Oidon Company, Ltd. (OIDN)

[Vasco da Gama]

Greetings,

Another interesting article about gold in Colombia, and the foreigner investment.

It appears that in 2 or 3 years Colombia will be producing lots of gold.

The big companies are investing in Colombia, Rio Tinto, Canadian Greystar, British Mineral Cambridge Resources, Beira.

It s interesting that the Colombian Government want and is supporting this investments.

You can find this article in http://www.revistacambio.com/html/economia/articulos/4855/


And here is the article in English,



THE FEVER OF GOLD

The high prices of the king of metals put again to Colombia in the sight of the investors.

IT WAS MORE ago THAN five centuries than the conquerors arrived at which today it is Colombian earth in search of ' the Doradó. And although the mythical treasure never was found, today the country seems to be retaking the footpath of a golden future, because several of the most important companies of the world want to prove luck in Colombia and some that went away are of return.

The fundamental reasons are two. On the one hand, the best conditions of security; and by another one, the price of the gold that has been coming in a frank ascent for five years. The quotation passed of 448 dollars the ounce (that is equivalent to 31 grams) in 2005 to near 700 dollars today.

The good moment through which it passes the price of the metal justifies by the sudden flight of petroleum, the weakening of the dollar as opposed to euro, the political uncertainty in diverse zones of the world and the inflationary pressures in different countries. In addition, esteem that the world-wide supply (2,500 tons to the year exits of the mines and 800 of recycling) is insufficient for the appetite of the buyers.

In the case of Colombia, the country must recover the lost way. In the decade of the 30, it got to occupy position 12 in the world in gold production with near 50 tons to the year, but now it has position 20, its production arrives at 35,8 tons and in the last year the exports ascended to 470 million dollars. "There is much interest on the part of foreign investors. In addition, the request of new titles and areas also is increasing ", affirms to Beatriz Duke, director of Mines of the Ministry of Mines and Energy.

The examples abound. The second gold mining company of the world, Anglian Gold Ashanti de Surafrica, acquired Mining actions of the Colombian and it is prepared to initiate explorations in an area between Port Berrío and Nechí in Antioquia. "the initial phase could last two years with investments by six million dollars. When the feasibility study is made, the resources would oscillate between 20 and 30 million dollars. Esteem that the annual production could border the 2,8 tons ", affirms Beatriz Uribe, president of Miners.




Other than renewed its spirit of investment was the Canadian Greystar. The company/signature, that by problems of public order left by four years the country, retook the project of Narrowness in California, Santander, that calculates account with reserves indicated by 180,7 tons, and 138 tons in inferred deposits. To the date, the investment promotes to 12 million dollars and for this year prevén two million additional dollars. "We hoped to begin the construction of the mine in 2007 and that the production starts in 2008", it affirms Frederick Felder, executive vice-president of Greystar.

In the meantime, the Mining Group of Colombia, with Canadian partners, has budgeted an investment of 20 million dollars during the next year in the zone of the Marmato Stop in Antioquia. "This project could constitute in the first a sky opened in the country, because the greater activity goes ahead informally in the rivers (alluviums) and some zones in cavern mines", it affirms Ian Pack, representative of the Mining Group. In addition, the company advances conversations with Frontino Gold Mines, whose production calculates in 1.9 tons to the year. "the idea is to make a total purchase or partial of its operations", Pack adds.

A plus is the British Mineral Cambridge Resources, that announced an investment of 20 million dollars after the acquisition of the mines the Five, Quintana and Santa Rita in the region of Frontino, whose production could surpass the 775 kilos to the year. On the other hand the American Tao Minerals Resources remained with the project Wanderer in Grass in which she will invest, in the initial phase, million dollars and more ahead five additional million. In addition, Of Beira, another North American, announced an agreement with Goldplata Group of Companies to participate in 65% of a project of gold exploration and receives in Tiritibí, Antioquia. The initiative contemplates an initial investment of eight million dollars.

Other companies are added to the interest to invest in Colombia like the Australian Tinto River and the Canadian Gold Meter, that plans investments by 3,6 million dollars in Segovia, Antioquia.

In the meantime, Ingeominas gets ready to remove to licitation three areas in Hit, Antioquia and Vaupés. Thus the things, and although some analyses prevén the aim of the rise in the prices the next year, industralists of the sector optimistic and are convinced that Colombia could recover just a short time in the privilege place that showed several decades ago.