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Avellana Gold has started implementation of social programs Avellana Gold has started implementation of social programs

We are glad to announce that Avellana Gold has launched the first social activities in Muzhievo. These are only the first steps that should be turned into extended social program dedicated to improve living standards. Avellana Gold is actively encouraging both Muzhievo and regional community to participate and mutually work out comprehensive document that can really contribute to improvement of...

We are glad to announce that Avellana Gold has launched the first social activities in Muzhievo. These are only the first steps that should be turned into extended social program dedicated to improve living standards. Avellana Gold is actively encouraging both Muzhievo and regional community to participate and mutually work out comprehensive document that can really contribute to improvement of existing social environment.

The company is also focused on a wide range of environmental issues that had been left unsolved for years. Regarding that we have started the dialog with local authorities and new decisions might be coming soon.

«It is common practice that to develop a large-scale project, foreign investors come up with a range of social programs for local people. Avellana Gold Company is not an exception in this regard», - stated Nikolay Gozhik, Head of Business development, Ukrainian office representative of Avellana Gold.

Chief Executive Officer Avellana Gold Company Brian C Savage appealed to the Prime Minister of Ukraine Volodymyr Groysman Chief Executive Officer  Avellana Gold Company Brian C Savage appealed to the Prime Minister of Ukraine Volodymyr Groysman

Avellana Gold CEO Brian C Savage has recently sent an open letter to the Prime Minister of Ukraine Volodymyr Groysman in which he asked for support in organizing the meeting with representatives of the Government of Ukraine and the National Investment Council. In particular, the letter contained a vision of further development of the company – to make Avellana Gold a flagship project that would...

Avellana Gold CEO Brian C Savage has recently sent an open letter to the Prime Minister of Ukraine Volodymyr Groysman in which he asked for support in organizing the meeting with representatives of the Government of Ukraine and the National Investment Council.

In particular, the letter contained a vision of further development of the company – to make Avellana Gold a flagship project that would be able to compete on international market. The sources of financing for the project are also described in the letter.

ANALYSTS STILL BULLISH ON GOLD  ANALYSTS STILL BULLISH ON GOLD

DESPITE weakness over the past fortnight, analysts believe it’s onwards and upwards for gold. Gold has struggled over the past two weeks as the US dollar strengthens and the chances of a US interest rate rise in December increases. The decline of Donald Trump in the US presidential election polls has also removed a perceived catalyst for gold, though Sprott noted overnight that Hillary Clint...

DESPITE weakness over the past fortnight, analysts believe it’s onwards and upwards for gold.

Gold has struggled over the past two weeks as the US dollar strengthens and the chances of a US interest rate rise in December increases.

The decline of Donald Trump in the US presidential election polls has also removed a perceived catalyst for gold, though Sprott noted overnight that Hillary Clinton’s spending plans were supportive for gold.

The price fell as low as $US1248 an ounce last Friday and is currently at around $1257/oz.

ANZ Research said that with rising inflation expectations, geopolitical issues and signs of improving physical demand, the environment for gold remained positive.

“Higher industrial commodity prices and a reduction in capacity in several industries in China are starting to push producer prices higher,” ANZ said yesterday.

“Break-even rates (a measure of inflation) are also starting to rise in the UK and US, which will increasingly support gold.”

ANZ is tipping the weakness in gold to be short-lived.

“In the short term, the impending rate hike in the US will remain a headwind,” it said.

“However, once passed, we expect prices to continue their drive towards $1375/t in Q1 2017.”

RBC Capital Markets noted that there was no material outflows in total global gold exchange-traded fund holdings last week.

“Global gold ETF holdings actually increased week over week by 450,000oz and now sit at 65.8Moz as of Monday, October 10, with inflows now totalling 18.8Moz year-to-date,” it said.

“However, the COMEX net speculative position declined by 4.3Moz to 27.1Moz last week, which was the second-biggest decline in positioning this year, as investors pared back positions following the drop in gold price.”

RBC said the strength in ETF holdings was supportive for the gold price in the long-term, despite near-term volatility.

Analysts suggested the recent pullback could provide and attractive entry point for investors.

UBS agreed as it maintained its 2017 average gold price forecast of $1400/oz when it updated it metal price outlook this week.

“As long as uncertainty continues to dominate the gold trade, we expect the more liquid gold names to trade in lock step as investors look past fundamentals,” UBS said.

“In our view, gold equities are swinging with the macro outlook for US rate expectations but over the medium to long term, we remain positive on gold equities supported by negative real rates and macro risks.”

Evolution Mining and Alacer Gold are UBS’s preferred gold picks.

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Avellana Gold Company to start polymetallic mining in Ukraine Avellana Gold Company to start polymetallic mining in Ukraine

Recently the management of the State Geological and Subsurface Survey of Ukraine (SGSSU) held an official meeting with American representatives of the Avellana Gold Company. The purpose of the meeting - to discuss the main terms and conditions for possible projects in mining, to understand the interest of the state in the creation of a new industrial facility. The investor has acquired the compani...

