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"Kuwait--Oct 21--Kuwait's Central Bank announced today
that it had decided to deposit 79 tonnes of its gold
reserves with "reputable" international finance
institutions. Central bank governor Sheikh Salem
Abdul-Aziz al-Sabah said the bank would invest its gold
through limited-term deposits, without giving up the
ownership of the reserves."
A letter to the Governor of the Central Bank of Kuwait regarding the announced gold loan, from I.M. Vronsky
Editor & Partner - GOLD-EAGLE. --Bob
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Things must be getting pretty ugly in the gold markets -- guess a few markers are finally getting called in for bailing out the Kuwaitis in Desert Storm...
A post from a Gold-Eagle gold forum participant.
Here's a letter from Kuwait
Dear Mr. Vronsky
Thank you for your highly informative letter. As much as I'd like to act upon the information contained therein, I cannot. The U.S. Government has ordered us to dump our gold into the leasing market. They made us an offer we couldn't refuse (Marlon Brando voice). Sorry.
His Excellency The Governor
Sheikh Salem Abdul-Aziz al-Sabah
Central Bank of KUWAIT
This country has leased ALL it's gold reserves in ONE single transaction. Why do it now ?
79 tones = 2,528,000 oz = $758,400,000 if gold is $300/oz.
This is petty cash for a place like Kuwait. Their currency is not backed by gold. Their currency is backed by their oil reserves.
But I agree that govt stockpiles of gold are finite, as is their ability to manipulate gold prices.
I believe the recent decision of the European banks led by France is the opening shot across the bow to attack the dollar and thereby undermine the influence of the US in matters economic and financial. Remember the power struggle in naming the central banker and France held out until it was assured the next central banker would be French. The one constancy in dealing with the French is their desire to regain their former glory and this is seen repeatedly in foreign affairs. Remember how France attempted to gain control of our naval forces in the Mediterranean. When a Frenchman heads up the central bank wath out.
Seems to me that the Gold Mining companies are very active and finding lots of Gold together with other minerals!
I subscribe to THE DAILY PROSPECTOR and they show much activity!!
For Example here is todays news -- much better formatted at the above Link!!:
NORTH AMERICA
Inco (N:TSE,ME) discovered a new area of mineralisation at its Totten copper/nickel/palladium/platinum mine in Ontario, which ceased production in 1970 and has been on stand-by since. The company says that all six holes drilled intersected high total metal grades ranging from 0.9% nickel to 3.3% nickel, from 1.6% copper to 5.4% copper and PGMs from 6.3 g/t to 8.7 g/t over true thicknesses between 6.3 m and 35.6 m. The highest grade intersection reportedly contained 3.2% nickel, 3.6% copper and 5.7 g/t PGMs over an estimated true thickness of 16.0 m. Inco also reports that geophysical surveys confirmed the continuity of the mineralisation between the holes and indicated southern extensions. The zone is accessible from the mine's existing 1400 m shaft situated between 100 m and 300 m north of the zone. (Oct 19/99)
Results are ready for the August to September drilling on Foran Mining's (FOM:VSE) McIlvenna Bay deposit in Saskatchewan. (See The Daily Mining News for Oct 21/99 for more details)
Northgate Exploration (NGX:TSE) is buying the Kemess gold mine in BC. The company reached an agreement with court-appointed receiver, PriceWaterhouseCoopers, to purchase the insolvent Royal Oak Mines' flagship property for a total of about US $180 million. The company says the province strongly supported the purchase of the largest gold mine built in Canada during the last decade, which it says is sitting on a world-class orebody. (Oct 20/99)
Black Bull Resources (BBS:ASE) released a summary of the latest drilling on the Flintstone Rock property in Nova Scotia, which included seven triple tube HQ holes, bringing the total drilling to 2175 m from 29 holes. The company says the program tested the quartz/kaolinite deposit to a depth of 100 m and along strike to the southeast an additional 600 m, and reports that results indicate that the alteration zone varies in width from 100 to 200 m, has a minimum vertical depth extent of 100 m and a strike length greater than 1200 m. The deposit reportedly remains open in all directions and Black Bull says that preliminary resource estimates over the drilled portion of the zone includes 15.0 million tonnes of high quality (98%) quartz and 4.0 million tonnes of kaolinite. (Oct 19/99)
NFX Gold (NFXG:CDN) released the latest results from its ongoing surface exploration program at the Cheminis gold project in Ontario, which currently has a drill indicated gold resource estimate of 470,338 ounces. (See The Daily Mining News for Oct 21/99 for more details)
Alamos Minerals (AAS:VSE) recently completed a first stage program on the San Antonio gold property in Mexico. The company says the program was designed to confirm results of previous drilling conducted by Laminco Resources (LMR:TSE), which reportedly identified several mineralised zones on the property with an estimated resource of more than 750,000 ounces. Alamos reports that 50 short holes prove at least 30,000 tonnes of ore grading 2.6 g/t gold and adds that the rock is soft and amenable to heap leaching without crushing. The company is planning a follow-up stage of work that will include the rehabilitation of nearby roads and the construction of a 20,000 tonnes leaching facility near the old mill site, where it says water and power are available. (Oct 19/99)
