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China said to consider gradual rise in gold reserves
By Feiwen Wrong
Bloomberg News
Tuesday, November 16, 2010
http://www.bloomberg.com/news/2010-11-16/china-considers-increasing-gold...
BEIJING -- China is considering gradually increasing the nation's gold reserves, the 21st Century Business Herald reported today, citing an unidentified consultant to the government.
There are limits to China's ability to increase gold holdings on a large scale within a short time, so the gains in the government reserves will be a slow, incremental process, the newspaper said, citing the consultant. China currently has 1,064 metric tons of gold, accounting for 1.6 percent of its foreign exchange reserves, it added.
Gold has gained 22 percent this year, reaching a record $1,424.60 on Nov. 9, as a weakening dollar and concern about the global recovery has spurred demand for a store of value. China should purchase gold and oil overseas with its foreign-exchange reserves to avoid losses from a weakening dollar, Shao Fenggao, an official at China Construction Bank Corp., said on Nov. 1.
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Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia
VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20.
Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia."
The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies.
For the complete press release, please visit:
http://prophecyresource.com/news_2010_nov11.php
"People have always been speculating about China's gold reserves, but I think there is not much point in second-guessing whether the government is going to buy gold," Ronald Wang, general manager for greater China at the World Gold Council, said by phone from Beijing today. "They have access to information and they must have a plan with regard to gold."
China remained the biggest foreign holder of U.S. Treasuries, after its holdings rose by $15.1 billion to $883.5 billion in September from $868.4 billion in August, according to the Treasury’s statistics.
China's gold holdings are far lower than the 8,133 tons held by the U.S. government, and are only higher than 25 countries of the 110 countries tracked by the International Monetary Fund, the newspaper said.
Meng Qingfa, a researcher at the China Chamber of International Commerce, wrote last month in the International Business Daily that China should increase its gold holdings.
China's gold market may double in the next decade as retail investment and jewelry demand gain, the council's Wang said Nov. 3. Demand may gain to 800 tons to 900 tons in the next ten years, Wang said. China's jewelry and investment gold demand was 428 tons in 2009, according to the council.
Immediate-delivery gold fell 0.2 percent to $1,337.10 an ounce at 11:16 a.m. Shanghai time, heading for the longest slump since July.
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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010
VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
For the company's full press release, please visit:
