Ok so I was just looking at some gold related stuff and found this, They are talking about things that these guys think was a "Turkey" and while its interesting there are a few points on interest , look at the mine production "400,000 oz a year with a life of 9 ish years if at full production , that 3.8 mill oz of gold or 160 tonnes. Ok and this is just one mine. Also note the production costs of $1300 an oz, well they inc the capital cost of 1.8 billion .
But is it just me or is there no foreseeable shortage of gold and all the doom sayers of running out of gold is just BS, remember this is just one mine in Canada, be it is a big one.
Quote:
John Kaiser: The biggest turkey was the updated feasibility study Goldcorp Inc. (G:TSX; GG:NYSE) published in late March for its Eleonore gold mine in Quebec. Eleonore was the greatest Canadian gold exploration discovery made by a resource junior (Virginia Gold Mines) during the past decade. When Goldcorp bought Virginia in March 2006, gold was at about $550 per ounce ($550/oz), less than half where it is today. After the pre-resource estimate in 2006 for $750 million ($750M), the company outlined 3.8M Proven and Probable ounces and another 4M Inferred ounces at a somewhat higher grade, nearly doubling the projected 9 year mine-life. The 7,500 ton per day underground mine will average 400,000 oz annually, but the feasibility study indicates that at a 5% discount rate using $$1,300/oz gold, the after-tax net present value is negative $172M and the internal rate of return is 3.15%, thanks largely to a capital cost of $1.85 billion.
Eleonore is a symbolic turkey for the exploration sector because it has raised the bar for what counts as an exploration success at $1,200/oz gold to an impossibly high level. If a junior discovers a new deposit in a remote location that looks like Eleonore tomorrow, the market would have to dismiss it as economically insignificant. Eleonore has already been built, so it would benefit from higher gold price and the doubling of mine life when the resource is upgraded to a reserve, but it would not be built today.
http://www.theaureport.com/pub/na/1...043;11-25-14Quote:
2011 Gold Production
Country Metric Tons
China 355
Australia 270
United States 237
Russia 200
South Africa 190
Peru 150
Canada 110
Indonesia 100
Ghana 100
Uzbekistan 90
Mexico 85
Papua New Guinea 70
Brazil 55
Chile 45
Other Countries 630
The values above are estimated gold production in metric tons. Data from USGS Mineral Commodity Summaries.
http://geology.com/minerals/gold/us...f-gold.shtmlQuote:
What percentage of gold is reused / recycled each year?
Approximately a third of the gold on the market at any one time is recycled. A five year average between 2005 and 2010 saw recycled gold take up 35% of the gold available.
http://www.goldfacts.org/en/faqs/#q...ed_each_yearWell ok we consume alot of gold for jewelry but 35% or more now gets recycled.
Quote:
How big is the market for gold jewellery?
In 2010 the world consumed 2,017 tonnes of gold jewellery, which was valued at approximately $79 billion.
http://www.goldfacts.org/en/faqs/#q...gold_jewelry
Posted 12/04/2014 6:25 pm
