company's share price emerged on the web. Ongoing investigations into the apparent shakedown are being conducted by the RCMP, the BC Securities Commission, the SEC and the FBI, the company said. Silvercorp was forced on Friday 2 September to make public the first fraud allegations and at the same time disclosed that someone had built up a short position of 23 million shares – more than 13% of the number outstanding. The firm with projects in China and Canada plunged after the news broke and year to date losses now top 46% despite the firm’s ongoing buyback programme and a 14.3% bounce by midday today in massive volumes.

The British Geological Survey (BGS) on Wednesday published the latest list of the 52 elements, minerals and metals most at risk of supply disruption because global production is concentrated in a few countries, many with unstable governments. Surprisingly rare earths used in green technology and defence do not top the list but comes in at number five. Antimony, extracted mainly from stibnite (pictured), widely used for fireproofing is most at risk. The platinum group metals (auto catalysts) hold the second spot while niobium used in touch screens and scanners and tungsten for cutting tools are also at risk of supply disruption as a result of increased competition among the world's growing economies, political instability, resource nationalism, along with events such as strikes and accidents. China is the number one producer of 50% of the 52 chemicals on the list and produces 75% of the world's antimony.

Hathor Exploration announced early Wednesday that its board unanimously recommends that shareholders reject Cameco's unsolicited offer for the company calling it 'opportunistic' and 'predatory' coming in the wake of the Fukishima disaster in Japan that sent uranium oxide prices to lows of around $50/pound. Hathor opened down slightly on Wednesday trading at $4.15 versus Cameco's offer of $3.75. Yesterday the company said a preliminary economic assessment of its Roughrider uranium deposit showed it would potentially be one of the lowest cost uranium producers in the world at only $14.44/lb U3O8. The junior uranium explorer has gained about 56% since the offer and 121% since the start of the year. In contrast $8 billion industry bellwether Cameco’s stock has almost halved in 2011.

Junior explorer Hathor Exploration on Tuesday said a preliminary economic assessment of its Roughrider uranium deposit showed it would potentially be one of the lowest cost uranium producers in the world at only $14.44/lb U3O8. The junior uranium company is the target of a hostile bid from world number one uranium miner Cameco and has gained about 56% since the offer and 121% since the start of the year. Hathor believes its worth more than the offer price and said it will formally respond tomorrow (September 14) and urged shareholders to sit tight.

The Endako molybdenum mine in British Columbia has been extended another two years, Thompson Creek Metals (TSX:TCM) said yesterday. The Denver and Vancouver-based company announced a 9% increase in mineral reserves from 286.2 million to 312.2 million pounds of molybdenum at the mine, located near Prince George, BC., meaning the mine will operate until 2028. "The updated reserves estimate illustrates the significant value of the Endako mine. The current report has revised our reserves estimates as a result of improved engineering, refined geological modeling and new drilling data. We believe the resource base at the Endako mine will continue to expand with our 2011 drilling program and future exploration," CEO Kevin Loughrey said in a statement.

Shares in NioGold Mining (TSX-V:NOX) are up 3.28% today on brisk mid-day trading, after the company announced promising drill results from its Marban Block property, located in the Abitibi region of Quebec, Canada. Highlights from 10 new drill holes at the Marban deposit include an intersection at depth of 7.0 grams of gold per tonne (g/t Au) over 10.9 metres (MB-08-053ext) and shallow intersections obtained at the west end of the deposit of 5.9 g/t Au over 15.7 metres (MB-11-195) and 906.2 g/t Au over 2.6 metres (MB-11-198). Map by NioGold Mining Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2011) - ATAC Resources Ltd. (TSX VENTURE:ATC) is pleased to announce the final 2011 drill results from its Ocelot silver-lead-zinc discovery. The Ocelot is located within the Rau Trend in the western portion of ATAC's 100% owned Rackla Gold Project in the Keno Hill Mining District, Canada's second largest primary silver producer. The 2011 diamond drilling program consisted of 19 holes totaling 3784.75 m. The first five holes returned encouraging results near surface (see news release dated June 13, 2011).

After the market close on Monday Oilsands Quest announced it is cancelling a $60 million rights offer that only two weeks ago it extended for a second time. The embattled firm's shares spiked higher 22% to 25c, five cents above the offer price, in after-hours dealings following the news. Oilsands Quest said it was working with a third party on a deal that would "change the company's financial position and funding requirements," but has not ruled out a new rights offer. Investors in the AMEX-listed firm have been on a bumpy ride. The stock is down some 70% from its January highs of 64c and gained 63% in a single day after Saskatchewan granted the company 15-year leases, the first in the province. But recent investors can feel smug about the fact that they did not buy into the junior during the frothy 2006 market – the counter hit a peak of $7.76 in March that year.