Recently the management of the State Geological and Subsurface Survey of Ukraine (SGSSU) held an official meeting with American representatives of the Avellana Gold Company. The purpose of the meeting - to discuss the main terms and conditions for possible projects in mining, to understand the interest of the state in the creation of a new industrial facility. The investor has acquired the companies that hold the licenses for the production and exploration of polymetallic ores in the Western Ukraine. Avellana Gold - is a separate line of a group of investors, who are engaged in mining projects in the post-Soviet space.
Over the years of Ukraine's independence, it would be the first project on extraction of metals, implemented by junior mining companies.

Despite the military situation in our country, the investor agreed to invest private capital to bring the project to compete with international analogs and to launch in the dates due license. According to Director and Shareholder of the company, Avellana project is a result of hard work of the team of international experts over the last nearly nine months. "Today, we are totally aware of geological and operational risks of the project, high demands of the local community on environmental safety of the project and the actual impossibility of attracting long-term debt capital in the country with pre-default rating. We understand it all, therefore we would like to receive only two guarantees from the state. First, a signal that the country really needs a big project for the extraction and beneficiation of ores and, second - ensuring that the licensing conditions and regulatory rules on mineral resources will be stable during the project," notes American investor, Brian Savage.

"Provided successful implementation of the project, we expect to launch in Ukraine 2-3 more junior companies that will become significant competitors of similar projects in Canada, Australia and Africa. SGSSU headed towards such extremely important anchor projects not a one month, and this is one of them. One of our goals - is its inclusion in the list of basic investment projects of the country ", - said the Head of SGSSU, Mykola Boyarkin.

Mr. Brian C Savage said that for now the company would focus only on this direction. However, subjected to close cooperation at various levels of the government, Ukraine can really become a successful recipient of international capital. Thus, according to geological criteria, the state has several projects that could be of interest in view of the global market needs. However, legal risks and the lack of tax incentives make massive arrival of junior companies almost impossible.

"We must start a bilateral dialogue to correct the shortcomings of the Ukrainian legislation, because we badly need such projects. Currently, the main task for all of us is launching a project that would become a landmark for international investors and Ukraine as a whole "- sums up Mykola Boyarkin.

Reference:

Chairman of the company is Brian C Savage - Chairman of Pioneer Management LLC, a privately held company he founded in 2009 to advise and invest in natural resource projects and companies. He has more than 35 years of experience in the industry; he is a financial advisor at Source Capital Group, as well as Executive Chairman of Certified Minerals Limited - the company he established for the initial purchase and sale of cassiterite (tin), niobium / tantalite and wolframite ore in mining communities, acquisition of mineral concessions in Congo. In addition, B. Savage is a non-executive director of Amur Minerals Corporation, a mineral exploration and development company in the Far East of Russia, listed on AIM.

Chairman of geological advisers of Avellana Gold is Charles Beaudry. He has experience in Noranda, Falconbridge, Xstrata (now - Glencore), Iamgold Inc., Xmet Inc. Charles is a vice president of International Explorers and Prospectors Inc. with assets in Ontario, Quebec and New Brunswick. Mr. Beaudry was also elected to the Board of Directors of the Prospectors and Developers Association of Canada.

Head of Ukrainian office of Avellana Gold is Nikolay Gozhyk, who previously was the chief engineer at Zakarpatpolimetaly LLC, Director of Saulyak LLC.

Junior companies - companies financed by private and public capital and established mainly by geologists with significant experience, a narrow professional specialization. In fact, investors are investing in not only project, but the reputation and experience of its founders. The vast majority of large mining projects in the world are funded for through junior companies. Only a few countries in the world are recognized leaders in attracting junior capital - Canada, Australia and the United Kingdom, the secondary are South Africa and China.

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Mining: Why Ukraine? Mining: Why Ukraine?

Mineral extraction may not take up most of the headlines about Ukraine at the moment, but there are a wealth of mining opportunities to be found in the country. A variety of metals and minerals can be found beneath Ukraine, and there are strong economic and political drivers to get it out, by expanding extraction and processing operations. Here, we take a look at what makes the nation so attractiv...

Mineral extraction may not take up most of the headlines about Ukraine at the moment, but there are a wealth of mining opportunities to be found in the country. A variety of metals and minerals can be found beneath Ukraine, and there are strong economic and political drivers to get it out, by expanding extraction and processing operations. Here, we take a look at what makes the nation so attractive to miners and suppliers.

The market at a glance Approximately 5% of the world’s total mineral resources are found in Ukraine, with a market value of $7.2 trillion. Some 20,000 deposits have been identified around the country. Only 7,800 of these have been developed, with a further 3,300 in the exploration stage.

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