GOLD MINERS FACE MAJOR CHALLENGES WITH DWINDLING ECONOMIC GOLD DEPOSITS

Mr Brent Cook from Exploration Insights recently commented as a speaker, at the Precious Metals Summit at Beaver Creek said that, “that the biggest challenge facing Gold Miners is overcoming the shortage of economic reserves of Gold”. He went on to say, ” there is no shortage of sub economic or marginal deposits of Gold.” The big question is, will the Gold price continue to rise to reflect that problem. Obviously, the answer has to be, yes. Mr Cook said in his thesis,” that 80% of the deposits will always be marginal because they have fundamental flaws”. By this we assume that he means either metallurgical problems or locational or lack of water, strip ratio’s too high and other reasons that Gold Mining becomes un-economical.

We at Goldtalk agree that Gold is fundamentally the most important metal in the world to man. All global monetary policies and currency values, trade and the desire for man to hold Gold will never diminish the need for the yellow metal. Basically the world cannot function without Gold. The metal has been relatively easy to mine because of the near surface deposits around the globe, however with the need now to go deeper and the grades of the Gold getting lower, there is only one way for Gold to go and that is up. The recent comments by members at the recent Precious Metals Summit expecting the Gold price to be price between $8,000 and $21,000 an ounce is not out of the question in the near term, but, is assured in the long term. Any Mining Company that has discoveries of near surface mineralization will soon the major desire of investors who are looking for major returns and dividends. Grades of Gold at 0.5grams per tonne were cast to one side in recent years and now are considered to be well and truly economical providing all the boxes are ticked for metallurgical and other matters taken into consideration. Grades of Gold above 2 grams per tonne are now considered very high grade.

Goldman

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