Rubicon Minerals (RMX:VSE) reported assays from the stringer sulphides intersected in hole RMC99-14 along with results from a new surface showing on the Palmer polymetallic project in Alaska. (See The Daily Mining News for Oct 21/99 for more details)
Cusac Gold Mines (CQC:TSE;CUSIF:NASDAQ) will acquire an 80% working interest in the Moran Dome gold project from Cariboo Drilling, for a total of US $10,000 and 400,000 shares. The 40-acre claims of the property cover 8,000 acres in the Melozitna mining district in Alaska. (Oct 20/99)
LATIN AMERICA
Primo Resources International (PII:VSE) released the update on the Sierra de Las Minas and Los Dos Buhos gold/silver projects in Argentina that it received from the projects' operator, Golden Peaks Resources (GL:VSE). (See The Daily Mining News for Oct 21/99 for more details)
AFRICA
Pangea Goldfields (PGD:TSE) released results from the initial 6,200 m of a planned 10,000 m diamond drill program being performed by JV partner Barrick Gold (ABX:TSE,ME,NYSE) on the Golden Ridge gold project in Tanzania, which currently hosts a reported gold resource of 1.6 million ounces in the top 100 m from surface. The company says the drill results to date, which include 13.46 g/t gold over 10.9 m in hole GR99-45 and 10.11 g/t gold over 12.4 m in hole GR99-46, confirm the potential to expand the current resource. (Oct 20/99)
AUSTRALASIA
A subsidiary of Caldera Resources (CDR:ME) entered into an agreement with SouthernEra Resources (SUF:TSE) regarding diamond exploration in Western Australia. The agreement gives SouthernEra the option to spend a total of C $1.0 million over four years to maintain a 51% interest in a number of exploration licences that were recently jointly acquired by the two companies. After the four-year period, Caldera may grant SouthernEra an option to earn another 19% interest in the JV properties by spending another C $4.0 million over the next two years. (Oct 20/99)
OIL AND GAS
Dalton Resources (DAL:ASE) reported that the Strachan 2-22-38-9W5M well, drilled in the Foothills region of Alberta, was recently tied-in and placed on production. The company says that during the most recent five day period, the flowed in excess of 7.0 mmcf/d of raw gas from the Swan Hills formation. With the completion of the well, Dalton says it produces about 160 boepd, 75% of which is gas. (Oct 20/99) Startech Energy (SEH:TSE) entered into an agreement to acquire all of the shares of a private oil and gas company with assets located in its new core growth area in Alberta. The assets will cost Startech about $37.0 million in cash and will provide the company with 1,400 boepd of long life daily production consisting of 70% liquids rich natural gas and high quality light sweet oil. The company estimates that the asset base comprises approximately 3.2 million boe of proven reserves and 4.3 million boe of established reserves, 70% in gas and 30% in light oil. (Oct 20/99)
Western Star Exploration (WSX:ASE) received an updated evaluation for its oil and gas reserves as conducted by NRG Engineering. The company's established oil and natural gas reserves in the categories of proved reserves plus probable reserves risked by 50% as of October 1 totaled 2,050,700 boe, 92% of which is comprised of natural gas, valued at $18,235,100. (Oct 20/99)
FINANCIAL BRIEFS
After receiving a substantial beating from the stock market over concerns about its gold sales strategy, Cambior (CBJ:TSE,ME) is looking for a way back into the market's good graces. The company is looking at three possible options to increase its share price, including the sale of its base metal assets, a significant investment by a third party or a potential merger with a mining rival, reported The Financial Post. Earlier this month, the company had locked in most of its sales at $320/ounce in 2000, $301/ounce in 2001 and $292/in 2002, but the plan backfired when gold surged to a high of $325.50/ounce following an European central banks agreement to limit future gold sales and lending. The crisis sent Cambior's shares down by 58%, from a high of $5.80/share to a Monday low of $2.39/share. The latest news lent the company's shares a gain of $0.05, where they closed at $2.44/share. (Oct 20/99)
It appears to me that Kuwait is expecting a market downturn, corresponding rise in gold price, and they get it back at the higher value, plus the interest they've made.
It appears to me that the "reputable institutions" (Goldman et al), who stand to lose their entire shirts, have strong-armed another source of ready gold. It only delays the inevitable.
?
What is the inevitable?
Would anyone be interested in translating this into common man English? What is the intent of Gold Leasing? What's the difference between lease and sale? Who decides when transactions will occur, both buy and sell, and at what price? Benefits and Risks? Why is this an issue? Would appreciate the education.
A head scratcher. Might be time to check the news releases of the bigger players in the game (Anglo, Newmont, Barrick, etc.)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
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