Gold discovery rates continue to slide
Research has confirmed what most in the gold sector already know – the
rate of gold discoveries is continuing to decline.
S&P Global Market Intelligence’s annual Gold Discoveries report found
that gold exploration budgets peaked in 2012, but remain at historically high
levels.
Explorers have allocated US$54.3 billion to gold exploration over the past
decade, 60% higher than the $32.2 billion spent over the preceding 18 years.
Despite the effort, just 215.5 million ounces has been discovered in 41
discoveries over the past decade, compared with 1.72 billion ounces in 222
discoveries in the preceding 18-year period.
Over half of that amount is contained in just 10 discoveries, with Zhaojin
Mining Industry Co’s 16.4Moz Haiyu deposit in China the largest.
Other deposits in the top 10 including Barrick Gold’s Goldrush, White
Rivers Exploration/Harmony Gold’s JV, SolGold’s Cascabel and Cardinal Gold’s
Namdini.
S&P says that even after adjusting for more recently identified
deposits that might eventually surpass its threshold for a major discovery,
and for major discoveries with potential to expand, it forecasts that the
gold in major discoveries might only increase to about 363Moz over the next
decade.
S&P Metals & Mining senior research analyst Kevin Murphy said
previous research into gold lead times showed that it took about 20 years for
an asset to advance from early exploration to production.
“This timeline implies that the reduced discovery rates of the last decade
will limit the pool of projects that could come online in 15 to 20 years,” he
said.
“Unless discovery rates begin an upswing in the near future, there could
be a lack of quality assets available for development in the longer term.
“The declining discovery rate shows the importance of continuing
exploration and funding companies responsible for exploration to maintain a
healthy future pipeline of assets available for development.”
Majors Barrick and Newcrest Mining reported declines in reserves this
year. Mining-Journal
Got physical? We have been saying for some time now could possibly be a
great time to add to or start stacking precious metals. Gold is still money
and the word “Silver” translates to money in languages all around the world.
That might, maybe, perhaps mean something or be a clue as to their
importance. As we continue reporting on mining production collapsing better
to be early than even one day late.
