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Germany won't sell gold for another year
By Jana Randow
Bloomberg News
Monday, September 27, 2010
http://www.bloomberg.com/news/2010-09-27/bundesbank-plans-to-sell-6-5-to...
FRANKFURT, Germany -- The Bundesbank plans to sell no more than 6.5 metric tons of gold in the second year of an agreement between central banks to limit bullion sales.
Germany has the world's second-biggest gold reserves after the U.S. It sold 5.2 tons of the metal in the first year of the latest accord, which ended yesterday, according to data up to Sept. 14 compiled by the World Gold Council. The most it ever sold in one year was 12 tons in 2001, the data show.
"Apart from the sale of 6.5 tons to the Federal Finance Ministry already agreed to, the German Bundesbank won't make use of the selling option available to it in the second year of the new Gold Agreement," the Frankfurt-based Bundesbank said in the statement today.
Gold is heading for a 10th consecutive annual advance, the longest winning streak since at least 1920, spurring central banks globally to add the metal to reserves. Combined central bank holdings rose in every quarter since the second quarter of last year, data from the council show.
The first Central Bank Gold Agreement was announced more than a decade ago because of concern that uncoordinated selling was destabilizing the gold market and driving down prices. Gold fell from a then-record $850 an ounce in 1980 to $253.83 in February 2001. It reached a record $1,300.15 today.
Germany held 3,402.5 tons of gold in reserves as of this month, compared with 8,133.5 tons for the U.S., data compiled by the council show.
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
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Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
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."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
