Friday, March 03, 2006

Concern over future supply

Author: jade davenport

While it may be argued that there is an upsurge in the field of exploration owing to the 25-year-high gold-trading price, it would seem that many mining majors are not investing enough capital into the exploration section of the business value curve, opting rather to acquire and con-solidate existing operations.

In effect, this is creating an insur-mountable challenge for the supply of new gold ounces because, without sufficient exploration projects undertaken now, there will not be enough new operational mines to maintain the current supply of gold by the time that the discoveries of the 1990s are depleted. read more here

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