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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (2349)	9/25/2001 12:30:24 PM
From: goldsheet	Read Replies (1) \| Respond to of 4051

>The aussie $ chart on gold is very striking Yes. but I think it says more about the Australian dollar than gold. $A started the year at $US.56, dipped to $US.48, tried to recover to$US.54 and is now back under $US.50 If anything the $A600 level on gold is a place where Australian miners have a nasty habit of adding to their hedges. This reminds me Dominion Mining is finally going to become a producer. opening a new mine in South Australia, but they have hedged 40% of the initial phase to fund it. "Dominion Mining Limited (ASX: DOM) today gave formal approval to proceed with financing and development of the Challenger Gold Project in South Australia. Gold production is expected to begin in the second half of 2002. Challenger contains a resource of 500,000 ounces and is 100% owned by Dominion." "The Challenger development, in its initial stage, will be based on exploiting a recoverable gold reserve of 105,060 ounces (577,964 tonnes at 5.96 g/t gold), which will be extracted through an open cut mine." "Cash operating costs for the open cut mine are estimated at $278/ounce. An interim gold hedge position of approximately 40% of the open cut reserve (10% of the total resource) at an average spot price of A$580/ounce has been put in place during September in order to secure the viability of the project and take advantage of the recent strength in the gold price." REF: dml.com.au