DrStockPick Is “Digging” Up News On Gold Mining Companies GOLD, SILA and CGC!
Sunday, August 29th, 2010
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Gold American Mining Corp. (OTC.BB:SILA) is pleased to report additional positive results from its Guadalupe property, located in the heart of the Fresnillo district, Zacatecas, Mexico.
Fieldwork continues to identify additional veins within the property — as such several veins remain without names. To date nine veins have been mapped within the Guadalupe property. In certain locations the width of sampling was limited by the size of the workings and as such the true width of mineralization remains unknown.
Several previously unknown historic shafts were also identified within the property. It is apparent that these shafts were sunk along strike from other workings as there are often no outcrops in the vicinity of the shafts. In these situations the mineralized dumps near those workings were sampled.
Several exposures/workings that occur immediately off of the property were also sampled. These areas were sampled because the veins are known to continue onto the property, however there are no exposures immediately on the property side of the boundary.
“The fast pace of exploration achieved on the property since we started operations in late April has expanded considerably our knowledge of the property and reaffirmed our intentions to drill its main objectives,” said Johannes Petersen, President of Gold American. “We are very excited with our findings to date. As soon as we receive the final report and maps of the recently completed geophysics campaign we will be able to finalize the design of the drilling program and initiate the permitting process with a view at commencing drilling before the end of the year,” added Mr. Petersen.
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Randgold Resources (Nasdaq:GOLD) posted a quarterly profit increase of 52% on the previous quarter and 92% on the corresponding prior year quarter, while its profit for the six months to June was up 88% year on year.
Randgold also reported that commissioning of the plant at its new Tongon mine in Côte d’Ivoire was under way ahead of schedule. Because of the expected earlier start-up, Tongon’s production guidance for this year had been increased by approximately 10%. The company said it is targeting to bring the start of construction at the giant Kibali project in the Democratic Republic of Congo forward by six months to the middle of 2011 in the light of the rapid progress it had made in the pre-development phase.
While production for the quarter was down 17%, the profit of US$36.4 million was boosted by a higher gold price, a gain of US$6.3 million on the sale of part of the company’s stake in Volta Resources and by the write-back of a US$13 million provision in respect of an investment in Auction Rate Securities following the settlement of this issue.
Production and hence the cost profile for the quarter were impacted by issues at Randgold’s flagship Loulo operation in Mali, which suffered from extensive power black-outs during the period. Loulo is also still settling down its plant expansion project and dealing with the Yalea underground development. Production and cost levels are expected to be back on target by the fourth quarter.
Chief executive Mark Bristow said in spite of the dip at Loulo the group’s production guidance for the year remained within 5% of the original target.

Capital Gold Corporation (NYSE Amex:CGC) provided a production and operational outlook for fiscal 2011 (August 1, 2010 to July 31, 2011) at the Company’s mining projects in Mexico, including the El Chanate open pit mine in Sonora, the Saric exploration property that is also in Sonora and the Orion project in the State of Nayarit.
In fiscal 2011, Capital Gold expects to produce 65,000 to 70,000 ounces of gold. In order to meet the Company’s production target, approximately 5.4 million tonnes of ore is anticipated to be processed for the year with an average grade of 0.70 grams per tonne gold and a strip ratio of 2:1.
Capital Gold’s President, Colin Sutherland, stated: “Our commitment is to consistently improve upon our operational efficiencies at the El Chanate mine. The Company is focused on optimizing operations at El Chanate in order to further increase gold production, and at the same time, look to fully exploit our development potential at both Orion and Saric.”
Capital Gold Corporation is a gold production and exploration company. Through its Mexican subsidiaries and affiliates, it owns 100% of the “El Chanate” gold mine located near the town of Caborca in Sonora, Mexico. On August 2, 2010, Capital Gold acquired Nayarit Gold Inc. and merged it into its wholly owned subsidiary. Capital Gold is focused on optimizing the El Chanate operations and advancing the Del Norte deposit in the Orion District in the state of Nayarit, Mexico. Capital Gold also owns and leases mineral concessions near the town of Saric, also in Sonora, that are undergoing exploration for gold and silver mineralization.
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