IMF sells 16.85 tons, Russia buys 16.2 tons in July

Section:

By Claudia Carpenter
Bloomberg News
via Bloomberg Business Week
Wednesday, September 1, 2010

http://www.businessweek.com/news/2010-09-01/imf-gold-assets-fall-16-85-t...

LONDON -- The International Monetary Fund's gold reserves fell by 16.85 metric tons in July as Russia added 16.2 tons to its holdings, according to figures from the Washington-based lender.

Reserves of gold at the IMF were 2,917.07 tons at the end of July, compared with 2,933.92 tons a month earlier, data on the IMF's website show. Russia increased holdings to 726.02 tons last month from 709.81 tons, according to the figures.

The IMF plans to sell a total of 403.3 tons of gold. India, Mauritius, and Sri Lanka bought 212 tons last year, and the IMF in February said it would begin selling the remainder on the open market.

Central banks have increased holdings and gold-backed exchange-traded fund assets owned by investors yesterday climbed to the highest since at least 2003, according to data compiled by Bloomberg.

Gold for immediate delivery traded at $1,249.15 an ounce at 8:06 a.m. in London. Prices climbed to a record $1,265.30 on June 21.



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Sona Resources Expects Positive Cash Flow from Blackdome,
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On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.

Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."

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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:

http://www.prophecyresource.com/news_2010_may11.php