NewswireToday - /newswire/ -
Seoul, Youngdeungpo-Ku, Korea (South), 2011/07/21 - In that kind of environment, ALJA believe that deposits with a potential of more than one million ounces and/or grades higher than three grams per ton will be more and more valuable - ALJA.com.
Global gold production may have hit a record last year, but that doesn’t mean the stuff is getting easier to find. Gold production analysts report that the growing difficulties in finding gold suggest that high-grade deposits will command a stronger premium over time.
Citing data from the recent study shows the number of deposits and total ounces found peaked in the 1980s and have been steadily declining ever since.
Additionally, the cost of discovery has increased from US$10 per ounce in the 1980s to more than US$47 an ounce in 2009, and there has been a decline in the average gold mining grade from 10 grams per ton (in 1965-1975) to less than one gram in 2008, according to the data.
Successful gold discovery is becoming more challenging, and over the long term is not sustainable at current rates of demand.
Fundamental trends point to a lowering grade curve driven by increasing gold prices as the only way to sustain supply. Higher capital costs and lower grades are going to be intrinsic to future resource development, resulting in a game of risk management.
In that kind of environment, ALJA believe that deposits with a potential of more than one million ounces and/or grades higher than three grams per ton will be more and more valuable.
About ALJA (Anderson, Lloyd, Jones & Associates)
Anderson, Lloyd, Jones & Associates (ALJA.com) is a venture capital and management consulting firm. We invest in and provide management consulting services (including investor relations services) to early stage emerging growth companies and to microcap and smallcap public companies. We aim to form a close partnership with a company, developing relationships with management, investors and shareholders. We inform the investment community about a company, provide a management consulting to grow the business, and often take an equity stake in companies we assist.