Issue link: http://resourceworld.uberflip.com/i/198816
PROJECT & CONSTRUCTION MANAGEMENT FOR MINING PROJECTS IN MEXICO • • • • Cost savings approach to all aspects of project Proven success meeting tight schedules & budgets Experience with local suppliers, fabricators and construction companies All Spanish-speaking teams Smith Foster & Associates Inc. Suite 250 – 750 West Pender Street, Vancouver, BC V6C 2T7 Phone: 604 336 8555 Fax: 604 336 8562 Email: info@smithfosterassociates.com Web: smithfosterassociates.com 8 www.resourceworld.com "At the present time, I would say that it is getting harder to acquire quality gold projects in good locations where good mining practices are acceptable," said Saxton. "More and more, it seems to me that gold miners are having concerns about the nationalization of mineral projects. Whenever you turn around, there seems to be some area, state or country that wants to take a hold of mineral properties that have been found by others." He added that sometimes politicians go along with a prevailing public perception that perhaps mining companies are taking advantage of locals and should be more heavily taxed or maybe part of the project should be acquired by the government. Saxton is of the view that these situations can turn off investment in foreign mining projects due to uncertainty of tenure and potentially unfair taxation. And, of course, new and unfairly high taxation hurts the bottom line and the company's share price. Recently, there have been wild swings in the price of gold of up to US $100/oz. Does this volatility affect exploration and mining plans? "Yes, when we review exploration properties, it's hard to know what gold grades would be acceptable to make these properties profitable," said Saxton. "We have to consider that gold prices could be anywhere between US $1,000/oz and US $1,600/oz. We just have to accept that there will always be incidents around the world that can drive up the price of gold on a temporary basis. But in the overall scheme of things, the demand and supply scenario will take hold." Saxton said that with regards to the US printing more or less money, there are quite divergent opinions. Some believe the US is doing the right thing, while others think that the US is making huge mistakes and at some point "this whole thing is going to blow up." On the other hand, when Saxton recently spoke to European economists, some said that since the US dollar is the world's base currency, the world will continue to accept US monetary policy for a long time to come. "I don't see any other country out there that could replace the US dollar as the world's base november 2013