Gold — A Finite Resource and a Metal that Becomes More Precious
Gold — $541 an ounce a year ago to $673.40 this week
Hemisphere Gold has received some assays on the deep auger sampling program from its mine in the new gold producing area of Suriname, South America. This area of Suriname is already considered to be highly desirable in terms of gold production. Could Hemisphere become a buyout target?
The fundamental reality in gold mining is that there is a finite amount of gold in known gold reserves. More mergers are expected in global mining as exploration and development of new resources becomes more expensive and complicated in an industry boom driven by China and India.
Two large gold mining companies, Barrick Gold and Newmont Mining both state they are always seeking value-enhancing acquisition opportunities. Denver-based Newmont, which was the world’s largest gold producer before Barrick’s $US10 billion purchase of Placer Dome last year, has seen its costs rise and production fall in recent months.
Currently Barrick is trying to add development stage projects that they can build and bring on stream in the next five or 10 years but Newmont does not have a large portfolio of development stage projects.
Anglo-Swiss miner Xstrata made a friendly cash bid worth 4.6 billion Canadian dollars (4.0 billion US) for nickel producer LionOre Mining International.
Consolidation benefits mining companies because merged entities have ability to finance bigger projects.
Suriname is new in terms of a geographic region for gold mining. The assays are promising. Hemisphere Gold is working hard to turn samples into gold and the large mining companies are trolling the entire earth for just such opportunities.
Source: Hemisphere Gold and Reuters
3504 35th Ave SW
Calgary, Alberta T3E IA5 Canada
IR Contact: Barry Reagh
Phone: (888) 548-8444
Email: ir@hemispheregold.com
Website: http://www.hemispheregold.com
About Hemisphere Gold Inc. is in the business of exploration and acquisition of gold properties in some of the world’s best gold districts. The Company’s objective is to take advantage of high-yielding untapped mineral producing properties through exploration and acquisition. The Company’s flagship property is in Suriname, a democratic country which has had mining operations since the 1700s. Suriname is an emerging major gold producer with international companies showing interest. Hemisphere is committed to maintaining environmental stewardship, occupational safety and corporate responsibility.
This release may contain forward-looking statements which are pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ materially and all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company’s financial condition and prospects, risks associated with mining exploration, risks of governmental legislation and regulation, risks associated with technological changes, risks associated with dependence on third parties, risks relating to international operations, delays in testing and evaluation of products and risks associated with competition.
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Pentony Enterprises LLC, the publisher of this website, was compensated 12,000 U.S. dollars by Haynes Capital Corp. Slovakia s.r.o. (hereinafter “Haynes”) for preparing and hosting the information contained on this website. Ocean Eclipse Ltda. (hereinafter “Ocean”), a corporation organized under the laws of Costa Rica paid Haynes 60,000 U.S. dollars to produce and distribute a financial newsletter and to publicize the gold industry and Hemisphere Gold Inc. (”HPGI”), a Nevada corporation, using one or more websites. Haynes has not received any information indicating that Ocean owns any shares of HPGI. In addition, on March 29, 2007, Haynes entered into a contract with HPGI under which Haynes shall perform media relations and awareness consulting services for HPGI and HPGI shall pay Haynes 3,000 U.s. dollars per month. The term of this contract is 3 months and shall be automatically extended for 1 month terms until terminated by either party.
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