The Philadelphia Gold & Silver Index (XAU) slid 3.0% to 205.17 on Wednesday, fueled by substantial losses in precious metals.
COMEX gold futures were lower by $73.70, or 4.0%, at $1,787.60 per ounce in mid-day trading, while silver futures dropped $1.83, or 4.3%, to $40.46 per ounce.
While news in the gold sector was quite light today, one company making headlines was Newmont Mining (NEM).
RBC Capital Markets upgraded the U.S.-based gold producer to Sector Perform from Underperform. Shares of NEM nonetheless fell 3.0% to $59.44 alongside its peers.
RBC also upgraded Allied Nevada Gold (ANV) to Outperform from Sector Perform, and downgraded Randgold Resources (GOLD) to Sector Perform from Outperform. ANV and GOLD each moved lower in concert with the gold sector, by 5.3% to $39.06 and 2.1% to $104.63 per share, respectively.
Platinum Group Metals Advancing to Production
The start of underground tunneling is scheduled for late July 2011. Full commercial construction is budgeted at $443 million and is expected to involve project loan financing once a full mining rights are approved and concentrate off-take terms are established. Full Platinum Group Metals News Release.
- In March 2011, Platinum Group Metals received the consent of the South African Department of Mineral Resources (DMR) for the Company’s plan for underground development of decline access for Project 1 and related environmental management program.
- In April 2011, the Company filed a mining right application and social and labor program with the DMR for the Project 1 Platinum Mine. This application was later accepted for processing by the DMR.
- In May 2011, construction for Phase 1 on surface infrastructure, excavation and construction began – it is proceeding safely and is on schedule.
- In early July 2011, the Company announced that underground mining contractor JIC Mining Services was awarded the contract for Phase 1 underground development of twin 1,200 meter central decline tunnels into the Project 1 platinum deposit for the purposes of retrieving a bulk sample and information for further mine design. JIC is now mobilizing to site.
