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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (66554)	8/30/2010 10:07:53 AM
From: LoneClone	Read Replies (1) \| Respond to of 193686

Australia combs old mines for more gold as price soars Sun Aug 29, 2010 2:00am GMT af.reuters.com SYDNEY Aug 29 (Reuters) - Australian prospectors are combing old mines for more gold as bullion prices rise, driving production to its highest level in more than six years, consultant Surbiton Associates said. "We are experiencing an extended period of high Australian gold prices, which has led to old deposits being re-evaluated and re-developed," Surbiton Managing Director Sandra Close said. "Between 2000 and 2005, Australian gold prices XAUAUD=R averaged around A$550 per oz but the average for the last two years is around A$1,200 per ounce," Close said." It's no wonder we are seeing renewed activity in the gold sector." June quarter gold output rose by 11 percent, or 6.5 tonnes to 67 tonnes (2.2 million ounces) versus the March quarter and was up 20 percent on the June quarter 2009, according to Close. Australian gold production in the 12 months ended June 30, 2010 rose 11 percent to 245 tonnes compared with 222 tonnes in the previous 12 months, she said. Only China produces more gold each year than Australia, according to Close. "It was the highest quarterly output since December 2003 and helped to turnaround annual production as well," Close said. Some miners are gleaning as little as 1.5 grams of gold from each tonne of ore, Close said. "In other words they have to mine and process around 20 tonnes of ore to produce just one ounce of gold," she said. "To get to those 20 tonnes of ore, they might have to move 100 tonnes or so of waste." (Reporting by James Regan; Editing by Ed Davies)