SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold and Silver Mining Stocks
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Claude Cormier who wrote (3800)3/11/2003 2:50:39 PM
From: goldsheet  Read Replies (2) of 4051
 
> Depletion in 10 years ?

Right, just like we ran out of oil in 1995 based on static linear calculations of reserves and production in 1975.

The article makes two points I previously made:

"According to Davidson, only two 5 million ounce deposits – the new senior producer benchmark – have been discovered since 1999; at Goldcorp’s Red Lake mine and at Barrick’s Alto Chicama project. Between 1994 and 1998, ten 5 million ounce discoveries were made."

Not all (maybe none?) of these ten properties are in production, so they will sustain the industry for another decade.
These were found as a result of excessive exploration funding in 1993-1996 timeframe.

"Davidson believes a gold price of $350 per ounce over at least five years is required to “put the economics in place to sustain exploration that will bring us the best discoveries – low cost, long life properties – that sustain the industry.”"

As as said I'm a strong supporter of the industry and I too see a sustained period of favorable gold pricing ($350ish) that will allow miners to replenish their treasuries and proceed on toward more exploration. I see a serious gold price and exploration boom post-2007.

Basic economics and free markets often take care of these perceived problems. The above concern has already been substantially minimized by gold being at $350 instead of $250. Not only does mine development have a 5-8 year lag time, I think this prediction is lagging ;)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News