Wednesday, January 25, 2012

Jaguar Mining Explores

The appetite for gold resources continues to realize momentum in 2012. Gold investors are going to be at home with reading concerning sturdy demand for gold resources by variety of Chinese state-owned gold manufacturing firms. Last week, Chalice Gold (TSX:CXN,ASX:CHN) agreed in principal to a proposal totaling the maximum amount as $100-million for its sixty p.c interest within the Zara gold project in Eritrea. In November, Shandong Gold cluster Co. (SHA:600547) launched an unsolicited supply for Jaguar Mining Inc. (TSX:JAG,NYSE:JAG) valued at $785 million.Jaguar Mining said on Wednesday it's signed confidentiality agreements with many interested parties because the company participating in a very strategic review method to explore different merger opportunities. The committee guiding the company’s strategic review are going to be led by Gil Clausen and embody the gold mining business experience of Gary German and John Andrews. an additional news unharness from Jaguar announced the appointment of RogĂ©rio Fernandes as Chief Operating Officer, following the retirement of LĂșcio Cardoso at the top of January.Street consensus lacks visibilityFirst Asset Investment Management Inc senior portfolio manager John Stephenson said in December following on news of the terribly sudden departure of the Chief government Officer that it absolutely was probably the reported Chinese bid would achieve success. Institutional Equity analysis Analyst at Cormark Securities Richard grey offered that “the board of administrators could notice a pleasant, easy, money supply the higher thanks to go” in a very note to shoppers in November. The market has responded absolutely to the foremost recent news because the share costs have appreciated four.8 p.c since the announcement.Weather conditions difficultFabiana Weycamp, meteorologist with Brazil’s Climatempo weather-forecasting service recently mentioned with the Wall Street Journal the excessive precipitation within the state of Minas Gerais. Jaguar’s gold operations are located within the Iron Quadrangle region, close to town of Belo Horizonte within the state of Minas Gerais. Since October the region has experienced a “South Atlantic convergence zone, that has led to the presence within the region of a significant cloud layer leading to persistent rains. whereas this is often a standard phenomenon for the Brazilian summer, this year the convergence zone’s impact was heightened by the presence of colder than usual waters off the coast of Espirito Santo and Rio de Janeiro states.” though there has not been any revision on production steering from Jaguar, different mining interests have announced issues. With Belo Horizonte town receiving over twice the monthly average rainfall in December, a Vale SA (NYSE:VAL) press officer said that not solely iron-ore production however additionally transport had been suffering from the rains.Safe haven standing returning for goldMatt Grossman, Chief Equity Market Strategist at Adam Mesh Trading cluster says gold has came to cover standing as Europe languishes. With a bullish outlook on gold, he says it'll break the $2,000 per troy ounce vary, “When things aggravate in Europe gold tends to maneuver higher. within the finish of 2011 what we tend to saw was funds taking profits, and additionally there was a want to lift money attributable to the tight credit state of affairs in Europe. currently we tend to are extremely reverting back to the trade that we've got seen for an extended time. When folks are scared they wish to place their cash in gold.”

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