GOLD BOOM COMING TO CHILE
Good international prices for gold, together with encouraging test drillings in Regions III and IV, are combining to heighten interest in Chile's gold producing capabilities.
Aldo Picozzi, head of the Chilean Copper Commission's (Cochilco) investigation unit, says most of the new mining activity in Chile is aimed at locating new gold mines, rather than copper mines. He estimates more than US$1.6 billion is being invested in gold mine activities in Regions III and IV.
For example, John Lill, Barrick Gold's CEO for Chile, recently announced a US$30 million drilling campaign in the high cordillera.
Total production in Chile in 1995 was 44,585 ounces. Cochilco expects this figure to jump to 69,300 ounces by the year 2000.
Currently, three important gold explorations are underway which could lead to a significant increase in known reserves and in production. The three projects are: Bema Gold's Cerro Casale, the Codelco-Homestake Mining joint venture in Agua de la Falda and Barrick Gold's exploration of the belt around its El Indio mine. Other international and national firms are also testing the gold-exploration waters.
Chile is viewed as a positive investment site because of low production costs (an average of US$200 per ounce). Still, even if much of the new gold mining activity proves successful, Chile is not expected to surpass major producers like the United States, Canada and Peru in total production. |
