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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (166289)	4/26/2009 11:53:04 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 362787

Where Have All the Gold Mines Gone? Brent Cook, Kitco ... The problem we are all having is that quality economic gold deposits are few and far between. The most obvious confirmation of this claim is that world gold production has been steadily declining since it peaked in 2001 in spite of a nearly US$600 rise in the gold price (fig. 1 below). This is counter to basic economics that would suggest a rising prices should bring on more production and indicates a more fundamental problem in the gold industry. To wit, we are mining more gold than we are putting into production in spite of an estimated $US18 billion in gold exploration expenditure over the past five years (CIBC and Metals Economic Group). ... Summarizing: given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. For the few of us still left sitting at the table in the exploration game the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes however will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics. (23 April 2009) kitco.com