Chavez says Venezuela will nationalize gold mining, processing


By Louise Egan
Wednesday, August 17, 2011

CARACAS -- Venezuelan President HugovChavez said on Wednesday he plans to nationalize the gold sector, including extraction and processing, and use the production to boost the country's international reserves.

The socialist leader said he would carry out the nationalization through a decree to be issued in the coming days and called on the military to help control the sector.

"I have here the laws allowing the state to exploit gold and all related activities. That is to say, we're going to nationalize the gold and we're going to convert it, among other things, into international reserves because gold continues to increase in value," he said in a call to state television.

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Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site

The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing.

The conference call is 18 minutes long and you download an mp3 of it here:

Or play back the call here:

Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here:

The announcement comes a day after an opposition legislator revealed a report showing the government's top finance officials were recommending the repatriation of 90 percent of Venezuela's gold reserves held abroad.

"We've managed to increase the international reserves. We have close to 12 or 13 billion of dollars in gold reserves. We can't allow it to continue to be taken away," Chavez said.

Venezuela has some of Latin America's largest gold deposits in its south. According to official figures, formal mining in the country produces 4.3 tonnes a year.

Chavez, who has already nationalized large swaths of the economy, agreed last year to let gold miners export up to 50 percent of production, from 30 percent previously. The other 50 percent must be sold to the central bank.

Foreign companies have complained that the export limits curb their ability to secure financing abroad, as well as develop projects in Venezuela and generate jobs.

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Prophecy Platinum Reports 10.97 Million Ounces Inferred
and 1.04 Million Ounces Indicated PGM+Gold in Yukon

An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says.

The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper.

Prophecy Platinum Corp. trades on the Toronto Venture Exchange under the symbol NKL, on the pink sheets in the United States as PNIKD, and in Frankfurt as P94P.

For the complete press release on the Wellgreen report, please visit: