Kinross (K.to) (KGC) in LatAm and that old deja vu all over again feeling

 Oh, that's impressive. Bugger all PPS growth in a major gold miner over five 

years during the biggest baddest bull run for gold....like...ever

Last night we had news out of Kinross:

QUITO, March 30 (Reuters) - Canada's Kinross Gold (K.TO: Quote) will invest $1.1 billion in Ecuador's Fruta del Norte gold project until 2016 and could begin digging an underground mine next year, a company executive said on Wednesday.
Dominic Channer, a vice president of the Toronto-based firm, said gold production could begin at the site in 2014.
Kinross says Fruta del Norte has proven and probable mineral reserves estimated at 6.8 million ounces of gold and 9.1 million ounces of silver, and that it should produce 410,000 gold equivalent ounces on average each year during yada yada continues here

All glorious thrusting stuff from Kinross and it immediately reminded your author of another Reuters news story he'd read....back in April 2007.

Kinross Gold expects Cerro Casale development- CEO

(Reuters) - Kinross Gold Corp. (K.TO) expects to develop the big Cerro Casale gold and copper deposit in Chile, with remaining questions centering on when and how, not if, the company's chief executive said on Wednesday.
The Canadian miner acquired a 49 percent stake in the property when it acquired Bema Gold earlier this year. It is one of the world's largest undeveloped gold and copper deposits, with estimated reserves of 23 million ounces of gold and 6 billion pounds of copper.
"I think realistically if it takes a year to get sorted out on the plan, then it takes two years in construction, so you start thinking about it in production terms 3-4 years out," CEO Tye Burt told Reuters in yada yada continues here.

Golly gosh, Cerro Casale must be producing gold and selling it at $1400+/oz now, right? We're almost exactly four years on from that "3 to 4 years out" prediction from Kinross CEO Tye Burt, after all.

What's that you say? Surely not! They sold a chunk to Barrick and only own 25% now, you say? And still no build decision made on Cerro Casale? That's strange, because it's hardly likely that the CEO of a world class gold miner would SPOUT UTTER BULLSHIT TO FOOL HIS AUDIENCE,  is it? 

But this time at Fruta del Norte it's different. Of course. Oh yes yes yes yes.

Ecuador: Zamora Chinchipe locals don't want miners and have the law on their side this time

map of the Zamora Chinchipe region
(Zarza top right)

Oh noes! Bad news for the scam artists at Ecometals (EC.v) along with the Kinross boys at FDN and maybe even the Corriente deal with the Chinese (though i kinda doubt that one). As from last Sautrday, local leaders in the Zamora Chinchipe region are demanding the exit of all foreign mining companies from the national security zone of Ecuador. This is a zone that runs 20km from the country's borders and has specific legislation in the constitution of Ecuador that says foreigners cannot hang in the area, own land and all that jazz.

Let's be clear: Zarza, FDN, Mirador...they're all well inside that 20km limitation zone (check the maps, suckaz).

Here below is the full missive in Spanish.

Zamora, febrero 6 del 2009

ASAMBLEA PROVINCIAL DE ZAMORA CHINCHIPE RESUELVE EXIGIR LA SALIDA DE LAS EMPRESAS MINERAS EXTRANJERAS

Tal como estuvo previsto este pasado 6 de febrero se desarrolló la primera Asamblea Plurinacional de los Pueblos de Zamora Chinchipe. El evento fue organizado por el Gobierno Provincial de esa provincia amazónica, a la que asistieron autoridades de las Juntas Parroquiales, Municipios, Asambleístas, Gobernadora de la Provincia, SEMPLADES y otras autoridades dependientes del Gobierno Nacional, así como unas mil personas de las diferentes localidades de esta provincia sur oriental.

Luego del acto inaugural, inmediatamente se instalaron 7 mesas de trabajo para tratar temas como planificación y ordenamiento territorial; empresas públicas; minería; producción, agua y ambiente; regionalización; pueblos, nacionalidades, interculturalidad y plurinacionalidad; y, desarrollo humano y social.

Ya en la tarde se instaló la plenaria y resolvió crear la Asamblea Plurinacional de los Pueblos de Zamora Chinchipe; realizar el plan de desarrollo y ordenamiento territorial con la participación de todos los pueblos, organizaciones y autoridades de la provincia; declarar a Zamora Chinchipe como un corredor de producción limpia y libre de químicos; declarar a Zamora Chinchipe como una provincia intercultural y plurinacional; impulsar el turismo cultural y ecológico, como una alternativa para la economía; en el marco del ordenamiento territorial, declarar zonas mineras para el pueblo de Zamora Chinchipe y buscar la forma de crear una empresa pública para la minería. Con este pronunciamiento se da un espaldarazo a los pequeños mineros y mineros artesanales; exigir la salida de las empresas mineras extranjeras de la franja de la seguridad nacional (20 Km de la línea de frontera hacia el interior del país) en respeto al Art. 405 de la Constitución y Art. 39 de la Ley de Seguridad Pública. Demandar de los organismos competentes se entregue a Zamora Chinchipe la administración del Parque Nacional Poducarpus y Yacuri, por encontrar su mayor parte en territorio de nuestra provincia.

Al concluir la asamblea, Salvador Quishpe, prefecto de esa provincia dijo que con los diferentes pronunciamientos realizados por cada uno de los participantes y con los criterios de otras reuniones que se cumplirán en los próximos meses, se redactará el plan de desarrollo y Ordenamiento Territorial, de la misma forma se comprometió a seguir trabajando de manera conjunta con el resto de las autoridades y pueblo en general, pero sobre todo llamó al gobierno nacional a que respete y haga respetar la Constitución en todos los temas, y sobre todo en la política minera. “Si el señor Presidente hace respetar la Constitución, entonces estaríamos frente a la construcción de una provincia de tranquilidad, de lo contrario, el propio gobierno estaría provocando cualquier acción de la provincia y sus pueblos. De nuestra parte seguiremos en la elaboración del plan y del ordenamiento territorial y esperamos que dicho plan sea respetado desde Quito”, dijo el prefecto Salvador Quishpe.

Responsable de prensa,

Gobierno Provincial de Zamora Chinchipe.

Telf. 072-605373, Cel. 081-910-877

www.zamora-chinchipe.gov.ec

Message to Tye Burt, CEO of Kinross

Dear Tye,

What is it with you guys up there? Can't you find another source of intelligence on Ecuador than this blog? I mean, I didn't mind so much how you Kinross-y people kept hitting this site while the Aurelian buyout was in full swing, but since that died down you would have thought a snarky little corner of cyberspace like this wouldn't be of much interest to a multi-mega squillion goldmine dude like yourself. But no! Every time I so much as mention the word Ecuador the site gets hit half a dozen times by people from your head office.

So here we go with my list of questions, Tye.

1) Are you reading me, your minions, or maybe a combo of the two?
2) You've been talking a lot about your "on the ground intelligence" in Ecuador (like at Denver the other day...nice speech, BTW). If that's based on this blog, you guys are in serious trouble cos what I write here is about 25% of what I know.
3) If things are so interesting here, how about you sponsor the site with and advert or something? Or better still, just send me money. You know it makes sense.
4) And what is it with the gold-coloured ties anyway?

It'd be great to hear from you, and maybe you can just cut out the middleman who's been feeding you all the Ecuador intel this way (or in other words, fire the guy who's been parrotting my posts to you all this time and pay me half his salary). Feel free to mail me at otto.rock1 (AT) gmail (DOT) com, Tye*. Or just go straight for the Paypal button. Have a nice day now, y'hear?

*tye...tie....gold....gold....Ahhhh!! I get it!

Aurelian Resources: how some people reacted to the news

This is simply unmissable, so I've made this the first embedded video to grace the site. I have no idea who SOCKOFAN is, but he has my undying gratitude.

As the blurb left by SOCKOFAN says on the youtube page:

"This was Hitler's reaction when he was told of the Kinross Gold offer to buy out Aurelian Resources. My German is rusty, but I translated it as best I could."

Absolutely wonderful stuff, though I should mention there's a little bit (not much) of adult language about half way through, so no viewing if offended easily or in the company of seven year old nieces, please. Caveat over with. Click and enjoy.