Bank of Russia says it's buying only domestic gold

Section:

4:43p PT Monday, January 24, 2011

Dear Friend of GATA and Gold:

The report from the ITAR-TASS news agency in Russia appended here seems notable for quoting the Bank of Russia as saying that it is buying gold only on the domestic market, and from Russian bullion banks, rather than on international markets as well, a change of the position articulated in 2005 by Russia's then-president, Vladimir Putin, now Russia's prime minister, who said then that the bank would be buying gold on all markets.

Of course this policy of buying only domestic production rather than messing up the Western paper gold markets seems to be China's policy as well.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Central Bank Plans to Buy Over 100 Tons of Gold Every Year

From ITAR-TASS, Moscow
Monday, January 24, 2011

http://www.itar-tass.com/eng/level2.html?NewsID=15884581&PageNum=0

MOSCOW -- The Central Bank of Russia plans to buy more than 100 tonnes of gold to renew the country's gold and foreign exchange reserves (or international reserve assets) every year, the bank's first deputy chairman, Georgy Luntovsky, told reporters on Monday, giving no details pertaining to the terms.

Earlier, in an interview to the Prime Tass economic news agency, the first deputy chairman of the bank, Alexei Ulyukayev, said the central bank would increase the share of gold in the national reserves.

In the middle of October 2010, the bank's director of the financial operations, Sergei Shvetsov, said the bank did not import gold in 2010. The bank buys gold on the domestic market, in Russian banks.

According to the central bank, the reserves of gold in the Russian international reserve assets increased by 23.9 percent (152.4 tonnes) in 2010 to reach 25.4 million net troy ounces (790 tonnes) as of January 1, 2011, Prime Tass said.

As of January 1, 2009, the amount of monetary gold in Russia's international reserves was at 16.4 million ounces (510.1 tonnes), the economic news agency said.

In 2009, the central bank's gold reserves increased by 4.1 million ounces (127.5 tonnes) to reach 20.5 million ounces (637.6 tonnes) as of January 1, 2010, Prime Tass said.



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Prophecy Resource Spins Off Platinum/Palladium Venture:
World-Class PGM Deposit in Yukon

Company Press Release, January 18, 2011

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy.

PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding.

Following the transaction:

-- Prophecy will own approximately 90 percent of PCNC.

-- PCNC will consolidate its share capital on a 10 old for one new basis.

-- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp.

-- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings.

Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000.

For the complete announcement, please visit:

http://prophecyresource.com/news_2011_jan18.php



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Thursday, January 27, 2011

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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.

-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.

"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

For the company's full press release, please visit:

http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf